Homes & Land of Ottawa

Choosing between condo or freehold properties

During the home search process, most home buyers will decide whether a condominium or freehold property is right for their needs. Both condos and freeholds come in all shapes and sizes; not all condos are apartments. A condo is simply a property, regardless of style, which is registered as a condominium, whereas freehold properties do NOT have a condominium corporation associated with them. Both freehold and condo properties have advantages and can make great homes for any homeowner, regardless of age or lifestyle.

In the case of freehold properties, the title holder (person who owns the home and whose name is registered on the legal title documents) generally owns the entire property inside and out. That includes the roof, the foundation, and the land that the residence stands on. Generally the condo title holder owns only the interior of his or her unit, as well as a share of any common areas and elements that are listed as part of the condo corporation description (such as the lobby, any outdoor spaces, gym facilities, party rooms, elevators and so forth). There are exceptions where the title holder owns the residence inside and out, but there are other common elements such as roads covered under the condominium corporation.

Condo owners are usually required to pay a monthly fee for the upkeep of the common areas, elements and insurance. Before purchasing a condo, home buyers should be sure to find out what exactly is covered by those fees, and investigate the current and past financial status of the condominium corporation.

Also, condo corporations can legally create and enforce by-laws (although they must first be approved by the condo owners) to regulate issues such as whether pets are permitted, how much noise is too noisy, and when common elements such as a pool can be used, and by whom.

Condos are great for people who don’t want to do a lot of home maintenance. Despite their monthly fees, condos can also be ideal for people on a limited budget or fixed income, because their purchase price is often lower than those of freehold residences, and since maintenance is paid incrementally through condo fees, owners won’t have to suddenly come up with a large sum of money to replace the roof, for example.

Freeholds have their advantages as well, of course: some people love a fixer-upper, while others love adding their own individual touches such as landscaping or even an addition or major renovation. Freehold owners are free to do whatever they want to their home, as long as it does not violate zoning by-laws or building code requirements. However, they do need to take care of routine maintenance (or hire someone to do it for them) such as grass cutting, snow removal, and exterior painting, and they should have an emergency house fund in case the roof starts leaking or the foundation cracks.

We’re fortunate in Ottawa to have a wide variety of housing for home buyers to choose from, whether they’re looking for a downtown condo apartment, a large home in the suburbs, or something in between. Check out www.OttawaRealEstate.org for an online roster of Ottawa Real Estate Board members, who would be pleased to help you start your search for a new home – condo or freehold.