Trying to decide between a condo or a townhome in Richardson? You are not alone. Many first-time buyers and downsizers weigh the same choice as they look for a smart fit near work, transit, and everyday amenities. In this guide, you will learn the key differences in ownership, HOA responsibilities, insurance, financing, and resale so you can move forward with confidence. Let’s dive in.
Condo vs townhome basics
Choosing a condo means you own your individual unit plus a shared interest in common areas. Your deed describes unit boundaries and the community declaration outlines what is considered common property. In many condos, you own the interior finishes, while the HOA manages the building structure and common elements.
Choosing a townhome in Texas usually means fee-simple ownership of the unit and the land beneath it. Even if homes are attached, you typically own from the foundation to the roofline. An HOA may still manage shared spaces or even some exterior maintenance, but the exact duties are defined in the CC&Rs.
The practical difference shows up in control and responsibility. Condo owners have less control over exteriors and may face more rules on what can be changed. Townhome owners often have more control and more responsibility for exterior materials and upkeep unless the HOA covers those items.
HOA scope and true cost
Condo HOAs commonly handle structure, roofs, siding, exterior paint, landscaping, parking areas, and amenities. Fees cover operating costs, master insurance, management, reserves for large repairs, and building services like elevators or common-area utilities.
Townhome HOAs vary widely. Some manage only common landscaping and architectural standards. Others include exterior maintenance such as roofing or siding and may offer amenities. Always read the CC&Rs to see who maintains what.
Key budget items to expect include routine maintenance, management fees, insurance, reserves, utilities for common areas, pest control, trash, security, and amenity upkeep. A major risk is a poorly funded reserve that leads to special assessments. Ask for evidence of reserves and recent assessment history.
What to request before you buy
- Current budget, financials, and most recent reserve study
- CC&Rs, bylaws, and all rules and regulations
- HOA meeting minutes for the past 12 to 24 months
- Master insurance declarations and a clear summary of what the HOA covers
- Written statements about any special assessments or litigation
- Owner-occupancy and rental percentage data
- Recent capital projects and maintenance history
Governance and restrictions
Community rules can affect your day-to-day life and resale appeal. Review pet policies, rental caps, short-term rental rules, parking policies, and fine schedules. Ask for litigation disclosures and note any legal risks mentioned in meeting minutes.
Insurance made simple
Condo owners carry an HO-6 policy that covers personal property, interior improvements, and gaps between the owner’s responsibility and the association’s master policy. The HOA master policy may be all-in or walls-in. The exact definition varies by community, so confirm what the policy includes and excludes.
Townhome owners commonly carry a homeowners policy such as HO-3. This typically covers the dwelling structure, personal property, liability, and loss of use. If the townhome HOA insures any exterior component, make sure your policy and the HOA policy are coordinated.
Key items to confirm include master policy type, deductibles, and whether your policy includes loss assessment coverage if the HOA charges owners to cover a claim. Also review liability limits and whether you need separate flood coverage, since standard policies do not include flood protection.
Questions to ask your insurance agent and the HOA
- What does the HOA master policy cover and where do my responsibilities begin?
- For condos, is the master policy all-in or walls-in? What is the deductible?
- For townhomes, do I insure the roof, siding, and fences, or does the HOA?
- Does my policy include loss assessment coverage sufficient for the master policy deductible?
- Should I consider flood coverage based on the property’s location and maps?
Financing and resale in Richardson
Financing can differ by property type. Condo projects face extra lender and program scrutiny. FHA and VA have project-level approval requirements or single-unit review options, and some projects are not approved. Conventional lenders also review reserves, owner occupancy, investor concentration, and any litigation.
Townhomes with fee-simple ownership are often underwritten like single-family homes. This can simplify financing for many buyers using conventional or government-backed loans.
Resale dynamics can differ too. Condos may offer a lower entry price but can be more sensitive to HOA health, investor concentration, and oversupply. Townhomes often draw buyers who want single-family style ownership with less yard work. Actual appreciation and demand vary by neighborhood and market cycle, so review current MLS data for Richardson before deciding.
Project-level factors that affect loans and resale
- Owner occupancy ratio and rental percentage
- Reserve funding and special assessment history
- Litigation, construction defects, or building envelope issues
- Single-entity ownership concentrations within the community
- HOA restrictions on rentals and short-term rentals
Richardson-specific factors
Richardson spans parts of Dallas and Collin counties. Confirm which county the property is in and the taxing jurisdictions that apply, because tax rates and appraisal processes differ by county.
Proximity to major employers in the Telecom Corridor and to UT Dallas supports demand for both condos and townhomes. Access to DART lines and planned service changes can also shape commute convenience and long-term appeal.
School districts and boundaries can vary by neighborhood. Verify the assigned district for the exact parcel and understand that school assignment can influence market demand and resale potential. Use neutral, fact-based sources for boundary confirmation.
Site checks to complete
- Confirm the county, school district, and current property tax rates
- Review commute patterns, DART access, and travel time to major job centers
- Check for nearby developments that may change noise, views, or future housing supply
- Ask about recent repairs, roof or siding replacements, and water intrusion history
Which fits your lifestyle
Choose a condo if you value lock-and-leave living and are comfortable with an HOA managing the exterior and common areas. Expect clearer monthly costs but shared decisions and the possibility of special assessments.
Choose a townhome if you want more control over your exterior and land while still keeping maintenance simpler than a large single-family home. Read the CC&Rs closely to see if the HOA covers any exterior items.
If you are unsure, compare two or three communities side by side. Look at monthly fees, reserve strength, insurance responsibilities, and financing flexibility. The real cost of ownership includes all four.
Buyer checklist for Richardson
- Get preapproved early, and confirm whether your loan product fits a specific condo project
- Request the full HOA packet and master insurance declarations before making final decisions
- For townhomes, review the plat and a recent survey, plus any exterior maintenance duties
- Obtain sample HO-6 or HO-3 quotes tailored to the community’s coverage structure
- Review owner-occupancy data, rental policies, and any pending litigation
- Confirm county, taxes, school assignment, utilities, and flood zone status
- Compare commute options, access to amenities, and nearby developments
How I can help
Sorting through declarations, CC&Rs, insurance policies, and lender rules takes time and a careful eye. You deserve a guide who will look around corners, ask the right questions, and protect you from surprises at closing. With a detail-driven approach informed by contract work and deep local knowledge, I help you identify risk, verify the real cost of ownership, and secure terms that fit your goals.
Ready to narrow your options and shop with confidence? Reach out to Suzanne Millet-Realtor for a focused consult, neighborhood insights, and next-step guidance.
FAQs
What is the main legal difference between a condo and a townhome in Richardson?
- A condo owner holds title to the unit plus a shared interest in common areas, while a townhome owner typically holds fee-simple title to the home and the land beneath it.
How do HOA fees usually compare between condos and townhomes?
- Condo fees often cover building structure and more amenities, while townhome fees may be lower or vary based on whether the HOA maintains exteriors; review CC&Rs and budgets to know for sure.
What insurance policy do I need for each property type?
- Condos typically require an HO-6 policy coordinated with the HOA master policy, while townhomes usually need a homeowners policy such as HO-3 that covers the dwelling and personal property.
Can condo financing be harder than townhome financing in Richardson?
- Yes, condos face added lender and program criteria such as project approvals, reserve levels, and owner-occupancy ratios, while townhomes are often underwritten like single-family homes.
What documents should I review before buying into a Richardson HOA community?
- Request CC&Rs, bylaws, rules, current budget, financials, reserve study, meeting minutes, master insurance declarations, rental and occupancy data, and any assessment or litigation disclosures.
How do county lines affect my purchase in Richardson?
- Richardson spans Dallas and Collin counties, so property taxes, appraisal districts, and some services differ; confirm the county and taxing jurisdictions for your specific property.
Do HOA rental caps affect resale value?
- They can, since rental restrictions and investor concentration influence the buyer pool and some loan programs; review the community’s rental policy and current owner-occupancy levels.
