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

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Real Estate

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


Everything inside the unit is owned by the resident. The external parts of the builder are owned by the entirety of the condo association, so typically, the siding and roof are replaced/repaired by the association.  A condo association charges monthly dues for management and maintenance. Owners are subject to covenants, conditions, and restrictions. The condo value is affected by the desirability of the entire building.

Planned Unit Development (PUD)

Individuals own the structure and a bit of land surrounding it. There will be a homeowners association, but land around each unit is maintained by individual owners. (Typically what people think of as a townhouse.)


This is a complex owned by a corporation made up of all the tenants. Owners of larger units will have more power in how the building is run than owners of smaller units. You’ll pay fees for your portion of taxes, mortgage, repair, and improvement. Co-op owners depend on each other financially, so expect heavy scrutiny of your financial and personal history.

What are the advantages of each? Prices are often lower than for a single-family home. Landscaping and maintenance are minimal or nonexistent. Some feel safer in a “cluster” environment.

Disadvantages? Homeowners association dues are an ongoing expense. Plus, covenants, conditions, and restriction documents may be complex and restrictive.