Important update for ALL condo owners buying OR selling in 2013

I dont post every update on every form as some are not likely to change your life. This one might. Understanding the importance of how it works when the unit is freehold but rests on a POTL (parcel of tied land) is important to know. Whether you are buying one OR in the process of selling a space like this, its critical to have a realtor who understands this process. One recent blog post I did discussed the importance of using the right representation vs someone who is not familiar with the building. The Watermark Lofts in the Upper Beach is a good example.

New Agreement Of Purchase and Sale Form for POTL's

December 19, 2012 -- OREA has developed a new Form to accommodate Common Element Condominiums.

A Common Element Condominium occurs when the dwelling is freehold but a parcel of land is tied to the condo in some way, e.g., roadway, golf course. This is commonly referred to as a POTL (parcel of tied land).

The following is an example of how the legal description would appear in the registry system:

{Part of lot 12, plan 69 T/W an undivided common interest in Rainy River common elements Condominium Corporation No. 1970}

The only real difference between the Agreement of Purchase and Sale Form 100 and this Agreement – POTL is Clause #28 which covers the common element portion. The main points being:

(a) Common Elements Condominium

  • Monthly common element fee

(b) Status Certificate and Management of Condominium

  • No special assessment being contemplated
  • No legal action pending
  • Status Certificate will be required

(c) No notices or special meetings have been planned with respect to:

  • Termination of condominium
  • Substantial alterations
  • Substantial changes in assets or liabilities of the Condominium Corporation
  • If such notices are received the Buyer has the option to declare the Agreement null and void

(d) Name of the Condominium Property Management

Via TREB 2012.

 

Paul Indrigo

Paul Indrigo

Sales Representative
CENTURY 21 Regal Realty Inc., Brokerage*
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