Finding the perfect place to call home comes with many choices and big decisions. Should I rent or buy? Do I want to live in an apartment, condominium, townhome, or single-family house? What are the differences, benefits, and challenges of each option?

While condos and townhomes are similar, and both often promise more convenience and affordability, and less maintenance, than a single-family home, there are some notable differences when it comes to lifestyle, privacy, fees, and responsibilities. In this blog post, we’ll outline the key differences between condos and townhomes so you can make an informed decision for you and your family.

What is a Condo?

Under M.G.L. c. 183A, the governing statute for all condominiums within Massachusetts, a condo is defined as a building or group of buildings where portions (“units”) are owned by a “unit owner.” The unit typically includes one or more rooms, and can include balconies, terraces, storage lockers, and/or parking spaces. A condo also has “a direct exit to a street or way or to a common area leading to a street or way. [M.G.L. c. 183A]”

Under Massachusetts law, a condo is created when two documents are recorded at the applicable Registry of Deeds:

1.  The Master Deed: “The instrument by which the Condominium is submitted to the provisions of [M.G.L. c. 183A]”
   This document therefore “creates” the Condominium (and the units therein) and defines what areas of the condo that comprise the units, the common areas, and any limited common areas that may be appurtenant to any unit.
2. The Declaration of Trust (or “By-Laws”): “The by-laws of the organizations of unit owners [M.G.L. c. 183A]”
   This document governs the Condominium Association and promulgates how the Condominium Association is going to govern itself (which in turn it may contract out to a professional property management company, for example, especially for larger Condominium Associations).

Additionally, Unit Plans and a Condominium Site Plan must also be recorded at the Plan Desk for the Registry of Deeds. This basically serves as an illustration of the condominium as created by the Master Deed.

What is a Townhome?

A townhouse, according to Massachusetts law, is a single-family home that is attached to at least two others, usually side by side. Each unit extends from the foundation to the roof and typically has a yard or outdoor space on two sides.

However, many townhouse developments are legally set up as condominiums. It is quite common that when a developer builds a complex of “townhouses,” they submit the property to M.G.L. c. 183A, thereby making them condominium units.

As townhouses are, in most cases, physically attached to each other, it makes sense for developers to submit the property to M.G.L. c. 183A. If a property is submitted under M.G.L. c. 183A, it is technically a “condominium unit” under the legal definition. Therefore, the owners of the respective townhouses, like owners of any other condo units, would need to meet and discuss how to govern the condo including creating a budget, obtaining a master insurance policy, and discussing maintenance/repair(s) to any common areas.

However, real estate agents may still try to describe these types of properties as “townhouse condominium units” if they fit the above description of a townhouse, instead of stating that the property is just another condominium unit on the market. Many real estate agents like to utilize the term “townhouse” because it may evoke a sense of single-family living, due to the fact that it has multiple floors and other limited common areas for that unit’s own enjoyment, such as a roof area and/or yard. This may in turn increase the value of the property.

Which One is Right for You?

When evaluating a property that is categorized as a “townhouse,” determine if it is in fact part of a condominium. If so, you should complete all standard due diligence as if you were purchasing a condominium unit. This includes reviewing the recorded:

• Condominium Documents
• Condominium Plans
• Condominium Budget
• Condominium Meeting Minutes

In addition, a buyer should speak directly with a Trustee or property manager to discuss any upcoming projects, issues, and/or upcoming financial changes to the condominium.

Conclusion

In Massachusetts, the line between what makes a property a condominium or a townhome can be blurry, but understanding the legal definitions of each and performing your due diligence on a dwelling can make you better equipped to choose the right option for you and your family.

If a condo or townhome may be the next move for you, reach out to David Forrest, real estate attorney at Ligris + Associates PC.

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