Townhouses are a great choice in housing for people who may want a little more space and privacy than a condominium provides. Looking at townhouses for sale has many advantages, including:
- As a resident, you will not have to do any yard work or other exterior work on a townhouse.
- Townhouses can have better security than houses or even gated communities.
- Townhouses are typically less expensive than traditional homes.
- Townhouses often provide better living space than condos.
A townhouse is like a house in that the owner owns both the structure and the land on which it sits; but it is not free-standing, so "the land on which it sits" is limited to the front and back yards. Townhouses are connected to one another in a row, and are usually two or three stories tall. It is important to note that townhouse refers to the type of house and not to the type of ownership. The ownership responsibility in a townhouse is the same as for a house. Many people, including real estate professionals, are not aware of this distinction. The commonly made mistake you’ll want to avoid is confusing type of house with type of ownership.
Both condos and town homes are owned individually and have an association to bear the brunt of maintenance, security, and recreational extras that would cost much more if paid for on an individual basis. In town home living, the owner holds title to a parcel of land and the building on the land, exclusive use of their limited common areas, and use of the association common areas.
Some associations for town homes have a blanket building policy and others do not, in which case you would need to purchase a separate policy just like in a single family home. The Homeowner Association Fee is an amount paid equally by each owner to share common community expenses. These fees are usually paid monthly and vary depending on the amenity package and size of each community.
Generally the fee covers maintenance of building exteriors, landscaping, pools/spas, roofs, blanket insurance, sewer, garbage, and water. Slight variations exist in the coverage from community to community. Most town homes will have a blanket insurance policy that covers the structures for fire and hazard. This blanket policy is paid for with a portion of the Homeowner Association Fee. It is highly recommended to obtain coverage for the interior of your individual unit as your contents are typically not covered by the blanket insurance policy.
Financing a town home is different than getting a new mortgage on a single family home. The whole development, or phase in which your unit was built, needs to have "project approval" for the particular type of financing you are obtaining. The different types of approvals are FHA, VA, FNMA, and FHLLB. The governing body’s approval is for a certain period of time and requires the homeowners’ association to reapply to keep their approvals current. They must meet owner occupancy ratios, have required minimum reserve accounts, and meet property construction standards and other guidelines.
Town homes can be most simply defined as units that share one or more common walls with their neighbors, but not floors and ceilings. A corner unit townhouse is often considered most desirable because of fewer adjoining walls with neighboring townhouses. |
