A Parcel of Tied Land (POTL) is a type of land ownership in which a freehold property is legally tied to a shared interest in common elements, such as a private road, amenities, or green space. This setup is common in Common Elements Condominiums (CEC), where owners hold title to their individual lots but are required to contribute to the maintenance of shared facilities through a homeowners’ association or condominium corporation.
For example, in a freehold townhouse development with a private road, each homeowner owns their unit and lot but must pay fees for road maintenance, snow removal, and other communal expenses.
The Difference between a POTL and a Condo
A POTL (Parcel of Tied Land) and a condo are both types of property ownership, but they differ in structure and legal responsibilities.
POTL (Parcel of Tied Land)
- A freehold property (typically a townhouse or detached home) that is tied to a common-element condominium.
- Owners own their land and home but must pay fees for shared amenities (e.g., roads, visitor parking, snow removal).
- Common in private road developments where city services do not maintain shared areas.
Condo (Condominium)
- Ownership is limited to the unit itself, with shared ownership of the building’s common areas (e.g., hallways, elevators, amenities).
- Monthly maintenance fees cover common areas, and there may be stricter rules about modifications.
- Common in high-rises, mid-rises, and some townhome complexes.
In short, a POTL gives more ownership control than a condo but still includes shared responsibilities and fees.
Which One Should I Buy?
The choice between a POTL (Parcel of Tied Land) and a condo depends on your lifestyle, budget, and long-term plans. Here’s a breakdown to help you decide:
Buy a POTL if:
✔️ You want more control over your property (e.g., renovations, landscaping).
✔️ You prefer a freehold-style home (like a townhouse or detached home).
✔️ You don’t mind paying for shared elements like private roads and snow removal.
✔️ You want fewer condo-style restrictions (e.g., pet rules, rental limitations).
Buy a Condo if:
✔️ You prefer a lower-maintenance lifestyle (no lawn care, exterior maintenance).
✔️ You want amenities like a gym, pool, or concierge.
✔️ You’re comfortable with rules (e.g., noise restrictions, pet policies).
✔️ You like urban living, often with better affordability than freehold homes.
Other Considerations:
- Resale value: POTLs may appreciate more due to land ownership.
- Monthly costs: Condos have higher fees but cover more maintenance.
- Lifestyle: If you travel often or want a lock-and-leave home, condos are easier to manage.
Would you like help analyzing a specific property?