Which of the following is NOT a basic type of residential community association?

Which of the following is NOT a basic type of residential community association?

• A. Townhouse
• B. Planned community
• C. Condominium
• D. Cooperative

Answer: (A)

Townhouse is not a basic ownership form used for residential community associations. The main ownership models these associations are built around are condominium, cooperative, and planned community. In a condominium, individuals own their unit and have an undivided interest in the common elements. In a cooperative, residents don’t own their unit outright; they own shares in a corporation that owns the building, giving them a right to occupy a specific unit. In a planned community, homeowners typically own their lots and pay dues to an association that maintains shared amenities and sets community covenants. A townhouse describes a style of dwelling, but it isn’t in itself a separate ownership structure used to classify basic types of residential community associations.

Townhouse is not a basic ownership form used for residential community associations. The main ownership models these associations are built around are condominium, cooperative, and planned community. In a condominium, individuals own their unit and have an undivided interest in the common elements. In a cooperative, residents don’t own their unit outright; they own shares in a corporation that owns the building, giving them a right to occupy a specific unit. In a planned community, homeowners typically own their lots and pay dues to an association that maintains shared amenities and sets community covenants. A townhouse describes a style of dwelling, but it isn’t in itself a separate ownership structure used to classify basic types of residential community associations.