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Conveyance or encumbrance of common elements - 68 Pa. Cons. Stat. § 3318

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     § 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 or other voluntary
     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.
     (Dec. 18, 1992, P.L.1279, No.168, eff. 45 days)

        1992 Amendment.  Act 168 added section 3318.
        Cross References.  Section 3318 is referred to in sections
     3302, 3319 of this title.

Last modified: November 27, 2007