What is a condominium/Townhouse?

Condominiums are buildings in which individuals separately own the air space inside the interior walls, floors and ceilings of their unit, but they jointly own an interest in the common areas that they share.

The building structure is part of the “common area” owned by the homeowner association (HOA) of which all the condo owners in the complex are automatically members.

In addition to paying a mortgage, each owner is responsible for paying a monthly fee to the condo association, which is made up of the unit owners. The fee covers maintenance, repairs, and building insurance.  

What is the Homeowners’ association (HOA)

Created for the purpose of managing a common interest development.The duties of the association are normally handled by the members of the board of directors.

Some of these duties include:

Maintain the common areas

Financial planning

Architectural control

Protect and insure the association assets

Enforce the CC&Rs

Collect assessments and conduct meetings.   

What is the common area?

The common area is the entire common interest development except the separate units of the individual owners.
Typical examples of common areas include the land, lobby, hallways, swimming pool, spas, driveway and parking areas, private streets and pathways, clubhouse, guard gate and common gardens.

 What are the CC&Rs (covenants, conditions and restrictions)?

These are the recorded restrictions which contains, among other things, a legal description of the common interest development, the nature of the development, the name of the homeowners’ association, and the restrictions on the use or enjoyment of any portion of the development.

The CC&Rs usually also contain the basic rights and obligations of the owners and the homeowners’ association with respect to dues, assessments, maintenance, and other basic items

 Who pays for the insurance?

An owner's financial interests should be protected by two insurance policies. The homeowners association policy should cover the structure of the building, the common areas and liability for any injuries that occur in the common areas. The owner's policy should cover his or her personal property and liability for any injuries that occur inside his or her unit. Always consult an insurance professional for advice about your personal situation.

 Why buy a condo/townhouse?

Condominium advantages:

 It is an appealing way to enter the housing market if the cost of a single-family home is out of your reach if you are a  first-time home buyer or you would like to purchase a home in high-priced housing markets.
 
 Condos are typically smaller  and less expensive than a single family home.

 Maybe for older folks who are ready to downsize.

 Tax benefits similar to single-family houses.

 Pride of ownership rather than being a renter and potential resale profit as the condo appreciates in market value.

Unlike a house, condos offer a lifestyle that is free of yard work and exterior maintenance and repairs. Exterior maintenance is the responsibility of the condo homeowner’s association.

Many condominium communities also offer attractive amenities such as fitness facilities, tennis courts, and swimming
pools that you might otherwise be unable to afford if you purchased a single-family home.