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POTL (Parcel of Tied Land) properties blend freehold ownership with shared access to common elements such as private roads or shared utilities. According to the Condo Reference Guide, POTL properties can be identified by terms like “CECC,” “undivided interest in common elements,” or “POTL.”
Although owners hold the freehold land, they also share responsibility for the operating costs of the privately maintained areas. These fees differ from traditional condo fees; they cover items like snow removal, road maintenance, and shared systems, not building insurance or reserve funds.
Buyers often assume POTL homes are fully freehold, only to discover later that legal obligations exist through the CECC. For Realtors, reviewing the legal description and explaining the implications early prevents surprises during closing.
POTL properties can be appealing for clients wanting low-maintenance living without traditional condo rules, but they require careful explanation.
