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

• Pennsylvania does not have a statutory expiration period.
  • NOTE: Many underwriters have adopted a rule that a mortgage can be cleared in Pennsylvania once 21 years have passed the maturity date of the mortgage. This is based on rule of evidence regarding the presumption of payment and is not statutorily based. It has been adopted as a guideline based on the reduced risk.

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.

Settlement Officer who is a licensed title agent, employee of an underwriter or Pennsylvania licensed attorney who conducted closing or directly supervised closing through which Mortgage was paid off may satisfy. "Mortgage Satisfaction Act" (Act 197 of 2002 - effective 2/7/03)

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