Pennsylvania Act 1963-117 — UNIT PROPERTY ACT - (CONDOMINIUMS)

Act text

UNIT PROPERTY ACT - (CONDOMINIUMS)
                  Act of Jul. 3, 1963, P.L. 196, No. 117              Cl. 68
                                  AN ACT

     Relating to the ownership of real property, the division thereof
        into units, the submission of real property to the provisions
        of this act and the withdrawal of such property from the
        provisions of this act; providing for the improvement,
        management, operation, assessment and taxation of such
        property; establishing certain procedures in connection
        therewith; providing for the conveyancing, leasing and
        mortgaging thereof; establishing a procedure for the
        assessment and collection of certain expenses with respect
        thereto; setting forth certain lien rights with respect
        thereto; providing procedures for the exercise of eminent
        domain in certain cases; and providing for the recording of
        certain information.

        Compiler's Note:  Section of Act 82 of 1980 provided that Act
            177 is repealed except as to condominiums created prior
            to the effective date of the Act 82 of 1980.

        The General Assembly of the Commonwealth of Pennsylvania
     hereby enacts as follows:

                                ARTICLE I.
                          PRELIMINARY PROVISIONS

        Section 101.  Short Title.--This act shall be known and may
     be cited as the "Unit Property Act."
        Section 102.  Definitions.--The following words or phrases as
     used in this act shall have the meanings ascribed to them in
     this section, unless the context of this act clearly indicates
     otherwise:
        (1)  "Building" means any multi-unit building or buildings or
     complex thereof, whether in vertical or horizontal arrangement,
     as well as other improvements comprising a part of the property
     and used, or intended for use, for residential, commercial or
     industrial purposes or for any other lawful purpose or for any
     combination of such uses.
        (2)  "Code of regulations" means such governing regulations
     as are adopted pursuant to this act for the regulation and
     management of the property, including such amendments thereof as
     may be adopted from time to time.
        (3)  "Common elements" means and includes:
        (i)  The land on which the building is located and portions
     of the building which are not included in a unit;
        (ii)  The foundations, structural parts, supports, main
     walls, roofs, basements, halls, corridors, lobbies, stairways
     and entrances and exits of the building;
        (iii)  The yards, parking areas and driveways;
        (iv)  Portions of the land and building used exclusively for
     the management, operation or maintenance of the common elements;
        (v)  Installations of all central services and utilities;
        (vi)  All apparatus and installations existing for common
     use;
        (vii)  All other elements of the building necessary or
     convenient to its existence, management, operation, maintenance
     and safety or normally in common use; and
        (viii)  Such facilities as are designated in the declaration
     as common elements.
        (4)  "Common expenses" means and includes:
        (i)  Expenses of administration, maintenance, repair and
     replacement of the common elements;
        (ii)  Expenses agreed upon as common by all the unit owners;
     and
        (iii)  Expenses declared common by provisions of this act, or
     by the declaration or the code of regulations.
        (5)  "Council" means a board of natural individuals of the
     number stated in the code of regulations who are residents of
     this Commonwealth, who need not be unit owners and who shall
     manage the business, operation and affairs of the property on
     behalf of the unit owners and in compliance with and subject to
     the provisions of this act.
        (6)  "Declaration" means the instrument by which the owner of
     property submits it to the provisions of this act as hereinafter
     provided, and all amendments thereof.
        (7)  "Declaration plan" means a survey of the property
     prepared in accordance with section 402 of this act.
        (8)  "Majority" or "majority of the unit owners" means the
     owners of more than fifty per cent in the aggregate in interest
     of the undivided ownership of the common elements as specified
     in the declaration.
        (9)  "Person" means a natural individual, corporation,
     partnership, association, trustee or other legal entity.
        (10)  "Property" means and includes the land, the building,
     all improvements thereon, all owned in fee simple, and all
     easements, rights and appurtenances belonging thereto, which
     have been or are intended to be submitted to the provisions of
     this act.
        (11)  "Recorded" means that an instrument has been duly
     entered of record in the office of the recorder of deeds or
     department of records of the county in which the property is
     situate.
        (12)  "Recorder" means the recorder of deeds or commissioner
     of records of the county in which the property is situate.
        (13)  "Revocation" means an instrument signed by all of the
     unit owners and by all holders of liens against the units by
     which the property is removed from the provisions of this act.
        (14)  "Unit" means a part of the property designed or
     intended for any type of independent use, which has a direct
     exit to a public street or way, or to a common element or common
     elements leading to a public street or way, or to an easement or
     right-of-way leading to a public street or way, and includes the
     proportionate undivided interest in the common elements, which
     is assigned thereto in the declaration or any amendments
     thereof.
        (15)  "Unit designation" means the number, letter or
     combination thereof designating a unit in the declaration plan.
        (16)  "Unit owner" means the person or persons owning a unit
     in fee simple.
        Section 103.  Application of Act.--This act shall be
     applicable only to real property, the sole owner or all the
     owners of which submit the same to the provisions hereof by a
     duly recorded declaration.

                               ARTICLE II.
                            GENERAL PROVISIONS

        Section 201.  Status of Units; Ownership Thereof.--Each unit,
     together with its proportionate undivided interest in the common
     elements, is for all purposes real property and the ownership of
     each unit, together with its proportionate undivided interest in
     the common elements, is for all purposes the ownership of real
     property.
        Section 202.  Common Elements.--The percentage of undivided
     interest in the common elements assigned to each unit shall be
     set forth in the declaration and such percentage shall not be
     altered except by recording an amended declaration duly executed
     by all of the unit owners affected thereby. The undivided
     interest in the common elements may not be separated from the
     unit to which such interest pertains and shall be deemed to be
     conveyed, leased or encumbered with the unit even though such
     interest is not expressly referred to or described in the deed,
     lease, mortgage or other instrument. The common elements shall
     remain undivided and no owner may exempt himself from liability
     with respect to the common expenses by waiver of the enjoyment
     of the right to use any of the common elements or by the
     abandonment of his unit or otherwise, and no action for
     partition or division of any part of the common elements shall
     be permitted, except as provided in section 802 of this act.
     Each unit owner or lessee thereof may use the common elements in
     accordance with the purpose for which they are intended, without
     hindering or encroaching upon the lawful rights of the other
     unit owners. The maintenance and repair of the common elements
     and the making of any additions or improvements thereto shall be
     carried out only as provided in the code of regulations.
        Section 203.  Invalidity of Contrary Agreements.--Any
     agreement contrary to the provisions of this act shall be void
     and of no effect.

                               ARTICLE III.
                        ADMINISTRATIVE PROVISIONS

        Section 301.  Code of Regulations.--The administration of
     every property shall be governed by a code of regulations, a
     true and correct copy of which, and all duly adopted amendments
     of which, shall be duly recorded.
        Section 302.  Adoption, Amendment, etc. of Code of
     Regulations.--The first members of council shall establish and
     adopt the original code of regulations. Thereafter, no amendment
     or change of the provisions of the code of regulations shall be
     effective unless it is adopted at a meeting of the unit owners
     by the affirmative vote of at least those unit owners who
     represent a majority of the votes entitled to be cast at that
     meeting.
        Section 303.  Contents of the Code of Regulations.--The code
     of regulations shall provide for at least the following, and may
     include other lawful provisions:
        (1)  Identification of the property by reference to the place
     of record of the declaration and the declaration plan;
        (2)  The method of calling meetings of unit owners and
     meetings of the council;
        (3)  The number of unit owners and the number of members of
     council which shall constitute a quorum for the transaction of
     business;
        (4)  The number and qualification of members of council, the
     duration of the term of such members and the method of filling
     vacancies;
        (5)  The annual election by the council of a president,
     secretary and treasurer and any other officers which the code of
     regulations may specify;
        (6)  The duties of each officer, the compensation and removal
     of officers and the method of filling vacancies;
        (7)  Maintenance, repair and replacement of the common
     elements and payment of the cost thereof;
        (8)  The manner of collecting common expenses from unit
     owners; and
        (9)  The method of adopting and of amending rules governing
     the details of the use and operation of the property and the use
     of the common elements.
        Section 304.  Compliance with Code of Regulations,
     Administrative Provisions, Covenants, etc.--Each unit owner
     shall comply with the code of regulations and with such rules
     governing the details of the use and operation of the property
     and the use of the common elements as may be in effect from time
     to time, and with the covenants, conditions and restrictions set
     forth in the declaration or in the deed to his unit or in the
     declaration plan.
        Section 305.  Noncompliance with Code of Regulations,
     Administrative Provisions, Covenants, etc.--Failure to comply
     with the code of regulations and with such rules governing the
     details of the use and operation of the property and the use of
     the common elements as may be in effect from time to time and
     with the covenants, conditions and restrictions set forth in the
     declaration or in deeds of units or in the declaration plan
     shall be grounds for an action for the recovery of damages or
     for injunctive relief, or both, maintainable by any member of
     the council on behalf of the council or the unit owners or, in a
     proper case, by an aggrieved unit owner or by any person who
     holds a mortgage lien upon a unit and is aggrieved by any such
     noncompliance.
        Section 306.  Duties of Council.--The duties of the council
     shall include the following:
        (1)  The maintenance, repair and replacement of the common
     elements;
        (2)  The assessment and collection of funds from unit owners
     for common expenses and the payment of such common expenses;
        (3)  The promulgation, distribution and enforcement of rules
     governing the details of the use and operation of the property
     and the use of the common elements, subject to the right of a
     majority of the unit owners to change any such rules; and
        (4)  Any other duties which may be set forth in the
     declaration or code of regulations.
        Section 307.  Powers of Council.--Subject to the limitations
     and restrictions contained in this act, the declaration and the
     code of regulations, the council shall on behalf of the unit
     owners:
        (1)  Have power to manage the business, operation and affairs
     of the property and for such purposes to engage employes and
     appoint agents and to define their duties and fix their
     compensation, enter into contracts and other written instruments
     or documents and to authorize the execution thereof by officers
     elected by the council; and
        (2)  Have such incidental powers as may be appropriate to the
     performance of their duties.
        Section 308.  Work on Common Elements.--The maintenance,
     repair and replacement of the common elements and the making of
     improvements or additions thereto shall be carried on only as
     provided in the code of regulations.
        Section 309.  Certain Work Prohibited.--No unit owner shall
     do any work which would jeopardize the soundness or safety of
     the property or impair any easement or hereditament without the
     unanimous consent of the unit owners affected thereby.
        Section 310.  Easements for Work.--The council shall have an
     easement to enter any unit to maintain, repair or replace the
     common elements, as well as to make repairs to units if such
     repairs are reasonably necessary for public safety or to prevent
     damage to other units or to the common elements.
        Section 311.  Common Profits and Expenses.--The common
     profits of the property shall be distributed among, and the
     common expenses shall be charged to, the unit owners according
     to the percentage of the undivided interest of each in the
     common elements as set forth in the declaration and any
     amendments thereto.
        Section 312.  Voting by Unit Owners.--At any meeting of unit
     owners, each unit owner shall be entitled to the same number of
     votes as the percentage of ownership in the common elements
     assigned to his unit in the declaration and any amendments
     thereto.
        Section 313.  Books of Receipts and Expenditures;
     Availability for Examination.--The treasurer shall keep detailed
     records of all receipts and expenditures, including expenditures
     affecting the common elements, specifying and itemizing the
     maintenance, repair and replacement expenses of the common
     elements and any other expenses incurred. Such records shall be
     available for examination by the unit owners during regular
     business hours. In accordance with the actions of the council
     assessing common expenses against the units and unit owners, he
     shall keep an accurate record of such assessments and of the
     payment thereof by each unit owner.

                               ARTICLE IV.
           THE DECLARATION, RESERVATIONS OF CHARGES THEREUNDER,
                    CONVEYANCES, MORTGAGES AND LEASES

        Section 401.  Contents of Declaration.--The declaration shall
     contain the following:
        (1)  A reference to this act and an expression of the
     intention to submit the property to the provisions of this act;
        (2)  A description of the land and building;
        (3)  The name by which the property will be known;
        (4)  A statement that the property is to consist of units and
     common elements as shown in a declaration plan;
        (5)  A description of the common elements and the
     proportionate undivided interest, expressed as a percentage,
     assigned to each unit therein, which percentages shall aggregate
     one hundred per cent;
        (6)  A statement that the proportionate undivided interest in
     the common elements may be altered by the recording of an
     amendment duly executed by all unit owners affected thereby;
        (7)  A statement of the purposes or uses for which each unit
     is intended and restrictions, if any, as to use;
        (8)  The names of the first members of council;
        (9)  Any further details in connection with the property
     which the party or parties executing the declaration may deem
     appropriate.
        Section 402.  Declaration Plan.--The declaration plan shall
     bear the verified statement of a registered architect or
     licensed professional engineer certifying that the declaration
     plan fully and accurately (i) shows the property, the location
     of the building thereon, the building and the layout of the
     floors of the building, including the units and the common
     elements and (ii) sets forth the name by which the property will
     be known, and the unit designation for each unit therein.
        Section 403.  Contents of Deeds of Units.--Deeds of units
     shall include the following:
        (1)  The name by which the property is identified in the
     declaration plan and the name of the political subdivision and
     the ward, if any, and the name of the county in which the
     building is situate, together with a reference to the
     declaration and the declaration plan, including reference to the
     place where both instruments and any amendments thereof are
     recorded;
        (2)  The unit designation of the unit in the declaration plan
     and any other data necessary for its proper identification;
        (3)  A reference to the last unit deed if the unit was
     previously conveyed;
        (4)  The proportionate undivided interest, expressed as a
     percentage, in the common elements which is assigned to the unit
     in the declaration and any amendments thereof;
        (5)  In addition to the foregoing, the first deed conveying
     each unit shall contain the following specific provision:
        "The grantee, for and on behalf of the grantee and the
     grantee's heirs, personal representatives, successors and
     assigns, by the acceptance of this deed covenants and agrees to
     pay such charges for the maintenance of, repairs to, replacement
     of and expenses in connection with the common elements as may be
     assessed from time to time by the council in accordance with the
     Unit Property Act of Pennsylvania, and further covenants and
     agrees that the unit conveyed by this deed shall be subject to a
     charge for all amounts so assessed and that, except in so far as
     sections 705 and 706 of said Unit Property Act may relieve a
     subsequent unit owner of liability for prior unpaid assessments,
     this covenant shall run with and bind the land or unit hereby
     conveyed and all subsequent owners thereof"; and
        (6)  Any further details which the grantor and grantee may
     deem appropriate and which are consistent with the declaration,
     the code of regulations, the declaration plan and this act.
        Section 404.  Mortgages and Other Liens of Record Affecting
     Property at Time of the First Conveyance of Each Unit.--At the
     time of the first conveyance of each unit following the
     recording of the original declaration, every mortgage and other
     lien of record affecting the entire building or property or a
     greater portion thereof than the unit being conveyed shall be
     paid and satisfied of record, or the unit being conveyed shall
     be released therefrom by partial release duly recorded.
        Section 405.  Sales, Conveyances or Leases of or Liens upon
     Separate Units.--Units may be sold, conveyed, mortgaged, leased
     or otherwise dealt with in the same manner as like dealings are
     conducted with respect to real property and interests therein.
     Every written instrument dealing with a unit shall specifically
     set forth the name by which the property is identified and the
     unit designation identifying the unit involved.

                                ARTICLE V.
                                RECORDING

        Section 501.  Instruments Recordable.--All instruments
     relating to the property or any unit, including the instruments
     provided for in this act, shall be entitled to be recorded,
     provided that they are acknowledged or proved in the manner
     provided by law.
        Section 502.  Recording a Prerequisite to Effectiveness of
     Certain Instruments.--No declaration, declaration plan or code
     of regulations, or any amendments thereto, shall be effective
     until the same have been duly recorded.
        Section 503.  Place of Recording.--The recorder shall record
     declarations, deeds of units, codes of regulations, and
     revocations in the same records as are maintained for the
     recording of deeds of real property. Mortgages relating to units
     shall be recorded in the same records as are maintained by the
     recorder for the recording of real estate mortgages. Declaration
     plans, and any and all amendments thereto, shall be recorded in
     the same records as are maintained for the recording of
     subdivision plans.
        Section 504.  Indexing by Recording Officer.--The recorder
     shall index each declaration against the maker thereof as the
     grantor and the name by which the property is identified therein
     as the grantee. The recorder shall index each declaration plan
     and code of regulations and any revocation in the name by which
     the property is identified therein in both the grantor index and
     the grantee index. The recorder shall index each unit deed and
     mortgage and lease covering a unit in the same manner as like
     instruments are indexed.
        Section 505.  Recording Fees.--The recorder shall be entitled
     to charge the same fees for recording instruments which are
     recordable under this act as the recorder is entitled to charge
     for like services with respect to the recording of instruments.

                               ARTICLE VI.
           REMOVAL OF PROPERTY FROM THE PROVISIONS OF THIS ACT

        Section 601.  Removal.--Property may be removed from the
     provisions of this act by a revocation expressing the intention
     to so remove property previously made subject to the provisions
     of this act. No such revocation shall be effective unless the
     same is executed by all of the unit owners and by the holders of
     all mortgages, judgments or other liens affecting the units and
     is duly recorded.
        Section 602.  Effect of Removal.--When property subject to
     the provisions of this act has been removed as provided in
     section 601 of this act, the former unit owners shall, at the
     time such removal becomes effective, become tenants in common of
     the property. The undivided interest in the property owned in
     common which shall appertain to each unit owner at the time of
     removal shall be the percentage of undivided interest previously
     owned by such person in the common elements.
        Section 603.  Resubmission.--The removal of property from the
     provisions of this act shall not preclude such property from
     being resubmitted to the provisions of the act in the manner
     herein provided.

                               ARTICLE VII.
                     ASSESSMENTS, TAXATION AND LIENS

        Section 701.  Assessments and Taxes.--Each unit and its
     proportionate undivided interest in the common elements as
     determined by the declaration and any amendments thereof shall
     be assessed and taxed for all purposes as a separate parcel of
     real estate entirely independent of the building or property of
     which the unit is a part. Neither the building, the property nor
     any of the common elements shall be assessed or taxed separately
     after the declaration and declaration plan are recorded, nor
     shall the same be subject to assessment or taxation, except as
     the units and their proportionate undivided interests in the
     common elements are assessed and taxed pursuant to the
     provisions of this section.
        Section 702.  Assessment of Charges.--All sums assessed by
     resolutions duly adopted by the council against any unit for the
     share of common expenses chargeable to that unit shall
     constitute the personal liability of the owner of the unit so
     assessed and shall, until fully paid, together with interest
     thereon at the rate of six per cent per annum from the thirtieth
     day following the adoption of such resolutions, constitute a
     charge against such unit which shall be enforceable as provided
     in section 703 of this act.
        Section 703.  Method of Enforcing Charges.--Any charge
     assessed against a unit may be enforced by suit by the council
     acting on behalf of the unit owners in an action in assumpsit:
     Provided, That each suit when filed shall refer to this act and
     to the unit against which the assessment is made and the owner
     thereof and shall be indexed by the prothonotary as lis pendens.
     Any judgment against a unit and its owner shall be enforceable
     in the same manner as is otherwise provided by law.
        Section 704.  Mechanics' Liens Against Units.--Any mechanics'
     liens arising as a result of repairs to or improvements of a
     unit by a unit owner shall be liens only against such unit. Any
     mechanics' liens arising as a result of repairs to or
     improvements of the common elements, if authorized in writing
     pursuant to a duly adopted resolution of the council, shall be
     paid by the council as a common expense and until so paid shall
     be liens against each unit in a percentage equal to the
     proportionate share of the common elements relating to such
     unit.
        Section 705.  Unpaid Assessments at Time of Execution Sale
     Against a Unit.--In the event that title to a unit is
     transferred by sheriff's sale pursuant to execution upon any
     lien against the unit, the council may give notice in writing to
     the sheriff of any unpaid assessments for common expenses which
     are a charge against the unit but have not been reduced to lien
     pursuant to section 703 of this act, and the sheriff shall pay
     the assessments of which he has such notice out of any proceeds
     of the sale which remain in his hands for distribution after
     payment of all other claims which he is required by law to pay,
     but prior to any distribution of the balance to the former unit
     owner against whom the execution issued. The purchaser at such
     sheriff's sale and the unit involved shall not be liable for
     unpaid assessments for common expenses which become due prior to
     the sheriff's sale of the unit. Any such unpaid assessments
     which cannot be promptly collected from the former unit owner
     may be reassessed by the council as a common expense to be
     collected from all of the unit owners, including the purchaser
     who acquired title at the sheriff's sale, his successors and
     assigns. To protect its right to collect unpaid assessments
     which are a charge against a unit, the council may on behalf of
     the unit owners, purchase the unit at sheriff's sale provided
     such action is authorized by the affirmative vote of a majority
     of the members of council, and if it does so purchase, the
     council shall thereafter have the power to sell, convey,
     mortgage or lease such unit to any person whatsoever.
        Section 706.  Unpaid Assessments at Time of Voluntary Sale of
     a Unit.--Upon the voluntary sale or conveyance of a unit, the
     grantee shall be jointly and severally liable with the grantor
     for all unpaid assessments for common expenses which are a
     charge against the unit as of the date of the sale or
     conveyance, but such joint and several liability shall be
     without prejudice to the grantee's right to recover from the
     grantor the amount of any such unpaid assessments which the
     grantee may pay, and until any such assessments are paid, they
     shall continue to be a charge against the unit which may be
     enforced in the manner set forth in section 703 of this act:
     Provided, however, That any person who shall have entered into a
     written agreement to purchase a unit shall be entitled to obtain
     a written statement from the treasurer setting forth the amount
     of unpaid assessments charged against the unit and its owners,
     and if such statement does not reveal the full amount of the
     unpaid assessments as of the date it is rendered, neither the
     purchaser nor the unit shall be liable for the payment of an
     amount in excess of the unpaid assessments shown thereon. Any
     such excess which cannot be promptly collected from the former
     unit owner may be reassessed by the council as a common expense
     to be collected from all of the unit owners, including the
     purchaser, his successors and assigns.

                              ARTICLE VIII.
                              MISCELLANEOUS

        Section 801.  Insurance.--The council shall, if required by
     the declaration, the code of regulations or by a majority of the
     unit owners, insure the building against loss or damage by fire
     and such other hazards as shall be required or requested,
     without prejudice to the right of each unit owner to insure his
     own unit for his own benefit. The premiums for such insurance on
     the building shall be deemed common expenses.
        Section 802.  Repair or Reconstruction.--Except as
     hereinafter provided, damage to or destruction of the building
     or of one or more of several buildings which comprise the
     property shall be promptly repaired and restored by the council
     using the proceeds of insurance held by the council, if any, for
     that purpose, and the unit owners directly affected thereby
     shall be liable for assessment for any deficiency in proportion
     to their respective undivided ownership of the common elements:
     Provided, however, That if there is substantially total
     destruction of the building or of one or more of several
     buildings which comprise the property, or if seventy-five per
     cent of the unit owners directly affected thereby duly resolve
     not to proceed with repair or restoration, then, and in that
     event, the salvage value of the property or of the substantially
     destroyed building or buildings shall be subject to partition at
     the suit of any unit owner directly affected thereby, in which
     event the net proceeds of sale, together with the net proceeds
     of insurance policies held by the council, if any, shall be
     considered as one fund and shall be divided among all the unit
     owners directly affected thereby in proportion to their
     respective undivided ownership of the common elements, after
     discharging, out of the respective shares of unit owners
     directly affected thereby, to the extent sufficient for the
     purpose, all liens against the units of such unit owners.
        Section 803.  Eminent Domain.--Whenever all or part of the
     common elements shall be taken, injured or destroyed by eminent
     domain, each unit owner shall be entitled to notice thereof and
     to participate in the proceedings incident thereto, but in any
     proceeding for the determination of damages, such damages shall
     be determined for such taking, injury or destruction as a whole
     and not for each unit owner's interest therein. After such
     determination each unit owner shall be entitled to a share in
     the damages in the same proportion as his individual interest in
     the common elements.
        Section 804.  Severability.--If any provision of this act, or
     any section, sentence, clause, phrase or word, or the
     application thereof in any circumstance is held invalid, the
     validity of the remainder of the act and of the application of
     any such provision, section, sentence, clause, phrase or word in
     any other circumstances, shall not be affected thereby.
        Section 805.  Effective Date.--This act shall take effect
     immediately.