10 Questions to Ask Before Buying a Pre-Construction Townhome

Townhomes sit between condos and detached houses, and they inherit complications from both. Before you commit to a pre-construction townhome, get clear answers to these ten questions.

1. Is it freehold, condo, or a POTL?

This is the single most important question. A freehold townhome means you own the land and the building outright, with no monthly condo fee. A condo townhome is a unit within a corporation, with fees and shared obligations. A POTL (parcel of tied land) is freehold but tied to a common-elements corporation with a mandatory fee.

Each has a different cost structure and a different resale audience. You can filter by building type in our pre-construction developments directory.

2. What does the monthly fee actually cover?

For condo and POTL townhomes, ask for a written breakdown. Common elements, landscaping, snow removal, private garbage collection and building insurance are typically included. Roofs and windows are sometimes excluded — and those are the expensive ones.

3. What is the projected fee at occupancy?

Pre-construction marketing materials often quote a low introductory fee. Ask what the fee is projected to be once the first-year budget is set and the reserve fund is funded.

4. Who maintains the exterior?

In a freehold townhome you maintain the roof, siding and driveway yourself. Confirm exactly where your responsibility ends and the common element begins.

5. How many parking spaces, and are they included?

Many townhomes include one space and offer a second at extra cost. For family buyers, a second space is often non-negotiable — confirm availability and price before you sign.

6. Is there a basement, and is it finished?

Some townhome designs include a finished basement; others leave it unfinished. This materially affects usable square footage and price per square foot.

7. What are the levies, and are they capped?

Development charges and education levies are often capped by the builder — but not always. A cap protects you from a large surprise at closing.

8. What is the deposit structure?

Townhome deposit schedules are usually staged like condo deposits, but the amounts differ. Map the dates against your own cash flow before committing.

9. Who is the builder, and what have they completed?

Townhome construction is less forgiving of poor workmanship than high-rise, because each unit is directly exposed to weather. Review the builder's completed communities in our developer directory.

10. What does resale look like here?

Townhomes appeal to families and to buyers stepping up from condos. That audience is smaller than the condo market's, which means resale can take longer — but it also means less competition from investor-owned units being dumped at the same time.

Get straight answers to all ten and you will be choosing between known quantities rather than assumptions.