5103 - Definitions.
§ 5103. Definitions. 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 specifically provided otherwise or unless the context clearly indicates otherwise: "Additional real estate." Real estate that may be added to a planned community. "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 paragraphs (1) and (2) are held solely as security for an obligation and are not exercised. "Allocated interests." The common expense liability and votes in the association allocated to each unit. "Association" or "unit owners' association." The unit owners association organized under section 5301 (relating to organization of unit owners' association). "Common elements." Common facilities or controlled facilities. "Common expense liability." The liability for common expenses allocated to each unit under section 5208 (relating to allocation of votes and common expense liabilities). "Common expenses." Expenditures made by or financial liabilities of the association, together with any allocations to reserves. The term includes general common expenses and limited common expenses. "Common facilities." Any real estate within a planned community which is owned by the association or leased to the association. The term does not include a unit. "Condominium." Real estate, portions of which are designated for separate ownership and the remainder of which is designated for common ownership solely by the owners of those portions. Real estate is not a condominium unless the undivided interests in the portions of the real estate designated for common ownership are vested in the unit owners. "Controlled facilities." Any real estate within a planned community, whether or not a part of a unit, that is not a common facility but is maintained, improved, repaired, replaced, regulated, managed, insured or controlled by the association. "Conversion building." A building that, at any time before the conversion notice date with respect to the planned community in which the 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 required to be given to tenants and subtenants by the terms of section 5410(a) (relating to planned communities containing conversion buildings). "Conversion notice date." The date on which the conversion notice is placed in the United States mail, in the case of mailed notices, or is delivered to the unit leased by the recipient, in the case of hand-delivered notices. "Convertible real estate." A portion of a flexible planned community not within a building containing a unit, within which additional units, limited common facilities or limited controlled facilities or any combination thereof may be created. "Cooperative." Real estate owned by a corporation, trust, trustee, partnership or unincorporated association, if the governing instruments of that organization provide that each of the organization's members, partners, stockholders or beneficiaries is entitled to exclusive occupancy of a designated portion of that real estate. "Declarant." (1) If a planned community has been created, the term means any of the following: (i) Any person who has executed a declaration or an amendment to a declaration to add additional real estate. This subparagraph excludes a person holding interest in the real estate solely as security for an obligation; a person whose interest in the real estate will not be conveyed to unit owners; and, in the case of a leasehold planned community, a lessor who possesses no special declarant rights and who is not an affiliate of a declarant who possesses special declarant rights. (ii) A person who succeeds under section 5304 (relating to transfer of special declarant rights) to any special declarant rights. (2) If the planned community has not yet been created, the term means any person who offers to dispose of or disposes of the person's interest in a unit to be created and not previously disposed of. (3) If a declaration is executed by a trustee of a land trust, the term means the beneficiary of the trust. "Declaration." Any instrument, however denominated, that creates a planned community and any amendment to that instrument. "Development rights." Any right or combination of rights reserved by a declarant in the declaration: (1) to add real estate to a planned community; (2) to create units, common facilities, limited common facilities, controlled facilities or limited controlled facilities within a planned community; (3) to subdivide units to convert units into common facilities or controlled facilities; or (4) to withdraw real estate from a planned community. "Disposition." A voluntary transfer to a purchaser of any legal or equitable interest in a unit or a proposed unit. The term does not include the transfer or release of a security interest. "Executive board." The body, regardless of name, designated in the declaration to act on behalf of the association. "Flexible planned community." A planned community containing withdrawable or convertible real estate or a planned community to which additional real estate may be added or a combination thereof. "General common expenses." All common expenses other than limited common expenses. "Identifying number." A symbol or address that identifies only one unit in a planned community. "Installment sale contract." An executory contract for the purchase and sale of a unit or interest in a unit under which the purchaser is obligated to make more than five installment payments to the seller after execution of the contract and before the time appointed for the conveyance of title to the unit or interest in the unit. "Interval estate." A combination of: (1) an estate for years in a unit, during the term of which title to the unit rotates among the time-share owners thereof, vesting in each of them in turn for periods established by a fixed recorded schedule, with the series thus established recurring regularly until the term expires; coupled with (2) a vested undivided fee simple interest in the remainder in that unit, the magnitude of that interest having been established by the declaration or by the deed creating the interval estate. "Leasehold planned community." A planned community in which all or a portion of the real estate is subject to a lease the expiration or termination of which will terminate the planned community or reduce its size. "Limited common element." A limited common facility or a limited controlled facility. "Limited common expenses." All expenses identified as such under section 5314(c) (relating to assessments for common expenses). "Limited common facility." A portion of the common facilities allocated by or pursuant to the declaration or by the operation of section 5202(2) or (3) (relating to unit boundaries) for the exclusive use of one or more but fewer than all of the units. "Limited controlled facility." A portion of the controlled facilities, other than controlled facilities which are themselves part of a unit, allocated by or pursuant to the declaration or by operation of section 5202(2) or (3) (relating to unit boundaries) for the exclusive use of one or more but fewer than all of the units. "Master association." An organization described in section 5222 (relating to master associations), whether or not it is also an association described in section 5301 (relating to organization of unit owners' association). "Offer" or "offering." Any advertisement, inducement, solicitation or attempt to encourage any person to acquire any interest in a unit other than as security for an obligation. The term does not include an advertisement in a newspaper or other periodical of general circulation or in a broadcast medium to the general public of a planned community not located in this Commonwealth if the advertisement states that an offer or offering may be made only in compliance with the law of the jurisdiction in which the planned community 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 the 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, partnership, association, trust, other entity or any combination thereof. "Planned community." Real estate with respect to which a person, by virtue of ownership of an interest in any portion of the real estate, is or may become obligated by covenant, easement or agreement imposed on the owner's interest to pay any amount for real property taxes, insurance, maintenance, repair, improvement, management, administration or regulation of any part of the real estate other than the portion or interest owned solely by the person. The term excludes a cooperative and a condominium, but a condominium or cooperative may be part of a planned community. For purposes of this definition, "ownership" includes holding a leasehold interest of more than 20 years, including renewal options, in real estate. The term includes nonresidential campground communities. "Purchaser." A person other than a declarant who, by means of a disposition, acquires a legal or equitable interest in a unit, other than either a leasehold interest of less than 20 years, including renewal options, or as security for an obligation. The term includes a person who will become a unit owner in a leasehold planned community upon consummation of the disposition. "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 subtenant." An individual lawfully occupying real estate for residential purposes under a sublease. "Residential tenant." An individual lawfully occupying real estate for residential purposes under a lease. "Special declarant rights." Rights reserved for the benefit of a declarant to: (1) complete improvements indicated on plats and plans filed with the declaration under section 5210 (relating to plats and plans); (2) convert convertible real estate in a flexible planned community under section 5211 (relating to conversion and expansion of flexible planned communities); (3) add additional real estate to a flexible planned community under section 5211; (4) withdraw withdrawable real estate from a flexible planned community under section 5212 (relating to withdrawal of withdrawable real estate); (5) convert a unit into two or more units, common facilities or controlled facilities or into two or more units and common facilities or controlled facilities; (6) maintain offices, signs and models under section 5217 (relating to declarant offices, models and signs); (7) use easements through the common facilities or controlled facilities for the purpose of making improvement within the planned community or within any convertible or additional real estate under section 5218 (relating to easement to facilitate completion, conversion and expansion); (8) cause the planned community to be merged or consolidated with another planned community under section 5223 (relating to merger or consolidation of planned community); (9) make the planned community part of a larger planned community or group of planned communities under sections 5222 (relating to master associations) and 5223 (relating to merger or consolidation of planned community); (10) make the planned community subject to a master association under section 5222 (relating to master associations); or (11) appoint or remove an officer of the association or a master association or an executive board member during any period of declarant control under section 5303 (relating to executive board members and officers). "Structural defects." As used in section 5411 (relating to warranty against structural defects), the term means defects in any structure which is a component of: (1) any unit or common element; or (2) any other portion of a unit or common element constructed, modified, altered or improved by or on behalf of a declarant; any of which reduce the stability or safety of the structure below accepted standards or restrict the normal intended use of the structure and require repair, renovation, restoration or replacement. "Time-share estate." An interval estate or a time-span estate. "Time-span estate." A combination of: (1) an undivided interest in a present estate in fee simple in a unit, the magnitude of that interest having been established by the declaration or by the deed conveying the time-span estate; coupled with (2) the exclusive right to possession and occupancy of that unit during a regularly recurring period designated by the deed or by a recorded document referred to in the deed. "Unit." A physical portion of the planned community designated for separate ownership or occupancy, the boundaries of which are described pursuant to section 5205(5) (relating to contents of declaration; all planned communities) and a portion of which may be designated by the declaration as part of the controlled facilities. "Unit owner." A declarant or other person who owns a unit or a lessee of a unit in a leasehold planned community whose lease expires simultaneously with a lease the expiration or termination of which will remove the unit from the planned community. The term does not include a person having an interest in a unit solely as security for an obligation. "Withdrawable real estate." Real estate that may be withdrawn from a flexible planned community. (Mar. 24, 1998, P.L.206, No.37, eff. 60 days) 1998 Amendment. Act 37 amended the defs. of "special declarant rights" and "structural defects." Cross References. Section 5103 is referred to in section 5102.