Hello fellow investors, hoping there is someone has some in depth knowledge of POTL's (Parcels of tied land) that they would be able to share. I do want to mention that I will be asking these questions of my lawyer tomorrow as well, but I think the more information I can gather, the better - I do have time to back out of the deal if it doesn't pass the sniff test.
To provide some background, this is a new build POTL townhome (in Ontario), and my concern is that the agreement has a clause that I may be subject to occupancy fees. I asked for that to be removed (I have purchased a POTL in the past and there was no such clause, so I know that does not need to be in the agreement). The issue is that builder seems firm on leaving that in. Any idea as to the reason why? I'm being told that the chances that it would ever happen are minute, but I have a hard time accepting that if they do not want to remove the clause.
Also, since only the common elements are part of a condo corporation, how is it possible that the freehold townhome could be subject to occupancy fees?
Lastly, the agreement also has some restrictions in place regarding what can and cannot be done with the townhome (most are reasonable and I do not take issue with e.g. no window A/C units), however, I do find it odd that they would be able to impose these rules on a freehold townhouse. I can assure everyone that this indeed is a POTL and not a condominium.
Any insight (and advice) would be much appreciated.
To provide some background, this is a new build POTL townhome (in Ontario), and my concern is that the agreement has a clause that I may be subject to occupancy fees. I asked for that to be removed (I have purchased a POTL in the past and there was no such clause, so I know that does not need to be in the agreement). The issue is that builder seems firm on leaving that in. Any idea as to the reason why? I'm being told that the chances that it would ever happen are minute, but I have a hard time accepting that if they do not want to remove the clause.
Also, since only the common elements are part of a condo corporation, how is it possible that the freehold townhome could be subject to occupancy fees?
Lastly, the agreement also has some restrictions in place regarding what can and cannot be done with the townhome (most are reasonable and I do not take issue with e.g. no window A/C units), however, I do find it odd that they would be able to impose these rules on a freehold townhouse. I can assure everyone that this indeed is a POTL and not a condominium.
Any insight (and advice) would be much appreciated.