If you are a first-time homebuyer in Atlanta, you might have your eye on one of Atlanta’s multi-unit complexes versus purchasing a single-family home. In your home search, you may see some units are listed as “condos” (short for “condominiums”) while others are listed as “apartments.” What is the difference between a condo and an apartment? The differences can be minor, but they are worth exploring — so let’s attempt to clarify.
Condo vs Apartment: It’s a Matter of Ownership
In terms of legal definitions, the main difference between a condo and an apartment is how it is owned.
With a condo, each unit in the condo building has an individual owner. All condo owners pay homeowner’s association (HOA) dues to a management company or a collectively owned entity. These HOA fees handle building upkeep.
With an apartment building, a landlord owns the entire building and leases out individual units to tenants. The landlord may be either an individual or a corporation, and the landlord or property manager is generally responsible for the upkeep. This is why most people talk about apartment complexes in terms of renting rather than buying. In the vast majority of cases, homebuyers buy a condo, and renters rent an apartment.
But here is where it can get confusing. In Atlanta, it is possible to buy a unit listed as an apartment rather than a condo. In almost all cases, the purchase works the same way regardless of how it is labeled. If you are buying the unit rather than renting, you are buying a condo by the homeownership definition because you own it. That being said, when you buy an apartment unit, there may be some discrepancies about what you actually own, and who owns what.
What is Owned by Condo Owners?
When you buy a condo, the terms of ownership are fairly cut-and-dried: You are purchasing the air space within the walls of your unit. The building’s common areas and grounds themselves are typically collectively owned and managed by a separate business entity of which owners in the condo community may share ownership. With an apartment, you may or may not own the actual walls and floors of your unit, and the rest of the building may still be under the ownership of the landlord. In either situation, you will have the right to make changes to your unit subject to any HOA covenants, and you’ll have the responsibility for maintenance issues and repairs within your unit. However, you will probably have more say about building upkeep, maintenance and community rules if you buy a condo than you would in an apartment due to your condo association membership.
Homebuyers, Make Sure to Read the Fine Print
Is there an advantage to buying a condo versus an apartment? Beyond the general pros and cons of being a property owner versus renting as a tenant, there is no major advantage of one over the other. The biggest thing to consider is that, when buying a condo unit, your terms of ownership, rights and responsibilities in the homeowner association are fairly standard and easy to understand.
With an apartment, the difference between who owns the unit and who owns the building can create some grey areas, and the details can get murky. Sometimes it’s pure semantics, and you may find that the “apartment” you are buying is actually a condo (people do interchange the terminologies from time to time.) In either case, be sure to carefully read the entire property description and the terms of your contract so you know exactly what you are getting into before signing on the dotted line.
Looking to buy a high-end condo in Atlanta?
At Atlanta Fine Homes Sotheby’s International Realty, our real estate agents can walk you through the entire process — whether you’re looking for a high-rise urban oasis or a roomy luxury townhome. To learn more, give us a call at 404.948.4812.