Snippets from the linked articles are being used in the following summary under the Fair Use Clause of the U.S. Copyright Act, Title 17, Section 107.

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Imagine that you've recently purchased a condo for $100,000. The complex where it's located is about 90% rented, and 10% owner-occupied. The complex's owner struggles, and the whole neighborhood goes up for sale in a foreclosure auction. The new owners dissolve the condo association, since they own all of the rentals, or 90% of the homes in the complex.

This gives the owners permission to sell the entire complex at once, including what used to be condos. Your proceeds from having your home sold out from under you: $33,000. You still owe the rest of your mortgage (~$70,000), but have nowhere to live. Condo owners in Reading, Pennsylvania experienced this nightmare recently, and there is no legal way out for them.

consumerist.com/2012/06/condos-sold-without-owners-permission-for-13-their-value.html



Under Section 3220 of the Pennsylvania Uniform Condominium Act, when a condominium is dissolved, the condo association can put the entire condominium up for sale, regardless of who owns the individual units. So in acquiring control of the condo association, the new majority owner also gained the right to sell homes he didn't own.

http://realestate.aol.com/blog/2012/06/27/this-is-crazy-company-snatches-condos-from-owners/



The online articles about this legal trap say this is not an isolated case, nor is Pennsylvania the only state with this statute.