What is the Difference Between a Town Home and a CO-OP

Choosing the right type of property to rent can be difficult when you do not know what all of your different options are. There are a variety of different types of properties that you can choose from. This includes not only a town house, but also a condo or co-op. It is important that you understand what the differences are between all of these options so that you can make the most informed decision. The differences can be a bit complex, but it is possible to break the information down in a way that it is much easier to understand.

Ownership

One of the biggest differences involves ownership. Co-ops are not commonly seen all over the country, but they are fairly prominent in New York. This is a property that is owned by an association. This means that co-ops are leased by unit, but are still owned by an association that has their own guidelines. Town homes are most often not owned by associations and are often residential, but it is possible for them to be owned separately. However, co-ops are only owned by associations.

Style

Another big difference between town homes and co-ops can be seen in the style of the property. Most co-ops look similar and are sometimes undivided. A co-op can be available in three types including single family homes. Town homes are often only multi-family buildings. This means that the units do have one wall that is shared.

Choosing a property once you understand what the differences between co-ops and town homes can be much simpler. They are similar in many ways, but the differences are what you have to pay the most attention to. When you have a co-op, you simply own shares in a cooperative, which is not the same thing as owning the individual apartment. There are monthly maintenance fees that need to be paid and all buyers first have to be approved by the co-op board. With a town home, it is possible to have ownership in the actual property and you do not have to be approved by a board in order to buy a town home, in most cases.

Town homes are much more popular than co-ops, because there are a lot more town homes that are for sale or for rent. Since more are available, they are the more popular option.