What are the various types of property ownership?
Which one is best for you?
Single Family – Freehold
- Most common form of ownership
- You own the land and home and are responsible for everything inside and outside of the home
- Property Transfer Tax is generally applicable unless you qualify for the exemptions (We can talk more about these exemptions) – Higher cost associated as you own the land
- Right to occupy “Runs with the land” and goes on indefinitely (some exceptions apply)
Strata Condo/Townhouse – Freehold
- You own your unit and share ownership of common spaces
- Strata is in charge of upkeep of the building and common areas such as halls, elevators, parking garages, amenities, etc. – You pay a monthly fee to the Strata. This fee can cover items such as; maintenance fees, groundskeeping, building insurance, taxes, the Contingency Reserve and Operating funds, etc.
- There are Rules and Bylaws that apply to all units and common areas and can make reference to restrictions on rentals, pets, common area use, etc.
Single Family – Leasehold
- You own the home but not the land and are responsible for everything inside and outside of the
- The land is generally “leased” on a 99 year term so the length of time remaining will vary
depending on location.
- Property Transfer Tax Exempt (rare exceptions apply)
- Financing can be limited
- Lower cost associated vs. comparable Freehold home
- May retain First Time Buyer’s status for future home purchase
Strata Condo/Townhouse – Leasehold
*Includes all of the items from Strata- Freehold section, as well as:
- Depending on the development, there may be a lease fee on top of your strata fee
- Again, you do not own the land and the land will typically be on a 99 year term
- Certain developments can only be financed through specific lenders.
- Lower cost associated vs. comparable Freehold Strata unit.
- May retain your First Time Buyer’s status for a future Freehold purchase, if applicable.