A POTL or Parcel of Tied Land is a shared piece of land which forms part of a common elements Common Elements Condominium (“CEC”) property. This is different from the Standard Condominium Plan as it has no individual units, only common elements.
When you purchase a property with a POTL, such as a home or townhome, you are buying a share in the CEC. The owner of the POTL cannot sell or mortgage the POTL without also selling or mortgaging its share in the CEC. The two interests cannot be severed and at the same time are essentially two separate properties. Examples of POTLs are shared parking spaces, marinas, golf courses, roadways, or parks.
Generally, the common elements of a CEC are more expensive to maintain than the common elements of a standard condominium and may attract higher monthly common expenses for the owners.
The POTL is sold through a specific OREA/TREB form. When purchasing a POTL, it is important to have a lawyer review the status certificate and related condominium documents so you can understand what you are buying into.
We will review and explain the status certificate to you at no additional cost if you close your purchase transaction with us. Please contact our office to schedule a status certificate review.
