|
Purchasers of land from a judicial or tax sale take the property subject to any restrictive covenants or easements.
Locust Lake Village Property Owners Ass’n v. Wengerd, 899 A.2d 1193 (Pa. Cmwlth. 2006).
In a tax sale, Landowners purchased twenty-four units in a planned community. The Association thereafter attempted to collect dues and fees from the Landowners. The Landowners refused to pay these fees, however, arguing that the restrictive covenants and easements were extinguished through the tax sale process. The Association argued that the Uniform Planned Community Act (UPCA) gave it the power to collect fees from unit owners, and the covenants running with the land were not extinguished because the property was bought at judicial and/or tax sale. The Court of Common Pleas granted the Association’s motion for summary judgment and awarded it costs and fees. Landowners appealed, arguing that properties at a judicial sale are sold free and clear of all “estates” and that restrictive covenants are included within the meaning of estates.
The Commonwealth Court affirmed the trial court and concluded that covenants and easements do not fall within the definition of “estate” because the interests are non-possessory. Furthermore, the statute did not expressly provide for the extinguishment of covenants and easements. Therefore, a purchaser at a judicial sale takes an interest in the land subject to a covenant or easement.
Landowners also argued that they did not have rights over the subdivision’s common elements because their tax claim deeds did not refer to the subdivision plan. The Court rejected this argument, stating that purchasers must perform due diligence and are charged with knowledge of everything that is discoverable through an examination of the records. Here, the chain of title included reference to an owners’ association.
Finally, Commonwealth Court pointed out that planned residential communities are dependent on the collection of dues and fees. Since Landowners had the right to use the common areas of the community, they were responsible to pay the requisite dues and fees.
DISCLAIMER:
This site is designed to provide summary review of selected Pennsylvania and Federal Court decisions related to land use and land use controls. The information contained herein, although produced by professionals, is not intended to render any legal service. Nor should the materials herein be utilized as a substitute for professional services. If legal advice or other expert assistance is required, the service of an attorney or other professional should be sought. DCED makes no representations, warranties or guarantees as to the accuracy, completeness or suitability of the information provided herein.
Back to Top |
