A condominium building has multiple individual units within the building that are individually owned.
When a developer plans to divide a parcel of land into condominium units, a master deed must be prepared and registered with the appropriate government agency in the jurisdiction where the land is located. This deed will indicate the division of the property into distinct units, as well as indicate where the common areas will be in the proposed development. As with all deeds, any restrictions on the use of the property are also usually stated on the master deed.
A condominium development is a building that has several individual subunits within the building that are individually owned. Common areas, along with key systems like heating and air, are jointly owned by the owners of the individual units. While each individual owner of a unit receives a deed to the unit from him, as a general rule a master deed must be filed for the overall development before the first individual unit is sold.
Like any other deed, a master deed will describe the property by both the legal description and the commonly known address. However, unlike other deeds, this action will explain how the property will be divided into individual units. For example, if the project has 100 separate units, the main script will reflect this.
In addition to designating how many separate units the condominium project will have, the deed also indicates where the common areas will be and legally grants ownership of those areas to individual owners. Common areas often include walkways, hallways, parking lots, as well as lawn areas, laundry facilities, and pool areas. These areas are generally maintained by the condominium community, which is made up of all the individual owners. In addition, the main systems, such as heating and air conditioning, are the responsibility of the condominium community. In most cases, individual owners must pay a monthly fee for the maintenance and upkeep of common areas.