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                                                       PRINTER'S NO. 608

THE GENERAL ASSEMBLY OF PENNSYLVANIA


HOUSE BILL

No. 538 Session of 2007


        INTRODUCED BY HICKERNELL, BOYD, CALTAGIRONE, CAPPELLI, CUTLER,
           DENLINGER, GEIST, GINGRICH, MUSTIO, REICHLEY, SCHRODER, TRUE
           AND YOUNGBLOOD, MARCH 6, 2007

        REFERRED TO COMMITTEE ON URBAN AFFAIRS, MARCH 6, 2007

                                     AN ACT

     1  Amending Title 68 (Real and Personal Property) of the
     2     Pennsylvania Consolidated Statutes, providing for enforcement
     3     of violation of condominium, cooperative and planned
     4     community provisions; consolidating provisions applicable to
     5     certain condominiums under the former Unit Property Act; and
     6     making a related repeal.

     7     The General Assembly of the Commonwealth of Pennsylvania
     8  hereby enacts as follows:
     9     Section 1.  Title 68 of the Pennsylvania Consolidated
    10  Statutes is amended by adding a section to read:
    11  § 3114.  Enforcement through Unfair Trade Practices and Consumer
    12             Protection Law.
    13     Notwithstanding section 3113(b) (relating to remedies to be
    14  liberally administered), a violation of this subpart shall
    15  constitute an unfair trade practice as defined under the act of
    16  December 17, 1968 (P.L.1224, No.387), known as the Unfair Trade
    17  Practices and Consumer Protection Law, shall be deemed unlawful
    18  and may be enforced by the Attorney General.
    19     Section 2.  Title 68 is amended by adding a chapter to read:


     1                             CHAPTER 35
     2                       PRE-1980 CONDOMINIUMS
     3  Subchapter
     4     A.  Preliminary Provisions
     5     B.  General Provisions
     6     C.  Administrative Provisions
     7     D.  Declarations, Reservations of Charges Under Declaration,
     8         Conveyances, Mortgages and Leases
     9     E.  Recording
    10     F.  Removal of Property from this Chapter
    11     G.  Assessments, Taxation and Liens
    12     H.  Miscellaneous Provisions
    13                            SUBCHAPTER A
    14                       PRELIMINARY PROVISIONS
    15  3501.  Scope of chapter.
    16  3502.  Definitions.
    17  3503.  Applicability.
    18  § 3501.  Scope of chapter.
    19     This chapter applies to condominiums created prior to October
    20  29, 1980, that were subject to the former act of July 3, 1963
    21  (P.L.196, No.117), known as the Unit Property Act.
    22  § 3502.  Definitions.
    23     The following words and phrases as used in this chapter shall
    24  have the meanings given to them in this section, unless the
    25  context clearly indicates otherwise:
    26     "Building."  A multiunit building or buildings or complex
    27  thereof, whether in vertical or horizontal arrangement, as well
    28  as other improvements comprising a part of the property and used
    29  or intended for use for residential, commercial or industrial
    30  purposes or for any other lawful purpose or for any combination
    20070H0538B0608                  - 2 -     

     1  of such uses.
     2     "Code of regulations."  Such governing regulations as are
     3  adopted pursuant to this chapter for the regulation and
     4  management of property, including such amendments as may be
     5  adopted from time to time.
     6     "Common elements."  The term includes:
     7         (1)  Land on which a building is located and portions of
     8     a building which are not included in a unit.
     9         (2)  Foundations, structural parts, supports, main walls,
    10     roofs, basements, halls, corridors, lobbies, stairways and
    11     entrances and exits of a building.
    12         (3)  Yards, parking areas and driveways.
    13         (4)  Portions of land and building used exclusively for
    14     the management, operation or maintenance of common elements.
    15         (5)  Installations of all central services and utilities.
    16         (6)  All apparatus and installations existing for common
    17     use.
    18         (7)  All other elements of a building necessary or
    19     convenient to its existence, management, operation,
    20     maintenance and safety or normally in common use.
    21         (8)  Such facilities as are designated in a declaration
    22     as common elements.
    23     "Common expenses."  The term includes:
    24         (1)  Expenses of administration, maintenance, repair and
    25     replacement of common elements.
    26         (2)  Expenses agreed upon as common by all unit owners.
    27         (3)  Expenses declared common by provisions of this
    28     chapter or by a declaration or code of regulations.
    29     "Council."  A board of natural individuals of the number
    30  stated in a code of regulations who:
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     1         (1)  Are residents of this Commonwealth.
     2         (2)  Need not be unit owners.
     3         (3)  Manage the business, operation and affairs of the
     4     property on behalf of the unit owners and in compliance with
     5     and subject to this chapter.
     6     "Declaration."  The instrument by which an owner of property
     7  submits it to this chapter.
     8     "Declaration plan."  A survey of property prepared in
     9  accordance with section 3542 (relating to declaration plan).
    10     "Majority" or "majority of the unit owners."  The owners of
    11  more than 50% in the aggregate in interest of the undivided
    12  ownership of common elements as specified in a declaration.
    13     "Person."  A natural individual, corporation, partnership,
    14  association, trustee or other legal entity.
    15     "Property."  The term includes the land, the building, all
    16  improvements thereon, all owned in fee simple, and all
    17  easements, rights and appurtenances belonging thereto which have
    18  been or are intended to be subject to this chapter.
    19     "Recorded."  Action whereby an instrument has been duly
    20  entered of record in the office of the recorder of deeds or
    21  department of records of the county in which property is
    22  situate.
    23     "Recorder."  The recorder of deeds or commissioner of records
    24  of the county in which property is situate.
    25     "Revocation."  An instrument signed by all unit owners and by
    26  all holders of liens against the units by which property is
    27  removed from this chapter.
    28     "Unit."  A part of property designed or intended for any type
    29  of independent use, which has a direct exit to:
    30         (1)  a public street or way;
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     1         (2)  a common element or common elements leading to a
     2     public street or way; or
     3         (3)  an easement or right-of-way leading to a public
     4     street or way,
     5  and includes the proportionate undivided interest in the common
     6  elements, which is assigned to the unit in the declaration or
     7  any amendments.
     8     "Unit designation."  The number, letter or combination of
     9  numbers or letters designating a unit in a declaration plan.
    10     "Unit owner."  The person or persons owning a unit in fee
    11  simple.
    12  § 3503.  Applicability.
    13     This chapter shall be applicable only to real property, the
    14  sole owner or all the owners of which submit the same to the
    15  provisions of this chapter or submitted to the former act of
    16  July 3, 1963 (P.L.196, No.117), known as the Unit Property Act,
    17  by a duly recorded declaration.
    18                            SUBCHAPTER B
    19                         GENERAL PROVISIONS
    20  Sec.
    21  3511.  Status of units and ownership.
    22  3512.  Common elements.
    23  3513.  Invalidity of contrary agreements.
    24  § 3511.  Status of units and ownership.
    25     Each unit, together with its proportionate undivided interest
    26  in the common elements, is for all purposes real property and
    27  the ownership of each unit, together with its proportionate
    28  undivided interest in the common elements, is for all purposes
    29  the ownership of real property.
    30  § 3512.  Common elements.
    20070H0538B0608                  - 5 -     

     1     The percentage of undivided interest in the common elements
     2  assigned to each unit shall be set forth in the declaration, and
     3  such percentage shall not be altered except by recording an
     4  amended declaration duly executed by all of the unit owners
     5  affected. The undivided interest in the common elements may not
     6  be separated from the unit to which such interest pertains and
     7  shall be deemed to be conveyed, leased or encumbered with the
     8  unit even though such interest is not expressly referred to or
     9  described in the deed, lease, mortgage or other instrument. The
    10  common elements shall remain undivided, and no owner may exempt
    11  himself from liability with respect to the common expenses by
    12  waiver of the enjoyment of the right to use any of the common
    13  elements or by the abandonment of his unit or otherwise, and no
    14  action for partition or division of any part of the common
    15  elements shall be permitted except as provided in section 3582
    16  (relating to repair or reconstruction). Each unit owner or
    17  lessee may use the common elements in accordance with the
    18  purpose for which they are intended, without hindering or
    19  encroaching upon the lawful rights of the other unit owners. The
    20  maintenance and repair of the common elements and the making of
    21  any additions or improvements to the common elements shall be
    22  carried out only as provided in the code of regulations.
    23  § 3513.  Invalidity of contrary agreements.
    24     Any agreement contrary to this chapter shall be void and of
    25  no effect.
    26                            SUBCHAPTER C
    27                     ADMINISTRATIVE PROVISIONS
    28  Sec.
    29  3521.  Code of regulations.
    30  3522.  Adoption, amendment, etc., of code of regulations.
    20070H0538B0608                  - 6 -     

     1  3523.  Contents of code of regulations.
     2  3524.  Compliance with code of regulations, administrative
     3         provisions, covenants, etc.
     4  3525.  Noncompliance with code of regulations, administrative
     5         provisions, covenants, etc.
     6  3526.  Duties of council.
     7  3527.  Powers of council.
     8  3528.  Work on common elements.
     9  3529.  Certain work prohibited.
    10  3530.  Easements for work.
    11  3531.  Common profits and expenses.
    12  3532.  Voting by unit owners.
    13  3533.  Books of receipts and expenditures and availability for
    14         examination.
    15  § 3521.  Code of regulations.
    16     The administration of every property shall be governed by a
    17  code of regulations, a true and correct copy of which, and all
    18  adopted amendments of which, shall be recorded.
    19  § 3522.  Adoption, amendment, etc., of code of regulations.
    20     The first members of the council shall establish and adopt
    21  the original code of regulations. Thereafter, no amendment or
    22  change of the code of regulations shall be effective unless it
    23  is adopted at a meeting of the unit owners by the affirmative
    24  vote of at least those unit owners who represent a majority of
    25  the votes entitled to be cast at that meeting.
    26  § 3523.  Contents of code of regulations.
    27     The code of regulations shall provide for at least the
    28  following and may include other lawful provisions:
    29         (1)  Identification of the property by reference to the
    30     place of record of the declaration and the declaration plan.
    20070H0538B0608                  - 7 -     

     1         (2)  The method of calling meetings of unit owners and
     2     meetings of the council.
     3         (3)  The number of unit owners and the number of members
     4     of council which shall constitute a quorum for the
     5     transaction of business.
     6         (4)  The number and qualification of members of council,
     7     the duration of the term of such members and the method of
     8     filling vacancies.
     9         (5)  The annual election by the council of a president,
    10     secretary, treasurer and any other officers which the code of
    11     regulations may specify.
    12         (6)  The duties of each officer, the compensation and
    13     removal of officers and the method of filling vacancies.
    14         (7)  Maintenance, repair and replacement of the common
    15     elements and payment of the cost thereof.
    16         (8)  The manner of collecting common expenses from unit
    17     owners.
    18         (9)  The method of adopting and amending rules governing
    19     the details of the use and operation of the property and the
    20     use of the common elements.
    21  § 3524.  Compliance with code of regulations, administrative
    22             provisions, covenants, etc.
    23     Each unit owner shall comply with the code of regulations and
    24  with such rules governing the details of the use and operation
    25  of the property and the use of the common elements as may be in
    26  effect from time to time and with the covenants, conditions and
    27  restrictions set forth in the declaration or in the deed to his
    28  unit or in the declaration plan.
    29  § 3525.  Noncompliance with code of regulations, administrative
    30             provisions, covenants, etc.
    20070H0538B0608                  - 8 -     

     1     Failure to comply with the code of regulations and with such
     2  rules governing the details of the use and operation of the
     3  property and the use of the common elements as may be in effect
     4  from time to time and with the covenants, conditions and
     5  restrictions set forth in the declaration or in deeds of units
     6  or in the declaration plan shall be grounds for an action for
     7  the recovery of damages or for injunctive relief, or both,
     8  maintainable by any member of the council on behalf of the
     9  council or the unit owners or, in a proper case, by an aggrieved
    10  unit owner or by any person who holds a mortgage lien upon a
    11  unit and is aggrieved by any such noncompliance.
    12  § 3526.  Duties of council.
    13     The duties of the council shall include the following:
    14         (1)  The maintenance, repair and replacement of the
    15     common elements.
    16         (2)  The assessment and collection of funds from unit
    17     owners for common expenses and the payment of such common
    18     expenses.
    19         (3)  The promulgation, distribution and enforcement of
    20     rules governing the details of the use and operation of the
    21     property and the use of the common elements, subject to the
    22     right of a majority of the unit owners to change any such
    23     rules.
    24         (4)  Any other duties which may be set forth in the
    25     declaration or code of regulations.
    26  § 3527.  Powers of council.
    27     Subject to the limitations and restrictions contained in this
    28  chapter, the declaration and the code of regulations, the
    29  council shall have, on behalf of the unit owners:
    30         (1)  The power to manage the business, operation and
    20070H0538B0608                  - 9 -     

     1     affairs of the property and for such purposes to engage
     2     employees and appoint agents and define their duties and fix
     3     their compensation, enter into contracts and other written
     4     instruments or documents and authorize the execution of the
     5     contracts and other written instruments or documents by
     6     officers elected by the council.
     7         (2)  Such incidental powers as may be appropriate to the
     8     performance of their duties.
     9  § 3528.  Work on common elements.
    10     The maintenance, repair and replacement of the common
    11  elements and the making of improvements or additions to the
    12  common elements shall be carried on only as provided in the code
    13  of regulations.
    14  § 3529.  Certain work prohibited.
    15     No unit owner shall do any work which would jeopardize the
    16  soundness or safety of the property or impair any easement or
    17  hereditament without the unanimous consent of the unit owners
    18  affected by the work.
    19  § 3530.  Easements for work.
    20     The council shall have an easement to enter any unit to
    21  maintain, repair or replace the common elements, as well as to
    22  make repairs to units if such repairs are reasonably necessary
    23  for public safety or to prevent damage to other units or to the
    24  common elements.
    25  § 3531.  Common profits and expenses.
    26     The common profits of the property shall be distributed among
    27  and the common expenses shall be charged to the unit owners
    28  according to the percentage of the undivided interest of each in
    29  the common elements as set forth in the declaration and any
    30  amendments.
    20070H0538B0608                 - 10 -     

     1  § 3532.  Voting by unit owners.
     2     At any meeting of unit owners, each unit owner shall be
     3  entitled to the same number of votes as the percentage of
     4  ownership in the common elements assigned to his unit in the
     5  declaration and any amendments.
     6  § 3533.  Books of receipts and expenditures and availability for
     7             examination.
     8     The treasurer shall keep detailed records of all receipts and
     9  expenditures, including expenditures affecting the common
    10  elements, specifying and itemizing the maintenance, repair and
    11  replacement expenses of the common elements and any other
    12  expenses incurred. The records shall be available for
    13  examination by the unit owners during regular business hours. In
    14  accordance with the actions of the council assessing common
    15  expenses against the units and unit owners, the treasurer shall
    16  keep an accurate record of such assessments and of the payment
    17  of assessments by each unit owner.
    18                            SUBCHAPTER D
    19      DECLARATIONS, RESERVATIONS OF CHARGES UNDER DECLARATION,
    20                 CONVEYANCES, MORTGAGES AND LEASES
    21  Sec.
    22  3541.  Contents of declaration.
    23  3542.  Declaration plan.
    24  3543.  Contents of deeds of units.
    25  3544.  Mortgages and other liens of record affecting property
    26         at time of first conveyance of each unit.
    27  3545.  Sales, conveyances or leases of or liens upon
    28         separate units.
    29  § 3541.  Contents of declaration.
    30     (a)  General rule.--A declaration shall contain the
    20070H0538B0608                 - 11 -     

     1  following:
     2         (1)  A reference to this chapter and an expression of the
     3     intention to submit the property to this chapter.
     4         (2)  A description of the land and building.
     5         (3)  The name by which the property will be known.
     6         (4)  A statement that the property is to consist of units
     7     and common elements as shown in a declaration plan.
     8         (5)  A description of the common elements and the
     9     proportionate undivided interest, expressed as a percentage,
    10     assigned to each unit, which percentages shall aggregate
    11     100%.
    12         (6)  A statement that the proportionate undivided
    13     interest in the common elements may be altered by the
    14     recording of an amendment duly executed by all unit owners
    15     affected by the amendment.
    16         (7)  A statement of the purposes or uses for which each
    17     unit is intended and the restrictions, if any, as to use.
    18         (8)  The names of the first members of the council.
    19         (9)  Any further details in connection with the property
    20     which the party or parties executing the declaration may deem
    21     appropriate.
    22     (b)  Construction.--Any reference in the declaration to the
    23  former act of July 3, 1963 (P.L.196, No.117), known as the Unit
    24  Property Act, shall be deemed a reference to this chapter or
    25  relevant provisions of this chapter.
    26  § 3542.  Declaration plan.
    27     The declaration plan shall bear the verified statement of a
    28  registered architect or licensed professional engineer
    29  certifying that the declaration plan fully and accurately:
    30         (1)  Shows the property, the location of the building
    20070H0538B0608                 - 12 -     

     1     thereon, the building and the layout of the floors of the
     2     building, including the units and the common elements.
     3         (2)  Sets forth the name by which the property will be
     4     known and the unit designation for each unit in the property.
     5  § 3543.  Contents of deeds of units.
     6     Deeds of units shall include the following:
     7         (1)  The name by which the property is identified in the
     8     declaration plan and the name of the political subdivision
     9     and the ward, if any, and the name of the county in which the
    10     building is situate, together with a reference to the
    11     declaration and the declaration plan, including reference to
    12     the place where both instruments and any amendments are
    13     recorded.
    14         (2)  The unit designation of the unit in the declaration
    15     plan and any other data necessary for its proper
    16     identification.
    17         (3)  A reference to the last unit deed if the unit was
    18     previously conveyed.
    19         (4)  The proportionate undivided interest, expressed as a
    20     percentage, in the common elements which is assigned to the
    21     unit in the declaration and any amendments thereof.
    22         (5)  In addition to paragraphs (1) through (4), the first
    23     deed conveying each unit shall contain the following specific
    24     provision:
    25         The grantee, for and on behalf of the grantee and the
    26         grantee's heirs, personal representatives, successors and
    27         assigns, by the acceptance of this deed covenants and
    28         agrees to pay such charges for the maintenance of,
    29         repairs to, replacement of and expenses in connection
    30         with the common elements as may be assessed from time to
    20070H0538B0608                 - 13 -     

     1         time by the council in accordance with 68 Pa.C.S. Ch. 35
     2         (relating to pre-1980 condominiums) and further covenants
     3         and agrees that the unit conveyed by this deed shall be
     4         subject to a charge for all amounts so assessed and that,
     5         except insofar as 68 Pa.C.S. §§ 3575 (relating to unpaid
     6         assessments at time of execution sale against a unit) and
     7         3576 (relating to unpaid assessments at time of voluntary
     8         sale of a unit) may relieve a subsequent unit owner of
     9         liability for prior unpaid assessments, this covenant
    10         shall run with and bind the land or unit hereby conveyed
    11         and all subsequent owners thereof.
    12         (6)  Any further details which the grantor and grantee
    13     may deem appropriate and which are consistent with the
    14     declaration, the code of regulations, the declaration plan
    15     and this chapter.
    16  § 3544.  Mortgages and other liens of record affecting property
    17             at time of first conveyance of each unit.
    18     At the time of the first conveyance of each unit following
    19  the recording of the original declaration, every mortgage and
    20  other lien of record affecting the entire building or property
    21  or a greater portion thereof than the unit being conveyed shall
    22  be paid and satisfied of record, or the unit being conveyed
    23  shall be released therefrom by partial release duly recorded.
    24  § 3545.  Sales, conveyances or leases of or liens upon separate
    25             units.
    26     Units may be sold, conveyed, mortgaged, leased or otherwise
    27  dealt with in the same manner as like dealings are conducted
    28  with respect to real property and interests in the real
    29  property. Every written instrument dealing with a unit shall
    30  specifically set forth the name by which the property is
    20070H0538B0608                 - 14 -     

     1  identified and the unit designation identifying the unit
     2  involved.
     3                            SUBCHAPTER E
     4                             RECORDING
     5  Sec.
     6  3551.  Instruments recordable.
     7  3552.  Recording a prerequisite to effectiveness of certain
     8         instruments.
     9  3553.  Place of recording.
    10  3554.  Indexing by recording officer.
    11  3555.  Recording fees.
    12  § 3551.  Instruments recordable.
    13     All instruments relating to the property or any unit,
    14  including the instruments provided for in this chapter, shall be
    15  entitled to be recorded, provided that they are acknowledged or
    16  proved in the manner provided by law.
    17  § 3552.  Recording a prerequisite to effectiveness of certain
    18             instruments.
    19     No declaration, declaration plan or code of regulations or
    20  any amendments shall be effective until duly recorded.
    21  § 3553.  Place of recording.
    22     The recorder shall record declarations, deeds of units, codes
    23  of regulations and revocations in the same records as are
    24  maintained for the recording of deeds of real property.
    25  Mortgages relating to units shall be recorded in the same
    26  records as are maintained by the recorder for the recording of
    27  real estate mortgages. Declaration plans, and any and all
    28  amendments, shall be recorded in the same records as are
    29  maintained for the recording of subdivision plans.
    30  § 3554.  Indexing by recording officer.
    20070H0538B0608                 - 15 -     

     1     The recorder shall index each declaration against the maker
     2  of the declaration as the grantor and the name by which the
     3  property is identified in the declaration as the grantee. The
     4  recorder shall index each declaration plan and code of
     5  regulations and any revocation in the name by which the property
     6  is identified therein in both the grantor index and the grantee
     7  index. The recorder shall index each unit deed and mortgage and
     8  lease covering a unit in the same manner as like instruments are
     9  indexed.
    10  § 3555.  Recording fees.
    11     The recorder shall be entitled to charge the same fees for
    12  recording instruments which are recordable under this chapter as
    13  the recorder is entitled to charge for like services with
    14  respect to the recording of instruments.
    15                            SUBCHAPTER F
    16               REMOVAL OF PROPERTY FROM THIS CHAPTER
    17  Sec.
    18  3561.  Removal.
    19  3562.  Effect of removal.
    20  3563.  Resubmission.
    21  § 3561.  Removal.
    22     Property may be removed from this chapter by a revocation
    23  expressing the intention to remove property previously made
    24  subject to this chapter. No revocation shall be effective unless
    25  it is executed by all of the unit owners and by the holders of
    26  all mortgages, judgments or other liens affecting the units and
    27  is duly recorded.
    28  § 3562.  Effect of removal.
    29     When property subject to this chapter has been removed as
    30  provided in section 3561 (relating to removal), the former unit
    20070H0538B0608                 - 16 -     

     1  owners shall, at the time such removal becomes effective, become
     2  tenants in common of the property. The undivided interest in the
     3  property owned in common which shall appertain to each unit
     4  owner at the time of removal shall be the percentage of
     5  undivided interest previously owned by the unit owner in the
     6  common elements.
     7  § 3563.  Resubmission.
     8     The removal of property from the provisions of this chapter
     9  shall not preclude such property from being resubmitted to this
    10  chapter in the manner provided in this chapter.
    11                            SUBCHAPTER G
    12                  ASSESSMENTS, TAXATION AND LIENS
    13  Sec.
    14  3571.  Assessments and taxes.
    15  3572.  Assessment of charges.
    16  3573.  Method of enforcing charges.
    17  3574.  Mechanics' liens against units.
    18  3575.  Unpaid assessments at time of execution sale against
    19         unit.
    20  3576.  Unpaid assessments at time of voluntary sale of unit.
    21  § 3571.  Assessments and taxes.
    22     Each unit and its proportionate undivided interest in the
    23  common elements as determined by the declaration and any
    24  amendments thereof shall be assessed and taxed for all purposes
    25  as a separate parcel of real estate entirely independent of the
    26  building or property of which the unit is a part. Neither the
    27  building, the property nor any of the common elements shall be
    28  assessed or taxed separately after the declaration and
    29  declaration plan are recorded, nor shall the building, property
    30  or any of the common elements be subject to assessment or
    20070H0538B0608                 - 17 -     

     1  taxation, except as the units and their proportionate undivided
     2  interests in the common elements are assessed and taxed pursuant
     3  to this section.
     4  § 3572.  Assessment of charges.
     5     All sums assessed by resolutions duly adopted by the council
     6  against any unit for the share of common expenses chargeable to
     7  that unit shall constitute the personal liability of the owner
     8  of the unit so assessed and shall, until fully paid, together
     9  with interest thereon at the rate of 6% per year from the 30th
    10  day following the adoption of such resolutions, constitute a
    11  charge against the unit which shall be enforceable as provided
    12  in section 3573 (relating to method of enforcing charges).
    13  § 3573.  Method of enforcing charges.
    14     A charge assessed against a unit may be enforced by suit by
    15  the council acting on behalf of the unit owners in a civil
    16  action provided that each suit when filed shall refer to this
    17  chapter and to the unit against which the assessment is made and
    18  the owner of the unit and shall be indexed by the prothonotary
    19  as lis pendens. Any judgment against a unit and its owner shall
    20  be enforceable in the same manner as is otherwise provided by
    21  law.
    22  § 3574.  Mechanics' liens against units.
    23     A mechanics' lien arising as a result of repairs to or
    24  improvements of a unit by a unit owner shall be a lien only
    25  against that unit. A mechanics' lien arising as a result of
    26  repairs to or improvements of the common elements, if authorized
    27  in writing pursuant to a duly adopted resolution of the council,
    28  shall be paid by the council as a common expense and until so
    29  paid shall be a lien against each unit in a percentage equal to
    30  the proportionate share of the common elements relating to that
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     1  unit.
     2  § 3575.  Unpaid assessments at time of execution sale against
     3             unit.
     4     In the event that title to a unit is transferred by sheriff's
     5  sale pursuant to execution upon any lien against the unit, the
     6  council may give notice in writing to the sheriff of any unpaid
     7  assessments for common expenses which are a charge against the
     8  unit but have not been reduced to lien pursuant to section 3573
     9  (relating to method of enforcing charges), and the sheriff shall
    10  pay the assessments of which the sheriff has the notice out of
    11  any proceeds of the sale which remain in the sheriff's hands for
    12  distribution after payment of all other claims which the sheriff
    13  is required by law to pay, but prior to any distribution of the
    14  balance to the former unit owner against whom the execution was
    15  issued. The purchaser at the sheriff's sale and the unit
    16  involved shall not be liable for unpaid assessments for common
    17  expenses which become due prior to the sheriff's sale of the
    18  unit. Any unpaid assessments which cannot be promptly collected
    19  from the former unit owner may be reassessed by the council as a
    20  common expense to be collected from all of the unit owners,
    21  including the purchaser who acquired title at the sheriff's
    22  sale, the purchaser's successors and assigns. To protect its
    23  right to collect unpaid assessments which are a charge against a
    24  unit, the council may, on behalf of the unit owners, purchase
    25  the unit at sheriff's sale provided such action is authorized by
    26  the affirmative vote of a majority of the members of council,
    27  and, if it does purchase the unit, the council shall thereafter
    28  have the power to sell, convey, mortgage or lease the unit to
    29  any person.
    30  § 3576.  Unpaid assessments at time of voluntary sale of unit.
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     1     (a)  General rule.--Subject to subsection (b), upon the
     2  voluntary sale or conveyance of a unit, the grantee shall be
     3  jointly and severally liable with the grantor for all unpaid
     4  assessments for common expenses which are a charge against the
     5  unit as of the date of the sale or conveyance, but such joint
     6  and several liability shall be without prejudice to the
     7  grantee's right to recover from the grantor the amount of any
     8  such unpaid assessments which the grantee may pay, and until any
     9  such assessments are paid, they shall continue to be a charge
    10  against the unit which may be enforced in the manner set forth
    11  in section 3573 (relating to method of enforcing charges).
    12     (b)  Right to treasurer's statement.--
    13         (1)  A person who shall have entered into a written
    14     agreement to purchase a unit shall be entitled to obtain a
    15     written statement from the treasurer setting forth the amount
    16     of unpaid assessments charged against the unit and its
    17     owners. If such statement does not reveal the full amount of
    18     the unpaid assessments as of the date it is rendered, neither
    19     the purchaser nor the unit shall be liable for the payment of
    20     an amount in excess of the unpaid assessments shown on the
    21     statement.
    22         (2)  Any such excess which cannot be promptly collected
    23     from the former unit owner may be reassessed by the council
    24     as a common expense to be collected from all of the unit
    25     owners, including the purchaser, the purchaser's successors
    26     and assigns.
    27                            SUBCHAPTER H
    28                      MISCELLANEOUS PROVISIONS
    29  3581.  Insurance.
    30  3582.  Repair or reconstruction.
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     1  3583.  Eminent domain.
     2  3584.  Enforcement through Unfair Trade Practices and Consumer
     3         Protection Law.
     4  § 3581.  Insurance.
     5     The council shall, if required by the declaration, the code
     6  of regulations or a majority of the unit owners, insure the
     7  building against loss or damage by fire and such other hazards
     8  as shall be required or requested, without prejudice to the
     9  right of each unit owner to insure his own unit for his own
    10  benefit. The premiums for such insurance on the building shall
    11  be deemed common expenses.
    12  § 3582.  Repair or reconstruction.
    13     (a)  General rule.--Except as otherwise provided in
    14  subsection (b), damage to or destruction of a building or of one
    15  or more of several buildings which comprise the property shall
    16  be promptly repaired and restored by the council using the
    17  proceeds of insurance held by the council, if any, for that
    18  purpose, and the unit owners directly affected by it shall be
    19  liable for assessment for any deficiency in proportion to their
    20  respective undivided ownership of the common elements.
    21     (b)  Exception.--If there is substantially total destruction
    22  of the building or of one or more of several buildings which
    23  comprise the property or if at least 75% of the unit owners
    24  directly affected by it resolve not to proceed with repair or
    25  restoration, then, and in that event, the salvage value of the
    26  property or of the substantially destroyed building or buildings
    27  shall be subject to partition at the suit of any unit owner
    28  directly affected by it, in which event the net proceeds of
    29  sale, together with the net proceeds of insurance policies held
    30  by the council, if any, shall be considered as one fund and
    20070H0538B0608                 - 21 -     

     1  shall be divided among all the unit owners directly affected by
     2  it in proportion to their respective undivided ownership of the
     3  common elements, after discharging, out of the respective shares
     4  of unit owners directly affected by it, to the extent sufficient
     5  for the purpose, all liens against the units of such unit
     6  owners.
     7  § 3583.  Eminent domain.
     8     Whenever all or part of the common elements shall be taken,
     9  injured or destroyed by eminent domain, each unit owner shall be
    10  entitled to notice thereof and to participate in the proceedings
    11  incident thereto, but in any proceeding for the determination of
    12  damages, such damages shall be determined for such taking,
    13  injury or destruction as a whole and not for each unit owner's
    14  interest in the common elements. After such determination, each
    15  unit owner shall be entitled to a share in the damages in the
    16  same proportion as that unit owner's individual interest in the
    17  common elements.
    18  § 3584.  Enforcement through Unfair Trade Practices and Consumer
    19             Protection Law.
    20     A violation of this chapter shall constitute an unfair trade
    21  practice as defined under the act of December 17, 1968
    22  (P.L.1224, No.387), known as the Unfair Trade Practices and
    23  Consumer Protection Law, shall be deemed unlawful and may be
    24  enforced by the Attorney General.
    25     Section 3.  Title 68 is amended by adding sections to read:
    26  § 4114.  Enforcement through Unfair Trade Practices and Consumer
    27             Protection Law.
    28     Notwithstanding the provisions of section 4113(b) (relating
    29  to remedies to be liberally administered), a violation of this
    30  subpart shall constitute an unfair trade practice as defined
    20070H0538B0608                 - 22 -     

     1  under the act of December 17, 1968 (P.L.1224, No.387), known as
     2  the Unfair Trade Practices and Consumer Protection Law, shall be
     3  deemed unlawful and may be enforced by the Attorney General.
     4  § 5115.  Enforcement through Unfair Trade Practices and Consumer
     5             Protection Law.
     6     Notwithstanding the provisions of section 5114(b) (relating
     7  to remedies to be liberally administered), a violation of this
     8  subpart shall constitute an unfair trade practice as defined
     9  under the act of December 17, 1968 (P.L.1224, No.387), known as
    10  the Unfair Trade Practices and Consumer Protection Law, shall be
    11  deemed unlawful and may be enforced by the Attorney General.
    12     Section 4.  The addition of 68 Pa.C.S. Ch. 35 is a
    13  continuation of the former act of July 3, 1963 (P.L.196,
    14  No.117), known as the Unit Property Act. The following apply:
    15         (1)  Except as otherwise provided in 68 Pa.C.S. Ch. 35,
    16     all activities initiated under the Unit Property Act, shall
    17     continue and remain in full force and effect and may be
    18     completed under 68 Pa.C.S. Ch. 35. Resolutions, orders,
    19     regulations, rules and decisions which were made under the
    20     Unit Property Act and which are in effect on the effective
    21     date of this section shall remain in full force and effect
    22     until revoked, vacated or modified under 68 Pa.C.S. Ch. 35.
    23     Contracts, obligations and agreements entered into under the
    24     Unit Property Act are not affected nor impaired by the repeal
    25     of the Unit Property Act.
    26         (2)  Except as set forth in paragraph (3), any difference
    27     in language between 68 Pa.C.S. Ch. 35 and the Unit Property
    28     Act is intended only to conform to the style of the
    29     Pennsylvania Consolidated Statutes and is not intended to
    30     change or affect the legislative intent, judicial
    20070H0538B0608                 - 23 -     

     1     construction or administrative interpretation and
     2     implementation of the Unit Property Act.
     3         (3)  Paragraph (2) does not apply to 68 Pa.C.S. §§ 3501,
     4     3541(b) and 3584.
     5     Section 5.  Repeals are as follows:
     6         (1)  The General Assembly declares that the repeal under
     7     paragraph (2) is necessary to effectuate this act.
     8         (2)  The act of July 3, 1963 (P.L.196, No.117), known as
     9     the Unit Property Act, is repealed.
    10     Section 6.  This act shall take effect in 60 days.














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