Condo vs Freehold

Condo owners hold a unit plus a share of common elements and pay fees, while freehold owners hold the whole lot and handle all upkeep.

In Canadian real estate, freehold usually describes a house or townhouse where you own the building and the land outright. You decide on repairs, insure the whole structure and pay every maintenance bill yourself. Municipal bylaws still apply, but no corporation sets rules for your lot.

A condominium splits ownership in two. In Ontario, you hold title to your unit. You share the common elements, such as a foyer, exterior walls and amenities, with other owners. A board of directors elected by the owners runs the condo corporation. Every owner must follow its governing documents: the declaration, by-laws and rules.

Condo owners pay monthly common expenses, often called condo fees. The declaration sets your share. The money covers upkeep of common elements, services such as management and cleaning, and contributions to the reserve fund for major repairs. If the budget falls short, the corporation can charge a one-time special assessment. Some disputes can go to the Condominium Authority Tribunal, an online tribunal.

The labels can mislead. In Ontario condo terms, a freehold condo simply means the owners jointly own the land, unlike a rare leasehold condo. A home sold as a freehold townhouse may also be a parcel of tied land (POTL). That means it is tied to a common elements condo that owns shared roads or amenities and charges fees.

Before buying a condo in Ontario, ask for the status certificate. Anyone can request one, and the corporation must provide it within 10 days for no more than $100, taxes included. It shows the budget, the reserve fund study, the unit's fees and arrears, special assessments and any lawsuits. Rules in other provinces differ.

General information only, not legal, tax, or financial advice. Rules change and vary by province; confirm the current details with the relevant authority before you rely on them.