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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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.
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 1Define 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 1–2Tour 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.
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.
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 offerArrange 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 periodWaive 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 offerLawyer 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 closingClosing 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 dateThe 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.
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.
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.
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
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.
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.
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 |
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.
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.
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.
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.
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.
Downloadable buyer resources
Print-ready one-sheets to keep you organized through the process. Download, print, and bring them to every showing.
Condo Showing Checklist
20 things to evaluate at every showing — unit and building.
↓ Download PDF One-Sheet · FreeStatus Certificate Review Guide
What your lawyer looks for — so you can have an informed conversation.
↓ Download PDF One-Sheet · FreeOntario Condo Closing Costs
Every cost beyond the purchase price, clearly laid out.
↓ Download PDF One-Sheet · Free20 Questions Before You Offer
The questions your agent should be able to answer about any condo listing.
↓ Download PDF One-Sheet · FreeCondo vs. POTL Comparison
Side-by-side guide for buyers comparing condos to townhouse POTLs.
↓ Download PDF PersonalizedGet a Custom Buyer Plan
A 30-minute call with Andrew covers your specific situation and timeline.
Book a call →30-Second Welcome Video Script
Paste this into Artlist's AI script tool, or record it yourself and generate a video from it. Tone: confident, warm, and direct — like you're talking to a friend who just asked for real advice.
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 balance | 80%+ funded per study | Under 70% funded |
| Reserve fund study age | Updated within 3 years | 4+ years old |
| Special assessments | None pending or planned | Active or anticipated |
| Litigation | None active | Active lawsuits |
| Operating budget | Surplus or balanced | Deficit |
| Seller arrears | $0 outstanding | Any amount owed |
| Insurance | Full replacement value | Gaps 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–$3,500 | Title search, insurance, registration |
| Title insurance | $250–$350 | One-time; strongly recommended |
| Home inspection | $400–$600 | Even for condos — book early |
| CMHC mortgage insurance | 2.8–4% of mortgage | Required if down payment <20% |
| Moving costs | $500–$3,000+ | Varies by distance and volume |
| Condo contents insurance | $30–$80/month | Ongoing; 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.
- What are the current monthly maintenance fees?
- What utilities are included?
- Has there been a fee increase in the last 2 years?
- Is there an active or anticipated special assessment?
- When was the last reserve fund study done?
- What percentage funded is the reserve?
- Are there active legal proceedings against the corporation?
- What is the pet policy?
- Are short-term rentals permitted?
- What is the rental percentage in the building?
- Is the parking spot deeded or exclusive use?
- Is a locker included? Deeded or exclusive use?
- Who is the building's management company?
- How old are the major mechanical systems?
- Have any renovations been done, and were they permitted?
- Why is the seller selling?
- How long has the unit been listed?
- Are there any known disputes with neighbours?
- Does the building allow EV charger installation?
- 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 own | Unit + share of common elements | Freehold lot + CECC interest |
| Building envelope | Corporation's responsibility | Usually owner's responsibility |
| Status certificate | Required; covers full building | Required; covers CECC only |
| Maintenance fee scope | All common elements + reserves | Shared roads, amenities only |
| Home inspection | Unit interior only | Full exterior inspection possible |
| Lender flexibility | Condo rules apply | Often treated as freehold |
| Reserve fund risk | Higher — full building exposure | Lower — 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

