When exploring the Canadian real estate market, especially in urban centers, you’ll likely come across the term “condo.” But what exactly is a condo, and what are the different types? If you’re considering purchasing a condo, it’s important to understand the various forms, as they each come with unique benefits and responsibilities.

What is a Condo?

“Condo” is short for “condominium,” a type of property ownership where individuals own their private living space, such as an apartment or townhouse, but share ownership of common areas like lobbies, hallways, and amenities (e.g., pools, gyms). Condos are typically governed by a condominium corporation, which oversees the management and maintenance of common areas, funded by monthly condo fees paid by unit owners.

In Canada, there are several variations of condos, including bare land condos, freehold condos, and leasehold condos, each offering different ownership structures.

1. Conventional Condo

This is the most common type of condo. In a conventional condominium, you own your individual unit but share ownership of common areas like the building structure, gardens, amenities, and parking spaces. Conventional condos are typical in high-rise buildings, low-rise buildings, and townhouse complexes.

With conventional condos:

  • You are responsible for the interior of your unit.
  • The condo corporation handles maintenance of the common areas.
  • You pay monthly condo fees for maintenance, building insurance, and utilities like water or heating (depending on the arrangement).

2. Bare Land Condo

A bare land condo refers to a condominium where you own the land your unit sits on, in addition to the structure itself. These are common in townhouse complexes or gated communities.

With bare land condos:

  • You have more control and ownership, including responsibility for the land your home sits on (such as landscaping or driveway maintenance).
  • The condo corporation still oversees shared spaces like roads, gates, or community amenities.
  • Like conventional condos, you pay monthly fees, though they are typically lower since you’re responsible for more maintenance on your own property.

3. Freehold Condo

Freehold condos (also called “freehold condominium corporations”) give owners full ownership of their unit and the land it’s built on, similar to a detached house. However, shared areas such as driveways or recreational spaces are maintained by a condo corporation.

In a freehold condo:

  • You own and are responsible for your unit, inside and outside, including the land.
  • The condo corporation maintains and manages common spaces such as roadways, parks, or recreational areas.
  • Freehold condo fees tend to be lower because there are fewer shared elements.

4. Leasehold Condo

A leasehold condo is less common in Canada. In this arrangement, you own the unit, but the land it sits on is leased from a landowner for a set period (often 99 years). These types of condos are often seen on Crown land or First Nations reserves.

With leasehold condos:

  • You own the physical unit, but you lease the land.
  • You may have to pay both a lease fee for the land and condo fees for common area maintenance.
  • Once the lease expires, ownership of the land typically reverts to the original owner, so resale values can be affected as the lease term shortens.

Benefits of Condo Living

  • Affordability: Condos are often more affordable than single-family homes, making them attractive to first-time buyers or downsizers.
  • Low Maintenance: Condo corporations handle maintenance of common areas, meaning you won’t have to worry about mowing the lawn, cleaning the pool, or fixing the roof.
  • Amenities: Many condos offer amenities such as gyms, pools, and party rooms, which would be expensive to maintain individually.
  • Community Living: Condo living can foster a sense of community through shared spaces and events.

Potential Drawbacks

  • Condo Fees: While condo fees cover maintenance, they can sometimes be high and may increase over time.
  • Less Privacy: Living in close quarters with others in high-rise buildings or townhomes may reduce your level of privacy.
  • Restrictions: Condo corporations often have rules (e.g., pet restrictions, renovation limitations), so it’s important to know what they are before purchasing.

Is a Condo Right for You?

Condos are a fantastic option for those looking for affordable living with lower maintenance, especially in urban environments. However, whether a condo is right for you will depend on your lifestyle, financial situation, and personal preferences.

Before purchasing, make sure to:

  • Review the condo corporation’s financials and understand the monthly fees.
  • Understand any restrictions or rules in place.
  • Confirm whether you’re comfortable with the level of responsibility based on the condo type (e.g., a bare land condo means more individual maintenance).

If you’re considering buying a condo in Winnipeg or anywhere in Canada, I’m here to help you navigate your options. Whether you’re interested in a bare land condo or a conventional condo, I can help you find the perfect property that meets your needs and lifestyle.

Feel free to reach out for more information or a consultation!

Mark Goldade, CD
Mark Goldade Personal Real Estate Corporation
Coldwell Banker Preferred Real Estate