For those of you who purchase Townhomes. It is important to understand how townhomes differ from other real estate transactions.
• The purchaser of a townhome acquires a lot and that part of the townhome building located on that lot, subject to the interests of the adjoining lot owner in a shared party wall.
• The shared wall or party wall should have an agreement that is recorded dealing with maintenance/upkeep of said wall. This agreement can be outlined in the subdivision indentures or as a separate agreement.
• Because there is ground owned with a townhome, they will need a survey in order to get survey coverage.
• Most surveyors will only perform stake/boundary surveys in connection with a townhome- so make sure you order early in the process.
• Townhomes can also be part of homeowners associations and may have a “First Right of Refusal” clause in their indentures. In this instance, the title company will need the association to sign a waiver prior to closing.
• A purchaser of a townhome will have yard maintenance, however, the subdivision may maintain it for them for a fee. If a fee is assessed, it would be prorated at the time of closing.
Townhomes are very popular in today’s market and it is important to know how they differ from the typical single family home, condo or villa. Please feel free to call with any additional questions you have regarding these transactions.
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