(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.
Answer: D.
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.
