What is a freehold strata? Understanding how it works

What is a freehold strata?

A freehold strata is a form of property ownership in which you own your individual strata lot outright under a freehold title, which gives you indefinite ownership. You also share ownership of, and responsibility for, the common property with the other owners through the strata corporation. This combines the permanence of freehold ownership with the shared community structure of a strata.
 

Freehold strata vs. typical strata unit

In a typical strata, such as a condo, your strata lot usually consists of the interior of a unit within a building, while the building structure and land are common property.

In many freehold strata, the strata lot is a parcel of land, and you may also own the home on that land. In both cases, you own your strata lot indefinitely and share ownership and responsibility for common property through the strata corporation.

However, freehold strata developments often provide more land ownership and a layout similar to detached or townhouse-style living.
 

Freehold vs. leasehold strata

The key difference between freehold and leasehold strata is that freehold ownership is indefinite, while leasehold ownership is limited to a fixed term.

In a freehold strata, you own your strata lot outright under a freehold title, with no expiration date. In a leasehold strata, you own the right to use and occupy the strata lot for the length of the lease, but the underlying land is owned by a separate party (such as the government, a First Nation, or a private entity), and the lease will eventually expire.

Both types can operate under a strata corporation with shared ownership of common property, but leasehold properties may be subject to additional restrictions, lease terms, and financing considerations, which can affect resale value and mortgage options.
 

Common property vs. limited common property

Not all shared property is the same. Common property is shared by all owners (like roads or amenities), while limited common property is assigned to specific lots (like driveways or patios). Even if you’re the only one using it, strata maintenance responsibilities may still be shared or defined by bylaws, so check who pays before assuming ownership.
 

Pros and cons of a freehold strata

Pros

• More ownership permanence than leasehold, since the title is not tied to a lease term.
   
• Shared maintenance for common assets (roads, landscaping, amenities), which can reduce individual burdens.
   
• Clear community standards through bylaws, which can help manage expectations in close-knit communities.

Cons

• Strata fees are typically required to pay for upkeep of shared infrastructure and services.
   
• Bylaw limits on things like renovations, short-term rentals, parking, and pets, depending on the community.

Strata fees and special levies

Freehold strata owners typically contribute to operating costs through strata fees. These funds pay for ongoing maintenance, utilities (where applicable), insurance, and contracted services. When operating funds aren’t enough for a major expense, the strata may use a special levy (subject to the law and the strata’s processes).
 

How often strata fees change

Strata fees aren’t fixed and typically change over time based on the community’s annual budget. Increases are often approved annually to keep up with inflation, insurance costs, and ongoing maintenance.

However, larger jumps can happen if costs rise quickly or if the strata hasn’t increased fees in years. Reviewing past budgets can show whether increases have been gradual and predictable or infrequent but significant. Learn more in our guide to avoiding strata fee increases.
 

Insurance responsibilities for owners

While strata corporations obtain property and liability insurance coverage for the strata corporation, owners are still typically responsible for insuring personal property, liability, and any gaps between the strata corporation’s policy and their own needs. Gaps in coverage are common, so reviewing both the strata policy and your own insurance is critical, particularly before closing on a purchase.
 

Questions to ask a strata council before buying

Before buying into a freehold strata, it’s worth asking the strata council a few direct questions to understand how the community is run, what costs may be coming, and where problems tend to arise.

Some of the most useful questions include:

• What are the major shared assets the strata is responsible for maintaining, such as roads, roofs, retaining walls, drainage, gates, or amenities?
   
• What repairs, replacements, or capital projects are planned in the next 12–24 months?
   
• What does the most recent depreciation report say about the condition of major assets, expected repair timelines, and future funding requirements, and has the strata been following its recommendations?
   
• Have there been any recent special levies, and are any being discussed?
   
• What does the strata insurance policy cover, and what is each owner expected to insure separately?
   
• Are there recurring maintenance issues or disputes noted in recent council or annual general meeting minutes?
   
• Are there any bylaw issues buyers commonly run into, such as restrictions on pets, rentals, parking, landscaping, or renovations?
   
• Who is responsible for maintaining fences, driveways, exterior building elements, and utility connections?
   
• Are strata fees expected to change in the near future?
   
• Is the Contingency Reserve Fund keeping pace with anticipated repairs and replacement costs?
   
• Are there any current legal claims, unresolved owner complaints, or significant rule enforcement issues in the community?

About FirstService Residential

FirstService Residential is British Columbia’s leading property management company, serving strata corporations, rental properties, and residential communities across the province. Our local teams handle maintenance, inspections, financial management, and communication to keep properties secure and well cared for.

We help owners and council members stay ahead of issues through consistent oversight and proactive planning. With 24/7 customer care, expert guidance, and access to trusted local vendors, we make it easier to protect property values and simplify community operations.


Contact FirstService Residential today to learn more.
 
This information is provided for general informational purposes only and is not intended to constitute, and should not be relied upon as, legal, regulatory, financial, or operational advice, or as a representation or guarantee of any specific services, capabilities, or outcomes. Property management needs, regulatory requirements, market conditions, and available services vary by jurisdiction, property type, and community. FirstService Residential provides services through locally based affiliates and associates, and services and results may vary by community, region, contractual terms, and applicable law.