What form of ownership is associated with common areas in a town house?

The correct answer pertains to how ownership is structured in a community of townhouses, which typically involves some common areas. In this context, the term "shared fractional interest among owners" describes a situation where each owner holds a proportionate share in the common areas (such as parks, pools, or other shared amenities) while maintaining individual ownership of their specific unit.

This type of ownership ensures that residents can enjoy communal spaces and amenities while also having exclusive rights to their own living space. This legal arrangement promotes both private ownership and shared responsibility for the upkeep of common areas, which is fundamental in townhouse communities.

The other options do not accurately represent this ownership structure. Individual ownership for each unit only would suggest no shared interest in common areas, which isn't the case in townhouse developments. Absolute ownership of the lot only would imply ownership over just one's lot, without regard for shared spaces, which again misrepresents the relationship between individual units and common areas. Lastly, a shared lease agreement with the landowner typically describes a rental situation rather than ownership, thus not applying to townhouses where the owners jointly own the common areas.