Townhomes Do Not Exist... Legally
When you see a property marketed as a townhome, that word usually describes what the property looks like, not what you legally own.
In California, “townhome” is not a legal form of ownership. A townhome-style property is most commonly either a condominium or a fee-simple home within a planned development. Two properties can look almost identical from the outside but have very different ownership structures.
🏠 Townhome with fee-simple ownership
With fee-simple ownership, you generally own the home and the individual lot underneath it. The property may still have an HOA and shared common areas.
But here is an important distinction: fee simple does not automatically mean that you are responsible for the roof, exterior, or every part of the building. Depending on the community, the HOA may maintain certain exterior components, private streets, landscaping, roofs, or other shared improvements. You have to check the CC&Rs and HOA documents to know exactly who is responsible for what.
🏢 Townhome with condominium ownership
A property can look exactly like a traditional townhome but legally be a condominium.
With a condo, you own a defined unit plus an interest in the common areas. People often describe this as “owning everything within the walls,” but that is only a simplification. The exact boundaries of your ownership are determined by the condominium plan and governing documents.
The HOA commonly maintains more of the exterior and common areas in a condominium development, but again, maintenance responsibility varies from one community to another. You should never assume the HOA maintains the roof or exterior simply because the property is legally a condo.
So, what is a townhome?
A townhome is essentially an architectural style, not an ownership type. The California DRE specifically distinguishes the physical form of a townhome from the property's legal ownership structure.
A townhome typically:
has its own private entrance;
has two or more levels;
does not have another residence directly above or below it;
shares one or more walls with neighboring homes.
So when you're buying a townhome, don't stop at what the listing calls it.
Find out how the property is legally owned, what exactly you own, and what the HOA versus the homeowner is responsible for maintaining. Two “townhomes” that look nearly identical can come with very different ownership and maintenance responsibilities.