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.
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.