What is the function of a "Condo" in real estate?

The function of a "Condo" in real estate primarily revolves around its governance structure, which is established through a master deed. A condominium, or condo, is a type of property ownership that allows individuals to own individual units within a larger building or complex while sharing ownership of common areas, such as hallways, pools, and gyms, with other residents.

The master deed is a critical document that outlines the rules and regulations of the condominium association, the boundaries of each unit, and the common areas. This deed is essential for defining the property’s overall governance and ensures that all owners understand their rights and responsibilities. It provides the legal framework for the operation of the condominium association, which manages the shared aspects of the property and enforces community rules that help maintain the value and livability of the condominium.

Other options refer to different aspects of property ownership or governance that do not specifically relate to the primary function of a condo in real estate. For instance, cooperative ownership is a distinct form of ownership separate from condominiums, and prohibitions on sales are generally not inherent in the condo structure. Additionally, while property taxation may involve legislative tools, such tools are not specific to condominiums themselves. Thus, the requirement of a master deed is