TOWNHOUSES: FEE SIMPLE OR CONDOMINIUM OWNERSHIP
A townhouse, also known as a row house, refers to a type of property that resembles a single-family home, except that it usually shares one or more walls, referred to as a party wall, with other independently-owned units. If you’re considering purchasing townhomes for sale in South Florida, it’s important to find out what type of ownership is granted in your townhouse communities of interest. You need to know if you will be granted fee simple or condominium ownership. This distinction will impact your financing options, insurance requirements, and maintenance responsibilities.
If the townhouse community is governed by an HOA and grants fee simple ownership, you shouldn’t have any trouble applying for FHA financing as long as the property is in good condition and doesn’t pose any health or safety risks that violate the FHA Appraisal Guidelines. You will also need to review the HOA’s governing docs to find out if the association covers homeowners insurance. In most fee simple townhomes, you have to purchase your own standard HO-3 homeowners insurance policy to cover the dwelling, personal belongings, and liability. When reviewing the governing docs, pay special attention to your maintenance responsibilities, including lawn care and exterior maintenance.
You can usually expect higher maintenance fees in a townhouse community that is governed by a condo association due to their extra expenses for insurance premiums and exterior maintenance. The condo association will typically maintain the landscaping, roof, and exterior of the townhouse. In most cases, the association carries a master insurance policy to cover the buildings and common areas. The type of master policy will dictate how much coverage owners will need to purchase on their own. Individual owners are usually required to get an HO-6 insurance policy to cover the interior of the unit and their personal property.
If the townhouse is governed by a condo association, securing FHA financing can be difficult. Ask your lender if the townhouse community has been approved for FHA / VA financing. If the complex hasn’t been approved, the lender might be able to perform a single unit approval but don’t get your hopes up, as single unit approval has become pretty difficult. If you are applying for conventional financing, ask the association if there is a minimum down payment requirement. It is common for condo communities to require 20% to 30% down to avoid foreclosures that result in unpaid maintenance fees.
Search Townhomes For Sale In South Florida
If you’re searching for townhomes for sale in South Florida, you’ve come to the right spot! Visit our featured cities page for active listings and very detailed community information, including maintenance fees, association rules & regulations with detailed pet policies, and neighborhood amenities.
Click the links below to browse townhomes for sale in South Florida by popular search criteria:
Waterfront Townhomes (All waterfront types: Lakefront, Intracoastal, etc.)
Luxury Townhomes ($1MM+)
If you’re just interested in seeing listings without all of the additional community information included in our featured cities page, see townhomes for sale in South Florida by city at the links below:
BOCA RATON TOWNHOMES | BOYNTON BEACH TOWNHOMES | DELRAY BEACH TOWNHOMES | FORT LAUDERDALE TOWNHOMES | JUNO BEACH TOWNHOMES | JUPITER TOWNHOMES | LAKE WORTH TOWNHOMES | LANTANA TOWNHOMES | PALM BEACH GARDENS | SOUTH PALM BEACH TOWNHOMES | WELLINGTON TOWNHOMES | WEST PALM BEACH TOWNHOMES |
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