Freehold vs condo vs townhome
Three different ownership structures with very different responsibilities and costs. Here's what each one actually means — and who each one suits.
Freehold
You own the land and the building. No maintenance fees. Full autonomy — and full responsibility for everything.
Condo
You own your unit. The condo corporation owns the building structure, common areas, and amenities. Monthly maintenance fees cover shared expenses.
Townhome
A multi-floor home attached to neighbouring units. Can be freehold or condo-corporation — the legal structure varies by development.
Freehold ownership
Freehold means you own the land the building sits on, and the building itself. There's no condo corporation, no maintenance fees, and no monthly obligation to a shared management structure. You decide when to renovate, what colour to paint the exterior (within local bylaws), and whether to add a deck. Full ownership, full control.
The flip side: full responsibility. The roof needs replacing? That's your cost, your decision, your timeline. The furnace fails in February? You're calling the contractor. Freehold ownership builds equity more completely than a condo, because you own the land — which appreciates independently. In most markets, detached freehold homes outperform condos over the long run on price appreciation, though they also require more active management.
Who it suits: Buyers who want complete autonomy over their property, plan to stay long-term, have the capacity to handle maintenance costs when they come up, and want the maximum benefit of land appreciation.
Condo ownership
When you buy a condo, you own your unit: the space inside the walls, from your front door to your balcony railing. The condo corporation — a legal entity made up of all unit owners — owns everything else: the building structure, hallways, elevators, lobby, parking garage, gym, and any other amenities. You pay monthly maintenance fees to the condo corporation for your proportional share of these common expenses.
Maintenance fees cover things like building insurance, property management, utilities for common areas, cleaning and landscaping, and contributions to the reserve fund. The reserve fund is savings set aside for major capital repairs — a new roof, elevator replacement, parking structure waterproofing. A well-funded reserve means fewer financial surprises. A depleted reserve means a special assessment — a one-time charge to all owners to cover unexpected costs — could be coming.
Condo owners are subject to the condominium corporation's rules (called the declaration and by-laws). These govern what you can do with your unit: whether you can rent it, what types of renovations need approval, whether pets are permitted, whether short-term rentals like Airbnb are allowed. Read these documents before you buy — they're part of the status certificate your lawyer reviews.
| Feature | Freehold | Condo |
|---|---|---|
| You own the land | Yes | No |
| Monthly fees | None | $400–$1,200+/month typical |
| Responsible for exterior maintenance | Fully | No — condo corp handles it |
| Renovation freedom | Full (within bylaws) | Interior only, with some restrictions |
| Risk of special assessment | None | Possible if reserve fund is low |
| Status certificate required | No | Yes — review before buying |
| Subject to condo rules | No | Yes |
Who it suits: Buyers who want a lower-maintenance lifestyle, prefer urban density and walkability, don't mind paying monthly fees in exchange for not managing repairs, and are comfortable with some governance constraints on what they can do with the property.
Townhomes: it depends on the structure
A townhome is a multi-floor, typically attached residential property — sharing one or two walls with neighbouring units. What matters more than the physical form is the ownership structure. Some townhomes are freehold: you own the land and building, no maintenance fees, same as a detached house but attached to your neighbours. Others are condo-corporation townhomes: you own your unit, a corporation manages the exterior, and you pay monthly fees.
The listing will specify which it is, but always confirm in writing before making an offer. Freehold townhomes are generally preferred from an ownership perspective because you get land ownership without the fees. Condo townhomes offer the convenience of managed exterior maintenance but come with fees, rules, and the need to review a status certificate.
The maintenance fee reality: On a condo with $700/month in fees, you're paying $8,400 per year. Over 10 years, that's $84,000 — more than enough to cover significant home maintenance on a freehold. That doesn't mean condos are wrong, but factor fees into your total cost of ownership calculation, not just the purchase price.