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Cottage, In modern usage, is a dwelling, typically in a rural, or semi-rural location (although there are cottage-style dwellings in cities).
In the UK, the term cottage tends to denote a rurally or village located one and a half storey property, where on the second (upstairs floor) one has to walk into the eaves in order to look through the windows, which are generally located in dormers.
This sometimes means that the eave timbers intrude into the actual living space, and quite often, especially in recent renovations, the relevant timbers (purlins, rafters, posts, etc) can be exposed enhancing the cottage experience. However, in most other settings, the term "cottage" denotes a small, often cozy dwelling, and small size is integral to the description, but in other places such as Canada, the term exists with no connotation of size at all.
In Canada, the term "cottage" usually refers to a vacation/summer home, often located near a body of water. Although this is more commonly called a "cabin" in Western Canada, Newfoundland and Labrador, a "chalet" in Quebec, and a camp in Northern Ontario ... more on Wikipedia