Buying
Freehold vs condo townhome in Vaughan: what changes for a new-home buyer
3 min readPublished
Quick answer
Ontario's 10-day cooling-off period applies to new condos, not freehold homes, so a signed freehold agreement is binding unless it says otherwise. Deposit protection also differs. Tarion's freehold cap is up to $100,000, while condo deposits must be held in trust under the Condominium Act. Ask a lawyer to review either agreement.
Key facts: freehold versus condo townhomes in Vaughan
| Cooling-off period | Condo: 10 days (s. 73). Freehold: none by statute |
|---|---|
| Deposit protection, freehold | Tarion: up to $60,000 at or below $600,000; above that 10% of the price, maximum $100,000 |
| Deposit protection, condo | Held in trust under the Condominium Act; if not, Tarion covers up to $20,000 |
| Tarion registration, freehold | Within 45 days for purchases signed on or after 2026-04-01 |
| Maximum warranty coverage, condo unit | $300,000 |
| Delay compensation | Up to $7,500 in total; $150 a day for living expenses |
What is the difference between a freehold and a condo townhome?
A freehold townhome means you own the home and the lot it sits on. A condominium townhome is a unit in a condominium corporation, governed by the Condominium Act, 1998. The legal protections for buyers differ between the two.
Weston Woods by Paradise Developments is sold freehold, and its price list shows no condo fees. Arista's draft agreement for Vellore Trails Phase 2 describes freehold parcels tied to a common elements corporation, which owns shared items such as the internal road and charges owners a monthly common fee. Ask your lawyer to explain how that differs from a condo townhome. Opus, Deco, Fieldgate and Bridgelands describe freehold townhomes.
Is there a cooling-off period on a freehold townhome?
No. Ontario's 10-day cooling-off period (s. 73 of the Condominium Act, 1998) applies to new condos. It does not apply to freehold homes. A signed freehold agreement is binding unless it says otherwise.
Ask for the offer to be conditional on a lawyer's review for a few days, and have the lawyer check the agreement before you sign.
How is a deposit protected on freehold versus condo?
Freehold: Tarion protects a deposit up to $60,000 on a home priced at or below $600,000. Above that the cap is 10% of the price, to a maximum of $100,000.
Condo: the Condominium Act requires deposits to be held in trust. If they are not, Tarion's warranty covers up to $20,000.
How do closing dates and delays differ?
Tarion publishes separate pages for the two types: occupancy dates, delays and cancellations for condo units, and closing dates and delays for freehold and contract homes.
Tarion's delay compensation is up to $7,500 in total, $150 a day for living expenses, and $1,500 when the builder fails to give proper notice. Read the Tarion pages for the conditions that apply to your home type.
What does the Tarion warranty cover on each?
After possession Tarion's statutory warranty covers defects in work and materials, and unauthorized substitutions for one year, water penetration, and defects in work and materials in the electrical, plumbing and heating delivery and distribution systems for two years, and major structural defects for seven years. For a condominium unit the maximum statutory coverage is $300,000.
This guide is general information, not legal or tax advice. Rules change and every agreement is different, so have a real estate lawyer review your agreement and speak to an accountant about tax before you sign.
Key takeaways: freehold versus condo townhomes in Vaughan
- The 10-day cooling-off period applies to new condos, not freehold homes.
- Freehold deposits are protected by Tarion up to $100,000.
- Condo deposits must be held in trust under the Condominium Act.
- Tarion publishes separate delay rules for condo and freehold homes.
- Confirm tenure and have a lawyer review the agreement before you sign.
Email me this guide
The quick answer and the key takeaways in your inbox, with a link back here.
Freehold versus condo townhomes in Vaughan: frequently asked questions
Do I get a cooling-off period on a new freehold townhome in Ontario?
No. The 10-day period in the Condominium Act applies to new condos only. A signed freehold agreement is binding unless it says otherwise.
Does Tarion protect a freehold townhome deposit?
Yes, up to a cap: $60,000 at or below $600,000, and above that 10% of the price to a maximum of $100,000.
Are Weston Woods townhomes freehold or condo?
Paradise Developments sells Weston Woods townhomes as freehold, and its price list shows no condo fees.
Which is better, freehold or condo townhome?
That depends on your budget and plans. This guide only compares the legal protections Tarion and the Condominium Act give new-home buyers. A lawyer can compare the agreements.
Sources
- Condominium Act, 1998, S.O. 1998, c. 19 — Ontario e-Laws (accessed November 11, 2026)
- Pre-construction condos — Condominium Authority of Ontario (accessed November 11, 2026)
- How does deposit protection work on new homes? — Tarion (accessed November 11, 2026)
- Just bought a new home? Register it with Tarion (accessed November 11, 2026)
- What is the new home warranty — Tarion (accessed November 11, 2026)
- Coverage and coverage limits after you move in — Tarion (accessed November 11, 2026)
- Condo units: coverage for occupancy dates, delays and cancellations — Tarion (accessed November 11, 2026)
- Freehold and contract homes: coverage for closing dates and delays — Tarion (accessed November 11, 2026)
Published by Summitly, the website of Coldwell Banker Summit Realty, Brokerage, registered with the Real Estate Council of Ontario (RECO); an independently owned and operated Coldwell Banker franchise. Broker of Record: Waqar Afzal. Questions or corrections: our contact form. How we write and check these pages: editorial policy.
Cite this guide
Summitly Editorial. (2026, November 11). Freehold vs condo townhome in Vaughan: what changes for a new-home buyer. Summitly (Coldwell Banker Summit Realty, Brokerage). https://www.summitly.ca/guides/freehold-vs-condo-townhome-vaughan
Guide URLs never change. Section links are stable too.
Run the numbers
