Strata vs FreeholdStrata vs Freehold

What each one means

Freehold means you own the land and everything on it, subject to municipal rules and any registered charges on title. Most detached homes are freehold. You are responsible for the whole property and you make every decision about it.

Strata means you own your unit, called a strata lot, plus a share of the common property: hallways, roof, building envelope, amenities, grounds. The strata corporation, which is all the owners together, maintains the common property through strata fees and a council that owners elect.

Costs and how they behave

Freehold costs are lumpy and yours alone: a roof, a furnace, drainage. Strata costs are smoothed into monthly fees plus occasional special levies when the reserve fund cannot cover a project. Neither is cheaper by default. The question is whether the building's reserve fund and depreciation report show a plan, or a bill waiting to arrive.

Lenders count strata fees when qualifying you, which affects how much you can borrow for the same monthly budget.

• Freehold: full control, full responsibility
• Strata: shared costs, shared decisions, bylaws
• Both: property tax, insurance, utilities

Bylaws, rentals, pets and age

Strata bylaws can govern rentals, pets, age restrictions in some buildings, renovations and use of common areas. Provincial rules on rental and age restrictions have changed in recent years, so read the current bylaws rather than assuming. Freehold owners answer to zoning and building codes, not a council.

Resale and liquidity

Condos and townhomes tend to trade in deeper markets with more comparable sales, which makes pricing clearer. Detached homes carry the land, which historically has driven more of the long-term value in this region, but each sale is more individual. Which is better for you depends on holding period, budget and how you plan to live.

Bare-land strata, duplexes and leasehold

Between the two sit bare-land stratas, where you own the lot but share roads or services; half-duplexes, which may be strata or freehold with a party-wall agreement; and leasehold, where you own an interest for a fixed term on land owned by someone else, often a municipality or First Nation. Each has its own financing and resale considerations. Ask before you assume.