Buying a condo or townhouse is a different exercise from buying a freehold house, and the difference is not mainly about size or maintenance. It is that you are buying into a corporation with its own finances, its own rules and its own history of decisions, and you inherit all three on closing day. Most of the problems that surprise condo buyers were visible in documents they either did not order or did not read.
Looking at a Condo or Townhouse?
Send Andy the status certificate before your conditions expire
548 490 4577Freehold, Condo, and the One in Between
| Type | What you own | What you pay monthly |
|---|---|---|
| Freehold house | The building and the land | Nothing to a corporation |
| Freehold townhouse | The building and the land | Usually nothing, sometimes a POTL fee |
| Common elements condo (POTL) | Your unit and land, plus a share of common elements | A common elements fee |
| Standard condo unit | Your unit, plus a share of the corporation | Condo fees |
That third row catches people out. A townhouse can be freehold and still carry a mandatory monthly fee for shared roads, visitor parking or landscaping through a parcel of tied land arrangement. It looks like a freehold on the listing and behaves partly like a condo in your budget, so confirm which one you are looking at before you get attached.
How to Read a Status Certificate
- The reserve fund balance and the most recent reserve fund study. This is the corporation's savings for major repairs. A thin reserve against an ageing building is the clearest warning sign there is.
- Any special assessment already levied or contemplated. This is a one-time charge to owners, and it can be substantial.
- The current monthly fee and its recent history. Fees rising faster than inflation usually mean either underfunding being corrected or costs running ahead of the budget.
- Litigation. A corporation in a dispute is a corporation with legal costs that owners ultimately fund.
- Rules that affect how you would actually live there: pets, rentals, parking, barbecues, short-term rentals.
- Whether the seller is in arrears on their fees.
What Condo Fees Do and Do Not Cover
Fees typically cover building insurance for the common elements, maintenance of shared areas, and contributions to the reserve fund. They may or may not include heat, water, or parking. They never cover your own unit insurance, which you need separately. Comparing two buildings on fee alone is meaningless until you know what each fee includes, and a lower fee is sometimes a sign of underfunding rather than efficiency.
Why This Segment Is Worth Watching Right Now
Across Southwestern Ontario the townhouse and condo segment has been considerably softer than single-family through 2026. In Waterloo Region, for example, August 2026 townhouse and condo sales were down 28.2 percent year over year, with 4.6 months of supply and homes selling at 98.8 percent of list, while single-family homes stayed tight at 2.8 months and above asking. Segment softness of that kind tends to show up across the corridor rather than in one city alone, and it is what creates negotiating room for buyers who are prepared.
Questions Worth Asking Before You Write
- How old is the building, and when were the roof, windows, elevators and mechanical systems last done?
- What has the fee done over the last five years?
- What percentage of units are owner-occupied versus rented?
- Is there anything in the reserve fund study coming due in the next five years?
- Are there any rules that would prevent you from doing something you plan to do?
Frequently asked questions
What is a status certificate and do I need one?
It is a disclosure package from the condo corporation covering its finances, reserve fund, fees, rules and any litigation. You should always obtain and review one before your conditions expire. In Ontario the corporation must provide it within 10 days of a request, for a maximum fee of $100 including HST.
Are condo fees negotiable?
No. Fees are set by the corporation's budget and allocated by your unit's share. What is negotiable is the purchase price, and a building with high or fast-rising fees should be reflected in what you pay for the unit.
What is a POTL fee on a freehold townhouse?
A parcel of tied land arrangement means you own your home freehold but share ownership of common elements such as private roads, visitor parking or landscaping. Those shared elements carry a mandatory monthly fee. It is smaller than a full condo fee but it is not optional, so include it in your budget.
Is a condo a good investment in London or St. Thomas?
It depends on the building and the holding period more than the city. Condos historically appreciate more slowly than freehold houses and carry a fee that rises over time, so the case is usually about lower maintenance and entry price rather than maximum appreciation. A building with a healthy reserve and stable fees is a very different proposition from one without.
Can I back out if the status certificate reveals a problem?
If your offer includes a condition on review of the status certificate and you act within the condition period, yes. That is precisely what the condition exists for, which is why waiving it to make an offer more competitive is a decision to make deliberately and with advice, not casually.
