With condominiums becoming increasingly popular among today’s homebuyers, let’s clarify the terms of ownership that seem to confuse many people.
Condo-type residences most commonly fall into two categories – condominiums and townhouses.
A condominium is usually a multi-story structure. Each owner-resident has a deed of ownership for his own unit and owns the space within the unit, but not the land under the structure. Therefore, condo units can be stacked vertically. Condo owners share title to the common areas of the development, including land, exterior of buildings, hallways, roofs and swimming pools — all areas used by all occupants. Each owner pays property taxes on their unit. Also, a monthly fee is paid to the homeowners’ association that is used for managing and maintaining all common areas.