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Summary: Before buying a condo in Ontario, weigh four things: whether to buy presale or resale, the status certificate (have your real estate lawyer review it), the building itself as an investment (amenities, reserve fund, and reputation), and rental eligibility if you might lease it out one day. A condo is a small piece of a larger building, so the building matters as much as the unit.
Condos appeal to a lot of buyers: little to no property maintenance and usually a lower purchase price than other property types. But buying one involves a few considerations unique to the property type. Here are the four to keep in mind as you search.
Should you buy a presale or resale condo?
A presale condo is a unit in a building that has not been built yet, common in cities like Toronto with many active construction projects. A resale condo is an existing unit already on the market. Each has clear trade-offs, so know what you are signing up for before you decide.
Presale condo | Resale condo | |
Price | Often below current market value | Current market price |
What you see | Renderings and floor plans only | The actual unit |
Selection | Wider choice of location and upgrades in the building | Whatever is listed |
Deposit | Held for the duration of construction | Standard deposit, held to closing |
Timing | Completion may be delayed | Move in on closing |
Financing | Lenders can be cautious on an unregistered condo | Financed like any resale property |
Presale offers a brand-new, unlived-in unit, more choice, and a warranty, but you buy partly on faith and your deposit is tied up while the building is finished. Resale gives certainty about exactly what you are getting.
Why should your lawyer review the status certificate?
Think of a condo status certificate as the equivalent of a home inspection for a detached house. It is a document the condo corporation produces that sets out the key facts about the building: the balance of the reserve fund, any building-wide repairs, any lawsuits against the corporation, and anything else that could affect residents.
Part of your real estate lawyer's job is to read the status certificate and flag any concerns before you are committed. It is one of the most important protections in a condo purchase, which is why it should never be skipped. For a fuller breakdown of what the document contains, see our guide on status certificates in Ontario.
How do you evaluate the building before buying?
Buying a condo means buying a small piece of a larger building, so treat the purchase as an investment in the whole community and ask whether it is worth it. A few things to check:
Amenities. During showings, look at the communal spaces, such as outdoor areas, pools, BBQ areas, and fitness rooms. Better amenities can be enough to sway a decision.
Financial health. The status certificate tells you the less visible parts, including the reserve fund and any planned repairs or legal issues.
Reputation. Search the building online before you commit; a resource like condoessentials.com collects condo building reviews.
Is the condo a good rental property?
A condo can be a strong rental investment, largely because of its low maintenance, but if you might lease it out, weigh what attracts tenants rather than only what suits you. A few pointers:
Favour locations people want to live, especially near subway stations and transit.
Unique units stand out — a loft or a unit with something special tends to draw more interest.
Smaller units, such as studios, have historically shown strong rental growth, though studios often turn over to short-term tenants who move once they can afford a bedroom.
There is more to weigh before becoming a landlord, so do your own research on what fits your strategy. Our post on 5 common mistakes made by rental property investors is a good place to start, and if you are still deciding on the property type, see condo versus house.
Frequently asked questions
What should you check before buying a condo?
Whether to buy presale or resale, the status certificate (reviewed by your lawyer), the building itself as an investment (amenities, reserve fund, reputation), and rental eligibility if you might lease it out. The building matters as much as the individual unit.
What is a condo status certificate?
It is a document the condo corporation produces setting out the building's key facts: the reserve fund balance, any building-wide repairs, any lawsuits, and other issues that could affect residents. Your lawyer reviews it for red flags before you are committed.
Is a presale or resale condo better?
Neither is universally better. Presale can cost less and offers a new unit with more choice, but you buy on renderings and your deposit is tied up. Resale gives certainty about the exact unit and a standard closing timeline.
Do you need a lawyer to buy a condo in Ontario?
Yes. A real estate lawyer is required to close, and on a condo they also review the status certificate to flag reserve-fund, repair, or legal concerns before you commit.
Are condos good rental investments?
They can be, largely thanks to low maintenance. Focus on what attracts tenants, such as transit access and unique units, and research the building and the numbers before deciding it fits your investment strategy.
About the author
Liam Seston is a content writer at Ownright. He writes about the Ontario home-buying and closing process to help buyers understand what to expect before they commit to a property.
At Ownright, we focus on Ontario real estate law and help condo buyers close with confidence, including reviewing the status certificate so you know what you are buying into. You can start your closing online or get in touch with any questions.
Important note: This article is not legal advice. No one should act, or refrain from acting, based solely on the information in this post or any linked materials without first seeking appropriate legal or professional advice.
