A townhouse is like a house in that the owner owns both the structure and the land on which it sits; but it is not free standing, so "the land on which it sits" is limited to the front and back yards. Townhouses are connected to one another in a row, and are usually two or three stories tall. They share many of the characteristics of condominiums.
Like townhouses, condominiums are attached to one another. If you own a condo, you do not own the land surrounding your living space. A condo owner owns only the unit itself, which is taxed as an individual entity, and sometimes a percentage of the common areas of the community. Condo communities may provide such shared facilities as a pool, gym, tennis courts and clubhouse, all maintained by the condo association, which takes care of all day-to-day management tasks. This is one of the key advantages of condo living...all the joy of using the amenities, none of the hassles of maintaining them. Condominium owners pay a monthly fee to the condo association, which also sets the rules for the community.
Very good question. Both properties fall under the general heading of common interest developments (CID's). Outside of that, it has been my experience that the classification is more subjective than technical and can come down to how the appraiser appraises the dwelling.
And your inquiry is important when you get to the financing level. A townhome can be viewed quite differently from a condo when it comes to getting a loan.
There are a couple of good ways to check to see if there is a consensus on how the home will likely be classified and if you'd like to go over these get in touch any time.
As an appraisr and real estate salesperson, I understand many may use the name of townhome and condo as the same. But its important to know that its not the same an markets have no difference, especially when it comes to financing it. The condominium style can vary from: attached ranch style, to apartment like units. A condominum is basically a form of ownership. A condominium means that you own the space inside the walls within a particular structure and nothing else, everyting else is a common element and the ownership is shared with all others.(ei. walkways, ammenities, parking...) on these properties you will have to pay a HOA or maintenance fee. A townhome is basically an attached single family property on which you share a wall of with another unit. on a townhome you actually purchase the land with all of its rights, and some will have a HOA fee and others won't. The ones with HOA fees typically will have ammenites within the project that are supported by the fees. I hope this clarifies your question! If you have further questions feel free to contact me. Thanks.
FL & NY State Certifed Residential Appraiser
NY license sales person
All these answers are very good and are text book correct.... However, I realize that it might be easier to comprehend exactly what you are getting into with each scenario.... So, If you would actually like to see examples of each or are in the market to possibly purchase a nice Condo or townhouse... Please give me a call and I would be more than happy to help you in this area!
Here is my cell if you would like to see any properties in the area.....