Condo vs. Freehold: Legal Differences Buyers Should Know
Whether you're buying a condo or a freehold home, the closing process may look similar on the surface — but legally, the two ownership types come with different documents, different risks, and different things your lawyer needs to review. Here's what sets them apart.
What you actually own
With a freehold property, you own the building and the land it sits on outright, along with full responsibility for maintaining both.
With a condo, you own your individual unit, plus an undivided interest in the common elements of the building — hallways, elevators, the roof, amenities, and shared systems. Those common elements are managed collectively through the condominium corporation, which every owner is automatically a part of.
The status certificate: a condo-specific document
This is one of the biggest legal differences. When you buy a condo, your lawyer reviews the status certificate — a package of documents from the condominium corporation that discloses:
The corporation's financial health and reserve fund balance
Any planned or upcoming special assessments
Pending legal disputes involving the corporation
Rules around rentals, pets, and renovations
Current condo fees and what they cover
Freehold purchases have no equivalent document, since there's no corporation or shared building to review.
Ongoing fees vs. no fees
Condo owners pay monthly maintenance fees that cover building insurance, common element upkeep, and contributions to the reserve fund. These fees can increase over time, and a special assessment can require an unplanned lump-sum payment from all owners.
Freehold owners have no maintenance fees, but carry full responsibility — and full cost — for repairs, insurance, and upkeep of the entire property themselves.
Rules and restrictions
Condo corporations operate under a declaration, by-laws, and rules that can restrict things like renovations, rentals, pet ownership, and even parking. These are legally binding on every owner. Freehold owners generally have more flexibility, subject to municipal by-laws and any restrictions registered on title, such as easements or covenants.
Title review either way
Both property types require a title search to check for mortgages, liens, easements, and other registered interests. But for condos, that review extends to the corporation's own records and finances — an extra layer that freehold purchases simply don't have.
The bottom line
A condo purchase isn't just a smaller version of a freehold purchase — it comes with an entire layer of corporate and financial due diligence that a freehold deal doesn't require. Knowing the difference helps you understand exactly what your lawyer is reviewing, and why it matters before you close.
Buying a condo or a freehold home? Contact Darr Law before your closing, and we'll handle the review that fits your specific purchase.
