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What is a POTL Fee?

When purchasing a townhouse in Canada, you may encounter the term POTL (Parcel of Tied Land), typically associated with a POTL Fee. Understanding this term is essential to decide if such a property suits your needs.

What is a Parcel of Tied Land (POTL)?

A Parcel of Tied Land (POTL) refers to a freehold property linked to shared common elements maintained by a Common Elements Condominium Corporation (CEC). While the individual property itself is freehold, certain communal features—such as parks, sidewalks, or parking lots—are shared among owners. To maintain these common elements, homeowners must pay monthly POTL fees.

Common Elements and Fees

POTL fees typically cover the maintenance of shared amenities, such as:

• Park Maintenance
• Garbage Collection
• Street Cleaning
• Snow Removal

POTL fees are generally lower than traditional condominium fees because POTL properties often have fewer shared amenities.

Legal Implications of POTL Ownership

Since a POTL is tied to a CEC, the owner’s interest in the common elements is inseparable from the freehold property. This means you cannot sell your property without also transferring your share in the common elements. It’s crucial to consult a lawyer to understand the legal and financial implications before making a purchase.

Can POTL Fees Increase?

Yes, POTL fees can rise over time due to factors like inflation, increased maintenance costs, or unforeseen repairs. Reviewing the status certificate provided by the CEC can offer insights into current fees and any projected increases.

Why Choose a POTL Property?

POTL homes provide a balance between freehold ownership and shared amenities. They offer greater independence compared to condominiums while still providing access to well-maintained communal spaces. However, it’s essential to evaluate the long-term financial and legal commitments.

Final Thoughts

POTL properties offer a unique blend of freehold and condo-style living. Carefully review the property’s details with your lawyer or real estate agent to ensure it aligns with your lifestyle and financial goals.