CONDO OWNERSHIP
From Listings to Living
A new community has two rows of three-story attached homes facing each other across a shared green. The sales office calls the north row "townhomes" and the south row "condos." The floor plans are nearly identical, the prices are within a few thousand dollars, and the buyer who asks what the difference is gets an answer about finishes. The real difference is in the county records, and it decides who insures the roof, who replaces it, and how hard the loan will be.
Condos and townhomes are not two kinds of building. A townhome is an architectural style: an attached home that runs from foundation to roof. A condominium is a form of ownership created by a recorded declaration. Because the two words answer different questions, a home can be both, and "condominium townhomes" are common in many markets.
So the useful question is not "condo or townhome?" It is "how is this townhome owned?" The answer sits in three documents you can read before you make an offer: the deed, the plat or condominium survey, and the declaration. If you are still deciding between the two as alternatives, the head-to-head comparison is in condo vs townhouse.
Leevli Editorial
The building codes describe the structure. The International Residential Code defines a townhouse as "a single-family dwelling unit constructed in a group of three or more attached units in which each unit extends from foundation to roof and with a yard or public way on not less than two sides," as quoted by the International Code Council. Nothing in that definition mentions title.
State condominium acts describe the ownership. Florida defines a condominium as "that form of ownership of real property... comprised entirely of units that may be owned by one or more persons, and in which there is, appurtenant to each unit, an undivided share in common elements." The same statute defines a unit as "a part of the condominium property which is subject to exclusive ownership," and adds that "a unit may be in improvements, land, or land and improvements together, as specified in the declaration" (Fla. Stat. 718.103).
That last sentence explains why condominium townhomes vary so much. One declaration makes the unit the space inside the walls and leaves the roof, siding and ground as common elements. Another makes the unit the whole building plus the land under it. Both are condos. They behave very differently at repair time. For the ownership basics, see what a condo is and what you actually own.
In communities that market condos and townhomes side by side, most attached homes fall into one of these configurations. The right-hand columns describe common outcomes; the declaration and state law decide the actual answer for any given property.
| Configuration | What you typically own | Who typically insures the structure | Fannie Mae project review |
|---|---|---|---|
| Fee simple townhome in an HOA (a PUD) | Your lot and the building on it; the HOA owns the shared green, roads or pool | You, with an HO-3, unless the project's legal documents provide a master policy | Waived for PUD units, with basic requirements |
| Attached condo townhome in a larger project | The unit as the declaration defines it, plus an undivided share of common elements | The association's master policy; you carry an HO-6 for what it leaves out | Required (full review, or Fannie Mae's PERS process for new projects) |
| Attached condo townhome in a two- to ten-unit project not part of a larger development | Same as above | Same as above | Waived, with basic requirements |
| Detached condo home | Often the house and its land as the unit, with roads and amenities as common elements | Depends on the declaration and state law | Waived for detached condo units, with basic requirements |
The project review column comes from Fannie Mae's Selling Guide B4-2.1-01. The insurance column for PUDs follows Fannie Mae B7-3-03, which treats individual policies as standard for PUD units unless the project documents call for a master policy, and which requires condo master policies to cover both the common elements and the residential structures.
Listing descriptions use "townhome" and "condo" loosely, and so do some agents. When you shop condos and townhomes in the same area, these documents are the only reliable labels.
A fee simple townhome is usually described by lot and block on a recorded subdivision plat: "Lot 14, Block B, of a named subdivision, according to the plat recorded in Plat Book so-and-so." A condominium townhome is usually described as a unit: "Unit 14 of a named condominium, according to the declaration of condominium recorded in Official Records Book so-and-so, together with an undivided interest in the common elements." The words "unit," "declaration of condominium" and "undivided interest" are the tell. The title commitment uses the same legal description, so your title company can confirm it early.
A subdivision plat draws lots. A condominium survey draws units and common elements. Florida, for example, requires the declaration to include a survey, a graphic description of the improvements in which units are located, and a plot plan that together identify "the common elements and each unit and their relative locations and approximate dimensions" (Fla. Stat. 718.104). If the drawings show unit boundaries running along interior wall surfaces, the exterior is not yours.
A "Declaration of Condominium" creates a condo. A "Declaration of Covenants, Conditions and Restrictions" usually creates a planned community with an HOA. The statute can differ too. Florida's homeowners association chapter does not apply to any association regulated under the condominium chapter (Fla. Stat. 720.302), so a condo townhome and a fee simple townhome on the same street can follow different rules for insurance, records and elections. Our guide to HOA governing documents and which one controls explains how to read the stack.
You can pull recorded deeds and declarations through Leevli's Deeds & Docs or from the county recorder directly. Do it before the inspection period closes, not after.
In a condominium townhome, the boundary line in the declaration is the single most consequential sentence you will read. Three drafting patterns show up often.
Then come limited common elements: common elements "reserved for the use of a certain unit or units to the exclusion of all other units, as specified in the declaration," in Florida's words (Fla. Stat. 718.103). A townhome's patio, driveway, small yard or stoop is often a limited common element. You get exclusive use. Whether you or the association pays to repair it depends on the declaration, and this is where many owner disputes start.
Insurance follows the legal form, not the floor plan.
For a fee simple townhome, you usually insure the whole structure yourself with an HO-3 homeowners policy, and the HOA insures only what it owns. Some planned communities buy a master policy on the buildings; Fannie Mae accepts that when the project documents provide for it.
For a condo townhome, the association usually carries the master policy on the structure and you carry an HO-6 for what the master policy leaves out. Florida spells out the split by statute: every residential condominium association must insure the condominium property "as originally installed," and the master policy must exclude personal property in the unit plus floor, wall and ceiling coverings, electrical fixtures, appliances, water heaters, built-in cabinets, countertops and window treatments that serve only the unit (Fla. Stat. 718.111). Those items fall to the owner and the owner's policy.
Florida also allows a declaration to relieve the association of insuring condominium property that consists of freestanding buildings, with no more than one building in or on a unit, if the declaration requires the owner to insure it. That exception fits detached condo homes, not attached townhomes.
The expensive mistake runs in both directions. A buyer who puts an HO-3 on a condo townhome pays for structure coverage the master policy already provides and may still be short on interior finishes and the master deductible. A buyer who puts an HO-6 on a fee simple townhome leaves the roof and walls uninsured. Before you bind a policy, show your agent the declaration's insurance article. Our guide to how much condo insurance you need covers sizing the HO-6.
In a fee simple townhome, the roof over your unit is usually yours to maintain and replace, unless the CC&Rs hand exterior maintenance to the HOA. Some communities do exactly that and price it into dues, so read the maintenance article rather than assuming.
In a condo townhome where the roof is a common element, the association maintains and replaces it as a common expense, funded by dues, reserves or a special assessment. After an insured loss, the association generally controls the rebuild. Florida law says reconstruction after a property loss must be undertaken by the association, and an owner may do work on portions of the unit only with the board's prior written consent (Fla. Stat. 718.111). That surprises buyers who expected to choose their own roofer.
Exterior changes follow the same logic. Swapping a front door, adding a skylight or replacing windows can require association approval in either form, but in a condo you may be altering a common element you do not own at all.
Lenders care about the legal form because the building is part of their collateral. Fannie Mae waives project review for PUD units, detached condo units and units in small condo projects that are not part of a larger development, but requires it for attached condo units in larger projects (Fannie Mae B4-2.1-01). Fannie Mae's stated concerns include the project's financial stability, its condition, project-level litigation and inadequate insurance, and a project that fails review can stall the loan.
FHA buyers need a condo townhome in an FHA-approved project, or one that qualifies for single-unit approval: a project that is complete, has at least five dwelling units and is not a manufactured home project, meeting a subset of the project standards (HUD). A fee simple townhome in a PUD does not go through that condo approval process.
The practical step: when you request a loan estimate, tell the lender the property is a condominium if the deed says so. The way a listing labels the home does not change which review applies, and a late surprise can push your closing date. For the broader rent-or-own picture, see condo vs apartment vs townhouse; if a detached house is also on your list, read condo vs house pros and cons.
The listing will not tell you how the association actually behaves when a roof leaks. People who live there will, through Ask a Resident. When you are ready to compare homes, browse listings with the legal form in mind.
Owners in a condo townhome community learn the real maintenance split the first time something breaks, which is knowledge no listing carries.
Listings show the property, but they rarely explain the lived reality around it. On Leevli, a mover can explore the city, review neighborhood and building information, and ask a verified resident the specific questions that remain unanswered. That human layer helps readers know what to investigate before signing a lease, making an offer, or choosing between two addresses.
They describe different things. A townhome is an attached home built from foundation to roof, which is a construction style. A condo is a form of ownership in which you own a unit plus an undivided share of common elements. A townhome can be owned fee simple on its own lot inside an HOA, or it can be a condominium unit. The recorded documents decide which, not the look of the building.
Read the legal description in the deed or the title commitment. If it refers to a unit in a declaration of condominium, together with an undivided interest in the common elements, it is a condo. If it refers to a lot and block on a recorded plat, it is usually fee simple. The title of the declaration, and the statute the association operates under, will confirm it.
Usually an HO-6 unit owner policy, because the association's master policy covers the structure. Your HO-6 covers what the master policy excludes, such as interior finishes, fixtures, appliances and belongings, plus personal liability and loss assessment coverage. A common mistake is buying an HO-3 out of habit. Confirm the split in the declaration's insurance article before you bind a policy, since some detached condos shift structure coverage to owners.
It depends on where the declaration draws the unit boundary. When the roof, siding and grounds are common elements, the association maintains them as a common expense and you handle the interior. When the unit includes the building, more of the exterior can fall on you. Limited common elements such as patios and driveways are the gray zone, so check who pays for them specifically.
It can be. For loans sold to Fannie Mae, attached condo units in larger projects need a project review that looks at the association's budget, insurance and litigation, while PUD units and detached condo units are waived from that review. FHA loans require an approved condo project or a single-unit approval. A fee simple townhome skips the condo project review entirely.
Not in any consistent way. Condo townhomes often carry higher dues because the association insures and maintains the structure, while fee simple owners pay lower dues but fund their own roof, siding and HO-3 premium. Compare total cost over several years, including reserves, likely assessments and insurance, rather than the monthly dues line alone, before deciding which one is the better value for you.
Often not without approval, and sometimes not at all, because those parts may be common elements you do not own. In Florida, reconstruction after an insured loss must be undertaken by the association, and an owner may work on portions of the unit only with the board's prior written consent. Other states and declarations differ, so read the maintenance and alterations articles before you hire anyone.
Yes. Each state has its own condominium act, and many have a separate statute for homeowners associations. In Florida, condos fall under chapter 718 and HOAs under chapter 720, and chapter 720 does not apply to associations regulated under chapter 718. Insurance duties, records access and voting rules can therefore differ between two townhomes on the same street. Check the statute your association operates under.
Often a matter of days if you start early. Many county recorders post deeds, plats and declarations online, and the title commitment arrives early in the transaction with the legal description. Order them at the start of your inspection period so there is time to adjust insurance quotes and tell your lender about any condo review before the contingency deadline passes.
A detached condo is a freestanding house that is legally a condominium unit. You typically own the house and sometimes the land under it as your unit, while roads, amenities and open space are common elements. Fannie Mae waives project review for detached condo units, and Florida allows a declaration to make owners of freestanding buildings insure their own structure instead of the association.
Editorial review: verify current federal and state law, insurance regulations, HOA and condominium statutes, and lender guidelines before relying on any single claim. This article is informational and does not constitute legal, financial, tax or insurance advice.
