Real Estate Lingo or What Does POTL mean?
Wednesday Jul 04th, 2018Share
The real estate industry lingo is full of abbreviations and special vocabulary reading which for many uninformed is like reading a foreign language. I will try to periodically write about some abbreviations which are incomprehensible to many even if they were written in simple English. Just yesterday, I was showing my clients a seemingly freehold property that has a POTL with a specific monthly fees associated with it. And for many this is where confusion starts since a freehold is not commonly thought of as having maintenance fees, correct? Not really!
In Ontario, we have a number of different types of arrangements for condominiums. One of those arrangements is called a “common elements condominium,” where there is a Parcel of Tied Land (POTL). With this type of condominium, each owner typically owns a piece of land and the building on it, but also has a partial ownership in the common elements. These common elements can include parking areas, access roads, sidewalks, parks, playgrounds, trails, beach, docks, etc.
As in a traditional condominium, owning a POTL means you’re responsible for your share of the expenses related to the operation and maintenance of the common elements. And your use of the common elements or amenities is also shared with other owners.
Remember: your property in this condo is permanently “tied” to the land of the common elements condominium, meaning your property cannot be sold separately from its interest in the condo corporation.
Olesa Islamova, Real Estate Sales Representative | Realtor®