What is POTL Fee
What is a POTL property?
A POTL is simply a Parcel Of Tied Land. Sometimes, builders come with such dwellings which are common element condominiums. There is a small POTL fee associated with these units. This fee may increase with dues course of time.
This fee is similar to the condo maintenance fee to be paid monthly to CEC, to maintain the common areas, such as:
2. Visitors Parking
3. Street Maintenance
4. Garbage Removal
5. Fall Cleaning
6. Snow Removal.
7. Side Walks ..etc.
These types of POTL townhouses are freehold townhouses but are different from the typical condo townhouses. The latter have more common elements areas, like concierge, Library, Spa, Swimming pools, Fitness center, Card Room, Billiards Room, Tennis Courts, Party Room, etc., and therefore have more fee as well. To take care of all these, funds are needed so that timely repairs are carried out.
As a buyer, one must know that this type of property is permanently “tied” to the land of the common elements condominium, meaning the property cannot be sold separately from its interest in the condo corporation
So when buying a POTL freehold townhouse, always check your needs, affordability and talk to professionals.
Can POTL Increase in the Future?
Yes, It can. Like any other condo townhouse or a high-rise condominium, over the period of time, it does increase, depending upon the needs of CEC, Common Elements Corporation. All condo corporations need funds to maintain the common areas. So it’s need-based.
To summarize, the POTL townhouse is a freehold property with a common element that is registered under the Condominium Act.