PRIOR PRINTER'S NO. 2086
PRINTER'S NO. 2191
THE GENERAL ASSEMBLY OF PENNSYLVANIA
HOUSE BILL
No.
1840
Session of
2021
INTRODUCED BY MERCURI, R. BROWN, CIRESI, GAYDOS, HELM,
M. MACKENZIE, N. NELSON, RADER, RYAN, SILVIS, SMITH AND
NEILSON, SEPTEMBER 8, 2021
AS REPORTED FROM COMMITTEE ON URBAN AFFAIRS, HOUSE OF
REPRESENTATIVES, AS AMENDED, SEPTEMBER 28, 2021
AN ACT
Amending Title 68 (Real and Personal Property) of the
Pennsylvania Consolidated Statutes, in protection of
purchasers, further providing for public offering statement
and general provisions and for resales of units; in
protection of cooperative interest purchasers, further
providing for public offering statement and general
provisions and for resales of cooperative interests; and, in
protection of purchasers, further providing for public
offering statement and general provisions and for resales of
units.
The General Assembly of the Commonwealth of Pennsylvania
hereby enacts as follows:
Section 1. Section 3402(a) introductory paragraph of Title
68 of the Pennsylvania Consolidated Statutes is amended and the
subsection is amended by adding a paragraph to read:
§ 3402. Public offering statement; general provisions.
(a) General rule.--Except as provided in subsection (b), a
declarant shall furnish to a purchaser, prior to the day of the
execution of any contract for sale of a unit, a public offering
statement. The public offering statement must BE CURRENT AND
contain or fully and accurately disclose:
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* * *
(27) A statement, in a font four times greater than the
font in any other statement in the certificate, which shall
be acknowledged and signed by the purchaser and in the
following form:
"I have received a copy of the bylaws GOVERNING
DOCUMENTS of the community to review and I understand
the bylaws. I understand that the bylaws and
declaration of this community are the governing
documents and a binding contract between myself and
the community, and I must abide by all bylaws, rules
and regulations outlined in the documents. I also
understand that this community is governed by an
elected board of unit owners. I understand that
disputes, concerns or legal issues that may arise in
my time as a unit owner would, in most cases, be
civil legal concerns; except in extreme circumstances
of fraud and abuse, are otherwise noted as applicable
provisions for complaints to the Bureau of Consumer
Protection in the Office of Attorney General or have
specific stated penalties."
* * *
Section 2. Section 3407(a) introductory paragraph and (b) of
Title 68 are amended and subsection (a) is amended by adding a
paragraph to read:
§ 3407. Resales of units.
(a) Information supplied by unit owner.--In the event of a
resale of a unit by a unit owner other than a declarant, the
unit owner shall furnish to a purchaser [before], prior to the
day of the execution of any contract for sale of a unit, [or
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otherwise before conveyance,] a copy of the declaration (other
than the plats and plans), the bylaws, the rules or regulations
of the association and a CURRENT certificate containing:
* * *
(18) A statement, in a font four times greater than the
font in any other statement in the certificate, which shall
be acknowledged and signed by the purchaser and in the
following form:
"I have received a copy of the bylaws GOVERNING
DOCUMENTS of the community to review and I understand
the bylaws. I understand that the bylaws and
declaration of this community are the governing
documents and a binding contract between myself and
the community, and I must abide by all bylaws, rules
and regulations outlined in the documents. I also
understand that this community is governed by an
elected board of unit owners. I understand that
disputes, concerns or legal issues that may arise in
my time as a unit owner would, in most cases, be
civil legal concerns; except in extreme circumstances
of fraud and abuse, are otherwise noted as applicable
provisions for complaints to the Bureau of Consumer
Protection in the Office of Attorney General or have
specific stated penalties."
(b) Information supplied by association.--The association,
within ten days after a request by a unit owner, shall furnish a
certificate containing the information under subsection (a) and
copies of documents necessary to enable the unit owner to comply
with this section. Except for the actual costs incurred to
furnish the certificate and the copies of the necessary
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documents, the association may not impose a fee on a unit owner
for the certificate and the copies of the necessary documents to
comply with the deadline specified under this subsection. A unit
owner providing a certificate pursuant to subsection (a) is not
liable to the purchaser for any erroneous information provided
by the association and included in the certificate. IF THE
ASSOCIATION FAILS TO FURNISH THE CERTIFICATE AND THE COPIES OF
THE NECESSARY DOCUMENTS BY THE DEADLINE SPECIFIED UNDER THIS
SUBSECTION, THE PURCHASER SHALL NOT BE SUBJECT TO ANY FEES
IMPOSED BY THE ASSOCIATION.
* * *
Section 3. Section 4403(a) introductory paragraph of Title
68 is amended and the subsection is amended by adding a
paragraph to read:
§ 4403. Public offering statement; general provisions.
(a) General rule.--Except as provided in subsection (b), a
declarant shall furnish to a purchaser, prior to the day of the
execution of any contract for sale of a unit, a public offering
statement. THE PUBLIC OFFERING STATEMENT must BE CURRENT AND
contain or fully and accurately disclose:
* * *
(28) A statement, in a font four times greater than the
font in any other statement in the certificate, which shall
be acknowledged and signed by the purchaser and in the
following form:
"I have received a copy of the bylaws GOVERNING
DOCUMENTS of the community to review and I understand
the bylaws. I understand that the bylaws and
declaration of this community are the governing
documents and a binding contract between myself and
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the community, and I must abide by all bylaws, rules
and regulations outlined in the documents. I also
understand that this community is governed by an
elected board of unit owners . I understand that
disputes, concerns or legal issues that may arise in
my time as a unit owner would, in most cases, be
civil legal concerns; except in extreme circumstances
of fraud and abuse, are otherwise noted as applicable
provisions for complaints to the Bureau of Consumer
Protection in the Office of Attorney General or have
specific stated penalties."
* * *
Section 4. Section 4409(a) introductory paragraph and (b) of
Title 68 are amended and subsection (a) is amended by adding a
paragraph to read:
§ 4409. Resales of cooperative interests.
(a) Information supplied by proprietary lessee.--Except in
the case of a sale where delivery of a public offering statement
is required or unless the transaction is exempt under section
4401(b) (relating to applicability; waiver), a proprietary
lessee shall furnish to a purchaser [before], prior to the day
of the execution of any contract of sale of a cooperative
interest[ or, if there is no contract of sale, before the time
of conveyance a copy of the declaration (other than the plats
and plans)], the bylaws and the rules or regulations of the
association, including all amendments to such documents to the
date of their delivery to the purchaser, and a CURRENT
certificate containing:
* * *
(22) A statement, in a font four times greater than the
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font in any other statement in the certificate, which shall
be acknowledged and signed by the purchaser and in the
following form:
"I have received a copy of the bylaws GOVERNING
DOCUMENTS of the community to review and I understand
the bylaws. I understand that the bylaws and
declaration of this community are the governing
documents and a binding contract between myself and
the community, and I must abide by all bylaws, rules
and regulations outlined in the documents. I also
understand that this community is governed by an
elected board of unit owners . I understand that
disputes, concerns or legal issues that may arise in
my time as a unit owner would, in most cases, be
civil legal concerns; except in extreme circumstances
of fraud and abuse, are otherwise noted as applicable
provisions for complaints to the Bureau of Consumer
Protection in the Office of Attorney General or have
specific stated penalties."
(b) Information supplied by association.--The association,
within ten days after a request by a proprietary lessee, shall
furnish the documents and a certificate containing the
information under subsection (a) necessary to enable the
proprietary lessee to comply with this section. Except for the
actual costs incurred to furnish the documents and the
certificate, the association may not impose a fee on a
proprietary lessee for the documents and the certificate to
comply with the deadline specified under this subsection. A
proprietary lessee providing a certificate pursuant to
subsection (a) is not liable to the purchaser for any erroneous
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information provided by the association and included in or
delivered with the certificate. IF THE ASSOCIATION FAILS TO
FURNISH THE DOCUMENTS AND THE CERTIFICATE BY THE DEADLINE
SPECIFIED UNDER THIS SUBSECTION, THE PURCHASER SHALL NOT BE
SUBJECT TO ANY FEES IMPOSED BY THE ASSOCIATION.
* * *
Section 5. Section 5402(a) introductory paragraph of Title
68 is amended and the subsection is amended by adding a
paragraph to read:
§ 5402. Public offering statement; general provisions.
(a) General rule.--Except as provided in subsection (b), a
declarant shall furnish to a purchaser, prior to the day of the
execution of any contract for sale of a unit, a public offering
statement. THE PUBLIC OFFERING STATEMENT must BE CURRENT AND
contain or fully and accurately disclose:
* * *
(30) A statement, in a font four times greater than the
font in any other statement in the certificate, which shall
be acknowledged and signed by the purchaser and in the
following form:
"I have received a copy of the bylaws GOVERNING
DOCUMENTS of the community to review and I understand
the bylaws. I understand that the bylaws and
declaration of this community are the governing
documents and a binding contract between myself and
the community, and I must abide by all bylaws, rules
and regulations outlined in the documents. I also
understand that this community is governed by an
elected board of unit owners . I understand that
disputes, concerns or legal issues that may arise in
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my time as a unit owner would, in most cases, be
civil legal concerns; except in extreme circumstances
of fraud and abuse, are otherwise noted as applicable
provisions for complaints to the Bureau of Consumer
Protection in the Office of Attorney General or have
specific stated penalties."
* * *
Section 6. Section 5407(a) introductory paragraph and (b) of
Title 68 are amended and subsection (a) is amended by adding a
paragraph to read:
§ 5407. Resales of units.
(a) Information supplied by unit owner.--In the event of a
resale of a unit by a unit owner other than a declarant, the
unit owner shall furnish to a purchaser [before], prior to the
day of the execution of any contract for sale of a unit [or
otherwise before conveyance], a copy of the declaration other
than the plats and plans, the bylaws, the rules or regulations
of the association and a CURRENT certificate containing:
* * *
(18) A statement, in a font four times greater than the
font in any other statement in the certificate, which shall
be acknowledged and signed by the purchaser and in the
following form:
"I have received a copy of the bylaws GOVERNING
DOCUMENTS of the community to review and I understand
the bylaws. I understand that the bylaws and
declaration of this community are the governing
documents and a binding contract between myself and
the community, and I must abide by all bylaws, rules
and regulations outlined in the documents. I also
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understand that this community is governed by an
elected board of unit owners . I understand that
disputes, concerns or legal issues that may arise in
my time as a unit owner would, in most cases, be
civil legal concerns; except in extreme circumstances
of fraud and abuse, are otherwise noted as applicable
provisions for complaints to the Bureau of Consumer
Protection in the Office of Attorney General or have
specific stated penalties."
(b) Information supplied by association.--The association,
within ten days after a request by a unit owner, shall furnish a
certificate containing the information under subsection (a) and
copies of documents necessary to enable the unit owner to comply
with this section. Except for the actual costs incurred to
furnish the certificate and the copies of the necessary
documents, the association may not impose a fee on a unit owner
for the certificate and the copies of the necessary documents to
comply with the deadline specified under this subsection. A unit
owner providing a certificate pursuant to subsection (a) is not
liable to the purchaser for any erroneous information provided
by the association and included in the certificate. IF THE
ASSOCIATION FAILS TO FURNISH THE CERTIFICATE AND THE COPIES OF
THE NECESSARY DOCUMENTS BY THE DEADLINE SPECIFIED UNDER THIS
SUBSECTION, THE PURCHASER SHALL NOT BE SUBJECT TO ANY FEES
IMPOSED BY THE ASSOCIATION.
* * *
Section 7. This act shall take effect in 60 days.
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