A Parcel of Tied Land (POTL)

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WHAT IS A PARCEL OF TIED LAND (POTL)?

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
• Roadways
• Sidewalks
• Parks
• Playgrounds
• Trails
• Community centers

An example of a POTL is a single-family, detached dwelling with a roadway (common element).

WHAT IS THE DIFFERENCE BETWEEN A STANDARD CONDOMINIUM CORPORATION AND A COMMON ELEMENTS CONDOMINIUM CORPORATION?

If you wish to purchase a unit in a standard condominium corporation, you 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 THERE IS A POTL ATTACHED TO THE PROPERTY?

You can refer to the legal description and discover if a POTL is attached to the property.

The legal description will identify the common element and the Condominium Corporation Number.

See below to familiarize yourself with how a legal description that contains a POTL will appear:

WHY SHOULD YOU AS THE SELLER OBTAIN A STATUS CERTIFICATE?

A Status Certificate should also be obtained for you as a buyer.

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.

Part of Lot 12, Plan 69, T/W an undivided common interest in Rainy River, Common Elements Condominium Corporation No. 1970.

HOW CAN A POTL AFFECT YOU?

As a buyer, you have your responsibility of sharing the expenses related to the operation and maintenance of common elements.

You must be aware that the property cannot be sold separately from the common element as described in the Status Certificate.

Lastly, to be fair to all consumers (buyers and sellers), a property with a POTL should be advertised as detached with a condominium component.

(Courtesy of TRREB’s article “Best Practices: A Parcel of Tied Land (POTL)”)