Here are a few Frequently Asked Questions about community living. The answers are in general terms and meant only as a guide to assist in your home buying process. Visit our Housing Styles and Ownership Styles pages for additional information. Always consult the appropriate authorities about legal issues, and always check with the specific development's association for it's own requirements and definitions.

• What is the difference between a condominium and a townhouse?
• What is an assessment?
• What are special assessments?
• Why are the association fees higher in condominiums than townhomes and vary so much between developments?
• What type of association amenities are included?
• Do I need to purchase separate homeowners insurance?
• Can I bring my pet with me when I move?
• What type of mortgage loan can I obtain on a condominium or a townhome?
• Please define "common elements" and 'limited common elements".
• Who takes care of things around the property?
• How does the condo association work?
• What do the directors and officers do?
• What if I don't want to be involved to that extent?

What is the difference between a condominium and a townhouse?

This refers to an ownership concept rather than a housing style. Both are owned individually and have an association to share the luxuries of maintenance, security, and recreational extras that would cost much more on an individual basis. In townhome living, the owner holds title to a parcel of land and the building on the land, exclusive use of their limited common areas, and use of the association common areas. As a condominium owner, you receive title to a particular unit defined in the association documents, and an equal proportionate interest and use of the common areas.

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What are assessments?

An assessment, sometimes called an association fee, is a dollar amount paid each month by the condominium or townhome owner to pay for the common expenses of the property. Be sure to consult the budget for any particular property to learn what is covered in the assessment for that property.

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What are special assessments?

A homeowners association has the right according to their association bylaws to levy a special assessment just like city governments. If there isn't enough money in reserve accounts for a maintenance expense, the association usually has no choice but to raise the association fee for a certain period of time or levy special assessment to pay for it. A well run association will have all future long term maintenance items accounted for, and reserve accounts figured in their budget.

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Why are the association fees higher in condominiums than townhomes and vary so much between developments?

Condominiums usually include more utilities in their fees and have more shared amenities. Some of the factors that may impact the fees include the age and condition of the buildings, the number of units to share the costs, and adequate reserve accounts for long term maintenance. With each association being different, here is list of what might be included:

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What type of association amenities are included?

Townhomes usually have few to none, while condominium amenities might include:

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Do I need to purchase separate homeowners insurance?

Condominiums have a blanket policy for building insurance and it is included in the association fee. Coverage for your personal property is not included and is optional, but recommended. Unlike a renter's insurance policy a Condo policy (typically called 'HO6') covers your personal property and finishing details such as flooring, lighting, appliances and cabinetry. In townhomes some associations have a blanket building policy and others do not, and you would need to purchase a separate policy just like in a single family home. Note that some combinations of building styles and ownership styles overlap - always check with your association for specific requirements.

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Can I bring my pet with me when I move?

The policy on pets would be stated in the rules and regulations or bylaws. Apartment style condominiums are the most restrictive, usually not allowing dogs, and only about one third of the developments allow cats. Manor style condominiums will usually take cats and dogs up to 25lbs. Townhomes typically are OK with either as long as you follow the conduct rules.

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What type of mortgage loan can I obtain on a condominium or a townhome?

A lender can be a bank, mortgage company or anyone who is willing to make a loan, including a friend or family member. Most condo buyers seek loans from financing professionals and not personal friends or family. These professionals may specialize in condominium financing.

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Please define "common/limited-common elements."

Areas of the property that are to be used by all residents are called common elements. These can include, but are not limited to, laundry rooms, halls, walkways and lawns. Each unit owner has an undivided ownership interest in the common elements. Limited common elements have more restrictive terms of usage that favor a sole unit owner. These can include, but are not limited to, driveways, sidewalks, and roofs.

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Who takes care of things around the property?

A property management company usually runs the day-to-day operations in and around the property such as bill payment, assessment collection and many other aspects of association management for a fee, which is provided for in the monthly assessment paid by each unit owner. The association's board of directors (board of managers, and similar names) also track operations and vendors.

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How does the association work?

The association's main purpose is to control, regulate and maintain the common elements of the property. Through the bylaws, the association's board of directors is authorized to regulate and administer the affairs of the property, especially in regard to maintenance and repair of the common elements. The association has the authority to assess and collect sufficient money to maintain the common areas and to ensure the financial stability of the property.

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What do the "board of directors" do?

Simply stated, the association directors make the major decisions about the property, and the association directors implement those decisions. For instance, the directors may meet to decide that the hallway cleaning service is no longer working out and a new service needs to be found. One of the officers, typically the president, will then be responsible for gathering bids and bringing this information to the board. The president will then follow the wishes of the board and hire the cleaning service which best suits the needs of the association.

In addition to the president, other officers' positions typically are: vice president, who assists the president; treasurer, who handles the financial's; and secretary, who keeps record of the meetings.

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What if I don't want to be involved to that extent?

The reality is that most unit owners do not serve in a director's or officer's capacity, simply because there are usually more units in a property than there are director and officer positions. Every unit owner has a vote, and a say-so, in the running of the property, even if an owner chooses not to serve as an officer or director.

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