What's the Difference Between a Condo and a Townhouse?

When it comes to looking for a home to buy, there are many things to consider beyond size and curb appeal. The type of housing itself is important and sometimes confusing: take condos and townhouses.

When you live in a condo, you own everything from the walls in. When you own a townhouse, you own not only the structure but also the land it sits on. Townhouses are usually smaller and more affordable than single-family homes and are typically part of a homeowners association. 

“Condos are great for buyers who are happy to pay a maintenance fee to the condo board in exchange for the management of the property,” says Kate Wollman-Mahan, an agent at Coldwell Banker Warburg. “In my experience, a townhouse buyer is typically someone willing to forgo the peace of mind that comes with having others manage the property for them because they crave the privacy that comes with their own home.”

Get clear on your wants and needs to narrow down your hunt when you are shopping for a new home.

“Buyers should consider how they want to live,” says Jeff Benach, principal of Chicago-based Lexington Homes. “Rarely do prospective buyers go out looking for either a condo or a townhome, as buyers typically know the general housing type that will work for them from the beginning of their search.”

Townhouses and condos are different for several reasons, but the biggest is the ownership structure. 

“Homebuyers are often confused by the term condo,” Benach says. “Condominium is actually a form of ownership or deed rather than a building type.”

A townhome can operate under two types of ownership, he explains. It can have a condominium ownership arrangement or fee simple ownership, like a single-family home. In the first type, you own just the unit