For buyers in New Hanover, Pender, and Brunswick counties, the choice between a condo and a townhouse often feels deceptively simple. They both offer low-maintenance living, community amenities, and lower price points than detached homes.

But in coastal North Carolina, these two property types are legally, financially, and structurally different. The distinction isn’t just about having a neighbor upstairs—it’s about what you own, what you insure, and what a lender will approve.

Here is the under-the-hood breakdown every coastal buyer needs in 2025.

1. The Legal Definition: Airspace vs. Dirt

The biggest difference is ownership.

Condos (NC Condominium Act): You own the interior “airspace” of your unit—paint-to-paint. You do not own the land, exterior walls, roof, or structural components. Instead, you own a fractional interest in all common elements (roof, parking lot, pool, stairwells) along with other owners.

Townhouses (NC Planned Community Act): You own the land (the dirt) and the entire structure, including the roof and exterior walls, typically defined by the unit’s foundation footprint.

Why it matters: In a condo, a roof leak is the HOA’s issue. In a townhouse, the bylaws may dictate maintenance responsibilities—but legally, the roof is yours.

2. The Insurance Split: Walls-In vs. Walls-Out

Insurance is where many coastal buyers get blindsided.

Condos → HO-6 Policy: Your HOA’s master policy covers the exterior. Your HO-6 covers “walls-in”—floors, cabinets, appliances, and personal property.

• Typical Cost: $600–$1,200/year

Townhouses → HO-3 Policy: Because you own the structure, you need full homeowners insurance that covers the roof, siding, windows, and interior.

• Typical Cost: $1,500–$3,000/year

The Named Storm Trap: Most HO-3 policies in coastal NC include a separate Wind/Hail Deductible (1–3%). On a $400k townhouse, that could mean paying the first $8,000–$12,000 out-of-pocket after a hurricane. In condos, the master policy carries the wind/hail deductible—often passed to owners as a special assessment.

3. Financing: The “Warrantable” Hurdle

Financing is dramatically different for condos on or near the beach.

Non-Warrantable Condos: If a condo building has:

• too many short-term rentals,
• hotel-style management (“condotel”),
• pending litigation,
• insufficient reserves,

…Fannie Mae and Freddie Mac won’t touch it.

The consequence: No standard loans. Buyers must use portfolio loans with 20–25% down and higher rates.

Townhouse Advantage: Townhouses are treated like single-family homes by lenders—making VA, FHA, and conventional loans far easier.

4. The “Coastal” Assessments

Special assessments exist statewide—coastal assessments simply cost more.

Condos → High-Dollar Risks:

• Concrete spalling (salt air rusting rebar)
• Elevator replacements
• Major exterior refacing

It’s not uncommon to see $10,000–$40,000 per unit assessments in older beach condo buildings.

Townhouses → Fewer, but still real risks:

• Marina dredging assessments (if the HOA owns boat slips)
• Bulkhead or seawall repairs

Dredging alone can run $20,000+ per owner.

5. The Maintenance Reality

Condos: True lock-and-leave. Higher HOA fees cover landscaping, exterior maintenance, and sometimes cable, internet, or master insurance.

Townhouses: Mostly low-maintenance—but you may still be responsible for decks, windows, siding repairs, and doors. HOA termite bonds often cover treatment, not damage. Read the bylaws carefully during due diligence.

The Bottom Line

Buy a Condo if: You want zero exterior responsibility, prefer lower insurance costs, and are comfortable with the possibility of occasional special assessments.

Buy a Townhouse if: You want control over your land and roof, smoother financing, and a lower monthly HOA fee—even if your insurance is higher.

At Aspyre Realty Group, we review CC&Rs, budgets, and insurance structures before you commit—so you know whether that “low HOA fee” is a blessing or a red flag.