Freehold vs. Condo Ownership

When you start looking at homes in the Greater Toronto Area, two listings can look almost identical and still be completely different purchases. One is freehold. The other is a condo. The difference affects what you own, what you pay every month and who makes the decisions about your home.

What Freehold Ownership Means

Freehold means you own the property outright: the building and the land it sits on.

• You are responsible for all maintenance and repairs, inside and out
• There are no monthly maintenance fees paid to a corporation
• You control how you use and change your property, subject to municipal zoning and any easements on title
• Common examples include detached homes, semi-detached homes and many townhouses

What Condo Ownership Means

Condo ownership is more layered. You own your individual unit, and together with the other owners you share ownership of the common elements. These are spaces like hallways, lobbies, parking garages, amenities and often the building exterior.

• The condo corporation manages and maintains the common elements for all owners
• A board of directors, elected by the owners, makes decisions for the community
• Monthly condo fees, also called common expenses, pay for operating costs and contributions to the reserve fund
• The declaration, by-laws and rules set what you can and cannot do, from renovations to pets to amenity use

Owners pay their share of the fees whether or not they use every amenity.

Freehold Townhouse or Condo Townhouse?

This is where many buyers get confused, because the homes can look exactly the same from the street.

• Freehold townhouse: you own the structure and the land, with no monthly condo fees
• Condo townhouse: part of a condo corporation, so you pay monthly fees and follow the corporation's rules
• The in-between (POTL): some townhouses are a freehold "parcel of tied land" connected to a common elements condominium. You own your home and land, but you also pay a fee for shared features such as a private road, visitor parking or landscaping.

The listing should say which type it is, but always confirm with your lawyer before you firm up.

Costs to Look at Before You Buy

With a freehold home, budget for every repair yourself: the roof, windows, furnace, driveway and so on. A good home inspection helps you plan for what is coming.

With a condo, look closely at the corporation's finances:

• Condo fees can change over time
• The reserve fund pays for major repairs and replacements, so check that it is healthy for the building's age
• Special assessments are one-time charges owners may face if the corporation cannot cover a cost

The Status Certificate: Your Condo Check-Up

If you are buying a resale condo, the status certificate is one of the most important documents you will see. It includes the corporation's budget, a statement on the reserve fund and any legal issues.

• Anyone can request one from the condo corporation
• The corporation can charge up to $100, including taxes, for the standard option
• It must be provided within 10 days of the request and payment

Ask your lawyer to review it before your offer becomes firm.

Which One Is Right for You?

Freehold may suit you if you want full control, plan to renovate, want a yard or prefer to avoid monthly fees.

A condo may suit you if you want lower-maintenance living, value amenities, travel often or want a lower entry price into a neighbourhood.

There is no wrong answer, only the one that fits your life today and your plans for the next few years.

Starting your search? Download my Free Buyer's Guide or visit my First-Time Home Buyers page.

Tarlika Sehgal, REALTOR®, SRS®, ABR® | eXp Realty Of Canada, Inc., Brokerage

Sources

• Condominium Authority of Ontario: Resale condos
• Condominium Authority of Ontario: Condo Buyers' Guide
• Condominium Authority of Ontario: What is a status certificate?
• Alloway Property Group: What is a Parcel of Tied Land (POTL)?

This article is general information, not legal advice. Every property and condo corporation is different. Please have a real estate lawyer review title and condo documents before you buy. Information is current as of October 2026.