McLellan Real Estate · Ontario

Your complete guide to buying a condo in Ontario

Everything you need — from first search to keys in hand — written by someone who actually does this every day.

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A quick word from Andrew

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Step by step

How buying a condo in Ontario actually works

The condo purchase process has a few unique steps a freehold buyer never encounters. Here's the full picture from search to closing.

1

Get mortgage pre-approval

Before you tour a single unit, know your budget with certainty. A pre-approval letter also signals to listing agents that you're a serious buyer. Make sure your mortgage broker understands condo-specific lending — some lenders impose restrictions on buildings under a certain size or with a high investor ratio.

Day 1
2

Define your search criteria

Consider: floor level, parking/locker included, pet policy, balcony, building age, maintenance fees, amenities you'll actually use, and proximity to transit or work. Narrowing this list saves you from falling in love with a unit in a building that doesn't work for your life.

Week 1–2
3

Tour properties and make an offer

In Ontario, most offers are made on the standard OREA Agreement of Purchase and Sale. You can include conditions — the most important for a condo purchase are a financing condition and a status certificate review condition. Never waive the status certificate condition.

Pro tip

Even in multiple offers, your agent can often negotiate a 24–48 hour window to review the status certificate before you firm up. Always ask.

Week 2–6
4

Review the status certificate

Once your offer is accepted conditionally, the seller must provide the status certificate within 10 days. You then have a window — typically 3 business days — for a lawyer to review it. This is one of the most critical steps in any condo purchase.

After accepted offer
5

Arrange a home inspection

Yes, even for condos. A qualified inspector evaluates the unit itself — HVAC, electrical panel, plumbing, windows, doors, appliances. While they can't access common elements or mechanical rooms, they can flag unit-level issues that could cost you significantly at closing or after.

Condition period
6

Waive conditions and firm up

Once satisfied with the status certificate and inspection, your lawyer signs off and you submit a waiver of conditions. The deal is now firm — you're legally committed. Your deposit is typically due at this point.

~10 days post offer
7

Lawyer prepares for closing

Your real estate lawyer handles the title search, coordinates with your lender, calculates land transfer tax, and prepares closing documents. Note: Toronto has a municipal LTT in addition to the provincial one — factor this in if buying in the 416.

30–90 days to closing
8

Closing day

You sign final documents with your lawyer, your lender funds the mortgage, and title transfers to your name. You receive keys — usually via the listing brokerage. Congratulations.

Closing date
Critical document

The status certificate, explained

This is the single most important document in a condo purchase. It reveals the financial and legal health of the corporation you're about to become a part-owner of.

What is it?

A legal document issued by the condo corporation under the Ontario Condominium Act. It gives a buyer and their lawyer a snapshot of the building's finances, rules, insurance, and any pending legal actions. The seller pays for it — typically around $100 — and must provide it within 10 days of a written request.

Reserve fund

How much money is set aside for major repairs — roof, parking garage, elevators. An underfunded reserve is a future special assessment waiting to happen.

Reserve fund study

An engineering report projecting when major components will fail and what it will cost. Corporations must update it every 3 years.

Common expenses

The current monthly maintenance fees, whether they're expected to increase, and whether the seller is in arrears — their unpaid fees become your problem at closing.

Special assessments

One-time charges against all owners to fund a major repair the reserve couldn't cover. Active or anticipated assessments can cost tens of thousands per unit.

Pending litigation

If the corporation is in a legal dispute, you're inheriting that risk. Some lenders won't finance units in buildings with active lawsuits.

Insurance certificate

Confirms the building has adequate coverage. Gaps could expose owners to personal liability in the event of a loss.

Declaration, bylaws & rules

Pet restrictions, rental restrictions, parking rules, renovation approvals, short-term rental policies — all in here. Know them before you buy.

Budget & financials

The current operating budget and most recent audited financials. A deficit in the operating fund means the corporation is spending more than it collects.

Management company

Who manages the building and their contact information. Poorly managed buildings tend to have higher fees and more owner complaints.

Never waive the status certificate condition

Even in a competitive multiple-offer situation, the risk of buying into a financially distressed condo corporation without a lawyer's review is enormous. Special assessments of $10,000–$50,000 per unit are not unheard of. Your agent should fight for this condition — always.

Due diligence

Home inspections for condos

Many condo buyers skip the inspection, assuming there's nothing to inspect. That's a mistake that can cost you significantly.

What an inspector can assess

  • In-unit HVAC (fan coil, heat pump, furnace)
  • Electrical panel and visible wiring
  • Plumbing fixtures, water pressure, drains
  • Windows and exterior doors (condition, seals)
  • Balcony or terrace condition
  • Appliances included in the sale
  • Signs of water damage, mould, or past flooding
  • Ceilings and interior finishes
  • Ventilation and air quality
  • Smoke and CO detector placement

What they can't access

  • Common element mechanical rooms
  • Roof and building envelope (exterior)
  • Elevator equipment
  • Parking garage structure
  • Shared plumbing stacks (beyond unit)
  • Building-wide electrical systems
The workaround

A good condo lawyer reviews the reserve fund study — an engineering report covering common elements. Together with your unit inspection, you get a comprehensive picture of the property's overall condition.

Timing tip

Book your inspector the same day your offer is accepted. Your condition period is typically 3–5 business days — don't wait. Inspectors with strong reputations book up quickly.

Know the difference

Condo corporation vs. POTL

Not everything called a "condo" is actually a condo under the Condominium Act. Many Ontario townhouse communities are structured as Parcels of Tied Land (POTL) — and the difference matters significantly.

Feature Standard Condo Corporation POTL (Parcel of Tied Land)
What you own Your unit + shared interest in common elements Your freehold lot + shared access to common elements
Governed by Ontario Condominium Act, 1998 Common Elements Condo Corp (CECC); also under the Act
Status certificate required Yes Yes — for the CECC
Building envelope responsibility Condo corporation (shared) Usually the individual owner
Maintenance fee scope All common elements + building reserves Shared roads, visitor parking, amenities only
Lender flexibility Condo-specific mortgage rules apply Often treated as freehold — more flexibility
Home inspection Unit interior only Full home inspection typically possible More thorough
Reserve fund exposure High — shares all major building repairs Lower — CECC reserve covers common areas only
Typical property type High-rise, mid-rise, stacked townhouse Townhouse community, bungalow court
Key takeaway

A POTL townhouse can look and feel like a freehold, but there's a condo corporation attached to the title. Always confirm the structure before making an offer, and ensure your lawyer reviews the CECC status certificate — it's easy to overlook on what appears to be a regular townhouse.

Buyer beware

What to watch out for

Condos can be excellent investments and wonderful homes — but specific pitfalls catch first-time condo buyers off guard. Know these before you start shopping.

🚩

Underfunded reserve fund

If the reserve fund study shows the building is significantly below the recommended funding level, a special assessment is likely in your future. Your lawyer should flag the percentage funded — anything under 70–80% deserves careful scrutiny.

🚩

Artificially low maintenance fees

Developers often set fees low to attract buyers. If a building is only a few years old and fees haven't increased, the reserve is likely being underfunded — or a big hike is coming. Compare against comparable buildings in the area before assuming the fees are sustainable.

🚩

Active or pending litigation

Ongoing lawsuits with uncertain outcomes, or lawsuits from owners against the board, are concerning. Some lenders won't finance units in buildings with active litigation — which can also affect your resale options down the road.

🚩

High rental concentration

Buildings where more than 35–40% of units are investor-owned tend to have more turnover, less community cohesion, and can trigger lending restrictions. Some lenders won't approve mortgages in buildings above a certain rental ratio.

🚩

Deferred maintenance in common areas

Walk the building carefully before making an offer. Stained lobby ceilings, crumbling parking garage concrete, peeling hallway paint — these are physical signs of a corporation that isn't maintaining the property or has cash flow issues.

🚩

Short-term rental restrictions (or the lack of them)

If you plan to Airbnb the unit, check the declaration carefully — many Ontario corporations have explicitly banned short-term rentals. Conversely, if you're moving in, you may not want Airbnb guests cycling through your building.

🚩

Multiple units sitting on market

If several units in a building have been sitting for 60+ days while nearby buildings are moving quickly, there's often a building-specific reason. Investigate before assuming you've found a deal.

🚩

Seller in arrears on maintenance fees

The status certificate discloses whether the seller owes unpaid maintenance fees. Under the Condominium Act, unpaid common expenses become a lien on the unit — meaning you could be on the hook for the seller's debt at closing.

Budget accordingly

The real cost of buying a condo

Beyond the purchase price, Ontario condo buyers face several additional costs. Budget for these before you start shopping so there are no surprises at closing.

1.5–2% Provincial Land Transfer Tax ~$8,475 on a $600K condo. First-time buyers: rebate up to $4,000.
+1–2% Toronto Municipal LTT Toronto only. Equal to the provincial amount. FTHB rebate up to $4,475.
$1,500–$3,500 Legal fees + disbursements Includes title search, title insurance, and registration.
$400–$600 Home inspection Strongly recommended. Book the same day your offer is accepted.
$250–$350 Title insurance One-time premium. Protects against fraud, errors, and zoning issues.
$300–$1,200+/mo Maintenance fees Ongoing. Varies by building age and included utilities. Always factor into your budget.
$30–$80/mo Condo contents insurance Your unit and belongings. The corporation covers the building.
2.5–4% Total closing cost rule of thumb Of the purchase price, in addition to your down payment.
Plan ahead

On a $600,000 condo, 2.5–4% works out to $15,000–$24,000 in closing costs on top of your down payment. Knowing this before you start shopping prevents last-minute scrambles and protects your deal from falling apart at closing.

Common questions

Frequently asked questions

Straight answers to the questions I hear most from condo buyers across Ontario.

Do I need a realtor to buy a condo in Ontario?

You're not legally required to, but it's strongly advisable — especially for condos. A buyer's agent costs you nothing (commission is paid by the seller's side), provides MLS access before public portals, helps evaluate the status certificate, and negotiates on your behalf. For condos specifically, an agent who knows buildings in your target area can tell you which ones have problematic histories before you spend time and money on offers.

How much do maintenance fees cover, and can they increase?

Maintenance fees fund the operating costs of the condo corporation — typically water, building insurance, management fees, landscaping, cleaning, and reserve fund contributions. What's included varies: some buildings include heat and hydro; others don't. Yes, fees can and do increase — historically 3–6% annually on average. The status certificate will show the current fee and any upcoming increase. Always factor fees into your total monthly cost when determining affordability.

What is a special assessment and how worried should I be?

A special assessment is a one-time charge to all unit owners to fund a major repair or expense the reserve fund can't cover. They range from a few hundred to $30,000+ per unit and aren't uncommon in older buildings or those with historically underfunded reserves. Your lawyer will flag any known or anticipated assessments in the status certificate review. The key question: is the corporation actively managing its reserve fund, or has it been deferring contributions for years?

Can I rent out my condo on Airbnb?

Maybe. The condo declaration and rules govern this. Many Ontario corporations have explicitly prohibited short-term rentals (typically defined as rentals under 28 days). Even if the corporation hasn't banned it, municipalities like Toronto have their own short-term rental licensing requirements. Always check the declaration before purchasing if STR income is part of your plan. Violations can result in fines from the corporation and legal action.

Can I renovate my condo unit?

Generally yes — within limits. You own the interior of your unit and can renovate it. However, most corporations require written approval before work begins, particularly for anything that touches shared systems (plumbing stacks, HVAC, electrical). Moving walls, installing hardwood, or modifying the kitchen may be subject to specific approval requirements. Review the corporation's rules document — included in the status certificate package — before planning any significant renovation.

Is parking always included with the unit?

Not always. Parking spots may be owned by the unit (on title), exclusively licensed to the unit (not on title but attached), or a completely separate purchase. Confirm whether the spot is deeded or exclusive use, and whether it transfers with the sale. Lockers are handled the same way. Both have implications for resale value and how they're handled in financing.

Can the corporation tell me I can't have pets?

The Condominium Act limits a corporation's ability to ban pets outright — an absolute no-pets clause in a declaration is generally unenforceable if you owned the pet before buying. However, rules restricting pet size, number, or breed are common and generally enforceable. Always check the declaration and rules for pet provisions before purchasing if you have or plan to have pets.

Is buying a pre-construction condo different?

Very different. Pre-construction condos involve a builder's APS (not the standard OREA form), Tarion warranty protection instead of a status certificate review, occupancy fees before title transfer, potential delays of 1–3 years, and development charges. There's a mandatory 10-day cooling-off period where you can walk away. Pre-construction has its own set of risks and rewards that deserve a dedicated conversation — reach out and we can discuss your specific situation.

What happens if I have a dispute with the condo corporation?

Ontario has a Condominium Authority Tribunal (CAT) that handles disputes between owners and corporations. The CAT is a low-cost, online-first tribunal that covers matters like records access, noise, pets, and parking. For more complex disputes, arbitration or civil litigation may be required. In practice, most issues are resolved through the property management company — document everything in writing if you're having problems.

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30-Second Welcome Video Script

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Script — approx. 85 words · 30 seconds at conversational pace

Welcome to the McLellan Condo Buyer's Guide

"Buying a condo in Ontario is one of the biggest decisions you'll ever make — and it comes with a few moving parts that a regular home purchase just doesn't have. I'm Andrew McLellan, and I put this guide together because I wanted you to walk into this process fully informed. We're going to cover everything: the status certificate, what to watch out for, the real costs involved, and the questions you should be asking before you make an offer. Let's get into it."

Ready to find your perfect condo?

Let's talk about what you're looking for. No pressure, no obligation.

McLellan Real Estate · mclellanrealestate.ca

Condo Showing Checklist

Evaluate every unit and building carefully. Check off each item as you go.

The Unit

  • ☐  Natural light — direction, view, any obstructions?
  • ☐  Ceiling height — open or cramped feeling?
  • ☐  Storage — in-suite closets, locker, layout efficiency
  • ☐  Appliances — included? Brand, age, condition?
  • ☐  Flooring — scratches, squeaks, uneven areas
  • ☐  Windows — do they open? Condensation between panes?
  • ☐  Heating/cooling — fan coil, heat pump, or baseboard? Owner-controlled?
  • ☐  Bathroom — water pressure, drainage, signs of mould
  • ☐  Laundry — in-suite or shared? Where in building?
  • ☐  Noise level during the visit — traffic, neighbours, HVAC

The Building

  • ☐  Lobby and common areas — maintained, clean, recently updated?
  • ☐  Elevator — wait time, condition, number of cabs
  • ☐  Parking spot — location, size, EV charger available?
  • ☐  Visitor parking — how many spots, any restrictions?
  • ☐  Mail and parcel room — secure package delivery?
  • ☐  Garbage/recycling rooms — odour, cleanliness
  • ☐  Amenities — gym, rooftop, party room — are they well-maintained?
  • ☐  Security — fob access, cameras, concierge presence
  • ☐  Bike storage — secured, accessible, adequate
  • ☐  Overall community feel — primarily owner-occupied or heavy rental?

Informational purposes only. Work with a licensed real estate professional. · andrew@mclellanrealestate.ca

McLellan Real Estate · mclellanrealestate.ca

Status Certificate Review Guide

Share this with your lawyer. These are the key items to flag in any status certificate review.

Item Green Flag Red Flag
Reserve fund balance80%+ funded per studyUnder 70% funded
Reserve fund study ageUpdated within 3 years4+ years old
Special assessmentsNone pending or plannedActive or anticipated
LitigationNone activeActive lawsuits
Operating budgetSurplus or balancedDeficit
Seller arrears$0 outstandingAny amount owed
InsuranceFull replacement valueGaps or exclusions

Always have a licensed real estate lawyer review the full status certificate package. · andrew@mclellanrealestate.ca

McLellan Real Estate · mclellanrealestate.ca

Ontario Condo Closing Costs

Budget 2.5–4% of the purchase price for closing costs, in addition to your down payment.

Cost Item Estimate Notes
Provincial Land Transfer Tax~1.5–2%FTHB rebate up to $4,000
Toronto Municipal LTT~1.5–2% (Toronto)FTHB rebate up to $4,475
Legal fees + disbursements$1,500–$3,500Title search, insurance, registration
Title insurance$250–$350One-time; strongly recommended
Home inspection$400–$600Even for condos — book early
CMHC mortgage insurance2.8–4% of mortgageRequired if down payment <20%
Moving costs$500–$3,000+Varies by distance and volume
Condo contents insurance$30–$80/monthOngoing; covers your unit and belongings

Estimates for planning purposes only. Confirm exact costs with your lawyer and mortgage professional. · andrew@mclellanrealestate.ca

McLellan Real Estate · mclellanrealestate.ca

20 Questions Before You Offer

Your agent should be able to answer all of these about any condo listing before you make an offer.

  1. What are the current monthly maintenance fees?
  2. What utilities are included?
  3. Has there been a fee increase in the last 2 years?
  4. Is there an active or anticipated special assessment?
  5. When was the last reserve fund study done?
  6. What percentage funded is the reserve?
  7. Are there active legal proceedings against the corporation?
  8. What is the pet policy?
  9. Are short-term rentals permitted?
  10. What is the rental percentage in the building?
  11. Is the parking spot deeded or exclusive use?
  12. Is a locker included? Deeded or exclusive use?
  13. Who is the building's management company?
  14. How old are the major mechanical systems?
  15. Have any renovations been done, and were they permitted?
  16. Why is the seller selling?
  17. How long has the unit been listed?
  18. Are there any known disputes with neighbours?
  19. Does the building allow EV charger installation?
  20. What is the visitor parking policy?

For a personalized buyer consultation — andrew@mclellanrealestate.ca · mclellanrealestate.ca

McLellan Real Estate · mclellanrealestate.ca

Condo Corporation vs. POTL

Understanding the key structural differences before buying a townhouse in Ontario.

Feature Condo Corporation POTL
What you ownUnit + share of common elementsFreehold lot + CECC interest
Building envelopeCorporation's responsibilityUsually owner's responsibility
Status certificateRequired; covers full buildingRequired; covers CECC only
Maintenance fee scopeAll common elements + reservesShared roads, amenities only
Home inspectionUnit interior onlyFull exterior inspection possible
Lender flexibilityCondo rules applyOften treated as freehold
Reserve fund riskHigher — full building exposureLower — common areas only

Always have your lawyer confirm the structure of any townhouse purchase. A property can look like a freehold and still carry POTL obligations that affect your rights and costs.

andrew@mclellanrealestate.ca · mclellanrealestate.ca