What is a Condominium?

Traditionally, a condominium has been defined by the ownership type and how the exterior of the home has been maintained.  Ownership type is a term used to define how the banks and municipalities determine what you own and are responsible for.  Wikipedia defines it here.  One of the key things is that with a condominium, you typically do not own any part of the lot the home is on, instead only what is between the walls,  You would pay monthly dues for maintenance of common areas and the exterior of the home, such as the siding and roof.  A condominium is great for someone that wishes to own their own home but does not want the added work to maintain a yard.

What is a Townhouse?

A townhouse is more of an architectural term, so the actual definition can vary greatly from one community to another.  Often two-story buildings which share exterior walls with their neighbors on one or both sides.  Wikipedia has its own definition here.  As you can see the term townhouse has many different meanings that can vary from country to country and even city to suburbs.

Townhouse with condominium ownership

With a townhouse, you may or may not own the land underneath the home, further complicating the meaning.  In this case insurance companies, and municipalities will actually classify the ownership type as a condominium.  You will likely not be responsible for the exterior maintenance just like in a condominium and you will have monthly association fees.  For all intents and purposes, you are living in a condominium that looks like a townhouse.

Townhouse with Single Family Ownership

If you own the land under your townhouse, then you actually have what is called “Fee Simple ownership“.  This is a greater level of ownership where you are responsible for the home interior, exterior, and land.  But it is more complicated when there is also a Home Owners Association (HOA) involved.  In NJ there is often an HOA and they are responsible for the maintenance just like a condominium.

Condominiums & Townhouses So What Really is the Difference?

The terms Condominiums & Townhouses has evolved to an architectural style more that anything else. This blog post from Nationwide Insurance attempts to define the difference between Condominiums & Townhouses. Still, it falls a bit short with the different possible scenarios, especially in New Jersey.  Commonly, a condominium is a building that contains many units of homes in it, often with units on multiple floors.  A townhouse is usually a row of homes connected by common walls between them.  Townhouses are usually 2 stories, but not always.  Instead try to focus in on the ownership type, as this will affect your insurance, loans, and possibly taxes and if there is an HOA and what your dues cover.  So ti is best to forget about the terms condominiums and townhouse as they can be confusing and focus on what home you fall in love with!

Let me Help You

This can be confusing, so do not hesitate to enlist me to help you navigate through all of the above scenarios of Condominiums & Townhouses.  I can help define the style, the ownership types, and the HOA responsibilities and how each of these items can impact you and your home.