|
What are the differences between Condos and
Townhomes?
|
|
1.
Legal descriptions define the kind of property:
condo is space,
footprint means townhouse.
|
2.
Co-ops and condos may look alike but their legal
definition is very different.
A co-op is a corporation with shares. The living unit is an apartment.
Financing is also structured differently.
In Charlotte, NC, there are two co-ops: Kimberlee and Morrocroft. |
|
3.
Sometimes people say garden when they mean " all
on one floor". A better description for that would be "flat" not
unless there is no unit above or below.
|
4.
Yes, the fancy name for condo is villa...it still
defines space. |
5.
Here's a telltale sign: a condo has a Unit File
designation, ergo U/F. When in doubt look for U/F in the legal
description. |
6.
A townhouse requires a survey. A survey can only be
shot if there is space between the units. Most conversions, while
looking like ownhomes or cottages are actually condos. |
7.
It may come as a surprise but yes, there is a
difference in financing for a condo and for a town home so it is really
important to make sure you know the legal definition of the unit you may
be considering.
The differences have changed as the mortgage lending business redefines
itself. In wriing an offer or seeking financing, be doubly sure there
are no nuances...the only constant in financing difference would be, but
not always, hazard insurance. |
8.
Insurance: the is special condo insurance that insures
from the paint "in". The dwelling is covered by the homeowners
insurance.
Improvements should be detailed because regular condo insurance may not
cover what is perceived as regular loss.
(See discussion on improvements covered by insurance.) |
9.
A town home owner would need the same kind of insurance
as a single family home. Often, hazard insurance policies for a group
command a lower premium. |
10.
Attached housing depends on certain qualifications for
loan approval from FHA, VA and for Conventional type loans. Make sure
you know what approvals the complex has. Why is this important? The old
rule: be sure you can get out. Special financing and balloon type loans
may deter you when you get ready to move on. |
11.
Check owner occupancy percentage. High investor ratios
may make it hard for you to get a loan and if you do it may be at a
higher rate and may require more money down. |
12.
If you are a pet owner, read the fine print in the home
owners documents. Some complexes forbid pets, some have weight limits. |
13.
Read the complex documents on the type of vehicles
allowed to park within the complex...the size of a truck if at all,
boats, trailers, motorcycles. Read the fine print. |
14.
Some complexes prohibit the owners from renting their
units. |
15.
The colors of draperies, window covering may be
dictated in documents. Seem silly? Think about a range of colors on all
the windows and then think a basic white or eggshell. Which has more
appeal? |
16.
Exterior improvements even color changes are governed
by the homeowners associations in most cases. |
17.
Hardwoods on the second floor? Hmmm. how would that
affect the neighbor beneath you? Ask first before making any
improvements that might affect the community. |
18.
Sellers of attached dwellings should make the same
disclosures as the owners of single family homes and maybe even more.
Pending assessments for example. |
19.
Signs. There are rules for both owners and agents.
Some complexes prohibit them entirely. |
| |
| |
®