What about listing a Parcel of Tied Land Condo homes in Ontario? Do you think a detached home that is a parcel of tied land condo should be listed as a Freehold or a Condo?
There is a condo declaration, condo fee, property management and a condo board. You cannot alter or landscape your own property outside without permission etc. Inside you can do what you want but if you want to add onto the house you need permission.
The question is really directed to the manner of listing this throughout Ontario. We have two systems, Stratus and ITSO, and it would appear they are handled differently.
From a strictly legal perspective, of course, there is a condominium involved. So if you were attempting to explain this arrangement to a client, you would focus on three separate aspects:
- Freehold land parcel,
- the condo parcel, and
- the fact that the two are “tied together”, they are inseparable.
These are all important and relevant issues.
However, when it comes to listing and advertising the property for sale, most of the time the POTL’s are less expensive and therefore generally trade at lower values than simple uncomplicated freehold parcels. This is a regional view.
That quick analysis, totally ignores the upscale gated communities in the States which have similar arrangements. They might have full time 24/7 security at the front entrance. No one is permitted entry without being screened. This extra privacy is worth money.
Now, we come back to the listing of a property in Ontario. It would appear that different boards may have different systems. Both basic systems appear to offer the “extra information” so that there should not be confusion about what is being purchased.
In both cases, it will be Form 111 from OREA which will be utilized. There is always the reference to the POTL whether the property is being advertised as freehold or condominium.
Where are you? What country are you in?
Actually, that should be a relatively simple, straightforward question. But, it might not be.
Let’s assume you are on the bridge from Niagara Falls, Canada to Niagara Falls, USA and as you cross, you come to a line marked on the bridge Canada/USA. Now, right at that very moment, you decide to have your picture taken and posted to social media: one foot in the USA and one foot in Canada. So, what country are you in? What laws apply to you? Just where are you?
The answer, which for 38 million Canadians is absolutely clear, is a little different for this one Canadian crossing into the USA.
So, is a POTL a Condo or Detached?
It’s a little of each. It’s a combination. As long as it’s correctly addressed so that there are no mistakes, then, a real estate agent should be fine.
You could list it in Stratus as a Freehold/Condo, or in ITSO as a Condo/Freehold and as long as it is clear that it is a POTL then there would be no misrepresentations about the real estate.
Brian Madigan LL.B., Broker