The main difference between buying a condominium and a single-family house is the type of ownership you receive. With a condominium you get the exclusive right to the interior space of your dwelling unit, but the land, walls, grounds, fences, and facilities are owned in common with the other owners in the complex. With a single-family house you become the sole owner of the building and the land it sets on..

Usually a condominium is attached to other similar units by a common wall, while a house is detached. However, detached condominiums, where the land and improvements are owned in common do exist.

Condominium owners usually cannot remodel at will, while single-family house owners are relatively free to make changes to suit their personal needs. Condominiums are always governed by regulations set by the owners’ association, which dictate owners' rights, and restrictions on those rights. For example, the regulations may prohibit you from changing the exterior color of your unit to blue, which may be your favorite color.

When buying a condominium you should include a contingency to review and approve the articles of incorporation, the bylaws, and the rules and regulations of the condominium association. It is also a good idea to review the minutes of six to 12 months of board meetings to understand the current issues. Look over the financial documents such as the budget, reserve study, and any assessments. Find out how many of the units are non-owner occupied. Finally, you will want to know if the association is involved in any litigation. The seller, or the real estate agent will order these documents from the management company for you to examine and approve.

Condominium documents are long and complex, and buyers often complain that they do not understand them. If you cannot make sense of the condominium documents, contact a homeowner association board member for an explanation. Or hire a real estate attorney or notary who is knowledgeable in condominiums to review the documentation and give you an outline of the important points. Maintenance of the condominium complex is shared with the other owners. When you buy a condominium, you become a member of the owners' association. You pay a monthly fee, which covers management of the association, hazard insurance, and routine maintenance. A portion of your fee goes into a reserve account for future maintenance and replacement of the improvements. Sometimes utilities, such as water, garbage, and sewer are included in the monthly fee. Exactly what is covered by the homeowner fees varies from complex to complex. The responsibility for maintenance of a single-family house usually lies solely with the owner.

MORE HINTS:  No matter what kind of residence you are buying, single-family house or condominium, the property should be thoroughly inspected by a licensed contractor or professional home inspector as a contingency of the purchase. Also, insist on a complete termite inspection. And, you should carefully check out the neighbourhood.
 
Make sure that you carefully read and understand the regulations and other documents before you buy a condominium. If you are a dog lover and the regulations prohibit dogs, you want to know this before you buy, not after.

Just as the value of any one house is dependent on property values in the neighbourhood, the value of a condominium depends on the condition and desirability of the entire complex. The best way to get information about a condominium complex is the same as in a single-family house neighbourhood. Take a walk and talk with the neighbours.

Condominiums tend to be less expensive than single-family houses in the same area. They usually offer more amenities but have higher monthly fees. Condominiums are a good choice for busy professionals or retirees, who want to be in a good location, but do not want to pay the higher price for a single-family house.