Townhouse
A home that shares one or more walls with the units next door. You usually own the land under your unit, unlike a condo. Rules vary by community, so the HOA setup matters.
Every term like this one lights up in the step you're on.
Free to set up. No credit card.Part 1 of 4
Why a seller cares
A townhouse shares walls and usually an HOA, but you own the land under it. Whether it is treated as a condo or a PUD by lenders depends on the deed, and that affects which buyers can finance it.
Part 2 of 4
A simple example
Your townhouse is deeded as fee simple with a $180-a-month HOA. The buyer's lender treats it as a PUD and asks for the HOA documents only.
| How it is deeded | How it is underwritten |
|---|---|
| Fee simple, land included | Like a house with an HOA |
| As a condominium unit | Like a condo, building and all |
| Either | With a party wall and shared maintenance |
The word townhouse describes the shape. The deed decides the financing.
Part 3 of 4
What people get wrong
That all townhouses are the same kind of ownership. Some are condos, some are PUDs, and the buyer's lender will ask which.
Part 4 of 4 · where to read next
Where it appears in the sale
What a definition is, and what it isn't
Keighbor is a software company, not a law firm, brokerage, or tax adviser. This is general information, not legal, tax, financial, or real estate advice about your sale. Your situation may differ. Before acting on a contract, disclosure, title, tax, or pricing question, ask an appropriately licensed professional in your state.
Written and researched by Keighbor Research · drawn from the reference glossary · how we research and check what we publish
One piece of your sale. Here is where all the pieces live.
In your room, this word explains itself where it appears.
Keighbor keeps your whole home sale in one place and defines every term like this one right where you meet it, in the step you're on. Free to set up, with or without an agent.