Joe Capote

A client recently asked the question, “What is the difference between a condo and a townhouse?”. A great question that is not always clear to most folks.

I find most clients tend to think of condos as a building or a complex. Condos are often mistakenly referred to as a type of construction or development. In reality, a condominium is really a type of ownership in real property. In a condominium, all of the owners own the property, common areas and buildings together, with the exception of the interior of the unit to which they have title.

For example, say I own a corner unit at one of San Bruno’s condominiums complexes, such as Shelter Creek. I would have an ownership in the interior of the unit to which I have title. I would also have an ownership (along with all of the other owners) of the property, common areas and buildings. I would be part owner of the land, but would not have an individual ownership of the land.

Townhouses are often thought of as an architectural style. For the most part, a townhouse is one row of homes sharing common walls. Differing from condominiums, townhouse ownership does include individual ownership of the land. Depending on the townhouse, there can be common areas, such as a central courtyard, which can be shared.

So then, what is a planned unit development (PUD)?. Most folks have heard of a PUD, but don’t associate it with an architectural or building style. It is, like a condominium, a type of ownership. In a PUD, individuals actually own the building or unit they live in, but common areas are owned jointly with the other members of the association or development.

Clear as mud? Here’s a quick cheat sheet.

• Condominium –  Owners own the airspace inside the unit, but share the ownership of the buildings and common areas.
• Townhouse – A row of homes sharing common walls. Owners have individual ownership of the land. May have shared ownership of common areas.
• Planned Unit Development (PUD) Owners have individual ownership of the building they live in. Owner’s share the ownership of the common areas.

I hope this helps.

Have any Real Estate questions? Contact me at www.JosephCapote.com or email me at JCapote@apr.com.

Filed under: Buyer's Blog, Seller's Blog, buyer, buyers, condominiums, first time homebuyers, home sellers, townhouse