The Master Deed: Creating a Condominium
Learn what must be in a condominium enabling or master deed under RA 4726, how it is registered, and the requirements for amending or revoking it.
Required Contents of the Master Deed
“The provisions of this Act shall apply to property divided or to be divided into condominiums only if there shall be recorded in the Register of Deeds of the province or city in which the property lies and duly annotated in the corresponding certificate of title of the land, if the latter had been patented or registered under either the Land Registration or Cadastral Acts, an enabling or master deed which shall contain, among others, the following:”
What This Means
The master deed (also called enabling deed) is the foundational document that legally creates a condominium. It must be recorded at the Register of Deeds and annotated on the land title. Without it, the Condominium Act does not apply to the property. The master deed must contain: land description, building description (stories, units, accessories), common area description, the nature of interest acquired, use restrictions, consent certificates from lien holders, survey and floor plans, and any alienation restrictions.
- Must be recorded at the Register of Deeds and annotated on the land title
- Without the master deed, the Condominium Act does not apply
- Required contents: land description, building description, common areas
- Must state the exact nature of interest buyers acquire
- Must include survey plan of land and diagrammatic floor plans
Real-World Scenario
A developer constructs a 20-story residential building and begins selling units with Contracts to Sell. The developer has not yet registered a master deed with the Register of Deeds because "it is still being prepared." Buyers receive CCTs.
Are the buyers' condominium interests valid under RA 4726?
Use Restrictions & Alienation Conditions
“Any reasonable restriction not contrary to law, morals or public policy regarding the right of any condominium owner to alienate or dispose of his condominium.”
What This Means
The master deed can include restrictions on a unit owner's right to sell, transfer, or dispose of their unit. but only if the restrictions are "reasonable" and "not contrary to law, morals or public policy." Common examples include right-of-first-refusal clauses (requiring the unit to be offered to other owners first), restrictions on short-term rentals (like Airbnb), and requirements for management body approval of buyers. However, outright prohibitions on sale would likely be unreasonable.
- Master deed can restrict alienation (sale/transfer) of units
- Restrictions must be "reasonable". absolute prohibitions are likely void
- Must not be contrary to law, morals, or public policy
- Common: right-of-first-refusal, buyer approval requirements
- These restrictions bind all subsequent owners, not just original buyers
Real-World Scenario
A luxury condominium's master deed states: "No unit shall be sold, leased, or transferred to any person without the prior written approval of the Condominium Corporation Board, which approval may be withheld in the Board's absolute discretion." An owner wants to sell but the Board repeatedly refuses approval without giving reasons.
Is this restriction enforceable?
Amending or Revoking the Master Deed
“The enabling or master deed may be amended or revoked upon registration of an instrument executed by the registered owner or owners of the property and consented to by all registered holders of any lien or encumbrance on the land or building or portion thereof. The term "registered owner" shall include the registered owners of condominiums in the project. Until registration of a revocation, the provisions of this Act shall continue to apply to such property.”
What This Means
Amending or revoking the master deed requires consent from ALL registered owners (including all individual unit owners) AND all registered lien holders (like banks with mortgages on units). This is an extremely high bar. effectively requiring unanimity among all stakeholders. Revocation would dissolve the condominium regime entirely, converting the property back to ordinary co-ownership. Until a revocation is registered, the Condominium Act continues to apply.
- Amendment requires consent of ALL registered owners
- "Registered owners" includes all individual unit owners. not just the developer
- ALL registered lien/encumbrance holders must also consent
- Revocation dissolves the condominium regime entirely
- The Condominium Act continues to apply until revocation is registered
Real-World Scenario
A developer wants to amend the master deed of a 100-unit condominium to convert the ground floor commercial area into additional residential units. 95 out of 100 unit owners agree. Five unit owners and one bank holding a mortgage on two units refuse to consent.
Can the developer proceed with the amendment?
Frequently Asked Questions
What is the master deed of a condominium?
The master deed (or enabling deed) is the foundational document that legally creates a condominium under RA 4726. It must be registered at the Register of Deeds and contains the land/building descriptions, common area descriptions, use restrictions, the nature of interest acquired, and floor plans. Without it, the Condominium Act does not apply to the property.
Can the master deed restrict me from selling my condo unit?
Only with "reasonable" restrictions that are "not contrary to law, morals or public policy" (Section 4(h)). Common restrictions include right-of-first-refusal clauses and Board approval requirements. However, Section 6(g) guarantees each owner's "absolute right to sell or dispose" of their unit, subject only to reasonable first-offer requirements.
Can the master deed be changed after units are sold?
Yes, but it requires the consent of ALL registered owners (including all unit owners) and ALL registered lien holders. This is effectively a unanimity requirement, making amendments extremely difficult once units are sold to multiple parties.