Condo, PUD, Co-op: What's the Difference?

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Real Estate

Condo, PUD, Co-op: What's the Difference?

Condos: Typically, walls, floors, and ceilings owned by all residents; HOA dues; covenants, conditions, and restrictions; value depends on the desirability of entire development.

Planned Unit Development (PUD): Individuals own structure and some land.

Co-op: Corporation made up of all tenants; larger units have more power in how building is run; fees for taxes, mortgage, repair, improvement; heavy scrutiny of financial, personal history.

Townhome: Not a form of ownership, but a term for an attached row house.

Advantages of each: Prices often lower than for single-family home; maintenance minimal or nonexistent; safety in “cluster” environment.

Disadvantages: HOA dues; CCRs may be complex.


There are quite a few misunderstandings about condos.  Long story short, as the owner of a condo, you own a percentage of the land or common area.  You may or may not share walls, floors, and ceilings.  In the case of a free-standing condo, you may even have the use of a large fenced yard.  Regarding size, condo developments can be as small as two units as is the case when a duplex is converted into two condos and sold separately or multi-units as is the case when an apartment complex is converted into condos.  

In all the situations listed above, you will have an HOA fee to cover common area maintenance and/or insurance, but not always yard maintenance.  It is important to note that loan and homeowners insurance requirements will be different from a single-family residence.  And, because you will be bound by CCRs, it is important to review the HOA documents that lay out the covenants, conditions and restrictions for the condo development.    

I hope you found this article helpful.  Please free free to contact me if you would like additional information.