POTL vs. Condo Fees: What’s the Difference and Why It Matters for Townhome Buyers

If you’ve been searching for a townhome, you’ve likely come across terms like POTL (Parcel of Tied Land) and condo fees, and wondered what they mean. You’re not alone. These terms often confuse even seasoned buyers, especially when the home looks like a freehold but comes with monthly fees.

So let’s break it down.

What is a POTL?

POTL stands for Parcel of Tied Land, a form of homeownership that’s becoming more common in low-rise communities, particularly with townhomes. When you buy a POTL home, you own both the home and the land it sits on — just like a traditional freehold.

However, you also share access to common elements—things like a private road, shared laneway, visitor parking, or a small parkette. Because the city doesn’t maintain these, homeowners pay a monthly maintenance fee to cover the upkeep.

These fees are usually modest and typically go toward:

• Snow removal and salting on private roads
• Garbage and recycling collection
• Landscaping or lighting in common areas
• General maintenance of shared spaces

You’re paying for the essentials — and only the essentials.

What about condo fees in a townhome community?

Townhome condos are structured a bit differently. While the homes may look similar to POTL or Freehold townhomes from the outside, the key difference is in what you’re responsible for — and what you’re not.

In most condominium townhome communities, you don’t own the land — you own the home itself, and everything else is shared. That often includes the roof, exterior walls, driveways, windows, and more.

Because of this, condo fees are higher. They typically cover:

• All exterior building maintenance (roof, siding, windows, etc.)
• Snow removal and landscaping
• Garbage collection
• Insurance on the building envelope
• Reserve fund contributions for long-term repairs

In short, condo fees take more responsibility off your plate — but you pay for that convenience.

Which option makes more sense?

It depends on how much control you want and how much maintenance you’re comfortable with. For many buyers, a POTL townhome offers the best balance: lower monthly costs, greater ownership of your property, and just enough shared services to make things easier.

The POTL advantage at Towns on Bayview

At Towns on Bayview, our move-in-ready POTL townhomes offer the feel of a freehold home with the convenience of shared maintenance, without the high fees of a typical townhome condo.

It’s a smart option for buyers who want to own the land, avoid big monthly costs, and still enjoy a beautifully maintained community. And best of all, these homes are available now — just waiting for you to make one your own.