Freehold, Condo or Common Element: Three Ways to Own a Townhouse in Stoney Creek and Hamilton
Two townhouses can look the same from the street and be owned in very different ways. The ownership type decides whether you pay a monthly fee, who replaces the roof, and who sets the rules.
This guide explains three common ownership types in Ontario, how to tell which one a listing is, and what to review before you buy.
Freehold townhouse: you own the house and the lot
You own the building and the land it sits on. There is no condo corporation, no board and no monthly condo fee.
The trade-off is that all of the upkeep is yours. The roof, windows, exterior walls, driveway and snow are your job and your cost. Nobody is saving for them on your behalf.
Condo townhouse: you own a unit
In a standard condominium you own a unit and share the common elements with the other owners. A condo corporation maintains the common elements. Its board of directors is elected by the owners.
You pay a monthly fee toward the corporation's costs. Part of it goes into a reserve fund, which the corporation must keep for major repairs to the common elements. Our guides explain what condo fees cover and how reserve funds and special assessments work.
What the corporation maintains varies. In one complex it replaces roofs and windows. In another, the owners do. The declaration sets out where each unit ends and who repairs what.
There are also by-laws and rules about how units and common elements are used. See our guide to townhouse parking, yards and rules.
Freehold on a private road: the common elements condo
This type is often advertised as "freehold with a road fee" or as a POTL, short for parcel of tied land. It is easy to mistake for a plain freehold.
Under Ontario's Condominium Act, 1998, a common elements condominium corporation has no units, only common elements, such as a private road. You own your house and lot as freehold. The lot is legally tied to a share in the corporation, and the share stays with the lot when it is sold.
- You pay a monthly fee toward the shared elements. It does not pay for your roof or anything else on your own lot.
- It is still a condo corporation, with a board and a reserve fund.
- A status certificate can be requested, as for a condo unit.
- If an owner does not pay the common expenses, the corporation has a lien against that owner's lot.
The three types side by side
| Freehold | Condo townhouse | Freehold with common elements condo | |
|---|---|---|---|
| What you own | House and lot | A unit and a share of the common elements | House, lot and a tied share of the common elements |
| Monthly fee | None | Yes | Yes, for the shared elements only |
| Exterior and roof | You | Set by the declaration | You |
| Snow on a private road | No private road | Usually the corporation | The corporation |
| Rules | No condo rules | Declaration, by-laws and rules | Declaration, by-laws and rules |
| Review before buying | Title, home inspection | Status certificate | Status certificate, title, home inspection |
How to tell which one a listing is
- The listing states freehold or condominium and shows any monthly fee.
- If a "freehold" listing shows a fee, ask what the fee covers.
- Your lawyer confirms the ownership type from title. For a parcel of tied land, a notice is registered against the lot.
Our guides cover the status certificate and what a townhouse costs per month.
Street, stacked and back-to-back townhouses
These terms describe the building, not the ownership.
- Street townhouse: a house in a row, on its own lot facing a street.
- Stacked townhouse: units share side walls and are stacked one above another.
- Back-to-back townhouse: units share a rear wall as well as side walls, so there is usually no backyard.
Our guide to townhouse layouts compares how each one works day to day.
Look up the condo corporation
Every condo corporation in Ontario must file returns with the Condominium Authority of Ontario (CAO). Its free public registry can be searched by address or name. It shows details such as the directors, the management company, the number of voting units and whether the corporation is meeting its filing requirements.
Who should be careful
- Buyers who assume freehold means no fees. A freehold on a private road can carry one.
- Buyers who do not want a board making decisions. Both condo types have one.
- Buyers with little savings after closing. With a freehold, the roof is your bill alone.
Browse townhomes for sale
Frequently Asked Questions
What is the difference between a freehold and a condo townhouse?
With a freehold you own the house and lot and maintain everything yourself. With a condo townhouse you own a unit, pay a monthly fee, and the corporation maintains the common elements.
Do freehold townhouses have monthly fees in Ontario?
A plain freehold does not. A freehold tied to a common elements condo does.
What does POTL mean on a townhouse listing?
Parcel of tied land. You own the lot as freehold, and it is tied to a share in a common elements condo corporation that charges a monthly fee.
Who pays for the roof on a condo townhouse?
It depends on the corporation. The declaration sets out who repairs the roof.
Do I need a status certificate for a freehold townhouse with a road fee?
One can be requested for a common elements condo. It shows the reserve fund balance and whether the fees tied to that lot are paid up, so have your lawyer review it.
Want to know which type a specific townhouse is? Get in touch and we will go through it with you.
This guide is general information, not legal advice. Every condo corporation's declaration is different and rules change, so have your real estate lawyer confirm the ownership type and review the documents.