2023 Pennsylvania Consolidated & Unconsolidated Statutes › Title 68 - REAL AND PERSONAL PROPERTY › Chapter 33 - Management of the Condominium › Section 3318 - Conveyance or encumbrance of common elements

§ 3318. Conveyance or encumbrance of common elements.
(a) General rule.--
Portions of the common elements may be conveyed or subjected to a security interest by the association if the persons entitled to cast at least 80% of the votes in the association, including 80% of the votes allocated to units not owned by a declarant or any larger percentage the declaration specifies, agree to that action, but all the owners of units to which any limited common element is allocated must agree in order to convey that limited common element or subject it to a security interest. The declaration may specify a smaller percentage only if all of the units are restricted exclusively to nonresidential uses. Proceeds of the sale are an asset of the association.
(b) Required agreement.--
An agreement to convey common elements or subject them to a security interest must be evidenced by the execution of an agreement, or ratifications thereof, in the same manner as a deed, by the requisite number of unit owners. The agreement must specify a date after which the agreement will be void unless recorded before that date. The agreement and all ratifications thereof must be recorded in every county in which a portion of the condominium is situated and is effective only upon recordation.
(c) Association powers.--
The association on behalf of the unit owners may contract to convey common elements or subject them to a security interest, but the contract is not enforceable against the association until approved pursuant to subsections (a) and (b). Thereafter, the association has all powers necessary and appropriate to effect the conveyance or encumbrance, including the power to execute deeds or other instruments.
(d) Other conveyances or encumbrances void.--
Any purported conveyance, encumbrance, judicial sale, tax sale or other voluntary or involuntary transfer of common elements, unless made pursuant to this section, is void.
(e) Right of access and support.--
A conveyance or encumbrance of common elements pursuant to this section does not deprive any unit of its right of access and support.
(f) Preexisting encumbrances.--
Unless the declaration otherwise provides, a conveyance or encumbrance of common elements pursuant to this section does not affect the priority or validity of preexisting encumbrances.
(g) Limitation.--
Common elements which may be conveyed or encumbered pursuant to this section shall not include any land, buildings or other facilities:
(1) containing or comprising one or more units; or
(2) necessary for the use or operation of one or more units.
(h) Subject to declaration.--
An interest in common elements that is subject to the declaration prior to conveyance or encumbrance shall remain subject to the declaration following the conveyance or encumbrance, unless the deed or agreement to convey the common elements or subject them to a security interest specifically provides otherwise.
(Dec. 18, 1992, P.L.1279, No.168, eff. 45 days; Oct. 19, 2018, P.L.551, No.84, eff. 60 days)
2018 Amendment.
Act 84 amended subsec. (d) and added subsec. (h).
1992 Amendment.
Act 168 added section 3318.
Cross References.
Section 3318 is referred to in sections 3302, 3319 of this title.