The following words and phrases when used in this subpart and in the declaration and bylaws shall have the meanings given to them in this section unless specifically provided otherwise or unless the context clearly indicates otherwise:

"Additional real estate." Real estate that may be added to a planned community.

"Affiliate of a declarant." Any person who controls, is controlled by or is under common control with a declarant.
(1) A person "controls" a declarant if the person:
(i) is a general partner, officer, director or employer of the declarant;
(ii) directly or indirectly or acting in concert with one or more other persons or through one or more subsidiaries owns, controls, holds with power to vote or holds proxies representing more than 20% of the voting interest in the declarant;
(iii) controls in any manner the election of a majority of the directors of the declarant; or
(iv) has contributed more than 20% of the capital of the declarant.
(2) A person "is controlled by" a declarant if the declarant:
(i) is a general partner, officer, director or employer of the person;
(ii) directly or indirectly or acting in concert with one or more other persons or through one or more subsidiaries owns, controls, holds with power to vote or holds proxies representing more than 20% of the voting interest in the person;
(iii) controls in any manner the election of a majority of the directors of the person; or
(iv) has contributed more than 20% of the capital of the person. (3) Control does not exist if the powers described in paragraphs (1) and (2) are held solely as security for an obligation and are not exercised.

"Allocated interests." The common expense liability and votes in the association allocated to each unit.

"Association" or "unit owners' association." The unit owners association organized under section 5301 (relating to organization of unit owners' association).

"Common elements." Common facilities or controlled facilities.

"Common expense liability." The liability for common expenses allocated to each unit under section 5208 (relating to allocation of votes and common expense liabilities).

"Common expenses." Expenditures made by or financial liabilities of the association, together with any allocations to reserves. The term includes general common expenses and limited common expenses.

"Common facilities." Any real estate within a planned community which is owned by the association or leased to the association. The term does not include a unit.

"Condominium." Real estate, portions of which are designated for separate ownership and the remainder of which is designated for common ownership solely by the owners of those portions. Real estate is not a condominium unless the undivided interests in the portions of the real estate designated for common ownership are vested in the unit owners.

"Controlled facilities." Any real estate within a planned community, whether or not a part of a unit, that is not a common facility but is maintained, improved, repaired, replaced, regulated, managed, insured or controlled by the association.

"Conversion building." A building that, at any time before the conversion notice date with respect to the planned community in which the building is located, was occupied wholly or partially by persons other than purchasers and persons who occupy with the consent of purchasers.

"Conversion notice." The notice required to be given to tenants and subtenants by the terms of section 5410(a) (relating to planned communities containing conversion buildings).

"Conversion notice date." The date on which the conversion notice is placed in the United States mail, in the case of mailed notices, or is delivered to the unit leased by the recipient, in the case of hand-delivered notices.

"Convertible real estate." A portion of a flexible planned community not within a building containing a unit, within which additional units, limited common facilities or limited controlled facilities or any combination thereof may be created.

"Cooperative." Real estate owned by a corporation, trust, trustee, partnership or unincorporated association, if the governing instruments of that organization provide that each of the organization's members, partners, stockholders or beneficiaries is entitled to exclusive occupancy of a designated portion of that real estate.

"Declarant."
(1) If a planned community has been created, the term means any of the following:
(i) Any person who has executed a declaration or an amendment to a declaration to add additional real estate. This subparagraph excludes a person holding interest in the real estate solely as security for an obligation; a person whose interest in the real estate will not be conveyed to unit owners; and, in the case of a leasehold planned community, a lessor who possesses no special declarant rights and who is not an affiliate of a declarant who possesses special declarant rights.
(ii) A person who succeeds under section 5304 (relating to transfer of special declarant rights) to any special declarant rights.
(2) If the planned community has not yet been created, the term means any person who offers to dispose of or disposes of the person's interest in a unit to be created and not previously disposed of.
(3) If a declaration is executed by a trustee of a land trust, the term means the beneficiary of the trust.

"Declaration." Any instrument, however denominated, that creates a planned community and any amendment to that instrument.

"Development rights." Any right or combination of rights reserved by a declarant in the declaration:
(1) to add real estate to a planned community;
(2) to create units, common facilities, limited common facilities, controlled facilities or limited controlled facilities within a planned community;
(3) to subdivide units to convert units into common facilities or controlled facilities; or
(4) to withdraw real estate from a planned community.

"Disposition." A voluntary transfer to a purchaser of any legal or equitable interest in a unit or a proposed unit. The term does not include the transfer or release of a security interest.

"Executive board." The body, regardless of name, designated in the declaration to act on behalf of the association.