Freehold Townhouse: A Guide to Understanding Property Ownership

If you’re in the market for a new home, you may be wondering which type of house is right for you and your family. With a wide variety of house styles available, it can be difficult to know where to start. One popular option to consider is a freehold townhouse.

In recent years, interest in freehold townhouses for sale in Toronto and the surrounding areas has been on the rise. To better understand why this type of housing has become so popular, let’s take a closer look at what a freehold townhouse is and some of its advantages and disadvantages.

Key Takeaways

  • Freehold townhouses are a popular housing option in Toronto and the GTA.
  • Understanding the advantages and disadvantages of freehold townhouses can help you decide if this type of housing is right for you.
  • When choosing a house, it’s important to consider your personal needs and preferences.

What is a Freehold Townhouse

Freehold townhouses, also known as townhouses or townhouse condos, are multi-level homes that share one or two walls with their neighbours. They are different from flats or condo buildings because they each have their own private entrance. The ownership structure of a freehold townhouse resembles that of a detached house, as opposed to other forms of property. This means that the building and the land are both owned by the freehold townhouse owner, giving them total control over how the facility is used, decorated, and maintained.

You Have the Ownership of a Freehold Townhouse

Compared to a single-family house, freehold townhomes often have smaller land size that requires minimal lawn maintenance. However, owning a freehold townhouse gives you the benefit of owning your own property without the hassle of maintaining a large yard. This makes it an ideal option for those who want to own their own home but do not want the upkeep of a large property.


Freehold townhouses, especially condos townhouses in Toronto, tend to be centred around areas that are ideal for families. They offer a safe and secure living environment for children to play and grow. Unlike living in a location with a lot of traffic, freehold townhouse residents have the opportunity to let their children ride their bikes or go for lengthy nighttime strolls. Toronto’s middle-class families rely heavily on freehold townhouses, making them an ideal choice for those looking for a family-friendly home.

No Monthly Maintenance Fees Apply to Freehold Townhouse Residents

Owners of freehold townhouses do not have to pay monthly HOA fees, which in Toronto may range from $0.50 to $1.00 per square foot. This means that owners are responsible for everything from the roof, outside walls, driveway and garage, as well as landscaping and snow removal. Since they are not required to pay a monthly HOA fee, freehold townhouse residents have more freedom to update or maintain the home’s amenities at a time that is most convenient for them financially. Homeowners may save money by mowing their own lawn and shovelling their own snow, and they can do it at their own discretion. In the same neighbourhood, freehold townhomes are often less expensive than private residences. Freehold townhouses provide the same financial benefits as private residences, but they are less costly. Because there is no HOA charge in freehold townhouses, the monthly cost is lower than in condominium townhomes. Living in a townhouse might save you money on your monthly energy costs because of the shared walls that keep heat in.

Easier for Townhouses to Access

Condominium fees are a major turn-off for many investors since they limit the likelihood of making a profit. A Toronto new condo, on the other hand, is both more affordable and less burdened by set ongoing payments that might make ownership as an investment seem like a tightrope to tread. Freehold townhouses are an attractive option for those looking to invest in property without the added burden of monthly condo fees.

Different Terrace Than Condo

If you buy a freehold townhouse, you’ll have your own garden where you can relax in peace and quiet. Unlike in a condo, you won’t have to deal with other residents’ cigarette smoke ruining your calm stroll across the courtyard. This makes it an ideal option for those who want to enjoy their own outdoor space without the inconvenience of shared amenities.

Freehold Townhouse Vs Condo

When it comes to choosing between a freehold townhouse and a condo townhouse, there are advantages and disadvantages to both options. Here are some key factors to consider:

Ownership and Responsibility

With a freehold townhouse, you own the unit both inside and out, and you are responsible for all repairs and upkeep. This means you have more control over your property, but also more financial responsibility. On the other hand, with a condo townhouse, you only own the interior of your unit, and the condo company is responsible for exterior maintenance and repairs. This can be a relief for those who don’t want to deal with the hassle of homeownership, but it also means less control over your property.

Fees and Assessments

Condo townhouses typically come with monthly condo fees that cover services like landscaping, yard maintenance, and exterior repairs. However, you may also be subject to special assessments if there is an emergency repair or financial issue. With a freehold townhouse, there are no monthly fees or assessments, but you will be responsible for all costs associated with your property.

Regulations and Restrictions

Condo townhouses are subject to condo regulations, which may limit your ability to make changes to your property. For example, you may not be allowed to put up a grill on your balcony. With a freehold townhouse, you have more freedom to make changes to your property, but you are also subject to local bylaws and regulations.

Value and Demand

Freehold townhouses tend to be more expensive than condo townhouses, but they also tend to grow in value more quickly. This is because they offer more control and ownership over your property. However, condo townhouses can still be a good investment, especially in areas where there is high demand for low-maintenance housing options.

Overall, the decision between a freehold townhouse and a condo townhouse comes down to your personal preferences and priorities. If you value control and ownership over your property, a freehold townhouse may be the better option. However, if you prefer low-maintenance living and don’t mind following condo regulations, a condo townhouse may be a good fit for you.

Frequently Asked Questions

What is a Freehold Townhouse and How is it Different from a Condo?

A freehold townhouse is a type of residential property where the owner has complete ownership of the property, including the land it sits on. In contrast, a condo owner only owns the interior of their unit and shares ownership of the common areas with other condo owners. Freehold townhouses are typically attached to one or more neighboring units, while condos can be either attached or detached.

What are the Benefits of Owning a Freehold Townhouse?

One of the main benefits of owning a freehold townhouse is the sense of ownership and control that comes with it. As the owner of the property, you have the freedom to make changes and improvements without seeking approval from a condo board or landlord. Additionally, freehold townhouses often offer more space and privacy than condos, making them a great option for families or those who value their personal space.

What are the Common Elements in a Freehold Townhouse?

Common elements in a freehold townhouse typically include shared driveways, sidewalks, and landscaping. In some cases, there may also be shared amenities such as a pool, gym, or community center. However, unlike in a condo, the maintenance and repair of these common elements are the responsibility of the individual homeowners rather than a condo board.

What are the Advantages of Buying a Pre-Construction Freehold Townhouse?

Buying a pre-construction freehold townhouse can offer several advantages, including the ability to customize the property to your liking and the potential for a lower purchase price. Additionally, since the property is brand new, you won’t have to worry about any immediate maintenance or repair issues.

What are the Differences Between a Freehold Townhouse and a POTL?

A POTL, or “part of the land,” is a type of freehold ownership where each homeowner owns a portion of the land and the common areas are jointly owned. In contrast, a freehold townhouse typically has a smaller lot size and the common areas are owned individually by each homeowner. Additionally, a POTL may have more restrictions on property modifications and maintenance than a freehold townhouse.

What are the Best Locations to Buy a Freehold Townhouse in Canada?

The best locations to buy a freehold townhouse in Canada will depend on your personal preferences and priorities. Some popular options include urban areas with easy access to amenities, suburban areas with good schools and family-friendly neighborhoods, and rural areas with plenty of outdoor recreational opportunities. It’s important to research the local real estate market and consider factors such as property values, crime rates, and proximity to public transportation before making a decision.

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