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Transfer of special declarant rights - 68 Pa. Cons. Stat. § 3304

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     § 3304.  Transfer of special declarant rights.
        (a)  Execution and recording instrument of transfer.--No
     special declarant rights (section 3103) created or reserved
     under this subpart may be transferred except by an instrument
     evidencing the transfer recorded in every county in which any
     portion of the condominium is located in the same records as are
     maintained for the recording of deeds of real property and shall
     be indexed in the name of the condominium in both the grantor
     and grantee index. The instrument is not effective unless
     executed by the transferee.
        (b)  Liability of declarant following transfer.--Upon
     transfer of any special declarant right, the liability of a
     transferor declarant is as follows:
            (1)  A transferor is not relieved of any obligation or
        liability arising before the transfer and remains liable for
        warranty obligations imposed upon him by this subpart. Lack
        of privity does not deprive any unit owner of standing to
        bring an action to enforce any obligation of the transferor.
            (2)  If a successor to any special declarant right is an
        affiliate of a declarant (section 3103), the transferor is
        jointly and severally liable with any successor for the
        liabilities and obligations or liabilities of the successor
        relating to the condominium.
            (2.1)  If a transferor retains any special declarant
        right, but transfers one or more other special declarant
        rights to a successor who is not an affiliate of the
        declarant, the transferor is liable for any obligations or
        liabilities imposed on a declarant by this subpart or by the
        declaration relating to the retained special declarant rights
        arising after the transfer.
            (3)  A transferor has no liability for any act or
        omission or any breach of a contractual or warranty
        obligation arising from the exercise of a special declarant
        right by a successor declarant who is not an affiliate of the
        transferor and to whom the special declarant right has not
        theretofore been assigned.
        (c)  Rights of purchaser in foreclosure, etc. proceedings.--
     Unless otherwise provided in a mortgage instrument or deed of
     trust, in case of foreclosure of a mortgage, sale by a trustee
     under a deed of trust or sale under 11 U.S.C. (relating to
     bankruptcy) or receivership proceedings of any units owned by a
     declarant in the condominium or additional real estate in a
     flexible condominium, a person acquiring title to all the units
     being foreclosed or sold, but only upon his request, succeeds to
     all special declarant rights related to such units or additional
     real estate, or only to any rights reserved in the declaration
     pursuant to section 3217 (relating to declarant's offices,
     models and signs) and held by that declarant to maintain models,
     sales offices and signs. The judgment or instrument conveying
     title shall provide for transfer of only the special declarant
     rights requested.
        (d)  Rights of declarant following foreclosure, etc.
     proceedings.--Upon foreclosure, tax sale, judicial sale, sale by
     a trustee under a deed of trust or sale under 11 U.S.C.
     (relating to bankruptcy) or receivership or similar proceedings
     of all units and other real estate in a condominium owned by a
     declarant:
            (1)  the declarant ceases to have any special declarant
        rights; and
            (2)  the period of declarant control (section 3303(c))
        terminates unless the judgment or instrument conveying title
        provides for transfer of all special declarant rights held by
        that declarant to a successor declarant.
        (e)  Liabilities and obligations of successors.--The
     liabilities and obligations of persons who succeed to special
     declarant rights are as follows:
            (1)  A successor to any special declarant right who is an
        affiliate of a declarant is subject to all obligations and
        liabilities imposed on the transferor by this subpart or by
        the declaration.
            (2)  A successor to any special declarant right, other
        than a successor described in paragraph (3) or (4), who is
        not an affiliate of a declarant is subject to all obligations
        and liabilities imposed by this subpart or the declaration:
                (i)  on a declarant which relate to his exercise or
            nonexercise of special declarant rights; or
                (ii)  on his transferor, other than:
                    (A)  misrepresentations by any previous
                declarant, except to the extent knowingly continued
                or permitted to continue without correcting such
                misrepresentations;
                    (B)  warranty obligations on improvements made by
                any previous declarant or made before the condominium
                was created;
                    (C)  breach of any fiduciary obligation by any
                previous declarant or his appointees to the executive
                board; or
                    (D)  any liability or obligation imposed on the
                transferor as a result of the transferor's acts or
                omissions after the transfer.
            (3)  A successor to only a right reserved in the
        declaration to maintain models, sales offices and signs
        (section 3217), if he is not an affiliate of a declarant, may
        not exercise any other special declarant right and is not
        subject to any liability or obligation as a declarant except
        the obligation to provide a public offering statement and any
        liability arising as a result thereof.
            (4)  A successor to all special declarant rights held by
        his transferor who is not an affiliate of that transferor
        declarant and who succeeded to those rights pursuant to a
        deed in lieu of foreclosure or a judgment or instrument
        conveying title to units under subsection (c) may declare his
        intention in a recorded instrument to hold those rights
        solely for transfer to another person. Thereafter, until
        transferring all special declarant rights to any person
        acquiring title to any unit owned by the successor or until
        recording an instrument permitting exercise of all those
        rights, that successor may not exercise any of those rights
        other than any right held by his transferor to control the
        executive board in accordance with the provisions of section
        3303(c) (relating to executive board members and officers)
        for the duration of any period of declarant control and any
        attempted exercise of those rights is void. So long as a
        successor declarant may not exercise special declarant rights
        under this subsection he is not subject to any liability or
        obligation as a declarant other than liability for the
        successor's acts and omissions under section 3303(c).
        (f)  Limitation on liability of successor.--Nothing in this
     section subjects any successor to a special declarant right to
     any claims against or other obligations of a transferor
     declarant other than claims and obligations arising under this
     subpart or the declaration.
     (Dec. 18, 1992, P.L.1279, No.168, eff. 45 days)

        Cross References.  Section 3304 is referred to in section
     3103 of this title.

Last modified: November 27, 2007