House,
Condominium,
Town House,
CO-OP,
Mobile Home
The world of
residential real estate is huge, let's
take a look at the five main forms that a
non-rental home may take and try to sort
out the differences:
House
When most of us talk about a house,
we're referring to a free-standing,
single-family residence. There is also
such thing as a duplex house -- a
free-standing structure divided into two,
connected, single-family units.
The main defining characteristic of a
house, besides its free-standing nature,
is the breadth of ownership responsibility
taken on by the buyer. The owner of a
house owns the building itself, as well
as the land, and is responsible for
all upkeep associated with those areas,
including lawn and landscape maintenance,
painting, repairs and real estate taxes.
Sometimes, houses may be grouped
together in a definite community that has
shared spaces, such as a pool or
playground. These home owners pay a fee to
a home owners' association, which
maintains the shared spaces and may
provide such services as lawn care,
landscaping, and security. The home
owners' association sets rules and
regulations for the community, some even
pertaining to the aesthetic appearance of
the houses.
Townhouse (see full details here)
A townhouse is like a house in that
the owner owns both the structure and
the land on which it sits; but it is
not free-standing, so "the land on which
it sits" is limited to the front and back
yards. Townhouses are connected to one
another in a row, and are usually two or
three stories tall. They share many of the
characteristics of condominiums.
Condominium (see full details here)
If you own a
condo, you do not own the land
surrounding your living space. A condo
owner owns only the unit itself inside the walls, which is
taxed as an individual entity, and
sometimes a percentage of the common areas
of the community. Condo communities may
provide such shared facilities as a pool,
gym, tennis courts and clubhouse, all
maintained by the condo association,
which takes care of all day-to-day
management tasks. This is one of the key
advantages of condo living -- all of the
joy of using the amenities, none of the
hassles of maintaining them. Condominium
owners pay a monthly fee to the condo
association, which also sets the rules for
the community.
Cooperative
The main difference between condominiums
and cooperatives lies in the
specifics of ownership: if you own a
co-op, you do not own the unit itself.
Instead, you own a share in the
cooperative corporation. This
share gives you sole right to your living
space, but it does not give you ownership
of it. For this reason, your real estate
taxes may be covered by your co-op
membership, because the building is taxed
as a whole. Co-op members pay a monthly
fee to the corporation, which, like the
condo association, maintains the building
and all shared spaces and handles daily
management tasks. A co-op is generally
stricter about screening prospective
buyers and has more say in the handling of
your own unit. Also, a co-op may be more
difficult to finance than a condominium,
because co-op corporations may only deal
with certain banks.
Mobile Home
The clear distinguishing characteristic of
a mobile home is that it is,
obviously, mobile. Mobile homes are
sometimes called manufactured homes.
Buying a mobile home is similar to
buying a car -- sales tax applies, and
you receive a title of ownership.
Typically a Realtor cannot list a mobile
home on the unless you also own the
land the home is on. Mobile homes,
unlike other forms of housing, depreciate
in value, as cars do. If you are using
your mobile home on the road, it is, in
the eyes of the law, a car. But if you
settle in a mobile home park, your
mobile home turns into a house. Land
ownership is handled differently in
different parks: In some you must buy the
lot for your home; in others you can lease
instead of buy it; and in others you don't
buy the land at all, but instead purchase
a share in a corporation, much like buying
a co-op. Property taxes are handled in
various ways based on these distinctions.
Like condo communities, co-op buildings
and townhomes, mobile home parks have
rules that must be followed by the
residents. |
