Real Estate Investing
Housing Associations

Is it true or false that a condo townhome is much like buying a freehold property except that you can expect to receive specific services for the special fees you pay?

Answer

Wiki User
10/26/2009

True or false doesn't quite work as an answer to your layered question.

First, a condominium, by definition, is a living space one owns, together with other real estate assets owned with other owners in common. Special fees you pay are called monthly assessments, and they are spent in order to protect, maintain and preserve the value of the assets you own in common.


It can be a high-rise condominium, a development of buildings, even a marina. It's a special kind of home owner's association: the condominium association is a business the operates the living areas of all the members, each of whom owns a condominium unit.


A townhome can be a style of building. It can be owned in a condominium community or in an apartment-like real estate ownership arrangement or in a city, where it might be called a brownstone. Different geographies use this term differently.


A freehold property is apparently another way of describing the notion of real estate over which one holds title of an indeterminate term, as opposed to leasehold, which has an end term.