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Freehold Townhouse vs. Condo Townhouse: Understanding POTL Fees in Oakville
Friday Jan 09th, 2026
Quick Summary: What is a POTL Fee?
Oakville POTL fees explained: POTL stands for Parcel of Tied Land. It is a small monthly fee (typically $80–$200) attached to a freehold property. Unlike standard condo fees which cover the building's exterior and roof, a POTL fee generally only covers common elements like private road maintenance, snow removal, visitor parking, and garbage collection. You still own your home and the land it sits on, but you share the cost of the road with your neighbours.
Searching for townhomes for sale in Oakville can be confusing. You filter for "Freehold" to avoid monthly fees, yet you keep seeing listings with a "Maintenance Fee" of $120/month. What gives?
These are likely Freehold Townhomes with a POTL (Common Element Condominium). They are extremely common in newer Oakville developments like West Oak Trails and The Preserve. Here is exactly what you are buying.
You Own: The house, the land, the driveway, and the road frontage.
You Pay: $0 monthly fees.
Responsibility: You fix the roof, cut the grass, and shovel the snow. The Town of Oakville plows the street.
You Own: The interior of the unit (paint-to-paint).
You Pay: High fees ($400 - $800+).
Responsibility: The Condo Corp fixes the roof, windows, and maintains the grounds. You just live there.
You Own: The house and the land it sits on (Freehold).
You Pay: Low fees ($80 - $200).
Responsibility: You fix your own roof and windows. The fee pays for the private road snow removal and garbage pickup.
Why Do POTL Fees Exist?
In modern developments, builders often create "private enclaves" or laneways to maximize density and privacy. Because these roads are private property (not owned by the Town of Oakville), the municipality will not plow them or send garbage trucks down them.
Therefore, a "Common Elements Condominium Corporation" is formed solely to manage that road, the visitor parking, and maybe a small parkette. The POTL fee ensures the road gets cleared in winter and the lights stay on.
Head-to-Head Comparison
Before you make an offer, know what you are signing up for.
| Feature | Standard Freehold | Freehold w/ POTL | Standard Condo |
|---|---|---|---|
| Monthly Fee | $0 | $80 - $200 | $400 - $900+ |
| Road Plowing | Town of Oakville | Private Contractor (Your Fee) | Condo Corp |
| Roof/Windows | Owner Pays | Owner Pays | Condo Corp Pays |
| Landscaping | Owner | Owner (usually) | Condo Corp |
| Resale Value | Highest | High | Moderate |
💰 Mortgage Budget Tip
Lenders treat POTL fees like condo fees. They must be included in your debt service ratios (GDS/TDS). A $150 fee might slightly reduce your maximum purchasing power. Use our Mortgage Calculator to test scenarios.
🏡 The "Status Certificate"
Even though it's freehold, a POTL sale requires a Status Certificate review by a lawyer (costing ~$100-$150). This ensures the road corporation isn't being sued or running a deficit. Read our First Time Buyer Guide for more closing costs.
Is a POTL Townhouse Worth It?
Absolutely. They are often cheaper than standard freeholds but offer the same appreciation potential. For many first-time buyers, they are the perfect stepping stone. You get the pride of land ownership without the restrictive rules of a standard condo board.
If you are looking in areas like Bronte Creek or Joshua Creek, don't be scared off by a small monthly fee—it often means you have a quieter, private street.
Frequently Asked Questions
Do POTL fees go up every year?
Yes, usually slightly, to keep up with inflation for snow removal contracts and insurance. However, because they don't cover major building repairs (like roofs), they rarely see the massive spikes common in standard condos.
Can I opt out of the POTL fee?
No. The fee is tied to the title of your land (hence "Parcel of Tied Land"). You cannot sell the house without the tie to the common element corporation.
Are POTL fees tax deductible?
Generally, no, if it is your primary residence. If you are an investor renting the property out, the fee is an operating expense and can usually be deducted.
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