Security Instruments in Pennsylvania

Overview

Pricing

• Preparation
• Recording
• Taxes -
  • No Mortgage Tax
  • The State Transfer Tax is always 1% of the sales price. In addition, there is a Local Transfer Tax which varies from 1% to 4% of the sales price based upon the location.

Duration

• Mortgages -- Presumption of payment after 20 years after maturity; title then insurable if maturity date is stated in or can be calculated from the mortgage.

Satisfaction

Security Instruments in Pennsylvania are satisfied by recording a document which typically titled as a Satisfaction or Satisfaction Piece. In prior decades, security instruments were satisfied by a stamp and signature from a representative of the lender coming into the land records office and physically stamping and signing that a security instrument was paid in full in the margin of the first page of the recorded mortgage. Many lenders will accidentally recorded a Release of Mortgage instead of a Satisfaction when a mortgage has been paid in full.

Trustees

Pennsylvania only uses mortgage and not deeds of trust, so no trustee is required on any security instruments.

Cross-References

• Main Subject
• State
  • Related Subject 1 in State
  • Related Subject 2 in State