Tax Sales in Pennsylvania
Contents
- 1 Overview
- 2 Statutory Basis
- 2.1 Real Estate Tax Sale Law, Act of Jul. 7, 1947, P.L. 1368, No. 452, as amended, 72 P.S. § 5860.101, et seq. ("RETSL")
- 2.2 Municipal Claim and Tax Lien Law/Act, 53 P.S. § 7101, et seq. ("MCTLL" or "MCTLA")
- 2.3 Second Class City Treasurer's Sale and Collection Act, Act of Oct. 11, 1984 P.L. 876, No. 171, as amended, 53 P.S. § 27101, et seq. ("Treasurer's Sale")
- 3 Further Reading
- 4 Links
Overview
Tax Sales in Pennsylvania can be made under different, and often overlapping, statutes, both for unpaid real estate taxes as well as unpaid municipal claims for various services. Reference to the particular statute must be made to ensure the correct procedures are followed. Tax sale statutes are strictly construed and any defect in the proceedings could render the sale invalid. In general, an "Upset Sale" occurs first and can transfer ownership of the Property to the successful bidder subject to all existing liens and claims that were not paid from the proceeds of the sale. If the Property is not sold at an Upset Sale, the taxing authority can petition the Court for a "Judicial Sale" which would be made free and clear of all liens and encumbrances. If the Property does not sell at either public auction sale, it generally reverts to the taxing authority's repository and may be sold directly to a buyer by the authority.
Special attention should be paid that the proper notice is given to the owner(s) (or heirs/representatives of deceased owners) and any lienholders whose liens are to be divested.
Statutory Basis
Real Estate Tax Sale Law, Act of Jul. 7, 1947, P.L. 1368, No. 452, as amended, 72 P.S. § 5860.101, et seq. ("RETSL")
Municipal Claim and Tax Lien Law/Act, 53 P.S. § 7101, et seq. ("MCTLL" or "MCTLA")
Second Class City Treasurer's Sale and Collection Act, Act of Oct. 11, 1984 P.L. 876, No. 171, as amended, 53 P.S. § 27101, et seq. ("Treasurer's Sale")
Due to deficiencies in procedures and providing notice to lienholders and prior owners, Treasurer's Sales are generally uninsurable absent a corrective quiet title action.
Further Reading
Bell v. Berks County Tax Claim Bureau, 832 A.2d 587, 591 (Pa. Commw. Ct. 2003) - provides an overview
City of Allentown v. Kauth, 874 A.2d 164 (Pa. Commw. Ct. 2005) - discusses interplay of RETSL and MCTLA and competing claims of separate municipalities
In re City of Phila., 87 A.3d 397, n.3 (Pa. Commw. Ct. 2014) - provides overview of the tax return process
EMC Mortg. Corp. v. Lentz, 972 A.2d 112 (Pa. Commw. Ct. 2009) - discusses interplay of RETSL and MCTLA
Beacom v. Robinson, 157 Pa. Super. 515, 43 A.2d 640 (Pa. Super. Ct. 1945) - provides historical context of tax sales
In re Upset Tax Sale, 976 A.2d 1271 (Pa. Commw. Ct. 2009) - discusses upset tax sale of land owned by federal government
