(And Why it Matters)
Quick, test your knowledge of housing styles and answer the following:
How do you tell the difference between a condo and a townhouse?
A. Physical appearance.
B. By reviewing the Seller’s Disclosure.
C. Whether there’s an owner’s association.
D. By looking at the legal description.
Normally, Buyers (and Realtors) think of condo’s as being “apartment-like” — shared walls and a common entrance — while townhouses are more like single-family homes (private entrance and at least some land).
However, that’s not always the case.
To be sure, one needs to look at the legal description.
If the unit is a condo, there will be “Common Interest Community” language; if it’s a townhouse, the legal description will include plat language describing the physical land that comes with the townhome (condos essentially represent air rights).
Why does it matter?
Buyers who want FHA financing — and many do today — have to jump through more hoops if they want to buy a condo.