What is a POTL property?
Ever see a listing online listed as a POTL? If you have or have not it’s always good to know what exactly a POTL property is.
POTL stands for Parcel of Tied Land
What is it?
A Parcel of Tied Land (POTL) is a freehold property with a common element that is registered under the Condominium Act.
Examples of features that could be included in a common elements condominium are:
- Parking areas
- Community centres
- Garbage and Snow removal, Lawn care
An example of a POTL is a single family, detached dwelling with a roadway (common element).
What’s the difference between a Standard Condominium Corp and a Common Elements Condominium Corporation?
If you wish to purchase a unit in a standard condominium corporation, they will be required to pay a common element fee for the maintenance of hallways, elevators, etc.
Whereas, a common elements condominium corporation consists of common elements like roads or parks that are considered a parcel of tied land permanently attached to the property.
This type of corporation requires owners to fund their maintenance and repair of these common elements through monthly POTL fees.
How do you know if a property is a POTL?
You can refer to the legal description easily through your realtor and they’ll discover if a POTL is attached to the property.
The legal description will identify the common element and the Condominium Corporation Number.
Should a status certificate be obtained for a POTL?
Yes, always. The Status Certificate will provide critical information surrounding the POTL, including the common element fee that the homeowner will be required to pay.
This also means each POTL is unique and the monthly fee can vary.
How can a POTL effect a property?
It all depends on the status of the market (buyer vs. seller) however in low demand a POTL can sometimes be less appealing. In high demand (sellers market), POTLs are attractive.
Anything else I should know?
We take care of the rest for you. Obtaining said status certificate, reviewing it through your lawyer, getting all necessary information. And most importantly guiding you through the process. Oh! One last thing – a POTL is purchased through different forms than a regular Agreement of Purchase and Sale freehold or condo.