Condominiums - Beneficial Interest
 
A building is converted into a condominium by the execution and recording of a Master Deed and Declaration of Trust. Included within the Master Deed is an allocation of the beneficial interest assigned to each unit. In a condominium each unit owner owns his/her particular unit and owns a beneficial share in all the common areas and facilities. By statute the beneficial interest of each unit shall be the "approximate relation that the fair value of the units on the date of the master deed bears to the then aggregate fair value of all the units." Naturally, the total beneficial interest must equal 100% and the interests do not change as time goes on based on owner's improvements to their unit. Many factors are considered in determining value, the most obvious being square footage but also items such as roof rights, parking, garden area, view, etc.
 
The beneficial interest assigned to a unit is important because it determines a variety of matters such as the condominium fee, unit owner's portion of any special assessments, voting rights and insurance proceeds in the event of a casualty.
 
Craig Gilmartin
Gilmartin, MaGence, Camiel & Ross LLP
376 Boylston Street
Boston MA 02116
Tel: (617) 375-9000
Fax: (617) 375-5700
Email: cgilmartin@gmcrlaw.com
Web: www.gmcrlaw.com