Condo vs townhouse vs freehold: what are you actually buying?
Key takeaways
- "Townhouse" describes the building's shape. "Condo" and "freehold" describe how it's owned. A townhouse can be either.
- With any condo, you share ownership of common elements and pay monthly fees to a condo corporation.
- POTLs and vacant land condos are hybrids, and both are common in newer London developments.
- The listing should say which type it is. Your lawyer will confirm it from the title.
One of the most common sources of confusion for London buyers is the word "townhouse". A townhouse on one street can be a condo with a monthly fee (say $400, for example), while an identical-looking townhouse a few blocks away is freehold with no fee at all. The difference matters for your monthly budget, your rights as an owner, and the documents your lawyer needs to review.
The four main ownership types
| Type | What you own | Monthly fee? | Who maintains the exterior |
|---|---|---|---|
| Condo apartment | Your unit, plus a shared interest in common elements | Yes | The condo corporation |
| Condo townhouse | Your unit (often defined as the interior), plus a shared interest in common elements, which may include roofs, exteriors and grounds | Yes | Usually the condo corporation. The declaration sets it out |
| Freehold townhouse | The house and the land under it, outright | No | You. Shared walls may come with shared obligations |
| POTL / common element condo | A freehold house and lot, "tied" to a common element condo that owns shared things like a private road | Yes, usually smaller | You for your home; the corporation for shared elements |
Condo apartments
This is what most people picture: a unit in a low-, mid- or high-rise building. You own your unit and a percentage share of everything else: the lobby, hallways, elevators, roof, parking garage, amenities and grounds. The condo corporation maintains all of that, funded by monthly condo fees.
Good for: people who want low maintenance, single-level living, security and amenities, and walkability (especially downtown).
Watch for: fee levels and increases, reserve fund health, elevator and garage repairs in older buildings, and rules on pets and rentals.
Condo townhouses
London has a large stock of condo townhouse complexes, many built from the 1970s onwards, as well as newer ones. Each home looks like a house, but legally it's a condo unit. Typically, the corporation is responsible for roofs, siding, windows, driveways and landscaping, and replaces them on a schedule funded by the reserve fund. The exact split of responsibilities is in the declaration, so don't assume.
Good for: buyers who want more space than an apartment, often a small yard and a basement, without handling exterior maintenance.
Watch for: the age of roofs and windows across the complex and whether the reserve fund can pay for them, rules about exterior changes such as decks and fences, and visitor parking.
Freehold townhouses
A freehold townhouse is a house you own outright, including the land, that happens to share walls with its neighbours. There's no condo corporation and no monthly fee. You're responsible for your own roof, windows and yard.
Good for: buyers who want full control and no fees, and are comfortable budgeting for their own maintenance.
Watch for: shared elements like a roof line or a shared driveway, which may be governed by easements or agreements. Your lawyer will check the title.
POTLs (parcels of tied land)
A POTL is a freehold home that is legally tied to a common element condominium. You own your house and lot outright, but you must also be a member of the condo corporation that owns shared elements, often a private road, a park, visitor parking or a mailbox area. Fees are usually lower than in a traditional condo because the corporation maintains less.
These are increasingly common in newer London subdivisions. Read the condo documents just as carefully as you would for a regular condo. The fee may be small, but the obligations are real.
Vacant land condos
In a vacant land condominium, each "unit" is a lot of land, and the owner owns the house built on it. The corporation owns shared roads, amenities and landscaping. Many adult-lifestyle and bungalow communities in and around London are structured this way. They can offer a single-family-home feel with some shared maintenance, but again, the documents govern everything.
Which is right for you?
- Lowest maintenance, most amenities: condo apartment.
- House-like space without exterior upkeep: condo townhouse.
- No fees and full control: freehold townhouse.
- New-subdivision living with modest shared costs: POTL.
- Bungalow living in a managed community: vacant land condo.
Don't rely on the listing alone. Listings sometimes describe properties loosely. Your lawyer confirms the ownership type from the title and registered documents. If it's any kind of condo, make your offer conditional on reviewing the status certificate.