22 Feb What’s the Real Difference between a Townhouse and a Condominium?
New Townhomes were built all through Apple Valley, Rosemount, Lakeville and Farmington during the booming market. Many of those complexes are classified as Condominiums instead of Townhouses. There can be some challenges when buying a Condominium or Townhouse, specifically the financing of a Condo can be more expensive than a Townhome.
The difference is Townhome owners hold title to their units and the land beneath them, owning the land is the reason townhomes are not stacked on top of each other. Townhome owners have exclusive use of the association common areas and Townhome owners pay property taxes on their individual units.
Condos or Townhouses?
Individual Condo owner hold title to the condominium unit only, not the land beneath the unit, so condos may be stacked on top of each other. Condo owners have a proportionate share of the interest (ownership) and use of common areas. Common areas include land, the exterior of buildings, hallways, roofs, swimming pools and any area used by multiple owners. Condo owners pay property taxes on their individual units too.
Additional information can be found on the Minnesota Office of the Revisor of Statues, it’s a grueling read but offers lots of information. For specific questions about your townhouse or condo, just click here, we’ll be happy to help.
