Torn between the ease of a condo and the privacy of a townhome in Santa Monica? You are not alone. Both options can deliver a refined coastal lifestyle, but the details around ownership, HOA obligations, inspections, and financing shape your real costs and day‑to‑day experience. In this guide, you will learn how condos and townhomes differ in California, what local Santa Monica rules mean for you, and the smart due diligence that protects your purchase. Let’s dive in.
Quick definitions buyers need
What you own in a condo
In California, a condominium gives you ownership of your individual unit plus a shared interest in the common areas. Associations operate under the Davis–Stirling Common Interest Development Act, which sets rules for budgets, reserves, meetings, disclosures, and maintenance of common elements. You will rely on the association’s governance and funding to care for exterior systems and shared spaces. Review the Act’s framework to understand how responsibilities are typically allocated within a condo community under the Davis–Stirling Common Interest Development Act.
What “townhome” really means
Townhome or townhouse describes a building style, not a legal form of ownership. Some townhomes are structured as condominiums where the HOA maintains exteriors, while others are fee‑simple or part of a Planned Unit Development where you own the structure and land beneath it and carry more exterior maintenance. You should confirm the recorded legal description and CC&Rs so you know who pays for roofs, exterior paint, and structural items before you write an offer.
Cost snapshot in Santa Monica
Purchase prices at a glance
Across Santa Monica, condos often trade in the roughly 1.1 million to 1.4 million range, with premium locations like Downtown and the Wilshire Corridor pushing higher. Townhomes generally command more because they tend to offer private entries, attached garages, and added square footage; recent examples show ranges around 1.8 million to 2.5 million depending on proximity to the beach and the legal form. Your final number will vary by building, block, size, and finish level, but this spread is a useful starting point when setting expectations.
HOA fees and what they signal
HOA dues vary widely, often from about 400 to more than 725 per month. A lower fee can indicate fewer shared amenities, higher owner maintenance responsibilities, or underfunded reserves. A higher fee might reflect full exterior coverage, robust insurance, and amenities like a gym or pool. The most important thing is not the fee amount in isolation, but what it includes and how well the reserves cover upcoming capital needs. The Davis–Stirling rules on budgets and reserves help frame why this matters for both condos and some townhome communities governed by CC&Rs under the Davis–Stirling Act.
Insurance differences that affect cost
If you buy a condo, you will likely carry an HO‑6 policy that covers interiors, personal property, liability, and loss‑assessment. Because many master HOA policies now carry sizable deductibles, make sure your HO‑6 includes loss‑assessment and ordinance or law endorsements. If you buy a fee‑simple townhome, you may need a broader HO‑3 or HO‑5 policy to include the structure itself. For a clear primer on how condo coverage works and why master policy deductibles matter, review this guide to buying condo insurance and loss‑assessment coverage.
Lifestyle tradeoffs that matter
Space, privacy, and outdoor area
Condos often deliver lock‑and‑leave convenience, elevator access, and amenities. Townhomes tend to live more like single‑family homes with private entries, multi‑level layouts, and, in many cases, a small patio or yard. If you value separation from neighbors and easy unloading from a private garage, a townhome may feel better day to day.
Parking and EV readiness
Parking near Downtown and the beach can be tight. If a private garage or deeded stall is essential, prioritize townhomes and low‑rise buildings with assigned parking. For EV drivers, Santa Monica’s Green Building Reach Code requires a high percentage of spaces in new multifamily projects to be EV‑ready, which can benefit you in newer developments. Learn how local reach codes shape new construction in the city’s overview of green building standards and EV readiness.
Beach proximity vs upkeep
Ocean‑adjacent buildings command premiums and views but face harsher conditions. Salt air, moisture, and corrosion increase wear on exterior systems, balconies, and metal fasteners, which can translate into more frequent exterior work and stronger reserve planning. If you are shopping near the water, ask for recent waterproofing or structural reports and review the reserve study closely. For a primer on coastal wear factors, see FEMA’s Coastal Construction Manual.
Financing and resale considerations
How lenders view condos vs townhomes
Condominiums often undergo a project‑level review by conventional lenders. Underwriters evaluate the HOA’s reserves, insurance, litigation, owner‑occupancy, and delinquency rates. If a project shows material deferred maintenance, low reserves, or disqualifying litigation, it can be ineligible for standard conventional loans, which narrows the buyer pool and can impact marketability. Townhomes that are fee‑simple or in PUDs are commonly treated more like single‑family homes, which can simplify underwriting. For a current view, reference the update on Fannie and Freddie condominium project guidelines.
FHA and VA approvals
If you plan to use FHA or VA financing for a condo, you need to confirm the project’s approval status or pursue a single‑unit approval if available. These programs carry detailed standards for budgets, insurance, and building health, so it is wise to check early. Learn how FHA evaluates condos and when spot approvals may apply in this FHA condo loan explainer.
Project eligibility and your exit strategy
A building that struggles to qualify for conventional loans will limit your future buyer pool. Before you fall in love with a unit, ask your lender to review project eligibility and request documentation from the HOA. Smooth lending today often translates into smoother resale later.
Building health and safety checks
SB 326 balcony inspections and assessments
California’s SB 326 requires condominium associations with three or more units to inspect exterior elevated elements like balconies, decks, and walkways made substantially of wood. Associations subject to SB 326 must integrate findings into reserve planning and may need to fund repairs or adopt assessments. Planned developments where owners maintain their own structures are typically not subject to this rule in the same way. If you are considering a condo, ask for any completed reports, repair estimates, and board minutes that discuss this work. For context on timing and scope, read about SB 326 exterior elevated element inspections.
Coastal wear and reserve strength
Seaside exposure magnifies small maintenance issues. In ocean‑adjacent Santa Monica buildings, review the most recent reserve study, confirm whether waterproofing or structural work has been completed recently, and look for evidence of proactive planning. Strong reserves help stabilize dues and reduce surprise assessments in salt‑air environments.
Santa Monica rules that can affect ownership
Condo conversions and TORCA notes
Santa Monica maintains specific condo conversion rules that can involve tenant notices, vacancy‑rate checks, and approvals. Some buildings converted under prior programs like TORCA may carry lasting tenant protections that can affect owner‑occupancy or eviction rights. Always verify a property’s conversion status and any attached protections using the city code and Rent Control Board records. You can review conversion provisions within the city’s municipal code resources.
Rent control status for older or converted units
Santa Monica’s rent control program applies to many residential units, especially those built before April 10, 1979, and certain conversions. If you intend to lease your unit, confirm its rent control status before you buy and understand the applicable rules. The city’s explainer provides a clear overview of rent control in Santa Monica.
Due diligence checklist for your offer
Use this quick list to protect your interests and budget before you release contingencies:
- Recorded deed and legal description. Confirms whether you are buying a condominium interest, a fee‑simple lot, or a PUD, which controls who maintains what and how lenders treat the property. Review alongside the CC&Rs and rules, which are structured under the Davis–Stirling Act.
- CC&Rs, bylaws, and house rules. Check architectural controls, pet policies, rental restrictions, and any short‑term rental prohibitions.
- HOA budget, latest balance sheet, and the most recent reserve study. Low reserves or thin funding for near‑term projects can signal future assessments. Compare reserve study recommendations against the budget.
- Board minutes for the past year. Look for discussions of capital projects, litigation, or large insurance deductible changes.
- Resale disclosures or estoppel certificate. In California, sellers and associations must provide a statutory disclosures packet. Confirm amounts due, pending fines or assessments, and any litigation. Learn what is typically included in HOA disclosures from this overview of living in a California HOA and resale documents.
- Master insurance declarations and recent claims. Note coverage limits and deductibles. For condos, confirm you can add HO‑6 loss‑assessment coverage as discussed in this condo insurance guide.
- SB 326 inspection reports and any repair proposals. Required for many condo associations and critical for budgeting. See a summary of SB 326 requirements.
- Evidence of loan program eligibility. If you need conventional financing, ask your lender to review project data consistent with Fannie and Freddie condo guidelines. For FHA or VA plans, confirm the project’s status or spot‑approval route using the FHA condo process.
Which is right for you?
Consider these quick scenarios to clarify your path:
- Choose a condo if you value amenities, a staffed or secured building, and lighter personal maintenance. You are comfortable relying on the HOA’s reserves and governance to manage exterior projects.
- Choose a townhome if you want a private entry, attached garage, and a house‑like feel. You accept more exterior maintenance responsibilities in exchange for space and privacy, especially in fee‑simple or PUD formats.
- Prioritize newer or well‑funded buildings near the beach if you want views and walkability and can budget for coastal upkeep. Review reserve studies and any exterior reports before moving forward.
- If you need FHA or VA financing, start with buildings that meet program criteria or can qualify for single‑unit approvals. Project health and documentation will drive loan options and timing.
Ready to make a confident decision? Our team helps you compare real costs, navigate HOA documents, and line up the right lender path so your Santa Monica lifestyle matches your budget and goals. If you want tailored property tours, private options, and expert due diligence, connect with The Alligood Group.
FAQs
What are typical Santa Monica HOA fees for condos and townhomes?
- Many buildings range from about 400 to more than 725 per month, but the key is what dues include and whether reserves are strong under the Davis–Stirling Act.
Do Santa Monica condos require balcony inspections under SB 326?
- Yes, most condominium associations with three or more units must complete exterior elevated element inspections and plan repairs under SB 326.
How do lenders treat condo projects for conventional loans?
- Lenders review project reserves, insurance, litigation, and occupancy; weak projects can be ineligible under Fannie and Freddie condo guidelines.
Can I get FHA financing on a Santa Monica condo?
- Possibly. The project needs FHA approval or a single‑unit approval if available; learn the basics in this FHA condo loan explainer.
How do I confirm if a unit is under Santa Monica rent control?
- Check the city’s Rent Control Board resources and database, starting with the overview of rent control in Santa Monica.
What insurance do I need for a condo vs a fee‑simple townhome?
- Condo buyers typically need an HO‑6 with loss‑assessment coverage, while fee‑simple townhome buyers often carry HO‑3 or HO‑5 policies; see this guide to condo insurance.
