HB 1840 — An Act amending Title 68 (Real and Personal Property) of the Pennsylvania Consolidated Statutes, in protection of purchasers, further providing for public offering statement and general provisions and for resales of units; in protection of cooperative interest purchasers, further providing for public offering statement and general provisions and for resales of cooperative interests; and, in protection of purchasers, further providing for public offering statement and general provisions and for resales of units.

PRIOR PRINTER'S NO.

2086 THEPRINTER'S GENERALNO. ASSEMBLY OF PENNSYLVANIA HOUSE BILL Session of No.

2191 THE GENERAL ASSEMBLY OF PENNSYLVANIA HOUSE BILL Session of No.

BROWN, CIRESI, GAYDOS, HELM, SEPTEMBERM. 8, 2021NELSON, RADER, RYAN, SILVIS AND SMITH, REFERRED TO COMMITTEE ON URBAN AFFAIRS, SEPTEMBER 8, 2021 AN ACT Amending Title 68 (Real and Personal Property) of the Pennsylvania Consolidated Statutes, in protection of purchasers, further providing for public offering statement and general provisions and for resales of units;

inMACKENZIE, protectionN. of cooperative interest purchasers, further providing for public offering statement and general provisions and for resales of cooperative interests;

and,NELSON, inRADER, protectionRYAN, ofSILVIS, purchasers,SMITH furtherAND providingNEILSON, forSEPTEMBER public8, units.ng2021 statementAS andREPORTED generalFROM provisionsCOMMITTEE andON forURBAN resalesAFFAIRS, ofHOUSE TheOF GeneralREPRESENTATIVES, AssemblyAS AMENDED, SEPTEMBER 28, 2021 AN ACT Amending Title 68 (Real and Personal Property) of the CommonwealthPennsylvania Consolidated Statutes, in protection of Pennsylvaniaand herebygeneral enactsprovisions asand follows:for resales of units;

intatement protection of cooperative interest purchasers, further providing for public offering statement and general provisions and for resales of cooperative interests;

and, in protection of purchasers, further providing for public offering statement and general provisions and for resales of units.

The General Assembly of the Commonwealth of Pennsylvania hereby enacts as follows:

(a) General rule.--Except as provided in subsection (b), a declarant shall furnish to a purchaser, prior to the day of the <-- execution of any contract for sale of a unit, a public offering statement.

The public offering statement must BE CURRENT AND <-- contain or fully and accurately disclose:

"I have received a copy of the bylaws GOVERNING <-- DOCUMENTS of the community to review and I understand the bylaws.

(a) Information supplied by unit owner.--In the event of a resale of a unit by a unit owner other than a declarant, the unit owner shall furnish to a purchaser [before], prior to the <-- day of the execution of any contract for sale of a unit, [or 20210HB1840PN2086<-- 20210HB1840PN2191 - 2 - otherwise before conveyance,] a copy of the declaration (other <-- than the plats and plans), the bylaws, the rules or regulations of the association and a CURRENT certificate containing:

<-- * * * (18) A statement, in a font four times greater than the font in any other statement in the certificate, which shall be acknowledged and signed by the purchaser and in the following form:

"I have received a copy of the bylaws GOVERNING <-- DOCUMENTS of the community to review and I understand the bylaws.

Except for the actual costs incurred to furnish the certificate and the copies of the necessary 20210HB1840PN208620210HB1840PN2191 - 3 - documents, the association may not impose a fee on a unit owner for the certificate and the copies of the necessary documents to comply with the deadline specified under this subsection.

IF THE <-- ASSOCIATION FAILS TO FURNISH THE CERTIFICATE AND THE COPIES OF THE NECESSARY DOCUMENTS BY THE DEADLINE SPECIFIED UNDER THIS SUBSECTION, THE PURCHASER SHALL NOT BE SUBJECT TO ANY FEES IMPOSED BY THE ASSOCIATION.

(a) General rule.--Except as provided in subsection (b), a declarant shall furnish to a purchaser, prior to the day of the <-- execution of any contract for sale of a unit, a public offering statementstatement. must contain or fully and accurately disclose:

THE PUBLIC OFFERING STATEMENT must BE CURRENT AND <-- contain or fully and accurately disclose:

"I have received a copy of the bylaws GOVERNING <-- DOCUMENTS of the community to review and I understand the bylaws.

I understand that the bylaws and declaration of this community are the governing documents and a binding contract between myself and 20210HB1840PN2191 - 4 - the community, and I must abide by all bylaws, rules and regulations outlined in the documents.

I understand that disputes, concerns or legal issues that may arise in my time as 20210HB1840PN2086 - 4 - a unit owner would, in most cases, be civil legal concerns;

waiver), a proprietary lessee shall furnish to a purchaser [before], prior to the day <-- of the execution of any contract of sale of a cooperative interest[ or, if there is no contract of sale, before the time <-- of conveyance a copy of the declaration (other than the plats and plans)], the bylaws and the rules or regulations of the <-- association, including all amendments to such documents to the date of their delivery to the purchaser, and a CURRENT <-- certificate containing:

* * * (22) A statement, in a font four times greater than the 20210HB1840PN2191 - 5 - font in any other statement in the certificate, which shall be acknowledged and signed by the purchaser and in the following form:

"I have received a copy of the bylaws GOVERNING <-- DOCUMENTS of the community to review and I understand the bylaws.

I 20210HB1840PN2086 - 5 - understand that the bylaws and declaration of this community are the governing documents and a binding contract between myself and the community, and I must abide by all bylaws, rules and regulations outlined in the documents.

A proprietary lessee providing a certificate pursuant to subsection (a) is not liable to the purchaser for any erroneous 20210HB1840PN2191 - 6 - information provided by the association and included in or delivered with the certificate.

IF THE ASSOCIATION FAILS TO <-- FURNISH THE DOCUMENTS AND THE CERTIFICATE BY THE DEADLINE SPECIFIED UNDER THIS SUBSECTION, THE PURCHASER SHALL NOT BE SUBJECT TO ANY FEES IMPOSED BY THE ASSOCIATION.

Section 5402(a) introductory paragraph of Title 68 is amended and the subsection is amended by adding a 20210HB1840PN2086 - 6 - paragraph to read:

(a) General rule.--Except as provided in subsection (b), a declarant shall furnish to a purchaser, prior to the day of the <-- execution of any contract for sale of a unit, a public offering statementstatement. must contain or fully and accurately disclose:

THE PUBLIC OFFERING STATEMENT must BE CURRENT AND <-- contain or fully and accurately disclose:

"I have received a copy of the bylaws GOVERNING <-- DOCUMENTS of the community to review and I understand the bylaws.

I understand that disputes, concerns or legal issues that may arise in 20210HB1840PN2191 - 7 - my time as a unit owner would, in most cases, be civil legal concerns;

Section 5407(a) introductory paragraph and (b) of Title 68 are amended and subsection (a) is amended by adding a 20210HB1840PN2086 - 7 - paragraph to read:

(a) Information supplied by unit owner.--In the event of a resale of a unit by a unit owner other than a declarant, the unit owner shall furnish to a purchaser [before], prior to the <-- day of the execution of any contract for sale of a unit [or <-- otherwise before conveyance], a copy of the declaration other <-- than the plats and plans, the bylaws, the rules or regulations of the association and a CURRENT certificate containing:

<-- * * * (18) A statement, in a font four times greater than the font in any other statement in the certificate, which shall be acknowledged and signed by the purchaser and in the following form:

"I have received a copy of the bylaws GOVERNING <-- DOCUMENTS of the community to review and I understand the bylaws.

I also 20210HB1840PN2191 - 8 - understand that this community is governed by an elected board of unit owners.

except in extreme circumstances of fraud and abuse, are otherwise noted as applicable provisions for complaints to the Bureau of Consumer Protection in the Office of Attorney General or have specific stated penalties." 20210HB1840PN2086 - 8 - (b) Information supplied by association.--The association, within ten days after a request by a unit owner, shall furnish a certificate containing the information under subsection (a) and copies of documents necessary to enable the unit owner to comply with this section.

IF THE <-- ASSOCIATION FAILS TO FURNISH THE CERTIFICATE AND THE COPIES OF THE NECESSARY DOCUMENTS BY THE DEADLINE SPECIFIED UNDER THIS SUBSECTION, THE PURCHASER SHALL NOT BE SUBJECT TO ANY FEES IMPOSED BY THE ASSOCIATION.