Buying a Townhouse in Florida: Condo vs. HOA and What It Means

Condo or HOA, and Why It Matters

Townhouses sit between a condo and a single-family home: you get your own front door and usually a small yard or patio, but you share walls and a homeowners’ association. They’re common across Central Florida, especially in newer communities. In Florida, though, “townhouse” describes a building style, not a type of ownership. Two townhouses that look the same can be governed by completely different laws, and that difference affects your insurance, your fees, your loan, and who pays when the roof needs replacing.

Short version: A Florida townhouse is usually owned in one of two ways. As a condominium, governed by Chapter 718, you own the unit and the association typically insures and maintains the building. As a fee-simple home in an HOA, governed by Chapter 720, you own the building and the land under it and insure it yourself. Check the deed and recorded documents to see which one you’re buying. Condo buyers in resales get the governing documents and a 7-day cancellation window, excluding weekends and holidays. HOA buyers must get a disclosure summary before signing, with a 3-day cancellation right if they don’t. Florida’s milestone inspections and structural reserve studies apply only to condo and co-op buildings three or more stories tall, so most townhouses aren’t covered. Read who’s responsible for the roof, exterior walls, and shared walls before you sign.

Condo townhouse vs. HOA townhouse

The ownership type is set in the recorded documents. A condo has a recorded declaration of condominium, and the deed conveys a “unit.” A fee-simple townhouse has a recorded plat showing your lot, plus a declaration of covenants for the HOA. A listing may not make this clear, so ask your agent or title company, or look up the property’s deed and recorded documents in the county records.

	Condo townhouse (Ch. 718)	Fee-simple townhouse in an HOA (Ch. 720)
What you own	The unit, plus a share of the common elements	The building and the lot under it; the HOA owns common areas
Building insurance	Association insures the building; you carry a condo unit-owner (HO-6) policy	You insure the building with a homeowners policy
Roof and exterior	Usually the association, per the declaration	Varies: often the owner, sometimes the HOA
Disclosure to buyers	Governing documents, budget, financials, plus any milestone or SIRS report; 7-day cancellation on resales	HOA disclosure summary before signing; 3-day cancellation if not provided
Reserves	Required unless owners vote to waive them; can’t be waived for structural items in buildings 3+ stories	Optional, only if members vote for them
Financing	Lender reviews the condo project; FHA needs project or single-unit approval	Fannie Mae generally waives project review for PUD units

The declaration controls the details, and some communities don’t follow the typical pattern. Always confirm in the recorded documents.

For the general rules in each system, see buying a condo in Florida and Florida HOA rules.

Who maintains and insures what

This is where townhouse buyers get surprised most often. In a condo, Florida Statute 718.111(11) requires the association to carry property insurance on the condominium property as originally installed. The unit owner insures personal property and items inside the unit, such as flooring, wall and ceiling coverings, cabinets, countertops, appliances, and water heaters. There’s one exception: the declaration can make owners insure a freestanding single building themselves. Florida also requires condo unit-owner policies to include at least $2,000 of loss assessment coverage, which helps if the association assesses owners after a covered loss.

In a fee-simple townhouse, you generally insure the whole structure, and your share of a roof replacement may be yours to arrange and pay for. Some HOAs handle roofs, exterior paint, or landscaping for all the buildings and charge for it in the fees. Before signing, find answers in the documents to these questions:

Roof: Who repairs and replaces it? If the roof spans several units, how is the cost split, and can one owner be forced to replace theirs at the same time as the neighbors?
Shared walls: Who’s responsible for repairs to the party wall, and for water or fire damage that starts in a neighbor’s unit?
Exterior: Who handles paint, siding, windows, doors, and screen enclosures? Are there rules on colors and replacement products?
Insurance: Does the association’s policy cover the building, and what’s its hurricane deductible? If you insure the building yourself, get an insurance quote before you commit.
Flood: Check the flood zone, since a standard policy doesn’t cover flood damage. See Florida flood insurance.

For insurance basics, see Florida homeowners insurance. For roof age and replacement, see Florida roof lifespan and replacement.

Milestone inspections and reserve studies

After the 2021 Surfside collapse, Florida added two requirements for condos:

Milestone inspections: Structural inspections of condo and co-op buildings once they reach 30 years old, then every 10 years.
Structural integrity reserve studies (SIRS): Studies of key building parts, such as roofs, structure, plumbing, electrical, and waterproofing. Associations must fully fund the reserves they call for.

Both apply only to buildings with three or more habitable stories. Buildings under three stories, and one- to four-family dwellings of three stories or fewer, are excluded. Many townhouse communities therefore fall outside these rules, even when they’re condos. That cuts both ways. A two-story condo townhouse association can still waive or underfund reserves, which can mean a large special assessment when the roofs come due. Ask for the reserve schedule and the most recent budget.

HOAs under Chapter 720 aren’t required to keep reserves at all unless members vote for them. If an HOA keeps no reserves, its financial report must warn that special assessments may result.

Documents and cancellation rights

Condo resale: Under Florida Statute 718.503(2), the seller must provide the declaration, articles, bylaws, rules, annual budget and financial statement, and the frequently asked questions sheet. The seller must also provide any milestone inspection summary and SIRS, or a statement that one hasn’t been done. If you get the documents after signing, you can cancel in writing within 7 days of receiving them, excluding weekends and legal holidays. That right can’t be waived and ends at closing.

Buying from a developer (condo): The cancellation window is 15 days.

HOA (fee-simple): Under Florida Statute 720.401, you must get the HOA disclosure summary before signing. It covers mandatory membership, assessments, possible special assessments, and liens for unpaid dues. If you don’t get it, you can cancel within 3 days after receiving it or before closing, whichever comes first. The summary is short, so also read the declaration of covenants, rules, budget, and recent meeting minutes. HOAs with 100 or more parcels must post key documents on a website or app.

Estoppel certificate: Before closing, the title company orders an estoppel certificate. It shows what the seller owes the association and any transfer or capital contribution fees you’ll pay. For HOAs, Florida Statute 720.30851 caps the standard fee at $250, adjusted for inflation every five years, with $100 more for rush delivery. See closing costs in Florida.

Financing a townhouse

Lenders treat the two ownership types differently. A condo townhouse is a unit in a condo project, so the lender reviews the project, including its budget, reserves, insurance, and whether too many units are rentals or behind on dues. FHA loans need the project to be FHA-approved or to get a single-unit approval, which caps FHA loans at 10% of a project’s units. For a townhouse in an HOA, which lenders treat as a planned unit development (PUD), Fannie Mae generally waives project review. Ask your lender early which one applies, since a project that doesn’t qualify can end a deal late in the process. See mortgage and financing basics.

Other things to check

Total monthly cost: Add the mortgage, taxes, HOA or condo fees, your insurance, and any CDD assessment. Newer Central Florida communities often have a CDD on the tax bill. See the CDD fee calculator and condo cost calculator.
Rental rules: Many associations restrict leasing, minimum lease terms, or short-term rentals. That matters if you might rent the unit out later.
Parking and pets: Check assigned spaces, guest parking, rules on trucks or work vehicles, and pet limits.
End unit vs. interior unit: End units usually get more windows and light, and only one shared wall.
Inspection: Have the unit inspected, including the attic and the roof over your unit, and ask about the condition of the building as a whole. See the home inspection checklist.
Homestead: A townhouse you live in as your primary residence qualifies for the homestead exemption, whether it’s a condo or fee simple. See the homestead exemption.

Frequently Asked Questions

It can be either. “Townhouse” describes the building style. Legally, a Florida townhouse is either a condominium unit under Chapter 718 or a fee-simple home with its own lot in an HOA under Chapter 720. The deed and recorded documents tell you which.

In a condo, the association generally insures the building, and the owner carries an HO-6 policy for the unit’s interior and belongings. In a fee-simple townhouse, the owner usually insures the whole structure. The declaration controls the details.

Usually not. Milestone inspections and structural integrity reserve studies apply to condo and co-op buildings with three or more habitable stories. Buildings under three stories, and one- to four-family dwellings of three stories or fewer, are excluded.

For a condo resale, you can cancel within 7 days of receiving the documents, excluding weekends and holidays, if you got them after signing. For an HOA home, you can cancel within 3 days if the disclosure summary wasn’t provided before you signed. Both rights end at closing.

It can be if it’s a condo, because the lender reviews the whole condo project, and FHA requires project or single-unit approval. For a fee-simple townhouse in an HOA, Fannie Mae generally waives project review. Ask your lender early.

Sources

This article is for general informational purposes only and isn’t financial, legal, insurance, or tax advice – for guidance specific to your situation, talk to a licensed professional.