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What is POTL Fee?

When purchasing a townhouse in Canada, you may encounter the term POTL (Parcel of Tied Land), typically linked with a POTL Fee. Understanding this term is essential in deciding whether such a property fits your needs.

What is a Parcel of Tied Land (POTL)?

POTL refers to a freehold property tied to common elements maintained by a Common Elements Condominium Corporation (CEC). While the property itself is freehold, common elements (e.g., parks, sidewalks, parking lots) are shared, and homeowners must pay monthly fees to maintain these areas.

Common Elements & Fees

POTL fees contribute to:

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

These are generally lower than full condo fees, as POTL properties have fewer shared amenities.

Legal Implications of POTL Ownership

Since the property is tied to a CEC, owners cannot sell the property without transferring their interest in the common elements. Always consult a lawyer before making a decision.

Will POTL Fees Increase?

Yes, POTL fees can rise over time due to inflation or increased maintenance costs. It’s essential to review the status certificate for insights into the current and potential future fees.

Why Choose POTL?

If you prefer the independence of freehold ownership but want access to shared amenities, POTL homes might be ideal. However, ensure you consider the long-term financial commitments.

Final Thoughts

POTL properties offer a balance between freehold and condo living. Carefully review the details with your lawyer or real estate agent to ensure it meets your needs.