The difference in these types of homes primarily resides in the legal definition of ownership. In a condominium you own the air space within your walls while a townhome includes ownership of the land beneath your unit and the vertical airspace above. In layman’s [...]]]> What is the difference between a condo and a townhome?

The difference in these types of homes primarily resides in the legal definition of ownership. In a condominium you own the air space within your walls while a townhome includes ownership of the land beneath your unit and the vertical airspace above. In layman’s terms, a condominium typically has a neighbor above or below while a townhome does not. In the Prescott MLS, there is a distinction between the two and in the Search section you can search either of them.

What is similar about condos and townhomes?

While the legal definition of ownership may differ, a typical common benefit of both condos and townhomes in the Prescott area is the availability of common amenities such as pools, clubhouses, sports facilities, a Homeowner’s Association, and HOA fees.

Common Area Typical of Prescott Condo Market

What are Homeowner Association Fees (HOA) and how do they work?

The HOA fee is an amount paid equally by each owner to share common community expenses. These fees are usually paid monthly and vary depending on the amenity package and size of each community.

What does the typical HOA fee include?

Typically, the HOA fee covers maintenance of building exteriors, landscaping, pools/spas, roofs, blanket insurance, sewer, garbage, and water. Slight variations exist in the coverage from community to community. Make sure you read and understand what is covered and what is not and check with your insurance company to see how much coverage you need to augment to HOA policy.

What else does an HOA fee go towards?

In addition to ongoing maintenance like pool service, the HOA is also responsible for the maintenance of all common areas and often to roofs in a complex. Part of the HOA also goes towards a reserve fund that the HOA uses to fund major maintenance items such as new roof on the clubhouse. Make sure that you know the status of the financials of any HOA you are buying into. While there are many upsides to owning a condo or townhome, if you buy into a bankrupt association, you may have more out of pocket expenses than you may have planned for.

What is a Management Company and what is their role?

The Management Company is an independent company hired by the homeowners association to operate its business. Functions they handle include collection of HOA fees and special assessments, bookkeeping, payments of expenses, and hiring of contractors for community maintenance and repair.

Who is the Board of Directors and what do they do?

The Board of Directors consists of persons elected by owners in the community to govern the affairs of the development. The Board usually is made up of a President, a Treasurer, a Secretary, and two members at large.

What are the advantages to living in a planned community with a HOA?

People purchase homes in planned communities for the many benefits this type of lifestyle offers. Shared expenses of common maintenance items such as exterior painting and roofs helps to avoid major individual expenses. People frequently on the go often prefer ownership in a property with minimal to no exterior upkeep such as landscaping and pools. Finally affordability is a major factor in this form of ownership. Pools, spas, tennis courts, and club houses are often incorporated into the HOA fee.

What are CC&R’s and Rules & Regulations?

Covenants, Conditions, and Restrictions (CC&R’s) and Rules and Regulations are the governing rules of the complex.

Does a HOA prohibit me from renting my condo?

Generally a HOA does not prohibit an owner from renting out their condo. An owner must refer to the management company or CC&R’s to determine if this is allowed.

Do planned communities allow domestic pets?

This will vary among communities. The majority of subdivisions allow domestic pets such as cats and dogs. Some limitations may exist, therefore owners need to refer to the community’s governing documents or the management company.

Do I need homeowners insurance or is it covered in the HOA fee?

Most attached condos townhomes will have a blanket insurance policy that covers the structures for fire and hazard. This blanket policy is paid through a portion of the HOA fees. It is highly recommended to obtain coverage for the interior of your individual unit as your contents are typically not covered by the HOA insurance policy. Please consult with your insurance agent with additional questions.

Do you also assist buyers in purchasing single family homes?

Yes! We are a full service real estate team with many years of residential sales experience in all types of homes. Many times our customers come to us to help sell their current condo and purchase a single family home as their family grows. If you find a condo or townhome is not right for you, our same great service will help you to find a single family property to call home.