Discover the inside scoop on property tax sales in Pennsylvania! From the highly-anticipated PA Upset Sale to the intriguing Judicial Sale and the unique repository bid process, this blog provides a comprehensive guide on how to navigate these events. Learn about the properties up for grabs, the necessary due diligence, and the process of acquiring your dream property. Get ready to delve into the world of property tax sales and take your property endeavors to new heights!
Let’s start with a dive deep into the Upset Sale. During the highly-anticipated Upset Sale, properties that have fallen behind on real estate taxes in the past two years are up for grabs. It’s a prime opportunity to seize a potential investment or find your dream property. Keep in mind that all liens and encumbrances that exist at the time of the sale still apply. To ensure a wise and informed purchase, it is highly recommended to consult with an experienced attorney and conduct thorough research on the desired property. Being well-informed is pivotal to your investing success, which is why property listings are published well in advance of the sale date. Potential investors are given optimal time to conduct the appropriate due diligence. It’s always a good idea to stay updated, as listings may undergo changes leading up to the day of the sale.
One important aspect to note is that bidders won’t have access to the properties before the sale. However, the winning bidder must cover the transfer taxes and associated fees, ensuring a smooth transition of ownership.
Now, let’s shift our focus to the Judicial Sale, an extremely popular event that also takes place annually.
This sale includes properties that were previously up for sale but remained unsold at the Upset Sale. Before presented in the Judicial Sale, the Bureau fulfills all necessary advertisement requirements and gives formal notification to the owners and lienholders. During this sale, the parcels are presented to buyers free and clear of all liens, which can be an enticing prospect for potential investors. The opening bids, set by the Bureau, aim to cover the costs associated with the collection process.
It’s important to note that judicial Tax Sales follow the strict guidelines outlined in the PA Real Estate Tax Sale Law and are considered final. To ensure that interested buyers have adequate time to research properties, each property is advertised extensively in a widely-circulated newspaper at least thirty days before the sale. The properties offered during the Judicial Sale are sold free and clear of any tax and municipal claims, mortgages, liens, charges, and estates (except for separately taxed ground rents). A helpful pro tip: Before diving headfirst into any property, consider conducting a thorough title examination to gain a comprehensive understanding of its history and potential obligations. The county will make every effort to ensure the smooth proceedings of these sales, but it’s important to remember that they are only selling the taxable interest in each property.
Unlike some other types of property sales, there is no redemption period after the sale. However, interested parties are still able to pay outstanding taxes and costs until the day of the sale. It’s important to note that repurchasing a property after the sale is not allowed in accordance with Section 618 of the Real Estate Tax Sale Law, 72 PS.§ 5860.618.
Now, let’s move on to the unsold properties.
Whenever properties fail to sell at the Judicial Sale, they enter a unique repository status for a fixed period of five business days. Bidding on these repository properties requires approval from all taxing districts where the property is located, which may include the township, borough, county, and school district. Once the Final Sale Results from the judicial sale are posted, the county Tax Claim Bureau invites multiple bids on these new properties for a period of three months. During this timeframe, bids must meet or exceed the opening bid set during the judicial sale. After three months, the minimum bid drops to the customary $500.00 repository bid price. The county Tax Claim Bureau then opens bidding again for another five business days.
If you’re ready to place a repository bid, make sure to complete the repository sale bid form and submit a non-refundable administrative processing fee along with the full bid amount. It’s important to keep in mind that all bids require approval from the Director of the Tax Claim Bureau. Once approved, letters requesting further approval are sent to the respective municipality and school district. In the event that a bid is disapproved, don’t fret – simply reach out to the municipality and/or school district to resolve any outstanding issues. If the bid is approved by both entities, it then goes to the county Commissioners for the final thumbs-up. With the final approval in place, the Tax Claim Bureau prepares a deed in the specified bidder’s name(s). The bid amount will be adjusted to include costs such as the deed recording fee and transfer taxes. Once all financial matters are settled, the deed can be recorded under the registration of the specified bidder, clearing any remaining delinquent taxes with the county Tax Claim Bureau.
In the event that consent from the taxing district is not provided within sixty days, it is considered consent to the property sale. And just like that, your deed is officially recorded under your registration, and any delinquent taxes previously associated with the property are now a thing of the past.
With these comprehensive explanations and highly insightful information, you now possess a plethora of valuable knowledge to expertly navigate the intricate world of Pennsylvania property sales. Whether you rest assured that you are equipped with the tools necessary to make informed decisions. Feel free to reach out if you have any further questions or require additional assistance – our dedicated team is always here to support you. Wishing you the best of luck in all your property endeavors!