2010 Pennsylvania Code
Title 68 - REAL AND PERSONAL PROPERTY
Chapter 41 - General Provisions
4103 - Definitions.

     § 4103.  Definitions.
        Subject to additional definitions contained in subsequent
     provisions of this subpart which are applicable to specific
     provisions of this subpart, the following words and phrases when
     used in this subpart and in the declaration and bylaws shall
     have the meanings given to them in this section unless the
     context clearly indicates otherwise:
        "Affiliate of a declarant."  Any person who controls, is
     controlled by or is under common control with a declarant.
            (1)  A person "controls" a declarant if the person:
                (i)  is a general partner, officer, director or
            employer of the declarant;
                (ii)  directly or indirectly or acting in concert
            with one or more other persons, or through one or more
            subsidiaries, owns, controls, holds with power to vote or
            holds proxies representing more than 20% of the voting
            interest in the declarant;
                (iii)  controls in any manner the election of a
            majority of the directors of the declarant; or
                (iv)  has contributed more than 20% of the capital of
            the declarant.
            (2)  A person "is controlled by" a declarant if the
        declarant:
                (i)  is a general partner, officer, director or
            employer of the person;
                (ii)  directly or indirectly or acting in concert
            with one or more other persons, or through one or more
            subsidiaries, owns, controls, holds with power to vote or
            holds proxies representing more than 20% of the voting
            interest in the person;
                (iii)  controls in any manner the election of a
            majority of the directors of the person; or
                (iv)  has contributed more than 20% of the capital of
            the person.
            (3)  Control does not exist if the powers described in
        paragraph (1) or (2) are held solely as security for an
        obligation and are not exercised.
        "Allocated interests."  The common expense liability and the
     ownership interest and votes in the association allocated to
     each cooperative interest.
        "Association" or "proprietary lessees' association."  The
     proprietary lessees' association organized under section 4301
     (relating to organization of association).
        "Common elements."  All portions of a cooperative other than
     the units.
        "Common expense liability."  The liability for common
     expenses allocated to each cooperative interest pursuant to
     section 4207 (relating to allocation of ownership interests,
     votes and common expense liabilities).
        "Common expenses."  Expenditures made by or financial
     liabilities of the association, together with any allocations to
     reserves.
        "Conversion building."  A building that, at any time before
     the conversion notice date with respect to a cooperative in
     which that building is located, was occupied wholly or partially
     by persons other than purchasers and persons who occupy with the
     consent of purchasers.
        "Conversion notice."  The notice to be given to certain
     tenants or subtenants by the terms of section 4412(a) (relating
     to cooperatives containing conversion buildings).
        "Conversion notice date."  The date on which the notice is
     placed in the United States mail or is delivered to the unit
     leased by the recipient, depending upon whether the conversion
     notice is mailed or hand delivered.
        "Cooperative."  Real estate owned by an association, each of
     whose members is entitled, by virtue of his ownership interest
     in the association, to exclusive possession of a unit.
        "Cooperative interest."  An ownership interest in the
     association coupled with a possessory interest in a unit under a
     proprietary lease. For the purposes of this subpart, a declarant
     is treated as the owner of any cooperative interests or
     potential cooperative interests to which allocated interests
     have been allocated pursuant to section 4207 (relating to
     allocation of ownership interests, votes and common expense
     liabilities) until that cooperative interest has been created
     and conveyed to another person.
        "Declarant."  Any person or group of persons acting in
     concert who:
            (1)  as part of a common promotional plan, offers to
        dispose of his or its cooperative interest not previously
        disposed of; or
            (2)  reserves or succeeds to any special declarant right.
        "Declaration."  Any instruments, however denominated, that
     create a cooperative and any amendments to those instruments.
        "Development rights."  Any right or combination of rights
     reserved by a declarant in the declaration to:
            (1)  add real estate to a cooperative;
            (2)  create units, common elements or limited common
        elements within a cooperative;
            (3)  subdivide units or convert units into common
        elements; or
            (4)  withdraw real estate from a cooperative.
        "Dispose" or "disposition."  A voluntary transfer to a
     purchaser of any legal or equitable interest in a cooperative
     interest. The term does not include the creation, transfer,
     satisfaction or release of a security interest.
        "Executive board."  The body, regardless of name, designated
     in the declaration to act on behalf of the association.
        "Identifying number."  A symbol or address that identifies
     only one unit in a cooperative.
        "Leasehold cooperative."  A cooperative in which all or a
     portion of the real estate is subject to a lease, the expiration
     or termination of which will terminate the cooperative or reduce
     its size.
        "Limited common element."  A portion of the common elements
     allocated by the declaration or by operation of section 4202(2)
     or (4) (relating to unit boundaries) for the exclusive use of
     one or more but fewer than all of the units.
        "Limited equity cooperative."  A cooperative whose
     declaration and bylaws impose a restriction or limitation, in a
     specified amount or in an amount determined pursuant to a
     specified formula, upon the consideration that may be paid to
     the transferor of a cooperative interest. The formula may not
     include the fair market value of the cooperative interest as a
     factor in establishing the restriction or limitation.
        "Limited equity cooperative association."  An association for
     a limited equity cooperative.
        "Low-income and moderate-income persons."  Persons who are
     members of households and whose incomes are less than 80% of the
     median household income in the area which the cooperative is
     located, as established by the United States Department of
     Housing and Urban Development or a successor organization, for
     the smallest geographic area which includes the cooperative and
     for which such income data is established by such organization.
        "Master association."  An organization described in section
     4219 (relating to master associations), whether or not it is
     also an association described in section 4301 (relating to
     organization of association).
        "Offer" or "offering."  Any advertisement, inducement,
     solicitation or attempt to encourage any person to acquire any
     interest in a cooperative interest, other than as security for
     an obligation. An advertisement in a newspaper or other
     periodical of general circulation or in any broadcast medium to
     the general public of a cooperative not located in this
     Commonwealth is not an offer or offering if the advertisement
     states that an offer or offering may be made only in compliance
     with the law of the jurisdiction in which the cooperative is
     located.
        "Original lease termination date."  The date on which the
     lease or sublease of a residential tenant or subtenant in
     possession of a unit in a conversion building will expire by the
     terms of such lease or sublease after taking into account any
     renewal or extension rights that may have been exercised prior
     to the conversion notice date.
        "Person."  A natural person, corporation, business trust,
     estate, trust, general or limited partnership, association,
     joint venture, government, governmental subdivision or agency,
     other legal or commercial entity or any combination of the
     foregoing. In the case of a land trust, the term means the
     beneficiary of the trust rather than the trust or the trustee.
        "Proprietary lease."  An agreement with the association
     pursuant to which a proprietary lessee has a possessory interest
     in a unit.
        "Proprietary lessee."  A person who owns a cooperative
     interest, other than as security for an obligation, and the
     declarant with respect to cooperative interests or potential
     cooperative interests to which allocated interests have been
     allocated pursuant to section 4207 (relating to allocation of
     ownership interests, votes and common expense liabilities) until
     that cooperative interest has been created and conveyed to
     another person.
        "Purchaser."  Any person, other than a declarant or a person
     in the business of selling cooperative interests for his own
     account, who, by means of a disposition, acquires or contracts
     to acquire a cooperative interest other than as security for an
     obligation.
        "Real estate."  Any fee, leasehold or other estate or
     interest in, over or under land, including structures, fixtures
     and other improvements and interests which by custom, usage or
     law pass with a conveyance of land though not described in the
     contract of sale or instrument of conveyance. The term includes
     parcels with or without upper or lower boundaries and spaces
     that may be filled with air or water.
        "Residential purposes."  Use for dwelling or recreational
     purposes or both.
        "Residential tenant" or "residential subtenant."  A tenant or
     subtenant, respectively, who is a natural person lawfully
     occupying real estate for residential use.
        "Security interest."  An interest in real or personal
     property created by contract or conveyance which secures payment
     or performance of an obligation. The term includes a mortgage,
     deed of trust, trust deed, security deed, contract for deed,
     land sales contract, lease intended as security, security
     agreement, assignment of lease or rents intended as security,
     pledge of an ownership interest in an association and any other
     consensual lien or title retention contract intended as security
     for an obligation.
        "Special declarant rights."  Rights reserved for the benefit
     of a declarant to:
            (1)  Complete improvements described in the public
        offering statement (section 4403(a)(2)).
            (2)  Exercise any development right (section 4209).
            (3)  Maintain sales offices, management offices, signs
        advertising the cooperative and models (section 4214).
            (4)  Use easements through the common elements for the
        purpose of making improvements within the cooperative or
        within real estate which may be added to the cooperative
        (section 4215).
            (5)  Make the cooperative part of a larger cooperative or
        group of cooperatives (section 4220).
            (6)  Make the cooperative subject to a master association
        (section 4219).
            (7)  Appoint or remove any officer of the association or
        any master association or any executive board member during
        any period of declarant control (section 4303(d)).
        "Time share."  A right to occupy a unit or any of several
     units during five or more separated time periods over a period
     of at least five years, including renewal options, whether or
     not coupled with an estate or interest in a cooperative or a
     specified portion thereof.
        "Unit."  A physical portion of the cooperative designated for
     separate occupancy under a proprietary lease.

        Cross References.  Section 4103 is referred to in sections
     4102, 4205, 4304, 7302 of this title; section 8401 of Title 53
     (Municipalities Generally).