The difference between a twin home and a 2-unit townhouse or duplex

Twin home or townhouse or duplex? You can’t tell by looking at a property if it is a twin home or a 2-unit town home or a duplex… because it is about the form of ownership rather the structure of the building. The property in the photo above could be any of the three, because they all have a shared wall.To my understanding in our market, the basic differences are

TWIN HOME

• Each unit has a separate property ID number so each side can be sold separately and usually has a different owner
• There is no Common Interest Community Association managing the whole property, so it is like owning a house but with a shared wall, which usually means both less acreage and lower cost
  • Because there is no association, there are no association fees
  • Each unit owner is fully responsible for insurance and maintenance of their part of the building and the yard around their unit… just like owning a house
• Because there is no over-arching governance, the two owners must work together on some things
  • There are no rules or regulations except for city ordinances, just like owning a house… parties must work together to resolve any disputes
  • If owners want to maintain cohesiveness of the structure, they may want to coordinate exterior maintenance (i.e. roof, windows, siding) but it is not required because each side has independent ownership; it is possible that each side could look very different from the other over time
  • If there is storm damage, insurance companies from both sides may have to work together
  • Each side is responsible for their own landscaping and lawn care, so each side could look very different… or they could agree to work together for maintenance

2-UNIT TOWNHOUSE

• Looks virtually the same as a twin home, but is governed by a Common Interest Community Association which sets rules, regulations and guidelines and is usually responsible for exterior maintenance and a master insurance policy
• There are usually some shared spaces
• There are typically monthly fees to cover services such as master insurance, exterior maintenance, management, etc
• Things to be aware of when searching for a condo or townhouse

DUPLEX

• Again, looks virtually the same but both units are owned by the same entity
• Sometimes the owner lives in one unit and rents the other unit
• Sometimes an investor owns and rents both units
• One entity is responsible for the entire property, as with a single family house