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Last Updated4/30/2025

Condo vs. Fee Simple Ownership in Ocean City, Maryland: What’s the Difference?

If you're thinking about buying property in the Greater Ocean City, Maryland area, you'll likely encounter two common types of property ownership: Condominium (Condo) Ownership and Fee Simple Ownership. Each comes with its own set of responsibilities, costs, and benefits, and understanding the difference is essential for making a smart decision, especially in a coastal market like Ocean City.

Here's a clear, locally tailored breakdown of what each ownership type means and where you're likely to find them in the Ocean City area.

What Is Condominium Ownership?

Definition: When you buy a condominium, you own the individual unit itself (typically everything inside the walls), while the building structure, land, and shared amenities are owned collectively by all the unit owners through a condominium association.

Responsibilities:

The condo owner is usually responsible for the interior of their unit.
The association many times maintains the building exterior, shared amenities, and common areas.

Typical Costs:

Monthly condo fees cover exterior maintenance, insurance on the structure, landscaping, and sometimes utilities.
Owners usually purchase "walls-in" insurance policies.
Special assessments can occur for major repairs not covered by reserves.

Where in Ocean City?

High-rise and mid-rise buildings along Condo Row (between 94th and 118th Street).
Oceanfront and bayside communities like Sea Watch, Golden Sands, and Makai Condominiums.
Boardwalk buildings such as Belmont Towers and Decatur House.

Pros:

Low maintenance for owners
Access to amenities (pools, fitness centers, security)
Ideal for part-time residents or vacationers

Cons:

Monthly condo fees
Less control over exterior or building-wide decisions
Rules on pets, rentals, and renovations

What Is Fee Simple Ownership?

Definition: Fee simple means you own the land and the entire structure outright. It's the most complete form of property ownership and gives you full control over the property.

Responsibilities:

Owner is responsible for all maintenance inside and outside the home.
Landscaping, roof repairs, and exterior upkeep are all the owner's duty.

Typical Costs:

No mandatory monthly condo fee unless part of an HOA (Homeowners Association).
Standard homeowners insurance is required, usually covering the entire structure.

Where in Ocean City?

Single-family home neighborhoods like Caine Woods and Little Salisbury.
Planned communities like Montego Bay, Mystic Harbour, and Ocean Pines.
Some properties in West Ocean City offer fee simple homes with or without HOAs.

Pros:

Full control of property use, design, and landscaping
No shared walls or common areas
Typically more privacy and outdoor space

Cons:

Full responsibility for maintenance
May require more time or expense to upkeep
Fewer shared amenities unless part of an HOA

Making the Right Choice in Ocean City

Whether you're buying a beach retreat, full-time residence, or investment property, your ownership choice affects your lifestyle, responsibilities, and long-term costs.

Condos are ideal for buyers who want low-maintenance living and amenities close to the beach. They're common in high-rise oceanfront buildings and can be great for seasonal living or vacation rentals.

Fee simple homes offer privacy, land ownership, and full control, and are more common in neighborhoods away from the Boardwalk. They suit buyers who want space, flexibility, and fewer restrictions.

Before you buy, consider:

How often you'll be at the property
Whether you want rental income
Your tolerance for maintenance responsibilities
Your budget for ongoing costs (condo fees vs. personal maintenance)

Ocean City offers both ownership options across a variety of neighborhoods, so whether you're dreaming of a condo with ocean views or a beach cottage with a backyard, you'll find something that fits your needs.