Not sure whether a Westminster townhome or a condo is the better fit? You are not alone. In Colorado, the labels can be confusing and two similar-looking homes can carry very different responsibilities and costs. This guide shows you the real differences in ownership, HOA coverage, insurance, financing, and resale so you can choose with confidence. Let’s dive in.
Condo vs. townhome in Colorado
A condo is a legal form of ownership. You own the inside of your unit and share an undivided interest in the common elements, like hallways, exterior walls, roofs, and grounds. Most condos are governed by an HOA and a recorded condominium declaration.
A townhome is a building style. It is attached and often multi-level. In Colorado, a townhome can be set up two ways: as a condominium, or as a fee-simple lot where each home sits on its own parcel. The recorded deed, plat, and CC&Rs tell you which one it is.
Most common interest communities in Colorado are created and run under the Colorado Common Interest Ownership Act, known as CCIOA. Sellers typically provide key HOA documents and disclosures during a sale. Always review the deed, plat, CC&Rs, and HOA rules to confirm who owns and maintains what.
What this means in Westminster
In Westminster, attached homes come in a mix of layouts and legal setups. Two townhomes on the same street can look alike but have very different owner obligations. One may be a condo where the HOA handles the exterior. The other may be fee-simple, where the owner is responsible for the roof and siding.
To verify, pull the recorded documents and HOA package during your offer period. The Adams County Assessor and Clerk and Recorder are primary sources for deeds, plats, and tax records. You can also review City of Westminster planning information for context on land use and area amenities when you compare locations.
Maintenance and HOA responsibilities
Maintenance responsibilities flow from the legal structure. Use the patterns below as a starting point, then confirm in the actual documents for the property you are considering.
Typical condo setup
- The HOA usually maintains the exterior building envelope, like the roof and siding, along with common systems and grounds.
- You are usually responsible for everything inside your unit, like finishes, fixtures, and appliances.
- The HOA fee funds routine upkeep, master insurance for common elements, and reserves for capital projects. Special assessments can be used for big repairs or underfunded reserves.
Fee-simple townhome setup
- You typically own the lot and the structure on it, which often includes responsibility for the roof and exterior walls.
- The HOA usually maintains common areas like private roads, landscaping, and shared amenities. Some fee-simple communities also include exterior coverage, but that is not guaranteed.
- HOA dues may be lower than many condos, but you need to budget for larger periodic costs, such as roof replacement or exterior repairs.
Townhome in a condo regime
- This looks like a townhome but functions like a condo. The HOA handles exterior maintenance and common elements, and you maintain the interior.
- Your insurance needs usually match a condo rather than a single-family dwelling policy.
Reserves and special assessments
- A strong reserve fund reduces the likelihood of special assessments.
- Ask for the latest reserve study, the current budget, and a history of recent or planned assessments to understand your exposure.
Insurance: HO-6 vs. HO-3
Insurance should match the ownership structure and the HOA’s master policy.
- Condos usually require an HO-6 policy. This is a unit-owner policy that covers interior finishes, personal property, and may include loss assessment coverage if the HOA’s master policy leaves gaps.
- Fee-simple townhomes usually require an HO-3 or similar dwelling policy that covers the structure on your lot. Coverage should reflect your responsibility for the roof and exterior.
- Ask the HOA for a certificate of insurance and review the master policy’s scope. Terms like bare walls, single entity, and all-in describe how much of the building the master policy covers and what you need to insure yourself.
Monthly cost snapshot
Your monthly housing cost is more than just your mortgage. To compare a Westminster condo and a townhome, line up each component:
- Mortgage principal and interest
- Property taxes based on Adams County assessments
- HOA dues and any recurring fees
- Utilities that are included versus billed to you
- Insurance for your unit or dwelling
- Routine maintenance and long-term repairs
Condos often shift exterior work and some utilities to the HOA, which can mean higher dues for more predictable upkeep. Fee-simple townhomes may have lower dues, but you take on larger repairs and need to budget for them.
If you value predictability and do not want to coordinate exterior work, a condo community may fit. If you want more control, possibly a private yard or a garage, and you are comfortable handling exterior upkeep on your own schedule, a fee-simple townhome can be a good match.
Financing and lender approvals
Financing can differ based on the legal structure.
- Condo projects sometimes require project approval for certain loan types, including FHA and VA. Unapproved projects can limit loan choices or add steps.
- Fee-simple townhomes are typically simpler for lenders since each home is on its own parcel, though underwriters still review HOA financial health and rules.
- Check with your lender early. Confirm that the specific property and HOA align with your loan program before you get too far into the process.
Resale and marketability in Westminster
Resale strength depends on how the home fits local demand. In Westminster, buyers consider access to major corridors like US 36 and Wadsworth, proximity to parks and trails, layout and square footage, parking or garage availability, outdoor space, and HOA rules like rental and pet policies.
Condos can be attractive to buyers who want low-maintenance living and a lower price point. Townhomes often attract buyers who want more space, a garage, or the feel of a single-family home. Rental caps and short-term rental bans can narrow the buyer pool, while clear and consistent HOA standards can appeal to buyers who value community maintenance.
Due diligence checklist
Request these items during your inspection and document review period so you understand costs and responsibilities.
Governing documents and financials
- Declaration or CC&Rs, the recorded plat, bylaws, articles, and rules or architectural guidelines
- Current budget, income and expense statement, most recent reserve study, and balance sheet
- Minutes of HOA board meetings for the past 12 to 24 months
- Certificate of insurance and a summary of the master policy, including deductibles and coverage form
- Resale certificate or state-required disclosure packet
- List of any pending litigation involving the HOA or development
- Record of recent special assessments and upcoming capital projects
- Rental policy, including current percentage of rented units and any rental cap
- Maintenance responsibility matrix that spells out who handles the roof, exterior, decks, driveways, fencing, and snow removal
- Rules about exterior changes, satellite dishes, storage, and pets
Questions for the HOA or manager
- Are there any planned assessments or major projects in the next one to five years?
- What is the current delinquency rate on dues?
- How often are reserve studies conducted, and are reserves adequately funded?
- Are there any known deferred maintenance issues for the buildings or site?
- Are rental restrictions or short-term rental rules enforced, and how?
Inspection and escrow actions
- Order a complete home inspection and focus on elements you would be responsible for based on the documents
- Confirm the legal description and whether the property is a condominium unit or a fee-simple lot
- Verify property tax history and whether any special districts apply through the Adams County Assessor
n- Confirm which utilities are included in dues versus billed to your unit
Quick decision framework
Use this simple guide as you compare properties in Westminster:
- Choose a condo if you want low exterior maintenance, predictable common area upkeep, and shared amenities, and you accept HOA dues that reflect that coverage.
- Choose a fee-simple townhome if you want more control of exterior decisions, potential private outdoor space, and you are comfortable budgeting for larger, less frequent repairs.
- Always confirm the legal structure before you go under contract. A townhome can be a condo, and a condo can look like a townhome. The recorded documents and HOA package tell the real story.
Ready to compare homes in Westminster?
If you want a clear, side-by-side look at how specific Westminster condos and townhomes stack up on dues, maintenance, insurance, and resale, our team can help you review the documents and line up the numbers. We pair neighborhood insight with practical guidance so you can move forward with confidence. Reach out to Due South Realty to start your comparison or visit our Lafayette storefront for a free consult.
FAQs
What is the main difference between a condo and a townhome in Colorado?
- A condo is a legal ownership form where you own the interior plus a share of common elements, while a townhome is a building style that can be set up as a condo or as a fee-simple lot.
Who pays for the roof in a Westminster condo or townhome?
- It depends on the legal regime and CC&Rs; many condos cover roof repair and replacement through the HOA, while many fee-simple townhomes make the individual owner responsible.
Which type is usually cheaper to insure in Westminster?
- Condos typically use an HO-6 unit-owner policy and fee-simple townhomes use an HO-3 dwelling policy; premiums vary based on coverage and the HOA master policy, so compare both before you choose.
Can I rent out my Westminster condo or townhome?
- Possibly, but many HOAs have rental caps or specific rules; review the CC&Rs and rental policy and confirm current enforcement before you plan on renting.
How do I confirm if a Westminster townhome is fee-simple or a condo?
- Check the recorded deed and plat, review the CC&Rs and resale certificate, and verify with the HOA documents provided during your due diligence period.
What HOA documents should I request before buying?
- Ask for the declaration, bylaws, rules, budget, reserve study, recent board minutes, insurance certificate, special assessment history, rental policy, and the maintenance responsibility matrix.
