Condominium, Townhouse, Loft.... What's the difference?
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There are two factors to consider when you're thinking about the terms Condominium, Townhouse and Loft. The first is ownership and the second is style.
Ownership Issues
The legal description of any property will tell you if it is a Condominium or a Townhouse. Condominium legal descriptions typically contain a Unit Number, and the legal descriptions of Townhouses usually contain a lot and block. Basically, with a Condominium you own "the space between the walls, floor and ceiling". With a Townhouse, you own the entire structure and also own the land underneath the structure (which is defined by the lot and block). There is no special legal designation for a Loft. These are typically Condominiums in terms of ownership.
For both types of ownership, there is usually also a percentage ownership interest in the "Common Areas". Common Areas are things like pools, clubhouses, green areas, tennis courts, parking lots, common fences, etc. that are available for use by all residents of the complex.
The largest question for the owner is "Who is responsible for maintenance?" In general, Condominium owners are only responsible for maintenance inside the unit. This includes heating and air conditioning, plumbing, electrical, appliances and flooring, etc. The Condominium owner is not typically responsible for any kind of exterior maintenance. A Homeowner's Association typically manages the entire property and has a budget that is used for maintenance items such as roof replacement, gutters, exterior paint, siding, fencing, etc. The funds in this budget come from each owner's Monthly HOA Dues.
Townhouse owners, on the other hand, are more likely to be responsible for at least some - if not all - exterior maintenance. This is because they own the entire structure - not just "between the walls". Townhouse properties usually have a Homeowner's Association as well, but their duties and responsibilities are typically focused on the maintenance of the Common Areas.
Each complex varies in what their HOA is responsible for, so it is important to read and understand the HOA's By-laws before purchasing.
Style Issues
You can't necessarily tell if a property is legally described as a Condominium or Townhouse just by looking at it. A property may look like a Townhouse, and actually be a Condominium.
Stylistically, a Townhouse is a structure with walls adjoining a neighbor's walls. A "Townhouse" is contrasted with a "Country House". Country Homes typically have a lot of land around them, and Town Houses do not. A Townhouse can be single or multi-story. Sometimes Townhouses are free standing, have no walls that adjoin a neighbors, and strongly resemble single family homes.
Stylistically, a Loft is - well - Lofty. It is a space that is above something else - like a business. The term conveys open space, high ceilings and a plentitude of windows, although this is not always the case.
Condominiums bring to mind Co-Ops and high-rises, but they come in many forms.
Putting it all together
Check the legal description and don't depend on how a property looks or is advertised. A Loft is probably a Condominium, and a structure that looks like a Townhouse could be a Condominium as well!
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| Condominium Structure in the Northwest Hills area of Austin |
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| These Townhouses are in the Clarksville neighborhood of Austin |
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| The Plaza Lofts are in Downtown Austin. |
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