PRINTER'S NO. 608
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: 20070H0538B0608 - 3 -
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; 20070H0538B0608 - 4 -
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 20070H0538B0608 - 18 -
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. 20070H0538B0608 - 19 -
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. 20070H0538B0608 - 20 -
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. B6L68SFL/20070H0538B0608 - 24 -