Freehold, Strata, Co-op & Land-Lease: What's the Difference?

Especially in 55+ communities, you'll run into ownership structures beyond a standard house purchase — and the differences aren't just paperwork. They genuinely change how you finance the purchase, what you're allowed to do with the property, and what happens at resale. Here's what each one actually means.

Freehold

This is what most people picture as normal home ownership: you own the building and the land it sits on outright, registered in your name at the Land Title Office. A detached rancher on its own lot is typically freehold. Financing works exactly as you'd expect — any conventional mortgage lender will finance a freehold purchase.

Strata (the most common condo/townhome structure)

In a strata property, you own your specific unit outright, plus a share of the building's common property (hallways, roof, grounds, amenities), governed by the Strata Property Act and the specific strata corporation's bylaws. You pay monthly strata fees that fund maintenance and a reserve fund for major future repairs. Like freehold, strata ownership is registered title — standard mortgage financing applies. Most condos, townhomes, and gated 55+ communities in the Kelowna area are structured this way.

Co-operative (co-op)

This is where things genuinely change. In a co-op, you don't own real property at all — you own a share in a corporation that owns the entire building or complex, and that share comes with a proprietary lease or occupancy agreement giving you the right to live in a specific unit. Because you're not registering title to real property, many conventional mortgage lenders won't finance a co-op purchase the same way — financing is often more limited, sometimes requiring specific credit unions or a larger cash down payment. Co-op boards also often have more discretion to approve or reject a prospective buyer than a strata ever could.

Land-lease

Common in manufactured home communities and some purpose-built 55+ developments (Solstice at Tower Ranch is a local example), land-lease means you own your home outright, but you lease the land underneath it — often on a long-term lease (frequently around 99 years for newer developments, though terms vary). Financing a land-lease home is different from a standard mortgage; not every lender treats it identically to freehold or strata, and resale value is tied partly to how much term remains on the lease. Ask specifically about the remaining lease term and renewal terms before buying.

A quick comparison

• Freehold: own the unit and the land. Standard mortgage financing. Most flexibility.
• Strata: own the unit outright, share ownership of common property. Standard mortgage financing. Monthly strata fees.
• Co-op: own a share in a corporation, not real property directly. Non-standard, more limited financing. Board approval often required for buyers.
• Land-lease: own the home, lease the land. Non-standard financing. Resale tied partly to remaining lease term.

The one thing to always do

Before you make an offer on any property — especially in a 55+ community, where these structures show up more often than in typical housing — ask directly which of these four applies, and if it's not straightforward freehold or strata, talk to your lender before you're emotionally attached to the unit. It's a five-minute question that can save weeks of frustration later.