Pennsylvania Condo Due Diligence Checklist

Where Pennsylvania due diligence deserves the most attention

Reserve Studies and Reserve Funding

Pennsylvania does not require formal reserve studies or mandatory reserve funding. State law (68 Pa.C.S. § 3302(a)(2)) empowers associations to adopt budgets for *“revenues, expenditures and reserves”*, but it imposes no obligation to fund reserves at any set level or to hire a reserve study professional. Disclosure rules (re-sale certificates) do require reporting existing reserves: sellers must disclose *“the amount of any reserves for capital expenditures and any portions of those reserves designated for projects”*.

Structural Inspections and Building Safety

Philadelphia (PM-315): All residential buildings *six stories or more* (or ≥60 ft tall) must undergo periodic exterior safety inspections every 5 years. This ordinance (PM-315, codified 2010) covers facades, balconies, parapets, stairs, and other exterior elements. Inspections must be by a PA-licensed architect or engineer; reports are submitted to the Dept. of Licenses & Inspections (L&I). Any unsafe conditions must be repaired to code.

Insurance Requirements and Insurance-Market Risk

There are no state mandates to cover flood, wind/hurricane, earthquake or wildfire. Those exposures are typically addressed by endorsement or separate policy if desired, but are optional. Flood insurance generally must be purchased by unit owners themselves if in a flood zone. Pennsylvania’s standard homeowners and condo policies can cover wind/hail, but by default a master policy often excludes separate windstorm cover (though the “all-risk” phrase could be read to include wind).

Resale Disclosures and Buyer Cancellation Rights

These documents must be delivered in a single packet (the resale certificate), usually within 10 business days after request. The buyer then has the right to cancel the purchase contract until 5 days after receiving the certificate (or closing, whichever comes first). This rescission period is automatic under PA law, even if not explicitly noted in the sales contract.

Assessments, Special Assessments, and Borrowing

`special_assessment_pending` – Association has scheduled a special assessment that will burden the unit.; `multiple_special_assessments` – History of frequent special assessments in recent budgets.; `high_emergency_assessment` – Unusually large emergency fees recently charged.; `assessment_increase_exceeds_threshold` – Year-over-year dues increase >10–20%.

Association Liens, Foreclosure, and Super-Lien Risk

`association_lien_exists` – Association has a recorded lien for unpaid dues (check title commitment).; `lien_not_prioritized` – The lender’s mortgage predates association liens by more than due-dates (common, but note the 6-month super-lien).; `delinquency_rate_high` – Association financials show >10% delinquent dues (risk of enforcement action).; `association_foreclosure_action` – Lawsuit filed by association for foreclosure or collection.