Master Deed
Definition of "Master deed"
The term master deed is a deed filed by a condominium developer or converter to record all of the individual condominium units owned within a condominium development. For example, a condominium developer secured a piece of property for the purpose of developing a condominium complex. The developer then recorded a master deed showing the individual condominium units within the complex. The master deed also includes restrictions and covenants that are imposed on the individual unit owners.
The owner or developer must prepare the master deed before it is recorded with the responsible authorities (i.e. government office from the area’s jurisdiction). With the master deed, the developer has to portray how the individual units are divided and where the proposed development’s common areas are located. Like that the appropriate authorities become aware of what is considered an individual unit and what is a common area within the condominium. The master deed is also where the restrictions regarding the use of the property are specified.
What is a Master Deed in Real Estate?
Similar to other deeds, a master deed describes the property through both its legal definition and the address. However, contrary to other deeds, a master deed explains and underlines how the developer divided the property into individual units. Furthermore, on a master deed, it is specified where the common areas can be found within the development, condominium, or townhouse while also giving legal ownership of those areas to the individual unit owners. By common areas, we can understand grassy areas, parking lots, walkways, hallways, but also facilities like laundry rooms, pools, etc. The maintenance of these common areas falls under the responsibility of the condominium association that includes all the unit owners. The same happens with major systems like cooling and heating. These responsibilities often come in the form of monthly fees that cover maintenance and upkeep.
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Comments for Master Deed
I am trying to refinance my condo. There are only four units in our complex. My lending company says there are 12 units on the master deed and that influences the way they loan on the individual property. All the proper additional property has been sold at least 20 years ago. There is only four units left.
Jun 23, 2023 11:47:08Hello Donald!
Thank you for getting in touch with us!
Refinancing your condo is always a great idea to get a lower interest rate or change your loan term. However, there are cases when refinancing is almost impossible. For instance, if your condo qualifies as a fractional or segmented ownership project or belongs to units with split-ownership arrangements.
Every bank establishes its loan policy differently. But it might be a good idea to shop around and check whether other lenders can offer you more competitive terms.
Our safest bet would be for you to contact a licensed real estate attorney or mortgage specialist to see how a master deed can influence your condo refinancing plans.
Jun 30, 2023 08:35:08Can a Master Deed be in the name of an incorporation?
Mar 20, 2023 15:29:39Hello Cindy, thank you for reaching out to us!
The Master Deed, or Condominium Declaration, defines and governs the Condominium Association (similar to a homeowner association.) The collection of covenants determines the units and represents the percentage of ownership interests.
Mar 21, 2023 06:02:54The Master Deed articles may differ from state to state. For this reason, we recommend contacting a real estate attorney. With all that said, it is a common practice for incorporations, corporations, and companies to own to hold a master deed to a condo. Note that entity-owned condominium units may be banned from submitting a candidate for the board of directors as condominium ruling documents often limit board representative eligibility, and only actual unit owners can join.
How can I see Master Deed of a Townhouse Development?
Jul 08, 2021 10:09:29Hey Frandisco! Thank you for reaching out to us. While the master deed may not be the document most homeowners pay attention to when purchasing a condo or unit, it is the most important. What you have to be aware of is that while the master deed of the entire development should be made available to owners for examination, there is also the master deed of each individual unit that you should have received at the closing of the purchase. In case this did not happen, you have every right to request it from the HOA or the developer. In case they can not provide it for you the Town Hall should have a copy as it is a legal document. The tax assessor should also be able to help as they must have a copy of it. Hope this helps and best of luck!
Jul 08, 2021 12:02:13What is master deed
Mar 06, 2020 06:06:20Hello Smith! The master deed is also known as the condominium declaration or the declaration of condominium. This document is used by condominium developers to record projects and set what is considered part of the unit and what is “common area”. Also, the master deed includes a list of “rights and obligations” for the unit owners as well as a master floor plan.
Mar 31, 2020 12:51:43Does a Condo Master Deed have to be recognized by a municipality?
Apr 08, 2019 01:14:19Hi, Connie! Yes, the master deed must be recorded with the local registry of deeds. It's the only way to tell authorities what is considered common area and what is part of a unit or condo. Keep in mind that condos are also subject to property taxes later, so the assessor and the appraiser will need to know the gross living area of each condo in order to make the right calculations.
Apr 09, 2019 06:39:53Have a question or comment?
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