68 Pa.C.S. § 3304
Transfer of special declarant rights
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Statutory text
(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:
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.
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.
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:
the declarant ceases to have any special declarant rights; and
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:
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.
A successor to any special declarant right, other than a successor described in paragraph
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.
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.
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.
Synced from the Florida Legislature’s official site. Verify the current version before citing.
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Reference only — not legal advice. Verify current text at the official state legislature website before citing. Printed from Common Elements (July 4, 2026).