Condo vs. Townhome in West Palm Beach: Key Differences

Trying to choose between a condo and a townhome in West Palm Beach? You are not alone. Both options offer great lifestyles, but they work very differently when it comes to ownership, maintenance, insurance, and financing. This guide breaks down the key differences so you can align your choice with how you want to live and what you want to spend. Let’s dive in.

Condo vs townhome basics

A condominium gives you ownership of the interior of your unit plus a shared interest in the building and common areas. A townhome often gives you ownership of the unit and the land beneath it, although some townhomes are legally structured like condominiums. The legal form matters because it controls responsibilities, fees, and financing.

In Florida, condominiums are typically governed by Chapter 718 of the Florida Statutes. Most townhome communities with fee simple lots follow Chapter 720, which covers homeowners’ associations. Some attached townhomes operate under Chapter 718, so always confirm the legal structure in the community documents.

Ownership and land

• Condos: You usually own the interior airspace. You do not own the building exterior, structure, or land. You share those through the association.
• Townhomes: You often own the structure and the lot under it. That can include a small yard, driveway, or patio. Because you own more, you may have more control over outdoor space and more responsibility for upkeep.

If two properties look similar from the street, their legal setup can still be very different. Ask early whether a townhome is fee simple or part of a condominium regime.

Maintenance and monthly costs

• Condos: The association usually maintains the exterior, roof, structure, landscaping, elevators, and shared amenities. You help fund these through monthly fees and reserves.
• Townhomes: Maintenance depends on the declaration. In fee simple communities, owners often handle roof and exterior repairs, while the HOA manages shared spaces. In some attached projects, the association still covers exteriors and roofs, which makes fees feel more like a condo.

Older buildings or larger amenities can increase costs over time. Review budgets and reserve plans to understand what your monthly fees do and do not cover.

Governance, rules, and use

Condo associations operate under Chapter 718 and set rules for common areas, pets, and leasing. Townhome HOAs set community standards under Chapter 720 or, if structured as condos, under Chapter 718. Either way, the declaration, bylaws, and rules and regulations are the roadmap for what you can do with the property.

Pay special attention to policies on exterior changes, parking, renovations, and rentals. These rules can shape both your lifestyle and your investment returns.

Reserves and special assessments

Both condos and townhome HOAs collect reserves for big-ticket repairs. The difference is what they must repair. Condo buildings often have larger shared systems like roofs, elevators, garages, and building envelopes. That can increase reserve needs and the risk of special assessments.

After high-profile structural failures in Florida, associations, lenders, and buyers look closely at reserve funding and planned repairs. Older buildings that have not kept pace with maintenance may face larger capital projects.

Insurance and coastal risk

Insurance is a major factor in Palm Beach County. Windstorm exposure, hurricanes, and flood risk influence coverage and premiums.

• Condos: The association carries a master policy for the building. You typically buy an HO-6 policy for personal property and interior finishes. If a major claim occurs, high deductibles on the master policy can lead to owner assessments.
• Townhomes: If you own the structure, you will likely need an HO-3 or HO-5 policy that covers the exterior and roof. The HOA may insure shared areas only. Your individual premium can be higher, but association costs may be lower.

Flood protection is separate. In many areas, you will need a flood policy through the National Flood Insurance Program or a private insurer. Always check flood zone status and ask the association how wind and flood claims are handled.

Financing and approvals

Condo loans often involve project-level reviews. Lenders look at the association’s financials, reserves, owner-occupancy ratios, litigation, and more. Some projects may not meet investor guidelines. This can limit loan options and affect timelines.

Townhomes that are fee simple are often financed like single-family homes. If a townhome is legally a condominium, expect similar project-level scrutiny as a condo. Confirm how the property is titled early to avoid surprises.

Coastal and building age considerations

In West Palm Beach and nearby cities, many buildings are mid-rise or high-rise near the water. These locations are appealing, but they also face wind, salt air, and potential flooding. Maintenance programs, seawalls or shoreline structures, and elevator and garage systems can be significant considerations for long-term costs.

Florida introduced new inspection and reserve requirements for certain condominiums after 2021. Older buildings may have mandated structural inspections and planned repairs. Ask whether the property has completed required reports and what the results mean for owners.

Rentals and short-term stays

Many associations restrict leasing, set minimum lease lengths, or cap the percentage of rented units. Municipal rules for short-term rentals vary and can change. If rental income is part of your plan, confirm both the association’s leasing policy and the city’s current regulations before you commit.

Which is right for you?

Choose a condo if you want lower day-to-day exterior maintenance, onsite amenities, and a downtown or waterfront location. Be comfortable evaluating the association’s financials and long-term capital plans.

Choose a townhome if you want fee simple ownership, a bit more privacy or outdoor space, and more control over the exterior. Clarify whether the HOA or the owner handles the roof and façade, then budget accordingly.

If financing flexibility is important, fee simple townhomes are often simpler. If lifestyle amenities matter most, a well-run condo may be ideal.

Due diligence checklist

Use this quick list to streamline your evaluation. Ask for these items before you finalize a contract.

• Association documents: Declaration, bylaws, articles of incorporation, and rules.
• Financials: Current budget, recent financial statements, bank statements, and any reserve study.
• Reserves and assessments: History of special assessments in the last 5 to 10 years and upcoming capital projects.
• Meeting minutes: Last 6 to 12 months of board minutes to spot emerging issues.
• Insurance: Master policy details, coverage types, deductibles, and whether flood and wind are included or separate.
• Litigation: Any pending lawsuits or construction defect claims involving the association.
• Rentals: Minimum lease terms, caps on rentals, and short-term rental rules.
• Inspections: For condos, ask about structural or engineering inspections, roof condition, elevators, and parking structures. For townhomes, inspect roofs, exterior envelope, drainage, and complete a wood-destroying organism inspection.
• Occupancy mix: Owner-occupied versus rented units, which can affect financing and community stability.
• Disaster planning: How the association handles hurricane damage, deductibles, and owner assessments.
• Local compliance: Confirm any city rules for short-term rentals and parking with the appropriate municipal office.

How we help you compare options

With West Palm Beach’s mix of waterfront condominiums, garden-style communities, and townhome enclaves, small details can have a big impact on cost and livability. Our team combines market knowledge with development and construction fluency to help you read between the lines. We coordinate document review, inspection strategies, and insurance guidance with the right local professionals so you can make a confident decision.

Ready to zero in on the right property type and neighborhood fit? Connect with The Costello-Deitz Group for a private consultation.

FAQs

What is the main legal difference between condos and townhomes in Florida?

• Condos are typically governed by Chapter 718 and give you ownership of the unit’s interior with shared common elements, while many townhomes are fee simple and follow Chapter 720, giving you ownership of the structure and lot.

How do insurance needs differ for condos vs townhomes in West Palm Beach?

• Condo owners usually carry an HO-6 policy for interiors while the association insures the building, and many townhome owners need an HO-3 or HO-5 that covers the roof and exterior, with separate flood and wind coverage common for both.

Are condos harder to finance than townhomes?

• Often yes, because condo loans may require project-level approval, reserve and occupancy reviews, and litigation checks, while fee simple townhomes are commonly treated like single-family homes by many lenders.

What should I review in a condo association before buying?

• Review the declaration and bylaws, current budget and financials, reserve study, recent board minutes, insurance details, history of special assessments, and any required structural inspection reports.

Do townhomes always include roof and exterior maintenance in the HOA fee?

• No, responsibilities vary by community; some HOAs handle exteriors and roofs while fee simple townhomes often place those costs on the owner, so confirm maintenance duties in the declaration.

How do hurricanes and flooding affect ownership costs?

• Hurricanes and flood risk can lead to higher premiums, larger master policy deductibles, and potential special assessments after storms, so confirm coverage, deductibles, and flood zone status before you buy.