The difference between Condominium, Townhomes and Co-ops

Condos, Townhouses And Cooperatives: What's The Difference?

By Leigh Maisenbacher

So, what is the difference between condos, townhouses and cooperatives? The following explanations will help you sort out the differences and similarities in ownership of these three types of real estate properties.CondosAn individual condo owner holds title to the condominium unit only, not the land beneath the unit, so condos may be stacked on top of each other. All condo owners share title to 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. A property owners' association usually manages the complex and collects fees from all condo owners in order to maintain common areas.

Townhouses

Townhouses are usually a series of single-story or multistory units that are linked to each other horizontally by common walls. Townhouse owners hold title to their units and the land beneath them, so townhouse units cannot be stacked on top of each other. As with condos, common areas are owned jointly by all townhouse owners. Townhouse owners pay property taxes on their individual units. A property owners' association usually manages the townhouse complex and collects fees from all owners in order to maintain common areas.

Cooperatives or Co-ops

If property is a cooperative arrangement, a corporation holds title to all associated real estate. Buyers purchase stock in the co-op corporation and are considered shareholders, not owners of real property. Each shareholder holds a lease to their unit that runs for the life of the corporation. The corporation pays taxes. Any mortgages are normally held and paid by the corporation. All costs to operate the building are shared by shareholders. An administrative board must usually approve new cooperative shareholders. Cooperative ownership is not common in most states of the United States.If you're informed about all of your obligations as a condominium or townhouse owner before you sign the contract and are agreeable to them, you just may have found yourself the home you've always wanted. As with every major financial commitment, though, you'll have to weigh the pros and cons of the agreement you're preparing to enter. Perhaps the most important thing to remember as you make your decision is to take your time. Demand full disclosure of condo or townhouse association fees and exactly what they cover. Know upfront what your monthly expenses are expected to be; they can vary considerably among different condominium and townhouse developments. Shop around and get some perspective on how different properties approach their residents. Ask your real estate agent if they have sold units in this development before, and what kind of feedback they have gotten from their clients after they moved in. First-hand reports are important tools during your home search process, and it would be prudent to take them to heart.

Steve Hoogenakker Steve@Landsape.Pro http://www.landscape.pro http://www.townhome.pro