A condominium, or simply condo, is a building complex subdivided into single living units. A community management organization, mostly composed of homeowners, look after the building complex. A buyer is expected to subdue to the rules set by this organization.
Furthermore, ownership of an individual condominium unit is limited. The external components of the building—floors, ceilings, walls, staircases, elevators, patios, etc.—are not included in the ownership title of any buyer. Those are considered as communal properties. Physical changes would need to be subjected to the approval of the management.
Difference Between Condos and Townhouses
Condos differ from townhouses in a sense that the latter are mostly rows of homes in a village-like setup. While condominium ownership is limited to the interiors, townhomes include both the interior and exterior of units. Residents of both have to pay for homeowners’ association (HOA) fees. Notably, condos have higher rates due to their higher maintenance upkeep.
When it comes to insurance, condos have lower rates, since only the interior is covered. On the other hand, townhouses have the roof, lawn, driveway, and other exterior components that add to the overall charge. Moreover, the size of condos is smaller compared to town homes. Nevertheless, privacy for both is not an issue.
Additionally, condominiums have shared parking spaces that are exclusive to the homeowners. In some communities, the HOA limits each unit owner to one spot. Unlike in townhouses, residents have their own garage where they get to decide the number of vehicles to park in.