2010 Pennsylvania Code
Title 68 - REAL AND PERSONAL PROPERTY
Chapter 32 - Creation, Alteration and Termination of Condominiums
3220 - Termination of condominium.

     § 3220.  Termination of condominium.
        (a)  Number of votes required.--Except in the case of a
     taking of all the units by eminent domain (section 3107), a
     condominium may be terminated only by agreement of unit owners
     of units to which at least 80% of the votes in the association
     are allocated, or any larger percentage the declaration
     specifies. The declaration may specify a smaller percentage only
     if all of the units in the condominium are restricted
     exclusively to nonresidential uses.
        (b)  Execution and recording agreement and ratifications.--An
     agreement of unit owners to terminate a condominium must be
     evidenced by their execution of a termination agreement or
     ratifications thereof, in the same manner as a deed, by the
     requisite number of unit owners who are owners of record as of
     the date preceding the date of recordation of the termination
     agreement. The termination agreement must specify the date it
     was first executed or ratified by a unit owner. The termination
     agreement will become null and void unless it is recorded on or
     before the earlier of:
            (1)  The expiration of one year from the date it was
        first executed or ratified by a unit owner.
            (2)  Such date as shall be specified in the termination
        agreement.
     If, pursuant to a termination agreement, the real estate
     constituting the condominium is to be sold following
     termination, the termination agreement must set forth the terms
     of the sale. A termination agreement and all ratifications
     thereof must be recorded in every county in which a 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 index and the
     grantee index. A termination agreement is effective only upon
     recordation.
        (c)  Status if real estate sold.--The association, on behalf
     of the unit owners, may contract for the sale of the
     condominium, but the contract is not binding on the unit owners
     until approved pursuant to subsections (a) and (b). If the real
     estate constituting the condominium is to be sold following
     termination, title to that real estate, upon termination, vests
     in the association as trustee for the holders of all interests
     in the units. Thereafter, the association has all powers
     necessary and appropriate to effect the sale. Until the sale has
     been concluded and the proceeds thereof distributed, the
     association continues in existence with all powers it had before
     termination. Proceeds of the sale must be distributed to unit
     owners and lienholders as their interests may appear, in
     proportion to the respective interests of unit owners as
     provided in subsection (f). Unless otherwise specified in the
     termination agreement, as long as the association holds title to
     the real estate, each unit owner and his successors in interest
     have an exclusive right to occupancy of the portion of the real
     estate that formerly constituted his unit. During the period of
     that occupancy, each unit owner and his successors in interest
     remain liable for all assessments and other obligations imposed
     on unit owners by this subpart or the declaration.
        (d)  Status if real estate not sold.--If the real estate
     constituting the condominium is not to be sold following
     termination, title to the real estate, upon termination, vests
     in the unit owners as tenants in common in proportion to their
     respective interests as provided in subsection (f) and liens on
     the units shift accordingly. While the tenancy in common exists,
     each unit owner and his successors in interest have an exclusive
     right to occupancy of the portion of the real estate that
     formerly constituted his unit.
        (e)  Distribution of assets of association.--Following
     termination of the condominium, the proceeds of any sale of real
     estate, together with the assets of the association, shall be
     held by the association as trustee or unit owners and holders of
     liens on the units as their interests may appear. Following
     termination, creditors of the association holding liens on the
     units which were recorded, filed of public record or otherwise
     perfected before termination may enforce those liens in the same
     manner as any lienholder. All other creditors of the association
     are to be treated as if they had perfected liens on the units
     immediately before termination.
        (f)  Respective interests of unit owners.--The respective
     interests of unit owners referred to in subsections (c), (d) and
     (e) are as follows:
            (1)  Except as provided in paragraph (2), the respective
        interests of unit owners are the fair market values of their
        units, limited common elements and common element interests
        immediately before the termination, as determined by one or
        more independent appraisers selected by the association. The
        decision of the independent appraisers shall be distributed
        to the unit owners and becomes final unless disapproved
        within 30 days after distribution by unit owners of units to
        which 25% of the votes in the association are allocated. The
        proportion of any unit owner's interest to that of all unit
        owners is determined by dividing the fair market value of
        that unit owner's unit and common element interest by the
        total fair market values of all the units and common
        elements.
            (2)  If any unit or any limited common element is
        destroyed to the extent that an appraisal of the fair market
        value thereof prior to destruction cannot be made, the
        interests of all unit owners are their respective common
        element interests immediately before the termination.
        (g)  Effect of foreclosure or enforcement of lien.--Except as
     provided in subsection (h), foreclosure or enforcement of a lien
     or encumbrance against the entire condominium does not of itself
     terminate the condominium, and foreclosure or enforcement of a
     lien or encumbrance against a portion of the condominium, other
     than withdrawable real estate, does not withdraw that portion
     from the condominium. Foreclosure or enforcement of a lien or
     encumbrance against withdrawable real estate does not of itself
     withdraw that real estate from the condominium but the person
     taking title thereto has the right to require from the
     association, upon request, an amendment excluding the real
     estate from the condominium.
        (h)  Exclusion from condominium upon foreclosure.--If a lien
     or encumbrance against a portion of the real estate comprising
     the condominium has priority over the declaration and if the
     lien or encumbrance has not been partially released, the parties
     foreclosing the lien or encumbrance may, upon foreclosure,
     record an instrument excluding the real estate subject to that
     lien or encumbrance from the condominium.
        (i)  Ineffectiveness of termination provision.--In the case
     of a declaration that contains no provision expressly providing
     for a means of terminating the condominium other than a
     provision providing for a self-executing termination upon a
     specific date or upon the expiration of a specific time period,
     such termination provision shall be deemed ineffective if no
     earlier than five years before the date the condominium would
     otherwise be terminated owners of units to which at least 80% of
     the votes in the condominium are allocated vote that the self-
     executing termination provision shall be annulled, in which
     event the self-executing termination provision shall have no
     force or effect.
     (Dec. 18, 1992, P.L.1279, No.168, eff. 45 days; Nov. 30, 2004,
     P.L.1509, No.191, eff. 60 days)

        2004 Amendment.  Act 191 added subsec. (i).
        Cross References.  Section 3220 is referred to in sections
     3102, 3219, 3301, 3303, 3312 of this title.