Fee-simple or condo-form: find out first

A fee-simple townhome is real property like a house: you own the lot and the structure, and the association typically maintains common areas only. A condominium-form townhome looks identical from the street but is legally a condo unit — the association owns and insures the building envelope, and a lender will review the association's finances as a condo project.

The deed and the declaration tell you which you have. It matters because a condo-form townhome in a building with thin reserves or a pending assessment can be ineligible for financing, while the fee-simple unit next door is not.

Shared walls and shared problems

Townhome construction concentrates risk at the party wall and the shared roof. A roof leak, a plumbing failure in a shared stack, or water migrating between units becomes a question of who is responsible, and the answer depends on the declaration. Disputes about that are a routine reason townhome sales stall.

We buy with those questions open. If there is a claim in progress, a disagreement with the association, or a repair everyone agrees is needed and nobody has funded, tell us and we will factor it in.

Townhome situations we buy in

  • Fee-simple and condominium-form townhomes
  • Units with unpaid assessments, fines, or association liens
  • Buildings with pending roof, siding, or structural repairs
  • Units with water intrusion from a neighbouring unit or a shared roof
  • Associations with low reserves or a pending special assessment
  • Rental townhomes with tenants in place
  • Inherited units and long-held investment units
  • Units with original finishes and end-of-life mechanical systems

What closing looks like

The association's resale certificate or estoppel is usually the pacing item, as with a condo. Unpaid balances are paid from the closing proceeds. Where the association can approve a buyer or holds a right of first refusal, that step is built into the closing date.

Beyond that, the process follows your state's practice: title company closings in Texas and Florida, attorney closings in Georgia and North Carolina.

Frequently asked questions

Is my townhome a condo or fee-simple?

The deed and the declaration say. It changes who insures the building envelope and whether a lender reviews the association as a condo project.

Will you buy a townhome with an unpaid HOA balance?

Yes. The balance is paid from your closing proceeds.

What if the roof needs work and the association has not funded it?

We still buy. Tell us what is known about the repair and any assessment discussion.

Do you buy tenant-occupied townhomes?

Yes. The lease and deposit transfer at closing.

Do you buy units where a neighbour's leak caused damage?

Yes, including situations where responsibility is still being argued about.