Bisel's Pennsylvania Real Estate Lawsource: The Collected Statutes, Rules, and Regulations Affecting Pennsylvania Real Estate 2006927785, 0975528122, 9780975528129

Citation preview

Bisel’s

Pennsylvania

Real Estate Lawsource® The Collected Statutes, Rules and Regulations Affecting Pennsylvania Real Estate

2022 Edition By

DARRELL M. ZASLOW, ESQ. and LEVI S. ZASLOW, ESQ.

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Copyright © 2007–2022 By George T. Bisel Company, Inc. All rights Reserved The text of this publication, or any part thereof, may not be reproduced or transmitted in any form or by any means, electronic or mechanical, including photocopying, recording, storage in an information retrieval system, or otherwise, without the prior written permission of the publisher. The information contained herein is not intended to constitute legal advice generally or with respect to any particular set of facts or circumstances and should not be relied upon as such by the reader. Neither the author nor the publisher assume responsibility for errors or omissions as may be contained herein, the use of the information contained herein, or any damages arising or resulting from the use of the information contained herein. Although the publisher intends to update this material from time to time, neither the author nor the publisher assumes any obligation to do so and this material speaks only as of the date that research therefor was completed which necessarily preceded the publication date. Printed in United States of America Library of Congress Control Number: 2006927785 ISBN: 0-9755281-2-2

HOW TO USE    First refer to main text herein, then check any current supplement, using same reference numbers. New material subsequent to publication of original text is contained in later supplements and text revisions. SINCE LAWS AND CODE REFERENCES CHANGE QUITE FREQUENTLY, ALWAYS CHECK THE TIMELINESS AND APPLICABILITY OF THE STATUTES AND CODE CONTAINED HEREIN. FOR QUESTIONS ABOUT THIS PUBLICATION, CALL TOLL FREE 1-800-247-3526.

Contact the Bisel Editorial Department directly with your questions and suggestions by e-mail at [email protected]

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PREFACE

“The Earth is the Lord’s, and the fullness thereof”. So proclaims the Psalmist. The human race, however, has taken a different approach, and parceled the planet out among ourselves. Despite the assertion of heavenly ownership, humanity claims land in fee simple, in perpetuity, with title deeds to prove it. The story of man’s appropriation of land runs parallel with all of human history. The earliest legal systems, even the legal code within the Bible itself, provide for private ownership of property. The Bible parcels out the Holy Land among the tribes and families of Israel. The Romans chiseled property law on their famous Twelve Tables. William the Conqueror created the most famous of deed records, the 11th century Domesday Book, cataloguing ownership of the entire English Isle, and cementing the feudal system of estates and land tenure which is the bedrock of modern property law. From the earliest days of the Common Law, protection of private property has been a primary focus of jurisprudence. Real Estate is integral to American society. In a recitation of individual rights, property follows immediately after life, liberty, and the pursuit of happiness. The value of real estate is deeply rooted in the traditions forming the foundation of our democracy. Here in Pennsylvania, the oldest of our statutes, pre-dating the American Revolution, pertains to real estate and the ownership thereof; yet even the famous Statute of Frauds, enacted in 1772, merely codified a legal principle already deeply enshrined in the Common Law. The phraseology of the Statute has remained without amendment since that day. And so this Law Source presents Real Estate law, from that ancient Statute of Frauds, to the utterly modern Uniform Acts governing Cooperatives and Condominiums adopted over two centuries later. Amendments to the numerous laws governing real estate have been unceasingly enacted in every year and century in between. Real Estate law, in all its ancient and modern enactments, is often obtuse. The division of this Lawsource into nine coordinated topic areas and seventy chapters is intended to provide the legal practitioner with easy access to the widely scattered statutes governing real estate, in a semblance of order lacking in the official enactments My great-grandfather disembarked from the boat that brought him from the old country, and upon arrival in Philadelphia promptly began purchasing real estate. My grandfather, and then father, followed suit. Having grown up in a real estate family, hardly a day went by when an issue relating to real estate didn’t arise. The complexities of property ownership, rental, maintenance, and conveyance resulted in formation by my father, Harry Zaslow, with my mother Naomi at his side, of an organization now known as HAPCO, the Homeowners Association of Philadelphia. HAPCO and I were born in the same year, over a half-century ago. It has been my honor to serve as legal counsel to the organization, now grown into the largest association of rental property owners in the state, for the last 28 years. I have been privileged to gain substantial legal experience and knowledge, at all levels of government and the courts, through my representation of HAPCO, and our statewide affiliate in Harrisburg, the Pennsylvania Residential Owners Association (PROA). This Real Estate Lawsource is an outgrowth of that experience. Lewis A. Walder, Esq., my lifelong law partner and the founder of our firm, has been mentor and friend since I clerked for him one long ago summer in law school. His practical wisdom and legal expertise educated me in the law that we practice in the trenches. Lewis radiates an amiable and admirable attitude towards life and the law, which has made the entire experience worthwhile and pleasant. Stacie

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PREFACE Guenther, my dedicated legal assistant since the day a decade and a half ago that she graduated high school, organizes office life with an equanimity that soothes the troubled client and smoothes the disarray of my desk. A parcel of real estate is of course not a home; that takes a wife and family to create and share it. In that regard, I have been blessed on the home front by the presence therein of my wife Sherri, and our wonderful children, children-in-law, and grandchildren. May the Source of all Law bring happiness and prosperity to them, and to this nation of laws that so mightily endeavors to protect property and enjoyment of the fruits thereof. Any comments or suggestions for improvement of the format of this Real Estate Lawsource, or inclusion of additional materials, are welcome and appreciated.

Darrell M. Zaslow

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Table of Contents

TABLE OF CONTENTS

Part I Ch. 1–14 Brokers

(Summary)

1

Deeds

87

Part III

Mortgages and Other Liens

163

Part IV

Hazard, Title, & Mortgage Insurance

467

Real Estate Taxation

757

Part VII

Real Estate Litigation

963 1065

Part IX Condominiums, Cooperatives, and Manufactured Housing

1181

Part VII Ch. 57–63 Litigation

Part VIII Landlord and Tenant

Part VI Ch. 49–56 Taxation

Part VI

Part V Ch. 41–48A Zoning, etc.

Part V Zoning, Planning, and Government Regulation 521

Part IV Ch. 36–40 Insurance

Part II

Part III Ch. 23–35 Mortgages

Part I Real Estate Brokers, Agreements, and Settlements

Part II Ch. 15–22 Deeds

Preface Tables of Contents

Index 1391 Part VIII Ch. 64–67 L/T Part IX Ch. 68–72 Condos, etc.

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Index

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Table of Contents

TABLE OF STATUTES Part I Ch. 1–14 Brokers

[References Are to Chapters in This Book]

Part IV Ch. 36–40 Insurance Part V Ch. 41–48A Zoning, etc. Part VI Ch. 49–56 Taxation Part VII Ch. 57–63 Litigation Part VIII Ch. 64–67 L/T Part IX Ch. 68–72 Condos, etc. Index

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Part III Ch. 23–35 Mortgages

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Part II Ch. 15–22 Deeds

Chapter 1 Pa.C.S. § 1991, Blighted Property—Definition . . . . . . . . . . . . . . . . . . . . . . . 48.4 7 Pa.C.S. §§ 6101–6154, Mortgage Loan Industry Licensing . . . . . . . . . . . . . . . 27 7 P.S. §§ 6701–6703, Mortgage Property Insurance. . . . . . . . . . . . . . . . . . . . . . . 40 7 P.S. § 6622, Secondary Mortgage Loans . . . . . . . . . . . . . . . . . . . . . . . . . . . . 44.1 8 Pa.C.S. § 1202, Real Estate Registries: Borough Code. . . . . . . . . . . . . . . . . 20.1 10 Pa. Code §§ 7.1 to 7.9, Residential Real Estate Transactions. . . . . . . . . . . . 30 10 Pa. Code §§ 44.1 to 44.5, Mortgage Bankers and Brokers and Consumer Equity Protection Continuing Education. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 31 12 U.S.C. §§ 2601 et seq., Real Estate Settlement Procedures. . . . . . . . . . . . . . . 4 12 Pa.C.S. §§ 5101 to 12 Pa.C.S. 5114, Uniform Voidable Transactions Act. . . 62 15 U.S.C. §§ 1601 et seq., Consumer Credit Cost Disclosure. . . . . . . . . 25, 44.18 16 P.S. §§ 3701 to 3708, Second Class County Lot System and Registration of Property . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 20.4 16 P.S. §§ 9701 to 9857, Recorders of Deeds . . . . . . . . . . . . . . . . . . . . . . . . . . . . 18 16 P.S. § 9784, Recorders of Deeds . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 44.2 18 Pa.C.S. § 3312, Survey Monument, Destruction of. . . . . . . . . . . . . . . . . . . 44.3 18 Pa.C.S. § 4103, Destruction of Records . . . . . . . . . . . . . . . . . . . . . . . . . . . . 44.4 18 Pa.C.S. § 4913, Impersonating a Notary Public or a Holder of a Professional or Occupational License. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 44.19 18 P.S. § 7331, Unlicensed Mortgage Loan Business. . . . . . . . . . . . . . . . . . . 44.16 21 P.S. §§ 1 to 602, Deeds and Conveyances . . . . . . . . . . . . . . . . . . . . . . . 17, 44.5 21 P.S. §§ 291.1 to 291.13, Uniform Acknowledgment Act. . . . . . . . . . . . . . . . . 22 21 P.S. §§ 331 to 337, Uniform Parcel Identifier Law. . . . . . . . . . . . . . . . . . . . . 21 21 P.S. §§ 338.1 to 338.9, Uniform Municipal Deed Registration Act . . . . . . 20.5 21 P.S. §§ 381 to 410, Recordable Documents . . . . . . . . . . . . . . . . . . . . . . . . . 19.1 21 P.S. §§ 483.1 to 483.9, Uniform Real Property Electronic Recording Act. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 19.2 21 P.S. §§ 611 to 615, Notice of Zoning and Code Violations. . . . . . . . . . . . . . . . 9 21 P.S. §§ 621 to 951, Mortgages. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 23 21 P.S. §§ 681 to 705, Mortgage Satisfaction Generally . . . . . . . . . . . . . . . . . 29.1 21 P.S. §§ 711 to 717, First Class City Mortgage Satisfaction. . . . . . . . . . . . 29.2 21 P.S. §§ 720-1 to 720-9, Second to Eighth Class County Mortgage Satisfaction. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 29.3 21 P.S. §§ 721-1 to 721-12, Mortgage Satisfaction Act . . . . . . . . . . . . . . . . . . 29.4 23 Pa.C.S. §§ 3503 to 3508, §§ 4361 to 4365, Divorce and Domestic Violence Property Rights. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 45 26 Pa.C.S. §§ 101 et seq., Eminent Domain Code . . . . . . . . . . . . . . . . . . . . . . . . 42 26 U.S.C § 1031, Internal Revenue Code—Exchange of Property . . . . . . . . . . . 56 33 P.S. §§ 1, 2, Statute of Frauds . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1 35 P.S. § 750.7a, Unavailable Community Sewage Disclosure Requirement. . . . 12 35 P.S. §§ 1656.1 to 1656.9, Manufactured Housing Construction and Safety Standards Authorization Act . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 71.1 35 P.S. § 1656.9, Manufactured Housing—Crimes and Offenses. . . . . . . . . . 44.6 35 P.S. §§1658.1 to 1658.6, Manufactured Housing Improvement Act . . . . . 71.2 35 P.S. §§ 1680.101 to 1680.603a, Housing Finance Agency Law . . . . . 26.1, 44.7 35 P.S. §§ 1681.1 to 1681.7, Homeowner Assistance Settlement Act. . . . . . . 26.2 35 P.S. § 1680.602a, Housing Finance Agency—Crimes and Offenses. . . . . . 44.7 35 P.S. § 6018.405, Hazardous Waste Disclosure. . . . . . . . . . . . . . . . . . . . . . . . . 11 40 P.S. §§ 910-1 to 910-55, Title Insurance Companies. . . . . . . . . . . . . . . . . . . . 36 40 P.S. §§ 1600.101 to 1600.502, Fair Plan Act. . . . . . . . . . . . . . . . . . . . . . . . . . 39

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TABLE OF STATUTES Chapter 40 P.S. §§ 3401 to 3409, Property and Casualty Insurers—Notice Requirements. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 37 41 P.S. §§ 101 to 605, Maximum Interest Rates (Act 6). . . . . . . . . . . . . . 24, 44.8 42 Pa.C.S. §§ 5522 to 5538, Statutes of Limitation. . . . . . . . . . . . . . . . . . . . . . . 58 42 P.S. § 7501, Attachment of Property Prior to Judgment . . . . . . . . . . . . . . . . 60 42 P.S. § 7533, Declaratory Relief. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 61 42 Pa.C.S. §§ 8103, Deficiency Judgments. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 63 42 P.S. §§ 8141 to 8144, Priority of Liens. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 33 43 P.S. §§ 951 to 963, Human Relations Act . . . . . . . . . . . . . . . . . . . . . . . 44.9, 47 49 P.S. §§ 1101 to 1902, Mechanics’ Lien Law. . . . . . . . . . . . . . . . . . . . . . . . . . . 34 52 P.S. §§ 1551 to 1554, Mines and Mining Removal of Surface Support. . . . . 13 53 P.S. §§ 4271–4277, Municipality Condemnation Order Act. . . . . . . . . . . . 48.3 53 Pa.C.S. §§ 6101–6145, Neighborhood Blight Reclamation and Revitalization Act. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 48.2 53 Pa.C.S. § 6115, Failure to Comply with a Code Requirement. . . . . . . . . 44.20 53 P.S. §§ 6901 et seq., Local Tax Enabling Act . . . . . . . . . . . . . . . . . . . . . . . 49.4 53 P.S. §§ 7101 to 7505, Municipal Claims and Tax Liens. . . . . . . . . . . . . . . . . 52 53 P.S. §§ 10101 to 11202, Municipalities Planning Code. . . . . . . . . . . . . . . . . . 41 53 P.S. §§ 11703.1 to 11703.8, Development Permit Extension Act. . . . . . . . 41.1 53 P.S. §§ 53601 to 53605, Real Estate Registries: Incorporated Towns. . . . 20.2 53 P.S. §§ 56310 to 56315, Real Estate Registries: First Class Townships. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 20.3 63 P.S. §§ 455.101 to 455.902, Real Estate Licensing and Registration Act. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2, 44.10 63 P.S. §§ 456.101 to 456.3101, Mortgage Bankers and Brokers and Consumer Equity Protection Act . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 28, 44.12 63 P.S. §§ 457.1 to 457.19, Real Estate Appraisers Certification Act. . . 32.1, 44.13 63 PS §§ 457.21–457.31, Appraisal Management Company Registration Act. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 32.2 63 P.S. §§ 458.1 to 458.16, Assessors Certification Act. . . . . . . . . . . . . . . . . . . . 51 63 P.S. §§ 1601 to 1608, Insurance Adjusters. . . . . . . . . . . . . . . . . . . . . . 38, 44.11 68 P.S. §§ 81 to 88, Adverse Possession Claim. . . . . . . . . . . . . . . . . . . . . . . . . . . 59 68 P.S. § 101, Tenants in Common. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 15 68 P.S. § 110, Joint Tenants. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 16 68 P.S. §§ 250.101 to 250.602, Landlord and Tenant Act of 1951 . . . . . . . . . . . 64 68 P.S. §§ 398.1 to 398.16, Mobile Home Park Rights Act. . . . . . . . . . . . . . . . . 72 68 P.S. §§ 467 to 473, Nuisances. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 44.17, 46.1 68 P.S. §§ 477-1 to 477-8, Recreational Use of Land. . . . . . . . . . . . . . . . . . . . 46.2 68 P.S. §§ 801 to 805, Air Space . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 14 68 P.S. §§ 901 to 911, Installment Land Contract Law. . . . . . . . . . . . . . . . . . . . . 8 68 P.S. §§ 1051 to 1063, Commercial Real Estate Broker Lien Act. . . . . . . . . . . 3 68 P.S. §§ 1081 to 1083, Municipal Code and Ordinance Compliance. . . . . . . . 43 68 P.S. §§ 1101–1111, Abandoned and Blighted Property Conservatorship Act. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 48.1 68 Pa.C.S. §§ 2101 to 2120, Land Banks . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 48A 68 Pa.C.S. §§ 2301 to 2312, Vacant and Abandoned Real Estate Foreclosure Act. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 24A 68 Pa.C.S. §§ 3101 to 3414, Uniform Condominium Act. . . . . . . . . . . . . . . . . . . 68 68 Pa.C.S. 4101 to 4418, Real Estate Cooperative Act . . . . . . . . . . . . . . . . . . . . 69 68 Pa.C.S. §§ 5104 to 5414, Uniform Planned Community Act . . . . . . . . . . . . . 70 68 Pa.C.S. §§ 7101 to 7103, Residential Real Estate Transfers. . . . . . . . . . . . . . 5 68 Pa.C.S. §§ 7301 to 7315, Real Estate Seller Disclosure Law. . . . . . . . . . . . . . 6 68 Pa.C.S. §§ 7501 to 7513, Home Inspection Law . . . . . . . . . . . . . . . . . . 7, 44.14 68 Pa.C.S.A. § 8101–8107, Private Transfer Fee Obligation Act . . . . . . . . . . 27A 69 P.S. § 529, Notice of Bulk Sales, Reports, Taxes. . . . . . . . . . . . . . . . . . . . . . 10

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Part I Ch. 1–14 Brokers Part II Ch. 15–22 Deeds Part III Ch. 23–35 Mortgages Part IV Ch. 36–40 Insurance

Chapter 72 P.S. §§ 4711-101 to 4711-305, Improvement of Deteriorating Real Property or Areas Tax Exemption Act. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 55.1 72 P.S. §§ 4712-101 to 4712-108, Tax Exemption and Mixed-Use Incentive Program Act. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 55.3 72 P.S. §§ 4722 to 4731, Local Economic Revitalization Tax Assistance Act. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 55.2 72 P.S. §§ 4749.1 to 4749.6, First and Second Class County Property Tax Relief Act . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 55.4 72 P.S. § 4750.1301, Tax Authorization for Cities of the First Class. . . . . . . 49.3 72 P.S. §§ 4751-1 to 4751-12, Senior Citizens Rebate and Assistance. . . . . . 54.1 72 P.S. §§ 4751-21 to 4751-26, Cities of the First Class Low-Income Senior Citizens Property Tax. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 54.2 72 P.S. §§ 4753-1 to 4753-4, Tax Extension for U.S. Armed Services . . . . . . 54.3 72 P.S. §§ 4754-1 to 4754-6, New Home Construction Local Tax Abatement Act. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 54.4 72 P.S. §§ 5020-1 to 5020-602, General County Assessment Law . . . . . . . . . . . 50 72 P.S. §§ 5860-101 to 5860-803, Real Estate Tax Sale Law . . . . . . . . . . . . . . . 53 72 P.S. §§ 8101-C to 8114-C, State Realty Transfer Tax. . . . . . . . . . . . 44.15, 49.1 72 P.S. §§ 8101-D to 8114-D, Local Real Estate Transfer Tax. . . . . . . . . . . . 49.2 73 P.S. §§ 501 to 516, Contractor and Subcontractor Payment Act. . . . . . . . . . 35 231 Pa. Code §§ 410 to 4009.33, Selected Rules of Civ. P. . . . . . . . . . . . . . . . . . 57 231 Pa. Code §§ 3301 to 3313, Attachment of Wages . . . . . . . . . . . . . . . 57.16, 67 246 Pa. Code §§ 201 to 1082, Pa.R.Civ.P.M.D.J. . . . . . . . . . . . . . . . . . . . . . . . . . 66 Phila. M.C.R. Civ. P Nos. 101 to 205.4 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 65

Table of Contents

TABLE OF STATUTES

Part V Ch. 41–48A Zoning, etc. Part VI Ch. 49–56 Taxation Part VII Ch. 57–63 Litigation Part VIII Ch. 64–67 L/T Part IX Ch. 68–72 Condos, etc.

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Index

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Table of Contents

TABLE OF CONTENTS

Part I Ch. 1–14 Brokers

(Condensed)

Index

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Part IX Ch. 68–72 Condos, etc.

xi

Part VIII Ch. 64–67 L/T

23. Law of Mortgages Generally............................................. 163 24. Loan Interest and Protection Law................................... 173 24A. Vacant and Abandoned Real Estate Foreclosure Act..... 183 25. Consumer Credit Cost Disclosure.................................... 195 26. Housing Finance Agency Law.......................................... 311 27. Mortgage Loan Industry Licensing and Consumer Protection........................................................................... 344 27A. Private Transfer Fee Obligation Act................................ 383

Part VII Ch. 57–63 Litigation

Part III.   Mortgages and Other Liens

Part VI Ch. 49–56 Taxation

Tenants in Common............................................................ 87 Joint Tenants....................................................................... 88 Law of Deeds and Conveyances......................................... 89 Recorders of Deeds............................................................ 124 Recordable Documents...................................................... 132 Real Estate Registries....................................................... 145 Uniform Parcel Identifier Law......................................... 154 Uniform Acknowledgment Act.......................................... 157

Part V Ch. 41–48A Zoning, etc.

15. 16. 17. 18. 19. 20. 21. 22.

Part IV Ch. 36–40 Insurance

Part II.  Deeds

Part III Ch. 23–35 Mortgages

Chap. Page   1. Statute of Frauds................................................................... 1   2. Real Estate Licensing and Registration Act....................... 3   3. Commercial Real Estate Broker Lien Act......................... 39   4. Federal Real Estate Settlement Procedures..................... 44   5. Residential Real Estate Transfers Law............................. 61   6. Real Estate Seller Disclosure Law..................................... 63   7. Home Inspection Law.......................................................... 68   8. Installment Land Contract Law......................................... 74   9. Notice of Zoning and Code Violations................................ 79 10. Notice of Bulk Sales, Reports, Taxes................................. 81 11. Hazardous Waste Disclosure.............................................. 82 12. Unavailable Community Sewage Disclosure Requirement......................................................................... 83 13. Mines and Mining Removal of Surface Support............... 84 14. Air Space.............................................................................. 86

Part II Ch. 15–22 Deeds

Part I.   Real Estate Brokers, Agreements, and Settlements

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TABLE OF CONTENTS (Condensed) 28. Mortgage Bankers and Brokers and Consumer Equity Protection Act.................................................................... 388 29. Mortgage Satisfaction....................................................... 397 29.1. Satisfaction Generally....................................................... 397 29.2. First Class City Mortgage Satisfaction........................... 400 29.3. Second to Eighth Class County Mortgage Satisfaction......................................................................... 402 29.4. Mortgage Satisfaction Act................................................. 405 30. Residential Real Estate Transactions.............................. 413 31. Mortgage Bankers and Brokers and Consumer Equity Protection—Continuing Education................................... 421 32. Real Estate Appraisers Certification Act........................ 422 32.2. Appraisal Management Company Registration Act....... 432 33. Priority of Liens................................................................. 441 34. Mechanics’ Lien Law of 1963........................................... 445 35. Contractor and Subcontractor Payment Act................... 461

Part IV.   Hazard, Title, and Mortgage Insurance 36. Title Insurance Companies............................................... 467 37. Notice Requirements of Property and Casualty Insurers..... 494 38. Insurance Adjusters.......................................................... 498 39. The Pennsylvania Fair Plan Act...................................... 508 40. Mortgage Property Insurance Coverage Act................... 520

Part V.   Zoning, Planning, and Government Regulation 41. Municipalities Planning Code.......................................... 521 41.1. Development Permit Extension Act................................. 635 42. Eminent Domain Code...................................................... 642 43. Municipal Code and Ordinance Compliance................... 676 44. Crimes and Offenses......................................................... 680 45. Divorce and Domestic Violence Property Rights............ 691 46. Nuisances and Recreational Use of Land........................ 695 47. Pennsylvania Human Relations Act................................ 698 48. Blight.................................................................................. 722 48.1. Abandoned and Blighted Property Conservatorship Act.......................................................... 722 48.2. Neighborhood Blight Reclamation and Revitalization Act.............................................................. 732 48.3. Municipality Condemnation Order Act........................... 738 48.4. Blighted Property–Definition............................................ 739 48A. Land Banks........................................................................ 740 xii

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Table of Contents

TABLE OF CONTENTS (Condensed) TABLE OF CONTENTS (Condensed)

Part VI.   Real Estate Taxation

gtb-parealestate22-all.indb 13

Index

xiii

Part IX Ch. 68–72 Condos, etc.

Index����������������������������������������������������������������������������������������� 1391

Part VIII Ch. 64–67 L/T

68. Uniform Condominium Act............................................... 1181 69. Real Estate Cooperative Act............................................. 1240 70. Uniform Planned Community Act.................................... 1300 71. Manufactured Housing...................................................... 1368 72. Manufactured Home Community Rights Act.................. 1376

Part VII Ch. 57–63 Litigation

Part IX.   Condominiums, Cooperatives, and Manufactured Housing

Part VI Ch. 49–56 Taxation

64. Landlord and Tenant Act of 1951.................................. 1065 65. Philadelphia Municipal Court Rules of Civil Practice............................................................................. 1087 66. Rules of Civil Procedure for Magisterial District Judges............................................................................... 1106 67. Attachment of Wages, Salary and Commissions under Section 8127(a)(3.1) of the Judicial Code (Landlord/Tenant)............................................................ 1172

Part V Ch. 41–48A Zoning, etc.

Part VIII.   Landlord and Tenant

Part IV Ch. 36–40 Insurance

57. Selected Pennsylvania Rules of Civil Procedure Applying to Real Estate....................................................... 963 58. Statutes of Limitation....................................................... 1040 59. Claim by Adverse Possession............................................ 1050 60. Attachment of Property Prior to Judgment..................... 1052 61. Declaratory Relief.............................................................. 1053 62. Pennsylvania Uniform Voidable Transactions Act (Formerly Pennsylvania Uniform Fraudulent Transfer Act)...................................................................... 1054 63. Deficiency Judgments........................................................ 1061

Part III Ch. 23–35 Mortgages

Part VII.   Real Estate Litigation

Part II Ch. 15–22 Deeds

Transfer Tax Authorization.............................................. 757 General County Assessment Law.................................... 786 Assessors Certification Act............................................... 815 Municipal Claims and Tax Liens..................................... 824 Real Estate Tax Sale Law................................................ 890 Property Tax Rebates and Abatements........................... 929 Revitalization Exemptions from Taxation....................... 943 Internal Revenue Code § 1031 Exchange........................ 960

Part I Ch. 1–14 Brokers

49. 50. 51. 52. 53. 54. 55. 56.

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Table of Contents

TABLE OF CONTENTS

PART I

CHAPTER 1 33 P.S. §§ 1 & 2

Sec.

§ 1. Parol leases, etc.; estates in lands not to be assigned, etc., except by writing § 2. Declarations of trusts and grants thereof to be in writing

REAL ESTATE LICENSING AND REGISTRATION ACT Sec.

Index

gtb-parealestate22-all.indb 15

Part IX Ch. 68–72 Condos, etc.

xv

Part VIII Ch. 64–67 L/T

101. Short title 201. Definitions 202. State Real Estate Commission 301. Unlawful to conduct business without license or registration certificate 302. Civil suits 303. Criminal penalties 304. Exclusions 305. Civil penalty 401. Duty to issue licenses and registration certificates 402. Approval of schools 403. Authority to examine applicants 404. Power to promulgate regulations 404a. Continuing education 405. Repealed 406. Administration and enforcement 407. Fees 408. Reports to legislative committees 501. Reputation; inactive licensee; revoked license 511. Qualifications for license 512. Application for license 513. Corporations, partnerships and associations 521. Qualifications for license 522. Application for license 531. Qualifications for license

Part VII Ch. 57–63 Litigation

§ § § § § § § § § § § § § § § § § § § § § § § §

Part VI Ch. 49–56 Taxation

63 P.S. § 455.101 to 63 P.S. § 455.902

Part V Ch. 41–48A Zoning, etc.

CHAPTER 2

Part IV Ch. 36–40 Insurance

STATUTE OF FRAUDS

Part III Ch. 23–35 Mortgages

REAL ESTATE BROKERS, AGREEMENTS AND SETTLEMENTS

Part II Ch. 15–22 Deeds

Preface Tables of Contents

Part I Ch. 1–14 Brokers

(Detailed)

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TABLE OF CONTENTS—Brokers, Agreements Chapter 2   Real Estate Licensing and Registration Act (cont.) § 532. Application for license § 533. Corporations, partnerships, associations or other entities § 541. Qualifications for license § 542. Application for license § 551. Qualifications for license § 552. Application for license § 561. Qualifications for license § 571. Application and fee for registration certificate § 581. Qualifications for license § 582. Application for license § 591. Qualifications for license § 592. Application for license § 601. Duty of brokers, cemetery brokers and rental listing referral agents to maintain office § 602. Reciprocal licenses § 603. Employment of associate brokers, salesperson § 604. Prohibited acts § 605. Promotional land sales; approval § 606. Relationships between brokers and consumers of real estate services § 606a. Duties of licensee generally § 606b. Duties of seller’s agent § 606c. Duties of buyer’s broker § 606d. Duties of dual agent § 606e. Duties of designated agent § 606f. Duties of transaction licensee § 607. Deleted § 608. Information to be given at initial interview § 608a. Written agreement with broker § 608b. Mandatory provisions of sales contract § 608c. Comparative market analysis disclosure § 608d. Cemetery broker’s disclosure § 608e. Handling of deposits and other escrows § 608f. Broker price opinion § 609. Right to cancel purchase of time share and campground membership § 701. Hearings held by commission § 702. Imputed knowledge, limitations § 801. Establishment of the fund § 802. Funding of the fund § 803. Application for recovery from fund § 901. Repealed § 902. Effective date

CHAPTER 3 COMMERCIAL REAL ESTATE BROKER LIEN ACT 68 P.S. § 1051 to 68 P.S. § 1063

Sec. § § § § § § § § § § § § §

1051. Short title 1052. Definitions 1053. Right to lien 1054. Excessive curtilage 1055. Lien not allowed in certain cases 1056. Attachment of lien 1057. Notice of lien 1058. Enforcement of lien 1059. Priority 1060. Escrow of disputed amounts 1061. Waiver prohibited 1062. Revival of judgment 1063. Severability

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Table of Contents

TABLE OF CONTENTS—PART I

CHAPTER 4 12 U.S.C. § 2601 et seq.

Sec.

Part III Ch. 23–35 Mortgages Part IV Ch. 36–40 Insurance

2601. Congressional findings and purpose 2602. Definitions 2603. Uniform settlement statement 2604. Home buying information booklets 2605. Servicing of mortgage loans and administration of escrow accounts 2606. Exempted transactions 2607. Prohibition against kickbacks and unearned fees 2608. Title companies; liability of seller 2609. Limitation on requirement of advance deposits in escrow accounts 2610. Prohibition of fees for preparation of truth-in-lending, uniform settlement, and escrow account statements §§ 2611 to Repealed. Pub.L. 104-208, Div. A, Title II, § 2103(h), Sept. 30, 1996, 110   2613. Stat. 3009-401 § 2614. Jurisdiction of courts; limitations § 2615. Contracts and liens; validity § 2616. State laws unaffected; inconsistent Federal and State provisions § 2617. Authority of Bureau

Part II Ch. 15–22 Deeds

§ § § § § § § § § §

Part I Ch. 1–14 Brokers

FEDERAL REAL ESTATE SETTLEMENT PROCEDURES

CHAPTER 5 68 Pa.C.S. § 7101 to 68 Pa.C.S. § 7103

Sec.

CHAPTER 6 68 Pa.C.S. § 7301 to 68 Pa.C.S. § 7315

Sec.

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Index

xvii

Part IX Ch. 68–72 Condos, etc.

7301. Short title of chapter 7302. Application of chapter 7303. Disclosure of material defects 7304. Disclosure form 7305. Delivery of disclosure form 7306. Information unavailable to seller 7307. Information subsequently rendered inaccurate 7308. Affirmative duty of seller 7309. Nonliability of seller 7310. Nonliability of agent 7311. Failure to comply 7312. Amendment of disclosure 7313. Specification of items for disclosure no limitation on other disclosure obligations § 7314. Cause of action § 7315. Preemption of local requirements

Part VIII Ch. 64–67 L/T

§ § § § § § § § § § § § §

Part VII Ch. 57–63 Litigation

REAL ESTATE SELLER DISCLOSURE LAW

Part VI Ch. 49–56 Taxation

§ 7101. Short title of part § 7102. Definitions § 7103. Application of part

Part V Ch. 41–48A Zoning, etc.

RESIDENTIAL REAL ESTATE TRANSFERS LAW

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TABLE OF CONTENTS—Brokers, Agreements

CHAPTER 7 HOME INSPECTION LAW 68 Pa.C.S. § 7501 to 68 Pa.C.S. § 7513

Sec. § § § § § § § § § § § § §

7501. Short title of chapter 7502. Definitions and index of definitions 7503. Relationship to other laws 7504. Duty of care of home inspectors 7505. Consumer remedies 7506. Required contractual provision regarding home inspections 7507. Contracts with home inspectors 7508. Home inspection reports 7509. Liability insurance 7510. Reliance by buyer 7511. Penalties 7512. Statute of limitations 7513. Engineers and architects

CHAPTER 8 INSTALLMENT LAND CONTRACT LAW 68 P.S. § 901 to 68 P.S. § 911

Sec. § § § § § § § § § § §

1. Short title 2. Findings and declaration of policy 3. Definitions; application of act 4. Notice to terminate contract upon purchaser’s default 5. Seller’s remedies 6. Action maintainable by defaulting purchaser 7. Implied covenants of the seller 8. Allocation of monthly payments 9. Existing remedies of purchaser 10. Incorporation into contracts 11. Effective date

CHAPTER 9 NOTICE OF ZONING AND CODE VIOLATIONS 21 P.S. § 611 to 21 P.S. § 615

Sec. § § § § § §

1. Legislative findings 2. Definitions 3. Certificates 3.1. Agreements of sale 4. Non-conforming uses 5. Penalties

CHAPTER 10 NOTICE OF BULK SALES, REPORTS, TAXES 69 P.S. § 529

Sec. § 1.

Notice of bulk sales, reports, taxes

xviii

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Table of Contents

TABLE OF CONTENTS—PART II

CHAPTER 11 Part I Ch. 1–14 Brokers

HAZARDOUS WASTE DISCLOSURE 35 P.S. § 6018.405

Sec.

§ 405. Conveyance of disposal site property Part II Ch. 15–22 Deeds

CHAPTER 12 UNAVAILABLE COMMUNITY SEWAGE DISCLOSURE REQUIREMENT

Part III Ch. 23–35 Mortgages

35 P.S. § 750.7a

Sec.

§ 7a. Land sale contracts

CHAPTER 13 52 P.S. § 1551 to 52 P.S. § 1554

Sec.

CHAPTER 14 AIR SPACE Sec.

1. Conveyance and transfer 2. Real property rights and incidents; sovereignty of United States; aircraft rights 3. Taxation 4. Retroactive application of act 5. Severable provisions

PART II

CHAPTER 15 68 P.S. § 101

Sec.

§ 101. Co-tenants not in possession may recover share of rental; procedure in case of partition

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Index

xix

Part IX Ch. 68–72 Condos, etc.

TENANTS IN COMMON

Part VIII Ch. 64–67 L/T

DEEDS

Part VII Ch. 57–63 Litigation

§ § § § §

Part VI Ch. 49–56 Taxation

68 P.S. § 801 to 68 P.S. § 805

Part V Ch. 41–48A Zoning, etc.

§ 1. Instruments to contain notice that title to coal and right of coal and right of surface support are not included § 2. Liability for failure to provide notice § 3. Act not subject to waiver § 4. Prospective operation

Part IV Ch. 36–40 Insurance

MINES AND MINING REMOVAL OF SURFACE SUPPORT

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TABLE OF CONTENTS—Deeds

CHAPTER 16 JOINT TENANTS 68 P.S. § 110

Sec.

§ 1. Lands held by joint tenancy to descend as estates of tenants in common

CHAPTER 17 LAW OF DEEDS AND CONVEYANCES 21 P.S. § 1 to 21 P.S. § 602

Sec. § § § § § § § § § § § § § § § § § § § § § § § § § § § § § § § § § § § § § § § § § § § § §

1. Form of deed 2. Words necessary to pass fee simple title 3. Grantor’s entire estate and rights conveyed 4. Words grant and convey import covenants of title and quiet enjoyment 5. “Warrant generally” construed 6. “Warrant specially” construed 7. “Release and quitclaim” construed 8. Force and effect of words “grant, bargain,” etc. 9. Repealed 10. Deeds effective without seal 10.1. Uniform parcel identifier; conveyances, mortgages, releases, and other instruments 11. Repealed 12. Repealed 13. Conveyance of estate tail by deed of bargain and sale 14. Repealed 15. Title to party wall to pass with ground 41. Deeds made out of the province are valid 42. Deeds to be acknowledged before recording 43. Proof of execution where grantor is dead or cannot appear 44. Proof of deeds where grantor and witnesses are dead or cannot be found 45. Proof of deeds without subscribing witnesses, where one or more of the parties is dead 46. Certificate of acknowledgment prima facie evidence thereof and of execution 47. Certificate of acknowledgment of sheriff’s deed to be sufficient evidence 48. Effect of prothonotary’s certificate on treasurer’s deed 48a. Validating certain tax sales 49. Validity of deeds made and acknowledged by husband and wife out of state 50. Repealed 51. Execution and acknowledgment of deed to adult’s real estate by minor spouse 52. Repealed 52.1 Repealed 52.2 Repealed 53. Conveyance by officer when decreed by court; acknowledgment in open court 54. Punishment for contempt 55. Notice to be given before order is made 56. Application of act 57. Repealed 81. Form of certificate of acknowledgment 82. Acknowledgments by married woman 111. Corporate acknowledgments by appointed attorney; form of appointment 112. Who may take such acknowledgment; form of certificate 113. Corporate acknowledgments prior to May 11, 1901, validated 114. Repealed 115. Repealed 116. Sale, lease or mortgage not to be invalidated by informality in execution 141. President of court of common pleas

xx

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Part VII Ch. 57–63 Litigation Part VIII Ch. 64–67 L/T Part IX Ch. 68–72 Condos, etc. Index

gtb-parealestate22-all.indb 21

Part VI Ch. 49–56 Taxation

xxi

Part V Ch. 41–48A Zoning, etc.

§ § § § § § § § § §

Part IV Ch. 36–40 Insurance

§ §

Part III Ch. 23–35 Mortgages

§ § § §

Part II Ch. 15–22 Deeds

§ § § § § § § § § § § § § § § § § § § § § § § § § § § § § § §

142. Repealed 143. Ward justices in boroughs 144. Mayor, recorder, and aldermen of Pittsburgh 145. Repealed 146. Repealed 147. Repealed 148. Repealed 149. Probate of deeds, etc., may be taken by the mayor and recorder of Philadelphia 150. Aldermen of Philadelphia county may take acknowledgment 151. Recorder of deeds 152. Power of recorder of deeds as to acknowledgments enlarged 153. Treasurers, commissioners, executors, etc., may acknowledge before any authorized officer 154. Repealed 155. Repealed 156. Repealed 181. Repealed 182. Repealed 183. Repealed 184. Repealed 185. Acknowledgments in territories of United States 186. May be taken in the District of Columbia 187. Acknowledgments in Cuba, and the island possessions, valid 188. The record of instruments so acknowledged previously, validated 189. Pending actions not affected 190. Proof of official character of person taking acknowledgment 191. Repealed 221. Repealed 222. Ambassadors, public ministers, etc. 223. Deputy consuls and commercial agents, etc., of United States 224. Acknowledgments taken before commissioners in chancery in foreign countries 225. Acknowledgments by married women out of United States 252. Deeds defective in form 253. Repealed 254. Deeds of husband and wife made prior to act of 1770 255. Repealed 256. Confirmation of title to real estate sold by trustees of married women 257. Repealed 258. Repealed 259. Defective acknowledgments by husband and wife prior to January 4, 1923 260. Defective acknowledgments by wife prior to April 4, 1901 261. Acknowledgments made in any of the United States by husband and wife 262. Conveyances by trustees 263. Deeds executed without the state, defectively acknowledged, but recorded thirty years 264. Above act to apply only when possession has accompanied the title 265. Deeds made in any other state 266. Sales by executors under wills probated in other states alone 267. Acknowledgments made before mayor or recorder of Philadelphia prior to January 9, 1817 268. Repealed 269. Deeds by county commissioners, which have not been acknowledged before a justice 269.1. Commissioners’ deed on resale of land purchased at tax sale 270. Acknowledgments under private seals of aldermen 271. Acknowledgments or probates without certification under seal 272. Repealed 273. Acts done by notaries, who were at the same time justices of the peace 274. Sheriff’s sales in mortgage foreclosures under act of 1901; application of act 274a. Sheriff’s sales when release of mortgage was not filed; validation 274b. Sheriff’s sales without inquisition of bonds not containing waiver; validation 275. Defective sheriffs’ deeds 276. Validation of deeds defectively executed

Part I Ch. 1–14 Brokers

§ § § § § § § § § § § §

Table of Contents

TABLE OF CONTENTS—PART II

12/22/21 10:45 AM

TABLE OF CONTENTS—Deeds Chapter 17   Law of Deeds and Conveyances (cont.) § 277. Validation of conveyances by corporations and partnerships § 277.1. Validation of defective acknowledgment by president of corporation § 277.2. Repealed § 278. Conveyances by executors or trustees under power of sale § 279. Correction of defective certificates by court § 280. Procedure by bill in equity § 281. Defective acknowledgments prior to 1931 § 281.1. Defective acknowledgments prior to 2013 § 282. Mortgage sales of realty by foreign fiduciaries validated; exception § 283. County treasurers’ deeds in tax sales validated notwithstanding defective acknowledgment § 283.1. County treasurer’s deeds validated notwithstanding defective acknowledgment or lack of acknowledgment in open court § 283.2. County treasurer’s deed validated; defective acknowledgment, etc. § 283.3. County treasurers deeds prior to December 31, 1965 validated; no proof of service filed, etc. § 284. Instruments acknowledged by grantors before themselves validated § 285. Acknowledgments in form used prior to Uniform Acknowledgment Act validated; admissibility in evidence; records § 286. Acknowledgments by persons in armed forces; validation; record; evidence § 287. Deed or transfer without certificate showing residence § 288. Cities of third class, deeds of § 289. Records of legal instruments having defective acknowledgments § 301. Sales made by attorneys or agents § 302. Future sales by power of attorney § 303. Deeds defectively executed under power of attorney § 304. Powers valid until notice of revocation § 321. Registration of deeds in counties with more than 500,000 inhabitants § 322. Deeds not to be recorded before registration § 323. Violation of act by recorder a misdemeanor; penalty § 324. Application of act limited § 325. Repealed § 325.1. Duty to accept deeds for recording; registration of unregistered deeds; fee §§ 326 to Repealed  328. § 329. City of Philadelphia, maintenance of day book by commissioner of records § 330. City of Philadelphia, issuance of receipts by commissioner of records § 351. Failure to record conveyance § 352. Repealed § 353. Repealed § 354. Repealed § 355. Repealed § 356. Agreements concerning real property § 357. Constructive notice as result of recordation § 358. Conditions for constructive notice; uniform parcel identifier; indexing of document § 359. Liability for mistake in index § 421. Deeds available, whether recorded by grantor or grantee § 441. Deeds prior in date to March 18, 1775 § 442. Deeds not so recorded, as evidence § 443. Unrecorded deeds void as against subsequent purchasers without notice § 444. All deeds made in the state to be acknowledged and recorded within ninety days § 445. Deeds proved out of state to be recorded within six months § 446. Certain deeds validated notwithstanding delay in recording § 451. Recording of affidavits; admissibility into evidence § 452. Contents of affidavit § 453. Requirements of affidavit; certification; index § 471. Deeds recorded to have the same effect as deeds of feoffment with livery and seisin § 481. Court direction; process; originals preserved § 482. Expense §§ 491 to Repealed  495.

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Part II Ch. 15–22 Deeds

§ § § §

496. Act made perpetual 497. Proceedings in case of lost or destroyed plan 498. Appointment of examiner; report; new plan 499. Costs; limitation of powers of examiner 521. Sale of timber or bark by deed 522. Deeds to be recorded; effect; evidence 523. Deeds recorded within six months to be valid; vested interests not affected 581. Title to lands supposed to be in Delaware and found to be in Pennsylvania; recording 582. Liens affecting such lands 583. Titles acquired under legal proceedings in Delaware 601. Validity 602. Repealed

Part I Ch. 1–14 Brokers

§ § § § § § § §

Table of Contents

TABLE OF CONTENTS—PART II

Part III Ch. 23–35 Mortgages

CHAPTER 18 RECORDERS OF DEEDS 16 P.S. § 9701 to 16 P.S. § 9857 § § § § §

Index

gtb-parealestate22-all.indb 23

Part IX Ch. 68–72 Condos, etc.

xxiii

Part VIII Ch. 64–67 L/T

§ § § §

Part VII Ch. 57–63 Litigation

§ § § § § § § § § § § § § §

Part VI Ch. 49–56 Taxation

§

Part V Ch. 41–48A Zoning, etc.

§ § § § § § § § § § § §

9701. Offices established 9702. Repealed 9703. Repealed 9704. Repealed 9705. Record of transfers to be furnished township commissioners and supervisors on request; fee 9706. Record of transfers to be furnished tax collectors on request; fee 9731. Books of record; entries and receipts; fees not to be taken 9732. Certificate of record to be indorsed on deed 9751. Leases for less than 21 years need not be recorded 9752. Receipts for taxes on unseated lands may be recorded 9753. Duty of officers to make acknowledgment 9754. Repealed 9755. Recording of letters of attorney 9756. Recording certificates, etc., of bankruptcy 9757. Duty of recorder of deeds; indexing 9758. Fees 9759. Final discharges of officers and persons in armed forces or women’s organizations; certificates of service; reports of separation and similar forms 9759.1. Final discharges of officers and persons in armed forces or women’s organizations; confidentiality of records 9781. Certificate as to grantee’s residence; lists certified to board of revision of taxes 9781.1. Uniform parcel identifier 9782. Name, and address of mortgagee or assignee to be furnished to recorder 9783. Recorder to certify same to county commissioners 9784. Failure to certify; penalty 9785. Application of act limited 9801. Duty to rerecord 9802. Effect of new record 9803. Cost of rerecording 9851. Direct and ad sectum indexes; location of property 9852. To index every deed and mortgage 9853. Index to be notice 9854. Costs of indexing 9854.1. Uniform parcel identifiers, etc. to be entered in general indexes for deeds and for mortgages 9854.2. Indexes arranged by uniform parcel identifiers 9855. Indexing tax deeds, sheriff’s deeds, etc., recorded in common pleas 9856. Expense to be borne by county 9857. Index as notice

Part IV Ch. 36–40 Insurance

Sec.

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TABLE OF CONTENTS—Deeds

CHAPTER 19 RECORDABLE DOCUMENTS AND ELECTRONIC RECORDING Chapter

19.1 Recordable Documents    21 P.S. § 381 to § 410 19.2 Uniform Real Property Electronic Recording Act    21 P.S. § 483.1 to § 483.9

CHAPTER 19.1 RECORDABLE DOCUMENTS 21 P.S. § 381 to § 410

Sec. § § § § § §

381. Deeds, etc., duly executed and acknowledged out of the state, may be recorded 382. Exemplification of deed to lands in two counties recorded in one county 383. Deeds of county commissioners 384. Letters of attorney, receipts, acquittances of legacies, etc. 385. Patents and official deeds 386. Releases of legacies and releases to executors, etc., duly acknowledged and sealed § 387. Release of legacy, etc., made out of state, but charged on land within the state § 388. Release of legacy without subscribing witnesses § 389. Repealed § 390. Deeds and patents from commonwealth § 391. Releases, etc., executed by married woman alone may be recorded §§ 392 to Repealed  398. § 399. Plan of subdivided tract; penalty for omission; recovery § 400. Record of minutes of corporate meeting § 401. Probate of minutes in case of dissolution of corporation § 402. Record and notation of judgments or decrees affecting deeds or instruments of record; fee § 403. Wills probated outside state; exemplified copies § 404. Lease or sublease or agreement to lease or sublease § 405. Memorandum of lease, sublease or agreement § 406. Indexing of lease, sublease or agreement § 407. Effect of recording lease, sublease, agreement or memorandum § 408. Construction of act regarding lease, sublease or agreement § 409. Effect of recording memorandum of lease, sublease or agreement § 410. Application of act regarding lease, sublease or agreement

CHAPTER 19.2 UNIFORM REAL PROPERTY ELECTRONIC RECORDING ACT 21 P.S. § 483.1 to § 483.9 § 483.1. § 483.2. § 483.3. § 483.4. § 483.5. § 483.6.

Short title Definitions Validity of electronic documents Recording of documents Commission Administration and standards

xxiv

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Construction of act Relation to Electronic Signatures in Global and National Commerce Act Savings provision

REAL ESTATE REGISTRIES Chapter

Sec.

§ 1202.

Specific powers

53 P.S. § 53601 to 53 P.S. § 53605

Sec.

53601. Registration of deeds; duties of secretary 53602. Access to public records 53603. Preservation of books, maps, and plans 53604. Owners and purchasers to register titles; penalty for failure 53605. Registration of sheriffs’ deeds; duties of prothonotaries and recorders

53 P.S. § 56310 to 53 P.S. § 56315

Sec.

56310. Provisions for registration of real estate 56311. Preparation of books, plans and maps 56312. Preservation of records 56313. Certified copies of entries admissible as evidence 56314. Duties imposed on owners of real estate when registry established; penalty 56315. Registry of properties; duty of county officers

gtb-parealestate22-all.indb 25

Index

xxv

Part IX Ch. 68–72 Condos, etc.

§ § § § § §

Part VIII Ch. 64–67 L/T

CHAPTER 20.3 REGISTRIES: FIRST CLASS TOWNSHIP CODE

Part VII Ch. 57–63 Litigation

§ § § § §

Part VI Ch. 49–56 Taxation

CHAPTER 20.2 REGISTRIES: INCORPORATED TOWNS

Part V Ch. 41–48A Zoning, etc.

8 Pa.C.S. § 1202

Part IV Ch. 36–40 Insurance

CHAPTER 20.1 REGISTRIES: BOROUGH CODE

Part III Ch. 23–35 Mortgages

20.1  Borough Code    8 Pa.C.S. § 1202 20.2  Incorporated Towns    53 P.S. § 53601 to 53 P.S. § 53605 20.3   1st Class Townships    53 P.S. § 56310 to 53 P.S. § 56315. 20.4   Second Class County Lot System and Registration of Property    16 P.S. § 3701 to 16 P.S. § 3708 20.5   Uniform Municipal Deed Registration Act    21 P.S. § 338.1 to 21 P.S. § 338.9

Part II Ch. 15–22 Deeds

CHAPTER 20

Part I Ch. 1–14 Brokers

§ 483.7. § 483.8. § 483.9.

Table of Contents

TABLE OF CONTENTS—PART II

12/22/21 10:45 AM

TABLE OF CONTENTS—Deeds CHAPTER 20.4 SECOND CLASS COUNTY LOT SYSTEM AND REGISTRATION OF PROPERTY 16 P.S. § 3701 to 16 P.S. § 3708

Sec. § § § § § § § §

3701. County commissioners to establish 3702. Systems which may be adopted 3703. Cost and expense 3704. Part of system transferred to deed registry office, part maintained in office of controller 3705. Putting system into effect 3706. Petition to common pleas; determination; order 3707. Effect of order; correction of assessments; recording instruments; tax bills; liens; tax sales 3708. Registration of ownership of property

CHAPTER 20.5 UNIFORM MUNICIPAL DEED REGISTRATION ACT 21 P.S. § 338.1 to 21 P.S. § 338.9

Sec. § § § § § § § § §

1. Short title 2. Definitions 3. Registration of deeds generally 4. Registration of owner or agent 5. Information access in lieu of registration 6. Fee for registration 7. Existing powers and duties preserved 8. Inconsistent ordinance or resolution 9. Repeals

CHAPTER 21 UNIFORM PARCEL IDENTIFIER LAW 21 P.S. § 331 to 21 P.S. § 337

Sec. § § § § § § §

1. Short title 2. Definitions 3. Ordinance requiring permanency of county maps 4. Assigning uniform parcel identifiers 5. Recording procedures 6. Fees 7. Home rule charter and optional plan counties

CHAPTER 22 UNIFORM ACKNOWLEDGMENT ACT 21 P.S. § 291.1 to 21 P.S. § 291.13

Sec. § § § § § §

1 Acknowledgment of instruments 2. Acknowledgment within the State 3. Acknowledgment within the United States 4. Acknowledgment without the United States 5. Requisites of acknowledgment 6. Acknowledgment by a married woman

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7. Forms of certificates 8. Execution of certificate 9. Authentication of acknowledgments 10. Acknowledgments under laws of other states 10a. Acknowledgment by persons serving in or with the armed forces of the United States or their dependents within or without the United States § 11. Acknowledgments not affected by this Act § 12. Uniformity of interpretation § 13. Name of Act

Part I Ch. 1–14 Brokers

§ § § § §

Part II Ch. 15–22 Deeds

PART III

Part III Ch. 23–35 Mortgages

MORTGAGES AND OTHER LIENS CHAPTER 23 21 P.S. § 621 to 21 P.S. § 951

Part IX Ch. 68–72 Condos, etc. Index

gtb-parealestate22-all.indb 27

Part VIII Ch. 64–67 L/T

xxvii

Part VII Ch. 57–63 Litigation

§ § § § § §

Part VI Ch. 49–56 Taxation

§ §

621. Mortgages to be recorded within six months 622. Priority according to date of recording 623. Repealed 623-1. Assignments to be in writing 623-2. Residence of assignee 623-3. Duty of recorder 623-4. Fee 624. Assignments to be entered on margin of record of mortgage 625. Certificate of residence of mortgagee or assignee 626. Repealed 627. Validation of mortgages made between January 1, 1776, and June 18, 1778 628. Saving the rights of intermediate purchasers and encumbrancers 629. Stipulation of general mortgage provisions 630. Short form mortgages 631. Operation and effect of short form mortgage 632. Recording of stipulations of general mortgage provisions 633. Recording of short form mortgages 651. Repealed 652. Prior lien of taxes 653. Entry of judgment not to affect lien of mortgage 654. Agreement postponing lien of mortgage 655. Grantee not to be liable for encumbrances 656. Extent of personal liability 731. Holders of mortgages may be required to assign the same in certain cases 732. Assignment may be enforced by court 733. Assignment on tender of money due 734. Failure or refusal to assign; court to enforce 735. Compulsory assignment to mortgagor tendering payment after sale of land 736. Petition if mortgagee refuses to assign; mortgagor discharged from liability on bond 737. Copy of decree recorded; mortgagee’s lien confined to mortgaged premises 738. Prothonotary to note decree on judgment index; record and notation on margin of mortgage 761. Mortgagee may release part of mortgaged premises and proceed against remainder 762. Receipts for instalments entered on record; penalty for neglect 763. Credits entered on margin of record every three years 764. Penalty for neglect to enter credits 805. Recorders; release of mortgage noted on record; exception 951. Defeasances; requisites

Part V Ch. 41–48A Zoning, etc.

§ § § § § § § § § § § § § § § § § § § § § § § § § § § § §

Part IV Ch. 36–40 Insurance

LAW OF MORTGAGES GENERALLY Sec.

Table of Contents

TABLE OF CONTENTS—PART III

12/22/21 10:45 AM

TABLE OF CONTENTS—Mortgages

CHAPTER 24 LOAN INTEREST AND PROTECTION LAW MAXIMUM INTEREST RATES: “ACT 6” 41 P.S. § 101 to 41 P.S. § 605

Sec. § § § § § § § § § § § § § § § § § § § § § § § § § § §

101. Definitions 201. Maximum lawful interest rate 202. Legal rate of interest 301. Residential mortgage interest rates 302. Federally guaranteed loans 303. Commitments to enter into residential mortgages 401. Disclosure requirements 401.1. Photocopies of security documents 402. Discount points prohibited 403. Notice of intention to foreclose 404. Right to cure a default 405. Prepayment penalty prohibited 406. Attorney’s fees payable 407. Confession of judgment 408. Waivers 501. Excessive interest need not be paid 502. Usury and excess charges recoverable 503. Reasonable attorney’s fees recoverable 504. Individual actions permitted 505. Penalties 506. Enforcement 507. Effect on other acts 601. Regulations 602. Construction; title of purchaser 603. Repeals 604. Effect on inconsistent acts 605. Effective date

CHAPTER 24A VACANT AND ABANDONED REAL ESTATE FORECLOSURE ACT 68 Pa.C.S. §§ 2301-2312 Subch. A Vacant and Abandoned Property B. Sheriff’s Commission and Creditor Attorney Fees

SUBCHAPTER A VACANT AND ABANDONED PROPERTY Sec.

2301. Short title of subchapter. 2302. Legislative findings and purpose. 2303. Definitions. 2304. Certification of vacant and abandoned mortgaged property. 2305. Requirements to certify mortgaged property as vacant and abandoned. 2306. Effect of certification of vacancy and abandonment. 2307.  Post-sheriff’s sale possessory action, effect of certification of vacancy and abandonment in action for possession and disposition of abandoned personal property. 2308. Construction.

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Sec.

CONSUMER CREDIT COST DISCLOSURE TRUTH IN LENDING ACT 15 U.S.C. § 1601 et seq.

Part III Ch. 23–35 Mortgages

CHAPTER 25

Part II Ch. 15–22 Deeds

2309. (Reserved). 2310. Sheriff’s commission. 2311. Limitation on creditor’s attorney fees. 2312. Applicability.

Part I Ch. 1–14 Brokers

SUBCHAPTER B SHERIFF’S COMMISSION AND CREDITOR ATTORNEY FEES

Table of Contents

TABLE OF CONTENTS—PART III

Sec.

Part VIII Ch. 64–67 L/T Part IX Ch. 68–72 Condos, etc. Index

gtb-parealestate22-all.indb 29

Part VII Ch. 57–63 Litigation

xxix

Part VI Ch. 49–56 Taxation

§ § § § § § § § § § § § § § § §

Part V Ch. 41–48A Zoning, etc.

§ § § § § § § § §

1601. Congressional findings and declaration of purpose 1602. Definitions and rules of construction 1603. Exempted transactions 1604. Disclosure guidelines 1605. Determination of finance charge 1606. Determination of annual percentage rate 1607. Administrative enforcement 1608. Views of other agencies 1609. Repealed. Pub. L. 94-239, §3(b)(1), Mar. 23, 1976, 90 Stat. 253 1610. Effect on other laws 1611. Criminal liability for willful and knowing violation 1612. Effect on government agencies 1613. Annual reports to Congress by Bureau 1614. Repealed. Pub. L. 96-221, title VI, §616(b), Mar. 31, 1980, 94 Stat. 182 1615. Prohibition on use of “Rule of 78’s” in connection with mortgage refinancings and other consumer loans 1616. Board review of consumer credit plans and regulations 1631. Disclosure requirements 1632. Form of disclosure; additional information 1633. Exemption for State-regulated transactions 1634. Effect of subsequent occurrence 1635. Right of rescission as to certain transactions 1636. Repealed. Pub. L. 96-221, title VI, §614(e)(1), Mar. 31, 1980, 94 Stat. 180 1637. Open end consumer credit plans 1637a. Disclosure requirements for open end consumer credit plans secured by consumer’s principal dwelling 1638. Transactions other than under an open end credit plan 1638a. Reset of hybrid adjustable rate mortgages 1639. Requirements for certain mortgages 1639a. Duty of servicers of residential mortgages 1639b. Residential mortgage loan origination 1639c. Minimum standards for residential mortgage loans 1639d. Escrow or impound accounts relating to certain consumer credit transactions 1639e. Appraisal independence requirements 1639f. Requirements for prompt crediting of home loan payments 1639g. Requests for payoff amounts of home loan 1639h. Property appraisal requirements 1640. Civil liability 1641. Liability of assignees 1642. Issuance of credit cards 1643. Liability of holder of credit card 1644. Fraudulent use of credit cards; penalties

Part IV Ch. 36–40 Insurance

§ § § § § § § § § § § § § § §

12/22/21 10:45 AM

TABLE OF CONTENTS—Mortgages Chapter 25   Consumer Credit Cost Disclosure Truth in Lending Act (cont.) § 1645. Business credit cards; limits on liability of employees § 1646. Dissemination of annual percentage rates; implementation, etc. § 1647. Home equity plans § 1648. Reverse mortgages § 1649. Certain limitations on liability § 1650. Preventing unfair and deceptive private educational lending practices and eliminating conflicts of interest § 1651. Procedure for timely settlement of estates of decedent obligors § 1661. Catalogs and multiple-page advertisements § 1662. Advertising of downpayments and installments § 1663. Advertising of open end credit plans § 1664. Advertising of credit other than open end plans § 1665. Nonliability of advertising media § 1665a. Use of annual percentage rate in oral disclosures; exceptions § 1665b. Advertising of open end consumer credit plans secured by consumer’s principal dwelling § 1665c. Interest rate reduction on open end consumer credit plans § 1665d. Reasonable penalty fees on open end consumer credit plans § 1665e. Consideration of ability to repay § 1666. Correction of billing errors § 1666a. Regulation of credit reports § 1666b. Timing of payments § 1666c. Prompt and fair crediting of payments § 1666d. Treatment of credit balances § 1666e. Notification of credit card issuer by seller of return of goods, etc., by obligor; credit for account of obligor § 1666f. Inducements to cardholders by sellers of cash discounts for payments by cash, check or similar means; finance charge for sales transactions involving cash discounts § 1666g. Tie-in services prohibited for issuance of credit card § 1666h. Offset of cardholder’s indebtedness by issuer of credit card with funds deposited with issuer by cardholder; remedies of creditors under State law not affected § 1666i. Assertion by cardholder against card issuer of claims and defenses arising out of credit card transaction; prerequisites; limitation on amount of claims or defenses § 1666i-1. Limits on interest rate, fee, and finance charge increases applicable to outstanding balances § 1666i-2. Additional limits on interest rate increases § 1666j. Applicability of State laws § 1667. Definitions § 1667a. Consumer lease disclosures § 1667b. Lessee’s liability on expiration or termination of lease § 1667c. Consumer lease advertising; liability of advertising media § 1667d. Civil liability of lessors § 1667e. Applicability of State laws; exemptions by Bureau from leasing requirements § 1667f. Regulations

CHAPTER 26 HOUSING FINANCE AND SETTLEMENT ASSISTANCE Chapter

26.1   Housing Finance Agency Law    35 P.S. § 1680.101 to § 603a 26.2   Homeowner Assistance Settlement Act    35 P.S. § 1681.1 to § 1681.7

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35 P.S. § 1680.101 to 35 P.S. § 1680.603a

Sec.

Part IV Ch. 36–40 Insurance Part V Ch. 41–48A Zoning, etc. Part VI Ch. 49–56 Taxation Part VII Ch. 57–63 Litigation Part VIII Ch. 64–67 L/T Part IX Ch. 68–72 Condos, etc. Index

gtb-parealestate22-all.indb 31

Part III Ch. 23–35 Mortgages

xxxi

Part II Ch. 15–22 Deeds

§ 101. Short title § 102. Findings and declaration of policy § 102a. Further declaration of policy § 103. Definitions § 104. Constitutional construction § 201. Agency creation § 202. Agency membership § 203. Agency governing body § 204. Repealed § 205. Agency powers § 206. Agency moneys § 207. Agency audits and reports § 208. Housing studies §§ 301 to Repealed  311. § 301a. Housing purchase program §§ 401 to Repealed  412. § 401a. Rental housing program § 402a. Mortgage loans § 403a. Rental charges § 404a. Tenants § 401b. General statement § 402b. Allocation of loans § 401c. General authority § 402c. Notice and institution of foreclosure proceedings § 403c. Notice requirements § 404c. Eligibility for assistance § 405c. Assistance payments § 406c. Repayment § 407c. Financial institutions § 408c. Homeowner’s emergency mortgage assistance fund § 409c. Insufficient funds § 410c [Repealed] § 411c [Repealed] § 412c. Ongoing foreclosure study § 401d. Definitions § 402d. Establishment § 403d. Program § 404d. Plan § 405d. Reporting § 406d. Fund § 407d. Funding §§ 501 to Repealed  515. § 501a. Issuance of bonds and notes § 501a.1. Qualified housing bonds § 502a. Credit of Commonwealth or any subdivision thereof not pledged § 503a. Funds and accounts § 504a. Reserve funds and appropriations § 505a. Trust agreement § 506a. Bonds and notes tax exempt § 507a. Notes and bonds as legal investments § 508a. Covenant by Commonwealth not to limit or alter powers vested in agency §§ 601 to Repealed  603. § 601a. Liberal construction

Part I Ch. 1–14 Brokers

CHAPTER 26.1 HOUSING FINANCE AGENCY LAW

Table of Contents

TABLE OF CONTENTS—PART III

12/22/21 10:45 AM

TABLE OF CONTENTS—Mortgages § 602a. Fraud penalty § 603a. Effective date; proclamation

CHAPTER 26.2 HOMEOWNER ASSISTANCE SETTLEMENT ACT 35 P.S. § 1681.1 to § 1681.7

Sec. § § § § §

1681.1. 1681.2. 1681.3. 1681.4. 1681.5.

Short title Definitions Homeowner Assistance Settlement Fund Initial allocation Effect of noncompliance with notice requirements in the Homeowner’s Emergency Mortgage Assistance Program § 1681.6. Severability § 1681.7. Applicability

CHAPTER 27 MORTGAGE LOAN INDUSTRY LICENSING AND CONSUMER PROTECTION 7 Pa.C.S. §§ 6101–6154

Subch. A. B. C. D. E.

Preliminary Provisions License Requirements and Exceptions Mortgage Loan Business Restrictions and Requirements Administrative and Licensure Provisions Miscellaneous Provisions

SUBCHAPTER A PRELIMINARY PROVISIONS Sec.

§ 6101. Scope and short title. § 6102. Definitions.

SUBCHAPTER B LICENSE REQUIREMENTS AND EXCEPTIONS Sec.

§ 6111. License requirements. § 6112. Exceptions to license requirements.

SUBCHAPTER C MORTGAGE LOAN BUSINESS RESTRICTIONS AND REQUIREMENTS Sec. § § § § § §

6121. 6122. 6123. 6124. 6125. 6126.

General requirements. Powers conferred on certain licensees engaged in the mortgage loan business. Mortgage loan business prohibitions. Prohibited clauses in mortgage loan documents. Mortgage lending authority. Requirements as to open-end loans

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Sec.

6151. Applicability. 6152. Relationship to other laws. 6153. Preservation of existing contracts. 6154. Procedure for determination of noncompliance with Federal law (Repealed).

PRIVATE TRANSFER FEE OBLIGATION ACT 68 Pa.C.S. §§ 8101–8107

Sec.

8101. 8102. 8103. 8104. 8105. 8106. 8107.

Short title of chapter Intent Definitions Prohibition Liability for violation Disclosure Notice requirements for existing private transfer fee obligations

MORTGAGE BANKERS AND BROKERS AND CONSUMER EQUITY PROTECTION ACT

Part VII Ch. 57–63 Litigation

CHAPTER 28

Part VI Ch. 49–56 Taxation

§ § § § § § §

Part V Ch. 41–48A Zoning, etc.

CHAPTER 27A

Part IV Ch. 36–40 Insurance

Sec.

Part III Ch. 23–35 Mortgages

SUBCHAPTER E MISCELLANEOUS PROVISIONS

Part II Ch. 15–22 Deeds

6131. Application for license. 6131.1. Prelicensing and continuing education. 6132. License fees. 6133. Issuance of license. 6134. License duration. 6135. Licensee requirements. 6136. Licensee limitations. 6137. Surrender of license. 6138. Authority of department. 6139. Suspension, revocation or refusal. 6140. Penalties. 6141. Mortgage servicers.

Part I Ch. 1–14 Brokers

SUBCHAPTER D ADMINISTRATIVE AND LICENSURE PROVISIONS

Table of Contents

TABLE OF CONTENTS—PART III

63 P.S. § 456.101 to 63 P.S. § 456.3101

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Index

101. Short title 102. Definitions 301–318 Repealed [See Chapter 27, supra] 501. Scope 502. Legislative findings 503. Definitions 504. Relationship to other laws 511. Limitations on covered loan terms 512. Restricted acts and practices 513. Additional requirements 521. Enforcement 522. Civil liability 523. Information sharing

Part IX Ch. 68–72 Condos, etc.

§ § § § § § § § § § § § §

Part VIII Ch. 64–67 L/T

Sec.

12/22/21 10:45 AM

TABLE OF CONTENTS—Mortgages § 524. Regulations § 3101. Effective date

CHAPTER 29 MORTGAGE SATISFACTION Chapter

29.1  Satisfaction Generally    21 P.S. § 681 to 21 P.S. § 705 29.2   First Class City Mortgage Satisfaction    21 P.S. § 711 to 21 P.S. § 717 29.3   Second to Eighth Class County Mortgage Satisfaction    21 P.S. § 720-1 to 21 P.S. § 720-9 29.4   Mortgage Satisfaction Act    21 P.S. § 721-1 to 21 P.S. § 721-12

CHAPTER 29.1 SATISFACTION GENERALLY 21 P.S. § 681 to 21 P.S. § 705

Sec.

§ 681. Satisfaction of mortgage on margin of record or by satisfaction piece § 682. Fine for neglect § 683. Repealed § 684. Repealed § 685. Satisfaction of mortgage by prothonotary or recorder § 686. Repealed § 687. Repealed § 688. Satisfaction in case of presumption of payment from lapse of time §§ 689 to Repealed  699. § 700. Satisfaction of mortgages to commonwealth § 700.1. Presumption of release of mortgages held by commonwealth; satisfaction § 701. Power of attorney to recorder of deeds to enter satisfaction § 702. Validation of previous satisfactions § 703. Repealed § 704. Reserved § 705. Notice requirement

CHAPTER 29.2 FIRST CLASS CITY MORTGAGE SATISFACTION 21 P.S. § 711 to 21 P.S. § 717

Sec. § § § § § § §

1. Definitions 2. Satisfaction piece; recording; execution; effect 3. Contents of satisfaction piece 4. Indexing of satisfaction piece 5. Satisfaction by order or decree 6. Fee 7. Form of satisfaction piece

CHAPTER 29.3 SECOND TO EIGHTH CLASS COUNTY MORTGAGE SATISFACTION 21 P.S. § 720-1 to 21 P.S. § 720-9

Sec.

§ 1. Definitions

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CHAPTER 29.4 MORTGAGE SATISFACTION ACT 21 P.S. § 721-1 to 21 P.S. § 721-12 1. Short title 2. Definitions 3. Satisfactions, methods and indexing 4. Satisfaction piece required and effect of satisfaction piece 5. Form of satisfaction piece 6. Notice to satisfy; damages for failure to satisfy 7. Residential mortgages; settlement officer satisfaction 8. Residential mortgages; objection to settlement officer satisfaction 9. Other rules or laws not affected 10. Prior instruments 11. Repeals 12. Applicability

RESIDENTIAL REAL ESTATE TRANSACTIONS

Part V Ch. 41–48A Zoning, etc.

CHAPTER 30

Part IV Ch. 36–40 Insurance

§ § § § § § § § § § § §

Part III Ch. 23–35 Mortgages

Sec.

Part II Ch. 15–22 Deeds

2. Satisfaction piece, effect of recording 3. Satisfaction piece, contents, execution, acknowledgment, mortgage accompanying 4. Form of satisfaction piece 5. Recording; indexing; reference on mortgage record 6. Mistakes, liability 7. Other statutes or rule of civil procedure 8. Fee for recording 9. Prior written satisfactions

Part I Ch. 1–14 Brokers

§ § § § § § § §

Table of Contents

TABLE OF CONTENTS—PART III

10 Pennsylvania Code Chapter 7 Sec.

CONTINUING EDUCATION 10 Pennsylvania Code Chapter 44 32 Pa.B. 1180; 40 Pa.B. 2940

Part IX Ch. 68–72 Condos, etc.

MORTGAGE BANKERS AND BROKERS AND CONSUMER EQUITY PROTECTION

Part VIII Ch. 64–67 L/T

CHAPTER 31

Part VII Ch. 57–63 Litigation

7.1. Scope. 7.2. Definitions and rules of construction. 7.3. Determination of loan yield. 7.4. Notice of intention to foreclose mortgage. 7.5. Commitments to enter into residential mortgages. 7.6. [Reserved]. 7.7. [Reserved]. 7.8. Prepayment penalty prohibited. 7.9. Disclosure requirements—statement of policy.

Part VI Ch. 49–56 Taxation

4 Pa.B. 509

Sec.

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Index

§ 44.1–44.5.   [Reserved].

12/22/21 10:45 AM

TABLE OF CONTENTS—Mortgages

CHAPTER 32 REAL ESTATE APPRAISERS Chapter

32.1   Real Estate Appraisers Certification Act    63 P.S. §§ 457.1 to 457.19 32.2 Appraisal Management Company Registration Act    63 P.S. §§ 457.21–457.31

CHAPTER 32.1 REAL ESTATE APPRAISERS CERTIFICATION ACT 63 P.S. § 457.1 to 63 P.S. § 457.19

Sec. § § § § § § § § § § § § § § § § § § §

1. Short title 2. Definitions 3. Real estate appraiser certification required 4. State Board of Certified Real Estate Appraisers 5. Powers and duties of board 6. Application and qualifications 7. Reciprocity 8. Temporary practice 9. Fees 10. Certification renewal; records 11. Disciplinary and corrective measures 12. Reinstatement of certificate 13. Reporting of multiple certification 14. Surrender of suspended or revoked certificate 15. Penalties 16. Subpoenas 17. Injunctive relief 18. Scope of practice 19. Appropriation

CHAPTER 32.2 APPRAISAL MANAGEMENT COMPANY REGISTRATION ACT 63 P.S. §§ 457.21 – 457.31 § § § § § § § § § § §

1. 2. 3. 4. 5. 6. 7. 8. 9. 10. 11.

Short title Definitions Registration of appraisal management companies required Powers of board Requirements for registration Fees and renewals Responsibilities and duties of appraisal management companies Prohibited activities Registry of applicants and roster Disciplinary measures Application

CHAPTER 33 PRIORITY OF LIENS 42 P.S. § 8141 to 42 P.S. § 8144

Sec.

§ 8141. Time from which liens have priority § 8142. Endorsement of time

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Table of Contents

TABLE OF CONTENTS—PART III § 8143. Open-end mortgages § 8144. Mortgages to secure certain advances

Part I Ch. 1–14 Brokers

MECHANICS’ LIEN LAW OF 1963 49 P.S. § 1101 to 49 P.S. § 1902

Sec.

Part VI Ch. 49–56 Taxation Part VII Ch. 57–63 Litigation Part VIII Ch. 64–67 L/T Part IX Ch. 68–72 Condos, etc. Index

gtb-parealestate22-all.indb 37

Part V Ch. 41–48A Zoning, etc.

xxxvii

Part IV Ch. 36–40 Insurance

101. Short title 201. Definitions 301. Right to lien; amount; subcontractor 302. Presumption as to use of materials 303. Lien not allowed in certain cases 304. Excessive curtilage 305. Right to lien in case of noncompletion of work 306. Consolidation or apportionment of claims 307. Removal or detachment of improvement subject to claim 401. Waiver of lien by claimant 402. Waiver by contractor; effect on subcontractor 403. Release as waiver 404. Effect of credit or collateral 405. Right of owner to limit claims to unpaid balance of contract price 406. Right of subcontractor to rescind after notice of contract provisions 407. Contracts not made in good faith; effect 501. Notices by subcontractor as condition precedent 501.1. State construction notices directory 501.2. Failure to file notice of furnishing 501.3. Notice of commencement and notice of furnishing 501.4. Notice of completion for informational purposes only 501.5. Notice 501.6. Prohibition 502. Filing and notice of filing of claim 503. Contents of claim 504. Amendment of claim 505. Procedure for contesting claim; preliminary objections 506. Rule to file claim 507. Indexing claims, et cetera 508. Priority of lien 509. Effect of forfeiture of leasehold 510. Discharge of lien on payment into court or entry of security 601. Owner’s right to retain funds of contractor 602. Notice to contractor of claim 603. Contractor’s duties on receipt of notice 604. Additional remedies of owner 701. Procedure to obtain judgment 702. Effect of judgment on right to personal action 703. Appeal from judgment 704. Satisfaction of claims; penalty for failure to satisfy 705. Revival of judgment 706. Execution upon judgment 801. Severability 802. Effective date 901. Specific repeal 902. General repeal

Part III Ch. 23–35 Mortgages

§ § § § § § § § § § § § § § § § § § § § § § § § § § § § § § § § § § § § § § § § § § § § § §

Part II Ch. 15–22 Deeds

CHAPTER 34

12/22/21 10:45 AM

TABLE OF CONTENTS—Hazard, Title, & Mortgage Insurance

CHAPTER 35 CONTRACTOR AND SUBCONTRACTOR PAYMENT ACT 73 P.S. § 501 to 73 P.S. § 516

Sec. § § § § § § § § § § § § § § § §

1. Short title 2. Definitions 3. Application of act 4. Performance by contractor or subcontractor 5. Owner’s payment obligations 6. Owner’s withholding of payment for good faith claims 7. Contractor’s and subcontractor’s payment obligations 8. Errors in documentation 9. Retainage 10. Prepayment; advance payment 11. Contractor’s withholding of payment for good faith claims 12. Penalty and attorney fee 13. Contracts involving Federal aid 14. Applicable law 15. Applicability 16. Third party claims

PART IV HAZARD, TITLE, & MORTGAGE INSURANCE CHAPTER 36 TITLE INSURANCE COMPANIES 40 P.S. § 910-1 to 40 P.S. § 910-55

Sec. § § § § § § § § § § § § § § § § § § §

701. Definitions 702. Application of article 703. Compliance with article required 704. Corporate form required 705. Financial requirements 706. Procedure when capital impaired 707. Title examination required 708. Power to insure titles to real estate 709. Prohibition upon guaranteeing mortgages 710. Power to insure titles to real estate; loss of power 711. Power to accept deposits; loss of title insurance powers 712. Power to act as a fiduciary; loss of title insurance powers 713. Power of title insurance company. Prohibition against transacting other kinds of insurance; prohibition against other kinds of insurance companies transacting title insurance 714. Unearned premium reserve 715. Amount of unearned premium reserve; release thereof 716. Investment and maintenance of the unearned premium reserve 717. Use of the unearned premium reserve 718. Reserve for unpaid losses and loss expense 719. Primary retained liability

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Index

gtb-parealestate22-all.indb 39

Part IX Ch. 68–72 Condos, etc.

xxxix

Part VIII Ch. 64–67 L/T

1. Notice of increase in premium 2. Grounds for cancellation 3. Notice requirements for midterm cancellations and nonrenewals 4. Return of unearned premium 5. Extended reporting endorsement 6. Compliance 7. Applicability 8. Penalties 9. Rulemaking authority

Part VII Ch. 57–63 Litigation

§ § § § § § § § §

Part VI Ch. 49–56 Taxation

Sec.

Part V Ch. 41–48A Zoning, etc.

40 P.S. § 3401 to 40 P.S. § 3409

Part IV Ch. 36–40 Insurance

NOTICE REQUIREMENTS OF PROPERTY AND CASUALTY INSURERS

Part III Ch. 23–35 Mortgages

CHAPTER 37

Part II Ch. 15–22 Deeds

§ § § § § § § § §

720. Power to reinsure 721. Special reinsurance 722. Licensure 723. Repealed 724. Agents; defined 724.1. Additional requirements 724.2. Financial responsibility 725. Agents; names to be certified to commissioner 726. Agents; to be certified and appointed 726.1. Other requirements 727. Agents; books, records, etc. 728. Agents; replies to inquiries by Commissioner 729. Agents; certain names prohibited 730. Repealed 731. Commissions; other considerations prohibited 732. Capital 733. Surplus 734. Unearned premium reserve 735. Other reserves 736. Investments acquired before effective date 737. Rate filing 738. Justification for rates 739. Making of rates 739.1. Conditions 739.2. Division of fees 740. Disapproval of filings 741. Rating organizations 742. Deviations 743. Appeal by minority 744. Information to be furnished insureds; hearings and appeals of insureds 745. Examinations of rating organizations 746. Rate administration; authority and duties of Commissioners; rules and regulations 747. False or misleading information 748. Penalties 749. Hearing procedure and judicial review 750. Existing filings and hearings, continued 751. Repealed 752. Repealed 753. Repealed 754. Other sections applicable 755. Investment plan

Part I Ch. 1–14 Brokers

§ § § § § § § § § § § § § § § § § § § § § § § § § § § § § § § §

Table of Contents

TABLE OF CONTENTS—PART IV

12/22/21 10:45 AM

TABLE OF CONTENTS—Hazard, Title, & Mortgage Insurance

CHAPTER 38 INSURANCE ADJUSTERS 63 P.S. §§ 1601 to 1608

Sec.

§ 1. § 2. § 2.1. § 2.2. § 2.3. § 2.4. § 2.5. § 3. § 3.1. § 4. § 5. § 6. § 7. § 7.1. § 8.

Definitions License Application for public adjuster license Licensing Issuance and term of license License renewals Reciprocal licensing Reserved Written disclosure of financial interest Bond Contract Revocation, etc., of license Violations Civil remedy Administration and enforcement

CHAPTER 39 THE PENNSYLVANIA FAIR PLAN ACT 40 P.S. § 1600.101 to 40 P.S. § 1600.502

Sec. § § § § § § § § § § § § § § § § § § § § § § § § §

101. Short title 102. Purposes 103. Definitions 201. Industry placement facility 202. Fair plan 203. Distribution of risks 204. Uninsurable risks 205. Rules; regulations 206. Annual and other statements 207. Privileged communications 208. Appeals; judicial review 301. Formation of authority 302. Governing body; administration 303. Powers of authority 304. Civil Disorder Authority Fund 305. Reimbursement payments to Federal reinsurance facility; necessity for claim by Federal reinsurance facility; limitation on amount of payments 306. Bonds of authority 307. Remedies of bondholders 401. Basic property insurance assessment 402. Payment to Pennsylvania Civil Disorder Authority 403. Reports and statements 404. Effective date 405. Termination of assessment 501. Constitutionality 502. Effective date

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Table of Contents

TABLE OF CONTENTS—PART V

CHAPTER 40 Part I Ch. 1–14 Brokers

MORTGAGE PROPERTY INSURANCE COVERAGE ACT 7 P.S. §§ 6701–6703

Sec.

Part II Ch. 15–22 Deeds

§ 1. Short title § 2. Definitions § 3. Restriction

PART V

Part III Ch. 23–35 Mortgages

ZONING, PLANNING, AND GOVERNMENT REGULATION

Part IV Ch. 36–40 Insurance

CHAPTER 41 MUNICIPALITIES PLANNING CODE 53 P.S. § 10101 to 53 P.S. § 11202

Sec.

Part IX Ch. 68–72 Condos, etc. Index

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Part VIII Ch. 64–67 L/T

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Part VII Ch. 57–63 Litigation

§ § §

Part VI Ch. 49–56 Taxation

§

10101. Short title 10102. Effective date 10103. Construction of act 10104. Constitutional construction 10105. Purpose of act 10106. Appropriations, grants and gifts 10107. Definitions 10108. Optional notice of ordinance or decision 10109. Notice 10201. Creation of planning agencies 10202. Planning commission 10203. Appointment, term and vacancy 10204. Repealed 10205. Membership 10206. Removal 10207. Conduct of business 10208. Planning department director 10209. Repealed 10209.1. Powers and duties of planning agency 10210. Administrative and technical assistance 10211. Assistance 10212. Intergovernmental cooperation 10301. Preparation of comprehensive plan 10301.1. Energy conservation plan element 10301.2. Surveys by planning agency 10301.3. Submission of plan to county planning agency 10301.4. Compliance by counties 10301.5. Funding of municipal planning 10302. Adoption of Municipal, Multimunicipal and County Comprehensive Plans and Plan Amendments 10303. Legal status of comprehensive plan within the jurisdiction that adopted the plan 10304. Legal status of county comprehensive plans within municipalities 10305. The legal status of comprehensive plans within school districts 10306. Municipal and county comprehensive plans

Part V Ch. 41–48A Zoning, etc.

§ § § § § § § § § § § § § § § § § § § § § § § § § § § § §

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TABLE OF CONTENTS—Zoning, Planning and Regulation Chapter 41   Municipalities Planning Code (cont.) § 10307. State Land Use and Growth Management Report § 10401. Grant of power § 10402. Adoption of the official map and amendments thereto § 10403. Effect of approved plats on official map § 10404. Effect of official map on mapped streets, watercourses and public grounds § 10405. Buildings in mapped streets, watercourses or other public grounds § 10406. Time limitations on reservations for future taking § 10407. Release of damage claims or compensation § 10408. Notice to other municipalities § 10501. Grant of power § 10502. Jurisdiction of county planning agencies; adoption by reference of county subdivision and land development ordinances § 10502.1. Contiguous municipalities § 10503. Contents of subdivision and land development ordinance § 10503.1. Water supply § 10504. Enactment of subdivision and land development ordinance § 10505. Enactment of subdivision and land development ordinance amendment § 10506. Publication, advertisement and availability of ordinance § 10507. Effect of subdivision and land development ordinance § 10508. Approval of plats § 10508.1. Notice to School District. § 10509. Completion of improvements or guarantee thereof prerequisite to final plat approval § 10510. Release from improvement bond § 10511. Remedies to effect completion of improvements § 10512. Repealed § 10512.1. Modifications § 10513. Recording plats and deeds § 10514. Effect of plat approval on official map § 10515. Repealed § 10515.1. Preventive remedies § 10515.2. Jurisdiction § 10515.3. Enforcement remedies § 10516. Repealed § 10501-A. Purposes § 10502-A. Definitions § 10503-A. Grant of power § 10504-A. Transportation capital improvements plan § 10505-A. Establishment and administration of impact fees § 10506-A. Appeals § 10507-A. Prerequisites for assessing sewer and water tap-in fees § 10508-A. Joint Municipal Impact Fee Ordinance § 10601. General powers § 10602. County powers § 10602.1. County review; dispute resolution § 10603. Ordinance provisions § 10603.1. Interpretation of ordinance provisions § 10604. Zoning purposes § 10605. Classifications § 10606. Statement of community development objectives § 10607. Preparation of proposed zoning ordinance § 10608. Enactment of zoning ordinance § 10608.1. Municipal authorities and water companies § 10609. Enactment of zoning ordinance amendments § 10609.1. Procedure for landowner curative amendments § 10609.2. Procedure upon municipal curative amendments § 10610. Publication, advertisement and availability of ordinances § 10611. Repealed § 10612. Repealed § 10613. Registration of nonconforming uses, structures and lots § 10614. Appointment and powers of zoning officer § 10615. Zoning appeals § 10616. Repealed § 10616.1. Enforcement notice

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Part IV Ch. 36–40 Insurance Part V Ch. 41–48A Zoning, etc. Part VI Ch. 49–56 Taxation Part VII Ch. 57–63 Litigation Part VIII Ch. 64–67 L/T Part IX Ch. 68–72 Condos, etc. Index

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Part III Ch. 23–35 Mortgages

xliii

Part II Ch. 15–22 Deeds

10617. Causes of action 10617.1. Jurisdiction 10617.2. Enforcement remedies 10617.3. Finances and expenditures 10618. Repealed 10619. Exemptions 10619.1. Transferable development rights 10619.2. Effect of comprehensive plans and zoning ordinances 10620. Repealed 10621. Prohibiting the location of methadone treatment facilities in certain locations 10701. Purposes 10702. Grant of power 10702.1. Transferable development rights 10703. Applicability of comprehensive plan and statement of community development objectives § 10704. Jurisdiction of county planning agencies § 10705. Standards and conditions for planned residential development § 10706. Enforcement and modification of provisions of the plan § 10707. Application for tentative approval of planned residential development § 10708. Public hearings § 10709. The findings § 10710. Status of plan after tentative approval § 10711. Application for final approval § 10712. Repealed § 10712.1. Jurisdiction § 10712.2. Enforcement remedies § 10713. Compliance by municipalities § 10701-A. Purposes and objectives § 10702-A. Grant of power § 10703-A. Transferable development rights § 10704-A. Applicability of comprehensive plan and statement of community development objectives § 10705-A. Forms of traditional neighborhood development § 10706-A. Standards and conditions for traditional neighborhood development § 10707-A. Sketch Plan Presentation § 10708-A. Manual of written and graphic design guidelines § 10708.1-A. Subdivision and land development ordinance provisions applicable to traditional neighborhood development § 10709-A. Applicability of article to agriculture § 10801. Repealed § 10802. Repealed § 10801-A. General powers § 10802-A. Relation to county and municipal zoning § 10803-A. Ordinance provisions § 10804-A. Zoning purposes § 10805-A. Classifications § 10806-A. Statement of community development objectives § 10807-A. Preparation of proposed zoning ordinance § 10808-A. Enactment of zoning ordinance § 10809-A. Enactment of zoning ordinance amendments § 10810-A. Procedure for curative amendments § 10811-A. Area of jurisdiction for challenges § 10812-A. Procedure for joint municipal curative amendments § 10813-A. Publication, advertisement and availability of ordinances § 10814-A. Registration of nonconforming uses § 10815-A. Administration § 10816-A. Zoning appeals § 10817-A. Enforcement penalties § 10818-A. Enforcement remedies § 10819-A. Finances § 10820-A. Exemptions § 10821-A. Existing bodies § 10901. General provisions § 10902. Repealed

Part I Ch. 1–14 Brokers

§ § § § § § § § § § § § § §

Table of Contents

TABLE OF CONTENTS—PART V

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TABLE OF CONTENTS—Zoning, Planning and Regulation § 10903. Membership of board § 10904. Joint zoning hearing boards § 10905. Removal of members § 10906. Organization of board § 10907. Expenditures for services § 10908. Hearings § 10908.1. Mediation option § 10909. Repealed § 10909.1. Jurisdiction § 10910. Repealed § 10910.1. Applicability of judicial remedies § 10910.2. Zoning hearing board’s functions; variances § 10911. Repealed § 10912. Repealed § 10912.1. Zoning hearing board’s functions; special exception § 10913. Repealed § 10913.1. Repealed § 10913.2. Governing body’s functions; conditional uses § 10913.3. Parties appellant before the board § 10914. Repealed § 10914.1. Time limitations § 10915. Repealed § 10915.1. Stay of proceedings § 10916. Repealed § 10916.1. Validity of ordinance; substantive questions § 10916.2. Procedure to obtain preliminary opinion § 10917. Applicability of ordinance amendments § 10918. Special applicability provisions § 11001. Repealed § 11002. Repealed § 11003 to Repealed  11011. § 11012. Repealed § 11001-A. Land use appeals § 11002-A. Jurisdiction and venue on appeal; time for appeal § 11003-A. Appeals to court; commencement; stay of proceedings § 11004-A. Intervention § 11005-A. Hearing and argument of land use appeal § 11006-A. Judicial relief § 11101. Purposes § 11102. Intergovernmental cooperative planning and implementation agreements § 11103. County or multimunicipal comprehensive plans § 11104. Implementation agreements § 11105. Legal effect § 11106. Specific plans § 11107. Saving clause § 1101-A. Definitions. § 1102-A. Notification requirement. § 1103-A. Review by wastewater system officials. § 1104-A. Applicability. § 11201. Specific repeals § 11202. General repeal

CHAPTER 41.1 DEVELOPMENT PERMIT EXTENSION ACT 53 P.S. § 11703.1 et seq.

Sec.

§ 11703.1. Short title § 11703.2. Definitions § 11703.3. Existing approval

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11703.4. Subsequent changes 11703.5. Agency verification 11703.6. Applicability 11703.7. Notice 11703.8. Miscellaneous

Part I Ch. 1–14 Brokers

§ § § § §

EMINENT DOMAIN CODE 26 Pa.C.S. § 1-101 et seq.

Part VI Ch. 49–56 Taxation Part VII Ch. 57–63 Litigation Part VIII Ch. 64–67 L/T Part IX Ch. 68–72 Condos, etc. Index

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Part V Ch. 41–48A Zoning, etc.

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Part IV Ch. 36–40 Insurance

Short title of title. Application of title. Definitions. Short title of chapter. Definitions. Applicability. Eminent domain for private business prohibited. Blight. Extraterritorial takings. Eminent domain of agricultural property (Reserved). Eminent domain of land subject to conservation easement. Declaration of taking. Security required. Recording notice of condemnation. Notice to condemnee. Preliminary objections. Possession, right of entry and payment of compensation. Revocation of condemnation proceedings. Right to enter property prior to condemnation. Abandonment of project. Agreement as to damages. Petition for appointment of viewers. View. Appointment of viewers. Service of notice of view and hearing. Additional condemnees, mortgagees and intervention. Joint claims. Appointment of trustee or guardian ad litem. Furnishing of plans to viewers. Powers of viewers. Administrative matters for viewers’ hearings. Report of viewers. Disagreement. Filing of report of viewers. Reports. Right of appeal. Appeals. Disposition of appeal. Allocation of damages. Waiver of viewers’ proceedings and termination by stipulation. Liens and distribution of damages. Payment into court and distribution. Just compensation; other damages. Measure of damages. Fair market value. Effect of imminence of condemnation. Contiguous tracts and unity of use. Effect of condemnation use on after value. Removal of machinery, equipment or fixtures. Expenses incidental to transfer of title.

Part III Ch. 23–35 Mortgages

§  101. §  102. § 103. §  201. § 202. § 203. §  204. § 205. §  206. §  207. §  207. §  302. §  303. §  304. §  305. §  306. §  307. §  308. §  309. §  310. §  501. §  502. § 503. §  504. §  505. §  506. §  507. §  508. §  509. §  510. §  511. §  512. § 513. §  514. § 515. §  516. § 517. §  518. §  519. §  520. §  521. §  522. §  701. §  702. §  703. §  704. §  705. §  706. §  707. §  708.

Part II Ch. 15–22 Deeds

CHAPTER 42

Sec.

Table of Contents

TABLE OF CONTENTS—PART V

12/22/21 10:45 AM

TABLE OF CONTENTS—Zoning, Planning and Regulation §  709. §  710. §  711. §  712. §  713. §  714. §  715. §  716. § 901. §  902. §  903. §  904. §  905. § 906. §  907. § 1101. § 1102. § 1103. § 1104. § 1105. § 1106.

Condemnee’s costs where no declaration of taking filed. Limited reimbursement of appraisal, attorney and engineering fees. Payment on account of increased mortgage costs. Loss of rentals because of imminence of condemnation. Delay compensation. Consequential damages. Damages for vacation of roads. Attempted avoidance of monetary just compensation. Definitions. Moving and related expenses of displaced persons. Replacement housing for homeowners. Replacement housing for tenants and others. Housing replacement authorization. Regulations. Payments not to be considered as income or resources. Viewers’ hearing. Condemnor’s evidence before viewers. Trial in court on appeal. Competency of condemnee as witness. Evidence generally. Use of condemned property.

CHAPTER 43 MUNICIPAL CODE AND ORDINANCE COMPLIANCE 68 P.S. § 1081 to 68 P.S. § 1083

Sec.

§ 1. Short title § 2. Definitions § 3. Compliance requirement

CHAPTER 44 CRIMES AND OFFENSES Chapter

44.1   Secondary Mortgage Loans    7 P.S. §§ 6622 44.2   Recorders of Deeds    16 P.S. § 9784 44.3   Destruction of Survey Monuments    18 Pa.C.S. § 3312 44.4   Destruction or Concealment of Recordable Instruments    18 Pa.C.S. § 4103 44.5   Deeds and Conveyances    21 P.S. §§ 53, 54, 613, & 615 44.6  Manufactured Housing    35 P.S. § 1656.9 44.7   Housing Finance Agency    35 P.S. § 1680.602a 44.8   Maximum Interest Rates: “Act 6”    41 P.S. § 505 44.9   Human Relations Act    43 P.S. § 961 44.10   Real Estate Licensing and Registration Act    63 P.S. § 455.303 44.11  Insurance Adjusters    63 P.S. § 1607

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Part IV Ch. 36–40 Insurance

Sec.

Part III Ch. 23–35 Mortgages

7 P.S. § 6622

Part II Ch. 15–22 Deeds

CHAPTER 44.1 SECONDARY MORTGAGE LOANS

Part I Ch. 1–14 Brokers

44.12   Mortgage Bankers and Brokers and Consumer Equity Protection Act    63 P.S. § 456.314 44.13   Real Estate Appraisers Certification Act    63 P.S. § 457.15 44.14   Home Inspection Law    68 Pa.C.S. § 7511 44.15   Pennsylvania Realty Transfer Tax    72 P.S. § 8110-C 44.16   Unlicensed Mortgage Loan Business    18 P.S. § 7331 44.17  Nuisances    68 P.S. § 473 44.18   Consumer Cost Disclosure    15 U.S.C. § 1611 44.19   Impersonating a Notary Public or a Holder of a Professional Occupations License    18 Pa.C.S. § 4913 44.20   Failure to Comply with a Code Requirement    53 Pa.C.S. § 6115

Table of Contents

TABLE OF CONTENTS—PART V

§ 6622. Penalties

16 P.S. § 9784

Sec.

Part V Ch. 41–48A Zoning, etc.

CHAPTER 44.2 RECORDERS OF DEEDS

§ 9784. Failure to certify; penalty

18 Pa.C.S. § 3312 § 3312. Destruction of survey monuments

CHAPTER 44.4 RECORDABLE INSTRUMENTS

Part VII Ch. 57–63 Litigation

Sec.

Part VI Ch. 49–56 Taxation

CHAPTER 44.3 DESTRUCTION OF SURVEY MONUMENTS

18 Pa.C.S. § 4103 § 4103. Fraudulent destruction, removal or concealment of recordable instruments

21 P.S. §§ 53, 54, 613, & 615

Sec.

53. Conveyance by officer when decreed by court; acknowledgment in open court 54. Punishment for contempt 613. Certificates 615. Penalties

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Index

§ § § §

Part IX Ch. 68–72 Condos, etc.

CHAPTER 44.5 DEEDS AND CONVEYANCES

Part VIII Ch. 64–67 L/T

Sec.

12/22/21 10:45 AM

TABLE OF CONTENTS—Zoning, Planning and Regulation CHAPTER 44.6 MANUFACTURED HOUSING CONSTRUCTION AND SAFETY STANDARDS AUTHORIZATION ACT 35 P.S. § 1656.9

Sec.

§ 1656.9.  Penalties

CHAPTER 44.7 HOUSING FINANCE AGENCY LAW 35 P.S. § 1680.602a

Sec.

§ 1680.602a.  Fraud penalty

CHAPTER 44.8 MAXIMUM INTEREST RATES: “ACT 6” 41 P.S. § 505

Sec.

§ 505.  Penalties

CHAPTER 44.9 PENNSYLVANIA HUMAN RELATIONS ACT 43 P.S. § 961

Sec.

§ 961.  Penalties

CHAPTER 44.10 REAL ESTATE LICENSING AND REGISTRATION ACT 63 P.S. § 455.303

Sec.

§ 303.  Criminal penalties

CHAPTER 44.11 INSURANCE ADJUSTERS 63 P.S. § 1607

Sec.

§ 7.  Violations

CHAPTER 44.12 MORTGAGE BANKERS AND BROKERS AND CONSUMER EQUITY PROTECTION ACT 63 P.S. § 456.314

Sec.

§ 314.  Penalties

CHAPTER 44.13 REAL ESTATE APPRAISERS CERTIFICATION ACT 63 P.S. § 457.15

Sec.

§ 457.15.  Penalties

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68 Pa.C.S. § 7511

Sec.

§ 7511.   Penalties

72 P.S. § 8110-C § 8110-C.  Unlawful acts; penalty

CHAPTER 44.16 UNLICENSED MORTGAGE LOAN BUSINESS

Part III Ch. 23–35 Mortgages

Sec.

Part II Ch. 15–22 Deeds

CHAPTER 44.15 STATE REALTY TRANSFER TAX

Part I Ch. 1–14 Brokers

CHAPTER 44.14 HOME INSPECTION LAW

Table of Contents

TABLE OF CONTENTS—PART V

18 P.S. § 7331 § 7331.  Unlicensed mortgage loan business

68 P.S. § 473

Sec.

§ 7. Violation of act

15 U.S.C. § 1611

Part VI Ch. 49–56 Taxation

CHAPTER 44.18 CONSUMER CREDIT COST DISCLOSURE

Part V Ch. 41–48A Zoning, etc.

CHAPTER 44.17 NUISANCES

Part IV Ch. 36–40 Insurance

Sec.

Sec.

§ 1611. Criminal liability for willful and knowing violation

Sec.

§ 4913. Impersonating a notary public or a holder of a professional or occupational license

53 Pa.C.S. § 6115

Part IX Ch. 68–72 Condos, etc.

CHAPTER 44.20 FAILURE TO COMPLY WITH A CODE REQUIREMENT

Part VIII Ch. 64–67 L/T

18 Pa.C.S. § 4913

Part VII Ch. 57–63 Litigation

CHAPTER 44.19 IMPERSONATING A NOTARY PUBLIC OR A HOLDER OF A PROFESSIONAL OR OCCUPATIONAL LICENSE

Sec.

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Index

§ 6115. Failure to comply with a code requirement

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TABLE OF CONTENTS—Zoning, Planning and Regulation

CHAPTER 45 DIVORCE AND DOMESTIC VIOLENCE PROPERTY RIGHTS 23 Pa.C.S. § 3503 to 23 Pa.C.S. § 3508 28 Pa.C.S. § 4361 to 23 Pa.C.S. § 4365

Sec. § § § § § § § § § § §

3503. Effect of divorce on property rights generally 3504. Disposition of property after termination of marriage 3505. Disposition of property to defeat obligations 3506. Statement of reasons for distribution 3507. Division of entireties property between divorced persons 3508. Conveyance of entireties property to divorced spouse 4361. Execution of support order against entireties property 4362. Plaintiff’s share of proceeds of sale 4363. Trustee to distribute proceeds of sale 4364. Credit to plaintiff who purchases property 4365. Rights of divorced person in entireties property sold for support

CHAPTER 46 NUISANCES AND RECREATIONAL USE OF LAND Chapter

46.1  Nuisances    68 P.S. § 467 to 68 P.S. § 473 46.2   Recreational Use of Land    68 P.S. § 477-1 to 68 P.S. § 477-8

CHAPTER 46.1 NUISANCES 68 P.S. § 467 to 68 P.S. § 473

Sec. § § § § § § §

1. Building used for fornication, etc., as nuisance 2. Knowledge of unlawful use by owner 3. Action to enjoin nuisance 4. Abatement of nuisance 5. Repealed 6. Violation of injunction; contempt 7. Violation of act

CHAPTER 46.2 RECREATIONAL USE OF LAND 68 P.S. § 477-1 to 68 P.S. § 477-8.

Sec. § § § § § § § §

1. Purpose; liability 2. Definitions 3. Duty to keep premises safe; warning 4. Assurance of safe premises; duty of care; responsibility, liability 5. Land leased to State or subdivision 6. Liability not limited 7. Construction of act 8. Repealer

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Table of Contents

TABLE OF CONTENTS—PART V

CHAPTER 47 43 P.S. § 951 to 43 P.S. § 963

Sec.

Part VII Ch. 57–63 Litigation

CHAPTER 48.1 ABANDONED AND BLIGHTED PROPERTY CONSERVATORSHIP ACT

Part VI Ch. 49–56 Taxation

48.1. Abandoned and Blighted Property Conservatorship Act    68 P.S. §§ 1101–1111 48.2. Neighborhood Blight Reclamation and Revitalization Act    53 Pa.C.S. § 6101–6145 48.3. Blighted Property—Definition    1 Pa.C.S. § 1991

Part V Ch. 41–48A Zoning, etc.

Chapter

Part IV Ch. 36–40 Insurance

BLIGHT

Part III Ch. 23–35 Mortgages

CHAPTER 48

Part II Ch. 15–22 Deeds

§ 1. Short title § 2. Findings and declaration of policy § 3. Right to freedom from discrimination in employment, housing and public accommodation § 4. Definitions § 5. Unlawful discriminatory practices § 5.1. Religious observance; public employes § 5.2. Abortion and sterilization; immunity from requirement to perform; unlawful discriminatory practices § 5.3. Prohibition of certain real estate practices § 6. Pennsylvania Human Relations Commission § 7. Powers and duties of the Commission § 8. Educational Program § 8.1. Investigatory hearings relating to racial problems § 8.2. Restriction on Commission authority over pupil school assignment § 9. Procedure § 9.1. Procedure regarding housing advertisements § 9.2. Injunctions § 9.3. Civil penalties § 10. Enforcement and judicial review § 11. Penalties § 12. Construction and exclusiveness of remedy § 12.1. Local human relations commissions § 12.2. Cooperation of state agencies § 13. Separability

Part I Ch. 1–14 Brokers

PENNSYLVANIA HUMAN RELATIONS ACT

68 P.S. §§ 1101–1111 1101. 1102. 1103. 1104. 1105. 1106. 1107. 1108. 1109. 1110. 1111.

Short title Legislative findings and purpose Definitions Initiation of action Appointment of conservator Powers and duties of conservator Ownership of property Incurring indebtedness Sale of property Termination of conservatorship Applicability

Part IX Ch. 68–72 Condos, etc.

§ § § § § § § § § § §

Part VIII Ch. 64–67 L/T

Sec.

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Index

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TABLE OF CONTENTS—Zoning, Planning and Regulation CHAPTER 48.2 NEIGHBORHOOD BLIGHT RECLAMATION AND REVITALIZATION ACT 53 Pa.C.S. §§ 6101–6145

Subchapter A. Preliminary Provisions § 6101. Short title of chapter § 6102. Legislative findings and purpose § 6103. Definitions

Subchapter B. Actions Against Owner of Property with Serious Code Violations § 6111. § 6112. § 6113. § 6114. § 6115.

Actions Asset attachment Duty of out-of-State owners of property in this Commonwealth Duty of association and trust owners Failure to comply with a code requirement

Subchapter C. Permit Denials by Municipalities § 6131 Municipal permit denial

Subchapter D. Miscellaneous Provisions §§ 6141, (Reserved)  6142. § 6143. Conflict with other law § 6144. Relief for inherited property § 6145. Construction

CHAPTER 48.3 MUNICIPALITY CONDEMNATION ORDER ACT ACT NO. 101 OF 2020 2019 Pa. SB 940 § 1. § 2. § 3. § 4. § 5. § 6. § 7.

Short title. Definitions. Filing and recording of condemnation orders. Cost of recording. Validity of condemnation order. Statement of vacated condemnation order. Effective date.

CHAPTER 48.4 BLIGHTED PROPERTY—DEFINITION 1 Pa.C.S. § 1991

CHAPTER 48A LAND BANKS 68 Pa.C.S. §§ 2101 – 2120

Sec.

2101. Scope of chapter. 2102 Legislative findings and purpose. 2103. Definitions. 2104. Creation and existence. 2105. Board. 2106. Staff. 2107. Powers. 2108. Eminent domain. 2109. Acquisition of property. 2110. Disposition of property.

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REAL ESTATE TAXATION CHAPTER 49

72 P.S. § 8101-C to 72 P.S. § 8114-C

Sec.

Index

gtb-parealestate22-all.indb 53

Part IX Ch. 68–72 Condos, etc.

liii

Part VIII Ch. 64–67 L/T

§ § § § § § § § § § § § § § § §

1101-C. Definitions 1102-C. Imposition of tax 1102-C.1. Repealed 1102-C.2. Exempt parties 1102-C.3. Excluded transactions 1102-C.4. Documents relating to associations or corporations and members, partners, stockholders or shareholders thereof 1102-C.5. Acquired company 1102-C.6. Transfer of tax 1103-C. Credits against tax 1103-C.1. Extension of lease 1104-C. Proceeds of judicial sale 1105-C. Documentary stamps 1106-C. Stamps, commissions, payments and transfers 1107-C. Enforcement; rules and regulations 1108-C. Failure to affix stamps 1109-C. Statement of value; penalty 1109-C.1. Civil penalties 1110-C. Unlawful acts; penalty 1111-C. Assessment and notice of tax; review 1112-C. Lien 1113-C. Refunds 1114-C. Sharing information

Part VII Ch. 57–63 Litigation

§ § § § § §

Part VI Ch. 49–56 Taxation

CHAPTER 49.1 STATE REALTY TRANSFER TAX

Part V Ch. 41–48A Zoning, etc.

49.1   State Realty Transfer Tax    72 P.S. § 8101-C to 72 P.S. § 8114-C 49.2   Local Real Estate Transfer Tax    72 P.S. § 8101-D to 72 P.S. § 8114-D 49.3  Tax Authorization for Cities of the First Class    72 P.S. § 4750.1301 Selected Sections from 49.4   Local Tax Enabling Act    53 P.S. §§6901; 6902; 6905; 6908; 6917

Part IV Ch. 36–40 Insurance

TRANSFER TAX AUTHORIZATION Chapter

Part III Ch. 23–35 Mortgages

PART VI

Part II Ch. 15–22 Deeds

Financing of land bank operations. Borrowing and issuance of bonds. Public records and public access. Dissolution of land bank. Conflicts of interest. Construction, intent and scope. Delinquent property tax enforcement. Expedited quiet title proceedings. Annual audit and report. Determination on procedural revision.

Part I Ch. 1–14 Brokers

2111. 2112 2113. 2114. 2115. 2116. 2117. 2118. 2119. 2120.

Table of Contents

TABLE OF CONTENTS—PART VI

12/22/21 10:45 AM

TABLE OF CONTENTS—Real Estate Taxation CHAPTER 49.2 LOCAL REAL ESTATE TRANSFER TAX 72 P.S. § 8101-D to 72 P.S. § 8114-D

Sec. § § § § § § § § § § § § § §

1101-D. Imposition 1102-D. Administration 1103-D. Regulations 1104-D. Documentary stamps 1105-D. Collection agent 1106-D. Disbursements 1107-D. Proceeds of judicial sale 1108-D. Failure to affix stamps 1109-D. Determination and notice of tax; review 1110-D. Lien 1111-D. Refunds 1112-D. Civil penalties 1113-D. Unlawful acts and penalty 1114-D. Information

CHAPTER 49.3 TAX AUTHORIZATION FOR CITIES OF THE FIRST CLASS 72 P.S. § 4750.1301

Sec.

§ 4750.1301.  Tax authorization for cities of the first class

CHAPTER 49.4 Selected Sections from LOCAL TAX ENABLING ACT 53 P.S. §§ 6924.101; 6924.301.1; 6924.307; 6924.311; 6924.320

Sec. § § § § §

6924.101. Short title 6924.301.1. Delegation of taxing powers and restrictions thereon 6924.307. Rate, amount, court approval; revision of budget 6924.311. Limitations on rates of specific taxes 6924.320. Tax limitations

CHAPTER 50 GENERAL COUNTY ASSESSMENT LAW 72 P.S. § 5020-1 to 72 P.S. § 5020-602

Sec. § § § § § § § § § § § § §

1. Consolidation of assessment laws 101. Short title; effective date 102. Definitions 103. Excluded provisions 104. Application of act 105. Saving clause; construction 106. Constitutional construction 201. Subjects of taxation enumerated 202. Occupation tax in counties of the second class and third class abolished; optional in other counties 203. Repealed 203.1. Limitation upon taxation 203.2. Limitation on rates of specific taxes 203.3. Prohibition on certain levies

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Part III Ch. 23–35 Mortgages Part IV Ch. 36–40 Insurance Part V Ch. 41–48A Zoning, etc. Part VI Ch. 49–56 Taxation Part VII Ch. 57–63 Litigation Part VIII Ch. 64–67 L/T Part IX Ch. 68–72 Condos, etc. Index

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Part II Ch. 15–22 Deeds

lv

Part I Ch. 1–14 Brokers

§ 204. Exemptions from taxation § 205. Temporary tax exemption for residential construction § 206. Temporary assessment change for real estate subject to a sewer connection ban order § 301. Election of assessors § 302. Oath of assessors § 303. Filing of assessor’s oath § 304. Vacancies in the office of assessor § 305. Compensation of assessors except in first-class townships § 306. Compensation and expenses of assessors and assistants in first-class townships § 307. Fixing amount of compensation and expenses in first-class townships; payment § 308. Mileage § 309. Interpreters § 310. Penalty for refusing to serve; exception § 401. Issuing of precepts and return of assessments in triennial years § 402. Valuation of property § 402.1. Valuation of mobilehomes or house trailers § 403. List of taxables § 404. Assessment of persons in counties that do not levy occupation taxes § 405. Return of exempt property § 406. Real estate omitted from triennial assessment § 407. Conveyances; assessment; mobilehouse courts, owner, removal permits, penalty § 408. Conveyances; charge, abstract; assessments § 409. Persons acquiring unseated lands to furnish statement to county commissioners § 410. Assessment of unseated lands § 411. Assessment of seated lands divided by county lines § 412. Assessment of seated lands divided by township lines § 413. Assessment where township line passes through mansion house § 414. Assessment of coal underlying lands divided by county, township or borough lines § 415. Separate assessment of coal and surface § 416. Assessing real estate subject to ground rent, dower, or mortgage § 417. Assessment of property of decedents’ estates § 418. Returns of timber lands § 419. Assessment of auxiliary forest reserves § 420. Assessment for county and poor purposes where lands in one county are annexed to a borough in another county § 421. Assessment for borough and school purposes where lands in one county are annexed to a borough in another county § 422. Borough ward assessors to act as board § 431. Issuing of precepts and return of assessments in inter-triennial years § 432. Inter-triennial assessments § 441. Persons removing into district; property transferred or omitted § 451. Penalty on assessors for failure to assess and for making incorrect assessments § 452. Penalty on assessor for failure to perform duty § 453. Penalty on county commissioners for failure to perform duty § 501. Commissioners to constitute board of revision; oath § 502. Publication of statement showing aggregate assessments, et cetera § 503. Revision at time of appeals § 504. Right of taxables to examine returns § 505. Making revisions § 505.1. Errors in assessments and refunds § 506. Employment of assistants in counties of the fourth class § 507. Transcript of assessments, statement of rate, and day for appeal sent to assessors § 508. Notice of assessment, rate, and appeal § 509. Publication of notice of appeal § 510. Notice of appeals in inter-triennial years § 511. Board of revision to hear and pass on appeals § 512. Assessors to attend appeals § 513. Place of holding appeals § 514. Assessments regulated; duplicates § 514.1. Notice of changes given to taxing authorities § 515. Duplicates to be furnished school districts of third and fourth classes § 516. Duplicates to be furnished townships of the first and second classes and boroughs § 517. Hearing appeals subsequent to time fixed § 518. Repealed

Table of Contents

TABLE OF CONTENTS—PART VI

12/22/21 10:45 AM

TABLE OF CONTENTS—Real Estate Taxation § 518.1. Appeal to court from assessments; collection pending appeal; payment into court; refunds § 518.2. Appeals to court § 519. Appeals to Supreme or Superior Courts § 520. Appeals by municipalities § 521. Payment to tax district pending appeal § 601. Repealer § 602. Acts saved from repeal

CHAPTER 51 ASSESSORS CERTIFICATION ACT 63 P.S. § 458.1 to 63 P.S. § 458.16

Sec. § § § § § § § § § § § § § § § §

1. Short title 2. Definitions 3. Regulations 4. Duties of board 5. Qualifications 6. Certification 7. Disciplinary and correction measures 8. Unlawful practice 9. Fees 10. Disposition of fees 11. Nonapplicability 12. Implementation 13. Holders of valid certification 14. Ratification of action 15. Construction of act 16. Retroactivity

CHAPTER 52 MUNICIPAL CLAIMS AND TAX LIENS 53 P.S. § 7101 to 53 P.S. § 7505

Sec. § § § § § § § § § § § § § § § § § § §

7101. Definitions 7102. Local taxes a first lien; date 7103. Taxes first lien 7104. Tax lien divested by judicial sale 7105. Officer to pay taxes out of proceeds of sale 7106. Municipal claims first lien; cities of first class; docketing; judgment; execution 7107. Entitlement to liens for taxes, removal of nuisances, grading, paving; assignment by municipal authority; claim to use of contractor 7108. Exemptions 7108.1. Donations of property subject to claim for taxes 7109. Tax claims against real estate owned by joint tenants, tenants in common, or coparceners 7110. Separate and distinct properties; apportionment of charge 7111. Application of act 7112. Construction and constitutionality of act; repealer; act not repealed 7141. Neglect of owner condition precedent to filing claim for curbing, etc. 7142. Claims filed to use 7143. Time and place for filing; liability; interest; form; contents; appeals from assessments; indexing; revival; order fixing amount 7144. Contents of claim; signature; county taxes, levies or assessments; affidavit of use plaintiff 7145. Property included in claims; payment of portion 7146. Locality index; unpaid tax list; consumer reporting agencies

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§

Part VIII Ch. 64–67 L/T Part IX Ch. 68–72 Condos, etc. Index

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Part VII Ch. 57–63 Litigation

lvii

Part VI Ch. 49–56 Taxation

§ § § § § § § § § § § § §

Part V Ch. 41–48A Zoning, etc.

§ § § § § § § § § §

Part IV Ch. 36–40 Insurance

§ § § §

Part III Ch. 23–35 Mortgages

§ § § § § § § § § § § § § § §

Part II Ch. 15–22 Deeds

§ § § § § § § § § § § § §

7147. Assignment of claims, etc. 7181. Intervening or substituted defendants 7182. Petition of defendant; payment into court; affidavit; rule; decree; jury trial 7183. Time of lien; suggestion and averment of nonpayment and default; scire facias; form; dockets and indexes; fees; extension of lien; loss of lien 7184. Notice to issue scire facias; failure to issue; claimant not permitted to discontinue after issuance 7185. Form of scire facias; addition of parties; amicable scire facias 7186. Addition by sheriff of parties to writ; posting copy; service of writ; return 7187. Evidence; compulsory non-suit; verdict; attorney’s fee 7188. Amendments to claims, etc.; opening of default judgments 7189. Return of rules; pleadings; findings 7190. Service of notices; petitions and rules 7191. Security 7192. Use-plaintiffs; duty to enter satisfaction; penalty 7193. Repealed 7193.1. Notice of interest; registration; service 7193.2. Rule to show cause; decree; service; notice 7193.3. Validity of sale; time for filing contest 7193.4. Cities of first class; time for proceeding on claims; preclusion of sale for undue hardship 7193.5. Procedures available to tax claim bureaus 7194. Prothonotaries to make up convenient dockets of unsatisfied tax liens 7195. Dockets to be evidence and notice; original dockets to lose effect 7196. Separate dockets of unpaid taxes to be kept; effect of entries in dockets 7197. Lost liens to be satisfied upon execution or public sale 7198. Recovery for services rendered outside municipality 7199. Procedure same as within limits 7200. Definitions 7201. Corporate reorganizations 7202. Arrangement proceedings by persons other than corporations 7203. Penalty for failure to pay assessments 7231. Definitions 7232. Inquiry as to indebtedness; withholding approval of claims 7233. Agreements as to payments; withholding payment 7234. Petition to court of common pleas; rule to appear; termination of proceedings when agreement entered into 7235. Order and decree for set-off; costs 7251. Collection of municipal claims by assumpsit; limitations 7252. Actions previously instituted 7271. Judgment for want of affidavit of defense; assessment of damages; rule for judgment; replication 7272. Scire facias to revive judgment; form; fee for additional names 7273. Service of scire facias to revive judgment; procedure 7274. Judgment for plaintiff; costs 7275. Sequestrator; supersedeas 7276. Dockets 7277. Stay of proceedings; security for; effect; expiration 7278. Levari facias; form; advertisement of sale; sheriff’s deed 7279. Upset sale price; purchase by municipality 7280. Execution against quasi public corporations 7281. Judicial sales; effect of; postponement of sale; decree for sale; stay; evidence; bids; redemption; deed 7282. Counties of first class; recovery of judgment; sale free from claims 7283. Cities of first class; recovery of judgment; sale free from claims 7283a. Judicial sales; multiple properties sold together 7284. Legislative finding 7285. Certification of area as a conservation area 7286. “Vacant lot” defined 7287. Petition to sell property; order; redemption; notice of sale 7288. Testimony respecting whereabouts of interested parties 7289. Purchase by claimant 7290. Deed 7291. Disposition of proceeds of sale 7292. Payment of costs prior to proposed sale 7293. Redemption

Part I Ch. 1–14 Brokers

§ § § §

Table of Contents

TABLE OF CONTENTS—PART VI

12/22/21 10:45 AM

TABLE OF CONTENTS—Real Estate Taxation Chapter 52   Municipal Claims and Tax Liens (cont.) § 7321. Abatement of certain charges on payment of delinquent claims § 7322. Payments may be anticipated § 7323. Claims to which abatement privilege extends § 7324. Persons within benefit of act § 7325. Individual properties may be cleared; statement of claims owed; notice to property owners § 7326. Adjournment of sales for nonpayment of taxes § 7327. Assessments forming sole basis of improvement bonds not affected § 7328. Abatement of certain charges on payment of delinquent claims § 7329. Claims to which abatement privilege extends § 7330. Persons within benefit of act § 7331. Individual properties may be cleared; statement of claims owed § 7332. Adjournment of sales for nonpayment of taxes § 7333. Assessments forming sole basis of improvement bonds not affected § 7334. Abatement of debt, interest and penalties in certain cases § 7335. Application of act §§ 7361 to Repealed  7365. § 7391. Delayed filing; amendment of claims, etc. § 7392. Loss of lien or claim; proceedings to revive authorized § 7393. Unfiled municipal claims ratified if filed within six months; amicable writs of scire facias to revive claims validated § 7394. Counties authorized to revive certain tax liens § 7395. Boroughs and townships of first class authorized to revive certain tax liens § 7396. Ratification of amicable writ of scire facias filed by borough or township of first class to revive municipal claim § 7397. Boroughs and townships of first class authorized to revive municipal claims § 7398. Boroughs, townships and cities of third class authorized to revive municipal claims § 7399. Revival of certain warrants § 7400. Actions to collect tax validated § 7401. Statute of limitations inapplicable § 7402. City or school district of first class § 7431. Errors in names or descriptions of property; amendment; proceedings § 7432. Failure to file claim; inadequate description of property; failure to sue out scire facias, file averment of default, or enter or revive judgment § 7433. Errors in names or descriptions of property; filing of amended tax lien § 7434. Variance in names; validation of sale § 7435. Tax liens in certain counties where claim not signed by controller, validated § 7436. Judicial sale for less than upset price; validation of sale § 7437. Intervening rights of third persons protected; litigated cases § 7438. Validation of sales; fieri facias instead of levari facias § 7439. Treasurers’ sales for delinquent taxes without adjournment, validated § 7440. Validation of municipal improvements, assessments, claims and liens § 7441. Filing of liens for improvement § 7442. Proceeding for collection of claim § 7443. Claims already filed validated § 7444. Municipal improvements, assessments, claims and liens § 7445. Filing liens § 7446. Collection of claim § 7447. Municipal improvements, assessments, claims and liens § 7448. Lien, filing, contents, prima facie evidence § 7449. Collection of claim; application of statute § 7450. Municipal improvements, assessments, claims and liens § 7451. Lien, filing, contents, prima facie evidence § 7452. Collection of claim; application of statute § 7453. Municipal improvements, assessments, claims and liens § 7454. Lien, filing, contents, prima facie evidence § 7455. Collection of claim; application of statute § 7501. Name of act § 7502. Definition § 7503. Taxpayer’s record transmitted to prothonotary

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Table of Contents

TABLE OF CONTENTS—PART VI § 7504. Dockets; indexes; lien; judgment; execution; sale; revival; scire facias § 7505. Appeal from assessment

Part I Ch. 1–14 Brokers

CHAPTER 53 REAL ESTATE TAX SALE LAW Sec.

Part VI Ch. 49–56 Taxation Part VII Ch. 57–63 Litigation Part VIII Ch. 64–67 L/T Part IX Ch. 68–72 Condos, etc. Index

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Part V Ch. 41–48A Zoning, etc.

lix

Part IV Ch. 36–40 Insurance

101. Short title 102. Definitions 201. Creation of bureaus 201a. Alternative collection of taxes 202. Appointment and compensation of personnel 203. Bonds 204. County bureau to collect taxes 205. System of accounting and distribution 206. Costs, fees and expenses 207. Reimbursement of county; charges 208. Agent of taxing districts; lien certificates 301. Taxes, a first lien 302. Lien entitlement 303. Property subject to or exempt from claim 304. Tax liens and municipal claims divested by sale 305. Claims against property owned by joint tenants and tenants in common 306. Return of property and delinquent taxes; interest; settlements by tax collectors 307. Filing claims 308. Notice of filing of returns and entry of claim 309. Contents of claims entered 310. Property included in claims 311. Claims become absolute 312. Lien lost if not returned to bureau 313. Substitution of defendants 314. Proceeding to attack validity of claim 315. Claims; dockets; satisfaction and public record lists 316. Assignment of claims 401. Petition for sequestrator 402. Authority for petition 403. Procedure to obtain possession 404. Powers of sequestrator 405. Return of possession 406. General powers and remedies of sequestrator 501. Discharge of tax claims 502. Repealed 502a. Option of county to extend period for discharge of tax claim 503. Repealed 503a. Extension of period for discharge of tax claim 504. Extension for elderly 505. Repealed 506. Repealed 501-A. Duty to register 502-A. Application 503-A. List of registered bidders 601. Date of sale 602. Notice of sale 603. Removal from sale; agreements to stay sale 604. Sales of property of quasi-public corporation 605. Upset sale price 606. Payments by purchasers at sales 607. Bureau’s consolidated return to court; notice; confirmation; appeal 607a. Additional notification efforts

Part III Ch. 23–35 Mortgages

§ § § § § § § § § § § § § § § § § § § § § § § § § § § § § § § § § § § § § § § § § § § § § § § § § § § §

Part II Ch. 15–22 Deeds

72 P.S. § 5860-101 to 72 P.S. § 5860-803

12/22/21 10:45 AM

TABLE OF CONTENTS—Real Estate Taxation § § § § § § § § § § § § § § § § § § § § § § § § § § § § § § § § §

608. Deed 609. Nondivestiture of liens 610. Petition for judicial sale 611. Service of rule 612. Hearing and order for judicial sale 612-1. County commissioners may bid and purchase property; costs paid by taxing districts 612-2. Combined judicial sales 612-3. Additional costs for rehabilitation and maintenance 613. Properties not sold because of insufficient bid may be sold at private sale 613-1. Private sales, validation 614. Options 615. Deeds 616. Mandatory judicial sale 617. Errors as to description; names, etc., may be amended on petition 618. Repurchase by owner 619. Restrictions on purchases 619a. Additional restrictions 625. Purpose 626. Unsold property repository 627. Sale of property in repository 628. Assessment restrictions on property sold from repository 629. Notification of sale 630. Distribution of all moneys received 641. Limitation on Trusteeship 642. Ownership interests and responsibilities of delinquent property owner 701. Property heretofore purchased by taxing districts to be turned over to bureau 702. Powers and duties of bureau as agent 703. Such properties to be sold under provisions of Article VI 704. Validation of title 705. Duty of county and bureau; enforcement provision 801. Acts of assembly repealed 802. General repeal 803. Effective date

CHAPTER 54 PROPERTY TAX REBATES AND ABATEMENTS Chapter

54.1   Senior Citizens Rebate and Assistance Act    72 P.S. § 4751-1 to 72 P.S. § 4751-12 54.2  Cities of the First Class Low-Income Senior Citizens Property Tax    72 P.S. § 4751-21 to 72 P.S. § 4751-26 54.3   Tax Extension for the U.S. Armed Services    72 P.S. § 4753-1 to 72 P.S. § 4753-4 54.4   New Home Construction Local Tax Abatement Act    72 P.S. § 4754-1 to 72 P.S. § 4754-6

CHAPTER 54.1 SENIOR CITIZENS REBATE AND ASSISTANCE ACT 72 P.S. § 4751-1 to 72 P.S. § 4751-12

Sec. § § § § § § § §

1. Short title 2. Declaration of policy 3. Definitions 4. Property tax; rent rebate and inflation cost 5. Filing of claim 6. Proof of claim 7. Incorrect claim 8. Funds for payment of claims

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9. Claim forms and rules and regulations 10. Fraudulent claim; conveyance to obtain benefits 11. Repealed 11.1. Petition for redetermination 11.2. Review by Board of Finance and Revenue 11.3. Appeal 11.4. Grants to area agencies on aging for services to older persons 11.5. Repealed 12. Effective date

Part I Ch. 1–14 Brokers Part II Ch. 15–22 Deeds

§ § § § § § § § §

CHAPTER 54.2 CITIES OF THE FIRST CLASS LOW-INCOME SENIOR CITIZENS PROPERTY TAX

Part III Ch. 23–35 Mortgages

72 P.S. § 4751-21 to 72 P.S. § 4751-26

Sec.

4751-21. Construction 4751-22. Declaration of policy 4751-23. Definitions 4751-24. Special tax provisions; refund or forgiveness of real estate taxes 4751-25. Application; proof of claim 4751-26. Administration and enforcement

Part IV Ch. 36–40 Insurance

§ § § § § §

Table of Contents

TABLE OF CONTENTS—PART VI

CHAPTER 54.3 TAX EXTENSION FOR THE U.S. ARMED SERVICES 72 P.S. § 4753-1 to 72 P.S. § 4753-4

Part V Ch. 41–48A Zoning, etc.

Sec. § § § §

1. Extension of tax deadlines 2. Applicability 3. Time extension information 4. Retroactivity

Part VI Ch. 49–56 Taxation

CHAPTER 54.4 NEW HOME CONSTRUCTION LOCAL TAX ABATEMENT ACT 72 P.S. § 4754-1 to 72 P.S. § 4754-6

Sec.

1. Short title 2. Construction 3. Definitions 4. New residential construction 5. Exemption schedule 6. Procedure for obtaining an exemption

Part VII Ch. 57–63 Litigation

§ § § § § §

Part VIII Ch. 64–67 L/T

CHAPTER 55 REVITALIZATION EXEMPTIONS FROM TAXATION

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Index

55.1.  Improvement of Deteriorating Real Property or Areas Tax Exemption Act    72 P.S. § 4711-101 to 72 P.S. § 4711-305 55.2.   Local Economic Revitalization Tax Assistance Act    72 P.S. § 4722 to 72 P.S. § 4731 55.3.   Tax Exemption and Mixed-Use Incentive Program Act    72 P.S. § 4712-101 to 72 P.S. § 4712-108 55.4.   First and Second Class County Property Tax Relief Act    72 P.S. § 4749.1 to 72 P.S. § 4749.6

Part IX Ch. 68–72 Condos, etc.

Chapter

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TABLE OF CONTENTS—Real Estate Taxation CHAPTER 55.1 IMPROVEMENT OF DETERIORATING REAL PROPERTY OR AREAS TAX EXEMPTION ACT 72 P.S. § 4711-101 to 72 P.S. § 4711-305

Sec. § § § § § § § § § § § § §

4711-101. Short Title 4711-102. Construction 4711-103. Definitions 4711-201. Definitions 4711-202. Deteriorated Neighborhoods; Procedures 4711-203. Exemption Schedules; Maximum Exemption 4711-204. Nonrecognition for Other Purposes of Increased Assessed Valuation 4711-205. Procedure for Obtaining Exemption 4711-301. Definitions 4711-302. Deteriorating Areas; Procedures 4711-303. Exemption Schedule; Maximum Exemption 4711-304. Nonrecognition for Other Purposes of Increased Valuation 4711-305. Procedure for Obtaining Exemption

CHAPTER 55.2 LOCAL ECONOMIC REVITALIZATION TAX ASSISTANCE ACT 72 P.S. § 4722 to 72 P.S. § 4731

Sec.

§ 4722. Short title § 4723. Construction § 4724. Definitions § 4725. Deteriorated areas § 4726. Exemption schedule § 4727. Procedure for obtaining exemption §§ 4729-1 to Repealed  4729-5. § 4731. Mortgages, judgments, etc., to be exempt from local taxation, in certain counties

CHAPTER 55.3 FIRST AND SECOND CLASS COUNTY PROPERTY TAX RELIEF ACT 72 P.S. § 4749.1 to 72 P.S. § 4749.6

Sec. § § § § § §

4749.1. Short title 4749.2. Declaration of policy and legislative intent 4749.3. Definitions 4749.4. Deferral or exemption authority 4749.5. Conditions of deferral or exemption 4749.6. Retroactive application

CHAPTER 55.4 FIRST AND SECOND CLASS COUNTY PROPERTY TAX RELIEF ACT 72 P.S. § 4749.1 to 72 P.S. § 4749.6

Sec. § § § § § §

4749.1. 4749.2. 4749.3. 4749.4. 4749.5. 4749.6.

Short title Declaration of policy and legislative intent Definitions Deferral or exemption authority Conditions of deferral or exemption Retroactive application

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Table of Contents

TABLE OF CONTENTS—PART VII

CHAPTER 56 Part I Ch. 1–14 Brokers

INTERNAL REVENUE CODE 26 U.S.C. §1031

Sec.

§ 1031.  Exchange of real property held for productive use or investment Part II Ch. 15–22 Deeds

PART VII

Part III Ch. 23–35 Mortgages

REAL ESTATE LITIGATION CHAPTER 57

Chapter

Part VI Ch. 49–56 Taxation Part VII Ch. 57–63 Litigation

CHAPTER 57.1 SERVICE IN REAL PROPERTY ACTIONS

Part V Ch. 41–48A Zoning, etc.

57.1   Service in Real Property Actions.   Rule 410 57.2   Action in Ejectment.   Rules 1051 to 1058 57.3   Action to Quiet Title.   Rules 1061 to 1068 57.4   Action of Mortgage Foreclosure.   Rules 1141 to 1150 57.5   Actions Upon Ground Rent.   Rules 1161 to 1164 57.6   Partition of Real Property.   Rules 1551 to 1574 57.7   Actions Upon Mechanics’ Liens.   Rules 1651 to 1661 57.8  Confession of Judgment for Possession of Real Property.   Rules 2970 to 2976 57.9  Statutory Action to Conform Confessed Judgment.   Rules 2981 to 2986 57.10  Enforcement of Money Judgments for the Payment of Money.   Rules 3101 to 3159 57.11  Enforcement of Judgment in Action of Ejectment.   Rules 3160 to 3165 57.12  Enforcement of Judgment in Action of Mortgage Foreclosure.   Rules 3180 to 3183 57.13  Enforcement of Judgment: Action Upon Mechanics Liens, Municipal Claims, Tax Claims, & Charges of Land.   Rules 3190 to 3191 57.14   Forms.  Rules 3251 to 3260 57.15  Deficiency Judgments.   Rules 3276 to 3291 57.16  Attachment of Wages Landlord/Tenant.   Rules 3301 to 3313 57.17  Discovery: Entry Upon Property for Inspection.   Rules 4009.31 to 4009.33

Part IV Ch. 36–40 Insurance

SELECTED PENNSYLVANIA RULES OF CIVIL PROCEDURE APPLYING TO REAL ESTATE

Rule 410

410. Real Property Actions

Rules 1051 to 1058

Rule



1051. Conformity to Civil Action 1052. Venue 1053. Rescinded 1054. Specific Averments. Abstract of Title

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Index

lxiii

Part IX Ch. 68–72 Condos, etc.

CHAPTER 57.2 ACTION IN EJECTMENT

Part VIII Ch. 64–67 L/T

Rule

12/22/21 10:45 AM

TABLE OF CONTENTS—Real Estate Litigation

1055. 1056. 1057. 1058.

Pleading More Than One Cause of Action Counterclaim. Conditional Verdict Judgment. Execution Trial without Jury

CHAPTER 57.3 ACTION TO QUIET TITLE Rules 1061 to 1068

Rule

1061. Conformity to Civil Action. Scope 1062. Venue 1063. Commencement of Action 1064. Service 1065. Specific Averments 1065.1. Notice. Claim for Adverse Possession 1066. Form of Judgment or Order 1067. Trial Without Jury 1068. Acts of Assembly

CHAPTER 57.4 ACTION OF MORTGAGE FORECLOSURE Rules 1141 to 1150

Rule



1141. Definition. Conformity to Civil Action 1142. Venue 1143. Commencement of Action 1144. Parties. Release of Liability 1145. Rescinded 1146. Pleading More Than One Cause of Action 1147. The Complaint 1148. Counterclaim 1149. Judgment. Execution 1150. Trial Without Jury

CHAPTER 57.5 ACTION UPON GROUND RENT Rules 1161 to 1164

Rule



1161. 1162. 1163. 1164.

Enforcement of Personal Liability. Conformity to Civil Action Enforcement in Rem. Conformity to Mortgage Foreclosure Other Remedies Trial without Jury

CHAPTER 57.6 PARTITION OF REAL PROPERTY Rules 1551 to 1574

Rule



1551. Form of Action 1552. Venue 1553. Parties 1554. Specific Averments 1555. Pleading More than One Cause of Action 1556. Counterclaim 1557. Order Directing Partition. Post-Trial Relief 1558. Preliminary Conference. Appointment of Master 1559. Master. Hearing 1560. Property Capable of Division without Prejudice 1561. Property Capable of Proportionate Division. Award 1562. Property not Capable of Proportionate Division. Award

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Part II Ch. 15–22 Deeds



1563. Property not Capable of Division without Prejudice. Sale. Objections 1564. Life Estates 1565. Retention of Undivided Interests. Election. Parties not Appearing 1566. Preliminary Determination. Notice to Accept or Reject. Private Sale Confied to the Parties 1567. Private Sale Confined to Parties. Conduct. Confirmation 1568. Public Sale 1569. Master’s Report. Exceptions 1570. Decision and Order 1571. Trustees to Satisfy Liens and Charges 1572. Sale not Confined to Parties 1573. Return of Sale and Schedule of Distribution 1574. Costs and Counsel Fees 1590. Partition of Real Property. Acts of Assembly Not Suspended

Part I Ch. 1–14 Brokers



Table of Contents

TABLE OF CONTENTS—PART VII

Part III Ch. 23–35 Mortgages

CHAPTER 57.7 ACTIONS UPON MECHANICS’ LIENS Rules 1651 to 1661

Rule

1651. Definitions. Conformity to Civil Action 1652. Venue 1653. Commencement of Action 1654. Defendant 1655. Rescinded 1656. The Complaint 1657. Joinder of Causes of Action Prohibited 1658. Set-Off. Counterclaim 1659. Compelling Commencement of Action 1660. Judgment. Execution 1661. Trial without Jury

Part IV Ch. 36–40 Insurance Part V Ch. 41–48A Zoning, etc.



Rules 2970 to 2976

Rule



Rules 2981 to 2986

Part IX Ch. 68–72 Condos, etc.

CHAPTER 57.9 STATUTORY ACTION TO CONFORM CONFESSED JUDGMENT

Part VIII Ch. 64–67 L/T



2970. Conformity. Scope 2971. Commencement of Action 2972. Successive Actions 2973. Rescinded 2973.1. Execution 2973.2. Notice Served Prior to Execution 2973.3. Notice Served With Writ of Possession. Prompt Hearing Limited to Issue of Waiver of Due Process Rights 2973.4. Choice of Procedure. Notice Upon Subsequent Executions 2974. Confession of Judgment. Form 2974.1. Praecipe for Writ of Possession 2974.2. Notice of Judgment and Execution Required by Rule 2973.2. Form 2974.3. Notice of Judgment and Execution Required by Rule 2973.3. Form 2975. Application of Amendments to Pending Actions 2976.  Suspension of Acts of Assembly. Abolition of Practice and Procedure under Repealed Statutes

Part VII Ch. 57–63 Litigation





Part VI Ch. 49–56 Taxation

CHAPTER 57.8 CONFESSION OF JUDGMENT FOR POSSESSION OF REAL PROPERTY

Rule

2981. Definitions. Conformity to Civil Action 2982. Venue

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TABLE OF CONTENTS—Real Estate Litigation



2983. Commencement of Action 2984. Complaint 2985. Rescinded 2986. Judgment. Conforming the Confessed Judgment

CHAPTER 57.10 ENFORCEMENT OF MONEY JUDGMENTS FOR THE PAYMENT OF MONEY Rules 3101 to 3159

Rule

3101. Definitions. Garnishee. Scope. 3101.1. Property Subject to Execution. Execution Within and After Five Years. 3101.2. Obligation Secured by Real and Personal Property. Plaintiff’s Election to Proceed against Both in Accordance with Its Rights against the Real Property. 3102. Writ of execution. 3103. Commencement; issuance. 3104. Writ of Execution. Entry. Lien. 3105. Writ; notation of time of receipt. 3106. Substitution, reissuance and expiration of writ. 3107. Order of levy and attachment. 3108. Service of Writ, Notice of Execution. 3109. Manual possession; retention of possession. 3110. Execution against contents of safe deposit box. 3111. Service of the Writ on Garnishee. Effect. 3111.1. Exemptions from levy and attachment. 3112. Service of the writ upon garnishee; real property of defendant in name of third party. 3113. Service upon garnishee; execution against mortgages, judgments or other liens on real property. 3114. Sequestration of rents, principal, interest, income, etc. 3115. Writs of several plaintiffs; notation of levy. 3116. Security for sheriff. 3117. Discovery in aid of execution. 3118. Supplementary relief in aid of execution. 3119. Release of property from levy. 3120. Abandonment of levy. 3121. Stay of execution; setting aside execution. 3122. Venue of stay and other proceedings. 3123. Debtor’s exemption. 3123.1. Claim for exemption or immunity of property; prompt hearing. 3124. Order of sale. 3125. Perishable property; sale, preservation, or other disposition. 3126. Sale of inventory in course of trade. 3127. Right of sheriff to break and enter. 3128. Notice of sale; personal property. 3129. Notice of sale; real property. 3129.1. Sale of Real Property. Notice. Affidavit. 3129.2. Notice of sale; handbills; written notice; publication. 3129.3. Postponement of Sale. New Notice. Failure of Plaintiff to Attend Sale. 3130. Sale of securities. 3131. Sale of real property located in more than one county. 3132. Setting aside sale. 3133. Lien creditor as purchaser. 3134. Transfer of personal property to purchaser. 3135. Sheriff’s Deed to Real Property. Correction of Deed. 3136. Distribution of proceeds. 3137. Priority of distribution as between competing plaintiffs. 3138. Sheriff’s expenses and fees; recovery as costs; abandonment of writ for nonpayment. 3139. Sheriff’s return.

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Part II Ch. 15–22 Deeds



3140. Notice by garnishee. 3141. Garnishee’s duty to defend; venue of proceedings. 3142. Preliminary objections. 3143. Dissolution of attachment; release of property; bond. 3144. Interrogatories to garnishee. 3145. Interrogatories; procedure. 3146. Judgment against garnishee upon default or admission in answer to interrogatories. 3147. Judgment against garnishee on pleadings or after trial. 3148. Content of judgment against garnishee; execution. 3149. Objection to security. 3159. Acts of Assembly not suspended.

Part I Ch. 1–14 Brokers



Rules 3160 to 3165

Rule

Part V Ch. 41–48A Zoning, etc.

CHAPTER 57.12 ENFORCEMENT OF JUDGMENT: ACTION OF MORTGAGE FORECLOSURE Rules 3180 to 3183 3180. Judgment. Execution 3181. Conformity to Rules Governing Enforcement of Judgments for Payment of Money 3182. Service of Writ. Levy 3183. Stay of Execution. Setting Aside Execution

Rules 3190 and 3191

Part VII Ch. 57–63 Litigation

CHAPTER 57.13 ENFORCEMENT OF JUDGMENT: ACTION UPON MECHANICS LIENS, MUNICIPAL CLAIMS, TAX CLAIMS, & CHARGES OF LAND

Part VI Ch. 49–56 Taxation



Part IV Ch. 36–40 Insurance

3160. Judgment. Execution 3161.  Conformity to Rules Governing Enforcement of Judgments for Payment of Money 3161.1. Commencement 3162. Stay of Execution. Setting Aside Execution 3163. Possession of Real Property Located in More than One County 3164. Sheriff’s Return 3165. Reentry by Defendant. New Writ of Possession

Part III Ch. 23–35 Mortgages

CHAPTER 57.11 ENFORCEMENT OF JUDGMENT IN ACTION OF EJECTMENT

Rule

Table of Contents

TABLE OF CONTENTS—PART VII

Rule

3190. Judgment. Execution 3191. Acts of Assembly

CHAPTER 57.14 FORMS Rule

3251. Praecipe for Writ Of Execution. Money Judgments 3252. Writ of Execution—Money Judgments 3253. Interrogatories in Attachment 3254. Praecipe for Writ of Possession 3255. Writ of Possession 3256. Praecipe for Writ. Mortgage Foreclosure

lxvii

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Index



Part IX Ch. 68–72 Condos, etc.

Rules 3251 to 3260

Part VIII Ch. 64–67 L/T



12/22/21 10:45 AM

TABLE OF CONTENTS—Real Estate Litigation

3257. Writ of Execution. Mortgage Foreclosure 3258. Property Claim 3259. Sheriff’s Notice 3260. Objection to Sheriff’s Determination

CHAPTER 57.15 DEFICIENCY JUDGMENTS Rule 3276 to 3291

Rule











3276. Scope 3277. Definitions 3278. Venue. Supplementary Proceeding 3279. Commencement. Petition 3280. Answer 3281. Parties 3282. Petition. Averments. Notice to Defend 3283. Service 3284. Order Upon Default or Admission 3285. Trial 3286. Rescinded 3287. Parties 3288. Petition. Averments. Notice to Defend 3289. Service 3290. Order Upon Default or Admission 3291. Trial

CHAPTER 57.16 ATTACHMENT OF WAGES, SALARY AND COMMISSIONS UNDER SECTION 8127(A)(3.1) OF THE JUDICIAL CODE (LANDLORD/TENANT) Rules 3301 to 3313

Rule

3301. Scope. Definitions 3302. Commencement. Notice 3303. Exemption from Attachment. Procedure 3304. Writ for the Attachment of Wages. Issuance. Service 3311. Praecipe for Notice of Intent to Attach Wages. Form 3312. Notice of Intent to Attach Wages. Claim for Exemption from Wage Attachment. Notice of Claim for Exemption of Wages from Attachment. Forms 3313. Writ of Attachment of Wages. Form

CHAPTER 57.17 DISCOVERY: ENTRY UPON PROPERTY FOR INSPECTION Rules 4009.31 to 4009.33

Rule

4009.31. Entry Upon Property for Inspection and Other Activities. General Provisions 4009.32. Request for Entry Upon Property of a Party 4009.33. Motion for Entry Upon Property of a Person Not a Party

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Table of Contents

TABLE OF CONTENTS—PART VII

CHAPTER 58

Sec.

68 P.S. § 81 to 68 P.S. § 88 81. Statement of claim under statute of limitations, by claimant out of possession 82. Form of statement 83. Executor, trustee, guardian, etc., may make statement; effect 84. Statement must be subscribed and sworn to; form of oath 85. Statement to be recorded same as deeds; effect 86. Claim invalid as against purchaser without notice if not recorded 87. Act to apply to existing claims 88. Act not to apply to claims adverse to the Commonwealth

CHAPTER 60 42 P.S. § 7501

DECLARATORY RELIEF 42 P.S. § 7533

Sec.

Part IX Ch. 68–72 Condos, etc.

CHAPTER 61

Part VIII Ch. 64–67 L/T

ATTACHMENT OF PROPERTY PRIOR TO JUDGMENT

Part VII Ch. 57–63 Litigation

§ § § § § § § §

Part VI Ch. 49–56 Taxation

Sec.

Part V Ch. 41–48A Zoning, etc.

CLAIM BY ADVERSE POSSESSION

Part IV Ch. 36–40 Insurance

CHAPTER 59

Part III Ch. 23–35 Mortgages

5522. Six months limitation 5523. One year limitation 5524. Two year limitation 5524.1. Limitation and application for asbestos claims 5525. Four year limitation 5526. Five year limitation 5527. Six year limitation 5527.1. Ten year limitation. [Effective June 19, 2019] 5527.2. Mesne profits [Effective June 19, 2019]] 5527.3. Reimbursement. 5528. Fifteen year limitation 5529. Twenty year limitation 5530. Twenty-one year limitation 5531. No limitation 5532. Absence or concealment 5533. Infancy, insanity or imprisonment 5534. War 5535. Effect of other actions and proceedings 5536. Construction projects 5537. Land surveying 5538. Landscape architecture

Part II Ch. 15–22 Deeds

§ § § § § § § § § § § § § § § § § § § § §

Part I Ch. 1–14 Brokers

STATUTES OF LIMITATION 42 Pa.C.S. § 5522 to 42 Pa.C.S. § 5538

§ 7533. Construction of documents

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Index

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TABLE OF CONTENTS—Landlord and Tenant

CHAPTER 62 PENNSYLVANIA UNIFORM VOIDABLE TRANSACTIONS ACT (Formerly Pennsylvania Uniform Fraudulent Transfer Act) 12 Pa.C.S. § 5101 to 12 Pa.C.S. § 5114

Sec. § § § § § § § § § § § § § §

5101. 5102. 5103. 5104. 5105. 5106. 5107. 5108. 5109. 5110. 5111. 5112. 5113. 5114.

Short title of chapter and definitions. Insolvency. Value. Transfer or obligation voidable as to present or future creditor. Transfer or obligation voidable as to present creditor. When transfer is made or obligation is incurred. Remedies of creditor. Defenses, liability and protection of transferee or obligee. Extinguishment of claim for relief. Governing law. Application to series organization. Supplementary provisions. Uniformity of application and construction. Relation to Electronic Signatures in Global and National Commerce Act.

CHAPTER 63 DEFICIENCY JUDGMENTS 42 Pa.C.S. § 8103

Sec.

§ 8103. Deficiency judgments

PART VIII LANDLORD AND TENANT CHAPTER 64 LANDLORD AND TENANT ACT OF 1951 68 P.S. § 250.101 to 68 P.S. § 250.602

Article I Preliminary Provisions Sec. § § § § §

101. Short title 102. Definitions 103. Provisions excluded from act 104. Rights of persons acquiring title by descent or purchase 105. Sublessees

Article II Creation of Leases; Statute of Frauds; Mortgaging of Leaseholds Sec.

§ 201. Leases for not more than three years

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202. Leases for more than three years 203. Assignment, grant and surrender of leases to be in writing; exception 204. Mortgaging of leaseholds 205. Participation in Tenants’ Association 206. Statement of Escrowed Funds

Sec.

Article IV Exemptions From Distress and Sale Sec.

Sec.

§ § § § §

501-A. Definitions 502-A. Landlord’s duties 503-A. Tenant’s duties 504-A. Tenant’s rights 505-A. Use of illegal drugs

gtb-parealestate22-all.indb 71

Index

lxxi

Part IX Ch. 68–72 Condos, etc.

Sec.

Part VIII Ch. 64–67 L/T

Article V-A Tenement Buildings and Multiple Dwelling Premises

Part VII Ch. 57–63 Litigation

§ 501. Notice to quit § 502. Summons and service § 503. Hearing; judgment; writ of possession; payment of rent by tenant § 504. Return by constable or sheriff § 505. Abandoned mobile homes § 505a. Disposition of abandoned personal property §§ 506 to Repealed  510. § 511. Remedy to recover possession by ejectment preserved § 511.11. Escrow funds limited § 511.21. Interest on escrow funds held more than two years § 511.31. Bond in lieu of escrowing § 512. Recovery of improperly held escrow funds § 513. Appeal by tenant to common pleas court § 514. Death of Tenant

Part VI Ch. 49–56 Taxation

Article V Recovery of Possession

Part V Ch. 41–48A Zoning, etc.

§ 401. Tenant’s exemption; appraisement § 402. Wearing apparel; Bibles; school books; sewing machines and military accoutrements to be exempt § 403. Exemption of property on premises under lease or conditional sale contract subject to a security interest § 404. Exemption of other property located on premises

Part IV Ch. 36–40 Insurance

301. Recovery of rent by assumpsit 302. Power to distrain for rent; notice 303. Collection of rent in special cases 304. Collection of rent by purchasers at sheriff’s and judicial sales 305. Distress of property fraudulently removed 306. Replevin by tenant or owner 307. Proceeding by tenant to determine set-off 308. Appraisement of property levied upon 309. Sale and notice thereof; distribution of proceeds 310. Rights of purchasers of growing agricultural crops 311. Damages for removal of property distrained on 312. Remedy in cases of improper distress 313. Remedy where distress and sale made and no rent due

Part III Ch. 23–35 Mortgages

§ § § § § § § § § § § § §

Part II Ch. 15–22 Deeds

Article III Recovery of Rent By Assumpsit and Distress

Part I Ch. 1–14 Brokers

§ § § § §

Table of Contents

TABLE OF CONTENTS—PART VIII

12/22/21 10:45 AM

TABLE OF CONTENTS—Landlord and Tenant § § § § § § § § § §

501-B. Definitions 502-B. Tenants protected 503-B. Tenants’ rights 504-B. Right to render services; notice 505-B. Compensation for physical damage 506-B. Compensation for loss of value 507-B. Venue 508-B. Alternative service 509-B. Compliance with requirements for historical buildings 510-B. Existing CATV services protected

Article VI Repeals Sec.

§ 601. Specific repeals § 602. General repeal

CHAPTER 65 PHILADELPHIA MUNICIPAL COURT RULES OF CIVIL PRACTICE Rule

101. Title and Citation of Rules 102. Definitions 103. Principles of Interpretation and Construction of Rules 104. Agreements 105. Filing of Papers 106. Commencement of Actions: Pleadings Allowed 107. Waiver of Portion of Claim 108. Venue Chapter 65   Philadelphia Municipal Court Rules of Civil Practice (cont.) 109. Contents of Complaints 110. Claim Fact Sheet for Personal Injury and Property Damage Actions 111. Service of Complaints, Non-Execution Process, Petitions and Other Documents 112. Returns and Affidavits of Service 113. Trial Assignment 114. Notice of Defense 115. Counterclaims, Cross Claims, Additional Claims 116. Notification of Trial and Continuances 117. Applications 118. Reserved 119. Voluntary Termination of Actions—Withdrawals and Settlements 120. Dismissals—Failure to Appear 121. Conduct of Trial: Evidence 122. Notice of Entry of Judgment and Orders 123. Payment of Judgment in Installments 124. Time and Method of Appeal and Stay of Execution Pending Appeal 125. Transfer of Domestic Judgments 126. Execution and Revival of Judgments: Sheriff’s Interpleader 127. Actions in Which any Party is a Minor 128. Fees 129. Subpoena 130. Bill of Costs 131. Self-Representation 132. Reserved 133. Discontinuance 134. Fair Housing Commission 135. Nuisance Complaints 136. Forfeiture of Confiscated Firearms and Weapons 137. Court Access for Persons with Disabilities 138.-142. Reserved

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CHAPTER 66

Pa.R.C.P.M.D.J. No. 201-1082

Rule

Part V Ch. 41–48A Zoning, etc. Part VI Ch. 49–56 Taxation Part VII Ch. 57–63 Litigation Part VIII Ch. 64–67 L/T Part IX Ch. 68–72 Condos, etc. Index

gtb-parealestate22-all.indb 73

Part IV Ch. 36–40 Insurance

lxxiii

Part III Ch. 23–35 Mortgages

201. Citation of Rules. 202. Definitions. 203. Computation of Time. 204. Purpose and Intent of Rules. 205. Record of Proceedings. Transcript of Record. 206. Costs; Proceedings In Forma Pauperis. 207. Representation in Magisterial District Court Proceedings. 207.1. Attorney of Record; Notices. 208. Repealed Acts of Assembly not to Continue as Part of the Common Law. 209. Continuances and Stays. 210. Practices Prohibited. 211. Abolished, Consolidated, or Changed Magisterial Districts; Subsequent Filings. 212. Design of Forms. 213. Subpoena to Attend and Testify. 214. Subpoena; Issuance; Service. 215. Advanced Communication Technology. 216. Local Rules. 217. Confidential Information and Confidential Documents. Certification. 301. Definition. Scope. 302. Venue. 303. Commencement of the Action. 304. Form of Complaint. 305. Setting the Date for Hearing; Delivery for Service. 306. Numbering and Filing of Complaints. 307. Service of the Complaint. 308. Service Upon Individuals. 309. Service Upon Partnerships. 310. Service Upon Corporations. 311. Service Upon Unincorporated Associations. 312. Service on a Political Subdivision. 313. Service Outside the Commonwealth. 314. Return, Waiver and Failure of Service; Reinstatement. 315. Claim by Defendant. 316. Amendment to Complaint. 317. [Rescinded]. 318. Informing Plaintiff of Notice of Intention to Defend. 319. Failure of a Party to Appear at the Hearing. 320. [Rescinded]. 320. Request to Withdraw Complaint; Settlement. 321. Hearings and Evidence. 322. Judgment. 323. Judgment—Payment in Installments. 324. Notice of Judgment or Dismissal and the Right to Appeal. 325. [Renumbered]. 401. Definitions. 401.1. Assignment of Judgment; Parties. 402. Request for Order of Execution. Entry of Judgment in Court of Common Pleas. 403. Issuance and Reissuance of Order of Execution. 404. Notation of Time of Receipt. 405. Service of Order of Execution.

Part II Ch. 15–22 Deeds

RULES OF CIVIL PROCEDURE FOR MAGISTERIAL DISTRICT JUDGES

Part I Ch. 1–14 Brokers

143. Recision 144. Effective Date 205.4. Mandatory Electronic Filing

Table of Contents

TABLE OF CONTENTS—PART VIII

12/22/21 10:45 AM

TABLE OF CONTENTS—Landlord and Tenant 406. Property Subject to Levy. 407. General Monetary Exemption. 408. Setting Aside Exempt Property. 409. Notice Accompanying Order of Execution. 410. Stay of Execution Generally. 411. Right of Executing Officer to Break and Enter. 412. Notice of Sale. 413. Objections to Levy and Property Claims. 414. Plaintiff as Purchaser. 415. Transfer of Property to Purchaser. 416. Distribution of Proceeds. Priorities. 417. Officer’s Expenses and Fees. 418. Abandonment of Levy for Inability to Hold Sale. 419. Officer’s Return. 420. Determination of Property Claims and Disputes. 421. Time for Hearing and Determination; Effective Date of Orders and Determination. 481. Acts of Assembly Suspended. 482. Acts of Assembly Not Suspended. 501. Definition. 502. Venue. Commencement of the Action. 503. Form of Complaint. 504. Setting the Date for Hearing; Delivery for Service. 505. Numbering and Filing of Complaints. 506. Service of Complaint. 507. Notation and Return of Service; Waiver of Service. 508. Claim by Defendant. 509. Amendments to Complaint. 510. [Rescinded]. 511. Continuances. 512. Hearings and Evidence. 513. Disputes Concerning Title. 514. Judgment; Notice of Judgment or Dismissal and the Right to Appeal. 514.1. Domestic Violence Affidavit 515. Request for Order for Possession. 516. Issuance and Reissuance of Order for Possession. 517. Notation of Time of Receipt; Service of Order for Possession. 518. Satisfaction of Order by Payment of Rent and Costs. 519. Forcible Entry and Delivery of Possession. 519.1. Request for Determination of Abandoned Manufactured Home. 520. Officer’s Return. 521. Execution by Levy. 581. Acts of Assembly Suspended. 582. Acts of Assembly Not Suspended. 801. Definitions. 802. Minor May Be Party to Action. 803. Entitlement of Complaint. 804. Service of the Complaint. 805. Representation of Minor by Guardian. 806. Guardian to Supervise Action. 807. Judgment. Costs. 808. Compromise, Settlement, Discontinuance and Payment. 809. Incapacitated Person May Be Party To Action. 810. Entitlement of Complaint. 811. Service of the Complaint. 812. Guardian to Represent Incapacitated Person and Supervise Action. 813. Procedure When Incapacitated Person Not Designated as Such. 814. Judgment and Costs. 815. Judgment—Unrepresented Incapacitated Person. 816. Compromise, Settlement, Discontinuance and Payment. 817. [Rescinded]. 818. Representation in Rule 420 and 519.1 Matters. 819. Magisterial District Judge May Not Appoint Guardian. 820. Appellate Proceedings.

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Acts of Assembly Suspended. Definitions. Time and Method of Appeal. Bond for Appeal. Filing Complaint or Praecipe on Appeal. Appeals Involving Cross-Complaints. Service of Notice of Appeal and Other Papers. Striking Appeal. Procedure on Appeal. Appeal as Supersedeas. Praecipe for Writ of Certiorari. Bond for Writ of Certiorari. Issuance and Service of Writ of Certiorari. Return by Magisterial District Judge. Writ of Certiorari as Supersedeas. Orders of Court in Certiorari Proceedings. Certiorari and Appeal Not Permitted. Statement of Objection. Form and Content of Statement of Objection. Duties of Magisterial District Judge Upon Receipt of Statement of Objection. Consideration of Statement of Objection by Court of Common Pleas. Statement of Objection to Operate as Stay. Acts of Assembly Suspended. Acts of Assembly Not Suspended.

Part I Ch. 1–14 Brokers Part II Ch. 15–22 Deeds Part III Ch. 23–35 Mortgages Part IV Ch. 36–40 Insurance

881. 1001. 1002. 1003. 1004. 1005. 1006. 1007. 1008. 1009. 1010. 1011. 1012. 1013. 1014. 1015. 1016. 1017. 1018. 1019. 1020. 1081. 1082.

CHAPTER 67





CHAPTER 68 68 Pa.C.S. § 3101 to 68 Pa.C.S. § 3414

Sec. § § § §

3101. Short title of subpart 3102. Applicability of subpart 3103. Definitions 3104. Variation by agreement

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Index

lxxv

Part IX Ch. 68–72 Condos, etc.

UNIFORM CONDOMINIUM ACT

Part VIII Ch. 64–67 L/T

CONDOMINIUMS, COOPERATIVES, AND MANUFACTURED HOUSING

Part VII Ch. 57–63 Litigation

PART IX

Part VI Ch. 49–56 Taxation



3301. Scope. Definitions 3302. Commencement. Notice 3303. Exemption from Attachment. Procedure 3304. Writ for the Attachment of Wages. Issuance. Service 3311. Praecipe for Notice of Intent to Attach Wages. Form 3312. Notice of Intent to Attach Wages. Claim for Exemption from Wage Attachment. Notice of Claim for Exemption of Wages from Attachment. Forms 3313. Writ of Attachment of Wages. Form

Part V Ch. 41–48A Zoning, etc.

ATTACHMENT OF WAGES, SALARY AND COMMISSIONS UNDER SECTION 8127(A)(3.1) OF THE JUDICIAL CODE (LANDLORD/TENANT) Rule

Table of Contents

TABLE OF CONTENTS—PART IX

12/22/21 10:45 AM

TABLE OF CONTENTS—Condominiums § § § § § § § § § § § § § § § § § § § § § § § § § § § § § § § § § § § § § § § § § § § § § § § § § § § § § § § § § § § § § § § §

3105. Separate titles and taxation 3106. Applicability of local ordinances, regulations and building codes 3107. Eminent domain 3108. Supplemental general principles of law 3109. Construction against implicit repeal 3110. Uniformity of application and construction 3111. Unconscionable agreement or term of contract 3112. Obligation of good faith 3113. Remedies to be liberally administered 3201. Creation of condominium 3202. Unit boundaries 3203. Construction and validity of declaration and bylaws 3204. Description of units 3205. Contents of declaration; all condominiums 3206. Contents of declaration; flexible condominiums 3207. Leasehold condominiums 3208. Allocation of common element interests, votes and common expense liabilities 3209. Limited common elements 3210. Plats and plans 3211. Conversion and expansion of flexible condominiums 3212. Withdrawal of withdrawable real estate 3213. Alterations of units 3214. Relocation of boundaries between adjoining units 3215. Subdivision or conversion of units 3216. Easement for encroachments 3217. Declarant’s offices, models and signs 3218. Easement to facilitate completion, conversion and expansion 3219. Amendment of declaration 3220. Termination of condominium 3221. Rights of secured lenders 3222. Master associations 3223. Merger or consolidation of condominiums 3301. Organization of unit owners’ association 3302. Powers of unit owners’ association 3303. Executive board members and officers 3304. Transfer of special declarant rights 3305. Termination of contracts and leases of declarant 3306. Bylaws 3307. Upkeep of condominium 3308. Meetings 3309. Quorums 3310. Voting; proxies 3311. Tort and contract liability 3312. Insurance 3313. Surplus funds 3314. Assessments for common expenses 3315. Lien for assessments 3316. Association records 3317. Association as trustee 3318. Conveyance or encumbrance of common elements 3319. Other liens affecting the condominium 3320. Declarant delivery of items to association 3321. Alternative dispute resolution in condominiums 3322. Complaints filed with Bureau of Consumer Protection 3401. Applicability; waiver 3402. Public offering statement; general provisions 3403. Public offering statement; time-share estates 3404. Public offering statement; condominiums containing conversion buildings 3405. Public offering statement; condominium securities 3406. Purchaser’s right to cancel 3407. Resales of units 3408. Escrow of deposits 3409. Release of liens 3410. Condominiums containing conversion buildings

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3411. Warranty against structural defects 3412. Effect of violations on rights of action 3413. Labeling of promotional material 3414. Declarant’s obligation to complete and restore

CHAPTER 69 68 Pa.C.S. § 4101 to 68 Pa.C.S. § 4418

Sec.

Part VI Ch. 49–56 Taxation Part VII Ch. 57–63 Litigation Part VIII Ch. 64–67 L/T Part IX Ch. 68–72 Condos, etc. Index

gtb-parealestate22-all.indb 77

Part V Ch. 41–48A Zoning, etc.

lxxvii

Part IV Ch. 36–40 Insurance

4101. Short title of subpart 4102. Applicability of subpart 4103. Definitions 4104. Variation by agreement 4105. Property classification of cooperative interests 4106. Applicability of local ordinances, regulations and building codes 4107. Eminent domain 4108. Supplemental general principles of law applicable 4109. Construction against implicit repeal 4110. Uniformity of application and construction 4111. Unconscionable agreement or term of contract 4112. Obligation of good faith 4113. Remedies to be liberally administered 4201. Creation of cooperative ownership 4202. Unit boundaries 4203. Construction and validity of declaration and bylaws 4204. Description of units 4205. Contents of declaration 4206. Leasehold cooperatives 4207. Allocation of ownership interests, votes and common expense liabilities 4208. Limited common elements 4209. Exercise of development rights 4210. Alterations of units 4211. Relocation of boundaries between adjoining units 4212. Subdivision of units 4213. Easement for encroachments 4214. Declarant’s office, models and signs 4215. Easement rights 4216. Amendment of declaration 4217. Termination of cooperative ownership 4218. Rights of secured lenders and secured creditors 4219. Master associations 4220. Merger or consolidation of cooperatives 4221. Method for transferring a cooperative interest 4301. Organization of association 4302. Powers of association 4303. Executive board members and officers 4304. Transfer of special declarant rights 4305. Termination of contracts and leases of declarant 4306. Bylaws 4307. Upkeep of cooperative 4308. Meetings 4309. Quorums 4310. Voting; proxies 4311. Tort and contract liability 4312. Conveyance or encumbrance of cooperative 4313. Insurance 4314. Assessments for common expenses 4315. Lien for assessments 4316. Other liens affecting cooperative 4317. Association records 4318. Association as trustee

Part III Ch. 23–35 Mortgages

§ § § § § § § § § § § § § § § § § § § § § § § § § § § § § § § § § § § § § § § § § § § § § § § § § § § §

Part II Ch. 15–22 Deeds

REAL ESTATE COOPERATIVE ACT

Part I Ch. 1–14 Brokers

§ § § §

Table of Contents

TABLE OF CONTENTS—PART IX

12/22/21 10:45 AM

TABLE OF CONTENTS—Condominiums § § § § § § § § § § § § § § § § § § § § § § §

4319. Termination of cooperative interest 4320. Declarant delivery of items to association 4321. Limited equity cooperatives 4322. Alternative dispute resolution in cooperatives 4323. Complaints filed with Bureau of Consumer Protection 4401. Applicability; waiver 4402. Public offering statement; requirements 4403. Public offering statement; general provisions 4404. Public offering statement; cooperatives subject to development rights 4405. Public offering statement; time shares 4406. Public offering statement; cooperatives containing conversion buildings 4407. Public offering statement; cooperative securities 4408. Purchaser’s right to cancel 4409. Resales of cooperative interests 4410. Escrow of deposits 4411. Release of liens 4412. Cooperatives containing conversion buildings 4413. Express warranties of quality 4414. Implied warranty against structural defects 4415. Effect of violations on rights of action 4416. Labeling of promotional material 4417. Declarant’s obligation to complete and restore 4418. Substantial completion of unit

CHAPTER 70 UNIFORM PLANNED COMMUNITY ACT 68 Pa.C.S. § 5104 to 68 Pa.C.S. § 5414

Sec. § § § § § § § § § § § § § § § § § § § § § § § § § § § § § § § § §

5101. 5102. 5103. 5104. 5105. 5106. 5107. 5108. 5109. 5110. 5111. 5112. 5113. 5114. 5115. 5201. 5202. 5203. 5204. 5205. 5206. 5207. 5208. 5210. 5211. 5212. 5213. 5214. 5215. 5216. 5217. 5218. 5219.

Short title of subpart Applicability Definitions Variation by agreement Separate titles and taxation Applicability of local ordinances, regulations and building codes Eminent domain Supplemental general principles of law applicable Construction against implicit repeal Uniformity of application and construction Severability Unconscionable agreement or term of contract Obligation of good faith Remedies to be liberally administered Businesses operated by minors Creation of planned community Unit boundaries Construction and validity of declaration and bylaws Description of units Contents of declaration; all planned communities Contents of declaration for flexible planned communities Leasehold planned communities Allocation of votes and common expense liabilities Plats and plans Conversion and expansion of flexible planned communities Withdrawal of withdrawable real estate Alteration of units Relocation of boundaries between units Subdivision or conversion of units Easement for encroachments Declarant offices, models and signs Easement to facilitate completion, conversion and expansion Amendment of declaration

lxxviii

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Part VII Ch. 57–63 Litigation

gtb-parealestate22-all.indb 79

Index

lxxix

Part IX Ch. 68–72 Condos, etc.

§ 1. Short title § 2. Definitions § 3. Establishment of manufactured home standards

Part VIII Ch. 64–67 L/T

Sec.

Part VI Ch. 49–56 Taxation

35 P.S. § 1656.1 to 35 P.S. § 1656.9

Part V Ch. 41–48A Zoning, etc.

71.1  Manufactured Housing Construction and Safety Standards Authorization Act    35 P.S. § 1656.1 to 35 P.S. § 1656.9 71.2   Manufactured Housing Improvement Act    35 P.S. § 1658.1 to 35 P.S. § 1658.6

CHAPTER 71.1 MANUFACTURED HOUSING CONSTRUCTION AND SAFETY STANDARDS AUTHORIZATION ACT

Part IV Ch. 36–40 Insurance

MANUFACTURED HOUSING Chapter

Part III Ch. 23–35 Mortgages

CHAPTER 71

Part II Ch. 15–22 Deeds

5220. Termination of planned community 5221. Rights of secured lenders 5222. Master associations 5223. Merger or consolidation of planned community 5301. Organization of unit owners’ association 5302. Power of unit owners’ association 5303. Executive board members and officers 5304. Transfer of special declarant rights 5305. Termination of contracts and leases of declarant 5306. Bylaws 5307. Upkeep of planned community 5308. Meetings 5309. Quorums 5310. Voting; proxies 5311. Tort and contract liability 5312. Insurance 5313. Surplus funds 5314. Assessments for common expenses 5315. Lien for assessments 5316. Association records 5317. Association as trustee 5318. Conveyance or encumbrance of common facilities 5319. Other liens affecting planned community 5320. Declarant delivery of items to association 5321. Alternative dispute resolution in planned communities 5322. Complaints filed with Bureau of Consumer Protection 5401. Applicability; waiver 5402. Public offering statement; general provisions 5403. Public offering statement; time-share estates 5404. Public offering statement; planned communities containing conversion buildings 5405. Public offering statement; planned community securities 5406. Purchaser’s right to cancel 5407. Resales of units 5408. Escrow of deposits 5409. Release of liens 5410. Planned communities containing conversion buildings 5411. Warranty against structural defects 5412. Effect of violations on rights of action 5413. Labeling of promotional material 5414. Declarant’s obligation to complete and restore

Part I Ch. 1–14 Brokers

§ § § § § § § § § § § § § § § § § § § § § § § § § § § § § § § § § § § § § § § §

Table of Contents

TABLE OF CONTENTS—PART IX

12/22/21 10:45 AM

TABLE OF CONTENTS—Condominiums § § § § § §

4. Effect of standards 5. Label required; violations 6. Fees 7. Administration of act 8. Consumer protection 9. Penalties

CHAPTER 71.2 MANUFACTURED HOUSING IMPROVEMENT ACT 35 P.S. § 1658.1 to 35 P.S. § 1658.6

Sec. § § § § § §

1. Short title 2. Legislative findings and purpose 3. Definitions 4. Application of act 5. Departmental duties 6. Inspection of installation of manufactured homes

CHAPTER 72 MANUFACTURED HOME COMMUNITY RIGHTS ACT 68 P.S. § 398.1–§ 398.16

Sec.

§ 398.1. Short title § 398.2. Definitions § 398.3. Evictions § 398.4. Community rules and regulations § 398.4.1. Written lease § 398.5. Underskirting and tie-down equipment § 398.6. Disclosure of fees § 398.7. Appliance installation fees § 398.8. Entrance and exit fees § 398.9. Installation and removal fees § 398.10. Other fees § 398.10.1 Determination of Abandonment § 398.10.2. Abandoned Manufactured Homes § 398.10.3. Immunity from Liability § 398.11. Sale of manufactured homes § 398.11.1. Sale or Lease of Manufactured Home Communities. § 398.11.2. Closure of Manufactured Home Communities § 398.11.3. Notice Requirements in Event of Closure of Manufactured Home Community § 398.12. Waiver of rights § 398.13. Damages § 398.14. Restraining prohibited acts § 398.15. Enforcement § 398.16. Retaliatory evictions § 398.16.1 Remedies

Index

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Table of Contents Part I Ch. 1–14 Brokers

PART I REAL ESTATE BROKERS, AGREEMENTS AND SETTLEMENTS 1.  Statute of Frauds 2.  Real Estate Licensing and Registration Act 3.  Commercial Real Estate Broker Lien Act 4.  Federal Real Estate Settlement Procedures 5.  Residential Real Estate Transfers Law 6.  Real Estate Seller Disclosure Law 7.  Home Inspection Law 8.  Installment Land Contract Law 9.  Notice of Zoning and Code Violations 10.  Notice of Bulk Sales, Reports, Taxes 11.  Hazardous Waste Disclosure 12.  Unavailable Community Sewage Disclosure Requirement 13.  Mines and Mining Removal of Surface Support 14.  Air Space

Part III Ch. 23–35 Mortgages Part IV Ch. 36–40 Insurance

Chapter Chapter Chapter Chapter Chapter Chapter Chapter Chapter Chapter Chapter Chapter Chapter Chapter Chapter

Part II Ch. 15–22 Deeds



CHAPTER 1 STATUTE OF FRAUDS

Part V Ch. 41–48A Zoning, etc.

33 P.S. §§ 1 & 2

Sec.

§ 1. Parol leases, etc.; estates in lands not to be assigned, etc., except by writing § 2. Declarations of trusts and grants thereof to be in writing

Part VIII Ch. 64–67 L/T Part IX Ch. 68–72 Condos, etc. Index

gtb-parealestate22-all.indb 1

Part VII Ch. 57–63 Litigation

1

Part VI Ch. 49–56 Taxation

§ 1.  Parol leases, etc.; estates in lands not to be assigned, etc., except by writing From and after April 10, 1772, all leases, estates, interests of freehold or term of years, or any uncertain interest of, in, or out of any messuages, manors, lands, tenements or hereditaments, made or created by livery and seisin only, or by parol, and not put in writing, and signed by the parties so making or creating the same, or their agents, thereunto lawfully authorized by writing, shall have the force and effect of leases or estates at will only, and shall not, either in law or equity, be deemed or taken to have any other or greater force or effect, any consideration for making any such parol leases or estates, or any former law or usage to the contrary notwithstanding; except, nevertheless, all leases not exceeding the term of three years from the making thereof; and moreover, that no leases, estates or interests, either of freehold or terms of years, or any uncertain interest, of, in, to or out of any messuages, manors, lands, tenements or hereditaments, shall, at any time after the said April 10, 1772, be assigned, granted or surrendered, unless it be by deed or note, in writing, signed by the party so assigning, granting or surrendering the same, or their agents, thereto lawfully authorized by writing, or by act and operation of law.

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§ 2

STATUTE OF FRAUDS

1772, March 21, 1 Sm.L. 389, § 1. § 2.   Declarations of trusts and grants thereof to be in writing All declarations or creations of trusts or confidences of any lands, tenements or hereditaments, and all grants and assignments thereof, shall be manifested by writing, signed by the party holding the title thereof, or by his last will in writing, or else to be void: Provided, That where any conveyance shall be made of any lands or tenements by which a trust or confidence shall or may arise or result by implication or construction of law, or be transferred or extinguished by act or operation of law, then and in every such case such trust or confidence shall be of the like force and effect as if this act had not been passed. 1856, April 22, P.L. 532, § 4

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Table of Contents

CHAPTER 2

Part I Ch. 1–14 Brokers

REAL ESTATE LICENSING AND REGISTRATION ACT 63 P.S. § 455.101 to 63 P.S. § 455.902

Sec.

Part V Ch. 41–48A Zoning, etc. Part VI Ch. 49–56 Taxation Part VII Ch. 57–63 Litigation Part VIII Ch. 64–67 L/T Part IX Ch. 68–72 Condos, etc. Index

gtb-parealestate22-all.indb 3

Part IV Ch. 36–40 Insurance

3

Part III Ch. 23–35 Mortgages

§ § § § § § § § § § § § § § § § § §

101. Short title 201. Definitions 202. State Real Estate Commission 301. Unlawful to conduct business without license or registration certificate 302. Civil suits 303. Criminal penalties 304. Exclusions 305. Civil penalty 401. Duty to issue licenses and registration certificates 402. Approval of schools 403. Authority to examine applicants 404. Power to promulgate regulations 404a. Continuing education 405. Repealed 406. Administration and enforcement 407. Fees 408. Reports to legislative committees 501. Reputation; inactive licensee; revoked license 511. Qualifications for license 512. Application for license 513. Corporations, partnerships and associations 521. Qualifications for license 522. Application for license 531. Qualifications for license 532. Application for license 533. Corporations, partnerships, associations or other entities 541. Qualifications for license 542. Application for license 551. Qualifications for license 552. Application for license 561. Qualifications for license 571. Application and fee for registration certificate 581. Qualifications for license 582. Application for license 591. Qualifications for license 592. Application for license 601. Duty of brokers, cemetery brokers and rental listing referral agents to maintain office 602. Reciprocal licenses 603. Employment of associate brokers, salesperson 604. Prohibited acts 605. Promotional land sales; approval 606. Relationships between brokers and consumers of real estate services 606a. Duties of licensee generally 606b. Duties of seller’s agent 606c. Duties of buyer’s broker 606d. Duties of dual agent 606e. Duties of designated agent 606f. Duties of transaction licensee 607. Deleted 608. Information to be given at initial interview 608a. Written agreement with broker 608b. Mandatory provisions of sales contract 608c. Comparative market analysis disclosure 608d. Cemetery broker’s disclosure 608e. Handling of deposits and other escrows

Part II Ch. 15–22 Deeds

§ § § § § § § § § § § § § § § § § § § § § § § § § § § § § § § § § § § § §

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§ 101 § § § § § § § § §

LICENSING AND REGISTRATION

608f. Broker price opinion 609. Right to cancel purchase of time share and campground membership 701. Hearings held by commission 702. Imputed knowledge, limitations 801. Establishment of the fund 802. Funding of the fund 803. Application for recovery from fund 901. Repealer 902. Effective date

§ 101.   Short title This act shall be known and may be cited as the “Real Estate Licensing and Registration Act.” § 201.  Definitions The following words and phrases when used in this act shall have, unless the context clearly indicates otherwise, the meanings given to them in this section: “Agency relationship.” A relationship whereby the broker or licensees in the employ of the broker act as fiduciaries for a consumer of real estate services by the express authority of the consumer of real estate services. “Associate broker.” A broker employed by another broker. “Broker.” Any person who, for another and for a fee, commission or other valuable consideration: (1)   negotiates with or aids any person in locating or obtaining for purchase, lease or an acquisition of interest in any real estate; (2)   negotiates the listing, sale, purchase, exchange, lease, time share and similarly designated interests, financing or option for any real estate; (3)   manages any real estate; (4)  represents himself to be a real estate consultant, counsellor, agent or finder; (5)  undertakes to promote the sale, exchange, purchase or rental of real estate: Provided, however, That this provision shall not include any person whose main business is that of advertising, promotion or public relations; (5.1)   undertakes to perform a comparative market analysis; or (6)   attempts to perform any of the above acts. “Broker price opinion.” An estimate prepared by a broker, associate broker or salesperson that details the probable selling price of a particular parcel of real property and provides a varying level of detail about the property’s condition, market and neighborhood, and information on comparable sales, but does not include an automated valuation model as defined in section 1125(d) of the Financial Institutions Reform, Recovery, and Enforcement Act of 1989 (Public Law 101-73, 12 U.S.C. 3354(d)). “Builder-owner salesperson.” Any person who is a full-time employee of a builder-owner of single and multifamily dwellings located within the Commonwealth and as such employee shall be authorized and empowered to list for sale, sell or offer for sale, or to negotiate the sale or exchange of real estate, or to lease or rent, or offer to lease, rent or place for rent, any real estate owned by his builder-owner employer, or collect or offer, or attempt to collect, rent for the use of real estate owned by his builder-owner employer, for and on behalf of such builder-owner employer. “Buyer agent.” Any licensee who has entered into an agency relationship with a consumer buyer of real estate.

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BROKERS, AGREEMENTS

Ch. 2

“Cemetery company.” Any person who offers or sells to the public the ownership, or the right to use, any cemetery lot. “Cemetery salesperson.” Any person employed by a broker or cemetery broker to perform duties as defined herein under “cemetery broker.” (1)   Any property, or portion thereof, which is used, occupied or is intended, arranged or designed to be used or occupied for the purpose of operating a business, an office, a manufacturing facility or any public accommodation. This paragraph does not include property which consists of less than five residential dwelling units.

“Commissioner.” Commissioner of Professional and Occupational Affairs.

(1)   An existing or potential seller, buyer, lessor or lessee of the parcel of real property.

“Consumer.” A person who is the recipient of any real estate service. “Department.” The Department of State acting through the Commissioner of Professional and Occupational Affairs.

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Index

“Designated agent.” One or more licensees designated by the employing broker, with the consent of the principal, to act exclusively as an agent or as

Part IX Ch. 68–72 Condos, etc.

(2)  A person making decisions or performing due diligence related to the potential listing, offering, sale, option, lease or acquisition price of the parcel of real property.

Part VIII Ch. 64–67 L/T

“Comparative market analysis.” A written analysis, opinion or conclusion by a broker, associate broker or salesperson relating to the probable sale or rental price of a specified parcel of real property in an identified real estate market at a specified time, which is prepared for any of the following:

Part VII Ch. 57–63 Litigation

“Commission.” The State Real Estate Commission.

Part VI Ch. 49–56 Taxation

(2)   Any vacant land offered for sale or lease, or held, for the purpose of constructing or locating thereon a building, structure or facility, or portion thereof, which is intended, arranged or designed to be used or occupied for the purpose of operating a business, an office, a manufacturing facility or any public accommodation. This paragraph does not include vacant land suitable only for construction or location of less than five residential dwelling units.

Part V Ch. 41–48A Zoning, etc.

“Commercial property.” Any of the following:

Part IV Ch. 36–40 Insurance

“Cemetery broker.” Any person engaging in or carrying on the business or acting in the capacity of a broker within this Commonwealth exclusively within the limited field or branch of business which applies to cemetery lots, plots and mausoleum spaces or openings.

Part III Ch. 23–35 Mortgages

“Cemetery.” A place for the disposal or burial of deceased human beings, by cremation or in a grave, mausoleum, vault, columbarium or other receptacle, but the term does not include a private family cemetery.

Part II Ch. 15–22 Deeds

“Campground membership salesperson.” A person who either as an employee or an independent contractor sells or offers to sell campground memberships. Such person shall sell campground memberships under the active supervision of a broker. A person licensed as a broker, as a salesperson or as a time-share salesperson shall not be required to be licensed as a campground membership salesperson as a condition for selling or offering to sell campground memberships.

Part I Ch. 1–14 Brokers

“Campground membership.” An interest, other than in fee simple or by lease, which gives the purchaser the right to use a unit of real property for the purpose of locating a recreational vehicle, trailer, tent, tent trailer, pickup camper or other similar device on a periodic basis pursuant to a membership contract allocating use and occupancy rights between other similar users.

Table of Contents

PART I

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§ 201

LICENSING AND REGISTRATION

agents on behalf of the principal to the exclusion of all other licensees within the broker’s employ. “Disclosure.” Provision of all relevant facts, without reservation, ambiguity or distortion so as to enable a consumer to understand the options and weigh the risks and benefits in order to make a decision in his or her own best interest. “Dual agent.” A licensee who acts as an agent for the buyer and seller, or lessee and landlord, in the same transaction. “Employ, employed, employee, employment.” The use of the words employ, employed, employee or employment in this act shall apply to the relationship of independent contractor as well as to the relationship of employment, except as applied to builder-owner salespersons. “License.” The term includes both a standard license and a reciprocal license. “Licensee.” A person who holds a standard license or a reciprocal license. “Listing broker.” A broker engaged as a seller’s agent, dual agent or transaction licensee to market the property of a seller/landlord for sale or lease pursuant to a written agreement with the seller/landlord. “Person.” Any individual, corporation, corporate fiduciary, partnership, association or other entity, foreign or domestic. “Principal.” A consumer of real estate services who has entered into an agency relationship with a broker. “Qualified association.” A corporation, limited liability partnership, limited partnership or limited liability company that: (1)   is incorporated or otherwise organized under the laws of this Commonwealth or another jurisdiction; (2)   does not hold a license under this act; (3)   does not hold itself out to the public as providing real estate services or real estate-related services; and (4)   is solely owned by licensees who are all affiliated with the same broker. In case of the death of an owner of a qualified association, ownership may continue through the licensees’ estate for a period not to exceed 18 months. “Real estate.” Any interest or estate in land, whether corporeal, incorporeal, freehold or nonfreehold, whether the land is situated in this Commonwealth or elsewhere including leasehold interests and time share and similarly designated interests. A sale of a mobile home shall be deemed to be a transfer of an interest in real estate if accompanied by the assignment of the lease or sale of the land on which the mobile home is situated. “Real estate service.” An act or acts requiring a real estate license. “Reciprocal license.” A license issued under section 602(a) through (e). “Rental listing referral agent.” Any person who owns or manages a business which collects rental information for the purpose of referring prospective tenants to rental units or locations of such units. The term “rental listing referral agent” shall not include any employee or official of any public housing authority created pursuant to State or Federal law. “Salesperson.” Any person employed by a licensed real estate broker to perform comparative market analyses or to list for sale, sell or offer for sale, to buy or offer to buy or to negotiate the purchase or sale or exchange of real estate or to negotiate a loan on real estate or to lease or rent or offer to lease, rent or place for rent any real estate or collect or offer or attempt to collect rent for the use of real estate for or in behalf of such real estate broker. No person employed by a broker to perform duties other than those activities as defined herein under “broker” shall be required to be licensed as a salesperson.

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BROKERS, AGREEMENTS

Ch. 2

Part IV Ch. 36–40 Insurance Part V Ch. 41–48A Zoning, etc. Part VI Ch. 49–56 Taxation Part VII Ch. 57–63 Litigation Part VIII Ch. 64–67 L/T Part IX Ch. 68–72 Condos, etc. Index

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Part III Ch. 23–35 Mortgages

7

Part II Ch. 15–22 Deeds

§ 202.  State Real Estate Commission (a)   The State Real Estate Commission is hereby created and shall consist of the Commissioner of Professional and Occupational Affairs; the Director of the Bureau of Consumer Protection, or his designee; three members who shall be persons representing the public at large; five other persons, each of whom shall at the time of his appointment be a licensed and qualified real estate broker under the existing law of this Commonwealth, and shall have been engaged in the real estate business in this Commonwealth for a period of not less than ten years immediately prior to his appointment; and one other person who shall have been licensed as a real estate broker, or cemetery broker, for a period of at least five years and shall have been engaged in selling cemetery lots for at least ten years immediately prior to his appointment. Each of said members of the commission shall be appointed by the Governor. (b)  The term of office of each of said members shall be five years from his appointment, or until his successor has been appointed and qualified but not longer than six months beyond the five-year period. In the event that any of said members shall die or resign during his term of office, his successor shall be appointed in the same way and with the same qualifications as above set forth and shall hold office for the unexpired term. (c)  A majority of the members currently serving on the commission shall constitute a quorum. The commission shall elect a chairman, vice-chairman and secretary from among its members. A commission member who fails to attend three consecutive meetings shall forfeit his seat unless the Commissioner of Professional and Occupational Affairs, upon written request from the member, finds that the member should be excused from a meeting because of illness or the death of a family member.

Part I Ch. 1–14 Brokers

“School.” Any person who conducts classes in real estate subjects but is not a college, university or institute of higher learning duly accredited by the Middle States Association of Colleges and Secondary Schools or equivalent accreditation. “Seller agent.” Any licensee who has entered into an agency relationship with a seller of real estate. “Short sale.” A sale of real property in which the seller’s proceeds are less than the amount required to pay off all liens secured by the property. “Standard license.” Any license issued under this act that is not a reciprocal license. “Subagent.” A broker, not in the employ of the listing broker, who is engaged to act for, or cooperate with, the listing broker in selling property as an agent of the seller. A subagent is deemed to have an agency relationship with the seller. “Time share.” The right, however evidenced or documented, to use or occupy one or more units on a periodic basis according to an arrangement allocating use and occupancy rights of that unit or those units between other similar users. As used in this definition, the term “unit” is a building or portion thereof permanently affixed to real property and designated for separate occupancy or a campground or portion thereof designated for separate occupancy. The phrase “time share” does not include campground membership. “Time-share salesperson.” A person who either as an employee or independent contractor sells or offers to sell time shares. Such person shall sell time shares under the active supervision of a broker. A person licensed as a broker or as a salesperson shall not be required to be licensed as a time-share salesperson as a condition for selling or offering to sell time shares. “Transaction licensee.” A licensed broker or salesperson who provides communication or document preparation services or performs acts described under the definition of “broker” or “salesperson” for which a license is required, without being an agent or advocate of the consumer.

Table of Contents

PART I

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§ 301

LICENSING AND REGISTRATION

(d)  Each member of the commission other than the Commissioner of Professional and Occupational Affairs shall receive reimbursement for reasonable expenses in accordance with Commonwealth regulations and per diem compensation at the rate of $60 per day for the time actually devoted to the business of the commission. (e)   In addition to regularly scheduled meetings of the commission, there shall be at least one public meeting each year in Pittsburgh, one public meeting each year in Philadelphia and one public meeting each year in Harrisburg. At least 15 days prior to the holding of any public meeting pursuant to this subsection, the commission shall give public notice of the meeting in a newspaper of general circulation in each of the areas where the public meeting is to be held. The purpose of these special meetings shall be to solicit from members of the public, suggestions, comments and objections about real estate practice in this Commonwealth. § 301.   Unlawful to conduct business without license or registration certificate It shall be unlawful for any person, directly or indirectly, to engage in or conduct, or to advertise or hold himself out as engaging in or conducting the business, or acting in the capacity of a broker or salesperson, cemetery broker, cemetery salesperson, campground membership salesperson, time-share salesperson, builder-owner salesperson, rental listing referral agent or cemetery company within this Commonwealth without first being licensed or registered as provided in this act, unless he is exempted from obtaining a license or registration certificate under the provisions of section 304 § 302.  Civil suits No action or suit shall be instituted, nor recovery be had, in any court of this Commonwealth by any person for compensation for any act done or service rendered, the doing or rendering of which is prohibited under the provisions of this act by a person other than a licensed broker, salesperson, cemetery broker, cemetery salesperson, campground membership salesperson, time-share salesperson, builder-owner salesperson or rental listing referral agent, unless such person was duly licensed and registered hereunder as broker or salesperson at the time of offering to perform any such act or service or procuring any promise or contract for the payment of compensation for any such contemplated act or service. § 303.  Criminal penalties Any person who shall engage in or carry on the business, or act in the capacity of a broker, salesperson, cemetery broker, cemetery salesperson, campground membership salesperson, time-share salesperson, builder-owner salesperson, rental listing referral agent or cemetery company, within this Commonwealth, without a license or registration certificate, or shall carry on or continue business after the suspension or revocation of any such license or registration certificate issued to him, or shall employ any person as a salesperson or cemetery salesperson to whom a license has not been issued, or whose license or registration certificate as such shall have been revoked or suspended, shall be guilty of a summary offense and upon conviction thereof for a first offense shall be sentenced to pay a fine not exceeding $500 or suffer imprisonment, not exceeding three months, or both and for a second or subsequent offense shall be guilty of a felony of the third degree and upon conviction thereof, shall be sentenced to pay a fine of not less than $2,000 but not more than $5,000 or to imprisonment for not less than one year but not more than two years, or both. § 304.  Exclusions Except as otherwise provided in this act, the provisions of this act shall not apply to the following: (1)  An owner of real estate with respect to property owned or leased by such owner. In the case of a partnership or corporation, this exclusion shall not

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BROKERS, AGREEMENTS

Ch. 2

Part V Ch. 41–48A Zoning, etc. Part VI Ch. 49–56 Taxation Part VII Ch. 57–63 Litigation Part VIII Ch. 64–67 L/T Part IX Ch. 68–72 Condos, etc. Index

gtb-parealestate22-all.indb 9

Part IV Ch. 36–40 Insurance

9

Part III Ch. 23–35 Mortgages

1. 63 P.S. § 701 et seq. (repealed; see, now, 63 P.S. § 734.1 et seq.)

Part II Ch. 15–22 Deeds

§ 305.  Civil penalty In addition to any other civil remedy or criminal penalty provided for in this act, the commission, by a vote of the majority of the maximum number of the authorized membership of the commission as provided by law, or by a vote of the majority of the duly qualified and confirmed membership or a minimum of

Part I Ch. 1–14 Brokers

extend to more than five of its partners or officers, respectively, nor to other partnership or corporation personnel or employees. (2)   The employees of a public utility acting in the ordinary course of utilityrelated business under the provisions of Title 66 of the Pennsylvania Consolidated Statutes (relating to public utilities), with respect to negotiating the purchase, sale or lease of property. (3)   The officers or employees of a partnership or corporation whose principal business is the discovery, extraction, distribution or transmission of energy or mineral resources, provided that the purchase, sale or lease of real estate is a common and necessary transaction in the conduct of such principal business. (4)  The services rendered by an attorney-in-fact under an executed and recorded power of attorney from the owner or lessor (provided such power of attorney is not utilized to circumvent the intent of this act) or by an attorney at law. (5)  A person acting as trustee in bankruptcy, administrator, executor, trustee or guardian while acting under a court order or under the authority of a will or of a trust instrument. (6)   The elected officer or director of any banking institution, savings institution, savings bank, credit union or trust company operating under applicable Federal or State laws where only the real estate of the banking institution, savings institution, savings bank, credit union or trust company is involved. (7)  Any officer or employee of a cemetery company who, as incidental to his principal duties and without remuneration therefor, shows lots in such company’s cemetery to persons for their use as a family burial lot and who accepts deposits on such lots for the representatives of the cemetery company legally authorized to sell the same. (8)   Cemetery companies and cemeteries owned or controlled by a bona fide church or religious congregation or fraternal organization or by any association created by a bona fide church or religious organization or by a fraternal organization. (9)   An auctioneer licensed under the act of September 29, 1961 (P.L. 1745, No. 708), known as “The Auctioneers’ License Act,”1 while performing authorized duties at any bona fide auction. (10)  Any person employed by an owner of real estate for the purpose of managing or maintaining multifamily residential property: Provided, however, That such person is not authorized or empowered by such owner to enter into leases on behalf of the owner, to negotiate terms or conditions of occupancy with current or prospective tenants or to hold money belonging to tenants other than on behalf of the owner. So long as the owner retains the authority to make all such decisions, the employees may show apartments and provide information on rental amounts, building rules and regulations and leasing determinations. (11)  The elected officer, director or employee of any banking institution, savings institution, savings bank, credit union or trust company operating under applicable Federal or State laws when acting on behalf of the institution in performing appraisals or other evaluations of real estate in connection with a loan transaction.

Table of Contents

PART I

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§ 401

LICENSING AND REGISTRATION

five members, whichever is greater, may levy a civil penalty of up to $1,000 on any current licensee who violates any provision of this act or on any person who practices real estate without being properly licensed to do so under this act. The commission shall levy this penalty only after affording the accused party the opportunity for a hearing, as provided in Title 2 of the Pennsylvania Consolidated Statutes (relating to administrative law and procedure). § 401.  Duty to issue licenses and registration certificates It shall be the duty of the department to issue licenses and registration certificates to any person who shall comply with the provisions of this act. § 402.  Approval of schools Any school which shall offer or conduct any course or courses of study in real estate shall first obtain approval from, and thereafter abide by the rules and regulations of the commission covering such schools. § 403.  Authority to examine applicants The commission is empowered to prescribe the subjects to be tested. The department shall arrange for the services of professional testing services to write and administer examinations on behalf of the commission in accordance with commission guidance and approval. § 404.  Power to promulgate regulations The commission shall have the power to promulgate rules or regulations in order to administer and effectuate the purposes of this act. All existing rules or regulations shall remain in full force and effect until modified by the commission. § 404a.  Continuing education (a)   The commission shall adopt, promulgate and enforce rules and regulations consistent with the provisions of this act establishing requirements of continuing education to be met by individuals licensed as real estate brokers and real estate salespersons under this act as a condition for renewal of their licenses. The commission may waive all or part of the continuing education requirement for a salesperson or broker who shows evidence, to the commission’s satisfaction, that he was unable to complete the requirement due to illness, emergency or hardship. Such regulations shall include any fees necessary for the commission to carry out its responsibilities under this section. (b)   Beginning with the license period designated by regulation, each person licensed pursuant to this act shall be required to obtain 14 hours of mandatory continuing education during each two-year license period. A licensed broker or salesperson who wishes to activate a license which has been placed on inactive status shall be required to document 14 hours of continuing education. (c)   All courses, materials, locations and instructors shall be approved by the commission. No credit shall be given for any course in office management, except for courses offered to brokers that are intended to promote knowledge of the supervisory duties imposed upon brokers by this act and by the rules and regulations promulgated by the commission having to do with document preparation and retention, recordkeeping, deposit and maintenance of escrow accounts, advertising and solicitation limitations and requirements, conflicts of interest, disclosures to prospective sellers and buyers and the general ethical responsibilities of licensees. (d)   The commission shall initiate the promulgation of regulations to carry out the provisions of this section within six months of the effective date of this section. (e)   The commission shall inform licensees of the continuing education requirement prior to the renewal period when continuing education is required. Each renewal notice thereafter shall include the following additional information:

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Ch. 2

Part IX Ch. 68–72 Condos, etc. Index

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Part VIII Ch. 64–67 L/T

11

Part VII Ch. 57–63 Litigation

2. 71 P.S. § 745.1 et seq.

Part VI Ch. 49–56 Taxation

§ 501.  Reputation; inactive licensee; revoked license (a)   Licenses shall be granted only to and renewed only for persons who bear a good reputation for honesty, trustworthiness, integrity and competence to trans-

Part V Ch. 41–48A Zoning, etc.

§ 408.  Reports to legislative committees (a)   The commission shall submit annually a report to the Professional Licensure Committee of the House of Representatives and to the Consumer Protection and Professional Licensure Committee of the Senate a description of the types of complaints received, status of cases, board action which has been taken and the length of time from the initial complaint to final board resolution. (b)   The commission shall also submit annually to the House of Representatives and the Senate Appropriations Committees, 15 days after the Governor has submitted his budget to the General Assembly, a copy of the budget request for the upcoming fiscal year which the commission previously submitted to the department.

Part IV Ch. 36–40 Insurance

§ 407.  Fees (a)   All fees required under this act shall be fixed by the commission, by regulation and shall be subject to review in accordance with the act of June 25, 1982 (P.L. 633, No. 181), known as the “Regulatory Review Act.”2 If the projected revenues to be generated by fees, fines and civil penalties imposed in accordance with the provisions of this act are not sufficient to match expenditures over a two-year period, the commission shall increase those fees by regulation, subject to review in accordance with the “Regulatory Review Act,” such that the projected revenues will meet or exceed projected expenditures. (b)  If the Bureau of Professional and Occupational Affairs determines that the fees established by the commission are inadequate to meet the minimum enforcement efforts required, then the bureau, after consultation with the commission, shall increase the fees by regulation, subject to review in accordance with the “Regulatory Review Act,” so that adequate revenue is raised to meet the required enforcement effort.

Part III Ch. 23–35 Mortgages

§ 406.  Administration and enforcement The commission shall have the power and its duty shall be to administer and enforce the laws of the Commonwealth relating to: (1)  Those activities involving real estate for which licensing is required under this act and to instruct and require its agents to bring prosecutions for unauthorized and unlawful practice. (2)   Those activities involving cemeteries and cemetery companies for which registration is required under this act and to instruct and require its agents to bring prosecutions for unauthorized or unlawful activities. (3)  Those activities involving campground memberships for which licensing is required under this act and to instruct and require its agents to bring prosecutions for unauthorized or unlawful activities.

Part II Ch. 15–22 Deeds

§ 405.  Repealed. 1984, March 29, P.L. 162, No. 32, § 7, effective in 90 days

Part I Ch. 1–14 Brokers

(1)  That licenses may be placed on inactive status for no more than five years. (2)   That individuals must show evidence of 14 hours of continuing education in order to reactivate a license which has been placed on inactive status. (3)   The procedure and fee required for activating an inactive license. (4)  That a licensee who fails to activate his license after five years must retake the appropriate examination.

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§ 511

LICENSING AND REGISTRATION

act the business of broker, salesperson, cemetery broker, cemetery salesperson, campground membership salesperson, time-share salesperson, builder-owner salesperson or rental listing referral agent, in such manner as to safeguard the interest of the public, and only after satisfactory proof of such qualifications has been presented to the commission as it shall by regulation require. An applicant for renewal of a reciprocal license shall provide evidence that the applicant continues to hold a current license in the state where the applicant’s principal place of business is located. (b)   Any person who remains inactive for a period of five years without renewing his license shall, prior to having a license reissued to him, submit to and pass the examination pertinent to the license for which the person is reapplying. (c)   Unless ordered to do so by Commonwealth Court, the commission shall not reinstate the license, within five years of the date of revocation, of any person whose license has been revoked under this act. Any person whose license has been revoked may reapply for a license at the end of the five-year period but must meet all of the licensing qualifications of this act for the license applied for, to include the examination requirement. § 511.  Qualifications for license The applicant for a broker’s license, shall as a condition precedent to obtaining a license, take the broker’s license examination and score a passing grade. Prior to taking the examination: (1)   The applicant shall be at least 21 years of age. (2)  The applicant shall be a high school graduate or shall produce proof satisfactory to the commission of an education equivalent thereto. (3)   The applicant shall have completed 240 hours in real estate instruction in areas of study prescribed by the rules of the commission, which rules shall require instruction in the areas of fair housing and professional ethics. (4)   The applicant shall have been engaged as a licensed real estate salesperson for at least three years or possess educational or experience qualifications which the commission deems to be the equivalent thereof. § 512.  Application for license (a)   An application for a license as real estate broker shall be made in writing, to the department, upon a form provided for the purpose by the department and shall contain such information as to the applicant as the commission shall require. (b)  The application shall state the place of business for which such license is desired. (c)   The application shall be received by the commission within three years of the date upon which the applicant passed the examination. § 513.  Corporations, partnerships and associations If the applicant for a broker’s license is a corporation, partnership or association, then the provisions of sections 511 and 512 shall apply to the individual designated as broker of record. The employees of said corporation, partnership or association actually engaging in or intending to engage in the real estate business shall meet the provisions of sections 521 and 522. § 521.  Qualifications for license Each applicant shall as a condition precedent to obtaining a license, take the salesperson license examination and score a passing grade. Prior to taking the examination: (1)   The applicant shall be at least 18 years of age. (2)   The following apply:

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Ch. 2

Part V Ch. 41–48A Zoning, etc. Part VI Ch. 49–56 Taxation Part VII Ch. 57–63 Litigation Part VIII Ch. 64–67 L/T Part IX Ch. 68–72 Condos, etc. Index

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Part IV Ch. 36–40 Insurance

13

Part III Ch. 23–35 Mortgages

§ 541.  Qualifications for license The applicant for a cemetery salesperson’s license shall be at least 18 years of age. § 542.  Application for license (a)   An application for a license as a cemetery salesperson shall be made, in writing, to the department, upon a form provided for the purpose by the depart-

Part II Ch. 15–22 Deeds

§ 533.  Corporations, partnerships, associations or other entities If the applicant for a cemetery broker’s license is a corporation, partnership, asso­ ciation, or other entity, foreign or domestic, then the provisions of sections 531 and 532 shall apply to the individual designated as Broker of Record, as well as those members actually engaging in or intending to engage in the real estate business.

Part I Ch. 1–14 Brokers

(i)   Except as provided under subparagraph (ii), the applicant shall have completed 75 hours in real estate instruction in areas of study prescribed by the rules of the commission, which rules shall require instruction in the areas of fair housing and professional ethics. (ii)  An applicant shall be required to complete 60 hours of real estate instruction as prescribed under subparagraph (i) if the applicant has completed a portion of the hours before the effective date of this subparagraph. An applicant who has not completed any of the required hours of real estate instruction before the effective date of this subparagraph shall complete 75 hours of real estate instruction within five years of taking the salesperson license examination. (3)  The applicant shall be a high school graduate or shall produce proof satisfactory to the commission of an education equivalent to high school preparation. This paragraph shall not apply to a person licensed before the effective date of this paragraph. § 522.  Application for license (a)   An application for a license as salesperson shall be made, in writing to the department, upon a form provided for the purpose by the department, and shall contain such information as to the applicant, as the commission shall require. (b)   The applicant shall submit a sworn statement by the broker with whom he desires to be affiliated certifying that the broker will actively supervise and train the applicant. (c)   The application shall be received by the commission within three years of the date upon which the applicant passed the examination. § 531.  Qualifications for license Each applicant for a cemetery broker’s license shall as a condition to obtaining a license take the cemetery broker’s license examination and score a passing grade. Prior to taking the examination: (1)   The applicant shall be at least 21 years of age. (2)  The applicant shall have been engaged full time as a sales person or cemetery salesperson for at least three years or possess educational or experience qualifications which the commission deems to be the equivalent thereof. § 532.  Application for license (a)   An application for a license as a cemetery broker shall be made, in writing, to the department, upon a form provided for the purpose by the department and shall contain such information as to the applicant, as the commission shall require. (b)  The applicant shall have completed 60 hours in real estate instruction in areas of study prescribed by the rules of the commission, which rules shall require instruction in the area of professional ethics. (c)   The application shall be received by the commission within three years of the date upon which the applicant passed the examination.

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PART I

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§ 551

LICENSING AND REGISTRATION

ment, and shall contain such information as to the applicant, as the commission shall require. (b)   The applicant for a license shall submit a sworn affidavit by the broker or cemetery broker with whom he desires to be affiliated certifying that the broker will actively supervise and train the applicant and certifying the truth and accuracy of the certification of the applicant. § 551.  Qualifications for license Each applicant for a builder-owner salesperson’s license, shall as a condition precedent to obtaining a license, take the standard real estate salesperson’s license examination and score a passing grade. Prior to taking the examination: (1)   The applicant shall be 18 years of age. (2)  The applicant shall be employed by a builder-owner possessing those qualifications as contained in section 501. § 552.  Application for license (a)   An application for a license as a builder-owner salesperson shall be made, in writing to the department, upon a form provided for the purpose by the department, and shall contain such information as to the applicant as the commission shall require. (b)  The applicant shall submit a sworn statement by the builder-owner by whom he is employed certifying to such employment. (c)   The application shall be received by the commission within three years of the date upon which the applicant passed the examination. § 561.  Qualifications for license The qualification for licensure as a rental listing referral agent shall be the same as those set forth in sections 521 and 522 except that the applicant need not be affiliated with a broker. § 571.  Application and fee for registration certificate An application for a registration certificate for a cemetery company to operate a cemetery shall be made, in writing to the department, upon a form provided for the purpose by the department, and shall contain such information as to the applicant as the commission shall require. § 581.  Qualifications for license (a)   The applicant for a campground salesperson’s license shall be at least 18 years of age. (b)   The applicant shall have successfully completed 15 hours in the following areas of study: (1)   Basic contract law. (2)   Sales practices and procedures. (3)  Sales ethics. (4)   Basic theory of campground memberships. (c)   The applicant shall undergo not less than 30 days of onsite training at a campground membership facility. § 582.  Application for license (a)  An application for a license as a campground membership salesperson shall be made in writing to the department upon a form provided for the purpose by the department and shall contain such information as to the applicant as the commission shall require. (b)  The applicant for a license shall submit a sworn affidavit by a broker certifying that the broker will actively supervise and train the applicant and certifying the truth and accuracy of the certification of the applicant.

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Ch. 2

Part V Ch. 41–48A Zoning, etc. Part VI Ch. 49–56 Taxation Part VII Ch. 57–63 Litigation Part VIII Ch. 64–67 L/T Part IX Ch. 68–72 Condos, etc. Index

gtb-parealestate22-all.indb 15

Part IV Ch. 36–40 Insurance

15

Part III Ch. 23–35 Mortgages

§ 602.  Reciprocal licenses (a)  Any person who holds a current license to provide real estate services issued by another state and whose principal place of business for the provision of those services is outside of this Commonwealth may be issued a reciprocal

Part II Ch. 15–22 Deeds

§ 601.   Duty of brokers, cemetery brokers and rental listing referral agents to maintain office (a)  Each broker (which term in this section shall include cemetery broker) and rental listing referral agent who holds a standard license shall maintain a fixed office within this Commonwealth. The current license of such a rental listing referral agent or broker and of each licensee employed by such broker or rental listing referral agent shall be prominently displayed in an office of the broker or rental listing referral agent. The address of the office shall be designated on the current license. In case of removal of a broker’s office from the designated location, all licensees registered at that location shall make application to the commission before such removal or within ten days thereafter, designating the new location of the office, and shall pay the required fees, whereupon the commission shall issue a current license at the new location for the unexpired period, if the new location complies with the terms of this act. Each broker who holds a standard license shall maintain a sign on the outside of his office indicating the proper licensed brokerage name. (b)   If the applicant for a standard broker’s license intends to maintain more than one place of business within the Commonwealth, he shall apply for and obtain an additional license in his name at each office. Every such application shall state the location of such office. Each office shall be under the direction and supervision of a manager who is either the broker or an associate broker: Provided, however, That such broker or an associate broker may direct and supervise more than one office.

Part I Ch. 1–14 Brokers

(c)   A license shall be renewed biennially. (d)   The commission shall establish an application fee and a biennial renewal fee by regulation. § 591.  Qualifications for license (a)   The applicant for a time-share salesperson’s license shall be at least 18 years of age. (b)  The applicant shall have successfully completed 30 hours of instruction in the following areas of study: (1)   Basic contract law. (2)   Sales practices and procedures. (3)  Sales ethics. (4)   Basic theory of resort time sharing. (c)   The applicant shall undergo not less than 30 days of onsite training at a time-share facility. § 592.  Application for license (a)   An application for a license as a time-share salesperson shall be made in writing to the department upon a form provided for the purpose by the department and shall contain such information as to the applicant as the commission shall require. (b)   The applicant shall submit a sworn statement by a broker certifying that the broker will actively supervise and train the applicant and certifying the truth and accuracy of the certification of the applicant. (c)   A license shall be renewed biennially. (d)   The commission shall establish an application fee and a biennial renewal fee by regulation.

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§ 602

LICENSING AND REGISTRATION

license under this act in accordance with this section. The reciprocal license shall be the type of license that the commission determines is most similar to the type of license issued by the other state. (b)   Obtaining a reciprocal license shall constitute sufficient contact with this Commonwealth for the exercise of personal jurisdiction by the commission and the courts of this Commonwealth over the licensee in any action or proceeding arising out of acts or omissions by the licensee: (1)   in this Commonwealth; or (2)  relating to an actual or proposed transaction involving real property located in this Commonwealth. (c)   The commission shall issue a reciprocal license upon the filing with the commission of an application and the receipt of: (1)   a duly certified copy of a current license issued to the applicant by the state in which the principal place of business of the applicant is located or a certified statement that the applicant holds a current license in that state, in either case sent to the commission by the appropriate licensing body in that state; (2)   a certified statement sent to the commission by that licensing body as to whether the applicant has been the subject of any disciplinary proceeding and the details of those proceedings; and (3)   a verified statement from the applicant that: (i)   to the knowledge of the applicant, the applicant is not the subject of discipline or a current investigation or proceeding alleging misconduct under a licensing law or criminal law of either this Commonwealth or another jurisdiction; (ii)   the applicant has reviewed and is familiar with this act and the rules and regulations of the commission and that the applicant agrees to be bound by this act and those rules and regulations; and (iii)  the applicant agrees to permit the disclosure to the commission of the record in any disciplinary proceeding involving alleged misconduct by the applicant from any jurisdiction in which the applicant is or has been licensed. (4)   payment of a fee in the same amount as the fee required to be paid in connection with the issuance of a standard license of the same type; and (5)  a consent to service of process in a form prescribed by the rules and regulations of the commission. (d)  This section may be implemented by written reciprocal licensing agreements with the real estate licensing authorities of other states as follows: (1)   The commission may enter into such an agreement whenever the commission in its discretion determines that such an agreement is necessary or desirable to provide residents of this Commonwealth with the opportunity to secure a license in the other state substantially comparable to the opportunity afforded to residents of the other state by this section. (2)  It shall not be necessary for the commission to have entered into an agreement with a particular state in order for the commission to issue a reciprocal license under this section to an applicant from that state, subject to the restrictions in subsection (e). (e)  Whenever the commission determines that another state does not offer reciprocal licensure opportunities to residents of this Commonwealth that are substantially comparable to those afforded to residents of that state by this section, the commission shall require applicants from that state who apply for a reciprocal license to meet education, experience and examination requirements substantially comparable to those required by that state with respect to residents

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Ch. 2

Part VI Ch. 49–56 Taxation Part VII Ch. 57–63 Litigation Part VIII Ch. 64–67 L/T Part IX Ch. 68–72 Condos, etc. Index

gtb-parealestate22-all.indb 17

Part V Ch. 41–48A Zoning, etc.

17

Part IV Ch. 36–40 Insurance

(b)   No campground membership salesperson or time-share salesperson shall be supervised by any other broker than is designated upon the current license issued to such salesperson. Whenever a campground membership salesperson or a time-share salesperson desires to be supervised by a different broker, such licensee and the commission shall follow the procedure specified in subsection (a) for real estate salespersons.

Part III Ch. 23–35 Mortgages

(a)   No associate broker or salesperson (which term in this section shall include cemetery salesperson) shall be employed by any other broker than is designated upon the current license issued to said associate broker or said salesperson. Whenever a licensed salesperson or associate broker desires to change his employment from one licensed broker to another, he shall notify the commission in writing no later than ten days after the intended date of change, pay the required fee, and return his current license. The commission, shall, upon receipt of acknowledgment from the new broker of the change of employment issue a new license. In the interim at such time as the change in affiliation of the salesperson or associate broker occurs, he shall maintain a copy of the notification sent to the commission as his temporary license pending receipt of his new current license. It shall be the duty of the applicant to notify the commission if a new license or other pertinent communication is not received from the commission within 30 days.

Part II Ch. 15–22 Deeds

§ 603.  Employment of associate brokers, salesperson

Part I Ch. 1–14 Brokers

of this Commonwealth who seek reciprocal licensure in that state, except that any requirements imposed under this subsection shall not exceed the requirements for obtaining a license under this act imposed on residents of this Commonwealth. (f)   The commission shall publish annually in the Pennsylvania Bulletin and make available both on request and via the Internet: (1)   a list of those states with which the commission has signed agreements under subsection (d) and a summary of the terms of each agreement; and (2)   a list of those states that the commission has identified under subsection (e) as not offering substantially comparable reciprocal licensure opportunities and a description of the additional requirements the commission has determined are necessary to comply with that subsection. (g)  A person who holds a reciprocal license shall promptly notify the commission if the person’s principal place of business for the provision of real estate services becomes located in this Commonwealth. Upon receipt of the notice by the commission, the person’s reciprocal license shall not be renewed and the person shall be required to obtain a standard license. (h)  A reciprocal licensee shall have the same rights and responsibilities as if the person held a standard license, except that a person holding a reciprocal license: (1)   shall not be eligible to be a member of the commission; (2)  shall be exempt from the requirements of sections 404.1, 501(b), 513 and 533; and (3)   shall be exempt from taking and passing the examination required for standard licenses. (i)   An associate broker, salesperson, campground membership salesperson or time-share salesperson holding a reciprocal license shall not conduct business in this Commonwealth except in affiliation with a broker holding either a standard or a reciprocal license. (j)   If the applicant for a reciprocal broker’s license is a corporation, partnership or association, the applicant must designate in its application a broker of record who is an individual holding a current reciprocal or standard broker’s license.

Table of Contents

PART I

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§ 604

LICENSING AND REGISTRATION

§ 604.  Prohibited acts (a)   The commission may upon its own motion, and shall promptly upon the verified complaint in writing of any person setting forth a complaint under this section, ascertain the facts and, if warranted, hold a hearing for the suspension or revocation of a license or registration certificate or for the imposition of fines not exceeding $1,000, or both. The commission shall have power to refuse a license or registration certificate for cause or to suspend or revoke a license or registration certificate or to levy fines up to $1,000, or both, where the said license has been obtained by false representation, or by fraudulent act or conduct, or where a licensee or registrant, in performing or attempting to perform any of the acts mentioned herein, is found guilty of: (1)   Making any substantial misrepresentation. (2)  Making any false promise of a character likely to influence, persuade or induce any person to enter into any contract or agreement when he could not or did not intend to keep such promise. (3)   Pursuing a continued and flagrant course of misrepresentation or making of false promises through salesperson, associate broker, other persons, or any medium of advertising, or otherwise. (4)   Any misleading or untruthful advertising, or using any other trade name or insignia or membership in any real estate association or organization, of which the licensee is not a member. (5)   Deleted by 2009, July 6, P.L. 58, No. 14, § 2, effective Sept. 4, 2009. (5.1)   Failing to comply with any of the requirements of section 608.5. (6)   Failing to preserve for three years following its consummation records relating to any real estate transaction. (7)   Acting for more than one party in a transaction without the knowledge and consent in writing of all parties for whom he acts. (8)  Placing a “for sale” or “for rent” sign on or advertising any property without the written consent of the owner, or his authorized agent. (9)   Failing to voluntarily furnish a copy of any listing, sale, lease, or other contract relevant to a real estate transaction to all signatories thereof at the time of execution. (10)   Failing to specify a definite termination date that is not subject to prior notice, in any listing contract. (11)   Inducing any party to a contract, sale or lease to break such contract for the purpose of substitution in lieu thereof of a new contract, where such substitution is motivated by the personal gain of the licensee. (12)   Accepting a commission or any valuable consideration by a salesperson or associate broker for the performance of any acts specified in this act, from any person, except the licensed real estate broker with whom he is affiliated. (12.1)  Paying of a commission or any valuable consideration by a broker to anyone other than his licensed employees or another real estate broker for the performance of any acts specified in this act. (13)   Failing to disclose to an owner in writing his intention or true position if he directly or indirectly through a third party, purchased for himself or acquires or intends to acquire any interest in or any option to purchase property which has been listed with his office to sell or lease. (14)   Being convicted in a court of competent jurisdiction in this or any other state, or Federal court, of forgery, embezzlement, obtaining money under false pretenses, bribery, larceny, extortion, conspiracy to defraud, or any similar offense or offenses, or any felony or pleading guilty or nolo contendere to any such offense or offenses.

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BROKERS, AGREEMENTS

Ch. 2

(15.1)   Failing to provide a disclosure required by this act or any other Federal or State law imposing a disclosure obligation on licensees in connection with real estate transactions.

(18)   Soliciting, selling or offering for sale real property by offering free lots, or conducting lotteries or contests or offering prizes for the purpose of influencing by deceptive conduct any purchaser or prospective purchaser of real property. The commission shall promulgate necessary rules and regulations to provide standards for nondeception conduct under this paragraph. (i)   Any offering by mail or by telephone of any prize, gift, award or bonus in relation to the offering of sale of real property, including time sharing, shall be accompanied by a statement of the fair market value, not suggested retail price, of all prizes offered, plus a statement of the odds of receiving any such prize. If the offering is by mail the statement of value and odds shall be printed in a clear and conspicuous manner.

Part IV Ch. 36–40 Insurance

(ii)   If a prize is to be awarded as a rebate, coupon or discount certificate, a statement of that fact shall be included. An offering by mail shall include a statement of any fees and the maximum amount of each which the prizewinner must pay in order to receive the prize. Such fees shall include, but not be limited to, dealer preparation, shipping, handling, redemption and shipping insurance. Each fee associated with a prize and the odds of receiving the prize shall appear in a clear and conspicuous manner on any offering by mail.

Part V Ch. 41–48A Zoning, etc.

(II) Be stated in a clear, coherent and conspicuous manner. (III) For the disclosure regarding the scheduled sales presentation, appear in boldface type.

19

Index

(B) The disclosures shall be provided at least once before the scheduled sales presentation and in a reasonable period of time before the scheduled sales presentation to ensure that the prospective purchaser receives the

Part IX Ch. 68–72 Condos, etc.

(I) Be provided in writing or electronically, not orally.

Part VIII Ch. 64–67 L/T

(v)(A) If a prospective purchaser must attend a time share sales presentation as a condition of the offering, the required disclosures for the offering shall:

Part VII Ch. 57–63 Litigation

(iv)   Substitutions of prizes having equal or greater fair market value may be made if the offeror complies with this paragraph.

Part VI Ch. 49–56 Taxation

(iii)   An offering by mail shall be written in a clear and coherent manner, using common usages of words and terms. A concise description of the real property or interest being promoted shall appear in any offering and shall include a statement that the interest is a time share, where applicable. If the prospective prizewinner must personally visit and inspect the real property or interest being promoted and listen to a sales presentation in order to win a prize, the offering shall include a statement of that fact. An offering may include instructions for a recipient to contact a certain telephone number within a specified time period or by a specified date, if the offeror identifies the business entity and its relationship to the offeror and complies with this paragraph.

gtb-parealestate22-all.indb 19

Part III Ch. 23–35 Mortgages

(17)  Failing, within a reasonable time as defined by the commission, to provide information requested by the commission as the result of a formal or informal complaint to the commission, which would indicate a violation of this act.

Part II Ch. 15–22 Deeds

(16)   In the case of a broker licensee, failing to exercise adequate supervision over the activities of his licensed salespersons or associate brokers within the scope of this act.

Part I Ch. 1–14 Brokers

(15)   Violating any rule or regulation promulgated by the commission in the interest of the public and consistent with the provisions of this act.

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PART I

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§ 604

LICENSING AND REGISTRATION

disclosures before departure to attend the sales presentation. If the initial invitation to the sales presentation is made to a prospective purchaser while the purchaser is on the premises, the disclosures may be provided directly to the prospective purchaser prior to the sales presentation. (C) The required disclosures need not be in every advertisement or other written, oral or electronic communication provided or made to a prospective purchaser before a scheduled sales presentation. (vi) As used in this paragraph, the term “prize” includes, but is not limited to, money, personal property, vacations, travel certificates, motor vehicles and appliances. (19)   Paying or accepting, giving or charging any undisclosed commission, rebate, compensation or profit or expenditures for a principal, or in violation of this act. (20)   Any conduct in a real estate transaction which demonstrates bad faith, dishonesty, untrustworthiness, or incompetency. (21)  Performing any act for which an appropriate real estate license is required and is not currently in effect. (22)   Violating any provision of the act of October 27, 1955 (P.L. 744, No. 222), known as the “Pennsylvania Human Relations Act,”3 or any order or consent decree of the Pennsylvania Human Relations Commission issued pursuant to such act if such order or consent decree resulted from a complaint of discrimination in the area of activities authorized by virtue of this act. (i)   Such activities include but are not limited to: (A)  Accepting listings on the understanding that illegal discrimination in the sale or rental of housing is to be practiced due to race, color, religious creed, sex, ancestry, national origin, physical handicap, disability or use of a guide dog because of blindness of user of a prospective lessee or purchaser. (B)   Giving false information for purposes of discrimination in the rental or sale of housing due to race, color, religious creed, sex, ancestry, national origin, physical handicap, disability or use of a guide dog because of blindness of user of a prospective lessee or purchaser. (C)   Making distinctions in locations of housing or dates of availability of housing for purposes of discrimination in the rental or sale of such housing due to race, color, religious creed, sex, ancestry, national origin, physical handicap, disability or use of a guide dog because of blindness of user of the prospective lessee or purchaser. (ii)   Nothing contained in this paragraph is intended to preclude the State Real Estate Commission from conducting its own investigation and maintaining its own file on any complaint of discrimination. The intent hereunder is to allow the Pennsylvania Human Relations Commission a reasonable period of time to conduct its own investigations, hold hearings, render its decisions and inform the State Real Estate Commission of its findings prior to the State Real Estate Commission taking action against any broker, salesperson or sales associate charged with a violation of this paragraph. (iii)   If in the event the Pennsylvania Human Relations Commission does not act on a discrimination complaint within 90 days after it is filed with the Pennsylvania Human Relations Commission then the State Real Estate Commission may proceed with action against such licensee. (iv)  The 90-day waiting period delaying State Real Estate Commission action against licensee accused of discrimination applies only in initial 3. 43 P.S. § 951 et seq.

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Ch. 2

(23)  In the case of a cemetery company registrant, violating any provisions of Title 9 of the Pennsylvania Consolidated Statutes (relating to burial grounds).

(26)   Violating section 609. (27)   In the case of a broker licensee, failing to exercise adequate supervision over the activities of a campground membership salesperson or a time-share salesperson within the scope of this act.

(31)  Owning an interest in a qualified association that does any of the following: (i)   Participates in any of the prohibited acts under this subsection.

(iii)   Holds itself out to the public as providing real estate services or real estate-related services.

(c)   Notwithstanding any other provision of this act, it is not unlawful for a broker to pay a commission or compensation to a qualified association or for an associate broker or salesperson to receive a commission or compensation for the provision of real estate services or real estate-related services from a qualified association in which the associate broker or salesperson owns an interest.

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Index

4. 63 P.S. § 480.1 et seq.

Part IX Ch. 68–72 Condos, etc.

(b)   All fines and civil penalties imposed in accordance with section 305 and this section shall be paid into the Professional Licensure Augmentation Account.

Part VIII Ch. 64–67 L/T

(ii)   Is not solely owned by licensees who are all affiliated with the same broker.

Part VII Ch. 57–63 Litigation

(30)   Having been disciplined under a real estate licensing law of another jurisdiction, including, but not limited to, having a license suspended or revoked, a fine or penalty imposed or being censured or reprimanded publicly or privately, except that the commission shall not have the authority to levy a fine solely on the basis of this paragraph.

Part VI Ch. 49–56 Taxation

(29)   Violating section 602.

Part V Ch. 41–48A Zoning, etc.

(28)  Failure of a broker, campground membership salesperson or timeshare salesperson to comply with the requirements of paragraph (5), or such alternative requirements established by the rules of the commission, in connection with deposits or other moneys received by the broker, campground membership salesperson or time-share salesperson in conjunction with the sale of a campground membership or a time share.

Part IV Ch. 36–40 Insurance

(25)   Violating section 606 or 607.

Part III Ch. 23–35 Mortgages

(24)   In the case of a cemetery company registrant, violating any provisions of the act of August 14, 1963 (P.L.1059, No.459), entitled “An act prohibiting future need sales of cemetery merchandise and services, funeral merchandise and services, except under certain conditions; requiring the establishment of and deposit into a merchandise trust fund of certain amount of the proceeds of any such sale; providing for the administration of such trust funds and the payment of money therefrom; conferring powers and imposing duties on orphans’ courts, and prescribing penalties.”4

Part II Ch. 15–22 Deeds

(v)   The Pennsylvania Human Relations Commission shall notify the State Real Estate Commission of findings of violations by the Human Relations Commission against licensees under this act concerning the sale, purchase or lease of real estate in violation of the “Pennsylvania Human Relations Act.”

Part I Ch. 1–14 Brokers

complaints against such licensee, second or subsequent complaints may be brought by individuals or the Pennsylvania Human Relations Commission directly to the State Real Estate Commission.

Table of Contents

PART I

12/22/21 10:45 AM

§ 605

LICENSING AND REGISTRATION

§ 605.  Promotional land sales; approval (a)  Any person who proposes to engage in real estate transactions of a promotional nature in this Commonwealth for a property located inside or outside of this Commonwealth, shall first register with the commission for its approval before so doing, and shall comply with such restrictions and conditions pertaining thereto as the commission may impose by rule or regulation. Registration shall not be required for property located within or outside of this Commonwealth which is subject to a statutory exemption under the Federal Interstate Land Sales Full Disclosure Act (Public Law 90-448, 82 Stat. 590, 15 U.S.C. § 1702). (b)   As used in this section the term “promotional real estate” means an interest in property as defined in this act which is a part of a common promotional plan undertaken by a single developer or group of developers acting together to offer interests in real estate for sale or lease through advertising by mail, newspaper or periodical, by radio, television, telephone or other electronic means which is contiguous, known, designated or advertised as a common unit or by a common name: Provided, however, That the term shall not mean real estate interest involving less than 50 lots or shares, cemetery lots and land involving less than 25 acres. (c)  A person may apply to the commission for registration of promotional land sales by filing a statement of record and meeting the requirements of this section. Each registration shall be renewed annually. In lieu of registration or renewal, the commission shall accept registrations, property reports or similar disclosure documents filed in other states or with the Federal Government: Provided, That the commission may suspend or revoke the registration when the Federal Government or a registering state suspends or revokes a regulation. The commission shall, by rule and regulation, cooperate with similar jurisdictions in other states to establish uniform filing procedures and forms, public offering statements and similar forms. The commission shall charge an application fee as determined by regulation to cover costs associated with processing applications for registrations and renewals. (d)   Unless prior approval has been granted by the commission or the promotional plan is currently registered with the Department of Housing and Urban Development pursuant to the Federal Interstate Land Sales Full Disclosure Act or pursuant to State law, the statement of record shall contain the information and be accompanied by documents specified as follows: (1)   The name and address of each person having an interest in the property to be covered by the statement of record and the extent of such interest, except that in the case of a corporation the statement shall list all officers and all holders of 10% or more of the subscribed or issued stock of the corporations. (2)  A legal description of, and a statement of the total area included in the property and a statement of the topography thereof, together with a map showing the division proposed and the dimensions of the property to be covered by the statement of record and their relation to existing streets and roads. (3)  A statement of the condition of the title to the land comprising the property including all encumbrances, mortgages, judgments, liens or unpaid taxes and deed restrictions and covenants applicable thereto. (4)  A statement of the general terms and conditions, including the range of selling prices or rents at which it is proposed to dispense of the property. (5)  A statement of the present condition of access to the property, the existence of any unusual conditions relating to safety which are known to the ­developer, completed improvements including, but not limited to, streets, sidewalks, sewage disposal facilities and other public utilities, the proximity in miles of the subdivision to nearby municipalities and the nature of any

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Ch. 2

(6)   A statement of any encumbrance, a statement of the consequences for the purchaser of a failure by the person or persons bound to fulfill obligations under any instrument or instruments creating such encumbrance and the steps, if any, taken to protect the purchaser in such eventuality.

(10)   Copies of instruments creating easements or other restrictions.

(12)  Such other information and such other documents and certifications as the commission may require as being reasonably necessary or appropriate to assure that prospective purchasers have access to truthful and accurate information concerning the offering.

(e)  If at any time subsequent to the date of filing of a statement of record with the commission, a change shall occur affecting any material facts required to be contained in the statement, the developer shall promptly file an amendment thereto.

Part VI Ch. 49–56 Taxation

(13)   Consent to submit to the jurisdiction of the Commonwealth Court with respect to any action arising under this section.

Part V Ch. 41–48A Zoning, etc.

(11)   Certified financial statements of the developer or an uncertified financial statement if a certified statement is not available as may be required by the commission.

Part IV Ch. 36–40 Insurance

(9)  Copies of all forms of conveyance to be used in selling or leasing lots to purchasers.

Part III Ch. 23–35 Mortgages

(8)   Copies of the deed or other instrument establishing title to the property in the developer or other person and copies of any instrument creating a lien or encumbrance upon the title of the developer or other person or copies of the opinion or opinions of counsel in respect to the title to the subdivision in the developer or other person or copies of the title insurance policy guaranteeing such title.

Part II Ch. 15–22 Deeds

(7)   A copy of the articles of incorporation with all amendments thereto, if the developer is a corporation, copies of all instruments by which a deed of trust is created or declared, if the developer is a trust, copies of articles of partnership or association and all other papers pertaining to its organization if the developer is a partnership, unincorporated association, joint stock company or other form of organization and if the purported holder of legal title is a person other than the developer, copies of the above documents for such person.

Part I Ch. 1–14 Brokers

improvements to be installed by the developer and his estimated schedule for completion.

Table of Contents

PART I

Part VII Ch. 57–63 Litigation

(g)   If it appears to the commission that a statement of record includes any untrue statement of material facts or omits to state any material fact required to be stated therein or necessary to make the statements therein not misleading, the commission may reject such application. The commission shall make an investigation of all consumer complaints concerning real estate promotions in the absence of a reciprocal agreement to handle on-site inspections. Under no circumstances shall a member or an employee of the commission perform an on-site inspection. If the commission determines that a violation of this section has occurred, the commission may:

Part VIII Ch. 64–67 L/T

(1)   suspend or revoke any registration;

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Index

(2)   refer the complaint to the Consumer Protection Bureau of the Office of Attorney General; or

Part IX Ch. 68–72 Condos, etc.

(f)   If it appears to the commission that the statement of record or any amendment thereto, is on its face incomplete or inaccurate in any material respect, the commission shall so advise the developer within a reasonable time after the filing of the statement or amendment. Failure of the developer to provide the information requested by the commission within 90 days shall result in an automatic denial of an application or a suspension of registration.

12/22/21 10:45 AM

§ 606

LICENSING AND REGISTRATION

(3)   seek an injunction or temporary restraining order to prohibit the complained of activity in the Commonwealth Court. (h)   Upon rejection of an application or amendment, the applicant may within 20 days after such notice request a hearing before the commission. Prior to, and in conjunction with such hearing, the commission, or its designee, shall have access to and may demand the production of any books and papers of, and may examine, the developer, any agents or any other person in respect of any matter relevant to the application. If the developer or any agents fail to cooperate or obstruct or refuse to permit the making of an investigation, such conduct shall be grounds for the denial of the application. § 606.  Relationships between brokers and consumers of real estate services A broker may act in a real estate transaction, subject to the provisions of this act, as a seller/landlord agent, buyer/tenant agent, as a dual agent for seller/ landlord and buyer/tenant or as a transaction licensee. Licensees employed by a broker shall bear the same relationship to the consumer as the broker, except that a broker, including one serving as a dual agent, may designate a licensee to act exclusively as agent of a particular seller/landlord and may designate another licensee to act exclusively as agent of a particular buyer/tenant. § 606a.  Duties of licensee generally (a)   Regardless of whether a licensee is acting within the scope of an agency relationship with a consumer, a licensee owes to all consumers to whom the licensee renders real estate services the following duties, which may not be waived: (1)   to exercise reasonable professional skill and care which meets the practice standards required by this act; (2)   to deal honestly and in good faith; (3)   to present all written offers, written notices and other written communications to and from parties to a real estate transaction in a timely manner, except that the duty of a licensee under this paragraph to present written offers may be waived by a seller of a property that is subject to an existing contract for sale if: (i)   the waiver is in writing; and (ii)   the waiver is in the manner prescribed by the commission by ­regulation; (4)   to comply with those obligations imposed upon a licensee by the act of July 2, 1996 (P.L. 500, No. 84),5 known as the “Real Estate Seller Disclosure Act”; (5)   to account in a timely manner for all money and property received from or on behalf of any consumer to a transaction consistent with the provisions of section 608.5; (6)   to provide the consumer with information at the initial interview pursuant to section 608; (7)   to timely disclose to the consumer any conflicts of interest; (8)   to advise the consumer to seek expert advice on matters relating to the transaction that are beyond the licensee’s expertise; (9)   to ensure that all services that are to be provided to the consumer are provided in a reasonable, professional and competent manner in accordance with the practice standards of this act; (10)   to advise the consumer regarding the status of the transaction; 5. 68 P.S. § 1021 et seq.

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Ch. 2

(12)   to present all offers and counter offers in a timely manner, unless a party has directed the licensee otherwise in writing; and

(ii)   Names of the owners of the qualified association.

Part IV Ch. 36–40 Insurance

(i)   Name of the qualified association.

Part III Ch. 23–35 Mortgages

(14)   A licensee must report to the commission within 30 days of forming or joining a qualified association all of the following:

Part II Ch. 15–22 Deeds

(13)   to provide disclosure to the consumer regarding any financial interest, including, but not limited to, a referral fee or commission, which a licensee has in any services to be provided to the consumer by any other person, including, but not limited to, financial services, title transfer and preparation services, insurance, construction, repair or inspection services. The licensee shall also provide disclosure regarding any financial interest which an affiliated licensee may have in any services to be provided to the consumer by any other person. The disclosures required by this paragraph shall be made at the time the licensee first recommends that the consumer purchase a service in which the licensee or an affiliated licensee has a financial interest or when the licensee first learns that the consumer will be purchasing a service in which the licensee or an affiliated licensee has a financial interest.

Part I Ch. 1–14 Brokers

(11)  to advise the consumer of tasks that must be completed to satisfy an agreement or condition for settlement, provide assistance with document preparation and advise the consumer regarding compliance with laws pertaining to real estate transactions;

Table of Contents

PART I

(iii)   The jurisdiction where the qualified association is registered. (v)   Changes in ownership of the qualified association.

(3)   Nothing in this subsection shall require a transaction licensee or subagent who is cooperating with the listing broker to obtain a written agreement from the seller.

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Index

(d)  A broker may compensate another broker who assists in the marketing and sale/lease of a consumer’s property. Payment of compensation alone does not create an agency relationship between the consumer and the other broker.

Part IX Ch. 68–72 Condos, etc.

(c)  A broker may not extend or delegate the broker’s agency relationship with a principal to another broker without the written consent of the principal.

Part VIII Ch. 64–67 L/T

(4)   A subagent or transaction licensee who is cooperating with the listing broker for a fee paid by the listing broker or seller shall provide the buyer, prior to performing any services, with a written disclosure statement signed by the buyer, describing the nature of the services to be performed by the subagent or transaction licensee and containing the information required by section 608. If the buyer refuses to sign the statement, the licensee shall note the refusal on the statement and retain it for six months.

Part VII Ch. 57–63 Litigation

(2)   Notwithstanding paragraph (1), an open listing agreement or a nonexclusive agreement for a licensee to act as a buyer/tenant agent may be oral if the seller or buyer is provided with a written memorandum stating the terms of the agreement.

Part VI Ch. 49–56 Taxation

(b)(1)   A licensee may not perform a service for a consumer of real estate services for a fee, commission or other valuable consideration paid by or on behalf of the consumer unless the nature of the service and the fee to be charged are set forth in a written agreement between the broker and the consumer that is signed by the consumer. This paragraph shall not prohibit a licensee from performing services before such an agreement is signed, but the licensee is not entitled to recover a fee, commission or other valuable consideration in the absence of such a signed agreement.

Part V Ch. 41–48A Zoning, etc.

(iv)   Date the qualified association was registered.

12/22/21 10:45 AM

§ 606b

LICENSING AND REGISTRATION

(e)  The fact that a licensee representing a seller/landlord also presents alternative properties to prospective buyer/tenants does not in itself constitute a breach of a duty or obligation owed by the licensee to the seller/landlord. (f)   The fact that a licensee representing a buyer/tenant also presents alternative properties in which that buyer/tenant is interested to other prospective buyer/tenants does not in itself constitute a breach of a duty or obligation owed by the licensee to that buyer/tenant. (g)   A licensee may not knowingly, during or following the termination of an agency relationship reveal confidential information of the principal, or use confidential information of the principal to the advantage of the licensee or a third party, except when: (1)   disclosure is made with the consent of the principal; (2)  the information is disclosed to another licensee or third party acting solely on the principal’s behalf and not for any other party; (3)   the information is required to be disclosed under subpoena or court order; (4)   it is the intention of the principal to commit a crime and the disclosure of information is believed necessary to prevent the crime; or (5)  the information is used to defend the licensee in a legal proceeding against an accusation of wrongful conduct. (h)  A consumer of real estate services shall not be liable for the acts of a licensee unless the licensee is acting pursuant to the express direction of the consumer or the licensee is acting based upon a representation of the consumer reasonably relied upon by the licensee. A licensee shall not be liable for acts of a consumer of real estate services unless the consumer is acting at the express direction of the licensee or the consumer is acting as a result of a representation by a licensee reasonably relied on by the consumer. (i)   Unless otherwise agreed, a licensee owes no duty to conduct an independent inspection of the property and owes no duty to independently verify the accuracy or completeness of any representation made by a consumer to a transaction reasonably believed by the licensee to be accurate and reliable. (j)   Nothing in this section shall be construed to relieve a licensee of any duty imposed by another provision of this act. § 606b.  Duties of seller’s agent In addition to the duties generally required of a licensee as set forth in section 606.1, the duties of the broker acting as an agent for the seller include the following: (1)  to be loyal to the seller by taking action that is consistent with the seller’s interest in a transaction; and (2)   to make a continuous and good faith effort to find a buyer for the property, except that a seller’s broker is not obligated to seek additional offers to purchase the property while the property is subject to an existing agreement for sale. § 606c.  Duties of buyer’s broker In addition to the duties generally required of a licensee as set forth in section 606.1, the duties of the broker acting as an agent of the buyer include the ­following: (1)  to be loyal to the buyer by taking action that is consistent with the buyer’s interest in a transaction; (2)  to make a continuous and good faith effort to find a property for the buyer, except that a buyer’s broker is not obligated to seek additional properties for purchase while the buyer is subject to an existing contract for sale; and

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12/22/21 10:45 AM

BROKERS, AGREEMENTS

Ch. 2

Part V Ch. 41–48A Zoning, etc. Part VI Ch. 49–56 Taxation Part VII Ch. 57–63 Litigation Part VIII Ch. 64–67 L/T Part IX Ch. 68–72 Condos, etc. Index

gtb-parealestate22-all.indb 27

Part IV Ch. 36–40 Insurance

27

Part III Ch. 23–35 Mortgages

§ 606e.  Duties of designated agent (a)(1)  In an agency relationship with a principal, the broker may, with the written consent of the principal, designate one or more licensees employed by the broker to serve as the designated agent of the principal to the exclusion of all other licensees employed by the same broker. A broker who represents both the seller/landlord and the buyer/tenant in the same transaction is a dual agent. Dual agency is permitted only as provided in section 606.4. (2)  A broker designating licensees to act as designated agents shall take reasonable care to protect any confidential information disclosed by a principal to his or her designated agent. (3)  A broker has the responsibility to direct and supervise the business activities of designated agents and thereby owes duties to both the seller/ landlord and the buyer/tenant as a dual agent. (b)   In addition to the duties generally required of a licensee as set forth in section 606.1, where principals to a transaction are represented by designated agents employed by the same broker, the duties of a designated agent include the following: (1)   to be loyal to the principal with whom the agent is working by taking action that is consistent with that principal’s interest in the transaction; (2)   to make a continuous and good faith effort to find a buyer for a principal who is a seller, or to find a property for a principal who is a buyer. A designated agent is not, however, obligated to seek additional offers for a seller principal while the property is subject to an existing contract for sale or, with regard to a principal buyer, to seek additional properties to purchase while the buyer is a party to an existing contract for purchase; and (3)  to disclose to the principal, prior to writing or presenting an offer to purchase, that the other party to the transaction is also represented by a li-

Part II Ch. 15–22 Deeds

§ 606d.  Duties of dual agent (a)   A licensee may act as a dual agent only with the written consent of both parties to the transaction following the disclosures given at the initial interview required by section 608. The consent must include a statement of the terms of compensation. (b)   In addition to the duties generally required of a licensee as set forth in section 606.1, the duties of a dual agent include the following: (1)   to take no action that is adverse or detrimental to either party’s interest in a transaction; (2)   unless otherwise agreed to in writing, to make a continuous and good faith effort to find a buyer for the property, except that a dual agent is not obligated to seek additional offers to purchase the property while it is subject to an existing contract for sale; and (3)   unless otherwise agreed to in writing, to make a continuous and good faith effort to find a property for the buyer, except that a dual agent is not obligated to seek additional properties to purchase while the buyer is a party to an existing contract to purchase. (c)   A dual agent may show alternative properties not owned by the seller to prospective buyers and may list competing properties for sale without breaching any duty to the seller. A dual agent may show properties in which the buyer is interested to other prospective buyers without breaching any duty to the buyer.

Part I Ch. 1–14 Brokers

(3)   to disclose to the listing broker, at first contact, that the broker has been engaged as a buyer’s agent. In the absence of a listing broker, this disclosure shall be made to the seller.

Table of Contents

PART I

12/22/21 10:45 AM

§ 606f

LICENSING AND REGISTRATION

censee employed with the same broker. The disclosure shall confirm that the broker is a dual agent in the transaction. § 606f.  Duties of transaction licensee In addition to the duties generally required of a licensee as set forth in section 606.1, the duties of a transaction licensee include the following: (1)   to advise the consumer to be assisted that the licensee is not acting as an agent or advocate of the consumer and should not be provided with confidential information; and (2)   to provide limited confidentiality. A licensee shall not disclose information that the seller will accept a price less than the asking price or listed price, that the buyer will pay a price greater than the price submitted in a written offer or that a seller or buyer will agree to financing terms other than those offered. § 607.  Deleted. 1998, Nov. 25, P.L. 908, No. 112, § 6, effective in one year § 608.  Information to be given at initial interview (a)   Except as set forth in subsections (b), (c), (d), (e) and (f), the commission shall establish rules or regulations which shall set forth the manner and method of disclosure of information to the prospective buyer/tenant or seller/landlord during the initial interview. For the purposes of this section, the initial interview is the first contact between a licensee and a consumer of real estate-related services where a substantive discussion about real estate needs occurs. Such disclosure shall be provided on a form adopted by the commission by regulation and shall include, but shall not be limited to: (1)   A disclosure of the relationships in which the broker may engage with the consumer. The disclosure shall describe the duties that the broker owes in each relationship provided for in this act. (2)  A statement informing sellers and buyers of their option to have an agency relationship with a broker, that an agency relationship is not to be presumed and that it will exist only as set forth in a written agreement between the broker and consumer of real estate service acknowledged by the consumer. (3)  A statement that a real estate consumer has the right to enter into a negotiated agreement with the broker limiting the activities or practices that the broker will provide for on behalf of the consumer and that the fee and services to be provided are to be determined by negotiations between the consumer and the broker. (4)  A statement identifying any possibility that the broker may provide services to another consumer who may be party to the transaction and, if so, an explanation of the duties the broker may owe the other party and whether the broker may accept a fee for those services. (5)   A statement identifying any possibility that the broker may designate one or more licensees affiliated with the broker to represent the separate interest of the parties to the transaction. (6)  A statement of the broker’s policies regarding cooperation with other brokers, including the sharing of fees. (7)   A statement that a buyer’s broker may be paid a fee that is a percentage of the purchase price and the buyer’s broker, even if compensated by the listing broker, will represent the interests of the buyer. (8)   A statement that the duration of the broker’s employment and the broker’s fees are negotiable. (9)   The purpose of the Real Estate Recovery Fund and the telephone number of the commission at which further information about the fund may be obtained. (10)   A statement that the duration of the listing agreement or contract and the broker’s commission are negotiable.

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BROKERS, AGREEMENTS

Ch. 2

(b)   The following apply to leases:

(i)   the actual owner/landlord of the real property, including the owner of an equity interest in an actual owner/landlord of the real property; (iii)   leasing the real property pursuant to a property management agreement or an exclusive leasing agreement with the owner/landlord of the real property.

Part VII Ch. 57–63 Litigation Part VIII Ch. 64–67 L/T Part IX Ch. 68–72 Condos, etc. Index

gtb-parealestate22-all.indb 29

Part VI Ch. 49–56 Taxation

29

Part V Ch. 41–48A Zoning, etc.

CONSUMER NOTICE THIS IS NOT A CONTRACT (licensee) _______________________________ hereby states that with respect to this property, (describe property) ___________________________________________, I am acting in the following capacity: (check one) (i)   owner/landlord of the property; (ii)   a direct employee of the owner/landlord; or (iii)   an agent of the owner/landlord pursuant to a property management or exclusive leasing agreement. I acknowledge that I have received this notice: (consumer) _____________________________________________ (date) __________ I certify that I have provided this notice: (licensee) _______________________________________________ (date) __________ (3)   The licensee shall provide a copy of the written statement under paragraph (2) to the prospective tenant and shall retain a copy signed by the prospective tenant and the licensee for six months. If the prospective tenant refuses to sign the statement, the licensee shall note the refusal on the form and retain it for six months. (c)   If an initial interview with a consumer in a situation which is not covered by subsection (b) or (e) does not occur in person, the licensee shall orally advise the consumer of the various business relationships that the licensee may have with the consumer and provide an oral disclosure to the consumer as follows: The Real Estate Law requires that I provide you with a written consumer notice that describes the various business relationship choices that you may have with a real estate licensee. Since we are discussing real estate without you having the benefit of the consumer notice, I have the duty to advise you that any information you give me at this time is not considered to be confidential, and any information you give me will not be considered confidential unless and until you and I enter into a business relationship. At our first meeting I will provide you

Part IV Ch. 36–40 Insurance

(2)   In cases under paragraph (1), the licensee shall provide to the prospective tenant a written statement indicating the capacity in which the licensee is acting. The written statement shall be provided at the time of the initial interview unless a rental application is required by the licensee, in which case the written statement shall be provided at the time the rental application is taken. The written statement shall be provided at the beginning of the rental application and shall be in the following form:

Part III Ch. 23–35 Mortgages

(ii)   the direct employee of the owner/landlord of the real property; or

Part II Ch. 15–22 Deeds

(1)  Subsection (a) shall not apply and disclosure shall be in accordance with paragraph (2) if the licensee is providing information on a property or otherwise dealing with a prospective tenant for the purpose of rental only and if the licensee is:

Part I Ch. 1–14 Brokers

(11)   A statement that any sales agreement must contain the zoning classification of a property except in cases where the property (or each parcel thereof, if subdividable) is zoned solely or primarily to permit single-family dwellings.

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PART I

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§ 608a

LICENSING AND REGISTRATION

with a written consumer notice which explains those business relationships and my corresponding duties to you. (d)  If an oral disclosure is given as provided in subsection (c), the written disclosure form required by subsection (a) shall be provided to the consumer not later than the earlier of: (1)  the first meeting that the licensee has in person with the consumer after the initial interview; or (2)  the time a property is first shown to the consumer by the licensee or any person working with the licensee. (e)   The following apply to time-share estates: (1)   Subsection (a) shall not apply and disclosure shall be in accordance with paragraph (2) if the licensee is showing a time-share estate as defined in 68 Pa.C.S. § 3403(a) (relating to public offering statement; time-share estates). (2)   In cases under paragraph (1), the licensee shall provide the consumer with a written statement indicating the capacity in which the licensee is acting. The statement shall be provided at the time of the initial interview and shall be in the following form: CONSUMER NOTICE THIS IS NOT A CONTRACT (licensee) _______________________________ hereby states that with respect to this property, (describe property) __________________________________________, I am acting in the following capacity: (check one)(i) owner of the property; (ii) a direct employee of the owner; or (iii) an agent of the owner pursuant to a property management or exclusive leasing or selling agreement. I acknowledge that I have received this notice: (consumer) _____________________________________________ (date) __________ I certify that I have provided this notice: (licensee) _______________________________________________ (date) __________ (3)  The licensee shall provide a copy of the statement under paragraph (2) to the consumer and shall retain a copy signed by the consumer and the licensee for six months. If the prospective tenant refuses to sign the statement, the licensee shall note the refusal on the form and retain it for six months. (f)  The disclosures required under subsections (a), (b) and (c) do not apply in commercial property sale or lease transactions unless the prospective buyer/ tenant or seller/landlord is an individual. § 608a.  Written agreement with broker An agreement between a broker and a principal, or any agreement between a broker and a consumer whereby the consumer is or may be committed to pay a fee, commission or other valuable consideration, that is required to be in writing by section 606.1, shall be signed by the consumer and shall identify the services to be provided and the fee to be paid, if any. The agreement shall also contain the following information which shall be disclosed in the manner and method the commission shall establish by regulation: (1)   A statement that the broker’s fee and the duration of the contract have been determined as a result of negotiations between the broker and the seller/ landlord or buyer/tenant. (2)   A statement describing the nature and extent of the broker’s services to be provided to the seller/landlord or buyer/tenant and the fees that will be charged.

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Ch. 2

(7)   A statement regarding any possible conflicts of interest and informing the consumer of the licensee’s continuing duty to timely disclose any conflicts of interest.

(4)  A statement that access to a public road may require issuance of a highway occupancy permit from the Department of Transportation.

This analysis has not been performed in accordance with the Uniform Standards of Professional Appraisal Practice which require valuers to act as unbiased, disinterested third parties with impartiality, objectivity and independence and without accommodation of personal interest. It is not to be construed as an appraisal and may not be used as such for any purpose.

gtb-parealestate22-all.indb 31

Index

31

Part IX Ch. 68–72 Condos, etc.

§ 608c.  Comparative market analysis disclosure (a)  A comparative market analysis must contain the following statement printed conspicuously and without change on the first page:

Part VIII Ch. 64–67 L/T

(3)   A statement of the zoning classification of the property, except in cases where the property or each parcel of the property, if subdividable, is zoned solely or primarily to permit single-family dwellings. Failure to comply with this requirement shall render the sales agreement or sales contract voidable at the option of the buyer, and if voided, any deposits tendered by the buyer shall be returned to the buyer without a requirement for court action.

Part VII Ch. 57–63 Litigation

(2)   A statement describing the purpose of the Real Estate Recovery Fund established under section 801 and the telephone number of the commission at which the parties to the transaction can receive further information about the fund.

Part VI Ch. 49–56 Taxation

(1)  A statement identifying the capacity in which the broker is engaged in the transaction and whether the broker, or any licensee affiliated with the broker, has provided services relating to the subject transaction to any other party to the transaction.

Part V Ch. 41–48A Zoning, etc.

§ 608b.  Mandatory provisions of sales contract In a sales agreement or sales contract, a broker shall disclose the following information which shall be disclosed in the manner and method the commission shall establish by regulation:

Part IV Ch. 36–40 Insurance

(6)   A statement describing the purpose of the Real Estate Recovery Fund established under section 801 and the telephone number of the commission at which the seller can receive further information about the fund.

Part III Ch. 23–35 Mortgages

(5)   In an agreement between a broker and a buyer, a statement identifying any possibility that the broker’s compensation may be based upon a percentage of the purchase price, a disclosure of the broker’s policies regarding cooperation with listing brokers willing to pay buyer’s brokers, a disclosure that the broker, even if compensated by the listing broker or seller, will represent the interests of the buyer and disclosure of any potential for the buyer broker to act as a disclosed dual agent.

Part II Ch. 15–22 Deeds

(4)   In an agreement between a broker and seller, a statement of the broker’s policies regarding cooperation with subagents and buyer agents, a disclosure that a buyer agent, even if compensated by the broker or seller will represent the interests of the buyer and a disclosure of any potential for the broker to act as a disclosed dual agent.

Part I Ch. 1–14 Brokers

(3)   A statement identifying any possibility that the broker, or any licensee employed by the broker, may provide services to more than one consumer in a single transaction and if so, an explanation of the duties that may be owed the other party and whether the broker may accept a fee for those services.

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PART I

12/22/21 10:45 AM

§ 608d

LICENSING AND REGISTRATION

(b)   A comparative market analysis prepared in accordance with this act shall not be deemed to be an appraisal within the scope of the act of July 10, 1990 (P.L. 404, No. 98),6 known as the “Real Estate Appraisers Certification Act.” (c)   Any fees charged for a comparative market analysis shall be paid to the broker. § 608d.  Cemetery broker’s disclosure In any sales agreement or sales contract, a cemetery broker shall be subject to the requirements of section 608.2(2) as it relates to the Real Estate Recovery Fund and the disclosure of information. § 608e.   Handling of deposits and other escrows (a)  All deposits or other escrows accepted by a broker must be retained by the broker pending: (1)   consummation of the transaction involved; (2)  termination prior to consummation of the transaction involved where there is either: (i)   no dispute as to entitlement to the deposit or other escrows; or (ii)  a prior agreement in writing or electronic form as to disposition of the deposit or other escrows in the event of a dispute regarding entitlement to the deposit or other escrows; (3)   receipt by the broker of instructions in writing or electronic form, signed by all of the parties to the transaction at any time after the broker’s receipt of the deposit or other escrows, directing the broker to release some or all of the deposit or other escrows; or (4)   an order of a court of competent jurisdiction specifying disposition of the deposit or other escrows becoming final and not subject to appeal. (b)  Deposits and other escrows must be accounted for in the full amount thereof at the time of consummation, termination or release as provided in subsection (a). If less than the full amount held pursuant to subsection (a) is released, notice must be given in writing or electronic form to all the parties to the transaction of the amounts released, the persons to whom distribution is made and the amounts that continue to be held pursuant to subsection (a). (c)   Every associate broker or salesperson shall, promptly following receipt of a deposit or other escrow, pay over the funds to the broker employing the associate broker or salesperson. (d)  A broker shall not commingle deposits or other escrows or property of another person with the broker’s own funds or property. (e)   A broker must deposit moneys and property of whatever kind or nature, belonging to others, in a separate custodial or trust fund account maintained by the broker with a bank or recognized depository by the end of the business day following their receipt by the broker. The moneys and property must be held by the broker until they are paid or released as provided in subsection (a), at which time the broker shall account for the full amount received. Under no circumstances shall a broker permit any advance payment of funds belonging to others to be deposited in the broker’s business or personal account or to be commingled with any funds the broker may have on deposit. (f)   If a deposit in connection with an offer to buy or lease real estate is in the form of a check and the buyer and seller or lessee and lessor consent in writing or electronic form, the broker may hold the check and not deposit it as otherwise required by this section pending acceptance of the offer. If the offer is not accepted, the broker shall promptly return the check uncashed to the buyer or lessee. If the offer is accepted, the broker shall deposit the check into a custodial 6. 63 P.S. § 457.1 et seq.

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Ch. 2

(i)   A broker must deposit rents received into a rental management account that is separate from the broker’s escrow account and general business accounts.

(k)   This section does not preclude the parties to a transaction from agreeing in writing or electronic form to have deposits or other escrows held by a person other than the brokers who represent the parties. This subsection shall not be construed to allow an associate broker, salesperson or qualified association to hold deposits or other escrows.

(b)  A broker price opinion prepared in accordance with this act shall:

(2)  Be deemed to be a comparative market analysis for the purposes of the “Appraisal Management Company Registration Act.”

(1)  An identification of the intended users and intended uses of the broker price opinion, if known.

(3)  The basis for the conclusion as to the price, including applicable market data or capitalization computation. (4)  Any assumption or limiting condition.

33

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Index

7. 63 P.S. § 457.1 et seq. 8. 63 P.S. § 457.28.

Part IX Ch. 68–72 Condos, etc.

(2)  A brief description of the subject property and the property interest to be priced.

Part VIII Ch. 64–67 L/T

(c)  A broker price opinion must be signed manually or electronically by the person who prepared it and must contain all of the following information:

Part VII Ch. 57–63 Litigation

(1)  Not be deemed to be an appraisal within the scope of the act of July 10, 1990 (P.L. 404, No. 98),7 known as the “Real Estate Appraisers Certification Act,” or a valuation of real estate for purposes of section 8(b)(1) of the act of February 2, 2012 (P.L. 30, No. 4),8 known as the “Appraisal Management Company Registration Act.”

Part VI Ch. 49–56 Taxation

This analysis has not been prepared in accordance with the Uniform Standards of Professional Appraisal Practice which require valuers to act as unbiased, disinterested third parties with impartiality, objectivity and independence and without accommodation of personal interest. It is not to be construed as an appraisal and may not be used as such for any purpose.

Part V Ch. 41–48A Zoning, etc.

§ 608f.   Broker price opinion (a)  A broker price opinion must contain the following statement displayed conspicuously and without change:

Part IV Ch. 36–40 Insurance

(j)   A broker is permitted to deposit moneys into an escrow account to cover service charges to the account assessed by the banking institution.

Part III Ch. 23–35 Mortgages

(h)   A broker is not required to hold in escrow rents that the broker receives for property management for a lessor.

Part II Ch. 15–22 Deeds

(g)   A broker must keep records of all funds deposited in a custodial or trust fund account, which records indicate clearly the date and from whom the broker received the funds, the date deposited, the dates of withdrawals and other pertinent information concerning the transaction, and must show clearly for whose account the money is deposited and to whom the money belongs. All such records and funds shall be subject to inspection by the commission and must be available to the commission or its representatives immediately after proper demand or after notice in writing or electronic form given to the broker or depository. Each separate custodial or trust fund account must designate the broker as trustee and the account must provide for withdrawal of funds without previous notice.

Part I Ch. 1–14 Brokers

or trust fund account by the close of business on the business day following acceptance of the offer.

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PART I

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§ 608f

LICENSING AND REGISTRATION

(5)   Any existing or contemplated interest of the licensee who prepared the broker price opinion. (6)  The effective date of the broker price opinion and the date that the document is signed. (7)   The real estate license number of the preparer. (d)   Any fees charged for a broker price opinion shall be paid to the broker. (e)   A broker price opinion may be prepared by a broker, associate broker or salesperson only for use in conjunction with: (1)   a property owned by a lender after an unsuccessful sale at a foreclosure auction; (2)   a modification of a first or junior mortgage or equity line of credit; (3)   a short sale of a property; or (4)   an evaluation or monitoring of a portfolio of properties. (f)   A broker price opinion may not be prepared by a broker, associate broker or salesperson for use: (1)  as the basis to determine the value of a parcel of real property for a mortgage loan origination, including a first or junior mortgage, refinancing or equity line of credit; or (2)   in connection with: (i)   an eminent domain proceeding; (ii)   a Federal, State or local tax appeal; (iii)   a bankruptcy or insolvency proceeding; (iv)  an action or proceeding involving divorce or equitable distribution of property; (v)   any other action or proceeding before a court of record; or (vi)   the distribution of a decedent’s estate. (g)   The provisions of this section shall not preclude the preparation of a broker price opinion to be used in conjunction with or in addition to an appraisal. (h)  A registered appraisal management company may recruit, engage and negotiate fees with a broker to prepare broker price opinions and may receive orders for and submit broker price opinions to clients. (i)   A broker, associate broker or salesperson may not prepare a broker price opinion, and a broker or associate broker may not sign a broker price opinion under subsection (j), unless the broker, associate broker or salesperson: (1)   has satisfied the requirements prescribed by the rules of the commission to obtain education in the preparation of broker price opinions; and (2)   has completed at least three hours of continuing education during the current or immediately preceding two-year license period in broker price opinion topics prescribed by the rules of the commission. (j)  In addition to the requirements under subsection (i), a salesperson may not prepare a broker price opinion unless the salesperson has held an active license for the three years immediately preceding the effective date of the broker price opinion. A broker price opinion prepared by a salesperson must be signed by the broker or an associate broker designated by the broker in addition to the salesperson. (k)   In order to facilitate the prompt implementation of this section, regulations promulgated by the commission shall be deemed temporary regulations which shall expire no later than three years following the effective date of this section. The commission may promulgate temporary regulations which shall not be subject to:

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Part VII Ch. 57–63 Litigation Part VIII Ch. 64–67 L/T Part IX Ch. 68–72 Condos, etc. Index

gtb-parealestate22-all.indb 35

Part VI Ch. 49–56 Taxation

35

Part V Ch. 41–48A Zoning, etc.

9. 45 P.S. §§ 1201, 1202 and 1203. 10. 71 P.S. § 745.1 et seq. 11. 73 P.S. § 201-1 et seq.

Part IV Ch. 36–40 Insurance

This clause is to be separately initialed by the purchaser. Copies of all documents which place an obligation upon a purchaser shall be given to the purchaser upon execution by the purchaser. (c)  Notice of cancellation shall be given by certified return receipt mail or by any other bona fide means of delivery, provided that the purchaser obtains a receipt. A notice of cancellation given by a bona fide means of delivery shall be effective on the date postmarked or on the date of deposit of the notice with any bona fide means of delivery. (d)   Within ten business days after the receipt of a notice of cancellation, all payments made under the purchase contract shall be refunded to the purchaser and an acknowledgment that the contract is void shall be sent to the purchaser. In the event of a cancellation pursuant to this section, any promotional prizes, gifts and premiums issued to the purchaser by the seller shall remain the property of the purchaser. (e)   The right of cancellation shall not be waivable by any purchaser. (f)   A purchaser who exercises the right of cancellation shall not be liable for any damages as a result of the exercise of that right. (g)   In addition to constituting a violation of this act, a violation of this section by any individual, corporation, partnership, association or other entity shall also be deemed a violation of the act of December 17, 1968 (P.L. 1224, No. 387), known as the “Unfair Trade Practices and Consumer Protection Law.”11 The Attorney General is authorized to enforce this section. Any actions brought by the Attorney General to enforce this section shall be in addition to any actions which the commission may bring under this act. (h)   The right of the purchaser to bring an action to enforce this section shall be independent of any rights of action which this section confers on the Attorney General and the commission.

Part III Ch. 23–35 Mortgages

“You, the purchaser, may cancel this purchase at any time prior to midnight of the fifth day following the date of this transaction. If you desire to cancel, you are required to notify the seller, in writing, at (address). Such notice shall be given by certified return receipt mail or by any other bona fide means of delivery which provides you with a receipt. Such notice shall be effective upon being postmarked by the United States Postal Service or upon deposit of the notice with any bona fide means of delivery which provides you with a receipt.”

Part II Ch. 15–22 Deeds

§ 609.   Right to cancel purchase of time share and campground membership (a)   A purchaser shall have the right to cancel the purchase of a time share or a campground membership until midnight of the fifth day following the date on which the purchaser executed the purchase contract. (b)   The right of cancellation shall be set forth conspicuously in boldface type of at least ten point in size immediately above the signature of the purchaser on the purchase contract in substantially the following form:

Part I Ch. 1–14 Brokers

(1)  Sections 201, 202 and 203 of the act of July 31, 1968 (P.L. 769, No. 240),9 referred to as the “Commonwealth Documents Law.” (2)   The act of June 25, 1982 (P.L. 633, No. 181),10 known as the “Regulatory Review Act.” (l)   The authority provided to the commission to adopt temporary regulations under subsection (k) shall expire three years from the effective date of this section. Regulations adopted after that date shall be promulgated as provided by law.

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PART I

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§ 701

LICENSING AND REGISTRATION

(i)  Nothing in this act shall affect any rights conferred upon the purchaser by 68 Pa.C.S. Pt. II Subpt. B (relating to condominiums). (j)   This act shall be applicable to time shares and campground memberships which are located within this Commonwealth and to time shares and campground memberships which are located outside this Commonwealth but for which the purchase contract was executed by the purchaser within this Commonwealth. § 701.  Hearings held by commission (a)   The said hearings may be held by the commission or any members thereof, or by any of its duly authorized representatives, or by any other person duly authorized by the commission for such purpose in any particular case. (b)  The commission may adopt the findings in the report or may, with or without additional testimony, either return the matter to the representative for such further consideration as the commission deems necessary or make additional or other findings of fact on the basis of all the legally probative evidence of the record and enter its conclusions of law and order in accordance with the requirements for the issuance of an adjudication under Title 2 of the Pennsylvania Consolidated Statutes (relating to administrative law and procedure). (c)   Proceedings before the commission shall be conducted in accordance with Title 1, Part 2 of the Pennsylvania Code. § 702.  Imputed knowledge, limitations (a)   No violation of any of the provisions of this act on the part of any salesperson, associate broker, or other employee of any licensed broker, shall be grounds for the revocation or suspension of the license of the employer of such salesperson, associate broker, or employee, unless it shall appear upon the hearings held, that such employer had actual knowledge of such violation. (b)   No violation of any of the provisions of this act on the part of any cemetery broker or cemetery salesperson or other employee of any registered cemetery company, shall be grounds for the revocation or suspension of the registration certificate of the cemetery company, unless it shall appear that such cemetery company had actual knowledge of such violation. (c)   A course of dealing shown to have been followed by such employee shall constitute prima facie evidence of such knowledge upon the part of his employer. (d)   No violation of any of the provisions of this act on the part of any campground membership salesperson or time-share salesperson shall be grounds for the revocation or suspension of the license of the broker responsible for supervising such salesperson unless it shall appear upon the hearings held that such broker had actual knowledge of such violation. A course of dealing shown to have been followed by such salesperson shall constitute prima facie evidence of such knowledge upon the part of such broker. § 801.  Establishment of the fund (a)   There is hereby established the Real Estate Recovery Fund for the purposes hereinafter set forth in this act. (b)   The Real Estate Recovery Fund shall not apply to the following: (1)   The sale of, or the offer to sell, a campground membership or to a campground membership salesperson. (2)   The preparation or issuance of a broker price opinion. § 802.  Funding of the fund Each licensee entitled to renew his license on or after February 28, 1980, shall, when so renewing his license pay in addition to the applicable license fee a further fee of $10, which shall be paid and credited to the Real Estate Recovery Fund, thereafter any person upon receiving his initial real estate license or cemetery company registration certificate, shall, in addition to all fees, pay into the Real

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Ch. 2

(3)   That all reasonable personal acts, rights of discovery and such other remedies at law and in equity as exist have been exhausted in the collection thereof.

(c)   The commission shall have the right to answer actions provided for under this section, and subject to court approval, it may compromise a claim based upon the application of the aggrieved party.

Index

gtb-parealestate22-all.indb 37

Part IX Ch. 68–72 Condos, etc.

37

Part VIII Ch. 64–67 L/T

(e)   Upon petition of the commission the court may require all claimants and prospective claimants against one licensee or registrant to be joined in one action, to the end that the respective rights of all such claimants to the Real Estate Recovery Fund may be equitably adjudicated and settled.

Part VII Ch. 57–63 Litigation

(d)  When there is an order of the court to make payment or a claim is otherwise to be levied against the fund, such amount shall be paid to the claimant in accordance with the limitations contained in this section. Notwithstanding any other provisions of this section, the liability of that portion of the fund allocated for the purpose of this act shall not exceed $20,000 for any one claim and shall not exceed $100,000 per licensee. If the $100,000 liability of the Real Estate Recovery Fund as provided herein is insufficient to pay in full claims adjudicated valid of all aggrieved persons against any one licensee or registrant, such $100,000 shall be distributed among them in such ratio that the respective claims of the aggrieved applicants bear to the aggregate of such claims held valid. If, at any time, the money deposited in the Real Estate Recovery Fund is insufficient to satisfy any duly authorized claim or portion thereof, the commission shall, when sufficient money has been deposited in the fund, satisfy such unpaid claims or portions thereof, in the order that such claims or portions thereof were originally filed, plus accumulated interest at the rate of 6% a year.

Part VI Ch. 49–56 Taxation

(4)  That he is making said application no more than one year after the termination of the proceedings, including reviews and appeals in connection with the judgment.

Part V Ch. 41–48A Zoning, etc.

(2)   That he has obtained a final judgment as set out in this section.

Part IV Ch. 36–40 Insurance

(1)  That he is not a spouse of the debtor, or the personal representative of said spouse.

Part III Ch. 23–35 Mortgages

(b)   The aggrieved person shall be required to show:

Part II Ch. 15–22 Deeds

§ 803.  Application for recovery from fund (a)   When any aggrieved person obtains a final judgment in any court of competent jurisdiction against any person licensed under this act, upon grounds of fraud, misrepresentation or deceit with reference to any transaction for which a license or registration certificate is required under this act (including with respect to cemetery companies any violation of 9 Pa.C.S. § 308(b) (relating to accounts of qualified trustee)) and which cause of action occurred on or after the effective date of this act, the aggrieved person may, upon termination of all proceedings, including reviews and appeals, file an application in the court in which the judgment was entered for an order directing payment out of the Real Estate Recovery Fund of the amount unpaid upon the judgment.

Part I Ch. 1–14 Brokers

Estate Recovery Fund a sum of $10. If at the commencement of any biennial renewal period beginning in 1982 and thereafter, the balance of the fund is less than $300,000, the commission may assess an additional fee, in addition to the renewal fee, against each licensee and registrant in an amount not to exceed $10 which will yield revenues sufficient to bring the balance of the fund to $500,000. All said fees shall be paid into the State Treasury and credited to the Real Estate Recovery Fund, and said deposits shall be allocated solely for the purposes of the fund as provided in this act. The fund shall be invested and interest/dividends shall accrue to the fund.

Table of Contents

PART I

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§ 901

LICENSING AND REGISTRATION

(f)  Should the commission pay from the Real Estate Recovery Fund any amount in settlement of a claim as provided for in this act against a licensee: (1)   The license of that person shall automatically suspend upon the effective date of the payment thereof by the commission. (2)   No such licensee shall be granted reinstatement until he has repaid in full plus interest at the rate of 10% a year, the amount paid from the Real Estate Recovery Fund. (3)   The commission shall have the right to petition the court that entered the judgment against the licensee to enter a judgment under this subsection, and, upon proof of the amount paid by the fund, the court shall enter a judgment against the licensee for that amount in favor of the commission. (g)  Should the commission pay from the Real Estate Recovery Fund any amount in settlement of a claim as provided for in this act against a registrant the registrant shall automatically be denied the right to sell cemetery lots upon the effective date of the payment thereof by the commission. No such registrant shall be granted the right to sell cemetery lots until he has repaid in full plus interest at the rate of 10% a year, the amount paid from the Real Estate Recovery Fund. § 901.  Repealed The act of May 1, 1929 (P.L. 1216, No. 427), known as the “Real Estate Brokers License Act of one thousand nine hundred and twenty-nine,”12 is repealed to the following conditions: (1)   All valid licenses issued prior to the effective date of this act under the provisions of said 1929 act shall continue with full force and validity during the period for which issued. For the subsequent license period, and each license period thereafter, the commission shall renew such licenses without requiring any license examination to be taken: Provided, however, That applicants for renewal or holders of such licenses shall be subject to all other provisions of this act. (2)   All proceedings in progress on the effective date shall continue to proceed under the terms of the act under which they were brought. (3)   All offenses alleged to have occurred prior to the effective date of this act shall be processed under the act of May 1, 1929 (P.L. 1216, No. 427). § 902.  Effective date Section 561 shall take effect September 1, 1980 and the remaining provisions of this act shall take effect immediately.

12. 63 P.S. §§ 431 to 448.

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Table of Contents

CHAPTER 3

Part I Ch. 1–14 Brokers

COMMERCIAL REAL ESTATE BROKER LIEN ACT 68 P.S. § 1051 to 68 P.S. § 1063

Sec.

1051. Short title 1052. Definitions 1053. Right to lien 1054. Excessive curtilage 1055. Lien not allowed in certain cases 1056. Attachment of lien 1057. Notice of lien 1058. Enforcement of lien 1059. Priority 1060. Escrow of disputed amounts 1061. Waiver prohibited 1062. Revival of judgment 1063. Severability

Part II Ch. 15–22 Deeds Part III Ch. 23–35 Mortgages

§ § § § § § § § § § § § §

Part VIII Ch. 64–67 L/T Part IX Ch. 68–72 Condos, etc. Index

gtb-parealestate22-all.indb 39

Part VII Ch. 57–63 Litigation

39

Part VI Ch. 49–56 Taxation

§ 1053.  Right to lien Each broker, unless employed by another broker, shall have a lien in the amount of the compensation agreed upon by and between the broker and the broker’s client upon commercial real estate or any interest in that commercial real estate: (1)   listed with the broker under the terms of a written agreement for the purposes of selling, leasing or otherwise conveying any interest in the commercial real estate that is signed by the owner or the owner’s agent and as to which the broker or broker’s employees or independent contractors have provided licensed services that result during the term of the written agreement in the procurement of a person or entity that is ready, willing and able to purchase, lease or otherwise accept a conveyance of the commercial real estate or any interest in the commercial real estate upon terms that are provided in a

Part V Ch. 41–48A Zoning, etc.

§ 1052.  Definitions The following words and phrases when used in this act shall have the meanings given to them in this section unless the context clearly indicates otherwise: “Broker.” A person who is licensed under the laws of this Commonwealth to act as a real estate broker. “Commercial real estate.” Any real estate other than: (1)   Real estate containing one to four residential units. (2)   Real estate that is zoned for agricultural purposes and that is not subject to an agreement of sale contingent upon the rezoning of all or any portion of the real estate to provide for nonagricultural uses. The term does not include single family residential units or building lots such as condominiums, townhouses or homes in a subdivision when sold, leased or otherwise conveyed on a unit-by-unit basis even though these units may be part of a larger building or parcel of real estate containing more than four residential units.

Part IV Ch. 36–40 Insurance

§ 1051.  Short title This act shall be known and may be cited as the Commercial Real Estate Broker Lien Act.

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§ 1054

REAL ESTATE BROKER LIEN ACT

written agreement that is signed by the owner or the owner’s agent or which are otherwise acceptable to the owner or the owner’s agent as evidenced by a written agreement that is signed by the owner or the owner’s agent; or (2)  when a broker, pursuant to a written agreement with a prospective buyer to represent the buyer as to the purchase or other conveyance to the buyer of commercial real estate, becomes entitled to compensation. In the case of a tenant represented by a broker or other representative where the fee or commission is to be paid by the current owner, the right to file a lien shall be conditioned upon the owner agreeing in writing to pay the fee or commission of the broker or other representative of the tenant. § 1054.  Excessive curtilage Where a party objects that a lien has been claimed against more commercial real estate than should justly be included therein, the court upon petition may, after hearing by deposition or otherwise, limit the boundaries of commercial real estate subject to the lien. Failure to raise this objection shall not be a waiver of the right to plead the same as a defense thereafter. § 1055.  Lien not allowed in certain cases No lien shall be allowed in favor of any person other than a broker as defined herein even though such person furnishes labor or materials which result in the procurement of a person or entity who is ready, willing and able to purchase, lease or accept a conveyance of the commercial real estate or any interest in the commercial real estate. § 1056.  Attachment of lien (a)   Time and manner of attachment.—A lien under section 3 shall attach to the commercial real estate or any interest in the commercial real estate upon: (1)   the broker procuring a person or entity that is ready, willing and able to purchase, lease or otherwise accept a conveyance of the commercial real estate upon the terms set forth in the written agreement with the owner or that is otherwise acceptable to the owner or the owner’s agent or the broker being otherwise entitled to a fee or commission under a written agreement that is signed by the owner or the owner’s agent; and (2)   except as provided in subsection (b), (c) or (d), the broker recording a notice of lien in the office of the prothonotary in the county in which the real property or any interest in the real property is located prior to the actual conveyance or transfer of the commercial real estate against which the broker is claiming a lien. (b)  Leases.—In the case of a lease, the notice of lien shall be recorded within 90 days of a default by the owner or successors in interest under the terms of the compensation agreement. (c)  Written agreements.—If a broker has a written agreement with a prospective buyer as provided in section 3(2), the lien shall attach upon the recording of a notice of lien by the broker in the office of the prothonotary of the county in which the real property or any interest in the real property is located within 90 days after the purchase or other conveyance or transfer to the buyer. (d)   Commercial real estate in more than one county.—Where the commercial real estate is located in more than one county, the lien may be filed in any one or more of the said counties but shall be effective only as to the part of the commercial real estate in the county in which it has been filed. (e)  Owner notification.—The broker shall mail a copy of the notice of lien to the owner of the commercial real estate by certified mail. (f)  Recording.—A broker shall not be entitled to record a notice of or claim for lien unless, not later than three days prior to the date of conveyance, he gives

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Part III Ch. 23–35 Mortgages Part IV Ch. 36–40 Insurance Part V Ch. 41–48A Zoning, etc. Part VI Ch. 49–56 Taxation Part VII Ch. 57–63 Litigation Part VIII Ch. 64–67 L/T Part IX Ch. 68–72 Condos, etc. Index

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Part II Ch. 15–22 Deeds

41

Part I Ch. 1–14 Brokers

written notice of the claim for lien to the owner and the prospective buyer that he is entitled to compensation under the terms set forth in the written contract and intends to claim a lien on the commercial real property. The notice shall be served upon the owner and prospective buyer by registered or certified mail. When there are two or more owners or two or more prospective buyers, the notice shall be served upon each owner and each prospective buyer. The notice shall include a statement of the buyer’s right to deposit funds in escrow under section 10. (g)  Lien unenforceable.—The broker’s lien shall be void and unenforceable if recording does not occur at the time and in the manner required by this section. (h)  Satisfaction of the lien.—In the event a lien is recorded upon the procurement of a person or entity that is ready, willing and able to purchase, lease or otherwise accept a conveyance of commercial property and the conveyance fails to occur through no fault or condition of the owner, the lien recorded by the broker pursuant to this section shall be satisfied of record by the broker, whereupon the property shall be freed and discharged from such lien. If the broker does not voluntarily satisfy the lien, the owner may demand the filing of a complaint pursuant to section 8(f) or commence an action against the broker seeking as relief the satisfaction or striking of the lien. Upon finding that the lien was recorded in bad faith or the refusal to satisfy the lien was in bad faith, a court shall award the owner the amount of the reasonable expenses, including attorney fees and court costs, incurred by the owner as a result of the recording of the lien or refusal to satisfy the lien. § 1057.  Notice of lien The notice of lien shall state the name of the claimant, the name of the owner, a description of the property upon which the lien is being claimed, the amount for which the lien is claimed and the real estate license number of the broker and shall be signed and verified by the broker or by a person who is authorized to sign on behalf of the broker and shall be verified. § 1058.  Enforcement of lien (a)   Commencement of proceedings.—A broker may bring suit to enforce the lien in the court of common pleas in the county where the lien is filed by filing a complaint as set forth under subsection (e). (b)  Commercial real estate in more than one county.—Where a claim has been filed in more than one county as provided by section 6(d), proceedings to obtain judgment upon all the claims may be commenced in any of the counties, and the judgment shall be res adjudicata as to the merits of the claims properly filed in other counties. The judgment may be transferred to such other county by filing of record a certified copy of the docket entries in the action and a certification of the judgment and amount, if any. The prothonotary of the court to which the judgment has been transferred shall forthwith index it upon the judgment index. (c)  Time limitations.—The broker claiming a lien shall, except as set forth under subsection (d), within two years after recording the lien, commence proceedings to enforce the lien. Failure to commence proceedings within two years after recording the lien shall extinguish the lien. (d)  Lien based on option to purchase.—A broker claiming a lien based upon an option to purchase shall, within six months after the transfer or conveyance of the commercial real estate pursuant to the exercise of the option to purchase, commence proceedings to enforce the lien. Failure to commence proceedings within this time shall extinguish the lien. (e)  Complaint and defendants to the action.—A complaint under this section shall contain a brief statement of the contract or agreement on which the lien is founded, the date when the contract or agreement was made, a description of the services performed, the amount due and unpaid and a description of the property that is subject to the lien. The plaintiff shall make all interested par-

Table of Contents

PART I

12/22/21 10:45 AM

§ 1059

REAL ESTATE BROKER LIEN ACT

ties, of whose interest he is notified or has knowledge, defendants to the action. The practice and procedure shall be governed by the Pennsylvania Rules of Civil Procedure and all other rules and procedures relating to civil actions except to the extent inconsistent with the provisions of this section. (f)   Praecipe of the owner.—The prothonotary, upon praecipe of the owner, shall enter a rule upon the person claiming the lien to file a complaint. If a complaint is not filed within 20 days after service of the rule, upon praecipe of the owner of the property the lien shall be extinguished. (g)  Satisfaction or release.—Whenever a claim for lien which has been filed with the prothonotary is paid, the claimant shall mark the docket satisfied within 30 days of receipt of payment. (h)  Costs.—The cost of proceedings, including reasonable attorney fees and prejudgment interest due to the prevailing party, shall be borne by the nonprevailing party or parties. If more than one party is responsible for the costs, fees and prejudgment interest, the costs, fees and prejudgment interest shall be equitably apportioned by the court among the responsible parties. § 1059.  Priority The priority of a broker’s lien shall be as set forth under 42 Pa.C.S. § 8141 (relating to time from which liens have priority), except that mortgages, mechanics liens and defeasible deeds in the nature of a mortgage shall have priority over a broker’s lien, regardless of the date recorded. § 1060.  Escrow of disputed amounts Except as otherwise provided in this section, whenever a claim for lien has been filed with the prothonotary that would prevent the closing of a transaction or conveyance, an escrow account shall be established from the proceeds from the transaction or conveyance in an amount that is sufficient to release the claim for lien. The requirement to establish an escrow account shall not be cause for any party to refuse to close the transaction. These moneys shall be held in escrow until the parties’ rights to the escrowed moneys have been determined by written agreement of the parties, a court of law or other process as may be agreed to by the parties. Upon funds in the amount of the claimed lien being escrowed, a release of the claim for lien shall be provided by the broker who is claiming the lien. The parties are not required to follow this escrow procedure if alternative procedures which would allow the transaction to close are available and are acceptable to the broker in the transaction. § 1061.  Waiver prohibited (a)  General rule.—Except as provided in subsection (b), an agreement to waive the right to a lien under this act made contemporaneously with the signing of the listing agreement, whether dated on the date of the listing agreement or thereafter, shall be void and unenforceable. (b)   Discharge of lien.—Any lien filed hereunder shall, upon petition of the party subject to the broker’s lien or any party in interest, be discharged as a lien against the commercial real estate whenever a sum equal to the amount of the putative lien against the commercial real estate shall have been deposited with the court in said proceedings for application to the payment of the amount finally determined to be due. (c)   Refund of access.—Any excess of funds paid into court as aforesaid over the amount of the claim determined to be paid therefrom shall be refunded to the party depositing same upon application for a refund. (d)  Security in lieu of cash.—In lieu of the deposit of any sum or sums, approved security may be entered in such proceedings in double the amount of

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Part I Ch. 1–14 Brokers Part II Ch. 15–22 Deeds Part III Ch. 23–35 Mortgages Part IV Ch. 36–40 Insurance

the required deposit or in such lesser amount as the court shall approve which, however, shall in no event be less than the full amount of such required deposit, and the entry of such security shall entitle a party to have the broker’s lien discharged to the same effect as though the required sums had been deposited in the court aforesaid. (e)  Authority of court.—The court, upon petition filed by any party and after notice and hearing, may upon cause shown: (1)   require the increase or decrease of any deposit or security; (2)   strike off security improperly filed; and (3)   permit the substitution of security and enter an exoneration of security already given. § 1062.  Revival of judgment Judgment upon a claim shall be revived within each recurring five-year period. The practice and procedures to revive judgment shall be governed by 42 Pa.C.S. § 5526 (relating to five year limitation) and the Pennsylvania Rules of Civil Procedure. § 1063.  Severability The provisions of this act are severable. If any provision of this act or its application to any person or circumstance is held invalid, the invalidity shall not affect other provisions or applications of this act which can be given effect without the invalid provision or application.

Table of Contents

PART I

Part V Ch. 41–48A Zoning, etc. Part VI Ch. 49–56 Taxation Part VII Ch. 57–63 Litigation Part VIII Ch. 64–67 L/T Part IX Ch. 68–72 Condos, etc.

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Index

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CHAPTER 4 FEDERAL REAL ESTATE SETTLEMENT PROCEDURES 12 U.S.C. § 2601 et seq.

Sec. § § § § § § § § § §

2601. Congressional findings and purpose 2602. Definitions 2603. Uniform settlement statement 2604. Home buying information booklets 2605. Servicing of mortgage loans and administration of escrow accounts 2606. Exempted transactions 2607. Prohibition against kickbacks and unearned fees 2608. Title companies; liability of seller 2609. Limitation on requirement of advance deposits in escrow accounts 2610. Prohibition of fees for preparation of truth-in-lending, uniform settlement, and escrow account statements §§ 2611 to Repealed. Pub.L. 104-208, Div. A, Title II, § 2103(h), Sept. 30, 1996, 110    2613. Stat. 3009-401 § 2614. Jurisdiction of courts; limitations § 2615. Contracts and liens; validity § 2616. State laws unaffected; inconsistent Federal and State provisions § 2617. Authority of Bureau

§ 2601.  Congressional findings and purpose (a)   The Congress finds that significant reforms in the real estate settlement process are needed to insure that consumers throughout the Nation are provided with greater and more timely information on the nature and costs of the settlement process and are protected from unnecessarily high settlement charges caused by certain abusive practices that have developed in some areas of the country. The Congress also finds that it has been over two years since the Secretary of Housing and Urban Development and the Administrator of Veterans’ Affairs submitted their joint report to the Congress on “Mortgage Settlement Costs” and that the time has come for the recommendations for Federal legislative action made in that report to be implemented. (b)   It is the purpose of this chapter to effect certain changes in the settlement process for residential real estate that will result— (1)  in more effective advance disclosure to home buyers and sellers of settlement costs; (2)  in the elimination of kickbacks or referral fees that tend to increase unnecessarily the costs of certain settlement services; (3)  in a reduction in the amounts home buyers are required to place in escrow accounts established to insure the payment of real estate taxes and insurance; and (4)   in significant reform and modernization of local recordkeeping of land title information. § 2602.  Definitions For purposes of this chapter— (1)  the term “federally related mortgage loan” includes any loan (other than temporary financing such as a construction loan) which— (A)   is secured by a first or subordinate lien on residential real property (including individual units of condominiums and cooperatives) designed principally for the occupancy of from one to four families, including any such secured loan, the proceeds of which are used to prepay or pay off an existing loan secured by the same property; and

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(2)  the term “thing of value” includes any payment, advance, funds, loan, service, or other consideration;

(5)  the term “person” includes individuals, corporations, associations, partnerships, and trusts;

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Index

45

Part IX Ch. 68–72 Condos, etc.

(8)  the term “associate” means one who has one or more of the following relationships with a person in a position to refer settlement business: (A) a spouse, parent, or child of such person; (B) a corporation or business entity that controls, is controlled by, or is under common control with such person; (C) an employer, officer, director, partner, franchisor, or franchisee of such person; or (D) anyone who has an agreement, arrangement, or understanding, with such person, the purpose or substantial effect of which is to enable the person in a position to refer settlement business to benefit financially from the referrals of such business; and (9)  the term “Bureau” means the Bureau of Consumer Financial Protection.

Part VIII Ch. 64–67 L/T

(7)  the term “affiliated business arrangement” means an arrangement in which (A) a person who is in a position to refer business incident to or a part of a real estate settlement service involving a federally related mortgage loan, or an associate of such person, has either an affiliate relationship with or a direct or beneficial ownership interest of more than 1 percent in a provider of settlement services; and (B) either of such persons directly or indirectly refers such business to that provider or affirmatively influences the selection of that provider;

Part VII Ch. 57–63 Litigation

(6)  the term “Secretary” means the Secretary of Housing and Urban Development;

Part VI Ch. 49–56 Taxation

(4)  the term “title company” means any institution which is qualified to issue title insurance, directly or through its agents, and also refers to any duly authorized agent of a title company;

Part V Ch. 41–48A Zoning, etc.

(3)  the term “settlement services” includes any service provided in connection with a real estate settlement including, but not limited to, the following: title searches, title examinations, the provision of title certificates, title insurance, services rendered by an attorney, the preparation of documents, property surveys, the rendering of credit reports or appraisals, pest and fungus inspections, services rendered by a real estate agent or broker, the origination of a federally related mortgage loan (including, but not limited to, the taking of loan applications, loan processing, and the underwriting and funding of loans), and the handling of the processing, and closing or settlement;

Part IV Ch. 36–40 Insurance

(iv)   is made in whole or in part by any “creditor”, as defined in section 1602(f) of Title 15, who makes or invests in residential real estate loans aggregating more than $1,000,000 per year, except that for the purpose of this chapter, the term “creditor” does not include any agency or instrumentality of any State;

Part III Ch. 23–35 Mortgages

(iii)  is intended to be sold by the originating lender to the Federal National Mortgage Association, the Government National Mortgage Association, the Federal Home Loan Mortgage Corporation, or a financial institution from which it is to be purchased by the Federal Home Loan Mortgage Corporation; or

Part II Ch. 15–22 Deeds

(ii)   is made in whole or in part, or insured, guaranteed, supplemented, or assisted in any way, by the Secretary or any other officer or agency of the Federal Government or under or in connection with a housing or urban development program administered by the Secretary or a housing or related program administered by any other such officer or agency; or

Part I Ch. 1–14 Brokers

(B)(i)   is made in whole or in part by any lender the deposits or accounts of which are insured by any agency of the Federal Government, or is made in whole or in part by any lender which is regulated by any agency of the Federal Government, or

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§ 2603

SETTLEMENT PROCEDURES

§ 2603.   Uniform settlement statement (a)   Disclosure for mortgage loan transactions The Bureau shall publish a single, integrated disclosure for mortgage loan transactions (including real estate settlement cost statements) which includes the disclosure requirements of this section and section 2604 of this title, in conjunction with the disclosure requirements of the Truth in Lending Act [15 U.S.C. 1601 et seq.] that, taken together, may apply to a transaction that is subject to both or either provisions of law. The purpose of such model disclosure shall be to facilitate compliance with the disclosure requirements of this chapter and the Truth in Lending Act, and to aid the borrower or lessee in understanding the transaction by utilizing readily understandable language to simplify the technical nature of the disclosures. Such forms shall conspicuously and clearly itemize all charges imposed upon the borrower and all charges imposed upon the seller in connection with the settlement and shall indicate whether any title insurance premium included in such charges covers or insures the lender’s interest in the property, the borrower’s interest, or both. The Bureau may, by regulation, permit the deletion from the forms prescribed under this section of items which are not, under local laws or customs, applicable in any locality, except that such regulation shall require that the numerical code prescribed by the Bureau be retained in forms to be used in all localities. Nothing in this section may be construed to require that that part of the standard forms which relates to the borrower’s transaction be furnished to the seller, or to require that that part of the standard forms which relates to the seller be furnished to the borrower. (b)  Availability for inspection; exceptions The forms prescribed under this section shall be completed and made available for inspection by the borrower at or before settlement by the person conducting the settlement, except that (1) the Bureau may exempt from the requirements of this section settlements occurring in localities where the final settlement statement is not customarily provided at or before the date of settlement, or settlements where such requirements are impractical and (2) the borrower may, in accordance with regulations of the Bureau, waive his right to have the forms made available at such time. Upon the request of the borrower to inspect the forms prescribed under this section during the business day immediately preceding the day of settlement, the person who will conduct the settlement shall permit the borrower to inspect those items which are known to such person during such preceding day. (c)  Disclosure of fees The standard form described in subsection (a) may include, in the case of an appraisal coordinated by an appraisal management company (as such term is defined in section 3350(11) of this title), a clear disclosure of— (1)   the fee paid directly to the appraiser by such company; and (2)   the administration fee charged by such company. (d)  Disclosure for charitable mortgage loan transactions With respect to a mortgage loan transaction involving a residential mortgage loan offered at 0 percent interest with only bonafide and reasonable fees and that is primarily for charitable purposes, an organization described in section 501(c)(3) of title 26 and exempt from taxation under section 501(a) of such title may use forms HUD–1 and GFE (as defined under section 1024.2(b) of title 12, Code of Federal Regulations) together with a disclosure substantially in the form of the Loan Model Form H–2 (as depicted in Appendix H to part 1026 of title 12, Code of Federal Regulations), collectively, in lieu of the disclosure published under subsection (a) of this section. § 2604.   Home buying information booklets (a)   Preparation and distribution The Director of the Bureau of Consumer Financial Protection (hereafter in this section referred to as the “Director”) shall prepare, at least once every 5 years,

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Part III Ch. 23–35 Mortgages Part IV Ch. 36–40 Insurance Part V Ch. 41–48A Zoning, etc. Part VI Ch. 49–56 Taxation Part VII Ch. 57–63 Litigation Part VIII Ch. 64–67 L/T Part IX Ch. 68–72 Condos, etc. Index

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Part II Ch. 15–22 Deeds

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Part I Ch. 1–14 Brokers

a booklet to help consumers applying for federally related mortgage loans to understand the nature and costs of real estate settlement services. The Director shall prepare the booklet in various languages and cultural styles, as the Director determines to be appropriate, so that the booklet is understandable and accessible to homebuyers of different ethnic and cultural backgrounds. The Director shall distribute such booklets to all lenders that make federally related mortgage loans. The Director shall also distribute to such lenders lists, organized by location, of homeownership counselors certified under section 1701x(e) of this title for use in complying with the requirement under subsection (c) of this section. (b)  Contents Each booklet shall be in such form and detail as the Director shall prescribe and, in addition to such other information as the Director may provide, shall include in plain and understandable language the following information: (1)  A description and explanation of the nature and purpose of the costs incident to a real estate settlement or a federally related mortgage loan. The description and explanation shall provide general information about the mortgage process as well as specific information concerning, at a minimum— (A)  balloon payments; (B)  prepayment penalties; (C)   the advantages of prepayment; and (D)   the trade-off between closing costs and the interest rate over the life of the loan. (2)  An explanation and sample of the uniform settlement statement required by section 2603 of this title. (3)   A list and explanation of lending practices, including those prohibited by the Truth in Lending Act or other applicable Federal law, and of other unfair practices and unreasonable or unnecessary charges to be avoided by the prospective buyer with respect to a real estate settlement. (4)  A list and explanation of questions a consumer obtaining a federally related mortgage loan should ask regarding the loan, including whether the consumer will have the ability to repay the loan, whether the consumer sufficiently shopped for the loan, whether the loan terms include prepayment penalties or balloon payments, and whether the loan will benefit the borrower. (5)   An explanation of the right of rescission as to certain transactions provided by sections 125 and 129 of the Truth in Lending Act. (6)  A brief explanation of the nature of a variable rate mortgage and a reference to the booklet entitled “Consumer Handbook on Adjustable Rate Mortgages”, published by the Director, or to any suitable substitute of such booklet that the Director may subsequently adopt pursuant to such section. (7)   A brief explanation of the nature of a home equity line of credit and a reference to the pamphlet required to be provided under section 127A of the Truth in Lending Act. (8)  Information about homeownership counseling services made available pursuant to section 1701x(a)(4) of this title, a recommendation that the consumer use such services, and notification that a list of certified providers of homeownership counseling in the area, and their contact information, is available. (9)   An explanation of the nature and purpose of escrow accounts when used in connection with loans secured by residential real estate and the requirements under section 2609 of this title regarding such accounts. (10)  An explanation of the choices available to buyers of residential real estate in selecting persons to provide necessary services incidental to a real estate settlement. (11)   An explanation of a consumer’s responsibilities, liabilities, and obligations in a mortgage transaction.

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§ 2605

SETTLEMENT PROCEDURES

(12)  An explanation of the nature and purpose of real estate appraisals, including the difference between an appraisal and a home inspection. (13)   Notice that the Office of Housing of the Department of Housing and Urban Development has made publicly available a brochure regarding loan fraud and a World Wide Web address and toll-free telephone number for obtaining the brochure. (14)   An explanation of flood insurance and the availability of flood insurance under the National Flood Insurance Program or from a private insurance company, whether or not the real estate is located in an area having special flood hazards, and the following statement: “Although you may not be required to maintain flood insurance on all structures, you may still wish to do so, and your mortgage lender may still require you to do so to protect the collateral securing the mortgage. If you choose to not maintain flood insurance on a structure, and it floods, you are responsible for all flood losses relating to that structure.”. The booklet prepared pursuant to this section shall take into consideration differences in real estate settlement procedures that may exist among the several States and territories of the United States and among separate political subdivisions within the same State and territory. (c)   Estimate of charges Each lender shall include with the booklet a good faith estimate of the amount or range of charges for specific settlement services the borrower is likely to incur in connection with the settlement as prescribed by the Bureau. Each lender shall also include with the booklet a reasonably complete or updated list of homeownership counselors who are certified pursuant to section 1701x(e) of this title and located in the area of the lender. (d)  Distribution by lenders to loan applicants at time of receipt or preparation of applications Each lender referred to in subsection (a) of this section shall provide the booklet described in such subsection to each person from whom it receives or for whom it prepares a written application to borrow money to finance the purchase of residential real estate. The lender shall provide the booklet in the version that is most appropriate for the person receiving it. Such booklet shall be provided by delivering it or placing it in the mail not later than 3 business days after the lender receives the application, but no booklet need be provided if the lender denies the application for credit before the end of the 3-day period. (e)   Printing and distribution by lenders of booklets approved by Bureau Booklets may be printed and distributed by lenders if their form and content are approved by the Bureau as meeting the requirements of subsection (b) of this section. § 2605.  Servicing of mortgage loans and administration of escrow accounts (a)  Disclosure to applicant relating to assignment, sale, or transfer of loan servicing Each person who makes a federally related mortgage loan shall disclose to each person who applies for the loan, at the time of application for the loan, whether the servicing of the loan may be assigned, sold, or transferred to any other person at any time while the loan is outstanding. (b)   Notice by transferor of loan servicing at time of transfer (1)  Notice requirement Each servicer of any federally related mortgage loan shall notify the borrower in writing of any assignment, sale, or transfer of the servicing of the loan to any other person.

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Part III Ch. 23–35 Mortgages Part IV Ch. 36–40 Insurance Part V Ch. 41–48A Zoning, etc. Part VI Ch. 49–56 Taxation Part VII Ch. 57–63 Litigation Part VIII Ch. 64–67 L/T Part IX Ch. 68–72 Condos, etc. Index

gtb-parealestate22-all.indb 49

Part II Ch. 15–22 Deeds

49

Part I Ch. 1–14 Brokers

(2)   Time of notice (A)  In general Except as provided under subparagraphs (B) and (C), the notice required under paragraph (1) shall be made to the borrower not less than 15 days before the effective date of transfer of the servicing of the mortgage loan (with respect to which such notice is made). (B)   Exception for certain proceedings The notice required under paragraph (1) shall be made to the borrower not more than 30 days after the effective date of assignment, sale, or transfer of the servicing of the mortgage loan (with respect to which such notice is made) in any case in which the assignment, sale, or transfer of the servicing of the mortgage loan is preceded by— (i)   termination of the contract for servicing the loan for cause; (ii)   commencement of proceedings for bankruptcy of the servicer; or (iii)  commencement of proceedings by the Federal Deposit Insurance Corporation or the Resolution Trust Corporation for conservatorship or receivership of the servicer (or an entity by which the servicer is owned or controlled). (C)   Exception for notice provided at closing The provisions of subparagraphs (A) and (B) shall not apply to any assignment, sale, or transfer of the servicing of any mortgage loan if the person who makes the loan provides to the borrower, at settlement (with respect to the property for which the mortgage loan is made), written notice under paragraph (3) of such transfer. (3)   Contents of notice The notice required under paragraph (1) shall include the following information: (A)   The effective date of transfer of the servicing described in such paragraph. (B)   The name, address, and toll-free or collect call telephone number of the transferee servicer. (C)   A toll-free or collect call telephone number for (i) an individual employed by the transferor servicer, or (ii) the department of the transferor servicer, that can be contacted by the borrower to answer inquiries relating to the transfer of servicing. (D)  The name and toll-free or collect call telephone number for (i) an individual employed by the transferee servicer, or (ii) the department of the transferee servicer, that can be contacted by the borrower to answer inquiries relating to the transfer of servicing. (E)   The date on which the transferor servicer who is servicing the mortgage loan before the assignment, sale, or transfer will cease to accept payments relating to the loan and the date on which the transferee servicer will begin to accept such payments. (F)   Any information concerning the effect the transfer may have, if any, on the terms of or the continued availability of mortgage life or disability insurance or any other type of optional insurance and what action, if any, the borrower must take to maintain coverage. (G)  A statement that the assignment, sale, or transfer of the servicing of the mortgage loan does not affect any term or condition of the security instruments other than terms directly related to the servicing of such loan. (c)   Notice by transferee of loan servicing at time of transfer (1)  Notice requirement Each transferee servicer to whom the servicing of any federally related mortgage loan is assigned, sold, or transferred shall notify the borrower of any such assignment, sale, or transfer.

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§ 2605

SETTLEMENT PROCEDURES

(2)   Time of notice (A)  In general Except as provided in subparagraphs (B) and (C), the notice required under paragraph (1) shall be made to the borrower not more than 15 days after the effective date of transfer of the servicing of the mortgage loan (with respect to which such notice is made). (B)   Exception for certain proceedings The notice required under paragraph (1) shall be made to the borrower not more than 30 days after the effective date of assignment, sale, or transfer of the servicing of the mortgage loan (with respect to which such notice is made) in any case in which the assignment, sale, or transfer of the servicing of the mortgage loan is preceded by— (i)   termination of the contract for servicing the loan for cause; (ii)   commencement of proceedings for bankruptcy of the servicer; or (iii)  commencement of proceedings by the Federal Deposit Insurance Corporation or the Resolution Trust Corporation for conservatorship or receivership of the servicer (or an entity by which the servicer is owned or controlled). (C)   Exception for notice provided at closing The provisions of subparagraphs (A) and (B) shall not apply to any assignment, sale, or transfer of the servicing of any mortgage loan if the person who makes the loan provides to the borrower, at settlement (with respect to the property for which the mortgage loan is made), written notice under paragraph (3) of such transfer. (3)   Contents of notice Any notice required under paragraph (1) shall include the information described in subsection (b)(3) of this section. (d)   Treatment of loan payments during transfer period During the 60-day period beginning on the effective date of transfer of the servicing of any federally related mortgage loan, a late fee may not be imposed on the borrower with respect to any payment on such loan and no such payment may be treated as late for any other purposes, if the payment is received by the transferor servicer (rather than the transferee servicer who should properly receive payment) before the due date applicable to such payment. (e)   Duty of loan servicer to respond to borrower inquiries (1)   Notice of receipt of inquiry (A)  In general If any servicer of a federally related mortgage loan receives a qualified written request from the borrower (or an agent of the borrower) for information relating to the servicing of such loan, the servicer shall provide a written response acknowledging receipt of the correspondence within 5 days (excluding legal public holidays, Saturdays, and Sundays) unless the action requested is taken within such period. (B)   Qualified written request For purposes of this subsection, a qualified written request shall be a written correspondence, other than notice on a payment coupon or other payment medium supplied by the servicer, that— (i)   includes, or otherwise enables the servicer to identify, the name and account of the borrower; and

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(2)   Action with respect to inquiry

(B)   after conducting an investigation, provide the borrower with a written explanation or clarification that includes—

(ii)   the name and telephone number of an individual employed by, or the office or department of, the servicer who can provide assistance to the borrower; or (C)   after conducting an investigation, provide the borrower with a written explanation or clarification that includes—

(ii)   the name and telephone number of an individual employed by, or the office or department of, the servicer who can provide assistance to the borrower.

(4)   Limited extension of response time The 30-day period described in paragraph (2) may be extended for not more than 15 days if, before the end of such 30-day period, the servicer notifies the borrower of the extension and the reasons for the delay in responding. Whoever fails to comply with any provision of this section shall be liable to the borrower for each such failure in the following amounts: (1)  Individuals (A)   any actual damages to the borrower as a result of the failure; and (B)   any additional damages, as the court may allow, in the case of a pattern or practice of noncompliance with the requirements of this section, in an amount not to exceed $2,000.

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Index

51

Part IX Ch. 68–72 Condos, etc.

In the case of any action by an individual, an amount equal to the sum of—

Part VIII Ch. 64–67 L/T

(f)   Damages and costs

Part VII Ch. 57–63 Litigation

During the 60-day period beginning on the date of the servicer’s receipt from any borrower of a qualified written request relating to a dispute regarding the borrower’s payments, a servicer may not provide information regarding any overdue payment, owed by such borrower and relating to such period or qualified written request, to any consumer reporting agency (as such term is defined under section 1681a of Title 15).

Part VI Ch. 49–56 Taxation

(3)   Protection of credit rating

Part V Ch. 41–48A Zoning, etc.

(i)  information requested by the borrower or an explanation of why the information requested is unavailable or cannot be obtained by the servicer; and

Part IV Ch. 36–40 Insurance

(i)  to the extent applicable, a statement of the reasons for which the servicer believes the account of the borrower is correct as determined by the servicer; and

Part III Ch. 23–35 Mortgages

(A)   make appropriate corrections in the account of the borrower, including the crediting of any late charges or penalties, and transmit to the borrower a written notification of such correction (which shall include the name and telephone number of a representative of the servicer who can provide assistance to the borrower);

Part II Ch. 15–22 Deeds

Not later than 30 days (excluding legal public holidays, Saturdays, and Sundays) after the receipt from any borrower of any qualified written request under paragraph (1) and, if applicable, before taking any action with respect to the inquiry of the borrower, the servicer shall—

Part I Ch. 1–14 Brokers

(ii)   includes a statement of the reasons for the belief of the borrower, to the extent applicable, that the account is in error or provides sufficient detail to the servicer regarding other information sought by the borrower.

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(2)  Class actions In the case of a class action, an amount equal to the sum of— (A)   any actual damages to each of the borrowers in the class as a result of the failure; and (B)   any additional damages, as the court may allow, in the case of a pattern or practice of noncompliance with the requirements of this section, in an amount not greater than $2,000 for each member of the class, except that the total amount of damages under this subparagraph in any class action may not exceed the lesser of— (i)  $1,000,000; or (ii)   1 percent of the net worth of the servicer. (3)  Costs In addition to the amounts under paragraph (1) or (2), in the case of any successful action under this section, the costs of the action, together with any attorneys fees incurred in connection with such action as the court may determine to be reasonable under the circumstances. (4)  Nonliability A transferor or transferee servicer shall not be liable under this subsection for any failure to comply with any requirement under this section if, within 60 days after discovering an error (whether pursuant to a final written examination report or the servicer’s own procedures) and before the commencement of an action under this subsection and the receipt of written notice of the error from the borrower, the servicer notifies the person concerned of the error and makes whatever adjustments are necessary in the appropriate account to ensure that the person will not be required to pay an amount in excess of any amount that the person otherwise would have paid. (g)   Administration of escrow accounts If the terms of any federally related mortgage loan require the borrower to make payments to the servicer of the loan for deposit into an escrow account for the purpose of assuring payment of taxes, insurance premiums, and other charges with respect to the property, the servicer shall make payments from the escrow account for such taxes, insurance premiums, and other charges in a timely manner as such payments become due. Any balance in any such account that is within the servicer’s control at the time the loan is paid off shall be promptly returned to the borrower within 20 business days or credited to a similar account for a new mortgage loan to the borrower with the same lender. (h)   Preemption of conflicting State laws Notwithstanding any provision of any law or regulation of any State, a person who makes a federally related mortgage loan or a servicer shall be considered to have complied with the provisions of any such State law or regulation requiring notice to a borrower at the time of application for a loan or transfer of the servicing of a loan if such person or servicer complies with the requirements under this section regarding timing, content, and procedures for notification of the borrower. (i)  Definitions For purposes of this section: (1)   Effective date of transfer The term “effective date of transfer” means the date on which the mortgage payment of a borrower is first due to the transferee servicer of a mortgage loan pursuant to the assignment, sale, or transfer of the servicing of the mortgage loan.

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Part III Ch. 23–35 Mortgages Part IV Ch. 36–40 Insurance Part V Ch. 41–48A Zoning, etc. Part VI Ch. 49–56 Taxation Part VII Ch. 57–63 Litigation Part VIII Ch. 64–67 L/T Part IX Ch. 68–72 Condos, etc. Index

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Part II Ch. 15–22 Deeds

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Part I Ch. 1–14 Brokers

(2)  Servicer The term “servicer” means the person responsible for servicing of a loan (including the person who makes or holds a loan if such person also services the loan). The term does not include— (A)  the Federal Deposit Insurance Corporation or the Resolution Trust Corporation, in connection with assets acquired, assigned, sold, or transferred pursuant to section 1823(c) of this title or as receiver or conservator of an insured depository institution; and (B)   the Government National Mortgage Association, the Federal National Mortgage Association, the Federal Home Loan Mortgage Corporation, the Resolution Trust Corporation, or the Federal Deposit Insurance Corporation, in any case in which the assignment, sale, or transfer of the servicing of the mortgage loan is preceded by— (i)   termination of the contract for servicing the loan for cause; (ii)   commencement of proceedings for bankruptcy of the servicer; or (iii)  commencement of proceedings by the Federal Deposit Insurance Corporation or the Resolution Trust Corporation for conservatorship or receivership of the servicer (or an entity by which the servicer is owned or controlled). (3)  Servicing The term “servicing” means receiving any scheduled periodic payments from a borrower pursuant to the terms of any loan, including amounts for escrow accounts described in section 2609 of this title, and making the payments of principal and interest and such other payments with respect to the amounts received from the borrower as may be required pursuant to the terms of the loan. (j)  Transition (1)  Originator liability A person who makes a federally related mortgage loan shall not be liable to a borrower because of a failure of such person to comply with subsection (a) of this section with respect to an application for a loan made by the borrower before the regulations referred to in paragraph (3) take effect. (2)  Servicer liability A servicer of a federally related mortgage loan shall not be liable to a borrower because of a failure of the servicer to perform any duty under subsection (b), (c), (d), or (e) of this section that arises before the regulations referred to in paragraph (3) take effect. (3)   Regulations and effective date The Bureau shall establish any requirements necessary to carry out this section. Such regulations shall include the model disclosure statement required under subsection (a)(2) of this section. (k)  Servicer prohibitions (1)  In general A servicer of a federally related mortgage shall not— (A)  obtain force-placed hazard insurance unless there is a reasonable basis to believe the borrower has failed to comply with the loan contract’s requirements to maintain property insurance; (B)   charge fees for responding to valid qualified written requests (as defined in regulations which the Bureau of Consumer Financial Protection shall prescribe) under this section;

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(C)   fail to take timely action to respond to a borrower’s requests to correct errors relating to allocation of payments, final balances for purposes of paying off the loan, or avoiding foreclosure, or other standard servicer’s duties; (D)   fail to respond within 10 business days to a request from a borrower to provide the identity, address, and other relevant contact information about the owner or assignee of the loan; or (E)   fail to comply with any other obligation found by the Bureau of Consumer Financial Protection, by regulation, to be appropriate to carry out the consumer protection purposes of this chapter. (2)   Force-placed insurance defined For purposes of this subsection and subsections (l) and (m), the term “forceplaced insurance” means hazard insurance coverage obtained by a servicer of a federally related mortgage when the borrower has failed to maintain or renew hazard insurance on such property as required of the borrower under the terms of the mortgage. (l)   Requirements for force-placed insurance A servicer of a federally related mortgage shall not be construed as having a reasonable basis for obtaining force-placed insurance unless the requirements of this subsection have been met. (1)   Written notices to borrower A servicer may not impose any charge on any borrower for force-placed insurance with respect to any property securing a federally related mortgage unless— (A)   the servicer has sent, by first-class mail, a written notice to the borrower containing— (i)  a reminder of the borrower’s obligation to maintain hazard insurance on the property securing the federally related mortgage; (ii)   a statement that the servicer does not have evidence of insurance coverage of such property; (iii)   a clear and conspicuous statement of the procedures by which the borrower may demonstrate that the borrower already has insurance coverage; and (iv)  a statement that the servicer may obtain such coverage at the borrower’s expense if the borrower does not provide such demonstration of the borrower’s existing coverage in a timely manner; (B)   the servicer has sent, by first-class mail, a second written notice, at least 30 days after the mailing of the notice under subparagraph (A) that contains all the information described in each clause of such subparagraph; and (C)   the servicer has not received from the borrower any demonstration of hazard insurance coverage for the property securing the mortgage by the end of the 15-day period beginning on the date the notice under subparagraph (B) was sent by the servicer. (2)   Sufficiency of demonstration A servicer of a federally related mortgage shall accept any reasonable form of written confirmation from a borrower of existing insurance coverage, which shall include the existing insurance policy number along with the identity of, and contact information for, the insurance company or agent, or as otherwise required by the Bureau of Consumer Financial Protection. (3)   Termination of force-placed insurance Within 15 days of the receipt by a servicer of confirmation of a borrower’s existing insurance coverage, the servicer shall—

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Part IV Ch. 36–40 Insurance Part V Ch. 41–48A Zoning, etc. Part VI Ch. 49–56 Taxation Part VII Ch. 57–63 Litigation Part VIII Ch. 64–67 L/T Part IX Ch. 68–72 Condos, etc. Index

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Part III Ch. 23–35 Mortgages

55

Part II Ch. 15–22 Deeds

§ 2606.   Exempted transactions (a)  In general This chapter does not apply to credit transactions involving extensions of credit— (1)   primarily for business, commercial, or agricultural purposes; or (2)   to government or governmental agencies or instrumentalities. (b)  Interpretation In prescribing regulations under section 2617(a) of this title, the Bureau shall ensure that, with respect to subsection (a) of this section, the exemption for credit transactions involving extensions of credit primarily for business, commercial, or agricultural purposes, as provided in subsection (a)(1) of this section shall be the same as the exemption for such credit transactions under section 1603(1) of Title 15. § 2607.   Prohibition against kickbacks and unearned fees (a)  Business referrals No person shall give and no person shall accept any fee, kickback, or thing of value pursuant to any agreement or understanding, oral or otherwise, that business incident to or a part of a real estate settlement service involving a federally related mortgage loan shall be referred to any person. (b)  Splitting charges No person shall give and no person shall accept any portion, split, or percentage of any charge made or received for the rendering of a real estate settlement service in connection with a transaction involving a federally related mortgage loan other than for services actually performed. (c)   Fees, salaries, compensation, or other payments Nothing in this section shall be construed as prohibiting (1) the payment of a fee (A) to attorneys at law for services actually rendered or (B) by a title company to its duly appointed agent for services actually performed in the issuance of a policy of title insurance or (C) by a lender to its duly appointed agent for services actually performed in the making of a loan, (2) the payment to any person of a bona fide salary or compensation or other payment for goods or facilities actually furnished or for services actually performed, (3) payments pursuant to cooperative brokerage and referral arrangements or agreements between real estate agents and brokers, (4) affiliated business arrangements so long as (A) a disclosure is made of the existence of such an arrangement to the person being referred and, in connection with such referral, such person is provided a written estimate of the charge or range of charges generally made by the provider to

Part I Ch. 1–14 Brokers

(A)   terminate the force-placed insurance; and (B)  refund to the consumer all force-placed insurance premiums paid by the borrower during any period during which the borrower’s insurance coverage and the force-placed insurance coverage were each in effect, and any related fees charged to the consumer’s account with respect to the forceplaced insurance during such period. (4)   Clarification with respect to Flood Disaster Protection Act No provision of this section shall be construed as prohibiting a servicer from providing simultaneous or concurrent notice of a lack of flood insurance pursuant to section 4012a(e) of Title 42. (m)   Limitations on force-placed insurance charges All charges, apart from charges subject to State regulation as the business of insurance, related to force-placed insurance imposed on the borrower by or through the servicer shall be bona fide and reasonable.

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§ 2607

SETTLEMENT PROCEDURES

which the person is referred (i) in the case of a face-to-face referral or a referral made in writing or by electronic media, at or before the time of the referral (and compliance with this requirement in such case may be evidenced by a notation in a written, electronic, or similar system of records maintained in the regular course of business); (ii) in the case of a referral made by telephone, within 3 business days after the referral by telephone,1 (and in such case an abbreviated verbal disclosure of the existence of the arrangement and the fact that a written disclosure will be provided within 3 business days shall be made to the person being referred during the telephone referral); or (iii) in the case of a referral by a lender (including a referral by a lender to an affiliated lender), at the time the estimates required under section 2604(c) of this title are provided (notwithstanding clause (i) or (ii)); and any required written receipt of such disclosure (without regard to the manner of the disclosure under clause (i), (ii), or (iii)) may be obtained at the closing or settlement (except that a person making a face-to-face referral who provides the written disclosure at or before the time of the referral shall attempt to obtain any required written receipt of such disclosure at such time and if the person being referred chooses not to acknowledge the receipt of the disclosure at that time, that fact shall be noted in the written, electronic, or similar system of records maintained in the regular course of business by the person making the referral), (B) such person is not required to use any particular provider of settlement services, and (C) the only thing of value that is received from the arrangement, other than the payments permitted under this subsection, is a return on the ownership interest or franchise relationship, or (5) such other payments or classes of payments or other transfers as are specified in regulations prescribed by the Bureau, after consultation with the Attorney General, the Secretary of Veterans Affairs, the Federal Home Loan Bank Board, the Federal Deposit Insurance Corporation, the Board of Governors of the Federal Reserve System, and the Secretary of Agriculture. For purposes of the preceding sentence, the following shall not be considered a violation of clause (4)(B): (i) any arrangement that requires a buyer, borrower, or seller to pay for the services of an attorney, credit reporting agency, or real estate appraiser chosen by the lender to represent the lender’s interest in a real estate transaction, or (ii) any arrangement where an attorney or law firm represents a client in a real estate transaction and issues or arranges for the issuance of a policy of title insurance in the transaction directly as agent or through a separate corporate title insurance agency that may be established by that attorney or law firm and operated as an adjunct to his or its law practice. (d)  Penalties for violations; joint and several liability; treble damages; actions for injunction by Bureau and Secretary and by State officials; costs and attorney fees; construction of State laws (1)   Any person or persons who violate the provisions of this section shall be fined not more than $10,000 or imprisoned for not more than one year, or both. (2)   Any person or persons who violate the prohibitions or limitations of this section shall be jointly and severally liable to the person or persons charged for the settlement service involved in the violation in an amount equal to three times the amount of any charge paid for such settlement service. (3)   No person or persons shall be liable for a violation of the provisions of subsection (c)(4)(A) of this section if such person or persons proves by a preponderance of the evidence that such violation was not intentional and resulted from a bona fide error notwithstanding maintenance of procedures that are reasonably adapted to avoid such error. (4)   The Bureau, the Secretary, or the attorney general or the insurance commissioner of any State may bring an action to enjoin violations of this section. Except, to the extent that a person is subject to the jurisdiction of the Bureau,

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Part V Ch. 41–48A Zoning, etc. Part VI Ch. 49–56 Taxation Part VII Ch. 57–63 Litigation Part VIII Ch. 64–67 L/T Part IX Ch. 68–72 Condos, etc. Index

gtb-parealestate22-all.indb 57

Part IV Ch. 36–40 Insurance

57

Part III Ch. 23–35 Mortgages

§ 2609.  Limitation on requirement of advance deposits in escrow accounts (a)  In general A lender, in connection with a federally related mortgage loan, may not require the borrower or prospective borrower— (1)   to deposit in any escrow account which may be established in connection with such loan for the purpose of assuring payment of taxes, insurance premiums, or other charges with respect to the property, in connection with the settlement, an aggregate sum (for such purpose) in excess of a sum that will be sufficient to pay such taxes, insurance premiums and other charges attributable to the period beginning on the last date on which each such charge would have been paid under the normal lending practice of the lender and local custom, provided that the selection of each such date constitutes prudent lending practice, and ending on the due date of its first full installment payment under the mortgage, plus one-sixth of the estimated total amount of such taxes, insurance premiums and other charges to be paid on dates, as provided above, during the ensuing twelve-month period; or (2)   to deposit in any such escrow account in any month beginning with the first full installment payment under the mortgage a sum (for the purpose of assuring payment of taxes, insurance premiums and other charges with respect to the property) in excess of the sum of (A) one-twelfth of the total amount of the estimated taxes, insurance premiums and other charges which are reasonably anticipated to be paid on dates during the ensuing twelve months which dates are in accordance with the normal lending practice of the lender and local custom, provided that the selection of each such date constitutes prudent lending practice, plus (B) such amount as is necessary to maintain an additional balance in such escrow account not to exceed one-sixth of the estimated total amount of such taxes, insurance premiums and other charges to be paid on dates, as provided above, during the ensuing twelve-month period: Provided, however, That in the event the lender determines there will be or is a deficiency he shall not be prohibited from requiring additional monthly deposits in such escrow account to avoid or eliminate such deficiency. (b)   Notification of shortage in escrow account If the terms of any federally related mortgage loan require the borrower to make payments to the servicer (as the term is defined in section 2605(i) of this title) of the loan for deposit into an escrow account for the purpose of assuring

Part II Ch. 15–22 Deeds

§ 2608.   Title companies; liability of seller (a)   No seller of property that will be purchased with the assistance of a federally related mortgage loan shall require directly or indirectly, as a condition to selling the property, that title insurance covering the property be purchased by the buyer from any particular title company. (b)  Any seller who violates the provisions of subsection (a) of this section shall be liable to the buyer in an amount equal to three times all charges made for such title insurance.

Part I Ch. 1–14 Brokers

the Secretary, or the attorney general or the insurance commissioner of any State, the Bureau shall have primary authority to enforce or administer this section, subject to subtitle B of the Consumer Financial Protection Act of 2010. (5)  In any private action brought pursuant to this subsection, the court may award to the prevailing party the court costs of the action together with reasonable attorneys fees. (6)  No provision of State law or regulation that imposes more stringent limitations on affiliated business arrangements shall be construed as being inconsistent with this section.

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§ 2609

SETTLEMENT PROCEDURES

payment of taxes, insurance premiums, and other charges with respect to the property, the servicer shall notify the borrower not less than annually of any shortage of funds in the escrow account. (c)   Escrow account statements (1)  Initial statement (A)  In general Any servicer that has established an escrow account in connection with a federally related mortgage loan shall submit to the borrower for which the escrow account has been established a statement clearly itemizing the estimated taxes, insurance premiums, and other charges that are reasonably anticipated to be paid from the escrow account during the first 12 months after the establishment of the account and the anticipated dates of such payments. (B)   Time of submission The statement required under subparagraph (A) shall be submitted to the borrower at closing with respect to the property for which the mortgage loan is made or not later than the expiration of the 45-day period beginning on the date of the establishment of the escrow account. (C)   Initial statement at closing Any servicer may submit the statement required under subparagraph (A) to the borrower at closing and may incorporate such statement in the uniform settlement statement required under section 2603 of this title. The Bureau shall issue regulations prescribing any changes necessary to the uniform settlement statement under section 2603 of this title that specify how the statement required under subparagraph (A) of this section shall be incorporated in the uniform settlement statement. (2)  Annual statement (A)  In general Any servicer that has established or continued an escrow account in connection with a federally related mortgage loan shall submit to the borrower for which the escrow account has been established or continued a statement clearly itemizing, for each period described in subparagraph (B) (during which the servicer services the escrow account), the amount of the borrower’s current monthly payment, the portion of the monthly payment being placed in the escrow account, the total amount paid into the escrow account during the period, the total amount paid out of the escrow account during the period for taxes, insurance premiums, and other charges (as separately identified), and the balance in the escrow account at the conclusion of the period. (B)   Time of submission The statement required under subparagraph (A) shall be submitted to the borrower not less than once for each 12-month period, the first such period beginning on the first January 1st that occurs after November 28, 1990, and shall be submitted not more than 30 days after the conclusion of each such 1-year period. (d)  Penalties (1)  In general In the case of each failure to submit a statement to a borrower as required under subsection (c) of this section, the Secretary shall assess to the lender or escrow servicer failing to submit the statement a civil penalty of $50 for

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Part VIII Ch. 64–67 L/T Part IX Ch. 68–72 Condos, etc. Index

gtb-parealestate22-all.indb 59

Part VII Ch. 57–63 Litigation

59

Part VI Ch. 49–56 Taxation

§ 2617.   Authority of Bureau (a)   Issuance of regulations; exemptions The Bureau is authorized to prescribe such rules and regulations, to make such interpretations, and to grant such reasonable exemptions for classes of transactions, as may be necessary to achieve the purposes of this chapter.

Part V Ch. 41–48A Zoning, etc.

§ 2616.   State laws unaffected; inconsistent Federal and State provisions This chapter does not annul, alter, or affect, or exempt any person subject to the provisions of this chapter from complying with, the laws of any State with respect to settlement practices, except to the extent that those laws are inconsistent with any provision of this chapter, and then only to the extent of the inconsistency. The Bureau is authorized to determine whether such inconsistencies exist. The Bureau may not determine that any State law is inconsistent with any provision of this chapter if the Bureau determines that such law gives greater protection to the consumer. In making these determinations the Bureau shall consult with the appropriate Federal agencies.

Part IV Ch. 36–40 Insurance

§ 2615.   Contracts and liens; validity Nothing in this chapter shall affect the validity or enforceability of any sale or contract for the sale of real property or any loan, loan agreement, mortgage, or lien made or arising in connection with a federally related mortgage loan.

Part III Ch. 23–35 Mortgages

§§ 2611 to 2613.  Repealed. Pub.L. 104-208, Div. A, Title II, § 2103(h), Sept. 30, 1996, 110 Stat. 3009-401 § 2614.   Jurisdiction of courts; limitations Any action pursuant to the provisions of section 2605, 2607, or 2608 of this title may be brought in the United States district court or in any other court of competent jurisdiction, for the district in which the property involved is located, or where the violation is alleged to have occurred, within 3 years in the case of a violation of section 2605 of this title and 1 year in the case of a violation of section 2607 or 2608 of this title from the date of the occurrence of the violation, except that actions brought by the Bureau, the Secretary, the Attorney General of any State, or the insurance commissioner of any State may be brought within 3 years from the date of the occurrence of the violation.

Part II Ch. 15–22 Deeds

§ 2610.  Prohibition of fees for preparation of truth-in-lending, uniform settlement, and escrow account statements No fee shall be imposed or charge made upon any other person (as a part of settlement costs or otherwise) by a lender in connection with a federally related mortgage loan made by it (or a loan for the purchase of a mobile home), or by a servicer (as the term is defined under section 2605(i) of this title), for or on account of the preparation and submission by such lender or servicer of the statement or statements required (in connection with such loan) by sections 2603 and 2609(c) of this title or by the Truth in Lending Act [15 U.S.C.A. § 1601 et seq.].

Part I Ch. 1–14 Brokers

each such failure, but the total amount imposed on such lender or escrow servicer for all such failures during any 12-month period referred to in subsection (b) of this section may not exceed $100,000. (2)  Intentional violations If any failure to which paragraph (1) applies is due to intentional disregard of the requirement to submit the statement, then, with respect to such failure— (A)   the penalty imposed under paragraph (1) shall be $100; and (B)   in the case of any penalty determined under subparagraph (A), the $100,000 limitation under paragraph (1) shall not apply.

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§ 2617

SETTLEMENT PROCEDURES

(b)   Liability for acts done in good faith in conformity with rule, regulation, or interpretation No provision of this chapter or the laws of any State imposing any liability shall apply to any act done or omitted in good faith in conformity with any rule, regulation, or interpretation thereof by the Bureau or the Attorney General, notwithstanding that after such act or omission has occurred, such rule, regulation, or interpretation is amended, rescinded, or determined by judicial or other authority to be invalid for any reason. (c)   Investigations; hearings; failure to obey order; contempt (1)   The Secretary may investigate any facts, conditions, practices, or matters that may be deemed necessary or proper to aid in the enforcement of the provisions of this chapter, in prescribing of rules and regulations thereunder, or in securing information to serve as a basis for recommending further legislation concerning real estate settlement practices. To aid in the investigations, the Bureau is authorized to hold such hearings, administer such oaths, and require by subpena the attendance and testimony of such witnesses and production of such documents as the Bureau deems advisable. (2)   Any district court of the United States within the jurisdiction of which an inquiry is carried on may, in the case of contumacy or refusal to obey a subpena of the Bureau issued under this section, issue an order requiring compliance therewith; and any failure to obey such order of the court may be punished by such court as a contempt thereof. (d)   Delay of effectiveness of recent final regulation relating to payments to employees (1)  In general The amendment to part 3500 of Title 24 of the Code of Federal Regulations contained in the final regulation prescribed by the Secretary and published in the Federal Register on June 7, 1996, which will, as of the effective date of such amendment— (A)   eliminate the exemption for payments by an employer to employees of such employer for referral activities which is currently codified as section 3500.14(g)(1)(vii) of such Title 24; and (B)   replace such exemption with a more limited exemption in new clauses (vii), (viii), and (ix) of section 3500.14 of such Title 24, shall not take effect before July 31, 1997. (2)   Continuation of prior rule The regulation codified as section 3500.14(g)(1)(vii) of Title 24 of the Code of Federal Regulations, relating to employer-employee payments, as in effect on May 1, 1996, shall remain in effect until the date the amendment referred to in paragraph (1) takes effect in accordance with such paragraph. (3)   Public notice of effective date The Secretary shall provide public notice of the date on which the amendment referred to in paragraph (1) will take effect in accordance with such paragraph not less than 90 days and not more than 180 days before such effective date. Regulations for Real Estate Settlement Procedures (Regulation X), see 12 CFR § 1024.1 et seq. and 24 CFR § 3500.1 et seq.

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Table of Contents

CHAPTER 5

Part I Ch. 1–14 Brokers

RESIDENTIAL REAL ESTATE TRANSFERS LAW 68 Pa.C.S. § 7101 to 68 Pa.C.S. § 7103

Sec.

Part II Ch. 15–22 Deeds

§ 7101. Short title of part § 7102. Definitions § 7103. Application of part

Part III Ch. 23–35 Mortgages Part IV Ch. 36–40 Insurance Part V Ch. 41–48A Zoning, etc. Part VI Ch. 49–56 Taxation Part VII Ch. 57–63 Litigation Part VIII Ch. 64–67 L/T Part IX Ch. 68–72 Condos, etc.

§ 7101.  Short title of part This part shall be known and may be cited as the Residential Real Estate Transfers Law. § 7102.  Definitions Subject to additional definitions contained in subsequent provisions of this part which are applicable to specific provisions of this part, the following words and phrases when used in this part shall have the meanings given to them in this section unless the context clearly indicates otherwise: “Agent.” Any broker, associate broker or salesperson, as defined in the act of February 19, 1980 (P.L. 15, No. 9),1 known as the Real Estate Licensing and Registration Act. “Agreement of transfer.” A contract between a buyer and seller setting forth the terms of a residential real estate transfer. “Buyer.” Any person receiving any estate or interest in real property in a transfer subject to this part. “Commission.” The State Real Estate Commission. “Final settlement.” The time at which the buyer and seller have signed and delivered all papers and consideration necessary to convey title to the estate or interest in real property being conveyed. “Material defect.” A problem with a residential real property or any portion of it that would have a significant adverse impact on the value of the property or that involves an unreasonable risk to people on the property. The fact that a structural element, system or subsystem is near, at or beyond the end of the normal useful life of such a structural element, system or subsystem is not by itself a material defect. “Seller.” Any person transferring any estate or interest in residential real property in a transfer subject to this part. “Storm water facility.” A basin, pond, ditch, drain, swale, culvert, pipe or other manmade feature of land which was constructed in accordance with Federal, State or local law or regulation to temporarily or permanently convey or manage storm water. § 7103.  Application of part (a)  General rule.—This part shall apply to and the term “residential real estate transfer” when used in this part shall mean a transfer of any interest in real property located within this Commonwealth, other than a transfer described in subsection (b), that consists of not less than one nor more than four residential dwelling units, whether by sale, exchange, installment sales contract, lease with an option to purchase, grant or transfer of unit in a residential condominium or cooperative.

1. 63 P.S. § 455.101 et seq.

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Index

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§ 7103

REAL ESTATE TRANSFERS LAW

(b)  Exceptions.—This part shall not apply to a transfer: (1)   Pursuant to court order, including, but not limited to, transfers ordered by a probate court in the administration of an estate, transfers pursuant to a writ of execution, transfers by a trustee in bankruptcy, transfers by eminent domain and condemnation and transfers resulting from a decree for specific performance. (2)   To a mortgagee by a mortgagor or successor in interest who is in default; to a beneficiary of a deed of trust by a trustee or successor in interest who is in default; by any foreclosure sale after default in an obligation secured by a mortgage; by a sale under a power of sale or any foreclosure sale under a decree of foreclosure after default in an obligation secured by a deed of trust or secured by any other instrument containing a power of sale; or by a mortgagee or a beneficiary under a deed of trust who has acquired the real property at a sale conducted pursuant to a power of sale under a mortgage or deed of trust or a sale pursuant to a decree of foreclosure or who has acquired the real property by a deed in lieu of foreclosure. (3)   From one co-owner to one or more other co-owners. (4)   Made to a spouse or to a person or persons in the lineal line of consanguinity of one or more of the transferors. (5)   Between spouses resulting from a decree of dissolution of marriage or a decree of legal separation or from a property settlement agreement incidental to the decree. (6)   By a corporation, partnership or other association to its shareholders, partners or other equity owners in connection with the liquidation of the corporation, partnership or other association. (7)   Of a property to be converted by the buyer into a use other than residential use or to be demolished. (8)   Of unimproved real property.

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CHAPTER 6 68 Pa.C.S. § 7301 to 68 Pa.C.S. § 7315

Sec.

(2)   Transfers of new residential construction that has not been previously occupied when: (i)   the buyer has received a one-year or longer written warranty covering such construction;

(iii)   a certificate of occupancy or a certificate of code compliance has been issued for the dwelling.

Index

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Part IX Ch. 68–72 Condos, etc.

63

Part VIII Ch. 64–67 L/T

(b)  Limitations in the case of condominiums or cooperatives.—Any seller of a unit in a condominium created under Subpart B of Part II (relating to condominiums) or a similar provision of prior law or a cooperative as defined in section 4103 (relating to definitions) shall be obligated to make disclosures under this chapter only with respect to the seller’s own unit and shall not be obligated by this chapter to make any disclosure with respect to any common elements or common facilities of the condominium or cooperative. The provisions of section 3407 (relating to resales of units) shall control disclosures a seller is required to make concerning common elements in a condominium, and section 4409 (relating to resales of cooperative interests) shall control disclosures a seller is required to make concerning common elements in a cooperative.

Part VII Ch. 57–63 Litigation

(ii)  the dwelling has been inspected for compliance with the applicable building code or, if there is no applicable code, for compliance with a nationally recognized model building code; and

Part VI Ch. 49–56 Taxation

(1)   Transfers by a fiduciary in the course of the administration of a decedent’s estate, guardianship, conservatorship or trust.

Part V Ch. 41–48A Zoning, etc.

§ 7302.  Application of chapter (a)  General rule.—This chapter shall apply to all residential real estate transfers except the following:

Part IV Ch. 36–40 Insurance

§ 7301.  Short title of chapter This chapter shall be known and may be cited as the Real Estate Seller Disclosure Law.

Part III Ch. 23–35 Mortgages

7301. Short title of chapter 7302. Application of chapter 7303. Disclosure of material defects 7304. Disclosure form 7305. Delivery of disclosure form 7306. Information unavailable to seller 7307. Information subsequently rendered inaccurate 7308. Affirmative duty of seller 7309. Nonliability of seller 7310. Nonliability of agent 7311. Failure to comply 7312. Amendment of disclosure 7313. Specification of items for disclosure no limitation on other disclosure obligations 7314. Cause of action 7315. Preemption of local requirements

Part II Ch. 15–22 Deeds

§ § § § § § § § § § § § § § §

Part I Ch. 1–14 Brokers

REAL ESTATE SELLER DISCLOSURE LAW

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§ 7303

SELLER DISCLOSURE LAW

§ 7303.  Disclosure of material defects Any seller who intends to transfer any interest in real property shall disclose to the buyer any material defects with the property known to the seller by completing all applicable items in a property disclosure statement which satisfies the requirements of section 7304 (relating to disclosure form). A signed and dated copy of the property disclosure statement shall be delivered to the buyer in accordance with section 7305 (relating to delivery of disclosure form) prior to the signing of an agreement of transfer by the seller and buyer with respect to the property. § 7304.  Disclosure form (a)  General rule.—A form of property disclosure statement that satisfies the requirements of this chapter shall be promulgated by the State Real Estate Commission. Nothing in this chapter shall preclude a seller from using a form of property disclosure statement that contains additional provisions that require greater specificity or that call for the disclosure of the condition or existence of other features of the property. (b)  Contents of property disclosure statement.—The form of property disclosure statement promulgated by the State Real Estate Commission shall call for disclosures with respect to all of the following subjects: (1)   Seller’s expertise in contracting, engineering, architecture or other areas related to the construction and conditions of the property and its improvements. (2)   When the property was last occupied by the seller. (3)  Roof. (4)   Basements and crawl spaces. (5)   Termites/wood destroying insects, dry rot and pests. (6)  Structural problems. (7)   Additions, remodeling and structural changes to the property. (8)   Water and sewage systems or service. (9)  Plumbing system. (10)   Heating and air conditioning. (11)  Electrical system. (12)   Other equipment and appliances included in the sale. (13)   Soils, drainage, boundaries and sinkholes. (14)   Presence of hazardous substances. (15)   Condominiums and other homeowners associations. (16)   Legal issues affecting title or that would interfere with use and enjoyment of the property. (17)   Condition, if known, and location of all storm water facilities, including a statement disclosing whether ongoing maintenance of the storm water facilities is the responsibility of the property owner or the responsibility of another person or entity. (c)  Transitional rule.—Until a form of property disclosure statement has been promulgated by the commission, the form prescribed under the act of July 2, 1996 (P.L. 500, No. 84),1 known as the Real Estate Seller Disclosure Act, shall be deemed to be the form contemplated under subsection (b). 1. 68 P.S. § 1021 et seq. (repealed).

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Table of Contents

PART I

§ 7305.  Delivery of disclosure form

§ 7306.  Information unavailable to seller

§ 7307.  Information subsequently rendered inaccurate

§ 7308.  Affirmative duty of seller

§ 7309.  Nonliability of seller

(2)   the error, inaccuracy or omission was based on a reasonable belief that a material defect or other matter not disclosed had been corrected; or

Part VI Ch. 49–56 Taxation

(3)  the error, inaccuracy or omission was based on information provided by a public agency, home inspector, contractor or person registered or licensed under an act referred to in section 7503(a) (relating to relationship to other laws) about matters within the scope of the agency’s jurisdiction or such other person’s occupation and the seller had no knowledge of the error, inaccuracy or omission.

Part VII Ch. 57–63 Litigation

(b)   Delivery of information by public agency.—The delivery of any information required to be disclosed by this chapter to a prospective buyer by a public agency or other person providing information required to be disclosed under this chapter shall be deemed to comply with the requirements of this chapter and shall relieve the seller or the agent of the seller from any further duty under this chapter with respect to that item of information.

Part VIII Ch. 64–67 L/T

(a)  General rule.—A seller shall not be liable for any error, inaccuracy or omission of any information delivered pursuant to this chapter if:

Part V Ch. 41–48A Zoning, etc.

The seller is not obligated by this chapter to make any specific investigation or inquiry in an effort to complete the property disclosure statement. In completing the property disclosure statement, the seller shall not make any representations that the seller or the agent for the seller knows or has reason to know are false, deceptive or misleading and shall not fail to disclose a known material defect.

Part IV Ch. 36–40 Insurance

If information disclosed in accordance with this chapter is subsequently rendered inaccurate prior to final settlement as a result of any act, occurrence or agreement subsequent to the delivery of the required disclosures, the seller shall notify the buyer of the inaccuracy.

Part III Ch. 23–35 Mortgages

If at the time the disclosures are required to be made, an item of information required to be disclosed is unknown or not available to the seller, the seller may make a disclosure based on the best information available to the seller.

Part II Ch. 15–22 Deeds

(b)   Parties to whom delivered.—For purposes of this chapter, delivery to one prospective buyer or buyer’s agent is deemed delivery to all persons intending to take title as co-tenants, joint tenants or as a tenant by the entireties with the buyer. Receipt may be acknowledged on the statement, in an agreement of transfer for the residential real property or shown in any other verifiable manner.

Part I Ch. 1–14 Brokers

(a)  Method of delivery.—The seller shall deliver the property disclosure statement to the buyer by personal delivery; first class mail; certified mail, return receipt requested; or facsimile transmission to the buyer or the buyer’s agent.

(1)   the seller had no knowledge of the error, inaccuracy or omission;

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65

Part IX Ch. 68–72 Condos, etc.

(c)  Report by expert.—The delivery of a report or opinion prepared by a home inspector, contractor or person registered or licensed under an act referred to in section 7503(a) dealing with matters within the scope of the person’s registration, license or expertise shall be sufficient compliance for application of the exemption provided under subsection (a)(3) if the information is provided to the prospective buyer in writing.

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§ 7310

SELLER DISCLOSURE LAW

§ 7310.  Nonliability of agent An agent of a seller or a buyer shall not be liable for any violation of this chapter unless the agent had actual knowledge of a material defect that was not disclosed to the buyer or of a misrepresentation relating to a material defect. § 7311.  Failure to comply (a)  General rule.—A residential real estate transfer subject to this chapter shall not be invalidated solely because of the failure of any person to comply with any provision of this chapter. However, any person who willfully or negligently violates or fails to perform any duty prescribed by any provision of this chapter shall be liable in the amount of actual damages suffered by the buyer as a result of a violation of this chapter. This subsection shall not be construed so as to restrict or expand the authority of a court to impose punitive damages or apply other remedies applicable under any other provision of law. (b)   Statute of limitations.—An action for damages as a result of a violation of this chapter must be commenced within two years after the date of final settlement. § 7312.  Amendment of disclosure Any disclosure made pursuant to this chapter may be amended in writing by the seller prior to the signing of an agreement of transfer by the seller and buyer. § 7313.  Specification of items for disclosure no limitation on other disclosure obligations (a)  General rule.—The specification of items for disclosure in this chapter or in any form of property disclosure statement promulgated by the State Real Estate Commission does not limit or abridge any obligation for disclosure created by any other provision of law or that may exist in order to avoid fraud, misrepresentation or deceit in the transaction. (b)   Responsibility of licensee.—Nothing in this chapter shall abrogate or diminish the responsibility of a licensee under the act of February 19, 1980 (P.L. 15, No. 9),2 known as the Real Estate Licensing and Registration Act. (c)  Duty to provide form.—An agent representing a seller must advise a seller of the seller’s responsibilities under this chapter and must provide the seller with a copy of the form of property disclosure statement. § 7314.  Cause of action A buyer shall not have a cause of action under this chapter against the seller or the agent for either or both of the seller or the buyer for: (1)   material defects to the property disclosed to the buyer prior to the signing of an agreement of transfer by the seller and buyer; (2)   material defects that develop after the signing of the agreement of transfer by the seller and buyer; or (3)   material defects that occur after final settlement. § 7315.  Preemption of local requirements (a)  General rule.—Except as provided in subsection (b), a municipality or local authority shall not have the power to mandate that: (1)  a seller or an agent of either or both the seller and the buyer make any particular disclosures to the buyer in connection with a residential real estate transfer; or

2. 63 P.S. § 455.101 et seq.

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Part I Ch. 1–14 Brokers Part II Ch. 15–22 Deeds Part III Ch. 23–35 Mortgages

(2)  provisions on any particular subject be included in an agreement of transfer. (b)  Exception.—Subsection (a) shall not apply to an ordinance or regulation adopted by a municipality or local authority before the effective date of this section, and such an ordinance or regulation shall continue in full force and effect, except that the municipality or local authority shall not have the power after that date to amend the ordinance or regulation in a manner that: (1)   imposes new or expanded disclosure requirements; (2)   increases the scope of any provision that must be included in an agreement of transfer; or (3)   imposes new requirements on any agent, buyer or seller involved in a residential real estate transfer.

Table of Contents

PART I

Part IV Ch. 36–40 Insurance Part V Ch. 41–48A Zoning, etc. Part VI Ch. 49–56 Taxation Part VII Ch. 57–63 Litigation Part VIII Ch. 64–67 L/T Part IX Ch. 68–72 Condos, etc.

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CHAPTER 7 HOME INSPECTION LAW 68 Pa.C.S. § 7501 to 68 Pa.C.S. § 7513

Sec. § § § § § § § § § § § § §

7501. Short title of chapter 7502. Definitions and index of definitions 7503. Relationship to other laws 7504. Duty of care of home inspectors 7505. Consumer remedies 7506. Required contractual provision regarding home inspections 7507. Contracts with home inspectors 7508. Home inspection reports 7509. Liability insurance 7510. Reliance by buyer 7511. Penalties 7512. Statute of limitations 7513. Engineers and architects

§ 7501.  Short title of chapter This chapter shall be known and may be cited as the Home Inspection Law. § 7502.  Definitions and index of definitions (a)  Definitions.—The following words and phrases when used in this chapter shall have the meanings given to them in this section unless the context clearly indicates otherwise: “Home inspection.” A noninvasive visual examination of some combination of the mechanical, electrical or plumbing systems or the structural and essential components of a residential dwelling designed to identify material defects in those systems and components and performed for a fee in connection with or preparation for a proposed or possible residential real estate transfer. The term also includes any consultation regarding the property that is represented to be a home inspection or that is described by any confusingly similar term. The term does not include an examination of a single system or component of a residential dwelling such as, for example, its electrical or plumbing system or its roof. The term also does not include an examination that is limited to inspection for or of one or more of the following: wood destroying insects, underground tanks and wells, septic systems, swimming pools and spas, alarm systems, air and water quality, tennis courts and playground equipment, pollutants, toxic chemicals and environmental hazards. “Home inspection report.” A written report on the results of a home inspection. “Home inspector.” An individual who performs a home inspection. “National home inspectors association.” Any national association of home inspectors that: (1)   Is operated on a not-for-profit basis and is not operated as a franchise. (2)   Has members in more than ten states. (3)   Requires that a person may not become a full member unless the person has performed or participated in more than 100 home inspections and has passed a recognized or accredited examination testing knowledge of the proper procedures for conducting a home inspection.

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Ch. 7

Part IV Ch. 36–40 Insurance Part V Ch. 41–48A Zoning, etc. Part VI Ch. 49–56 Taxation Part VII Ch. 57–63 Litigation Part VIII Ch. 64–67 L/T Part IX Ch. 68–72 Condos, etc. Index

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Part III Ch. 23–35 Mortgages

63 P.S. § 148 et seq. 35 P.S. § 750.1 et seq. 3 P.S. § 111.21 et seq. 63 P.S. § 34.1 et seq. 63 P.S. § 2001 et seq. 63 P.S. § 457.1 et seq. 63 P.S. § 455.101 et seq.

Part II Ch. 15–22 Deeds

1. 2. 3. 4. 5. 6. 7.

Part I Ch. 1–14 Brokers

(4)   Requires that its members comply with a code of conduct and attend continuing professional education classes as an ongoing condition of membership. (b)  Index of other definitions.—The following is a nonexclusive list of other definitions applying to this chapter and the sections in which they appear: “Agent.” Section 7102 (relating to definitions). “Agreement of transfer.” Section 7102 (relating to definitions). “Buyer.” Section 7102 (relating to definitions). “Material defect.” Section 7102 (relating to definitions). “Residential real estate transfer.” Section 7103 (relating to application of part). “Seller.” Section 7102 (relating to definitions). § 7503.  Relationship to other laws (a)  General rule.—Nothing in this chapter shall be construed to allow a home inspector who is not registered or licensed under one or more of the following laws to perform any activity that would constitute the practice of the profession regulated by that law: (1)   The act of May 23, 1945 (P.L. 913, No. 367),1 known as the Engineer, Land Surveyor and Geologist Registration Law. (2)   The act of January 24, 1966 (1965 P.L. 1535, No. 537),2 known as the Pennsylvania Sewage Facilities Act. (3)   The act of March 1, 1974 (P.L. 90, No. 24),3 known as the Pennsylvania Pesticide Control Act of 1973. (4)   The act of December 14, 1982 (P.L. 1227, No. 281),4 known as the Architects Licensure Law. (5)   The act of July 9, 1987 (P.L. 238, No. 43),5 known as the Radon Certification Act. (6)   The act of July 10, 1990 (P.L. 404, No. 98),6 known as the Real Estate Appraisers Certification Act. (b)  Exclusions.—This chapter shall not: (1)  Apply to a person registered or licensed under an act referred to in subsection (a) when acting pursuant to his registration or license. (2)   Apply to an officer or employee of a municipality or local authority when acting in his official capacity. (3)   Affect the obligations or immunities of a person licensed under the act of February 19, 1980 (P.L. 15, No. 9),7 known as the Real Estate Licensing and Registration Act, that are imposed or provided by that act or Chapter 73 (relating to seller disclosures) when the person is acting pursuant to his license. (4)   Affect the obligations or immunities of a person certified under the Real Estate Appraisers Certification Act when the person is acting pursuant to the person’s license.

Table of Contents

PART I

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§ 7504

HOME INSPECTION LAW

§ 7504.  Duty of care of home inspectors (a)  General rule.—It is the duty of a home inspector to conduct a home inspection with the degree of care that a reasonably prudent home inspector would exercise. (b)  Standard.—In ascertaining the degree of care that would be exercised by a reasonably prudent home inspector, the court shall consider the standards of practice and codes of ethics of national home inspector associations. § 7505.  Consumer remedies (a)  General rule.—The performance of a home inspection is a service that is subject to the act of December 17, 1968 (P.L. 1224, No. 387),8 known as the Unfair Trade Practices and Consumer Protection Law. (b)  Prohibited acts.—Any of the following acts engaged in by a home inspector, an employer of a home inspector or another business or person that controls or has a financial interest in the employer of a home inspector shall be deemed to be an unfair or deceptive act or practice as defined by section 2(4)(i) through (xxi) of the Unfair Trade Practices and Consumer Protection Law: (1)   Performing or offering to perform for an additional fee any repairs to a structure with respect to which the home inspector, the employer of the home inspector or such other business or person has prepared a home inspection report within the preceding 12 months, except that this paragraph shall not apply to remediation for radon or wood destroying insects. (2)   Inspecting for a fee any property in which the home inspector, the employer of the home inspector or such other business or person has any financial interest or any interest in the transfer of the property, including without limitation receipt of a commission as an agent, unless the financial interest or interest in the transfer of the property is disclosed in writing to the buyer before the home inspection is performed and the buyer signs an acknowledgment of receipt of the disclosure. (3)  Offering or delivering any commission, referral fee or kickback to the seller of the inspected property or to an agent for either or both of the seller and the buyer for the referral of any business to the home inspector, the employer of the home inspector or such other business or person. (4)   Accepting an engagement to perform a home inspection or to prepare a home inspection report in which the employment itself or the fee payable for the inspection is contingent upon the conclusions in the report, preestablished or prescribed findings or the closing of the transaction. (c)  Exception.—A home warranty company that is affiliated with or retains the home inspector does not violate subsection (b) if the home warranty company performs repairs pursuant to claims made under a home warranty contract. (d)  Remedies.—In addition to any other remedies available under the Unfair Trade Practices and Consumer Protection Law or other applicable provision of law, the owner of a property on which repairs are performed in violation of subsection (b)(1) shall be entitled to a full refund of any moneys paid for those repairs, and any promissory note or other obligation to pay given to the person performing those repairs shall be void. § 7506.  Required contractual provision regarding home inspections Except as provided in this section, a provision of an agreement of transfer regarding the right of the buyer to obtain a home inspection report and providing for the consequences, if any, shall provide that the home inspection be performed by a full member in good standing of a national home inspection association in 8. 73 P.S. § 201-1 et seq.

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Part VI Ch. 49–56 Taxation Part VII Ch. 57–63 Litigation Part VIII Ch. 64–67 L/T Part IX Ch. 68–72 Condos, etc. Index

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Part V Ch. 41–48A Zoning, etc.

71

Part IV Ch. 36–40 Insurance

9. 63 P.S. § 148 et seq. 10. 63 P.S. § 34.1 et seq.

Part III Ch. 23–35 Mortgages

§ 7508.  Home inspection reports (a)  Required contents.—A home inspection report must be in writing and shall include: (1)   A description of the scope of the inspection, including without limitation an identification of the structural elements, systems and subsystems covered by the report. (2)   A description of any material defects noted during the inspection, along with any recommendation that certain experts be retained to determine the extent of the defects and any corrective action that should be taken. A “material defect” as defined in section 7102 (relating to definitions) that poses an unreasonable risk to people on the property shall be conspicuously identified as such. (3)   The following statements, set forth conspicuously: “A home inspection is intended to assist in evaluation of the overall condition of the dwelling. The inspection is based on observation of the visible and apparent condition of the structure and its components on the date of inspection.” “The results of this home inspection are not intended to make any representation regarding the presence or absence of latent or concealed defects that are not reasonably ascertainable in a competently performed home inspection. No warranty or guaranty is expressed or implied.” “If the person conducting your home inspection is not a licensed structural engineer or other professional whose license authorizes the rendering of an opinion as to the structural integrity of a building or its other component parts, you may be advised to seek a professional opinion as to any defects or concerns mentioned in the report.”

Part II Ch. 15–22 Deeds

§ 7507.  Contracts with home inspectors (a)  Prohibited provisions.—The following types of provisions in a contract with a home inspector for the performance of a home inspection are contrary to public policy and shall be void: (1)   a limitation on the liability of the home inspector for gross negligence or willful misconduct; (2)   a waiver or modification of any provision of this chapter. (b)   Scope of inspection.—The scope of a home inspection, the services to be performed and the systems and conditions to be inspected or excluded from inspection may be defined by a contract between the home inspector and the client.

Part I Ch. 1–14 Brokers

accordance with the ethical standards and code of conduct or practice of that association, provided that a home inspection performed by a person who has not attained full membership in a national home inspection association satisfies the requirements of this section if the person is: (1)   licensed or registered as a professional engineer under the act of May 23, 1945 (P.L. 913, No. 367),9 known as the Engineer, Land Surveyor and Geologist Registration Law; (2)   licensed or registered under the act of December 14, 1982 (P.L. 1227, No. 281),10 known as the Architects Licensure Law; or (3)   supervised by a full member in good standing of a national home inspection association who agrees to be responsible for the home inspection report by signing the report.

Table of Contents

PART I

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§ 7509

HOME INSPECTION LAW

“This home inspection report is not to be construed as an appraisal and may not be used as such for any purpose.” (b)  Confidentiality.—Except as otherwise required by law, a home inspector shall not deliver a home inspection report to any person other than the client of the home inspector without the client’s consent. The seller shall have the right, upon request, to receive without charge a copy of a home inspection report from the person for whom it was prepared. (c)  Repair estimates prohibited.—A home inspector shall not express either orally or in writing an estimate of the cost to repair any defect found during a home inspection, except that such an estimate may be included in a home inspection report if: (1)   the report identifies the source of the estimate; (2)   the estimate is stated as a range of costs; and (3)   the report states that the parties should consider obtaining an estimate from a contractor who performs the type of repair involved. § 7509.  Liability insurance (a)  Required insurance.—A home inspector shall maintain insurance against errors and omissions in the performance of a home inspection and general liability, with coverages of not less than $100,000 per occurrence and $500,000 in the aggregate and with deductibles of not more than $2,500. (b)  Term.— (1)   Except as set forth in paragraph (2), a home inspector shall maintain insurance under subsection (a) for at least one year after the latest home inspection report the home inspector delivers. (2)  Paragraph (1) shall not apply to a home inspection report that was delivered prior to the effective date of this section. § 7510.  Reliance by buyer A buyer shall be entitled to rely in good faith, without independent investigation, on a written representation by a home inspector that the home inspector is: (1)   licensed or registered as a professional engineer under the act of May 23, 1945 (P.L. 913, No. 367),11 known as the Engineer, Land Surveyor and Geologist Registration Law; (2)   licensed or registered under the act of December 14, 1982 (P.L. 1227, No. 281),12 known as the Architects Licensure Law; or (3)   a full member in good standing of a national home inspection association. § 7511.  Penalties (a)  Criminal penalty.—A person who violates section 7509 (relating to liability insurance) or who provides a false representation under section 7510 (relating to reliance by buyer) commits a summary offense and, upon conviction thereof for a first offense, shall be sentenced to pay a fine not exceeding $500 or to imprisonment for not more than three months, or both, and for a second or subsequent offense commits a misdemeanor of the third degree and, upon conviction thereof, shall be sentenced to pay a fine of not less than $2,000 but not more than $5,000 or to imprisonment for not less than one year but not more than two years, or both. (b)  Fine.—A person who violates any provision of section 7508 (relating to home inspection reports) shall, upon conviction in a summary proceeding before a magisterial district judge, be sentenced to pay a fine not exceeding $500. 11. 63 P.S. § 148 et seq. 12. 63 P.S. § 34.1 et seq.

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Part I Ch. 1–14 Brokers Part II Ch. 15–22 Deeds Part III Ch. 23–35 Mortgages

§ 7512.  Statute of limitations An action to recover damages arising from a home inspection report must be commenced within one year after the date the report is delivered. § 7513.  Engineers and architects Notwithstanding section 7503(b)(1) (relating to relationship to other laws), the following sections: 7505 (relating to consumer remedies), 7507(a) (1) and (b) (relating to contracts with home inspectors), 7508 (relating to home inspection reports) and 7509 (relating to liability insurance) shall apply to a person licensed or registered as a professional engineer under the act of May 23, 1945 (P.L. 913, No. 367),13 known as the Engineer, Land Surveyor and Geologist Registration Law, or a person licensed or registered under the act of December 14, 1982 (P.L. 1227, No. 281),14 known as the Architects Licensure Law, when performing a home inspection.

Table of Contents

PART I

Part IV Ch. 36–40 Insurance Part V Ch. 41–48A Zoning, etc. Part VI Ch. 49–56 Taxation Part VII Ch. 57–63 Litigation Part VIII Ch. 64–67 L/T Part IX Ch. 68–72 Condos, etc.

13. 63 P.S. § 148 et seq. 14. 63 P.S. § 34.1 et seq.

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Index

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CHAPTER 8 INSTALLMENT LAND CONTRACT LAW 68 P.S. § 901 to 68 P.S. § 911

Sec. § § § § § § § § § § §

1. Short title 2. Findings and declaration of policy 3. Definitions; application of act 4. Notice to terminate contract upon purchaser’s default 5. Seller’s remedies 6. Action maintainable by defaulting purchaser 7. Implied covenants of the seller 8. Allocation of monthly payments 9. Existing remedies of purchaser 10. Incorporation into contracts 11. Effective date

§ 1.  Short title This act shall be known and may be cited as the “Installment Land Contract Law.” § 2.  Findings and declaration of policy It is hereby determined and declared as a matter of legislative finding that: (1)  Since installment contracts are executory in nature and cover rights and obligations over an extended period of time prior to final settlement, it is deemed advisable to clarify and define the nature of the contract and the rights and obligations of both parties. (2)   It is the intent of this act to provide for an agreement that will be fair and equitable for both buyer and seller and will protect the buyer from unreasonable provisions pertaining to installment payments and to define what constitutes default and to provide remedies for the same and provide proper provisions for final settlement and delivery of good title to the purchaser. (3)  By reason of the fact that the installment sales agreement is executory in nature under its terms and final settlement is not contemplated for an extended period of time, the buyer is entitled to have full information and disclosure of terms of his agreement, the status of his account, the balance due on the purchase price and a statement of the application of his monthly installment with the proper itemization of what constitutes principal payments and carrying charges during the existence of the agreement. § 3.  Definitions; application of act (a)   As used in this act: (1)  “Installment land contract” includes every executory contract for the purchase and sale of a dwelling situate in any city of the first class or county of the second class whereby the purchaser is obligated to make six or more installment payments to the seller after the execution of the contract and before the time appointed for the conveyance of title to the dwelling. (2)  “Dwelling” means a building or structure situate in any city of the first class or county of the second class which is wholly or principally used for residential purposes.

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Ch. 8

(c)   This act shall not apply to installment land contracts entered into in which the Administrator of Veteran Affairs, an officer of the United States, is the seller.

Part VII Ch. 57–63 Litigation Part VIII Ch. 64–67 L/T Part IX Ch. 68–72 Condos, etc. Index

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Part VI Ch. 49–56 Taxation

75

Part V Ch. 41–48A Zoning, etc.

§ 5.  Seller’s remedies (a)   In the event of any default by the purchaser in the payment of any installment, any assessment for public improvements or any sum owed by the purchaser because of repairs made by the seller and payable by the purchaser pursuant to the terms of the contract, the remedies of the seller shall be limited to either: (1)   Termination of the contract in accordance with the provisions of section 4 of this act, or (2)   An action for the recovery of the installment, assessment or the expenditure for repairs made by the seller. (b)   Any seller who has pursued the remedies set forth in clause (2) above may at any subsequent time, unless the purchaser shall have cured any subsequently declared default, terminate the contract in accordance with the provisions of section 4 of this act. (c)  In any action by a seller, pursuant to subsection (a), clause (2), above, recovery shall be limited to all installments and assessments for public improvements due prior to the surrender of the premises by the purchaser, and whenever the purchaser is responsible for repairs, the value of the repairs made by the seller prior to the surrender and the cost of any actual repairs made by the seller, subsequent to the surrender of the premises, which repairs become necessary by reason of damage done by the buyer or the vandalism of the premises prior to the actual delivery of possession to the seller. (d)   The seller upon termination of any installment land contract, may maintain an action for damages for breach of the contract as hereinafter provided, or an action for the recovery of possession of the property as now provided by law, or both. (e)   In any action by the seller to recover damages for a breach of any installment land contract, the seller shall be entitled to recover damages for all losses resulting from the breach, including but not limited to, the excess of the contract price over the market price at the time of breach, the unpaid installment payment due prior to the surrender of the dwelling by the purchaser, the value

Part IV Ch. 36–40 Insurance

(c)  The date of termination specified in the notice shall in no case be less than thirty days after the date upon which service of the notice is made upon the purchaser, in the manner hereinbefore provided, where default is because of failure to make payment when due. Whenever default arises because of purchaser’s failure to make repairs, the notice shall be no less than sixty days.

Part III Ch. 23–35 Mortgages

(b)   The notice shall specify the nature of the default and whenever the default arises out of the purchaser’s failure to keep the premises in good repair pursuant to the provisions of the installment land contract, the notice shall contain a reasonably specific statement of the items in disrepair.

Part II Ch. 15–22 Deeds

§ 4.  Notice to terminate contract upon purchaser’s default (a)   Whenever default is made in the terms or conditions of any installment land contract by reason of which default the seller has the right to terminate the contract, the seller shall as a condition precedent to the exercise of the right serve upon the purchaser a written notice of termination. The notice shall be served personally by registered mail or by certified mail sent to the last known address of the purchaser.

Part I Ch. 1–14 Brokers

(b)   This act shall apply only to installment land contracts entered into after the effective date of this act and shall apply notwithstanding any provision of a contract inconsistent herewith.

Table of Contents

PART I

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§ 6

INSTALLMENT LAND CONTRACT LAW

of repairs made by the seller prior to the surrender whenever the purchaser is responsible for the repairs, and the cost of any actual repairs made by the seller subsequent to the surrender of the premises which repairs become necessary by reason of damage done by the buyer or the vandalism of the premises prior to the actual delivery of possession to the seller, and any assessments for public improvements. The unpaid balance of the purchase price shall not be considered an item of recoverable damages. § 6.  Action maintainable by defaulting purchaser (a)   To the extent provided in subsection (b) of this section, any purchaser who has voluntarily surrendered possession of the premises may maintain an action to recover payments of principal made on the contract and assessments for public improvements paid by him without interest on the payments, less any damages sustained by the seller upon the purchaser’s default and his termination of the contract by voluntary surrender of possession of the premises. (b)   If the purchaser paid on account of principal, a sum in excess of twentyfive percent of the purchase price, he shall be entitled to recover that portion in excess of twenty-five percent less any other actual damages, as is more specifically set forth in section 5, subsection (e) hereof suffered and expenditures made by the seller for which the purchaser has assumed liability. That portion of the purchase price retained by the seller hereunder shall be considered as liquidated damages covering possible losses sustained for the breach of contract for use and occupancy and for depreciation and not as a penalty action by the purchaser, must be instituted within one year from the date of default and such right of action by the purchaser shall not be deemed a cloud on seller’s title, nor prevent seller from conveying a clear title because of the pendency of the action. § 7.  Implied covenants of the seller (a)  Any seller entering into an installment land contract shall impliedly covenant that: (1)   Subject to subsection (f) hereof, his title shall be good and marketable during the entire term of the contract, and (2)   Upon the purchaser’s written request at reasonable intervals, no oftener than once every six months, he shall (i) inform the purchaser in writing of the current unpaid balance of the purchase price, (ii) furnish the purchaser with a complete itemization of all components of all installment payments, and (iii) make available to the purchaser for his inspection all tax and insurance receipts for the premises and whenever the purchaser is responsible under the contract for repairs, all bills and receipts therefor. Seller shall not require purchaser to make settlement until the principal balance has been reduced by payments on account thereof to a sum not more than seventy-five percent of the original principal set forth in the installment land contract, except if seller agrees to take purchaser’s purchase money mortgage for the full balance of the principal then due or secures a mortgage for the full balance of the principal then due from a third party, said mortgage to be payable within a term of not less than ten years. (b)   When any seller fails to perform any of the covenants set forth in subsection (a) hereof, the purchaser may: (1)   Terminate the contract, or (2)  So long as the seller’s default continues, remain in possession under the contract and tender to the seller each installment payment provided for by the contract, less that portion which is allocable to principal, when any seller refuses or neglects to disclose information pursuant to subsection (a), clause

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Index

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Part IX Ch. 68–72 Condos, etc.

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Part VIII Ch. 64–67 L/T

§ 9.  Existing remedies of purchaser The rights granted by this act to any purchaser under any installment land contract, shall be in addition to and not in derogation of any rights of a purchaser under existing law.

Part VII Ch. 57–63 Litigation

§ 8.  Allocation of monthly payments In determining what portion of the monthly installments shall be applied against principal on account of the purchase price, there shall first be deducted all items authorized under the agreement of sale, such as taxes, water and sewer rentals, interest on the unpaid balance of purchase price, cost of all insurance premiums, repairs and assessments authorized under the terms of the agreement and the net balance thereof shall be applied to principal.

Part VI Ch. 49–56 Taxation

(g)  When any seller violates subsection (a) hereof, and the seller does not comply with subsection (a) hereof, within thirty days after written demand therefor by the purchaser, the purchaser may at any time thereafter terminate the contract on account of uncertainty and may recover from the seller all installment payments paid, less that portion allocable to taxes, water and sewer rent and insurance premiums and less the cost of repairs made by the seller if the purchaser is responsible under the contract for repairs.

Part V Ch. 41–48A Zoning, etc.

(f)   For the purpose of this section, a title shall be deemed marketable even though there is a lien or encumbrance affecting it which can be extinguished by the payment of a definitely ascertainable sum not in excess of the unpaid balance of the purchase price.

Part IV Ch. 36–40 Insurance

(e)   When the purchaser exercises the option set forth in subsection (b), clause (2) hereof, and continues to tender each installment payment pursuant thereto, this shall be deemed to be full performance under the contract until the time that default is cured. Unless the default is cured the seller shall have no right to terminate the contract or to maintain an action for the balance of any installment payment.

Part III Ch. 23–35 Mortgages

(d)  Any purchaser not in default who has exercised his right to terminate the contract pursuant to subsections (b) and (c) hereof, and who has surrendered possession of the premises, may maintain an action to recover payments of principal made on the contract and assessment for public improvements paid by him without interest on any payments and other damages as the purchaser may have suffered.

Part II Ch. 15–22 Deeds

(c)  A purchaser electing either of the remedies set forth in subsection (b) hereof, shall serve a written notice of his election upon the seller personally or by registered mail or other mail service, which results in the post office department making a record of delivery and the sender receiving a receipt signed by the addressee or his agent, evidencing delivery sent to his last known address and shall with reasonable particularity state the reason for his action and the remedy he has elected. The notice shall state that on a specified day, not less than sixty days after service of the notice, the contract shall terminate or that the purchaser shall commence withholding principal payments whichever is the case, unless prior thereto, the seller shall cure his default and advise the purchaser thereof in writing, delivered personally to the purchaser or by registered mail, sent to the last known address of the purchaser.

Part I Ch. 1–14 Brokers

(2) hereof, the purchaser in making his tender may withhold from each installment payment, that portion which he in good faith estimates as allocable to principal, and when the seller’s default has been remedied the purchaser shall pay to the seller all sums withheld under this clause.

Table of Contents

PART I

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§ 10

INSTALLMENT LAND CONTRACT LAW

§ 10.  Incorporation into contracts Sections 3, 4, 5, 6, 7, 8 and 9 of this act1 shall be deemed to be a part of every installment land contract entered into after the effective date of this act and each seller shall incorporate those provisions into every contract. § 11.  Effective date This act shall take effect immediately.

1. 68 P.S. §§ 903 to 909.

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Table of Contents

CHAPTER 9 Part I Ch. 1–14 Brokers

NOTICE OF ZONING AND CODE VIOLATIONS 21 P.S. § 611 to 21 P.S. § 615

Sec.

1. Legislative findings 2. Definitions 3. Certificates 3.1. Agreements of sale 4. Non-conforming uses 5. Penalties

Part II Ch. 15–22 Deeds

§ § § § § §

Part V Ch. 41–48A Zoning, etc. Part VI Ch. 49–56 Taxation Part VII Ch. 57–63 Litigation Part VIII Ch. 64–67 L/T Part IX Ch. 68–72 Condos, etc. Index

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Part IV Ch. 36–40 Insurance

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Part III Ch. 23–35 Mortgages

§ 1.  Legislative findings (a)   The General Assembly finds that in municipalities throughout the Commonwealth many owners of properties are using such properties in violation of the zoning ordinances and regulations of such municipalities, and are maintaining such properties in violation of housing, building, safety, and fire ordinances and regulations, and are offering such properties for sale without revealing such illegal use or the receipt of notice of the existence of housing, building, safety and fire violations. Many innocent purchasers of such properties are not aware of the illegal use or the existence of the nature of violations until they have entered into agreements of sale or have consummated the purchase. (b)   In order to prevent undue hardships and losses imposed on such innocent purchasers by owners who have failed to reveal the illegal use of the property being conveyed or who have made misrepresentations in that regard, the General Assembly finds and declares that in cities of the first class, cities of the second class and in cities of the second class A, cities of the third class, boroughs, towns, townships of the first class and townships of the second class adopting the provisions of this act, all sellers of property shall be required to advise the purchaser of the legal use of such property, and to deliver to the purchaser not later than at the settlement held for such property a use registration permit showing the legal use and zoning classification for such property. (c)  In order to prevent undue hardship and losses imposed on an innocent purchaser by an owner who has failed to disclose to a prospective purchaser of property that a notice has been received that such property is in violation of housing, building, safety or fire ordinances or regulations, the General Assembly finds and declares that all sellers of property shall be required to advise purchasers of any notice received by the owners of any violation of any housing, building, safety or fire ordinance or regulation with respect to the property to be sold. (d)   The provisions of this act may apply to cities of the second class A, cities of the third class, boroughs, towns, townships of the first class and townships of the second class only if the governing bodies of such municipalities so elect. § 2.  Definitions (a)  “Owner” means any person, co-partnership, association, corporation or fiduciary having legal, or equitable title, or any interest in any real property. Whenever used in any clause, prescribing or imposing a penalty, the term owner, as applied to co-partnerships and associations, shall mean the partners, or members thereof, and as applied to corporations, the officers thereof. (b)  “Property” means any building or structure situate in any city of the first class or situate in any city of the second class, or situate in any other municipality eligible and electing to adopt the provisions of this act, except build-

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§ 3

ZONING AND CODE VIOLATIONS

ings or structures used, designed or intended to be used, exclusively, for single family or two-family occupancy, churches or other places of religious worship, except that for the purpose of certification or statements regarding notices of housing, building, safety or fire violations, the word “property” shall include all buildings or structures. (c)  “Agreement of sale” means any agreement, or written instrument, which provides that title to any property shall thereafter be transferred from one owner to another owner, and shall include inter alia written leases which contain options to purchase the leased property, and leases which provide that the lessee of the property shall acquire title thereto after the payment of a stipulated number of regular rent payments or after a stipulated period of time. § 3.  Certificates (a)   In any city of the first class, any city of the second class or in any city of the second class A, city of the third class, borough, town, township of the first class or township of the second class which has adopted the provisions of this act it shall be unlawful for any owner to sell his property, or any interest therein, unless the owner shall first deliver to the purchaser at or prior to the time for settlement a certification of the District classification, issued by the appropriate municipal officer indicating the zoning classification and the legality of the existing use of the property to be sold. (b)  It shall be unlawful for an owner to sell his property, or any interest therein, unless the owner shall first deliver to the purchaser at or prior to the time for settlement a certificate issued by the appropriate municipal official disclosing whether there exists any notice of an uncorrected violation of the housing, building, safety or fire ordinances. § 3.1.  Agreements of sale (a)  Every owner shall insert in every agreement for the sale of property a provision showing the zoning classification of such property, and stating whether the present use of the property is in compliance with or in violation of zoning laws and ordinances, and every owner shall insert in every agreement for the sale of property a provision disclosing whether there exists any notice of an uncorrected violation of the housing, building, safety or fire ordinances. (b)   If any owner fails to include any provision required by this act in an agreement for the sale of property, then in any action, at law or in equity, instituted by a purchaser against an owner, it shall be conclusively presumed that the owner at the time of the signing of such agreement, represented and warranted to the purchaser that such property was being used in compliance with the then existing zoning laws and ordinances, and that there was no uncorrected violation of the housing, building, safety or fire ordinances. § 4.  Non-conforming uses A certificate from the appropriate municipal officer certifying that the property has been approved or designated as a non-conforming use shall be deemed compliance with this act. § 5.  Penalties Any owner who violates the provisions of section 3 of this act1 shall be guilty of a misdemeanor, and upon conviction thereof, shall be sentenced to pay a fine of not more than one thousand dollars, or undergo imprisonment for not more than one year, or both.

1. 21 P.S. § 613.

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CHAPTER 10 69 P.S. § 529

Part II Ch. 15–22 Deeds Part III Ch. 23–35 Mortgages Part IV Ch. 36–40 Insurance

Every corporation, joint-stock association, limited partnership or company, now or hereafter incorporated or organized under the laws of this Commonwealth, or under the laws of the United States or any other state, and engaged in business in this Commonwealth, which shall sell in bulk fifty-one per centum or more of any stock of goods, wares or merchandise of any kind, fixtures, machinery, equipment, buildings or real estate, shall give the Department of Revenue ten days’ notice of the sale, prior to the completion of the transfer of such property. It shall also be the duty of every corporation, joint-stock association, limited partnership or company to file all State tax reports with the Department of Revenue to the date of such proposed transfer of property, and pay all taxes and unemployment compensation contributions due the Commonwealth to said date. The seller shall present to the purchaser of such property a certificate from the Department of Revenue showing that all State tax reports have been filed and all State taxes, unemployment compensation contributions paid to the date of the proposed transfer. The failure of the purchaser to require this certificate shall render such purchaser liable to the Commonwealth for the unpaid taxes owing by the seller or transferer: Provided further, That nothing contained in this act shall apply to sales made under any order of court, or to any sales made by assignees for the benefit of creditors, executors, administrators, receivers or any public officer in his official capacity, or by any officer of a court.

Part I Ch. 1–14 Brokers

NOTICE OF BULK SALES, REPORTS, TAXES

Part V Ch. 41–48A Zoning, etc. Part VI Ch. 49–56 Taxation Part VII Ch. 57–63 Litigation Part VIII Ch. 64–67 L/T Part IX Ch. 68–72 Condos, etc.

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Index

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CHAPTER 11 HAZARDOUS WASTE DISCLOSURE 35 P.S. § 6018.405

Sec.

§ 405. Conveyance of disposal site property

§ 405.  Conveyance of disposal site property After the effective date of this act, the grantor in every deed for the conveyance of property on which hazardous waste is presently being disposed, or has ever been disposed by the grantor or to the grantor’s actual knowledge shall include in the property description section of such deed an acknowledgement of such hazardous waste disposal; such acknowledgement to include to the extent such information is available, but not be limited to, the surface area size and exact location of the disposed waste and a description of the types of hazardous wastes contained therein. Such amended property description shall be made a part of the deed for all future conveyances or transfers of the subject property: Provided, however, That the warranty in such deed shall not be applicable to the surface area size and exact location of the disposed waste and a description of the types of hazardous wastes contained therein. REPEALED IN PART Pursuant to 35 P.S. § 7130.905, this section is repealed insofar as inconsistent with the Low-Level Radioactive Waste Disposal Act (35 P.S. § 7130.101 et seq.).

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Table of Contents

CHAPTER 12

Part I Ch. 1–14 Brokers

UNAVAILABLE COMMUNITY SEWAGE DISCLOSURE REQUIREMENT 35 P.S. § 750.7a

Sec.

Part II Ch. 15–22 Deeds

§ 7a. Land sale contracts

Part VI Ch. 49–56 Taxation Part VII Ch. 57–63 Litigation Part VIII Ch. 64–67 L/T Part IX Ch. 68–72 Condos, etc. Index

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Part V Ch. 41–48A Zoning, etc.

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Part IV Ch. 36–40 Insurance

1. § 750.2. Definitions As used in this act: . . .“Lot” means a part of a subdivision or a parcel of land used as a building site or intended to be used for building purposes, whether immediate or future, which would not be further subdivided. Whenever a lot is used for a multiple family dwelling or for commercial or industrial purposes, the lot shall be deemed to have been subdivided into an equivalent number of single family residential lots as determined by estimated sewage flows. 2. 35 P.S. § 750.7.

Part III Ch. 23–35 Mortgages

§ 7a.  Land sale contracts (a)   Every contract for the sale of a lot as defined in section 21 for which there is no currently existing community sewage system available shall contain a statement in the contract clearly indicating to the buyer that there is no community sewage system available and that a permit for an individual sewage system will have to be obtained pursuant to section 7.2 The contract shall also clearly state that the buyer should contact the local agency charged with administering this act before signing the contract to determine the procedure and requirements for obtaining a permit for an individual sewage system if one has not already been obtained. For purposes of this section the terms “community sewage system” and “individual sewage system” shall be construed to exclude any drainage system for the control of surface water or the control of storm runoff water. (a.1)  Every contract for the sale of a lot as defined in section 2 of this act which is served by an individual sewage system which was installed under the ten-acre permit exemption provisions of section 7 of this act shall contain a statement in the contract that clearly indicates to the buyer that soils and site testing were not conducted and that the owner of the property or properties served by the system, at the time of a malfunction, may be held liable for any contamination, pollution, public health hazard or nuisance which occurs as the result of the malfunction of a sewage system installed in accordance with the permit exemption provisions of section 7 of this act. (a.2)   Every contract for the sale of a lot served by a holding tank, whether permanent or temporary, to which sewage is conveyed by a water carrying system and which is designed and constructed to facilitate ultimate disposal of the sewage at another site shall contain a statement in the contract that clearly indicates that the property is served by such a tank and shall provide a history of the annual cost of maintaining the tank from the date of its installation or the effective date of this amendatory act, whichever is later. (b)   Any contract for the sale of a lot which does not conform to the requirements of this section shall not be enforceable by the seller against the buyer. Any term of such contract purporting to waive the rights of the buyer to the disclosures required in this section shall be void.

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CHAPTER 13 MINES AND MINING REMOVAL OF SURFACE SUPPORT 52 P.S. § 1551 to 52 P.S. § 1554

Sec.

§ 1. Instruments to contain notice that title to coal and right of coal and right of surface support are not included § 2. Liability for failure to provide notice § 3. Act not subject to waiver § 4. Prospective operation

§ 1.  Instruments to contain notice that title to coal and right of coal and right of surface support are not included (a)   Every deed, agreement of sale, title insurance policy and other instrument in writing, except a mortgage, a quitclaim deed or an agreement to convey by quitclaim, hereafter executed and delivered with respect to the surface of land and for the purpose of selling, conveying, transferring, agreeing to sell, convey, or transfer, or for insuring or agreeing to insure the title to said surface of land, shall, if any of the conditions of subsection (b) of this section are present, include therein, set forth entirely either in capital letters or in type or writing distinctively different from the balance of the instrument or set apart from the balance of the instrument by underlining, a prominent notice either in the form of one of the following paragraphs or else in a form which is essentially the same as and which expresses precisely the same meaning and notice as one of said following paragraphs: (1)   “This document may not sell, convey, transfer, include or insure the title to the coal and right of support underneath the surface land described or referred to herein, and the owner or owners of such coal may have the complete legal right to remove all of such coal and, in that connection, damage may result to the surface of the land and any house, building or other structure on or in such land. The inclusion of this notice does not enlarge, restrict or modify any legal rights or estates otherwise created, transferred, excepted or reserved by this instrument.” (2)   “This document does not sell, convey, transfer, include or insure the title to the coal and right of support underneath the surface land described or referred to herein, and the owner or owners of such coal have the complete legal right to remove all of such coal and, in that connection, damage may result to the surface of the land and any house, building or other structure on or in such land. The inclusion of this notice does not enlarge, restrict or modify any legal rights or estates otherwise created, transferred, excepted or reserved by this instrument.” (b)  The notice prescribed by subsection (a) of this section must be included in each of the following cases: (1)  If there is, or has been, a prior severance of record either of any coal underneath any part of the surface referred to in subsection (a) of section 1 hereof, or of any part of the right of surface support derived from or in connection with any of the said coal; or (2)  If there is, or has been, a prior severance not of record either of any coal underneath any part of the surface referred to in subsection (a) of section 1 hereof, or of any part of the right of surface support derived from or in connection with any of said coal, and the person, firm or entity who, or which,

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BROKERS, AGREEMENTS

Ch. 13

Part I Ch. 1–14 Brokers Part II Ch. 15–22 Deeds Part III Ch. 23–35 Mortgages Part IV Ch. 36–40 Insurance Part V Ch. 41–48A Zoning, etc. Part VI Ch. 49–56 Taxation

sells, conveys, transfers, insures title or agrees to do any of those things has notice of, or reason to know of, such severance; or (3)   If there is a contemporaneous severance whether or not of record of any coal underneath any part of the surface referred to in subsection (a) of section 1 hereof, or of any part of the right of surface support derived from or in connection with any of said coal. § 2.  Liability for failure to provide notice If subsection (a) of section 1 of this act is applicable, then the person, firm or entity who or which, alone or together with others, sells, conveys, transfers or insures the title to the surface of land by an instrument in writing, or agrees in writing, to do any of the foregoing, without including the notice prescribed by subsection (a) of section 1 of this act, shall be liable in damages to the grantee, purchaser, insured or other party to the instrument in an action in assumpsit, based upon implied contract, to the same extent as if there was expressly included in the instrument in writing an agreement and assurance that all coal underneath the surface described or referred to in such instrument in writing and the complete right to surface support derived from or in connection with said coal were included in the property sold, conveyed, transferred, agreed to be sold, conveyed, or transferred, or to which the title was insured or agreed to be insured. Failure to comply with the provisions of section 1 of this act shall not create, convey, transfer, enlarge, impair or otherwise affect any right to or waiver of surface support or any title to land or any other estate or interest in land, and shall not impair or otherwise affect any waiver or release of damages or any immunity from liability or damages other than by giving rise to a cause of action as hereinabove specifically provided. § 3.  Act not subject to waiver The provisions of this act may not be waived in any manner whatsoever. § 4.  Prospective operation Nothing contained in this act shall be construed to affect in any way whatsoever any waiver of surface support, any release from damages or any other title, right, estate, interest, liability or exoneration, from liability created, granted, excepted, reserved or otherwise dealt with in any deed, agreement of sale, title insurance policy or other instrument in writing, which was executed or delivered prior to the effective date of this act.

Table of Contents

PART I

Part VII Ch. 57–63 Litigation Part VIII Ch. 64–67 L/T Part IX Ch. 68–72 Condos, etc.

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Index

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CHAPTER 14 AIR SPACE 68 P.S. § 801 to 68 P.S. § 805

Sec. § § § § §

1. Conveyance and transfer 2. Real property rights and incidents; sovereignty of United States; aircraft rights 3. Taxation 4. Retroactive application of act 5. Severable provisions

§ 1.  Conveyance and transfer Estates, rights and interests in air space above the surface of the ground in this Commonwealth, whether or not contiguous to the surface of the ground, may be validly conveyed or otherwise transferred to a person or persons other than the owner or owners of the surface below. § 2.  Real property rights and incidents; sovereignty of United States; aircraft rights Estates, rights and interests in air space above the surface of the ground may be held, enjoyed, possessed, aliened, conveyed, leased or mortgaged as real property, shall pass by descent and distribution, and shall be dealt with for all purposes and in all respects as estates, rights and interests in real property. All the rights, privileges, incidents, powers, remedies, burdens, duties, liabilities and restrictions pertaining to estates, rights and interests in real property shall appertain and be applicable to estates, rights and interests in air space above the surface of the ground. All provisions of the laws, ordinances and regulations of this Commonwealth and its political subdivisions applicable to estates, rights and interests in and uses of real property shall appertain and be applicable to estates, rights and interests in and uses of air space above the surface of the ground. Estates, rights and interests in air space above the surface of the ground shall be subject to the exclusive national sovereignty of the United States of America in the air space of the United States and the public right of transit and flight of aircraft granted by the United States of America and the Commonwealth of Pennsylvania. § 3.  Taxation Estates, rights and interests in air space or parcels thereof above the surface of the ground, whether or not contiguous to the surface of the ground, shall if separately owned be separately assessed for taxation by each assessing unit in the Commonwealth for all types of taxes authorized by law to be assessed against real property. § 4.  Retroactive application of act The provisions of this act shall be applicable to estates, rights and interests in air space above the surface of the ground, whether heretofore or hereafter created. § 5.  Severable provisions The provisions of this act are severable, and if any of its provisions shall be held unconstitutional, the decision of the court shall not affect or impair any of the remaining provisions of this act. It is hereby declared to be the legislative intent that this act would have been adopted had such unconstitutional provisions not been included herein.

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Table of Contents

PART II Part I Ch. 1–14 Brokers

DEEDS Chapter Chapter Chapter Chapter Chapter Chapter Chapter Chapter

15.  Tenants in Common 16.  Joint Tenants 17.  Law of Deeds and Conveyances 18.  Recorders of Deeds 19.  Recordable Documents 20.  Real Estate Registries 21.  Uniform Parcel Identifier Law 22.  Uniform Acknowledgment Act

Part II Ch. 15–22 Deeds



Part III Ch. 23–35 Mortgages

CHAPTER 15 TENANTS IN COMMON 68 P.S. § 101

Part IV Ch. 36–40 Insurance

Sec.

§ 101. Co-tenants not in possession may recover share of rental; procedure in case of partition

Part V Ch. 41–48A Zoning, etc. Part VI Ch. 49–56 Taxation Part VII Ch. 57–63 Litigation

§ 101.  Co-tenants not in possession may recover share of rental; procedure in case of partition In all cases in which any real estate is now or shall be hereafter held by two or more persons as tenants in common, and one or more of said tenants shall have been or shall hereafter be in possession of said real estate, it shall be lawful for any one or more of said tenants in common, not in possession, to sue for and recover from such tenants in possession his or their proportionate part of the rental value of said real estate for the time such real estate shall have been in possession as aforesaid; and in case of partition of such real estate held in common as aforesaid, the parties in possession shall have deducted from their distributive shares of said real estate the rental value thereof to which their co-tenant or tenants are entitled.

Part VIII Ch. 64–67 L/T Part IX Ch. 68–72 Condos, etc.

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Index

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CHAPTER 16 JOINT TENANTS 68 P.S. § 110

Sec.

§ 1. Lands held by joint tenancy to descend as estates of tenants in common

§ 1.  Lands held by joint tenancy to descend as estates of tenants in common If partition be not made between joint tenants, whether they be such as might have been compelled to make partition or not, or of whatever kind the estates or thing holden or possessed be, the par ts of those who die first shall not accrue to the survivors, but shall descend or pass by devise, and shall be subject to debts, charges, curtesy or dower, or transmissible to executors or administrators, and be considered to every other intent and purpose in the same manner as if such deceased joint tenants had been tenants in common: Provided always, That nothing in this act shall be taken to affect any trust estate. [This section, entitled “An act concerning joint tenancy” and enacted by Acts 1812, March 31, P.L. 259, was saved from repeal by Act 1972, June 30, P.L. 508, No. 164, § 3(b), effective July 1, 1972.]

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Table of Contents

CHAPTER 17 21 P.S. § 1 to 21 P.S. § 602

Sec.

Part VI Ch. 49–56 Taxation Part VII Ch. 57–63 Litigation Part VIII Ch. 64–67 L/T Part IX Ch. 68–72 Condos, etc. Index

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Part V Ch. 41–48A Zoning, etc.

89

Part IV Ch. 36–40 Insurance

§ § § § § § § § § § § § § § § § § § § § § § § § § § § § § § § §

Part III Ch. 23–35 Mortgages

§ § § § § § § § § §

1. Form of deed 2. Words necessary to pass fee simple title 3. Grantor’s entire estate and rights conveyed 4. Words grant and convey import covenants of title and quiet enjoyment 5. “Warrant generally” construed 6. “Warrant specially” construed 7. “Release and quitclaim” construed 8. Force and effect of words “grant, bargain,” etc. 9. Repealed 10. Deeds effective without seal 10.1. Uniform parcel identifier; conveyances, mortgages, releases, and other instruments 11. Repealed 12. Repealed 13. Conveyance of estate tail by deed of bargain and sale 14. Repealed 15. Title to party wall to pass with ground 41. Deeds made out of the province are valid 42. Deeds to be acknowledged before recording 43. Proof of execution where grantor is dead or cannot appear 44. Proof of deeds where grantor and witnesses are dead or cannot be found 45. Proof of deeds without subscribing witnesses, where one or more of the parties is dead 46. Certificate of acknowledgment prima facie evidence thereof and of execution 47. Certificate of acknowledgment of sheriff’s deed to be sufficient evidence 48. Effect of prothonotary’s certificate on treasurer’s deed 48a. Validating certain tax sales 49. Validity of deeds made and acknowledged by husband and wife out of state 50. Repealed 51. Execution and acknowledgment of deed to adult’s real estate by minor spouse 52. Repealed 52.1. Repealed 52.2. Repealed 53. Conveyance by officer when decreed by court; acknowledgment in open court 54. Punishment for contempt 55. Notice to be given before order is made 56. Application of act 57. Repealed 81. Form of certificate of acknowledgment 82. Acknowledgments by married woman 111. Corporate acknowledgments by appointed attorney; form of appointment 112. Who may take such acknowledgment; form of certificate 113. Corporate acknowledgments prior to May 11, 1901, validated 114. Repealed 115. Repealed 116. Sale, lease or mortgage not to be invalidated by informality in execution 141. President of court of common pleas 142. Repealed 143. Ward justices in boroughs 144. Mayor, recorder, and aldermen of Pittsburgh 145. Repealed 146. Repealed 147. Repealed 148. Repealed 149. Probate of deeds, etc., may be taken by the mayor and recorder of Philadelphia

Part II Ch. 15–22 Deeds

§ § § § § § § § § § §

Part I Ch. 1–14 Brokers

LAW OF DEEDS AND CONVEYANCES

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LAW OF DEEDS AND CONVEYANCES

§ § § §

150. Aldermen of Philadelphia county may take acknowledgment 151. Recorder of deeds 152. Power of recorder of deeds as to acknowledgments enlarged 153. Treasurers, commissioners, executors, etc., may acknowledge before any authorized officer 154. Repealed 155. Repealed 156. Repealed 181. Repealed 181. Repealed 183. Repealed 184. Repealed 185. Acknowledgments in territories of United States 186. May be taken in the District of Columbia 187. Acknowledgments in Cuba, and the island possessions, valid 188. The record of instruments so acknowledged previously, validated 189. Pending actions not affected 190. Proof of official character of person taking acknowledgment 191. Repealed 221. Repealed 222. Ambassadors, public ministers, etc. 223. Deputy consuls and commercial agents, etc., of United States 224. Acknowledgments taken before commissioners in chancery in foreign countries 225. Acknowledgments by married women out of United States 252. Deeds defective in form 253. Repealed 254. Deeds of husband and wife made prior to act of 1770 255. Repealed 256. Confirmation of title to real estate sold by trustees of married women 257. Repealed 258. Repealed 259. Defective acknowledgments by husband and wife prior to January 4, 1923 260. Defective acknowledgments by wife prior to April 4, 1901 261. Acknowledgments made in any of the United States by husband and wife 262. Conveyances by trustees 263. Deeds executed without the state, defectively acknowledged, but recorded thirty years 264. Above act to apply only when possession has accompanied the title 265. Deeds made in any other state 266. Sales by executors under wills probated in other states alone 267. Acknowledgments made before mayor or recorder of Philadelphia prior to January 9, 1817 268. Repealed 269. Deeds by county commissioners, which have not been acknowledged before a justice 269.1. Commissioners’ deed on resale of land purchased at tax sale 270. Acknowledgments under private seals of aldermen 271. Acknowledgments or probates without certification under seal 272. Repealed 273. Acts done by notaries, who were at the same time justices of the peace 274. Sheriff’s sales in mortgage foreclosures under act of 1901; application of act 274a. Sheriff’s sales when release of mortgage was not filed; validation 274b. Sheriff’s sales without inquisition of bonds not containing waiver; validation 275. Defective sheriffs’ deeds 276. Validation of deeds defectively executed 277. Validation of conveyances by corporations and partnerships 277.1. Validation of defective acknowledgment by president of corporation 277.2. Repealed 278. Conveyances by executors or trustees under power of sale 279. Correction of defective certificates by court 280. Procedure by bill in equity 281. Defective acknowledgments prior to 1931 281.1. Defective acknowledgments prior to 2013

§ § § § § § § § § § § § § § § § § § § § § § § § § § § § § § § § § § § § § § § § § § § § § § § § § § § § § § §

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DEEDS

Ch. 17

Part III Ch. 23–35 Mortgages Part IV Ch. 36–40 Insurance Part V Ch. 41–48A Zoning, etc. Part VI Ch. 49–56 Taxation Part VII Ch. 57–63 Litigation Part VIII Ch. 64–67 L/T Part IX Ch. 68–72 Condos, etc. Index

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Part II Ch. 15–22 Deeds

91

Part I Ch. 1–14 Brokers

§ 282. Mortgage sales of realty by foreign fiduciaries validated; exception § 283. County treasurers’ deeds in tax sales validated notwithstanding defective acknowledgment § 283.1. County treasurer’s deeds validated notwithstanding defective acknowledgment or lack of acknowledgment in open court § 283.2. County treasurer’s deed validated; defective acknowledgment, etc. § 283.3. County treasurers deeds prior to December 31, 1965 validated; no proof of service filed, etc. § 284. Instruments acknowledged by grantors before themselves validated § 285. Acknowledgments in form used prior to Uniform Acknowledgment Act validated; admissibility in evidence; records § 286. Acknowledgments by persons in armed forces; validation; record; evidence § 287. Deed or transfer without certificate showing residence § 288. Cities of third class, deeds of § 289. Records of legal instruments having defective acknowledgments § 301. Sales made by attorneys or agents § 302. Future sales by power of attorney § 303. Deeds defectively executed under power of attorney § 304. Powers valid until notice of revocation § 321. Registration of deeds in counties with more than 500,000 inhabitants § 322. Deeds not to be recorded before registration § 323. Violation of act by recorder a misdemeanor; penalty § 324. Application of act limited § 325. Repealed § 325.1. Duty to accept deeds for recording; registration of unregistered deeds; fee §§ 326 to Repealed  328. § 329. City of Philadelphia, maintenance of day book by commissioner of records § 330. City of Philadelphia, issuance of receipts by commissioner of records § 351. Failure to record conveyance § 352. Repealed § 353. Repealed § 354. Repealed § 355. Repealed § 356. Agreements concerning real property § 357. Constructive notice as result of recordation § 358. Conditions for constructive notice; uniform parcel identifier; indexing of document § 359. Liability for mistake in index § 421. Deeds available, whether recorded by grantor or grantee § 441. Deeds prior in date to March 18, 1775 § 442. Deeds not so recorded, as evidence § 443. Unrecorded deeds void as against subsequent purchasers without notice § 444. All deeds made in the state to be acknowledged and recorded within ninety days § 445. Deeds proved out of state to be recorded within six months § 446. Certain deeds validated notwithstanding delay in recording § 451. Recording of affidavits; admissibility into evidence § 452. Contents of affidavit § 453. Requirements of affidavit; certification; index § 471. Deeds recorded to have the same effect as deeds of feoffment with livery and seisin § 481. Court direction; process; originals preserved § 482. Expense §§ 491- Repealed  495. § 496. Act made perpetual § 497. Proceedings in case of lost or destroyed plan § 498. Appointment of examiner; report; new plan § 499. Costs; limitation of powers of examiner § 521. Sale of timber or bark by deed § 522. Deeds to be recorded; effect; evidence § 523. Deeds recorded within six months to be valid; vested interests not affected

Table of Contents

PART II

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§ 1

LAW OF DEEDS AND CONVEYANCES

§ 581. Title to lands supposed to be in Delaware and found to be in Pennsylvania; recording § 582. Liens affecting such lands § 583. Titles acquired under legal proceedings in Delaware § 601. Validity § 602. Repealed

§ 1.  Form of deed The form of deed for conveying or releasing lands may be in the following words: THIS DEED, Made the __ day of __________, in the year _____, between ___________________, (Here insert name or names and residence of grantor or grantors), and __________, (Here insert name or names and residence of grantee or grantees); Witnesseth, That in consideration of _____ dollars, in hand paid, the receipt whereof is hereby acknowledged, the said grantor do hereby grant and convey (or release and quit-claim) to the said grantee, all _______________ (Here give location and description of property conveyed or released, with recital of title if desired.) __________ (If reservations, exceptions, or special conditions, insert same here.) __________ (If covenants of general or special warranty, insert same here.) In witness whereof, said grantor has hereunto set __________ hand, the day and year first above written. ______________________________ ______________________________ Signed and delivered in the presence of __________ __________ § 2.  Words necessary to pass fee simple title From and after the approval of this act, in any deed or instrument in writing for conveying or releasing land hereafter executed, unless expressly limited to a lesser estate, the words “grant and convey,” or either one of said words, shall be effective to pass to the grantee or grantees named therein a fee simple title to the premises conveyed, if the grantor or grantors possessed such a title, although there be no words of inheritance or of perpetuity in the deed. § 3.  Grantor’s entire estate and rights conveyed All deeds or instruments in writing for conveying or releasing land hereafter executed, granting or conveying lands, unless an exception or reservation be made therein, shall be construed to include all the estate, right, title, interest, property, claim, and demand whatsoever, of the grantor or grantors, in law, equity, or otherwise howsoever, of, in, and to the same, and every part thereof, together with all and singular the improvements, ways, waters, watercourses, rights, liberties, privileges, hereditaments, and appurtenances whatsoever thereto belonging, or in anywise appertaining, and the reversions and remainders, rents, issues, and profits thereof. § 4.  Words grant and convey import covenants of title and quiet enjoyment The words “grant and convey,” or either one of said words, in any deed or instrument in writing for conveying or releasing land hereafter executed, shall be

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DEEDS

Ch. 17

Part VI Ch. 49–56 Taxation Part VII Ch. 57–63 Litigation Part VIII Ch. 64–67 L/T Part IX Ch. 68–72 Condos, etc. Index

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Part V Ch. 41–48A Zoning, etc.

93

Part IV Ch. 36–40 Insurance

§ 7.  “Release and quitclaim” construed Whenever, in any deed or instrument in writing for conveying or releasing land, there shall be used the words “release and quit claim,” such deed or instrument in writing or conveying or releasing land shall be construed as if it set forth that the grantor or grantors hath or have remised, released, and quit-claimed, and by these presents doth or do remise, release, and forever quit-claim, unto the grantee, his heirs and assigns, all right, title, interest, property, claim, and demand whatsoever, both in law and in equity, in or to the lands or premises released, or intended so to be, so that neither the grantor or grantors, nor his or their personal representatives, his or their heirs or assigns, shall, at any time thereafter, have, claim, challenge, or demand the said lands and premises, or any part thereof, in any manner whatever. § 8.  Force and effect of words “grant, bargain,” etc. All deeds to be recorded in pursuance of this act, whereby any estate of inheritance in fee simple shall hereafter be limited to the grantee and his heirs, the words grant, bargain, sell, shall be adjudged an express covenant to the grantee, his heirs and assigns, to-wit: That the grantor was seized of an indefeasible estate in fee simple, freed from incumbrances done or suffered from the grantor (excepting the rents and services due to the lord of the fee), as also for quiet enjoyment against the grantor, his heirs and assigns, unless limited by express words contained in such deeds, and that the grantee, his heirs, executors, administrators and assigns, may in any action assign breaches, as if such covenants were expressly inserted: Provided always, That this act shall not extend to leases at rack-rent, or to leases not exceeding one and twenty years, where the actual possession goes with the lease. § 9.  Repealed. 1947, April 24, P.L. 100, No. 39, § 20 § 10.  Deeds effective without seal All deeds or instruments in writing for conveying or releasing lands made by any natural person, either in his individual capacity or as a fiduciary, duly signed by the grantors in the manner now provided by law, but with no seal affixed

Part III Ch. 23–35 Mortgages

§ 6.  “Warrant specially” construed A covenant or agreement by the grantor or grantors in any deed or instrument in writing for conveying or releasing land that, he, they, or it “will warrant specially the property hereby conveyed,” shall have the same effect as if the grantor or grantors had covenanted that he or they, his or their heirs and personal representatives or successors, will forever warrant and defend the said property, and every part thereof, unto the said grantee, his heirs, personal representatives and assigns, against the lawful claims and demands of the grantor or grantors, and all persons claiming or to claim by, through, or under him or them.

Part II Ch. 15–22 Deeds

§ 5.  “Warrant generally” construed A covenant or agreement by the grantor or grantors, in any deed or instrument in writing for conveying or releasing land that he, they, or it “will warrant generally the property hereby conveyed,” shall have the same effect as if the grantor or grantors had covenanted that he or they, his or their heirs and personal representatives or successors, will forever warrant and defend the said property, and every part thereof, unto the grantee, his heirs, personal representatives and assigns, against the lawful claims and demands of all persons whomsoever.

Part I Ch. 1–14 Brokers

adjudged an express covenant to the grantee, his heirs and assigns; to wit, That the grantor was seized of an indefeasible estate in fee simple in the property conveyed, freed from incumbrances done or suffered from the grantor, as also for quiet enjoyment against the grantor, his heirs and assigns, unless limited by express words contained in such deed.

Table of Contents

PART II

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§ 10.1

LAW OF DEEDS AND CONVEYANCES

thereto, shall be deemed to be executed with the same force and effect in all respects as though a seal was affixed to the signature, and all such instruments in writing, signed by the grantors, but with no seal affixed thereto, shall be deeds for all purposes within the purview of all acts or parts of acts of Assembly relating to or concerning deeds for the conveyance or releasing of lands. § 10.1.  Uniform parcel identifier; conveyances, mortgages, releases, and other instruments (a)   In counties adopting a uniform parcel identifier system under statutory provisions on parcel identification, all conveyances, mortgages or releases or other instruments affecting real estate included in the system may be made by reference to the uniform parcel identifier of the real estate being conveyed, mortgaged, released or otherwise affected as indicated on the recorded county tax maps. The first conveyance, mortgage, release or other instrument affecting real estate recorded after the adoption of an ordinance under the statutory provisions on parcel identification shall contain the uniform parcel identifier assigned to the parcel or parcels affected by such instrument. Thereafter, the first conveyance after a change of size and description of real estate represented by a uniform parcel identifier shall contain, in addition to the uniform parcel identifier assigned to the parcel, or parcels affected by the instrument, either: (1)   A metes and bounds description based on a precise survey; or (2)   A lot number and reference to a recorded subdivision plan which plan on its face shows metes and bounds prepared by a professional land surveyor as required by the act of May 23, 1945 (P.L. 913, No. 367), known as the “Professional Engineers Registration Law.”1 Any subdivision plan which was prepared prior to the effective date of the aforesaid “Professional Engineers Registration Law,” which contains metes and bounds, shall be acceptable for compliance with these provisions, except that no requirement for metes and bounds description by survey or subdivision plan shall be necessary for any conveyance, transfer, mortgage, release or other purpose involving a rightof-way, surface or subsurface easement or oil, gas or mineral lease or other interest or any subsurface estate. Further, as to any mortgages recorded which seek to grant an interest in real estate which real estate has not obtained a parcel identifier, the failure to refer to the uniform parcel identifier for each such interest or the failure to include a deed reference for each such interest shall not affect the lien of such mortgage. (b)  Any subsequent conveyance, mortgage, release or other instrument affecting real estate so made by reference to the uniform parcel identifier and the record location where the metes and bounds description or first number and reference to a recorded plot plan last appears shall be as effective to pass title or affect title to the real estate so described as it would be if the premises had been described by the metes and bounds description used in the first instrument so recorded or appearing in the recorded subdivision plan. (c)   The uniform parcel identifier, the recorded tax map or record thereof or the recorded subdivision plan shall be received in evidence and in all courts and places as describing the real estate therein designated as though the same were set forth in full as appearing in the first conveyance, mortgage, release or other instrument or as shown on the recorded subdivision plan. §§ 11, 12.  Repealed. 1947, April 24, P.L. 100, No. 39, § 20 § 13.  Conveyance of estate tail by deed of bargain and sale From and after the passing of this act, any person or persons seized of any estate tail in possession, reversion or remainder, shall have full power to grant, bargain, sell and convey any lands, tenements or hereditaments, whereof he, she 1. 63 P.S. § 148 et seq.

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DEEDS

Ch. 17

Part VII Ch. 57–63 Litigation Part VIII Ch. 64–67 L/T Part IX Ch. 68–72 Condos, etc.

§ 44.  Proof of deeds where grantor and witnesses are dead or cannot be found Whereas there is no provision made by the act,2 to which this is a supplement, for the proving deeds or conveyances where the grantors and the witnesses are

Part VI Ch. 49–56 Taxation

§ 43.  Proof of execution where grantor is dead or cannot appear But in the case the grantor be dead, or cannot appear, then the witnesses brought before such justice shall by him be examined upon oath or affirmation, to prove the execution of the deed then produced. Whereupon the same justice shall, under his hand and seal, certify such acknowledgment or proof upon the back of the deed, with the day any year when the same was made, and by whom, and that after the recorder has recorded any of the said deeds, he shall certify on the back thereof, under his hand and seal of his office, the day he entered it, and the name or number of the book or roll, and page, where the same is entered.

Part V Ch. 41–48A Zoning, etc.

§ 42.  Deeds to be acknowledged before recording All bargains and sales, deeds and conveyances of lands, tenements and hereditaments, in this province, may be recorded in the said office; but before the same shall be so recorded, the parties concerned shall procure the grantor or bargainer named in every such deed, or else two or more of the witnesses (who were pres­ent at the execution thereof), to come before one of the justices of the peace of the proper county or city where the lands lie, who is hereby empowered to take such acknowledgment of the grantor, if one, or of one of the grantors, if more.

Part IV Ch. 36–40 Insurance

§ 41.  Deeds made out of the province are valid All deeds and conveyances made and granted out of this province, and brought hither and recorded in the county where the lands lie (the execution whereof being first proved by the oath or solemn affirmation of one or more of the witnesses thereunto, before one of more of the justices of the peace of this province, or before any mayor or chief magistrate or officer, of the cities, towns or places, where such deeds or conveyances are or shall be made or executed, and accordingly certified under the common or public seal of the cities, towns or places, where such deeds or conveyances are so proved respectively), shall be as valid as if the same had been made, acknowledged or proved, in the proper county where the lands lie in this province.

Part III Ch. 23–35 Mortgages

§ 15.  Title to party wall to pass with ground In all conveyances of houses and buildings, the right to, and compensation for, the party wall built therewith, shall be taken to have passed to the purchaser, unless otherwise expressed; and the owner of the house for the time being shall have all the remedies in respect to such party wall as he might have in relation to the house to which this attached; and so much of any previous law as is inconsistent with the provisions of this section is hereby repealed.

Part II Ch. 15–22 Deeds

§ 14.  Repealed. 1978, April 28, P.L. 202, No. 53, § 2(a)[38], effective June 27, 1980

Part I Ch. 1–14 Brokers

or they shall be so seized, by such manner and form of conveyance of assurance, as any person seized of an estate in fee simple may be the laws of this state grant, bargain, sell and convey any lands, tenements or hereditaments, whereof such person is seized of an estate in fee simple; and all and every such grants, bargains, sales and conveyances of any person or persons, so seized in tail, shall be good and available, to all intents and purposes, against all and every person and persons whom the grantor, bargainor or vendor, might or could debar by any mode of common recovery, or by any way or means whatever, any law or usage to the contrary notwithstanding.

Table of Contents

PART II

2. Act of 1715, May 28, 1 Sm.L. 94 (16 P.S. § 9701 et seq.).

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Index

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§ 45

LAW OF DEEDS AND CONVEYANCES

deceased; for remedy whereof, Be it enacted, That from and after the publication of this act, where the grantors and witnesses of any deed or conveyance are deceased, or cannot be had, it shall and may be lawful to and for any of the justices of the supreme court, or any justice of the court of common pleas of the county where the lands lie, to take the examination of any witness or witnesses, on oath or affirmation, to prove the handwriting of such deceased witness or witnesses, or where such proof cannot be had, then to prove the handwriting of the grantor or grantors, which shall be certified by the justice before whom such proof shall be made, and such deed or conveyance, being so proved, shall be recorded as is usual in other cases directed by the said act. § 45.  Proof of deeds without subscribing witnesses, where one or more of the parties is dead Where there is no subscribing witness to any deed and conveyance, or other instrument of writing, concerning lands, tenements or hereditaments, which might be recorded if probated according to existing laws, and any of the parties thereto shall be deceased, it shall and may be lawful to and for any of the judges of the supreme court, or any judge, learned in the law, of the court of common pleas of the county where the lands lie, to take the examination of any witness or witnesses, on oath or affirmation, to prove the handwriting of such deceased party or parties, and of the surviving party or parties which shall be certified by the judge before whom such proof shall be made; and such deed, conveyance or other instrument of writing, being so proved by two or more witnesses, and so certified, shall be recorded as in other cases under the acts relating to the recording of deeds: Provided, That in addition to the proofs so made by two or more witnesses the surviving party or parties to such deed, conveyance or other instrument of writing, shall also be examined, on oath or affirmation, before said judge, as to the handwriting of such deceased party. § 46.  Certificate of acknowledgment prima facie evidence thereof and of execution Where any deed, conveyance or other instrument of writing has been or shall be made and executed, either within or out of this state, and the acknowledgment or proof thereof duly certified, by any officer under seal, according to the existing laws of this commonwealth, for the purpose of being recorded therein, such certificate shall be deemed prima facie evidence of such execution and acknowledgment, or proof, without requiring proof of the said seal, as fully, to all intents and purposes, and with the same effect only, as if the same had been so acknowledged or proved before any judge, justice of the peace or alderman within this commonwealth. § 47.  Certificate of acknowledgment of sheriff’s deed to be sufficient evidence The certificate of the prothonotary of any court of this commonwealth to an acknowledgment of a sheriff’s deed, heretofore made, although not under seal of office, shall be sufficient evidence of such acknowledgment, notwithstanding no other record was made thereof at the time of such acknowledgment: Provided, That the provisions of this section shall not be construed to affect any bona fide holder or purchaser, who had neither actual or constructive notice of the execution of such sheriff’s deed. § 48.  Effect of prothonotary’s certificate on treasurer’s deed In all cases of treasurers’ deeds for lands sold by county treasurers for nonpayment of taxes, whether heretofore or hereafter made, the certificate of the prothonotary endorsed thereon, under the seal of the court, to the acknowledgment of such deed, or the record thereof when such deed shall have been recorded, shall be prima facie evidence of the fact of such acknowledgment: Provided, however,

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Index

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Part IX Ch. 68–72 Condos, etc.

97

Part VIII Ch. 64–67 L/T

§ 53.  Conveyance by officer when decreed by court; acknowledgment in open court In any proceedings at law or in equity, in any of the courts of this commonwealth having jurisdiction, if the said court shall order a conveyance to be executed by either of the parties to the said proceeding of his or her interest in any lands or tenements to any other party or person, and the party so ordered shall neglect

Part VII Ch. 57–63 Litigation

§§ 52.1, 52.2.  Repealed. 1990, Dec. 19, P.L. 1240, No. 206, § 6, effective in 90 days

Part VI Ch. 49–56 Taxation

§ 52.  Repealed. 1985, Oct. 30, P.L. 264, No. 66, § 3, effective in 90 days

Part V Ch. 41–48A Zoning, etc.

§ 51.  Execution and acknowledgment of deed to adult’s real estate by minor spouse The deed of conveyance of his or her real estate, executed and acknowledged by an adult married person, in conjunction with his or her minor spouse, if seventeen years of age or older, shall be valid and effectual, notwithstanding the minority of such minor spouse at the time of such joinder, and any such deed, heretofore made, shall be as valid as if such minor spouse had, at the time, been of lawful age.

Part IV Ch. 36–40 Insurance

§ 50.   Repealed. 1978, April 28, P.L. 202, No. 53, § 2(a)[248], effective June 27, 1978

Part III Ch. 23–35 Mortgages

§ 49.  Validity of deeds made and acknowledged by husband and wife out of state All deeds and conveyances made and executed by husband and wife, not residing within this province, and brought hither to be recorded in the county where the lands lie (the acknowledgments thereof being taken and made, in the manner hereinbefore directed, before any mayor or chief magistrate, or officer of the cities, towns or places, where such deeds or conveyances are or shall be made or executed, and certified under the common or public seal of such cities, towns or places), shall be as valid and effectual in law as if the same had been made and acknowledged in manner aforesaid, before any judge of the supreme court of this province, or before any justice of the court of common pleas, for the county where the lands lie, anything herein contained to the contrary notwithstanding.

Part II Ch. 15–22 Deeds

§ 48a.  Validating certain tax sales Whenever, heretofore, any land has been sold by the county treasurer of any county for the purpose of securing the payment of delinquent taxes which were assessed and levied against such land, and the report and return of such sale was made to the court of common pleas of the county and the deed to the purchaser of such land was executed and acknowledged by an attache of the office of the county treasurer as chief deputy treasurer of such county, and not by the treasurer of the county as required by law, such sale shall not be invalidated, after the same has been confirmed by the court, by reason of such defect, even in counties where there was no lawful authority for a deputy county treasurer at the time of such actions, if, in all other respects, the laws relating to the holding of such sale was fully complied with; and all such treasurers’ sales are hereby ratified, confirmed, and validated, and the title to any such land, purchased by any person or by the county commissioners of any county at such treasurers’ sale, and the deed, so executed and acknowledged to such purchaser, is hereby declared to be as valid as if such defect or error in making the aforesaid report and return had not been made.

Part I Ch. 1–14 Brokers

That such prima facie evidence may be rebutted by showing that such deed was not acknowledged, when the records of the court do not contain any entry of the acknowledgment of such deed; And provided further, That this act shall not affect any adjudicated case.

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§ 54

LAW OF DEEDS AND CONVEYANCES

or refuse to comply with the said order and make the said conveyance, or shall die, flee the jurisdiction, or become insane without having complied therewith, it shall be lawful for the said court to order and direct that such conveyance be made by the sheriff, prothonotary or clerk, or by a trustee specially appointed for that purpose; and the said conveyance having been duly executed by the said sheriff, prothonotary, clerk or trustee, and acknowledged in open court, shall be good and effective to convey the interest of the recusant, neglecting, deceased, persons fleeing the jurisdiction, or insane party, to the extent ordered by the court, the same as if it had been duly executed and delivered by such party personally. § 54.  Punishment for contempt Provided, That this shall not prevent the said court from punishing the contempt of the said party by fine and imprisonment, if deemed necessary. § 55.  Notice to be given before order is made Provided further, That no such order shall be made, in case of the decease of such party, until notice shall have been given to his or her heirs and legal representatives, by process duly served, if resident within the commonwealth, or, if not, by publication and copy mailed to the last known address of the same, according as the court shall order and direct. § 56.  Application of act This act shall apply to any proceeding in which the court shall have heretofore ordered such conveyance to be executed, as well as to any in which it shall hereafter be ordered. § 57.  Repealed. 1990, Dec. 19, P.L. 1240, No. 206, § 6, effective in 90 days § 81.  Form of certificate of acknowledgment The form of certificate of acknowledgment of individuals (single or married) of any deed may be in the following words: Commonwealth of Pennsylvania, ) )      ss: County of ) On this _____ day of __________ A.D. 20___, before me, a __________ in and for __________, came the above named _______________ and acknowledged the foregoing deed to be _______________ act and deed, and desired the same to be recorded as such. Witness my hand and __________ seal, the day and year aforesaid. (Seal) __________ __________ (Official character.) My commission expires __________ § 82.  Acknowledgments by married woman Acknowledgments of any married woman of any deeds, mortgages or other instruments of writing, required by law to be acknowledged, shall be taken by any judge, justice of the peace, notary public, or other person authorized by law to take acknowledgments of deeds, et cetera, in same manner and form as though said married woman were feme-sole; said acknowledgment to have the same force and effect as if taken separate and apart from the husband of said married woman. § 111.  Corporate acknowledgments by appointed attorney; form of appointment A corporation may acknowledge any deed, conveyance, mortgage or other instrument of writing by an attorney appointed by such corporation, and such

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Part IV Ch. 36–40 Insurance Part V Ch. 41–48A Zoning, etc. Part VI Ch. 49–56 Taxation Part VII Ch. 57–63 Litigation Part VIII Ch. 64–67 L/T Part IX Ch. 68–72 Condos, etc. Index

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Part III Ch. 23–35 Mortgages

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Part II Ch. 15–22 Deeds

3. Act of 1851, April 3, P.L. 320 (largely repealed). 4. Act of 1874, May 14, P.L. 159 (repealed).

Part I Ch. 1–14 Brokers

appointment may be embodied in said deed, conveyance, mortgage or other instrument of writing in substantially the following form: The (name of corporation) doth hereby constitute and appoint (name of appointee) to be its attorney for it, and in its name and as and for its corporate act and deed to acknowledge this (name of instrument), before any person having authority by the laws of the commonwealth of Pennsylvania to take such acknowledgment, to the intent that the same may be duly recorded. § 112.  Who may take such acknowledgment; form of certificate Such acknowledgment may be made before any person or officer now or hereafter to be authorized by the laws of this commonwealth to take acknowledgments of deeds or other instruments of writing, whose certificate of such acknowledgment shall be in substantially the following form: I hereby certify that on this ______ day of ______, in the year of our Lord and ______, before me, the subscriber (title of officer taking acknowledgment), personally appeared (name of attorney) the attorney named in the foregoing (name of instrument), and by virtue and in pursuance of the authority therein conferred upon him, acknowledged the said (name of instrument) to be the act of the said (corporation’s name). Witness my hand and ______ seal the day and year aforesaid. § 113.  Corporate acknowledgments prior to May 11, 1901, validated All acknowledgments or proofs of deeds, conveyances, mortgages or other instruments of writing made by corporations prior to the passage of this act, are hereby validated and confirmed. §§ 114, 115.  Repealed. 1949, May 18, P.L. 1440, § 27 § 116.  Sale, lease or mortgage not to be invalidated by informality in execution In case of any duly authorized sale, letting or mortgaging by a corporation, the same shall not be invalidated by any informality in the execution or acknowledgment of any conveyance, mortgage or other instrument by any officer of such corporation for carrying the same into effect: Provided, That no defect in substance shall be deemed to be cured hereby. § 141.  President of court of common pleas All acknowledgments and probates of deeds and conveyances, of and concerning any lands, tenements or hereditaments, lying within any part of this state, made and done before the president of the court of common pleas for the county of Philadelphia, or the president of the court of common pleas in any other county within this state, shall be as effectual and available in law, to all intents and purposes whatsoever, as if the same were done before one of the judges of the said supreme court, any law, usage or custom to the contrary in any wise notwithstanding. § 142.   Repealed. 1978, April 28, P.L. 202, No. 53, § 2(a)[30], effective June 27, 1978 § 143.  Ward justices in boroughs All the acts and acknowledgments of deeds, mortgages and other instruments of writing, made in good faith, and in the regular course of business, by the several justices of the peace, in boroughs incorporated under the act of third April, one thousand eight hundred and fifty-one,3 or accepting its provisions, and divided into wards under the act of fourteenth May, one thousand eight hundred and seventy-four,4 and elected as ward justices in said boroughs, shall be taken and accepted as valid and good in law.

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§ 144

LAW OF DEEDS AND CONVEYANCES

§ 144.  Mayor, recorder, and aldermen of Pittsburgh The mayor, recorder and aldermen, or any of them, shall and may take and receive the acknowledgment and probate of all deeds and written instruments, and receive the legal fees therefor, which acknowledgments and probates shall be as valid, and have the like force and effect, as if the same were acknowledged before a judge of the supreme court, or any judge of the court of common pleas within this commonwealth. § 145.  Repealed. 1978, Oct. 4, P.L. 909, No. 173, § 9, effective in 60 days § 146.  Repealed. 1992, Nov. 24, P.L. 717, No. 108, § 3, imd. effective § 147.   Repealed. 1978, April 28, P.L. 202, No. 53, § 2(a)[44], effective June 27, 1978 § 148.   Repealed. 1978, April 28, P.L. 202, No. 53, § 2(a)[67], effective June 27, 1978 § 149.  Probate of deeds, etc., may be taken by the mayor and recorder of Philadelphia The mayor and recorder of the city of Philadelphia shall have power and authority to take the proof of all deeds, conveyances, mortgages, or other instruments of writing, touching or concerning any lands, tenements or hereditaments, situate, lying, and being in any part of the commonwealth, and may take and receive the same fees as by law they are now severally entitled to receive for taking the acknowledgments of the same, which probates shall have the like force and effects as if the same were proved before a judge of the supreme court, or any judge of the court of common pleas within this commonwealth. § 150.  Aldermen of Philadelphia county may take acknowledgment From and after the passage of this act, the aldermen for the county of Philadelphia shall have like jurisdiction with the aldermen of the city of Philadelphia, in the acknowledgment of deeds and other instruments of writing. § 151.  Recorder of deeds The recorders of deeds should have authority to take the acknowledgment and proof of the execution of any deed, mortgage or other conveyance of any lands, tenements, or hereditaments, lying or being in the county for which they are respectively appointed as recorder of deeds, or within every city, district or part thereof, or for any contract, letter of attorney, or any other writing, under seal, to be used or recorded within their respective counties; and such acknowledgment or proof, taken or made in the manner directed by the laws of this state, and certified by the said recorder, under his hand and seal of office, which certificate shall be endorsed or annexed to said deed or instrument aforesaid, shall have the same force and effect, and be as good and available in law, for all purposes, as if the same had been made or taken before any judge of the supreme court, or president or associate judge of any of the courts of common pleas within this commonwealth. § 152.  Power of recorder of deeds as to acknowledgments enlarged The several recorders of deeds within this commonwealth, heretofore authorized to take the acknowledgment of and proof of deeds and other writings shall have full power, and are hereby authorized to take and certify the acknowledgment and proof of or concerning any such instruments of writing, as fully and with like effect as any judge or justice of the peace of this commonwealth might or could do. § 153.   Treasurers, commissioners, executors, etc., may acknowledge before any authorized officer Hereafter it shall and may be lawful for county treasurers, county commissioners, executors, administrators, trustees, or other persons acting in any official or

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Part IV Ch. 36–40 Insurance Part V Ch. 41–48A Zoning, etc. Part VI Ch. 49–56 Taxation Part VII Ch. 57–63 Litigation Part VIII Ch. 64–67 L/T Part IX Ch. 68–72 Condos, etc. Index

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Part III Ch. 23–35 Mortgages

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Part II Ch. 15–22 Deeds

5. 21 P.S. § 381. 6. 21 P.S. § 381.

Part I Ch. 1–14 Brokers

representative capacity, where now required or authorized by law to acknowledge deeds or other instruments before a justice of the peace, to acknowledge the same before a notary public or any other officer authorized by law to take acknowledgments of deeds; and any acknowledgments of deeds or other instruments, heretofore made as authorized hereby, are validated and made good and effectual: Provided, That this act shall not apply to any case heretofore adjudicated, or in which proceedings at law or in equity are now pending. § 154.  Repealed. 1978, April 28, P.L. 202, No. 53, § 2(a)[643], effective June 27, 1978 §§ 155, 156.  Repealed. 1978, April 28, P.L. 202, No. 53, § 2(a)[122], effective June 27, 1980 § 181, 182.  Repealed. 1978, April 28, P.L. 202, No. 53, § 2(a)[83], effective June 27, 1978 § 183.  Repealed. 1974, Dec. 10, P.L. 867, No. 293, § 19, imd. effective § 184.  Repealed. 1949, May 18, P.L. 1440, § 27 § 185.  Acknowledgments in territories of United States The provisions of the third section of the act of assembly of this commonwealth, approved December 14, 1854,5 authorizing acknowledgments, in certain cases, to be taken before any officer or magistrate of the state wherein such deeds, powers of attorney, or other instruments of writing, therein mentioned, are executed, be and are hereby extended so as to authorize such acknowledgments to be taken before any officer or magistrate of any territory of the United States, created and organized by act of Congress, authorized by the laws of such territory to take acknowledgments of such deeds, powers of attorney, or other instruments of writing; and all deeds, powers of attorney or other instruments of writing which have been executed prior to the passage of this act, in any territory, created by act of Congress, and acknowledged before any officer or magistrate of such territory, authorized by the laws of such territory to take acknowledgments of deeds, powers of attorney, or other instruments of writing, shall be as valid, to all intents and purposes, as if such territory had been one of the states of this Union. § 186.  May be taken in the District of Columbia The provisions of the third section of the act of assembly entitled “An act relating to the authentication of letters of attorney, protests of notaries public and assignments made out of the state and to the acknowledgment of deeds,” approved December 14, 1854,6 for taking and certifying acknowledgments of deeds and other instruments of writing, executed in any of the United States, are hereby extended to the District of Columbia, with like effect as if the said district had been therein specially mentioned and included; and all such acknowledgments heretofore taken and certified in the said district, in the manner provided in said section, are hereby validated and confirmed, and the deeds and other instruments so acknowledged, and the records thereof when recorded, shall be deemed as valid and effectual as if said district had been mentioned and included in the provisions of said section. § 187.  Acknowledgments in Cuba, and the island possessions, valid All deeds, mortgages or other instruments of writing, heretofore made or which may hereafter be made by any person or corporation, concerning lands, tenements, hereditaments or property, or any estate or interest therein, lying or being within this commonwealth, heretofore acknowledged or proved, or which may hereafter be acknowledged or proved, in the manner directed and provided

Table of Contents

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§ 188

LAW OF DEEDS AND CONVEYANCES

by the laws of this commonwealth, before any person holding the rank of major or any higher rank in the military service of the United States in Cuba, or in Porto [sic] Rico, the Philippine Islands, or other possessions of the United States, whether in the regular or volunteer service, or before any civil officer in the service of the United States in any of the said places hereinbefore referred to, shall be valid to all intents and purposes, and be in like manner entitled to be recorded as if the same had been duly acknowledged and proven before a notary public or other officer within this commonwealth having authority to take such proofs or acknowledgments according to the existing laws of this commonwealth. § 188.  The record of instruments so acknowledged previously, validated And where any such instruments, so acknowledged before the officers hereinbefore referred to, have heretofore been admitted to record in the proper office of this commonwealth, the record thereof shall be as good and valid as if same had been recorded subsequent to the passage of this act. § 189.  Pending actions not affected Provided, That this act shall not apply to any case in which an action is now pending or has been heretofore judicially determined. § 190.  Proof of official character of person taking acknowledgment And provided further, That the proof of the official character of the person taking such acknowledgment shall be his official seal, if he have one; and if not, then a certificate under the seal of any officer of the United States who has an official seal, in any of said places. § 191.  Repealed. 1974, Dec. 10, P.L. 867, No. 293, § 19, imd. effective § 221.  Repealed. 1978, April 28, P.L. 202, No. 53, § 2(a)[106], effective June 27, 1978 § 222.  Ambassadors, public ministers, etc. All ambassadors, ministers plenipotentiary, charges d’affaires, or other persons exercising public ministerial functions, duly appointed by the United States of America, shall have full power and authority to take all acknowledgments and proofs of any deeds, conveyances, settlements, mortgages, agreements powers of attorney, or other instruments under seal relating to real or personal estate, made or executed in any foreign country or state, by any person or persons, or by husband and wife, in the manner and according to the forms required by the laws of this commonwealth, and to administer all oaths or affirmations necessary or required for the purposes aforesaid; and that all acknowledgments and proofs heretofore made by any or either of the persons aforesaid, before any of the officers aforesaid, in the manner and according to the forms aforesaid, and hereby ratified and confirmed, and the same, and the records of the instruments aforesaid, if the said instruments have been heretofore recorded, are declared to be as valid and effectual as if the said acknowledgments, proofs and records had been respectively made, taken and recorded under the provisions hereof. § 223.  Deputy consuls and commercial agents, etc., of United States All conveyances, mortgages or other instruments of writing, heretofore made, or which may hereafter be made by any person or corporation, concerning any lands, tenements, hereditaments or property, or any estate or interest therein, lying or being within this commonwealth, heretofore acknowledged or proved, or hereafter acknowledged or proved, in the manner directed and provided by the laws of this commonwealth, before any deputy consul, commercial agents,7 vice and deputy commercial agents, or consular agents of the United States, duly

7. The position of commercial agent was abolished by Act Cong. April 5, 1906, c. 1366, § 3, 34 Stat. 100 (22 U.S.C. § 54).

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Part IV Ch. 36–40 Insurance Part V Ch. 41–48A Zoning, etc. Part VI Ch. 49–56 Taxation Part VII Ch. 57–63 Litigation Part VIII Ch. 64–67 L/T Part IX Ch. 68–72 Condos, etc. Index

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Part III Ch. 23–35 Mortgages

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Part II Ch. 15–22 Deeds

§ 224.   Acknowledgments taken before commissioners in chancery in foreign countries In all cases of the sale, conveyance, mortgage or other instrument of writing, heretofore made or which may be hereafter made by any person, or husband and wife, concerning any lands, tenements or hereditaments, or any estate or interest therein, lying or being within this commonwealth, and heretofore acknowledged or proved, or hereafter acknowledged or proved, before any commissioner in chancery in any foreign country, according to the forms now or hereafter required by the laws of this state relative to such acknowledgment or probate, duly certified under the seal of office of such commissioner in chancery, shall be valid to all intents and purposes, and be in like manner entitled to be recorded, as if the same had been duly acknowledged or proven according to the existing laws of this commonwealth: Provided, That no case heretofore decided judicially shall be affected by this act. § 225.  Acknowledgments by married women out of United States In all cases of the sale, conveyance, mortgage or transfer of the property of any married woman, or of any powers of attorney to make and execute such sale, conveyance, mortgage or transfer, made and executed out of the United States, the written consent of such married woman, as required by the act relating to the rights of married women, may be acknowledged before any minister, ambassador, charge d’affaires, consul or vice-consul of the United States; and such acknowledgment so made shall be equally valid as if made before a judge of a court of common pleas of this commonwealth. § 252.  Deeds defective in form No deed, grant, conveyance or assurance, heretofore made, of any lands, tenements or hereditaments whatsoever, shall be judged or taken to be defective, avoided or prejudiced, for or by reason of any want of form, or formal or orderly parts of a deed, as the Premises, Habendum, Tenendum, Reddendum, the Clause of Warrantee, the Conclusion, In Witness whereof, and the Date, or for Misnaming, Mis-recital, or Non-recital of any of the said lands or hereditaments, or for Mis-recital or Non-recital, or not mentioning, or not true mentioning, of the grantor’s estate of, in or to, the premises, or for want of Livery and Seizin, or attournment, or proofs of the consideration money actually paid, or for not producing in court, upon trial, any of the said deeds or grants, recited in the said conveyances, or for not being recorded in the Rolls-office; but that all and every the said deeds, grants and conveyances, releases and assurances, shall be and are hereby declared and enacted to be good and available in law, and shall be expounded as the law of this province was when they were made, and shall conclude all strangers, as well as privies to the same: saving to every person and persons, other than to the said grantors, their heirs and successors, all such rights, titles, estates, claims and interests, as they or any of them had or ought to have of, in or to the said lands, tenements and hereditaments, or any part

Part I Ch. 1–14 Brokers

appointed for and exercising the functions of his office, in the place where such acknowledgment has been or may be taken, and certified under the public official seal of such deputy consul, commercial agents, vice and deputy commercial agents or consular agents, shall be valid to all intents and purposes, and be in like manner entitled to be recorded, as if the same had been duly acknowledged and proven before a notary public, or other officer, within this commonwealth, having authority to take such proofs or acknowledgments according to the existing laws of this commonwealth, and where any such instruments so acknowledged before such consular officers have heretofore been admitted to record in the proper office in this commonwealth, the record thereof shall be as good and valid as if they had been recorded subsequent to the passage of this act: Provided, That this act shall not apply to any case in which an action is now pending or has been heretofore judicially decided.

Table of Contents

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§ 253

LAW OF DEEDS AND CONVEYANCES

thereof, at the time when such deeds or conveyances were sealed and delivered, so as they do pursue their said rights, titles, claims or interests, by way of action or lawful entry, before the first day of October, which shall be in the year of our Lord 1710. § 253.  Repealed. 1992, Nov. 24, P.L. 717, No. 108, § 3, imd. effective § 254.  Deeds of husband and wife made prior to act of 1770 No grant, bargain and sale, lease, release, feoffment, deed, conveyance or assurance whatsoever, heretofore bona fide made and executed by husband and wife in manner aforesaid, of any lands, tenements and hereditaments whatsoever, shall be deemed, held or adjudged invalid or defective in law, or avoided or prejudiced; but that all and every the said grants, bargains and sales, releases, feoffments, deeds, conveyances and assurances, shall be, and are hereby declared to be, good and valid in law for transferring and passing the estates, rights, titles, and interests of such husband and wife, according to the true intent and meaning of the words thereof; saving to every person and persons, bodies politic and corporate whatsoever (other than to the said husband and wife), their heirs and successors, all such rights, titles, estates, claims and interests, as they or any of them have or ought to have, of, in or to the said lands, tenements and hereditaments. § 255.  Repealed. 1978, April 28, P.L. 202, No. 53, § 2(a)[248], effective June 27, 1978 § 256.  Confirmation of title to real estate sold by trustees of married women In all cases wherein any real estate has been granted by any deed or deeds, to any trustee or trustees, for the sole and separate use of any married woman, and wherein the deed or deeds to any such trustee or trustees for any such real estate so granted to him or them, vested in his or their cestui que trust the full beneficial estate in fee simple without restriction or control imposed by the grantor or grantors in the terms of the deed or deeds, or an estate vested in another to be impaired or effected, and any such trustee or trustees have, prior to the first day of January, 1870, in good faith, and at the request or direction of his or their cestui que trust, sold or conveyed any such real estate by him or them so held without the leave of the proper court, for a valuable and full consideration at the time thereof, and such consideration has been paid to his or their cestui que trust in good faith, and the purchaser or purchasers under any such sale or conveyance have in good faith entered into possession and enjoyment of any real estate so sold or conveyed, and have erected valuable and permanent buildings thereon, and have sole or conveyed the same, or any part thereof, to any other person or persons, it shall be competent for the courts of common pleas of this commonwealth, and any such court having jurisdiction in any county of this commonwealth in which any such real estate so sold or conveyed is situate, is hereby given jurisdiction and authority upon the petition or petitions, and upon proof of such facts by any person or persons interested in any such sale or conveyance, or in the title to any real estate so sold or conveyed, if approving of any such sale or conveyance, to approve, ratify and confirm the same with the same effect, as if the same had been sold or conveyed under the previous authority of such court, and to authorize and direct the proper person or persons to execute and deliver sufficient deed or deeds of release and confirmation to the person or persons, and his, her or their heirs and assigns claiming title to any real estate so sold or conveyed by, through, or under any such sale or conveyance with or without security as the circumstances of the case may require in the judgment and discretion of the court: Provided, That notice shall be given to all parties in interest, either personal or by publication, as the court may direct. § 257, 258.  Repealed. 1978, April 28, P.L. 202, No. 53, § 2(a)[248], effective June 27, 1978

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Ch. 17

Part I Ch. 1–14 Brokers Part II Ch. 15–22 Deeds Part III Ch. 23–35 Mortgages Part IV Ch. 36–40 Insurance Part V Ch. 41–48A Zoning, etc. Part VI Ch. 49–56 Taxation Part VII Ch. 57–63 Litigation Part VIII Ch. 64–67 L/T Part IX Ch. 68–72 Condos, etc.

§ 259.  Defective acknowledgments by husband and wife prior to January 4, 1923 No deed, mortgage, or other instrument of writing, of and concerning any land, tenements, hereditaments, or any estate, right, title or interest therein, required by law to be acknowledged, which purports to have been acknowledged by husband and wife before any judge, justice of the peace, alderman, notary public, commissioner of deeds, or other person authorized by law, within this State or within any other State of the United States, or without the United States, to take acknowledgment of deeds, et cetera, shall be deemed, held, or adjudged invalid or defective or insufficient in law, or avoided or prejudiced, by reason of informality or omission in setting forth the particulars of the acknowledgment made before such person, as aforesaid, in the certificate thereof, where the acknowledgment bears date prior to the fourth day of January, in the year one thousand nine hundred and twenty-three; but all and every such deed, mortgage, or other instrument of writing, where the acknowledgment thereof bears such prior date, and purports to have been made by husband and wife, as aforesaid, or the record of such deed, mortgage, or other instrument of writing, duly made in the proper office for recording of deeds in this Commonwealth, shall be as good, valid, and effectual in law, for transferring, passing, and conveying the estate, right, title, and interest of such husband and wife, of, in, and to the lands, tenements, and hereditaments, mentioned in the same, as if all the requisites and particulars of such acknowledgment, mentioned in the act, entitled “An act for the better confirmation of the estates of persons holding or claiming under feme-coverts, and for establishing a mode by which husband and wife may hereafter convey their estates,” approved the twenty-fourth day of February, one thousand seven hundred and seventy,8 were particularly set forth in the certificate thereof; and the record of such deed, mortgage, or other instrument of writing, made in the proper county, as aforesaid, or exemplifications of such record duly certified, shall be legal evidence in all cases in which the original would be competent evidence. This act shall not apply to suits now pending and undetermined. § 260.  Defective acknowledgments by wife prior to April 4, 1901 No deed or conveyance of lands, tenements, hereditaments whatsoever, executed within or without this Commonwealth, and delivered by husband and wife prior to the fourth day of April, one thousand nine hundred and one, to bona fide purchasers for valuable consideration, and acknowledged by them before an officer of this Commonwealth, or of any other State of the United States, duly authorized by law to take such acknowledgment, shall be deemed, held, or adjudged invalid, defective, or insufficient in law, by reason of the fact that the acknowledgment of the wife was not separately taken, or does not show that the wife was examined separate and apart from her husband and that the deed or conveyance was read and the full contents thereof made known to her, or that, upon separate examination, she did declare that she did voluntarily and of her own free will and accord seal and, as her act and deed, deliver the said deed or conveyance without any coercion or compulsion of her husband, and notwithstanding the fact that the seal of the officer taking the acknowledgment was not attached to such deed or conveyance; but all and every such deed and conveyance shall be good, valid, and effectual in law for transferring, passing, and conveying the estate, title, and interest of such husband and wife in and to the lands, tenements, and hereditaments mentioned in the same, as if all the requisites and particulars then required by law for such acknowledgments had been fully complied with, and particularly set forth in the acknowledgment thereof; and the record thereof duly made in the proper office for the recording of deeds, and exemplification of the same duly certified, shall be legal evidence in all cases in

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8. 21 P.S. §§ 50 (repealed).

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which the original would be competent evidence: Provided, however, That this act shall not validate deeds and conveyances heretofore declared invalid in any judicial proceeding, nor affect any suit pending and undetermined. § 261.  Acknowledgments made in any of the United States by husband and wife Any and every grant, bargain and sale, release, or other deed of conveyance or assurance of any lands, tenements or hereditaments in this commonwealth, heretofore bona fide made, executed and delivered by husband and wife, within any other of the United States, where the acknowledgment of the execution thereof has been taken and certified by any officer or officers in any of the states where made and executed, who was or were authorized by the laws of such state to take and certify the acknowledgment of deeds of conveyance of lands therein, shall be deemed and adjudged to be as good, valid and effectual in law for transferring, passing and conveying the estate, right, title and interest of such husband and wife, of, in and to the lands, tenements and hereditaments therein mentioned, and be in like manner entitled to be recorded, as if the acknowledgment of the execution of the same deed had been in the same and like way, manner and form taken and certified by any judge, alderman or justice of the peace, of and within this commonwealth. § 262.  Conveyances by trustees Whenever heretofore real property has been conveyed to any person as “Trustee,” without naming the cestuis que trustent, and without declaring the purpose of the trust, and such trustee has thereafter, in good faith, made a conveyance of such property to a third person, in his own name as “Trustee,” without disclosing the cestuis que trustent, or without showing his right to make such conveyance, when the deed given by such trustee is otherwise in proper form and capable of conveying the estate intended—such deed and conveyance are hereby made good and valid and effectual to transfer, pass, and convey the estate, right, title, and interest of the cestuis que trustent for whom the trustee held, in and to such real property. § 263.  Deeds executed without the state, defectively acknowledged, but recorded thirty years All the deeds and conveyances in due forms for lands within this state, which purport to have been executed and acknowledged or proved without the limits of this state, and which have been recorded in any county of this state in which any part of the lands conveyed lie for a period of thirty years previous to the passage of this act, notwithstanding such deeds and conveyances shall not have been acknowledged or proved at the time they may have respectively recorded according to the requirements of the then existing laws of this commonwealth in relation to the recording of deeds, shall be received and admitted in evidence in like manner and with effect as if the same had been duly acknowledged or proved at the time of their being respectively executed, or previous to their being recorded. § 264.  Above act to apply only when possession has accompanied the title The tenth section of the act of April 15, 1851,9 to incorporate the Meadville cemetery, &c., which provides for deeds defectively acknowledged out of the state, shall apply to cases only when possession of the land has been held by the person or persons claiming, under such title, during the period named in said section. § 265.  Deeds made in any other state Any and every deed of grant, bargain and sale, release, or other deed of conveyance or assurance of any lands, tenements or hereditaments in this common9. 21 P.S. § 263.

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Part IV Ch. 36–40 Insurance Part V Ch. 41–48A Zoning, etc. Part VI Ch. 49–56 Taxation Part VII Ch. 57–63 Litigation Part VIII Ch. 64–67 L/T Part IX Ch. 68–72 Condos, etc. Index

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10. 21 P.S. § 149. 11. Act of 1824, March 29, P.L. 167 (72 P.S. § 6137).

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wealth, heretofore bona fide made, executed and delivered by husband and wife, or other grantor or grantors, within any other of the United States, where the acknowledgment of the execution thereof has been taken and certified by any officers in the state where the same was made and executed, and the acknowledgment thereof taken, who was authorized by the laws of such state to take and certify the acknowledgment of deeds of conveyance of lands therein, shall be deemed and adjudged to be as good, valid and effectual in law, for transferring, passing and conveying the estate, right, title and interest of such husband and wife, or other grantor or grantors of, in and to the lands, tenements and hereditaments therein mentioned, and be in like manner entitled to be recorded, and if recorded, such record thereof shall be as good and effectual as if the acknowledgment of the execution of the same deed had been in the same and like way, manner and form, taken and certified by any judge, alderman or justice of the peace of and within this commonwealth. § 266.  Sales by executors under wills probated in other states alone All deeds and conveyances of lands within this commonwealth, made and executed, and duly recorded in the county where the lands therein conveyed lie, more than twenty-one years before the passage of this act, under the authority of any last will and testament, by the executor or executors thereof, the said will having been duly proved, and letters testamentary granted, as prescribed by the laws of the state of which the testator was a citizen at the time of his death, shall be held to have the same force and effect to pass and convey the estate that was in the testator at the time of his decease, and intended to be conveyed by the deed or conveyance, as if such will had been duly proved and letters testamentary granted within this commonwealth: Provided, That nothing herein contained shall affect the rights of parties to any suit now pending. § 267.  Acknowledgments made before mayor or recorder of Philadelphia prior to January 9, 1817 All probates of deeds or other instruments of writing, touching or concerning any lands, tenements or hereditaments situate, lying and being in any part of this commonwealth, taken or made before the mayor or recorder of the city of Philadelphia, prior to the passage of the act of January 9, 181710 which would have been good and valid if said act of January 9, 1817, had been in force at the time of the taking or making of said probates, shall be and are hereby declared to be as good and effectual, and may be recorded in the proper county, in like manner as if said probates had been taken and made subsequent to the passage of said act. § 268.  Repealed. 1949, May 18, P.L. 1440, § 27 § 269.  Deeds by county commissioners, which have not been acknowledged before a justice Any deed or deeds which have been heretofore, or shall hereafter be executed by the commissioners of any county, in pursuance of the act of March 29, 182411 but which shall not have been acknowledged before a justice of the peace before delivery, shall, upon proof of the execution thereof by the subscribing witness or witnesses thereto, as in case of ordinary deeds, be held to be as good and valid, for the purposes of record, as though such deed had been regularly acknowledged before delivery. § 269.1.  Commissioners’ deed on resale of land purchased at tax sale Whenever heretofore any land purchased by the county commissioners of any county for the use of a county at a county treasurer’s sale held for the purpose of securing the payment of delinquent taxes which were assessed and levied against

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§ 270

LAW OF DEEDS AND CONVEYANCES

such land has been sold by the county commissioners in accordance with the law governing the sale of such land, and the county commissioners in pursuance of such sale executed a deed for said lands, and the acknowledgment of such deed by the county commissioners was defective in any respect, or where the acknowledgment was not taken in open court or before a Justice of the Peace, such sale and such deed shall not be invalidated by reason of such defective acknowledgment, or by reason of the fact that such deed was not acknowledged in open court, or before a Justice of the Peace if in all other respects the laws relating to the holding of such sale were fully complied with and the deed was in fact acknowledged before any officer duly authorized by law to take acknowledgments; and all such commissioners’ sales and commissioners’ deeds are hereby ratified, confirmed and validated and the title to any such land purchased by any person at such commissioners’ sale, and the deed executed and acknowledged to such purchaser is hereby declared to be as valid as if such deed had been properly acknowledged in full conformity with the law relating thereto. § 270.  Acknowledgments under private seals of aldermen Instruments, which have been heretofore acknowledged or proved before any alderman of this commonwealth, duly required by law to be provided with a public aldermanic seal to authenticate all his acts and attestations, the certificate of which shall have been made under the hand or private seal of the alderman, such certificate shall be taken to be as valid for all purposes as if the said acknowledgment or proof had been certified or authenticated under their aldermanic seal, and the recording of such deeds and other instrument is hereby ratified and confirmed. § 271.  Acknowledgments or probates without certification under seal All acknowledgments or probates of deeds or other instruments of writing, heretofore taken or made, or which shall hereafter be taken or made, shall be construed to have the same effect to all intents and purposes, although the same may have been certified by the officers before whom such acknowledgments or probates have been made under their hands only, as if the same had been certified under their hands and seals, and the omission in any certificates heretofore made, or hereafter to be made, by any officer authorized to take such acknowledgments and probates, to certify the same to have been taken before him under his seal (the same being duly certified under his hand), shall not be held or adjudged to avoid, prejudice, or render invalid the acknowledgment or probate of any deed or other instrument of writing as aforesaid, nor shall the recording heretofore done, or hereafter to be done, of any deed or other instrument of writing as aforesaid, be deemed invalid or defective by reason of the omission of any such officer as aforesaid to certify any acknowledgment or probate as aforesaid under his seal, the same being certified under his hand in due form. § 272.  Repealed. 1949, May 18, P.L. 1440, § 27 § 273.  Acts done by notaries, who were at the same time justices of the peace All acknowledgments, affidavits, or other notarial acts, heretofore taken or performed by notaries public of this state, who were at the same time justices of the peace, otherwise in conformity with the requirements of the law, shall be valid to all intents and purposes, as if the same had been taken or performed by notaries public of this commonwealth who were not, at the same time, justices of the peace: Provided, however, That no case heretofore judicially decided or now pending shall be affected by this act. § 274.  Sheriff’s sales in mortgage foreclosures under act of 1901; application of act That in all cases in which writs of scire facias sur mortgage have been issued subsequent to the passage of an act, entitled “An act relating to the service

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Part IV Ch. 36–40 Insurance Part V Ch. 41–48A Zoning, etc. Part VI Ch. 49–56 Taxation Part VII Ch. 57–63 Litigation Part VIII Ch. 64–67 L/T Part IX Ch. 68–72 Condos, etc. Index

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12. See 42 Pa.C.S. § 1722. 13. 21 P.S. § 804 (repealed).

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of certain process in actions at law, and the effect thereof, and providing who shall be made parties to certain writs,” approved the ninth day of July, Anno Domini one thousand nine hundred and one,12 and prior to the passage of this act, and where by reason of the death of the original mortgagors intestate, and no administration had upon their estates prior to the issuing of the writ of scire facias, or where they, being non-residents of the county wherein the mortgaged premises was situated, had aliened the same prior to the issue thereof, no service of said writ was had upon said mortgagors; but in which the affidavit required by division ten of section one of said act of July ninth, one thousand nine hundred and one, has been filed with the praecipe, and service of the writs of scire facias duly made upon or accepted for the parties named in said affidavit as the owners of the premises described in said writ, and the real estate, bound by the liens of the mortgages upon which said writs of scire facias sur mortgage issued, has been sold by the sheriff of the proper county by virtue of writs of levari facias awarded upon judgments entered in such actions, the sales so made shall and the same are hereby declared to be valid and effectual to vest in the purchasers at such sales the title to said real estate, with the same force and effect as if service of the writs of scire facias had been made upon the original mortgagors, or their legal representatives, in accordance with the acts of assembly in force prior to the passage of said act of July ninth, Anno Domini one thousand nine hundred and one. Provided, however, That this act shall not apply to any case which shall have heretofore been judicially adjudicated. § 274a.  Sheriff’s sales when release of mortgage was not filed; validation Whenever a writ of scire facias sur mortgage has heretofore been issued against the real owner or owners of real estate without the original mortgagor or mortgagors having been joined as defendant or defendants, and a judgment of foreclosure secured in such case and the property sold by the sheriff, then, and in that event, the title acquired by the purchaser at such sale shall be a full and complete title even though the release of the holder of the mortgage to the original mortgagor or mortgagors, releasing him, her or them, and their heirs, executors and administrators, from all personal liability for the debt secured by the mortgage being foreclosed, was not filed before the issuance of the writ as required by law: Provided, That the original mortgagor or mortgagors, him, her or them, or their heirs, executors and administrators, be released by the mortgagee, his heirs, executors and administrators, from all personal liability for the debt secured by the mortgage by release filed in the proper office. § 274b.   Sheriff’s sales without inquisition of bonds not containing waiver; validation Whenever prior to the act, approved the sixth day of May, one thousand nine hundred and twenty-nine (Pamphlet Laws, one thousand five hundred and fiftyseven), entitled “An act permitting the sale of mortgaged real estate under a judgment upon the bond accompanying such mortgage to be made by the sheriff upon a writ of fieri facias without inquisition and without any other writ,”13 any sale of mortgaged real estate under a judgment upon the bonds, not containing a waiver of inquisition, accompanying such mortgage has been made by the sheriff upon a writ of fieri facias without inquisition, such sale shall be deemed and taken to be valid and effectual for all purposes: Provided, That the provisions of this act shall not apply to any instance where the validity of such sale has been made the subject of litigation prior to the approval of this act.

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§ 275

LAW OF DEEDS AND CONVEYANCES

§ 275.  Defective sheriffs’ deeds Sheriffs’ deeds of real estate situate in any of the several counties of this Commonwealth, made and recorded prior to the passage of this act, shall hereafter be good and valid, notwithstanding the fact that the acknowledgment is defective, or the prothonotary failed to attach any acknowledgment. § 276.  Validation of deeds defectively executed No deed or conveyance of lands, tenements, and hereditaments whatsoever executed within or without this Commonwealth and delivered to a bona fide purchaser or purchasers for valuable consideration, and acknowledged by the grantor or grantors before an officer of this Commonwealth or of any other State of the United States duly authorized by law to take such acknowledgment, and recorded in the office for the recording of deeds in the county where such lands, tenements, and hereditaments are situate, shall be deemed, held or adjudged invalid, defective, or insufficient in law by reason of the fact that the signature or signatures of the grantor or grantors were not signed under seal; but all and every such deed and conveyance shall be good, valid, and effectual in law for transferring, passing, and conveying the estate, title, and interest of the grantor or grantors in and to the lands, tenements, and hereditaments mentioned in the deed or conveyance as if all the requisites and particulars required by law had been fully complied with and particularly set forth: Provided, however, That this act shall not validate deeds and conveyances heretofore declared invalid in any judicial proceeding nor affect any suit pending and undetermined. § 277.  Validation of conveyances by corporations and partnerships Where any deed of conveyance, or mortgage, or other instrument in writing affecting real estate, heretofore executed, purporting to be the act and deed of a corporation or of a joint stock or partnership association or limited partnership or registered partnership, or specifically therein naming the corporation or the joint stock or partnership association or limited partnership or registered partnership as the grantor or party of the first part, shall have been erroneously executed by failure to affix the corporate seal or otherwise, or shall have been erroneously acknowledged by any officer or officers of such corporation or such joint stock or partnership association or limited partnership or registered partnership, or shall have been executed and acknowledged by the officers of such corporation or such joint stock or partnership association or limited partnership or registered partnership in the manner prescribed by law for the execution and acknowledgment of deeds and mortgages by individuals or otherwise, but in such manner as to show that they were signing or acknowledging the said deed or mortgage in their official capacity, or was executed, acknowledged and delivered after the expiration of the period of its existence fixed by its charter or by its articles of association, such deed or mortgage is hereby ratified, confirmed and made valid, as the act and deed of the corporation or of the joint stock or partnership association or limited partnership or registered partnership, and shall be taken to be of the same validity and effect as if properly executed and acknowledged in the manner prescribed by law for the execution and acknowledgment of deeds and mortgages by corporations or by joint stock or partnership associations or limited partnership or registered partnership: Provided, That no case now in litigation shall be affected by this act. § 277.1.  Validation of defective acknowledgment by president of corporation In all cases where a president of a corporation who was in fact authorized to, and did, execute a written instrument by signing the name of the corporation by himself as president, but the acknowledgment certificate attached to such instrument fails to state that he was authorized to execute the instrument, and the language used in such certificate is not in the exact form prescribed by law for such acknowledgments and certificates, such acknowledgments are hereby

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Part V Ch. 41–48A Zoning, etc. Part VI Ch. 49–56 Taxation Part VII Ch. 57–63 Litigation Part VIII Ch. 64–67 L/T Part IX Ch. 68–72 Condos, etc. Index

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§ 278.  Conveyances by executors or trustees under power of sale Where any deed or conveyance of land within this State has been executed, acknowledged, and delivered by any executor of or trustee appointed by the last will of the deceased owner of such lands, and where said will contained a power or authority to the executor, trustee or trustees, or executors, to sell lands of the testator, and where such will has been duly probated, and such deed or conveyance has been placed of record prior to the first day of January, nineteen hundred and ten, in the county where the lands were situate, and where the purchase money for said lands has been paid to any such executor or trustee, and any possession of the lands conveyed was thereupon taken or claimed pursuant to such conveyance, and has continued to the date of the passage of this act, without any action having been heretofore brought and adjudicated in court determining the invalidity of such conveyance, acknowledgment, or record, or the possession or right of possession of the grantee therein, his heirs or assigns, such deed or conveyance, and such acknowledgment and record, shall be deemed and adjudged to be good, valid, and effectual in law for transferring and conveying the estate, right, title, and interest of such testator and of the grantor or grantors of, in, and to the lands, tenements, and hereditaments herein mentioned. § 279.  Correction of defective certificates by court In every case, when it shall be alleged by any party in interest that any deed, mortgage, power of attorney, or contract in relation to real estate, to which is appended a certificate of acknowledgment, defective in form, was in fact really and properly acknowledged in due form of law, by the grantor or grantors therein named, it shall be lawful for the court of common pleas of the county in which the land deeded, mortgaged or contracted is situated, to examine into the truth of such allegation, and if satisfied of its truth, to make a decree for the reforming of such certificate of acknowledgments in accordance with the actual facts: Provided, That this act shall not apply where suit or suits have already been commenced to recover the real estate conveyed by such instruments of writing, to which is appended said certificate of acknowledgment defective in form. § 280.  Procedure by bill in equity The proceedings under this act shall be by bill in equity, as in other cases for the reformation of a written instrument. § 281.  Defective acknowledgments prior to 1931 No grant, bargain and sale, feoffment, deed of conveyance, release, assignment, or other assurance of lands, tenements and hereditaments, whatsoever, bearing date prior to the year one thousand nine hundred and thirty-one, made, executed and delivered by husband and wife, or by any person or trustee or attorney in fact for any other person or persons, to a bona fide purchaser or purchasers for a valuable consideration, and acknowledged before any officer duly authorized by law to take such acknowledgment, shall be deemed, held or adjudged invalid or defective or insufficient in law by reason of any informality in such acknowledgment, or by reason of the acknowledgment thereto having been made by any trustee or attorney in fact in his individual capacity instead of as such trustee

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§ 277.2.  Repealed. 1966, Jan. 18, P.L. (1965) 1305, § 50(a)(258), 15 P.S. § 2203(a)(258)

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validated. All such instruments in writing, so acknowledged and certified, may be offered in evidence without further proof. If such instrument, so acknowledged and certified, conveys, or relates to, or concerns any interest in, lands, it may be recorded in the recorder’s office of the county or counties where such lands lie, and the record of same, made before or after the passage of this act, shall be constructive notice of all matters contained therein; and, such record, or exemplification of same duly certified, shall be legal evidence in all cases in which the original would be competent evidence.

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§ 281.1

LAW OF DEEDS AND CONVEYANCES

or attorney in fact; but all and every such grant, bargain and sale, feoffment, deed of conveyance, release, assignment, or other assurance, so made, executed and acknowledged, as aforesaid, shall be as good, valid and effectual in law for transferring, passing and conveying the estate, right, title and interest of such husband and wife of, in and to the lands, tenements and hereditaments mentioned in the same, as if all the requisites and particulars of such acknowledgment had been made according to law, and as if such trustee or attorney in fact had made the acknowledgment thereto in such capacity; and the record of the same duly made in the proper office for recording of deeds in this Commonwealth, and exemplifications of the same duly certified, shall be legal evidence in all cases in which the original would be competent evidence. § 281.1.  Defective acknowledgments prior to 2013 No grant, bargain and sale, feoffment, deed of conveyance, release, assignment, mortgage or other assurance of lands, tenements and hereditaments, whatsoever, bearing date prior to the year two thousand thirteen, made, executed and delivered by husband and wife, or by any person or trustee or attorney in fact for any other person or persons, to a bona fide purchaser or purchasers for a valuable consideration, and acknowledged before any officer duly authorized by law to take such acknowledgment, shall be deemed, held or adjudged invalid or defective or insufficient in law by reason of any informality or defect in such acknowledgment as not being made according to law, or because the date of the acknowledgment predates the date of the instrument, or by reason of the acknowledgment thereto having been made by any trustee or attorney in fact in his individual capacity instead of as such trustee or attorney in fact; but all and every such grant, bargain and sale, feoffment, deed of conveyance, release, assignment, mortgage or other assurance, so made, executed and acknowledged, as aforesaid, shall be as good, valid and effectual in law for transferring, passing and conveying the estate, right, title and interest of such husband and wife of, in and to the lands, tenements and hereditaments mentioned in the same, as if all the requisites and particulars of such acknowledgment had been made according to law, and as if such trustee or attorney in fact had made the acknowledgment thereto in such capacity; and the record of the same duly made in the proper office for recording of deeds in this Commonwealth, and exemplifications of the same duly certified, shall be legal evidence in all cases in which the original would be competent evidence. § 282.  Mortgage sales of realty by foreign fiduciaries validated; exception In all cases where mortgages on real estate situate in this Commonwealth and the bonds accompanying the same are held by fiduciaries located in or resident of any state, territory or possession of the United States or of any foreign country, or have been held and owned by residents of any other state, territory or possession of the United States of America, or of any foreign country, and the said owners have died and letters testamentary or of administration, or other authority has granted by or under the laws of such other state, territory or possession of the United States of America, or of any foreign country, and such fiduciaries, executors, or administrators have caused writs of scire facias to issue on such mortgages and judgments to be entered thereon or have caused judgments to be entered on the bonds accompanying the said mortgages, and the real estate described in said mortgages have been sold by the sheriff in pursuance of writs of fieri facias, venditioni exponas, or levari facias issued on such judgments, the sales so made and every of them, shall and the same are hereby declared to be valid and effectual to vest in the purchasers at such sales the title to the said real estate, with the same force and effect as if the said judgments had been entered and said writs of execution had been issued by fiduciaries located or resident in this Commonwealth or by executors or administrators to whom letters had been granted by the register of wills of a county in this Commonwealth.

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Part IV Ch. 36–40 Insurance Part V Ch. 41–48A Zoning, etc. Part VI Ch. 49–56 Taxation Part VII Ch. 57–63 Litigation Part VIII Ch. 64–67 L/T Part IX Ch. 68–72 Condos, etc. Index

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§ 283.  County treasurers’ deeds in tax sales validated notwithstanding defective acknowledgment Whenever heretofore any land has been sold by the county treasurer of any county for the purpose of securing the payment of delinquent taxes which were assessed and levied against such land, and the county treasurer in pursuance of such sale executed a deed for said lands, and the acknowledgment of such deed by the county treasurer was defective in any respect, or where the records of the court failed to show a minute of such acknowledgment in open court, such sale and such deed shall not be invalidated by reason of such defective acknowledgment, if, in all other respects, the laws relating to the holding of such sale were fully complied with and the deed was, in fact, acknowledged before a judge of said county; and all such treasurers’ sales and treasurers’ deeds are hereby ratified, confirmed and validated; and the title to any such land purchased by any person or by the county commissioners of any county at such treasurers’ sale and the deed executed and acknowledged to such purchaser is hereby declared to be as valid as if such deed had been acknowledged in open court and a proper minute thereof made in full conformity with the law relating thereto. § 283.1.  County treasurer’s deeds validated notwithstanding defective acknowledgment or lack of acknowledgment in open court Whenever heretofore any land has been sold by the county treasurer of any county for the purpose of securing the payment of delinquent taxes which were assessed and levied against such land, and the county treasurer in pursuance of such sale executed a deed for said lands, and acknowledgment of such deed by the county treasurer was defective in any respect, or where such deed was not acknowledged in open court, or where the records of the court failed to show a minute of such acknowledgment in open court, such sale and such deed shall not be invalidated by reason of such defective acknowledgment, or by reason of the fact that such deed was not acknowledged in open court, or by reason of the fact that the records of the court fail to show a minute of such acknowledgment in open court, if in all other respects the laws relating to the holding of such sale were fully complied with and the deed was in fact acknowledged before any officer duly authorized by law to take acknowledgments; and all such treasurers’ sales and treasurers’ deeds are hereby ratified, confirmed and validated, and the title to any such land purchased by any person, or by the county commissioner of any county at such treasurers’ sale, and the deed executed and acknowledged to such purchaser is hereby declared to be as valid as if such deed had been acknowledged in open court and a proper minute thereof made in full conformity with the law relating thereto. § 283.2.  County treasurer’s deed validated; defective acknowledgment, etc. Whenever heretofore any land has been sold by the county treasurer of any county for the purpose of securing the payment of delinquent taxes which were assessed and levied against such land, and the county treasurer in pursuance of such sale executed a deed for said lands and acknowledgment of such deed by the county treasurer was defective in any respect, or where such deed was not acknowledged in open court or where the records of the court failed to show a minute of such acknowledgment in open court, or where the county treasurer’s return to any tax sale so made was not made to the next term, such sale and such deed shall not be invalidated by reason of such defective acknowledgment, or by reason of the fact that such deed was not acknowledged in open court or by reason of the fact that the records of the court fail to show a minute of such acknowledgment in open court, or for failure to make return of any tax sale so made to the next term, if in all other respects the law relating to the holding of

Part I Ch. 1–14 Brokers

The provisions of this act shall not apply to any case which shall have heretofore been judicially adjudicated.

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§ 283.3

LAW OF DEEDS AND CONVEYANCES

such sale were fully complied with and the deed was in fact acknowledged before an officer duly authorized by law to take acknowledgments and a return thereof made at a subsequent term of court; and all such treasurer’s sales and treasurer’s deeds are hereby ratified, confirmed and validated, and the title to any such land purchased by any person or by the county commissioners of any county at such treasurer’s sale and the deed executed and acknowledged to such purchaser is hereby declared to be as valid as if such deed had been acknowledged in open court, proper minute thereof made, and return to said tax sale duly made in full conformity with the law relating thereto. § 283.3.  County treasurers deeds prior to December 31, 1965 validated; no proof of service filed, etc. Whenever, prior to December 31, 1965, any property was sold by a county treasurer for the purpose of securing the payment of delinquent taxes which were assessed and levied against such property, and no proof of service was filed or in lieu of personal service the property was not properly posted or if it was properly posted the certificate of posting was not filed or as if the proof of service had been filed, or if no proof of service was filed, if, in all other respects the law relating to the holding of such sale was fully complied with, all such sales and county treasurer’s deeds are hereby ratified, confirmed and validated and the title to any such property purchased by any person or by the county commissioners of the county is hereby declared to be as valid as if the proof of service had been filed or as if the property had been properly posted or the certificate of posting had been properly filed. § 284.  Instruments acknowledged by grantors before themselves validated The title to any real estate situate in this Commonwealth which has heretofore been conveyed to any person, partnership, or corporation authorized to hold such real estate by any magistrate, justice of the peace or alderman, who also made acknowledgment of such a conveyance before himself and is now deceased, is hereby declared to be good and valid, and any such person, partnership or corporation grantee as aforesaid and his or her or its respective heirs, successors and assigns shall hold and may convey such title and estate, and all such conveyances heretofore made are hereby ratified and confirmed. § 285.  Acknowledgments in form used prior to Uniform Acknowledgment Act validated; admissibility in evidence; records All acknowledgments of written instruments made and certified in the manner and form in general use in the Commonwealth of Pennsylvania prior to the effective date of the act, approved the twenty-fourth day of July, one thousand nine hundred forty-one (Pamphlet Laws 490)14 are hereby validated. All such instruments in writing so acknowledged and certified, may be offered in evidence without further proof. If such instrument so acknowledged and certified conveys, or relates to or concerns any interest in lands, it may be recorded in the recorder’s office of the county or counties where such lands lie, and the record of same made before or after the passage of this act shall be constructive notice of all matters contained therein, and such record or exemplification of same, duly certified, shall be legal evidence in all cases in which the original would be competent evidence. § 286.  Acknowledgments by persons in armed forces; validation; record; evidence All acknowledgments of written instruments made by any person while on active duty with the armed forces of the United States in the manner and form prescribed by the Uniform Acknowledgment Act, approved the twenty-fourth

14. 21 P.S. § 291.1 et seq.

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15. 21 P.S. § 291.1 et seq. 16. 57 P.S. § 54a (repealed).

Part I Ch. 1–14 Brokers

day of July, one thousand nine hundred forty-one (Pamphlet Laws 490),15 or in the manner and form in general use in the Commonwealth prior to the effective date of said act (even though made subsequent to such effective date), are hereby validated and all such instruments in writing so acknowledged and certified, may be offered in evidence without further proof, and if such instrument so acknowledged and certified conveys, or relates to or concerns any interest in lands, it may be recorded in the recorder’s office of the county or counties where such lands lie, and the record of same made before or after the passage of this act shall be constructive notice of all matters contained therein, and such record or exemplification of same, duly certified, shall be legal evidence in all cases in which the original would be competent evidence, notwithstanding the fact that such acknowledgments were not made before any of the persons authorized to take such acknowledgments by the act, approved the twenty-first day of May, one thousand nine hundred forty-three (Pamphlet Laws 316),16 if the same were taken before any person at any time prior to the effective date of said act authorized to take such acknowledgments, and notwithstanding any defect in the form or certification of such acknowledgments. § 287.  Deed or transfer without certificate showing residence When any real estate or interest in real estate has been or is in the future conveyed or transferred to any person, and the deed or transfer therefor properly executed and recorded in the office of the proper recorder of deeds without containing a certificate setting forth the precise residence of the grantee as required by law, such deed or transfer is hereby validated and the title to such real estate or interest so conveyed or transferred is hereby declared good and valid notwithstanding such omission. § 288.  Cities of third class, deeds of The title to real estate heretofore sold by any city of the third class of this Commonwealth, if the sale was authorized by an ordinance or resolution of the city council of said city and shall not be attacked in any proceedings instituted within six years after the effective date of this act, or within six years after the date of such sale, whichever date is the earlier, is hereby declared to be good and valid and free and clear of any defects, and any such person, partnership or corporation grantee thereunder, and his or her or its respective heirs, successors and assigns, shall hold and may convey such title and estate, and all such conveyances, heretofore made, are hereby ratified and confirmed. Nothing in this act shall be construed to apply to property which the city acquired other than by purchase. § 289.  Records of legal instruments having defective acknowledgments The records of all legal instruments which, by law, are directed to be recorded or are entitled to be recorded, and which have been duly executed by the proper party or parties, and which have been acknowledged to and certified by a qualified officer without this State but in the United States, a territory or insular possession of the United States or the District of Columbia, notwithstanding the absence of any authentication, affirming the official character of such officer in conformity with the laws of this Commonwealth in force at the time such instrument was acknowledged, are hereby severally made as valid and effective in law as if each such instrument had been fully acknowledged, certified and authenticated. The record of each such instrument, or the original of such instrument itself, shall be admitted as evidence in all courts of this Commonwealth, and shall be as valid and conclusive evidence as if such instrument had been in all respects acknowledged and the acknowledgement certified and authenticated in accordance with the then existing law.

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§ 301

LAW OF DEEDS AND CONVEYANCES

§ 301.  Sales made by attorneys or agents All sales of lands, tenements and hereditaments, formerly made by any attorneys or agents, who have been appointed such by any person or persons who had right so to do, and especially give them power or directions therein to sell or convey lands, are and shall be deemed and adjudged good and effectual in law, to all intents, constructions and purposes, whatsoever, as fully as if the said owners of such lands had, by their own deeds, bargains and sales, actually and really sold and conveyed the same; and all and singular the lands, tenements and hereditaments, sold and conveyed as aforesaid, shall be and remain to such purchasers respectively, their heirs and assigns, forever, as they were or ought to have been to the owner or owners of such lands and premises so employing his or their attorneys or agents as aforesaid. § 302.  Future sales by power of attorney All sales or conveyances of lands, tenements or hereditaments, which shall hereafter be made by virtue of any letters or powers of attorney or agency, duly executed, which do or shall expressly give power to sell lands or other estates, and be certified to have been proved as aforesaid, or shall be proved in this province before any justice of the peace, by one or more of the witnesses thereto, shall be good and effectual in law, to all intents, constructions and purposes whatsoever, as if the said constituent or constituents had by their own deeds, bargains and sales, actually and really sold and conveyed the same. § 303.  Deeds defectively executed under power of attorney Whenever any deed of conveyance or other instrument of writing has been heretofore executed or acknowledged, or both, under any power sufficiently authorizing the same, which power has been recited in said deed or other instrument, shall have been informally executed by an attorney in his own name, reciting his authority, instead of being executed in the name of the principal or principals, such deed or other instrument shall be taken to be of the same validity and effect as if executed in the name and behalf of the principal or principals as a party or parties thereunto: Provided, That no case heretofore decided judicially shall be affected by this act. § 304.  Powers valid until notice of revocation No sale of lands, tenements and hereditaments made by virtue of such power or powers of attorney or agency as aforesaid, shall be good and effectual, unless such sale be made and executed while such power is in force; and all such powers shall be accounted, deemed and taken to be in force, until the attorney or agent shall have due notice of a countermand, revocation, or death of the constituent. § 321.  Registration of deeds in counties with more than 500,000 inhabitants On and after the first day of January, Anno Domini one thousand nine hundred, all deeds and other conveyances of real estate, in the several counties of this commonwealth having a population of over five hundred thousand, shall be registered in the office of the county commissioners before being entered of record in the office of the recorder of deeds. § 322.  Deeds not to be recorded before registration On and after said date no deed, or other conveyance of real estate, shall be entered of record in the office of the recorder of deeds, in the several counties of this commonwealth having a population of over five hundred thousand, unless the said instrument has been previously registered in the office of the county commissioners. § 323.  Violation of act by recorder a misdemeanor; penalty Recorders of deeds, in counties having a population of over five hundred thousand, permitting or allowing any deed, or other conveyance of real estate, to be

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§ 324.  Application of act limited Provided, That nothing in this act shall apply to counties co-extensive with cities.

Part VI Ch. 49–56 Taxation Part VII Ch. 57–63 Litigation Part VIII Ch. 64–67 L/T Part IX Ch. 68–72 Condos, etc. Index

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§§ 326 to 328.  Repealed. 1933, May 22, P.L. 853, art. VI, § 601 § 329.  City of Philadelphia, maintenance of day book by commissioner of records The Commissioner of Records in the City of Philadelphia shall maintain a day book, or direct index book, in which shall be noted the date of the recording of all instruments, the book number and page number of recording and an identifying number. § 330.   City of Philadelphia, issuance of receipts by commissioner of records The Commissioner of Records in the City of Philadelphia shall issue a receipt for all instruments, which receipt shall contain the date of payment, an identifying number and the amount of the fee charged. § 351.  Failure to record conveyance All deeds, conveyances, contracts, and other instruments of writing wherein it shall be the intention of the parties executing the same to grant, bargain, sell, and convey any lands, tenements, or hereditaments situate in this Commonwealth, upon being acknowledged by the parties executing the same or proved in the manner provided by the laws of this Commonwealth, shall be recorded in the office for the recording of deeds in the county where such lands, tenements, and hereditaments are situate. Every such deed, conveyance, contract, or other instrument of writing which shall not be acknowledged or proved and recorded, as aforesaid, shall be adjudged fraudulent and void as to any subsequent bona fide purchaser or mortgagee or holder of any judgment, duly entered in the prothonotary’s office of the county in which the lands, tenements, or hereditaments are situate, without actual or constructive notice unless such deed, conveyance, contract, or instrument of writing shall be recorded, as aforesaid, before the recording of the deed or conveyance or the entry of the judgment under which such subsequent purchaser, mortgagee, or judgment creditor shall claim. Nothing contained in this act shall be construed to repeal or modify any law providing for the lien of purchase money mortgages.

Part III Ch. 23–35 Mortgages

§ 325.1.  Duty to accept deeds for recording; registration of unregistered deeds; fee It shall be the duty of the recorder of deeds in the several counties in this Commonwealth to receive all deeds presented for record, when the same are duly acknowledged as required by law, and record the same. And if by virtue of any provision of law any such deed so presented for record is required to be registered in any office for the registration of deeds, other than said recorder’s office, within the county in which it is so offered for record, the recorder of deeds shall nevertheless record such deed whether it has been so registered or not, and in such case it shall be the duty of the recorder within ten days after the deed is transcribed into the deed book to have such deed registered in such other registry office or offices before delivering the deed to the party entitled to receive the same. On all deeds which the recorder is required to have registered under the provisions of this act he shall be entitled to collect a fee of twenty-five cents (25¢) for the first description in such deed and an additional sum of ten cents (10¢) for each additional description, in addition to the recording fee.

Part II Ch. 15–22 Deeds

§ 325.  Repealed. 1941, July 18, P.L. 421, § 2

Part I Ch. 1–14 Brokers

entered of record unless the same shall have been previously registered in the office of the county commissioners, shall be deemed guilty of a misdemeanor in office, and on conviction thereof by punished by a fine not exceeding one hundred dollars.

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§§ 352, 353 LAW OF DEEDS AND CONVEYANCES §§ 352, 353.  Repealed. 1978, April 28, P.L. 202, No. 53, § 2(a)[414], effective June 27, 1980 § 354.  Repealed. 1978, April 28, P.L. 202, No. 53, § 2(a)[414], effective June 27, 1979 § 355.  Repealed. 1978, April 28, P.L. 202, No. 53, § 2(a)[302], effective June 27, 1980 § 356.  Agreements concerning real property All agreements in writing relating to real property situate in this Commonwealth by the terms whereof the parties executing the same do grant, bargain, sell, or convey any rights or privileges of a permanent nature pertaining to such real property, or do release the grantee or vendee thereunder against damages which may be inflicted upon such real property at some future time, shall be acknowledged according to law by the parties thereto or proved in the manner provided by law, and shall be recorded in the office for the recording of deeds in the county or counties wherein such real property is situate. § 357.  Constructive notice as result of recordation The legal effect of the recording of such agreements shall be to give constructive notice to subsequent purchasers, mortgagees, and/or judgment creditors of the parties to said agreements of the fact of the granting of such rights or privileges and/or of the execution of said releases, and the rights of the subsequent purchasers, mortgagees, and/or judgment creditors of the parties to said agreements shall be limited thereby with the same force and effect as if said subsequent purchasers, mortgagees, and/or judgment creditors had actually joined in the execution of the agreement or agreements aforesaid. § 358.  Conditions for constructive notice; uniform parcel identifier; indexing of document In order for a document presented for record to the office of a recorder of deeds of a county to be constructive notice for the purpose of this act or the act of May 12, 1925 (P.L. 613, No. 327),17 entitled “An act regulating the recording of certain deeds, conveyances, and other instruments of writing, and fixing the effect thereof as to subsequent purchasers, mortgagees, and judgment creditors,” or otherwise, the document shall be recorded, and one of the following conditions shall be satisfied: (1)  In counties where the act of January 15, 1988 (P.L. 1, No. 1),18 known as the “Uniform Parcel Identifier Law,” applies, the uniform parcel identifier is endorsed or included on the document, and it is indexed properly in an index arranged by uniform parcel identifiers. (2)   The document is indexed properly as to the party in all alphabetical indices. In the case of a document affecting title to trust property, the document need not be indexed to the beneficiary in order to give constructive notice of the trust. To the extent this section conflicts with 42 Pa.C.S. ß 8141(1) (relating to time from which liens have priority), 42 Pa.C.S. ß 8141(1) controls. For purposes of this section, the term “document” means a document that is eligible to be recorded in the office of the recorder of deeds, including, but not limited to, deeds, mortgages, quitclaim deeds, memoranda of lease and easements, and includes documents presented for record in person, by mail, electronically or in any other manner. § 359.   Liability for mistake in index Nothing contained in this act shall impose liability on any recording officer or any political subdivision for any mistake, error or inaccuracy in any index.

17. 21 P.S. § 351. 18. 21 P.S. § 331 et seq.

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19. Act of 1775, March 18, 1 Sm.L. 422 (16 P.S. §§ 9731, 9751; 21 P.S. §§ 44, 444, 445).

Part I Ch. 1–14 Brokers

§ 421.  Deeds available, whether recorded by grantor or grantee Whenever any deed or deeds shall have been, or may hereafter be, executed by any tenant in tail, for the purpose of barring an estate tail in any lands, tenements or hereditaments, in this commonwealth, and the said deed or deeds have been, or shall be, entered on the records of the court of common pleas, and also recorded in the recorder’s office of the county where the lands lie, such deed or deeds shall be equally available, whether entered and recorded at the instance of the grantor or grantee. § 441.  Deeds prior in date to March 18, 1775 It shall be the duty of all persons who claim any lands or tenements in this commonwealth, under or by virtue of any deeds or conveyances bearing date previously to the act of 18th March, 1775,19 to which this is a supplement, to have the same recorded, in the proper county, in the manner now provided by law, within two years from the date thereof. § 442.  Deeds not so recorded, as evidence No such deed, which shall remain unrecorded as aforesaid, for the said term of two years, shall be permitted to be given in evidence in any of the courts of this commonwealth, unless proven or acknowledged according to the act to which this is a supplement, or unless proven in the manner in which other instruments of writing are proven, by subscribing witnesses or proof of handwriting, or unless, the actual possession of the land has accompanied the said deed. § 443.  Unrecorded deeds void as against subsequent purchasers without notice All such deeds remaining unrecorded for the said term of two years as aforesaid, shall be adjudged fraudulent and void against any subsequent bona fide purchase or mortgagee, for a valuable consideration, without notice. § 444.  All deeds made in the state to be acknowledged and recorded within ninety days All deeds and conveyances, which, from and after the passage of this act, shall be made and executed within this commonwealth of or concerning any lands, tenements or hereditaments in this commonwealth, or whereby the title to the same may be in any way affected in law or equity, shall be acknowledged by the grantor, or grantors, bargainor or bargainors, or proved by one or more of the subscribing witnesses thereto, before one of the judges of the supreme court, or before one of the judges of the court of common pleas, or recorder of deeds, prothonotary, or clerk of any court of record, justice of the peace, or notary public of the county wherein said conveyed lands lie, and shall be recorded in the office for the recording of deeds where such lands, tenements or hereditaments are lying and being, within ninety days after the execution of such deeds or conveyance, and every such deed and conveyance that shall at any time after the passage of this act be made and executed in this commonwealth, and which shall not be proved and recorded as aforesaid, shall be adjudged fraudulent and void against any subsequent purchaser or mortgagee for a valid consideration, or any creditor of the grantor or bargainor in said deed of conveyance, and all deeds or conveyances that may have been made and executed prior to the passage of this act, having been duly proved and acknowledged as now directed by law, which shall not be recorded in the office for recording of deeds in the county where said lands and tenements and hereditaments are lying and being, within ninety days after the date of the passage of this act, shall be adjudged fraudulent and void as to any subsequent purchaser for a valid consideration, or mortgagee, or creditor of the grantor, or bargainor therein. § 445.  Deeds proved out of state to be recorded within six months All such deeds and conveyances which shall be made and executed out of this commonwealth after the passage of this act, and acknowledged and proved in man-

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§ 446

LAW OF DEEDS AND CONVEYANCES

ner as directed by the laws for that purpose heretofore made, shall be recorded in the office for the recording of deeds in the county where the lands and hereditaments specified in such deed or deeds do lie, within the space of six months from the execution thereof, otherwise every such deed or conveyance shall be adjudged fraudulent and void against any subsequent purchaser or mortgagee for a valuable consideration, and against any creditor of the bargainor, or grantor, in such deed. § 446.  Certain deeds validated notwithstanding delay in recording All deeds heretofore duly made, and on motion in open court entered among the records thereof, in conformity with the act of January 16, 1799,20 entitled “An act to facilitate the barring of entails,” although not recorded within six months next after the execution thereof in the office for recording deeds, shall be equally available and valid within the intent of said act: Provided, That the same shall have heretofore been recorded in such office. § 451.  Recording of affidavits; admissibility into evidence An affidavit, stating facts relating to the matters hereinafter named, which may affect the title to real estate in this Commonwealth, made by any person having personal knowledge of the facts and competent to testify concerning them in open court, may be recorded (even though not acknowledged) in the Office of the Recorder of Deeds or Commissioner of Records in the county in which such real estate is situated; and when so recorded, such affidavit, or a certified copy thereof, shall be admissible evidence of the facts therein stated, insofar as such facts affect title to real estate, provided a member of the bar of the highest court of this Commonwealth shall have signed a certification, appended thereto, that he or she relied upon such affidavit in passing on the title to such real estate. § 452.  Contents of affidavit The affidavit herein provided for may relate to the following matters: age, sex, birth, death, capacity, relationship, family history, heirship, names, identity of parties, marital status, possession or adverse possession, residence, service in the armed forces, conflicts or ambiguities in descriptions of land in recorded instruments, and the happening of any condition or event which may terminate an estate or interest. § 453.  Requirements of affidavit; certification; index Every affidavit herein provided for shall include the name, age and residence of the affiant, a description of such real estate, title to which may be affected by facts stated in such affidavit, and facts showing that the affiant has personal knowledge of the facts stated, and shall state the name of the person appearing by the record to be the owner of such real estate at the time of the recording of the affidavit. The official taking the affidavit shall certify that the affiant is personally known to him or her, or satisfactorily proven, to be the person named as affiant. The recorder shall index the affidavit in the name of such record owner in both grantor and grantee indexes, and, if possible, shall note the recording thereof in the margin of the record of any instrument therein referred to. § 471.  Deeds recorded to have the same effect as deeds of feoffment with livery and seisin All deeds and conveyances made or to be made, and proved or acknowledged, and recorded as aforesaid, which shall appear so to be, by endorsement made thereon, according to the true intent and meaning of this act, shall be of the same force and effect here, for the giving possession and seisin, and making good the title and assurance of the said lands, tenements and hereditaments, as deeds of feoffment, with livery and seisin, or deeds enrolled in any of the king’s courts of record at Westminster, are or shall be in the kingdom of Great Britain. And the copies or exemplifications of all deeds so enrolled, being examined by the recorder, and certified under the seal of the proper office, (which the recorder, or keeper thereof, is hereby required to affix thereto), shall be allowed in all courts where 20. 21 P.S. §§ 13, 14.

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21. Act of 1793, Jan. 19, 3 Sm.L. 87 (21 P.S. §§ 494, 495 (repealed), see 42 Pa.C.S. § 1722). 22. Act of 1786, March 28, 2 Sm.L. 375 (21 P.S. §§ 491 to 493 (repealed), see 42 Pa.C.S. §§ 1722, 1726). 23. 21 P.S. § 399.

Part I Ch. 1–14 Brokers

produced, and are hereby declared and enacted to be as good evidence, and as valid and effectual in law, as the original deeds themselves, or as bargains and sales enrolled in the said courts at Westminster, and copies thereof can be; and that the same may be showed, pleaded and made use of accordingly. § 481.  Court direction; process; originals preserved In any county of the third, fourth, fifth, sixth, seventh or eighth class, the judge of the court of common pleas may, in order to protect and preserve original maps, plats or plans which have been recorded in the office of the recorder of deeds of such county, direct the reproduction thereof by means of any photostatic, photographic or other mechanical process which produces a clear, accurate and permanent copy or reproduction of the original. The originals of any maps, plats or plans so reproduced shall be preserved by the recorder of deeds and shall be available upon demand. § 482.  Expense The expense of any reproduction of maps, plats or plans authorized by this act shall be arranged for by the county commissioners and paid out of the county treasury. §§ 491-495.  Repealed. 1978, April 28, P.L. 202, No. 53, effective June 27, 1980 § 496.  Act made perpetual The act of January 19, 1793,21 entitled “An act to revive certain powers in the justices of the supreme court, and vest similar power in the judges of the several courts of common pleas, in this commonwealth,” reviving the act therein recited, of March 28, 1786,22 shall be taken to have been a perpetual act, and is hereby declared so to be, and that the perpetuation of the evidence of lost deeds thereunder, duly made, in conformity with said act and supplement thereto, is hereby declared valid. § 497.  Proceedings in case of lost or destroyed plan After notice has been served upon any owner, or the legal representative thereof, to record and plan of subdivision of any tract of land, as aforesaid,23 said owner, or legal representatives thereof, may, within sixty days prescribed in said notice, present a petition to the court of common pleas of the proper county, setting forth, under oath, that the plan of subdivision of the land required to be recorded as described in said notice is lost or destroyed; whereupon said court shall order said petition filed and that no proceedings shall be begun to collect any penalty under the provisions of this act, and at the same time the said court shall further order that a plan of the subdivision described in said notice shall be made and filed in said court within a reasonable time to be fixed by said court. § 498.  Appointment of examiner; report; new plan Upon the filing of said plan, said court shall refer the same to an examiner, who will ascertain and report whether or not the plan of the subdivision of the said tract of land agrees in lines, course and distance with the descriptions contained in the deeds, or agreements, conveying title to parts of said tract of land conveyed previous to the petition being filed. If it appears from the examiner’s report that such plan of subdivision and the description of the conveyances made from said tract of land agree, the court shall order the plan of the subdivision recorded in the recorder’s office; if it shall appear that there are discrepancies between the lines, courses and distances appearing upon said plan of subdivision in the deeds conveying parts of the tract of land described, such discrepancies shall be marked upon plan as submitted, and said plan with the discrepancies marked upon the same shall be ordered recorded in the recorder’s office, as aforesaid.

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§ 499

LAW OF DEEDS AND CONVEYANCES

§ 499.  Costs; limitation of powers of examiner The cost in all the cases of such procedure shall be borne by the owner, or the legal representatives thereof, of any tract of land subdivided into lots, as aforesaid, said costs including a reasonable fee to the examiner to whom the plan of subdivision is referred for verification: Provided always, That the examiner, in verifying the plan of subdivision of said tract of land filed in court with the conveyances made of said tract of land, or such parts of the same, shall confine himself to comparing the plan with the conveyances made by the owner of said tract of land, or the legal representatives thereof, in conveyances made of said tract of land, or parts thereof, in the first instance. § 521.  Sale of timber or bark by deed It shall be lawful for the owner or owners of land, timber or bark, or for any person or persons having an interest therein, to grant, bargain and sell, or contract to sell, by deed, conveyance or contract in writing, signed by the grantor or grantors therein, and proved or acknowledged by them, as now required by law of this commonwealth for the signing and acknowledging of deeds, all or any right, title, claim or interest such grantor or grantors may have in or to any standing or growing timber, or the bark thereon, upon any lands in this commonwealth; and any such deed, conveyance or contract shall be taken and deemed as a deed, conveyance or contract conveying and vesting an interest in land. § 522.  Deeds to be recorded; effect; evidence All such deeds, conveyances or contracts, made or to be made and proved or acknowledged, as provided in the first section of this act,24 may be recorded in the office for recording of deeds in the county where such land is located in the same manner and subject to the same rights and restrictions as to the time and manner of recording and indexing the same as is now provided by the laws of this commonwealth for the recording of deeds, and when so recorded shall be notice to subsequent purchasers, mortgagees or other lien creditors notwithstanding the time for the cutting and removal of said timber or bark may be limited by the terms of said deeds, conveyances or contracts, and the records of such deeds, conveyances or contracts, or duly certified copies of such records, shall be evidence in all cases where the original deeds, conveyances or contracts would be evidence. § 523.  Deeds recorded within six months to be valid; vested interests not affected All deeds, conveyances or contracts for standing or growing timber, or the bark thereon, which may have been proved or acknowledged by the grantors therein, and recorded in the office for the recording of deeds where such land is located, or which shall, within six months from and after the passage of this act, be proved or acknowledged and recorded in the manner directed by the laws of this commonwealth for the proving, acknowledging and recording of deeds, shall be as good and effectual in law, to all intents and purposes, as if the same had been proved or acknowledged and recorded within the time deeds are now required to be recorded: Provided, That nothing in this act contained, shall extend or be deemed or construed to operate against subsequent judgment, recognizance, attainder, forfeiture or lien whatsoever, or against any subsequent bona fide mortgagee or mortgagees, purchaser or purchasers, or any estates, lands, tenements or hereditaments mentioned or contained in said deed, conveyance or contract for timber or bark, before such deed, conveyance or contract was or shall be proved or acknowledged and recorded agreeably to the directions of this act. § 581.  Title to lands supposed to be in Delaware and found to be in Pennsylvania; recording It shall be lawful for any person or persons, body politic and corporate, his, her, or their agent or attorney, who may own or have any interest in or claim 24. 21 P.S. § 521.

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Part IV Ch. 36–40 Insurance Part V Ch. 41–48A Zoning, etc. Part VI Ch. 49–56 Taxation Part VII Ch. 57–63 Litigation Part VIII Ch. 64–67 L/T Part IX Ch. 68–72 Condos, etc. Index

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Part III Ch. 23–35 Mortgages

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Part II Ch. 15–22 Deeds

25. 21 P.S. § 581.

Part I Ch. 1–14 Brokers

to, upon, or against lands and tenements heretofore supposed to be within the limits of the State of Delaware and which are now found by the said survey to be within the limits of the State of Pennsylvania, to procure copies, duly certified and authenticated according to the laws of the State of Delaware, of all deeds, conveyances, assurances, agreements, or other instruments of writing affecting or in anywise relating to any of said lands and tenements, or the titles thereof, and which shall have been duly recorded in the proper office for recording like papers or instruments within the county of New Castle in the State of Delaware, and have the same recorded in the office for the recording of deeds in the county within this State in which the same are now found, as aforesaid, to be situate; and it is hereby made the duty of the recorder of deeds of said last mentioned county or counties to receive and record the same on the payment of the usual fees for like services, and, when so recorded, the same shall have the like force and efficacy, validity, and effect as if the same had been originally therein recorded at the time the same were recorded in the State of Delaware; and copies, duly certified and authenticated of such records so made within this State, shall be evidence in all cases and for all purposes for which the original papers or instruments, or copies of the original record thereof, would be evidence in this State, and as if such record, hereby authorized, had been made from the original papers themselves. § 582.  Liens affecting such lands Copies, certified and authenticated in the manner required in the preceding section, of all mortgages, judgments, recognizances, or other liens or debts of record, which shall be outstanding and subsisting, at the time of such transfer, in the county of New Castle in the State of Delaware, and binding or affecting any of the lands and tenements hereinbefore mentioned had the same been within the limits of the said State, may be transferred to, and recorded or entered of record in the proper office in, any county in this State within which such lands and tenements are now found to lie by the proper officer or any party in interest, his, her, or their agent or attorney, presenting the same for record or entry, and on payment of the fees allowed by law for similar services; the proper officer to whom they are so offered for entry or record shall enter and record the same, and such entry or record, when so made, shall relate to the date of their original entry and be of the like force and effect as if originally made in said county in this State, and copies thereof shall be evidence in the same manner and under the same restrictions as are mentioned and prescribed in the preceding section of this act.25 § 583.  Titles acquired under legal proceedings in Delaware All titles to lands along said line at any time heretofore sold under execution issued out of any of the courts of the State of Delaware, or upon proceedings in partition in any of the said courts, or by virtue of any order or orders of any of the said courts, which lands are now found to be within the limits of the State of Pennsylvania, shall be deemed and taken to be good and valid to all intents and purposes as if the said lands were within the limits of the State of Delaware. § 601.  Validity Whenever hereafter a resulting trust shall arise with respect to real property, by reason of the payment of the purchase money by one person, and the taking or making of a legal title in the name of another, if the person advancing the purchase money has the capacity to contract, such resulting trusts shall be void and of none effect as to bona fide judgment or other creditors, or mortgagees of the holder of the legal title, or purchasers from such holder without notice unless either (1) a declaration of trust in writing has been executed and acknowledged by the holder of the legal title, and recorded in the recorder’s office of the county where the land is situated, or (2) unless an action of ejectment has been begun, in the proper county, by the person advancing the money, against the holder of the legal title. § 602.  Repealed. 1985, Oct. 30, P.L. 264, No. 66, § 3, effective in 90 days

Table of Contents

PART II

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CHAPTER 18 RECORDERS OF DEEDS 16 P.S. § 9701 to 16 P.S. § 9857

Sec. § § § § § § § § § § § § § § § § § § § § § § § § § § § § § § § § § § § §

9701. Offices established 9702. Repealed 9703. Repealed 9704. Repealed 9705. Record of transfers to be furnished township commissioners and supervisors on request; fee 9706. Record of transfers to be furnished tax collectors on request; fee 9731. Books of record; entries and receipts; fees not to be taken 9732. Certificate of record to be indorsed on deed 9751. Leases for less than 21 years need not be recorded 9752. Receipts for taxes on unseated lands may be recorded 9753. Duty of officers to make acknowledgment 9754. Repealed. 1974, Dec. 10, P.L. 867, No. 293, § 19, imd. effective 9755. Recording of letters of attorney 9756. Recording certificates, etc., of bankruptcy 9757. Duty of recorder of deeds; indexing 9758. Fees 9759. Final discharges of officers and persons in armed forces or women’s organizations; certificates of service; reports of separation and similar forms 9759.1. Final discharges of officers and persons in armed forces or women’s organizations; confidentiality of records 9781. Certificate as to grantee’s residence; lists certified to board of revision of taxes 9781.1. Uniform parcel identifier 9782. Name, and address of mortgagee or assignee to be furnished to recorder 9783. Recorder to certify same to county commissioners 9784. Failure to certify; penalty 9785. Application of act limited 9801. Duty to rerecord 9802. Effect of new record 9803. Cost of rerecording 9851. Direct and ad sectum indexes; location of property 9852. To index every deed and mortgage 9853. Index to be notice 9854. Costs of indexing 9854.1. Uniform parcel identifiers, etc. to be entered in general indexes for deeds and for mortgages 9854.2. Indexes arranged by uniform parcel identifiers 9855. Indexing tax deeds, sheriff’s deeds, etc., recorded in common pleas 9856. Expense to be borne by county 9857. Index as notice

§ 9701.  Offices established There shall be an office of record in each county of this province, which shall be called and styled, The Office for Recording of Deeds; and shall be kept in some convenient place in the said respective counties, and the recorder shall duly attend the service of the same, and, at his own proper costs and charges, shall provide parchment, or good large books, of royal or other large paper, well bound and covered, wherein he shall record, in a fair and legible hand, all deeds and conveyances, which shall be brought to him for that purpose, according to the true intent and meaning of this act.

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Table of Contents

PART II

§ 9702.  Repealed. 1974, Dec. 10, P.L. 867, No. 293, § 19, imd. effective

Part VI Ch. 49–56 Taxation Part VII Ch. 57–63 Litigation Part VIII Ch. 64–67 L/T Part IX Ch. 68–72 Condos, etc. Index

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Part V Ch. 41–48A Zoning, etc.

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Part IV Ch. 36–40 Insurance

§ 9731.  Books of record; entries and receipts; fees not to be taken Every recorder of deeds in this province shall keep a fair book, in which he shall immediately make an entry of every deed or writing brought into his office to be recorded, mentioning therein the date, the parties and the place where the lands, tenements or hereditaments, granted or conveyed by the said deed or writing, are situate, dating the same entry on the day in which such deed or writing was brought into his office, and shall record all such deeds and writings in regular succession, according to their priority of time in being brought into the said office; and shall also immediately give a receipt to the person bringing such deed or writing to be recorded, bearing date on the same day with the entry, containing the abstract aforesaid; for which entry and receipt he shall take or receive no fee or reward whatever. And if any recorder of deeds within this province shall record and deed or writing before another first brought into his office to be recorded, or in any other manner than is herein directed, or shall neglect or refuse to make such an entry, or to give such a receipt as is hereinbefore directed, or shall directly or indirectly take or receive any fee or reward for such entry and receipt, or either of them, he shall forfeit and pay, for every such offense, one hundred pounds, lawful money of this province; one-half to the governor, for the support of government, and the other half to him or them that shall sue for the same, to be recovered in any court of record within this province, by action of debt, bill or plaint, wherein no essoin, protection or wager of law, or more than one imparlance, shall be allowed.

Part III Ch. 23–35 Mortgages

§ 9706.  Record of transfers to be furnished tax collectors on request; fee It shall be the duty of the recorder of deeds of every county, upon written request therefor, to furnish the tax collector of each borough, township, school district, town and second class A and third class city within the county, a record of all transfers of property located within the borough, township, school district, town and second class A and third class city, within sixty days of the time of transfer. When a written request has been made for a record of transfers in a borough, township, school district, town and second class A and third class city, the recorder of deeds shall thereafter charge and collect as a fee for his services the sum of twenty-five cents for each deed recording the conveyance of land.

Part II Ch. 15–22 Deeds

§ 9705.   Record of transfers to be furnished township commissioners and supervisors on request; fee It shall be the duty of the recorder of deeds of every county, except counties of the second class, upon written request therefor as herein provided, to furnish the township commissioners of each township of the first class and township supervisors of each township of the second class within the county a record of all transfers of property located within the township. When any township imposes a tax on the transfer of real property, the commissioners or supervisors shall transmit to the recorder of deeds written request for such record of transfers. Such record shall show the name of the grantor and grantee, a description of the property as mentioned in the deed, the consideration recited in the deed and the value of the Federal documentary stamps affixed to the deed. Such record shall be sent to the township commissioners or township supervisors, as the case may be, on or before the second Monday of each month. When a written request has been made for a record of transfers in a township, as herein provided, the recorder of deeds shall thereafter charge and collect, as a fee for the services hereinabove prescribed, the sum of twenty-five cents (25¢) for each deed recording the conveyance of land in such township.

Part I Ch. 1–14 Brokers

§§ 9703, 9704.  Repealed. 1982, Feb. 18, P.L. 45, No. 26, § 12, imd. effective

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§ 9732

RECORDERS OF DEEDS

§ 9732.  Certificate of record to be indorsed on deed After the recorder has recorded any of the said deeds, he shall certify on the back thereof, under his hand and seal of his office, the day he entered it, and the name or number of the book or roll, and page, where the same is entered. § 9751.  Leases for less than 21 years need not be recorded This act shall not extend to any lease not exceeding twenty-one years, where the actual possession and occupation goeth along with the lease, anything in this act to the contrary notwithstanding. § 9752.  Receipts for taxes on unseated lands may be recorded All receipts for taxes on unseated lands, given by the proper officers of any county of this commonwealth, which shall have been duly acknowledged by said officers before any judge or justice of the peace of the proper county, may be recorded in the office for recording of deeds in the county where the lands lie, and the records thereof, or the duly certified copies of said records, shall be evidence in all cases where the original receipts would be evidence. § 9753.  Duty of officers to make acknowledgment It shall be the duty of the proper officers aforesaid, of the counties aforesaid, to make the due acknowledgment in manner aforesaid upon being required so to do, at the cost of the parties applying therefor: Provided, That such application shall be made within thirty days from the date of the receipts aforesaid. § 9754.  Repealed. 1974, Dec. 10, P.L. 867, No. 293, § 19, imd. effective § 9755.  Recording of letters of attorney All letters of attorney authorizing contracts to be made, the sale and transfer of stocks, bonds, mortgages and any other personal property of any kind or description, the receipts of money, the discharge and acquittance of legacies or distributive shares, or the performance of any act or acts which the party constituting such attorney might lawfully have done, may, when acknowledged before the officers appointed to take acknowledgments of deeds for conveyance of real estate, be recorded in the office of the recorder of deeds in the county where the powers conferred by such letters are intended to be exercised; and the exemplification of the record thereof shall be received in evidence in the courts of this commonwealth. § 9756.  Recording certificates, etc., of bankruptcy The recorders of deeds of the different counties of this commonwealth shall receive for record and shall record any certificate or certificates of bankruptcy, or in reference to bankruptcy, which any act of Congress of the United States may hereafter provide for, as being necessary to be filed in the county wherein lands of the bankrupt are situate, in order to be notice to the world of such bankruptcy, and to vest the title to such lands in the receiver or trustee in bankruptcy, and to divest the title of the bankrupt in such real estate. § 9757.  Duty of recorder of deeds; indexing The recorders of deeds in and for the different counties of this commonwealth shall cause such certificate or certificates to be transcribed into the books in his office wherein deeds are transcribed, and shall cause the same to be indexed in the indexes for deeds in and for his office; indexing the name of the bankrupt as a grantor’s name is indexed, and the name of the trustee or receiver, where such official has been appointed, as the name of the grantee is indexed; but where no receiver or trustee has been appointed, the said certificate shall be indexed

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Part IV Ch. 36–40 Insurance Part V Ch. 41–48A Zoning, etc. Part VI Ch. 49–56 Taxation Part VII Ch. 57–63 Litigation Part VIII Ch. 64–67 L/T Part IX Ch. 68–72 Condos, etc. Index

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Part III Ch. 23–35 Mortgages

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Part II Ch. 15–22 Deeds

1. 16 P.S. § 9759

Part I Ch. 1–14 Brokers

only in the “direct index,” in the name of the bankrupt, and stating the fact of the bankruptcy in the space where the name of the grantee should be placed. § 9758.  Fees As compensation for recording such certificate or certificates the recorders of deeds shall charge and receive the same fees as they now charge for recording deeds. § 9759.  Final discharges of officers and persons in armed forces or women’s organizations; certificates of service; reports of separation and similar forms The Recorders of Deeds in the several counties of this Commonwealth are hereby authorized and required to record all final discharges of all honorably discharged non-commissioned officers, and persons who were duly enlisted and mustered into the Armed Forces of the United States, a reserve component of the Armed Forces of the United States as defined in 51 Pa.C.S. § 7301 (relating to definitions) or in any women’s organization officially connected therewith, and all certificates of service issued to commissioned officers upon termination of active service as aforesaid and as well as reports of separation from the Armed Forces of the United States or a reserve component thereof, commonly known as DD form 214, NGB form 22 and similar forms delivered to members of the armed services upon their retirement or separation from active duty, upon application being made to them by the holders thereof, their agents, attorneys, or legal representatives, for which the recorder shall be allowed a fee of fifty cents for recording the same, which fee shall be paid by the county where such discharge is recorded, upon the presentation to the county commissioners of proper vouchers by the recorder recording the same, and recording of the same shall not be subject to the payment of the usual State tax: Provided, That the provisions of this act relating to the fees of the recorder and the state tax shall not apply to holders of discharges who are not residents of this Commonwealth at the time of their applications to the recorder for placing the same of record. § 9759.1.  Final discharges of officers and persons in armed forces or women’s organizations; confidentiality of records Records of discharges, reports of separation and similar forms recorded or received by the recorder of deeds for recording under section 11 shall be confidential and no disclosure thereof shall be made by the recorder of deeds except as follows: (1)   To the person who is the subject of the record, report or form; or to a member of his immediate family; or to his agent or representative duly authorized in writing. (2)  To a person making a request for a record, report or form when the event that resulted in the record, report or form occurred more than seventyfive years prior to the request. (3)   When required by process of a court to be produced in any suit or proceeding therein pending. (4)   When required by the county director of veterans affairs or any department or other agency of the State or United States Government. § 9781.  Certificate as to grantee’s residence; lists certified to board of revision of taxes For the purpose of obtaining with accuracy the precise residence of all owners of real estate, and persons having a taxable interest therein, it shall be the duty of the recorder of deeds in each county, whenever a deed or other transfer of real estate or interest in real estate hereafter executed shall be presented to him for

Table of Contents

PART II

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§ 9781.1

RECORDERS OF DEEDS

record, to refuse the same, unless the grantee or grantees therein named have attached thereto, and made part of such deed or transfer, a certificate, signed by said grantee or grantees, or some one on his, or their behalf, setting forth the precise residence and the complete post office address of such grantee or grantees, said certificates to be recorded with said deed; and thereupon the said recorder shall prepare and deliver, at stated intervals, to the board of revision of taxes, or other official or officials charged with the assessment of such real estate, a list of the real estate or interest in real estate as transferred, with the location of the same, and the names of the grantor or grantors, and the names and residences of the grantee or grantees, with the date of recording. § 9781.1.  Uniform parcel identifier A county with the written recommendation of its recorder of deeds or commissioner of records may, by ordinance of its governing body, require that the recorder of deeds or commissioner of records of said county may not record or accept for record any conveyance of real estate, mortgage of real estate or any other instrument affecting real estate in said county unless the uniform parcel identifier on the tax map maintained for tax assessment purposes, as otherwise provided by law and maintained pursuant to the act of January 15, 1988 (P.L.1, No.1), known as the “Uniform Parcel Identifier Law,” shall be contained in the body thereof, or shall be endorsed thereon to be recorded therewith. § 9782.  Name, and address of mortgagee or assignee to be furnished to recorder On and after the passage of this act, the holder, owner or assignee of any mortgage offered for record or assignment, shall furnish to the recorder of deeds of the county in which said mortgage or assignment is to be recorded, the full name, residence (including street number), and the address of such holder, owner or assignee. § 9783.  Recorder to certify same to county commissioners It shall be the duty of the said recorder of deeds to forthwith certify the same to the office of the county commissioners. § 9784.  Failure to certify; penalty Recorders of deeds who shall fail to certify the same to the office of the county commissioners, as aforesaid, shall be deemed guilty of a misdemeanor in office, and on conviction thereof be punished by a fine not exceeding one hundred dollars. § 9785.  Application of act limited Provided, That this act shall not apply to counties co-extensive with cities of the first class. § 9801.  Duty to rerecord It shall be the duty of the recorder of deeds in any county, whenever any instrument, now or hereto by law recordable, shall be presented to him, which shall show, by the certificate and seal of the recorder thereon, that such instrument had been previously recorded in the office of the said recorder of deeds, and the record of such instrument in the said office is not available for examination, by reason of the destruction or loss of the book in which it was recorded, or of the destruction in whole or in part of the leaves of the book upon which the instrument was recorded, or by reason of the defacement or obliteration of the record by reason of the fading of ink or other cause, to rerecord such instrument, together with a certificate of the recorder, setting forth the original date of the recording of such instrument and the volume, book, and page of the original record.

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Ch. 18

Part VIII Ch. 64–67 L/T Part IX Ch. 68–72 Condos, etc. Index

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Part VII Ch. 57–63 Litigation

129

Part VI Ch. 49–56 Taxation

2. 16 P.S. §§ 9851 to 9854.

Part V Ch. 41–48A Zoning, etc.

§ 9854.  Costs of indexing In counties where no such indexes have been kept the recorders thereof are hereby authorized and required to prepare the same, the costs thereof to be paid by the county; but after said work has been done the costs of continuing the same according to the provisions of this act shall be paid by the respective recorders.

Part IV Ch. 36–40 Insurance

§ 9853.  Index to be notice The entry of recorded deeds and mortgages in said indexes, respectively, shall be notice to all persons of recording of the same.

Part III Ch. 23–35 Mortgages

§ 9852.  To index every deed and mortgage As soon as said indexes are prepared it shall be the duty of the recorder to index in its appropriate place and manner every deed and mortgage thereafter recorded in his office, at the time the same is recorded, and in case he neglects to do so he and his sureties shall be liable in damages to any person aggrieved by such neglect.

Part II Ch. 15–22 Deeds

§ 9851.  Direct and ad sectum indexes; location of property In the addition to the indexes which the recorder of deeds in each county of this commonwealth is required to keep, the said recorder shall carefully and accurately prepare and keep in his office two general indexes of all deeds recorded therein, in one of which, to be known as the direct index, he shall enter in their order the name of the grantor, the name of the grantee, the volume and page wherein the deed is recorded, and in the other, to be known as the ad sectum index, he shall enter in their order the name of the grantee, the name of the grantor, the volume and page wherein the deed is recorded. He shall in like manner also prepare and keep two general indexes, one direct and the other ad sectum, of all mortgages recorded in his office. In counties of the second class, he shall hereafter enter in both said indexes of deeds and in both the indexes of mortgages, the date of recording and the name of the city or borough or township and the number of the ward thereof, if any, in which the property affected is stated in the recorded instrument to be located, and the primary as well as the permanent indexes shall contain the foregoing entries as to date of recording and locality of each property affected: Provided, That where an instrument affects property in more than one ward, city, borough, town or township and the space on the index is insufficient to permit the writing of the locality of each property affected, the name of the county alone shall be full compliance with this act.2 Said indexes shall be arranged alphabetically and in such a way as to afford an easy and ready reference to said deeds and mortgages respectively, and shall be written in a plain and legible hand: Provided however, That in any county where such indexes have already been prepared and in use, or where any special law relating to any of said indexes is now in force, they shall be adopted and kept as if made in pursuance of this act. Nothing herein contained shall prohibit the recorder of deeds from combining the general indexes for deeds with the general indexes for mortgages into one general index.

Part I Ch. 1–14 Brokers

§ 9802.  Effect of new record The new record of such instrument shall have the same force and effect in law and in equity as the original record would have had. § 9803.  Cost of rerecording The cost of such rerecording shall be certified by the recorder of deeds, and paid out of the county-funds, upon orders drawn by the commissioners on the treasurer of the proper county.

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PART II

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§ 9854.1

RECORDERS OF DEEDS

§ 9854.1.  Uniform parcel identifiers, etc. to be entered in general indexes for deeds and for mortgages In counties requiring, by ordinance of their governing body, with the written recommendation of their recorder of deeds or commissioner of records, the endorsement or inclusion of the uniform parcel identifier of the property affected in each deed or other transfer of real estate or interest in real estate as indicated on the county tax map recorded under statutory provisions on parcel identification, the recorder of deeds or commissioner of records shall enter in both general indexes for deeds and both general indexes for mortgages the date of recording and the name of the city, borough, town or township in which the property affected is stated in the recorded instrument to be located and the uniform parcel identifier of such property as indicated in the recorded instrument. The primary as well as the permanent indexes shall contain the foregoing entries as to date of recording, locality of each property affected and uniform parcel identifier of each such property. § 9854.2.  Indexes arranged by uniform parcel identifiers During the four-year period beginning with the day of the first such entry in accordance with an ordinance adopted under section 1.1 of the act of April 22, 1929 (P.L. 620, No. 258), entitled “An act directing the recorder of deeds of each county of the Commonwealth to refuse for record all deeds or other transfers of real estate, or interest in real estate, unless a certificate is attached to said instruments giving the precise residence of the grantee or grantees named therein; and requiring a list thereof to be delivered to the proper board of revision of taxes, or other officials charged with the assessment of real estate,”3 the recorder of deeds or commissioner of records shall continue to arrange such indexes alphabetically; but the recorder or commissioner shall also maintain an additional separate set of indexes of deeds, mortgages and other instruments affecting real estate or interest in real estate arranged by the uniform parcel identifiers to facilitate easy reference to such instruments. During such four-year period, this separate set of indexes arranged by uniform parcel identifiers shall be merely for the convenience of the public and shall not constitute notice or the lack thereof. At the end of the four-year period or such later period as may be established by such ordinance and thereafter, both the alphabetical indexes and the indexes arranged by the uniform parcel identifiers shall constitute notice or the lack thereof for all deeds, mortgages or other instruments affecting real estate left for record with the recorder of deeds or commissioner of records on or after the date such indexes were originally established. § 9855.  Indexing tax deeds, sheriff’s deeds, etc., recorded in common pleas All sheriff’s, coroner’s, and tax deeds, heretofore entered in the records of the court of common pleas of any county in this Commonwealth, including the minutes or record of the acknowledgment of such deeds, may be indexed in the office of the recorder of deeds of the proper county, in the regular grantee and grantor indices of deeds, or in a grantee and grantor index arranged in a separate book or books known as the Sheriff’s and Tax Deed Index Books. In either case, such deeds shall be indexed, in the grantee index, in the name of the grantee or grantees therein; and in the grantor index, in the name of the defendant or defendants and of the terre-tenant or terre-tenants, if any, or in the name of the person or persons who were the owners or reputed owners of the property conveyed by such deed. 3. 16 P.S. § 9781.

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Part I Ch. 1–14 Brokers Part II Ch. 15–22 Deeds

§ 9856.  Expense to be borne by county All books and material, and all clerical labor or assistance, necessary to make and install such indices of deeds heretofore indexed only in the prothonotary’s office of any county in this Commonwealth, whether indexed in the regular grantee and grantor indices or in a separate book or books kept for that purpose, shall be furnished and provided by the county commissioners at the expense of the county, and shall be paid for out of the county treasury. § 9857.  Index as notice The index of all sheriff’s, coroner’s and tax deeds, indexed under or in accordance with the provisions of this act, shall be deemed to be sufficient legal notice to all persons interested of the record and contents of such deeds.

Table of Contents

PART II

Part III Ch. 23–35 Mortgages Part IV Ch. 36–40 Insurance Part V Ch. 41–48A Zoning, etc. Part VI Ch. 49–56 Taxation Part VII Ch. 57–63 Litigation Part VIII Ch. 64–67 L/T Part IX Ch. 68–72 Condos, etc.

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Index

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CHAPTER 19 RECORDABLE DOCUMENTS AND ELECTRONIC RECORDING Chapter

19.1 Recordable Documents    21 P.S. § 381 to § 410 19.2 Uniform Real Property Electronic Recording Act    21 P.S. § 483.1 to § 483.9

CHAPTER 19.1 RECORDABLE DOCUMENTS 21 P.S. § 381 to 21 P.S. § 410

Sec. § § § § § §

381. Deeds, etc., duly executed and acknowledged out of the state, may be recorded 382. Exemplification of deed to lands in two counties recorded in one county 383. Deeds of county commissioners 384. Letters of attorney, receipts, acquittances of legacies, etc. 385. Patents and official deeds 386. Releases of legacies and releases to executors, etc., duly acknowledged and sealed § 387. Release of legacy, etc., made out of state, but charged on land within the state § 388. Release of legacy without subscribing witnesses § 389. Repealed § 390. Deeds and patents from commonwealth § 391. Releases, etc., executed by married woman alone may be recorded §§ 392 to Repealed  398. § 399. Plan of subdivided tract; penalty for omission; recovery § 400. Record of minutes of corporate meeting § 401. Probate of minutes in case of dissolution of corporation § 402. Record and notation of judgments or decrees affecting deeds or instruments of record; fee § 403. Wills probated outside state; exemplified copies § 404. Lease or sublease or agreement to lease or sublease § 405. Memorandum of lease, sublease or agreement § 406. Indexing of lease, sublease or agreement § 407. Effect of recording lease, sublease, agreement or memorandum § 408. Construction of act regarding lease, sublease or agreement § 409. Effect of recording memorandum of lease, sublease or agreement § 410. Application of act regarding lease, sublease or agreement

§ 381.  Deeds, etc., duly executed and acknowledged out of the state, may be recorded Deeds duly executed and acknowledged out of the State may be recorded. Any and every grant, bargain and sale, release or other deed of conveyance or assurance of any lands, tenements or hereditaments in this Commonwealth, and any power or powers of attorney to make and execute such sale, conveyance, mortgage or transfer of any lands, tenements or hereditaments in this Commonwealth, made and executed in any of the United States, may be recorded in the county in which such lands, tenements or hereditaments are situated, if the acknowledg-

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DEEDS

Ch. 19.1

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ment thereof be taken in due form before any officer or magistrate of the state wherein such deed, et cetera, is executed, authorized by the laws of said state to take the acknowledgment of deeds or other instruments of writing therein; and such acknowledgment is either verified by the official seal of the officer or magistrate before whom it is taken or authenticated by a certificate of the clerk or prothonotary of any court of record in such state, that the officer or magistrate so taking such acknowledgment, is duly qualified by law to take the same.

Part I Ch. 1–14 Brokers

§ 382.   Exemplification of deed to lands in two counties recorded in one county

Part II Ch. 15–22 Deeds Part V Ch. 41–48A Zoning, etc.

All deeds of county commissioners, being duly acknowledged, may be recorded in the office for recording deeds in the county where the lands lie, and the records thereof, or duly certified copies thereof, shall be evidence in all cases where the original deeds would be evidence; and where any such deeds have heretofore been recorded as aforesaid, the records thereof, or duly certified copies thereof, shall be as good evidence as if the same had been recorded under the provisions of this act.

Part IV Ch. 36–40 Insurance

§ 383.  Deeds of county commissioners

Part III Ch. 23–35 Mortgages

In any case in which a deed or other instrument in writing, now by law authorized to be recorded, shall relate to or embrace lands in more than one county in this commonwealth, and shall be or shall have been recorded in one or more of said counties, it shall be lawful to take from the record of the same, an exemplification thereof, duly certified by the recorder of deeds, under his seal of office, to be a full and perfect copy of the same, and to place the same, together with the said certificate, upon record in any other county in which any of the lands or premises therein described may be; and the record of such exemplification shall be as valid and effectual in law, for all purposes of vesting title, of evidence, and of notice, as the record of the original deeds or instruments of writing are now by law held and declared to be.

§ 384.  Letters of attorney, receipts, acquittances of legacies, etc.

Index

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Part IX Ch. 68–72 Condos, etc.

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Part VIII Ch. 64–67 L/T

All patents granted by the commonwealth, and all deeds of sheriffs, coroners, marshals and treasurers; and all deeds made in pursuance of a decree of any court, being duly acknowledged, may be recorded in the office for recording deeds in the county where the lands lie, and the records thereof, or duly certified copies thereof, shall be evidence in all cases where the original deeds or patents would be evidence; and where any of the deeds aforesaid have heretofore been recorded in the office for recording deeds in the county where the lands lie, or in the office

Part VII Ch. 57–63 Litigation

§ 385.  Patents and official deeds

Part VI Ch. 49–56 Taxation

All letters of attorney authorizing contracts to be made, the adjustment of accounts, the sale of stocks and personal estate, the receipt of moneys, or the discharge and acquittance of legacies or distributive shares when executed, proved or acknowledged in other states or foreign countries, by any person or husband and wife, in manner authorized to allow letters of attorney for the conveyance of real estate to be put on record, or if proved or acknowledged in like manner before any minister, consul or vice-consul of the United States, or officer thereof exercising ministerial or consular functions, or before a notary public in foreign countries, and duly certified under his official seal, may be placed of record in the recorder of deeds office, in any county where the powers conferred by such letters are intended to be exercised, and receivable in evidence in courts of justice, as also the exemplifications from the record thereof, when the originals shall have been lost.

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§ 386 DOCUMENTS AND ELECTRONIC RECORDING of the prothonotaries of the several courts of the city and county of Philadelphia, the records thereof, or duly certified copies thereof, shall be as good evidence as if the same had been recorded under the provisions of this act. § 386.  Releases of legacies and releases to executors, etc., duly acknowledged and sealed Any release or other instrument in writing, being evidence of the payment or satisfaction of any legacy, charged upon lands, tenements, or hereditaments, and also any release, or other instrument in writing, given to any executor, administrator, assignee, trustee or guardian, whether relating to real or personal estate, if such release or other instrument in writing shall be under seal, and shall have been executed before at least two competent subscribing witnesses, and shall also have been duly acknowledged, or the execution thereof proved in the manner provided by the existing laws, for the acknowledgment or proof of the execution of deeds and conveyances of lands, tenements and hereditaments, in order to authorize the same to be recorded, may, in case such release or other instrument in writing relates to real estate, be recorded in the office for recording of deeds, in the county where such real estate may be situate, and in case such release or other instrument in writing relates to debts, dues, claims, legacies, or other personal property, the same may be recorded in the office for recording of deeds, in any county where the person or persons interested therein may reside, and copies or exemplifications of such releases or other instruments in writing, under seal, acknowledged or proved, and recorded as aforesaid, being examined by the recorder, and certified under the seal of the proper office, which the recorder or keeper thereof is hereby required to do, shall be allowed as well in all courts where produced as elsewhere, and are hereby declared and enacted to be as good evidence, and as valid and effectual in law, as the original releases, or other instruments in writing, under seal, would be if duly proved by the subscribing witnesses thereto, and the same may be shewed, pleaded and made use of accordingly. § 387.  Release of legacy, etc., made out of state, but charged on land within the state Any release or other instrument of writing, being evidence of the payment or release of any legacy or recognizance charged upon lands or tenements within this state, that have been, or may hereafter be made out of this state, or within the same, and which shall have been duly acknowledged, or the execution thereof proved in the manner provided by the existing laws for the acknowledgment and proof of the execution of deeds or other instruments of writing, concerning any lands or tenements and hereditaments, in order to authorize the same to be recorded, may be recorded in the office for the recording of deeds in the county where such real estate may be situate, and copies or exemplifications of such releases or other instruments of writing, acknowledged or proved and recorded as aforesaid, being examined by the recorder, and certified under the seal of his office, which the said recorder is hereby required to do, shall be allowed in all courts where produced, or elsewhere, and are hereby declared to be as good evidence, and as valid and effectual in law as the original instrument of writing would be, if duly proved, and the same may be made use of accordingly. § 388.  Release of legacy without subscribing witnesses The acts heretofore passed supplementary to an act entitled “An act for the acknowledging and recording of deeds,” shall be taken and construed to include and authorize the recording of any release of a legacy by writing, signed, acknowledged or proved in manner to authorize the recording of any other writing

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Ch. 19.1

Part VIII Ch. 64–67 L/T Part IX Ch. 68–72 Condos, etc. Index

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Part VII Ch. 57–63 Litigation

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Part VI Ch. 49–56 Taxation

§ 399.  Plan of subdivided tract; penalty for omission; recovery When any tract or piece of land within the limits of any county of this commonwealth, which has been or shall be hereafter sub-divided into lots, and any lot has been sold from the tract or piece of land so divided according to said plan of subdivision without said plan of subdivision having been recorded, it shall be the duty of the owner of said tract of land, or the legal representatives thereof, authorizing said plan of subdivision of such tract of land to be laid out, to record said plan of such subdivision in the office of the recorder of deeds, et cetera, in the proper county upon sixty days’ notice to record the same from the recorder of deeds of the proper county, or any person having an interest in the said tract of land, given from time to time, plan of the subdivision described by duly recorded; and if such owner, or the legal representatives thereof, shall fail to cause said plan of subdivision of said tract of land, as aforesaid, to be recorded in the said office, such owner, or the legal representatives thereof, shall forfeit and pay the sum of one hundred ($100.00) dollars for each failure to record such plan of subdivision, without notice from time to time, as aforesaid. Said sum or sums to be recovered as debts of like amount are by law recoverable at the suit of any party interested, or the recorder of deeds of the proper

Part V Ch. 41–48A Zoning, etc.

§§ 392 to 398.  Repealed. 1978, April 28, P.L. 202, No. 53

Part IV Ch. 36–40 Insurance

§ 391.  Releases, etc., executed by married woman alone may be recorded All releases, contracts, letters of attorney and other instruments of writing which a married woman is or shall be authorized by law to make and execute without the joinder of her husband, and which have been or shall hereafter be so executed by her, may be recorded in the office for recording deeds in the proper county if the same shall have been acknowledged by her without her husband joining, or her signature thereto shall have been duly proved before a justice of the peace or other officer having authority to take such acknowledgments or proofs according to the laws of this commonwealth. and the said records shall have the same effect in all respects as if she were unmarried; and where any such instrument so acknowledged or proved shall have been heretofore admitted to record in any county of this commonwealth, the record thereof shall be as good and valid for all purposes as if it had been recorded subsequently to the passage of this act: Provided, That this act shall not apply to any case which has been heretofore judicially decided or in which an action is now pending.

Part III Ch. 23–35 Mortgages

§ 390.  Deeds and patents from commonwealth All deeds and patents granted by the Commonwealth of Pennsylvania may be recorded in the office for recording deeds in the county where the lands lie, without acknowledgment; and the records thereof, or duly certified copies thereof, shall be evidence in all cases where the original deeds or patents would be evidence; and where any of the deeds or patents aforesaid have been heretofore recorded in the office for recording deeds in the county where the lands lie, the records thereof are hereby made valid, and said records, or duly certified copies thereof, shall be as good evidence as if the same had been recorded under the provisions of this act.

Part II Ch. 15–22 Deeds

§ 389.  Repealed. 1949, May 18, P.L. 1440, § 27

Part I Ch. 1–14 Brokers

or deed, although there may be no subscribing witnesses thereto, or but one such witness, and all releases heretofore signed, executed and delivered, which would be comprised in said acts are hereby construed, may be recorded, or, if recorded, shall be taken as validly recorded, and as such be received in evidence: Provided, This act shall not affect any judicial decision heretofore rendered, or to be used in any case now pending in this commonwealth.

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§ 400 DOCUMENTS AND ELECTRONIC RECORDING county, before any alderman or justice of the peace, in and for said county, in the name of and for the use of said county. § 400.  Record of minutes of corporate meeting Whenever any corporation may have sold, let or mortgaged, or may hereafter sell, let or mortgage, any of its corporate property, real or personal, or its franchises, a copy of the minutes of any meeting of the stockholders or directors of such corporation, authorizing or directing any such sale, letting or mortgaging, proven by oath or affirmation of the secretary, or other proper custodian of such minutes, to be a full and true copy of the minutes of such meeting, so far as relates to any such sale, letting or mortgaging, shall be prima facie evidence of the matters therein set forth, in any case in which the original minutes, if duly proven, would be evidence in any judicial proceeding, relating to such property or franchises; and such copy, so probated before any officer authorized to take probate or acknowledgment of deeds for the purpose of record in this commonwealth, may be recorded in the office for recording deeds, in the proper county, in like manner, and with like effect, as other instruments of writing, relating to real estate in such county, may be recorded. § 401.  Probate of minutes in case of dissolution of corporation Whenever any such corporation, after having sold, let or mortgaged any estate, real or personal, or franchises, may have been, or may hereafter be, dissolved in pursuance of law, such probate may be made by the secretary who kept or recorded such minutes, or by any other ex-officer of such dissolved corporation having the actual custody of said original minutes, and the averment of such facts in the probate shall be prima facie evidence thereof. § 402.  Record and notation of judgments or decrees affecting deeds or instruments of record; fee When any final judgment or decree, heretofore or hereafter entered in any court in this Commonwealth, affects any deed or other instrument of record in the office of the recorder of deeds of any county, the recording of such judgment or decree, and a reference thereto noted upon the margin of the record of said deed or other instrument, giving the court, the date, and the number and term thereof, shall constitute record notice of such judgment or decree. Upon the production before the recorder of deeds of either the original record or a certified copy of the record of any proceeding in any such court, the judgment or decree wherein shall affect any deed or other instrument of record in the office of such recorder of deeds, it shall be the duty of such recorder to record the said judgment or decree, with the name of the court, the title, number, and term of the proceeding wherein the same shall have been entered, and to enter, upon the margin of the record of such deed or other instrument, the notation hereinbefore provided, for which service he shall receive the fees provided by law. § 403.  Wills probated outside state; exemplified copies The recorder of deeds shall record exemplified copies of wills probated outside of this Commonwealth, and shall index them in the grantor index under the name of the testator and in the grantee index under the name of each person named in the will as devisee of real property located in this Commonwealth. Each will so recorded and indexed shall be notice to all persons of the existence thereof. § 404.  Lease or sublease or agreement to lease or sublease Any lease or sublease or agreement to lease or to sublease, acknowledged according to law by the lessor, may but need not, unless otherwise required by

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Ch. 19.1

§ 405.  Memorandum of lease, sublease or agreement

(1)   The name of the lessor in such lease, sublease or agreement;

Part III Ch. 23–35 Mortgages Part IV Ch. 36–40 Insurance

(2)   The name of the lessee therein; (3)   The addresses, if any, set forth therein as addresses of such parties; (4)   A reference to the date thereof; (5)   The description of the demised premises in the form set forth therein; (6)   The date of commencement of the term of the lease, if a fixed date, and if not the full provision or provisions thereof pursuant to which such date of commencement is to be fixed; (7)   The term of the lease; (8)   If the lessee has a right of extension or renewal, the date of expiration of the final period for which such right is given; (9)   If the lessee has a right of purchase of or refusal on the demised premises or any part thereof, a statement of the term during which said right is exercisable.

Part II Ch. 15–22 Deeds

In lieu of the recording of such a lease, sublease or agreement, there may be recorded in such office a memorandum thereof, executed by all persons who are parties to said lease, sublease or agreement and acknowledged according to law by the lessor, containing at least the following information with respect to such lease, sublease or agreement:

Part I Ch. 1–14 Brokers

law, be recorded in the office for the recording of deeds in the county or counties wherein are situate the premises thereby leased or to be leased.

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§ 406.  Indexing of lease, sublease or agreement Any such lease, sublease, agreement or memorandum, so recorded, shall be indexed by the recording officer in the grantor index against the lessor therein named and in the grantee index against the lessee therein named.

Part V Ch. 41–48A Zoning, etc.

§ 407.  Effect of recording lease, sublease, agreement or memorandum The recording of any such lease, sublease, agreement or memorandum in accordance with the provisions of this act shall constitute constructive notice to subsequent purchasers, mortgagees and judgement creditors of the lessor of the making and of the provisions of such lease, sublease or agreement, including any purchase or refusal provisions set forth in the lease, sublease or agreement.

Part VI Ch. 49–56 Taxation

§ 408.  Construction of act regarding lease, sublease or agreement This act shall not be construed as derogating from any actual or constructive notice which would be effective under existing law of the making or of the provisions of any present or future lease, sublease or agreement.

Part VII Ch. 57–63 Litigation

1. 21 P.S. §§ 404-410; 1959, June 2, P.L. 454, § 1.

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Part IX Ch. 68–72 Condos, etc.

§ 410.  Application of act regarding lease, sublease or agreement The provisions of this act1 shall apply to all such instruments recorded after the effective date hereof.

Part VIII Ch. 64–67 L/T

§ 409.  Effect of recording memorandum of lease, sublease or agreement The recording of any such memorandum shall constitute full compliance with the provisions of any act now or hereafter requiring or permitting the recording of leases, subleases or agreements to lease or to sublease in connection with the mortgaging or assignment thereof.

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CHAPTER 19.2 UNIFORM REAL PROPERTY ELECTRONIC RECORDING ACT   21 PS § 483.1 TO § 483.9

Sec.

§ 483.1. § 483.2. § 483.3. § 483.4. § 483.5. § 483.6. § 483.7. § 483.8. § 483.9.

Short title Definitions Validity of electronic documents Recording of documents Commission Administration and standards Construction of act Relation to Electronic Signatures in Global and National Commerce Act Savings provision

Uniform Real Property Electronic Recording Act § 483.1.  Short title This act shall be known and may be cited as the Uniform Real Property Electronic Recording Act. § 483.2.  Definitions The following words and phrases when used in this act shall have the meanings given to them in this section unless the context clearly indicates otherwise: “Commission.” The Electronic Recording Commission established in section 5.2 “Department.” The Department of State of the Commonwealth. “Document.” Information that is: (1) inscribed on a tangible medium or that is stored in an electronic or other medium and is retrievable in perceivable form; and (2) eligible to be recorded in the land records maintained by the recorder. “Electronic.” As defined under section 103 of the act of December 16, 1999 (P.L. 971, No. 69),3 known as the Electronic Transactions Act. “Electronic document.” A document that is received by the recorder in an electronic form. “Electronic signature.” As defined under section 103 of the act of December 16, 1999 (P.L. 971, No. 69), known as the Electronic Transactions Act. “Nonelectronic document.” A document that is received by the recorder in a form that is not electronic, including a document on paper or microfilm. “Person.” Includes any of the following: (1) A corporation. (2) A partnership. (3) A limited liability company. (4) A business trust. (5) An association. 2. 21 P.S. § 483.5. 3. 73 P.S. § 2260.103.

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Ch. 19.2

Part VI Ch. 49–56 Taxation Part VII Ch. 57–63 Litigation Part VIII Ch. 64–67 L/T Part IX Ch. 68–72 Condos, etc. Index

gtb-parealestate22-all.indb 139

Part V Ch. 41–48A Zoning, etc.

139

Part IV Ch. 36–40 Insurance

4. 73 P.S. § 2260.101 et seq. 5. 57 P.S. § 147 et seq.

Part III Ch. 23–35 Mortgages

§ 483.4.   Recording of documents (a)   Recorder powers and duties.— (1)  A recorder who implements any of the functions listed in this section shall do so in compliance with standards established by the commission. (2)  A recorder may receive, index, store, archive and transmit electronic documents. A recorder who accepts electronic documents for recording shall index the documents in compliance with standards established by the commission.

Part II Ch. 15–22 Deeds

§ 483.3.   Validity of electronic documents (a)   Requirement for original.—If a law requires, as a condition for recording, that a document be an original, either on paper or another tangible medium or be in writing, the requirement is satisfied by an electronic document that complies with the provisions of this act. (b)  Signature.—If a law requires, as a condition for recording, that a document be signed, the requirement is satisfied by an electronic signature. (c)  Notarization.—The following shall apply: (1)   A requirement that a document or a signature associated with a document be notarized, acknowledged, verified, witnessed or made under oath is satisfied if: (i)   The electronic signature of the person authorized to perform that act, and all other information required to be included, is attached to or logically associated with the document or signature. (ii)  The act comports with the requirements of Chapters 1, 3 and 5 of the act of December 16, 1999 (P.L. 971, No. 69),4 known as the Electronic Transactions Act. (iii)   With respect to notarizations, the act comports with the requirements and procedures of the act of August 21, 1953 (P.L. 1323, No. 373),5 known as The Notary Public Law, pertaining to electronic notarization, acknowledgment and verification. (2)   A physical or electronic image of a stamp, impression or seal need not accompany an electronic signature. (d)  Record retention.—This act does not preclude the Pennsylvania Historical and Museum Commission from specifying additional requirements for retention of a record subject to the commission’s jurisdiction, including the requirement that the recorder retain a record in a nonelectronic form.

Part I Ch. 1–14 Brokers

(6) A government entity, including the Commonwealth. (7) An estate. (8) A trust. (9) A foundation. (10) An individual. “Recorder.” A county recorder of deeds or a county official responsible for the recordation of documents in counties without recorders of deeds. “State.” A state of the United States, the District of Columbia, Puerto Rico, the Virgin Islands or any territory or insular possession subject to the jurisdiction of the United States.

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§ 483.5 DOCUMENTS AND ELECTRONIC RECORDING (3)   A recorder may provide for access to and for search and retrieval of documents and information by electronic means. A recorder who accepts electronic documents for recording shall continue to accept nonelectronic documents as authorized by State law and shall place entries for both types of documents in the same index. (4)  A recorder may convert nonelectronic paper documents accepted for recording into electronic form. (5)   A recorder may convert into electronic form information recorded before the recorder began to record electronic documents. (6)   A recorder may accept electronically any fee or tax that the recorder is authorized to collect by any reasonable method of payment, including electronic payment. (7)   A recorder may agree with other officials of a state or a political subdivision of a state, or of the United States, concerning procedures or processes to facilitate the electronic satisfaction of prior approvals and conditions precedent to recording and the electronic payment of fees and taxes. (b)  No requirement.—This act does not require a recorder to accept and record electronic documents. (c)  Jurisdiction.—Recording or causing a document to be recorded pursuant to this act, either directly or through an agent, shall constitute transacting business in this Commonwealth for purposes of empowering a tribunal of this Commonwealth to exercise personal jurisdiction over a person, including an agent, and authorizing service of process outside of this Commonwealth pursuant to 42 Pa.C.S. § 5322 (relating to bases of personal jurisdiction over persons outside this Commonwealth). § 483.5.  Commission (a)   Establishment; administration of act. (1)  The Electronic Recording Commission is established as an administrative board within the department. The department shall supply adequate administrative support to the commission in accordance with section 214 of the act of April 9, 1929 (P.L. 177, No. 175),6 known as The Administrative Code of 1929, including personnel, office space and any other assistance required by the commission to carry out its duties under this act. Policy determinations regarding the implementation of this act shall be made by the commission and shall not be subject to review or approval by the department. (2)   The commission shall administer this act. (b)  Membership.—The commission shall consist of the following members: (1)   Eight members shall be appointed as follows: (i)   The President pro tempore of the Senate shall appoint two members. One member under this subparagraph must be a sitting recorder serving in a county of the first class through fourth class, and one member under this subparagraph must be a sitting recorder serving in a county of the fifth class through eighth class. (ii)   The Minority Leader of the Senate shall appoint two members. One member under this subparagraph must be a sitting recorder serving in a county of the first class through fourth class, and one member under this subparagraph must be a sitting recorder serving in a county of the fifth class through eighth class. 6. 71 P.S. § 74.

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Ch. 19.2

(i)   The Pennsylvania Historical and Museum Commission. (ii)  The department. (iii)   The Pennsylvania Association of Notaries.

Part III Ch. 23–35 Mortgages

(2)  The Governor shall appoint five members, one from and representing each of the following entities from a nomination list containing a minimum of four nominees provided to the Governor by each entity, as follows:

Part II Ch. 15–22 Deeds

(iv)   The Minority Leader of the House of Representatives shall appoint two members. One member under this subparagraph must be a sitting recorder serving in a county of the first class through fourth class, and one member under this subparagraph must be a sitting recorder serving in a county of the fifth class through eighth class.

Part I Ch. 1–14 Brokers

(iii)   The Speaker of the House of Representatives shall appoint two members. One member under this subparagraph must be a sitting recorder serving in a county of the first class through fourth class, and one member under this subparagraph must be a sitting recorder serving in a county of the fifth class through eighth class.

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(iv)   The Pennsylvania Land Title Association. (c)  Terms.— (1)   Except as set forth in paragraph (2), each member shall serve a threeyear term.

(d)  Vacancies.—A vacancy in membership shall be filled in the same manner as the original appointment. (e)  Chair.—

(2)  A member of the commission may be elected chair of the commission more than once.

(f)  Compensation.—Members of the commission shall not receive compensation, but may be reimbursed for reasonable expenses incurred in performing official duties.

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Part IX Ch. 68–72 Condos, etc.

§ 483.6.   Administration and standards (a)   Standards for implementation.—The commission shall adopt standards to implement this act in the form of administrative regulations. This act shall not impair the validity of electronic documents and electronic signatures utilized prior to the effective date of the standards adopted under this subsection, except that such electronic documents or electronic signatures shall comport with:

Part VIII Ch. 64–67 L/T

(g)  Department.—In order to provide adequate administrative support pursuant to subsection (a)(1), the department may enter into cooperative agreements with other public or private organizations to provide such resources to the commission.

Part VII Ch. 57–63 Litigation

(3)   Should the chair of the commission leave the commission or resign as chair, a member of the commission who is a recorder shall be elected by the members of the commission to complete the chair’s annual term.

Part VI Ch. 49–56 Taxation

(1)   A member of the commission who is a recorder shall annually be elected by the members of the commission to serve as chair of the commission.

Part V Ch. 41–48A Zoning, etc.

(2)   For initial terms under subsection (b)(1), each appointing authority shall make one appointment for a one-year term and one appointment for a twoyear term.

Part IV Ch. 36–40 Insurance

(v)   The Pennsylvania Bankers Association.

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§ 483.6 DOCUMENTS AND ELECTRONIC RECORDING (1)   Chapters 1, 3 and 5 of the act of December 16, 1999 (P.L. 971, No. 69),7 known as the Electronic Transactions Act. (2)   With respect to notarizations, the requirements and procedures of the act of August 21, 1953 (P.L. 1323, No. 373),8 known as The Notary Public Law, pertaining to electronic notarization, acknowledgment and verification. (b)   Manner of formulating standards.—To keep the standards and practices of recording offices in this Commonwealth in harmony with the standards and practices of recording offices in other jurisdictions that enact substantially this act and to keep the technology used by recorders in this Commonwealth compatible with technology used by recording offices in other jurisdictions that enact substantially this act, the commission, so far as is consistent with the purposes, policies and provisions of this act, in adopting, amending and repealing standards, shall do all of the following: (1)   Consult with electronic recording commissions in other states. (2)  Consider the most recent standards promulgated by the Property Records Industry Association or any successor organization. (3)  Consider the standards and practices of and the technology used by the other states. (4)   Consider the views of interested persons for the purposes of obtaining guidance and assuring uniformity. (5)   Consider the needs of counties of varying size, population and resources. (6)   Provide for adequate information security protection to ensure that electronic documents are accurate, authentic, adequately preserved and resistant to tampering. (7)   Consider the need to prevent and detect fraud. (8)   Provide methods to ensure that any person submitting electronic documents for recording is approved as a trusted submitter by the recording office and has provided sufficient information to enable the recording office to identify and contact the person if necessary to correct errors and prevent fraud. (9)   Provide methods to ensure that information is provided in connection with recording that is adequate to identify and serve process upon a person or any agent of a person causing a document to be recorded so as to facilitate the availability of remedies for the improper or fraudulent recording of documents. (c)  Procedure.— (1)   Initial standards under this section shall be promulgated as temporary regulations, in accordance with the following: (i)   The rulemaking shall be exempt from all of the following: (A)  Sections 201, 202, 203, 204 and 205 of the act of July 31, 1968 (P.L. 769, No. 240),9 referred to as the Commonwealth Documents Law. (B)   Sections 204(b) and 301(10) of the act of October 15, 1980 (P.L. 950, No. 164),10 known as the Commonwealth Attorneys Act. (C)   The act of June 25, 1982 (P.L. 633, No. 181),11 known as the Regulatory Review Act.

7. 73 P.S. § 2260.101 et seq. 8. 57 P.S. § 147 et seq. 9. 45 P.S. § 1201 to 1205. 10. 71 P.S. §§ 732-204, 732-301. 11. 71 P.S. § 745.1 et seq.

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DEEDS

Ch. 19.2

Part IV Ch. 36–40 Insurance Part V Ch. 41–48A Zoning, etc. Part VI Ch. 49–56 Taxation Part VII Ch. 57–63 Litigation Part VIII Ch. 64–67 L/T Part IX Ch. 68–72 Condos, etc. Index

gtb-parealestate22-all.indb 143

Part III Ch. 23–35 Mortgages

143

Part II Ch. 15–22 Deeds

12. 65 P.S. § 63.1 et seq. 13. 65 P.S. § 65.1 et seq.

Part I Ch. 1–14 Brokers

(ii)   The temporary regulations shall not be effective for more than two years. (2)   The commission shall promulgate permanent regulations in accordance with law. (d)  Conflict.— (1)   The powers and duties of the following may not be exercised in a manner which is inconsistent with the powers and duties exercised by the commission under this section: (i)   The county and Local Government Records Committees under the act of May 9, 1949 (P.L. 908, No. 250),12 entitled, as amended, “An act relating to public records of political subdivisions other than cities and counties of the first class; authorizing the recording and copying of documents, plats, papers and instruments of writing by digital, photostatic, photographic, microfilm or other process, and the admissibility thereof and enlargements thereof in evidence; providing for the storage of duplicates and sale of microfilm and digital copies of official records and for the destruction of other records deemed valueless; and providing for the services of the Pennsylvania Historical and Museum Commission to political subdivisions.” (ii)   An officer of a county of the first class or of a city of the first class under the act of May 11, 1949 (P.L. 1076, No. 311),13 entitled, as amended, “An act authorizing the recording, copying and recopying, of documents, plats, papers, written instruments, records and books on file or of record, and the replacement and certification of originals previously filed and of record, by officers of counties of the first class and of cities of the first class, by photostatic, photographic, microphotographic, microfilm, or other mechanical process; relating to the effect and use of such copies, records, reproductions, replacements and transcripts, or certified copies thereof; providing for a recording fee and its use; and providing for revision of and entries to be made on originals and copies so produced or replaced.” (2)   Standards under this section shall supersede standards, policies and procedures of the persons listed in paragraph (1) to the extent of any inconsistency. (e)  Sunset.—The commission shall terminate on January 1 of the fourth year after the effective date of this act, unless it is reestablished by action of the General Assembly. Prior to termination, the commission may offer recommendations to the General Assembly, including recommendations to modify the date the commission shall terminate. § 483.7.   Construction of act As far as practicable, the commission shall administer this act so as to promote uniformity of the law with respect to its subject matter among states that enact it. § 483.8.  Relation to Electronic Signatures in Global and National Commerce Act Under the authority granted by section 102 of the Electronic Signatures in Global and National Commerce Act (Public Law 106-229, 15 U.S.C. § 7002), this act modifies, limits and supersedes the Electronic Signatures in Global and National Commerce Act but does not modify, limit or supersede section 101(c) of the Electronic Signatures in Global and National Commerce Act (15 U.S.C. § 7001(c)) or authorize electronic delivery of any of the notices described in section 103(b) of the Electronic Signatures in Global and National Commerce Act (15 U.S.C. § 7003(b)).

Table of Contents

PART II

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§ 483.9 DOCUMENTS AND ELECTRONIC RECORDING § 483.9.  Savings provision Nothing in this act shall be construed to repeal any of the following acts or parts of acts: (1)   Section 5 of the act of March 18, 1875 (P.L. 32, No. 36),14 entitled “An act requiring recorders of deeds to prepare and keep in their respective offices general, direct and ad sectum indexes of deeds and mortgages recorded therein, prescribing the duty of said recorders and declaring that the entries in said general indexes shall be notice to all persons.” (2)  Section 10 of the act of April 1, 1909 (P.L. 91, No. 53),15 entitled “An act relating to deeds for conveying or releasing lands, construing words and phrases used therein, and prescribing a form of deed and acknowledgment which may be used for conveying or releasing lands.” (3)  Section 3 of the act of April 24, 1931 (P.L. 48, No. 40),16 entitled “An act requiring the recording of certain written agreements pertaining to real property, and prescribing the effect thereof as to subsequent purchasers, mortgagees, and judgment creditors of the parties thereto.” (4)  The act of January 15, 1988 (P.L. 1, No. 1),17 known as the Uniform Parcel Identifier Law. Repeals per Section 10 of Act 100 of 2012 (a)  Specific.—The following acts and parts of acts are repealed insofar as they prohibit electronic filing of satisfaction pieces allowed by this act: (1)   Sections 3 and 7 of the act of March 15, 1956 (1955 P.L.1280, No.392), entitled “An act relating to the satisfaction of mortgages in cities and counties of the first class by the recording of a satisfaction piece, prescribing forms therefor, and fixing the fees thereof.” (2)  Section 4 of the act of July 26, 1961 (P.L.887, No.382), entitled, as amended, “An act relating to the satisfaction of mortgages in counties of the second, second A, third, fourth, fifth, sixth, seventh and eighth class by the recording of a satisfaction piece, prescribing forms therefor, and fixing fees for the recording thereof.” (3)   The act of December 9, 2002 (P.L.1530, No.197), known as the Mortgage Satisfaction Act. (b)  General.—All acts and parts of acts are repealed insofar as they are inconsistent with this act.

14. 15. 16. 17.

16 21 21 21

P.S. P.S. P.S. P.S.

§ 9854.1. § 10.1. § 358. § 331 et seq.

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Table of Contents

CHAPTER 20

Part I Ch. 1–14 Brokers

REAL ESTATE REGISTRIES Chapter

Part II Ch. 15–22 Deeds

20.1  Borough Code    8 Pa.C.S. § 1202 20.2   Incorporated Towns: see Repealer below    53 P.S. § 53601 to 53 P.S. § 53605 20.3   First Class Township Code: see Repealer below    53 P.S. § 56310 to 53 P.S. § 56315. 20.4   Second Class County Lot System and Registration of Property    16 P.S. § 3701 to 16 P.S. § 3708 20.5   Uniform Municipal Deed Registration Act    21 P.S. § 338.1 to 21 P.S. § 338.9

Part III Ch. 23–35 Mortgages Part IV Ch. 36–40 Insurance

CHAPTER 20.1 BOROUGH CODE 8 Pa.C.S. § 1202

Sec.

Specific powers

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Index

1. 121 P.S. § 338.1 et seq. infra Chapter 20.5.

Part IX Ch. 68–72 Condos, etc.

* * *

Part VIII Ch. 64–67 L/T

(61) To establish, by ordinance, and maintain a real estate registry for the purpose of procuring accurate information in reference to the ownership of real estate in the borough in a manner not inconsistent with the act of October 9, 2008 (P.L.1400, No.110),1 known as the Uniform Municipal Deed Registration Act. Council shall designate a person to have charge of the registry who shall cause to be made and carefully preserve all necessary books, maps and plans as may show the location and ownership of every lot, piece of real estate and subdivision of real estate. For purposes of establishing or maintaining the registry, the person in charge of the registry shall have access to public records without charge. Information contained within a real estate registry shall not affect the validity of any municipal claim or tax claim of the borough. Nothing in this paragraph shall prohibit a borough from requiring owners to provide information relevant to the enforcement of any borough ordinance in accordance with law.

Part VII Ch. 57–63 Litigation

* * *

Part VI Ch. 49–56 Taxation

§ 1202.   Specific powers. The powers of the borough shall be vested in the council. In the exercise of any specific powers involving the enactment of an ordinance or the making of any regulation, restriction or prohibition, the borough may provide for enforcement and penalties for violations. The specific powers of the borough shall include the following:

Part V Ch. 41–48A Zoning, etc.

§ 1202.

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§ 53601

REAL ESTATE REGISTRIES CHAPTER 20.2 INCORPORATED TOWNS 53 P.S. § 53601 to 53 P.S. § 53605

ED. NOTE: REPEALED by the Uniform Municipal Deed Registration Act (See Chap. 20.5 infra) to the extent inconsistent therewith

Sec. § § § § §

53601. Registration of deeds; duties of secretary 53602. Access to public records 53603. Preservation of books, maps, and plans 53604. Owners and purchasers to register titles; penalty for failure 53605. Registration of sheriffs’ deeds; duties of prothonotaries and recorders

§ 53601.   Registration of deeds; duties of secretary For the purpose of procuring accurate information in reference to the ownership of real estate, the council of each borough and incorporated town may provide by ordinance for a registry thereof. The secretary or the town clerk of such borough or incorporated town in which such registry shall be established shall, under the direction of the council, cause to be made all necessary books, maps, and plans as will show the situation and dimensions of each property thereon, which books, maps, or plans shall be so prepared as to show the location and the name of the owner or owners thereof, with blank spaces for the name of the owner of each lot, and with provision for the names of future owners and the dates of future transfers of title. § 53602.   Access to public records For the purpose of establishing such registry, the secretary or town clerk shall have access, without charge, to any public records wherein the necessary information may by obtainable, and may also cause a search to be made in other places for any muniments or evidences of title not reported to him as herein provided and requisite for the completion of such books, maps, or plans. § 53603.   Preservation of books, maps, and plans That said books, maps, and plans shall be carefully preserved, and shall be so kept, by additions from time to time, as to show the ownership of every lot or piece of real estate or subdivision thereof within the limits of such borough or incorporated town, with the succeeding transmissions of title from the time of the commencement of such plans, but nothing contained therein shall at any time invalidate any municipal or tax claim by reason of the fact that the same is not assessed or levied against the registered owner. § 53604.   Owners and purchasers to register titles; penalty for failure It shall be the duty of all owners of real estate within the limits of such borough or incorporated town, within one month after the date of the approval of any ordinance establishing such registry, and of every subsequent purchaser, devisee or person, within one month after acquiring title in any manner whatsoever to any real estate in such borough or incorporated town, to furnish to the said secretary or town clerk at his office descriptions of their respective properties upon blanks to be furnished by the borough or incorporated town, and at the same time to present their conveyances to be stamped as evidence of the registry thereof. Any person neglecting or refusing to comply with the provisions of this section for a period of thirty days after public notice shall be liable to a penalty of

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DEEDS

Ch. 20.2

Part III Ch. 23–35 Mortgages

CHAPTER 20.3 REGISTRIES: FIRST CLASS TOWNSHIP CODE

Part IV Ch. 36–40 Insurance

53 P.S. § 56310 to 53 P.S. § 56315 ED. NOTE: REPEALED by the Uniform Municipal Deed Registration Act (See Chap. 20.5 below) to the extent inconsistent therewith

Sec.

56310. Provisions for registration of real estate 56311. Preparation of books, plans and maps 56312. Preservation of records 56313. Certified copies of entries admissible as evidence 56314. Duties imposed on owners of real estate when registry established; penalty 56315. Registry of properties; duty of county officers

Part V Ch. 41–48A Zoning, etc.

§ § § § § §

Part IX Ch. 68–72 Condos, etc. Index

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Part VIII Ch. 64–67 L/T

§ 56312.   Preservation of records The said books, maps and plans shall be carefully preserved in the office of the engineer of said township; and shall be so kept, by additions from time to

Part VII Ch. 57–63 Litigation

§ 56311.   Preparation of books, plans and maps The township engineer of any township in which such registry shall be established shall cause to be made all such necessary books, maps and plans as will show the situation and dimensions of each property therein, which books, maps or plans shall be so prepared as to show the house number, if any, the name of the owner or owners thereof, with blank spaces for the owner of each lot, with provision for the names of future owners, and dates of future transfer of title. For such purpose, the township engineer shall have free access, without charge, to any of the public records wherein the necessary information may be obtainable therefor. He may also cause search to be made in any other place for any muniments or evidence of title, not reported to him as hereinafter provided, and requisite for the completion of such books, maps or plans.

Part VI Ch. 49–56 Taxation

§ 56310.  Provisions for registration of real estate For the purpose of procuring accurate information in reference to the ownership of all real estate, the board of township commissioners may provide, by ordinance for the registry thereof in the manner following.

147

Part II Ch. 15–22 Deeds

§ 53605.  Registration of sheriffs’ deeds; duties of prothonotaries and recorders The sheriffs of the respective counties in which any such borough or incorporated town is situated shall present for registry the deeds of all properties within such borough or incorporated town sold by them at judicial sales; and the prothonotaries and recorders of deeds of such counties shall not admit for record any deed of any property in such borough or incorporated town bearing dates subsequent to the approval of an ordinance providing for the establishment of such registry, unless same shall first have been duly stamped as herein provided.

Part I Ch. 1–14 Brokers

five dollars, to be recovered with costs of suit in the name and for the use of the borough or incorporated town, as penalties of like amount are now recoverable.

Table of Contents

PART II

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§ 56313

REAL ESTATE REGISTRIES

time, or otherwise, as to show the ownership of every lot or piece of real estate, or subdivision thereof, within the township limits, with the successive transfers of title, from the date of the commencement of such plans; but nothing therein or in this article shall invalidate any municipal or tax claim by reason of the fact that the same is not assessed or levied against the registered owner. § 56313.   Certified copies of entries admissible as evidence Certified copies, under the hand of the said engineer, of any of the entries in said books, or upon said maps or plans, shall be received in evidence in the same manner as the books, maps and plans themselves might be admissible for such purposes; and may be also furnished to any person desiring the same for such fee or compensation, for the use of the township, as may be fixed by ordinance. § 56314.  Duties imposed on owners of real estate when registry established; penalty All owners of unregistered real estate within the township limits, within one month from the date of the approval of the ordinance establishing such registry, and every subsequent purchaser, and every devisee or person acquiring title by partition, or otherwise, to any real estate therein, within one month after acquiring such title, shall furnish to the said engineer, at his office, descriptions of their respective properties, upon blanks furnished by the township, and, at the same time, present their conveyance to be stamped by said engineer, without charge, as evidence of the registration thereof. Any person or persons neglecting or refusing to comply with the provisions of this section, for a period of thirty days after public notice of the requirements thereof, shall be liable to a penalty of five dollars, to be recovered, with costs of suit, in the name and for the use of the township, as penalties for the violation of township ordinances are recoverable: Provided, however, That such registration may, within said thirty day period, be also effected by the Recorder of Deeds of the county in accordance with existing law. § 56315.   Registry of properties; duty of county officers The sheriffs of the respective counties in which such townships are situated shall present for registry the deeds of all properties within the township limits sold by them at judicial sales, whether by execution or in partition or otherwise; and the prothonotaries and recorders of deeds of such counties shall not admit for record any deeds of any property in such township, bearing a date subsequent to the approval of an ordinance providing for the establishment of such registry, unless the same shall first have been duly stamped, as hereinbefore provided.

CHAPTER 20.4 SECOND CLASS COUNTY LOT SYSTEM AND REGISTRATION OF PROPERTY 16 P.S. § 3701 to 16 P.S. § 3708

Sec. § § § §

3701. County commissioners to establish 3702. Systems which may be adopted 3703. Cost and expense 3704. Part of system transferred to deed registry office, part maintained in office of controller § 3705. Putting system into effect § 3706. Petition to common pleas; determination; order

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DEEDS

Ch. 20.4

Part I Ch. 1–14 Brokers

§ 3707. Effect of order; correction of assessments; recording instruments; tax bills; liens; tax sales § 3708. Registration of ownership of property

Table of Contents

PART II

§ 3701.   County commissioners to establish The county commissioners are hereby empowered to establish, in the office of the county controller, the lot and block system for the registration of land titles, for the accumulation of county tax liens, and for the enumeration of the parcels of real estate to be assessed for county, city, borough, township, school and institution district taxation.

Part II Ch. 15–22 Deeds

§ 3702.  Systems which may be adopted In establishing the said lot and block system, the commissioners may adopt any system covered by such designation, now in use either in municipalities in the Commonwealth or in use in the municipalities in other states, or a combination of such systems, as they shall deem proper, in order to supply the needs of said county.

Part III Ch. 23–35 Mortgages Part IX Ch. 68–72 Condos, etc. Index

gtb-parealestate22-all.indb 149

Part VIII Ch. 64–67 L/T

149

Part VII Ch. 57–63 Litigation

1. 53 P.S. §§ 2011.101 to 2011.703 (repealed; see, now, 53 Pa.C.S. § 8101 et seq.).

Part VI Ch. 49–56 Taxation

§ 3706.   Petition to common pleas; determination; order Immediately upon the receipt of the certification of completion from the county controller, the commissioners shall present their petition to the Court of Common Pleas, setting forth the establishment of such lot and block system, the fact of its completion, either in the county as a whole or within one or more municipal subdivisions, and a brief statement describing the method of operation of the lot and block system so established. If the court shall determine that the said system has been established in accordance with the provisions of this article and has been completed, it shall make an order placing the same in effect as of the first Monday of January next succeeding such order.

Part V Ch. 41–48A Zoning, etc.

§ 3705.  Putting system into effect Where the commissioners have established the lot and block system in the office of the county controller, and where the county controller has certified to the commissioners that said system has been completely installed in either the whole of the county or completely installed in one or more municipal subdivisions thereof, then the commissioners shall proceed to put said system into effect in the manner hereinafter set forth.

Part IV Ch. 36–40 Insurance

§ 3703.   Cost and expense For the purpose of defraying the cost and expense of establishing said lot and block system, the commissioners may use current tax revenue or may issue general obligation bonds in such amounts as are necessary and in such manner as provided by the Municipal Borrowing Law.1 § 3704.  Part of system transferred to deed registry office, part maintained in office of controller When installation of the lot and block system has been completed, the division of said system having custody of the plats and plat books and the upkeep of the same shall be transferred to the deed registry office of said county, and the files, cards, indexes and records relating to the liening of county taxes shall remain in and be maintained by the office of the controller of said county. The deed registrar and the controller of the county are hereby charged with and required to operate and maintain the several portions of the lot and block system placed in their custody, as herein provided.

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§ 3707

REAL ESTATE REGISTRIES

§ 3707.   Effect of order; correction of assessments; recording instruments; tax bills; liens; tax sales The effect of the order of the Court of Common Pleas shall be as follows: (a)  The district assessors appointed by the Board of Property Assessment, Appeals and Review, whose assessments are being made within the municipal subdivisions that have had the lot and block system completed therein, shall immediately proceed to correct their original books of assessment by adding thereto the lot and block system descriptive numbers. (b)   The Board of Property Assessment, Appeals and Review shall, as to assessments already in its hands, which assessments are within municipal subdivisions covered by said order or orders of court, correct such assessments by adding thereto the lot and block system descriptive numbers. (c)   The recorder of deeds shall receive for recording any deed that shall refer to a specific parcel of real estate, whether or not said deed shall bear the certification by the custodian of the lot and block system that the lot and block system descriptive numbers in corporated in the description of the real estate described therein are correct, but before transcribing any such deed lacking the certification, he shall obtain the same from the custodian of the lot and block system. (d)  The treasurer or tax collector of each city, borough, town, township or school district, where the lot and block system has been completed under the order of court, shall place upon each tax bill sent out, and upon each tax receipt issued upon payment, the lot and block system descriptive numbers. (e)  The county controller, in the case of the county, and the treasurer, tax collector or solicitor, as the case may be, in each city, borough, township or school district, within which the lot and block system has been completed, shall, at the time of filing liens for unpaid taxes with the prothonotary, set forth on such liens the individual lot and block system descriptive numbers, and the prothonotary shall not receive and file such liens unless the said descriptive numbers are contained thereon. (f)   For the purposes of the sale of real estate for delinquent taxes, either by the sheriff of the county or by the commissioners and treasurer of the county, or by the treasurer of any city, the lot and block system descriptive numbers are hereby declared to be sufficient description for the advertising preceding such sale, for the oral description read at such sale prior to receiving bids, and for the purposes of the description to be inserted in any tax deed to be given to the purchaser at such sale. § 3708.   Registration of ownership of property (a)   All persons, corporations, municipal corporations, authorities, districts or political subdivisions, hereafter acquiring any interest in real estate, whether by purchase, gift, devise, inheritance, order of court, treasurer’s sale, sheriff’s sale, judicial sale, eminent domain or otherwise, shall register in the office of the county commissioners their deeds, resolutions, orders of court or other evidence of title, so that the same may be endorsed in accordance with the act of May 2, 1899 (P.L. 162).2 (b)  No real estate so registered shall be subject to sale for taxes or other municipal claims, except in the name of the owner as registered in accordance with the provisions of this section. (c)   All persons, corporations, municipal corporations, authorities, districts or political subdivisions, heretofore acquiring any interest in real estate, may register their real estate in accordance with the provisions of this section.

2. 21 P.S. § 321 et seq.

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DEEDS

Ch. 20.5

Part I Ch. 1–14 Brokers

CHAPTER 20.5 UNIFORM MUNICIPAL DEED REGISTRATION ACT 21 P.S. § 338.1 to 21 P.S. § 338.9

Sec.

1. Short title 2. Definitions 3. Registration of deeds generally 4. Registration by owner or agent 5. Information access in lieu of registration 6. Fee for registration 7. Existing powers and duties preserved 8. Inconsistent ordinance or resolution 9. Repeals

Part II Ch. 15–22 Deeds Part VI Ch. 49–56 Taxation Part VII Ch. 57–63 Litigation Part VIII Ch. 64–67 L/T Part IX Ch. 68–72 Condos, etc. Index

gtb-parealestate22-all.indb 151

Part V Ch. 41–48A Zoning, etc.

151

Part IV Ch. 36–40 Insurance

§ 1.   Short title This act shall be known and may be cited as the Uniform Municipal Deed Registration Act. § 2.  Definitions The following words and phrases when used in this act shall have the meanings given to them in this section unless the context clearly indicates otherwise: “Municipality.” A city, borough, incorporated town, township of the first class, township of the second class or home rule municipality formerly classified as a city, borough, incorporated town or township. The term does not include a city of the first class. “Owner.” Includes a grantee, devisee, subsequent purchaser or other person acquiring title to real property who is required to register a deed or conveyance with a municipality in accordance with law. “Records of Deeds.” Includes any county official responsible for the recordation of conveyances in counties without recorders of deeds. § 3.   Registration of deeds generally (a)  General rule.—Notwithstanding any other provision of law or ordinance or resolution to the contrary, after the effective date of this act, any requirement that a deed or conveyance be registered with a municipality shall be satisfied by either of the following: (1)  Registration by the owner or agent in accordance with section 4. (2)  The obtaining of information necessary for registration of the deed or conveyance by the municipality, in lieu of registration under paragraph (1), in accordance with section 5. (b)  Prohibition.—A municipality shall not require that registration of a deed be made prior to the recordation of the original deed with the recorder of deeds. § 4.   Registration by owner or agent (a)  General rule.—In the absence of an ordinance enacted pursuant to section 5, the owner or an agent on behalf of the owner shall, within two business days after recording the deed or conveyance, register the deed or conveyance with the municipality which has enacted an ordinance requiring registration by any of the following methods: (1)  By delivering or sending a copy of the deed as submitted for recording, by registered or certified mail, return receipt requested, to the municipality. (2)  If agreeable to both the owner and the municipality, by electronically

Part III Ch. 23–35 Mortgages

§ § § § § § § § §

Table of Contents

PART II

12/22/21 10:45 AM

§ 5

REAL ESTATE REGISTRIES

sending an image of the deed as submitted for recording to the municipality. The recorder of deeds may, but is not required to, electronically transmit the deed as a service to the owner, and may charge such fees as are provided in the act of July 18, 1941 (P.L.421, No.169), entitled “An act requiring recorders of deeds to accept and record deeds prior to registry, where registry is required, and to have the same registered, and fixing fees therefor,” in addition to the recording fee. (b)  Prohibition.—No municipality may require that the recorder of deeds effect the registration of a deed. § 5.   Information access in lieu of registration (a)  Agreement.—The municipality and the recorder of deeds may enter into an agreement whereby the recorder of deeds shall compile and electronically transmit to the municipality or otherwise provide the municipality with electronic access to information regarding conveyances of real property. (b)  Duty of municipality.—The municipality shall, as an amendment to an existing ordinance establishing its real estate registry or otherwise by the enactment of an ordinance: (1)  Reference the existence of the agreement entered into pursuant to subsection (a). (2)  Establish that the information obtained pursuant to the agreement shall be utilized to update and maintain the municipality’s registry in lieu of registration pursuant to section 4. (3)  Establish that, as to transfers made after a specified date, an owner shall not be required to register a deed or conveyance with the municipality. (c)   Sufficiency of information.—The agreement may specify that any information periodically provided to the municipality in accordance with the act of May 17, 1945 (P.L.624, No.264), entitled, as amended, “An act requiring the recorder of deeds of every county, except counties of the second class, in certain cases to report transfers of property to the commissioners of townships of the first class and to supervisors of townships of the second class,” or any other law, is sufficient for the purpose of this section. § 6.   Fee for registration For the purpose of maintaining its registry, a municipality may charge a reasonable fee, not to exceed $10 per deed. A fee imposed pursuant to this section shall be paid as follows: (1)  The fee shall accompany any copy of a deed that is registered in accordance with section 4(a)(1). (2)  The fee shall be delivered or mailed, first class prepaid, to the municipality within seven business days after recordation in the case of registration in accordance with section 4(a)(2) or in the event the municipality enacts an ordinance providing for access to information in lieu of registration in accordance with section 5. § 7.   Existing powers and duties preserved Existing duties of the recorder of deeds to provide information in accordance with the act of May 17, 1945 (P.L.624, No.264) entitled, as amended, “An act requiring the recorder of deeds of every county, except counties of the second class, in certain cases to report transfers of property to the commissioners of townships of the first class and to supervisors of townships of the second class,” or any other law, or any power of a municipality to require an owner to provide information related to real property, to the extent that these duties and powers are not inconsistent with the provisions of this act, are hereby preserved.

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DEEDS

Ch. 20.5

Part I Ch. 1–14 Brokers Part II Ch. 15–22 Deeds Part III Ch. 23–35 Mortgages Part IV Ch. 36–40 Insurance

§ 8.   Inconsistent ordinance or resolution Any ordinance or resolution, or part thereof, inconsistent with the provisions of this act is hereby declared to be void and of no effect. § 9.  Repeals (a)  Specific.—The following acts and parts of acts are repealed insofar as they are inconsistent with this act: (1)  The act of July 17, 1919 (P.L.1001, No.396), entitled “An act authorizing boroughs and incorporated towns to establish systems for the registration of deeds and titles to real estate; imposing certain duties upon sheriffs, prothonotaries, and recorders of deeds; and providing penalties.” (2)  Subarticle (b) of Article XV of the act of June 23, 1931 (P.L.932, No.317), known as The Third Class City Code. (3)  Subarticle (b) of Article XIII of the act of June 24, 1931 (P.L.1206, No.331), known as The First Class Township Code. (4)  The act of July 18, 1941 (P.L.421, No.169), entitled “An act requiring recorders of deeds to accept and record deeds prior to registry, where registry is required, and to have the same registered, and fixing fees therefor.” (5)  Article XXX of the act of February 1, 1966 (1965 P.L.1656, No.581), known as The Borough Code. (b)  General.—All other acts and parts of acts are repealed insofar as they are inconsistent with this act.

Table of Contents

PART II

Part V Ch. 41–48A Zoning, etc. Part VI Ch. 49–56 Taxation Part VII Ch. 57–63 Litigation Part VIII Ch. 64–67 L/T Part IX Ch. 68–72 Condos, etc.

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Index

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CHAPTER 21 UNIFORM PARCEL IDENTIFIER LAW 21 P.S. § 331 to 21 P.S. § 337

Sec. § § § § § § §

1. Short title 2. Definitions 3. Ordinance requiring permanency of county maps 4. Assigning uniform parcel identifiers 5. Recording procedures 6. Fees 7. Home rule charter and optional plan counties

§ 1.  Short title This act shall be known and may be cited as the Uniform Parcel Identifier Law. § 2.  Definitions The following words and phrases when used in this act shall have the meanings given to them in this section unless the context clearly indicates otherwise: “County tax map.” A map describing real estate in a county, maintained for its tax assessment purposes as otherwise provided by law. “Governing body.” The county commissioners of the county, except in those counties which have adopted an optional charter or home rule form of government where it shall mean that body vested with the legislative authority of the county. “Municipality.” Any city of the first, second, second class A or third class, borough, incorporated town, township of the first or second class or any similar general purpose unit of government which shall hereafter be created by the General Assembly. The term shall include those general purpose units of government smaller than a county which exercise self-government under a home rule charter or optional plan. “Uniform parcel identifier.” A finite, punctuated sequence of numbers indicating the land parcel or other interest in real estate as shown on the recorded county tax map, which sequence may be the existing county tax parcel number. (1)  In the case of a “unit” within the meaning of the act of July 3, 1963 (P.L.196, No.117), known as the Unit Property Act,1 a designator for the number of the “unit” as indicated on the recorded “declaration plan” shall be included in the sequence of numbers forming the uniform parcel identifier for such “unit.” (2)  In the case of a “unit” within the meaning of 68 Pa.C.S. Part II Subpart B (relating to condominiums), a designator for the number of the “unit” as indicated on the recorded declaration shall be included in the sequence of numbers forming the uniform parcel identifier for such “unit.” (3)   In the case of an interest in real estate less than fee simple, an additional designator may be included in the sequence of numbers forming the uniform parcel identifier for such interest in order to distinguish such interest from the fee simple parcel of which such interest is a part.

1. 68 P.S. § 700.101 et seq. (repealed); see 68 Pa.C.S. § 3101 et seq.

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DEEDS

Ch. 21

Part IV Ch. 36–40 Insurance Part V Ch. 41–48A Zoning, etc. Part VI Ch. 49–56 Taxation Part VII Ch. 57–63 Litigation Part VIII Ch. 64–67 L/T Part IX Ch. 68–72 Condos, etc. Index

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Part III Ch. 23–35 Mortgages

155

Part II Ch. 15–22 Deeds

2. 63 P.S. § 148 et seq. 3. 21 P.S. § 333.

Part I Ch. 1–14 Brokers

§ 3.  Ordinance requiring permanency of county maps A county, with the written recommendation of its recorder of deeds or commissioner of records, may, by ordinance of its governing body, require the implementation of a uniform parcel identifier system. The system shall provide for a permanent record of all county tax maps with the parcel identifier clearly visible. § 4.  Assigning uniform parcel identifiers (a)   Requirements of county tax maps.—The governing body shall provide for a single agency which shall be the permanent depository of all county tax maps. The agency shall assign to each parcel a uniform parcel identifier which shall correspond with the county tax maps. (b)   Assignment of uniform parcel identifier.—At the request of an owner subdividing or amalgamating or otherwise affecting for future transfer, mortgage, release or other purpose any parcel or parcels already designated on a county tax map, the agency having custody of the county tax map shall assign a uniform parcel identifier to each parcel included in the proposed transfer, mortgage, release or other purpose. If the conveyance in the proposed transfer represents a change of size and a description of the real estate, the owner shall provide the officials with either a metes and bounds description based on a precise survey or a lot number and references to a recorded subdivision plan, which plan on its face shows metes and bounds, prepared by a professional land surveyor as required by the act of May 23, 1945 (P.L. 913, No. 367), known as the Professional Engineers Registration Law.2 Any subdivision plan which was prepared prior to the effective date of the aforesaid act and which contains metes and bounds shall be acceptable for compliance with these provisions. This assignment of uniform parcel identifiers shall take place within one day of the presentation of the request for such assignment when accompanied by the survey or such subdivision plan. No metes and bounds description by survey or subdivision plan shall be required for any transfer, mortgage, release or other purpose involving a right-of-way, surface or subsurface easement, oil, gas or mineral lease or other interest, or any subsurface estate. § 5.  Recording procedures (a)  Generally.—The provisions of this section shall govern all recordings of county tax maps pursuant to a resolution adopted under section 3.3 (b)  Initial recording.—Immediately upon the adoption of an ordinance under section 3, or at such later time provided in the ordinance, the appropriate agency designated to have custody of the county tax maps shall provide for their permanency. (c)   Filing in stages by municipality.—The initial filing of county tax maps shall be accomplished by filing successively all the county tax maps relating to a municipality at one time. It is intended at the initial filing that no county tax map for a municipality be placed on record until all the county tax maps relating to a municipality are so recorded. (d)   Additions, revisions and changes to county tax maps.—Changes in municipal or county boundaries, resulting from annexation or otherwise, subdivisions, resubdivisions and additions shall be indicated on the county tax maps otherwise provided by law, and such revised or new county tax maps or that part thereof which is revised or new shall be filed within ten days of their revision or addition, or, in lieu thereof, the revised or new subdivision plan with the uniform parcel identifiers affixed shall be recorded.

Table of Contents

PART II

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§ 6

UNIFORM PARCEL IDENTIFIER LAW

(e)  Filing certified copies of county tax maps.—A copy of any county tax map certified by any official having custody thereof may be placed in the depository in lieu of an original map. (f)   Maintenance of tax maps.—County tax maps may be maintained in the depository in a microfilmed, bound or otherwise permanent form for reference as provided in the ordinance adopted under section 3. § 6.  Fees Officials providing services in accordance with an ordinance enacted under section 34 shall receive their customary fees if otherwise provided by law. § 7.  Home rule charter and optional plan counties A county exercising self-government under a home rule charter or optional plan that adopts an ordinance under section 35 shall be subject to the provisions of this act in the same manner as any other county so electing.

4. 21 P.S. § 333. 5. 21 P.S. § 333.

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Table of Contents

CHAPTER 22

Part I Ch. 1–14 Brokers

UNIFORM ACKNOWLEDGMENT ACT 21 P.S. § 291.1 to 21 P.S. § 291.13

Sec.

1 Acknowledgment of instruments 2. Acknowledgment within the State 3. Acknowledgment within the United States 4. Acknowledgment without the United States 5. Requisites of acknowledgment 6. Acknowledgment by a married woman 7. Forms of certificates 8. Execution of certificate 9. Authentication of acknowledgments 10. Acknowledgments under laws of other states 10a. Acknowledgment by persons serving in or with the armed forces of the United States or their dependents within or without the United States § 11. Acknowledgments not affected by this Act § 12. Uniformity of interpretation § 13. Name of Act

Part II Ch. 15–22 Deeds

§ § § § § § § § § § §

Part III Ch. 23–35 Mortgages Part IV Ch. 36–40 Insurance

§ 1.  Acknowledgment of instruments

§ 2.  Acknowledgment within the State The acknowledgment of any instrument may be made in this State before— (1)   A judge of a court of record;

(3)   A recorder of deeds or deputy recorder of deeds; (4)   A notary public; § 3.  Acknowledgment within the United States The acknowledgment of any instrument may be made without the State, but within the United States, or a territory or insular possession of the United States, or the District of Columbia, and within the jurisdiction of the officer before— (2)  A clerk, prothonotary or deputy prothonotary or deputy clerk of any court of record of any state or other jurisdiction; (3)   A notary public; § 4.  Acknowledgment without the United States The acknowledgment of any instrument may be made without the United States before— (1)   An ambassador, minister, charge d’affaires, counselor to or secretary of a legation, consul general, consul, vice-consul, commercial attache or consular

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Index

157

Part IX Ch. 68–72 Condos, etc.

(4)   A recorder of deeds.

Part VIII Ch. 64–67 L/T

(1)   A clerk or deputy clerk of any federal court;

Part VII Ch. 57–63 Litigation

(5)   A justice of the peace, magistrate or alderman.

Part VI Ch. 49–56 Taxation

(2)   A clerk, prothonotary or deputy prothonotary or deputy clerk of a court having a seal;

Part V Ch. 41–48A Zoning, etc.

Any instrument may be acknowledged in the manner and form now provided by the laws of this State or as provided by this act.

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§ 5

UNIFORM ACKNOWLEDGMENT ACT

agent of the United States accredited to the country where the acknowledgment is made; (2)   A notary public of the country where the acknowledgment is made; (3)   A judge or clerk of a court of record of the country where the acknowledgment is made. § 5.  Requisites of acknowledgment The officer taking the acknowledgment shall know or have satisfactory evidence that the person making the acknowledgment is the person described in and who executed the instrument. § 6.  Acknowledgment by a married woman An acknowledgment of a married woman may be made in the same form as though she were unmarried. § 7.  Forms of certificates An officer taking the acknowledgment shall endorse thereon or attach thereto a certificate substantially in one of the following forms: (1)  By individuals— State of ________________________ County of ______________________ On this, the ____ day of ____________, 19____, before me __________, the undersigned officer, personally appeared __________, known to me (or satisfactorily proven) to be the person whose name ____________ subscribed to the within instrument, and acknowledged that ____________ he ____________ executed the same for the purposes therein contained. In witness whereof, I hereunto set my hand and official seal. ________________________ ________________________ Title of Officer (2)   By a corporation— State of ________________________ County of ______________________ On this, the ______________ day of ____________, 19____, before me __________, the undersigned officer, personally appeared __________, who acknowledged himself to be the ____________ of ____________, a corporation, and that he as such ____________, being authorized to do so, executed the foregoing instrument for the purposes therein contained by signing the name of the corporation by himself as ____________. In witness whereof, I hereunto set my hand and official seal. ________________________ ________________________ Title of Officer Any deed, conveyance, mortgage or other instrument in writing, made and executed by a corporation, may be acknowledged by any officer of said corporation whose signature appears on such deed, conveyance, mortgage or other instrument in writing, in execution or in attestation of the execution thereof. (3)   By an attorney in fact— State of ________________________ County of ______________________

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DEEDS

Ch. 22

Part V Ch. 41–48A Zoning, etc. Part VI Ch. 49–56 Taxation Part VII Ch. 57–63 Litigation Part VIII Ch. 64–67 L/T Part IX Ch. 68–72 Condos, etc. Index

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Part IV Ch. 36–40 Insurance

159

Part III Ch. 23–35 Mortgages

§ 9.  Authentication of acknowledgments (1)   If the acknowledgment is taken within this State, or if taken without this State by an officer of this State, or is made without the United States by an officer of the United States, no authentication shall be necessary. (2)   If the acknowledgment is taken without this State, but in the United States, a territory or insular possession of the United States or the District of

Part II Ch. 15–22 Deeds

§ 8.  Execution of certificate The certificate of the acknowledging officer shall be completed by his signature, his official seal, if he has one, the title of his office, and, if he is a notary public, the date his commission expires. The existence or absence of an embossed impression on documents left for recording in the office of the recorder of deeds may be disregarded by the recorder.

Part I Ch. 1–14 Brokers

On this, the ____ day of ____________, 19____, before me __________, the undersigned officer, personally appeared __________, known to me (or satisfactorily proven) to be the person whose name is subscribed as attorney in fact for ____________, and acknowledged that he executed the same as the act of his principal for the purposes therein contained. In witness whereof, I hereunto set my hand and official seal. ________________________ ________________________ Title of Officer (4)   By any public officer or deputy thereof or by any trustee, administrator, guardian or executor— State of ________________________ County of ______________________ On this, the ____ day of ____________, 19____, before me __________, the undersigned officer, personally appeared ____________ of the State (County or City as the case may be) of ____________ known to me (or satisfactorily proven) to be the person described in the foregoing instrument, and acknowledged that he executed the same in the capacity therein stated and for the purposes therein contained. In witness whereof, I hereunto set my hand and official seal. ________________________ ________________________ Title of Officer (5)   By an attorney at law— State of ________________________ County of ______________________ On this, the ______ day of __________, 19___, before me ______________________, the undersigned officer, personally appeared ________________________, known to me (or satisfactorily proven) to be a member of the bar of the highest court of said state and a subscribing witness to the within instrument, and certified that he was personally present when __________ whose name _______________________ subscribed to the within instrument executed the same, and that said person __ ______________________________________________ acknowledged that ______ he ______ executed the same for the purposes therein contained. In witness whereof, I hereunto set my hand and official seal. ________________________ ________________________ Title of Officer

Table of Contents

PART II

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§ 10

UNIFORM ACKNOWLEDGMENT ACT

Columbia, no authentication shall be necessary if the official before whom the acknowledgment is taken affixes his official seal to the instrument so acknowledged otherwise the certificate shall be authenticated by a certificate as to the official character of such officer, executed, (1) if the acknowledgment is taken by a clerk or deputy clerk of a court, by the presiding judge of the court, or, (2) if the acknowledgment is taken by some other authorized officer, by the official having custody of the official record of the election, appointment or commission of the officer taking such acknowledgment. (3)  If the acknowledgment is made without the United States and by a notary public or a judge or clerk of a court of record of the country where the acknowledgment is made, the certificate shall be authenticated by a certificate under the great seal of state of the country, affixed by the custodian of such seal, or by a certificate of a diplomatic, consular or commercial officer of the United States accredited to that country, certifying as to the official character of such officer. § 10.  Acknowledgments under laws of other states Acknowledgments under laws of other states. Notwithstanding any provision of this act contained, the acknowledgment of any instrument without this State in compliance with the manner and form prescribed by the laws of the place of its execution, if in a state, a territory or insular possession of the United States, or in the District of Columbia, verified by the official seal of the officer before whom it is acknowledged or authenticated, in the manner provided by section 9, subsection (2) hereof, shall have the same effect as an acknowledgment in the manner and form prescribed by the laws of this State for instruments executed within the State. § 10a.  Acknowledgment by persons serving in or with the armed forces of the United States or their dependents within or without the United States In addition to the acknowledgment of instruments in the manner and form and as otherwise now or hereafter authorized by the laws of this State or by this act, persons serving in or with the armed forces of the United States or their dependents, wherever located, may acknowledge the same before any commissioned officer in active service of the armed forces of the United States with the rank of Second Lieutenant or higher in the Army, Air Force, or Marine Corps, or Ensign or higher in the Navy or Coast Guard. The instrument shall not be rendered invalid by the failure to state therein the place of execution or acknowledgment. No authentication of the officer’s certificate of acknowledgment shall be required but the officer taking the acknowledgment shall endorse thereon or attach thereto a certificate substantially in the following form: “On this the _____ day of __________ 20___, before me _____________________, the undersigned officer, personally appeared _______________________________, (Serial No.) __________. (if any) known to me (or satisfactorily proven) to be (serving in or with the armed forces of the United States) (a dependent of ____________ (Serial No.) __________ (if any) a person serving in or with the armed forces of the United States) and to be the person whose name is subscribed to the within instrument and acknowledged that __________ he __________ executed the same for the purposes therein contained. And the undersigned does further certify that he is at the date of this certificate a commissioned officer of the rank stated below and is in the active service of the armed forces of the United States. ________________________________________________________________________ Signature of the Officer ________________________________________________________________________ Rank and Serial No. of Officer and Command to which attached”.

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DEEDS

Ch. 22

Part I Ch. 1–14 Brokers Part II Ch. 15–22 Deeds

§ 11.  Acknowledgments not affected by this Act No acknowledgment heretofore taken shall be affected by anything contained herein. § 12.  Uniformity of interpretation This act shall be so interpreted as to make uniform the laws of those States which enact it. § 13.  Name of Act This act may be cited as the Uniform Acknowledgment Act.

Table of Contents

PART II

Part III Ch. 23–35 Mortgages Part IV Ch. 36–40 Insurance Part V Ch. 41–48A Zoning, etc. Part VI Ch. 49–56 Taxation Part VII Ch. 57–63 Litigation Part VIII Ch. 64–67 L/T Part IX Ch. 68–72 Condos, etc.

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Index

161

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Table of Contents

PART III

Part IV Ch. 36–40 Insurance

CHAPTER 23 LAW OF MORTGAGES GENERALLY 21 P.S. § 621 to 21 P.S. § 951

Part IX Ch. 68–72 Condos, etc. Index

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Part VIII Ch. 64–67 L/T

163

Part VII Ch. 57–63 Litigation

621. Mortgages to be recorded within six months 622. Priority according to date of recording 623. Repealed 623-1. Assignments to be in writing 623-2. Residence of assignee 623-3. Duty of recorder 623-4. Fee 624. Assignments to be entered on margin of record of mortgage 625. Certificate of residence of mortgagee or assignee 626. Repealed 627. Validation of mortgages made between January 1, 1776, and June 18, 1778 628. Saving the rights of intermediate purchasers and encumbrancers 629. Stipulation of general mortgage provisions 630. Short form mortgages 631. Operation and effect of short form mortgage 632. Recording of stipulations of general mortgage provisions 633. Recording of short form mortgages 651. Repealed 652. Prior lien of taxes 653. Entry of judgment not to affect lien of mortgage 654. Agreement postponing lien of mortgage 655. Grantee not to be liable for encumbrances 656. Extent of personal liability 731. Holders of mortgages may be required to assign the same in certain cases 732. Assignment may be enforced by court 733. Assignment on tender of money due 734. Failure or refusal to assign; court to enforce 735. Compulsory assignment to mortgagor tendering payment after sale of land 736. Petition if mortgagee refuses to assign; mortgagor discharged from liability on bond § 737. Copy of decree recorded; mortgagee’s lien confined to mortgaged premises § 738. Prothonotary to note decree on judgment index; record and notation on margin of mortgage § 761. Mortgagee may release part of mortgaged premises and proceed against remainder

Part VI Ch. 49–56 Taxation

§ § § § § § § § § § § § § § § § § § § § § § § § § § § § §

Part V Ch. 41–48A Zoning, etc.

Sec.

Part III Ch. 23–35 Mortgages

Chapter Chapter Chapter Chapter

23.  Law of Mortgages Generally 24.  Loan Interest and Protection Law: “Act 6” 24A.  Vacant and Abandoned Real Estate Foreclosure Act 25.  Consumer Credit Cost Disclosure 26.  Housing Finance Agency Law 27.  Mortgage Loan Industry Licensing and Consumer Protection 28. Mortgage Bankers and Brokers and Consumer Equity Protection Act 29.  Mortgage Satisfaction 30.  Residential Real Estate Transactions 31. Mortgage Bankers and Brokers and Consumer Equity Protection— Continuing Education 32.  Real Estate Appraisers Certification Act 33.  Priority of Liens 34.  Mechanics’ Lien Law of 1963 35.  Contractor and Subcontractor Payment Act

Part II Ch. 15–22 Deeds

Chapter Chapter Chapter Chapter Chapter Chapter Chapter Chapter Chapter Chapter

Part I Ch. 1–14 Brokers

MORTGAGES AND OTHER LIENS

12/22/21 10:45 AM

§ 621 § § § § §

LAW OF MORTGAGES GENERALLY

762. Receipts for instalments entered on record; penalty for neglect 763. Credits entered on margin of record every three years 764. Penalty for neglect to enter credits 805. Recorders; release of mortgage noted on record; exception 951. Defeasances; requisites

§ 621.  Mortgages to be recorded within six months No deed or mortgage, or defeasible deed, in the nature of mortgages, hereafter to be made, shall be good or sufficient to convey or pass any freehold or inheritance, or to grant any estate therein for life or years, unless such deed be acknowledged or proved and recorded within six months after the date thereof, where such lands lie, as hereinbefore directed for other deeds. § 622.  Priority according to date of recording From and after the passage of this act, all mortgages, or defeasible deeds in the nature of mortgages, made or to be made or executed for any lands, tenements, or hereditaments within this Commonwealth, shall have priority according to the date of recording the same, without regard to the time of making or executing such deeds; and it shall be the duty of the recorder to endorse the time upon the mortgages or defeasible deeds, when left for record, and to number the same according to the time they are left for record, and, if two or more are left upon the same day, they shall have priority according to the time they are left at the office for record. No mortgage, or defeasible deed in the nature of a mortgage, shall be a lien, until such mortgage or defeasible deed shall have been recorded, or left for record, as aforesaid. Any mortgage, given by purchase to seller, for any part of the purchase money of the land so mortgaged, shall have a lien from the time of delivery of said mortgage, provided the same be recorded within thirty days from the date of the mortgage. § 623.  Repealed. 1998, Jan. 29, P.L. 45, No. 12, § 1, imd. effective § 623-1.  Assignments to be in writing Hereafter no assignment of any mortgage shall be entered of record in any county of the second class, unless such assignment shall be in writing, and acknowledged by the assignor or assignors before an officer or person duly authorized to take such acknowledgments. § 623-2.  Residence of assignee Every such instrument in writing shall certify the precise residence of the assignee or assignees named therein. § 623-3.  Duty of recorder It shall be the duty of the recorder of deeds, when such instrument is filed for recording, to index and transcribe the same, and note the recording of such assignment on the margin of the record of the original mortgage. § 623-4.  Fee The fee for recording any such assignment shall be governed by the fee bill in effect in the county in which such assignment is recorded. § 624.  Assignments to be entered on margin of record of mortgage From and after the passage of this act, it shall be the duty of the recorders of deeds, of the several counties of this commonwealth, to enter upon the margin of the record of any mortgages, the book and page wherein any assignment or

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MORTGAGES

Ch. 23

Part II Ch. 15–22 Deeds Part III Ch. 23–35 Mortgages Part IV Ch. 36–40 Insurance

§ 625.  Certificate of residence of mortgagee or assignee For the purpose of obtaining with accuracy the precise residence of all mortgagees, assignees, and persons to whom interest is payable on articles of agreement, it shall be the duty of the recorder of deeds in each county, whenever a mortgage, assignment, or agreement given to secure the payment of money, shall be presented to him for record, to refuse the same, unless the said mortgage, assignment, or agreement has attached thereto, and made part of said mortgage, assignment, or agreement, a certificate signed by said mortgagee, assignee, or person entitled to interest, or his, her or their duly authorized attorney or agent, setting forth the precise residence of such mortgagee, assignee, or person entitled to interest; said certificate to be recorded with said mortgage, assignment, or agreement; and therefrom the said recorder shall prepare and deliver, at stated intervals, to the proper Board of Revision of Taxes, or other officials charged with the assessment of State tax, a list of said mortgages, assignments, and agreements, with the names and residences of said mortgagees, assignees, or persons entitled to interest, with the amount and date of said mortgages, assignments, and articles of agreement, with the date of recording and the properties upon which the debts are secured.

Part I Ch. 1–14 Brokers

assignments of the same are recorded, together with the date of such assignment, for which service the recorders aforesaid shall charge and be entitled to receive such fee as is provided by law unless the recorder of deeds microfilms the mortgages in which case the assignment shall be recorded without a marginal notation.

Table of Contents

PART III

§ 626.  Repealed. 1992, Dec. 18, P.L. 133, No. 169, § 5, effective in 60 days Part V Ch. 41–48A Zoning, etc.

§ 628.  Saving the rights of intermediate purchasers and encumbrancers Nothing in this act contained shall extend to, or be deemed or construed to operate against, any subsequent judgment, statute, recognizance, attainder, forfeiture or lien, whatsoever, or against any subsequent bona fide mortgagee or mortgagees, purchaser or purchasers, of any estate, lands, tenements or hereditaments, mentioned or contained in any such prior deed or mortgage, or defeasible deed in nature of a mortgage, who shall have taken such subsequent mortgage, or made such subsequent purchase, before such prior mortgage, or defeasible deed in nature of a mortgage, was or shall be acknowledged or proved and recorded, agreeable to the directions of this act.

Part VII Ch. 57–63 Litigation Index

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Part IX Ch. 68–72 Condos, etc.

165

Part VIII Ch. 64–67 L/T

§ 629.  Stipulation of general mortgage provisions Any party contemplating the recording, as mortgagee in the same county, of more than one real estate mortgage subject to the same general provisions, covenants, conditions and obligations, may record an unacknowledged instrument which shall be called a stipulation of general mortgage provisions, and shall be in the following form:

Part VI Ch. 49–56 Taxation

§ 627.  Validation of mortgages made between January 1, 1776, and June 18, 1778 All mortgages and defeasible deeds in nature of mortgages, of any lands, tenements or hereditaments, within this commonwealth, made and executed at any time or times between the said January 1, 1776, and the said June 18, 1778, which hath or have, at any time or times since the date or dates thereof, been acknowledged or proved, and recorded, or which shall, within six months from and after the passing of this act, be acknowledged or proved, and recorded, in the manner directed in and by the said recited act, shall be as good and effectual in law, to all intents and purposes (except as hereinafter is provided), as if the same had been acknowledged or proved and recorded within the time limited in and by the said recited act.

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§ 630

LAW OF MORTGAGES GENERALLY

Stipulation of General Mortgage Provisions. The following general provisions, covenants, conditions and obligations shall be an integral part of any mortgage hereafter recorded in _______________ County, Pennsylvania, in favor of the undersigned, when such subsequently recorded mortgage expressly provides for the incorporation of the following general provisions, covenants, conditions and obligations as an integral part thereof by reference to this recorded stipulation. (Here insert the general provisions, covenants, conditions and obligations intended to be incorporated by reference in future mortgages.) In witness whereof this stipulation is executed this _____ day of __________, 20___ ____________________ § 630.  Short form mortgages When a stipulation of general mortgage provisions has been recorded in any county, the party filing the same may thereafter record in that county, as evidence of its mortgage loans, instruments to be known as short form mortgages. A short form mortgage shall set forth the date on which it is executed, the names of the parties thereto, the amount of the indebtedness secured or to be secured thereby, the description of the real property mortgaged as security for the indebtedness, and a statement incorporating by reference the general provisions, covenants, conditions and obligations recited in the lender’s recorded stipulation of general mortgage provisions and citing the volume and page of the mortgage book in which such stipulation is recorded. A short form mortgage shall contain a defeasance clause and any special provisions, covenants, conditions or obligations of the parties, and shall be signed and acknowledged by the mortgagor in the same manner as any other real estate mortgage. Following the acknowledgment, and under the caption “General Provisions Incorporated by Reference and Not to be Recorded Herewith,” there shall be inserted an exact copy of the general provisions, covenants, conditions and obligations set forth in the recorded stipulation of general mortgage provisions which are incorporated in the short form mortgage by reference. § 631.  Operation and effect of short form mortgage A short form mortgage shall be a lien against the real property described therein as of the date and time it is recorded, except that if the mortgage is a purchase money mortgage under the definition set forth in the act of June 28, 1951 (P.L. 927), known as the “Lien Priority Law,”1 it shall be a lien from the time it is delivered to the mortgagee if it is recorded within ten days after its date. When a short form mortgage incorporating by reference the provisions of a stipulation of general mortgage provisions is recorded, it shall have the same effect as any other mortgage instrument and the two recorded instruments together shall be construed to constitute one mortgage. The recording of a short form mortgage which incorporates by reference the provisions, covenants, conditions and obligations, set forth in a recorded stipulation of general mortgage provisions, shall operate as constructive notice of the whole thereof, the same as if the provisions incorporated by reference were set forth in full in the short form mortgage. § 632.  Recording of stipulations of general mortgage provisions The recorders of deeds or other officials in charge of recording mortgages in the several counties are hereby authorized and directed to receive and record 1. 42 Pa.C.S. § 8141 et seq.

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Ch. 23

Part III Ch. 23–35 Mortgages

§ 651.  Repealed. 1978, April 28, P.L. 202, No. 53, § 2(a)[1104], effective June 27, 1978

Part II Ch. 15–22 Deeds

§ 633.  Recording of short form mortgages The recorders of deeds or other officials in charge of recording mortgages in the several counties are hereby authorized and directed to receive and record properly acknowledged short form mortgages which incorporate by reference the provisions of a previously recorded stipulation of general mortgage provisions. The copy of the provisions incorporated by reference which is set forth in a short form mortgage under the caption “General Provisions Incorporated By Reference and Not to be Recorded Herewith” shall not be transcribed into the records, but in all other respects a short form mortgage shall be entered of record and indexed in same manner as other real estate mortgages are recorded and indexed.

Part I Ch. 1–14 Brokers

unacknowledged stipulations of general mortgage provisions in the form set forth in section one of this act.2 Such stipulations of general mortgage provisions shall be entered of record in the same manner as real estate mortgages, and shall be indexed in the mortgagee index with a notation that the indexed instrument is a stipulation of general mortgage provisions.

Table of Contents

PART III

§ 652.  Prior lien of taxes No lien created by virtue of the act of assembly, passed February 3, 1824,3 entitled “An act relating to taxes on certain real estate in the city and county of Philadelphia,” shall be construed to be within the meaning of the act of assembly of April 6, 1830,4 entitled “a supplement to an act entitled ‘An act for taking lands in execution for the payment of debts,’” passed in 1705.

Part IV Ch. 36–40 Insurance

§ 653.  Entry of judgment not to affect lien of mortgage The entering of any judgment for the same debt, secured by any mortgage, shall not cause a sheriff’s sale of the mortgaged premises, to destroy, or in any way affect the lien of such mortgage, nor shall the plaintiff, in such judgment, be entitled to any part of the proceeds of such sale: Provided always, That such sale has not been made under or by virtue of such judgment.

Part V Ch. 41–48A Zoning, etc. Part IX Ch. 68–72 Condos, etc. Index

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Part VIII Ch. 64–67 L/T

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Part VII Ch. 57–63 Litigation

2. 21 P.S. § 629. 3. Act of 1824, Feb. 3, P.L. 18, § 1; repealed by Act of 1901, June 4, P.L. 364, § 42. 4. Act of 1830, April 6, P.L. 293; supplemented by Act of 1845, April 16, P.L. 488, §§ 1 to 4; repealed by Act of 1901, June 4, P.L. 364, § 42.

Part VI Ch. 49–56 Taxation

§ 654.  Agreement postponing lien of mortgage In every case where a mortgage has been or shall hereafter be made and recorded in the proper office in the county in which the land mortgaged is situated, it shall be lawful for the mortgagee or mortgagees, his or their heirs, executors, administrators, or assigns, and, in the case of a corporate mortgagee, its successors and assigns, to postpone the lien of such mortgage or mortgages on the mortgaged premises, and the bond or bonds accompanying the same, to the lien of a subsequent mortgage or mortgages, and the bond or bonds accompanying the same, on the same mortgaged premises, (a) by entering a postponement upon the margin of the record of such mortgage, which postponement shall state the date and place of record of, and the names of the parties to, the subsequent mortgage or mortgages to which mortgage or mortgages the said entry of postponement is intended to subordinate the lien of the mortgage or mortgages to be postponed, which postponement shall be signed by the person or persons who are then the owner or owners of the said mortgage or mortgages so postponed, and which postponement, when attested by the recorder of deeds, shall be a part of the record of said mortgage, and shall be notice to all persons of the facts therein contained; or (b) by a stipulation contained in the body of the mortgage postponing the lien

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§ 655

LAW OF MORTGAGES GENERALLY

thereof to the lien of another mortgage or mortgages about to be recorded; or (c) by an agreement in writing with the mortgagor and with the subsequent mortgagee or mortgagees and any other person interested as owners of the mortgaged premises or as holders of liens thereon, duly acknowledged before a proper officer authorized by the State of Pennsylvania to take acknowledgments; which said agreement for the postponement of lien of mortgage and bond accompanying the same shall be recorded in the office of the recorder of deeds in the county where the mortgaged premises lie, and, if the said mortgaged premises lie in more than one county, then in the recorder of deed’s office in all the counties in which said mortgaged premises lie; the recording of which shall be notice to all persons of the facts therein contained, when and only when a memorandum of the said agreement shall be noted by the said recorder of deeds upon the margin of the record of the mortgage or mortgages to be postponed, giving the book and page wherein any such postponement agreement is recorded, together with the date of such recording. For each such notation entered upon the margin of the record of a mortgage, the recorder of deeds shall be entitled to charge and receive a fee as prescribed by law for satisfactions of mortgages. All postponements heretofore made in conformity with the provisions of this section and this amendment are hereby validated. If the recorder of deeds microfilms mortgages, all postponements shall be by either stipulation, agreement or other document which shall be recorded without a marginal notation. § 655.  Grantee not to be liable for encumbrances A grantee of real estate which is subject to ground rent or bound by mortgage or other encumbrance, shall not be personally liable for the payment of such ground rent, mortgage or other encumbrance, unless he shall, by an agreement in writing, have expressly assumed a personal liability therefor, or there shall be express words in the deed of conveyance stating that the grant is made on condition of the grantee assuming such personal liability: Provided, That the use of the words “under and subject to the payment of such ground rent, mortgage or other encumbrance,” shall not alone be so construed as to make such grantee personally liable as aforesaid. § 656.  Extent of personal liability The right to enforce such personal liability shall not enure to any person other than the person with whom such an agreement is made, nor shall such personal liability continue after the said grantee has bona fide parted with the encumbered property, unless he shall have expressly assumed such continuing liability. § 731.   Holders of mortgages may be required to assign the same in certain cases It shall and may be lawful for any person or persons, natural or artificial, holding lands encumbered by mortgage, judgment, recognizance or other security, so encumbered by any previous owner or owners, after such money shall have become due and payable, his or their agent or attorney, to tender to the holder of any such mortgage, judgment, recognizance or other security, such sum of money as shall or may be due by virtue thereof, to such holder or holders, including interest and costs, and to require the said holder or holders to assign and transfer, to such person or persons as the owner or owners of such incumbered premises may name, such mortgage, judgment, recognizance or other security, in the following cases: I. Where lands and tenements, or any interest in possession, belong to a minor or minors, and it shall be made to appear to the court that it would be to the interest of such minor or minors, that the mortgage, judgment, recognizance or other security, should be assigned to the appointee of the guardian of such minor or minors.

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Ch. 23

Part III Ch. 23–35 Mortgages Part IV Ch. 36–40 Insurance Part V Ch. 41–48A Zoning, etc. Part VI Ch. 49–56 Taxation Part VII Ch. 57–63 Litigation Part VIII Ch. 64–67 L/T Part IX Ch. 68–72 Condos, etc. Index

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Part II Ch. 15–22 Deeds

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II. Where lands and tenements are held by will, or otherwise, for life, with remainder over. III. Where lands and tenements are held in trust, under the provisions of any last will and testament, or any deed of trust. IV. Where lands have descended under the intestate law. § 732.  Assignment may be enforced by court In case the holder of any such mortgage, judgment, recognizance or other security, shall fail or neglect, on such tender being made, to execute an assignment or transfer as required, it shall and may be lawful for a court of common pleas of the county, in which said mortgage, judgment or recognizance shall be entered of record, or of the county in which said holder shall reside, when such court shall be sitting in equity, to enforce by decree and attachment such assignments and transfer as aforesaid, and for the said court to order that the interest, due on such mortgage, judgment or recognizance, or other securities, shall cease from the day of such tender until the assignment or transfer so required shall be executed and delivered, and also to make such other and further decree in relation to the subject matter, including cost, as justice and equity may seem to require: Provided, That it shall be first made to appear to the court that all parties in interest in the lands so encumbered have joined in the application for the assignment of such mortgage, judgment, recognizance or other security. § 733.  Assignment on tender of money due It shall be lawful for any person or persons, natural or artificial, holding lands encumbered by a mortgage, judgment, recognizance, or other security, after the same shall become due and payable, his or their agent, attorney, or terre tenant, to tender to the owner or owners of such mortgage, judgment, recognizance, or other security, the full sum of money due thereon, including interest and any other charges due, and, upon such tender, to require the owner or owners to assign and transfer to such person or persons as the owner of the encumbered property may name, such mortgage, judgment, recognizance, or other security. Such assignment shall create no personal liability on the part of the assignor, by way of implied warranty, or otherwise, and any such assignment shall be without recourse. § 734.  Failure or refusal to assign; court to enforce In case the holder of any such mortgage, judgment, recognizance, or other security, shall fail or refuse, on such tender being made, to execute an assignment or transfer as required, it shall be the duty of the court of common pleas of the county in which said mortgage, judgment, recognizance, or security is entered, or of the county in which the holder thereof resides, such court sitting in equity, to enforce, by decree and attachment, such assignment and transfer, and to order that the interest due on such mortgage, judgment, or recognizance, or other security shall cease from the day of such tender until the assignment shall be executed and delivered. The court shall also make such further decree as to costs as justice and equity may require. No such decree shall be entered unless it shall appear to the court that all parties holding any interest in the lands so encumbered have joined in the application for the assignment of such mortgage, judgment, recognizance, or security. § 735.  Compulsory assignment to mortgagor tendering payment after sale of land Any owner of real estate who shall have given his bond or other obligation, secured by mortgage upon his real estate or any part thereof, and who shall afterwards have granted and conveyed the mortgaged premises to another, subject to the said mortgage, whether mentioned in the said conveyance or not, or leaving the said bond or other obligation and mortgage outstanding, shall have the right at any time after the maturity of the said bond or other obligation

Table of Contents

PART III

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§ 736

LAW OF MORTGAGES GENERALLY

and mortgage, according to the terms and conditions thereof, to tender to the mortgagee or other owner or holder, at that time, of the said bond or other obligation and mortgage, and make payment of the mortgage debt and interest to date of tender, including cost if any; and, if entitled in equity to be subrogated to the rights of the holder of the bond and mortgage against the vendees or their heirs or assigns, owners of the lands, thereupon to demand and require the said mortgagee, or other owner or holder thereof, to assign and transfer the said bond or other obligation and mortgage to him, the mortgagor, or his nominee, at the proper cost and expense of the said mortgagor; and if the said mortgagee, or other owner or holder of the said bond or other obligation and mortgage, shall fail or neglect to so assign and transfer the said bond or other obligation and mortgage, upon such tender of payment to him or them, together with any judgment or judgments entered thereon, the interest on the mortgage debt shall cease to run on the said indebtedness, as against the mortgagor, from the date of such tender, and he shall not be liable for any costs, charges, commissions or expense accruing after the date of such tender. § 736.  Petition if mortgagee refuses to assign; mortgagor discharged from liability on bond If the mortgagee, or other owner or holder at that time of such bond or other obligation and mortgage, shall refuse to accept payment when so tendered, and assign, as aforesaid, the mortgagor shall have the right to apply by petition to the court of common pleas of the county in which the mortgaged premises are situate, setting forth the fact, and praying for an order, which the said court is hereby authorized to make, upon notice to the parties interested, after hearing, upon the mortgagee, or other owner or holder of the said bond or other obligation and mortgage, and judgments entered thereon, if any, to the mortgagor or his nominee, on the payment of the debt, interest and costs to the date of such tender, if any: Provided, however, and be it further enacted, if the said mortgagee, or other owner or holder of the said bond or other obligation and mortgage, shall neglect or refuse to comply with and obey the order of court, so made, the mortgagor shall, upon proof of such refusal, thereupon by further order of court be released and forever discharged from any further personal liability upon the bond, or other obligation accompanying the said mortgage, to the mortgagee or other owner or holder thereof, their heirs, executors, administrators or assigns; and that any judgment then or thereafter entered upon the said bond or other obli­gation, or upon the said mortgage, shall, by virtue of such order, be confined and restricted in its lien, effect and operation solely and exclusively to the mortgaged premises. § 737.  Copy of decree recorded; mortgagee’s lien confined to mortgaged premises In order to give further notice and effect to such orders or decrees, the mortgagor shall also have the right, at any time after the entry of such orders or decrees, by leave first had and obtained of the court in which such judgment shall have been entered, obtained or recovered, to enter and file of record a certified copy of such orders or decrees in such suit or judgment; and the said court, in which the said judgment shall have been entered, shall thereupon make an order or decree in the said proceeding confirming the said orders or decrees, so made as aforesaid, limiting and confining the lien, effect and operation of such judgment to the mortgaged premises alone, and declaring the defendant to be released and forever discharged of and from any and all further personal liability to the mortgagee, or other owner or holder thereof, their heirs, executors, administrators or assigns, for the payment of the said indebtedness; and all process of whatsoever kind or nature, upon the said judgment, shall, after the entry of such order or decree, be limited and confined in the lien, effect and operation to the mortgaged premises.

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Part I Ch. 1–14 Brokers Part II Ch. 15–22 Deeds Part III Ch. 23–35 Mortgages Part IV Ch. 36–40 Insurance Part V Ch. 41–48A Zoning, etc. Part VI Ch. 49–56 Taxation Part VII Ch. 57–63 Litigation Part VIII Ch. 64–67 L/T Part IX Ch. 68–72 Condos, etc.

§ 738.  Prothonotary to note decree on judgment index; record and notation on margin of mortgage The prothonotary of the court of common pleas in which the said judgment shall have been or shall be entered, shall make a note of the entry of such order or decree on the margin of the judgment index, opposite the name of the defendant, and shall also, at the request of any party of interest, certify the said order or decree to the recorder of deeds of the proper county, who shall record the same in his office and note the same on the margin of the said mortgage. § 761.  Mortgagee may release part of mortgaged premises and proceed against remainder In every case where a mortgage has been, or shall hereafter be executed, it shall be lawful for the mortgagee or mortgagees, his, her or their respective heirs, executors, administrators or assigns, to release any part or parts of the mortgaged premises to the mortgagor or mortgagors, his, her or their respective heirs, executors, administrators or assigns, or to any person or persons claiming the same, by, from or under him, her or them, or any of them, and thereafter to sue forth a writ or writs of scire facias to recover the debt or demand mentioned in such mortgage, or so much thereof as shall remain or become due, out of the remaining part or parts of such mortgaged premises, and not released as aforesaid, and the remaining part or parts only of such mortgaged premises shall be taken in execution, and the same proceeding shall be had thereon, as are provided by the act to which this is a supplement;5 and the defendant or defendants in such scire facias, in addition to the pleas mentioned in the act to which this is a supplement, may plead that the balance claimed is greater than in a just proportion ought to be levied on the premises described in such writ, and if he, she or they shall thereupon confess judgment for so much as he, she or they shall believe to be the just proportion chargeable upon the premises described in the writ; and if the plaintiff shall proceed for the residue of his claim, but shall not recover any sum beyond the amount of the said judgment, together with the interest thereon accruing, in such case the plaintiff shall pay all the costs of such further proceedings to final judgment; in any other event the defendant or defendants shall pay the same. § 762.  Receipts for instalments entered on record; penalty for neglect In all cases of a mortgage where, by agreement, the mortgage is to be satisfied, paid and discharged, by instalments, the legal holder or holders thereof, or his agent or attorney, on receiving each of such instalments with all interest thereon due, shall receipt for the same upon the record of the mortgage in the proper office as they are severally paid, which receipt or receipts shall be a release and discharge of the said mortgage to the amount thus receipted for, and the mortgage shall not at any time be a lien on the mortgaged premises to any greater amount than the sum of the principal and interest actually remaining due, or becoming due and unpaid, and if any legal holder or holders, or his or their agent and attorney, of any mortgage, shall refuse or neglect, upon request of the mortgagor or mortgagors, or of his, her or their legal representatives, or any person owning the mortgaged premises, or any part thereof, on tender of the cost of office for entering such receipt upon the record of the mortgage, to receipt upon the record of such mortgage the amount of the instalments received, within sixty days after such request made, such holder or holders, or his or their agent or attorney, shall for every such offense, forfeit and pay unto the party or parties aggrieved any sum of money not exceeding the amount of the instalment so neglected or refused to be receipted for, to be recovered, sued for, and demanded, by the mortgagor or mortgagors, or persons damnified, in like manner as other debts are now recoverable by law in this commonwealth.

Table of Contents

PART III

5. Act 1705, 1 Sm.L. 57 (21 P.S. § 791 et seq., repealed).

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Index

171

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§ 763

LAW OF MORTGAGES GENERALLY

§ 763.  Credits entered on margin of record every three years From and after the passage of this act it shall be the duty of the holder or the holders of mortgages, recorded in the proper office, at least once every three years, to cause to be entered on the margin of the record thereof all payments of either principal, debt or interest, or both, theretofore made by, or in behalf of the mortgagor, on being tendered or paid the legal fee for such entry or entries by the mortgagor or any one interested in the property covered by the mortgage, either as owner or as a lien creditor. § 764.  Penalty for neglect to enter credits If the holder or holders of any such mortgage shall neglect or refuse, after written request and tender of the legal fees therefor, for a period of three months, to cause to be entered on the record of any such mortgage any and all such payments of principal or interest, or both, such holder shall be liable to pay to any party interested therein, who shall have made such tender and request, the sum of one hundred dollars for each failure to comply with the provisions of this act; said sum to be recovered in any court of record where a proper service may be had, in an action of debt. § 805.  Recorders; release of mortgage noted on record; exception Hereafter it shall be the duty of the recorders of deeds of the several counties to enter upon the margin of the record of any mortgage the book and page wherein any release of such mortgage, or part thereof, is recorded, together with the date of such release, unless the recorder of deeds microfilms the mortgages in which case the release shall be recorded without a marginal notation. § 951.  Defeasances; requisites No defeasance to any deed for real estate, regular and absolute upon its face, made after the passage of this act, shall have the effect of reducing it to a mortgage, unless the said defeasance is in writing, signed and delivered by the grantee in the deed to the grantor; and, in so far as it may effect any subsequent grantee or mortgagee of such real estate, for value, unless it is also acknowledged and recorded in the office for the recording of deeds and mortgages in the county wherein the said real estate is situated, before the execution and delivery of such subsequent grant or mortgage; and such defeasances shall be recorded and indexed as mortgages by the recorder.

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Table of Contents

CHAPTER 24

Part I Ch. 1–14 Brokers

LOAN INTEREST AND PROTECTION LAW MAXIMUM INTEREST RATES: “ACT 6” 41 P.S. § 101 to 41 P.S. § 605

Sec.

101. Definitions 201. Maximum lawful interest rate 202. Legal rate of interest 301. Residential mortgage interest rates 302. Federally guaranteed loans 303. Commitments to enter into residential mortgages 401. Disclosure requirements 401.1. Photocopies of security documents 402. Discount points prohibited 403. Notice of intention to foreclose 404. Right to cure a default 405. Prepayment penalty prohibited 406. Attorney’s fees payable 407. Confession of judgment 408. Waivers 501. Excessive interest need not be paid 502. Usury and excess charges recoverable 503. Reasonable attorney’s fees recoverable 504. Individual actions permitted 505. Penalties 506. Enforcement 507. Effect on other acts 601. Regulations 602. Construction; title of purchaser 603. Repeals 604. Effect on inconsistent acts 605. Effective date

Part II Ch. 15–22 Deeds Part III Ch. 23–35 Mortgages Part IV Ch. 36–40 Insurance Part V Ch. 41–48A Zoning, etc.

§ § § § § § § § § § § § § § § § § § § § § § § § § § §

Part VI Ch. 49–56 Taxation

Article I § 101.  Definitions “Actual settlement costs” means reasonable sums paid for: (a)  Any insurance premiums which have been approved by the Insurance Commissioner of the Commonwealth. (c)  The preparation and recording of any or all documents required by law or custom for settlement. (d)   Appraisal and/or survey of property securing the loan.

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Index

173

Part IX Ch. 68–72 Condos, etc.

(e)   A single service charge, which shall include any consideration paid by the residential mortgage debtor and received and retained by the residential mortgage lender for or related to the acquisition, making, refinancing or modification of a residential mortgage loan, plus any consideration received by the residential mortgage lender for making a mortgage commitment, whether or not an actual loan follows such commitment.

Part VIII Ch. 64–67 L/T

(b)   Title examination and search, and examination of public records.

Part VII Ch. 57–63 Litigation

As used in this act:

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§ 101

LOAN INTEREST AND PROTECTION LAW: ACT 6

The service charge shall not exceed one per cent of the original bona fide principal amount of the loan, except that in the case of a construction loan, the service charge shall not exceed two per cent of the original bona fide principal amount of the loan. (f)   Charges and fees necessary for or related to the transfer of the property or the closing of the residential mortgage loan, paid by the residential mortgage debtor and received by any party other than the residential mortgage lender, whether or not paid by the residential mortgage debtor directly to the third party or to the residential mortgage lender for payment to the third party. “Base figure” means two hundred seventeen thousand eight hundred seventythree dollars ($217,873), as adjusted annually for inflation by the department through notice published in the Pennsylvania Bulletin. “Department” means the Department of Banking of the Commonwealth. “Discount points” means any charges, whether or not actually denominated as “discount points,” which are paid by the seller of residential real property to a residential mortgage lender which directly or indirectly affects the ability of the buyer of the real estate to secure a residential mortgage. “Finance charge” means the total cost of a loan or charge for the use of money, including any extensions or grant of credit regardless of the characterization of the same and includes any interest, time price differential, points, premiums, finder’s fees, and other charges levied by the residential mortgage lender directly or indirectly against the person obtaining the loan or against the seller, lender, mortgagee or any other party to the transaction except any actual settlement costs. The finance charges plus the actual settlement costs charged by the residential mortgage lender shall include all charges made by the residential mortgage lender to the residential mortgage debtor other than the principal of the loan. In computing finance charge on any mortgage which does not require the full amount of the first year’s interest to be paid during the first year and on a variable interest rate mortgage interest shall be calculated at the rate applicable to the first year of the loan. “Loan yield” means the annual rate of return obtained by a residential mortgage lender from a residential mortgage debtor over the term of the loan and shall be determined in accordance with regulations issued by the Secretary of Banking. Such regulations shall establish the method for calculating such rate of return and shall provide that the finance charge be amortized over the contract term of the loan. In computing loan yield on any mortgage which does not require the full amount of the first year’s interest to be paid during the first year and on a variable interest rate mortgage interest shall be calculated at the rate applicable to the first year of the mortgage. “Monthly Index of Long Term United States Government Bond Yields” means the monthly unweighted average of the daily unweighted average of the closing bid yield quotations in the over the counter market for all outstanding United States Treasury Bond issues, based on available statistics, which are either maturing or callable in ten years or more. This index is expressed in terms of percentage interest per annum. “Mortgage commitment” means a legally binding obligation to lend money on the security of a residential mortgage. “Person” means an individual, corporation, business trust, estate trust, partnership or association or any other legal entity, and shall include but not be limited to residential mortgage lenders. “Residential mortgage” means an obligation to pay a sum of money in an original bona fide principal amount of the base figure or less, evidenced by a

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Ch. 24

“Residential real property” means real property located within this Commonwealth containing not more than two residential units or on which not more than two residential units are to be constructed and includes a residential condominium unit.

Article II

(b)  The maximum lawful rate of interest set forth in this section shall not apply to:

(2)  an unsecured, noncollateralized loan in excess of thirty-five thousand dollars ($35,000); or (3)   business loans of any principal amount. Reference in any law or document enacted or executed heretofore or hereafter to “legal rate of interest” and reference in any document to an obligation to pay a sum of money “with interest” without specification of the applicable rate shall be construed to refer to the rate of interest of six per cent per annum.

§ 301.  Residential mortgage interest rates (a)   The General Assembly hereby finds that it is necessary and appropriate to establish a flexible maximum lawful interest rate for residential mortgages,

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Index

175

Part IX Ch. 68–72 Condos, etc.

Article III

Part VIII Ch. 64–67 L/T

§ 202.  Legal rate of interest

Part VII Ch. 57–63 Litigation

(1)   an obligation to pay a sum of money in an original bona fide principal amount of more than fifty thousand dollars ($50,000);

Part VI Ch. 49–56 Taxation

§ 201.  Maximum lawful interest rate (a)  Except as provided in Article III of this act, the maximum lawful rate of interest for the loan or use of money in an amount of fifty thousand dollars ($50,000) or less in all cases where no express contract shall have been made for a less rate shall be six per cent per annum.

Part V Ch. 41–48A Zoning, etc.

“Security document” means a mortgage, deed of trust, real estate sales contract or other document creating upon recordation a lien upon real estate.

Part IV Ch. 36–40 Insurance

“Residential mortgage lender” means any person who lends money or extends or grants credit and obtains a residential mortgage to assure payment of the debt. The term shall also include the holder at any time of a residential mortgage obligation.

Part III Ch. 23–35 Mortgages

“Residential mortgage intermediary” means a real estate broker, mortgage broker or other person receiving directly or indirectly from a residential mortgage lender a finder’s fee, commission, placement fee, service charge or other similar compensation other than actual settlement costs in conjunction with the issuance of a residential mortgage or mortgage commitment. Residential mortgage intermediary shall not mean an employee of a residential mortgage lender.

Part II Ch. 15–22 Deeds

“Residential mortgage debtor” means a non-corporate borrower who is obligated to a residential mortgage lender to repay in whole or in part a residential mortgage and a successor record owner of the property, if any, who gives notice thereof to the residential mortgage lender.

Part I Ch. 1–14 Brokers

security document and secured by a lien upon real property located within this Commonwealth containing two or fewer residential units or on which two or fewer residential units are to be constructed and shall include such an obligation on a residential condominium unit.

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PART III

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§ 301 LOAN INTEREST AND PROTECTION LAW: ACT 6 as defined in this act, and further finds that the Monthly Index of Long Term United States Government Bond Yields is the appropriate basis on which such a maximum rate of interest may be established. (b)   The maximum lawful rate of interest for residential mortgages, as defined in this act, entered into or contracted for during any calendar month shall be equal to the Monthly Index of Long Term United States Government Bond Yields for the second preceding calendar month plus an additional two and one-half per cent per annum rounded off to the nearest quarter of one per cent per annum. (c)   On or before the twentieth day of each month, the Secretary of Banking (i) shall determine, based on available statistics, the Monthly Index of Long Term United States Government Bond Yields for the preceding calendar month; and (ii) shall determine the maximum lawful rate of interest for residential mortgages for the next succeeding month, as defined in subsection (b) of this section, and shall cause such maximum lawful rate of interest to be filed with the Legislative Reference Bureau of publication in the Pennsylvania Bulletin; such maximum lawful rate of interest to be effective on the first day of the next succeeding month. (d)  The loan yield obtained by a residential mortgage lender from the residential mortgage debtor shall not exceed the maximum lawful rate of interest for residential mortgages established in section 301(b). A contract rate within the maximum lawful interest rate applicable to a residential mortgage at the time of the loan settlement shall be the maximum lawful interest rate for the term of the residential mortgage, except variable interest rate mortgages as set forth in section 301(e). (e)  In all proceedings and in all legal actions, the maximum lawful rate of interest for all residential mortgages, as defined in this act, as published in the Pennsylvania Bulletin by the Secretary of Banking shall be the maximum lawful rate of interest for residential mortgages, as defined in this act, except that variable interest rate mortgages may be written provided no increase in interest provided for in any provision for a variable interest rate contained in a security document, or evidence of debt issued in connection therewith shall be lawful unless such provision is set forth in such security document, or in any evidence of debt issued in connection therewith, or both, and such document or documents contain the following provisions: (1)   That the index for determining increase or decrease in interest rate shall be the lawful rate of interest as determined under subsections (a), (b) and (c) for residential mortgages. (2)   A requirement that when an increase in the interest rate is required by a movement in a particular direction of the prescribed standard an identical decrease is required in the interest rate by a movement in the opposite direction of the prescribed standard. (3)   The rate of interest shall change not more often than once during any semiannual period and at least six months shall elapse between any two such changes. (4)   The change in the interest rate shall be one-fourth of one per cent in any semiannual period, and shall not result in a rate more or less than two and five-tenths percentage points greater or less than the rate for the first loan payment due after the closing of the loan. (5)   The rate of interest shall not change during the first annual period of the loan.

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§ 303.  Commitments to enter into residential mortgages

(1)   The commitment rate of interest does not exceed the maximum lawful interest rate in effect on the date the mortgage commitment was issued;

§ 401.  Disclosure requirements

§ 401.1.  Photocopies of security documents The copy of any security document required to be furnished to a residential mortgage debtor by the provisions of this act or any regulation promulgated pursuant thereto may be a photocopy thereof.

Part IX Ch. 68–72 Condos, etc.

1. 15 U.S.C. § 1601 et seq. 2. 12 U.S.C. § 2601 et seq.

Index

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Part VIII Ch. 64–67 L/T

A residential mortgage lender shall provide to the residential mortgage debtor disclosures required by the “Truth in Lending Act,” Title I, Public Law 90-321, 82 Stat. 146,1 and the “Real Estate Settlement Procedures Act of 1974,” Public Law 93-533, 88 Stat. 1724,2 and regulations adopted pursuant thereto.

Part VII Ch. 57–63 Litigation

Article IV

Part VI Ch. 49–56 Taxation

(2)   The mortgage commitment when agreed to by the borrower shall constitute a legally binding obligation on the part of the residential mortgage lender to make a residential mortgage loan within a specified time period in the future at a rate of interest not exceeding the maximum lawful rate of interest effective as of the date of commitment offer.

Part V Ch. 41–48A Zoning, etc.

A residential mortgage commitment which provides for consummation within some future time following the issuance of the mortgage commitment may be consummated pursuant to the provisions, including interest rate, of such commitment notwithstanding the fact that the maximum lawful rate of interest at the time the residential mortgage is entered into is less than the commitment rate of interest, provided:

Part IV Ch. 36–40 Insurance

The maximum lawful rate of interest prescribed in sections 201 and 301 of this act shall not apply to any loan insured or guaranteed in whole or in part by the Federal Housing Administration, the Veterans Administration or any other department or agency of the United States Government: Provided, That any such loan is subject to a maximum rate of interest established by law or by such department or agency.

Part III Ch. 23–35 Mortgages

§ 302.  Federally guaranteed loans

Part II Ch. 15–22 Deeds

(f)   The maximum lawful rate of interest set forth in this section shall not apply to (i) an obligation to pay a sum of money in an original bona fide principal amount of more than the base figure. (ii) an obligation to pay a sum of money in an original bona fide principal amount of the base figure of less, evidenced by a security document and secured by a lien upon real property, other than residential real property as defined in this act; or business loans of any principal amount.

Part I Ch. 1–14 Brokers

(6)   Subject to the provisions of paragraphs (3), (4) and (5), an increase or decrease in the interest rate shall be effected when the index moves in such percentage that the difference between the present index rate and present mortgage rate varies not less than one-fourth of a percentage point from the difference between the index and mortgage rates at the date of the first contracted loan repayment.

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PART III

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§ 402 LOAN INTEREST AND PROTECTION LAW: ACT 6 § 402.  Discount points prohibited With the exception of those residential mortgages guaranteed or insured in whole or in part by the Federal Government, or agency thereof, as enumerated in section 302 of this act, and with the exception of any actual settlement costs (but not discount points, as defined in this act) paid by a seller of real estate, it shall be unlawful for a residential mortgage lender to charge to or receive from a seller of real estate directly or indirectly any discount points. § 403.  Notice of intention to foreclose (a)   Before any residential mortgage lender may accelerate the maturity of any residential mortgage obligation, commence any legal action including mortgage foreclosure to recover under such obligation, or take possession of any security of the residential mortgage debtor for such residential mortgage obligation, such person shall give the residential mortgage debtor notice of such intention at least thirty days in advance as provided in this section. (b)   Notice of intention to take action as specified in subsection (a) of this section shall be in writing, sent to the residential mortgage debtor by registered or certified mail at his last known address and, if different, at the residence which is the subject of the residential mortgage. (c)   The written notice shall clearly and conspicuously state: (1)   The particular obligation or real estate security interest; (2)   The nature of the default claimed; (3)   The right of the debtor to cure the default as provided in section 404 of this act and exactly what performance including what sum of money, if any, must be tendered to cure the default; (4)   The time within which the debtor must cure the default; (5)   The method or methods by which the debtor’s ownership or possession of the real estate may be terminated; and (6)  The right of the debtor, if any, to transfer the real estate to another person subject to the security interest or to refinance the obligation and of the transferee’s right, if any, to cure the default. (d)  The notice of intention to foreclose provided in this section shall not be required where the residential mortgage debtor, has abandoned or voluntarily surrendered the property which is the subject of a residential mortgage. § 404.  Right to cure a default (a)   Notwithstanding the provisions of any other law, after a notice of intention to foreclose has been given pursuant to section 403 of this act, at any time at least one hour prior to the commencement of bidding at a sheriff sale or other judicial sale on a residential mortgage obligation, the residential mortgage debtor or anyone in his behalf, not more than three times in any calendar year, may cure his default and prevent sale or other disposition of the real estate and avoid acceleration, if any, by tendering the amount or performance specified in subsection (b) of this section. (b)   To cure a default under this section, a residential mortgage debtor shall: (1)  Pay or tender in the form of cash, cashier’s check or certified check, all sums which would have been due at the time of payment or tender in the absence of default and the exercise of an acceleration clause, if any; (2)   Perform any other obligation which he would have been bound to perform in the absence of default or the exercise of an acceleration clause, if any; (3)  Pay or tender any reasonable fees allowed under section 406 and the reasonable costs of proceeding to foreclosure as specified in writing by the residential mortgage lender actually incurred to the date of payment.

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Table of Contents

PART III

(4)   Pay any reasonable late penalty, if provided for in the security document.

§ 405.  Prepayment penalty prohibited

§ 406.  Attorney’s fees payable

(1)   Reasonable fees for services included in actual settlement costs.

(3)  Prior to commencement of foreclosure or other legal action attorneys’ fees which are reasonable and actually incurred not in excess of fifty dollars ($50) provided that no attorneys’ fees may be charged for legal expenses incurred prior to or during the thirty-day notice period provided in section 403 of this act.3

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Index

179

Part IX Ch. 68–72 Condos, etc.

3. Note: Pursuant to Act of Jun. 19, 2018, P.L. 208, No. 32 § 3, “[t]he following parts of acts are repealed to the extent of any inconsistency with 68 Pa.C.S. Ch. 23: (1) Section 406(3) of the act of January 30, 1974 (P.L.13, No.6), referred to as the Loan Interest and Protection Law.”

Part VIII Ch. 64–67 L/T

(c)  Hereafter when any plaintiff has received payment in full for any judgment entered by confession he shall order the record in the proceeding marked satisfied within thirty days of the receipt thereof, and shall not require any action on the part of the defendant or any payment by him to cover the cost of satisfying the judgment.

Part VII Ch. 57–63 Litigation

(b)  Any debtor who prevails in any action to remove, suspend or enforce a judgment entered by confession shall be entitled to recover reasonable attorney’s fees and costs as determined by the court.

Part VI Ch. 49–56 Taxation

(a)   As to any residential real property, a plaintiff shall not have the right to levy, execute or garnish on the basis of any judgment or decree on confession, whether by amicable action or otherwise, or on a note, bond or other instrument in writing confessing judgment until plaintiff, utilizing such procedures as may be provided in the Pennsylvania Rules of Civil Procedure, files an appropriate action and proceeds to judgment or decree against defendant as in any original action. The judgment by confession shall be changed as may be appropriate by a judgment, order or decree entered by the court in the action. After the above mentioned original action has been prosecuted and a judgment obtained, that judgment shall merge with the confessed judgment and the confessed judgment shall be conformed as to amount and execution shall be had on the confessed judgment. The parties to the action shall have the same rights as parties to other original proceedings. Nothing in this act shall prohibit a residential mortgage lender from proceeding by action in mortgage foreclosure in lieu of judgment by confession if the residential mortgage lender so desires.

Part V Ch. 41–48A Zoning, etc.

§ 407.  Confession of judgment

Part IV Ch. 36–40 Insurance

(2)  Upon commencement of foreclosure or other legal action with respect to a residential mortgage, attorney’s fees which are reasonable and actually incurred by the residential mortgage lender may be charged to the residential mortgage debtor.

Part III Ch. 23–35 Mortgages

With regard to residential mortgages, no residential mortgage lender shall c­ ontract for or receive attorney’s fees from a residential mortgage debtor except as follows:

Part II Ch. 15–22 Deeds

Residential mortgage obligations contracted for on or after the effective date of this act may be prepaid without any penalty or other charge for such prepayment at any time before the end of the period of the loan.

Part I Ch. 1–14 Brokers

(c)   Cure of a default pursuant to this section restores the residential mortgage debtor to the same position as if the default had not occurred.

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§ 408 LOAN INTEREST AND PROTECTION LAW: ACT 6 § 408.  Waivers Notwithstanding any other law, the provisions of this act may not be waived by any oral or written agreement executed by any person.

Article V § 501.  Excessive interest need not be paid When a rate of interest for the loan or use of money, exceeding that provided by this act or otherwise by law shall have been reserved or contracted for, the borrower or debtor shall not be required to pay to the creditor the excess over such maximum interest rate and it shall be lawful for such borrower or debtor, at his option, to retain and deduct such excess from the amount of such debt providing the borrower or debtor gives notice of the asserted excess to the creditor. § 502.  Usury and excess charges recoverable A person who has paid a rate of interest for the loan or use of money at a rate in excess of that provided for by this act or otherwise by law or has paid charges prohibited or in excess of those allowed by this act or otherwise by law may recover triple the amount of such excess interest or charges in a suit at law against the person who has collected such excess interest or charges: Provided, That no action to recover such excess shall be sustained in any court of this Commonwealth unless the same shall have been commenced within four years from and after the time of such payment. Recovery of triple the amount of such excess interest or charges, but not the actual amount of such excess interest or charges, shall be limited to a four-year period of the contract. § 503.  Reasonable attorney’s fees recoverable (a)   If a borrower or debtor, including but not limited to a residential mortgage debtor, prevails in an action arising under this act, he shall recover the aggregate amount of costs and expenses determined by the court to have been reasonably incurred on his behalf in connection with the prosecution of such action, together with a reasonable amount for attorney’s fee. (b)   The award of attorney’s fees shall be in an amount sufficient to compensate attorneys representing debtors in actions arising under this act as provided in subsection (a) of this section. In determining the amount of the fee, the court may consider: (1)   The time and labor required, the novelty and difficulty of the questions involved and the skill requisite properly to conduct the case. (2)   The customary charges of the members of the bar for similar services. (3)  The amount involved in the controversy and the benefits resulting to the client or clients from the services. (4)   The contingency or the certainty of the compensation. (c)  Any time attorneys’ fees are awarded pursuant to any provision of this act, a borrower or debtor shall not be entitled to duplicate recovery of attorneys’ fees under this section, sections 407 or 504 or any other provision of this act. § 504.  Individual actions permitted Any person affected by a violation of the act shall have the substantive right to bring an action on behalf of himself individually for damages by reason of such conduct or violation, together with costs including reasonable attorney’s fees and such other relief to which such person may be entitled under law.

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Table of Contents

PART III § 505.  Penalties

(b)   Any person who violates a provision of this act shall be subject to a fine levied by the department of ten thousand dollars ($10,000) per offense. (a)  When the Attorney General has reason to believe that any person has violated the provisions of this act, or the regulations promulgated hereunder, he shall have standing to bring a civil action for injunctive relief and such other relief as may be appropriate to secure compliance with this act or the regulations promulgated hereunder.

(5)   Impose such other conditions by order or otherwise as the department deems appropriate. The remedies and penalties provided in this act shall be supplementary to and shall not repeal or otherwise effect the remedies and penalties provided in any other act.

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181

Part IX Ch. 68–72 Condos, etc.

§ 507.  Effect on other acts

Part VIII Ch. 64–67 L/T

(4)   Require the person to pay costs associated with any department enforcement action initiated under the provisions of this act.

Part VII Ch. 57–63 Litigation

(3)  Order the person to cease and desist any violation of this act and to make restitution for actual damages to any aggrieved person.

Part VI Ch. 49–56 Taxation

(2)   Prohibit or permanently remove an individual responsible for a violation of this act from working in his or her present capacity or in any other capacity related to activities regulated by the department.

Part V Ch. 41–48A Zoning, etc.

(1)   Suspend, revoke or refuse to renew any license issued to the person by the department.

Part IV Ch. 36–40 Insurance

(c)   If the department determines that a person has violated the provisions of this act, the department may do any of the following:

Part III Ch. 23–35 Mortgages

(b)   The department may examine any instrument, document, account, book, record, electronic data or file of any person, or make such other investigation as may be necessary to administer the provisions of this act. Any person subject to such examination or investigation shall pay the department any costs associated with such examination or investigation. In connection with any examination or investigation authorized by this act, the department shall have the power to issue subpoenas requiring the attendance of, or the production of pertinent books, papers, electronic data or information of any kind which is in any form by, the officers, directors, agents, employees, or members, respectively, of any person which the department is authorized, under the provisions of this act, to examine. The department shall have power to issue subpoenas to any other person or entity of any kind whatsoever provided that the information from such person or entity is necessary for the enforcement of this act. The department shall also have the power to question such witnesses under oath or affirmation, and to examine such books and papers. Any witness who refuses to obey a subpoena issued under this section, or who refuses to be sworn or affirmed, or to testify, or who is guilty of any contempt after summons to appear, may be found in contempt of court. For this purpose, an application may be made to Commonwealth Court or any court of common pleas within whose territorial jurisdiction the offense was committed, for which purpose such court is hereby given jurisdiction.

Part II Ch. 15–22 Deeds

§ 506.  Enforcement

Part I Ch. 1–14 Brokers

(a)  Any person who knowingly and intentionally violates the provisions of this act shall be guilty of a misdemeanor of the third degree.

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§ 601 LOAN INTEREST AND PROTECTION LAW: ACT 6 Article VI § 601.  Regulations The Secretary of Banking shall prescribe regulations to carry out the purposes of this act. These regulations may contain such classifications, differentiations, or other provisions, and may provide for such adjustments for any class of transactions, as in the judgment of the department are necessary or proper to effectuate the purposes of this act, to prevent circumvention or evasion thereof, to facilitate compliance therewith, to insure meaningful disclosure to the user of residential mortgage credit, and to insure their being supplemental to and not inconsistent with regulations under the Federal Consumer Credit Protection Act. § 602.  Construction; title of purchaser No provision of this act shall be construed to adversely affect the title of a bona fide purchaser of real estate who purchases such real estate in good faith without notice of any deficiency in the procedures provided herein. § 603.  Repeals The act of May 28, 1858 (P.L. 622, No. 557), entitled “An act Regulating the Rate of Interest,” is hereby repealed. § 604.  Effect on inconsistent acts If any maximum lawful rate of interest provided for in this act is inconsistent with the provision of any other act establishing, permitting or removing a maximum interest rate, or prohibiting the use of usury as a defense, then the provision of such other act shall prevail. This shall include but not be limited to the provisions of the act of April 8, 1937 (P.L.262, No.66). Banks, savings banks and bank and trust companies, subject to the act of November 30, 1965 (P.L.847, No.356), may charge a maximum rate of interest as authorized by that act or other applicable Federal or State law. § 605.  Effective date This act shall take effect immediately except that sections 401, 403 and 404 shall take effect in sixty days. Notwithstanding any other provision of this act, the Secretary of Banking, immediately upon final enactment of this act, shall determine the maximum lawful rate of interest for residential mortgages as provided in section 301 of this act, for the month in which this act becomes effective and for the next succeeding month. Such rates shall be immediately published in the Pennsylvania Bulletin and shall become effective upon such publication for the respective months. Thereafter the secretary shall determine and publish the maximum lawful rate of interest for residential mortgages in conformity with the other provisions of this act.

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CHAPTER 24A

Part I Ch. 1–14 Brokers

VACANT AND ABANDONED REAL ESTATE FORECLOSURE ACT 68 Pa.C.S. §§ 2301-2312

Part II Ch. 15–22 Deeds

Subch. A Vacant and Abandoned Property B. Sheriff’s Commission and Creditor Attorney Fees

Sec.

Part V Ch. 41–48A Zoning, etc.

SUBCHAPTER B SHERIFF’S COMMISSION AND CREDITOR ATTORNEY FEES Sec.

Part VI Ch. 49–56 Taxation

2309. (Reserved). 2310. Sheriff’s commission. 2311. Limitation on creditor’s attorney fees. 2312. Applicability.

Part VII Ch. 57–63 Litigation

SUBCHAPTER A VACANT AND ABANDONED PROPERTY

Part IX Ch. 68–72 Condos, etc. Index

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Part VIII Ch. 64–67 L/T

§ 2301.   Short title of subchapter. This subchapter shall be known and may be cited as the Vacant and Abandoned Real Estate Foreclosure Act. § 2302.   Legislative findings and purpose. The General Assembly finds and declares that: (1)   Vacant and abandoned real estate, coupled with a default in the obligation to make mortgage payments secured by that real estate, presents a danger to the health, safety and welfare of a community. (2)  Vacant and abandoned real estate often is not repaired, restored and returned to productive use until either a creditor or municipality acquires title to the real estate.

183

Part IV Ch. 36–40 Insurance

2301. Short title of subchapter. 2302. Legislative findings and purpose. 2303. Definitions. 2304. Certification of vacant and abandoned mortgaged property. 2305. Requirements to certify mortgaged property as vacant and abandoned. 2306. Effect of certification of vacancy and abandonment. 2307.  Post-sheriff’s sale possessory action, effect of certification of vacancy and abandonment in action for possession and disposition of abandoned personal property. 2308. Construction.

Part III Ch. 23–35 Mortgages

SUBCHAPTER A VACANT AND ABANDONED PROPERTY

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§ 2303 VACANT AND ABANDONED REAL ESTATE ACT (3)   An accelerated procedure is needed to maintain the due process rights of owners of real estate and to reduce unnecessary delays in an action of mortgage foreclosure or an action for possession or similar actions to recover real estate that is vacant and abandoned. § 2303.  Definitions. The following words and phrases when used in this chapter shall have the meanings given to them in this section unless the context clearly indicates otherwise: “Action for possession.” An action in ejectment initiated by a purchaser to take control of mortgaged property. “Action to quiet title.” An action to resolve claims to title to a mortgaged property initiated by a creditor or purchaser. “Creditor.” A person authorized to enforce an obligation secured by a mortgage or an authorized agent of the creditor, including a servicer. “Foreclosure action.” An action initiated by a creditor to enforce a mortgage obligation. “Former owner.” An owner or obligor, or a successor in interest of an owner or obligor, whose interest in a mortgaged property was foreclosed in an action of mortgage foreclosure, conveyed by a deed in lieu of foreclosure or divested by court order under a mortgage or other obligation, including a successor in interest or other person claiming rights under or through the owner or obligor. “Mortgage.” A consensual interest in real property that secures an obligation. “Mortgaged property.” Real property that is subject to a mortgage and improved with buildings or structures intended for any type of human occupancy, including a formerly mortgaged property conveyed to a purchaser at a sheriff’s sale or pursuant to a deed in lieu of foreclosure. “Municipal board of appeals.” The body designated to review decisions of a municipal code enforcement officer under the act of November 10, 1999 (P.L.491, No.45), known as the Pennsylvania Construction Code Act. “Municipal code enforcement officer.” The official designated to administer and enforce building codes in a municipality designated under section 501 of the act of November 10, 1999 (P.L.491, No.45), known as the Pennsylvania Construction Code Act. “Municipality.” A city, borough, township or incorporated town. “Obligation.” A debt or other duty or liability of an obligor secured by a mortgage. “Obligor.” A person that: (1)   owes payment or performance of an obligation; (2)   has signed a mortgage agreement with respect to mortgaged property; or (3)   is otherwise accountable in whole or in part for payment or performance of an obligation. “Owner.” A person claiming the right to ownership, possession or use of a mortgaged property. “Proceeding.” A foreclosure action, an action for possession or an action to quiet title relating to a mortgaged property.

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“Purchaser.” Any of the following:

(3)  a person that takes title to a mortgaged property pursuant to a deed in lieu of foreclosure.

“Residential mortgaged property.” A mortgaged property located within this Commonwealth containing two or fewer residential units or on which two or fewer residential units are to be constructed, including a residential condominium, cooperative or planned community unit.

“Vacant and abandoned property.” Property that meets the requirements for certification as provided under section 2305 (relating to requirements to certify mortgaged property as vacant and abandoned).

(2)  physically secured and used or held for use by the homeowner as a vacation or seasonal home; or (3)   physically secured and the subject of a probate action or other litigation in which ownership is contested.

(1)  a creditor or purchaser has been designated as a conservator of the mortgaged property under section 5 of the act of November 26, 2008 (P.L.1672, No.135), known as the Abandoned and Blighted Property Conservatorship Act;

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185

Part IX Ch. 68–72 Condos, etc.

(a)  General rule.—After a creditor gives notice to an obligor of a delinquency or other default with respect to an obligation secured by a mortgage or initiates a foreclosure action or action for possession or to quiet title, a mortgaged property for which the notice is given or proceedings are initiated shall be certified as vacant and abandoned if:

Part VIII Ch. 64–67 L/T

§ 2304.   Certification of vacant and abandoned mortgaged property.

Part VII Ch. 57–63 Litigation

(1)  undergoing construction, renovation or rehabilitation and that is proceeding with reasonable diligence to completion;

Part VI Ch. 49–56 Taxation

“Vacant property.” Mortgaged property with respect to which the owner and all persons claiming through the owner, including tenants, have relinquished possession. The term does not include unoccupied mortgaged property that is:

Part V Ch. 41–48A Zoning, etc.

“Servicer.” A person that is responsible for servicing an obligation, including a person that holds or owns an obligation or originates a mortgage loan if the person also services the obligation.

Part IV Ch. 36–40 Insurance

“Record.” As a noun, the term means information that is inscribed on a tangible medium or is stored in an electronic or other medium and is retrievable in perceivable form.

Part III Ch. 23–35 Mortgages

(2)  the owner of a mortgaged property under a recorded sheriff’s deed to the mortgaged property; or

Part II Ch. 15–22 Deeds

(1)  a person that acquires equitable title to a mortgaged property at a sheriff’s sale conducted pursuant to a foreclosure or similar action and has paid settlement funds and delivered required documentation to the sheriff to obtain a sheriff’s deed or the owner of a property under a recorded sheriff’s deed to the property or the person’s designee;

Part I Ch. 1–14 Brokers

“Property address.” The address of a mortgaged property, unless a different address is provided by the owner or obligor in mortgage documents for notification of the owner or obligor or in subsequent correspondence sent by the owner or obligor to change the address for notification specified for use in mortgage documents.

Table of Contents

PART III

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§ 2304 VACANT AND ABANDONED REAL ESTATE ACT (2)  the mortgaged property is certified as vacant and abandoned by the municipality in which the mortgaged property is located in the manner provided under subsection (b); or (3)   the mortgaged property is certified as vacant and abandoned in a proceeding in the manner provided under subsection (c). (b)  Municipal certification.—A mortgaged property shall be deemed vacant and abandoned by the municipality in which the mortgaged property is located if: (1)   A creditor requests that the municipal code enforcement officer for the municipality make a determination that the mortgaged property is vacant and abandoned. (2)   The municipal code enforcement officer inspects the mortgaged property, determines that the mortgaged property is vacant and abandoned under the requirements of section 2305 (relating to requirements to certify mortgaged property as vacant and abandoned) and gives notice of the determination and an opportunity for hearing to the owner or an obligor other than the owner in the manner required under 2 Pa.C.S. § 553 (relating to hearing and record) or as otherwise provided by law for the giving of notice of municipal code violations and to contest determinations that violations have occurred. (3)   The creditor pays or agrees to pay a fee not to exceed 110% of the reasonable costs for the municipal code inspection officer to conduct an inspection of the mortgaged property, to prepare a report of the inspection, to give notice of the results of the inspection to the creditor and the obligor and to participate in an appeal of a determination that the mortgaged property is vacant and abandoned. (4)  The owner or obligor, after receiving notice and an opportunity for a hearing, fails to seek review of a determination that the mortgaged property is vacant and abandoned by the municipal board of appeals within 30 days or, if a timely request for review is filed, a final determination is made that the mortgaged property is vacant and abandoned. (c)  Judicial certification.—A mortgaged property shall be deemed certified as vacant and abandoned in a proceeding as follows: (1)  In a proceeding, a creditor or purchaser may file a request with the prothonotary to issue a rule to show cause why the mortgaged property should not be certified as vacant and abandoned by submitting an affidavit: (i)   supported as appropriate by images or other appropriate evidence, alleging that the mortgaged property qualifies for certification as vacant and abandoned under the requirements of section 2305; and (ii)   submitted subject to the penalties for false swearing under 18 Pa.C.S. § 4903 (relating to false swearing). (iii)   The request may be filed together with the original complaint in the proceeding or at any time during the course of the proceeding. (2)  The affidavit that the mortgaged property is vacant and abandoned may be provided by a municipal code enforcement officer, the creditor or purchaser or by a competent adult who has personal knowledge of the condition of the mortgaged property, including a property inspector or agent retained by a creditor. (3)   A request for a rule to show cause need not be served on the owner of the mortgaged property or an obligor other than the owner, but the rule issued

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(5)  The rule to show cause shall be served on the owner and an obligor other than the owner by the creditor or purchaser as follows:

(i)   Matter name and docket number. (iii)   Address or mortgaged property.

.... The property is not vacant and has been occupied within the last 45 days by (specify name or names of persons). .... Multiple windows, doors or entrances on the property are not boarded up, unhinged, closed off, smashed in or are continuously unlocked.

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Part IX Ch. 68–72 Condos, etc.

(iv)  The respondent or respondents to this rule to show cause certify that the mortgaged property is not vacant and abandoned for the following reasons as designed by checking all appropriate spaces below:

Part VIII Ch. 64–67 L/T

(ii)   Respondent or respondents.

Part VII Ch. 57–63 Litigation

(7)   An obligor may respond to the rule to show cause by filing with the court a statement, submitted under oath or affirmation that attests the statement is true and subject to the penalties under 18 Pa.C.S. § 4903, that the mortgaged property is not vacant and abandoned on a form provided by the creditor or purchaser as specified below and containing other information as may be required by the court. Only response blocks to deny averments of indicia that a property is vacant or abandoned provided in the request for issuance of the rule to show cause shall be included in the form. The response shall include:

Part VI Ch. 49–56 Taxation

(6)  A copy of the rule to show cause shall be delivered by the creditor or purchaser by first class mail to the municipal code enforcement officer for the municipality where the mortgaged property is located.

Part V Ch. 41–48A Zoning, etc.

(iii)   A rule to show cause may be served on the owner or an obligor other than the owner in the manner provided under this paragraph regardless of whether service of a complaint in a proceeding has been completed.

Part IV Ch. 36–40 Insurance

(ii)   If the owner or an obligor other than the owner is not represented by counsel in the proceeding, the creditor shall make at least three attempts to personally serve the rule to show cause. Attempts at personal service may occur at the property address and the address specified in the county tax assessor’s office for the delivery of property tax bills for the mortgaged property. The attempts shall be at least 72 hours apart and at reasonable and different times of the day. If the creditor cannot complete personal service on a party, service may be completed by delivery of notice by first class mail to the addresses at which personal service may be made and by posting of the property in a conspicuous manner.

Part III Ch. 23–35 Mortgages

(i)  If the owner or an obligor other than the owner is represented by counsel in a proceeding in which the rule to show cause is issued, the rule may be served by delivery of the rule to show cause to counsel for the owner or obligor.

Part II Ch. 15–22 Deeds

(4)   Within 10 business days of receipt of the request for a rule to show cause, the prothonotary shall provide a rule to show cause to the creditor or purchaser if the affidavit contains assertions of fact that comply with the requirements for certification as vacant and abandoned as provided under section 2305.

Part I Ch. 1–14 Brokers

by the prothonotary shall be served on the owner or obligor in the manner provided under paragraph (5).

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§ 2305 VACANT AND ABANDONED REAL ESTATE ACT .... The mortgaged property has not been stripped of copper or other metals. .... Interior furnishings, personal items, appliances or fixtures have not been removed from the mortgaged property, including window treatments, such as blinds, curtains or shutters. .... Gas, electric, water or sewer utility services have not been terminated to the mortgaged property or are established in the name of the creditor to preserve the mortgaged property. .... Newspapers, circulars, flyers or mail have not accumulated on the mortgaged property. .... The United States Postal Service has not discontinued delivery to the mortgaged property. .... Rubbish, trash, debris, neglected vegetation or natural overgrowth has not accumulated on the mortgaged property. .... Hazardous, noxious or unhealthy substances or materials have not accumulated on the mortgaged property. .... No communications have occurred between respondents and (name of the creditor or purchaser) stating an intent to vacate or abandon the property. With respect to the following violations of municipal building or housing code (violation to be specified by the creditor or purchaser): .... No citations alleging violations have been received. .... Answers alleging that the violations did not occur and at this time no final determination has been made regarding whether the violations exist, or the citations were dismissed. .... The violations have been corrected within the preceding year. The respondent or respondents whose signature appears below certify under the penalties provided under 18 Pa.C.S. § 4903 (relating to false swearing) with respect to official matters that the statements above are true and correct. (Signature of the respondent or respondents). (8)   If a response to the rule to show cause is not filed within 20 days after being served, the court shall render an order certifying the mortgaged property as vacant and abandoned. (9)   If a timely response to the rule to show cause is filed, the court shall schedule a hearing to determine if credible evidence exists to certify the mortgaged property as vacant and abandoned within not fewer than 20 nor more than 30 days after proof of service of the rule to show cause in the manner provided under paragraph (5). § 2305.   Requirements to certify mortgaged property as vacant and abandoned. (a)  General rule.—A mortgaged property may be certified as vacant and abandoned by a municipal code enforcement officer under section 2304(b) (relating to certification of vacant and abandoned mortgaged property) or in a judicial proceeding under section 2304(c) if the mortgaged property is vacant and satisfies at least three of the following indicia of abandonment: (1)   Multiple windows, doors or entrances on the property are boarded up, unhinged, closed off, smashed in or are continuously unlocked.

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(2)   The mortgaged property has been stripped of copper or other metals.

(5)   Newspapers, circulars, flyers or mail has accumulated on the mortgaged property or the United States Postal Service has discontinued delivery to the mortgaged property.

(7)  Multiple municipal building or housing code violations exist for the mortgaged property and the violations have been documented as being uncorrected during the preceding year.

(9)   Hazardous, noxious or unhealthy substances or materials have accumulated on the mortgaged property.

(b)  Determining vacancy.—Competent evidence may be relied on to determine that a mortgaged property is vacant, including evidence that: (1)  The mortgaged property was found to be vacant at the time of two inspections occurring at least 45 days apart.

(b)   Service and notification.—Following a certification that a mortgaged property is vacant and abandoned, any subsequent documents required to be served on and any notices required to be delivered to the owner, any obligor other than the owner or a former owner may be exclusively served and delivered by first

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Part IX Ch. 68–72 Condos, etc.

§ 2306.   Effect of certification of vacancy and abandonment. (a)  Foreclosure action.—In a foreclosure action, a mortgaged property certified as vacant and abandoned shall not be subject to mediation, conciliation, diversion or other program established by a local court to encourage resolution of owner-occupied residential mortgage foreclosures.

Part VIII Ch. 64–67 L/T

(c)  Corrective action by creditor or purchaser.—The remediation of conditions that provide evidence of abandonment under subsection (b) by the creditor or purchaser or corrective action taken by a municipality or other person to protect the public health and welfare shall not prevent a mortgaged property from meeting the requirements to be certified as vacant and abandoned.

Part VII Ch. 57–63 Litigation

(3)   No response was received to the notice posted after the first inspection from a person legally entitled to occupy the mortgaged property prior to the second inspection.

Part VI Ch. 49–56 Taxation

(2)  After the first inspection the mortgaged property was posted with a notice advising an occupant of the mortgaged property to immediately contact the person who conducted the inspection and advising that failure to do so may have adverse legal consequences.

Part V Ch. 41–48A Zoning, etc.

(10)   A communication from the owner or obligor stating that both the owner and any obligor have vacated or abandoned the property or intend to do so.

Part IV Ch. 36–40 Insurance

(8)   Written and signed statements have been issued by the mortgaged property’s adjoining neighbors, adjacent neighbors, delivery persons or a municipal code enforcement officer indicating that the mortgaged property is vacant and abandoned.

Part III Ch. 23–35 Mortgages

(6)   Rubbish, trash, debris, neglected vegetation or natural overgrowth has accumulated on the mortgaged property.

Part II Ch. 15–22 Deeds

(4)   Gas, electric, water or sewer utility services have been terminated to the mortgaged property or are established in the name of the creditor to preserve the mortgaged property.

Part I Ch. 1–14 Brokers

(3)  Interior furnishings, personal items, appliances or fixtures have been removed from the mortgaged property, including window treatments, such as blinds, curtains or shutters.

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§ 2306 VACANT AND ABANDONED REAL ESTATE ACT class mail to an address specified by the owner, obligor or former owner for the receipt of communications relating to the property or, if no address is specified, by delivery to the address of the mortgaged property and by posting of notice in a conspicuous location on the mortgaged property. (c)   Scheduling of sheriff’s sale.— (1)   If a mortgaged property is certified as vacant and abandoned, upon the request of a creditor or purchaser, the sheriff, on receipt of an accelerated sale fee of $500, shall schedule a sale of the mortgaged property to be conducted no later than 60 days following the filing of the writ of execution and the sheriff’s deed must be recorded no later than 30 days following the sale. (2)   The accelerated sale fee shall be payable at the time of the filing of the writ of execution and shall be immediately refunded if: (i)   the time frames specified in this subsection are not complied with; or (ii)  the expedited sale date is postponed or continued by a party other than the creditor. (d)   Scheduling of execution of writ of possession.— (1)   If a mortgaged property is certified as vacant and abandoned, upon the requests of a creditor or purchaser, the sheriff, on the receipt of an additional fee of $250, shall execute and serve a writ of possession no later than 20 days following delivery of the writ to the sheriff. (2)  In order to impose the additional fee, the sheriff must schedule the removal of a former owner’s personal property from the mortgaged property and the securing of the personal property to be conducted no later than 30 days following the filing of the writ of execution. (3)   The additional fee shall be immediately refunded if: (i)   the time frames provided under this section are not complied with; or (ii)  the expedited execution is postponed or continued by a party other than the purchaser. (e)   Possession of mortgaged property pending foreclosure.—If a mortgaged property is certified as vacant and abandoned, or with the consent of the owner or an obligor other than the owner, the creditor may enter the mortgaged property peacefully for the purpose of inspecting, maintaining and repairing the mortgaged property and shall not be liable to the owner for trespass or for damage to the property resulting from a cause other than the creditor’s gross negligence or willful misconduct. (f)  Property maintenance.— (1)  The maintenance obligations of a creditor that exercises the right to possession pending foreclosure are limited to compliance with property maintenance requirements of the Federal Housing Administration for loans insured by the administration or of the Federal National Mortgage Association or the Federal Home Loan Mortgage Corporation for mortgages held by either respective entity. (2)  For other creditors, the mortgaged property maintenance obligations of a creditor that exercises its right to possession pending foreclosure shall be limited to: (i)   Care for the yard and exterior of a building on vacant and abandoned mortgaged property, including removing excessive foliage growth that diminishes the value of surrounding properties.

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(iii)   Preventing mosquito larvae from growing in standing water on the mortgaged property and infestations by other vermin and insects.

(1)  When a former owner relinquishes possession of mortgaged property certified as vacant and abandoned, the former owner shall remove from the mortgaged property all items of personal property. (2)   For the purposes of this section, a former owner shall be deemed to have relinquished possession when the former owner has: (ii)   removed substantially all of the former owner’s personal property; or

(1)   The purchaser shall serve notice of intent to remove personal property from the mortgaged property on the owner in the manner provided under section 2306(b) (relating to effect of certification of vacancy and abandonment).

(i)   the date the notice was posted; (ii)   the address of the mortgaged property;

(iv)   a notice that personal property that remains on the mortgaged property must be retrieved by the former owner; (v)   a statement that:

(B)   If the intent to retrieve is conveyed to the purchaser, the personal property shall be retained by the purchaser at the mortgaged property or a site of the purchaser’s choosing for 30 days from the date of the notice.

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Part IX Ch. 68–72 Condos, etc.

(A)  The former owner has 10 days from the date of the notice to notify the purchaser that the former owner will be retrieving the personal property.

Part VIII Ch. 64–67 L/T

(iii)  the date of the sheriff’s sale or the date the title was acquired by the purchaser;

Part VII Ch. 57–63 Litigation

(2)   The purchaser shall conspicuously post on the property a personal property removal notice that includes:

Part VI Ch. 49–56 Taxation

(b)  Removal of personal property by purchaser.—If the former owner fails to remove personal property from mortgaged property certified as vacant and abandoned after delivery of a sheriff’s deed or a deed in lieu of foreclosure, concurrent with the filing of an action for possession or at any time after the action is filed, the purchaser may remove the remaining personal property of the former owner in the following manner:

Part V Ch. 41–48A Zoning, etc.

(iii)  provided a forwarding address or written notice stating that the former owner has vacated the premises or otherwise communicated to the creditor that the former owner has relinquished possession of the mortgaged property.

Part IV Ch. 36–40 Insurance

(i)   physically vacated the premises;

Part III Ch. 23–35 Mortgages

§ 2307.   Post-sheriff’s sale possessory action, effect of certification of vacancy and abandonment in action for possession and disposition of abandoned personal property. (a)   Removal of personal property by former owner.—

Part II Ch. 15–22 Deeds

(iv)   Taking other actions needed to prevent conditions on the mortgaged property that create a serious and imminent hazard to public health or safety.

Part I Ch. 1–14 Brokers

(ii)   Measures reasonably necessary to prevent trespassers from remaining on the mortgaged property.

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§ 2308 VACANT AND ABANDONED REAL ESTATE ACT (C)   If no communication is made to the purchaser within 10 days, the personal property may be disposed of at the discretion of the purchaser; and (vi)   a telephone number, e-mail address or facsimile number and address for the purchaser or its agent and the location where the personal property can be retrieved, if not at the mortgaged property, and a statement that retrieval of the personal property after 10 days will require the former owner to pay for costs related to the storage of the personal property. (3)  At all times between posting of the personal property removal notice and the expiration of the 10-day period, the purchaser shall exercise ordinary care with regard to any personal property that the former owner left in or on the mortgaged property. (4)   At the expiration of the 10-day period, the purchaser shall owe no duty to the former owner with regard to caring for the personal property and may, in the purchaser’s discretion, dispose of the personal property subject to the following: (i)   If the personal property is sold and proceeds exceed any outstanding obligations owed to the owner or obligor, the proceeds shall be forwarded to the former owner by certified mail. (ii)   If no forwarding address has been provided to the purchaser by the former owner, the owner shall hold the proceeds for 30 days and, if unclaimed, may retain the proceeds. (5)   If the purchaser has issued a personal property removal notice to the former owner, the purchaser may store the former owner’s personal property at another location within reasonable proximity to the mortgaged property subject to the following: (i)   If the purchaser stores the personal property at another location, the purchaser may remove the personal property from the mortgaged property by any means reasonably calculated to safeguard the personal property for the time period required under this section. (ii)   A former owner shall not be required to pay the costs related to the removal or storage of personal property by the purchaser if the former owner retrieves the personal property within 10 days of the date of the notice. (6)  If the former owner or occupant retrieves the personal property after 10 days of the date of the notice but before 30 days, the former owner shall pay any reasonable and actual costs related to the removal or storage of the personal property by the purchaser for that time period. § 2308.  Construction. Nothing is this subchapter shall be construed to limit or restrict in any manner remedies available at law or in equity to a creditor or purchaser in a proceeding.

SUBCHAPTER B SHERIFF’S COMMISSION AND CREDITOR ATTORNEY FEES Sec. 2309.  (Reserved). 2310.  Sheriff’s commission.

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Part I Ch. 1–14 Brokers

2311.   Limitation on creditor’s attorney fees. 2312.  Applicability.

(2)   Attorney fees are presumed to be reasonable under paragraph (1) if they:

(3)   A party to the action may request, upon application to the court, a review of the reasonableness of the attorney fees claimed. (b)   Before commencement of proceedings.—

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(2)   No attorney fees may be charged for legal expenses incurred for a residential mortgage prior to or during the 30-day notice period provided under section 406 of the Loan Interest and Protection Law.

Part VIII Ch. 64–67 L/T

(1)  Except as provided in paragraph (2), prior to the commencement of foreclosure or other legal action with respect to a residential mortgage that is subject to the limits on attorney fees provided under section 406 of the Loan Interest and Protection Law, attorney fees that are reasonable and actually incurred not in excess of 0.1% of the amount of the then existing base figure as defined in section 101 of the Loan Interest and Protection Law may be charged to the residential mortgage debtor.

Part VII Ch. 57–63 Litigation

(ii)   are actually incurred for the enforcement of a mortgage obligation in this Commonwealth.

Part VI Ch. 49–56 Taxation

(i)   conform with the attorney fees promulgated and as may be amended from time to time by the Federal National Mortgage Association, Federal Home Loan Mortgage Corporation, the Department of Housing and Urban Development, the Department of Veterans Affairs or their respective successor organizations; and

Part V Ch. 41–48A Zoning, etc.

(1)   After the commencement of foreclosure or other legal action with respect to a residential mortgage that is subject to the limits on attorney fees provided under section 406 of the act of January 30, 1974 (P.L.13, No.6), referred to as the Loan Interest and Protection Law, attorney fees that are reasonable and actually incurred by the residential mortgage lender may be charged to the residential mortgage debtor.

Part IV Ch. 36–40 Insurance

§ 2311.   Limitation on creditor’s attorney fees. (a)   After commencement of proceedings.—

Part III Ch. 23–35 Mortgages

(b)  Stay, cancellation, withdrawal or postponement of sale.—If the execution sale of a mortgaged property is stayed, canceled, withdrawn or postponed due to bankruptcy, because the mortgage is decelerated and brought current, in whole or in part, is paid in full or as a result of a loan modification of the mortgage loan or other resolution of the foreclosure action or for another reason, the sheriff shall not be entitled to the commission.

Part II Ch. 15–22 Deeds

§ 2309.  (Reserved). § 2310.   Sheriff’s commission. (a)  Timing of payment.—With respect to a mortgaged property, the commission payable to the sheriff provided under section 4(b) of the act of July 6, 1984 (P.L.614, No.127), known as the Sheriff Fee Act, shall not be due unless the mortgaged property is sold at the execution sale conducted by the sheriff.

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§ 2312 VACANT AND ABANDONED REAL ESTATE ACT § 2312.  Applicability. This subchapter shall apply to the extent provided under sections 2310 (relating to sheriff’s commission) and 2311 (relating to limitation on creditor’s attorney fees) and shall not be limited to mortgaged properties certified as vacant and abandoned under Subchapter A (relating to vacant and abandoned property).

Editor’s Note: Sections 2 and 3 of Act of Jun. 19, 2018, P.L. 208, No. 32 provide as follows: Section 2.   This act shall apply to proceedings commenced before, on or after the effective date of this section. Section 3.  The following parts of acts are repealed to the extent of any inconsistency with 68 Pa.C.S. Ch. 23: (1)   Section 406(3) of the act of January 30, 1974 (P.L.13, No.6), referred to as the Loan Interest and Protection Law. (2)   Section 7 of the act of July 6, 1984 (P.L.614, No.127), known as the Sheriff Fee Act.

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15 U.S.C. § 1601 et seq.

Part I Ch. 1–14 Brokers

CONSUMER CREDIT COST DISCLOSURE TRUTH IN LENDING ACT

Table of Contents

CHAPTER 25

Sec.

Part VII Ch. 57–63 Litigation Part VIII Ch. 64–67 L/T Part IX Ch. 68–72 Condos, etc. Index

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Part V Ch. 41–48A Zoning, etc.

§ § § § § §

Part IV Ch. 36–40 Insurance

§ § § § § § § § § § § § § § § § § § § § § §

Part III Ch. 23–35 Mortgages

§ § § § § § § § §

1601. Congressional findings and declaration of purpose 1602. Definitions and rules of construction 1603. Exempted transactions 1604. Disclosure guidelines 1605. Determination of finance charge 1606. Determination of annual percentage rate 1607. Administrative enforcement 1608. Views of other agencies 1609. Repealed. Pub. L. 94-239, §3(b)(1), Mar. 23, 1976, 90 Stat. 253 1610. Effect on other laws 1611. Criminal liability for willful and knowing violation 1612. Effect on government agencies 1613. Annual reports to Congress by Bureau 1614. Repealed. Pub. L. 96-221, title VI, §616(b), Mar. 31, 1980, 94 Stat. 182 1615. Prohibition on use of “Rule of 78’s” in connection with mortgage refinancings and other consumer loans 1616. Board review of consumer credit plans and regulations 1631. Disclosure requirements 1632. Form of disclosure; additional information 1633. Exemption for State-regulated transactions 1634. Effect of subsequent occurrence 1635. Right of rescission as to certain transactions 1636. Repealed. Pub. L. 96-221, title VI, §614(e)(1), Mar. 31, 1980, 94 Stat. 180 1637. Open end consumer credit plans 1637a. Disclosure requirements for open end consumer credit plans secured by consumer’s principal dwelling 1638. Transactions other than under an open end credit plan 1638a. Reset of hybrid adjustable rate mortgages 1639. Requirements for certain mortgages 1639a. Duty of servicers of residential mortgages 1639b. Residential mortgage loan origination 1639c. Minimum standards for residential mortgage loans 1639d. Escrow or impound accounts relating to certain consumer credit transactions 1639e. Appraisal independence requirements 1639f. Requirements for prompt crediting of home loan payments 1639g. Requests for payoff amounts of home loan 1639h. Property appraisal requirements 1640. Civil liability 1641. Liability of assignees 1642. Issuance of credit cards 1643. Liability of holder of credit card 1644. Fraudulent use of credit cards; penalties 1645. Business credit cards; limits on liability of employees 1646. Dissemination of annual percentage rates; implementation, etc. 1647. Home equity plans 1648. Reverse mortgages 1649. Certain limitations on liability 1650. Preventing unfair and deceptive private educational lending practices and eliminating conflicts of interest 1651. Procedure for timely settlement of estates of decedent obligors 1661. Catalogs and multiple-page advertisements 1662. Advertising of downpayments and installments 1663. Advertising of open end credit plans 1664. Advertising of credit other than open end plans 1665. Nonliability of advertising media

Part II Ch. 15–22 Deeds

§ § § § § § § § § § § § § § §

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§ 1601

CONSUMER CREDIT DISCLOSURE

§ 1665a. Use of annual percentage rate in oral disclosures; exceptions § 1665b. Advertising of open end consumer credit plans secured by consumer’s principal dwelling § 1665c. Interest rate reduction on open end consumer credit plans § 1665d. Reasonable penalty fees on open end consumer credit plans § 1665e. Consideration of ability to repay § 1666. Correction of billing errors § 1666a. Regulation of credit reports § 1666b. Timing of payments § 1666c. Prompt and fair crediting of payments § 1666d. Treatment of credit balances § 1666e. Notification of credit card issuer by seller of return of goods, etc., by obligor; credit for account of obligor § 1666f. Inducements to cardholders by sellers of cash discounts for payments by cash, check or similar means; finance charge for sales transactions involving cash discounts § 1666g. Tie-in services prohibited for issuance of credit card § 1666h. Offset of cardholder’s indebtedness by issuer of credit card with funds deposited with issuer by cardholder; remedies of creditors under State law not affected § 1666i. Assertion by cardholder against card issuer of claims and defenses arising out of credit card transaction; prerequisites; limitation on amount of claims or defenses § 1666i-1. Limits on interest rate, fee, and finance charge increases applicable to outstanding balances § 1666i-2. Additional limits on interest rate increases § 1666j. Applicability of State laws § 1667. Definitions § 1667a. Consumer lease disclosures § 1667b. Lessee’s liability on expiration or termination of lease § 1667c. Consumer lease advertising; liability of advertising media § 1667d. Civil liability of lessors § 1667e. Applicability of State laws; exemptions by Bureau from leasing requirements § 1667f. Regulations

SUBCHAPTER I—CONSUMER CREDIT COST DISCLOSURE PART A—GENERAL PROVISIONS §1601.   Congressional findings and declaration of purpose (a)   Informed use of credit The Congress finds that economic stabilization would be enhanced and the competition among the various financial institutions and other firms engaged in the extension of consumer credit would be strengthened by the informed use of credit. The informed use of credit results from an awareness of the cost thereof by consumers. It is the purpose of this subchapter to assure a meaningful disclosure of credit terms so that the consumer will be able to compare more readily the various credit terms available to him and avoid the uninformed use of credit, and to protect the consumer against inaccurate and unfair credit billing and credit card practices. (b)   Terms of personal property leases The Congress also finds that there has been a recent trend toward leasing automobiles and other durable goods for consumer use as an alternative to install-

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ment credit sales and that these leases have been offered without adequate cost disclosures. It is the purpose of this subchapter to assure a meaningful disclosure of the terms of leases of personal property for personal, family, or household purposes so as to enable the lessee to compare more readily the various lease terms available to him, limit balloon payments in consumer leasing, enable comparison of lease terms with credit terms where appropriate, and to assure meaningful and accurate disclosures of lease terms in advertisements.

Part I Ch. 1–14 Brokers

§ 1602.   Definitions and rules of construction (a)   The definitions and rules of construction set forth in this section are applicable for the purposes of this subchapter.

Part II Ch. 15–22 Deeds

(c)   The term “Board” refers to the Board of Governors of the Federal Reserve System. (d)   The term “organization” means a corporation, government or governmental subdivision or agency, trust, estate, partnership, cooperative, or association.

Part III Ch. 23–35 Mortgages

(b)  Bureau.—The term “Bureau” means the Bureau of Consumer Financial Protection.

(e)   The term “person” means a natural person or an organization.

Part IX Ch. 68–72 Condos, etc. Index

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(i)   The adjective “consumer”, used with reference to a credit transaction, characterizes the transaction as one in which the party to whom credit is offered or extended is a natural person, and the money, property, or services which are the subject of the transaction are primarily for personal, family, or household purposes.

Part VI Ch. 49–56 Taxation

(h)   The term “credit sale” refers to any sale in which the seller is a creditor. The term includes any contract in the form of a bailment or lease if the bailee or lessee contracts to pay as compensation for use a sum substantially equivalent to or in excess of the aggregate value of the property and services involved and it is agreed that the bailee or lessee will become, or for no other or a nominal consideration has the option to become, the owner of the property upon full compliance with his obligations under the contract.

Part V Ch. 41–48A Zoning, etc.

(g)   The term “creditor” refers only to a person who both (1) regularly extends, whether in connection with loans, sales of property or services, or otherwise, consumer credit which is payable by agreement in more than four installments or for which the payment of a finance charge is or may be required, and (2) is the person to whom the debt arising from the consumer credit transaction is initially payable on the face of the evidence of indebtedness or, if there is no such evidence of indebtedness, by agreement. Notwithstanding the preceding sentence, in the case of an open-end credit plan involving a credit card, the card issuer and any person who honors the credit card and offers a discount which is a finance charge are creditors. For the purpose of the requirements imposed under part D of this subchapter and sections 1637(a)(5), 1637(a)(6), 1637(a)(7), 1637(b)(1), 1637(b)(2), 1637(b)(3), 1637(b)(8), and 1637(b)(10) of this title, the term “creditor” shall also include card issuers whether or not the amount due is payable by agreement in more than four installments or the payment of a finance charge is or may be required, and the Bureau shall, by regulation, apply these requirements to such card issuers, to the extent appropriate, even though the requirements are by their terms applicable only to creditors offering open-end credit plans. Any person who originates 2 or more mortgages referred to in subsection (aa) in any 12-month period or any person who originates 1 or more such mortgages through a mortgage broker shall be considered to be a creditor for purposes of this subchapter. The term “creditor” includes a private educational lender (as that term is defined in section 1650 of this title) for purposes of this subchapter.

Part IV Ch. 36–40 Insurance

(f)   The term “credit” means the right granted by a creditor to a debtor to defer payment of debt or to incur debt and defer its payment.

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(j)  The terms “open end credit plan” and “open end consumer credit plan” mean a plan under which the creditor reasonably contemplates repeated transactions, which prescribes the terms of such transactions, and which provides for a finance charge which may be computed from time to time on the outstanding unpaid balance. A credit plan or open end consumer credit plan which is an open end credit plan or open end consumer credit plan within the meaning of the preceding sentence is an open end credit plan or open end consumer credit plan even if credit information is verified from time to time. (k)   The term “adequate notice,” as used in section 1643 of this title, means a printed notice to a cardholder which sets forth the pertinent facts clearly and conspicuously so that a person against whom it is to operate could reasonably be expected to have noticed it and understood its meaning. Such notice may be given to a cardholder by printing the notice on any credit card, or on each periodic statement of account, issued to the cardholder, or by any other means reasonably assuring the receipt thereof by the cardholder. (l)   The term “credit card” means any card, plate, coupon book or other credit device existing for the purpose of obtaining money, property, labor, or services on credit. (m)   The term “accepted credit card” means any credit card which the cardholder has requested and received or has signed or has used, or authorized another to use, for the purpose of obtaining money, property, labor, or services on credit. (n)   The term “cardholder” means any person to whom a credit card is issued or any person who has agreed with the card issuer to pay obligations arising from the issuance of a credit card to another person. (o)   The term “card issuer” means any person who issues a credit card, or the agent of such person with respect to such card. (p)   The term “unauthorized use,” as used in section 1643 of this title, means a use of a credit card by a person other than the cardholder who does not have actual, implied, or apparent authority for such use and from which the cardholder receives no benefit. (q)   The term “discount” as used in section 1666f of this title means a reduction made from the regular price. The term “discount” as used in section 1666f of this title shall not mean a surcharge. (r)   The term “surcharge” as used in this section and section 1666f of this title means any means of increasing the regular price to a cardholder which is not imposed upon customers paying by cash, check, or similar means.” (s)   The term “State” refers to any State, the Commonwealth of Puerto Rico, the District of Columbia, and any territory or possession of the United States. (t)   The term “agricultural purposes” includes the production, harvest, exhibition, marketing, transportation, processing, or manufacture of agricultural products by a natural person who cultivates, plants, propagates, or nurtures those agricultural products, including but not limited to the acquisition of farmland, real property with a farm residence, and personal property and services used primarily in farming. (u)   The term “agricultural products” includes agricultural, horticultural, viticultural, and dairy products, livestock, wildlife, poultry, bees, forest products, fish and shellfish, and any products thereof, including processed and manufactured products, and any and all products raised or produced on farms and any processed or manufactured products thereof. (v)   The term “material disclosures” means the disclosure, as required by this subchapter, of the annual percentage rate, the method of determining the fi-

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Part III Ch. 23–35 Mortgages Part IV Ch. 36–40 Insurance Part V Ch. 41–48A Zoning, etc. Part VI Ch. 49–56 Taxation Part VII Ch. 57–63 Litigation Part VIII Ch. 64–67 L/T Part IX Ch. 68–72 Condos, etc. Index

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nance charge and the balance upon which a finance charge will be imposed, the amount of the finance charge, the amount to be financed, the total of payments, the number and amount of payments, the due dates or periods of payments scheduled to repay the indebtedness, and the disclosures required by section 1639(a) of this title. (w)   The term “dwelling” means a residential structure or mobile home which contains one to four family housing units, or individual units of condominiums or cooperatives. (x)   The term “residential mortgage transaction” means a transaction in which a mortgage, deed of trust, purchase money security interest arising under an installment sales contract, or equivalent consensual security interest is created or retained against the consumer’s dwelling to finance the acquisition or initial construction of such dwelling. (y)   As used in this section and section 1666f of this title, the term “regular price” means the tag or posted price charged for the property or service if a single price is tagged or posted, or the price charged for the property or service when payment is made by use of an open-end credit plan or a credit card if either (1) no price is tagged or posted, or (2) two prices are tagged or posted, one of which is charged when payment is made by use of an open-end credit plan or a credit card and the other when payment is made by use of cash, check, or similar means. For purposes of this definition, payment by check, draft, or other negotiable instrument which may result in the debiting of an open-end credit plan or a credit cardholder’s open-end account shall not be considered payment made by use of the plan or the account. (z)   Any reference to any requirement imposed under this subchapter or any provision thereof includes reference to the regulations of the Bureau under this subchapter or the provision thereof in question. (aa)  The disclosure of an amount or percentage which is greater than the amount or percentage required to be disclosed under this subchapter does not in itself constitute a violation of this subchapter. (bb)  High-cost Mortgage.— (1)  Definition.— (A)   In general.—The term “high-cost mortgage”, and a mortgage referred to in this subsection, means a consumer credit transaction that is secured by the consumer’s principal dwelling, other than a reverse mortgage transaction, if— (i)   in the case of a credit transaction secured— (I)   by a first mortgage on the consumer’s principal dwelling, the annual percentage rate at consummation of the transaction will exceed by more than 6.5 percentage points (8.5 percentage points, if the dwelling is personal property and the transaction is for less than $50,000) the average prime offer rate, as defined in section 1639c(b)(2)(B) of this title, for a comparable transaction; or (II)   by a subordinate or junior mortgage on the consumer’s principal dwelling, the annual percentage rate at consummation of the transaction will exceed by more than 8.5 percentage points the average prime offer rate, as defined in section 1639c(b)(2)(B) of this title, for a comparable transaction; (ii)   the total points and fees payable in connection with the transaction, other than bona fide third party charges not retained by the mortgage originator, creditor, or an affiliate of the creditor or mortgage originator, exceed—

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§ 1602

CONSUMER CREDIT DISCLOSURE

(I)   in the case of a transaction for $20,000 or more, 5 percent of the total transaction amount; or (II)   in the case of a transaction for less than $20,000, the lesser of 8 percent of the total transaction amount or $1,000 (or such other dollar amount as the Board shall prescribe by regulation); or (iii)   the credit transaction documents permit the creditor to charge or collect prepayment fees or penalties more than 36 months after the transaction closing or such fees or penalties exceed, in the aggregate, more than 2 percent of the amount prepaid. (B)   Introductory rates taken into account.—For purposes of subparagraph (A)(i), the annual percentage rate of interest shall be determined based on the following interest rate: (i)   In the case of a fixed-rate transaction in which the annual percentage rate will not vary during the term of the loan, the interest rate in effect on the date of consummation of the transaction. (ii)  In the case of a transaction in which the rate of interest varies solely in accordance with an index, the interest rate determined by adding the index rate in effect on the date of consummation of the transaction to the maximum margin permitted at any time during the loan agreement. (iii)   In the case of any other transaction in which the rate may vary at any time during the term of the loan for any reason, the interest charged on the transaction at the maximum rate that may be charged during the term of the loan. (C)   Mortgage insurance.—For the purposes of computing the total points and fees under paragraph (4), the total points and fees shall exclude— (i)   any premium provided by an agency of the Federal Government or an agency of a State; (ii)   any amount that is not in excess of the amount payable under policies in effect at the time of origination under section 203(c)(2)(A) of the National Housing Act (12 U.S.C. 1709(c)(2)(A)), provided that the premium, charge, or fee is required to be refundable on a pro-rated basis and the refund is automatically issued upon notification of the satisfaction of the underlying mortgage loan; and (iii)   any premium paid by the consumer after closing. (2)(A)   After the 2-year period beginning on the effective date of the regulations promulgated under section 155 of the Riegle Community Development and Regulatory Improvement Act of 1994, and no more frequently than biennially after the first increase or decrease under this subparagraph, the Bureau may by regulation increase or decrease the number of percentage points specified in paragraph (1)(A), if the Bureau determines that the increase or decrease is— (i)  consistent with the consumer protections against abusive lending provided by the amendments made by subtitle B of title I of the Riegle Community Development and Regulatory Improvement Act of 1994; and (ii)   warranted by the need for credit. (B)   An increase or decrease under subparagraph (A)— (i)  may not result in the number of percentage points referred to in paragraph (1)(A)(i)(I) being less than 6 percentage points or greater than 10 percentage points; and (ii)  may not result in the number of percentage points referred to in paragraph (1)(A)(i)(II) being less than 8 percentage points or greater than 12 percentage points.

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(3)   The amount specified in paragraph (1)(B)(ii) shall be adjusted annually on January 1 by the annual percentage change in the Consumer Price Index, as reported on June 1 of the year preceding such adjustment. (A)   all items included in the finance charge, except interest or the timeprice differential;

(C)  each of the charges listed in section 1605(e) of this title (except an escrow for future payment of taxes), unless— (i)   the charge is reasonable;

Part III Ch. 23–35 Mortgages

(B)   all compensation paid directly or indirectly by a consumer or creditor to a mortgage originator from any source, including a mortgage originator that is also the creditor in a table-funded transaction;

Part II Ch. 15–22 Deeds

(4)   For purposes of paragraph (1)(B), points and fees shall include—

Part I Ch. 1–14 Brokers

(C)   In determining whether to increase or decrease the number of percentage points referred to in subparagraph (A), the Bureau shall consult with representatives of consumers, including low-income consumers, and lenders.

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PART III

(ii)   the creditor receives no direct or indirect compensation; and

(E)   the maximum prepayment fees and penalties which may be charged or collected under the terms of the credit transaction;

(G)   such other charges as the Bureau determines to be appropriate.

(cc)   The term “reverse mortgage transaction” means a nonrecourse transaction in which a mortgage, deed of trust, or equivalent consensual security interest is created against the consumer’s principal dwelling— (2)   with respect to which the payment of any principal, interest, and shared appreciation or equity is due and payable (other than in the case of default) only after— (A)   the transfer of the dwelling;

Part IX Ch. 68–72 Condos, etc.

(1)   securing one or more advances; and

Part VIII Ch. 64–67 L/T

(6)   This subsection shall not be construed to limit the rate of interest or the finance charge that a person may charge a consumer for any extension of credit.

Part VII Ch. 57–63 Litigation

(5)   Calculation of points and fees for open-end consumer credit plans.—In the case of open-end consumer credit plans, points and fees shall be calculated, for purposes of this section and section 1639 of this title, by adding the total points and fees known at or before closing, including the maximum prepayment penalties which may be charged or collected under the terms of the credit transaction, plus the minimum additional fees the consumer would be required to pay to draw down an amount equal to the total credit line.

Part VI Ch. 49–56 Taxation

(F)   all prepayment fees or penalties that are incurred by the consumer if the loan refinances a previous loan made or currently held by the same creditor or an affiliate of the creditor; and

Part V Ch. 41–48A Zoning, etc.

(D)   premiums or other charges payable at or before closing for any credit life, credit disability, credit unemployment, or credit property insurance, or any other accident, loss-of-income, life or health insurance, or any payments directly or indirectly for any debt cancellation or suspension agreement or contract, except that insurance premiums or debt cancellation or suspension fees calculated and paid in full on a monthly basis shall not be considered financed by the creditor;

Part IV Ch. 36–40 Insurance

(iii)   the charge is paid to a third party unaffiliated with the creditor; and

(B)   the consumer ceases to occupy the dwelling as a principal dwelling; or

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Index

(C)   the death of the consumer.

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§ 1602

CONSUMER CREDIT DISCLOSURE

(dd)   Definitions Relating to Mortgage Origination and Residential Mortgage Loans.— (1)  Commission.—Unless otherwise specified, the term “Commission” means the Federal Trade Commission. (2)   Mortgage originator.—The term “mortgage originator”— (A)   means any person who, for direct or indirect compensation or gain, or in the expectation of direct or indirect compensation or gain— (i)   takes a residential mortgage loan application; (ii)   assists a consumer in obtaining or applying to obtain a residential mortgage loan; or (iii)   offers or negotiates terms of a residential mortgage loan; (B)   includes any person who represents to the public, through advertising or other means of communicating or providing information (including the use of business cards, stationery, brochures, signs, rate lists, or other promotional items), that such person can or will provide any of the services or perform any of the activities described in subparagraph (A); (C)   does not include any person who is— (i)  not otherwise described in subparagraph (A) or (B) and who performs purely administrative or clerical tasks on behalf of a person who is described in any such subparagraph; or (ii)   a retailer of manufactured or modular homes or an employee of the retailer if the retailer or employee, as applicable— (I)   does not receive compensation or gain for engaging in activities described in subparagraph (A) that is in excess of any compensation or gain received in a comparable cash transaction; (II)   discloses to the consumer— (aa)   in writing any corporate affiliation with any creditor; and (bb)   if the retailer has a corporate affiliation with any creditor, at least 1 unaffiliated creditor; and (III)   does not directly negotiate with the consumer or lender on loan terms (including rates, fees, and other costs). (D)  does not include a person or entity that only performs real estate brokerage activities and is licensed or registered in accordance with applicable State law, unless such person or entity is compensated by a lender, a mortgage broker, or other mortgage originator or by any agent of such lender, mortgage broker, or other mortgage originator; (E)   does not include, with respect to a residential mortgage loan, a person, estate, or trust that provides mortgage financing for the sale of 3 properties in any 12-month period to purchasers of such properties, each of which is owned by such person, estate, or trust and serves as security for the loan, provided that such loan— (i)  is not made by a person, estate, or trust that has constructed, or acted as a contractor for the construction of, a residence on the property in the ordinary course of business of such person, estate, or trust; (ii)   is fully amortizing; (iii)   is with respect to a sale for which the seller determines in good faith and documents that the buyer has a reasonable ability to repay the loan; (iv)  has a fixed rate or an adjustable rate that is adjustable after 5 or more years, subject to reasonable annual and lifetime limitations on interest rate increases; and (v)   meets any other criteria the Board may prescribe;

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Part III Ch. 23–35 Mortgages Part IV Ch. 36–40 Insurance Part V Ch. 41–48A Zoning, etc. Part VI Ch. 49–56 Taxation Part VII Ch. 57–63 Litigation Part VIII Ch. 64–67 L/T Part IX Ch. 68–72 Condos, etc. Index

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(F)  does not include the creditor (except the creditor in a table-funded transaction) under paragraph (1), (2), or (4) of section 1639b(c) of this title; and (G)  does not include a servicer or servicer employees, agents and contractors, including but not limited to those who offer or negotiate terms of a residential mortgage loan for purposes of renegotiating, modifying, replacing and subordinating principal of existing mortgages where borrowers are behind in their payments, in default or have a reasonable likelihood of being in default or falling behind. (3)  Nationwide mortgage licensing system and registry.—The term “Nationwide Mortgage Licensing System and Registry” has the same meaning as in the Secure and Fair Enforcement for Mortgage Licensing Act of 2008 [12 U.S.C. 5101 et seq.]. (4)   Other definitions relating to mortgage originator.—For purposes of this subsection, a person “assists a consumer in obtaining or applying to obtain a residential mortgage loan” by, among other things, advising on residential mortgage loan terms (including rates, fees, and other costs), preparing residential mortgage loan packages, or collecting information on behalf of the consumer with regard to a residential mortgage loan. (5)  Residential mortgage loan.—The term “residential mortgage loan” means any consumer credit transaction that is secured by a mortgage, deed of trust, or other equivalent consensual security interest on a dwelling or on residential real property that includes a dwelling, other than a consumer credit transaction under an open end credit plan or, for purposes of sections 1639b and 1639c of this title and section 1638(a) (16), (17), (18), and (19) of this title, and sections 1638(f) and 1640(k) of this title, and any regulations promulgated thereunder, an extension of credit relating to a plan described in section 101(53D) of title 11. (6)  Secretary.—The term “Secretary”, when used in connection with any transaction or person involved with a residential mortgage loan, means the Secretary of Housing and Urban Development. (7)  Servicer.—The term “servicer” has the same meaning as in section 2605(i)(2) of title 12. (ee)   Bona Fide Discount Points and Prepayment Penalties.—For the purposes of determining the amount of points and fees for purposes of subsection (aa), either the amounts described in paragraph (1) or (2) of the following paragraphs, but not both, shall be excluded: (1)   Up to and including 2 bona fide discount points payable by the consumer in connection with the mortgage, but only if the interest rate from which the mortgage’s interest rate will be discounted does not exceed by more than 1 percentage point— (A)   the average prime offer rate, as defined in section 1639c of this title; or (B)   if secured by a personal property loan, the average rate on a loan in connection with which insurance is provided under title I of the National Housing Act (12 U.S.C. 1702 et seq.). (2)   Unless 2 bona fide discount points have been excluded under paragraph (1), up to and including 1 bona fide discount point payable by the consumer in connection with the mortgage, but only if the interest rate from which the mortgage’s interest rate will be discounted does not exceed by more than 2 percentage points— (A)   the average prime offer rate, as defined in section 1639c of this title; or (B)   if secured by a personal property loan, the average rate on a loan in connection with which insurance is provided under title I of the National Housing Act (12 U.S.C. 1702 et seq.).

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§ 1603

CONSUMER CREDIT DISCLOSURE

(3)  For purposes of paragraph (1), the term “bona fide discount points” means loan discount points which are knowingly paid by the consumer for the purpose of reducing, and which in fact result in a bona fide reduction of, the interest rate or time-price differential applicable to the mortgage. (4)   Paragraphs (1) and (2) shall not apply to discount points used to purchase an interest rate reduction unless the amount of the interest rate reduction purchased is reasonably consistent with established industry norms and practices for secondary mortgage market transactions. § 1603.   Exempted transactions This subchapter does not apply to the following: (1)   Credit transactions involving extensions of credit primarily for business, commercial, or agricultural purposes, or to government or governmental agencies or instrumentalities, or to organizations. (2)   Transactions in securities or commodities accounts by a broker-dealer registered with the Securities and Exchange Commission. (3)  Credit transactions, other than those in which a security interest is or will be acquired in real property, or in personal property used or expected to be used as the principal dwelling of the consumer and other than private education loans (as that term is defined in section 1650(a) of this title), in which the total amount financed exceeds $50,000. (4)  Transactions under public utility tariffs, if the Bureau determines that a State regulatory body regulates the charges for the public utility services involved, the charges for delayed payment, and any discount allowed for early payment. (5)   Transactions for which the Bureau, by rule, determines that coverage under this subchapter is not necessary to carry out the purposes of this subchapter. (6)   Repealed. Pub. L. 96–221, title VI, §603(c)(3), Mar. 31, 1980, 94 Stat. 169. (7)   Loans made, insured, or guaranteed pursuant to a program authorized by title IV of the Higher Education Act of 1965 [20 U.S.C. 1070 et seq.]. § 1604.   Disclosure guidelines (a)   Promulgation, contents, etc., of regulations The Bureau shall prescribe regulations to carry out the purposes of this subchapter. Except with respect to the provisions of section 1639 of this title that apply to a mortgage referred to in section 1602(aa) of this title, such regulations may contain such additional requirements, classifications, differentiations, or other provisions, and may provide for such adjustments and exceptions for all or any class of transactions, as in the judgment of the Bureau are necessary or proper to effectuate the purposes of this subchapter, to prevent circumvention or evasion thereof, or to facilitate compliance therewith. (b)   Model disclosure forms and clauses; publication, criteria, compliance, etc. The Bureau shall publish a single, integrated disclosure for mortgage loan transactions (including real estate settlement cost statements) which includes the disclosure requirements of this subchapter in conjunction with the disclosure requirements of the Real Estate Settlement Procedures Act of 1974 [12 U.S.C. 2601 et seq.] that, taken together, may apply to a transaction that is subject to both or either provisions of law. The purpose of such model disclosure shall be to facilitate compliance with the disclosure requirements of this subchapter and the Real Estate Settlement Procedures Act of 1974, and to aid the borrower or lessee in understanding the transaction by utilizing readily understandable language to simplify the technical nature of the disclosures. In devising such forms, the Bureau shall consider the use by creditors or lessors of data processing or similar automated equipment. Nothing in this subchapter may be construed to require a

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Part III Ch. 23–35 Mortgages Part IV Ch. 36–40 Insurance Part V Ch. 41–48A Zoning, etc. Part VI Ch. 49–56 Taxation Part VII Ch. 57–63 Litigation Part VIII Ch. 64–67 L/T Part IX Ch. 68–72 Condos, etc. Index

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creditor or lessor to use any such model form or clause prescribed by the Bureau under this section. A creditor or lessor shall be deemed to be in compliance with the disclosure provisions of this subchapter with respect to other than numerical disclosures if the creditor or lessor (1) uses any appropriate model form or clause as published by the Bureau, or (2) uses any such model form or clause and changes it by (A) deleting any information which is not required by this subchapter, or (B) rearranging the format, if in making such deletion or rearranging the format, the creditor or lessor does not affect the substance, clarity, or meaningful sequence of the disclosure. (c)   Procedures applicable for adoption of model forms and clauses Model disclosure forms and clauses shall be adopted by the Bureau after notice duly given in the Federal Register and an opportunity for public comment in accordance with section 553 of title 5. (d)   Effective dates of regulations containing new disclosure requirements Any regulation of the Bureau, or any amendment or interpretation thereof, requiring any disclosure which differs from the disclosures previously required by this part, part D, or part E or by any regulation of the Bureau promulgated thereunder shall have an effective date of that October 1 which follows by at least six months the date of promulgation, except that the Bureau may at its discretion take interim action by regulation, amendment, or interpretation to lengthen the period of time permitted for creditors or lessors to adjust their forms to accommodate new requirements or shorten the length of time for creditors or lessors to make such adjustments when it makes a specific finding that such action is necessary to comply with the findings of a court or to prevent unfair or deceptive disclosure practices. Notwithstanding the previous sentence, any creditor or lessor may comply with any such newly promulgated disclosure requirements prior to the effective date of the requirements. (e) Disclosure for charitable mortgage loan transactions With respect to a mortgage loan transaction involving a residential mortgage loan offered at 0 percent interest with only bonafide and reasonable fees and that is primarily for charitable purposes by an organization described in section 501(c)(3) of title 26 and exempt from taxation under section 501(a) of such title, forms HUD–1 and GFE (as defined under section 1024.2(b) of title 12, Code of Federal Regulations) together with a disclosure substantially in the form of the Loan Model Form H–2 (as depicted in Appendix H to part 1026 of title 12, Code of Federal Regulations) shall, collectively, be an appropriate model form for purposes of subsection (b) of this section. (f)  Exemption authority (1)  In general The Bureau may exempt, by regulation, from all or part of this subchapter all or any class of transactions, other than transactions involving any mortgage described in section 1602(aa) of this title, for which, in the determination of the Bureau, coverage under all or part of this subchapter does not provide a meaningful benefit to consumers in the form of useful information or protection. (2)   Factors for consideration In determining which classes of transactions to exempt in whole or in part under paragraph (1), the Bureau shall consider the following factors and publish its rationale at the time a proposed exemption is published for comment: (A)   The amount of the loan and whether the disclosures, right of rescission, and other provisions provide a benefit to the consumers who are parties to such transactions, as determined by the Bureau. (B)  The extent to which the requirements of this subchapter complicate, hinder, or make more expensive the credit process for the class of transactions.

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§ 1605

CONSUMER CREDIT DISCLOSURE

(C)   The status of the borrower, including— (i)   any related financial arrangements of the borrower, as determined by the Bureau; (ii)   the financial sophistication of the borrower relative to the type of transaction; and (iii)  the importance to the borrower of the credit, related supporting property, and coverage under this subchapter, as determined by the Bureau; (D)  whether the loan is secured by the principal residence of the consumer; and (E)  whether the goal of consumer protection would be undermined by such an exemption. (g)   Waiver for certain borrowers (1)  In general The Bureau, by regulation, may exempt from the requirements of this subchapter certain credit transactions if— (A)   the transaction involves a consumer— (i)   with an annual earned income of more than $200,000; or (ii)   having net assets in excess of $1,000,000 at the time of the transaction; and (B)   a waiver that is handwritten, signed, and dated by the consumer is first obtained from the consumer. (2)   Adjustments by the Bureau The Bureau, at its discretion, may adjust the annual earned income and net asset requirements of paragraph (1) for inflation. (h)  Deference Notwithstanding any power granted to any Federal agency under this subchapter, the deference that a court affords to the Bureau with respect to a determination made by the Bureau relating to the meaning or interpretation of any provision of this subchapter, other than section 1639e or 1639h of this title, shall be applied as if the Bureau were the only agency authorized to apply, enforce, interpret, or administer the provisions of this subchapter. (i)   Authority of the Board to prescribe rules Notwithstanding subsection (a), the Board shall have authority to prescribe rules under this subchapter with respect to a person described in section 5519(a) of title 12. Regulations prescribed under this subsection may contain such classifications, differentiations, or other provisions, as in the judgment of the Board are necessary or proper to effectuate the purposes of this subchapter, to prevent circumvention or evasion thereof, or to facilitate compliance therewith. § 1605.   Determination of finance charge (a)   “Finance charge” defined Except as otherwise provided in this section, the amount of the finance charge in connection with any consumer credit transaction shall be determined as the sum of all charges, payable directly or indirectly by the person to whom the credit is extended, and imposed directly or indirectly by the creditor as an incident to the extension of credit. The finance charge does not include charges of a type payable in a comparable cash transaction. The finance charge shall not include fees and amounts imposed by third party closing agents (including settlement agents, attorneys, and escrow and title companies) if the creditor does not require the imposition of the charges or the services provided and does not retain the charges. Examples of charges which are included in the finance charge include any of the following types of charges which are applicable:

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Ch. 25

Part III Ch. 23–35 Mortgages Part IV Ch. 36–40 Insurance Part V Ch. 41–48A Zoning, etc. Part VI Ch. 49–56 Taxation Part VII Ch. 57–63 Litigation Part VIII Ch. 64–67 L/T Part IX Ch. 68–72 Condos, etc. Index

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Part II Ch. 15–22 Deeds

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Part I Ch. 1–14 Brokers

(1)   Interest, time price differential, and any amount payable under a point, discount, or other system or additional charges. (2)   Service or carrying charge. (3)   Loan fee, finder’s fee, or similar charge. (4)   Fee for an investigation or credit report. (5)   Premium or other charge for any guarantee or insurance protecting the creditor against the obligor’s default or other credit loss. (6)   Borrower-paid mortgage broker fees, including fees paid directly to the broker or the lender (for delivery to the broker) whether such fees are paid in cash or financed. (b)   Life, accident, or health insurance premiums included in finance charge Charges or premiums for credit life, accident, or health insurance written in connection with any consumer credit transaction shall be included in the finance charges unless (1)   the coverage of the debtor by the insurance is not a factor in the approval by the creditor of the extension of credit, and this fact is clearly disclosed in writing to the person applying for or obtaining the extension of credit; and (2)   in order to obtain the insurance in connection with the extension of credit, the person to whom the credit is extended must give specific affirmative written indication of his desire to do so after written disclosure to him of the cost thereof. (c)  Property damage and liability insurance premiums included in finance charge Charges or premiums for insurance, written in connection with any consumer credit transaction, against loss of or damage to property or against liability arising out of the ownership or use of property, shall be included in the finance charge unless a clear and specific statement in writing is furnished by the creditor to the person to whom the credit is extended, setting forth the cost of the insurance if obtained from or through the creditor, and stating that the person to whom the credit is extended may choose the person through which the insurance is to be obtained. (d)   Items exempted from computation of finance charge in all credit transactions If any of the following items is itemized and disclosed in accordance with the regulations of the Bureau in connection with any transaction, then the creditor need not include that item in the computation of the finance charge with respect to that transaction: (1)   Fees and charges prescribed by law which actually are or will be paid to public officials for determining the existence of or for perfecting or releasing or satisfying any security related to the credit transaction. (2)   The premium payable for any insurance in lieu of perfecting any security interest otherwise required by the creditor in connection with the transaction, if the premium does not exceed the fees and charges described in paragraph (1) which would otherwise be payable. (3)  Any tax levied on security instruments or on documents evidencing indebtedness if the payment of such taxes is a precondition for recording the instrument securing the evidence of indebtedness. (e)   Items exempted from computation of finance charge in extensions of credit secured by an interest in real property The following items, when charged in connection with any extension of credit secured by an interest in real property, shall not be included in the computation of the finance charge with respect to that transaction: (1)   Fees or premiums for title examination, title insurance, or similar purposes.

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CONSUMER CREDIT DISCLOSURE

(2)   Fees for preparation of loan-related documents. (3)   Escrows for future payments of taxes and insurance. (4)   Fees for notarizing deeds and other documents. (5)  Appraisal fees, including fees related to any pest infestation or flood hazard inspections conducted prior to closing. (6)  Credit reports. (f)   Tolerances for accuracy In connection with credit transactions not under an open end credit plan that are secured by real property or a dwelling, the disclosure of the finance charge and other disclosures affected by any finance charge— (1)   shall be treated as being accurate for purposes of this subchapter if the amount disclosed as the finance charge— (A)   does not vary from the actual finance charge by more than $100; or (B)   is greater than the amount required to be disclosed under this subchapter; and (2)   shall be treated as being accurate for purposes of section 1635 of this title if— (A)   except as provided in subparagraph (B), the amount disclosed as the finance charge does not vary from the actual finance charge by more than an amount equal to one-half of one percent of the total amount of credit extended; or (B)  in the case of a transaction, other than a mortgage referred to in section 1602(aa) of this title, which— (i)   is a refinancing of the principal balance then due and any accrued and unpaid finance charges of a residential mortgage transaction as defined in section 1602(w) of this title, or is any subsequent refinancing of such a transaction; and (ii)   does not provide any new consolidation or new advance; if the amount disclosed as the finance charge does not vary from the actual finance charge by more than an amount equal to one percent of the total amount of credit extended. § 1606.   Determination of annual percentage rate (a)   “Annual percentage rate” defined The annual percentage rate applicable to any extension of consumer credit shall be determined, in accordance with the regulations of the Bureau, (1)  in the case of any extension of credit other than under an open end credit plan, as (A)   that nominal annual percentage rate which will yield a sum equal to the amount of the finance charge when it is applied to the unpaid balances of the amount financed, calculated according to the actuarial method of allocating payments made on a debt between the amount financed and the amount of the finance charge, pursuant to which a payment is applied first to the accumulated finance charge and the balance is applied to the unpaid amount financed; or

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Part IV Ch. 36–40 Insurance Part V Ch. 41–48A Zoning, etc. Part VI Ch. 49–56 Taxation Part VII Ch. 57–63 Litigation Part VIII Ch. 64–67 L/T Part IX Ch. 68–72 Condos, etc. Index

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Part III Ch. 23–35 Mortgages

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Part II Ch. 15–22 Deeds

1. So in original.

Part I Ch. 1–14 Brokers

(B)  the rate determined by any method prescribed by the Bureau as a method which materially simplifies computation while retaining reasonable accuracy as compared with the rate determined under subparagraph (A).1 (2)  in the case of any extension of credit under an open end credit plan, as the quotient (expressed as a percentage) of the total finance charge for the period to which it relates divided by the amount upon which the finance charge for that period is based, multiplied by the number of such periods in a year. (b)  Computation of rate of finance charges for balances within a specified range Where a creditor imposes the same finance charge for balances within a specified range, the annual percentage rate shall be computed on the median balance within the range, except that if the Bureau determines that a rate so computed would not be meaningful, or would be materially misleading, the annual percentage rate shall be computed on such other basis as the Bureau may be regulation require. (c)   Allowable tolerances for purposes of compliance with disclosure requirements The disclosure of an annual percentage rate is accurate for the purpose of this subchapter if the rate disclosed is within a tolerance not greater than one-eighth of 1 per centum more or less than the actual rate or rounded to the nearest onefourth of 1 per centum. The Bureau may allow a greater tolerance to simplify compliance where irregular payments are involved. (d)  Use of rate tables or charts having allowable variance from determined rates The Bureau may authorize the use of rate tables or charts which may provide for the disclosure of annual percentage rates which vary from the rate determined in accordance with subsection (a)(1)(A) by not more than such tolerances as the Bureau may allow. The Bureau may not allow a tolerance greater than 8 per centum of that rate except to simplify compliance where irregular payments are involved. (e)  Authorization of tolerances in determining annual percentage rates In the case of creditors determining the annual percentage rate in a manner other than as described in subsection (d), the Bureau may authorize other reasonable tolerances. § 1607.   Administrative enforcement (a)  Enforcing agencies Subject to subtitle B of the Consumer Financial Protection Act of 2010 [12 U.S.C. 5511 et seq.], compliance with the requirements imposed under this subchapter shall be enforced under— (1)   section 8 of the Federal Deposit Insurance Act [12 U.S.C. 1818], by the appropriate Federal banking agency, as defined in section 3(q) of the Federal Deposit Insurance Act (12 U.S.C. 1813(q)), with respect to— (A)   national banks, Federal savings associations, and Federal branches and Federal agencies of foreign banks; (B)  member banks of the Federal Reserve System (other than national banks), branches and agencies of foreign banks (other than Federal branches, Federal agencies, and insured State branches of foreign banks), commercial

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lending companies owned or controlled by foreign banks, and organizations operating under section 25 or 25A of the Federal Reserve Act [12 U.S.C. 601 et seq., 611 et seq.]; and (C)   banks and State savings associations insured by the Federal Deposit Insurance Corporation (other than members of the Federal Reserve System), and insured State branches of foreign banks; (2)  the Federal Credit Union Act [12 U.S.C. 1751 et seq.], by the Director of the National Credit Union Administration, with respect to any Federal credit union; (3)   part A of subtitle VII of title 49, by the Secretary of Transportation, with respect to any air carrier or foreign air carrier subject to that part; (4)   the Packers and Stockyards Act, 1921 [7 U.S.C. 181 et seq.] (except as provided in section 406 of that Act [7 U.S.C. 226, 227]), by the Secretary of Agriculture, with respect to any activities subject to that Act; (5)   the Farm Credit Act of 1971 [12 U.S.C. 2001 et seq.], by the Farm Credit Administration with respect to any Federal land bank, Federal land bank association, Federal intermediate credit bank, or production credit association; and (6)   subtitle E of the Consumer Financial Protection Act of 2010 [12 U.S.C. 5561 et seq.], by the Bureau, with respect to any person subject to this subchapter. (7)   sections 21B and 21C of the Securities Exchange Act of 1934 [15 U.S.C. 78u–2, 78u–3], in the case of a broker or dealer, other than a depository institution, by the Securities and Exchange Commission. (b)  Violations of this subchapter deemed violations of pre-existing statutory requirements; additional agency powers For the purpose of the exercise by any agency referred to in subsection (a) of its powers under any Act referred to in that subsection, a violation of any requirement imposed under this subchapter shall be deemed to be a violation of a requirement imposed under that Act. In addition to its powers under any provision of law specifically referred to in subsection (a), each of the agencies referred to in that subsection may exercise, for the purpose of enforcing compliance with any requirement imposed under this subchapter, any other authority conferred on it by law. (c)   Overall enforcement authority of the Federal Trade Commission Except to the extent that enforcement of the requirements imposed under this subchapter is specifically committed to some other Government agency under any of paragraphs (1) through (5) of subsection (a), and subject to subtitle B of the Consumer Financial Protection Act of 2010 [12 U.S.C. 5511 et seq.], the Federal Trade Commission shall be authorized to enforce such requirements. For the purpose of the exercise by the Federal Trade Commission of its functions and powers under the Federal Trade Commission Act [15 U.S.C. 41 et seq.], a violation of any requirement imposed under this subchapter shall be deemed a violation of a requirement imposed under that Act. All of the functions and powers of the Federal Trade Commission under the Federal Trade Commission Act are available to the Federal Trade Commission to enforce compliance by any person with the requirements under this subchapter, irrespective of whether that person is engaged in commerce or meets any other jurisdictional tests under the Federal Trade Commission Act. (d)   Rules and regulations The authority of the Bureau to issue regulations under this subchapter does not impair the authority of any other agency designated in this section to make rules respecting its own procedures in enforcing compliance with requirements imposed under this subchapter.

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Part VIII Ch. 64–67 L/T Part IX Ch. 68–72 Condos, etc. Index

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Part VII Ch. 57–63 Litigation

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Part VI Ch. 49–56 Taxation

(C)   involved a total failure to disclose either the annual percentage rate or the finance charge, in which event the agency may require such adjustment as it determines to be equitable; or

Part V Ch. 41–48A Zoning, etc.

(B)   involved a disclosed amount which was 10 per centum or less of the amount that should have been disclosed and (i) in cases where the error involved a disclosed finance charge, the annual percentage rate was disclosed correctly, and (ii) in cases where the error involved a disclosed annual percentage rate, the finance charge was disclosed correctly; in which event the agency may require such adjustment as it determines to be equitable;

Part IV Ch. 36–40 Insurance

(A)   resulted from an error involving the disclosure of a fee or charge that would otherwise be excludable in computing the finance charge, including but not limited to violations involving the disclosures described in sections 1605(b), (c) and (d) of this title, in which event the agency may require such remedial action as it determines to be equitable, except that for transactions consummated after two years after March 31, 1980, such an adjustment shall be ordered for violations of section 1605(b) of this title;

Part III Ch. 23–35 Mortgages

(2)   Each agency shall require such an adjustment when it determines that such disclosure error resulted from (A) a clear and consistent pattern or practice of violations, (B) gross negligence, or (C) a willful violation which was intended to mislead the person to whom the credit was extended. Notwithstanding the preceding sentence, except where such disclosure error resulted from a willful violation which was intended to mislead the person to whom credit was extended, an agency need not require such an adjustment if it determines that such disclosure error—

Part II Ch. 15–22 Deeds

(1)  In carrying out its enforcement activities under this section, each agency referred to in subsection (a) or (c), in cases where an annual percentage rate or finance charge was inaccurately disclosed, shall notify the creditor of such disclosure error and is authorized in accordance with the provisions of this subsection to require the creditor to make an adjustment to the account of the person to whom credit was extended, to assure that such person will not be required to pay a finance charge in excess of the finance charge actually disclosed or the dollar equivalent of the annual percentage rate actually disclosed, whichever is lower. For the purposes of this subsection, except where such disclosure error resulted from a willful violation which was intended to mislead the person to whom credit was extended, in determining whether a disclosure error has occurred and in calculating any adjustment, (A) each agency shall apply (i) with respect to the annual percentage rate, a tolerance of one-quarter of 1 percent more or less than the actual rate, determined without regard to section 1606(c) of this title, and (ii) with respect to the finance charge, a corresponding numerical tolerance as generated by the tolerance provided under this subsection for the annual percentage rate; except that (B) with respect to transactions consummated after two years following March 31, 1980, each agency shall apply (i) for transactions that have a scheduled amortization of ten years or less, with respect to the annual percentage rate, a tolerance not to exceed one-quarter of 1 percent more or less than the actual rate, determined without regard to section 1606(c) of this title, but in no event a tolerance of less than the tolerances allowed under section 1606(c) of this title, (ii) for transactions that have a scheduled amortization of more than ten years, with respect to the annual percentage rate, only such tolerances as are allowed under section 1606(c) of this title, and (iii) for all transactions, with respect to the finance charge, a corresponding numerical tolerance as generated by the tolerances provided under this subsection for the annual percentage rate.

Part I Ch. 1–14 Brokers

(e)   Adjustment of finance charges; procedures applicable, coverage, criteria, etc.

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CONSUMER CREDIT DISCLOSURE

(D)   resulted from any other unique circumstance involving clearly technical and nonsubstantive disclosure violations that do not adversely affect information provided to the consumer and that have not misled or otherwise deceived the consumer. In the case of other such disclosure errors, each agency may require such an adjustment. (3)   Notwithstanding paragraph (2), no adjustment shall be ordered— (A)  if it would have a significantly adverse impact upon the safety or soundness of the creditor, but in any such case, the agency may— (i)  require a partial adjustment in an amount which does not have such an impact; or (ii)  require the full adjustment, but permit the creditor to make the required adjustment in partial payments over an extended period of time which the agency considers to be reasonable, if (in the case of an agency referred to in paragraph (1), (2), or (3) of subsection (a)), the agency determines that a partial adjustment or making partial payments over an extended period is necessary to avoid causing the creditor to become undercapitalized pursuant to section 38 of the Federal Deposit Insurance Act [12 U.S.C. 1831o]; (B)  the1 amount of the adjustment would be less than $1, except that if more than one year has elapsed since the date of the violation, the agency may require that such amount be paid into the Treasury of the United States, or (C)   except where such disclosure error resulted from a willful violation which was intended to mislead the person to whom credit was extended, in the case of an open-end credit plan, more than two years after the violation, or in the case of any other extension of credit, as follows: (i)   with respect to creditors that are subject to examination by the agencies referred to in paragraphs (1) through (3) of subsection (a) of this section, except in connection with violations arising from practices identified in the current examination and only in connection with transactions that are consummated after the date of the immediately preceding examination, except that where practices giving rise to violations identified in earlier examinations have not been corrected, adjustments for those violations shall be required in connection with transactions consummated after the date of examination in which such practices were first identified; (ii)   with respect to creditors that are not subject to examination by such agencies, except in connection with transactions that are consummated after May 10, 1978; and (iii)  in no event after the later of (I) the expiration of the life of the credit extension, or (II) two years after the agreement to extend credit was consummated. (4)(A)   Notwithstanding any other provision of this section, an adjustment under this subsection may be required by an agency referred to in subsection (a) or (c) only by an order issued in accordance with cease and desist procedures provided by the provision of law referred to in such subsections. (B)  In case of an agency which is not authorized to conduct cease and desist proceedings, such an order may be issued after an agency hearing on the record conducted at least thirty but not more than sixty days after notice of the alleged violation is served on the creditor. Such a hearing shall be deemed to be a hearing which is subject to the provisions of section 8(h) of

1. So in original. Probably should be preceded by “if”.

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§ 1608.   Views of other agencies

§ 1609.   Repealed. Pub. L. 94–239, §3(b)(1), Mar. 23, 1976, 90 Stat. 253 § 1610.   Effect on other laws (a)   Inconsistent provisions; procedures applicable for determination

Part IX Ch. 68–72 Condos, etc. Index

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Part VIII Ch. 64–67 L/T

213

Part VII Ch. 57–63 Litigation

(2)   Upon its own motion or upon the request of any creditor, State, or other interested party which is submitted in accordance with procedures prescribed in regulations of the Bureau, the Bureau shall determine whether any disclosure required under the law of any State is substantially the same in meaning as a disclosure required under this subchapter. If the Bureau determines that a State-required disclosure is substantially the same in meaning as a disclosure required by this subchapter, then creditors located in that State may make such disclosure in compliance with such State law in lieu of the disclosure required by this subchapter, except that the annual percentage rate and finance charge shall be disclosed as required by section 1632 of this title, and such State-required disclosure may not be made in lieu of the disclosures applicable to certain mortgages under section 1639 of this title.

Part VI Ch. 49–56 Taxation

(1)   Except as provided in subsection (e), this part and parts B and C, do not annul, alter, or affect the laws of any State relating to the disclosure of information in connection with credit transactions, except to the extent that those laws are inconsistent with the provisions of this subchapter, and then only to the extent of the inconsistency. Upon its own motion or upon the request of any creditor, State, or other interested party which is submitted in accordance with procedures prescribed in regulations of the Bureau, the Bureau shall determine whether any such inconsistency exists. If the Bureau determines that a State-required disclosure is inconsistent, creditors located in that State may not make disclosures using the inconsistent term or form, and shall incur no liability under the law of that State for failure to use such term or form, notwithstanding that such determination is subsequently amended, rescinded, or determined by judicial or other authority to be invalid for any reason.

Part V Ch. 41–48A Zoning, etc.

In the exercise of its functions under this subchapter, the Bureau may obtain upon requests the views of any other Federal agency which, in the judgment of the Bureau, exercises regulatory or supervisory functions with respect to any class of creditors subject to this subchapter.

Part IV Ch. 36–40 Insurance

(7)   Notwithstanding the second sentence of subsection (e)(1), subsection (e) (3)(C)(i), and subsection (e)(3)(C)(ii), each agency referred to in subsection (a) or (c) shall require an adjustment for an annual percentage rate disclosure error that exceeds a tolerance of one quarter of one percent less than the actual rate, determined without regard to section 1606(c) of this title, with respect to any transaction consummated between January 1, 1977, and March 31, 1980.

Part III Ch. 23–35 Mortgages

(6)  A creditor shall not be subject to an order to make an adjustment, if within sixty days after discovering a disclosure error, whether pursuant to a final written examination report or through the creditor’s own procedures, the creditor notifies the person concerned of the error and adjusts the account so as to assure that such person will not be required to pay a finance charge in excess of the finance charge actually disclosed or the dollar equivalent of the annual percentage rate actually disclosed, whichever is lower.

Part II Ch. 15–22 Deeds

(5)   Except as otherwise specifically provided in this subsection and notwithstanding any provision of law referred to in subsection (a) or (c), no agency referred to in subsection (a) or (c) may require a creditor to make dollar adjustments for errors in any requirements under this subchapter, except with regard to the requirements of section 1666d of this title.

Part I Ch. 1–14 Brokers

the Federal Deposit Insurance Act [12 U.S.C. 1818(h)] and shall be subject to judicial review as provided therein.

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§ 1611

CONSUMER CREDIT DISCLOSURE

(b)   State credit charge statutes Except as provided in section 1639 of this title, this subchapter does not otherwise annul, alter or affect in any manner the meaning, scope or applicability of the laws of any State, including, but not limited to, laws relating to the types, amounts or rates of charges, or any element or elements of charges, permissible under such laws in connection with the extension or use of credit, nor does this subchapter extend the applicability of those laws to any class of persons or transactions to which they would not otherwise apply. The provisions of section 1639 of this title do not annul, alter, or affect the applicability of the laws of any State or exempt any person subject to the provisions of section 1639 of this title from complying with the laws of any State, with respect to the requirements for mortgages referred to in section 1602(aa) of this title, except to the extent that those State laws are inconsistent with any provisions of section 1639 of this title, and then only to the extent of the inconsistency. (c)   Disclosure as evidence In any action or proceeding in any court involving a consumer credit sale, the disclosure of the annual percentage rate as required under this subchapter in connection with that sale may not be received as evidence that the sale was a loan or any type of transaction other than a credit sale. (d)   Contract or other obligations under State or Federal law Except as specified in sections 1635, 1640, and 1666e of this title, this subchapter and the regulations issued thereunder do not affect the validity or enforceability of any contract or obligation under State or Federal law. (e)  Certain credit and charge card application and solicitation disclosure provisions The provisions of subsection (c) of section 1632 of this title and subsections (c), (d), (e), and (f) of section 1637 of this title shall supersede any provision of the law of any State relating to the disclosure of information in any credit or charge card application or solicitation which is subject to the requirements of section 1637(c) of this title or any renewal notice which is subject to the requirements of section 1637(d) of this title, except that any State may employ or establish State laws for the purpose of enforcing the requirements of such sections. § 1611.   Criminal liability for willful and knowing violation Whoever willfully and knowingly (1)  gives false or inaccurate information or fails to provide information which he is required to disclose under the provisions of this subchapter or any regulation issued thereunder, (2)   uses any chart or table authorized by the Bureau under section 1606 of this title in such a manner as to consistently understate the annual percentage rate determined under section 1606(a)(1)(A) of this title, or (3)  otherwise fails to comply with any requirement imposed under this subchapter, shall be fined not more than $5,000 or imprisoned not more than one year, or both. § 1612.   Effect on government agencies (a)  Consultation requirements respecting compliance of credit instruments issued to participating creditor Any department or agency of the United States which administers a credit program in which it extends, insures, or guarantees consumer credit and in which it provides instruments to a creditor which contain any disclosures required by this subchapter shall, prior to the issuance or continued use of such instruments, consult with the Bureau to assure that such instruments comply with this subchapter.

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No civil or criminal penalty provided under this subchapter for any violation thereof may be imposed upon the United States or any department or agency thereof, or upon any State or political subdivision thereof, or any agency of any State or political subdivision.

(d)  Applicability of State penalties to violations by participating creditor

Each year the Bureau shall make a report to the Congress concerning the administration of its functions under this subchapter, including such recommendations as the Bureau deems necessary or appropriate. In addition, each report of the Bureau shall include its assessment of the extent to which compliance with the requirements imposed under this subchapter is being achieved.

§ 1615.  Prohibition on use of “Rule of 78’s” in connection with mortgage refinancings and other consumer loans

Part VI Ch. 49–56 Taxation

§ 1614.  Repealed. Pub. L. 96–221, title VI, §616(b), Mar. 31, 1980, 94 Stat. 182

Part V Ch. 41–48A Zoning, etc.

§ 1613.   Annual reports to Congress by Bureau

Part IV Ch. 36–40 Insurance

A creditor participating in a credit program administered, insured, or guaranteed by any department or agency of the United States shall not be held liable for a civil or criminal penalty under the laws of any State (other than laws determined under section 1610 of this title to be inconsistent with this subchapter) for any technical or procedural failure, such as a failure to use a specific form, to make information available at a specific place on an instrument, or to use a specific typeface, as required by State law, which is caused by the use of an instrument required to be used by such department or agency.

Part III Ch. 23–35 Mortgages

A creditor participating in a credit program administered, insured, or guaranteed by any department or agency or the United States shall not be held liable for a civil or criminal penalty under this subchapter in any case in which the violation results from the use of an instrument required by any such department or agency.

Part II Ch. 15–22 Deeds

(c)   Inapplicability of Federal civil or criminal penalties to participating creditor where violating instrument issued by United States

Part I Ch. 1–14 Brokers

(b)  Inapplicability of Federal civil or criminal penalties to Federal, State, and local agencies

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PART III

(a)   Prompt refund of unearned interest required If a consumer prepays in full the financed amount under any consumer credit transaction, the creditor shall promptly refund any unearned portion of the interest charge to the consumer. (2)   Exception for refund of de minimus1 amount

(3)   Applicability to refinanced transactions and acceleration by the creditor

(A)   any prepayment made in connection with the refinancing, consolidation, or restructuring of the transaction; and

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Index

1. So in original. Probably should be “de minimis”.

Part IX Ch. 68–72 Condos, etc.

This subsection shall apply with respect to any prepayment of a consumer credit transaction described in paragraph (1) without regard to the manner or the reason for the prepayment, including—

Part VIII Ch. 64–67 L/T

No refund shall be required under paragraph (1) with respect to the prepayment of any consumer credit transaction if the total amount of the refund would be less than $1.

Part VII Ch. 57–63 Litigation

(1)  In general

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§ 1616

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(B)   any prepayment made as a result of the acceleration of the obligation to repay the amount due with respect to the transaction. (b)   Use of “Rule of 78’s” prohibited For the purpose of calculating any refund of interest required under subsection (a) for any precomputed consumer credit transaction of a term exceeding 61 months which is consummated after September 30, 1993, the creditor shall compute the refund based on a method which is at least as favorable to the consumer as the actuarial method. (c)   Statement of prepayment amount (1)  In general Before the end of the 5-day period beginning on the date an oral or written request is received by a creditor from a consumer for the disclosure of the amount due on any precomputed consumer credit account, the creditor or assignee shall provide the consumer with a statement of— (A)   the amount necessary to prepay the account in full; and (B)  if the amount disclosed pursuant to subparagraph (A) includes an amount which is required to be refunded under this section with respect to such prepayment, the amount of such refund. (2)   Written statement required if request is in writing If the customer’s request is in writing, the statement under paragraph (1) shall be in writing. (3)   1 free annual statement A consumer shall be entitled to obtain 1 statement under paragraph (1) each year without charge. (4)   Additional statements subject to reasonable fees Any creditor may impose a reasonable fee to cover the cost of providing any statement under paragraph (1) to any consumer in addition to the 1 free annual statement required under paragraph (3) if the amount of the charge for such additional statement is disclosed to the consumer before furnishing such statement. (d)  Definitions For the purpose of this section— (1)  Actuarial method The term “actuarial method” means the method of allocating payments made on a debt between the amount financed and the finance charge pursuant to which a payment is applied first to the accumulated finance charge and any remainder is subtracted from, or any deficiency is added to, the unpaid balance of the amount financed. (2)  Consumer, credit The terms “consumer” and “creditor” have the meanings given to such terms in section 1602 of this title. (3)  Creditor The term “creditor”— (A)   has the meaning given to such term in section 1602 of this title; and (B)   includes any assignee of any creditor with respect to credit extended in connection with any consumer credit transaction and any subsequent assignee with respect to such credit. § 1616.   Board review of consumer credit plans and regulations (a)  Required review Not later than 2 years after the effective date of this Act and every 2 years thereafter, except as provided in subsection (c)(2), the Board shall conduct a re-

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Part III Ch. 23–35 Mortgages Part IV Ch. 36–40 Insurance Part V Ch. 41–48A Zoning, etc. Part VI Ch. 49–56 Taxation Part VII Ch. 57–63 Litigation Part VIII Ch. 64–67 L/T Part IX Ch. 68–72 Condos, etc. Index

gtb-parealestate22-all.indb 217

Part II Ch. 15–22 Deeds

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view, within the limits of its existing resources available for reporting purposes, of the consumer credit card market, including— (1)  the terms of credit card agreements and the practices of credit card issuers; (2)   the effectiveness of disclosure of terms, fees, and other expenses of credit card plans; (3)   the adequacy of protections against unfair or deceptive acts or practices relating to credit card plans; and (4)   whether or not, and to what extent, the implementation of this Act and the amendments made by this Act has affected— (A)   cost and availability of credit, particularly with respect to non-prime borrowers; (B)   the safety and soundness of credit card issuers; (C)   the use of risk-based pricing; or (D)   credit card product innovation. (b)   Solicitation of public comment In connection with conducting the review required by subsection (a), the Board shall solicit comment from consumers, credit card issuers, and other interested parties, such as through hearings or written comments. (c)  Regulations (1)  Notice Following the review required by subsection (a), the Board shall publish a notice in the Federal Register that— (A)   summarizes the review, the comments received from the public solicitation, and other evidence gathered by the Board, such as through consumer testing or other research; and (B)  either— (i)   proposes new or revised regulations or interpretations to update or revise disclosures and protections for consumer credit cards, as appropriate; or (ii)  states the reason for the determination of the Board that new or revised regulations are not necessary. (2)  Revision of review period following material revision of regulations In the event that the Board materially revises regulations on consumer credit card plans, a review need not be conducted until 2 years after the effective date of the revised regulations, which thereafter shall be treated as the new date for the biennial review required by subsection (a). (d)   Board report to the Congress The Board shall report to Congress not less frequently than every 2 years, except as provided in subsection (c)(2), on the status of its most recent review, its efforts to address any issues identified from the review, and any recommendations for legislation. (e)  Additional reporting The Federal banking agencies (as that term is defined in section 1813 of title 12) and the Federal Trade Commission shall provide annually to the Board, and the Board shall include in its annual report to Congress under section 247 of title 12, information about the supervisory and enforcement activities of the agencies with respect to compliance by credit card issuers with applicable Federal consumer protection statutes and regulations, including—

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§ 1631

CONSUMER CREDIT DISCLOSURE

(1)   this Act, the amendments made by this Act, and regulations prescribed under this Act and such amendments; and (2)  section 5 of the Federal Trade Commission Act [15 U.S.C. 45], and regulations prescribed under the Federal Trade Commission Act [15 U.S.C. 41 et seq.], including part 227 of title 12 of the Code of Federal Regulations, as prescribed by the Board (referred to as “Regulation AA”).

PART B—CREDIT TRANSACTIONS § 1631.   Disclosure requirements (a)   Duty of creditor or lessor respecting one or more than one obligor Subject to subsection (b), a creditor or lessor shall disclose to the person who is obligated on a consumer lease or a consumer credit transaction the information required under this subchapter. In a transaction involving more than one obligor, a creditor or lessor, except in a transaction under section 1635 of this title, need not disclose to more than one of such obligors if the obligor given disclosure is a primary obligor. (b)   Creditor or lessor required to make disclosure If a transaction involves one creditor as defined in section 1602(f) of this title, or one lessor as defined in section 1667(3) of this title, such creditor or lessor shall make the disclosures. If a transaction involves more than one creditor or lessor, only one creditor or lessor shall by required to make the disclosures. The Bureau shall by regulation specify which creditor or lessor shall make the disclosures. (c)   Estimates as satisfying statutory requirements; basis of disclosure for per diem interest The Bureau may provide by regulation that any portion of the information required to be disclosed by this subchapter may be given in the form of estimates where the provider of such information is not in a position to know exact information. In the case of any consumer credit transaction a portion of the interest on which is determined on a per diem basis and is to be collected upon the consummation of such transaction, any disclosure with respect to such portion of interest shall be deemed to be accurate for purposes of this subchapter if the disclosure is based on information actually known to the creditor at the time that the disclosure documents are being prepared for the consummation of the transaction. (d)   Tolerances for numerical disclosures The Bureau shall determine whether tolerances for numerical disclosures other than the annual percentage rate are necessary to facilitate compliance with this subchapter, and if it determines that such tolerances are necessary to facilitate compliance, it shall by regulation permit disclosures within such tolerances. The Bureau shall exercise its authority to permit tolerances for numerical disclosures other than the annual percentage rate so that such tolerances are narrow enough to prevent such tolerances from resulting in misleading disclosures or disclosures that circumvent the purposes of this subchapter. § 1632.   Form of disclosure; additional information (a)  Information clearly and conspicuously disclosed; “annual percentage rate” and “finance charge”; order of disclosures and use of different terminology Information required by this subchapter shall be disclosed clearly and conspicuously, in accordance with regulations of the Bureau. The terms “annual percentage rate” and “finance charge” shall be disclosed more conspicuously than other terms, data, or information provided in connection with a transaction,

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except information relating to the identify of the creditor. Except as provided in subsection (c), regulations of the Bureau need not require that disclosures pursuant to this subchapter be made in the order set forth in this subchapter and, except as otherwise provided, may permit the use of terminology different from that employed in this subchapter if it conveys substantially the same meaning. (b)   Optional information by creditor or lessor Any creditor or lessor may supply additional information or explanation with any disclosures required under parts D and E and, except as provided in sections 1637a(b)(3) and 1638(b)(1) of this title, under this part. (c)  Tabular format required for certain disclosures under section 1637(c) (1)  In general The information described in paragraphs (1)(A), (3)(B)(i)(I), (4)(A), and (4) (C)(i)(I) of section 1637(c) of this title shall be— (A)   disclosed in the form and manner which the Bureau shall prescribe by regulations; and (B)   placed in a conspicuous and prominent location on or with any written application, solicitation, or other document or paper with respect to which such disclosure is required. (2)  Tabular format (A)   Form of table to be prescribed In the regulations prescribed under paragraph (1)(A) of this subsection, the Bureau shall require that the disclosure of such information shall, to the extent the Bureau determines to be practicable and appropriate, be in the form of a table which— (i)   contains clear and concise headings for each item of such information; and (ii)   provides a clear and concise form for stating each item of information required to be disclosed under each such heading. (B)   Bureau discretion in prescribing order and wording of table In prescribing the form of the table under subparagraph (A), the Bureau may— (i)   list the items required to be included in the table in a different order than the order in which such items are set forth in paragraph (1)(A) or (4) (A) of section 1637(c) of this title; and (ii)   subject to subparagraph (C), employ terminology which is different than the terminology which is employed in section 1637(c) of this title if such terminology conveys substantially the same meaning. (C)  Grace period Either the heading or the statement under the heading which relates to the time period referred to in section 1637(c)(1)(A)(iii) of this title shall contain the term “grace period”. (d)   Additional electronic disclosures (1)  Posting agreements Each creditor shall establish and maintain an Internet site on which the creditor shall post the written agreement between the creditor and the consumer for each credit card account under an open-end consumer credit plan. (2)   Creditor to provide contracts to the Bureau Each creditor shall provide to the Bureau, in electronic format, the consumer credit card agreements that it publishes on its Internet site.

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§ 1633

CONSUMER CREDIT DISCLOSURE

(3)  Record repository The Bureau shall establish and maintain on its publicly available Internet site a central repository of the consumer credit card agreements received from creditors pursuant to this subsection, and such agreements shall be easily accessible and retrievable by the public. (4)  Exception This subsection shall not apply to individually negotiated changes to contractual terms, such as individually modified workouts or renegotiations of amounts owed by a consumer under an open end consumer credit plan. (5)  Regulations The Bureau, in consultation with the other Federal banking agencies (as that term is defined in section 1681a of this title) and the Bureau,1 may promulgate regulations to implement this subsection, including specifying the format for posting the agreements on the Internet sites of creditors and establishing exceptions to paragraphs (1) and (2), in any case in which the administrative burden outweighs the benefit of increased transparency, such as where a credit card plan has a de minimis number of consumer account holders. § 1633.   Exemption for State-regulated transactions The Bureau shall by regulation exempt from the requirements of this part any class of credit transactions within any State if it determines that under the law of that State that class of transactions is subject to requirements substantially similar to those imposed under this part, and that there is adequate provision for enforcement. § 1634.   Effect of subsequent occurrence If information disclosed in accordance with this part is subsequently rendered inaccurate as the result of any act, occurrence, or agreement subsequent to the delivery of the required disclosures, the inaccuracy resulting therefrom does not constitute a violation of this part. § 1635.   Right of rescission as to certain transactions (a)   Disclosure of obligor’s right to rescind Except as otherwise provided in this section, in the case of any consumer credit transaction (including opening or increasing the credit limit for an open end credit plan) in which a security interest, including any such interest arising by operation of law, is or will be retained or acquired in any property which is used as the principal dwelling of the person to whom credit is extended, the obligor shall have the right to rescind the transaction until midnight of the third business day following the consummation of the transaction or the delivery of the information and rescission forms required under this section together with a statement containing the material disclosures required under this subchapter, whichever is later, by notifying the creditor, in accordance with regulations of the Bureau, of his intention to do so. The creditor shall clearly and conspicuously disclose, in accordance with regulations of the Bureau, to any obligor in a transaction subject to this section the rights of the obligor under this section. The creditor shall also provide, in accordance with regulations of the Bureau, appropriate forms for the obligor to exercise his right to rescind any transaction subject to this section. (b)   Return of money or property following rescission When an obligor exercises his right to rescind under subsection (a), he is not liable for any finance or other charge, and any security interest given by the obligor, including any such interest arising by operation of law, becomes void upon such a rescission. Within 20 days after receipt of a notice of rescission,

1. So in original.

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the creditor shall return to the obligor any money or property given as earnest money, downpayment, or otherwise, and shall take any action necessary or appropriate to reflect the termination of any security interest created under the transaction. If the creditor has delivered any property to the obligor, the obligor may retain possession of it. Upon the performance of the creditor’s obligations under this section, the obligor shall tender the property to the creditor, except that if return of the property in kind would be impracticable or inequitable, the obligor shall tender its reasonable value. Tender shall be made at the location of the property or at the residence of the obligor, at the option of the obligor. If the creditor does not take possession of the property within 20 days after tender by the obligor, ownership of the property vests in the obligor without obligation on his part to pay for it. The procedures prescribed by this subsection shall apply except when otherwise ordered by a court. (c)   Rebuttable presumption of delivery of required disclosures Notwithstanding any rule of evidence, written acknowledgment of receipt of any disclosures required under this subchapter by a person to whom information, forms, and a statement is required to be given pursuant to this section does no more than create a rebuttable presumption of delivery thereof. (d)   Modification and waiver of rights The Bureau may, if it finds that such action is necessary in order to permit homeowners to meet bona fide personal financial emergencies, prescribe regulations authorizing the modification or waiver of any rights created under this section to the extent and under the circumstances set forth in those regulations. (e)   Exempted transactions; reapplication of provisions This section does not apply to— (1)   a residential mortgage transaction as defined in section 1602(w) of this title; (2)   a transaction which constitutes a refinancing or consolidation (with no new advances) of the principal balance then due and any accrued and unpaid finance charges of an existing extension of credit by the same creditor secured by an interest in the same property; (3)   a transaction in which an agency of a State is the creditor; or (4)   advances under a preexisting open end credit plan if a security interest has already been retained or acquired and such advances are in accordance with a previously established credit limit for such plan. (f)   Time limit for exercise of right An obligor’s right of rescission shall expire three years after the date of consummation of the transaction or upon the sale of the property, whichever occurs first, notwithstanding the fact that the information and forms required under this section or any other disclosures required under this part have not been delivered to the obligor, except that if (1) any agency empowered to enforce the provisions of this subchapter institutes a proceeding to enforce the provisions of this section within three years after the date of consummation of the transaction, (2) such agency finds a violation of this section, and (3) the obligor’s right to rescind is based in whole or in part on any matter involved in such proceeding, then the obligor’s right of rescission shall expire three years after the date of consummation of the transaction or upon the earlier sale of the property, or upon the expiration of one year following the conclusion of the proceeding, or any judicial review or period for judicial review thereof, whichever is later. (g)  Additional relief In any action in which it is determined that a creditor has violated this section, in addition to rescission the court may award relief under section 1640 of this title for violations of this subchapter not relating to the right to rescind.

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§ 1636

CONSUMER CREDIT DISCLOSURE

(h)   Limitation on rescission An obligor shall have no rescission rights arising solely from the form of written notice used by the creditor to inform the obligor of the rights of the obligor under this section, if the creditor provided the obligor the appropriate form of written notice published and adopted by the Bureau, or a comparable written notice of the rights of the obligor, that was properly completed by the creditor, and otherwise complied with all other requirements of this section regarding notice. (i)   Rescission rights in foreclosure (1)  In general Notwithstanding section 1649 of this title, and subject to the time period provided in subsection (f), in addition to any other right of rescission available under this section for a transaction, after the initiation of any judicial or nonjudicial foreclosure process on the primary dwelling of an obligor securing an extension of credit, the obligor shall have a right to rescind the transaction equivalent to other rescission rights provided by this section, if— (A)  a mortgage broker fee is not included in the finance charge in accordance with the laws and regulations in effect at the time the consumer credit transaction was consummated; or (B)  the form of notice of rescission for the transaction is not the appropriate form of written notice published and adopted by the Bureau or a comparable written notice, and otherwise complied with all the requirements of this section regarding notice. (2)   Tolerance for disclosures Notwithstanding section 1605(f) of this title, and subject to the time period provided in subsection (f), for the purposes of exercising any rescission rights after the initiation of any judicial or nonjudicial foreclosure process on the principal dwelling of the obligor securing an extension of credit, the disclosure of the finance charge and other disclosures affected by any finance charge shall be treated as being accurate for purposes of this section if the amount disclosed as the finance charge does not vary from the actual finance charge by more than $35 or is greater than the amount required to be disclosed under this subchapter. (3)   Right of recoupment under State law Nothing in this subsection affects a consumer’s right of rescission in recoupment under State law. (4)  Applicability This subsection shall apply to all consumer credit transactions in existence or consummated on or after September 30, 1995. § 1636.  Repealed. Pub. L. 96–221, title VI, §614(e)(1), Mar. 31, 1980, 94 Stat. 180 § 1637.   Open end consumer credit plans (a)   Required disclosures by creditor Before opening any account under an open end consumer credit plan, the creditor shall disclose to the person to whom credit is to be extended each of the following items, to the extent applicable: (1)   The conditions under which a finance charge may be imposed, including the time period (if any) within which any credit extended may be repaid without incurring a finance charge, except that the creditor may, at his election and without disclosure, impose no such finance charge if payment is received after the termination of such time period. If no such time period is provided, the creditor shall disclose such fact. (2)  The method of determining the balance upon which a finance charge will be imposed.

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(4)   Where one or more periodic rates may be used to compute the finance charge, each such rate, the range of balances to which it is applicable, and the corresponding nominal annual percentage rate determined by multiplying the periodic rate by the number of periods in a year.

(8)  In the case of any account under an open end consumer credit plan which provides for any extension of credit which is secured by the consumer’s principal dwelling, any information which—

Part IV Ch. 36–40 Insurance

(7)   A statement, in a form prescribed by regulations of the Bureau of the protection provided by sections 1666 and 1666i of this title to an obligor and the creditor’s responsibilities under sections 1666a and 1666i of this title. With respect to one billing cycle per calendar year, at intervals of not less than six months or more than eighteen months, the creditor shall transmit such statement to each obligor to whom the creditor is required to transmit a statement pursuant to subsection (b) for such billing cycle.

Part III Ch. 23–35 Mortgages

(6)   In cases where the credit is or will be secured, a statement that a security interest has been or will be taken in (A) the property purchased as part of the credit transaction, or (B) property not purchased as part of the credit transaction identified by item or type.

Part II Ch. 15–22 Deeds

(5)   Identification of other charges which may be imposed as part of the plan, and their method of computation, in accordance with regulations of the Bureau.

Part I Ch. 1–14 Brokers

(3)   The method of determining the amount of the finance charge, including any minimum or fixed amount imposed as a finance charge.

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PART III

(A)   is required to be disclosed under section 1637a(a) of this title; and

(b)   Statement required with each billing cycle

(1)   The outstanding balance in the account at the beginning of the statement period.

Index

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(3)   The total amount credited to the account during the period.

Part VII Ch. 57–63 Litigation

(2)   The amount and date of each extension of credit during the period, and a brief identification, on or accompanying the statement of each extension of credit in a form prescribed by the Bureau sufficient to enable the obligor either to identify the transaction or to relate it to copies of sales vouchers or similar instruments previously furnished, except that a creditor’s failure to disclose such information in accordance with this paragraph shall not be deemed a failure to comply with this part or this subchapter if (A) the creditor maintains procedures reasonably adapted to procure and provide such information, and (B) the creditor responds to and treats any inquiry for clarification or documentation as a billing error and an erroneously billed amount under section 1666 of this title. In lieu of complying with the requirements of the previous sentence, in the case of any transaction in which the creditor and seller are the same person, as defined by the Bureau, and such person’s open end credit plan has fewer than 15,000 accounts, the creditor may elect to provide only the amount and date of each extension of credit during the period and the seller’s name and location where the transaction took place if (A) a brief identification of the transaction has been previously furnished, and (B) the creditor responds to and treats any inquiry for clarification or documentation as a billing error and an erroneously billed amount under section 1666 of this title.

Part VI Ch. 49–56 Taxation

The creditor of any account under an open end consumer credit plan shall transmit to the obligor, for each billing cycle at the end of which there is an outstanding balance in that account or with respect to which a finance charge is imposed, a statement setting forth each of the following items to the extent applicable:

Part V Ch. 41–48A Zoning, etc.

(B)  the Bureau determines is not described in any other paragraph of this subsection.

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§ 1637

CONSUMER CREDIT DISCLOSURE

(4)   The amount of any finance charge added to the account during the period, itemized to show the amounts, if any, due to the application of percentage rates and the amount, if any, imposed as a minimum or fixed charge. (5)   Where one or more periodic rates may be used to compute the finance charge, each such rate, the range of balances to which it is applicable, and, unless the annual percentage rate (determined under section 1606(a)(2) of this title) is required to be disclosed pursuant to paragraph (6), the corresponding nominal annual percentage rate determined by multiplying the periodic rate by the number of periods in a year. (6)   Where the total finance charge exceeds 50 cents for a monthly or longer billing cycle, or the pro rata part of 50 cents for a billing cycle shorter than monthly, the total finance charge expressed as an annual percentage rate (determined under section 1606(a)(2) of this title), except that if the finance charge is the sum of two or more products of a rate times a portion of the balance, the creditor may, in lieu of disclosing a single rate for the total charge, disclose each such rate expressed as an annual percentage rate, and the part of the balance to which it is applicable. (7)   The balance on which the finance charge was computed and a statement of how the balance was determined. If the balance is determined without first deducting all credits during the period, that fact and the amount of such payments shall also be disclosed. (8)   The outstanding balance in the account at the end of the period. (9)   The date by which or the period (if any) within which, payment must be made to avoid additional finance charges, except that the creditor may, at his election and without disclosure, impose no such additional finance charge if payment is received after such date or the termination of such period. (10)  The address to be used by the creditor for the purpose of receiving billing inquiries from the obligor. (11)(A)  A written statement in the following form: “Minimum Payment Warning: Making only the minimum payment will increase the amount of interest you pay and the time it takes to repay your balance.”, or such similar statement as is established by the Bureau pursuant to consumer testing. (B)   Repayment information that would apply to the outstanding balance of the consumer under the credit plan, including— (i)   the number of months (rounded to the nearest month) that it would take to pay the entire amount of that balance, if the consumer pays only the required minimum monthly payments and if no further advances are made; (ii)   the total cost to the consumer, including interest and principal payments, of paying that balance in full, if the consumer pays only the required minimum monthly payments and if no further advances are made; (iii)   the monthly payment amount that would be required for the consumer to eliminate the outstanding balance in 36 months, if no further advances are made, and the total cost to the consumer, including interest and principal payments, of paying that balance in full if the consumer pays the balance over 36 months; and (iv)  a toll-free telephone number at which the consumer may receive information about accessing credit counseling and debt management services. (C)(i)   Subject to clause (ii), in making the disclosures under subparagraph (B), the creditor shall apply the interest rate or rates in effect on the date on which the disclosure is made until the date on which the balance would be paid in full. (ii)   If the interest rate in effect on the date on which the disclosure is made is a temporary rate that will change under a contractual provision

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applying an index or formula for subsequent interest rate adjustment, the creditor shall apply the interest rate in effect on the date on which the disclosure is made for as long as that interest rate will apply under that contractual provision, and then apply an interest rate based on the index or formula in effect on the applicable billing date. (D)   All of the information described in subparagraph (B) shall— (i)   be disclosed in the form and manner which the Bureau shall prescribe, by regulation, and in a manner that avoids duplication; and (ii)  be placed in a conspicuous and prominent location on the billing statement. (E)  In the regulations prescribed under subparagraph (D), the Bureau shall require that the disclosure of such information shall be in the form of a table that— (i)   contains clear and concise headings for each item of such information; and (ii)   provides a clear and concise form stating each item of information required to be disclosed under each such heading. (F)  In prescribing the form of the table under subparagraph (E), the Bureau shall require that— (i)   all of the information in the table, and not just a reference to the table, be placed on the billing statement, as required by this paragraph; and (ii)   the items required to be included in the table shall be listed in the order in which such items are set forth in subparagraph (B). (G)   In prescribing the form of the table under subparagraph (D), the Bureau shall employ terminology which is different than the terminology which is employed in subparagraph (B), if such terminology is more easily understood and conveys substantially the same meaning. (12)   Requirements relating to late payment deadlines and penalties.— (A)  Late payment deadline required to be disclosed.—In the case of a credit card account under an open end consumer credit plan under which a late fee or charge may be imposed due to the failure of the obligor to make payment on or before the due date for such payment, the periodic statement required under subsection (b) with respect to the account shall include, in a conspicuous location on the billing statement, the date on which the payment is due or, if different, the date on which a late payment fee will be charged, together with the amount of the fee or charge to be imposed if payment is made after that date. (B)  Disclosure of increase in interest rates for late payments.—If 1 or more late payments under an open end consumer credit plan may result in an increase in the annual percentage rate applicable to the account, the statement required under subsection (b) with respect to the account shall include conspicuous notice of such fact, together with the applicable penalty annual percentage rate, in close proximity to the disclosure required under subparagraph (A) of the date on which payment is due under the terms of the account. (C)   Payments at local branches.—If the creditor, in the case of a credit card account referred to in subparagraph (A), is a financial institution which maintains branches or offices at which payments on any such account are accepted from the obligor in person, the date on which the obligor makes a payment on the account at such branch or office shall be considered to be the date on which the payment is made for purposes of determining whether a late fee or charge may be imposed due to the failure of the obligor to make payment on or before the due date for such payment.

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§ 1637

CONSUMER CREDIT DISCLOSURE

(c)  Disclosure in credit and charge card applications and solicitations (1)   Direct mail applications and solicitations (A)   Information in tabular format Any application to open a credit card account for any person under an open end consumer credit plan, or a solicitation to open such an account without requiring an application, that is mailed to consumers shall disclose the following information, subject to subsection (e) and section 1632(c) of this title: (i)   Annual percentage rates (I)  Each annual percentage rate applicable to extensions of credit under such credit plan. (II)  Where an extension of credit is subject to a variable rate, the fact that the rate is variable, the annual percentage rate in effect at the time of the mailing, and how the rate is determined. (III)  Where more than one rate applies, the range of balances to which each rate applies. (ii)   Annual and other fees (I)  Any annual fee, other periodic fee, or membership fee imposed for the issuance or availability of a credit card, including any account maintenance fee or other charge imposed based on activity or inactivity for the account during the billing cycle. (II)  Any minimum finance charge imposed for each period during which any extension of credit which is subject to a finance charge is outstanding. (III)   Any transaction charge imposed in connection with use of the card to purchase goods or services. (iii)  Grace period (I)   The date by which or the period within which any credit extended under such credit plan for purchases of goods or services must be repaid to avoid incurring a finance charge, and, if no such period is offered, such fact shall be clearly stated. (II)   If the length of such “grace period” varies, the card issuer may disclose the range of days in the grace period, the minimum number of days in the grace period, or the average number of days in the grace period, if the disclosure is identified as such. (iv)   Balance calculation method (I)   The name of the balance calculation method used in determining the balance on which the finance charge is computed if the method used has been defined by the Bureau, or a detailed explanation of the balance calculation method used if the method has not been so defined. (II)  In prescribing regulations to carry out this clause, the Bureau shall define and name not more than the 5 balance calculation methods determined by the Bureau to be the most commonly used methods. (B)  Other information In addition to the information required to be disclosed under subparagraph (A), each application or solicitation to which such subparagraph applies shall disclose clearly and conspicuously the following information, subject to subsections (e) and (f): (i)   Cash advance fee Any fee imposed for an extension of credit in the form of cash.

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Part III Ch. 23–35 Mortgages Part IV Ch. 36–40 Insurance Part V Ch. 41–48A Zoning, etc. Part VI Ch. 49–56 Taxation Part VII Ch. 57–63 Litigation Part VIII Ch. 64–67 L/T Part IX Ch. 68–72 Condos, etc. Index

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(ii)  Late fee Any fee imposed for a late payment. (iii)  Over-the-limit fee Any fee imposed in connection with an extension of credit in excess of the amount of credit authorized to be extended with respect to such account. (2)  Telephone solicitations (A)  In general In any telephone solicitation to open a credit card account for any person under an open end consumer credit plan, the person making the solicitation shall orally disclose the information described in paragraph (1)(A). (B)  Exception Subparagraph (A) shall not apply to any telephone solicitation if— (i)   the credit card issuer— (I)   does not impose any fee described in paragraph (1)(A)(ii)(I); or (II)   does not impose any fee in connection with telephone solicitations unless the consumer signifies acceptance by using the card; (ii)  the card issuer discloses clearly and conspicuously in writing the information described in paragraph (1) within 30 days after the consumer requests the card, but in no event later than the date of delivery of the card; and (iii)  the card issuer discloses clearly and conspicuously that the consumer is not obligated to accept the card or account and the consumer will not be obligated to pay any of the fees or charges disclosed unless the consumer elects to accept the card or account by using the card. (3)   Applications and solicitations by other means (A)  In general Any application to open a credit card account for any person under an open end consumer credit plan, and any solicitation to open such an account without requiring an application, that is made available to the public or contained in catalogs, magazines, or other publications shall meet the disclosure requirements of subparagraph (B), (C), or (D). (B)  Specific information An application or solicitation described in subparagraph (A) meets the requirement of this subparagraph if such application or solicitation contains— (i)  the information— (I)   described in paragraph (1)(A) in the form required under section 1632(c) of this title, subject to subsection (e), and (II)  described in paragraph (1)(B) in a clear and conspicuous form, subject to subsections (e) and (f); (ii)  a statement, in a conspicuous and prominent location on the application or solicitation, that— (I)   the information is accurate as of the date the application or solicitation was printed; (II)  the information contained in the application or solicitation is subject to change after such date; and (III)   the applicant should contact the creditor for information on any change in the information contained in the application or solicitation since it was printed; (iii)  a clear and conspicuous disclosure of the date the application or solicitation was printed; and

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(iv)   a disclosure, in a conspicuous and prominent location on the application or solicitation, of a toll free telephone number or a mailing address at which the applicant may contact the creditor to obtain any change in the information provided in the application or solicitation since it was printed. (C)   General information without any specific term An application or solicitation described in subparagraph (A) meets the requirement of this subparagraph if such application or solicitation— (i)  contains a statement, in a conspicuous and prominent location on the application or solicitation, that— (I)   there are costs associated with the use of credit cards; and (II)  the applicant may contact the creditor to request disclosure of specific information of such costs by calling a toll free telephone number or by writing to an address, specified in the application; (ii)   contains a disclosure, in a conspicuous and prominent location on the application or solicitation, of a toll free telephone number and a mailing address at which the applicant may contact the creditor to obtain such information; and (iii)   does not contain any of the items described in paragraph (1). (D)   Applications or solicitations containing subsection (a) disclosures An application or solicitation meets the requirement of this subparagraph if it contains, or is accompanied by— (i)  the disclosures required by paragraphs (1) through (6) of subsection (a); (ii)   the disclosures required by subparagraphs (A) and (B) of paragraph (1) of this subsection included clearly and conspiciously1 (except that the provisions of section 1632(c) of this title shall not apply); and (iii)  a toll free telephone number or a mailing address at which the applicant may contact the creditor to obtain any change in the information provided. (E)   Prompt response to information requests Upon receipt of a request for any of the information referred to in subparagraph (B), (C), or (D), the card issuer or the agent of such issuer shall promptly disclose all of the information described in paragraph (1). (4)   Charge card applications and solicitations (A)  In general Any application or solicitation to open a charge card account shall disclose clearly and conspicuously the following information in the form required by section 1632(c) of this title, subject to subsection (e): (i)   Any annual fee, other periodic fee, or membership fee imposed for the issuance or availability of the charge card, including any account maintenance fee or other charge imposed based on activity or inactivity for the account during the billing cycle. (ii)   Any transaction charge imposed in connection with use of the card to purchase goods or services. (iii)   A statement that charges incurred by use of the charge card are due and payable upon receipt of a periodic statement rendered for such charge card account.

1. So in original. Probably should be “conspicuously”.

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Ch. 25

Part III Ch. 23–35 Mortgages Part IV Ch. 36–40 Insurance Part V Ch. 41–48A Zoning, etc. Part VI Ch. 49–56 Taxation Part VII Ch. 57–63 Litigation Part VIII Ch. 64–67 L/T Part IX Ch. 68–72 Condos, etc. Index

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(B)  Other information In addition to the information required to be disclosed under subparagraph (A), each written application or solicitation to which such subparagraph applies shall disclose clearly and conspicuously the following information, subject to subsections (e) and (f): (i)   Cash advance fee Any fee imposed for an extension of credit in the form of cash. (ii)  Late fee Any fee imposed for a late payment. (iii)  Over-the-limit fee Any fee imposed in connection with an extension of credit in excess of the amount of credit authorized to be extended with respect to such account. (C)   Applications and solicitations by other means Any application to open a charge card account, and any solicitation to open such an account without requiring an application, that is made available to the public or contained in catalogs, magazines, or other publications shall contain— (i)  the information— (I)   described in subparagraph (A) in the form required under section 1632(c) of this title, subject to subsection (e), and (II)   described in subparagraph (B) in a clear and conspicuous form, subject to subsections (e) and (f); (ii)  a statement, in a conspicuous and prominent location on the application or solicitation, that— (I)   the information is accurate as of the date the application or solicitation was printed; (II)  the information contained in the application or solicitation is subject to change after such date; and (III)   the applicant should contact the creditor for information on any change in the information contained in the application or solicitation since it was printed; (iii)  a clear and conspicuous disclosure of the date the application or solicitation was printed; and (iv)   a disclosure, in a conspicuous and prominent location on the application or solicitation, of a toll free telephone number or a mailing address at which the applicant may contact the creditor to obtain any change in the information provided in the application or solicitation since it was printed. (D)  Issuers of charge cards which provide access to open end consumer credit plans If a charge card permits the card holder to receive an extension of credit under an open end consumer credit plan, which is not maintained by the charge card issuer, the charge card issuer may provide the information described in subparagraphs (A) and (B) in the form required by such subparagraphs in lieu of the information required to be provided under paragraph (1), (2), or (3) with respect to any credit extended under such plan, if the charge card issuer discloses clearly and conspicuously to the consumer in the application or solicitation that— (i)  the charge card issuer will make an independent decision as to whether to issue the card; (ii)   the charge card may arrive before the decision is made with respect to an extension of credit under an open end consumer credit plan; and

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(iii)   approval by the charge card issuer does not constitute approval by the issuer of the extension of credit. The information required to be disclosed under paragraph (1) shall be provided to the charge card holder by the creditor which maintains such open end consumer credit plan before the first extension of credit under such plan. (E)   Charge card defined For the purposes of this subsection, the term “charge card” means a card, plate, or other single credit device that may be used from time to time to obtain credit which is not subject to a finance charge. (5)   Regulatory authority of the Bureau The Bureau may, by regulation, require the disclosure of information in addition to that otherwise required by this subsection or subsection (d), and modify any disclosure of information required by this subsection or subsection (d), in any application to open a credit card account for any person under an open end consumer credit plan or any application to open a charge card account for any person, or a solicitation to open any such account without requiring an application, if the Bureau determines that such action is necessary to carry out the purposes of, or prevent evasions of, any paragraph of this subsection. (6)   Additional notice concerning “introductory rates” (A)  In general Except as provided in subparagraph (B), an application or solicitation to open a credit card account and all promotional materials accompanying such application or solicitation for which a disclosure is required under paragraph (1), and that offers a temporary annual percentage rate of interest, shall— (i)   use the term “introductory” in immediate proximity to each listing of the temporary annual percentage rate applicable to such account, which term shall appear clearly and conspicuously; (ii)   if the annual percentage rate of interest that will apply after the end of the temporary rate period will be a fixed rate, state in a clear and conspicuous manner in a prominent location closely proximate to the first listing of the temporary annual percentage rate (other than a listing of the temporary annual percentage rate in the tabular format described in section 1632(c) of this title), the time period in which the introductory period will end and the annual percentage rate that will apply after the end of the introductory period; and (iii)   if the annual percentage rate that will apply after the end of the temporary rate period will vary in accordance with an index, state in a clear and conspicuous manner in a prominent location closely proximate to the first listing of the temporary annual percentage rate (other than a listing in the tabular format prescribed by section 1632(c) of this title), the time period in which the introductory period will end and the rate that will apply after that, based on an annual percentage rate that was in effect within 60 days before the date of mailing the application or solicitation. (B)  Exception Clauses (ii) and (iii) of subparagraph (A) do not apply with respect to any listing of a temporary annual percentage rate on an envelope or other enclosure in which an application or solicitation to open a credit card account is mailed. (C)   Conditions for introductory rates An application or solicitation to open a credit card account for which a disclosure is required under paragraph (1), and that offers a temporary annual percentage rate of interest shall, if that rate of interest is revocable under any circumstance or upon any event, clearly and conspicuously disclose, in a prominent manner on or with such application or solicitation—

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Ch. 25

Part III Ch. 23–35 Mortgages Part IV Ch. 36–40 Insurance Part V Ch. 41–48A Zoning, etc. Part VI Ch. 49–56 Taxation Part VII Ch. 57–63 Litigation Part VIII Ch. 64–67 L/T Part IX Ch. 68–72 Condos, etc. Index

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(i)  a general description of the circumstances that may result in the revocation of the temporary annual percentage rate; and (ii)   if the annual percentage rate that will apply upon the revocation of the temporary annual percentage rate— (I)  will be a fixed rate, the annual percentage rate that will apply upon the revocation of the temporary annual percentage rate; or (II)   will vary in accordance with an index, the rate that will apply after the temporary rate, based on an annual percentage rate that was in effect within 60 days before the date of mailing the application or solicitation. (D)  Definitions In this paragraph— (i)   the terms “temporary annual percentage rate of interest” and “temporary annual percentage rate” mean any rate of interest applicable to a credit card account for an introductory period of less than 1 year, if that rate is less than an annual percentage rate that was in effect within 60 days before the date of mailing the application or solicitation; and (ii)   the term “introductory period” means the maximum time period for which the temporary annual percentage rate may be applicable. (E)   Relation to other disclosure requirements Nothing in this paragraph may be construed to supersede subsection (a) of section 1632 of this title, or any disclosure required by paragraph (1) or any other provision of this subsection. (7)  Internet-based solicitations (A)  In general In any solicitation to open a credit card account for any person under an open end consumer credit plan using the Internet or other interactive computer service, the person making the solicitation shall clearly and conspicuously disclose— (i)   the information described in subparagraphs (A) and (B) of paragraph (1); and (ii)   the information described in paragraph (6). (B)   Form of disclosure The disclosures required by subparagraph (A) shall be— (i)   readily accessible to consumers in close proximity to the solicitation to open a credit card account; and (ii)  updated regularly to reflect the current policies, terms, and fee amounts applicable to the credit card account. (C)  Definitions For purposes of this paragraph— (i)  the term “Internet” means the international computer network of both Federal and non-Federal interoperable packet switched data networks; and (ii)   the term “interactive computer service” means any information service, system, or access software provider that provides or enables computer access by multiple users to a computer server, including specifically a service or system that provides access to the Internet and such systems operated or services offered by libraries or educational institutions. (8)   Applications from underage consumers (A)   Prohibition on issuance No credit card may be issued to, or open end consumer credit plan established by or on behalf of, a consumer who has not attained the age of 21,

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unless the consumer has submitted a written application to the card issuer that meets the requirements of subparagraph (B). (B)  Application requirements An application to open a credit card account by a consumer who has not attained the age of 21 as of the date of submission of the application shall require— (i)  the signature of a cosigner, including the parent, legal guardian, spouse, or any other individual who has attained the age of 21 having a means to repay debts incurred by the consumer in connection with the account, indicating joint liability for debts incurred by the consumer in connection with the account before the consumer has attained the age of 21; or (ii)  submission by the consumer of financial information, including through an application, indicating an independent means of repaying any obligation arising from the proposed extension of credit in connection with the account. (C)  Safe harbor The Bureau shall promulgate regulations providing standards that, if met, would satisfy the requirements of subparagraph (B)(ii). (d)   Disclosure prior to renewal (1)  In general A card issuer that has changed or amended any term of the account since the last renewal that has not been previously disclosed or that imposes any fee described in subsection (c)(1)(A)(ii)(I) or (c)(4)(A)(i) shall transmit to a consumer at least 30 days prior to the scheduled renewal date of the consumer’s credit or charge card account a clear and conspicuous disclosure of— (A)   the date by which, the month by which, or the billing period at the close of which, the account will expire if not renewed; (B)  the information described in subsection (c)(1)(A) or (c)(4)(A) that would apply if the account were renewed, subject to subsection (e); and (C)   the method by which the consumer may terminate continued credit availability under the account. (2)  Short-term renewals The Bureau may by regulation provide for fewer disclosures than are required by paragraph (1) in the case of an account which is renewable for a period of less than 6 months. (e)   Other rules for disclosures under subsections (c) and (d) (1)   Fees determined on the basis of a percentage If the amount of any fee required to be disclosed under subsection (c) or (d) is determined on the basis of a percentage of another amount, the percentage used in making such determination and the identification of the amount against which such percentage is applied shall be disclosed in lieu of the amount of such fee. (2)   Disclosure only of fees actually imposed If a credit or charge card issuer does not impose any fee required to be disclosed under any provision of subsection (c) or (d), such provision shall not apply with respect to such issuer. (f)   Disclosure of range of certain fees which vary by State allowed If the amount of any fee required to be disclosed by a credit or charge card issuer under paragraph (1)(B), (3)(B)(i)(II), (4)(B), or (4)(C)(i)(II) of subsection (c) varies from State to State, the card issuer may disclose the range of such fees for purposes of subsection (c) in lieu of the amount for each applicable State, if

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Ch. 25

Part III Ch. 23–35 Mortgages Part IV Ch. 36–40 Insurance Part V Ch. 41–48A Zoning, etc. Part VI Ch. 49–56 Taxation Part VII Ch. 57–63 Litigation Part VIII Ch. 64–67 L/T Part IX Ch. 68–72 Condos, etc. Index

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such disclosure includes a statement that the amount of such fee varies from State to State. (g)   Insurance in connection with certain open end credit card plans (1)   Change in insurance carrier Whenever a card issuer that offers any guarantee or insurance for repayment of all or part of the outstanding balance of an open end credit card plan proposes to change the person providing that guarantee or insurance, the card issuer shall send each insured consumer written notice of the proposed change not less than 30 days prior to the change, including notice of any increase in the rate or substantial decrease in coverage or service which will result from such change. Such notice may be included on or with the monthly statement provided to the consumer prior to the month in which the proposed change would take effect. (2)   Notice of new insurance coverage In any case in which a proposed change described in paragraph (1) occurs, the insured consumer shall be given the name and address of the new guarantor or insurer and a copy of the policy or group certificate containing the basic terms and conditions, including the premium rate to be charged. (3)   Right to discontinue guarantee or insurance The notices required under paragraphs (1) and (2) shall each include a statement that the consumer has the option to discontinue the insurance or guarantee. (4)   No preemption of State law No provision of this subsection shall be construed as superseding any provision of State law which is applicable to the regulation of insurance. (5)   Bureau definition of substantial decrease in coverage or service The Bureau shall define, in regulations, what constitutes a “substantial decrease in coverage or service” for purposes of paragraph (1). (h)   Prohibition on certain actions for failure to incur finance charges A creditor of an account under an open end consumer credit plan may not terminate an account prior to its expiration date solely because the consumer has not incurred finance charges on the account. Nothing in this subsection shall prohibit a creditor from terminating an account for inactivity in 3 or more consecutive months. (i)   Advance notice of rate increase and other changes required (1)   Advance notice of increase in interest rate required In the case of any credit card account under an open end consumer credit plan, a creditor shall provide a written notice of an increase in an annual percentage rate (except in the case of an increase described in paragraph (1), (2), or (3) of section 1666i–1(b) of this title) not later than 45 days prior to the effective date of the increase. (2)   Advance notice of other significant changes required In the case of any credit card account under an open end consumer credit plan, a creditor shall provide a written notice of any significant change, as determined by rule of the Bureau, in the terms (including an increase in any fee or finance charge, other than as provided in paragraph (1)) of the cardholder agreement between the creditor and the obligor, not later than 45 days prior to the effective date of the change. (3)   Notice of right to cancel Each notice required by paragraph (1) or (2) shall be made in a clear and conspicuous manner, and shall contain a brief statement of the right of the

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obligor to cancel the account pursuant to rules established by the Bureau before the effective date of the subject rate increase or other change. (4)   Rule of construction Closure or cancellation of an account by the obligor shall not constitute a default under an existing cardholder agreement, and shall not trigger an obligation to immediately repay the obligation in full or through a method that is less beneficial to the obligor than one of the methods described in section 1666i–1(c)(2) of this title, or the imposition of any other penalty or fee. (j)   Prohibition on penalties for on-time payments (1)  Prohibition on double-cycle billing and penalties for on-time payments Except as provided in paragraph (2), a creditor may not impose any finance charge on a credit card account under an open end consumer credit plan as a result of the loss of any time period provided by the creditor within which the obligor may repay any portion of the credit extended without incurring a finance charge, with respect to— (A)   any balances for days in billing cycles that precede the most recent billing cycle; or (B)   any balances or portions thereof in the current billing cycle that were repaid within such time period. (2)  Exceptions Paragraph (1) does not apply to— (A)  any adjustment to a finance charge as a result of the resolution of a dispute; or (B)  any adjustment to a finance charge as a result of the return of a payment for insufficient funds. (k)   Opt-in required for over-the-limit transactions if fees are imposed (1)  In general In the case of any credit card account under an open end consumer credit plan under which an over-the-limit fee may be imposed by the creditor for any extension of credit in excess of the amount of credit authorized to be extended under such account, no such fee shall be charged, unless the consumer has expressly elected to permit the creditor, with respect to such account, to complete transactions involving the extension of credit under such account in excess of the amount of credit authorized. (2)   Disclosure by creditor No election by a consumer under paragraph (1) shall take effect unless the consumer, before making such election, received a notice from the creditor of any over-the-limit fee in the form and manner, and at the time, determined by the Bureau. If the consumer makes the election referred to in paragraph (1), the creditor shall provide notice to the consumer of the right to revoke the election, in the form prescribed by the Bureau, in any periodic statement that includes notice of the imposition of an over-the-limit fee during the period covered by the statement. (3)   Form of election A consumer may make or revoke the election referred to in paragraph (1) orally, electronically, or in writing, pursuant to regulations prescribed by the Bureau. The Bureau shall prescribe regulations to ensure that the same options are available for both making and revoking such election. (4)   Time of election A consumer may make the election referred to in paragraph (1) at any time, and such election shall be effective until the election is revoked in the manner prescribed under paragraph (3).

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PART III (5)  Regulations

(A)   governing disclosures under this subsection; and

(6)   Rule of construction Nothing in this subsection shall be construed to prohibit a creditor from completing an over-the-limit transaction, provided that a consumer who has not made a valid election under paragraph (1) is not charged an over-the-limit fee for such transaction.

(l)   Limit on fees related to method of payment

(m)   Use of term “fixed rate”

(1)  In general

No provision of this subsection may be construed as authorizing any imposition or payment of advance fees otherwise prohibited by any provision of law. (o)   Due dates for credit card accounts (1)  In general

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The payment due date for a credit card account under an open end consumer credit plan shall be the same day each month.

Part IX Ch. 68–72 Condos, etc.

(2)   Rule of construction

Part VIII Ch. 64–67 L/T

If the terms of a credit card account under an open end consumer credit plan require the payment of any fees (other than any late fee, over-the-limit fee, or fee for a payment returned for insufficient funds) by the consumer in the first year during which the account is opened in an aggregate amount in excess of 25 percent of the total amount of credit authorized under the account when the account is opened, no payment of any fees (other than any late fee, over-the-limit fee, or fee for a payment returned for insufficient funds) may be made from the credit made available under the terms of the account.

Part VII Ch. 57–63 Litigation

(n)   Standards applicable to initial issuance of subprime or “fee harvester” cards

Part VI Ch. 49–56 Taxation

With respect to the terms of any credit card account under an open end consumer credit plan, the term “fixed”, when appearing in conjunction with a reference to the annual percentage rate or interest rate applicable with respect to such account, may only be used to refer to an annual percentage rate or interest rate that will not change or vary for any reason over the period specified clearly and conspicuously in the terms of the account.

Part V Ch. 41–48A Zoning, etc.

With respect to a credit card account under an open end consumer credit plan, the creditor may not impose a separate fee to allow the obligor to repay an extension of credit or finance charge, whether such repayment is made by mail, electronic transfer, telephone authorization, or other means, unless such payment involves an expedited service by a service representative of the creditor.

Part IV Ch. 36–40 Insurance

With respect to a credit card account under an open end consumer credit plan, an over-the-limit fee may be imposed only once during a billing cycle if the credit limit on the account is exceeded, and an over-the-limit fee, with respect to such excess credit, may be imposed only once in each of the 2 subsequent billing cycles, unless the consumer has obtained an additional extension of credit in excess of such credit limit during any such subsequent cycle or the consumer reduces the outstanding balance below the credit limit as of the end of such billing cycle.

Part III Ch. 23–35 Mortgages

(7)   Restriction on fees charged for an over-the-limit transaction

Part II Ch. 15–22 Deeds

(B)   that prevent unfair or deceptive acts or practices in connection with the manipulation of credit limits designed to increase over-the-limit fees or other penalty fees.

Part I Ch. 1–14 Brokers

The Bureau shall prescribe regulations—

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(2)   Weekend or holiday due dates If the payment due date for a credit card account under an open end consumer credit plan is a day on which the creditor does not receive or accept payments by mail (including weekends and holidays), the creditor may not treat a payment received on the next business day as late for any purpose. (p)   Parental approval required to increase credit lines for accounts for which parent is jointly liable No increase may be made in the amount of credit authorized to be extended under a credit card account for which a parent, legal guardian, or spouse of the consumer, or any other individual has assumed joint liability for debts incurred by the consumer in connection with the account before the consumer attains the age of 21, unless that parent, guardian, or spouse approves in writing, and assumes joint liability for, such increase. (r)2   College card agreements (1)  Definitions For purposes of this subsection, the following definitions shall apply: (A)   College affinity card The term “college affinity card” means a credit card issued by a credit card issuer under an open end consumer credit plan in conjunction with an agreement between the issuer and an institution of higher education, or an alumni organization or foundation affiliated with or related to such institution, under which such cards are issued to college students who have an affinity with such institution, organization and— (i)  the creditor has agreed to donate a portion of the proceeds of the credit card to the institution, organization, or foundation (including a lump sum or 1-time payment of money for access); (ii)   the creditor has agreed to offer discounted terms to the consumer; or (iii)  the credit card bears the name, emblem, mascot, or logo of such institution, organization, or foundation, or other words, pictures, or symbols readily identified with such institution, organization, or foundation. (B)   College student credit card account The term “college student credit card account” means a credit card account under an open end consumer credit plan established or maintained for or on behalf of any college student. (C)  College student The term “college student” means an individual who is a full-time or a part-time student attending an institution of higher education. (D)   Institution of higher education The term “institution of higher education” has the same meaning as in section3 1001 and 1002 of title 20. (2)   Reports by creditors (A)  In general Each creditor shall submit an annual report to the Bureau containing the terms and conditions of all business, marketing, and promotional agreements and college affinity card agreements with an institution of higher education, or an alumni organization or foundation affiliated with or related to such

2. So in original. No subsec. (q) has been enacted. 3. So in original. Probably should be “sections”.

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Ch. 25

Part III Ch. 23–35 Mortgages Part IV Ch. 36–40 Insurance Part V Ch. 41–48A Zoning, etc. Part VI Ch. 49–56 Taxation Part VII Ch. 57–63 Litigation Part VIII Ch. 64–67 L/T Part IX Ch. 68–72 Condos, etc. Index

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institution, with respect to any college student credit card issued to a college student at such institution. (B)   Details of report The information required to be reported under subparagraph (A) includes— (i)   any memorandum of understanding between or among a creditor, an institution of higher education, an alumni association, or foundation that directly or indirectly relates to any aspect of any agreement referred to in such subparagraph or controls or directs any obligations or distribution of benefits between or among any such entities; (ii)  the amount of any payments from the creditor to the institution, organization, or foundation during the period covered by the report, and the precise terms of any agreement under which such amounts are determined; and (iii)  the number of credit card accounts covered by any such agreement that were opened during the period covered by the report, and the total number of credit card accounts covered by the agreement that were outstanding at the end of such period. (C)   Aggregation by institution The information required to be reported under subparagraph (A) shall be aggregated with respect to each institution of higher education or alumni organization or foundation affiliated with or related to such institution. (D)  Initial report The initial report required under subparagraph (A) shall be submitted to the Bureau before the end of the 9-month period beginning on May 22, 2009. (3)   Reports by Bureau The Bureau shall submit to the Congress, and make available to the public, an annual report that lists the information concerning credit card agreements submitted to the Bureau under paragraph (2) by each institution of higher education, alumni organization, or foundation. § 1637a.  Disclosure requirements for open end consumer credit plans secured by consumer’s principal dwelling (a)  Application disclosures In the case of any open end consumer credit plan which provides for any extension of credit which is secured by the consumer’s principal dwelling, the creditor shall make the following disclosures in accordance with subsection (b): (1)   Fixed annual percentage rate Each annual percentage rate imposed in connection with extensions of credit under the plan and a statement that such rate does not include costs other than interest. (2)   Variable percentage rate In the case of a plan which provides for variable rates of interest on credit extended under the plan— (A)   a description of the manner in which such rate will be computed and a statement that such rate does not include costs other than interest; (B)  a description of the manner in which any changes in the annual percentage rate will be made, including— (i)   any negative amortization and interest rate carryover; (ii)   the timing of any such changes; (iii)   any index or margin to which such changes in the rate are related; and

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§ 1637a

CONSUMER CREDIT DISCLOSURE

(iv)   a source of information about any such index; (C)   if an initial annual percentage rate is offered which is not based on an index— (i)  a statement of such rate and the period of time such initial rate will be in effect; and (ii)   a statement that such rate does not include costs other than interest; (D)   a statement that the consumer should ask about the current index value and interest rate; (E)   a statement of the maximum amount by which the annual percentage rate may change in any 1-year period or a statement that no such limit exists; (F)  a statement of the maximum annual percentage rate that may be imposed at any time under the plan; (G)   subject to subsection (b)(3), a table, based on a $10,000 extension of credit, showing how the annual percentage rate and the minimum periodic payment amount under each repayment option of the plan would have been affected during the preceding 15-year period by changes in any index used to compute such rate; (H)   a statement of— (i)   the maximum annual percentage rate which may be imposed under each repayment option of the plan; (ii)  the minimum amount of any periodic payment which may be required, based on a $10,000 outstanding balance, under each such option when such maximum annual percentage rate is in effect; and (iii)  the earliest date by which such maximum annual interest rate may be imposed; and (I)   a statement that interest rate information will be provided on or with each periodic statement. (3)   Other fees imposed by the creditor An itemization of any fees imposed by the creditor in connection with the availability or use of credit under such plan, including annual fees, application fees, transaction fees, and closing costs (including costs commonly described as “points”), and the time when such fees are payable. (4)   Estimates of fees which may be imposed by third parties (A)  Aggregate amount An estimate, based on the creditor’s experience with such plans and stated as a single amount or as a reasonable range, of the aggregate amount of additional fees that may be imposed by third parties (such as governmental authorities, appraisers, and attorneys) in connection with opening an account under the plan. (B)   Statement of availability A statement that the consumer may ask the creditor for a good faith estimate by the creditor of the fees that may be imposed by third parties. (5)   Statement of risk of loss of dwelling A statement that— (A)   any extension of credit under the plan is secured by the consumer’s dwelling; and (B)   in the event of any default, the consumer risks the loss of the dwelling.

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(6)   Conditions to which disclosed terms are subject A clear and conspicuous statement— (i)  of the time by which an application must be submitted to obtain the terms disclosed; or (B)   Right of refusal if certain terms change A statement that—

(ii)   if the consumer makes an election described in clause (i), the consumer is entitled to a refund of all fees paid in connection with the application.

Part III Ch. 23–35 Mortgages

(i)   the consumer may elect not to enter into an agreement to open an account under the plan if any term changes (other than a change contemplated by a variable feature of the plan) before any such agreement is final; and

Part II Ch. 15–22 Deeds

(ii)   if applicable, that the terms are subject to change.

Part I Ch. 1–14 Brokers

(A)   Period during which such terms are available

(C)   Retention of information

(7)   Rights of creditor with respect to extensions of credit A statement that—

(8)   Repayment options and minimum periodic payments The repayment options under the plan, including— (A)   if applicable, any differences in repayment options with regard to—

(ii)   any period during which repayment is required to be made and no additional extensions of credit may be obtained; (B)  the length of any repayment period, including any differences in the length of any repayment period with regard to the periods described in clauses (i) and (ii) of subparagraph (A); and

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An example, based on a $10,000 outstanding balance and the interest rate (other than a rate not based on the index under the plan) which is, or was recently, in effect under such plan, showing the minimum monthly or periodic payment, and the time it would take to repay the entire $10,000 if the consumer paid only the minimum periodic payments and obtained no additional extensions of credit.

Part IX Ch. 68–72 Condos, etc.

(9)  Example of minimum payments and maximum repayment period

Part VIII Ch. 64–67 L/T

(C)   an explanation of how the amount of any minimum monthly or periodic payment will be determined under each such option, including any differences in the determination of any such amount with regard to the periods described in clauses (i) and (ii) of subparagraph (A).

Part VII Ch. 57–63 Litigation

(i)   any period during which additional extensions of credit may be obtained; and

Part VI Ch. 49–56 Taxation

(B)  the consumer may receive, upon request, more specific information about the conditions under which the creditor may take any action described in subparagraph (A).

Part V Ch. 41–48A Zoning, etc.

(A)  under certain conditions, the creditor may terminate any account under the plan and require immediate repayment of any outstanding balance, prohibit any additional extension of credit to the account, or reduce the credit limit applicable to the account; and

Part IV Ch. 36–40 Insurance

A statement that the consumer should make or otherwise retain a copy of information disclosed under this subparagraph.

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(10)   Statement concerning balloon payments If, under any repayment option of the plan, the payment of not more than the minimum periodic payments required under such option over the length of the repayment period— (A)   would not repay any of the principal balance; or (B)  would repay less than the outstanding balance by the end of such period, as the case may be, a statement of such fact, including an explicit statement that at the end of such repayment period a balloon payment (as defined in section 1665b(f) of this title) would result which would be required to be paid in full at that time. (11)  Negative amortization If applicable, a statement that— (A)   any limitation in the plan on the amount of any increase in the minimum payments may result in negative amortization; (B)   negative amortization increases the outstanding principal balance of the account; and (C)   negative amortization reduces the consumer’s equity in the consumer’s dwelling. (12)   Limitations and minimum amount requirements on extensions of credit (A)   Number and dollar amount limitations Any limitation contained in the plan on the number of extensions of credit and the amount of credit which may be obtained during any month or other defined time period. (B)  Minimum balance and other transaction amount requirements Any requirement which establishes a minimum amount for— (i)   the initial extension of credit to an account under the plan; (ii)   any subsequent extension of credit to an account under the plan; or (iii)   any outstanding balance of an account under the plan. (13)   Statement regarding tax deductibility A statement that— (A)   the consumer should consult a tax advisor regarding the deductibility of interest and charges under the plan; and (B)   in any case in which the extension of credit exceeds the fair market value (as defined under title 26) of the dwelling, the interest on the portion of the credit extension that is greater than the fair market value of the dwelling is not tax deductible for Federal income tax purposes. (14)   Disclosure requirements established by Bureau Any other term which the Bureau requires, in regulations, to be disclosed. (b)   Time and form of disclosures (1)   Time of disclosure (A)  In general The disclosures required under subsection (a) with respect to any open end consumer credit plan which provides for any extension of credit which is secured by the consumer’s principal dwelling and the pamphlet required under subsection (e) shall be provided to any consumer at the time the creditor distributes an application to establish an account under such plan to such consumer.

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(B)   Telephone, publications, and third party applications In the case of telephone applications, applications contained in magazines or other publications, or applications provided by a third party, the disclosures required under subsection (a) and the pamphlet required under subsection (e) shall be provided by the creditor before the end of the 3-day period beginning on the date the creditor receives a completed application from a consumer. (2)  Form (A)  In general Except as provided in paragraph (1)(B), the disclosures required under subsection (a) shall be provided on or with any application to establish an account under an open end consumer credit plan which provides for any extension of credit which is secured by the consumer’s principal dwelling. (B)   Segregation of required disclosures from other information The disclosures required under subsection (a) shall be conspicuously segregated from all other terms, data, or additional information provided in connection with the application, either by grouping the disclosures separately on the application form or by providing the disclosures on a separate form, in accordance with regulations of the Bureau. (C)   Precedence of certain information The disclosures required by paragraphs (5), (6), and (7) of subsection (a) shall precede all of the other required disclosures. (D)  Special provision relating to variable interest rate information Whether or not the disclosures required under subsection (a) are provided on the application form, the variable rate information described in subsection (a)(2) may be provided separately from the other information required to be disclosed. (3)   Requirement for historical table In preparing the table required under subsection (a)(2)(G), the creditor shall consistently select one rate of interest for each year and the manner of selecting the rate from year to year shall be consistent with the plan. (c)   Third party applications In the case of an application to open an account under any open end consumer credit plan described in subsection (a) which is provided to a consumer by any person other than the creditor— (1)   such person shall provide such consumer with— (A)  the disclosures required under subsection (a) with respect to such plan, in accordance with subsection (b); and (B)   the pamphlet required under subsection (e); or (2)  if such person cannot provide specific terms about the plan because specific information about the plan terms is not available, no nonrefundable fee may be imposed in connection with such application before the end of the 3-day period beginning on the date the consumer receives the disclosures required under subsection (a) with respect to the application. (d)   “Principal dwelling” defined For purposes of this section and sections 1647 and 1665b of this title, the term “principal dwelling” includes any second or vacation home of the consumer. (e)  Pamphlet In addition to the disclosures required under subsection (a) with respect to an application to open an account under any open end consumer credit plan described

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in such subsection, the creditor or other person providing such disclosures to the consumer shall provide— (1)   a pamphlet published by the Bureau pursuant to section 4 of the Home Equity1 Consumer Protection Act of 1988; or (2)   any pamphlet which provides substantially similar information to the information described in such section, as determined by the Bureau. § 1638.   Transactions other than under an open end credit plan (a)   Required disclosures by creditor For each consumer credit transaction other than under an open end credit plan, the creditor shall disclose each of the following items, to the extent applicable: (1)   The identity of the creditor required to make disclosure. (2)(A)   The “amount financed”, using that term, which shall be the amount of credit of which the consumer has actual use. This amount shall be computed as follows, but the computations need not be disclosed and shall not be disclosed with the disclosures conspicuously segregated in accordance with subsection (b)(1): (i)   take the principal amount of the loan or the cash price less downpayment and trade-in; (ii)   add any charges which are not part of the finance charge or of the principal amount of the loan and which are financed by the consumer, including the cost of any items excluded from the finance charge pursuant to section 1605 of this title; and (iii)  subtract any charges which are part of the finance charge but which will be paid by the consumer before or at the time of the consummation of the transaction, or have been withheld from the proceeds of the credit. (B)   In conjunction with the disclosure of the amount financed, a creditor shall provide a statement of the consumer’s right to obtain, upon a written request, a written itemization of the amount financed. The statement shall include spaces for a “yes” and “no” indication to be initialed by the consumer to indicate whether the consumer wants a written itemization of the amount financed. Upon receiving an affirmative indication, the creditor shall provide, at the time other disclosures are required to be furnished, a written itemization of the amount financed. For the purposes of this subparagraph, “itemization of the amount financed” means a disclosure of the following items, to the extent applicable: (i)   the amount that is or will be paid directly to the consumer; (ii)   the amount that is or will be credited to the consumer’s account to discharge obligations owed to the creditor; (iii)   each amount that is or will be paid to third persons by the creditor on the consumer’s behalf, together with an identification of or reference to the third person; and (iv)  the total amount of any charges described in the preceding subparagraph (A)(iii). (3)   The “finance charge”, not itemized, using that term. (4)   The finance charge expressed as an “annual percentage rate”, using that term. This shall not be required if the amount financed does not exceed $75 and the finance charge does not exceed $5, or if the amount financed exceeds $75 and the finance charge does not exceed $7.50.

1. So in original. Probably should be followed by “Loan”.

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(5)   The sum of the amount financed and the finance charge, which shall be termed the “total of payments”. (6)   The number, amount, and due dates or period of payments scheduled to repay the total of payments. (7)   In a sale of property or services in which the seller is the creditor required to disclose pursuant to section 1631(b) of this title, the “total sale price”, using that term, which shall be the total of the cash price of the property or services, additional charges, and the finance charge. (8)  Descriptive explanations of the terms “amount financed”, “finance charge”, “annual percentage rate”, “total of payments”, and “total sale price” as specified by the Bureau. The descriptive explanation of “total sale price” shall include reference to the amount of the downpayment. (9)  Where the credit is secured, a statement that a security interest has been taken in (A) the property which is purchased as part of the credit transaction, or (B) property not purchased as part of the credit transaction identified by item or type. (10)   Any dollar charge or percentage amount which may be imposed by a creditor solely on account of a late payment, other than a deferral or extension charge. (11)  A statement indicating whether or not the consumer is entitled to a rebate of any finance charge upon refinancing or prepayment in full pursuant to acceleration or otherwise, if the obligation involves a precomputed finance charge. A statement indicating whether or not a penalty will be imposed in those same circumstances if the obligation involves a finance charge computed from time to time by application of a rate to the unpaid principal balance. (12)   A statement that the consumer should refer to the appropriate contract document for any information such document provides about nonpayment, default, the right to accelerate the maturity of the debt, and prepayment rebates and penalties. (13)  In any residential mortgage transaction, a statement indicating whether a subsequent purchaser or assignee of the consumer may assume the debt obligation on its original terms and conditions. (14)   In the case of any variable interest rate residential mortgage transaction, in disclosures provided at application as prescribed by the Bureau for a variable rate transaction secured by the consumer’s principal dwelling, at the option of the creditor, a statement that the periodic payments may increase or decrease substantially, and the maximum interest rate and payment for a $10,000 loan originated at a recent interest rate, as determined by the Bureau, assuming the maximum periodic increases in rates and payments under the program, or a historical example illustrating the effects of interest rate changes implemented according to the loan program. (15)  In the case of a consumer credit transaction that is secured by the principal dwelling of the consumer, in which the extension of credit may exceed the fair market value of the dwelling, a clear and conspicuous statement that— (A)  the interest on the portion of the credit extension that is greater than the fair market value of the dwelling is not tax deductible for Federal income tax purposes; and (B)  the consumer should consult a tax adviser for further information regarding the deductibility of interest and charges. (16)   In the case of a variable rate residential mortgage loan for which an escrow or impound account will be established for the payment of all applicable taxes, insurance, and assessments— (A)  the amount of initial monthly payment due under the loan for the payment of principal and interest, and the amount of such initial monthly

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payment including the monthly payment deposited in the account for the payment of all applicable taxes, insurance, and assessments; and (B)  the amount of the fully indexed monthly payment due under the loan for the payment of principal and interest, and the amount of such fully indexed monthly payment including the monthly payment deposited in the account for the payment of all applicable taxes, insurance, and assessments. (17)  In the case of a residential mortgage loan, the aggregate amount of settlement charges for all settlement services provided in connection with the loan, the amount of charges that are included in the loan and the amount of such charges the borrower must pay at closing, the approximate amount of the wholesale rate of funds in connection with the loan, and the aggregate amount of other fees or required payments in connection with the loan. (18)  In the case of a residential mortgage loan, the aggregate amount of fees paid to the mortgage originator in connection with the loan, the amount of such fees paid directly by the consumer, and any additional amount received by the originator from the creditor. (19)   In the case of a residential mortgage loan, the total amount of interest that the consumer will pay over the life of the loan as a percentage of the principal of the loan. Such amount shall be computed assuming the consumer makes each monthly payment in full and on-time, and does not make any over-payments. (b)   Form and timing of disclosures; residential mortgage transaction requirements (1)   Except as otherwise provided in this part, the disclosures required under subsection (a) shall be made before the credit is extended. Except for the disclosures required by subsection (a)(1) of this section, all disclosures required under subsection (a) and any disclosure provided for in subsection (b), (c), or (d) of section 1605 of this title shall be conspicuously segregated from all other terms, data, or information provided in connection with a transaction, including any computations or itemization. (2)(A)   Except as provided in subparagraph (G), in the case of any extension of credit that is secured by the dwelling of a consumer, which is also subject to the Real Estate Settlement Procedures Act [12 U.S.C. 2601 et seq.], good faith estimates of the disclosures required under subsection (a) shall be made in accordance with regulations of the Bureau under section 1631(c) of this title and shall be delivered or placed in the mail not later than three business days after the creditor receives the consumer’s written application, which shall be at least 7 business days before consummation of the transaction. (B)   In the case of an extension of credit that is secured by the dwelling of a consumer, the disclosures provided under subparagraph (A),1 shall be in addition to the other disclosures required by subsection (a), and shall— (i)  state in conspicuous type size and format, the following: “You are not required to complete this agreement merely because you have received these disclosures or signed a loan application.”; and (ii)   be provided in the form of final disclosures at the time of consummation of the transaction, in the form and manner prescribed by this section. (C)   In the case of an extension of credit that is secured by the dwelling of a consumer, under which the annual rate of interest is variable, or with respect to which the regular payments may otherwise be variable, in addition to the other disclosures required by subsection (a), the disclosures provided under this subsection shall do the following:

1. So in original. The comma probably should not appear.

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(i)  Label the payment schedule as follows: “Payment Schedule: Payments Will Vary Based on Interest Rate Changes”. (ii)   State in conspicuous type size and format examples of adjustments to the regular required payment on the extension of credit based on the change in the interest rates specified by the contract for such extension of credit. Among the examples required to be provided under this clause is an example that reflects the maximum payment amount of the regular required payments on the extension of credit, based on the maximum interest rate allowed under the contract, in accordance with the rules of the Bureau. Prior to issuing any rules pursuant to this clause, the Bureau shall conduct consumer testing to determine the appropriate format for providing the disclosures required under this subparagraph to consumers so that such disclosures can be easily understood, including the fact that the initial regular payments are for a specific time period that will end on a certain date, that payments will adjust afterwards potentially to a higher amount, and that there is no guarantee that the borrower will be able to refinance to a lower amount. (D)   In any case in which the disclosure statement under subparagraph (A) contains an annual percentage rate of interest that is no longer accurate, as determined under section 1606(c) of this title, the creditor shall furnish an additional, corrected statement to the borrower, not later than 3 business days before the date of consummation of the transaction. (E)   The consumer shall receive the disclosures required under this paragraph before paying any fee to the creditor or other person in connection with the consumer’s application for an extension of credit that is secured by the dwelling of a consumer. If the disclosures are mailed to the consumer, the consumer is considered to have received them 3 business days after they are mailed. A creditor or other person may impose a fee for obtaining the consumer’s credit report before the consumer has received the disclosures under this paragraph, provided the fee is bona fide and reasonable in amount. (F)   Waiver of timeliness of disclosures.—To expedite consummation of a transaction, if the consumer determines that the extension of credit is needed to meet a bona fide personal financial emergency, the consumer may waive or modify the timing requirements for disclosures under subparagraph (A), provided that— (i)   the term “bona fide personal emergency” may be further defined in regulations issued by the Bureau; (ii)   the consumer provides to the creditor a dated, written statement describing the emergency and specifically waiving or modifying those timing requirements, which statement shall bear the signature of all consumers entitled to receive the disclosures required by this paragraph; and (iii)   the creditor provides to the consumers at or before the time of such waiver or modification, the final disclosures required by paragraph (1). (G)(i)   In the case of an extension of credit relating to a plan described in section 101(53D) of title 11— (I)   the requirements of subparagraphs (A) through (E) shall not apply; and (II)   a good faith estimate of the disclosures required under subsection (a) shall be made in accordance with regulations of the Bureau under section 1631(c) of this title before such credit is extended, or shall be delivered or placed in the mail not later than 3 business days after the date on which the creditor receives the written application of the consumer for such credit, whichever is earlier. (ii)   If a disclosure statement furnished within 3 business days of the written application (as provided under clause (i)(II)) contains an annual

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percentage rate which is subsequently rendered inaccurate, within the meaning of section 1606(c) of this title, the creditor shall furnish another disclosure statement at the time of settlement or consummation of the transaction. (3)   In the case of a credit transaction described in paragraph (15) of subsection (a), disclosures required by that paragraph shall be made to the consumer at the time of application for such extension of credit. (4)   Repayment analysis required to include escrow payments.— (A)   In general.—In the case of any consumer credit transaction secured by a first mortgage or lien on the principal dwelling of the consumer, other than a consumer credit transaction under an open end credit plan or a reverse mortgage, for which an impound, trust, or other type of account has been or will be established in connection with the transaction for the payment of property taxes, hazard and flood (if any) insurance premiums, or other periodic payments or premiums with respect to the property, the information required to be provided under subsection (a) with respect to the number, amount, and due dates or period of payments scheduled to repay the total of payments shall take into account the amount of any monthly payment to such account for each such repayment in accordance with section 10(a)(2) of the Real Estate Settlement Procedures Act of 1974 [12 U.S.C. 2609(a)(2)]. (B)   Assessment value.—The amount taken into account under subparagraph (A) for the payment of property taxes, hazard and flood (if any) insurance premiums, or other periodic payments or premiums with respect to the property shall reflect the taxable assessed value of the real property securing the transaction after the consummation of the transaction, including the value of any improvements on the property or to be constructed on the property (whether or not such construction will be financed from the proceeds of the transaction), if known, and the replacement costs of the property for hazard insurance, in the initial year after the transaction. (c)   Timing of disclosures on unsolicited mailed or telephone purchase orders or loan requests (1)   If a creditor receives a purchase order by mail or telephone without personal solicitation, and the cash price and the total sale price and the terms of financing, including the annual percentage rate, are set forth in the creditor’s catalog or other printed material distributed to the public, then the disclosures required under subsection (a) may be made at any time not later than the date the first payment is due. (2)   If a creditor receives a request for a loan by mail or telephone without personal solicitation and the terms of financing, including the annual percentage rate for representative amounts of credit, are set forth in the creditor’s printed material distributed to the public, or in the contract of loan or other printed material delivered to the obligor, then the disclosures required under subsection (a) may be made at any time not later than the date the first payment is due. (d)   Timing of disclosure in cases of an addition of a deferred payment price to an existing outstanding balance If a consumer credit sale is one of a series of consumer credit sales transactions made pursuant to an agreement providing for the addition of the deferred payment price of that sale to an existing outstanding balance, and the person to whom the credit is extended has approved in writing both the annual percentage rate or rates and the method of computing the finance charge or charges, and the creditor retains no security interest in any property as to which he has received payments aggregating the amount of the sales price including any finance charges attributable thereto, then the disclosure required under subsection (a) for the particular sale may be made at any time not later than the date the first

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payment for that sale is due. For the purposes of this subsection, in the case of items purchased on different dates, the first purchased shall be deemed first paid for, and in the case of items purchased on the same date, the lowest price shall be deemed first paid for. (e)   Terms and disclosure with respect to private education loans (1)   Disclosures required in private education loan applications and solicitations In any application for a private education loan, or a solicitation for a private education loan without requiring an application, the private educational lender shall disclose to the borrower, clearly and conspicuously— (A)   the potential range of rates of interest applicable to the private education loan; (B)   whether the rate of interest applicable to the private education loan is fixed or variable; (C)   limitations on interest rate adjustments, both in terms of frequency and amount, or the lack thereof, if applicable; (D)   requirements for a co-borrower, including any changes in the applicable interest rates without a co-borrower; (E)  potential finance charges, late fees, penalties, and adjustments to principal, based on defaults or late payments of the borrower; (F)   fees or range of fees applicable to the private education loan; (G)   the term of the private education loan; (H)   whether interest will accrue while the student to whom the private education loan relates is enrolled at a covered educational institution; (I)   payment deferral options; (J)   general eligibility criteria for the private education loan; (K)  an example of the total cost of the private education loan over the life of the loan— (i)   which shall be calculated using the principal amount and the maximum rate of interest actually offered by the private educational lender; and (ii)  calculated both with and without capitalization of interest, if an option exists for postponing interest payments; (L)   that a covered educational institution may have school-specific education loan benefits and terms not detailed on the disclosure form; (M)  that the borrower may qualify for Federal student financial assistance through a program under title IV of the Higher Education Act of 1965 (20 U.S.C. 1070 et seq.), in lieu of, or in addition to, a loan from a non-Federal source; (N)   the interest rates available with respect to such Federal student financial assistance through a program under title IV of the Higher Education Act of 1965 (20 U.S.C. 1070 et seq.); (O)   that, as provided in paragraph (6)— (i)   the borrower shall have the right to accept the terms of the loan and consummate the transaction at any time within 30 calendar days (or such longer period as the private educational lender may provide) following the date on which the application for the private education loan is approved and the borrower receives the disclosure documents required under this subsection for the loan; and (ii)  except for changes based on adjustments to the index used for a loan, the rates and terms of the loan may not be changed by the private educational lender during the period described in clause (i);

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(P)   that, before a private education loan may be consummated, the borrower must obtain from the relevant institution of higher education the form required under paragraph (3), and complete, sign, and return such form to the private educational lender; (Q)  that the consumer may obtain additional information concerning such Federal student financial assistance from their institution of higher education, or at the website of the Department of Education; and (R)   such other information as the Bureau shall prescribe, by rule, as necessary or appropriate for consumers to make informed borrowing decisions. (2)   Disclosures at the time of private education loan approval Contemporaneously with the approval of a private education loan application, and before the loan transaction is consummated, the private educational lender shall disclose to the borrower, clearly and conspicuously— (A)   the applicable rate of interest in effect on the date of approval; (B)   whether the rate of interest applicable to the private education loan is fixed or variable; (C)   limitations on interest rate adjustments, both in terms of frequency and amount, or the lack thereof, if applicable; (D)   the initial approved principal amount; (E)  applicable finance charges, late fees, penalties, and adjustments to principal, based on borrower defaults or late payments, including limitations on the discharge of a private education loan in bankruptcy; (F)   fees or range of fees applicable to the private education loan; (G)   the maximum term under the private education loan program; (H)   an estimate of the total amount for repayment, at both the interest rate in effect on the date of approval and at the maximum possible rate of interest offered by the private educational lender and applicable to the borrower, to the extent that such maximum rate may be determined, or if not, a good faith estimate thereof; (I)  any principal and interest payments required while the student for whom the private education loan is intended is enrolled at a covered educational institution and unpaid interest that will accrue during such enrollment; (J)   payment deferral options applicable to the borrower; (K)   whether monthly payments are graduated; (L)   that, as provided in paragraph (6)— (i)   the borrower shall have the right to accept the terms of the loan and consummate the transaction at any time within 30 calendar days (or such longer period as the private educational lender may provide) following the date on which the application for the private education loan is approved and the borrower receives the disclosure documents required under this subsection for the loan; and (ii)  except for changes based on adjustments to the index used for a loan, the rates and terms of the loan may not be changed by the private educational lender during the period described in clause (i); (M)   that the borrower— (i)   may qualify for Federal financial assistance through a program under title IV of the Higher Education Act of 1965 (20 U.S.C. 1070 et seq.), in lieu of, or in addition to, a loan from a non-Federal source; and (ii)   may obtain additional information concerning such assistance from their institution of higher education or the website of the Department of Education;

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Part III Ch. 23–35 Mortgages Part IV Ch. 36–40 Insurance Part V Ch. 41–48A Zoning, etc. Part VI Ch. 49–56 Taxation Part VII Ch. 57–63 Litigation Part VIII Ch. 64–67 L/T Part IX Ch. 68–72 Condos, etc. Index

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Part II Ch. 15–22 Deeds

249

Part I Ch. 1–14 Brokers

(N)  the interest rates available with respect to such Federal financial assistance through a program under title IV of the Higher Education Act of 1965 (20 U.S.C. 1070 et seq.); (O)   the maximum monthly payment, calculated using the maximum rate of interest actually offered by the private educational lender and applicable to the borrower, to the extent that such maximum rate may be determined, or if not, a good faith estimate thereof; and (P)   such other information as the Bureau shall prescribe, by rule, as necessary or appropriate for consumers to make informed borrowing decisions. (3)   Self-certification of information (A)  In general Before a private educational lender may consummate a private education loan with respect to a student attending an institution of higher education, the lender shall obtain from the applicant for the private education loan the form developed by the Secretary of Education under section 155 of the Higher Education Act of 1965 [20 U.S.C. 1019d], signed by the applicant, in written or electronic form. (B)   Rule of construction No other provision of this subsection shall be construed to require a private educational lender to perform any additional duty under this paragraph, other than collecting the form required under subparagraph (A). (4)   Disclosures at the time of private education loan consummation Contemporaneously with the consummation of a private education loan, a private educational lender shall make to the borrower each of the disclosures described in— (A)  paragraph (2)(A) (adjusted, as necessary, for the rate of interest in effect on the date of consummation, based on the index used for the loan); (B)  subparagraphs (B) through (K) and (M)  through (P) of paragraph (2); and (C) paragraph (7). (5)   Format of disclosures (A)  Model form Not later than 2 years after August 14, 2008, the Bureau shall, based on consumer testing, and in consultation with the Secretary of Education, develop and issue model forms that may be used, at the option of the private educational lender, for the provision of disclosures required under this subsection. (B)  Format Model forms developed under this paragraph shall— (i)   be comprehensible to borrowers, with a clear format and design; (ii)   provide for clear and conspicuous disclosures; (iii)   enable borrowers easily to identify material terms of the loan and to compare such terms among private education loans; and (iv)   be succinct, and use an easily readable type font. (C)  Safe harbor Any private educational lender that elects to provide a model form developed under this subsection that accurately reflects the practices of the private educational lender shall be deemed to be in compliance with the disclosures required under this subsection. (6)   Effective period of approved rate of interest and loan terms

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§ 1638

CONSUMER CREDIT DISCLOSURE

(A)  In general With respect to a private education loan, the borrower shall have the right to accept the terms of the loan and consummate the transaction at any time within 30 calendar days (or such longer period as the private educational lender may provide) following the date on which the application for the private education loan is approved and the borrower receives the disclosure documents required under this subsection for the loan, and the rates and terms of the loan may not be changed by the private educational lender during that period. (B)   Prohibition on changes Except for changes based on adjustments to the index used for a loan, the rates and terms of the loan may not be changed by the private educational lender prior to the earlier of— (i)   the date of acceptance of the terms of the loan and consummation of the transaction by the borrower, as described in subparagraph (A); or (ii)   the expiration of the period described in subparagraph (A). (7)   Right to cancel With respect to a private education loan, the borrower may cancel the loan, without penalty to the borrower, at any time within 3 business days of the date on which the loan is consummated, and the private educational lender shall disclose such right to the borrower in accordance with paragraph (4). (8)   Prohibition on disbursement No funds may be disbursed with respect to a private education loan until the expiration of the 3-day period described in paragraph (7). (9)  Bureau regulations In issuing regulations under this subsection, the Bureau shall prevent, to the extent possible, duplicative disclosure requirements for private educational lenders that are otherwise required to make disclosures under this subchapter, except that in any case in which the disclosure requirements of this subsection differ or conflict with the disclosure requirements of any other provision of this subchapter, the requirements of this subsection shall be controlling. (10)  Definitions For purposes of this subsection, the terms “covered educational institution”, “private educational lender”, and “private education loan” have the same meanings as in section 1650 of this title. (11)  Duties of lenders participating in preferred lender arrangements Each private educational lender that has a preferred lender arrangement with a covered educational institution shall annually, by a date determined by the Bureau, in consultation with the Secretary of Education, provide to the covered educational institution such information as the Bureau determines to include in the model form developed under paragraph (5) for each type of private education loan that the lender plans to offer to students attending the covered educational institution, or to the families of such students, for the next award year (as that term is defined in section 481 of the Higher Education Act of 1965 [20 U.S.C. 1088]). (f)   Periodic statements for residential mortgage loans (1)  In general The creditor, assignee, or servicer with respect to any residential mortgage loan shall transmit to the obligor, for each billing cycle, a statement setting forth each of the following items, to the extent applicable, in a conspicuous and prominent manner:

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Part IV Ch. 36–40 Insurance Part V Ch. 41–48A Zoning, etc. Part VI Ch. 49–56 Taxation Part VII Ch. 57–63 Litigation Part VIII Ch. 64–67 L/T Part IX Ch. 68–72 Condos, etc. Index

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Part III Ch. 23–35 Mortgages

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Part II Ch. 15–22 Deeds

2. So in original. Probably should be “Bureau”.

Part I Ch. 1–14 Brokers

(A)   The amount of the principal obligation under the mortgage. (B)   The current interest rate in effect for the loan. (C)   The date on which the interest rate may next reset or adjust. (D)   The amount of any prepayment fee to be charged, if any. (E)   A description of any late payment fees. (F)   A telephone number and electronic mail address that may be used by the obligor to obtain information regarding the mortgage. (G)   The names, addresses, telephone numbers, and Internet addresses of counseling agencies or programs reasonably available to the consumer that have been certified or approved and made publicly available by the Secretary of Housing and Urban Development or a State housing finance authority (as defined in section 1441a–1 of title 12). (H)   Such other information as the Board2 may prescribe in regulations. (2)   Development and use of standard form The Board2 shall develop and prescribe a standard form for the disclosure required under this subsection, taking into account that the statements required may be transmitted in writing or electronically. (3)  Exception Paragraph (1) shall not apply to any fixed rate residential mortgage loan where the creditor, assignee, or servicer provides the obligor with a coupon book that provides the obligor with substantially the same information as required in paragraph (1). § 1638a.   Reset of hybrid adjustable rate mortgages (a)   Hybrid adjustable rate mortgages defined For purposes of this section, the term “hybrid adjustable rate mortgage” means a consumer credit transaction secured by the consumer’s principal residence with a fixed interest rate for an introductory period that adjusts or resets to a variable interest rate after such period. (b)   Notice of reset and alternatives During the 1-month period that ends 6 months before the date on which the interest rate in effect during the introductory period of a hybrid adjustable rate mortgage adjusts or resets to a variable interest rate or, in the case of such an adjustment or resetting that occurs within the first 6 months after consummation of such loan, at consummation, the creditor or servicer of such loan shall provide a written notice, separate and distinct from all other correspondence to the consumer, that includes the following: (1)   Any index or formula used in making adjustments to or resetting the interest rate and a source of information about the index or formula. (2)  An explanation of how the new interest rate and payment would be determined, including an explanation of how the index was adjusted, such as by the addition of a margin. (3)  A good faith estimate, based on accepted industry standards, of the creditor or servicer of the amount of the monthly payment that will apply after the date of the adjustment or reset, and the assumptions on which this estimate is based. (4)   A list of alternatives consumers may pursue before the date of adjustment or reset, and descriptions of the actions consumers must take to pursue these alternatives, including—

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§ 1639

CONSUMER CREDIT DISCLOSURE

(A)  refinancing; (B)   renegotiation of loan terms; (C)   payment forbearances; and (D)  pre-foreclosure sales. (5)  The names, addresses, telephone numbers, and Internet addresses of counseling agencies or programs reasonably available to the consumer that have been certified or approved and made publicly available by the Secretary of Housing and Urban Development or a State housing finance authority (as defined in section 1441a–1 of title 12). (6)  The address, telephone number, and Internet address for the State housing finance authority (as so defined) for the State in which the consumer resides. (c)  Savings clause The Board may require the notice in paragraph (b) or other notice consistent with this chapter for adjustable rate mortgage loans that are not hybrid adjustable rate mortgage loans. § 1639.   Requirements for certain mortgages (a)  Disclosures (1)  Specific disclosures In addition to other disclosures required under this subchapter, for each mortgage referred to in section 1602(aa) of this title, the creditor shall provide the following disclosures in conspicuous type size: (A)   “You are not required to complete this agreement merely because you have received these disclosures or have signed a loan application.”. (B)  “If you obtain this loan, the lender will have a mortgage on your home. You could lose your home, and any money you have put into it, if you do not meet your obligations under the loan.”. (2)   Annual percentage rate In addition to the disclosures required under paragraph (1), the creditor shall disclose— (A)  in the case of a credit transaction with a fixed rate of interest, the annual percentage rate and the amount of the regular monthly payment; or (B)   in the case of any other credit transaction, the annual percentage rate of the loan, the amount of the regular monthly payment, a statement that the interest rate and monthly payment may increase, and the amount of the maximum monthly payment, based on the maximum interest rate allowed pursuant to section 3806 of title 12. (b)   Time of disclosures (1)  In general The disclosures required by this section shall be given not less than 3 business days prior to consummation of the transaction. (2)   New disclosures required (A)  In general After providing the disclosures required by this section, a creditor may not change the terms of the extension of credit if such changes make the disclosures inaccurate, unless new disclosures are provided that meet the requirements of this section. (B)  Telephone disclosure A creditor may provide new disclosures pursuant to subparagraph (A) by telephone, if—

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(i)   the change is initiated by the consumer; and

(I)   the creditor provides to the consumer the new disclosures, in writing; and

(A)   Limitation on terms

(B)  Construction

(d)   Limitations after default

(e)   No balloon payments

(f)   No negative amortization

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Index

1. So in original. There is no par. (2). 2. So in original. Probably should be “section”.

Part IX Ch. 68–72 Condos, etc.

A mortgage referred to in section 1602(aa) of this title may not include terms under which the outstanding principal balance will increase at any time over the course of the loan because the regular periodic payments do not cover the full amount of interest due.

Part VIII Ch. 64–67 L/T

No high-cost mortgage may contain a scheduled payment that is more than twice as large as the average of earlier scheduled payments. This subsection shall not apply when the payment schedule is adjusted to the seasonal or irregular income of the consumer.

Part VII Ch. 57–63 Litigation

A mortgage referred to in section 1602(aa) of this title may not provide for an interest rate applicable after default that is higher than the interest rate that applies before default. If the date of maturity of a mortgage referred to in subsection2 1602(aa) of this title is accelerated due to default and the consumer is entitled to a rebate of interest, that rebate shall be computed by any method that is not less favorable than the actuarial method (as that term is defined in section 1615(d) of this title).

Part VI Ch. 49–56 Taxation

For purposes of this subsection, any method of computing a refund of unearned scheduled interest is a prepayment penalty if it is less favorable to the consumer than the actuarial method (as that term is defined in section 1615(d) of this title).

Part V Ch. 41–48A Zoning, etc.

A mortgage referred to in section 1602(aa) of this title may not contain terms under which a consumer must pay a prepayment penalty for paying all or part of the principal before the date on which the principal is due.

Part IV Ch. 36–40 Insurance

(1)  In general1

Part III Ch. 23–35 Mortgages

(c)   No prepayment penalty

Part II Ch. 15–22 Deeds

(II)   the creditor and consumer certify in writing that the new disclosures were provided by telephone, by not later than 3 days prior to the date of consummation of the transaction. (3)   No wait for lower rate If a creditor extends to a consumer a second offer of credit with a lower annual percentage rate, the transaction may be consummated without regard to the period specified in paragraph (1) with respect to the second offer. (4)  Modifications The Bureau may, if it finds that such action is necessary to permit homeowners to meet bona fide personal financial emergencies, prescribe regulations authorizing the modification or waiver of rights created under this subsection, to the extent and under the circumstances set forth in those regulations.

Part I Ch. 1–14 Brokers

(ii)   at the consummation of the transaction under which the credit is extended—

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(g)   No prepaid payments A mortgage referred to in section 1602(aa) of this title may not include terms under which more than 2 periodic payments required under the loan are consolidated and paid in advance from the loan proceeds provided to the consumer. (h)   Prohibition on extending credit without regard to payment ability of consumer A creditor shall not engage in a pattern or practice of extending credit to consumers under mortgages referred to in section 1602(aa) of this title based on the consumers’ collateral without regard to the consumers’ repayment ability, including the consumers’ current and expected income, current obligations, and employment. (i)   Requirements for payments under home improvement contracts A creditor shall not make a payment to a contractor under a home improvement contract from amounts extended as credit under a mortgage referred to in section 1602(aa) of this title, other than— (1)   in the form of an instrument that is payable to the consumer or jointly to the consumer and the contractor; or (2)   at the election of the consumer, by a third party escrow agent in accordance with terms established in a written agreement signed by the consumer, the creditor, and the contractor before the date of payment. (j)  Recommended default No creditor shall recommend or encourage default on an existing loan or other debt prior to and in connection with the closing or planned closing of a high-cost mortgage that refinances all or any portion of such existing loan or debt. (k)  Late fees (1)  In general No creditor may impose a late payment charge or fee in connection with a high-cost mortgage— (A)  in an amount in excess of 4 percent of the amount of the payment past due; (B)   unless the loan documents specifically authorize the charge or fee; (C)  before the end of the 15-day period beginning on the date the payment is due, or in the case of a loan on which interest on each installment is paid in advance, before the end of the 30-day period beginning on the date the payment is due; or (D)   more than once with respect to a single late payment. (2)   Coordination with subsequent late fees If a payment is otherwise a full payment for the applicable period and is paid on its due date or within an applicable grace period, and the only delinquency or insufficiency of payment is attributable to any late fee or delinquency charge assessed on any earlier payment, no late fee or delinquency charge may be imposed on such payment. (3)   Failure to make installment payment If, in the case of a loan agreement the terms of which provide that any payment shall first be applied to any past due principal balance, the consumer fails to make an installment payment and the consumer subsequently resumes making installment payments but has not paid all past due installments, the creditor may impose a separate late payment charge or fee for any principal due (without deduction due to late fees or related fees) until the default is cured. (l)   Acceleration of debt No high-cost mortgage may contain a provision which permits the creditor to accelerate the indebtedness, except when repayment of the loan has been acceler-

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Part III Ch. 23–35 Mortgages Part IV Ch. 36–40 Insurance Part V Ch. 41–48A Zoning, etc. Part VI Ch. 49–56 Taxation Part VII Ch. 57–63 Litigation Part VIII Ch. 64–67 L/T Part IX Ch. 68–72 Condos, etc. Index

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Part II Ch. 15–22 Deeds

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Part I Ch. 1–14 Brokers

ated by default in payment, or pursuant to a due-on-sale provision, or pursuant to a material violation of some other provision of the loan document unrelated to payment schedule. (m)   Restriction on financing points and fees No creditor may directly or indirectly finance, in connection with any high-cost mortgage, any of the following: (1)   Any prepayment fee or penalty payable by the consumer in a refinancing transaction if the creditor or an affiliate of the creditor is the noteholder of the note being refinanced. (2)   Any points or fees. (n)   Consequence of failure to comply Any mortgage that contains a provision prohibited by this section shall be deemed a failure to deliver the material disclosures required under this subchapter, for the purpose of section 1635 of this title. (o)  “Affiliate” defined For purposes of this section, the term “affiliate” has the same meaning as in section 1841(k) of title 12. (p)   Discretionary regulatory authority of Bureau (1)  Exemptions The Bureau may, by regulation or order, exempt specific mortgage products or categories of mortgages from any or all of the prohibitions specified in subsections (c) through (i), if the Bureau finds that the exemption— (A)   is in the interest of the borrowing public; and (B)   will apply only to products that maintain and strengthen home ownership and equity protection. (2)  Prohibitions The Bureau, by regulation or order, shall prohibit acts or practices in connection with— (A)  mortgage loans that the Bureau finds to be unfair, deceptive, or designed to evade the provisions of this section; and (B)  refinancing of mortgage loans that the Bureau finds to be associated with abusive lending practices, or that are otherwise not in the interest of the borrower. (q)   Civil penalties in Federal Trade Commission enforcement actions For purposes of enforcement by the Federal Trade Commission, any violation of a regulation issued by the Bureau pursuant to subsection (l)(2) shall be treated as a violation of a rule promulgated under section 57a of this title regarding unfair or deceptive acts or practices. (r)   Prohibitions on evasions, structuring of transactions, and reciprocal arrangements A creditor may not take any action in connection with a high-cost mortgage— (1)  to structure a loan transaction as an open-end credit plan or another form of loan for the purpose and with the intent of evading the provisions of this subchapter; or (2)   to divide any loan transaction into separate parts for the purpose and with the intent of evading provisions of this subchapter. (s)   Modification and deferral fees prohibited A creditor, successor in interest, assignee, or any agent of any of the above, may not charge a consumer any fee to modify, renew, extend, or amend a highcost mortgage, or to defer any payment due under the terms of such mortgage.

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§ 1639

CONSUMER CREDIT DISCLOSURE

(t)  Payoff statement (1)  Fees (A)  In general Except as provided in subparagraph (B), no creditor or servicer may charge a fee for informing or transmitting to any person the balance due to pay off the outstanding balance on a high-cost mortgage. (B)  Transaction fee When payoff information referred to in subparagraph (A) is provided by facsimile transmission or by a courier service, a creditor or servicer may charge a processing fee to cover the cost of such transmission or service in an amount not to exceed an amount that is comparable to fees imposed for similar services provided in connection with consumer credit transactions that are secured by the consumer’s principal dwelling and are not high-cost mortgages. (C)  Fee disclosure Prior to charging a transaction fee as provided in subparagraph (B), a creditor or servicer shall disclose that payoff balances are available for free pursuant to subparagraph (A). (D)  Multiple requests If a creditor or servicer has provided payoff information referred to in subparagraph (A) without charge, other than the transaction fee allowed by subparagraph (B), on 4 occasions during a calendar year, the creditor or servicer may thereafter charge a reasonable fee for providing such information during the remainder of the calendar year. (2)  Prompt delivery Payoff balances shall be provided within 5 business days after receiving a request by a consumer or a person authorized by the consumer to obtain such information. (u)  Pre-loan counseling (1)  In general A creditor may not extend credit to a consumer under a high-cost mortgage without first receiving certification from a counselor that is approved by the Secretary of Housing and Urban Development, or at the discretion of the Secretary, a State housing finance authority, that the consumer has received counseling on the advisability of the mortgage. Such counselor shall not be employed by the creditor or an affiliate of the creditor or be affiliated with the creditor. (2)   Disclosures required prior to counseling No counselor may certify that a consumer has received counseling on the advisability of the high-cost mortgage unless the counselor can verify that the consumer has received each statement required (in connection with such loan) by this section or the Real Estate Settlement Procedures Act of 1974 [12 U.S.C. 2601 et seq.] with respect to the transaction. (3)  Regulations The Board3 may prescribe such regulations as the Board determines to be appropriate to carry out the requirements of paragraph (1). (v)   Corrections and unintentional violations A creditor or assignee in a high-cost mortgage who, when acting in good faith, fails to comply with any requirement under this section will not be deemed to have violated such requirement if the creditor or assignee establishes that either— 3. So in original. Probably should be “Bureau”.

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(A)   make the loan satisfy the requirements of this part; or

(A)   make the loan satisfy the requirements of this part; or (B)   in the case of a high-cost mortgage, change the terms of the loan in a manner beneficial so that the loan will no longer be a high-cost mortgage.

Part III Ch. 23–35 Mortgages

(2)   within 60 days of the creditor’s discovery or receipt of notification of an unintentional violation or bona fide error and prior to the institution of any action, the consumer is notified of the compliance failure, appropriate restitution is made, and whatever adjustments are necessary are made to the loan to either, at the choice of the consumer—

Part II Ch. 15–22 Deeds

(B)   in the case of a high-cost mortgage, change the terms of the loan in a manner beneficial to the consumer so that the loan will no longer be a high-cost mortgage; or

Part I Ch. 1–14 Brokers

(1)  within 30 days of the loan closing and prior to the institution of any action, the consumer is notified of or discovers the violation, appropriate restitution is made, and whatever adjustments are necessary are made to the loan to either, at the choice of the consumer—

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PART III

§ 1639a.   Duty of servicers of residential mortgages Notwithstanding any other provision of law, whenever a servicer of residential mortgages agrees to enter into a qualified loss mitigation plan with respect to 1 or more residential mortgages originated before May 20, 2009, including mortgages held in a securitization or other investment vehicle—

(A)   Default on the payment of such mortgage has occurred, is imminent, or is reasonably foreseeable, as such terms are defined by guidelines issued by the Secretary of the Treasury or his designee under the Emergency Economic Stabilization Act of 2008 [12 U.S.C. 5201 et seq.].

(b)  No liability

(c)   Standard industry practice

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The qualified loss mitigation plan guidelines issued by the Secretary of the Treasury under the Emergency Economic Stabilization Act of 2008 [12 U.S.C. 5201 et seq.] shall constitute standard industry practice for purposes of all Federal and State laws.

Part IX Ch. 68–72 Condos, etc.

A servicer that is deemed to be acting in the best interests of all investors or other parties under this section shall not be liable to any party who is owed a duty under subsection (a)(1), and shall not be subject to any injunction, stay, or other equitable relief to such party, based solely upon the implementation by the servicer of a qualified loss mitigation plan.

Part VIII Ch. 64–67 L/T

(C)  The servicer reasonably determined, consistent with the guidelines issued by the Secretary of the Treasury or his designee, that the application of such qualified loss mitigation plan to a mortgage or class of mortgages will likely provide an anticipated recovery on the outstanding principal mortgage debt that will exceed the anticipated recovery through foreclosures.

Part VII Ch. 57–63 Litigation

(B)  The mortgagor occupies the property securing the mortgage as his or her principal residence.

Part VI Ch. 49–56 Taxation

(2)  the servicer shall be deemed to have satisfied the duty set forth in paragraph (1) if, before December 31, 2012, the servicer implements a qualified loss mitigation plan that meets the following criteria:

Part V Ch. 41–48A Zoning, etc.

(1)  to the extent that the servicer owes a duty to investors or other parties to maximize the net present value of such mortgages, the duty shall be construed to apply to all such investors and parties, and not to any individual party or group of parties; and

Part IV Ch. 36–40 Insurance

(a)  In general

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§ 1639b

CONSUMER CREDIT DISCLOSURE

(d)   Scope of safe harbor Any person, including a trustee, issuer, and loan originator, shall not be liable for monetary damages or be subject to an injunction, stay, or other equitable relief, based solely upon the cooperation of such person with a servicer when such cooperation is necessary for the servicer to implement a qualified loss mitigation plan that meets the requirements of subsection (a). (e)  Reporting Each servicer that engages in qualified loss mitigation plans under this section shall regularly report to the Secretary of the Treasury the extent, scope, and results of the servicer’s modification activities. The Secretary of the Treasury shall prescribe regulations or guidance specifying the form, content, and timing of such reports. (f)  Definitions As used in this section— (1)   the term “qualified loss mitigation plan” means— (A)   a residential loan modification, workout, or other loss mitigation plan, including to the extent that the Secretary of the Treasury determines appropriate, a loan sale, real property disposition, trial modification, pre-foreclosure sale, and deed in lieu of foreclosure, that is described or authorized in guidelines issued by the Secretary of the Treasury or his designee under the Emergency Economic Stabilization Act of 2008 [12 U.S.C. 5201 et seq.]; and (B)   a refinancing of a mortgage under the Hope for Homeowners program; (2)   the term “servicer” means the person responsible for the servicing for others of residential mortgage loans (including of a pool of residential mortgage loans); and (3)   the term “securitization vehicle” means a trust, special purpose entity, or other legal structure that is used to facilitate the issuing of securities, participation certificates, or similar instruments backed by or referring to a pool of assets that includes residential mortgages (or instruments that are related to residential mortgages such as credit-linked notes). (g)   Rule of construction No provision of subsection (b) or (d) shall be construed as affecting the liability of any servicer or person as described in subsection (d) for actual fraud in the origination or servicing of a loan or in the implementation of a qualified loss mitigation plan, or for the violation of a State or Federal law, including laws regulating the origination of mortgage loans, commonly referred to as predatory lending laws. § 1639b.   Residential mortgage loan origination (a)   Finding and purpose (1)  Finding The Congress finds that economic stabilization would be enhanced by the protection, limitation, and regulation of the terms of residential mortgage credit and the practices related to such credit, while ensuring that responsible, affordable mortgage credit remains available to consumers. (2)  Purpose It is the purpose of this section and section 1639c of this title to assure that consumers are offered and receive residential mortgage loans on terms that reasonably reflect their ability to repay the loans and that are understandable and not unfair, deceptive or abusive. (b)   Duty of care

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Ch. 25

Part III Ch. 23–35 Mortgages Part IV Ch. 36–40 Insurance Part V Ch. 41–48A Zoning, etc. Part VI Ch. 49–56 Taxation Part VII Ch. 57–63 Litigation Part VIII Ch. 64–67 L/T Part IX Ch. 68–72 Condos, etc. Index

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(1)  Standard Subject to regulations prescribed under this subsection, each mortgage originator shall, in addition to the duties imposed by otherwise applicable provisions of State or Federal law— (A)   be qualified and, when required, registered and licensed as a mortgage originator in accordance with applicable State or Federal law, including the Secure and Fair Enforcement for Mortgage Licensing Act of 2008 [12 U.S.C. 5101 et seq.]; and (B)   include on all loan documents any unique identifier of the mortgage originator provided by the Nationwide Mortgage Licensing System and Registry. (2)   Compliance procedures required The Bureau shall prescribe regulations requiring depository institutions to establish and maintain procedures reasonably designed to assure and monitor the compliance of such depository institutions, the subsidiaries of such institutions, and the employees of such institutions or subsidiaries with the requirements of this section and the registration procedures established under section 1507 of the Secure and Fair Enforcement for Mortgage Licensing Act of 2008 [12 U.S.C. 5106]. (c)   Prohibition on steering incentives (1)  In general For any residential mortgage loan, no mortgage originator shall receive from any person and no person shall pay to a mortgage originator, directly or indirectly, compensation that varies based on the terms of the loan (other than the amount of the principal). (2)   Restructuring of financing origination fee (A)  In general For any mortgage loan, a mortgage originator may not receive from any person other than the consumer and no person, other than the consumer, who knows or has reason to know that a consumer has directly compensated or will directly compensate a mortgage originator may pay a mortgage originator any origination fee or charge except bona fide third party charges not retained by the creditor, mortgage originator, or an affiliate of the creditor or mortgage originator. (B)  Exception Notwithstanding subparagraph (A), a mortgage originator may receive from a person other than the consumer an origination fee or charge, and a person other than the consumer may pay a mortgage originator an origination fee or charge, if— (i)   the mortgage originator does not receive any compensation directly from the consumer; and (ii)   the consumer does not make an upfront payment of discount points, origination points, or fees, however denominated (other than bona fide third party charges not retained by the mortgage originator, creditor, or an affiliate of the creditor or originator), except that the Bureau may, by rule, waive or provide exemptions to this clause if the Bureau determines that such waiver or exemption is in the interest of consumers and in the public interest. (3)  Regulations The Bureau shall prescribe regulations to prohibit— (A)  mortgage originators from steering any consumer to a residential mortgage loan that—

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PART III

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§ 1639b

CONSUMER CREDIT DISCLOSURE

(i)   the consumer lacks a reasonable ability to repay (in accordance with regulations prescribed under section 1639c(a) of this title); or (ii)  has predatory characteristics or effects (such as equity stripping, excessive fees, or abusive terms); (B)   mortgage originators from steering any consumer from a residential mortgage loan for which the consumer is qualified that is a qualified mortgage (as defined in section 1639c(b)(2) of this title) to a residential mortgage loan that is not a qualified mortgage; (C)  abusive or unfair lending practices that promote disparities among consumers of equal credit worthiness but of different race, ethnicity, gender, or age; and (D)   mortgage originators from— (i)   mischaracterizing the credit history of a consumer or the residential mortgage loans available to a consumer; (ii)   mischaracterizing or suborning the mischaracterization of the appraised value of the property securing the extension of credit; or (iii)  if unable to suggest, offer, or recommend to a consumer a loan that is not more expensive than a loan for which the consumer qualifies, discouraging a consumer from seeking a residential mortgage loan secured by a consumer’s principal dwelling from another mortgage originator. (4)   Rules of construction No provision of this subsection shall be construed as— (A)   permitting any yield spread premium or other similar compensation that would, for any residential mortgage loan, permit the total amount of direct and indirect compensation from all sources permitted to a mortgage originator to vary based on the terms of the loan (other than the amount of the principal); (B)   limiting or affecting the amount of compensation received by a creditor upon the sale of a consummated loan to a subsequent purchaser; (C)   restricting a consumer’s ability to finance, at the option of the consumer, including through principal or rate, any origination fees or costs permitted under this subsection, or the mortgage originator’s right to receive such fees or costs (including compensation) from any person, subject to paragraph (2)(B), so long as such fees or costs do not vary based on the terms of the loan (other than the amount of the principal) or the consumer’s decision about whether to finance such fees or costs; or (D)   prohibiting incentive payments to a mortgage originator based on the number of residential mortgage loans originated within a specified period of time. (d)   Liability for violations (1)  In general For purposes of providing a cause of action for any failure by a mortgage originator, other than a creditor, to comply with any requirement imposed under this section and any regulation prescribed under this section, section 1640 of this title shall be applied with respect to any such failure by substituting “mortgage originator” for “creditor” each place such term appears in each such subsection.1 (2)  Maximum The maximum amount of any liability of a mortgage originator under paragraph (1) to a consumer for any violation of this section shall not exceed the 1. So in original. Probably should be “in such section.”

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Ch. 25

Part III Ch. 23–35 Mortgages Part IV Ch. 36–40 Insurance Part V Ch. 41–48A Zoning, etc. Part VI Ch. 49–56 Taxation Part VII Ch. 57–63 Litigation Part VIII Ch. 64–67 L/T Part IX Ch. 68–72 Condos, etc. Index

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Part II Ch. 15–22 Deeds

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greater of actual damages or an amount equal to 3 times the total amount of direct and indirect compensation or gain accruing to the mortgage originator in connection with the residential mortgage loan involved in the violation, plus the costs to the consumer of the action, including a reasonable attorney’s fee. (e)   Discretionary regulatory authority (1)  In general The Bureau shall, by regulations, prohibit or condition terms, acts or practices relating to residential mortgage loans that the Bureau finds to be abusive, unfair, deceptive, predatory, necessary or proper to ensure that responsible, affordable mortgage credit remains available to consumers in a manner consistent with the purposes of this section and section 1639c of this title, necessary or proper to effectuate the purposes of this section and section 1639c of this title, to prevent circumvention or evasion thereof, or to facilitate compliance with such sections, or are not in the interest of the borrower. (2)  Application The regulations prescribed under paragraph (1) shall be applicable to all residential mortgage loans and shall be applied in the same manner as regulations prescribed under section 1604 of this title. (f)  Timeshare plans This section and any regulations promulgated thereunder do not apply to an extension of credit relating to a plan described in section 101(53D) of title 11. § 1639c.   Minimum standards for residential mortgage loans (a)   Ability to repay (1)  In general In accordance with regulations prescribed by the Bureau, no creditor may make a residential mortgage loan unless the creditor makes a reasonable and good faith determination based on verified and documented information that, at the time the loan is consummated, the consumer has a reasonable ability to repay the loan, according to its terms, and all applicable taxes, insurance (including mortgage guarantee insurance), and assessments. (2)  Multiple loans If the creditor knows, or has reason to know, that 1 or more residential mortgage loans secured by the same dwelling will be made to the same consumer, the creditor shall make a reasonable and good faith determination, based on verified and documented information, that the consumer has a reasonable ability to repay the combined payments of all loans on the same dwelling according to the terms of those loans and all applicable taxes, insurance (including mortgage guarantee insurance), and assessments. (3)   Basis for determination A determination under this subsection of a consumer’s ability to repay a residential mortgage loan shall include consideration of the consumer’s credit history, current income, expected income the consumer is reasonably assured of receiving, current obligations, debt-to-income ratio or the residual income the consumer will have after paying non-mortgage debt and mortgage-related obligations, employment status, and other financial resources other than the consumer’s equity in the dwelling or real property that secures repayment of the loan. A creditor shall determine the ability of the consumer to repay using a payment schedule that fully amortizes the loan over the term of the loan. (4)  Income verification A creditor making a residential mortgage loan shall verify amounts of income or assets that such creditor relies on to determine repayment ability, including expected income or assets, by reviewing the consumer’s Internal Revenue

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§ 1639c

CONSUMER CREDIT DISCLOSURE

Service Form W–2, tax returns, payroll receipts, financial institution records, or other third-party documents that provide reasonably reliable evidence of the consumer’s income or assets. In order to safeguard against fraudulent reporting, any consideration of a consumer’s income history in making a determination under this subsection shall include the verification of such income by the use of— (A)   Internal Revenue Service transcripts of tax returns; or (B)   a method that quickly and effectively verifies income documentation by a third party subject to rules prescribed by the Bureau. (5)  Exemption With respect to loans made, guaranteed, or insured by Federal departments or agencies identified in subsection (b)(3)(B)(ii), such departments or agencies may exempt refinancings under a streamlined refinancing from this income verification requirement as long as the following conditions are met: (A)   The consumer is not 30 days or more past due on the prior existing residential mortgage loan. (B)   The refinancing does not increase the principal balance outstanding on the prior existing residential mortgage loan, except to the extent of fees and charges allowed by the department or agency making, guaranteeing, or insuring the refinancing. (C)   Total points and fees (as defined in section 1602(aa)(4) of this title, other than bona fide third party charges not retained by the mortgage originator, creditor, or an affiliate of the creditor or mortgage originator) payable in connection with the refinancing do not exceed 3 percent of the total new loan amount. (D)   The interest rate on the refinanced loan is lower than the interest rate of the original loan, unless the borrower is refinancing from an adjustable rate to a fixed-rate loan, under guidelines that the department or agency shall establish for loans they make, guarantee, or issue. (E)   The refinancing is subject to a payment schedule that will fully amortize the refinancing in accordance with the regulations prescribed by the department or agency making, guaranteeing, or insuring the refinancing. (F)   The terms of the refinancing do not result in a balloon payment, as defined in subsection (b)(2)(A)(ii). (G)   Both the residential mortgage loan being refinanced and the refinancing satisfy all requirements of the department or agency making, guaranteeing, or insuring the refinancing. (6)  Nonstandard loans (A)   Variable rate loans that defer repayment of any principal or interest For purposes of determining, under this subsection, a consumer’s ability to repay a variable rate residential mortgage loan that allows or requires the consumer to defer the repayment of any principal or interest, the creditor shall use a fully amortizing repayment schedule. (B)  Interest-only loans For purposes of determining, under this subsection, a consumer’s ability to repay a residential mortgage loan that permits or requires the payment of interest only, the creditor shall use the payment amount required to amortize the loan by its final maturity. (C)   Calculation for negative amortization In making any determination under this subsection, a creditor shall also take into consideration any balance increase that may accrue from any negative amortization provision.

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PART III

(D)  Calculation process

(i)   the loan proceeds are fully disbursed on the date of the consummation of the loan;

(ii)   consider if the extension of new credit would prevent a likely default should the original mortgage reset and give such concerns a higher priority as an acceptable underwriting practice; and

(7)   Fully-indexed rate defined

(8)   Reverse mortgages and bridge loans

(9)  Seasonal income

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If documented income, including income from a small business, is a repayment source for a residential mortgage loan, a creditor may consider the seasonality and irregularity of such income in the underwriting of and scheduling of payments for such credit.

Part IX Ch. 68–72 Condos, etc.

This subsection shall not apply with respect to any reverse mortgage or temporary or bridge loan with a term of 12 months or less, including to any loan to purchase a new dwelling where the consumer plans to sell a different dwelling within 12 months.

Part VIII Ch. 64–67 L/T

For purposes of this subsection, the term “fully indexed rate” means the index rate prevailing on a residential mortgage loan at the time the loan is made plus the margin that will apply after the expiration of any introductory interest rates.

Part VII Ch. 57–63 Litigation

(iii)   offer rate discounts and other favorable terms to such mortgagor that would be available to new customers with high credit ratings based on such underwriting practice.

Part VI Ch. 49–56 Taxation

(i)   consider the mortgagor’s good standing on the existing mortgage;

Part V Ch. 41–48A Zoning, etc.

In considering any application for refinancing an existing hybrid loan by the creditor into a standard loan to be made by the same creditor in any case in which there would be a reduction in monthly payment and the mortgagor has not been delinquent on any payment on the existing hybrid loan, the creditor may—

Part IV Ch. 36–40 Insurance

(E)   Refinance of hybrid loans with current lender

Part III Ch. 23–35 Mortgages

(iii)  the interest rate over the entire term of the loan is a fixed rate equal to the fully indexed rate at the time of the loan closing, without considering the introductory rate.

Part II Ch. 15–22 Deeds

(ii)   the loan is to be repaid in substantially equal monthly amortizing payments for principal and interest over the entire term of the loan with no balloon payment, unless the loan contract requires more rapid repayment (including balloon payment), in which case the calculation shall be made (I) in accordance with regulations prescribed by the Bureau, with respect to any loan which has an annual percentage rate that does not exceed the average prime offer rate for a comparable transaction, as of the date the interest rate is set, by 1.5 or more percentage points for a first lien residential mortgage loan; and by 3.5 or more percentage points for a subordinate lien residential mortgage loan; or (II) using the contract’s repayment schedule, with respect to a loan which has an annual percentage rate, as of the date the interest rate is set, that is at least 1.5 percentage points above the average prime offer rate for a first lien residential mortgage loan; and 3.5 percentage points above the average prime offer rate for a subordinate lien residential mortgage loan; and

Part I Ch. 1–14 Brokers

For purposes of making any determination under this subsection, a creditor shall calculate the monthly payment amount for principal and interest on any residential mortgage loan by assuming—

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§ 1639c

CONSUMER CREDIT DISCLOSURE

(b)   Presumption of ability to repay (1)  In general Any creditor with respect to any residential mortgage loan, and any assignee of such loan subject to liability under this subchapter, may presume that the loan has met the requirements of subsection (a), if the loan is a qualified mortgage. (2)  Definitions For purposes of this subsection, the following definitions shall apply: (A)  Qualified mortgage The term “qualified mortgage” means any residential mortgage loan— (i)   for which the regular periodic payments for the loan may not— (I)   result in an increase of the principal balance; or (II)   except as provided in subparagraph (E), allow the consumer to defer repayment of principal; (ii)   except as provided in subparagraph (E), the terms of which do not result in a balloon payment, where a “balloon payment” is a scheduled payment that is more than twice as large as the average of earlier scheduled payments; (iii)   for which the income and financial resources relied upon to qualify the obligors on the loan are verified and documented; (iv)  in the case of a fixed rate loan, for which the underwriting process is based on a payment schedule that fully amortizes the loan over the loan term and takes into account all applicable taxes, insurance, and assessments; (v)   in the case of an adjustable rate loan, for which the underwriting is based on the maximum rate permitted under the loan during the first 5 years, and a payment schedule that fully amortizes the loan over the loan term and takes into account all applicable taxes, insurance, and assessments; (vi)  that complies with any guidelines or regulations established by the Bureau relating to ratios of total monthly debt to monthly income or alternative measures of ability to pay regular expenses after payment of total monthly debt, taking into account the income levels of the borrower and such other factors as the Bureau may determine relevant and consistent with the purposes described in paragraph (3)(B)(i); (vii)  for which the total points and fees (as defined in subparagraph (C)) payable in connection with the loan do not exceed 3 percent of the total loan amount; (viii)   for which the term of the loan does not exceed 30 years, except as such term may be extended under paragraph (3), such as in high-cost areas; and (ix)   in the case of a reverse mortgage (except for the purposes of subsection (a) of this section, to the extent that such mortgages are exempt altogether from those requirements), a reverse mortgage which meets the standards for a qualified mortgage, as set by the Bureau in rules that are consistent with the purposes of this subsection. (B)   Average prime offer rate The term “average prime offer rate” means the average prime offer rate for a comparable transaction as of the date on which the interest rate for the transaction is set, as published by the Bureau.1 1. So in original.

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Part III Ch. 23–35 Mortgages Part IV Ch. 36–40 Insurance Part V Ch. 41–48A Zoning, etc. Part VI Ch. 49–56 Taxation Part VII Ch. 57–63 Litigation Part VIII Ch. 64–67 L/T Part IX Ch. 68–72 Condos, etc. Index

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(C)   Points and fees (i)  In general For purposes of subparagraph (A), the term “points and fees” means points and fees as defined by section 1602(aa)(4) of this title (other than bona fide third party charges not retained by the mortgage originator, creditor, or an affiliate of the creditor or mortgage originator). (ii)  Computation For purposes of computing the total points and fees under this subparagraph, the total points and fees shall exclude either of the amounts described in the following subclauses, but not both: (I)  Up to and including 2 bona fide discount points payable by the consumer in connection with the mortgage, but only if the interest rate from which the mortgage’s interest rate will be discounted does not exceed by more than 1 percentage point the average prime offer rate. (II)  Unless 2 bona fide discount points have been excluded under subclause (I), up to and including 1 bona fide discount point payable by the consumer in connection with the mortgage, but only if the interest rate from which the mortgage’s interest rate will be discounted does not exceed by more than 2 percentage points the average prime offer rate. (iii)   Bona fide discount points defined For purposes of clause (ii), the term “bona fide discount points” means loan discount points which are knowingly paid by the consumer for the purpose of reducing, and which in fact result in a bona fide reduction of, the interest rate or time-price differential applicable to the mortgage. (iv)   Interest rate reduction Subclauses (I) and (II) of clause (ii) shall not apply to discount points used to purchase an interest rate reduction unless the amount of the interest rate reduction purchased is reasonably consistent with established industry norms and practices for secondary mortgage market transactions. (D)  Smaller loans The Bureau shall prescribe rules adjusting the criteria under subparagraph (A)(vii) in order to permit lenders that extend smaller loans to meet the requirements of the presumption of compliance under paragraph (1). In prescribing such rules, the Bureau shall consider the potential impact of such rules on rural areas and other areas where home values are lower. (E)  Balloon loans The Bureau may, by regulation, provide that the term “qualified mortgage” includes a balloon loan— (i)   that meets all of the criteria for a qualified mortgage under subparagraph (A) (except clauses (i)(II), (ii), (iv), and (v) of such subparagraph); (ii)   for which the creditor makes a determination that the consumer is able to make all scheduled payments, except the balloon payment, out of income or assets other than the collateral; (iii)   for which the underwriting is based on a payment schedule that fully amortizes the loan over a period of not more than 30 years and takes into account all applicable taxes, insurance, and assessments; and (iv)   that is extended by a creditor that— (I)   operates in rural or underserved areas; (II)   together with all affiliates, has total annual residential mortgage loan originations that do not exceed a limit set by the Bureau; (III)   retains the balloon loans in portfolio; and

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§ 1639c

CONSUMER CREDIT DISCLOSURE

(IV)  meets any asset size threshold and any other criteria as the Bureau may establish, consistent with the purposes of this part. (F)  Safe harbor (i)  Definitions In this subparagraph— (I)   the term “covered institution” means an insured depository institution or an insured credit union that, together with its affiliates, has less than $10,000,000,000 in total consolidated assets; (II)   the term “insured credit union” has the meaning given the term in section 1752 of title 12; (III)   the term “insured depository institution” has the meaning given the term in section 1813 of title 12; (IV)   the term “interest-only” means that, under the terms of the legal obligation, one or more of the periodic payments may be applied solely to accrued interest and not to loan principal; and (V)   the term “negative amortization” means payment of periodic payments that will result in an increase in the principal balance under the terms of the legal obligation. (ii)  Safe harbor In this section— (I)   the term “qualified mortgage” includes any residential mortgage loan— (aa)  that is originated and retained in portfolio by a covered institution; (bb)   that is in compliance with the limitations with respect to prepayment penalties described in subsections (c)(1) and (c)(3); (cc)   that is in compliance with the requirements of clause (vii) of subparagraph (A); (dd)   that does not have negative amortization or interest-only features; and (ee)   for which the covered institution considers and documents the debt, income, and financial resources of the consumer in accordance with clause (iv); and (II)  a residential mortgage loan described in subclause (I) shall be deemed to meet the requirements of subsection (a). (iii)   Exception for certain transfers A residential mortgage loan described in clause (ii)(I) shall not qualify for the safe harbor under clause (ii) if the legal title to the residential mortgage loan is sold, assigned, or otherwise transferred to another person unless the residential mortgage loan is sold, assigned, or otherwise transferred— (I)  to another person by reason of the bankruptcy or failure of a covered institution; (II)   to a covered institution so long as the loan is retained in portfolio by the covered institution to which the loan is sold, assigned, or otherwise transferred; (III)   pursuant to a merger of a covered institution with another person or the acquisition of a covered institution by another person or of another person by a covered institution, so long as the loan is retained in portfolio by the person to whom the loan is sold, assigned, or otherwise transferred; or (IV)   to a wholly owned subsidiary of a covered institution, provided that, after the sale, assignment, or transfer, the residential mortgage

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Part IV Ch. 36–40 Insurance Part V Ch. 41–48A Zoning, etc. Part VI Ch. 49–56 Taxation Part VII Ch. 57–63 Litigation Part VIII Ch. 64–67 L/T Part IX Ch. 68–72 Condos, etc. Index

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Part II Ch. 15–22 Deeds

2. So in original. Probably should be followed by “to”.

Part I Ch. 1–14 Brokers

loan is considered to be an asset of the covered institution for regulatory accounting purposes. (iv)   Consideration and documentation requirements The consideration and documentation requirements described in clause (ii)(I)(ee) shall— (I)  not be construed to require compliance with, or documentation in accordance with, appendix Q to part 1026 of title 12, Code of Federal Regulations, or any successor regulation; and (II)   be construed to permit multiple methods of documentation. (3)  Regulations (A)  In general The Bureau shall prescribe regulations to carry out the purposes of this subsection. (B)   Revision of safe harbor criteria (i)  In general The Bureau may prescribe regulations that revise, add to, or subtract from the criteria that define a qualified mortgage upon a finding that such regulations are necessary or proper to ensure that responsible, affordable mortgage credit remains available to consumers in a manner consistent with the purposes of this section, necessary and appropriate to effectuate the purposes of this section and section 1639b of this title, to prevent circumvention or evasion thereof, or to facilitate compliance with such sections. (ii)  Loan definition The following agencies shall, in consultation with the Bureau, prescribe rules defining the types of loans they insure, guarantee, or administer, as the case may be, that are qualified mortgages for purposes of paragraph (2)(A), and such rules may revise, add to, or subtract from the criteria used to define a qualified mortgage under paragraph (2)(A), upon a finding that such rules are consistent with the purposes of this section and section 1639b of this title, to prevent circumvention or evasion thereof, or to facilitate compliance with such sections: (I)   The Department of Housing and Urban Development, with regard to mortgages insured under the National Housing Act [12 U.S.C. 1701 et seq.]. (II)   The Department of Veterans Affairs, with regard to a loan made or guaranteed by the Secretary of Veterans Affairs. (III)   The Department of Agriculture, with regard2 loans guaranteed by the Secretary of Agriculture pursuant to section 1472(h) of title 42. (IV)   The Rural Housing Service, with regard to loans insured by the Rural Housing Service. (c)   Prohibition on certain prepayment penalties (1)   Prohibited on certain loans (A)  In general A residential mortgage loan that is not a “qualified mortgage”, as defined under subsection (b)(2), may not contain terms under which a consumer must pay a prepayment penalty for paying all or part of the principal after the loan is consummated.

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§ 1639c

CONSUMER CREDIT DISCLOSURE

(B)  Exclusions For purposes of this subsection, a “qualified mortgage” may not include a residential mortgage loan that— (i)   has an adjustable rate; or (ii)   has an annual percentage rate that exceeds the average prime offer rate for a comparable transaction, as of the date the interest rate is set— (I)   by 1.5 or more percentage points, in the case of a first lien residential mortgage loan having a original principal obligation amount that is equal to or less than the amount of the maximum limitation on the original principal obligation of mortgage in effect for a residence of the applicable size, as of the date of such interest rate set, pursuant to the 6th sentence of section 1454(a)(2) of title 12; (II)   by 2.5 or more percentage points, in the case of a first lien residential mortgage loan having a original principal obligation amount that is more than the amount of the maximum limitation on the original principal obligation of mortgage in effect for a residence of the applicable size, as of the date of such interest rate set, pursuant to the 6th sentence of section 1454(a)(2) of title 12; and (III)   by 3.5 or more percentage points, in the case of a subordinate lien residential mortgage loan. (2)   Publication of average prime offer rate and APR thresholds The Bureau— (A)   shall publish, and update at least weekly, average prime offer rates; (B)   may publish multiple rates based on varying types of mortgage transactions; and (C)   shall adjust the thresholds established under subclause (I), (II), and (III) of paragraph (1)(B)(ii) as necessary to reflect significant changes in market conditions and to effectuate the purposes of the Mortgage Reform and Anti-Predatory Lending Act. (3)   Phased-out penalties on qualified mortgages A qualified mortgage (as defined in subsection (b)(2)) may not contain terms under which a consumer must pay a prepayment penalty for paying all or part of the principal after the loan is consummated in excess of the following limitations: (A)   During the 1-year period beginning on the date the loan is consummated, the prepayment penalty shall not exceed an amount equal to 3 percent of the outstanding balance on the loan. (B)   During the 1-year period beginning after the period described in subparagraph (A), the prepayment penalty shall not exceed an amount equal to 2 percent of the outstanding balance on the loan. (C)   During the 1-year period beginning after the 1-year period described in subparagraph (B), the prepayment penalty shall not exceed an amount equal to 1 percent of the outstanding balance on the loan. (D)  After the end of the 3-year period beginning on the date the loan is consummated, no prepayment penalty may be imposed on a qualified mortgage. (4)   Option for no prepayment penalty required A creditor may not offer a consumer a residential mortgage loan product that has a prepayment penalty for paying all or part of the principal after the loan is consummated as a term of the loan without offering the consumer a residential mortgage loan product that does not have a prepayment penalty as a term of the loan.

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Part III Ch. 23–35 Mortgages Part IV Ch. 36–40 Insurance Part V Ch. 41–48A Zoning, etc. Part VI Ch. 49–56 Taxation Part VII Ch. 57–63 Litigation Part VIII Ch. 64–67 L/T Part IX Ch. 68–72 Condos, etc. Index

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Part II Ch. 15–22 Deeds

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(d)   Single premium credit insurance prohibited No creditor may finance, directly or indirectly, in connection with any residential mortgage loan or with any extension of credit under an open end consumer credit plan secured by the principal dwelling of the consumer, any credit life, credit disability, credit unemployment, or credit property insurance, or any other accident, loss-of-income, life, or health insurance, or any payments directly or indirectly for any debt cancellation or suspension agreement or contract, except that— (1)   insurance premiums or debt cancellation or suspension fees calculated and paid in full on a monthly basis shall not be considered financed by the creditor; and (2)  this subsection shall not apply to credit unemployment insurance for which the unemployment insurance premiums are reasonable, the creditor receives no direct or indirect compensation in connection with the unemployment insurance premiums, and the unemployment insurance premiums are paid pursuant to another insurance contract and not paid to an affiliate of the creditor. (e)  Arbitration (1)  In general No residential mortgage loan and no extension of credit under an open end consumer credit plan secured by the principal dwelling of the consumer may include terms which require arbitration or any other nonjudicial procedure as the method for resolving any controversy or settling any claims arising out of the transaction. (2)  Post-controversy agreements Subject to paragraph (3), paragraph (1) shall not be construed as limiting the right of the consumer and the creditor or any assignee to agree to arbitration or any other nonjudicial procedure as the method for resolving any controversy at any time after a dispute or claim under the transaction arises. (3)   No waiver of statutory cause of action No provision of any residential mortgage loan or of any extension of credit under an open end consumer credit plan secured by the principal dwelling of the consumer, and no other agreement between the consumer and the creditor relating to the residential mortgage loan or extension of credit referred to in paragraph (1), shall be applied or interpreted so as to bar a consumer from bringing an action in an appropriate district court of the United States, or any other court of competent jurisdiction, pursuant to section 1640 of this title or any other provision of law, for damages or other relief in connection with any alleged violation of this section, any other provision of this subchapter, or any other Federal law. (f)   Mortgages with negative amortization No creditor may extend credit to a borrower in connection with a consumer credit transaction under an open or closed end consumer credit plan secured by a dwelling or residential real property that includes a dwelling, other than a reverse mortgage, that provides or permits a payment plan that may, at any time over the term of the extension of credit, result in negative amortization unless, before such transaction is consummated— (1)   the creditor provides the consumer with a statement that— (A)  the pending transaction will or may, as the case may be, result in negative amortization; (B)   describes negative amortization in such manner as the Bureau shall prescribe;

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§ 1639d

CONSUMER CREDIT DISCLOSURE

(C)   negative amortization increases the outstanding principal balance of the account; and (D)   negative amortization reduces the consumer’s equity in the dwelling or real property; and (2)   in the case of a first-time borrower with respect to a residential mortgage loan that is not a qualified mortgage, the first-time borrower provides the creditor with sufficient documentation to demonstrate that the consumer received homeownership counseling from organizations or counselors certified by the Secretary of Housing and Urban Development as competent to provide such counseling. (g)   Protection against loss of anti-deficiency protection (1)  Definition For purposes of this subsection, the term “anti-deficiency law” means the law of any State which provides that, in the event of foreclosure on the residential property of a consumer securing a mortgage, the consumer is not liable, in accordance with the terms and limitations of such State law, for any deficiency between the sale price obtained on such property through foreclosure and the outstanding balance of the mortgage. (2)   Notice at time of consummation In the case of any residential mortgage loan that is, or upon consummation will be, subject to protection under an anti-deficiency law, the creditor or mortgage originator shall provide a written notice to the consumer describing the protection provided by the anti-deficiency law and the significance for the consumer of the loss of such protection before such loan is consummated. (3)   Notice before refinancing that would cause loss of protection In the case of any residential mortgage loan that is subject to protection under an anti-deficiency law, if a creditor or mortgage originator provides an application to a consumer, or receives an application from a consumer, for any type of refinancing for such loan that would cause the loan to lose the protection of such anti-deficiency law, the creditor or mortgage originator shall provide a written notice to the consumer describing the protection provided by the anti-deficiency law and the significance for the consumer of the loss of such protection before any agreement for any such refinancing is consummated. (h)   Policy regarding acceptance of partial payment In the case of any residential mortgage loan, a creditor shall disclose prior to settlement or, in the case of a person becoming a creditor with respect to an existing residential mortgage loan, at the time such person becomes a creditor— (1)   the creditor’s policy regarding the acceptance of partial payments; and (2)   if partial payments are accepted, how such payments will be applied to such mortgage and if such payments will be placed in escrow. (i)  Timeshare plans This section and any regulations promulgated under this section do not apply to an extension of credit relating to a plan described in section 101(53D) of title 11. § 1639d.   Escrow or impound accounts relating to certain consumer credit transactions (a)  In general Except as provided in subsection (b), (c), (d), or (e), a creditor, in connection with the consummation of a consumer credit transaction secured by a first lien on the principal dwelling of the consumer, other than a consumer credit transaction under an open end credit plan or a reverse mortgage, shall establish, before the consummation of such transaction, an escrow or impound account for the payment of taxes and hazard insurance, and, if applicable, flood insurance,

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mortgage insurance, ground rents, and any other required periodic payments or premiums with respect to the property or the loan terms, as provided in, and in accordance with, this section. (b)  When required No impound, trust, or other type of account for the payment of property taxes, insurance premiums, or other purposes relating to the property may be required as a condition of a real property sale contract or a loan secured by a first deed of trust or mortgage on the principal dwelling of the consumer, other than a consumer credit transaction under an open end credit plan or a reverse mortgage, except when— (1)  any such impound, trust, or other type of escrow or impound account for such purposes is required by Federal or State law; (2)  a loan is made, guaranteed, or insured by a State or Federal governmental lending or insuring agency; (3)   the transaction is secured by a first mortgage or lien on the consumer’s principal dwelling having an original principal obligation amount that— (A)   does not exceed the amount of the maximum limitation on the original principal obligation of mortgage in effect for a residence of the applicable size, as of the date such interest rate set, pursuant to the sixth sentence of section 1454(a)(2) of title 12, and the annual percentage rate will exceed the average prime offer rate as defined in section 1639c of this title by 1.5 or more percentage points; or (B)   exceeds the amount of the maximum limitation on the original principal obligation of mortgage in effect for a residence of the applicable size, as of the date such interest rate set, pursuant to the sixth sentence of section 1454(a)(2) of title 12, and the annual percentage rate will exceed the average prime offer rate as defined in section 1639c of this title by 2.5 or more percentage points; or (4)   so required pursuant to regulation. (c)  Exemptions (1)  In general The Bureau may, by regulation, exempt from the requirements of subsection (a) a creditor that— (A)   operates in rural or underserved areas; (B)   together with all affiliates, has total annual mortgage loan originations that do not exceed a limit set by the Bureau; (C)   retains its mortgage loan originations in portfolio; and (D)   meets any asset size threshold and any other criteria the Bureau may establish, consistent with the purposes of this part. (2)   Treatment of loans held by smaller institutions The Bureau shall, by regulation, exempt from the requirements of subsection (a) any loan made by an insured depository institution or an insured credit union secured by a first lien on the principal dwelling of a consumer if— (A)   the insured depository institution or insured credit union has assets of $10,000,000,000 or less; (B)  during the preceding calendar year, the insured depository institution or insured credit union and its affiliates originated 1,000 or fewer loans secured by a first lien on a principal dwelling; and (C)   the transaction satisfies the criteria in sections 1026.35(b)(2)(iii)(A), 1026.35(b)(2)(iii)(D), and 1026.35(b)(2)(v) of title 12, Code of Federal Regulations, or any successor regulation.

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CONSUMER CREDIT DISCLOSURE

(d)   Duration of mandatory escrow or impound account An escrow or impound account established pursuant to subsection (b) shall remain in existence for a minimum period of 5 years, beginning with the date of the consummation of the loan, unless and until— (1)  such borrower has sufficient equity in the dwelling securing the consumer credit transaction so as to no longer be required to maintain private mortgage insurance; (2)   such borrower is delinquent; (3)   such borrower otherwise has not complied with the legal obligation, as established by rule; or (4)   the underlying mortgage establishing the account is terminated. (e)   Limited exemptions for loans secured by shares in a cooperative or in which an association must maintain a master insurance policy Escrow accounts need not be established for loans secured by shares in a cooperative. Insurance premiums need not be included in escrow accounts for loans secured by dwellings or units, where the borrower must join an association as a condition of ownership, and that association has an obligation to the dwelling or unit owners to maintain a master policy insuring the dwellings or units. (f)   Clarification on escrow accounts for loans not meeting statutory test For mortgages not covered by the requirements of subsection (b), no provision of this section shall be construed as precluding the establishment of an impound, trust, or other type of account for the payment of property taxes, insurance premiums, or other purposes relating to the property— (1)   on terms mutually agreeable to the parties to the loan; (2)   at the discretion of the lender or servicer, as provided by the contract between the lender or servicer and the borrower; or (3)   pursuant to the requirements for the escrowing of flood insurance payments for regulated lending institutions in section 102(d) of the Flood Disaster Protection Act of 1973 [42 U.S.C. 4012a(d)]. (g)   Administration of mandatory escrow or impound accounts (1)  In general Except as may otherwise be provided for in this subchapter or in regulations prescribed by the Bureau, escrow or impound accounts established pursuant to subsection (b) shall be established in a federally insured depository institution or credit union. (2)  Administration Except as provided in this section or regulations prescribed under this section, an escrow or impound account subject to this section shall be administered in accordance with— (A)   the Real Estate Settlement Procedures Act of 1974 [12 U.S.C. 2601 et seq.] and regulations prescribed under such Act; (B)   the Flood Disaster Protection Act of 1973 and regulations prescribed under such Act; and (C)   the law of the State, if applicable, where the real property securing the consumer credit transaction is located. (3)   Applicability of payment of interest If prescribed by applicable State or Federal law, each creditor shall pay interest to the consumer on the amount held in any impound, trust, or escrow account that is subject to this section in the manner as prescribed by that applicable State or Federal law.

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Part III Ch. 23–35 Mortgages Part IV Ch. 36–40 Insurance Part V Ch. 41–48A Zoning, etc. Part VI Ch. 49–56 Taxation Part VII Ch. 57–63 Litigation Part VIII Ch. 64–67 L/T Part IX Ch. 68–72 Condos, etc. Index

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(4)   Penalty coordination with RESPA Any action or omission on the part of any person which constitutes a violation of the Real Estate Settlement Procedures Act of 1974 or any regulation prescribed under such Act for which the person has paid any fine, civil money penalty, or other damages shall not give rise to any additional fine, civil money penalty, or other damages under this section, unless the action or omission also constitutes a direct violation of this section. (h)   Disclosures relating to mandatory escrow or impound account In the case of any impound, trust, or escrow account that is required under subsection (b), the creditor shall disclose by written notice to the consumer at least 3 business days before the consummation of the consumer credit transaction giving rise to such account or in accordance with timeframes established in prescribed regulations the following information: (1)   The fact that an escrow or impound account will be established at consummation of the transaction. (2)   The amount required at closing to initially fund the escrow or impound account. (3)   The amount, in the initial year after the consummation of the transaction, of the estimated taxes and hazard insurance, including flood insurance, if applicable, and any other required periodic payments or premiums that reflects, as appropriate, either the taxable assessed value of the real property securing the transaction, including the value of any improvements on the property or to be constructed on the property (whether or not such construction will be financed from the proceeds of the transaction) or the replacement costs of the property. (4)   The estimated monthly amount payable to be escrowed for taxes, hazard insurance (including flood insurance, if applicable) and any other required periodic payments or premiums. (5)   The fact that, if the consumer chooses to terminate the account in the future, the consumer will become responsible for the payment of all taxes, hazard insurance, and flood insurance, if applicable, as well as any other required periodic payments or premiums on the property unless a new escrow or impound account is established. (6)  Such other information as the Bureau determines necessary for the protection of the consumer. (i)  Definitions For purposes of this section, the following definitions shall apply: (1)  Flood insurance The term “flood insurance” means flood insurance coverage provided under the national flood insurance program pursuant to the National Flood Insurance Act of 1968 [42 U.S.C. 4001 et seq.]. (2)  Hazard insurance The term “hazard insurance” shall have the same meaning as provided for “hazard insurance”, “casualty insurance”, “homeowner’s insurance”, or other similar term under the law of the State where the real property securing the consumer credit transaction is located. (3)   Insured credit union The term “insured credit union” has the meaning given the term in section 1752 of title 12. (4)   Insured depository institution The term “insured depository institution” has the meaning given the term in section 1813 of title 12.

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CONSUMER CREDIT DISCLOSURE

(j)   Disclosure notice required for consumers who waive escrow services (1)  In general If— (A)   an impound, trust, or other type of account for the payment of property taxes, insurance premiums, or other purposes relating to real property securing a consumer credit transaction is not established in connection with the transaction; or (B)  a consumer chooses, and provides written notice to the creditor or servicer of such choice, at any time after such an account is established in connection with any such transaction and in accordance with any statute, regulation, or contractual agreement, to close such account, the creditor or servicer shall provide a timely and clearly written disclosure to the consumer that advises the consumer of the responsibilities of the consumer and implications for the consumer in the absence of any such account. (2)  Disclosure requirements Any disclosure provided to a consumer under paragraph (1) shall include the following: (A)   Information concerning any applicable fees or costs associated with either the non-establishment of any such account at the time of the transaction, or any subsequent closure of any such account. (B)   A clear and prominent statement that the consumer is responsible for personally and directly paying the non-escrowed items, in addition to paying the mortgage loan payment, in the absence of any such account, and the fact that the costs for taxes, insurance, and related fees can be substantial. (C)  A clear explanation of the consequences of any failure to pay nonescrowed items, including the possible requirement for the forced placement of insurance by the creditor or servicer and the potentially higher cost (including any potential commission payments to the servicer) or reduced coverage for the consumer in the event of any such creditor-placed insurance. (D)   Such other information as the Bureau determines necessary for the protection of the consumer. § 1639e.   Appraisal independence requirements (a)  In general It shall be unlawful, in extending credit or in providing any services for a consumer credit transaction secured by the principal dwelling of the consumer, to engage in any act or practice that violates appraisal independence as described in or pursuant to regulations prescribed under this section. (b)  Appraisal independence For purposes of subsection (a), acts or practices that violate appraisal independence shall include— (1)   any appraisal of a property offered as security for repayment of the consumer credit transaction that is conducted in connection with such transaction in which a person with an interest in the underlying transaction compensates, coerces, extorts, colludes, instructs, induces, bribes, or intimidates a person, appraisal management company, firm, or other entity conducting or involved in an appraisal, or attempts, to compensate, coerce, extort, collude, instruct, induce, bribe, or intimidate such a person, for the purpose of causing the appraised value assigned, under the appraisal, to the property to be based on any factor other than the independent judgment of the appraiser; (2)  mischaracterizing, or suborning any mischaracterization of, the appraised value of the property securing the extension of the credit;

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1. So in original. Probably should be “subsection”.

Part I Ch. 1–14 Brokers

(3)   seeking to influence an appraiser or otherwise to encourage a targeted value in order to facilitate the making or pricing of the transaction; and (4)   withholding or threatening to withhold timely payment for an appraisal report or for appraisal services rendered when the appraisal report or services are provided for in accordance with the contract between the parties. (c)  Exceptions The requirements of subsection (b) shall not be construed as prohibiting a mortgage lender, mortgage broker, mortgage banker, real estate broker, appraisal management company, employee of an appraisal management company, consumer, or any other person with an interest in a real estate transaction from asking an appraiser to undertake 1 or more of the following: (1)  Consider additional, appropriate property information, including the consideration of additional comparable properties to make or support an appraisal. (2)   Provide further detail, substantiation, or explanation for the appraiser’s value conclusion. (3)   Correct errors in the appraisal report. (d)   Prohibitions on conflicts of interest No certified or licensed appraiser conducting, and no appraisal management company procuring or facilitating, an appraisal in connection with a consumer credit transaction secured by the principal dwelling of a consumer may have a direct or indirect interest, financial or otherwise, in the property or transaction involving the appraisal. (e)  Mandatory reporting Any mortgage lender, mortgage broker, mortgage banker, real estate broker, appraisal management company, employee of an appraisal management company, or any other person involved in a real estate transaction involving an appraisal in connection with a consumer credit transaction secured by the principal dwelling of a consumer who has a reasonable basis to believe an appraiser is failing to comply with the Uniform Standards of Professional Appraisal Practice, is violating applicable laws, or is otherwise engaging in unethical or unprofessional conduct, shall refer the matter to the applicable State appraiser certifying and licensing agency. (f)   No extension of credit In connection with a consumer credit transaction secured by a consumer’s principal dwelling, a creditor who knows, at or before loan consummation, of a violation of the appraisal independence standards established in subsections1 (b) or (d) shall not extend credit based on such appraisal unless the creditor documents that the creditor has acted with reasonable diligence to determine that the appraisal does not materially misstate or misrepresent the value of such dwelling. (g)   Rules and interpretive guidelines (1)  In general Except as provided under paragraph (2), the Board, the Comptroller of the Currency, the Federal Deposit Insurance Corporation, the National Credit Union Administration Board, the Federal Housing Finance Agency, and the Bureau may jointly issue rules, interpretive guidelines, and general statements of policy with respect to acts or practices that violate appraisal independence in the provision of mortgage lending services for a consumer credit transaction secured by the principal dwelling of the consumer and mortgage brokerage services for such a transaction, within the meaning of subsections (a), (b), (c), (d), (e), (f), (h), and (i).

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CONSUMER CREDIT DISCLOSURE

(2)   Interim final regulations The Board shall, for purposes of this section, prescribe interim final regulations no later than 90 days after July 21, 2010, defining with specificity acts or practices that violate appraisal independence in the provision of mortgage lending services for a consumer credit transaction secured by the principal dwelling of the consumer or mortgage brokerage services for such a transaction and defining any terms in this section or such regulations. Rules prescribed by the Board under this paragraph shall be deemed to be rules prescribed by the agencies jointly under paragraph (1). (h)   Appraisal report portability Consistent with the requirements of this section, the Board, the Comptroller of the Currency, the Federal Deposit Insurance Corporation, the National Credit Union Administration Board, the Federal Housing Finance Agency, and the Bureau may jointly issue regulations that address the issue of appraisal report portability, including regulations that ensure the portability of the appraisal report between lenders for a consumer credit transaction secured by a 1-4 unit single family residence that is the principal dwelling of the consumer, or mortgage brokerage services for such a transaction. (i)   Customary and reasonable fee (1)  In general Lenders and their agents shall compensate fee appraisers at a rate that is customary and reasonable for appraisal services performed in the market area of the property being appraised. Evidence for such fees may be established by objective third-party information, such as government agency fee schedules, academic studies, and independent private sector surveys. Fee studies shall exclude assignments ordered by known appraisal management companies. (2)   Fee appraiser definition (A)  In general For purposes of this section, the term “fee appraiser” means a person who is not an employee of the mortgage loan originator or appraisal management company engaging the appraiser and is— (i)   a State licensed or certified appraiser who receives a fee for performing an appraisal and certifies that the appraisal has been prepared in accordance with the Uniform Standards of Professional Appraisal Practice; or (ii)   a company not subject to the requirements of section 3353 of title 12 that utilizes the services of State licensed or certified appraisers and receives a fee for performing appraisals in accordance with the Uniform Standards of Professional Appraisal Practice. (B)   Rule of construction related to appraisal donations If a fee appraiser voluntarily donates appraisal services to an organization eligible to receive tax-deductible charitable contributions, such voluntary donation shall be considered customary and reasonable for the purposes of paragraph (1). (3)   Exception for complex assignments In the case of an appraisal involving a complex assignment, the customary and reasonable fee may reflect the increased time, difficulty, and scope of the work required for such an appraisal and include an amount over and above the customary and reasonable fee for non-complex assignments. (j)  Sunset Effective on the date the interim final regulations are promulgated pursuant to subsection (g), the Home Valuation Code of Conduct announced by the Federal Housing Finance Agency on December 23, 2008, shall have no force or effect.

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§ 1639h.   Property appraisal requirements (a)  In general A creditor may not extend credit in the form of a higher-risk mortgage to any consumer without first obtaining a written appraisal of the property to be mortgaged prepared in accordance with the requirements of this section. (b)  Appraisal requirements (1)   Physical property visit Subject to the rules prescribed under paragraph (4), an appraisal of property to be secured by a higher-risk mortgage does not meet the requirement of this section unless it is performed by a certified or licensed appraiser who conducts a physical property visit of the interior of the mortgaged property. (2)   Second appraisal under certain circumstances (A)  In general If the purpose of a higher-risk mortgage is to finance the purchase or acquisition of the mortgaged property from a person within 180 days of the purchase or acquisition of such property by that person at a price that was lower than the current sale price of the property, the creditor shall obtain a second appraisal from a different certified or licensed appraiser. The second appraisal shall include an analysis of the difference in sale prices, changes in market conditions, and any improvements made to the property between the date of the previous sale and the current sale.

Part III Ch. 23–35 Mortgages

§ 1639g.   Requests for payoff amounts of home loan A creditor or servicer of a home loan shall send an accurate payoff balance within a reasonable time, but in no case more than 7 business days, after the receipt of a written request for such balance from or on behalf of the borrower.

Part II Ch. 15–22 Deeds

§ 1639f.   Requirements for prompt crediting of home loan payments (a)  In general In connection with a consumer credit transaction secured by a consumer’s principal dwelling, no servicer shall fail to credit a payment to the consumer’s loan account as of the date of receipt, except when a delay in crediting does not result in any charge to the consumer or in the reporting of negative information to a consumer reporting agency, except as required in subsection (b). (b)  Exception If a servicer specifies in writing requirements for the consumer to follow in making payments, but accepts a payment that does not conform to the requirements, the servicer shall credit the payment as of 5 days after receipt.

Part I Ch. 1–14 Brokers

(k)  Penalties (1)  First violation In addition to the enforcement provisions referred to in section 1640 of this title, each person who violates this section shall forfeit and pay a civil penalty of not more than $10,000 for each day any such violation continues. (2)  Subsequent violations In the case of any person on whom a civil penalty has been imposed under paragraph (1), paragraph (1) shall be applied by substituting “$20,000” for “$10,000” with respect to all subsequent violations. (3)  Assessment The agency referred to in subsection (a) or (c) of section 1607 of this title with respect to any person described in paragraph (1) shall assess any penalty under this subsection to which such person is subject.

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§ 1639h CONSUMER CREDIT DISCLOSURE (B)   No cost to applicant The cost of any second appraisal required under subparagraph (A) may not be charged to the applicant. (3)   Certified or licensed appraiser defined For purposes of this section, the term “certified or licensed appraiser” means a person who— (A)  is, at a minimum, certified or licensed by the State in which the property to be appraised is located; and (B)   performs each appraisal in conformity with the Uniform Standards of Professional Appraisal Practice and title XI of the Financial Institutions Reform, Recovery, and Enforcement Act of 1989 [12 U.S.C. 3331 et seq.], and the regulations prescribed under such title, as in effect on the date of the appraisal. (4)  Regulations (A)  In general The Board, the Comptroller of the Currency, the Federal Deposit Insurance Corporation, the National Credit Union Administration Board, the Federal Housing Finance Agency, and the Bureau shall jointly prescribe regulations to implement this section. (B)  Exemption The agencies listed in subparagraph (A) may jointly exempt, by rule, a class of loans from the requirements of this subsection or subsection (a) if the agencies determine that the exemption is in the public interest and promotes the safety and soundness of creditors. (c)   Free copy of appraisal A creditor shall provide 1 copy of each appraisal conducted in accordance with this section in connection with a higher-risk mortgage to the applicant without charge, and at least 3 days prior to the transaction closing date. (d)  Consumer notification At the time of the initial mortgage application, the applicant shall be provided with a statement by the creditor that any appraisal prepared for the mortgage is for the sole use of the creditor, and that the applicant may choose to have a separate appraisal conducted at the expense of the applicant. (e)  Violations In addition to any other liability to any person under this subchapter, a creditor found to have willfully failed to obtain an appraisal as required in this section shall be liable to the applicant or borrower for the sum of $2,000. (f)   Higher-risk mortgage defined For purposes of this section, the term “higher-risk mortgage” means a residential mortgage loan, other than a reverse mortgage loan that is a qualified mortgage, as defined in section 1639c of this title, secured by a principal dwelling— (1)  that is not a qualified mortgage, as defined in section 1639c of this title; and (2)  with an annual percentage rate that exceeds the average prime offer rate for a comparable transaction, as defined in section 1639c of this title, as of the date the interest rate is set— (A)   by 1.5 or more percentage points, in the case of a first lien residential mortgage loan having an original principal obligation amount that does not exceed the amount of the maximum limitation on the original principal ob-

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Ch. 25

Part I Ch. 1–14 Brokers Part II Ch. 15–22 Deeds Part III Ch. 23–35 Mortgages Part IV Ch. 36–40 Insurance Part V Ch. 41–48A Zoning, etc. Part VI Ch. 49–56 Taxation Part VII Ch. 57–63 Litigation Part VIII Ch. 64–67 L/T Part IX Ch. 68–72 Condos, etc.

ligation of mortgage in effect for a residence of the applicable size, as of the date of such interest rate set, pursuant to the sixth sentence of section 1454(a)(2) of title 12; (B)   by 2.5 or more percentage points, in the case of a first lien residential mortgage loan having an original principal obligation amount that exceeds the amount of the maximum limitation on the original principal obligation of mortgage in effect for a residence of the applicable size, as of the date of such interest rate set, pursuant to the sixth sentence of section 1454(a)(2) of title 12; and (C)  by 3.5 or more percentage points for a subordinate lien residential mortgage loan. § 1640.   Civil liability (a)   Individual or class action for damages; amount of award; factors determining amount of award Except as otherwise provided in this section, any creditor who fails to comply with any requirement imposed under this part, including any requirement under section 1635 of this title, subsection (f) or (g) of section 1641 of this title, or part D or E of this subchapter with respect to any person is liable to such person in an amount equal to the sum of— (1)   any actual damage sustained by such person as a result of the failure; (2)(A)(i)   in the case of an individual action twice the amount of any finance charge in connection with the transaction, (ii) in the case of an individual action relating to a consumer lease under part E of this subchapter, 25 per centum of the total amount of monthly payments under the lease, except that the liability under this subparagraph shall not be less than $200 nor greater than $2,000, (iii) in the case of an individual action relating to an open end consumer credit plan that is not secured by real property or a dwelling, twice the amount of any finance charge in connection with the transaction, with a minimum of $500 and a maximum of $5,000, or such higher amount as may be appropriate in the case of an established pattern or practice of such failures;1 or (iv) in the case of an individual action relating to a credit transaction not under an open end credit plan that is secured by real property or a dwelling, not less than $400 or greater than $4,000; or (B)  in the case of a class action, such amount as the court may allow, except that as to each member of the class no minimum recovery shall be applicable, and the total recovery under this subparagraph in any class action or series of class actions arising out of the same failure to comply by the same creditor shall not be more than the lesser of $1,000,000 or 1 per centum of the net worth of the creditor; (3)   in the case of any successful action to enforce the foregoing liability or in any action in which a person is determined to have a right of rescission under section 1635 or 1638(e)(7) of this title, the costs of the action, together with a reasonable attorney’s fee as determined by the court; and (4)   in the case of a failure to comply with any requirement under section 1639 of this title, paragraph (1) or (2) of section 1639b(c) of this title, or section 1639c(a) of this title, an amount equal to the sum of all finance charges and fees paid by the consumer, unless the creditor demonstrates that the failure to comply is not material. In determining the amount of award in any class action, the court shall consider, among other relevant factors, the amount of any actual damages

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PART III

1. So in original. The semicolon probably should be a comma.

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Index

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awarded, the frequency and persistence of failures of compliance by the creditor, the resources of the creditor, the number of persons adversely affected, and the extent to which the creditor’s failure of compliance was intentional. In connection with the disclosures referred to in subsections (a) and (b) of section 1637 of this title, a creditor shall have a liability determined under paragraph (2) only for failing to comply with the requirements of section 1635 of this title, 1637(a)2 of this title, or any of paragraphs (4) through (13) of section 1637(b) of this title, or for failing to comply with disclosure requirements under State law for any term or item that the Bureau has determined to be substantially the same in meaning under section 1610(a)(2) of this title as any of the terms or items referred to in section 1637(a) of this title, or any of paragraphs (4) through (13) of section 1637(b) of this title. In connection with the disclosures referred to in subsection (c) or (d) of section 1637 of this title, a card issuer shall have a liability under this section only to a cardholder who pays a fee described in section 1637(c)(1)(A)(ii)(I) or section 1637(c)(4)(A)(i) of this title or who uses the credit card or charge card. In connection with the disclosures referred to in section 1638 of this title, a creditor shall have a liability determined under paragraph (2) only for failing to comply with the requirements of section 1635 of this title, of paragraph (2) (insofar as it requires a disclosure of the “amount financed”), (3), (4), (5), (6), or (9) of section 1638(a) of this title, or section 1638(b)(2)(C)(ii) of this title, of subparagraphs (A), (B), (D), (F), or (J) of section 1638(e)(2) of this title (for purposes of paragraph (2) or (4) of section 1638(e) of this title), or paragraph (4)(C), (6), (7), or (8) of section 1638(e) of this title, or for failing to comply with disclosure requirements under State law for any term which the Bureau has determined to be substantially the same in meaning under section 1610(a)(2) of this title as any of the terms referred to in any of those paragraphs of section 1638(a) of this title or section 1638(b) (2)(C)(ii) of this title. With respect to any failure to make disclosures required under this part or part D or E of this subchapter, liability shall be imposed only upon the creditor required to make disclosure, except as provided in section 1641 of this title. (b)   Correction of errors A creditor or assignee has no liability under this section or section 1607 of this title or section 1611 of this title for any failure to comply with any requirement imposed under this part or part E, if within sixty days after discovering an error, whether pursuant to a final written examination report or notice issued under section 1607(e)(1) of this title or through the creditor’s or assignee’s own procedures, and prior to the institution of an action under this section or the receipt of written notice of the error from the obligor, the creditor or assignee notifies the person concerned of the error and makes whatever adjustments in the appropriate account are necessary to assure that the person will not be required to pay an amount in excess of the charge actually disclosed, or the dollar equivalent of the annual percentage rate actually disclosed, whichever is lower. (c)   Unintentional violations; bona fide errors A creditor or assignee may not be held liable in any action brought under this section or section 1635 of this title for a violation of this subchapter if the creditor or assignee shows by a preponderance of evidence that the violation was not intentional and resulted from a bona fide error notwithstanding the maintenance of procedures reasonably adapted to avoid any such error. Examples of a bona fide error include, but are not limited to, clerical, calculation, computer malfunction and programing, and printing errors, except that an error of legal judgment with respect to a person’s obligations under this subchapter is not a bona fide error. 2. So in original. Probably should be preceded by “section”.

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Ch. 25

Part III Ch. 23–35 Mortgages Part IV Ch. 36–40 Insurance Part V Ch. 41–48A Zoning, etc. Part VI Ch. 49–56 Taxation Part VII Ch. 57–63 Litigation Part VIII Ch. 64–67 L/T Part IX Ch. 68–72 Condos, etc. Index

gtb-parealestate22-all.indb 281

Part II Ch. 15–22 Deeds

281

Part I Ch. 1–14 Brokers

(d)   Liability in transaction or lease involving multiple obligors When there are multiple obligors in a consumer credit transaction or consumer lease, there shall be no more than one recovery of damages under subsection (a) (2) for a violation of this subchapter. (e)   Jurisdiction of courts; limitations on actions; State attorney general enforcement Except as provided in the subsequent sentence, any action under this section may be brought in any United States district court, or in any other court of competent jurisdiction, within one year from the date of the occurrence of the violation or, in the case of a violation involving a private education loan (as that term is defined in section 1650(a) of this title), 1 year from the date on which the first regular payment of principal is due under the loan. Any action under this section with respect to any violation of section 1639, 1639b, or 1639c of this title may be brought in any United States district court, or in any other court of competent jurisdiction, before the end of the 3-year period beginning on the date of the occurrence of the violation. This subsection does not bar a person from asserting a violation of this subchapter in an action to collect the debt which was brought more than one year from the date of the occurrence of the violation as a matter of defense by recoupment or set-off in such action, except as otherwise provided by State law. An action to enforce a violation of section 1639, 1639b, 1639c, 1639d, 1639e, 1639f, 1639g, or 1639h of this title may also be brought by the appropriate State attorney general in any appropriate United States district court, or any other court of competent jurisdiction, not later than 3 years after the date on which the violation occurs. The State attorney general shall provide prior written notice of any such civil action to the Federal agency responsible for enforcement under section 1607 of this title and shall provide the agency with a copy of the complaint. If prior notice is not feasible, the State attorney general shall provide notice to such agency immediately upon instituting the action. The Federal agency may— (1)   intervene in the action; (2)  upon intervening— (A)   remove the action to the appropriate United States district court, if it was not originally brought there; and (B)   be heard on all matters arising in the action; and (3)   file a petition for appeal. (f)   Good faith compliance with rule, regulation, or interpretation of Bureau or with interpretation or approval of duly authorized official or employee of Federal Reserve System No provision of this section, section 1607(b) of this title, section 1607(c) of this title, section 1607(e) of this title, or section 1611 of this title imposing any liability shall apply to any act done or omitted in good faith in conformity with any rule, regulation, or interpretation thereof by the Bureau or in conformity with any interpretation or approval by an official or employee of the Federal Reserve System duly authorized by the Bureau to issue such interpretations or approvals under such procedures as the Bureau may prescribe therefor, notwithstanding that after such act or omission has occurred, such rule, regulation, interpretation, or approval is amended, rescinded, or determined by judicial or other authority to be invalid for any reason. (g)   Recovery for multiple failures to disclose The multiple failure to disclose to any person any information required under this part or part D or E of this subchapter to be disclosed in connection with a single account under an open end consumer credit plan, other single consumer credit sale, consumer loan, consumer lease, or other extension of consumer credit,

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PART III

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§ 1640

CONSUMER CREDIT DISCLOSURE

shall entitle the person to a single recovery under this section but continued failure to disclose after a recovery has been granted shall give rise to rights to additional recoveries. This subsection does not bar any remedy permitted by section 1635 of this title. (h)  Offset from amount owed to creditor or assignee; rights of defaulting consumer A person may not take any action to offset any amount for which a creditor or assignee is potentially liable to such person under subsection (a)(2) against any amount owed by such person, unless the amount of the creditor’s or assignee’s liability under this subchapter has been determined by judgment of a court of competent jurisdiction in an action of which such person was a party. This subsection does not bar a consumer then in default on the obligation from asserting a violation of this subchapter as an original action, or as a defense or counterclaim to an action to collect amounts owed by the consumer brought by a person liable under this subchapter. (i)   Class action moratorium (1)  In general During the period beginning on May 18, 1995, and ending on October 1, 1995, no court may enter any order certifying any class in any action under this subchapter— (A)   which is brought in connection with any credit transaction not under an open end credit plan which is secured by a first lien on real property or a dwelling and constitutes a refinancing or consolidation of an existing extension of credit; and (B)   which is based on the alleged failure of a creditor— (i)   to include a charge actually incurred (in connection with the transaction) in the finance charge disclosed pursuant to section 1638 of this title; (ii)   to properly make any other disclosure required under section 1638 of this title as a result of the failure described in clause (i); or (iii)   to provide proper notice of rescission rights under section 1635(a) of this title due to the selection by the creditor of the incorrect form from among the model forms prescribed by the Bureau or from among forms based on such model forms. (2)   Exceptions for certain alleged violations Paragraph (1) shall not apply with respect to any action— (A)   described in clause (i) or (ii) of paragraph (1)(B), if the amount disclosed as the finance charge results in an annual percentage rate that exceeds the tolerance provided in section 1606(c) of this title; or (B)   described in paragraph (1)(B)(iii), if— (i)   no notice relating to rescission rights under section 1635(a) of this title was provided in any form; or (ii)   proper notice was not provided for any reason other than the reason described in such paragraph. (j)   Private educational lender A private educational lender (as that term is defined in section 1650(a) of this title) has no liability under this section for failure to comply with section 1638(e) (3) of this title).3

3. So in original. The closing parenthesis probably should not appear.

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MORTGAGES

Ch. 25

Part III Ch. 23–35 Mortgages Part IV Ch. 36–40 Insurance Part V Ch. 41–48A Zoning, etc. Part VI Ch. 49–56 Taxation Part VII Ch. 57–63 Litigation Part VIII Ch. 64–67 L/T Part IX Ch. 68–72 Condos, etc. Index

gtb-parealestate22-all.indb 283

Part II Ch. 15–22 Deeds

283

Part I Ch. 1–14 Brokers

(k)   Defense to foreclosure (1)  In general Notwithstanding any other provision of law, when a creditor, assignee, or other holder of a residential mortgage loan or anyone acting on behalf of such creditor, assignee, or holder, initiates a judicial or nonjudicial foreclosure of the residential mortgage loan, or any other action to collect the debt in connection with such loan, a consumer may assert a violation by a creditor of paragraph (1) or (2) of section 1639b(c) of this title, or of section 1639c(a) of this title, as a matter of defense by recoupment or set off without regard for the time limit on a private action for damages under subsection (e). (2)   Amount of recoupment or setoff (A)  In general The amount of recoupment or set-off under paragraph (1) shall equal the amount to which the consumer would be entitled under subsection (a) for damages for a valid claim brought in an original action against the creditor, plus the costs to the consumer of the action, including a reasonable attorney’s fee. (B)  Special rule Where such judgment is rendered after the expiration of the applicable time limit on a private action for damages under subsection (e), the amount of recoupment or set-off under paragraph (1) derived from damages under subsection (a)(4) shall not exceed the amount to which the consumer would have been entitled under subsection (a)(4) for damages computed up to the day preceding the expiration of the applicable time limit. (l)   Exemption from liability and rescission in case of borrower fraud or deception In addition to any other remedy available by law or contract, no creditor or assignee shall be liable to an obligor under this section, if such obligor, or co-obligor has been convicted of obtaining by actual fraud such residential mortgage loan. § 1641.   Liability of assignees (a)  Prerequisites Except as otherwise specifically provided in this subchapter, any civil action for a violation of this subchapter or proceeding under section 1607 of this title which may be brought against a creditor may be maintained against any assignee of such creditor only if the violation for which such action or proceeding is brought is apparent on the face of the disclosure statement, except where the assignment was involuntary. For the purpose of this section, a violation apparent on the face of the disclosure statement includes, but is not limited to (1) a disclosure which can be determined to be incomplete or inaccurate from the face of the disclosure statement or other documents assigned, or (2) a disclosure which does not use the terms required to be used by this subchapter. (b)   Proof of compliance with statutory provisions Except as provided in section 1635(c) of this title, in any action or proceeding by or against any subsequent assignee of the original creditor without knowledge to the contrary by the assignee when he acquires the obligation, written acknowledgement of receipt by a person to whom a statement is required to be given pursuant to this subchapter shall be conclusive proof of the delivery thereof and, except as provided in subsection (a), of compliance with this part. This section does not affect the rights of the obligor in any action against the original creditor. (c)   Right of rescission by consumer unaffected Any consumer who has the right to rescind a transaction under section 1635 of this title may rescind the transaction as against any assignee of the obligation.

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§ 1641

CONSUMER CREDIT DISCLOSURE

(d)   Rights upon assignment of certain mortgages (1)  In general Any person who purchases or is otherwise assigned a mortgage referred to in section 1602(aa) of this title shall be subject to all claims and defenses with respect to that mortgage that the consumer could assert against the creditor of the mortgage, unless the purchaser or assignee demonstrates, by a preponderance of the evidence, that a reasonable person exercising ordinary due diligence, could not determine, based on the documentation required by this subchapter, the itemization of the amount financed, and other disclosure of disbursements that the mortgage was a mortgage referred to in section 1602(aa) 1 of this title. The preceding sentence does not affect rights of a consumer under subsection (a), (b), or (c) of this section or any other provision of this subchapter. (2)   Limitation on damages Notwithstanding any other provision of law, relief provided as a result of any action made permissible by paragraph (1) may not exceed— (A)   with respect to actions based upon a violation of this subchapter, the amount specified in section 1640 of this title; and (B)   with respect to all other causes of action, the sum of— (i)   the amount of all remaining indebtedness; and (ii)   the total amount paid by the consumer in connection with the transaction. (3)  Offset The amount of damages that may be awarded under paragraph (2)(B) shall be reduced by the amount of any damages awarded under paragraph (2)(A). (4)  Notice Any person who sells or otherwise assigns a mortgage referred to in section 1602(aa) of this title shall include a prominent notice of the potential liability under this subsection as determined by the Bureau. (e)   Liability of assignee for consumer credit transactions secured by real property (1)  In general Except as otherwise specifically provided in this subchapter, any civil action against a creditor for a violation of this subchapter, and any proceeding under section 1607 of this title against a creditor, with respect to a consumer credit transaction secured by real property may be maintained against any assignee of such creditor only if— (A)   the violation for which such action or proceeding is brought is apparent on the face of the disclosure statement provided in connection with such transaction pursuant to this subchapter; and (B)   the assignment to the assignee was voluntary. (2)   Violation apparent on the face of the disclosure described For the purpose of this section, a violation is apparent on the face of the disclosure statement if— (A)   the disclosure can be determined to be incomplete or inaccurate by a comparison among the disclosure statement, any itemization of the amount financed, the note, or any other disclosure of disbursement; or (B)   the disclosure statement does not use the terms or format required to be used by this subchapter.

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Ch. 25

Table of Contents

PART III (f)   Treatment of servicer

A servicer of a consumer obligation arising from a consumer credit transaction shall not be treated as an assignee of such obligation for purposes of this section unless the servicer is or was the owner of the obligation.

(3)  “Servicer” defined

(4)  Applicability This subsection shall apply to all consumer credit transactions in existence or consummated on or after September 30, 1995.

Part IV Ch. 36–40 Insurance

For purposes of this subsection, the term “servicer” has the same meaning as in section 2605(i)(2) of title 12.

Part III Ch. 23–35 Mortgages

A servicer of a consumer obligation arising from a consumer credit transaction shall not be treated as the owner of the obligation for purposes of this section on the basis of an assignment of the obligation from the creditor or another assignee to the servicer solely for the administrative convenience of the servicer in servicing the obligation. Upon written request by the obligor, the servicer shall provide the obligor, to the best knowledge of the servicer, with the name, address, and telephone number of the owner of the obligation or the master servicer of the obligation.

Part II Ch. 15–22 Deeds

(2)   Servicer not treated as owner on basis of assignment for administrative convenience

Part I Ch. 1–14 Brokers

(1)  In general

(g)   Notice of new creditor In addition to other disclosures required by this subchapter, not later than 30 days after the date on which a mortgage loan is sold or otherwise transferred or assigned to a third party, the creditor that is the new owner or assignee of the debt shall notify the borrower in writing of such transfer, including— (B)   the date of transfer; (C)   how to reach an agent or party having authority to act on behalf of the new creditor;

(E)   any other relevant information regarding the new creditor. (2)  Definition As used in this subsection, the term “mortgage loan” means any consumer credit transaction that is secured by the principal dwelling of a consumer.

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Index

285

Part IX Ch. 68–72 Condos, etc.

§ 1643.   Liability of holder of credit card (a)   Limits on liability (1)  A cardholder shall be liable for the unauthorized use of a credit card only if— (A)   the card is an accepted credit card; (B)   the liability is not in excess of $50;

Part VIII Ch. 64–67 L/T

§ 1642.   Issuance of credit cards No credit card shall be issued except in response to a request or application therefor. This prohibition does not apply to the issuance of a credit card in renewal of, or in substitution for, an accepted credit card.

Part VII Ch. 57–63 Litigation

(D)   the location of the place where transfer of ownership of the debt is recorded; and

Part VI Ch. 49–56 Taxation

(A)   the identity, address, telephone number of the new creditor;

Part V Ch. 41–48A Zoning, etc.

(1)  In general

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§ 1644

CONSUMER CREDIT DISCLOSURE

(C)   the card issuer gives adequate notice to the cardholder of the potential liability; (D)  the card issuer has provided the cardholder with a description of a means by which the card issuer may be notified of loss or theft of the card, which description may be provided on the face or reverse side of the statement required by section 1637(b) of this title or on a separate notice accompanying such statement; (E)   the unauthorized use occurs before the card issuer has been notified that an unauthorized use of the credit card has occurred or may occur as the result of loss, theft, or otherwise; and (F)   the card issuer has provided a method whereby the user of such card can be identified as the person authorized to use it. (2)   For purposes of this section, a card issuer has been notified when such steps as may be reasonably required in the ordinary course of business to provide the card issuer with the pertinent information have been taken, whether or not any particular officer, employee, or agent of the card issuer does in fact receive such information. (b)   Burden of proof In any action by a card issuer to enforce liability for the use of a credit card, the burden of proof is upon the card issuer to show that the use was authorized or, if the use was unauthorized, then the burden of proof is upon the card issuer to show that the conditions of liability for the unauthorized use of a credit card, as set forth in subsection (a), have been met. (c)   Liability imposed by other laws or by agreement with issuer Nothing in this section imposes liability upon a cardholder for the unauthorized use of a credit card in excess of his liability for such use under other applicable law or under any agreement with the card issuer. (d)   Exclusiveness of liability Except as provided in this section, a cardholder incurs no liability from the unauthorized use of a credit card. § 1644.   Fraudulent use of credit cards; penalties (a)  Use, attempt or conspiracy to use card in transaction affecting interstate or foreign commerce Whoever knowingly in a transaction affecting interstate or foreign commerce, uses or attempts or conspires to use any counterfeit, fictitious, altered, forged, lost, stolen, or fraudulently obtained credit card to obtain money, goods, services, or anything else of value which within any one-year period has a value aggregating $1,000 or more; or (b)   Transporting, attempting or conspiring to transport card in interstate commerce Whoever, with unlawful or fraudulent intent, transports or attempts or conspires to transport in interstate or foreign commerce a counterfeit, fictitious, altered, forged, lost, stolen, or fraudulently obtained credit card knowing the same to be counterfeit, fictitious, altered, forged, lost, stolen, or fraudulently obtained; or (c)   Use of interstate commerce to sell or transport card Whoever, with unlawful or fraudulent intent, uses any instrumentality of interstate or foreign commerce to sell or transport a counterfeit, fictitious, altered, forged, lost, stolen, or fraudulently obtained credit card knowing the same to be counterfeit, fictitious, altered, forged, lost, stolen, or fraudulently obtained; or (d)   Receipt, concealment, etc., of goods obtained by use of card Whoever knowingly receives, conceals, uses, or transports money, goods, services, or anything else of value (except tickets for interstate or foreign transpor-

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Ch. 25

Part V Ch. 41–48A Zoning, etc. Part VI Ch. 49–56 Taxation Part VII Ch. 57–63 Litigation Part VIII Ch. 64–67 L/T Part IX Ch. 68–72 Condos, etc. Index

gtb-parealestate22-all.indb 287

Part IV Ch. 36–40 Insurance

287

Part III Ch. 23–35 Mortgages

§ 1646.   Dissemination of annual percentage rates; implementation, etc. (a)   Annual percentage rates The Bureau shall collect, publish, and disseminate to the public, on a demonstration basis in a number of standard metropolitan statistical areas to be determined by the Bureau, the annual percentage rates charged for representative types of nonsale credit by creditors in such areas. For the purpose of this section, the Bureau is authorized to require creditors in such areas to furnish information necessary for the Bureau to collect, publish, and disseminate such information. (b)   Credit card price and availability information (1)  Collection required The Bureau shall collect, on a semiannual basis, credit card price and availability information, including the information required to be disclosed under section 1637(c) of this title, from a broad sample of financial institutions which offer credit card services. (2)  Sample requirements The broad sample of financial institutions required under paragraph (1) shall include— (A)   the 25 largest issuers of credit cards; and (B)  not less than 125 additional financial institutions selected by the Bureau in a manner that ensures— (i)   an equitable geographical distribution within the sample; and (ii)  the representation of a wide spectrum of institutions within the sample.

Part II Ch. 15–22 Deeds

§ 1645.   Business credit cards; limits on liability of employees The exemption provided by section 1603(1) of this title does not apply to the provisions of sections 1642, 1643, and 1644 of this title, except that a card issuer and a business or other organization which provides credit cards issued by the same card issuer to ten or more of its employees may by contract agree as to liability of the business or other organization with respect to unauthorized use of such credit cards without regard to the provisions of section 1643 of this title, but in no case may such business or other organization or card issuer impose liability upon any employee with respect to unauthorized use of such a credit card except in accordance with and subject to the limitations of section 1643 of this title.

Part I Ch. 1–14 Brokers

tation) which (1) within any one-year period has a value aggregating $1,000 or more, (2) has moved in or is part of, or which constitutes interstate or foreign commerce, and (3) has been obtained with a counterfeit, fictitious, altered, forged, lost, stolen, or fraudulently obtained credit card; or (e)  Receipt, concealment, etc., of tickets for interstate or foreign transportation obtained by use of card Whoever knowingly receives, conceals, uses, sells, or transports in interstate or foreign commerce one or more tickets for interstate or foreign transportation, which (1) within any one-year period have a value aggregating $500 or more, and (2) have been purchased or obtained with one or more counterfeit, fictitious, altered, forged, lost, stolen, or fraudulently obtained credit cards; or (f)   Furnishing of money, etc., through use of card Whoever in a transaction affecting interstate or foreign commerce furnishes money, property, services, or anything else of value, which within any one-year period has a value aggregating $1,000 or more, through the use of any counterfeit, fictitious, altered, forged, lost, stolen, or fraudulently obtained credit card knowing the same to be counterfeit, fictitious, altered, forged, lost, stolen, or fraudulently obtained— shall be fined not more than $10,000 or imprisoned not more than ten years, or both.

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§ 1647

CONSUMER CREDIT DISCLOSURE

(3)   Report of information from sample Each financial institution in the broad sample established pursuant to paragraph (2) shall report the information to the Bureau in accordance with such regulations or orders as the Bureau may prescribe. (4)   Public availability of collected information; report to Congress The Bureau shall— (A)   make the information collected pursuant to this subsection available to the public upon request; and (B)   report such information semiannually to Congress. (c)  Implementation The Bureau is authorized to enter into contracts or other arrangements with appropriate persons, organizations, or State agencies to carry out its functions under subsections (a) and (b) and to furnish financial assistance in support thereof. § 1647.   Home equity plans (a)  Index requirement In the case of extensions of credit under an open end consumer credit plan which are subject to a variable rate and are secured by a consumer’s principal dwelling, the index or other rate of interest to which changes in the annual percentage rate are related shall be based on an index or rate of interest which is publicly available and is not under the control of the creditor. (b)   Grounds for acceleration of outstanding balance A creditor may not unilaterally terminate any account under an open end consumer credit plan under which extensions of credit are secured by a consumer’s principal dwelling and require the immediate repayment of any outstanding balance at such time, except in the case of— (1)  fraud or material misrepresentation on the part of the consumer in connection with the account; (2)   failure by the consumer to meet the repayment terms of the agreement for any outstanding balance; or (3)   any other action or failure to act by the consumer which adversely affects the creditor’s security for the account or any right of the creditor in such security. This subsection does not apply to reverse mortgage transactions. (c)   Change in terms (1)  In general No open end consumer credit plan under which extensions of credit are secured by a consumer’s principal dwelling may contain a provision which permits a creditor to change unilaterally any term required to be disclosed under section 1637a(a) of this title or any other term, except a change in insignificant terms such as the address of the creditor for billing purposes. (2)   Certain changes not precluded Notwithstanding the provisions of subsection1 (1), a creditor may make any of the following changes: (A)   Change the index and margin applicable to extensions of credit under such plan if the index used by the creditor is no longer available and the substitute index and margin would result in a substantially similar interest rate. (B)   Prohibit additional extensions of credit or reduce the credit limit applicable to an account under the plan during any period in which the value

1. So in original. Probably should be “paragraph”.

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Ch. 25

Part III Ch. 23–35 Mortgages Part IV Ch. 36–40 Insurance Part V Ch. 41–48A Zoning, etc. Part VI Ch. 49–56 Taxation Part VII Ch. 57–63 Litigation Part VIII Ch. 64–67 L/T Part IX Ch. 68–72 Condos, etc. Index

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of the consumer’s principal dwelling which secures any outstanding balance is significantly less than the original appraisal value of the dwelling. (C)   Prohibit additional extensions of credit or reduce the credit limit applicable to the account during any period in which the creditor has reason to believe that the consumer will be unable to comply with the repayment requirements of the account due to a material change in the consumer’s financial circumstances. (D)   Prohibit additional extensions of credit or reduce the credit limit applicable to the account during any period in which the consumer is in default with respect to any material obligation of the consumer under the agreement. (E)   Prohibit additional extensions of credit or reduce the credit limit applicable to the account during any period in which— (i)  the creditor is precluded by government action from imposing the annual percentage rate provided for in the account agreement; or (ii)   any government action is in effect which adversely affects the priority of the creditor’s security interest in the account to the extent that the value of the creditor’s secured interest in the property is less than 120 percent of the amount of the credit limit applicable to the account. (F)   Any change that will benefit the consumer. (3)  Material obligations Upon the request of the consumer and at the time an agreement is entered into by a consumer to open an account under an open end consumer credit plan under which extensions of credit are secured by the consumer’s principal dwelling, the consumer shall be given a list of the categories of contract obligations which are deemed by the creditor to be material obligations of the consumer under the agreement for purposes of paragraph (2)(D). (4)  Consumer benefit (A)  In general For purposes of paragraph (2)(F), a change shall be deemed to benefit the consumer if the change is unequivocally beneficial to the borrower and the change is beneficial through the entire term of the agreement. (B)  Bureau categorization The Bureau may, by regulation, determine categories of changes that benefit the consumer. (d)   Terms changed after application If any term or condition described in section 1637a(a) of this title which is disclosed to a consumer in connection with an application to open an account under an open end consumer credit plan described in such section (other than a variable feature of the plan) changes before the account is opened, and if, as a result of such change, the consumer elects not to enter into the plan agreement, the creditor shall refund all fees paid by the consumer in connection with such application. (e)  Additional requirements relating to refunds and imposition of nonrefundable fees (1)  In general No nonrefundable fee may be imposed by a creditor or any other person in connection with any application by a consumer to establish an account under any open end consumer credit plan which provides for extensions of credit which are secured by a consumer’s principal dwelling before the end of the 3-day period beginning on the date such consumer receives the disclosure required under section 1637a(a) of this title and the pamphlet required under section 1637a(e) of this title with respect to such application.

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CONSUMER CREDIT DISCLOSURE

(2)  Constructive receipt For purposes of determining when a nonrefundable fee may be imposed in accordance with this subsection if the disclosures and pamphlet referred to in paragraph (1) are mailed to the consumer, the date of the receipt of the disclosures by such consumer shall be deemed to be 3 business days after the date of mailing by the creditor. § 1648.   Reverse mortgages (a)  In general In addition to the disclosures required under this subchapter, for each reverse mortgage, the creditor shall, not less than 3 days prior to consummation of the transaction, disclose to the consumer in conspicuous type a good faith estimate of the projected total cost of the mortgage to the consumer expressed as a table of annual interest rates. Each annual interest rate shall be based on a projected total future credit extension balance under a projected appreciation rate for the dwelling and a term for the mortgage. The disclosure shall include— (1)   statements of the annual interest rates for not less than 3 projected appreciation rates and not less than 3 credit transaction periods, as determined by the Bureau, including— (A)   a short-term reverse mortgage; (B)   a term equaling the actuarial life expectancy of the consumer; and (C)   such longer term as the Bureau deems appropriate; and (2)   a statement that the consumer is not obligated to complete the reverse mortgage transaction merely because the consumer has received the disclosure required under this section or has signed an application for the reverse mortgage. (b)   Projected total cost In determining the projected total cost of the mortgage to be disclosed to the consumer under subsection (a), the creditor shall take into account— (1)   any shared appreciation or equity that the lender will, by contract, be entitled to receive; (2)   all costs and charges to the consumer, including the costs of any associated annuity that the consumer elects or is required to purchase as part of the reverse mortgage transaction; (3)   all payments to and for the benefit of the consumer, including, in the case in which an associated annuity is purchased (whether or not required by the lender as a condition of making the reverse mortgage), the annuity payments received by the consumer and financed from the proceeds of the loan, instead of the proceeds used to finance the annuity; and (4)   any limitation on the liability of the consumer under reverse mortgage transactions (such as nonrecourse limits and equity conservation agreements). § 1649.   Certain limitations on liability (a)   Limitations on liability For any closed end consumer credit transaction that is secured by real property or a dwelling, that is subject to this subchapter, and that is consummated before September 30, 1995, a creditor or any assignee of a creditor shall have no civil, administrative, or criminal liability under this subchapter for, and a consumer shall have no extended rescission rights under section 1635(f) of this title with respect to— (1)   the creditor’s treatment, for disclosure purposes, of— (A)   taxes described in section 1605(d)(3) of this title; (B)   fees described in section 1605(e)(2) and (5) of this title;

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Ch. 25

Part V Ch. 41–48A Zoning, etc. Part VI Ch. 49–56 Taxation Part VII Ch. 57–63 Litigation Part VIII Ch. 64–67 L/T Part IX Ch. 68–72 Condos, etc. Index

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(a)  Definitions As used in this section— (1)   the term “cosigner”— (A)   means any individual who is liable for the obligation of another without compensation, regardless of how designated in the contract or instrument with respect to that obligation, other than an obligation under a private education loan extended to consolidate a consumer’s pre-existing private education loans; (B)   includes any person the signature of which is requested as condition to grant credit or to forbear on collection; and (C)   does not include a spouse of an individual described in subparagraph (A), the signature of whom is needed to perfect the security interest in a loan. (2)   the term “covered educational institution”— (A)  means any educational institution that offers a postsecondary educational degree, certificate, or program of study (including any institution of higher education); and (B)   includes an agent, officer, or employee of the educational institution; (3)   the term “gift”— (A)(i)  means any gratuity, favor, discount, entertainment, hospitality, loan, or other item having more than a de minimis monetary value, includ-

Part II Ch. 15–22 Deeds

§ 1650.  Preventing unfair and deceptive private educational lending practices and eliminating conflicts of interest

Part I Ch. 1–14 Brokers

(C)   fees and amounts referred to in the 3rd sentence of section 1605(a) of this title; or (D)   borrower-paid mortgage broker fees referred to in section 1605(a)(6) of this title; (2)   the form of written notice used by the creditor to inform the obligor of the rights of the obligor under section 1635 of this title if the creditor provided the obligor with a properly dated form of written notice published and adopted by the Bureau or a comparable written notice, and otherwise complied with all the requirements of this section regarding notice; or (3)  any disclosure relating to the finance charge imposed with respect to the transaction if the amount or percentage actually disclosed— (A)  may be treated as accurate for purposes of this subchapter if the amount disclosed as the finance charge does not vary from the actual finance charge by more than $200; (B)   may, under section 1605(f)(2) of this title, be treated as accurate for purposes of section 1635 of this title; or (C)  is greater than the amount or percentage required to be disclosed under this subchapter. (b)  Exceptions Subsection (a) shall not apply to— (1)  any individual action or counterclaim brought under this subchapter which was filed before June 1, 1995; (2)   any class action brought under this subchapter for which a final order certifying a class was entered before January 1, 1995; (3)   the named individual plaintiffs in any class action brought under this subchapter which was filed before June 1, 1995; or (4)   any consumer credit transaction with respect to which a timely notice of rescission was sent to the creditor before June 1, 1995.

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§ 1650

CONSUMER CREDIT DISCLOSURE

ing services, transportation, lodging, or meals, whether provided in kind, by purchase of a ticket, payment in advance, or reimbursement after the expense has been incurred; and (ii)   includes an item described in clause (i) provided to a family member of an officer, employee, or agent of a covered educational institution, or to any other individual based on that individual’s relationship with the officer, employee, or agent, if— (I)   the item is provided with the knowledge and acquiescence of the officer, employee, or agent; and (II)  the officer, employee, or agent has reason to believe the item was provided because of the official position of the officer, employee, or agent; and (B)   does not include— (i)   standard informational material related to a loan, default aversion, default prevention, or financial literacy; (ii)   food, refreshments, training, or informational material furnished to an officer, employee, or agent of a covered educational institution, as an integral part of a training session or through participation in an advisory council that is designed to improve the service of the private educational lender to the covered educational institution, if such training or participation contributes to the professional development of the officer, employee, or agent of the covered educational institution; (iii)  favorable terms, conditions, and borrower benefits on a private education loan provided to a student employed by the covered educational institution, if such terms, conditions, or benefits are not provided because of the student’s employment with the covered educational institution; (iv)   the provision of financial literacy counseling or services, including counseling or services provided in coordination with a covered educational institution, to the extent that such counseling or services are not undertaken to secure— (I)   applications for private education loans or private education loan volume; (II)   applications or loan volume for any loan made, insured, or guaranteed under title IV of the Higher Education Act of 1965 (20 U.S.C. 1070 et seq.); or (III)  the purchase of a product or service of a specific private educational lender; (v)  philanthropic contributions to a covered educational institution from a private educational lender that are unrelated to private education loans and are not made in exchange for any advantage related to private education loans; or (vi)   State education grants, scholarships, or financial aid funds administered by or on behalf of a State; (4)   the term “institution of higher education” has the same meaning as in section 102 of the Higher Education Act of 1965 (20 U.S.C. 1002); (5)  the term “postsecondary educational expenses” means any of the expenses that are included as part of the cost of attendance of a student, as defined under section 472 of the Higher Education Act of 1965 (20 U.S.C. 1087ll); (6)   the term “preferred lender arrangement” has the same meaning as in section 151 of the Higher Education Act of 1965 [20 U.S.C. 1019]; (7)   the term “private educational lender” means— (A)  a financial institution, as defined in section 1813 of title 12 that solicits, makes, or extends private education loans;

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Ch. 25

Part IV Ch. 36–40 Insurance Part V Ch. 41–48A Zoning, etc. Part VI Ch. 49–56 Taxation Part VII Ch. 57–63 Litigation Part VIII Ch. 64–67 L/T Part IX Ch. 68–72 Condos, etc. Index

gtb-parealestate22-all.indb 293

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293

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1. So in original. The word “of” probably should not appear.

Part I Ch. 1–14 Brokers

(B)  a Federal credit union, as defined in section 1752 of title 12 that solicits, makes, or extends private education loans; and (C)  any other person engaged in the business of soliciting, making, or extending private education loans; (8)   the term “private education loan”— (A)   means a loan provided by a private educational lender that— (i)   is not made, insured, or guaranteed under of1 title IV of the Higher Education Act of 1965 (20 U.S.C. 1070 et seq.); and (ii)   is issued expressly for postsecondary educational expenses to a borrower, regardless of whether the loan is provided through the educational institution that the subject student attends or directly to the borrower from the private educational lender; and (B)   does not include an extension of credit under an open end consumer credit plan, a reverse mortgage transaction, a residential mortgage transaction, or any other loan that is secured by real property or a dwelling; and (9)   the term “revenue sharing” means an arrangement between a covered educational institution and a private educational lender under which— (A)  a private educational lender provides or issues private education loans with respect to students attending the covered educational institution; (B)   the covered educational institution recommends to students or others the private educational lender or the private education loans of the private educational lender; and (C)   the private educational lender pays a fee or provides other material benefits, including profit sharing, to the covered educational institution in connection with the private education loans provided to students attending the covered educational institution or a borrower acting on behalf of a student. (b)   Prohibition on certain gifts and arrangements A private educational lender may not, directly or indirectly— (1)   offer or provide any gift to a covered educational institution in exchange for any advantage or consideration provided to such private educational lender related to its private education loan activities; or (2)   engage in revenue sharing with a covered educational institution. (c)   Prohibition on co-branding A private educational lender may not use the name, emblem, mascot, or logo of the covered educational institution, or other words, pictures, or symbols readily identified with the covered educational institution, in the marketing of private education loans in any way that implies that the covered educational institution endorses the private education loans offered by the private educational lender. (d)   Advisory Board compensation Any person who is employed in the financial aid office of a covered educational institution, or who otherwise has responsibilities with respect to private education loans or other financial aid of the institution, and who serves on an advisory board, commission, or group established by a private educational lender or group of such lenders shall be prohibited from receiving anything of value from the private educational lender or group of lenders. Nothing in this subsection prohibits the reimbursement of reasonable expenses incurred by an employee of a covered educational institution as part of their service on an advisory board, commission, or group described in this subsection.

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§ 1650

CONSUMER CREDIT DISCLOSURE

(e)   Prohibition on prepayment or repayment fees or penalty It shall be unlawful for any private educational lender to impose a fee or penalty on a borrower for early repayment or prepayment of any private education loan. (f)   Credit card protections for college students (1)  Disclosure required An institution of higher education shall publicly disclose any contract or other agreement made with a card issuer or creditor for the purpose of marketing a credit card. (2)  Inducements prohibited No card issuer or creditor may offer to a student at an institution of higher education any tangible item to induce such student to apply for or participate in an open end consumer credit plan offered by such card issuer or creditor, if such offer is made— (A)   on the campus of an institution of higher education; (B)   near the campus of an institution of higher education, as determined by rule of the Bureau; or (C)   at an event sponsored by or related to an institution of higher education. (3)   Sense of the Congress It is the sense of the Congress that each institution of higher education should consider adopting the following policies relating to credit cards: (A)  That any card issuer that markets a credit card on the campus of such institution notify the institution of the location at which such marketing will take place. (B)  That the number of locations on the campus of such institution at which the marketing of credit cards takes place be limited. (C)  That credit card and debt education and counseling sessions be offered as a regular part of any orientation program for new students of such institution. (g)   Additional protections relating to borrower or cosigner of a private education loan (1)   Prohibition on automatic default in case of death or bankruptcy of non-student obligor With respect to a private education loan involving a student obligor and 1 or more cosigners, the creditor shall not declare a default or accelerate the debt against the student obligor on the sole basis of a bankruptcy or death of a cosigner. (2)   Cosigner release in case of death of borrower (A)   Release of cosigner The holder of a private education loan, when notified of the death of a student obligor, shall release within a reasonable timeframe any cosigner from the obligations of the cosigner under the private education loan. (B)   Notification of release A holder or servicer of a private education loan, as applicable, shall within a reasonable time-frame notify any cosigners for the private education loan if a cosigner is released from the obligations of the cosigner for the private education loan under this paragraph. (C)   Designation of individual to act on behalf of the borrower Any lender that extends a private education loan shall provide the student obligor an option to designate an individual to have the legal authority to act on behalf of the student obligor with respect to the private education loan in the event of the death of the student obligor.

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Ch. 25

Part VI Ch. 49–56 Taxation Part VII Ch. 57–63 Litigation Part VIII Ch. 64–67 L/T Part IX Ch. 68–72 Condos, etc. Index

gtb-parealestate22-all.indb 295

Part V Ch. 41–48A Zoning, etc.

295

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1. So in original.

Part III Ch. 23–35 Mortgages

§ 1661.   Catalogs and multiple-page advertisements For the purposes of this part, a catalog or other multiple-page advertisement shall be considered a single advertisement if it clearly and conspicuously displays a credit terms table on which the information required to be stated under this part is clearly set forth. § 1662.   Advertising of downpayments and installments No advertisement to aid, promote, or assist directly or indirectly any extension of consumer credit may state (1)   that a specific periodic consumer credit amount or installment amount can be arranged, unless the creditor usually and customarily arranges credit payments or installments for that period and in that amount. (2)   that a specified downpayment is required in connection with any extension of consumer credit, unless the creditor usually and customarily arranges downpayments in that amount. § 1663.   Advertising of open end credit plans No advertisement to aid, promote, or assist directly or indirectly the extension of consumer credit under an open end credit plan may set forth any of the specific terms of that plan unless it also clearly and conspicuously sets forth all of the following items: (1)   Any minimum or fixed amount which could be imposed. (2)   In any case in which periodic rates may be used to compute the finance charge, the periodic rates expressed as annual percentage rates. (3)  Any other term that the Bureau may by regulation require to be disclosed. § 1664.   Advertising of credit other than open end plans (a)   Exclusion of open end credit plans Except as provided in subsection (b), this section applies to any advertisement to aid, promote, or assist directly or indirectly any consumer credit sale, loan, or other extension of credit subject to the provisions of this subchapter, other than an open end credit plan. (b)   Advertisements of residential real estate The provisions of this section do not apply to advertisements of residential real estate except to the extent that the Bureau may by regulation require. (c)   Rate of finance charge expressed as annual percentage rate If any advertisement to which this section applies states the rate of a finance charge, the advertisement shall state the rate of that charge expressed as an annual percentage rate.

Part II Ch. 15–22 Deeds

PART C—CREDIT ADVERTISING AND LIMITS ON CREDIT CARD FEES

Part I Ch. 1–14 Brokers

§ 1651.   Procedure for timely settlement of estates of decedent obligors The Bureau, in consultation with the Bureau1 and each other agency referred to in section 1607(a) of this title, shall prescribe regulations to require any creditor, with respect to any credit card account under an open end consumer credit plan, to establish procedures to ensure that any administrator of an estate of any deceased obligor with respect to such account can resolve outstanding credit balances in a timely manner.

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§ 1665

CONSUMER CREDIT DISCLOSURE

(d)   Requisite disclosures in advertisement If any advertisement to which this section applies states the amount of the downpayment, if any, the amount of any installment payment, the dollar amount of any finance charge, or the number of installments or the period of repayment, then the advertisement shall state all of the following items: (1)   The downpayment, if any. (2)   The terms of repayment. (3)   The rate of the finance charge expressed as an annual percentage rate. (e)   Credit transaction secured by principal dwelling of consumer Each advertisement to which this section applies that relates to a consumer credit transaction that is secured by the principal dwelling of a consumer in which the extension of credit may exceed the fair market value of the dwelling, and which advertisement is disseminated in paper form to the public or through the Internet, as opposed to by radio or television, shall clearly and conspicuously state that— (1)   the interest on the portion of the credit extension that is greater than the fair market value of the dwelling is not tax deductible for Federal income tax purposes; and (2)   the consumer should consult a tax adviser for further information regarding the deductibility of interest and charges. § 1665.   Nonliability of advertising media There is no liability under this part on the part of any owner or personnel, as such, of any medium in which an advertisement appears or through which it is disseminated. § 1665a.   Use of annual percentage rate in oral disclosures; exceptions In responding orally to any inquiry about the cost of credit, a creditor, regardless of the method used to compute finance charges, shall state rates only in terms of the annual percentage rate, except that in the case of an open end credit plan, the periodic rate also may be stated and, in the case of an other than open end credit plan where a major component of the finance charge consists of interest computed at a simple annual rate, the simple annual rate also may be stated. The Bureau may, by regulation, modify the requirements of this section or provide an exception from this section for a transaction or class of transactions for which the creditor cannot determine in advance the applicable annual percentage rate. § 1665b.   Advertising of open end consumer credit plans secured by consumer’s principal dwelling (a)  In general If any advertisement to aid, promote, or assist, directly or indirectly, the extension of consumer credit through an open end consumer credit plan under which extensions of credit are secured by the consumer’s principal dwelling states, affirmatively or negatively, any of the specific terms of the plan, including any periodic payment amount required under such plan, such advertisement shall also clearly and conspicuously set forth the following information, in such form and manner as the Bureau may require: (1)   Loan fees and opening cost estimates Any loan fee the amount of which is determined as a percentage of the credit limit applicable to an account under the plan and an estimate of the aggregate amount of other fees for opening the account, based on the creditor’s experience with the plan and stated as a single amount or as a reasonable range. (2)  Periodic rates In any case in which periodic rates may be used to compute the finance charge, the periodic rates expressed as an annual percentage rate.

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Ch. 25

Part III Ch. 23–35 Mortgages Part IV Ch. 36–40 Insurance Part V Ch. 41–48A Zoning, etc. Part VI Ch. 49–56 Taxation Part VII Ch. 57–63 Litigation Part VIII Ch. 64–67 L/T Part IX Ch. 68–72 Condos, etc. Index

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297

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(3)   Highest annual percentage rate The highest annual percentage rate which may be imposed under the plan. (4)  Other information Any other information the Bureau may by regulation require. (b)  Tax deductibility (1)  In general If any advertisement described in subsection (a) contains a statement that any interest expense incurred with respect to the plan is or may be tax deductible, the advertisement shall not be misleading with respect to such deductibility. (2)   Credit in excess of fair market value Each advertisement described in subsection (a) that relates to an extension of credit that may exceed the fair market value of the dwelling, and which advertisement is disseminated in paper form to the public or through the Internet, as opposed to by radio or television, shall include a clear and conspicuous statement that— (A)  the interest on the portion of the credit extension that is greater than the fair market value of the dwelling is not tax deductible for Federal income tax purposes; and (B)  the consumer should consult a tax adviser for further information regarding the deductibility of interest and charges. (c)   Certain terms prohibited No advertisement described in subsection (a) with respect to any home equity account may refer to such loan as “free money” or use other terms determined by the Bureau by regulation to be misleading. (d)   Discounted initial rate (1)  In general If any advertisement described in subsection (a) includes an initial annual percentage rate that is not determined by the index or formula used to make later interest rate adjustments, the advertisement shall also state with equal prominence the current annual percentage rate that would have been applied using the index or formula if such initial rate had not been offered. (2)   Quoted rate must be reasonably current The annual percentage rate required to be disclosed under the paragraph (1) rate must be current as of a reasonable time given the media involved. (3)   Period during which initial rate is in effect Any advertisement to which paragraph (1) applies shall also state the period of time during which the initial annual percentage rate referred to in such paragraph will be in effect. (e)  Balloon payment If any advertisement described in subsection (a) contains a statement regarding the minimum monthly payment under the plan, the advertisement shall also disclose, if applicable, the fact that the plan includes a balloon payment. (f)   “Balloon payment” defined For purposes of this section and section 1637a of this title, the term “balloon payment” means, with respect to any open end consumer credit plan under which extensions of credit are secured by the consumer’s principal dwelling, any repayment option under which— (1)   the account holder is required to repay the entire amount of any outstanding balance as of a specified date or at the end of a specified period of

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§ 1665c

CONSUMER CREDIT DISCLOSURE

time, as determined in accordance with the terms of the agreement pursuant to which such credit is extended; and (2)  the aggregate amount of the minimum periodic payments required would not fully amortize such outstanding balance by such date or at the end of such period. § 1665c.  Interest rate reduction on open end consumer credit plans (a)  In general If a creditor increases the annual percentage rate applicable to a credit card account under an open end consumer credit plan, based on factors including the credit risk of the obligor, market conditions, or other factors, the creditor shall consider changes in such factors in subsequently determining whether to reduce the annual percentage rate for such obligor. (b)  Requirements With respect to any credit card account under an open end consumer credit plan, the creditor shall— (1)   maintain reasonable methodologies for assessing the factors described in subsection (a); (2)  not less frequently than once every 6 months, review accounts as to which the annual percentage rate has been increased since January 1, 2009, to assess whether such factors have changed (including whether any risk has declined); (3)   reduce the annual percentage rate previously increased when a reduction is indicated by the review; and (4)  in the event of an increase in the annual percentage rate, provide in the written notice required under section 1637(i) of this title a statement of the reasons for the increase. (c)   Rule of construction This section shall not be construed to require a reduction in any specific amount. (d)  Rulemaking The Bureau1 shall issue final rules not later than 9 months after May 22, 2009, to implement the requirements of and evaluate compliance with this section, and subsections (a), (b), and (c) shall become effective 15 months after May 22, 2009. § 1665d.  Reasonable penalty fees on open end consumer credit plans (a)  In general The amount of any penalty fee or charge that a card issuer may impose with respect to a credit card account under an open end consumer credit plan in connection with any omission with respect to, or violation of, the cardholder agreement, including any late payment fee, over-the-limit fee, or any other penalty fee or charge, shall be reasonable and proportional to such omission or violation. (b)  Rulemaking required The Bureau, in consultation with the Comptroller of the Currency, the Board of Directors of the Federal Deposit Insurance Corporation, the Director of the Office of Thrift Supervision, and the National Credit Union Administration Board, shall issue final rules not later than 9 months after May 22, 2009, to establish standards for assessing whether the amount of any penalty fee or charge described under subsection (a) is reasonable and proportional to the omission or violation to which the fee or charge relates. Subsection (a) shall become effective 15 months after May 22, 2009. (c)  Considerations In issuing rules required by this section, the Bureau shall consider— 1. So in original. Probably should be “Board”.

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Ch. 25

Part V Ch. 41–48A Zoning, etc. Part VI Ch. 49–56 Taxation Part VII Ch. 57–63 Litigation Part VIII Ch. 64–67 L/T Part IX Ch. 68–72 Condos, etc. Index

gtb-parealestate22-all.indb 299

Part IV Ch. 36–40 Insurance

299

Part III Ch. 23–35 Mortgages

§ 1666.  Correction of billing errors (a)  Written notice by obligor to creditor; time for and contents of notice; procedure upon receipt of notice by creditor If a creditor, within sixty days after having transmitted to an obligor a statement of the obligor’s account in connection with an extension of consumer credit, receives at the address disclosed under section 1637(b)(10) of this title a written notice (other than notice on a payment stub or other payment medium supplied by the creditor if the creditor so stipulates with the disclosure required under section 1637(a)(7) of this title) from the obligor in which the obligor— (1)  sets forth or otherwise enables the creditor to identify the name and account number (if any) of the obligor, (2)   indicates the obligor’s belief that the statement contains a billing error and the amount of such billing error, and (3)   sets forth the reasons for the obligor’s belief (to the extent applicable) that the statement contains a billing error, the creditor shall, unless the obligor has, after giving such written notice and before the expiration of the time limits herein specified, agreed that the statement was correct— (A)   not later than thirty days after the receipt of the notice, send a written acknowledgment thereof to the obligor, unless the action required in subparagraph (B) is taken within such thirty-day period, and (B)   not later than two complete billing cycles of the creditor (in no event later than ninety days) after the receipt of the notice and prior to taking any action to collect the amount, or any part thereof, indicated by the obligor under paragraph (2) either— (i)   make appropriate corrections in the account of the obligor, including the crediting of any finance charges on amounts erroneously billed, and transmit to the obligor a notification of such corrections and the creditor’s

Part II Ch. 15–22 Deeds

PART D—CREDIT BILLING

Part I Ch. 1–14 Brokers

(1)   the cost incurred by the creditor from such omission or violation; (2)   the deterrence of such omission or violation by the cardholder; (3)   the conduct of the cardholder; and (4)   such other factors as the Bureau may deem necessary or appropriate. (d)  Differentiation permitted In issuing rules required by this subsection, the Bureau may establish different standards for different types of fees and charges, as appropriate. (e)   Safe harbor rule authorized The Bureau, in consultation with the Comptroller of the Currency, the Board of Directors of the Federal Deposit Insurance Corporation, the Director of the Office of Thrift Supervision, and the National Credit Union Administration Board, may issue rules to provide an amount for any penalty fee or charge described under subsection (a) that is presumed to be reasonable and proportional to the omission or violation to which the fee or charge relates. § 1665e.  Consideration of ability to repay A card issuer may not open any credit card account for any consumer under an open end consumer credit plan, or increase any credit limit applicable to such account, unless the card issuer considers the ability of the consumer to make the required payments under the terms of such account.

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explanation of any change in the amount indicated by the obligor under paragraph (2) and, if any such change is made and the obligor so requests, copies of documentary evidence of the obligor’s indebtedness; or (ii)   send a written explanation or clarification to the obligor, after having conducted an investigation, setting forth to the extent applicable the reasons why the creditor believes the account of the obligor was correctly shown in the statement and, upon request of the obligor, provide copies of documentary evidence of the obligor’s indebtedness. In the case of a billing error where the obligor alleges that the creditor’s billing statement reflects goods not delivered to the obligor or his designee in accordance with the agreement made at the time of the transaction, a creditor may not construe such amount to be correctly shown unless he determines that such goods were actually delivered, mailed, or otherwise sent to the obligor and provides the obligor with a statement of such determination. After complying with the provisions of this subsection with respect to an alleged billing error, a creditor has no further responsibility under this section if the obligor continues to make substantially the same allegation with respect to such error. (b)  Billing error For the purpose of this section, a “billing error” consists of any of the following: (1)   A reflection on a statement of an extension of credit which was not made to the obligor or, if made, was not in the amount reflected on such statement. (2)   A reflection on a statement of an extension of credit for which the obligor requests additional clarification including documentary evidence thereof. (3)   A reflection on a statement of goods or services not accepted by the obligor or his designee or not delivered to the obligor or his designee in accordance with the agreement made at the time of a transaction. (4)   The creditor’s failure to reflect properly on a statement a payment made by the obligor or a credit issued to the obligor. (5)  A computation error or similar error of an accounting nature of the creditor on a statement. (6)   Failure to transmit the statement required under section 1637(b) of this title to the last address of the obligor which has been disclosed to the creditor, unless that address was furnished less than twenty days before the end of the billing cycle for which the statement is required. (7)   Any other error described in regulations of the Bureau. (c)   Action by creditor to collect amount or any part thereof regarded by obligor to be a billing error For the purposes of this section, “action to collect the amount, or any part thereof, indicated by an obligor under paragraph (2)” does not include the sending of statements of account, which may include finance charges on amounts in dispute, to the obligor following written notice from the obligor as specified under subsection (a), if— (1)  the obligor’s account is not restricted or closed because of the failure of the obligor to pay the amount indicated under paragraph (2) of subsection (a), and (2)   the creditor indicates the payment of such amount is not required pending the creditor’s compliance with this section. Nothing in this section shall be construed to prohibit any action by a creditor to collect any amount which has not been indicated by the obligor to contain a billing error. (d)   Restricting or closing by creditor of account regarded by obligor to contain a billing error

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Pursuant to regulations of the Bureau, a creditor operating an open end consumer credit plan may not, prior to the sending of the written explanation or clarification required under paragraph (B)(ii), restrict or close an account with respect to which the obligor has indicated pursuant to subsection (a) that he believes such account to contain a billing error solely because of the obligor’s failure to pay the amount indicated to be in error. Nothing in this subsection shall be deemed to prohibit a creditor from applying against the credit limit on the obligor’s account the amount indicated to be in error. (e)   Effect of noncompliance with requirements by creditor Any creditor who fails to comply with the requirements of this section or section 1666a of this title forfeits any right to collect from the obligor the amount indicated by the obligor under paragraph (2) of subsection (a) of this section, and any finance charges thereon, except that the amount required to be forfeited under this subsection may not exceed $50. § 1666a.  Regulation of credit reports (a)   Reports by creditor on obligor’s failure to pay amount regarded as billing error After receiving a notice from an obligor as provided in section 1666(a) of this title, a creditor or his agent may not directly or indirectly threaten to report to any person adversely on the obligor’s credit rating or credit standing because of the obligor’s failure to pay the amount indicated by the obligor under section 1666(a)(2) of this title, and such amount may not be reported as delinquent to any third party until the creditor has met the requirements of section 1666 of this title and has allowed the obligor the same number of days (not less than ten) thereafter to make payment as is provided under the credit agreement with the obligor for the payment of undisputed amounts. (b)  Reports by creditor on delinquent amounts in dispute; notification of obligor of parties notified of delinquency If a creditor receives a further written notice from an obligor that an amount is still in dispute within the time allowed for payment under subsection (a) of this section, a creditor may not report to any third party that the amount of the obligor is delinquent because the obligor has failed to pay an amount which he has indicated under section 1666(a)(2) of this title, unless the creditor also reports that the amount is in dispute and, at the same time, notifies the obligor of the name and address of each party to whom the creditor is reporting information concerning the delinquency. (c)  Reports by creditor of subsequent resolution of delinquent amounts A creditor shall report any subsequent resolution of any delinquencies reported pursuant to subsection (b) to the parties to whom such delinquencies were initially reported. § 1666b.  Timing of payments (a)   Time to make payments A creditor may not treat a payment on a credit card account under an open end consumer credit plan as late for any purpose, unless the creditor has adopted reasonable procedures designed to ensure that each periodic statement including the information required by section 1637(b) of this title is mailed or delivered to the consumer not later than 21 days before the payment due date. (b)  Grace period If an open end consumer credit plan provides a time period within which an obligor may repay any portion of the credit extended without incurring an additional finance charge, such additional finance charge may not be imposed with respect to such portion of the credit extended for the billing cycle of which such period is a part, unless a statement which includes the amount upon which the finance charge for the period is based was mailed or delivered to the consumer

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not later than 21 days before the date specified in the statement by which payment must be made in order to avoid imposition of that finance charge. § 1666c.  Prompt and fair crediting of payments (a)  In general Payments received from an obligor under an open end consumer credit plan by the creditor shall be posted promptly to the obligor’s account as specified in regulations of the Bureau. Such regulations shall prevent a finance charge from being imposed on any obligor if the creditor has received the obligor’s payment in readily identifiable form, by 5:00 p.m. on the date on which such payment is due, in the amount, manner, and location indicated by the creditor to avoid the imposition thereof. (b)   Application of payments (1)  In general Upon receipt of a payment from a cardholder, the card issuer shall apply amounts in excess of the minimum payment amount first to the card balance bearing the highest rate of interest, and then to each successive balance bearing the next highest rate of interest, until the payment is exhausted. (2)   Clarification relating to certain deferred interest arrangements A creditor shall allocate the entire amount paid by the consumer in excess of the minimum payment amount to a balance on which interest is deferred during the last 2 billing cycles immediately preceding the expiration of the period during which interest is deferred. (c)   Changes by card issuer If a card issuer makes a material change in the mailing address, office, or procedures for handling cardholder payments, and such change causes a material delay in the crediting of a cardholder payment made during the 60-day period following the date on which such change took effect, the card issuer may not impose any late fee or finance charge for a late payment on the credit card account to which such payment was credited. § 1666d.  Treatment of credit balances Whenever a credit balance in excess of $1 is created in connection with a consumer credit transaction through (1) transmittal of funds to a creditor in excess of the total balance due on an account, (2) rebates of unearned finance charges or insurance premiums, or (3) amounts otherwise owed to or held for the benefit of an obligor, the creditor shall— (A)   credit the amount of the credit balance to the consumer’s account; (B)  refund any part of the amount of the remaining credit balance, upon request of the consumer; and (C)   make a good faith effort to refund to the consumer by cash, check, or money order any part of the amount of the credit balance remaining in the account for more than six months, except that no further action is required in any case in which the consumer’s current location is not known by the creditor and cannot be traced through the consumer’s last known address or telephone number. § 1666e.  Notification of credit card issuer by seller of return of goods, etc., by obligor; credit for account of obligor With respect to any sales transaction where a credit card has been used to obtain credit, where the seller is a person other than the card issuer, and where the seller accepts or allows a return of the goods or forgiveness of a debit for services which were the subject of such sale, the seller shall promptly transmit to the credit card issuer, a credit statement with respect thereto and the credit card issuer shall credit the account of the obligor for the amount of the transaction.

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(a)  Cash discounts

(b)  Finance charge

Part VIII Ch. 64–67 L/T Part IX Ch. 68–72 Condos, etc. Index

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1. So in original. Probably should be preceded by “a”.

Part V Ch. 41–48A Zoning, etc.

§ 1666h.  Offset of cardholder’s indebtedness by issuer of credit card with funds deposited with issuer by cardholder; remedies of creditors under State law not affected (a)   Offset against consumer’s funds A card issuer may not take any action to offset a cardholder’s indebtedness arising in connection with a consumer credit transaction under the relevant credit card plan against funds of the cardholder held on deposit with the card issuer unless— (1)   such action was previously authorized in writing by the cardholder in accordance with a credit plan whereby the cardholder agrees periodically to pay debts incurred in his open end credit account by permitting the card issuer periodically to deduct all or a portion of such debt from the cardholder’s deposit account, and (2)  such action with respect to any outstanding disputed amount not be taken by the card issuer upon request of the cardholder. In the case of any credit card account in existence on the effective date of this section, the previous written authorization referred to in clause (1) shall not be required until the date (after such effective date) when such account is renewed, but in no case later than one year after such effective date. Such written authorization shall be deemed to exist if the card issuer has previously notified the cardholder that the use of his credit card account will subject any funds which the card issuer holds in deposit accounts of such cardholder to offset against any amounts due and payable on his credit card account which have not been paid in accordance with the terms of the agreement between the card issuer and the cardholder. (b)   Attachments and levies This section does not alter or affect the right under State law of a card issuer to attach or otherwise levy upon funds of a cardholder held on deposit with the card issuer if that remedy is constitutionally available to creditors generally.

Part IV Ch. 36–40 Insurance

§ 1666g.  Tie-in services prohibited for issuance of credit card Notwithstanding any agreement to the contrary, a card issuer may not require a seller, as a condition to participating in a credit card plan, to open an account with or procure any other service from the card issuer or its subsidiary or agent.

Part III Ch. 23–35 Mortgages

With respect to any sales transaction, any discount from the regular price offered by the seller for the purpose of inducing payment by cash, checks, or other means not involving the use of an open-end credit plan or a credit card shall not constitute a finance charge as determined under section 1605 of this title if such discount is offered to all prospective buyers and its availability is disclosed clearly and conspicuously.

Part II Ch. 15–22 Deeds

With respect to credit1 card which may be used for extensions of credit in sales transactions in which the seller is a person other than the card issuer, the card issuer may not, by contract or otherwise, prohibit any such seller from offering a discount to a cardholder to induce the cardholder to pay by cash, check, or similar means rather than use a credit card.

Part I Ch. 1–14 Brokers

§ 1666f.  Inducements to cardholders by sellers of cash discounts for payments by cash, check or similar means; finance charge for sales transactions involving cash discounts

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§ 1666i

CONSUMER CREDIT DISCLOSURE

§ 1666i.  Assertion by cardholder against card issuer of claims and defenses arising out of credit card transaction; prerequisites; limitation on amount of claims or defenses (a)   Claims and defenses assertible Subject to the limitation contained in subsection (b), a card issuer who has issued a credit card to a cardholder pursuant to an open end consumer credit plan shall be subject to all claims (other than tort claims) and defenses arising out of any transaction in which the credit card is used as a method of payment or extension of credit if (1) the obligor has made a good faith attempt to obtain satisfactory resolution of a disagreement or problem relative to the transaction from the person honoring the credit card; (2) the amount of the initial transaction exceeds $50; and (3) the place where the initial transaction occurred was in the same State as the mailing address previously provided by the cardholder or was within 100 miles from such address, except that the limitations set forth in clauses (2) and (3) with respect to an obligor’s right to assert claims and defenses against a card issuer shall not be applicable to any transaction in which the person honoring the credit card (A) is the same person as the card issuer, (B) is controlled by the card issuer, (C) is under direct or indirect common control with the card issuer, (D) is a franchised dealer in the card issuer’s products or services, or (E) has obtained the order for such transaction through a mail solicitation made by or participated in by the card issuer in which the cardholder is solicited to enter into such transaction by using the credit card issued by the card issuer. (b)   Amount of claims and defenses assertible The amount of claims or defenses asserted by the cardholder may not exceed the amount of credit outstanding with respect to such transaction at the time the cardholder first notifies the card issuer or the person honoring the credit card of such claim or defense. For the purpose of determining the amount of credit outstanding in the preceding sentence, payments and credits to the cardholder’s account are deemed to have been applied, in the order indicated, to the payment of: (1) late charges in the order of their entry to the account; (2) finance charges in order of their entry to the account; and (3) debits to the account other than those set forth above, in the order in which each debit entry to the account was made. § 1666i–1.   Limits on interest rate, fee, and finance charge increases applicable to outstanding balances (a)  In general In the case of any credit card account under an open end consumer credit plan, no creditor may increase any annual percentage rate, fee, or finance charge applicable to any outstanding balance, except as permitted under subsection (b). (b)  Exceptions The prohibition under subsection (a) shall not apply to— (1)   an increase in an annual percentage rate upon the expiration of a specified period of time, provided that— (A)  prior to commencement of that period, the creditor disclosed to the consumer, in a clear and conspicuous manner, the length of the period and the annual percentage rate that would apply after expiration of the period; (B)  the increased annual percentage rate does not exceed the rate disclosed pursuant to subparagraph (A); and (C)   the increased annual percentage rate is not applied to transactions that occurred prior to commencement of the period; (2)  an increase in a variable annual percentage rate in accordance with a credit card agreement that provides for changes in the rate according to operation of an index that is not under the control of the creditor and is available to the general public;

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Part III Ch. 23–35 Mortgages Part IV Ch. 36–40 Insurance Part V Ch. 41–48A Zoning, etc. Part VI Ch. 49–56 Taxation Part VII Ch. 57–63 Litigation Part VIII Ch. 64–67 L/T Part IX Ch. 68–72 Condos, etc. Index

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(3)   an increase due to the completion of a workout or temporary hardship arrangement by the obligor or the failure of the obligor to comply with the terms of a workout or temporary hardship arrangement, provided that— (A)  the annual percentage rate, fee, or finance charge applicable to a category of transactions following any such increase does not exceed the rate, fee, or finance charge that applied to that category of transactions prior to commencement of the arrangement; and (B)   the creditor has provided the obligor, prior to the commencement of such arrangement, with clear and conspicuous disclosure of the terms of the arrangement (including any increases due to such completion or failure); or (4)   an increase due solely to the fact that a minimum payment by the obligor has not been received by the creditor within 60 days after the due date for such payment, provided that the creditor shall— (A)   include, together with the notice of such increase required under section 1637(i) of this title, a clear and conspicuous written statement of the reason for the increase and that the increase will terminate not later than 6 months after the date on which it is imposed, if the creditor receives the required minimum payments on time from the obligor during that period; and (B)  terminate such increase not later than 6 months after the date on which it is imposed, if the creditor receives the required minimum payments on time during that period. (c)   Repayment of outstanding balance (1)  In general The creditor shall not change the terms governing the repayment of any outstanding balance, except that the creditor may provide the obligor with one of the methods described in paragraph (2) of repaying any outstanding balance, or a method that is no less beneficial to the obligor than one of those methods. (2)  Methods The methods described in this paragraph are— (A)  an amortization period of not less than 5 years, beginning on the effective date of the increase set forth in the notice required under section 1637(i) of this title; or (B)   a required minimum periodic payment that includes a percentage of the outstanding balance that is equal to not more than twice the percentage required before the effective date of the increase set forth in the notice required under section 1637(i) of this title. (d)   Outstanding balance defined For purposes of this section, the term “outstanding balance” means the amount owed on a credit card account under an open end consumer credit plan as of the end of the 14th day after the date on which the creditor provides notice of an increase in the annual percentage rate, fee, or finance charge in accordance with section 1637(i) of this title. § 1666i–2.  Additional limits on interest rate increases (a)   Limitation on increases within first year Except in the case of an increase described in paragraph (1), (2), (3), or (4) of section 1666i–1(b) of this title, no increase in any annual percentage rate, fee, or finance charge on any credit card account under an open end consumer credit plan shall be effective before the end of the 1-year period beginning on the date on which the account is opened. (b)   Promotional rate minimum term No increase in any annual percentage rate applicable to a credit card account under an open end consumer credit plan that is a promotional rate (as that term

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is defined by the Bureau) shall be effective before the end of the 6-month period beginning on the date on which the promotional rate takes effect, subject to such reasonable exceptions as the Bureau may establish, by rule. § 1666j.  Applicability of State laws (a)   Consistency of provisions This part does not annul, alter, or affect, or exempt any person subject to the provisions of this part from complying with, the laws of any State with respect to credit billing practices, except to the extent that those laws are inconsistent with any provision of this part, and then only to the extent of the inconsistency. The Bureau is authorized to determine whether such inconsistencies exist. The Bureau may not determine that any State law is inconsistent with any provision of this part if the Bureau determines that such law gives greater protection to the consumer. (b)   Exemptions by Bureau from credit billing requirements The Bureau shall by regulation exempt from the requirements of this part any class of credit transactions within any State if it determines that under the law of that State that class of transactions is subject to requirements substantially similar to those imposed under this part or that such law gives greater protection to the consumer, and that there is adequate provision for enforcement. (c)   Finance charge or other charge for credit for sales transactions involving cash discounts Notwithstanding any other provisions of this subchapter, any discount offered under section 1666f(b) of this title shall not be considered a finance charge or other charge for credit under the usury laws of any State or under the laws of any State relating to disclosure of information in connection with credit transactions, or relating to the types, amounts or rates of charges, or to any element or elements of charges permissible under such laws in connection with the extension or use of credit.

PART E—CONSUMER LEASES § 1667.  Definitions For purposes of this part— (1)   The term “consumer lease” means a contract in the form of a lease or bailment for the use of personal property by a natural person for a period of time exceeding four months, and for a total contractual obligation not exceeding $50,000, primarily for personal, family, or household purposes, whether or not the lessee has the option to purchase or otherwise become the owner of the property at the expiration of the lease, except that such term shall not include any credit sale as defined in section 1602(g) of this title. Such term does not include a lease for agricultural, business, or commercial purposes, or to a government or governmental agency or instrumentality, or to an organization. (2)  The term “lessee” means a natural person who leases or is offered a consumer lease. (3)   The term “lessor” means a person who is regularly engaged in leasing, offering to lease, or arranging to lease under a consumer lease. (4)  The term “personal property” means any property which is not real property under the laws of the State where situated at the time offered or otherwise made available for lease. (5)   The terms “security” and “security interest” mean any interest in property which secures payment or performance of an obligation.

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§ 1667a.  Consumer lease disclosures Each lessor shall give a lessee prior to the consummation of the lease a dated written statement on which the lessor and lessee are identified setting out accurately and in a clear and conspicuous manner the following information with respect to that lease, as applicable: (1)   A brief description or identification of the leased property; (2)   The amount of any payment by the lessee required at the inception of the lease; (3)   The amount paid or payable by the lessee for official fees, registration, certificate of title, or license fees or taxes; (4)   The amount of other charges payable by the lessee not included in the periodic payments, a description of the charges and that the lessee shall be liable for the differential, if any, between the anticipated fair market value of the leased property and its appraised actual value at the termination of the lease, if the lessee has such liability; (5)  A statement of the amount or method of determining the amount of any liabilities the lease imposes upon the lessee at the end of the term and whether or not the lessee has the option to purchase the leased property and at what price and time; (6)   A statement identifying all express warranties and guarantees made by the manufacturer or lessor with respect to the leased property, and identifying the party responsible for maintaining or servicing the leased property together with a description of the responsibility; (7)   A brief description of insurance provided or paid for by the lessor or required of the lessee, including the types and amounts of the coverages and costs; (8)   A description of any security interest held or to be retained by the lessor in connection with the lease and a clear identification of the property to which the security interest relates; (9)   The number, amount, and due dates or periods of payments under the lease and the total amount of such periodic payments; (10)  Where the lease provides that the lessee shall be liable for the anticipated fair market value of the property on expiration of the lease, the fair market value of the property at the inception of the lease, the aggregate cost of the lease on expiration, and the differential between them; and (11)  A statement of the conditions under which the lessee or lessor may terminate the lease prior to the end of the term and the amount or method of determining any penalty or other charge for delinquency, default, late payments, or early termination. The disclosures required under this section may be made in the lease contract to be signed by the lessee. The Bureau may provide by regulation that any portion of the information required to be disclosed under this section may be given in the form of estimates where the lessor is not in a position to know exact information. § 1667b.  Lessee’s liability on expiration or termination of lease (a)   Estimated residual value of property as basis; presumptions; action by lessor for excess liability; mutually agreeable final adjustment Where the lessee’s liability on expiration of a consumer lease is based on the estimated residual value of the property such estimated residual value shall be a reasonable approximation of the anticipated actual fair market value of the property on lease expiration. There shall be a rebuttable presumption that the estimated residual value is unreasonable to the extent that the estimated residual value exceeds the actual residual value by more than three times the average payment allocable to a monthly period under the lease. In addition, where the lessee has such liability on expiration of a consumer lease there shall be a rebut-

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§ 1667c

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table presumption that the lessor’s estimated residual value is not in good faith to the extent that the estimated residual value exceeds the actual residual value by more than three times the average payment allocable to a monthly period under the lease and such lessor shall not collect from the lessee the amount of such excess liability on expiration of a consumer lease unless the lessor brings a successful action with respect to such excess liability. In all actions, the lessor shall pay the lessee’s reasonable attorney’s fees. The presumptions stated in this section shall not apply to the extent the excess of estimated over actual residual value is due to physical damage to the property beyond reasonable wear and use, or to excessive use, and the lease may set standards for such wear and use if such standards are not unreasonable. Nothing in this subsection shall preclude the right of a willing lessee to make any mutually agreeable final adjustment with respect to such excess residual liability, provided such an agreement is reached after termination of the lease. (b)   Penalties and charges for delinquency, default, or early termination Penalties or other charges for delinquency, default, or early termination may be specified in the lease but only at an amount which is reasonable in the light of the anticipated or actual harm caused by the delinquency, default, or early termination, the difficulties of proof of loss, and the inconvenience or nonfeasibility of otherwise obtaining an adequate remedy. (c)   Independent professional appraisal of residual value of property at termination of lease; finality If a lease has a residual value provision at the termination of the lease, the lessee may obtain at his expense, a professional appraisal of the leased property by an independent third party agreed to by both parties. Such appraisal shall be final and binding on the parties. § 1667c.  Consumer lease advertising; liability of advertising media (a)  In general If an advertisement for a consumer lease includes a statement of the amount of any payment or a statement that any or no initial payment is required, the advertisement shall clearly and conspicuously state, as applicable— (1)   the transaction advertised is a lease; (2)   the total amount of any initial payments required on or before consummation of the lease or delivery of the property, whichever is later; (3)   that a security deposit is required; (4)   the number, amount, and timing of scheduled payments; and (5)   with respect to a lease in which the liability of the consumer at the end of the lease term is based on the anticipated residual value of the property, that an extra charge may be imposed at the end of the lease term. (b)   Advertising medium not liable No owner or employee of any entity that serves as a medium in which an advertisement appears or through which an advertisement is disseminated, shall be liable under this section. (c)  Radio advertisements (1)  In general An advertisement by radio broadcast to aid, promote, or assist, directly or indirectly, any consumer lease shall be deemed to be in compliance with the requirements of subsection (a) if such advertisement clearly and conspicuously— (A)   states the information required by paragraphs (1) and (2) of subsection (a);

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Part III Ch. 23–35 Mortgages Part IV Ch. 36–40 Insurance Part V Ch. 41–48A Zoning, etc. Part VI Ch. 49–56 Taxation Part VII Ch. 57–63 Litigation Part VIII Ch. 64–67 L/T Part IX Ch. 68–72 Condos, etc. Index

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Part I Ch. 1–14 Brokers

(B)   states the number, amounts, due dates or periods of scheduled payments, and the total of such payments under the lease; (C)  includes— (i)   a referral to— (I)   a toll-free telephone number established in accordance with paragraph (2) that may be used by consumers to obtain the information required under subsection (a); or (II)   a written advertisement that— (aa)  appears in a publication in general circulation in the community served by the radio station on which such advertisement is broadcast during the period beginning 3 days before any such broadcast and ending 10 days after such broadcast; and (bb)   includes the information required to be disclosed under subsection (a); and (ii)   the name and dates of any publication referred to in clause (i)(II); and (D)   includes any other information which the Bureau determines necessary to carry out this part. (2)   Establishment of toll-free number (A)  In general In the case of a radio broadcast advertisement described in paragraph (1) that includes a referral to a toll-free telephone number, the lessor who offers the consumer lease shall— (i)   establish such a toll-free telephone number not later than the date on which the advertisement including the referral is broadcast; (ii)  maintain such telephone number for a period of not less than 10 days, beginning on the date of any such broadcast; and (iii)   provide the information required under subsection (a) with respect to the lease to any person who calls such number. (B)   Form of information The information required to be provided under subparagraph (A)(iii) shall be provided verbally or, if requested by the consumer, in written form. (3)   No effect on other law Nothing in this subsection shall affect the requirements of Federal law as such requirements apply to advertisement by any medium other than radio broadcast. § 1667d.  Civil liability of lessors (a)   Grounds for maintenance of action Any lessor who fails to comply with any requirement imposed under section 1667a or 1667b of this title with respect to any person is liable to such person as provided in section 1640 of this title. (b)   Additional grounds for maintenance of action; “creditor” defined Any lessor who fails to comply with any requirement imposed under section 1667c of this title with respect to any person who suffers actual damage from the violation is liable to such person as provided in section 1640 of this title. For the purposes of this section, the term “creditor” as used in sections 1640 and 1641 of this title shall include a lessor as defined in this part. (c)   Jurisdiction of courts; time limitation Notwithstanding section 1640(e) of this title, any action under this section may be brought in any United States district court or in any other court of competent

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PART III

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§ 1667e

CONSUMER CREDIT DISCLOSURE

jurisdiction. Such actions alleging a failure to disclose or otherwise comply with the requirements of this part shall be brought within one year of the termination of the lease agreement. § 1667e.  Applicability of State laws; exemptions by Bureau from leasing requirements (a)  This part does not annul, alter, or affect, or exempt any person subject to the provisions of this part from complying with, the laws of any State with respect to consumer leases, except to the extent that those laws are inconsistent with any provision of this part, and then only to the extent of the inconsistency. The Bureau is authorized to determine whether such inconsistencies exist. The Bureau may not determine that any State law is inconsistent with any provision of this part if the Bureau determines that such law gives greater protection and benefit to the consumer. (b)   The Bureau shall by regulation exempt from the requirements of this part any class of lease transactions within any State if it determines that under the law of that State that class of transactions is subject to requirements substantially similar to those imposed under this part or that such law gives greater protection and benefit to the consumer, and that there is adequate provision for enforcement. § 1667f.  Regulations (a)  Regulations authorized (1)  In general The Bureau shall prescribe regulations to update and clarify the requirements and definitions applicable to lease disclosures and contracts, and any other issues specifically related to consumer leasing, to the extent that the Bureau determines such action to be necessary— (A)   to carry out this part; (B)   to prevent any circumvention of this part; or (C)   to facilitate compliance with the requirements of the1 part. (2)  Classifications, adjustments Any regulations prescribed under paragraph (1) may contain classifications and differentiations, and may provide for adjustments and exceptions for any class of transactions, as the Bureau considers appropriate. (b)  Model disclosure (1)  Publication The Bureau shall establish and publish model disclosure forms to facilitate compliance with the disclosure requirements of this part and to aid the consumer in understanding the transaction to which the subject disclosure form relates. (2)   Use of automated equipment In establishing model forms under this subsection, the Bureau shall consider the use by lessors of data processing or similar automated equipment. (3)  Use optional A lessor may utilize a model disclosure form established by the Bureau under this subsection for purposes of compliance with this part, at the discretion of the lessor. (4)   Effect of use Any lessor who properly uses the material aspects of any model disclosure form established by the Bureau under this subsection shall be deemed to be in compliance with the disclosure requirements to which the form relates. 1. So in original. Probably should be “this”.

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Chapter

35 P.S. § 1680.101 to 35 P.S. § 1680.603a

Sec.

Part VI Ch. 49–56 Taxation Part VII Ch. 57–63 Litigation Part VIII Ch. 64–67 L/T Part IX Ch. 68–72 Condos, etc. Index

gtb-parealestate22-all.indb 311

Part V Ch. 41–48A Zoning, etc.

311

Part IV Ch. 36–40 Insurance

§ 101. Short title § 102. Findings and declaration of policy § 102a. Further declaration of policy § 103. Definitions § 104. Constitutional construction § 201. Agency creation § 202. Agency membership § 203. Agency governing body § 204. Repealed § 205. Agency powers § 206. Agency moneys § 207. Agency audits and reports § 208. Housing studies §§ 301 to Repealed  311. § 301a. Housing purchase program §§ 401 to Repealed  412. § 401a. Rental housing program § 402a. Mortgage loans § 403a. Rental charges § 404a. Tenants § 401b. General statement § 402b. Allocation of loans § 401c. General authority § 402c. Notice and institution of foreclosure proceedings § 403c. Notice requirements § 404c. Eligibility for assistance § 405c. Assistance payments § 406c. Repayment § 407c. Financial institutions § 408c. Homeowner’s emergency mortgage assistance fund § 409c. Insufficient funds 410c [Repealed] 411c [Repealed] 412c. Ongoing foreclosure study 401d. Definitions 402d. Establishment 403d. Program 404d. Plan 405d. Reporting 406d. Fund 407d. Funding

Part III Ch. 23–35 Mortgages

CHAPTER 26.1 HOUSING FINANCE AGENCY LAW

Part II Ch. 15–22 Deeds

26.1   Housing Finance Agency Law    35 PS § 1680.101 to § 603a 26.2   Homeowner Assistance Settlement Act    35 PS § 1681.1 – § 1681.7

Part I Ch. 1–14 Brokers

HOUSING FINANCE AND SETTLEMENT ASSISTANCE

Table of Contents

CHAPTER 26

12/22/21 10:45 AM

§ 101

HOUSING FINANCE AND SETTLEMENT

§§ 501 to Repealed  515. § 501a. Issuance of bonds and notes § 501a.1. Qualified housing bonds § 502a. Credit of Commonwealth or any subdivision thereof not pledged § 503a. Funds and accounts § 504a. Reserve funds and appropriations § 505a. Trust agreement § 506a. Bonds and notes tax exempt § 507a. Notes and bonds as legal investments § 508a. Covenant by Commonwealth not to limit or alter powers vested in agency §§ 601 to Repealed  603. § 601a. Liberal construction § 602a. Fraud penalty § 603a. Effective date; proclamation

§ 101.  Short title This act shall be known and may be cited as the “Housing Finance Agency Law.” § 102.  Findings and declaration of policy It is hereby determined and declared as a matter of legislative finding that— (1)   The welfare of the Commonwealth is threatened by the fact that throughout Pennsylvania the supply of private homes and rental units for persons and families of low and moderate income is inadequate to meet the need for such housing created by an expanding population, the wearing out of older dwellings and the elimination of substandard dwellings by governmental action, and by a shortage of suitable dwellings for elderly persons. (2)  Because of higher construction costs, a scarcity of financing available for housing and the resulting increase in interest rates, the housing need which exists in fact has not been able to find economic expression in a market demand sufficient to encourage greater production of homes and rental housing by private industry for persons and families of low and moderate income, including the elderly. (3)   Persons and families whose residences are condemned by governmental action in the prosecution of necessary public works in urban slum clearance programs and under regulatory laws protecting health and safety, face insuperable difficulties in finding new housing which is adequate, safe and sanitary. Many such persons and families are not eligible to occupy public housing administered by governmental agencies and are also unable to rent or purchase adequate, safe and sanitary housing because of the economic conditions described. Unless it becomes economically feasible for these persons and families to acquire housing in place of the dwellings now being eliminated by urban renewal programs in blighted areas and other dwellings removed by reason of other public works, such necessary governmental activities face serious curtailment or interruption. (4)   The Commonwealth has a strong moral responsibility to assist in providing opportunity for the rental or purchase of relocation housing by persons and families who are displaced by necessary governmental action, as well as a general and continuing responsibility to eliminate conditions which prevent private industry from supplying housing to relieve the general shortage of housing. (5)  Private industry alone has been and now is unable to provide the financing necessary, at a cost which persons and families of low and moderate income can afford, for housing for such persons and families and therefore, the specialized financing provided for in this act will encourage greater expenditure of private capital for housing.

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Ch. 26.1

Part IV Ch. 36–40 Insurance Part V Ch. 41–48A Zoning, etc. Part VI Ch. 49–56 Taxation Part VII Ch. 57–63 Litigation Part VIII Ch. 64–67 L/T Part IX Ch. 68–72 Condos, etc. Index

gtb-parealestate22-all.indb 313

Part III Ch. 23–35 Mortgages

313

Part II Ch. 15–22 Deeds

1. 26 U.S.C. §§ 103, 103A (repealed); see 26 U.S.C. § 143.

Part I Ch. 1–14 Brokers

(6)   The relationship of a sufficient provision of adequate, safe and sanitary housing to the advancement of the public health and morals and to the prevention of fire, accident and crime is clear. (7)   Therefore, it is hereby declared to be the policy of the Commonwealth of Pennsylvania to promote the health, safety and welfare of its inhabitants by the creation of a body corporate and politic, to be known as the “Pennsylvania Housing Finance Agency,” which shall exist and operate for the purposes of alleviating the hardship which results from insufficient production of private homes and of rental housing for persons and families of low and moderate income, including the elderly, the hardship resulting from the relocation of persons displaced by governmental action, the deleterious effect of inadequate housing upon the general welfare of the Commonwealth, and the disadvantages, resulting from economic conditions, which bar private industry from satisfying a vital need, by broadening the market for private homes and for housing for persons and families of low and moderate income, including the elderly, through the provision of specialized financing secured by mortgages to corporations, individuals, joint ventures, partnerships, limited partnerships, trusts, cooperatives and condominiums, which are unable to obtain such financing in the general market or who are unable to participate in specialized Federal housing programs because of lack of available Federal funds, and through cooperation with and assistance to the Pennsylvania Department of Community Affairs as such department carries into effect the powers and duties vested in it, thus improving and stimulating the distribution of investment capital for housing and neighborhood revitalization projects. Such purposes are public purposes for which public money may be spent. § 102a.  Further declaration of policy The welfare of the Commonwealth of Pennsylvania is threatened by an inadequate supply of safe affordable housing for its citizens. Projected needs for housing supply have been created by existing and expanding population and governmental action to eliminate existing substandard dwellings. Increased construction costs, a scarce monetary supply for financing of housing and the resultant increase of mortgage interest rates have created a market demand situation that is unable to be satisfied through traditional methods. The United States Congress has, as a matter of policy, enacted legislation which will help alleviate the desperate housing needs of Pennsylvania. Through the adoption of the act of November 26, 1980, known as the Omnibus Reconciliation Act of 1980 (94 Stat. 2599), the Federal Government has recognized the issuance of tax-free mortgage revenue bonds as a proper innovative method for the states to ensure an adequate supply of money for mortgagees. Under the provisions of the Mortgage Subsidy Bond Tax Act of 1980 (Public Law 96-499, 94 Stat. 2599), Title II, of the Omnibus Reconciliation Act of 1980,1 the Congress has set forth specific actions which state governments may and may not be involved in for a specified period of time. The General Assembly hereby finds that it is appropriate for the Commonwealth of Pennsylvania to assist its citizens in acquiring safe affordable shelter through the issuance of tax-free mortgage revenue bonds. § 103.  Definitions As used in this act unless otherwise indicated— (1)  “Agency” means the “Pennsylvania Housing Finance Agency,” the public body, corporate and politic, created by this act. (2)  “Board” means the governing body of the agency. (3)  “Bonds” and “notes” mean the bonds and notes which the agency is authorized to issue pursuant to Article V-A of this act.

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§ 103

HOUSING FINANCE AND SETTLEMENT

(4)  “Federal agency” means the United States of America, the President or any department of the United States or any corporation, agency or instrumentality, heretofore or hereafter created, designated or established by the United States. (5)  “Mortgage” means a lien, other than a judgment, on a fee simple estate or leasehold in real property located in Pennsylvania, together with the credit instruments, if any, secured thereby; the term “mortgage,” includes both insured mortgages and those which are not insured. (6)  “Insured mortgage” means a mortgage insured or approved to be insured or guaranteed by a Federal agency and shall include instruments or certificates which are guaranteed by a Federal agency and secured by insured or guaranteed mortgages. (7)  “Act” means this act and the rules and regulations adopted by the agency hereunder. (8)  “Annual income” shall mean the total annual income of all members of a family, from whatever source derived, including but not limited to, pension, annuity, retirement and social security benefits; provided, however, that there may be excluded from income (i) such reasonable allowances for dependents, (ii) such reasonable allowances for medical expenses, (iii) all or any proportionate part of the earnings of gainfully employed minors or family members other than the chief wage earner, or (iv) such income as is not received regularly, as the agency by rule or regulation may determine. (9)  “Earned surplus” shall have the same meaning as in generally accepted accounting standards. (10)  “Elderly or elderly person or persons” shall mean any individual who is qualified, by reason of age, to draw benefits from Federal Old Age and Survivors Insurance or from any other pension or annuity in which the age of the recipient is the criterion for entitlement, or in the absence of entitlement to insurance of the above types, one who has attained the age at which Federal Old Age and Survivors Insurance benefits would be payable if the individual had been covered by that insurance system. (11)  “Mortgagor” shall mean individuals, joint ventures, partnerships, limited partnerships, trusts, corporations, cooperatives and condominiums, whether nonprofit or organized for profit. (12)  “F.H.A.” shall mean the Federal Housing Administration, United States Department of Housing and Urban Development and any successor to its functions. (13)  “Low income persons or families” and “moderate income persons or families” shall mean families and persons who cannot afford to pay the amounts at which private enterprise, without the assistance of this act is providing a substantial supply of decent, safe and sanitary housing. The income limits for the admission of such families and persons to projects shall be those established pursuant to the rules and regulations established by the agency. (14)  “Moderate rentals” shall mean rent charges less than those rents generally charged for new dwelling units of comparable size and location built by the unassisted efforts of private enterprise and financed at then current market interest rates. (15)  “Low rentals” shall mean rent charges at least ten percent lower than moderate rentals. (16)  “Rent” or “rentals” shall mean the charges paid by moderate and lowincome persons for occupancy in a project under this act, whether the project is operated on a landlord-tenant basis or as a condominium or cooperative. (17)  “Project” shall mean a number of dwelling units constructed, rehabilitated or converted to a cooperative or condominium with the assistance of

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MORTGAGES

Ch. 26.1

Part VIII Ch. 64–67 L/T Part IX Ch. 68–72 Condos, etc. Index

gtb-parealestate22-all.indb 315

Part VII Ch. 57–63 Litigation

315

Part VI Ch. 49–56 Taxation

1437f. 5301 et seq. 1715z-1. 1440. 1715z-9. 1749aa et seq. (repealed). 1421b (omitted); see, now, 42 U.S.C. § 1437f. 1485.

Part V Ch. 41–48A Zoning, etc.

§ § § § § § § §

Part IV Ch. 36–40 Insurance

U.S.C. U.S.C. U.S.C. U.S.C. U.S.C. U.S.C. U.S.C. U.S.C.

Part III Ch. 23–35 Mortgages

42 42 12 42 12 12 42 42

Part II Ch. 15–22 Deeds

2. 3. 4. 5. 6. 7. 8. 9.

Part I Ch. 1–14 Brokers

a mortgage loan from the agency, including the acquisition, construction or rehabilitation of lands, buildings, equipment, improvements and other ancillary facilities such as, but not limited to streets, sewers, utilities, parks, site preparation, landscaping, and such ancillary facilities, offices and other nonhousing facilities such as administrative, community, health, recreational, educational and welfare facilities as the agency determines to be necessary, convenient or desirable appurtenances and including the acquisition, construction or rehabilitation of such ancillary commercial facilities as the agency determines to be necessary to make the remainder of the project economically feasible. (18)  “Total project cost” means the sum total of all costs incurred in the development of a project, which are approved by the agency as reasonable and necessary, which costs shall include, but are not necessarily limited to, (i) cost of land acquisition and any buildings thereon, (ii) cost of site preparation, demolition and development, (iii) architect, engineer, legal, agency and other fees paid or payable in connection with the planning, execution and financing of the project, (iv) cost of necessary studies, surveys, plans and permits, (v) insurance, interest, financing, tax and assessment costs and other operating and carrying costs during construction, (vi) cost of construction, reconstruction, fixtures, and equipment related to the real property, (vii) cost of land improvements, (viii) necessary expenses in connection with initial occupancy of the project, (ix) a reasonable profit or fee to the builder and developer, (x) an allowance established by the agency for working capital and contingency reserves, and reserves for any anticipated operating deficits during the first two years of occupancy, (xi) the cost of such other items, including tenant relocation, as the agency shall determine to be reasonable and necessary for the development of the project, less any and all net rents and other net revenues received from the operation of the real and personal property on the project site during construction. All costs shall be subject to approval and audit by the agency. The agency may adopt rules and regulations specifying in detail the types and categories of cost which shall be allowable if actually incurred in the construction or reconstruction of a project. (19)  “Federal housing assistance program” means a housing assistance program under which a mortgage loan or project receives assistance from a Federal agency, department or other Federally related entity in the form of a Federal guarantee, insurance, co-insurance, interest reduction payments, rental subsidies, commitment for permanent financing of a project upon completion of construction, or other assistance, pursuant to section 8 of the United States Housing Act of 1937,2 as amended by the Housing and Community Development Act of 19743 section 236 of the National Housing Act of 19344 section 802 of the Housing and Community Development Act of 19745 section 244 of the National Housing Act of 19346 as amended by the Housing and Community Development Act of 1974; section 101 of the Housing and Urban Development Act of 19657 section 23 of the United States Housing Act of 19378 section 515 of Title V of the Housing Act of 1949;9 and any similar or other program or programs which amend, supplement, replace or succeed such a program. (20)  “Lending institution” means any bank, bank and trust company, trust company, savings bank, national banking association, Federal national

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§ 104

HOUSING FINANCE AND SETTLEMENT

mortgage association, approved mortgage banker, FHA approved mortgage service company, savings and loan association, Federal savings and loan association, building and loan association, credit union or other financial institution which customarily provides service or otherwise aids in the financing of mortgages on residential housing in the Commonwealth. § 104.  Constitutional construction If any provision of this act, or the application of any provision to particular circumstances, is held unconstitutional, the remainder of the act, or the application of that provision to other circumstances, shall not be affected. The legislative intention is that this act would have been adopted had that provision not been included. § 201.  Agency creation A body corporate and politic, named the “Pennsylvania Housing Finance Agency,” is hereby created as a public corporation and government instrumentality to have continuing succession until its existence shall be terminated by law. § 202.  Agency membership The members of the agency shall be the Secretary of Community Affairs, the State Treasurer, the Secretary of Commerce and the Secretary of Banking, and the respective successors in office of each of them, one member appointed by the Majority Leader of the Senate, one member appointed by the Minority Leader of the Senate, one member appointed by the Majority Leader of the House of Representatives, one member appointed by the Minority Leader of the House of Representatives and six additional members whom the Governor shall appoint. One of the members of the agency appointed by the Governor with the advice and consent of the Senate shall be a representative of a community-based nonprofit group which assists low-income and moderate-income individuals in housing matters. Annually at the first meeting held during the calendar year, the members shall elect one of the members to serve as chairperson. The members initially appointed shall serve for terms of one, two, three, four, five and six years, respectively, the particular term of each to be designated by the Governor at the time of appointment. The terms of all their successors shall be six years each, except that any person appointed to fill a vacancy shall serve only for the unexpired term. Every member’s term shall extend until his successor is appointed and qualified. Any appointment made by the Governor of a member of the agency made hereafter shall be subject to the advice and consent of a majority of all the members of the Senate. Any appointed member of the agency shall be eligible for reappointment. The members of the agency shall not receive compensation for their services as members, but shall receive reimbursement for all necessary expenses incurred in connection with the performance of their duties as members. A member who fails to attend meetings for three consecutive months shall forfeit his seat unless the chairperson of the agency, upon written request from the member, finds that the member should be excused from a meeting because of illness or the death of an immediate family member. Members appointed by the Majority Leader of the Senate, the Minority Leader of the Senate, the Majority Leader of the House of Representatives and the Minority Leader of the House of Representatives shall not be, themselves, current members of the General Assembly and shall serve at the pleasure of the appointing authority. § 203.  Agency governing body The governing body of the agency shall be a board, consisting of the members of the agency. The board shall elect a chairman from among its members at the first meeting of the board, and at its first meeting in each year thereafter. A majority of the members shall constitute a quorum for the purpose of organizing the agency, conducting its business and exercising all powers of the agency. A

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MORTGAGES

Ch. 26.1

§ 204.  Repealed by 1972, Dec. 5, P.L. 1259, No. 282, § 2, eff. Jan. 11, 1973

Part II Ch. 15–22 Deeds Part III Ch. 23–35 Mortgages Part IV Ch. 36–40 Insurance Part V Ch. 41–48A Zoning, etc. Part VI Ch. 49–56 Taxation Part VII Ch. 57–63 Litigation Part VIII Ch. 64–67 L/T Part IX Ch. 68–72 Condos, etc.

§ 205.  Agency powers The agency shall have the following powers: (1)   To adopt, use and alter at will a corporate seal. (2)   To make and alter bylaws for the management and regulation of its affairs and to make and from time to time amend and repeal rules and regulations governing the various programs of the agency pursuant to this act and the conduct of its business. (3)   To enter into contracts of all kinds and to execute all instruments necessary or convenient for carrying on its operations. (4)  To accept grants and subsidies from and to enter into agreements or other transactions with any Federal agency or agency of the Commonwealth or other entity. (5)  To accept grants-in-aid, gifts, donations, legacies or usages of money made or extended by individuals, organizations, public or private corporations, departments or instrumentalities of the Commonwealth, or the Federal government, and to return money advanced for its usage not otherwise required for its purposes or for any capital reserve fund created in accordance with section 504-A of this act.10 (6)   To be a party litigant in any court having jurisdiction according to law in any form of action whatsoever. (7)  In accordance with the provisions of this act, or in conjunction with Federal law or a Federal program, to make commitments to purchase and to purchase, service and sell mortgages, and to make loans directly upon the security of mortgages. (7.1)   To cooperate with and assist the Pennsylvania Department of Community Affairs as such department carries into effect the powers and duties vested in it. (7.2)   To make commitments to purchase and to purchase loans with respect to rehabilitation or home improvements of residences with such security as determined by the agency. (8)   To acquire, hold and dispose of personal property, tangible and intangible. (9)   To acquire, hold and dispose of real property, or any interest therein, to be used by the agency for the purpose of its offices and operations. (10)   Acquire by purchase, gift or foreclosure any real or personal property, or any interest therein, to enter into any lease of property and to hold, sell, assign, lease, encumber, mortgage or otherwise dispose of any real or personal property, or any interest therein, or mortgage lien interest owned by it or under its control, custody or in its possession and release or relinquish any right, title, claim, lien, interest, easement or demand however acquired, including any equity or right of redemption, in property foreclosed by it and to do any of the foregoing by public or private sale, with or without public bidding, notwithstanding the provisions of any other law. (11)   To borrow money for the operation and work of the agency by the making of notes and by the issuance of bonds in accordance with the provisions of Article V-A of this act.

Part I Ch. 1–14 Brokers

vote of the majority of the members present shall be sufficient for all actions of the board, unless the bylaws require a greater number.

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PART III

10. 35 P.S. § 1680.504a.

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Index

317

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§ 206

HOUSING FINANCE AND SETTLEMENT

(12)   To invest any funds held in reserves or sinking funds, or any funds not required for immediate disbursement, in such investments as may be lawful for fiduciaries under any law of the Commonwealth, including insured mortgages, which for such temporary purposes alone, need not be made by a mortgagor or involve real estate located in Pennsylvania. (13)  To conduct housing studies and to enter into contracts with the Department of Community Affairs and to do all things necessary or convenient to carry out the powers granted by this act or other acts. (14)   Employ an executive director and such other officers, agents, employes, professional and business advisers as may from time to time be necessary in its judgment and to fix their compensation; and to promote and discharge such officers, employes and agents. (15)   Appear in its own behalf before boards, commissions, departments or other agencies of government, municipal, State or Federal. (16)  Procure insurance against any loss in connection with its property in such amounts, and from such insurers, as may be necessary or desirable. (17)   To do all things necessary or convenient to carry out the powers granted by this act or other acts. (18)   Subject to any agreement with bondholders or noteholders, to collect, enforce the collection of, and foreclose on any collateral securing its loans and acquire or take possession of such collateral and sell the same at public or private sale, with or without bidding, and otherwise deal with such collateral as may be necessary to protect the interests of the agency therein or in which the agency has an interest. (19)  Subject to any agreement with bondholders or noteholders and with the written approval of the Governor, to consent to any modification with respect to rate of interest, time and payment of any installment of principal or interest, security or any other term of any loan to a mortgage lender or any bond or note, contract or agreement of any kind to which the agency is a party. (20)  To invest in, pledge capital to, lease, own, manage or develop housing projects and programs in the furtherance of the purposes set forth in this act, individually, as a shareholder, stockholder, partner, equity participant or joint venturer. (21)  To form corporations under the not-for-profit laws of this Commonwealth for the purpose of owning or developing low-income and moderateincome housing and housing for persons with disabilities, the elderly or other persons with special needs. Any such corporation shall be subject to the same oversight and auditing requirements which are applicable to the agency under this act. § 206.  Agency moneys All moneys of the agency from whatever source derived shall be paid to the treasurer of the agency and deposited in the first instance in one or more banks or trust companies, in one or more special accounts, each continuously secured by pledge of direct obligations of the United States of America or of the Commonwealth, or bonds of the agency, having an aggregate market value, exclusive of accrued interest, at all times, at least equal to the balance on deposit in the account. The security shall be either deposited with the treasurer or held by a trustee or agent satisfactory to the agency. All banks and trust companies are authorized to give the security required. The moneys of the agency shall be paid out on the warrant or other order of the treasurer of the agency or of another

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Ch. 26.1

Index

gtb-parealestate22-all.indb 319

Part IX Ch. 68–72 Condos, etc.

319

Part VIII Ch. 64–67 L/T

11. 72 P.S. § 1 et seq.

Part VII Ch. 57–63 Litigation

(d)  Upon the sale by the mortgagor of any housing unit to an individual purchaser of low or moderate income under this subsection to whom a loan is being made by the agency, such housing unit shall be released from the mortgage running from the mortgagor to the agency and such mortgage shall be replaced as to the housing unit by a mortgage running from the individual purchaser to the agency.

Part VI Ch. 49–56 Taxation

(c)   While such loan is outstanding, the agency shall, prior to the approval of sale by the mortgagor or any subsequent resale, satisfy itself that such sale or resale is to persons of low or moderate income.

Part V Ch. 41–48A Zoning, etc.

(b)  While such loan is outstanding, any sale by the mortgagor or any subsequent resale shall be subject to approval by the agency and the agency shall provide in its rules and regulations concerning such sales and resales that the price of the housing unit sold, the method of making payments thereafter, the security afforded and the interest rates, fees and charges to be paid shall at all times be sufficient to permit the agency to make the payments on its bonds and notes plus any administrative or other costs of the agency in connection with the transactions. Housing units shall be sold under terms that provide for monthly payments including principal, interest, taxes and insurance.

Part IV Ch. 36–40 Insurance

§ 301a.  Housing purchase program (a)   The agency may make loans to any mortgagor for the construction, reconstruction or rehabilitation of housing units for sale to individual purchasers of low or moderate income as provided by the agency in its rules and regulations and to any such individual purchaser for the long-term financing of a housing unit. A loan under this section may be in an amount not to exceed one hundred per cent of the total project cost as approved by the agency.

Part III Ch. 23–35 Mortgages

§§ 301 to 311.  Repealed by 1972, Dec. 5, P.L. 1259, No. 282, § 4, eff. Jan. 11, 1973

Part II Ch. 15–22 Deeds

§ 208.  Housing studies The agency shall conduct a periodic study of housing needs in the Commonwealth, with particular emphasis on the needs of low-income and moderateincome individuals. Such a study shall be conducted at least every four years.

Part I Ch. 1–14 Brokers

person authorized by the agency to execute warrants or orders. Notwithstanding the provisions of this section, the agency shall have power to contract with the holders of any of its bonds or notes as to the custody, security and payment of any moneys of the agency or any moneys held in trust or otherwise to secure the payment of bonds or notes. Deposits of moneys held in trust or otherwise to secure the payment of bonds or notes may be secured in the same manner as moneys of the agency and all banks and trust companies are authorized to give security for such deposits. § 207.  Agency audits and reports The accounts and books of the agency, including its receipts, disbursements, contracts, mortgages, investments and other matters relating to its finances, operations and affairs, shall be examined and audited from time to time by the Auditor General as provided in The Fiscal Code.11 Within sixty days after the end of each fiscal year of the agency, or as soon thereafter as practical, the agency shall file an annual financial statement consisting at least of a balance sheet, profit-and-loss statement and general report of operations with the Governor, the Auditor General and the General Assembly.

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§ 401

HOUSING FINANCE AND SETTLEMENT

(e)   Loans may, in addition, be made directly to individual purchasers of low or moderate income for the construction, reconstruction, or rehabilitation of housing units by them, not in excess of one hundred per cent of the cost of such construction, reconstruction, or rehabilitation. The agency shall provide in its rules and regulations concerning such loans that the amount of the loan, the method of making payments thereafter, the security afforded and interest rates, fees and charges to be paid shall at all times be sufficient to permit the agency to make the payments on its bonds and notes plus any administrative or other costs of the agency in connection with the transactions. §§ 401 to 412.  Repealed by 1972, Dec. 5, P.L. 1259, No. 282, § 4, eff. Jan. 11, 1973 § 401a.  Rental housing program To accomplish the declared purpose of this act of providing rental housing to persons and families of low and moderate income the agency is hereby authorized to: (1)  Make loans secured by real property or a leasehold estate, including mortgages or such other security as the agency determines to be necessary, to finance projects designed and planned to be available for low and moderate income persons and families or elderly persons and others. (2)  Sell, at public or private sale, with or without bidding, any mortgage or other obligation securing a mortgage loan, including sales of mortgages to the United States of America or the Commonwealth or any agencies, instrumentalities or departments thereof. (3)   Consent, subject to the provisions of any contract with noteholders or bondholders, whenever it deems it necessary or desirable in the fulfillment of the purposes of this act, to the modification, with respect to rate of interest, time of payment of any installment of principal or interest, or any other terms of any mortgage, mortgage loan, mortgage loan commitment, contract or agreement of any kind to which the agency is a party. (4)   In the event of a violation by the mortgagor of the terms of any agreement between the agency and the eligible mortgagor or in the event of a violation by the mortgagor of this act or of the terms of the mortgage loan agreement or of any rules and regulations of the agency duly promulgated pursuant to this act, or in the event the agency shall determine that any loan, or part thereof, made pursuant to this act is in jeopardy of not being repaid, the agency may remove any or all of the existing owners, partners, officers or directors of such mortgagor and appoint such person or persons who the agency in its sole discretion deems advisable, including officers or employes of the agency, as new officers or directors to serve in place of those removed. Officers or directors so appointed need not be stockholders or meet other qualifications which may be prescribed by the certificate of incorporation or bylaws of such mortgagor. In the absence of fraud or bad faith, officers or directors so appointed shall not be personally liable for debts, obligations or liabilities of such mortgagor. Officers or directors so appointed shall serve only for a period coexistent with the duration of such violation or until the agency is assured in a manner satisfactory to it that such violation, or violations of a similar nature, have not and will not reoccur. Officers or employes of the agency who are so appointed as officers or directors shall serve in such capacity without compensation, but shall be entitled to be reimbursed, if and as the certificate of incorporation or bylaws of such mortgagor may provide, for all necessary expenses incurred in the discharge of their duties as officers or directors so appointed of such mortgagor and such other necessary expenses incurred in the discharge of their duties as officers or directors of such eligible mortgagor as determined by the agency.

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Ch. 26.1

Part III Ch. 23–35 Mortgages Part IV Ch. 36–40 Insurance Part V Ch. 41–48A Zoning, etc. Part VI Ch. 49–56 Taxation Part VII Ch. 57–63 Litigation Part VIII Ch. 64–67 L/T Part IX Ch. 68–72 Condos, etc. Index

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§ 402a.  Mortgage loans (a)  Purpose. The agency may make mortgage loans to mortgagors for such projects as in the judgment of the agency have promise of supplying well planned, well designed apartment units which will provide housing for low and moderate income persons or families or the elderly and others in locations where there is a need for such housing. Such loans may include construction loans as well as permanent loans. The agency shall require the mortgagor receiving a loan or its contractor to post labor and materials, and construction performance, surety bonds in amounts related to the project cost as established by regulation or to execute other assurances and guarantees as the agency may deem necessary and may require its principals or stockholders to also execute such other assurances and guarantees as the agency may deem necessary. (b)  Interest and Charges. The agency shall have authority to set from time to time the interest rates at which it shall make loans, consistent with the agency’s cost of borrowing money, cost of operation and its responsibilities to the holders of its bonds. In connection with the making of mortgage loans and commitments therefor, and in addition to such interest charges, the agency may make and collect such fees and charges, including but not limited to reimbursement of the agency’s financing costs, service charges, insurance premiums and mortgage insurance premiums, as the agency determines to be reasonable. (c)  Limited Profit. The loan shall be subject to an agreement between the agency and the mortgagor limiting the mortgagor and its principals or stockholders to such rate of return on its investment in the housing project to be assisted with a loan from the agency as shall be fixed from time to time by the agency in its regulations, which shall take into account the prevailing rates of return available for similar investments and the risks associated with the development of the project, together with factors designed to promote the objectives of providing affordable housing throughout the Commonwealth, maintaining and improving the existing housing stock and other objectives of this act. A loan may be in an amount not to exceed one hundred per cent of the project cost as approved by the agency in the case of a nonprofit mortgagor and in an amount not to exceed ninety per cent of the project costs as approved by the agency in all other cases. (d)  Use of Nondistributed Profits. Whenever a mortgagor accumulates earned surplus in addition to such reserves for replacement as the agency may require, in excess of ten per cent of the current annual rent roll for the project, the agency may require rents in the project to be reduced to the extent necessary to lower the earned surplus accumulation to such ten per cent figure in the following fiscal year. (e)  Regulatory Agreement. The loan shall be subject to an agreement between the agency and the mortgagor which will subject said mortgagor and its principals or stockholders to limitations established by the agency as to rentals and other charges, builders’ and developers’ profits, dividends and fees, and the disposition of its property and franchises to the extent more restrictive limitations are not provided by the law under which the borrower is incorporated or organized. (f)  Nondiscrimination. The agency shall require that occupancy of all housing financed or otherwise assisted under this act be open to all persons regardless of race, national origin, religion, gender, handicap or disability, familial status or creed, subject only to such exceptions allowable by law, and that mortgagors, contractors and subcontractors engaged in the construction, rehabilitation, sale or rental of such housing, shall provide equal opportunity for employment without discrimination as to race, national origin, religion, gender, handicap or disability, familial status or creed, subject only to such exceptions allowable by law.

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§ 403a HOUSING FINANCE AND SETTLEMENT (g)   Amortization and Refinancing. The ratio of loan to project value and the amortization period of loans made under this act which are insured by F.H.A. shall be governed by the F.H.A. mortgage insurance commitment for each project concerned, but shall not exceed fifty years. In the case of a mortgage loan not insured by F.H.A., the ratio of loan to project value and the amortization period of loans shall be determined in accordance with regulations formulated and published by the agency. (h)  Project Cost Certification. No loan shall be made unless the mortgagor agrees (i) to certify upon completion of project construction or rehabilitation, subject to audit and determination by the agency, the actual total project cost as defined herein, and (ii) to pay forthwith to the agency, for application to reduction of the principal of the loan, the amount, if any, subject to audit and determination by the agency, of loan proceeds received in excess of the allowable loan based upon the percentage of loan to total project cost authorized by the agency. Notwithstanding the provisions of this subsection, the agency may accept, in lieu of any certification of total project cost as provided herein, such other assurances of the said total project cost, in any form or manner whatsoever, as will enable the agency to determine with reasonable accuracy the amount of said total project cost. § 403a.  Rental charges In order to encourage developments which are not economically homogeneous and to achieve rent charges which will make units available to persons and families of low income at low rentals and moderate income at moderate rentals the agency and a mortgagor may use measures including, but not limited to: direct rental assistance in the form of partial rent subsidy from any county, municipal, Commonwealth or Federal source, allocation of lower rents, and the raising of rents in the majority of apartments in the project in order to lower the rents of those in the lower rent charge category. With respect to each project the agency shall, prior to initial occupancy, allocate and prescribe the number of lower rental units and the rents to be charged therefor. The allocation may be reviewed and adjusted from time to time. The method of achieving lower rental charges shall, in each instance, be prescribed by the agency. § 404a.  Tenants (a)   Prior to making a loan commitment under this article, the agency shall approve a tenant selection plan submitted by the applicant for such a loan. The agency shall make regulations from time to time governing the terms of such tenant selection plans. Such plans shall include criteria for tenant selection based upon the established income limits for eligible tenants which may vary with the size and circumstances of the person or family. Such income limits shall be sufficiently flexible to avoid undue economic homogeneity among the tenants of a project. Tenant selection plans shall provide that as between applicants equally in need and eligible for occupancy of the unit, preference may be given to the elderly and to persons displaced by public action or natural disaster. (b)  The agency shall by rules and regulations provide for the periodic examination of the annual income of any person or family residing in any project constructed or rehabilitated with a loan from the agency. In the event that the annual income of a person or family residing in any such project increases and exceeds the income limits prescribed by applicable rules and regulations of the agency but is not more than twenty-five per cent above the annual income so prescribed for admission to the project, the owner or managing agent of such project shall permit the person or family to continue to occupy the unit. The agency or (with the approval of the agency) the mortgagor of any project constructed or rehabilitated with a loan from the agency, may terminate the tenancy or interest of any person or family residing in such project whose annual income exceeds one hundred twenty-five per cent of that prescribed by applicable rules and regulations

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Ch. 26.1

Part IV Ch. 36–40 Insurance Part V Ch. 41–48A Zoning, etc. Part VI Ch. 49–56 Taxation Part VII Ch. 57–63 Litigation Part VIII Ch. 64–67 L/T Part IX Ch. 68–72 Condos, etc.

(a)   The Pennsylvania Housing Finance Agency, hereinafter referred to as the “agency,” may make loans secured by liens on residential real property located

Part III Ch. 23–35 Mortgages

§ 401c.  General authority

Part II Ch. 15–22 Deeds

§ 401b.  General statement The agency is hereby authorized to make or purchase loans or mortgages by contract with lending institutions to finance the purchase, construction, improvement or rehabilitation of owner-occupied single-family residences pursuant to the provisions of the Mortgage Subsidy Bond Tax Act of 1980 (Public Law 96-499)12 or any Federal tax legislation or program which may be a successor to the act or which may be similar to the act. The agency may acquire, and contract and enter into advance commitments to acquire by assignment or otherwise, loans secured by insurance or by mortgages owned by lending institutions or participations therein at such purchase price and upon such other terms as the agency shall determine. The agency may make and execute contracts with lending institutions for the origination and servicing of such loans and pay the value of services rendered under such contracts. § 402b.  Allocation of loans (a)  The agency shall geographically allocate the proceeds of any qualified mortgage bond issue in accordance with rules and regulations promulgated by the agency. Such rules shall be designed to encourage maximum use and equitable distribution of proceeds of bond issues throughout this Commonwealth. (b)   The agency shall develop appropriate standards and procedures to implement the targeted area requirements of any relevant Federal tax or Federal housing legislation. (c)   The agency shall specify standards, criteria and procedures to be employed in selecting eligible mortgagors for loans made with the proceeds of any qualified mortgage bond issued by the agency. (d)   The agency may enter into agreements with county or city housing authorities, residential finance authorities, redevelopment authorities or other suitable governmental entities to assist in the administration of this article with respect to loans allocated to the municipality within the jurisdiction of the authority or governmental entity. (e)   The agency and any municipality engaging in local issuance, as authorized by section 501-A,13 may contract with lending institutions to make loans with the proceeds of qualified mortgage bonds. The agency and any municipality electing local issuance may acquire and contract and enter into advance commitments to acquire by assignment or otherwise, loans secured by insurance or by mortgages made or owned by lending institutions or participations therein. The agency and any municipality electing local issuance may make and execute contracts with lending institutions for the origination and servicing of such loans and pay the value of services rendered under such contracts.

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of the agency and which continues to exceed the same for a period of six months or more: Provided, That no tenancy or interest of any such person or family in any such project shall be terminated except upon reasonable notice and opportunity to obtain suitable alternate housing, in accordance with rules and regulations of the agency: Provided further, That any such person or family, with the approval of the agency, may be permitted to continue to occupy the unit, subject to payment of a rent or carrying charge surcharge to the mortgagor in accordance with a schedule of surcharges fixed by the agency. The agency may require the mortgagor to make payable such surcharge to the agency’s general fund.

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12. 26 U.S.C. §§ 103, 103A (repealed); see, 26 U.S.C. § 143. 13. 35 P.S. § 1680.501a.

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§ 401c HOUSING FINANCE AND SETTLEMENT in Pennsylvania to residents of Pennsylvania eligible for such loans as described in this article. For the purpose of this article, the term “mortgage” shall include any obligation evidenced by a security document and secured by a lien upon real property located within this Commonwealth including, but not limited to, a deed of trust and land sale agreement. The term shall also include an obligation evidenced by a security lien on real property upon which an owner-occupied mobile home is located. The provisions of this article shall not be applicable if: (1)  The property securing the mortgage is not the principal residence of the mortgagor. (2)   The property securing the mortgage is not a one or two-family owneroccupied residence. (3)   The mortgage is insured by the Federal Housing Administration under Title II of the National Housing Act (12 U.S.C. §§ 1707-1715z-18). (4)   The mortgage on the property was given by a noncorporate seller, unless the noncorporate seller elects, in writing, in the mortgage or elsewhere to be covered by this article. For purposes of this article “noncorporate seller” means any person who is given a mortgage by a buyer to secure repayment of the purchase price of real property who is not a bank, a savings and loan association, a mortgage bank, a consumer discount company or other entity in the mortgage lending business. (5)   The mortgagor is more than twenty-four (24) months delinquent or in default for more than twenty-four (24) months, pursuant to the terms of mortgagor’s residential mortgage. This requirement shall mean that if the mortgagor is more than twenty-four (24) consecutive or nonconsecutive months in arrears on the residential mortgage in question, no matter what the reason therefor, the agency shall not be authorized to make any loans hereunder to such mortgagor. (6)   The aggregate amount of arrearages due to a mortgagee pursuant to the terms of the mortgage, without regard to any acceleration under the mortgage, including, but not limited to, the amount of principal, interest, taxes, assessments, ground rents, hazard insurance, any mortgage insurance or credit insurance premiums, exceeds the sum of sixty thousand dollars ($60,000). (7)   The property is encumbered by more than two mortgages, other than a mortgage filed by the agency to secure repayment of the mortgage assistance loans, or by other liens or encumbrances which would unreasonably impair the security of the agency’s mortgage. (b)   The agency shall carry out the program established by this article. Within sixty days of the effective date of this article, the agency shall adopt initial program guidelines for the implementation of this article and may revise the guidelines whenever appropriate. The agency shall report annually to the General Assembly on the effectiveness of the Homeowner’s Emergency Mortgage Assistance Program in accomplishing the purposes of this article. (c)  The agency shall develop uniform notices and rules and regulations in order to implement the provisions of this article. (d)   The agency shall designate and approve nonprofit consumer credit counseling agencies in each county to be available to assist the agency in implementing the provisions of this article, including, but not limited to, mandated counseling. A “consumer credit counseling agency” shall be defined for the purpose of this article as a nonprofit consumer credit counseling agency located in Pennsylvania which is approved by the agency or a housing counseling agency certified by the United States Department of Housing and Urban Development. The agency shall maintain an up-to-date list of approved consumer credit counseling agencies for each county and publish the list on the agency’s Internet website.

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Ch. 26.1

Part IV Ch. 36–40 Insurance Part V Ch. 41–48A Zoning, etc. Part VI Ch. 49–56 Taxation Part VII Ch. 57–63 Litigation Part VIII Ch. 64–67 L/T Part IX Ch. 68–72 Condos, etc. Index

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14. 35 P.S. § 1680.403c. 15. 41 P.S. § 403.

Part I Ch. 1–14 Brokers

§ 402c.  Notice and institution of foreclosure proceedings (a)   Before any mortgagee may accelerate the maturity of any mortgage obligation covered under this article, commence any legal action including mortgage foreclosure to recover under such obligation, or take possession of any security of the mortgage debtor for such mortgage obligation, such mortgagee shall give the mortgagor notice as described in section 403-C.14 Such notice shall be given in a form and manner prescribed by the agency. Further, no mortgagee may enter judgment by confession pursuant to a note accompanying a mortgage, and may not proceed to enforce such obligation pursuant to applicable rules of civil procedure without giving the notice provided for in this subsection and following the procedures provided for under this article. (b)  A mortgagee shall not accelerate the maturity of any mortgage obligation covered under this article, commence any legal action including mortgage ­foreclosure to recover under such obligation, or take possession of any security of the mortgage debtor for such mortgage obligation until a determination has been made by the agency on a mortgagor’s application for emergency mortgage assistance payments or the applicable time periods provided for in section 403-C have expired without the mortgagor applying for assistance in a timely fashion, whichever is earlier. (c)   All pending legal actions by mortgagees on mortgages covered under this article in which sheriff’s sales have not been consummated on the effective date of this article shall be temporarily stayed. The notice provided in section 403-C shall be given to all mortgagors against whom such legal actions are pending on the effective date of this article. Such stay shall extend until the applicable time limits provided for in section 403-C have expired or a mortgagor’s request for assistance has been denied by the agency, whichever is earlier. § 403c.  Notice requirements (a)  Any mortgagee who desires to foreclose upon a mortgage shall send to such mortgagor at this or her last known address the notice provided in subsection (b): Provided, however, That such mortgagor shall be at least sixty (60) days contractually delinquent in his mortgage payments or be in violation of any other provision of such mortgage. (b)(1)   The agency shall prepare a notice which shall include all the information required by this subsection and by section 40315 of the act of January 30, 1974 (P.L. 13, No. 6), referred to as the Loan Interest and Protection Law and referred to commonly as the Usury Law. This notice shall be in plain language and specifically state that the recipient of the notice may qualify for financial assistance under the Homeowner’s Emergency Mortgage Assistance Program. This notice shall contain the telephone number and the address of a local consumer credit counseling agency. This notice shall be in lieu of any other notice required by law. This notice shall also advise the mortgagor of his delinquency or other default under the mortgage, including an itemized breakdown of the total amount past due, and that such mortgagor has thirty (30) days, plus three (3) days for mailing, to have a face-to-face meeting with a consumer credit counseling agency to attempt to resolve the delinquency or default by restructuring the loan payment schedule or otherwise. The mortgagee or other person sending the notice to the mortgagor shall simultaneously send a copy of each notice issued to the agency by regular mail, facsimile, electronic mail or another means of electronic transfer in accordance with agency guidelines. In lieu of sending a copy of each notice, the mortgagee or other person charged with sending the notice may provide the agency, within thirty (30) days of the end of each calendar quarter,

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§ 403c HOUSING FINANCE AND SETTLEMENT a report listing the notices sent during the prior calendar quarter arranged by property address including zip code. (2)   The notice under paragraph (1) must be sent by a mortgagee at least thirty (30) days before the mortgagee: (i)   asks for full payment of any mortgage obligation; or (ii)  begins any legal action, including foreclosure, for money due under the mortgage obligation or to take possession of the mortgagor’s security. (3)  The proposed notice under paragraph (1) shall be published by the agency in the Pennsylvania Bulletin within one hundred twenty (120) days of the effective date of this paragraph. The notice actually adopted for use by the agency shall be promulgated as part of the program guidelines required by section 401-C(b).16 (4)   If the mortgagor meets with a consumer credit counseling agency, the consumer credit counseling agency shall promptly notify all of the mortgagees secured by the mortgagor’s real property, and no mortgagee so notified shall commence any legal action against the mortgagor’s real property for a period not to exceed thirty (30) calendar days from the date that the mortgagor first meets with the consumer credit counseling agency. (5)  The notice shall include a statement that the mortgagor must have a face-to-face meeting with one of the designated consumer credit counseling agencies within thirty (30) calendar days plus three (3) additional days for mailing. (6)   If the mortgagor applies for mortgage assistance payments, the agency shall promptly notify all of the mortgagees secured by the mortgagor’s real property. The agency shall make a determination of eligibility within sixty (60) calendar days of receipt of the mortgagor’s application. During the time that the application is pending, no mortgagee may commence legal action to foreclose upon its mortgage with the mortgagor. The agency shall provide notice to the mortgagee if an administrative appeal is filed. (7)   An application for mortgage assistance may be submitted to the agency beyond the thirty (30)-day period specified in paragraph (5), and, in such case, the agency shall make a determination within sixty (60) calendar days of receipt of the mortgagor’s application. A late application or an administrative appeal will not stay foreclosure proceedings, but, in the event the application is approved by the agency, a commenced foreclosure proceeding shall be stayed unless and until the mortgagor fails to proceed to closing and the agency rescinds its approval. (c)  If the mortgagor fails to meet with the mortgagee or consumer credit counseling agency or meet any of the time limitations specified in the notice or if the mortgagor’s application for mortgage assistance payments is denied, the mortgagee may, at any time thereafter, take any legal action to enforce the mortgage without any further restriction or requirements under this article. Financial institutions shall not be the duly authorized agents of the agency for the purpose of making any decision on the approval of assistance under this act. (d)  If, after a face-to-face meeting, the mortgagor and the mortgagee reach an agreement to resolve the delinquency or default as provided for in section 403- C(b) and if, because of circumstances beyond the mortgagor’s control, the mortgagor is unable to fulfill the obligations of that agreement, the mortgagor may apply to the agency or its duly authorized agent for assistance under this article within thirty (30) days of any default in payment under the agreement previously reached. The mortgagee shall not be required to send any additional notice pursuant to this article. 16. 35 P.S. § 1680.401c.

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Ch. 26.1

Part IV Ch. 36–40 Insurance Part V Ch. 41–48A Zoning, etc. Part VI Ch. 49–56 Taxation Part VII Ch. 57–63 Litigation Part VIII Ch. 64–67 L/T Part IX Ch. 68–72 Condos, etc. Index

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§ 404c.  Eligibility for assistance (a)   No assistance may be made with respect to a mortgage or mortgagor under this article unless all of the following are established: (1)  The property securing the mortgage, or other security interest in the case of units in cooperative or condominium projects, is a one-family residence, or two-family owner-occupied residence including one-family units in a condominium project or a membership interest and occupancy agreement in a cooperative housing project, is the principal residence of the mortgagor and is located in this Commonwealth. (2)(i)   Any mortgagee has indicated to the mortgagor its intention to foreclose; and (ii)  payments under any mortgage have been contractually delinquent for at least sixty (60) days. (3)  The mortgage is not insured by the Federal Housing Administration under Title II of the National Housing Act (12 U.S.C. §§ 1707-1715z-18). (4)   The mortgagor is a permanent resident of this Commonwealth and is suffering financial hardship due to circumstances beyond the mortgagor’s control which render the mortgagor unable to correct the delinquency or delinquencies within a reasonable time and make full mortgage payments. (5)   The agency has determined that there is a reasonable prospect that the mortgagor will be able to resume full mortgage payments within twenty-four (24) months after the beginning of the period for which assistance payments

Part I Ch. 1–14 Brokers

(e)  All parties requiring notice pursuant to this article shall be deemed to receive notice on the third business day following the date of the mailing of the notice as documented by a certificate of mailing obtained from the United States Postal Service. (f)  Notwithstanding any other provisions of this section, a mortgagee shall not be required to send the uniform notice provided in subsection (b): (1)  to any mortgagor who is more than twenty-four (24) consecutive or nonconsecutive months in arrears on the residential mortgage in question, no matter what the reason therefor; or (2)   where the aggregate amount of arrearages due to a mortgagee pursuant to the terms of the mortgage, without regard to any acceleration under the mortgage including, but not limited to, the amount of principal, interest, taxes, assessments, ground rents, hazard insurance, any mortgage insurance or credit insurance premiums, exceeds the sum of sixty thousand ($60,000) dollars. (g)  Notwithstanding any other provisions of this section, a mortgagee shall not be required to send the uniform notice provided in subsection (b) to any mortgagor who has already been sent the uniform notice and: (1)   who did not apply for a mortgage assistance loan; (2)   who applied for a mortgage assistance loan but whose application was denied; or (3)  whose mortgage assistance disbursements were terminated by the agency for any reason. Unless the mortgagor has cured his or her mortgage delinquency, by means of a mortgage assistance loan or otherwise, receipt of partial payments of arrears from the mortgagor, subsequent to the sending of the uniform notice, shall not mean that the mortgagee must send a new uniform notice to the mortgagor prior to legal action being taken to enforce the mortgage. A uniform notice sent to the mortgagor, while the mortgagor was in bankruptcy, shall be valid for the purpose of this act and no new uniform notice need be provided as a result of any discharge or dismissal of the bankruptcy petition or relief from the automatic stay.

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§ 404c HOUSING FINANCE AND SETTLEMENT are provided under this article and pay the mortgage or mortgages in full by its maturity date or by a later date agreed to by the mortgagee or mortgagees for completing mortgage payments. (6)   The mortgagor has applied to the agency for assistance on an application form prescribed by the agency for this use which includes a financial statement disclosing all assets and liabilities of the mortgagor, whether singly or jointly held, and all household income regardless of source. Any applicant who intentionally misrepresents any financial information in conjunction with the filing of an application for assistance under this article may be denied assistance or required to immediately repay any amount of assistance made as a result of such misrepresentation, and the mortgagee may, at any time thereafter, take any legal action to enforce the mortgage without any further restrictions or requirements under this article. (7)   The mortgagee is not prevented by law from foreclosing upon the ­mortgage. (8)   The agency has determined, based on the mortgagor’s financial statement, that the mortgagor has insufficient household income or net worth to correct the delinquency or delinquencies within a reasonable period of time and make full mortgage payments. (9)   Except for the current delinquency, the mortgagor shall have had a favorable residential mortgage credit history for the previous five (5) years. This requirement shall mean that, if the mortgagor has been more than three (3) consecutive months in arrears on a residential mortgage within the previous five (5) years, he shall be ineligible for assistance, unless the mortgagor can demonstrate that the prior delinquency was the result of financial hardship due to circumstances beyond his control. (10)   For purposes of this section, in order to determine whether the financial hardship is due to circumstances beyond the mortgagor’s control, the agency may consider information regarding the mortgagor’s employment record, credit history and current income. (11)   The mortgagor meets any other procedural requirements established by the agency. (12)   The mortgagor is not more than twenty-four (24) months delinquent or in default for more than twenty-four (24) months pursuant to the terms of mortgagor’s residential mortgage. This requirement shall mean that if the mortgagor is more than twenty-four (24) consecutive or nonconsecutive months in arrears on the residential mortgage in question, no matter what the reason therefor, he shall be ineligible for assistance. (13)  The property is not encumbered by more than two mortgages, other than a mortgage filed by the agency to secure repayment of the mortgage assistance loan, or by other liens or encumbrances which would unreasonably impair the security of the agency’s mortgage. (b)   Upon a determination that the conditions of eligibility described in subsection (a) have been met by a mortgagor and money is available in the Homeowner’s Emergency Mortgage Assistance Fund, the mortgagor shall become eligible for the assistance described in section 405-C.17 If the agency determines that a mortgagor has not met the conditions of eligibility described in subsection (a), the mortgagor shall be prohibited from reapplying for assistance under this article for a period of twenty-four (24) months from the date of such determination unless there is a material change in circumstances: Provided, however, That nothing is this subsection shall prohibit any mortgagee from commencing legal action to enforce the mortgage without any further restriction or requirement under this article whenever the agency determines that the mortgagor is ineligible for assistance as provided in this section. 17. 35 P.S. § 1680.405c.

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Ch. 26.1

Part IV Ch. 36–40 Insurance Part V Ch. 41–48A Zoning, etc. Part VI Ch. 49–56 Taxation Part VII Ch. 57–63 Litigation Part VIII Ch. 64–67 L/T Part IX Ch. 68–72 Condos, etc. Index

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Part III Ch. 23–35 Mortgages

329

Part II Ch. 15–22 Deeds

18. 73 P.S. § 201-1 et seq.

Part I Ch. 1–14 Brokers

§ 405c.  Assistance payments (a)   If the agency determines that a mortgagor is eligible for assistance under this article, the agency shall pay directly to each mortgagee secured by the mortgagor’s real estate payments on behalf of the mortgagor. The agency shall pay to each mortgagee the full amount then due to that mortgagee pursuant to the terms of the mortgage without regard to any acceleration under the mortgage, or the full amount of any alternative mortgage payments agreed to by the mortgagee and mortgagor. This amount shall include, but not be limited to, the amount of principal, interest, taxes, assessments, ground rents, hazard insurance, any mortgage insurance or credit insurance premiums. The initial payment made by the agency to each mortgagee shall be an amount which makes each mortgage current and pays reasonable costs and reasonable attorneys’ fees already incurred by such mortgagee. However, in no event shall the total payment exceed the sum equal to twenty-four (24) consecutive or nonconsecutive months of arrears on any residential mortgage. (a.1)   A mortgagee entitled to payments under this section shall provide to the agency within thirty (30) days of the agency’s request the following documents and information: (1)   An itemized statement of the amounts due under the mortgage, including all corporate advances incurred for which reimbursement from the mortgagor is demanded by the mortgagee. Demands for attorney fees, court costs and other advances shall be reasonable and shall reflect the amount of work and expenses actually expended and may not include any amounts incurred during any period a stay is in effect under this act. (2)   Copies of the following documents from the original mortgage transaction: (i)   The HUD-1 settlement statement. (ii)   The mortgage and note. (iii)  The appraisal, if an appraisal has been performed during the last five (5) years. (a.2)  Failure to provide in a timely fashion the documents and information required under subsection (a.1) will result in the mortgagee’s forfeiture of the right to receive any late fees and attorney fees, costs and expenses. (a.3)  Upon the agency’s payment of the initial payment to the mortgagee, including all corporate advances allowed by the agency, the mortgagee shall adjust its accounts to reflect that the mortgage obligation is, as of the date of receipt of such funds, reinstated and current for all purposes. The subsequent imposition by a mortgagee of any charges, fees or other amounts that were paid or disallowed by the agency, or waived by the mortgagee, shall be in violation of the act of December 17, 1968 (P.L. 1224, No. 387),18 known as the “Unfair Trade Practices and Consumer Protection Law.” (b)   After the agency has paid any and all arrearages pursuant to subsection (a) to each mortgagee, the mortgagor may be entitled to monthly mortgage assistance payments pursuant to this article. A mortgagor on whose behalf the agency is making mortgage assistance payments shall pay monthly payments to the agency. Such payments shall be in an amount which will cause the mortgagor’s total housing expense not to exceed forty (40) percent of the mortgagor’s net effective income. This shall be the maximum amount the mortgagor can be required to pay during the period a mortgagor is eligible for emergency mortgage assistance: Provided, however, That beginning February 1, 1999, and continuing thereafter, any mortgagor approved for continuing monthly mortgage assistance

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§ 405c HOUSING FINANCE AND SETTLEMENT or whose continuing mortgage assistance is approved after being recertified by the agency, shall pay to the agency a minimum monthly payment of at least twenty-five ($25) dollars for each mortgage being assisted. The mortgagor shall make the above payment to the agency at least fifteen (15) days before each mortgage payment is due to each mortgagee. Upon receipt of this payment from the mortgagor, the agency or its duly authorized agent shall send the total mortgage payment directly to each mortgagee. “Housing expense” shall be defined as the sum of the mortgagor’s monthly utility, hazard insurance expense, real estate taxes and required mortgage payments, including escrows. “Net effective income” shall be defined as gross household income less city, State and Federal income and social security taxes. “Gross household income” means the total income of the applicant, all other owner-occupants of the residence, any spouse and children residing in the same household as the applicant and any other resident of the household declared by the mortgagor as a dependent for Federal tax purposes. The income of other unrelated individuals residing in the household shall be considered part of gross household income to the extent that their income is made available in support of the household. If the mortgagor is receiving emergency mortgage assistance under a program other than that established in this article, the amount of the payment he or she is required to make to the agency under this article shall take into consideration the amount of assistance he is receiving under such other programs. (b.1)   In lieu of paying arrearages under subsection (a) or ongoing assistance under subsection (b), the agency may fund a compromise pay-off of the balance of the mortgage, if the agency determines that structuring assistance in such a manner would be in the best interest of the agency and the mortgagor, as agreed to by the mortgagee. (c)  The amount by which the mortgagor assistance payments made by the agency to all mortgagees exceeds the amount of payments made by the mortgagor to the agency shall be a loan in that amount by the agency to the mortgagor. Such loan shall be evidenced by such documents as the agency shall determine and shall be subject to repayment with interest and secured as provided herein. (d)   If the mortgagor fails to pay to the agency any amounts due directly from him or her under this section within fifteen (15) days of the due date, the agency shall review the mortgagor’s financial circumstances as provided in subsection (b) to determine whether the delinquency is the result of a change in the mortgagor’s financial circumstance. If the delinquency is not the result of a change in the mortgagor’s financial circumstances, the agency shall terminate the emergency mortgage assistance payments and any mortgagee may, at any time thereafter, take any legal action to enforce its mortgage without any further restriction or requirement under this article. If the delinquency is the result of a change in the mortgagor’s financial circumstances, the agency shall modify the mortgagor’s required payments to the agency as the agency shall determine. (e)   If any mortgagee scheduled to receive monthly payments from the agency pursuant to this article fails to receive from the agency the full amount of such monthly payment within thirty (30) days of the scheduled due date, or if a mortgagor fails to observe and perform all the terms, covenants and conditions of the mortgage, that mortgagee may, at any time thereafter, take any legal action to enforce the mortgage without any further restriction or requirement under this ­article. (f)   Payments under this article shall be provided for a period not to exceed twenty-four (24) months, either consecutively or nonconsecutively, whether such payments are on account of arrears, continuing monthly assistance or any combination thereof, and shall not exceed the sum of sixty thousand ($60,000) dollars on behalf of any mortgagor. The agency shall establish procedures for periodic

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Ch. 26.1

Part VI Ch. 49–56 Taxation Part VII Ch. 57–63 Litigation Part VIII Ch. 64–67 L/T Part IX Ch. 68–72 Condos, etc. Index

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Part V Ch. 41–48A Zoning, etc.

331

Part IV Ch. 36–40 Insurance

19. 35 P.S. § 1680.404c. 20. 35 P.S. §§ 1680.401c, 1680.403c and 1680.404c. 21. 35 P.S. § 1680.405c.

Part III Ch. 23–35 Mortgages

§ 406c.  Repayment Upon approval of mortgage assistance, the agency shall enter into an agreement with the mortgagor for repayment of all mortgage assistance made by the agency plus interest as provided in paragraph (5). The agreement shall provide for monthly payments by the mortgagor and be subject to the following provisions: (1)   If the mortgagor’s total housing expense as defined in section 405-C21 is less than forty (40) percent of his or her net effective income, the mortgagor shall pay to the agency the difference between forty (40) percent of the mortgagor’s net effective income and the mortgagor’s total housing expense unless otherwise determined by the agency after examining the mortgagor’s financial circumstances and ability to contribute to repayment of the mortgage assistance. (2)   If the mortgagor’s total housing expense is more than forty (40) percent of his or her net effective income, repayment of the mortgage assistance shall

Part II Ch. 15–22 Deeds

(f.1)  The twenty-four (24) month limit on assistance available under this act established in subsection (f) and referenced in sections 401-C(a)(5), 403-C(f) and 404-C(a)(5) and (12)20 shall increase to thirty-six (36) months if during the month the homeowner submits an application for assistance the average rate of total unemployment in the Commonwealth, as seasonally adjusted, for the period consisting of the most recent three (3) months for which such data for the Commonwealth is published before the close of such month equals or exceeds six and one-half (6.5) percent. (f.2)   Every five (5) years, beginning in the year 2003, the General Assembly shall review the limit on the total assistance available under this act established in subsection (f) and the minimum monthly payment established in subsection (b). The General Assembly may increase either or both upon a showing that increases in housing costs require higher loan amounts in order for the act to be beneficial to homeowners in all regions of the Commonwealth. (g)  Repayment of amounts owed to the agency from a mortgagor shall be secured by a mortgage lien on the property and by such other obligation as the agency may require. The priority of any lien obtained by the agency under this article shall be determined in the same manner as the lien of a general secured creditor of the mortgagor. The lien or other security interest of the agency shall not be deemed to take priority over any other secured lien or secured interest in effect against the mortgagor’s property on the date assistance payments begin. The agency may allow subordination of the mortgage assistance lien if such subordination is necessary to permit the mortgagor to obtain a home improvement loan for repairs necessary to preserve the property. (h)   In cases of joint mortgagors who are husband and wife, where only one spouse who is an occupant of the mortgaged premises makes application for and receives assistance under this article, the lien to secure repayment as aforesaid shall be a lien on the property of like force and effect as a mechanic’s lien.

Part I Ch. 1–14 Brokers

review of the mortgagor’s financial circumstances for the purpose of determining the necessity for continuation, termination or adjustment of the amount of the payments. Payments shall be discontinued when the agency determines that, because of the changes in the mortgagor’s financial circumstances, the payments are no longer necessary in accordance with the standards set forth in section 404-C.19

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§ 407c HOUSING FINANCE AND SETTLEMENT be deferred until the mortgagor’s total housing expense is less than forty (40) percent of his or her net effective income: Provided, however, That beginning February 1, 1999, and continuing thereafter, any mortgagor who has received mortgage assistance shall pay to the agency a minimum monthly repayment of at least twenty-five ($25) dollars for each mortgage that was assisted. Such minimum monthly repayment shall not result in the accrual of interest on the mortgage assistance loan pursuant to paragraph (5). (2.1)   The forty (40) percent ratio established under paragraphs (1) and (2) shall be reduced to thirty-five (35) percent if during the month the homeowner submits an application for assistance the average rate of total unemployment in the Commonwealth, as seasonally adjusted, for the period consisting of the most recent three (3) months for which such data for the Commonwealth is published before the close of such month equals or exceeds six and one-half (6.5) percent. (3)   If repayment of mortgage assistance is not made by the date any mortgage is paid, the mortgagor shall make mortgage assistance repayments in an amount not less than the mortgage payment until the mortgage assistance is repaid. (4)   The agency shall establish procedures for periodic review of the mortgagor’s financial circumstances to determine the amounts of repayment required under this section. Notwithstanding any other provision of this section, the agency shall require full or partial repayment of the mortgage assistance loan once the mortgagor has established credit to the extent that there is sufficient equity in the property for the mortgagor to be able to refinance their mortgage obligations at reasonable rates and terms as determined by the agency. (5)  Interest shall accrue on all mortgage assistance made by the agency at a rate of interest to be determined by the agency prior to the end of each calendar year for loans closed in the next calendar year, which rate shall not exceed the interest rate established by the Department of Banking pursuant to section 30122 of the act of January 30, 1974 (P.L. 13, No. 6), referred to as the Loan Interest and Protection Law and referred to commonly as the Usury Law. Interest shall start to accrue whenever the mortgagor begins to make repayment under this section. Interest shall accrue only during the period in which the mortgagor is required to make repayment under this section. When any mortgage for which mortgage assistance was made is paid, interest shall then accrue on all mortgage assistance due and owing at the same rate and on the same basis as the mortgage for which the mortgage assistance was made. (6)  All moneys received from mortgagors for repayment of mortgage assistance shall be deposited in the State Homeowner’s Emergency Mortgage Assistance Fund established by the agency for the sole purpose of implementing the provisions of this article. § 407c.  Financial institutions A financial institution shall not be deemed to be in violation of any statute, regulation or rule of supervisory authorities by reason of any agreement, forbearance of modification of the payment or other terms of a mortgage as an effect of the assistance program or by reason of actions taken or not taken pursuant to the program. No mortgage loan as to which assistance payments are being made shall be deemed to be delinquent or classified as such by supervisory authorities during the continuance of such assistance payments. § 408c.  Homeowner’s emergency mortgage assistance fund The Homeowner’s Emergency Mortgage Assistance Fund is hereby created as a separate account within the agency for the sole purpose of implementing the

22. 41 P.S. § 301.

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Part IV Ch. 36–40 Insurance Part V Ch. 41–48A Zoning, etc. Part VI Ch. 49–56 Taxation Part VII Ch. 57–63 Litigation Part VIII Ch. 64–67 L/T Part IX Ch. 68–72 Condos, etc. Index

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333

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23. 35 P.S. § 1680.406d. 24. 35 P.S. § 1680.402d.

Part I Ch. 1–14 Brokers

provisions of this article. No other agency funds, moneys or interest earnings shall be utilized for the purposes of this article. Investment and interest earnings on moneys from this fund may be used by the agency for the administrative costs of the program. The Homeowner’s Emergency Mortgage Assistance Fund shall operate as a revolving loan fund to which shall be credited all repayment of principal and interest by mortgagors to the agency to repay loans provided by the agency pursuant to this article as well as grants or donations from other sources and any funds that may be appropriated by the General Assembly. § 409c.  Insufficient funds The provisions of this article shall not be applicable to any mortgage which becomes delinquent at any time when the agency has officially declared that it does not have money currently available in the Homeowner’s Emergency Mortgage Assistance Fund to approve applications for emergency mortgage assistance or to continue making assistance payments on behalf of mortgagors previously approved. The State Treasurer shall have the duty to advise the agency not less frequently than once each calendar quarter of the amount available for the purposes of this article. The agency shall be deemed to have insufficient money currently available in the Homeowner’s Emergency Mortgage Assistance Fund if at any time the money available in the fund is projected by the agency to be insufficient during the next sixty (60) days to pay out on new applications which have been or are expected (based at least on the previous twelve (12) month loan approval history) to be approved during said period and to continue making disbursements on behalf of mortgagors previously approved. In the event that the funds available to the agency in the Homeowner’s Emergency Mortgage Assistance Fund for purposes of this article become insufficient as officially declared by the executive director of the agency at least sixty (60) days prior to the funds being depleted, the agency shall immediately publish an announcement to that effect in the Pennsylvania Bulletin, which announcement shall include a date certain which shall be at least ninety (90) days after said announcement after which mortgagees shall no longer be subject to the provisions of this article and mortgagees may, at any time after the published date, take legal action to enforce the mortgage without any further restriction or requirement under this article. In the event that funds are replenished in sufficient amount by an appropriation or otherwise, the agency shall publish a similar notice, which shall be effective immediately, announcing that fact and mortgages shall again be subject to this article. § 410c.  [Repealed] § 411c.  [Repealed] § 412c.   Ongoing foreclosure study The agency shall monitor foreclosure activity and trends in this Commonwealth, using data and information accumulated from notices and applications for assistance processed under this article, and shall, as appropriate, provide recommendations for addressing any problems identified in this monitoring effort. 401d. Definitions The following words and phrases when used in this article shall have the meanings given to them in this section unless the context clearly indicates otherwise: “Fund.” The Housing Affordability and Rehabilitation Enhancement Fund established in section 406-D.23 “Persons with disabilities.” Individuals with physical, sensory or mental impairment that substantially limits one or more major life activities. “Program.” The Pennsylvania Housing Affordability and Rehabilitation Enhancement Program established in section 402-D.24 “Program funds.” The term shall include all allocations distributed to and

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§ 402d HOUSING FINANCE AND SETTLEMENT grants received by the Commonwealth from the United States Department of Housing and Urban Development pursuant to the Housing Trust Fund, established in section 1338 of the Housing and Economic Recovery Act of 2008 (Public Law 110-289, 122 Stat. 2654),25 and funds from sources other than the Commonwealth that are provided for the program established under this article. The term may also include funds specifically appropriated by the General Assembly for the program established under this article. 402d. Establishment There is established the Pennsylvania Housing Affordability and Rehabilitation Enhancement Program to be administered by the agency. The program shall be dependent on the availability of program funds. 403d. Program (a) Project types.—The program may provide funding for the following: (1) Projects to provide safe and sanitary dwellings for sale or rent to lowincome and moderate-income individuals or families. (2) Projects to increase the availability or quality of housing for elderly persons. (3) Projects to increase the availability or quality of accessible housing for persons with disabilities. (4) Projects to prevent or reduce homelessness. (5) Projects to encourage the development and rehabilitation of distressed neighborhoods. (6) Projects to provide mortgage or rental assistance, including housing counseling, foreclosure prevention and refinancing products. (7) Projects to provide loans, low-interest loans or grants to low-income and moderate-income individuals or families who are owner-occupants for repairs and improvement to sustain or increase the conditions of the home. (b) Purposes.—Money for projects under subsection (a) may be used for the following: (1) Predevelopment activities, including title searches, market studies, project planning, architectural services, legal and engineering studies and related fees. (2) Acquisition and disposition of real or personal property. (3) Site preparation, including demolition of existing structures and remediation of environmental conditions. (4) Construction, reconstruction, alteration and repair of existing structures, improvements and infrastructure. (c) Matching funds.—Program funds may be used for a set aside for matching funds for counties that have established optional county affordable housing funds under 53 Pa.C.S. Ch. 60 (relating to optional affordable housing funding). In order to receive matching funds under this subsection, a county must annually report detailed information as required by the agency on the use of the funds for county projects. The information shall be included in the agency’s report under section 405-D.26 (d) Limitation.—Program funds shall not supplant existing resources dedicated to affordable housing activities. Program funds may be used to support, expand and enhance other programs administered by the agency. (e) Preferences.—The agency may adopt written policies to give preference 25. 12 U.S.C.A. § 4568. 26. 35 P.S. § 1680.405d.

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Part IV Ch. 36–40 Insurance Part V Ch. 41–48A Zoning, etc. Part VI Ch. 49–56 Taxation Part VII Ch. 57–63 Litigation Part VIII Ch. 64–67 L/T Part IX Ch. 68–72 Condos, etc. Index

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335

Part II Ch. 15–22 Deeds

27. 12 U.S.C.A. § 4568. 28. 35 P.S. § 1680.406d.

Part I Ch. 1–14 Brokers

to projects that meet specific goals, such as energy efficiency, green building standards and comprehensive design strategies, or that target identified needs. (f) Considerations.—The agency shall take into consideration geographical distribution of program funds appropriated to the program to ensure that all areas of this Commonwealth participate to the greatest extent possible. (g) Funding for housing program.—The agency shall make available 30% of the program funds available under this article for housing programs benefiting households with household incomes which are less than 50% of the median area income. 404d. Plan (a) General rule.—Within 90 days of the effective date of this section and by March 15 of each year thereafter, the agency shall adopt a plan which establishes the agency’s priorities for that year and sets forth the method in which program funds will be distributed that year. (b) Publication.—The proposed plan, including a comment response document, shall be submitted to the chair and minority chair of the Urban Affairs and Housing Committee in the Senate and the chair and minority chair of the Commerce Committee in the House of Representatives, published in the Pennsylvania Bulletin and published on the agency’s Internet website for public comment no later than 45 days prior to its adoption under subsection (a). All comments submitted to the agency in writing shall be public records and shall be incorporated into the comment response document. 405d. Reporting Within 90 days following the close of the first calendar year after the effective date of this article and by July 1 of every year thereafter, the agency shall issue a report containing a financial statement, an itemized list of projects funded and a description of other expenditures in the preceding calendar year. The report shall be submitted to the Governor, the Auditor General and the chair and minority chair of the Urban Affairs and Housing Committee in the Senate and the chair and minority chair of the Commerce Committee in the House of Representatives and published on the agency’s Internet website. The report shall be a public record. 406d. Fund (a) Establishment.—There is established in the State Treasury the Housing Affordability and Rehabilitation Enhancement Fund. Interest and any other earnings in the fund shall remain in the fund. All program funds allocated or appropriated to the program shall be deposited in the fund. Program funds in the fund and the interest accruing thereon are hereby appropriated to the agency on a continuing basis to carry out the provisions of this article. (b) Federal allocations.—All allocations distributed to and grants received by this Commonwealth from the United States Department of Housing and Urban Development pursuant to the Housing Trust Fund, established in section 1338 of the Housing and Economic Recovery Act of 2008 (Public Law 110-289, 122 Stat. 2654),27 are deposited to the fund to be administered by the Pennsylvania Housing Finance Agency consistent with this article and applicable Federal law. (c) Repealed by 2019, June 28, P.L. 50, No. 13, § 35(2), effective July 1, 2019. 407d. Funding Implementation of this article shall be contingent upon sufficient program funds being deposited in the fund in accordance with section 406-D28 to carry out the purposes of this article. In a year in which Congress fails to approve

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§ 501

HOUSING FINANCE AND SETTLEMENT

Federal funds or there are insufficient program funds deposited into the fund for the purposes outlined in this article, the program shall cease until sufficient Federal funds are allocated to the Commonwealth, funds are specifically appropriated by the General Assembly or funds are provided by a source other than the Commonwealth. §§ 501 to 515.  Repealed by 1972, Dec. 5, P.L. 1259, No. 282, § 4, eff. Jan. 11, 1973 § 501a.  Issuance of bonds and notes (a)   The agency shall have the power and is hereby authorized from time to time by resolution of the members and subject to the written approval by the Governor to issue its negotiable bonds, either as serial bonds maturing in annual installments or as term bonds, or any combination thereof, and notes in such principal amount as, in the opinion of the agency, shall be necessary to provide sufficient funds for achieving its corporate purposes, including the housing programs established in Articles III-A and IV-A29 the payment of interest on bonds and notes of the agency, establishment of reserves to secure such bonds and notes, and all other expenditures of the agency incident to and necessary or convenient to carry out its corporate purposes and powers. The agency shall have the power, from time to time, by resolution of the members and subject to the written approval of the Governor to issue renewal notes, to issue bonds to pay notes and whenever it deems refunding expedient to refund any bonds by the issuance of new bonds, whether the bonds to be refunded have or have not matured, and to issue bonds partly to refund bonds then outstanding and partly for any other purpose. The refunding bonds shall be sold and the proceeds applied to the purchase, redemption or payment of the bonds to be refunded. The agency shall not have the power to issue bond anticipation notes, provided, however, that renewal bond anticipation notes may be issued for the sole purpose of redeeming any issue or portion of any issue of bond anticipation notes heretofore issued by the agency which have not been retired through the sale of bonds. (b)  The notes and bonds of the agency shall bear such date or dates, and shall mature at such time or times, in the case of any such note, or any renewals thereof, not exceeding five years from the date of issue of such original note, and in the case of any such bond not exceeding fifty years from the date of issue, as such resolution or resolutions may provide. The notes and bonds shall bear interest at such rate or rates, be in such denominations, be in such form, either coupon or registered, carry such registration privileges, contain such terms and provisions relating to, but not limited to, pledges of the agency’s assets, setting aside of reserves, limitations on additional notes and bonds, and such other matters as may affect the security or protection of the notes and bonds, be executed in such manner, be payable in such medium of payment, at such place or places and be subject to such terms of redemption as such resolution or resolutions may provide. The notes and bonds of the agency may be sold at public or private sale, at such price or prices as the agency shall determine. (c)  Neither the members of the agency nor any person executing the notes or bonds shall be liable personally on the notes or bonds or be subject to any personal liability or accountability by reason of the issuance thereof. (d)   The agency, subject to such agreement with noteholders or bondholders as may then exist, shall have power out of any funds available therefor to purchase its notes or bonds, which shall thereupon be cancelled, at a price not exceeding (i) if the notes or bonds are then redeemable, the redemption price then applicable plus accrued interest to the next interest payment date thereupon, or (ii) if the 29. 35 P.S. §§ 1680.301a, 1680.401a to 1680.404a.

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(2)   Counties of the second class.

P.S. P.S. P.S. P.S.

§ § § §

397.1 et seq. (repealed); see, 73 P.S. § 400.2701 et seq. 1680.401b et seq. 1680.401a et seq. 1680.402b.

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Index

337

Part IX Ch. 68–72 Condos, etc.

73 35 35 35

Part VIII Ch. 64–67 L/T

30. 31. 32. 33.

Part VII Ch. 57–63 Litigation

(4)  Any county or city housing authorities, redevelopment authorities or residential finance authorities within the jurisdiction of any of the above and with the approval of the incorporating municipality. (d)   A qualified entity authorized to issue bonds hereunder may use any part or all of its allocation hereunder by designating an authority in clause (4) of subsection (c) as its agent for a mortgage program. An election for local issuance may be made by any other municipality, upon recommendation of the agency and with the approval of the Governor, if the agency determines that local issuance will result in loans being made at rates significantly lower than those available from the agency, or will result in substantial reductions in administrative costs, or will allow more effective integration of State, Federal and local housing assistance programs, not available through cooperation with the agency. A municipality electing local issuance may issue amounts equal to the portion of the State ceiling allocated to the municipality by the agency and the Governor pursuant to section 402-B.33 If in the judgment of the agency, it will not issue bonds in the total amount available to it in any calendar year as prescribed in subsection (b),

Part VI Ch. 49–56 Taxation

(3)   Any other municipality which by itself or through an authority prior to January 1, 1981, issued mortgage subsidy bonds.

Part V Ch. 41–48A Zoning, etc.

(1)   Cities of the first, second and second class A and cities of the third class with a population of fifty thousand (50,000) or greater.

Part IV Ch. 36–40 Insurance

(c)  Qualified housing bonds may be locally issued by election of any of the following entities which may apply to the agency for the allocation of local authority for the purpose of issuing housing bonds subject to annual volume cap:

Part III Ch. 23–35 Mortgages

(b)   In determining the limitation on the aggregate amount of qualified housing bonds issued during any calendar year, which are eligible for exemption from Federal taxation under Federal law, the total State ceiling shall be completely allocated to the agency for its programs under Article IV.-B, except for amounts allocated to municipalities electing local issuance.

Part II Ch. 15–22 Deeds

§ 501a.1.  Qualified housing bonds (a)   The agency shall have the power and is hereby authorized from time to time by resolution of the members, and subject to the written approval by the Governor, to issue qualified housing bonds and notes, pursuant to the Mortgage Subsidy Bond Tax Act of 1980, and subsequent amendments, or any Federal tax legislation or program which authorizes Federal tax exemption for bonds issued to provide housing. The agency may issue such bonds or notes in such principal amounts, as permitted by Federal law and the act of December 20, 1985 (P.L. 483, No. 113), known as the “Tax-Exempt Bond Allocation Act,”30 and as are in the opinion of the agency, necessary to provide sufficient funds for the Owner Occupied Residential Mortgage Program authorized by Article IV-B31 and the Rental Housing Program authorized by Article IV-A.32 These bonds and notes shall be issued, to the extent permitted by Federal law, in conformity with all other provisions of Article V-A.

Part I Ch. 1–14 Brokers

notes or bonds are not then redeemable, the redemption price applicable on the first date after such purchase upon which the notes or bonds become subject to redemption plus accrued interest to such date.

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§ 502a HOUSING FINANCE AND SETTLEMENT any excess availability within the State ceiling may be reallocated by resolution adopted by the agency board to any of the entities authorized to issue mortgage bonds under this act. § 502a.  Credit of Commonwealth or any subdivision thereof not pledged Except as may otherwise be expressly provided by the agency, its bonds and notes shall be general obligations of the agency payable out of any moneys or revenues of the agency, including the proceeds of mortgage loans made under this act, reserve funds created therefor by the agency, any mortgage insurance contracts pertaining thereto and other lawfully available money, subject only to any agreements with holders of the bonds or notes pledging any receipts or revenues. Bonds and notes issued under the provisions of this act shall not be deemed to constitute a debt of the Commonwealth or of any political subdivision thereof or a pledge of the faith and credit of the Commonwealth or of any such political subdivision. All such bonds and notes shall contain on the face thereof a statement to the effect that neither the agency nor the Commonwealth nor any political subdivision thereof shall be obligated to pay the same or the interest thereon except from such proceeds, reserve fund or mortgage insurance contracts and that neither the faith and credit nor the taxing power of the Commonwealth or any political subdivision thereof is pledged to the payment of the principal of or the interest on such bonds. § 503a.  Funds and accounts The agency shall create such funds and accounts as may be necessary or desirable for its corporate purposes and shall pay into each such fund or account any moneys appropriated and made available by the Commonwealth for the purposes of such fund or account. Nothing contained herein shall be construed as prohibiting the agency from creating within any fund one or more accounts which may be used or pledged by the agency for a specific purpose. § 504a.  Reserve funds and appropriations (a)   The agency may create and establish one or more special funds, herein referred to as “capital reserve funds,” and shall pay into each such capital reserve fund (i) any moneys appropriated and made available by the Commonwealth for the purpose of such fund, (ii) any proceeds of sale of notes or bonds to the extent provided in the resolution or resolutions of the agency authorizing the issuance thereof, and (iii) any other moneys which may be available to the agency for the purpose of such fund from any other source or sources. All moneys held in any capital reserve fund, except as hereinafter provided, shall be used, as required, solely for the payment of the principal of bonds secured in whole or in part by such fund or of the sinking fund payments with respect to such bonds, the purchase or redemption of such bonds, the payment of interest on such bonds or the payment of any redemption premium required to be paid when such bonds are redeemed prior to maturity. Moneys in any such fund shall not be withdrawn therefrom at any time in such amount as would reduce the amount of such fund to less than the minimum capital reserve fund requirement established for such fund, as hereinafter provided, except for the purpose of making, with respect to bonds secured in whole or in part by such fund, payment when due, of principal, interest, redemption premiums and the sinking fund payments with respect to such bonds for the payment of which other moneys of the agency are not available. Any income or interest earned by, or increments to, any capital reserve fund due to the investment thereof may be transferred by the agency to other funds or accounts of the agency to the extent it does not reduce the amount of that capital reserve fund below the minimum capital reserve fund requirement for such fund. (b)   The agency shall not at any time issue bonds, secured in whole or in part by a capital reserve fund; if upon the issuance of such bonds, the amount in such capital reserve fund will be less than the minimum capital reserve fund require-

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Ch. 26.1

Part IV Ch. 36–40 Insurance Part V Ch. 41–48A Zoning, etc. Part VI Ch. 49–56 Taxation Part VII Ch. 57–63 Litigation Part VIII Ch. 64–67 L/T Part IX Ch. 68–72 Condos, etc. Index

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Part III Ch. 23–35 Mortgages

339

Part II Ch. 15–22 Deeds

§ 505a.  Trust agreement In the discretion of the agency, bonds and notes issued by it shall be secured by a trust agreement by and between the agency and a trustee, which may be any trust company or bank within the Commonwealth having the powers of a trust

Part I Ch. 1–14 Brokers

ment for such fund, unless the agency at the time of issuance of such bonds, shall deposit in such fund from the proceeds of the bonds to be issued, or from other sources, an amount which, together with the amount then in such fund, will not be less than the minimum capital reserve fund requirement for such fund. For the purposes of this section, the term “minimum capital reserve fund requirement” shall mean, as of any particular date of computation, an amount of money, as provided in the resolution or resolutions of the agency authorizing the bonds with respect to which such fund is established. In no event, however, shall such capital reserve fund requirement exceed an amount equal to not more than the greatest of the respective amounts, for the current or any future fiscal year of the agency, of annual debt service on the bonds of the agency secured in whole or in part by such fund, such annual debt service for any fiscal year being the amount of money equal to the aggregate of all interest and principal payable on such bonds during such fiscal year, calculated on the assumption that all such bonds are paid at maturity or if any amount of such bonds is required to be redeemed on any earlier date by operation of a sinking fund, then on the assumption that such amount of bonds is redeemed on such earlier date and that such amount is considered principal payable on such bonds during the year they are to be redeemed for purposes of this calculation. (c)   To assure the continued operation and solvency of the agency, for the carrying out of its corporate purposes, provision is made in subsection (a) for the accumulation in each capital reserve fund of an amount equal to the minimum capital reserve fund requirement for such fund. In order further to assure the maintenance of such capital reserve funds, the agency, at least thirty days before the beginning of each legislative session, shall submit to the Governor and the General Assembly a written statement of the obligations of the agency falling due within the succeeding twelve month period and of the manner in which the agency anticipates providing for such obligations by way of payment, extension, renewal or otherwise and an estimate of the funds, if any, expected to be necessary during the following year to restore to each such capital reserve fund any deficiencies in the minimum capital reserve fund requirement for such fund or otherwise to avoid default in the payment of interest or principal upon bonds or notes issued by the agency, or in sinking fund payments required to be made, and the Governor shall cause the amount of such moneys, if any, to be placed in the budget of the Commonwealth for the next succeeding fiscal year, so that the General Assembly shall be enabled to provide appropriations sufficient to restore any such deficiencies or otherwise to avoid any default. Such appropriations, if any, shall be repaid to the Commonwealth as soon as possible by the agency from moneys of the agency in excess of the amount required to make and keep the agency self-supporting. (d)   In computing the amount of any capital reserve fund for the purposes of this section, securities in which all or a portion of such fund are invested shall be valued at par if purchased at par, or if purchased at other than par, at amortized value, which when used with respect to securities purchased at a premium above or a discount below par, shall mean the value as of any given date obtained by dividing the total amount of the premium or discount at which such securities were purchased by the number of days remaining to maturity on such securities at the time of such purchase and by multiplying the amount so calculated by the number of days having passed since the date of such purchase; and (i) in the case of securities purchased at a premium, by deducting the product thus obtained from the purchase price, and (ii) in the case of securities purchased at a discount, by adding the product thus obtained to the purchase price.

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§ 506a HOUSING FINANCE AND SETTLEMENT company. Either the resolution providing for the issuance of bonds and notes or such trust agreement may contain such provisions for protecting and enforcing the rights and remedies of the bondholders as may be reasonable and proper and not in violation of law, including covenants setting forth the duties of the agency in relation to the custody, safeguarding and application of all moneys. It shall be lawful for any bank or trust company incorporated under the laws of the Commonwealth to act as depository of the proceeds of bonds and notes or of revenues and to furnish such indemnifying bonds or to pledge such securities as may be required by the agency. Such trust agreement may set forth the rights and remedies of the bondholders and noteholders and of the trustee, and may restrict the individual right of action by bondholders and noteholders. In addition to the foregoing, such trust agreement may contain such other provision as the agency may deem reasonable and proper for the security of the bondholders and noteholders. All expenses incurred in carrying out the provisions of such trust agreement may be treated as a part of the cost of the operation of the agency. § 506a.  Bonds and notes tax exempt The creation of the agency is in all respects for the benefit of the people of the Commonwealth and for the improvement of their health, safety, welfare, comfort and security, and its purposes are public purposes and the agency will be performing an essential governmental function. The Commonwealth covenants with the purchasers and all subsequent holders and transferees of the notes and bonds issued by the agency, in consideration of the acceptance of any payment for the notes and bonds, that the notes and bonds of the agency, issued pursuant to this act and the income therefrom, the income and revenues of the agency, and the agency and its property shall at all times be free from taxation or assessment of every kind and nature except for inheritance, estate, gift and transfer taxes. § 507a.  Notes and bonds as legal investments The notes and bonds of the agency are securities in which all public officers and bodies of the Commonwealth and all municipalities and municipal subdivisions, all insurance companies and associations, and other persons carrying on an insurance business, all banks, trust companies, savings banks and savings associations, saving and loan associations, investment companies, all administrators, guardians, executors, trustees and other fiduciaries, and all other persons whatsoever who are now or may hereafter be authorized to invest in bonds or other obligations of the Commonwealth, may properly and legally invest funds, including capital, in their control or belonging to them. § 508a.  Covenant by Commonwealth not to limit or alter powers vested in agency The Commonwealth of Pennsylvania does hereby pledge to and covenant and agree with the holders of any bonds, bond anticipation notes or other obligations issued pursuant to the authority of this act that the Commonwealth will not limit or alter the rights or powers hereby vested in the agency to perform and fulfill the terms of any agreement made with the holders of such bonds, bond anticipation notes or other obligations, or in any way impair the rights or remedies of such holders, until such bonds, bond anticipation notes and other obligations, together with interest thereon, with interest on any unpaid installments of interest, and all costs and expenses in connection with any action or proceedings by or in behalf of such holders, are fully met and discharged or provided for. The agency may include this pledge and agreement of the Commonwealth in any agreement with the holders of bonds, bond anticipation notes and other obligations issued by the agency.

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Ch. 26.2

§ 601a.  Liberal construction This act, being necessary for the welfare of the Commonwealth and its inhabitants, shall be liberally construed to effect the purposes thereof.

§ 603a.  Effective date; proclamation

Part VI Ch. 49–56 Taxation

35 PS § 1681.1 – § 1681.7

Sec.

Part VII Ch. 57–63 Litigation

§ 1681.1 Short title § 1681.2. Definitions § 1681.3. Homeowner Assistance Settlement Fund § 1681.4. Initial allocation § 1681.5. Effect of noncompliance with notice requirements in the Homeowner’s Emergency Mortgage Assistance Program § 1681.6. Severability § 1681.7. Applicability

Index

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Part IX Ch. 68–72 Condos, etc.

§ 1681.2.  Definitions The following words and phrases when used in this act shall have the meanings given to them in this section unless the context clearly indicates otherwise: “Fund.” The Homeowner Assistance Settlement Fund established in section

Part VIII Ch. 64–67 L/T

§ 1681.1.  Short title This act shall be known and may be cited as the Homeowner Assistance Settlement Act.

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Part V Ch. 41–48A Zoning, etc.

CHAPTER 26.2 HOMEOWNER ASSISTANCE SETTLEMENT ACT

Part IV Ch. 36–40 Insurance

This act shall become effective when the Governor by proclamation declares that sufficient funds are available to administer this act. For the purposes of this determination and then thereafter, in addition to any appropriations as are made to the agency, the Commonwealth is authorized to accept for the account of the agency grants-in-aid, donations and gifts of every manner and type from the Federal Government or from any other private or public corporation or person. Upon such declaration, such funds as have been collected shall immediately be paid to the treasurer of the agency, or if a treasurer has not been appointed, to such other person as the Governor may designate as acting treasurer.

Part III Ch. 23–35 Mortgages

Any person who attempts to or obtains financial aid for a project hereunder or occupancy or continual occupancy of a dwelling unit therein by false or misleading information or who shall violate this act or who shall by fraud attempt to obtain moneys from the agency or its approval for the payment of moneys or shall fraudulently attempt to or does prevent the collection of any moneys due to the agency shall, for each offense, be guilty of a misdemeanor, and, upon conviction thereof, shall be sentenced to pay a fine not exceeding three hundred dollars ($300) or undergo imprisonment not exceeding one year, or both.

Part II Ch. 15–22 Deeds

§ 602a.  Fraud penalty

Part I Ch. 1–14 Brokers

§§ 601 to 603.  Repealed by 1972, Dec. 5, P.L. 1259, No. 282, § 4, eff. Jan. 11, 1973

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§ 1681.3 HOUSING FINANCE AND SETTLEMENT 3(a).34 “Homeowner Assistance Settlement Agreement.” The settlement agreement and related documents entered into on February 9, 2012, by the Attorney General of the Commonwealth and the leading United States mortgage servicing companies. “Homeowner’s Emergency Mortgage Assistance Program.” The program administered by the Pennsylvania Housing Finance Agency and established under Article IV-C of the act of December 3, 1959 (P.L. 1688, No. 621),35 known as the Housing Finance Agency Law. § 1681.3.  Homeowner Assistance Settlement Fund (a) Establishment.—There is established a special fund known as the Homeowner Assistance Settlement Fund. All payments received by the Commonwealth pursuant to the Homeowner Assistance Settlement Agreement shall be deposited by the Treasury Department into the fund and are hereby appropriated on a continuing basis. (b) Allocation of funds.—The moneys in the fund shall be allocated each fiscal year no later than July 1 until all settlement funds are expended, subject to the following limitations: (1) Ninety percent shall be allocated to the Pennsylvania Housing Finance Agency for the purpose of funding the Homeowner’s Emergency Mortgage Assistance Program. (2) Five percent shall be allocated to the Office of Attorney General for the purpose of funding housing consumer protection programs. (3) Five percent shall be allocated to the Access to Justice Account established under 42 Pa.C.S. § 4904 (relating to establishment of Access to Justice Account) for civil legal assistance related to housing issues. (c) Limitation on annual allocation.—The annual allocation of funds under subsection (b) shall not exceed $12,000,000 annually, except that in fiscal year 2012-2013 the amount shall not exceed $18,000,000. § 1681.4.  Initial allocation In addition to any allocation under section 3, [FN1] the sum of $6,000,000 is hereby allocated from the fund for fiscal year 2012-2013 to the Pennsylvania Housing Finance Agency for the Homeowner’s Emergency Mortgage Assistance Program. 1681.5.  Effect of noncompliance with notice requirements in the Homeowner’s Emergency Mortgage Assistance Program The following provisions shall apply relating to the Homeowner’s Emergency Mortgage Assistance Program: (1) If there has been a failure to comply with the notice requirements of sections 402-C and 403-C of the act of December 3, 1959 (P.L. 1688, No. 621), [FN1] known as the Housing Finance Agency Law, and such failure has been properly raised in a legal action, including an action in foreclosure, for money due under the mortgage obligation or to take possession of the mortgagor’s security, the court may dismiss the action without prejudice, order the service of a corrected notice during the action, impose a stay on any action or impose other appropriate remedies in the action to address the interests, if any, of the mortgagor who has been prejudiced thereby.

34. 35 P.S. § 1681.3. 35. 35 P.S. § 1680.401c et seq.

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Part I Ch. 1–14 Brokers Part II Ch. 15–22 Deeds Part III Ch. 23–35 Mortgages Part IV Ch. 36–40 Insurance

(2) The failure of a mortgagee to comply with the requirements of sections 402-C and 403-C of the Housing Finance Agency Law must be raised in a legal action before the earlier delivery of a sheriff’s or marshal’s deed in the foreclosure action or delivery of a deed by the mortgagor. (3) The failure of a mortgagee to comply with the requirements of sections 402-C and 403-C of the Housing Finance Agency Law shall not deprive a court of jurisdiction over any legal action, including an action in foreclosure, for money due under the mortgage obligation or to take possession of the mortgagor’s security. (4) The failure of a mortgagee to comply with the requirements of sections 402-C and 403-C of the Housing Finance Agency Law shall not impair the conveyance or other transfer of land and the title of property subject to a mortgage obligation covered under the Housing Finance Agency Law. [FN1] 35 P.S. §§ 1680.402c, 1680.403c. 1681.6.  Severability The provisions of this act shall be severable. If any provision shall be held to be invalid, illegal or otherwise unenforceable, the validity, legality and enforceability of the remaining provisions shall not be affected or impaired thereby. § 1681.7.  Applicability The provisions of section 536 shall apply retroactively to June 5, 1999.

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Part V Ch. 41–48A Zoning, etc. Part VI Ch. 49–56 Taxation Part VII Ch. 57–63 Litigation Part VIII Ch. 64–67 L/T Part IX Ch. 68–72 Condos, etc.

36. 35 P.S. § 1681.5.

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CHAPTER 27 MORTGAGE LOAN INDUSTRY LICENSING AND CONSUMER PROTECTION 7 Pa.C.S. §§ 6101–6154

Subch. A. B. C. D. E.

Preliminary Provisions License Requirements and Exceptions Mortgage Loan Business Restrictions and Requirements Administrative and Licensure Provisions Miscellaneous Provisions

SUBCHAPTER A PRELIMINARY PROVISIONS Sec.

6101. Scope and short title. 6102. Definitions.

SUBCHAPTER B LICENSE REQUIREMENTS AND EXCEPTIONS Sec.

6111. License requirements. 6112. Exceptions to license requirements.

SUBCHAPTER C MORTGAGE LOAN BUSINESS RESTRICTIONS AND REQUIREMENTS Sec.

6121. 6122. 6123. 6124. 6125. 6126.

General requirements. Powers conferred on certain licensees engaged in the mortgage loan business. Mortgage loan business prohibitions. Prohibited clauses in mortgage loan documents. Mortgage lending authority. Requirements as to open-end loans

SUBCHAPTER D ADMINISTRATIVE AND LICENSURE PROVISIONS Sec.

6131. Application for license. 6131.1. Prelicensing and continuing education. 6132. License fees. 6133. Issuance of license. 6134. License duration. 6135. Licensee requirements. 6136. Licensee limitations. 6137. Surrender of license. 6138. Authority of department. 6139. Suspension, revocation or refusal. 6140. Penalties. 6141. Mortgage servicers.

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Part I Ch. 1–14 Brokers

SUBCHAPTER E MISCELLANEOUS PROVISIONS Sec.

Part II Ch. 15–22 Deeds

6151. Applicability. 6152. Relationship to other laws. 6153. Preservation of existing contracts. 6154. Procedure for determination of noncompliance with Federal law (Repealed).

Part III Ch. 23–35 Mortgages

SUBCHAPTER A PRELIMINARY PROVISIONS Sec.

6101. Scope and short title. 6102. Definitions.

Part V Ch. 41–48A Zoning, etc. Part VI Ch. 49–56 Taxation Part VII Ch. 57–63 Litigation Part VIII Ch. 64–67 L/T Part IX Ch. 68–72 Condos, etc. Index

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Part IV Ch. 36–40 Insurance

§ 6101.   Scope and short title. (a)  Scope.—This chapter relates to mortgage loan industry licensing and consumer protection. This chapter does not apply to a banking institution or federally chartered or State-chartered credit union, if the primary regulator of the banking institution or federally or State-chartered credit union supervises the banking institution or federally or State-chartered credit union. (b)  Short title.—This chapter shall be known and may be cited as the Mortgage Licensing Act. § 6102.  Definitions. The following words and phrases when used in this chapter shall have the meanings given to them in this section unless the context clearly indicates otherwise: “Administrative or clerical tasks.” The receipt, collection and distribution of information common for the processing, servicing or underwriting of a mortgage loan and communication with a consumer to obtain information necessary for the processing, servicing or underwriting of a mortgage loan. “Advance fee.” Any funds requested by or to be paid to a person in advance of or during the processing of a mortgage loan application, excluding those fees paid by a consumer directly to a credit agency reporting bureau, title company or real estate appraiser. “Applicant.” A person who applies for a license under this chapter. “Application.” A request, in any form, for an offer, or a response to a solicitation of an offer, of mortgage loan terms, and the information about the borrower or prospective borrower that is customary or necessary in a decision on whether to make such an offer. “Banking institution.” Any of the following: (1)   A State-chartered bank, bank and trust company, savings bank or private bank. (2)   A national bank. (3)   A federally chartered or State-chartered savings association. (4)   A subsidiary of any of the entities listed under this definition. “Billing cycle.” In respect to open-end mortgage loans, the time interval between periodic billing dates as established by the mortgage note and subsequent

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§ 6102

MORTGAGE LOAN INDUSTRY LICENSING

modification to the obligation. A billing cycle shall be considered to be a monthly cycle if the closing date of the cycle is the same date each month or does not vary by more than four days from that date. “Bona fide nonprofit organization.” A person that: (1)   Has the status of a tax-exempt organization under section 501(c)(3) of the Internal Revenue Code of 1986 (Public Law 99-514, 26 U.S.C. § 501(c)(3)). (2)   Promotes affordable housing or provides homeownership education, or similar services. (3)  Conducts its activities in a manner that serves public or charitable purposes. (4)   Receives funding and revenue and charges fees in a manner that does not incentivize it or its employees to act other than in the best interests of its clients. (5)   Compensates its employees in a manner that does not incentivize employees to act other than in the best interests of its clients. (6)   Provides or identifies for the borrower mortgage loans with terms favorable to the borrower and comparable to mortgage loans and housing assistance provided under government housing assistance programs. (7)   Meets other standards as determined by the department. “Branch.” An office or other place of business, other than the principal place of business, where a person engages in the mortgage loan business subject to this chapter. The term does not include a location where the licensee-sponsored mortgage originator contacts consumers or processes mortgage loans, provided that the location is not: (1)   owned or controlled by a licensee. For purposes of this definition, a location is not considered to be owned or controlled by a licensee if the location is under the control of a subsidiary or affiliate of the licensee, is primarily used by the subsidiary or affiliate and is only used by the licensee on an incidental basis for the convenience of a consumer; (2)   advertised or represented to consumers as an operating location of the mortgage originator or the mortgage originator’s sponsor; or (3)   a place where records regarding the licensee’s mortgage loan business are stored. “Branch manager.” The supervisor of a branch. “Clerical or support duties.” Any of the following: (1)   The receipt, collection, distribution and analysis of information common for the processing, servicing or underwriting of a mortgage loan. (2)  Communicating with a consumer to obtain the information necessary for the processing, servicing or underwriting of a mortgage loan, to the extent that the communication does not include: (i)   offering or negotiating mortgage loan rates or terms; (ii)   counseling consumers about mortgage loan rates or terms; or (iii)   offering or negotiating mortgage servicing terms. “Commercial context.” Acting for the purpose of obtaining anything of value for an individual, or for an entity or individual for which the individual acts, rather than exclusively for public, charitable or family purposes. “Commission.” The Banking and Securities Commission of the Commonwealth, as established under Subarticle C of Article XI-A of the act of May 15, 1933 (P.L.565, No.111), known as the Department of Banking and Securities Code. “Consumer discount company.” A licensee under the act of April 8, 1937 (P.L.262, No.66), known as the Consumer Discount Company Act.

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Ch. 27

“Dwelling.” As defined in section 103(v) of the Truth in Lending Act (Public Law 90-321, 15 U.S.C. § 1602(v)). “Employee.”

Part II Ch. 15–22 Deeds

“Department.” The Department of Banking and Securities of the Commonwealth.

Part I Ch. 1–14 Brokers

“Delinquent.” The date when an amount sufficient to cover a periodic payment of principal, interest and, if applicable, escrow becomes due and unpaid, and lasts until the time no periodic payment is due and unpaid, notwithstanding if the borrower is afforded a period after the due date to pay before the servicer assesses a late fee.

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(1)  An individual:

(ii)   Whose compensation for Federal income tax purposes is reported or required to be reported on a W-2 form issued by the controlling person.

“Federal banking agency.” Any of the following: (1)   The Board of Governors of the Federal Reserve System.

Part IV Ch. 36–40 Insurance

(2)  The term includes such binding definition as may be issued by the Federal banking agencies in connection with their implementation of their responsibilities under the S.A.F.E. Mortgage Licensing Act of 2008 (110 Stat. 289, 12 U.S.C. § 5101 et seq.).

Part III Ch. 23–35 Mortgages

(i)   Whose manner and means of performance of work are subject to the right of control of or are controlled by a person.

(2)   The Office of the Comptroller of the Currency. (4)   The Federal Deposit Insurance Corporation. (5)   (Deleted by amendment).

“First mortgage loan.” A loan which is: (1)   made primarily for personal, family or household use; and (2)   secured by any first lien mortgage, deed of trust or equivalent consensual security interest on a dwelling or on residential real estate.

“Habitually and repeatedly.” Engaging in any activity at least four times in a calendar year. “Holder.” As defined in 12 Pa.C.S. § 6202 (relating to definitions). “Installment sales contract.” As defined in section 3(10) of the act of June 28, 1947 (P.L.1110, No.476), known as the Motor Vehicle Sales Finance Act. “Installment seller.” As defined in 12 Pa.C.S. § 6202 (relating to definitions). (1)   A deferred purchase of a dwelling or residential real estate whereby: (i)   An individual makes installment payments to the seller of the dwelling or residential real estate. (ii)   The seller retains title to the dwelling or residential real estate until some or all of the installment payments are completed.

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Index

(2)   The term does not include an agreement whereby:

Part IX Ch. 68–72 Condos, etc.

“Lease-purchase agreement.”

Part VIII Ch. 64–67 L/T

“Immediate family.” A parent, spouse, child, brother or sister.

Part VII Ch. 57–63 Litigation

“First mortgage loan business.” The mortgage loan business as applied to first mortgage loans.

Part VI Ch. 49–56 Taxation

“Finder’s fee.” Any payment of money or other consideration for the referral of a mortgage loan to a licensee, except for consideration paid for goods or facilities actually furnished or services actually performed.

Part V Ch. 41–48A Zoning, etc.

(3)   The National Credit Union Administration.

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§ 6102

MORTGAGE LOAN INDUSTRY LICENSING

(i)   An individual is not obligated to purchase the dwelling or residential real estate. (ii)   The final payment approximates the fair value of the dwelling or residential real estate or the anticipated fair value of the dwelling or residential real estate and is not a nominal amount. “Licensee.” A person who is licensed under this chapter. “Loan processor or underwriter.” An individual who performs clerical or support duties. “Lock-in agreement.” An agreement between a mortgage lender and a consumer whereby the mortgage lender guarantees, until a specified date, the availability of a specified rate of interest or specified formula by which the rate of interest and a specific number of discount points will be determined, if the mortgage loan is approved and closed by the specified date. If a specified date is not determinable, the mortgage lender may fulfill the requirement of this definition by setting forth with specificity the method by which the duration of the lock-in period will be determined. “Loss mitigation option.” An alternative to foreclosure offered by the owner, holder or assignee of a delinquent mortgage loan that is made available through the servicer to the borrower. “Manufactured home.” Both of the following: (1)   A manufactured home as defined in section 603(6) of the National Manufactured Housing Construction and Safety Standards Act of 1974 (Public Law 93-383, 42 U.S.C. § 5402(6)). (2)   A mobile home as defined in 75 Pa.C.S. § 102 (relating to definitions). “Mortgage broker.” A person who engages in the mortgage loan business by directly or indirectly negotiating or placing mortgage loans for others in the primary market for consideration. “Mortgage lender.” A person who engages in the mortgage loan business by directly or indirectly originating and closing mortgage loans with its own funds in the primary market for consideration. “Mortgage loan.” A first or secondary mortgage loan, or both, a lease-purchase agreement or a mortgage loan modification, as the context may require. “Mortgage loan business.” The business of: (1)   advertising, causing to be advertised, soliciting, negotiating or arranging in the ordinary course of business or offering to make or making mortgage loans; or (2)   servicing mortgage loans. “Mortgage loan correspondent.” A person who engages in the mortgage loan business by directly or indirectly originating and closing mortgage loans in his or her own name utilizing funds provided by a wholesale table funder or other funding sources under the circumstances described under section 6123(a)(6) (relating to mortgage loan business prohibitions) and simultaneously assigning the mortgage loans to the wholesale table funder. “Mortgage loan modification.” An agreement that revises the terms of an existing mortgage loan, including an agreement to reduce mortgage loan payment amounts, balance or interest rate or to waive any accrued or prospective mortgage loan charges. The term does not include any agreement to refinance a mortgage loan into a new mortgage loan. “Mortgage originator.” (1)   An individual who, in a commercial context and habitually and repeatedly, does any of the following:

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(i)   Takes a mortgage loan application.

(2)   The term does not include any of the following:

(ii)   An individual who performs only clerical or support duties and meets any of the following requirements: (A)   Who does so at the direction of and subject to the supervision and instruction of an individual who: (II)   Is not required to be licensed in accordance with section 6112(9) (relating to exceptions to license requirements).

(iii)  An individual who performs only purely administrative or clerical tasks on behalf of a mortgage originator. (iv)   An individual who is a registered mortgage loan originator.

(viii)   A loan processor or underwriter employed by a licensee or person exempt or excepted from licensure under this chapter, provided that the loan processor or underwriter:

(B)   Acts as a loan processor or underwriter solely for the individual’s employer. (C)  Does not represent to the public, through advertising or other means of communicating or providing information, including the use of business cards, stationery, brochures, signs, rate lists or other promotional

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349

Part IX Ch. 68–72 Condos, etc.

(A)   Is under the direct supervision and control of a licensed mortgage originator or registered mortgage loan originator.

Part VIII Ch. 64–67 L/T

(vii)   An individual employed by a licensee or person exempt or excepted from licensure under this chapter who solely engages in mortgage loan modifications for existing mortgage loans held or serviced by that licensee or person and who does not otherwise act as a mortgage originator.

Part VII Ch. 57–63 Litigation

(vi)   An individual who is employed by a bona fide nonprofit organization who acts as a mortgage originator within the scope of employment.

Part VI Ch. 49–56 Taxation

(v)   An individual employed by an agency or instrumentality of the Federal Government or a corporation otherwise created by an act of the Congress of the United States or an agency or instrumentality of a state or local government, the District of Columbia or any territory of the United States, including the Pennsylvania Housing Finance Agency and other government housing finance agencies, who acts as a mortgage originator within the scope of employment.

Part V Ch. 41–48A Zoning, etc.

(B)  Who performs such duties solely with respect to transactions for which the individual who acts as a mortgage originator is not required to be licensed, in accordance with subparagraph (i), (v) or (vi).

Part IV Ch. 36–40 Insurance

(I)   Is licensed and registered in accordance with this chapter.

Part III Ch. 23–35 Mortgages

(i)   An individual who is involved only in extensions of credit relating to timeshare plans, as that term is defined in 11 U.S.C. § 101(53D) (relating to definitions).

Part II Ch. 15–22 Deeds

(iii)   Represents to the public, through advertising or other means of communicating or providing information, including the use of business cards, stationery, brochures, signs, rate lists or other promotional items, that the individual can or will perform the activities described in subparagraphs (i) and (ii).

Part I Ch. 1–14 Brokers

(ii)  Offers or negotiates terms of a mortgage loan for compensation or gain.

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items, that the person can or will perform any of the activities of a mortgage originator. (ix)   An individual who is all of the following: (A)   An employee of a broker-dealer registered under section 301 of the act of December 5, 1972 (P.L.1280, No.284), known as the Pennsylvania Securities Act of 1972. (B)   Registered as a securities agent under section 301 of the Pennsylvania Securities Act of 1972. (C)   Engaged in recommending, referring or steering a borrower or prospective borrower in the manner provided under paragraph (1)(iii) of the definition of “offer or negotiate terms of a mortgage loan for compensation or gain” to a banking institution, licensed mortgage lender, licensed mortgage loan correspondent, licensed mortgage broker or person exempt from licensing in a manner incidental to and in the normal course of his or her securities brokerage activities. (D)   Not otherwise acting as a mortgage originator as defined in paragraph (1)(i), (ii) or (iii). (E)   Not in receipt of any compensation or gain for such activities from the person making or brokering the loan, or a borrower or prospective borrower. (x)   An individual who is all of the following: (A)   An employee of an insurance agency licensed under the act of May 17, 1921 (P.L.789, No.285), known as The Insurance Department Act of 1921. (B)   Registered as an insurance agent or broker under The Insurance Department Act of 1921. (C)   Engaged in recommending, referring or steering a borrower or prospective borrower in the manner provided under paragraph (1)(iii) of the definition of “offer or negotiate terms of a mortgage loan for compensation or gain” to a banking institution, licensed mortgage lender, licensed mortgage loan correspondent, licensed mortgage broker or person exempt from licensing in a manner incidental to and in the normal course of his or her insurance activities. (D)   Not otherwise acting as a mortgage originator as defined in paragraph (1)(i), (ii) or (iii). (E)   Not in receipt of any compensation or gain for such activities from the person making or brokering the loan, or a borrower or prospective borrower. “Mortgage servicer.” A person who engages in the mortgage loan business by directly or indirectly servicing a mortgage loan. “Nationwide Mortgage Licensing System and Registry.” The licensing system developed and maintained by the Conference of State Bank Supervisors and the American Association of Residential Mortgage Regulators. “Net worth.” Assets less liabilities and assets unacceptable to the United States Department of Housing and Urban Development for purposes of complying with 24 CFR § 202.5(n) (relating to general approval standards) or 202.8(b)(1) (relating to loan correspondent lenders and mortgagees), as applicable. “Nonoriginating person.” A person, other than an individual, that does not engage in the mortgage loan business but is required to have loan processors or underwriters employed or supervised and controlled by the person licensed as mortgage originators.

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Part III Ch. 23–35 Mortgages Part IV Ch. 36–40 Insurance Part V Ch. 41–48A Zoning, etc. Part VI Ch. 49–56 Taxation Part VII Ch. 57–63 Litigation Part VIII Ch. 64–67 L/T Part IX Ch. 68–72 Condos, etc. Index

gtb-parealestate22-all.indb 351

Part II Ch. 15–22 Deeds

351

Part I Ch. 1–14 Brokers

“Nontraditional mortgage loan.” A mortgage loan other than a 30-year fixed rate mortgage loan. “Offer or negotiate terms of a mortgage loan for compensation or gain.” (1)(i)  Presenting for consideration by a borrower or prospective borrower particular mortgage loan terms; (ii)   communicating directly or indirectly with a borrower or prospective borrower for the purpose of reaching a mutual understanding about prospective mortgage loan terms; or (iii)   recommending, referring or steering a borrower or prospective borrower to a particular lender or set of mortgage loan terms, in accordance with a duty to or incentive from any person other than the borrower or prospective borrower. (2)   Receiving or expecting to receive payment of money or anything of value in connection with the activities described in paragraph (1) or as a result of any mortgage loan terms entered into as a result of those activities. “Open-end loan.” A mortgage loan made by a mortgage lender under this chapter pursuant to an agreement between the mortgage lender and the consumer whereby all of the following apply: (1)  The mortgage lender may permit the consumer to obtain advances of money from the licensee from time to time or the mortgage lender may advance money on behalf of the consumer from time to time as directed by the consumer. (2)   The amount of each advance, interest and permitted charges and costs are debited to the consumer’s account and payments and other credits are credited to the same account. (3)   Interest is computed on the unpaid principal balance or balances of the account outstanding from time to time. (4)  The consumer has the privilege of paying the account in full at any time or, if the account is not in default, in monthly installments of fixed or determinable amounts as provided in the open-end loan agreement. “Person.” An individual, association, joint venture or joint-stock company, partnership, limited partnership, limited partnership association, limited liability company, business corporation, nonprofit corporation or any other group of individuals, however organized. “Primary market.” The market wherein mortgage loans are originated between a lender and a consumer. “Principal place of business.” The primary office of a person at which the person’s books, records, accounts and documents are maintained. “Purchase-money mortgage loan.” A mortgage loan that is a residential mortgage transaction as defined in 12 CFR 226.2(a)(24) (relating to definitions and rules of construction). “Qualifying individual.” An individual identified by a mortgage broker, mortgage lender, mortgage servicer or mortgage loan correspondent in the Nationwide Mortgage Licensing System and Registry who: (1)   Is a mortgage originator or meets the licensing requirements of a mortgage originator. (2)  Is a management-level officer assigned to the principal place of business of a mortgage broker, mortgage lender, mortgage servicer or mortgage loan correspondent. “Registered mortgage loan originator.” An individual who complies with all of the following paragraphs:

Table of Contents

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§ 6111

MORTGAGE LOAN INDUSTRY LICENSING

(1)   Meets the definition of mortgage originator and is an employee of: (i)   a banking institution or federally chartered or State-chartered credit union; (ii)   a subsidiary owned and controlled by a federally chartered or Statechartered credit union and supervised by a Federal banking agency; or (iii)   an institution regulated by the Farm Credit Administration. (2)  Is registered with and maintains a unique identifier through the Nationwide Mortgage Licensing System and Registry. “Residential real estate.” Real property upon which is constructed or intended to be constructed a dwelling. “Secondary mortgage loan.” A loan which is: (1)   made primarily for personal, family or household use; and (2)  secured by any secondary lien mortgage, deed of trust or equivalent consensual security interest on a dwelling or on residential real estate. “Secondary mortgage loan business.” The mortgage loan business as applied to secondary mortgage loans. “Service mortgage loan.” A collecting or remitting payment or the right to collect or remit payments of principal, interest, tax, insurance or other payment under a mortgage loan. “Single point of contact.” An individual or team of personnel, each of whom has the ability and authority to discuss mortgage loan mitigation options with a borrower on behalf of a mortgage servicer. The mortgage servicer shall ensure that each member of the team is knowledgeable about the borrower’s situation and current status. “Take a mortgage loan application.” Receiving a mortgage loan application for the purpose of facilitating a decision whether to extend an offer of mortgage loan terms to a borrower or prospective borrower or to accept the terms offered by a borrower or prospective borrower in response to a solicitation, whether the application is received directly or indirectly from the borrower or prospective borrower. “Tangible net worth.” (Deleted by amendment). “Unique identifier.” A number or other identifier assigned by the Nationwide Mortgage Licensing System and Registry. “Wholesale table funder.” A licensed mortgage lender or person exempt under section 6112(1) or (7) (relating to exceptions to license requirements) who, in the regular course of business, provides the funding for the closing of mortgage loans through mortgage loan correspondents and who by assignment obtains title to the mortgage loans.

SUBCHAPTER B LICENSE REQUIREMENTS AND EXCEPTIONS Sec.

6111. 6112.

License requirements. Exceptions to license requirements.

§ 6111.   License requirements (a)  General rule.—Except as provided under subsections (b) and (c) and section 6112 (relating to exceptions to license requirements), on and after the effective date of this section, no person shall engage in the mortgage loan business in this Commonwealth without being licensed as a mortgage broker, mortgage lender, mortgage servicer, mortgage loan correspondent or mortgage origina-

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Part IV Ch. 36–40 Insurance Part V Ch. 41–48A Zoning, etc. Part VI Ch. 49–56 Taxation Part VII Ch. 57–63 Litigation Part VIII Ch. 64–67 L/T Part IX Ch. 68–72 Condos, etc. Index

gtb-parealestate22-all.indb 353

Part III Ch. 23–35 Mortgages

353

Part II Ch. 15–22 Deeds

§ 6112.   Exceptions to license requirements. The following persons shall not be required to be licensed under this chapter in order to conduct the mortgage loan business: (1)   A banking institution or a federally chartered or State-chartered credit union, if the primary regulator of the banking institution or federally chartered or State-chartered credit union supervises the banking institution or federally chartered or State-chartered credit union. A banking institution or a federally chartered or State-chartered credit union may register with the department for the purpose of having individuals under its direct supervision and control licensed as mortgage originators, provided that the registered entity meet any of the following requirements: (i)   In the same manner as a mortgage lender, obtains and maintains bond coverage for mortgage originators consistent with section 6131(c)(5) (relating to application for license) and files a periodic report consistent with section 6135(a)(3) (relating to licensee requirements). (ii)   Annually, in a form acceptable to the department, demonstrates to the department that all of the mortgage originators employed by or under the direct supervision and control of the entity have obtained and maintained the bond coverage required under section 6131(f)(4). (2)   An attorney at law not otherwise engaged in or holding himself or herself out to the public as being engaged in the mortgage loan business who acts as a mortgage broker or a mortgage originator in negotiating or placing a mortgage loan in the normal course of legal practice. The exception under this paragraph shall not apply if the attorney is compensated by any of the following: (i)   A mortgage broker. (ii)   A mortgage lender. (iii)   A mortgage loan correspondent. (iv)   A person excepted from licensure under this section. (v)   A mortgage originator.

Part I Ch. 1–14 Brokers

tor as provided under this chapter. A mortgage originator may not engage in the mortgage loan business unless the mortgage originator is sponsored in the Nationwide Mortgage Licensing System and Registry by a licensed mortgage broker, mortgage lender, mortgage servicer or mortgage loan correspondent, person excepted from this chapter or person excepted from licensure under section 6112 and is under the direct supervision and control of the sponsoring licensee or excepted person. (b)   Licensed activity exceptions.— (1)   A mortgage lender may: (i)   Act as a mortgage broker or mortgage loan correspondent without a separate mortgage broker or mortgage loan correspondent license. (ii)   Act as a mortgage servicer without a separate mortgage servicer license for mortgage loans the mortgage lender has originated, negotiated and owns. (2)   A mortgage loan correspondent may act as a mortgage broker without a separate mortgage broker license. (3)   A person licensed as a mortgage broker may only perform the services of a mortgage broker. (4)  A person only licensed as a mortgage servicer may only perform the services of a mortgage servicer. (c)   Loans for business or commercial purposes.—This chapter shall not apply to mortgage loans made for business or commercial purposes.

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§ 6112

MORTGAGE LOAN INDUSTRY LICENSING

(v.1)   A mortgage servicer. (vi)  An agent of a person listed in subparagraphs (i), (ii), (iii), (iv), (v) and (v.1). (3)   A person who originates, services or negotiates less than four mortgage loans in a calendar year, unless determined to be engaged in the mortgage loan business by the department. (4)   Any agency or instrumentality of the Federal Government or a corporation otherwise created by an act of the United States Congress, including the Federal National Mortgage Association, the Government National Mortgage Association, the Veterans’ Administration, the Federal Home Loan Mortgage Corporation and the Federal Housing Administration, and employees thereof acting within the scope of their employment. (5)   Any agency or instrumentality of a state or local government, the District of Columbia or any territory of the United States, including the Pennsylvania Housing Finance Agency and other government housing finance agencies, and employees thereof acting within the scope of their employment. (6)  Consumer discount companies, except that a consumer discount company that acts as a mortgage broker, mortgage lender, mortgage servicer or mortgage loan correspondent, shall be subject to the provisions of Subchapter C (relating to mortgage loan business restrictions and requirements) and sections 6131(c)(2), (3) and (5), 6135, 6138 (relating to authority of department) and 6140(b) (relating to penalties). Employees or individuals under the direct supervision and control of licensees under the act of April 8, 1937 (P.L.262, No.66), known as the Consumer Discount Company Act, that act as mortgage originators shall be subject to the licensing requirements of this chapter. Consumer discount companies that employ or directly supervise and control mortgage originators shall be subject to the same requirements as mortgage lenders in regard to the employment and supervision of mortgage originators. (7)   Affiliates of banking institutions and subsidiaries and affiliates of federally chartered or State-chartered credit unions. The exception under this paragraph does not apply to consumer discount companies. Notwithstanding the exception under this paragraph, subsidiaries and affiliates of federally chartered or State-chartered credit unions and affiliates of banking institutions shall: (i)  be subject to the provisions of sections 6121(1), (2), (3), (4), (5), (6), (7), (8), (9), (10), (11), (12), (13) and (14) (relating to general requirements), 6122(a) and (b) (relating to powers conferred on certain licensees engaged in the mortgage loan business), 6123(a) (relating to mortgage loan business prohibitions), 6124 (relating to prohibited clauses in mortgage loan documents), 6125 (relating to mortgage lending authority), 6126 (relating to requirements as to open-end loans), 6135(a)(2), (3) and (4), (b) and (c), 6138 and 6140(b); (ii)  deliver as required to the department annually copies of financial reports made to all supervisory agencies; (iii)   be registered with the department; (iv)   in the same manner as a mortgage lender, obtain and maintain bond coverage for mortgage originators consistent with section 6131(c)(5); and (v)   ensure employees required to be licensed as mortgage originators have completed the requirements under section 6131.1 (relating to prelicensing and continuing education) and have obtained the required mortgage originator license. (8)   Employees or individuals under the direct supervision and control of a mortgage broker, mortgage lender, mortgage servicer or mortgage loan correspondent, or a person excepted from licensure under this section, who are not otherwise required to be licensed as mortgage originators.

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(10)   (Deleted by amendment). (11)   A bona fide nonprofit organization and employees of the organization acting within the scope of their employment, unless otherwise deemed to be engaged in the mortgage loan business by the department, provided that:

(ii)   The organization shall be registered with the department.

(v)   The department shall make the list of bona fide nonprofit organizations available on its Internet website. (12)   (Deleted by amendment).

(ii)   Be registered with the department. (iii)   Do either of the following:

(14)  A nonoriginating person, unless otherwise deemed to be engaged in the mortgage loan business by the department, except that the nonoriginating person shall:

355

gtb-parealestate22-all.indb 355

Index

(i)   Be subject to the provisions of Subchapter C and sections 6135(a)(2), (3) and (4) and (c), 6138 and 6140(b).

Part IX Ch. 68–72 Condos, etc.

(iv)  Ensure employees or individuals under the direct supervision and control of the installment seller or holder required to be licensed as mortgage originators have completed the requirements under section 6131.1 and have obtained the required mortgage originator license.

Part VIII Ch. 64–67 L/T

(B)   Annually demonstrate to the department that the mortgage originators employed by or under the direct supervision and control of the installment seller or holder have obtained and maintained the bond coverage required by section 6131(f)(4) in a form acceptable to the department.

Part VII Ch. 57–63 Litigation

(A)   In the same manner as a mortgage lender or mortgage broker, as applicable depending upon whether the installment seller or holder makes or brokers installment sales contracts secured by manufactured homes that are purchase-money mortgage loans, obtain and maintain bond coverage for mortgage originators consistent with section 6131(c)(5) or (e)(3) and file a periodic report consistent with section 6135(a)(3); or

Part VI Ch. 49–56 Taxation

(i)   Obtain a license as a mortgage originator, if licensed as an individual under 12 Pa.C.S. Ch. 62.

Part V Ch. 41–48A Zoning, etc.

(13)  An installment seller of, or holder of installment sales contracts secured by, manufactured homes who is licensed under 12 Pa.C.S. Ch. 62 (relating to motor vehicle sales finance), provided the installment seller or holder only engages in the mortgage loan business regarding installment sales contracts secured by manufactured homes that are purchase-money mortgage loans. To qualify for the exception under this paragraph, the installment seller or holder must:

Part IV Ch. 36–40 Insurance

(iv)  For residential mortgage loans to have terms that are favorable to the borrower, the department must determine that the terms are consistent with loan origination in a public or charitable context, rather than a commercial context.

Part III Ch. 23–35 Mortgages

(iii)   As required under 24 CFR § 3400.103(e)(7)(iii) (relating to individuals required to be licensed by states), the department must periodically examine the books and activities of an organization it determines is a bona fide nonprofit organization and revoke its status as a bona fide nonprofit organization if it does not continue to meet the criteria under 24 CFR § 3400.103(e)(7)(ii).

Part II Ch. 15–22 Deeds

(i)  The organization shall be subject to the provisions of Subchapter C and sections 6135(a)(2), (3) and (4) and (c), 6138 and 6140(b).

Part I Ch. 1–14 Brokers

(9)  Registered mortgage loan originators when acting on behalf of their employers.

Table of Contents

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§ 6121

MORTGAGE LOAN INDUSTRY LICENSING

(ii)   Be registered with the department. (iii)   In the same manner as a mortgage broker, obtain and maintain bond coverage for mortgage originators consistent with section 6131(c)(5). (iv)  Ensure employees or individuals under the direct supervision and control of the person required to be licensed as mortgage originators have completed the requirements under section 6131.1 and have obtained the required mortgage originator license. (15)  Notwithstanding section 6151 (relating to applicability), a mortgage originator licensed by one or more other states and physically located in this Commonwealth that does not engage in any transactions involving Pennsylvania consumers, dwellings or residential real estate. (16)   A person who engages in mortgage loan modifications for existing mortgage loans held or serviced by that person or that person’s employer and who does not otherwise engage in the mortgage loan business. (17)  An individual or entity licensed under the act of September 2, 1965 (P.L.490, No.249), referred to as the Money Transmission Business Licensing Law, if the individual or entity only engages in the mortgage loan business to the extent funds are transmitted from a mortgagor to make mortgage payments on behalf of the mortgagor in order to exceed regularly scheduled minimum payment obligations under the terms of the indebtedness.

SUBCHAPTER C MORTGAGE LOAN BUSINESS RESTRICTIONS AND REQUIREMENTS Sec.

6121. 6122. 6123. 6124. 6125. 6126.

General requirements. Powers conferred on certain licensees engaged in the mortgage loan business. Mortgage loan business prohibitions. Prohibited clauses in mortgage loan documents. Mortgage lending authority. Requirements as to open-end loans.

§ 6121.   General requirements. A licensee shall do all of the following: (1)   Comply with all provisions of the act of January 30, 1974 (P.L.13, No.6), referred to as the Loan Interest and Protection Law (Usury Law). This paragraph shall not supersede section 501 of the Depository Institutions Deregulation and Monetary Control Act of 1980 (94 Stat. 161, 12 U.S.C. § 1735f-7a) or the Alternative Mortgage Transaction Parity Act of 1982 (96 Stat. 1545, 12 U.S.C. §§ 3801-3806 et seq.). (2)  Comply with all applicable State law, including the provisions of the act of December 3, 1959 (P.L.1688, No.621), known as the Housing Finance Agency Law, that are applicable to the licensee and the act of December 9, 2002 (P.L.1530, No.197), known as the Mortgage Satisfaction Act. (3)   Comply with all applicable Federal law, including the Real Estate Settlement Procedures Act (88 Stat. 1724, 12 U.S.C. §§ 2601 et seq.), the Truth in Lending Act (82 Stat. 146, 15 U.S.C. §§ 1601 et seq.) and the Equal Credit Opportunity Act (88 Stat. 1521, 15 U.S.C. §§ 1691 et seq.). (4)   Give to the consumer a copy of the promissory note evidencing the mortgage loan and any mortgage loan agreement, mortgage instrument or other document evidencing a mortgage loan signed by the consumer.

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(8)   If a mortgage loan is paid in full and, in the case of an open-end loan, the mortgage lender is no longer obligated to make future advances to the consumer, the mortgage lender shall do all of the following:

(9)   Provide for periodic accounting of any escrow accounts held by the mortgage lender to the consumer not less than annually, showing the amounts received from the consumer and the amounts disbursed from the accounts.

(ii)   The interest rate locked in, if any. (iii)   The discount points locked in, if any. (iv)   The fee locked in, if any. (v)   The lock-in fee, if any.

gtb-parealestate22-all.indb 357

Index

357

Part IX Ch. 68–72 Condos, etc.

(i)   The expiration date of the lock-in, if any.

Part VIII Ch. 64–67 L/T

(11)   Ensure that all lock-in agreements shall be in writing and shall contain at least the following provisions:

Part VII Ch. 57–63 Litigation

(10)   Refund all fees, other than those fees paid by the licensee to a third party, paid by a consumer when a mortgage loan is not produced within the time specified by the mortgage broker, mortgage lender or mortgage loan correspondent at the rate, term and overall cost agreed to by the consumer. This paragraph shall not apply if the failure to produce a mortgage loan is due solely to the consumer’s negligence, his or her refusal to accept and close on a loan commitment or his or her refusal or inability to provide information necessary for processing, including employment verifications and verifications of deposits. The licensee shall disclose to the consumer, in writing, at the time of a loan application which fees paid or to be paid are nonrefundable.

Part VI Ch. 49–56 Taxation

(iii)   Release any lien on the dwelling or residential real estate and cancel the same of record and, at the time the mortgage loan agreement or promissory note evidencing the mortgage loan is returned, deliver to the consumer good and sufficient assignments, releases or any other certificate, instrument or document as may be necessary to evidence the release.

Part V Ch. 41–48A Zoning, etc.

(ii)   Stamp or write on the face of the mortgage loan agreement or promissory note evidencing the mortgage loan “Paid in Full” or “Canceled,” the date paid and, within 60 days, return the mortgage loan agreement or promissory note to the consumer.

Part IV Ch. 36–40 Insurance

(i)   Cancel any insurance provided by the licensee in connection with the mortgage loan and refund to the consumer, in accordance with regulations promulgated by the Insurance Department, any unearned portion of the premium for the insurance.

Part III Ch. 23–35 Mortgages

(7)  Upon written request from the consumer, give or forward to the consumer within ten days from the date of receipt of the request a written statement of the consumer’s account which shall show the dates and amounts of all installment payments credited to the consumer’s account, the dates, amounts and an explanation of all other charges or credits to the account and the unpaid balance of the account. A licensee shall not be required to furnish more than two statements in any 12-month period.

Part II Ch. 15–22 Deeds

(6)  If a payment is made in cash on account of a mortgage loan, give to the consumer at the time the payment is actually received a written receipt which shall show the account number or other identification mark or symbol, date, amount paid and, upon request of the consumer, the unpaid balance of the account prior to and after the cash payment.

Part I Ch. 1–14 Brokers

(5)   Give to the consumer written evidence of credit life, credit accident and health, credit unemployment and property insurance, if any, provided by the licensee to the consumer.

Table of Contents

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§ 6122

MORTGAGE LOAN INDUSTRY LICENSING

(12)  Upon written request from the consumer or a person authorized by the consumer, provide, within ten days from the date of receipt of the request, a written statement regarding the unpaid balance of a consumer’s mortgage loan or account. The statement shall contain the total amount required to pay off a mortgage loan and a specific expiration date for the payoff information. A licensee shall not be required to furnish more than two statements in any 12-month period. (13) In the case of a mortgage broker, mortgage lender or mortgage loan correspondent, do all of the following: (i)   Maintain supervision and control of and responsibility for the acts and omissions of all mortgage originators sponsored by the licensee. (ii)   Maintain a list of all current and former mortgage originators sponsored by the licensee and the dates of the sponsorship. (iii)   In the event that a licensee believes that a mortgage originator sponsored by the licensee has engaged in any activity that is illegal or in violation of this chapter or any regulation or statement of policy promulgated under this chapter, the licensee shall provide the department with written notification of the belief and the licensee’s proposed corrective measures within 30 days. A licensee shall not be liable to a mortgage originator in connection with the notification. (14)   In the case of a mortgage originator, clearly display the mortgage originator’s unique identifier on all mortgage loan application forms and personal solicitations or advertisements, including business cards. (15)   For a mortgage servicer, if a mortgage loan is paid in full and, in the case of an open-end mortgage, a mortgage lender is no longer obligated to make future advances to the consumer, the mortgage servicer shall act in good faith to do all of the following: (i)   Request the mortgage holder release the lien on the dwelling or residential real estate and cancel the same of record and, at the time the mortgage loan agreement or promissory note evidencing the mortgage loan is returned, deliver to the consumer good and sufficient assignment, releases or other certificate, instrument or document as may be necessary to evidence the release. (ii)   Request the mortgage holder cancel any insurance provided in connection with the mortgage loan and refund to the borrower, in accordance with regulations promulgated by the Insurance Department, any unearned portion of the premium for the insurance. (iii)   If a mortgage holder has delegated the responsibility to record satisfaction of security instruments to a mortgage servicer, the mortgage servicer shall be treated as a mortgage holder for purposes of satisfying the conditions of subparagraph (i) or (ii). § 6122.  Powers conferred on certain licensees engaged in the mortgage loan business. (a)  Mortgage lenders.—If they are in compliance with the provisions of this chapter, mortgage lenders shall have the power and authority: (1)   To make first and secondary mortgage loans and, subject to the limitations of this chapter, to charge and collect interest, origination fees and delinquency charges for the loans. (2)   To collect fees or premiums for title examination, abstract of title, title insurance, credit reports, surveys, appraisals, notaries, postage, including messenger and express carrier, tax service or other costs or fees actually related to the processing of a mortgage loan application or making of a mortgage loan, when the fees are actually paid or incurred by the licensee and to collect fees or

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Part III Ch. 23–35 Mortgages Part IV Ch. 36–40 Insurance Part V Ch. 41–48A Zoning, etc. Part VI Ch. 49–56 Taxation Part VII Ch. 57–63 Litigation Part VIII Ch. 64–67 L/T Part IX Ch. 68–72 Condos, etc. Index

gtb-parealestate22-all.indb 359

Part II Ch. 15–22 Deeds

359

Part I Ch. 1–14 Brokers

charges prescribed by law which actually are or will be paid to public officials for determining the existence of or for perfecting or releasing or satisfying any security related to the mortgage loan and include these in the principal of the mortgage loan. (3)  To provide access to credit life, credit disability, credit accident and health and credit unemployment insurance. A consumer shall not be compelled to purchase credit life, credit disability, credit accident and health or credit unemployment insurance as a condition of the making of a mortgage loan, and all contracts utilized shall reflect a clear disclosure that the purchase of credit life, credit disability, credit accident and health or credit unemployment insurance is not a prerequisite to obtaining a mortgage loan. If, however, the consumer elects to obtain credit life, credit disability, credit accident and health or credit unemployment insurance through the licensee, the consumer shall consent thereto in writing. If consumers desire joint-life or joint accident and health insurance, all consumers shall consent thereto in writing. The insurance shall be obtained from an insurance company authorized by the laws of this Commonwealth to conduct business in this Commonwealth. Any benefit or return to the licensee from the sale or provision of the insurance shall not be included in the computation of the maximum charge authorized for mortgage loans under this chapter and shall not be deemed a violation of this chapter when the insurance is written pursuant to the laws of this Commonwealth governing insurance. (4)  To require property insurance on security against reasonable risks of loss, damage and destruction and to provide access to the insurance to the consumer. The amount and term of the insurance shall be reasonable in relation to the amount and term of the mortgage loan contract and the value of the security. This requirement shall be satisfied if the consumer demonstrates at the time the mortgage loan is made that the consumer has valid and collectible insurance covering the property to be insured and has furnished the licensee with a loss payable endorsement sufficient for the protection of the licensee. If the consumer elects to obtain property insurance through the licensee, the consumer shall consent thereto in writing, and the insurance shall be obtained from an insurance company authorized by the laws of this Commonwealth to conduct business in this Commonwealth. Any benefit or return to the licensee from the sale or provision of property insurance shall not be included in the computation of the maximum charge authorized for mortgage loans under this chapter and shall not be deemed a violation of this chapter when the insurance is written pursuant to the laws of this Commonwealth governing insurance. The premium for any property insurance may be included in the principal amount of the mortgage loan requested by the consumer. However, the premium shall be disclosed as a separate item on the face of the principal contract document and the licensee’s individual consumer ledger records. (5)   To collect a fee for a subsequent dishonored check or instrument taken in payment, not to exceed the service charge permitted to be imposed under 18 Pa.C.S. § 4105 (relating to bad checks). (6)   To collect reasonable attorney fees of an attorney at law upon the execution of the mortgage loan if the fees: (i)   represent actual fees charged the licensee in connection with the mortgage loan; and (ii)   are evidenced by a statement for services rendered addressed to the licensee; and (iii)   are included in the principal of the mortgage loan. (7)   To collect reasonable attorney fees of an attorney at law in the collection of a delinquent mortgage loan and to collect court costs incurred in the collection of the mortgage loan.

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§ 6123

MORTGAGE LOAN INDUSTRY LICENSING

(8)   To service first and secondary mortgage loans that are originated, negotiated and owned by the mortgage lender. (b)   Mortgage brokers and loan correspondents.—Provided they are in compliance with the provisions of this chapter, mortgage brokers and mortgage loan correspondents shall have the power and authority: (1)  To collect title examination, credit report and appraisal fees actually related to the making of a mortgage loan when the fees are actually paid or incurred by the licensee and to include the fees in the principal of the mortgage loan which is being negotiated or arranged. (2)   To charge a broker’s fee if the fee is disclosed to the consumer for whom the loan is being negotiated or arranged. (3)   To accept from a licensee a fee or premium for brokering or cobrokering a mortgage loan, provided that the payment and acceptance of the fee or premium is in compliance with Federal law, including the Real Estate Settlement Procedures Act of 1974 (Public Law 93-533, 88 Stat. 1724). (c)  Mortgage servicers.—If a mortgage servicer is in compliance with this chapter, the mortgage servicer shall have the power and authority to collect and remit for a lender, mortgagee, note owner, note holder, trustee or primary beneficiary of a residential mortgage loan payment of principal, interest or an amount to be placed into escrow for any combination of the payment of insurance, hazard insurance or taxes. § 6123.   Mortgage loan business prohibitions. (a)  Mortgage loan business prohibitions.—A licensee engaging in the mortgage loan business shall not: (1)  Charge, contract for, collect or receive charges, fees, premiums, commissions or other considerations in excess of the limitations of those contained in this chapter. (2)   Disburse the proceeds of a mortgage loan in any form other than cash, electronic funds transfer, certified check or cashier’s check where the proceeds are disbursed by the licensee to a closing agent. This paragraph shall not be construed as requiring a lender to utilize a closing agent and shall not apply to disbursements by check directly from the licensee’s account payable to the consumer, consumer designees or other parties due funds from the closing. (3)  Advertise, cause to be advertised or otherwise solicit whether orally, in writing, by telecast, by broadcast or in any other manner any statement or representation which is false, misleading or deceptive. (4)   Require a consumer to pay, to the licensee or any other person, a broker’s fee, finder’s fee, commission, premium or any other charges for obtaining, procuring or placing of a mortgage loan, except as provided under this chapter. This restriction shall not prohibit a mortgage lender from paying a fee to a mortgage broker in connection with the placement or procurement of a mortgage loan nor prohibit a consumer from requesting or directing a mortgage lender licensee to pay a fee from the proceeds of a mortgage loan or include it in the amount to be financed. (5)   Make any mortgage loan on the condition, agreement or understanding that the consumer contract with any specific person or organization for insurance services as agent, broker or underwriter. (6)  In the case of a mortgage loan correspondent, service mortgage loans or close mortgage loans utilizing funding other than a wholesale table funder, except in an emergency circumstance where wholesale table funding is not available. (7)  In the case of a mortgage broker or mortgage originator, commit to close or close mortgage loans in its own name, service mortgage loans, enter

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Part V Ch. 41–48A Zoning, etc. Part VI Ch. 49–56 Taxation Part VII Ch. 57–63 Litigation Part VIII Ch. 64–67 L/T Part IX Ch. 68–72 Condos, etc. Index

gtb-parealestate22-all.indb 361

Part IV Ch. 36–40 Insurance

361

Part III Ch. 23–35 Mortgages

§ 6125.   Mortgage lending authority. (a)   First mortgage loans.—Mortgage lenders engaged in the first mortgage loan business may make first mortgage loans pursuant to: (1)   the act of January 30, 1974 (P.L.13, No.6), referred to as the Loan Interest and Protection Law; or (2)   if the licensee is qualified, applicable Federal law, including the Alternative Mortgage Transaction Parity Act of 1982 (96 Stat. 1545, 12 U.S.C. § 3801 et seq.) and section 501 of the Depository Institution Deregulation and Monetary Control Act of 1980 (94 Stat. 161, 12 U.S.C. § 1735f-7a). (b)   Secondary mortgage loans.—Mortgage lenders engaged in the secondary mortgage loan business may: (1)  if the licensee is qualified, make secondary mortgage loans on terms as are permissible under applicable Federal law, including the Alternative Mortgage Transaction Parity Act of 1982; or (2)  (i)  make secondary mortgage loans repayable in installments and charge, contract for and receive thereon interest at a rate not exceeding 1.85% per month. No interest shall be paid, deducted or received in advance, except that interest from the date of disbursement of funds to the consumer to the first

Part II Ch. 15–22 Deeds

§ 6124.   Prohibited clauses in mortgage loan documents. No writing of any kind executed in connection with a mortgage loan shall contain: (1)   An agreement whereby the consumer waives any rights accruing to the consumer under the provisions of this chapter. (2)  An irrevocable wage assignment of, or order for the payment of, any salary, wages, commissions or any other compensation for services, or any part thereof, earned or to be earned. (3)   An agreement to pay any amount other than the unpaid balance of the mortgage loan agreement or promissory note or any other charge authorized by this chapter.

Part I Ch. 1–14 Brokers

into lock-in agreements or collect lock-in fees or be or designate the exclusive recipient of notices or other communications sent from a lender or servicer to a consumer, provided, however, that a mortgage broker or mortgage originator can provide a lender’s lock-in agreement to a consumer on behalf of that lender and collect lock-in fees payable to that lender on the lender’s behalf. (8)   In the case of a mortgage originator, accept any fees from consumers in the mortgage originator’s own name. A mortgage originator may accept fees payable to the mortgage originator’s sponsoring licensee and fees payable to third-party entities on behalf of the mortgage originator’s sponsoring licensee. A mortgage originator may not accept advance fees payable to the mortgage originator’s sponsoring licensee unless the licensee is authorized to collect advance fees under this chapter. (9)   In the case of a mortgage originator, engage in the mortgage loan business other than on behalf of the single mortgage broker, mortgage lender or mortgage loan correspondent or a person excepted from this chapter or a person excepted from licensure under section 6112 (relating to exceptions to license requirements) that sponsors the mortgage originator. (b)  Mortgage loan servicer prohibitions.—A licensee engaging in the mortgage servicer business shall not fail to establish or attempt to establish a single point of contact with whom a borrower can communicate about foreclosure matters or loss mitigation options later than the 36th day of a borrower’s delinquency, unless contact is inconsistent with applicable bankruptcy law or court order.

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§ 6126

MORTGAGE LOAN INDUSTRY LICENSING

day of the following month shall be permitted in the event the first installment payment is more than 30 days after the date of disbursement. Interest shall not be compounded and shall be computed only on unpaid principal balances. However, the inclusion of earned interest in a new note shall not be considered compounding. For the purpose of computing interest, a month shall be any period of 30 consecutive days; (ii)   charge and collect an origination fee not exceeding 3% of the original principal amount of the secondary mortgage loan. The fee shall be fully earned at the time the secondary mortgage loan is made and may be added to the principal amount of the secondary mortgage loan. No origination fee may be collected on subsequent advances made pursuant to an open-end loan if the full fee of 3% of the credit limit was collected at the time the open-end loan was made; and (iii)   charge and collect a delinquency charge of $20 or 10% of each payment, whichever is greater, for a payment which is more than 15 days late. § 6126.   Requirements as to open-end loans. The following shall apply: (1)   A mortgage lender may make open-end loans and may contract for and receive thereon interest and charges as set forth under this chapter. (2)   A mortgage lender shall not compound interest by adding any unpaid interest authorized by this section to the unpaid principal balance of the consumer’s account, provided, however, that the unpaid principal balance may include the additional charges authorized by this subchapter. (3) Interest authorized by this section shall be deemed not to exceed the maximum interest permitted by this subchapter if the interest is computed in each billing cycle by any of the following methods: (i)  by converting the monthly rate to a daily rate and multiplying the daily rate by the applicable portion of the daily unpaid principal balance of the account, in which case the daily rate shall be 1/30 of the monthly rate; (ii)   by multiplying the monthly rate by the applicable portion of the average monthly unpaid principal balance of the account in the billing cycle, in which case the average daily unpaid principal balance is the sum of the amount unpaid each day during the cycle divided by the number of days in the cycle; or (iii)   by converting the monthly rate to a daily rate and multiplying the daily rate by the average daily unpaid principal balance of the account in the billing cycle, in which case the daily rate shall be 1/30 of the monthly rate. (4)   For all of the methods of computation in paragraph (3)(i), (ii) and (iii), the billing cycle shall be monthly, and the unpaid principal balance on any day shall be determined by adding to any balance unpaid as of the beginning of that day all advances and other permissible amounts charged to the consumer and deducting all payments and other credits made or received that day. (5)   The consumer may at any time pay all or any part of the unpaid balance in the consumer’s account without prepayment penalty or, if the account is not in default, the consumer may pay the unpaid principal balance in monthly installments. Minimum monthly payment requirements shall be determined by the licensee and set forth in the agreement evidencing the open-end loan. (6)  A mortgage lender may contract for and receive the fees, costs and expenses permitted by this subchapter on other first or secondary mortgage loans, subject to all the conditions and restrictions set forth in this subchapter, with the following variations: (i)   If credit life or disability insurance is provided and if the insured dies or becomes disabled when there is an outstanding open-end loan indebted-

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Part VII Ch. 57–63 Litigation

Sec.

Part VIII Ch. 64–67 L/T

6131. Application for license. 6131.1. Prelicensing and continuing education. 6132. License fees. 6133. Issuance of license. 6134. License duration. 6135. Licensee requirements. 6136. Licensee limitations. 6137. Surrender of license. 6138. Authority of department. 6139. Suspension, revocation or refusal. 6140. Penalties. 6140. Mortgage servicers.

Index

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Part IX Ch. 68–72 Condos, etc.

§ 6131.   Application for license (a)  Contents.—An application for a license under this chapter shall be on a form prescribed and provided by the department. Consistent with sections 202 E and 405 F(1) of the act of May 15, 1933 (P.L.565, No.111), known as the De-

363

Part VI Ch. 49–56 Taxation

SUBCHAPTER D ADMINISTRATIVE AND LICENSURE PROVISIONS

Part V Ch. 41–48A Zoning, etc.

(8)  A mortgage lender may charge, contract for, receive or collect on any open-end loan account an annual fee not to exceed $50 per year.

Part IV Ch. 36–40 Insurance

(7)   Notwithstanding any other provisions in this chapter to the contrary, a mortgage lender may retain any security interest in a dwelling or real or personal property until the open-end loan is terminated, provided that, if there is no outstanding balance in the account and there is no commitment by the licensee to make advances, the mortgage lender shall, within ten days following written demand by the consumer, deliver to the consumer a release of the mortgage, indenture, deed of trust or any other similar instrument or document on any dwelling or residential real estate taken as security for the open-end loan. The mortgage lender shall include on all billing statements provided in connection with an open-end loan a statement that the licensee retains a security interest in the consumer’s dwelling or residential real estate whenever the security interest has not been released.

Part III Ch. 23–35 Mortgages

(iii)   The amount, terms and conditions of any insurance against loss or damage to property must be reasonable in relation to character and value of the property insured and the maximum anticipated amount of credit to be extended.

Part II Ch. 15–22 Deeds

(ii)  No credit life or disability insurance written in connection with an open-end loan shall be canceled by the licensee because of delinquency of the consumer in the making of the required minimum payments on the loan unless one or more of the payments is past due for a period of 90 days or more, and the licensee shall advance to the insurer the amounts required to keep the insurance in force during the period, which amounts may be debited to the consumer’s account.

Part I Ch. 1–14 Brokers

ness, the insurance shall be sufficient to pay the total balance of the loan due on the date of the consumer’s death in the case of credit life insurance or all minimum payments which become due on the loan during the covered period of disability in the case of credit disability insurance. The additional charge for credit life insurance or credit disability insurance shall be calculated in each billing cycle by applying the current monthly premium rate for insurance, as the rate may be determined by the Insurance Commissioner, to the unpaid balances in the consumer’s account, using any of the methods specified in paragraph (3) for the calculation of loan charges.

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§ 6131

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partment of Banking and Securities Code, all applicants and licensees shall use the Nationwide Mortgage Licensing System and Registry to obtain and maintain licenses under this chapter. (1)  In the case of a mortgage broker, mortgage lender, mortgage servicer or mortgage loan correspondent, the application shall include the following: (i)   The name of the applicant. (ii)  The address of the principal place of business and any branches of the applicant. (iii)   The full name, official title and business address of each director and principal officer of the mortgage loan business. (iv)   Any other information that may be required by the department. (2)   In the case of a mortgage originator, the application shall include the following: (i)   The name of the applicant. (ii)   The name of the sponsoring licensee or excepted person of the applicant and location of the excepted person or licensed location of the licensee to which the applicant is assigned. (iii)   Any other information that may be required by the department. (3)  An applicant shall demonstrate to the department that policies and procedures have been developed to receive and process consumer inquiries and grievances promptly and fairly. (a.1)   Licensing of principal place of business and branches.—All applicants and licensees must establish and maintain a separate license for the principal place of business and each branch. (b)   Duty to update.—All applicants and licensees shall be required to provide the department with written notice of the change in any information contained in an application for a license or for any renewal of a license within ten days of an applicant or licensee becoming aware of the change. (c)  Mortgage lender license.—The department shall issue a mortgage lender license applied for under this chapter if the applicant has: (1)   (Deleted by amendment). (2)  Been approved for and will continue to maintain as a licensee a line of credit, repurchase agreement or equivalent mortgage-funding capability of not less than $1,000,000. (3)   Established a minimum net worth of $250,000 at the time of application and will, at all times thereafter, maintain the minimum net worth. (4)   Been approved for and will continue to maintain as a licensee fidelity bond coverage in accordance with the guidelines established by the Federal National Mortgage Association or the Federal Home Loan Mortgage Corporation. (5)   Obtained and will maintain a surety bond in an amount that will provide coverage for the mortgage originators sponsored by the applicant or licensee, in a form acceptable to the department, prior to the issuance of the license, from a surety company authorized to do business in this Commonwealth. The following shall apply: (i)   The amount of the bond shall be: (A)   $100,000 for an applicant or licensee whose mortgage originators will originate or originated less than $30,000,000 in mortgage loans secured by Pennsylvania dwellings or residential real estate in a calendar year; (B)   $200,000 for an applicant or licensee whose mortgage originators will originate or originated $30,000,000 to $99,999,999.99 in mortgage

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Ch. 27

(C)   $300,000 for an applicant or licensee whose mortgage originators will originate or originated $100,000,000 to $249,999,999.99 in mortgage loans secured by Pennsylvania dwellings or residential real estate in a calendar year; and

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Index

(i)   The amount of the bond shall be $100,000 for an applicant or licensee whose mortgage originators will originate or originated less than $30,000,000 in mortgage loans secured by Pennsylvania dwellings or residential real

Part IX Ch. 68–72 Condos, etc.

(3)   Obtains and will maintain a surety bond in an amount that will provide coverage for the mortgage originators sponsored by the applicant or licensee, in a form acceptable to the department, prior to the issuance of the license, from a surety company authorized to do business in this Commonwealth. The following shall apply:

Part VIII Ch. 64–67 L/T

(2)   Establishes a minimum net worth of $100,000 at the time of application and will, at all times thereafter, maintain the minimum net worth.

Part VII Ch. 57–63 Litigation

(1)   Obtains and will maintain a bond in the amount of $100,000, in a form acceptable to the department, prior to the issuance of the license, from a surety company authorized to do business in this Commonwealth. The bond shall run to the Commonwealth and shall be for the use of the Commonwealth and any person or persons who obtain a judgment against the mortgage loan correspondent for failure to carry out the terms of any provision for which advance fees are paid. No bond shall comply with the requirements of this section unless it contains a provision that it shall not be canceled for any cause unless notice of intention to cancel is given to the department at least 30 days before the day upon which cancellation shall take effect. A mortgage loan correspondent who can demonstrate to the satisfaction of the department that the correspondent does not and will not accept advance fees shall be exempt from the bond requirement of this paragraph.

Part VI Ch. 49–56 Taxation

(d)  Mortgage loan correspondent license.—The department shall issue a loan correspondent’s license applied for under this chapter if the applicant:

Part V Ch. 41–48A Zoning, etc.

(6)   Designated an individual as the qualifying individual for the principal place of business and separate individuals as branch managers for each branch, as applicable.

Part IV Ch. 36–40 Insurance

(iii)   The bond shall run to the Commonwealth and shall be for the use of the Commonwealth and for the use of any consumer who is injured by the acts or omissions of the licensee’s mortgage originators that are related to the mortgage loan business regulated by this chapter. No bond shall comply with the requirements of this section unless it contains a provision that it shall not be canceled for any cause unless notice of intention to cancel is given to the department at least 30 days before the day upon which cancellation shall take effect. Cancellation of the bond shall not invalidate the bond regarding the period of time it was in effect.

Part III Ch. 23–35 Mortgages

(ii)   For an initial license applicant, the amount of the bond shall be determined by the applicant’s anticipated amount of mortgage loans secured by Pennsylvania dwellings or residential real estate originated by its mortgage originators in the first calendar year of licensing. For a licensee, the amount of the bond shall be determined annually by the department based upon the amount of mortgage loans secured by Pennsylvania dwellings or residential real estate originated by the licensee’s mortgage originators as indicated on the licensee’s periodic report.

Part II Ch. 15–22 Deeds

(D)   $500,000 for an applicant or licensee whose mortgage originators will originate or originated $250,000,000 or more in mortgage loans secured by Pennsylvania dwellings or residential real estate in a calendar year.

Part I Ch. 1–14 Brokers

loans secured by Pennsylvania dwellings or residential real estate in a calendar year;

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§ 6131

MORTGAGE LOAN INDUSTRY LICENSING

estate in a calendar year; $200,000 for an applicant or licensee whose mortgage originators will originate or originated $30,000,000 to $99,999,999.99 in mortgage loans secured by Pennsylvania dwellings or residential real estate in a calendar year; $300,000 for an applicant or licensee whose mortgage originators will originate or originated $100,000,000 to $249,999,999.99 in mortgage loans secured by Pennsylvania dwellings or residential real estate in a calendar year; and $500,000 for an applicant or licensee whose mortgage originators will originate or originated $250,000,000 or more in mortgage loans secured by Pennsylvania dwellings or residential real estate in a calendar year. (ii)   For an initial license applicant, the amount of the bond shall be determined by the applicant’s anticipated amount of mortgage loans secured by Pennsylvania dwellings or residential real estate originated by its mortgage originators in the first calendar year of licensing. For a licensee, the amount of the bond shall be determined annually by the department based upon the amount of mortgage loans secured by Pennsylvania dwellings or residential real estate originated by the licensee’s mortgage originators as indicated on the licensee’s periodic report. (iii)   The bond shall run to the Commonwealth and shall be for the use of the Commonwealth and for the use of any consumer who is injured by the acts or omissions of the licensee’s mortgage originators that are related to the mortgage loan business regulated by this chapter. No bond shall comply with the requirements of this section unless it contains a provision that it shall not be canceled for any cause unless notice of intention to cancel is given to the department at least 30 days before the day upon which cancellation shall take effect. Cancellation of the bond shall not invalidate the bond regarding the period of time it was in effect. (4)   Designates an individual as the qualifying individual for the principal place of business and separate individuals as branch managers for each branch, as applicable. (e)   Mortgage broker license.— (1)   The department shall issue a mortgage broker license applied for under this chapter if the applicant obtains and will maintain a bond in the amount of $100,000, in a form acceptable to the department, prior to the issuance of the license, from a surety company authorized to do business in this Commonwealth. The bond shall be a penal bond conditioned on compliance with this chapter and subject to forfeiture by the department and shall run to the Commonwealth for its use. The bond shall also be for the use of any person against the mortgage broker for failure to carry out the terms of any provision for which advance fees are paid. If the person is aggrieved, the person may, with the written consent of the department, recover advance fees and costs from the bond by filing a claim with the surety company or maintaining an action on the bond. In the alternative, an aggrieved person may recover advance fees and costs by filing a formal complaint against the mortgage broker with the department which shall adjudicate the matter. The adjudication shall be binding upon the surety company and enforceable by the department in Commonwealth Court and by an aggrieved person in any court. Any aggrieved person seeking to recover advance fees and costs from a bond that has already been forfeited by the department or which the department is in the process of forfeiting may recover payment on the bond if, after filing a petition with the department, the department consents to the aggrieved person’s requested payment or portion thereof. The department may pay the aggrieved person from the bond proceeds it recovers. Nothing in this section shall be construed as limiting the ability of any court or magisterial district judge to award to any aggrieved person other damages, court costs and attorney fees as permitted by law, but those claims that

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Ch. 27

Part III Ch. 23–35 Mortgages Part IV Ch. 36–40 Insurance Part V Ch. 41–48A Zoning, etc. Part VI Ch. 49–56 Taxation Part VII Ch. 57–63 Litigation Part VIII Ch. 64–67 L/T Part IX Ch. 68–72 Condos, etc. Index

gtb-parealestate22-all.indb 367

Part II Ch. 15–22 Deeds

367

Part I Ch. 1–14 Brokers

are not advance fees or related costs may not be recovered from the bond. The department, in its discretion, may consent to or order pro rata or other recovery on the bond for any aggrieved person if claims against the bond may or do exceed its full monetary amount. No bond shall comply with the requirements of this section unless it contains a provision that it shall not be canceled for any cause unless notice of intention to cancel is given to the department at least 30 days before the day upon which cancellation shall take effect. Cancellation of the bond shall not invalidate the bond regarding the period of time it was in effect. (2)   Mortgage brokers who can demonstrate to the satisfaction of the department that they do not and will not accept advance fees shall be exempt from the bond requirement of paragraph (1). (3)  A mortgage broker shall obtain and maintain a surety bond in an amount that will provide coverage for the mortgage originators sponsored by the applicant or licensee, in a form acceptable to the department, prior to the issuance of the license, from a surety company authorized to do business in this Commonwealth. The following shall apply: (i)   The amount of the bond shall be $50,000 for an applicant or licensee whose mortgage originators will originate or originated less than $15,000,000 in mortgage loans secured by Pennsylvania dwellings or residential real estate in a calendar year; $75,000 for an applicant or licensee whose mortgage originators will originate or originated $15,000,000 to $29,999,999.99 in mortgage loans secured by Pennsylvania dwellings or residential real estate in a calendar year; $100,000 for an applicant or licensee whose mortgage originators will originate or originated $30,000,000 to $49,999,999.99 in mortgage loans secured by Pennsylvania dwellings or residential real estate in a calendar year; and $150,000 for an applicant or licensee whose mortgage originators will originate or originated $50,000,000 or more in mortgage loans secured by Pennsylvania dwellings or residential real estate in a calendar year. (ii)   For an initial license applicant, the amount of the bond shall be determined by the applicant’s anticipated amount of mortgage loans secured by Pennsylvania dwellings or residential real estate originated by its mortgage originators in the first calendar year of licensing. For a licensee, the amount of the bond shall be determined annually by the department based upon the amount of mortgage loans secured by Pennsylvania dwellings or residential real estate originated by the licensee’s mortgage originators as indicated on the licensee’s periodic report. (iii)   The bond shall run to the Commonwealth and shall be for the use of the Commonwealth and for the use of any consumer who is injured by the acts or omissions of the licensee’s mortgage originators that are related to the mortgage loan business regulated by this chapter. No bond shall comply with the requirements of this section unless it contains a provision that it shall not be canceled for any cause unless notice of intention to cancel is given to the department at least 30 days before the day upon which cancellation shall take effect. Cancellation of the bond shall not invalidate the bond regarding the period of time it was in effect. (4)   A mortgage broker shall designate an individual as the qualifying individual for the principal place of business and separate individuals as branch managers for each branch, as applicable. (f)  Mortgage originator license.—A mortgage originator shall do all of the following: (1)  Be an employee of or under the direct supervision and control of a licensed mortgage broker, mortgage lender or mortgage loan correspondent, a person excepted from this chapter or a person excepted from licensure un-

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§ 6131

MORTGAGE LOAN INDUSTRY LICENSING

der section 6112 (relating to exceptions to license requirements). The licensee or person shall sponsor the mortgage originator in the Nationwide Mortgage Licensing System and Registry and directly supervise, control and maintain responsibility for the acts and omissions of the mortgage originator. (2)  Be assigned to and work out of a licensed location of the sponsoring licensee or a location of a sponsoring person excepted from this chapter or excepted from licensure under section 6112, which, in the case of a sponsoring licensee, may be either the mortgage originator’s residence or a location of the licensee that is within 100 miles of the mortgage originator’s residence. (3)   Maintain a valid unique identifier issued by the Nationwide Mortgage Licensing System and Registry. (4)   If a person excepted from this chapter or excepted from licensure under section 6112 does not elect to maintain bond coverage for its mortgage originators in the same manner as a mortgage lender, a mortgage originator employed by or under the direct supervision and control of a person excepted from this chapter or excepted from licensure under section 6112 shall obtain and maintain a surety bond in an amount that will provide coverage for the mortgage originator, in a form acceptable to the department, prior to the issuance of the license, from a surety company authorized to do business in this Commonwealth. The following shall apply: (i)   The amount of the bond shall be $25,000 for an applicant or licensee who will originate or originated less than $7,500,000 in mortgage loans secured by Pennsylvania dwellings or residential real estate in a calendar year; $50,000 for an applicant or licensee who will originate or originated $7,500,000 to $14,999,999.99 in mortgage loans secured by Pennsylvania dwellings or residential real estate in a calendar year; $75,000 for an applicant or licensee who will originate or originated $15,000,000 to $29,999,999.99 in mortgage loans secured by Pennsylvania dwellings or residential real estate in a calendar year; $100,000 for an applicant or licensee who will originate or originated $30,000,000 to $49,999,999.99 in mortgage loans secured by Pennsylvania dwellings or residential real estate in a calendar year; and $150,000 for an applicant or licensee who will originate or originated $50,000,000 or more in mortgage loans secured by Pennsylvania dwellings or residential real estate in a calendar year. (ii)   For an initial license applicant, the amount of the bond shall be determined by the applicant’s anticipated amount of mortgage loans secured by Pennsylvania dwellings or residential real estate originated in the first calendar year of licensing. For a licensee, the amount of the bond shall be determined annually by the department based upon the amount of mortgage loans secured by Pennsylvania dwellings or residential real estate originated by the mortgage originator as indicated on the mortgage originator’s periodic report. (iii)   The bond shall run to the Commonwealth and shall be for the use of the Commonwealth and for the use of any consumer who is injured by the acts or omissions of the mortgage originator that are related to the mortgage loan business regulated by this chapter. No bond shall comply with the requirements of this section unless it contains a provision that it shall not be canceled for any cause unless notice of intention to cancel is given to the department at least 30 days before the day upon which cancellation shall take effect. Cancellation of the bond shall not invalidate the bond regarding the period of time it was in effect. (5)   Only engage in the mortgage loan business on behalf of the single mortgage broker, mortgage lender or mortgage loan correspondent or a person excepted from this chapter or a person excepted from licensure under section 6112 that sponsors the mortgage originator.

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Part III Ch. 23–35 Mortgages Part IV Ch. 36–40 Insurance Part V Ch. 41–48A Zoning, etc. Part VI Ch. 49–56 Taxation Part VII Ch. 57–63 Litigation Part VIII Ch. 64–67 L/T Part IX Ch. 68–72 Condos, etc. Index

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(g)   Nationwide Mortgage Licensing System and Registry information challenge process.—A mortgage originator applicant or licensee may challenge the accuracy of information entered by the department to the Nationwide Mortgage Licensing System and Registry regarding the mortgage originator applicant or licensee by filing a written complaint with the department. The department shall review the complaint and alleged inaccurate information on the Nationwide Mortgage Licensing System and Registry and notify the applicant or licensee of corrective action taken by the department regarding the alleged inaccurate information within 30 days of receipt of the complaint. (h)  License renewals.—Licenses shall be issued for terms not to exceed 14 months and may be renewed by the department each year on a schedule set by the department upon application by the licensee and the payment of any and all applicable renewal fees. The licensee shall demonstrate to the department that it is conducting the mortgage loan business in accordance with the requirements of this chapter and that the licensee or directors, officers, partners, employees, mortgage originators, agents and ultimate equitable owners of 10% or more of the licensee continue to meet all of the initial requirements for licensure required by this chapter unless otherwise determined by the department. (i)  Out-of-State applicants.— (1)   If an applicant is not a resident of this Commonwealth, as a condition to receiving a license under this chapter, the applicant shall be authorized to do business in this Commonwealth in accordance with the laws of this Commonwealth regulating corporations and other entities conducting business in this Commonwealth and shall maintain at least one office which is the office that shall be licensed as the principal place of business for the purposes of this chapter. (2)   Out-of-State applicants shall file with the license application an irrevocable consent, duly acknowledged, that suits and actions may be commenced against that person in the courts of this Commonwealth by the service of process of any pleading upon the department in the usual manner provided for service of process and pleadings by the laws and court rules of this Commonwealth. The consent shall provide that this service shall be as valid and binding as if service had been made personally upon the person in this Commonwealth. In all cases where process or pleadings are served upon the department under the provisions of this section, the process or pleadings shall be served in triplicate; one copy shall be filed in the department’s offices and the others shall be forwarded by the department, by certified or registered mail, return receipt requested, to the last known principal place of business of the person. (j)  Disclosure of mortgage originator information.—Notwithstanding section 302 of the act of May 15, 1933 (P.L.565, No.111), known as the Department of Banking and Securities Code, the department shall make available to the public, including by access to the Nationwide Mortgage Licensing System and Registry, the employment history of a mortgage originator. (k)  Mortgage servicer license.—The department shall issue a mortgage servicer license under this chapter if the applicant has: (1)   Been approved by or meets the current eligibility criteria for approval as a residential mortgage loan servicer of at least one Federal Governmentsponsored entity, government corporation or Federal agency. (2)   Established a minimum net worth of $250,000 at the time of application and maintains the minimum net worth. (3)   Been approved for and maintains as a licensee fidelity bond coverage in accordance with the guidelines established by the Federal National Mortgage Association or the Federal Home Loan Mortgage Corporation. (4)   Obtained and maintains a surety bond in an amount that will provide coverage for the mortgage servicer in a form acceptable to the department prior

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§ 6131.1

MORTGAGE LOAN INDUSTRY LICENSING

to the issuance of the license, from a surety company authorized to do business in this Commonwealth. The following shall apply: (i)   The amount of the bond shall be $500,000. (ii)  The bond shall run to the Commonwealth and shall be for the use of the Commonwealth and for the use of the consumer who is injured by the acts or omissions of the licensee’s mortgage originators that are related to the mortgage loan business regulated under this chapter. A bond shall not comply with the requirements of this section unless the bond contains a provision that the bond shall not be canceled for any cause unless notice of intention to cancel is given to the department at least 30 days, excluding legal holidays, Saturdays and Sundays, before the day upon which cancellation shall take effect. Cancellation of the bond shall not invalidate the bond regarding the period of time the bond was in effect. (5)   Designated an individual as the qualifying individual for the principal place of business. § 6131.1.   Prelicensing and continuing education. (a)  General requirements.— (1)   Applicants shall complete prelicensing education required under subsection (b) and pass a written test regarding the education under subsection (c) in order to obtain a license under this chapter. (2)   Licensees shall complete continuing education required under subsection (d) in order to renew a license under this chapter. (b)  Prelicensing education.— (1)   A mortgage originator applicant, and at least one qualifying individual of a mortgage broker, mortgage lender or mortgage loan correspondent applicant, shall complete at least 20 hours of education programs approved in accordance with paragraph (2), which shall include all of the following: (i)   Three hours of Federal law and regulations. (ii)   Three hours of ethics, which shall include instruction on fraud, consumer protection and fair lending issues. (iii)   Two hours of training related to lending standards for the nontraditional mortgage loan marketplace. (iv)  Three hours of Pennsylvania law and regulations, including this chapter, the act of December 3, 1959 (P.L.1688, No.621), known as the Housing Finance Agency Law, and the act of January 30, 1974 (P.L.13, No.6), referred to as the Loan Interest and Protection Law. (2)   Prelicensing education programs shall be reviewed and approved by the Nationwide Mortgage Licensing System and Registry or as otherwise determined by the department based upon reasonable standards. Review and approval of a prelicensing education program shall include review and approval of the program provider. (3)   A prelicensing education program approved by the Nationwide Mortgage Licensing System and Registry or as otherwise determined by the department may be provided by the sponsor of the applicant or an entity which is affiliated with the applicant by an agency contract, or any subsidiary or affiliate of such sponsor or entity. (4)   Prelicensing education programs may be offered either in a classroom, online or by any other means approved by the Nationwide Mortgage Licensing System and Registry or as otherwise determined by the department. (5)  Except for prelicensing education programs under paragraph (1)(iv), prelicensing education programs approved by the Nationwide Mortgage Licensing System and Registry or as otherwise determined by the department

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Part III Ch. 23–35 Mortgages Part IV Ch. 36–40 Insurance Part V Ch. 41–48A Zoning, etc. Part VI Ch. 49–56 Taxation Part VII Ch. 57–63 Litigation Part VIII Ch. 64–67 L/T Part IX Ch. 68–72 Condos, etc. Index

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Part II Ch. 15–22 Deeds

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and completed for another State license application shall be accepted as credit toward completion of the prelicensing education requirements of this chapter. (6)  An applicant that was previously licensed under this chapter that is applying to become licensed again under this chapter must demonstrate that the applicant has completed all of the continuing education requirements for the year in which the applicant was last licensed under this chapter. (c)   Prelicensing written test.— (1)   A mortgage originator applicant, and at least one qualifying individual of a mortgage broker, mortgage lender or mortgage loan correspondent applicant, shall pass, in accordance with the standards established under this subsection, a qualified written test developed by the Nationwide Mortgage Licensing System and Registry and administered by a test provider approved by the Nationwide Mortgage Licensing System and Registry based upon reasonable standards. The department may also require applicants to pass a test regarding Pennsylvania-specific law, which shall be administered by a test provider approved by the department or as otherwise determined by the department under subsection (e). (2)   A written test shall not be treated as a qualified written test for purposes of paragraph (1) unless the test adequately measures the applicant’s knowledge and comprehension in appropriate subject areas, including: (i)  Ethics. (ii)   Federal law and regulation pertaining to mortgage origination. (iii)   Pennsylvania law and regulation pertaining to mortgage origination, unless otherwise determined by the department. (iv)   Federal and Pennsylvania law and regulation related to fraud, consumer protection, the nontraditional mortgage marketplace and fair lending issues. (3)   A test provider approved by the Nationwide Mortgage Licensing System and Registry or as otherwise determined by the department may provide a test at the location of the sponsor of the applicant or an entity which is affiliated with the applicant by an agency contract, or any subsidiary or affiliate of the sponsor or entity. (4)(i)   An applicant shall not be considered to have passed a qualified written test unless the individual achieves a test score of not less than 75% correct answers to questions. (ii)   An applicant may take a test three consecutive times with each consecutive taking occurring at least 30 days after the preceding test. (iii)   After failing three consecutive tests, an applicant shall wait at least six months before taking the test again. (iv)   A formerly licensed mortgage originator applicant who has been unlicensed for five continuous years or longer shall retake a test. Any time during which the individual is a registered mortgage loan originator shall not be counted toward the five-year continuous period. (d)  Continuing education.— (1)   A licensee who is a mortgage originator and all branch managers and qualifying individuals of a mortgage broker, mortgage lender or mortgage loan correspondent shall annually complete at least eight hours of education programs in accordance with paragraph (2), which shall include all of the following: (i)   Three hours of Federal law and regulations. (ii)  Two hours of ethics, which shall include instruction on fraud, consumer protection and fair lending issues.

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(iii)   Two hours of training related to lending standards for the nontraditional mortgage loan marketplace. (iv)   One hour of Pennsylvania law, including this chapter, the act of December 3, 1959 (P.L.1688, No.621), known as the Housing Finance Agency Law, and the act of January 30, 1974 (P.L.13, No.6), referred to as the Loan Interest and Protection Law. (2)   Continuing education programs shall be reviewed and approved by the Nationwide Mortgage Licensing System and Registry or as otherwise determined by the department based upon reasonable standards. Review and approval of a continuing education program shall include review and approval of the program provider. (3)   A continuing education program approved by the Nationwide Mortgage Licensing System and Registry or as otherwise determined by the department may be provided by the sponsor of the licensee or an entity which is affiliated with the licensee by an agency contract, or any subsidiary or affiliate of the sponsor or entity. (4)  Continuing education programs may be offered either in a classroom, online or by any other means approved by the Nationwide Mortgage Licensing System and Registry or as otherwise determined by the department. (5)   A licensee may only receive credit for a continuing education program in the year in which the program is taken and may not take the same continuing education program in the same or successive years to meet the requirements of this subsection. (6)   A licensed mortgage originator who is an instructor of an approved continuing education program may receive credit for the licensed mortgage loan originator’s own continuing education requirement at the rate of two hours credit for every one hour taught. (7)   Except for the continuing education program under paragraph (1)(iv), continuing education programs approved by the Nationwide Mortgage Licensing System and Registry or as otherwise determined by the department and completed for another state shall be accepted as credit toward completion of the continuing education requirements of this chapter. (8)   An individual who is a mortgage originator, branch manager or qualifying individual of a mortgage broker, mortgage lender or mortgage loan correspondent is not required to complete the requirements of this subsection in any licensing year in which the individual has completed the requirements of subsection (b). (e)   Pennsylvania-specific education and testing programs.— (1)   Pennsylvania-specific education and testing programs shall be approved by the department, unless otherwise determined by the department. The department may charge education and testing providers a fee, to be determined by the department, for department review of Pennsylvania-specific education and testing programs. (2)  An education provider may apply for education and testing program approval on a form prescribed and provided by the department. The application shall be submitted to the department at least 60 days prior to the first date that the education is proposed to be offered. The application shall include: (i)  An outline of the proposed education and testing program, and the method of instruction and testing, whether in a classroom, online or by any other means. (ii)   A resume detailing each proposed instructor’s qualifications. The following individuals shall not be qualified to be instructors, unless the department determines otherwise:

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(B)   An individual who has been the director, officer, partner, employee, agent or ultimate equitable owner of 10% or more of a licensee that has had its license denied, not renewed, suspended or revoked by the department or another state.

(iii)   Other information that the department may require. (3)   The department shall be notified in writing at least 10 days prior to any change in instructors. A new instructor shall be subject to the criteria under paragraph (2)(ii).

(8)   Education providers shall retain original records of attendance for each education and testing program conducted by the education provider for four years and shall provide the department free access to the records upon request.

(1)   For mortgage lenders and mortgage loan correspondents, $1,500 for the principal place of business and an additional fee of $1,500 for each branch office. (2)   For mortgage brokers, $1,000 for the principal place of business and an additional fee of $250 for each branch office.

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Index

(3)   For mortgage originators, $200.

Part IX Ch. 68–72 Condos, etc.

§ 6132.   License fees. (a)  Initial application fees.—Except as set forth in subsection (d)(1), an applicant shall pay to the department at the time an application is filed an initial nonrefundable application fee as set forth under this subsection.

Part VIII Ch. 64–67 L/T

(9)  The department may revoke its approval of an education provider’s education and testing programs if the education provider fails to comply with any requirement of this chapter.

Part VII Ch. 57–63 Litigation

(7)   Education providers shall provide free access to the department to monitor education programs. In order to ensure the department’s access to education programs, education providers shall provide the department with notification of the date, time and location of each education program that is offered by the education provider.

Part VI Ch. 49–56 Taxation

(6)   Approval of an education program by the department shall be valid for one licensing year and shall not constitute permanent approval of the education program.

Part V Ch. 41–48A Zoning, etc.

(5)   The department shall have 45 days from receipt of a completed application to approve or deny the proposed education and testing program. An application shall be deemed completed when the requirements of this subsection have been fulfilled. If the department fails to approve or deny an application submitted by a prospective education provider within 45 days of its receipt, the education program shall be deemed approved by the department. The department may deny an application submitted by an education provider if the education and testing program or education provider fails to satisfy any of the conditions or requirements contained under this chapter.

Part IV Ch. 36–40 Insurance

(4)   Education programs offered solely to satisfy the requirements of subsection (d) shall not be required to include a written testing component.

Part III Ch. 23–35 Mortgages

(D)   An individual who has pleaded guilty, been convicted of or pleaded nolo contendere to a crime of moral turpitude or felony.

Part II Ch. 15–22 Deeds

(C)   An individual who has been subject to a department order or agreement prohibiting the individual from engaging in the mortgage loan business in this Commonwealth or acting in any other capacity related to activities regulated by the department or similar order or agreement issued by another state.

Part I Ch. 1–14 Brokers

(A)  An individual who has had his license denied, not renewed, suspended or revoked by the department or any other state.

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§ 6133

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(4)   For mortgage servicers, $2,500 for the principal place of business and an additional fee of $1,250 for each branch location. (b)  Renewal fees.—Prior to each annual renewal of a license, except as set forth in subsection (d)(2), a licensee shall pay to the department a nonrefundable license renewal fee as set forth under this subsection. (1)   For mortgage lenders and mortgage loan correspondents, $750 for the principal place of business and an additional fee of $750 for each branch office. (2)   For mortgage brokers, $500 for the principal place of business and an additional fee of $250 for each branch office. (3)   For mortgage originators, $100. (4)   For mortgage servicers, $1,000 for the principal place of business and an additional fee of $500 for each branch location. (c)   No abatement of fee.—No abatement of a licensee fee shall be made if the license is issued for a period of less than one year. (d)   Exception to mortgage originator license fees.— (1)   An applicant shall not be required to pay the fee for a mortgage originator license as provided in subsection (a) if the applicant is also individually a mortgage lender applicant, mortgage loan correspondent applicant, mortgage servicer applicant or mortgage broker applicant. (2)   A licensee shall not be required to pay the fee for a mortgage originator license as provided in subsection (b) if the licensee is also individually a mortgage lender licensee, mortgage loan correspondent licensee or mortgage broker licensee. § 6133.   Issuance of license. (a)  Time limit.—Within 60 days after a completed application is received, the department shall either issue a license or, for any reason which the department may refuse to issue a license under this section or for which the department may suspend, revoke or refuse to renew a license under section 6139 (relating to suspension, revocation or refusal), refuse to issue a license. The 60-day time limit specified in this subsection may be extended by the department for an additional 30 days if the department determines that the extension is necessary. The department shall provide written notification to any applicant whose application review has been extended and include the final date by which a decision shall be rendered regarding the application. (a.1)  Investigations.—Upon receipt of an application for a license, the department may conduct an investigation of the applicant or a director, officer, partner, employee, agent or ultimate equitable owner of 10% or more of the applicant as it deems necessary. (b)   Appeal of denial.—If the department refuses to issue a license, it shall notify the applicant in writing of the denial, the reason for the denial and the applicant’s right to appeal the denial to the Secretary of Banking. An appeal from the department’s refusal to approve an application for a license must be filed by the applicant within 30 days of notice of refusal. (c)  Contents of license.—Each license issued by the department shall specify: (1)  The name and address of the licensee and the address or addresses covered by the license. (2)   The licensee’s reference number or unique identifier. (3)  Any other information the department shall require to carry out the purposes of this chapter.

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(d)   Denial of license due to conviction.—

(2)   is the subject of an order of the department;

(4)  has an outstanding debt to the Commonwealth or a Commonwealth agency; or

(ii)   Current outstanding tax liens or other government liens and filings. (iii)   Foreclosures within the past three years.

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Part IX Ch. 68–72 Condos, etc.

(i)   Current outstanding judgments, other than judgments solely as a result of medical expenses.

Part VIII Ch. 64–67 L/T

(5)   does not possess the financial responsibility, character, reputation, integrity and general fitness to command the confidence of the public and to warrant the belief that the mortgage loan business will be operated lawfully, honestly, fairly and within the legislative intent of this chapter and in accordance with the general laws of this Commonwealth. For the purposes of this paragraph, an applicant is not financially responsible if the applicant has shown a disregard in the management of his or her own financial condition. The factors that the department may consider in making a determination regarding an applicant’s financial responsibility shall include:

Part VII Ch. 57–63 Litigation

(3)  has violated or failed to comply with any provision of this chapter or any regulation, statement of policy or order of the department;

Part VI Ch. 49–56 Taxation

(1)  has had a license application or license issued by the department or another State licensing agency or by a Federal regulatory agency denied, not renewed, suspended or revoked;

Part V Ch. 41–48A Zoning, etc.

(e)   Denial of license for other reason.—The department may deny a license or otherwise restrict a license if it finds that the applicant or a director, officer, partner, employee, agent or ultimate equitable owner of 10% or more of the applicant:

Part IV Ch. 36–40 Insurance

(2)  A license under this chapter shall be deemed to be a covered license within the meaning of section 405 of the act of May 15, 1933 (P.L.565, No.111), known as the Department of Banking Code. The department shall notify a licensee if a covered individual within the meaning of section 405 of the Department of Banking Code that is or will be employed or contracted by the licensee has a criminal background that renders the employee unfit for employment in the mortgage loan business.

Part III Ch. 23–35 Mortgages

(ii)   is found guilty by the decision or judgment of a domestic, foreign or military court or Federal magistrate or by the verdict of a jury, irrespective of the pronouncement of sentence or the suspension thereof, unless the plea of guilty or nolo contendere or the decision, judgment or verdict is set aside, vacated, reversed or otherwise abrogated by lawful judicial process.

Part II Ch. 15–22 Deeds

(i)   pleads guilty or nolo contendere to a criminal charge before a domestic, foreign or military court or Federal magistrate; or

Part I Ch. 1–14 Brokers

(1)   The department may deny a license if it finds that the applicant or a director, officer, partner, employee, agent or ultimate equitable owner of 10% or more of the applicant has been convicted of a crime of moral turpitude or felony in any jurisdiction or of a crime which, if committed in this Commonwealth, would constitute a crime of moral turpitude or felony. The department shall deny a mortgage originator license if the applicant has been convicted of any felony during the seven-year period preceding the date of the license application or at any time preceding the date of application, if the felony involved an act of fraud, dishonesty, breach of trust or money laundering, unless the applicant has been pardoned for the conviction. For the purposes of this subsection, a person shall be deemed to have been convicted of a crime if the person:

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§ 6134

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(iv)  A pattern of seriously delinquent accounts within the past three years. (e.1)  Mandatory denial of mortgage originator license.—The department shall deny a mortgage originator license if it finds that any of the following paragraphs apply: (1)  The applicant has had a license issued by the department or another State licensing agency or a Federal regulatory agency revoked. If the revocation is formally vacated, this paragraph does not apply. (2)  The applicant does not possess the financial responsibility, character, reputation, integrity and general fitness to command the confidence of the public and to warrant the belief that the mortgage loan business will be operated lawfully, honestly, fairly and within the legislative intent of this chapter and in accordance with the general laws of this Commonwealth. For the purposes of this paragraph, an applicant is not financially responsible if the applicant has shown a disregard in the management of his or her own financial condition. The factors that the department may consider in making a determination regarding an applicant’s financial responsibility include: (i)   Current outstanding judgments, other than judgments solely as a result of medical expenses. (ii)   Current outstanding tax liens or other government liens and filings. (iii)   Foreclosures within the past three years. (iv)  A pattern of seriously delinquent accounts within the past three years. (f)  Conditional licenses.—The department may impose conditions on the issuance of any license under this chapter. If the department determines that conditions imposed upon a licensee have not been fulfilled, the department may take any action authorized under this chapter against the licensee that the department deems necessary. In the case of mortgage originator applicants, the department may issue mortgage originator licenses effective immediately upon receipt of an application, which licenses shall be conditional licenses issued under this subsection. § 6134.   License duration. A license issued by the department shall be subject to all of the following limitations: (1)   Be renewed on the licensee’s renewal date each year upon completion of the requirements of section 6131(h) (relating to application for license). No refund of any portion of the license fee shall be made if the license is voluntarily surrendered to the department or suspended or revoked by the department prior to its expiration date. (2)   Be invalid if the licensee’s authority to conduct business is voided under any law of this Commonwealth or any other state, unless the licensee demonstrates to the satisfaction of the department that the applicable court or governmental entity was clearly erroneous in voiding the licensee’s authority to conduct business. (3)   Not be assignable or transferable by operation of law or otherwise. § 6135.   Licensee requirements. (a)   Requirements of licensee.— (1)   (Deleted by amendment). (2)   Each licensee shall maintain at its principal place of business, or at another place if agreed to by the department, the original or a copy of any books,

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Part IX Ch. 68–72 Condos, etc. Index

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§ 6136.   Licensee limitations. (a)   Name and changes to name.—A licensee cannot transact any business under this chapter under any other name or names except those names designated in its license. A mortgage originator may not use any other name other than the mortgage originator’s personal legal name. A licensee that changes its name or place or places of business shall notify the department or the Nationwide Mortgage Licensing System and Registry, as determined by the department, within ten days of the change.

Part VI Ch. 49–56 Taxation

(c)  Copies.—If copies of instruments, documents, accounts, books or records are maintained under subsection (a)(2), they may be photostatic, microfilm or electronic copies or copies provided in some other manner approved by the department.

Part V Ch. 41–48A Zoning, etc.

(b)  Accounting records.—For licensees with minimum net worth requirements pursuant to this chapter, the licensee’s accounting records must be constructed and maintained in compliance with generally accepted accounting principles or as provided by department regulation.

Part IV Ch. 36–40 Insurance

(5)   Each licensee shall include in all advertisements the licensee’s unique identifier.

Part III Ch. 23–35 Mortgages

(4)   Each licensee shall be subject to examination by the department at its discretion, at which time the department shall have free access, during regular business hours, to the licensee’s place or places of business and to all instruments, documents, accounts, books and records which pertain to a licensee’s first or secondary mortgage loan business. The department may examine a licensee at any time if the department deems the examination to be necessary or desirable. The cost of any such examination shall be borne by the licensee.

Part II Ch. 15–22 Deeds

(3)   A mortgage broker, mortgage lender, mortgage servicer, mortgage loan correspondent, or a mortgage originator that is required to obtain and maintain its own bond coverage under section 6131(f)(4) (relating to application for license), shall file periodically, as determined by the department, a report with the department or the Nationwide Mortgage Licensing System and Registry, as determined by the department, setting forth such information as the department shall require concerning the first or secondary mortgage loan business conducted by the licensee. Licensees who fail to file the required report at the date required by the department may be subject to a penalty of $100 for each day after the due date until the report is filed.

Part I Ch. 1–14 Brokers

accounts, records and documents, or electronic or similar access thereto, of the business conducted under the license as prescribed by the department to enable the department to determine whether the business of the licensee is being conducted in accordance with the provisions of this chapter and the regulations, statements of policy or orders issued under this chapter. All instruments, documents, accounts, books and records relating to the mortgage loan business shall be kept separate and apart from the records of any other business conducted by the licensee. Records of first and secondary mortgage loans shall be easily distinguishable and easily separated. All records shall be preserved and kept available for investigation or examination by the department for a period of four years, unless otherwise determined by the department. The department shall have free access to and authorization to examine records maintained by the licensee. The costs of the examination, including travel costs, shall be borne by the licensee. The department may deny or revoke the authority to maintain records at another place for good cause in the interest of protection for Commonwealth consumers, including for the licensee’s failure to provide books, accounts, records or documents to the department upon request.

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§ 6137

MORTGAGE LOAN INDUSTRY LICENSING

(b)  Other businesses.—A licensee cannot conduct a business other than the mortgage loan business licensed by the department under this chapter without at least 30 days’ prior written notification to the department. § 6137.   Surrender of license. Upon satisfying the department that all creditors of a licensee have been paid or that other arrangements satisfactory to the creditors and the department have been made, a licensee may voluntarily surrender its license to the department by providing the department or the Nationwide Mortgage Licensing System and Registry, as determined by the department, written notice that the license is being voluntarily surrendered, but an action by a licensee shall not affect the licensee’s civil or criminal liability for acts committed. § 6138.   Authority of department. (a)  General authority.—The department shall have the authority to: (1)  Examine any instrument, document, account, book, record or file of a licensee or any person having a connection to the licensee or make other investigation as may be necessary to administer the provisions of this chapter. Pursuant to this authority, the department may remove any instrument, document, account, book, record or file of a licensee to a location outside of the licensee’s office location. The costs of the examination shall be borne by the licensee or the entity subject to the examination. (2)   Conduct administrative hearings on any matter pertaining to this chapter, issue subpoenas to compel the attendance of witnesses and the production of instruments, documents, accounts, books and records at any hearing. The instruments, documents, accounts, books and records may be retained by the department until the completion of all proceedings in connection with which the materials were produced. A department official may administer oaths and affirmations to a person whose testimony is required. In the event a person fails to comply with a subpoena issued by the department or to testify on a matter concerning which he may be lawfully interrogated, on application by the department, the Commonwealth Court may issue an order requiring the attendance of the person, the production of instruments, documents, accounts, books and records and the giving of testimony. (3)  Request and receive information or records of any kind, including reports of criminal history record information from any Federal, State, local or foreign government entity regarding an applicant for a license, licensee or person related in any way to the business of the applicant or licensee, at a cost to be paid by the applicant or licensee. (4)  Issue regulations, statements of policy or orders as may be necessary for the proper conduct of the mortgage loan business by licensees, the issuance and renewal of licenses and the enforcement of this chapter. (5)   Prohibit or permanently remove a person or licensee responsible for a violation of this chapter from working in the present capacity or in any other capacity of the person or licensee related to activities regulated by the department. (6)  Order a person or licensee to make restitution for actual damages to consumers caused by any violation of this chapter. (7)   Issue cease and desist orders that are effective immediately, subject to a hearing as specified in subsection (b) within 14 days of the issuance of the order. (8)   Impose such other conditions as the department deems appropriate. (b)  Hearings.—A person aggrieved by a decision of the department may appeal the decision of the department to the commission. The appeal shall be conducted under 2 Pa.C.S. Ch. 5 Subch. A (relating to practice and procedure of Commonwealth agencies).

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(f)  Orders affecting mortgage originators.—An order issued against a licensee is applicable to the mortgage originators sponsored by the licensee.

(2)  Failed to comply with or violated any provision of this chapter or any regulation or order promulgated or issued by the department under this chapter.

(4)  Been convicted of or pleaded guilty or nolo contendere to a crime of moral turpitude or felony.

(6)   Become the subject of an order of the department denying, suspending or revoking a license applied for or issued under this chapter. (7)   Become the subject of a United States Postal Service fraud order.

(10)  Demonstrated negligence or incompetence in performing an act for which the licensee is required to hold a license under this chapter.

379

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Index

(11)  Accepted an advance fee without having obtained the bond required by section 6131(d)(1) or (e)(1) (relating to application for license).

Part IX Ch. 68–72 Condos, etc.

(9)   Become the subject of an order of the department denying, suspending or revoking a license under the provisions of any other law administered by the department.

Part VIII Ch. 64–67 L/T

(8)  Failed to comply with the requirements of this chapter to make and keep records prescribed by regulation, statement of policy or order of the department, to produce records required by the department or to file financial reports or other information that the department by regulation, statement of policy or order may require.

Part VII Ch. 57–63 Litigation

(5)   Permanently or temporarily been enjoined by a court of competent jurisdiction from engaging in or continuing conduct or a practice involving an aspect of the mortgage loan business.

Part VI Ch. 49–56 Taxation

(3)  Engaged in dishonest, fraudulent or illegal practices or conduct in a business or unfair or unethical practices or conduct in connection with the mortgage loan business.

Part V Ch. 41–48A Zoning, etc.

(1)   Made a material misstatement in an application or any report or submission required by this chapter or any department regulation, statement of policy or order.

Part IV Ch. 36–40 Insurance

§ 6139.   Suspension, revocation or refusal. (a)  Departmental action.—The department may suspend, revoke or refuse to renew a license issued under this chapter if any fact or condition exists or is discovered which, if it had existed or had been discovered at the time of filing of the application for the license, would have warranted the department in refusing to issue the license or if a licensee or director, officer, partner, employee, mortgage originator or owner of a licensee has:

Part III Ch. 23–35 Mortgages

(e)  Appeals.—A person aggrieved by a decision of the commission may appeal the decision under 2 Pa.C.S. Ch. 7 Subch. A (relating to judicial review of Commonwealth agency action).

Part II Ch. 15–22 Deeds

(d)  Final orders.—A decision of the commission, or an unappealed order of the department, shall be a final order of the department and shall be enforceable in a court of competent jurisdiction. The department may publish final adjudications issued under this section, subject to redaction or modification to preserve confidentiality. The department shall regularly report violations of this chapter, enforcement actions and other relevant information to the Nationwide Mortgage Licensing System and Registry.

Part I Ch. 1–14 Brokers

(c)  Injunctions.—The department may maintain an action for an injunction or other process against a person to restrain and prevent the person from engaging in an activity violating this chapter.

Table of Contents

PART III

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§ 6140

MORTGAGE LOAN INDUSTRY LICENSING

(12)  Become insolvent, meaning that the liabilities of the applicant or licensee exceed the assets of the applicant or licensee or that the applicant or licensee cannot meet the obligations of the applicant or licensee as they mature or is in such financial condition that the applicant or licensee cannot continue in business with safety to the customers of the applicant or licensee. (13)   Failed to complete the requirements of section 6131.1 (relating to prelicensing and continuing education). (14)  In the case of a mortgage broker, mortgage lender or mortgage loan correspondent, conducted the mortgage loan business through an unlicensed mortgage originator. (15)  Failed to comply with the terms of any agreement under which the department authorizes a licensee to maintain records at a place other than the licensee’s principal place of business. (b)  Reinstatement.—The department may reinstate a license which was previously suspended, revoked or denied renewal if all of the following exist: (1)   The condition which warranted the original action has been corrected to the department’s satisfaction. (2)  The department has reason to believe that the condition is not likely to occur again. (3)   The licensee satisfies all other requirements of this chapter. § 6140.  Penalties. (a)   Persons operating without licenses.—A person subject to the provisions of this chapter and not licensed by the department who violates any provision of this chapter or who commits any action which would subject a license to suspension, revocation or nonrenewal under section 6139 (relating to suspension, revocation or refusal) may be fined by the department up to $10,000 for each offense. (b)   Violation by licensee.—A person licensed under this chapter or director, officer, owner, partner, employee, mortgage originator or agent of a licensee who violates a provision of this chapter or who commits any action which would subject the licensee to suspension, revocation or nonrenewal under section 6139 may be fined by the department up to $10,000 for each offense. § 6141.   Mortgage servicers. (a)  Regulatory coordination.—In order to implement this chapter as applicable to mortgage servicers, the following apply: (1)   Subject to paragraph (2), the department shall promulgate regulations which effectively incorporate the Consumer Financial Protection Bureau’s mortgage servicer regulations at 12 CFR Pt. 1024, Subpt. C (relating to mortgage servicing), other than 12 CFR 1024.30 (relating to scope). (2)   When the Federal regulations under paragraph (1) are altered, the department shall promulgate regulations making the appropriate incorporation. (3)  Regulations under this subsection shall not be subject to any of the following: (i)   Sections 201, 202, 203, 204 and 205 of the act of July 31, 1968 (P.L.769, No.240), referred to as the Commonwealth Documents Law. (ii)   Sections 204(b) and 301(10) of the act of October 15, 1980 (P.L.950, No.164), known as the Commonwealth Attorneys Act. (iii)   The act of June 25, 1982 (P.L.633, No.181), known as the Regulatory Review Act.

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Ch. 27

Part III Ch. 23–35 Mortgages

Sec.

6151. Applicability. 6152. Relationship to other laws. 6153. Preservation of existing contracts. 6154. Procedure for determination of noncompliance with Federal law (Repealed).

(1)   Any mortgage loan which is: (i)   negotiated, offered or otherwise transacted within this Commonwealth, in whole or in part, whether by the ultimate lender or any other person; (iii)  notwithstanding the place of execution, secured by a dwelling or residential real estate located in this Commonwealth. (2)  Any person who engages in the mortgage loan business in this Commonwealth.

(2)   This section applies to any ordinance, resolution or regulation pertaining to financial or lending activity, including any ordinance, resolution or regulation: (i)   disqualifying a person from doing business with a political subdivision based upon financial or lending activity; or

Index

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Part IX Ch. 68–72 Condos, etc.

(iii)   originates, purchases, sells, assigns, securitizes or services any property interest or obligation created by a financial transaction or loan made, executed or originated by a person referred to in subparagraph (i) or (ii) or assists or facilitates such a transaction or loan.

Part VIII Ch. 64–67 L/T

(ii)  is subject to the jurisdiction or regulatory supervision of the Board of Governors of the Federal Reserve System, the Office of the Comptroller of the Currency, the Office of Thrift Supervision, the National Credit Union Administration, the Federal Deposit Insurance Corporation, the Federal Trade Commission or the United States Department of Housing and Urban Development; or

Part VII Ch. 57–63 Litigation

(i)  is subject to the jurisdiction of the department, including activities subject to this chapter;

Part VI Ch. 49–56 Taxation

§ 6152.   Relationship to other laws. The following apply: (1)   A political subdivision may not enact or enforce any ordinance, resolution or regulation pertaining to the financial or lending activities of a person that:

Part V Ch. 41–48A Zoning, etc.

(ii)   made or executed within this Commonwealth; or

Part IV Ch. 36–40 Insurance

§ 6151.  Applicability. The provisions of this chapter shall apply to:

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SUBCHAPTER E MISCELLANEOUS PROVISIONS

Part I Ch. 1–14 Brokers

(b)   Failure of regulatory coordination.—If an alteration of Federal regulations under subsection (a)(2) results in a complete lack of Federal regulations in the area, all of the following apply: (1)   The version of the Pennsylvania regulations in effect at the time of the alteration shall remain in effect for two years. (2)   During the time period under paragraph (1), the department shall promulgate replacement regulations.

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PART III

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§ 6153

MORTGAGE LOAN INDUSTRY LICENSING

(ii)   imposing reporting requirements or any other obligations upon a person regarding financial or lending activity. § 6153.   Preservation of existing contracts. Nothing contained in this chapter shall be construed to impair or affect first or secondary mortgage loans executed prior to the effective date of this chapter. § 6154.   Procedure for determination of noncompliance with Federal law (Repealed).

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Table of Contents

CHAPTER 27A Part I Ch. 1–14 Brokers

PRIVATE TRANSFER FEE OBLIGATION ACT 68 Pa.C.S. §§ 8101- 8107 Short title of chapter Intent Definitions Prohibition Liability for violation Disclosure Notice requirements for existing private transfer fee obligations

Part II Ch. 15–22 Deeds

§ 8101. § 8102. § 8103. § 8104. § 8105. § 8106. § 8107.

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383

Part IX Ch. 68–72 Condos, etc.

(1)   Any consideration payable by or on behalf of the grantee to the grantor for the interest in real property being transferred, including any subsequent additional consideration for the property payable by or on behalf of the grantee based upon any subsequent appreciation, development or sale of the property, if the additional consideration is payable on a one-time basis only and the obligation to make the payment does not bind successors in title to the property.

Part VIII Ch. 64–67 L/T

“Private transfer fee.” A fee or charge payable upon the transfer of an interest in real property, or payable for the right to make or accept the transfer, if the obligation to pay the fee or charge runs with title to the property or otherwise binds subsequent owners of property, regardless of whether the fee or charge is a fixed amount or is determined as a percentage of the value of the property, the purchase price or other consideration given for the transfer. The following are not private transfer fees for purposes of this chapter:

Part VII Ch. 57–63 Litigation

“Payee.” A person that claims the right to receive or collect a private transfer fee payable under a private transfer obligation.

Part VI Ch. 49–56 Taxation

“Financial institution.” A bank, savings association or operating subsidiary of a bank or savings association, a credit union, an association authorized by law to engage in the mortgage loan business or an assignee of a mortgage, mortgage note or other rights of a financial institution.

Part V Ch. 41–48A Zoning, etc.

§ 8103.  Definitions The following words and phrases when used in this chapter shall have the meanings given to them in this section unless the context clearly indicates otherwise:

Part IV Ch. 36–40 Insurance

§ 8102.  Intent The General Assembly finds and declares that the public policy of this Commonwealth favors the marketability of real property and the transferability of interests in real property free of title defects or unreasonable restraints on alienation. The General Assembly further finds and declares that private transfer fee obligations violate this public policy by impairing the marketability and transferability of real property and by constituting an unreasonable restraint on alienation regardless of the duration of the obligation to pay a private transfer fee, the amount of a private transfer fee or the method by which any private transfer fee is created or imposed. Thus, the General Assembly finds and declares that a private transfer fee obligation shall not run with the title to property or otherwise bind subsequent owners of property under any common law or equitable principle.

Part III Ch. 23–35 Mortgages

§ 8101.   Short title of chapter This chapter shall be known and may be cited as the Private Transfer Fee Obligation Act.

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§ 8103

PRIVATE TRANSFER FEE OBLIGATION ACT

For the purposes of this paragraph, an interest in real property may include a separate mineral estate and its appurtenant surface access rights. (2)   Any commission payable to a licensed real estate broker for the transfer of real property pursuant to an agreement between the broker and the grantor or the grantee, including, but not limited to, any subsequent additional commission for that transfer payable by the grantor or the grantee based upon any subsequent appreciation, development or sale of the property. (3)   Any interest, charge, fee or other amount payable to a lender or financial institution pursuant to a mortgage, deed of trust, lien or security interest in or against real property, including, but not limited to, any fee payable for consenting to an assumption of a loan or a transfer of the real property subject to the mortgage, deed of trust, lien or security interest or any fee or charge payable for estoppel letters or certificates and any shared appreciation interest or profit participation or other consideration payable to the lender or financial institution. (4)  Any rent, reimbursement, charge, fee or other amount payable by a lessee to a lessor under a lease, including, but not limited to, any fee payable to the lessor for consenting to an assignment, subletting, encumbrance or transfer of the lease. (5)  Any consideration payable to the holder of an option to purchase an interest in real property or the holder of a right of first refusal or first offer to purchase an interest in real property for waiving, releasing or not exercising the option or right upon the transfer of the real property to another person. (6)  Any tax, fee, charge, assessment, fine or other amount payable to or imposed by a governmental authority. (7)   Any fee, charge, assessment, dues, fine, contribution or other amount payable to a homeowners’, condominium, cooperative, manufactured home or property owners’ association and its agent pursuant to a declaration or covenant or law applicable to the association, including, but not limited to, fees or charges payable for estoppel letters or certificates, including resale certificates, issued by the association or its authorized agent. (8)   Any fee, charge, assessment, dues, fine, contribution or other amount, which is imposed by a declaration or covenant encumbering real property and which is payable solely to a nonprofit corporation, charitable association or charitable trust, that: (i)   has been in existence for at least two years; and (ii)  holds, on real property subject to the declaration or covenant or on real property included in the same development plan with the real property subject to the declaration or covenant: (A)  an agricultural conservation easement as defined in section 3 of the act of June 30, 1981 (P.L. 128, No. 43),1 known as the Agricultural Area Security Law; or (B)   a conservation easement as defined in section 3 of the act of June 22, 2001 (P.L. 390, No. 29),2 known as the Conservation and Preservation Easements Act. (9)   Any fee, charge, assessment, dues, fine, contribution or other amount pertaining solely to the purchase or transfer of a club membership relating to real property owned by the member, including, but not limited to, any amount

1. 3 P.S. § 903. 2. 32 P.S. § 5053.

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(10)   Any payment or other amount due for or upon the removal or extraction of timber, crops or minerals, including oil, gas and water, from real property.

“Transfer.” The sale, gift, conveyance, assignment, inheritance or other transfer of an ownership interest in real property located in this Commonwealth.

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385

Part IX Ch. 68–72 Condos, etc.

(b) Recovery upon failure to disclose.—Where a private transfer fee obligation is not disclosed under subsection (a) and a buyer subsequently discovers the existence of the private transfer fee obligation after title to the property has passed to the buyer, the buyer may be awarded:

Part VIII Ch. 64–67 L/T

§ 8106.  Disclosure (a) General rule.—A contract for the sale of real property subject to a private transfer fee obligation shall include a provision disclosing the existence of that obligation, a description of the obligation and a statement that private transfer fee obligations are subject to certain restrictions under this chapter. A contract for the sale of real property that does not conform to the requirements of this section shall not be enforceable by the seller against the buyer, nor shall the buyer be liable to the seller for damages under the contract. For purposes of this section, “buyer” shall include all subsequent buyers and “seller” shall include payees. The buyer under a contract that fails to comply with this section shall be entitled to the return of all deposits made in connection with the sale of the real property.

Part VII Ch. 57–63 Litigation

Where an agent acts on behalf of a disclosed principal to record or secure a private transfer fee obligation, liability shall be assessed to the principal, rather than the agent.

Part VI Ch. 49–56 Taxation

(2) the attorney fees, expenses and costs incurred by a party to the transfer or mortgagee of the real property to recover any private transfer fee paid or in connection with an action to quiet title.

Part V Ch. 41–48A Zoning, etc.

(1) the damages resulting from the imposition of the private transfer fee obligation on the transfer of an interest in the real property, including, but not limited to, the amount of any transfer fee paid by a party to the transfer; and

Part IV Ch. 36–40 Insurance

§ 8105.   Liability for violation A person who records or enters into an agreement imposing a private transfer fee obligation in his favor after the effective date of this chapter may be liable for the following:

Part III Ch. 23–35 Mortgages

§ 8104.  Prohibition A private transfer fee obligation recorded or entered into in this Commonwealth on or after the effective date of this chapter does not run with the title to real property and is not binding on or enforceable at law or in equity against a subsequent owner, purchaser or mortgagee of an interest in real property as an equitable servitude or otherwise. A private transfer fee obligation recorded or entered into in this Commonwealth before the effective date of this chapter is presumed valid and enforceable, provided that it complies with the provisions of sections 8106 (relating to disclosure) and 8107 (relating to notice requirements for existing private transfer fee obligations) and all other applicable law.

Part II Ch. 15–22 Deeds

“Private transfer fee obligation.” An obligation arising under a declaration or covenant recorded against the title to real property, or under any other contractual agreement or promise, whether recorded, that requires or purports to require the payment of a private transfer fee upon a subsequent transfer of an interest in the real property.

Part I Ch. 1–14 Brokers

determined by reference to the value, purchase price or other consideration given for the transfer of the real property.

Table of Contents

PART III

12/22/21 10:45 AM

§ 8107

PRIVATE TRANSFER FEE OBLIGATION ACT

(1) the damages resulting from the failure to disclose the private transfer fee obligation, including, but not limited to, the amount of any private transfer fee paid by the buyer, or the difference between: (i) the market value of the real property if it were not subject to a private transfer fee obligation; and (ii) the market value of the real property as subject to a private transfer fee obligation; and (2) the attorney fees, expenses and costs incurred by the buyer in seeking the buyer’s remedies under this subsection. (c) Waiver.—A provision in a contract for sale of real property that purports to waive the rights of a buyer under this section shall be void. § 8107.   Notice requirements for existing private transfer fee obligations (a) Notice of private transfer fee obligation.—The holder of a private transfer fee obligation imposed prior to the effective date of this chapter shall record, within six months after the effective date of this chapter, against the real property subject to the private transfer fee obligation, a separate document in the office of the recorder of deeds for each county in which the real property is located that complies with all of the following requirements: (1) The title of the document shall be “Notice of Private Transfer Fee Obligation” in at least 14-point boldface type. (2) The amount, if the private transfer fee is a flat amount, or the percentage of the sales price constituting the cost of the private transfer fee, or other basis by which the private transfer fee is to be calculated. (3) If the real property is residential property, actual dollar cost examples of the private transfer fee for a home priced at $250,000, $500,000 and $750,000. (4) The date or circumstances under which the private transfer fee obligation expires, if any. (5) The purpose for which the funds from the private transfer fee obligation will be used. (6) The name of the payee and specific contact information regarding where the funds are to be sent. (7) The acknowledged signature of the holder, or a representative of the holder. (8) The legal description of the real property purportedly burdened by the private transfer fee obligation. (9) Where there is more than one person or entity who claims the right to receive or collect a private transfer fee under a private transfer fee obligation, those persons or entities shall designate a single person or entity as the payee for purposes of that private transfer fee obligation. (b) Amendment.—The payee may file an amendment to the notice of private transfer fee containing new contact information, but the amendment must contain the recording information of the notice of private transfer fee which it amends and the legal description of the real property burdened by the private transfer fee obligation. (c) Failure to file notice.—If a payee fails to file the notice required under subsection (a), the grantor of real property burdened by the private transfer fee obligation may proceed with the conveyance of any interest in the real property to any grantee and in so doing shall be conclusively deemed to have acted in good

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Part I Ch. 1–14 Brokers Part II Ch. 15–22 Deeds Part III Ch. 23–35 Mortgages Part IV Ch. 36–40 Insurance Part V Ch. 41–48A Zoning, etc. Part VI Ch. 49–56 Taxation Part VII Ch. 57–63 Litigation

faith and shall not be subject to any obligations under the private transfer fee obligation. In such event, the private transfer fee obligation shall become null and void, and the real property shall be conveyed free and clear of the private transfer fee and private transfer fee obligation. (d) Defective notice.—If a payee records a materially defective or misleading notice under subsection (a), then a grantor, on recording of an affidavit under subsection (f), may convey an interest in the real property to a grantee without payment of the private transfer fee and shall not be subject to any further obligations under the private transfer fee obligation. In such event, the private transfer fee obligation shall become null and void, and the real property shall be conveyed free and clear of the private transfer fee and private transfer fee obligation. (e) Failure to provide statement of private transfer fee.—Should a payee fail to provide a written statement of the private transfer fee payable within 30 days of the date of a written request for the same sent to the address shown in the notice of private transfer fee, then a grantor, on recording of an affidavit under subsection (f), may convey an interest in the real property to a grantee without payment of the private transfer fee and shall not be subject to any further obligations under the private transfer fee obligation. In such event, the private transfer fee obligation shall become null and void, and the real property shall be conveyed free and clear of the private transfer fee and private transfer fee obligation. (f) Affidavit.—An affidavit stating the facts enumerated in subsection (g)(1) or (2) shall be recorded in the office of the recorder of deeds for each county in which the real property is situated prior to or simultaneously with a conveyance pursuant to subsection (c), (d) or (e) of real property unburdened by a private transfer fee obligation. An affidavit filed under this subsection shall state that the affiant has actual knowledge of and is competent to testify to the facts in the affidavit and shall include the legal description of the real property burdened by the private transfer fee obligation, the name of the person appearing by the record to be the owner of the real property at the time of the signing of the affidavit, a reference by recording information to the instrument of record containing the private transfer fee obligation and an acknowledgment that the affiant is testifying under penalty of perjury. (g) Effect of affidavit.—An affidavit filed under subsection (f) shall constitute prima facie evidence that either: (1) the payee has failed to comply with subsection (a) in the respects stated in the affidavit; or (2) a request for the written statement of the private transfer fee was sent to the payee at the address shown on the notice of private transfer fee and the payee failed to provide the written statement of the private transfer fee payable within 30 days of the date of the notice sent to the address shown in the notification.

Table of Contents

PART III

Part VIII Ch. 64–67 L/T Part IX Ch. 68–72 Condos, etc.

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CHAPTER 28 MORTGAGE BANKERS AND BROKERS AND CONSUMER EQUITY PROTECTION ACT 63 P.S. § 456.101 to 63 P.S. § 456.3101

Sec. § § § § § § § § § § § § § § §

101. Short title 102. Definitions 301–318 Repealed [see Chapter 27 supra] 501. Scope 502. Legislative findings 503. Definitions 504. Relationship to other laws 511. Limitations on covered loan terms 512. Restricted acts and practices 513. Additional requirements 521. Enforcement 522. Civil liability 523. Information sharing 524. Regulations 3101. Effective date

§ 101.  Short title This act shall be known and may be cited as the Mortgage Bankers and Brokers and Consumer Equity Protection Act. § 102.  Definitions The following words and phrases when used in this act shall have the meanings given to them in this section unless the context clearly indicates otherwise: “Department.” The Department of Banking of the Commonwealth. §§ 301–318 REPEALED—see MORTGAGE LOAN INDUSTRY LICENSING AND CONSUMER PROTECTION, 7 Pa.C.S. 6101–6153, Chapter 27 above

CONSUMER EQUITY PROTECTION § 501.  Scope This chapter deals with consumer equity protection. § 502.  Legislative findings The General Assembly finds and declares as follows: (1)   All citizens are entitled to fair access to credit and the ability to share in the American dream of homeownership, including those whose financial or other personal circumstances make them vulnerable to predatory lenders who could take advantage of them by making or arranging high-cost loans that borrowers may not be able to repay and by refinancing mortgage loans with added fees that result in the borrower’s equity being stripped. (2)  The subprime lending market provides loans to many borrowers who have impaired credit, and this lending market performs a significant service to citizens of this Commonwealth, particularly those in distressed urban areas. (3)  Legislation affecting the subprime market should not be overly broad and should restrict only those relatively few lenders who are purposefully engaged in patterns and practices of unfair treatment to vulnerable consumers commonly referred to as predatory lending.

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Ch. 28

“Creditor.” A person considered a creditor pursuant to 12 CFR § 226.2(a)(17) (relating to definitions and rules of construction).

“Lender.” Any creditor that in any 12-month period originates at least one covered loan. The creditor to whom the covered loan is initially payable, either on the face of the note or contract or by agreement when there is no note or contract, shall be deemed to be the lender.

Part IX Ch. 68–72 Condos, etc. Index

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389

Part VII Ch. 57–63 Litigation

1. 63 P.S. § 456.101 et seq. 2. 7 P.S. § 6601 et seq.

Part VI Ch. 49–56 Taxation

“Median family income.” Median family income for the Metropolitan Statistical Area (MSA) as defined by the Director of the United States Office of Management and Budget in which property which secures a covered loan is located or, for loans secured by property not located within an MSA, the nonmetropolitan median family income for the Commonwealth as reported in the most recent estimates made available by the United States Department of Housing and Urban Development at the time a loan application is received or the latest such estimates made available in the preceding calendar year, whichever amount is lower. To the extent such information is not readily available from the United States Department of Housing and Urban Development in a form suitable for use by lenders, the Department of Banking shall periodically publish or otherwise make available to lenders median family income information for MSAs and nonmetropolitan areas that may be relied upon by lenders for purposes of this chapter. “Mortgage broker.” A person required to be licensed as a mortgage broker, limited mortgage broker or loan correspondent pursuant to the act of December 22, 1989 (P.L. 687, No. 90),1 known as the Mortgage Bankers and Brokers Act, or as a secondary mortgage loan broker pursuant to the act of December 12, 1980 (P.L. 1179, No. 219),2 known as the Secondary Mortgage Loan Act. “Municipality.” A county, city, borough, incorporated town or township.

Part V Ch. 41–48A Zoning, etc.

“Gross income.” An obligor’s gross income as set forth on a credit application, the obligor’s financial statement, a credit report, financial information provided to the lender by or on behalf of the obligor or as determined by any other reasonable means by a lender.

Part IV Ch. 36–40 Insurance

“Covered loan.” A consumer credit mortgage loan transaction involving property located within this Commonwealth, that is considered a mortgage under section 103(aa) of the Truth in Lending Act (Public Law 90-321 15 U.S.C. § 1602(aa)) and regulations adopted pursuant thereto by the Federal Reserve Board, including 12 CFR § 226.32 (relating to requirements for certain closedend home mortgages), for which the original principal balance of the loan is less than $100,000.

Part III Ch. 23–35 Mortgages

“Bridge loan.” A loan with a maturity of less than 18 months which only requires payments of interest until such time as the entire unpaid balance is due and payable.

Part II Ch. 15–22 Deeds

“Affiliate.” Any entity that controls, is controlled by or is under common control with another entity as determined under the Bank Holding Company Act of 1956 (70 Stat. 133, 12 U.S.C. § 1841 et seq.).

Part I Ch. 1–14 Brokers

(4)   The legitimate conventional and subprime markets should not be subject to the same restrictions, prohibitions, remedies and penalties as the high-cost loans which meet thresholds that distinguish them from loans in other markets. § 503.  Definitions The following words and phrases when used in this chapter shall have the meanings given to them in this section unless the context clearly indicates otherwise:

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PART III

12/22/21 10:45 AM

§ 504

MORTGAGE BANKERS AND BROKERS

“Obligor.” Each obligor, co-obligor, cosigner or guarantor obligated to repay a covered loan. “Person.” A corporation, partnership, limited liability company, business trust or any other common enterprise or undertaking involving two or more persons, association of two or more persons, estate, trust, foundation or natural person. “Political subdivision.” A municipality, school district, vocational school district or municipal authority. “Principal balance.” The amount of a promissory note secured by a mortgage in a consumer credit mortgage transaction. “Servicer.” A servicer as defined in section 6(i)(2) of the Real Estate Settlement Procedures Act of 1974 (Public Law 93-533, 12 U.S.C. § 2605(i)(2)) § 504.  Relationship to other laws (a)  General rule.—All political subdivisions of this Commonwealth, including home rule municipalities, shall be prohibited from enacting and enforcing ordinances, resolutions and regulations pertaining to the financial or lending activities of persons who: (1)  are subject to the jurisdiction of the department, including activities subject to this chapter; (2)   are subject to the jurisdiction or regulatory supervision of the Board of Governors of the Federal Reserve System, the Office of the Comptroller of the Currency, the Office of Thrift Supervision, the National Credit Union Administration, the Federal Deposit Insurance Corporation, the Federal Trade Commission or the United States Department of Housing and Urban Development; or (3)   that originate, purchase, sell, assign, securitize or service property interests or obligations created by financial transactions or loans made, executed or originated by persons referred to in paragraph (1) or (2) or assist or facilitate such transactions. The requirements of this subsection shall apply to all ordinances, resolutions and regulations pertaining to financial or lending activities, including any ordinances, resolutions or regulations disqualifying persons from doing business with a political subdivision based upon financial or lending activities or imposing reporting requirements or any other obligations upon persons regarding financial or lending activities. (b)  Corporate powers.—Nothing in this chapter shall be deemed to limit the corporate powers of incorporated institutions or their subsidiaries subject to the act of November 30, 1965 (P.L. 847, No. 356),3 known as the Banking Code of 1965, or to impose conditions, limitations or restrictions upon the exercise of such powers contrary to the provisions of section 2014 of the Banking Code of 1965. (c)  Preemption.—Any provision of this chapter preempted by Federal law with respect to a national bank or Federal savings association shall not apply to the same extent to an operating subsidiary of a national bank or Federal savings association which satisfies the requirements for operating subsidiaries established in 12 CFR § 5.34 (relating to operating subsidiaries) or 559.3 (relating to what are the characteristics of, and what requirements apply to, subordinate organizations of Federal savings associations). (d)  Interpretation.—The provisions of this chapter shall be interpreted and applied to the fullest extent practical in a manner consistent with applicable Federal laws and regulations, policies and orders of Federal regulatory agencies 3. 7 P.S. § 101 et seq. 4. 7 P.S. § 201.

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PART III

and shall not be deemed to constitute an attempt to override Federal law.

(1)  by default; (2)   pursuant to a due-on-sale provision; (3)   where there is fraud or material misrepresentation by an obligor in connection with the loan; or

(f)   Limitations on prepayment fees.—The following limitation on prepayment fees shall be observed: (1)   A prepayment fee or penalty shall be permitted only during the first 60 months after the date of execution of a covered loan.

(3)  No prepayment fee or penalty may be charged on a refinancing of a covered loan with a covered loan if the covered loan being refinanced is owned by the refinancing lender at the time of such refinancing. (a)   No lending without cautionary notice.—A lender may not make a covered loan unless the lender or a mortgage broker has given the following notice, or substantially similar notice, in writing to the obligor not later than the time the notice is required under the notice provision contained in 12 CFR 226.31(c) (relating to general rules) as amended from time to time:

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Index

391

Part IX Ch. 68–72 Condos, etc.

§ 512.  Restricted acts and practices

Part VIII Ch. 64–67 L/T

(2)   A lender shall not include a prepayment fee in a covered loan unless it also makes available a loan product without a prepayment fee.

Part VII Ch. 57–63 Litigation

(e)   No advance payments.—No covered loan may include terms under which any periodic payments required under the loan are paid in advance from the loan proceeds.

Part VI Ch. 49–56 Taxation

(d)   No increased interest rate upon default.—No covered loan may contract for any increase in the interest rate as a result of a default. This provision shall not apply to periodic interest rate changes in a variable rate loan otherwise consistent with the provisions of the loan agreement provided the change in the interest rate is not occasioned by the event of default or permissible acceleration of the indebtedness.

Part V Ch. 41–48A Zoning, etc.

(c)   No negative amortization.—Except for loans to obligors with gross income in excess of 150% of median family income, no covered loan may contract for a payment schedule with regular periodic payments that cause the principal balance to increase. This subsection shall not prohibit negative amortization as a consequence of a temporary forbearance or restructure consented to by the obligor.

Part IV Ch. 36–40 Insurance

(4)  where there is any action or inaction by the obligor that adversely affects the lender’s security for the loan or any rights of the lender in such security.

Part III Ch. 23–35 Mortgages

(b)   No call provision.—No covered loan may contain a call provision that permits the lender in its sole discretion to accelerate the indebtedness. This prohibition does not apply when repayment of the loan has been accelerated:

Part II Ch. 15–22 Deeds

(a)   Limitation of balloon payment.—No covered loan may contract for a scheduled payment that is more than twice as large as the average of earlier scheduled monthly payments unless such balloon payment becomes due and payable not less than 120 months after the date of the loan. This prohibition does not apply when the payment scheduled is adjusted to account for the seasonal or irregular income of the obligor or if the purpose of the loan is a bridge loan connected with or related to the acquisition or construction of a dwelling intended to become the obligor’s principal dwelling.

Part I Ch. 1–14 Brokers

§ 511.  Limitations on covered loan terms

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§ 512

MORTGAGE BANKERS AND BROKERS NOTICE TO BORROWER

If you obtain this loan, the lender will have a mortgage on your home. You could lose your home and any money you put into it if you do not meet your obligations under the loan. Mortgage loan rates and closing costs and fees vary based on many factors, including your particular credit and financial circumstances, your employment history, the loan-to-value requested and the type of property that will secure your loan. The loan rate and fees could also vary based on which lender or broker you select. As an obligor, you should shop around and compare loan rates and fees. You should also consider consulting a qualified independent credit counselor or other experienced financial advisor regarding the rate, fees and provisions of this mortgage loan before you proceed. A list of qualified counselors is available by contacting the Pennsylvania Housing Finance Agency. You are not required to complete this loan agreement merely because you have received these disclosures or have signed a loan application. Remember, property taxes and homeowner’s insurance are your responsibility. Not all lenders provide escrow services for these payments. You should ask your lender about these services. Also, your payments on existing debts contribute to your credit ratings. You should not accept any advice to ignore your regular payments to your existing creditors. Provision of a consumer information pamphlet or other publication prepared by the Office of Consumer Protection of the Office of Attorney General regarding covered loans shall be deemed to constitute a substantially similar notice. (b)  No lending without due regard to repayment ability.—A lender shall not engage in a pattern or practice of making covered loans based on the consumer’s collateral without regard to the consumer’s repayment ability, including, but not limited to, the consumer’s current and expected income, current obligations as disclosed to the lender by the loan application and the consumer’s credit report, employment status and other financial resources other than the obligor’s equity in the dwelling which secures repayment of the loan. An obligor shall be presumed to be able to make the scheduled payments to repay the obli­gation if, at the time the loan is consummated, the obligor’s scheduled monthly payments as disclosed to the lender by the loan application and the consumer’s credit report do not exceed 50% of the obligor’s monthly gross income. For purposes of determining median income, the income of all obligors shall be considered. The requirements of this subsection shall apply only to obligors whose income, as reported on the loan application, is no greater than 120% of the median family income. No presumption shall arise that an obligor is not able to make the scheduled payments if the obligor’s scheduled monthly payments exceed 50% of the obligor’s monthly gross income as determined pursuant to this subsection. (c)   Refinancing of existing covered loan with a new covered loan.—A lender may not charge any points in connection with a covered loan if the proceeds of the covered loan are used to refinance an existing covered loan held by the lender and the last financing was within one year of the current refinancing; provided, however, this provision shall not prohibit a lender from charging points in connection with any additional proceeds paid to or for the account of the obligor, other than charges or costs attributable to the covered loan, in connection with the refinancing. For purposes of this subsection, additional proceeds shall be defined as the amount over and above the current principal balance of the existing covered loan; provided, however, in the event the lender refunds all the

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Part I Ch. 1–14 Brokers Part II Ch. 15–22 Deeds Part III Ch. 23–35 Mortgages Part IV Ch. 36–40 Insurance Part V Ch. 41–48A Zoning, etc. Part VI Ch. 49–56 Taxation

points on the covered loan being refinanced, the additional proceeds shall be the principal balance of the new covered loan. (d)  No refinancing of certain low-rate loans.—A lender shall not replace or consolidate a zero interest rate or low-rate loan made by a governmental or nonprofit lender with a covered loan within the first ten years of the zero interest or low-rate loan unless the current holder of the loan consents in writing to the financing. For purposes of this subsection, a low-rate loan shall be defined as a loan that carries a current interest rate two percentage points or more below the current yield on United States Treasury securities with a comparable maturity. (e)   Restrictions on covered loan proceeds to pay home improvement contracts.—A lender shall not pay a contractor under a home improvement contract from the proceeds of a covered loan other than by an instrument payable to the obligor or jointly to the obligor and the contractor or, at the election of the obligor, through a third-party escrow agent in accordance with terms established in a written agreement signed by the obligor, the lender and the contractor prior to the disbursement of funds to the contractor. (f)  Restrictions on single premium credit insurance.—A lender shall not sell any individual or group credit life, accident and health or unemployment insurance product on a prepaid single premium basis in conjunction with a covered loan unless the following conditions are met: (1)   After the expiration of 18 months from the date of enactment of this chapter and for an additional six-month period that may be necessary in order to secure any necessary approvals for a monthly premium credit insurance product by the Insurance Department, if a lender offers any individual or group credit life, accident and health and unemployment insurance products purchased on a prepaid single premium basis in conjunction with a covered loan, the lender shall offer the obligor the option of purchasing all such insurance on a monthly premium basis. (2)   A lender shall not sell credit life, accident and health or unemployment insurance products in conjunction with a covered loan other than where the insurance premiums are calculated, earned and paid on a monthly or other regular periodic basis without providing a separate disclosure with a copy acknowledged by the insured no later than the time of closing in a form substantially similar to the following:

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PART III

INSURANCE NOTICE TO BORROWER(S)

At any time you have the right to cancel any or all such policies purchased in conjunction with this loan. You may cancel your policy or policies by signing and returning a copy of this notice to your lender or you may contact your lender directly.

YOU MUST CANCEL WITHIN 30 DAYS OF THE DATE OF THE LOAN TO RECEIVE A FULL REFUND.

gtb-parealestate22-all.indb 393

Index

393

Part IX Ch. 68–72 Condos, etc.

If you cancel your insurance within 30 days of the date of your loan, then you will receive either a full refund or a credit against your loan account. If you cancel your insurance at any other time, you will receive either a refund or credit against your loan account of any unearned premium.

Part VIII Ch. 64–67 L/T

This insurance is NOT required as a condition of closing this loan and has been included with the loan at your request.

Part VII Ch. 57–63 Litigation

You have elected to purchase credit life, accident and health and/or unemployment insurance in conjunction with this mortgage loan. The cost of this insurance is being prepaid and financed at the interest rate provided for in the loan.

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§ 513

MORTGAGE BANKERS AND BROKERS CREDIT INSURANCE CANCELLATION

I (we) request that the lender cancel the _____ insurance that I (we) purchased in conjunction with my (our) mortgage loan dated _____. Date Borrower ACKNOWLEDGMENT OF RECEIPT I (we) acknowledge receipt of the above notice. Date Borrower (3)  If an obligor elects to cancel, within 30 days of the date of the covered loan, any individual or group credit life, accident and health or unemployment insurance product purchased on prepaid single premium basis in conjunction with a covered loan, the lender or the insurance company who sold the insurance or the insurance company providing the product shall give the obligor either a full premium refund or a full premium credit against the unpaid loan balance. If the obligor elects to cancel any individual or group credit insurance purchased in conjunction with a covered loan at any other time, the refund or credit shall be computed as provided or permitted by State law. The lender or insurance company shall decide whether the return of premium shall be by means of credit to the account or by refund to the obligor. This subsection shall not apply to credit life, accident, health and unemployment insurance sold by the lender for which the obligor chooses the primary beneficiary. § 513.  Additional requirements (a)   Reporting to credit bureaus.—A lender or its servicer shall report at least quarterly both the favorable and unfavorable payment history information of the obligor on payments due to the lender on a covered loan to a nationally recognized consumer credit reporting agency. This subsection shall not prevent a lender or its servicer from agreeing with the obligor not to report payment history information in the event of a resolved or unresolved dispute with an obligor and shall not apply to covered loans held or serviced by a lender for less than 90 days. (b)  Verification of broker licensure.—A lender shall verify that each mortgage broker with whom it does business in connection with covered loans holds a license or other authorization currently in effect to do business within this Commonwealth. § 521.  Enforcement (a)  Enforcement.—The department may conduct examinations and investigations and issue subpoenas and orders to enforce the provisions of this chapter as provided by the act of May 15, 1933 (P.L. 565, No. 111),5 known as the Department of Banking Code, and with respect to a person licensed or subject to the following acts: (1)   Act of April 8, 1937 (P.L. 262, No. 66),6 known as the Consumer Discount Company Act. 5. 71 P.S. § 733-1 et seq. 6. 7 P.S. § 6201 et seq.

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Part IV Ch. 36–40 Insurance Part V Ch. 41–48A Zoning, etc. Part VI Ch. 49–56 Taxation Part VII Ch. 57–63 Litigation Part VIII Ch. 64–67 L/T Part IX Ch. 68–72 Condos, etc.

7. 7 P.S. § 101 et seq. 8. 7 P.S. § 6020-1 et seq. 9. 7 P.S. § 6601 et seq. 10. 63 P.S. § 456.101 et seq. 11. 2 P.S. § 501 et seq.

Index

395

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Part III Ch. 23–35 Mortgages

(c)  Subpoena.—In the event that a person fails to comply with a subpoena for documents or testimony issued by the department, the department may request an order from the Commonwealth Court requiring the person to produce the requested information. (d)  Administrative penalties.—If the department determines that a person has violated the provisions of this chapter, the department may do any combination of the following that it deems appropriate: (1)   Impose a civil penalty of up to $2,000 for each offense. The department may require the person to pay investigative costs, if any. (2)   Suspend, revoke or refuse to renew any license issued by the department. (3)   Prohibit or permanently remove an individual responsible for a violation of this chapter from working in his or her present capacity or in any other capacity related to activities regulated by the department. (4)   Order a person to cease and desist any violation of this chapter and to make restitution for actual damages to obligors. (5)   Impose such other conditions as the department deems appropriate. (e)  Hearings.—Any person aggrieved by a decision of the department and which has a direct interest in the decision may appeal the decision of the department to the Secretary of Banking. The appeal shall be conducted in accordance with 2 Pa.C.S. Ch. 5 Subch. A11 (relating to practice and procedure of Commonwealth agencies). (f)  Injunctions.—The department may maintain an action for an injunction or other process against any person to restrain and prevent the person from engaging in any activity violating this chapter. (g)  Final orders.—A decision of the Secretary of Banking shall be a final order of the department and shall be enforceable in a court of competent jurisdic-

Part II Ch. 15–22 Deeds

(b)   Examinations and reports.—The department may examine any instrument, document, account, book, record or file of a person originating or brokering a covered loan under this chapter. The department may recover the cost of such examinations from the person. A person originating or brokering covered loans shall maintain its records in a manner that will facilitate the department determining whether the person is complying with the provisions of this chapter and the regulations promulgated under this chapter. The department may require the submission of reports by persons originating or brokering covered loans which shall set forth such information as the department may require.

Part I Ch. 1–14 Brokers

(2)   Act of November 30, 1965 (P.L. 847, No. 356),7 known as the Banking Code of 1965. (3)  Act of December 14, 1967 (P.L. 746, No. 345),8 known as the Savings Association Code of 1967. (4)   Act of December 12, 1980 (P.L. 1179, No. 219),9 known as the Secondary Mortgage Loan Act. (5)   Act of December 22, 1989 (P.L. 687, No. 90),10 known as the Mortgage Bankers and Brokers Act. (6)   17 Pa.C.S. (relating to credit unions).

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§ 522

MORTGAGE BANKERS AND BROKERS

tion. The department shall publish the final adjudication issued in accordance with this section, subject to redaction or modification to preserve confidentiality. (h)  Appeals.—Any person aggrieved by a decision of the Secretary of Banking and which has a direct interest in the decision may appeal the decision in accordance with 2 Pa.C.S. Ch. 7 Subch. A12 (relating to judicial review of Commonwealth agency action). § 522.  Civil liability (a)  Damages for material violations.—If a lender purposefully engages in a pattern or practice of material violations of this chapter, an obligor on a covered loan may initiate a civil action to recover damages. (b)  Exclusive remedies.—The remedies provided in this subchapter shall be the sole and exclusive remedies for any violation of any provision of this chapter. Persons engaged in the purchase, sale, assignment, securitization or servicing of covered loans shall not be held liable for the action or inactions of persons originating such loans. § 523.  Information sharing The department may divulge documentary or other information pertaining to enforcement of this chapter to Federal or State banking regulatory agencies or Commonwealth agencies as may be necessary or appropriate for the enforcement of this chapter, as determined by the discretion of the Secretary of Banking. The department may enter into such information sharing agreements or other types of regulatory agreements with other Federal and State banking regulatory agencies as may be reasonably necessary or appropriate for the enforcement of this chapter, as determined by the discretion of the Secretary of Banking. § 524.  Regulations The department may promulgate regulations and statements of policy for the enforcement of this chapter, including regulations establishing rules of procedure for the conduct of hearings pursuant to this subchapter and standards to govern the imposition of civil penalties. § 3101.  Effective date This act shall take effect as follows: (1)  Sections 310(a) and (b) and 311(b) and (c)13 shall take effect immediately. (2)   The remainder of this act shall take effect in 180 days.14

12. 2 P.S. § 701 et seq. 13. 63 P.S. §§ 456.310, 456.311. 14. Enacted 2001, June 25, P.L. 621, No. 55

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CHAPTER 29

Part I Ch. 1–14 Brokers

MORTGAGE SATISFACTION 21 P.S. § 681 to 21 P.S. § 721-12

Chapter

Part II Ch. 15–22 Deeds

29.1  Satisfaction Generally    21 P.S. § 681 to 21 P.S. § 705 29.2   First Class City Mortgage Satisfaction    21 P.S. § 711 to 21 P.S. § 717 29.3   Second to Eighth Class County Mortgage Satisfaction    21 P.S. § 720-1 to 21 P.S. § 720-9 29.4   Mortgage Satisfaction Act    21 P.S. § 721-1 to 21 P.S. § 721-12

Part III Ch. 23–35 Mortgages Part IV Ch. 36–40 Insurance

CHAPTER 29.1 SATISFACTION GENERALLY 21 P.S. § 681 to 21 P.S. § 705

Sec.

Part V Ch. 41–48A Zoning, etc.

§ 681. Satisfaction of mortgage on margin of record or by satisfaction piece § 682. Fine for neglect § 683. Repealed § 684. Repealed § 685. Satisfaction of mortgage by prothonotary or recorder § 686. Repealed § 687. Repealed § 688. Satisfaction in case of presumption of payment from lapse of time § 689 to Repealed  699. § 700. Satisfaction of mortgages to commonwealth § 700.1. Presumption of release of mortgages held by commonwealth; satisfaction § 701. Power of attorney to recorder of deeds to enter satisfaction § 702. Validation of previous satisfactions § 703. Repealed § 704. Reserved § 705. Notice requirement

Part VI Ch. 49–56 Taxation Index

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Part IX Ch. 68–72 Condos, etc.

397

Part VIII Ch. 64–67 L/T

§ 682.  Fine for neglect And if such mortgagee, by himself or his attorney, shall not, within fortyfive days after request and tender made for his reasonable charges, return to the said office, and there make such acknowledgments as aforesaid, he, she or

Part VII Ch. 57–63 Litigation

§ 681.  Satisfaction of mortgage on margin of record or by satisfaction piece Any mortgagee of any real or personal estates in the Commonwealth, having received full satisfaction and payment of all such sum and sums of money as are really due to him by such mortgage, shall, at the request of the mortgagor, enter satisfaction either upon the margin of the record of such mortgage recorded in the said office or by means of a satisfaction piece, which shall forever thereafter discharge, defeat and release the same; and shall likewise bar all actions brought, or to be brought thereupon.

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§§ 683, 684

MORTGAGE SATISFACTION

they, neglecting so to do, shall for every such offense, forfeit and pay, unto the party or parties aggrieved, any sum not exceeding the mortgage-money, to be recovered in any Court of Record within this Commonwealth, by bill, complaint or information. §§ 683, 684.  Repealed. 1978, April 28, P.L. 202, No. 53 § 685.  Satisfaction of mortgage by prothonotary or recorder Hereafter in all cases where the amount due on any mortgage or judgment entered of record, together with interest and cost, shall have been paid to the legal holder or holders thereof, and the judgment bond, or note, or mortgage, together with the accompanying bonds, if any, duly endorsed in the presence of two witnesses, that the same are satisfied and discharged, shall be produced to the prothonotary or recorder having charge of the records of such mortgages and judgments respectively, it shall be the duty of such officer, for the fee of seventy-five cents in the case of a mortgage, and twenty-five cents in the case of a judgment, to enter satisfaction on the record of such liens, and to file among the papers in their respective offices the judgment, notes, bills, mortgages and bonds respectively, which shall remain filed thereafter, for the benefit of all parties interested therein: Provided, That no such satisfaction shall be entered until after a certificate from the president judge or the district judge of the proper county, allowing the same, which certificate shall also be produced and filed with the papers as aforesaid. §§ 686, 687.  Repealed. 1978, April 28, P.L. 202, No. 53 § 688.  Satisfaction in case of presumption of payment from lapse of time In all cases where the legal presumption of the payment of mortgages shall exist from lapse of time, and no satisfaction appears on the record thereof, it shall be lawful for the owner or owners of the mortgaged premises to apply by petition to the court of common pleas of the county where the mortgaged premises are situate, setting forth the premises, and also the name of the holder or holders of the mortgage, if known, and if not known then stating that fact, whereupon the said court shall direct the sheriff of the said county to serve a notice, stating the facts set forth in the petition, on the holder or holders of the said mortgage, if to be found in the said county, and, in case the parties aforesaid cannot be found in the said county, then the said sheriff shall give public notice as aforesaid, in one or more newspapers published within or nearest the said county, once a week for four weeks successively prior to the then next term after the petition as aforesaid shall have been presented, requiring said parties to appear at said term and answer the petition as aforesaid at which term, should any person or persons appear, claiming to be the holder or holders of the said mortgage, the said court shall enter a rule on the person or persons claiming to sue out a writ of scire facias to the next quarterly or monthly return day, to which it shall be lawful for any party to appear and defend as is now authorized by law, as to writs of scire facias, and in default of a compliance with the said rule, and in the event of a nonappearance of any person to answer the said petition as aforesaid, the said court, being satisfied of the truth of the said petition, are hereby authorized and required, at the same or any subsequent term of the said court, to decree and direct that satisfaction shall be entered on the record of the said mortgage by the recorder of the proper county, on payment of the costs due relative to the entry of said mortgage or any proceedings thereon; which said satisfaction so entered shall forever thereafter discharge, defeat and release the same, and shall likewise bar all actions brought or to be brought thereon, as fully and effectually to all intents and purposes as if the satisfaction had been entered by the legal holder or holders of the said mortgage. When a mortgage contains no fixed date of maturity or date of payment, it shall be deemed, for the purpose of having satisfaction entered on the record under the provisions of

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Ch. 29.1

§§ 689 to 699.  Repealed. 1978, April 28, P.L. 202, No. 53

Part VII Ch. 57–63 Litigation Part VIII Ch. 64–67 L/T Part IX Ch. 68–72 Condos, etc. Index

gtb-parealestate22-all.indb 399

Part VI Ch. 49–56 Taxation

399

Part V Ch. 41–48A Zoning, etc.

§ 702.  Validation of previous satisfactions All satisfactions of mortgages heretofore entered in good faith, at the instance of any mortgagee or assignee of record, on the record of any mortgagee, by virtue of an authorization acknowledging the receipt of the amount due on the mortgage, or a statement of the mortgagee’s or assignee’s desire to have said mortgage satisfied, or in any other manner other than by a satisfaction entered by the mortgagee or assignee of record personally or by the recorder of deeds or any other person acting under a letter or power of attorney duly executed and acknowledged, are hereby declared to be good and valid and to operate as a complete satisfaction of such mortgage, in like manner as if said mortgage had been personally satisfied by the mortgagee on the margin of the record as provided by law: Provided, That said acknowledgment of the receipt of the amount due, or a statement of the mortgagee’s or assignee’s desire to have said mortgage satisfied, shall have

Part IV Ch. 36–40 Insurance

§ 701.  Power of attorney to recorder of deeds to enter satisfaction In all cases where any owner or holder of a mortgage, having legal power to satisfy the same, has heretofore executed and delivered, or may hereafter execute and deliver, a power of attorney authorizing the recorder of deeds of the county in which such mortgage is recorded, in office at the time of such execution and delivery, by his official title to enter satisfaction of such mortgage upon the record, and such satisfaction has not been entered, such power of attorney when duly recorded shall be a sufficient authority to any subsequent recorder of deeds of the same county to enter satisfaction of such mortgage upon the record thereof.

Part III Ch. 23–35 Mortgages

§ 700.1.  Presumption of release of mortgages held by commonwealth; satisfaction In all cases where any mortgage against any real property is held by the Commonwealth for any purpose, either as mortgagee or as assignee, and no payment, claim or demand shall have been made on account of, or for, either the principal or any interest on such mortgage, or for the payment of any money or the performance of any other obligation secured thereby, for a period of fifty years, a release or discharge of such mortgage shall be presumed, and the Department of Justice may upon application of the owner or owners of the property bound by such mortgage enter satisfaction thereof upon the record in the office of the recorder of deeds wherein the same is recorded. All costs and expenses in connection with the entry of such satisfaction shall be paid by the persons applying therefor.

Part II Ch. 15–22 Deeds

§ 700.  Satisfaction of mortgages to commonwealth Whenever, heretofore or hereafter, mortgages have been or shall be duly executed and delivered to the Commonwealth of Pennsylvania, or to any officer of the Commonwealth, for its use, and have been or shall be recorded in any county or counties of the State, the Attorney General, or other officer or officers of the Commonwealth having custody thereof, shall, upon payment in full of said mortgage or mortgages, or the bonds, notes, or other writings obligatory which said mortgages were given to secure, surrender and deliver the same to the mortgagor or obligor therein, or a duly authorized agent; and the Attorney General, upon payment of the proper costs and charges, together with accrued interest, shall acknowledge satisfaction of said mortgage upon the record thereof, and cause the same to be satisfied of record, either acting by himself or through a person duly authorized by his letter of attorney to act for him.

Part I Ch. 1–14 Brokers

this act because of a legal presumption of payment from lapse of time, to have matured and the payment thereof to have become due one year from the date of acknowledgment of such mortgage.

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PART III

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§ 703

MORTGAGE SATISFACTION

been duly signed and acknowledged by said mortgagee or assignee of record in due form of law and recorded as mortgages are now recorded, and the record of such instrument or a duly certified copy thereof shall be as good evidence as the original receipt or statement duly proven in any court of justice. § 703.  Repealed. 1978, April 28, P.L. 202, No. 53, § 2(a)[400], effective June 27, 1980 § 704.  Reserved § 705.  Notice requirement A bank, savings bank, savings and loan association or other lending institution holding a residential mortgage shall send written notification by first class mail to the mortgagor when the mortgage has been fully paid. Any moneys remaining in any escrow account established for the payment of taxes or insurance premiums shall be returned within 30 days to the mortgagor.

CHAPTER 29.2 FIRST CLASS CITY MORTGAGE SATISFACTION 21 P.S. § 711 to 21 P.S. § 717

Sec. § § § § § § §

1. Definitions 2. Satisfaction piece; recording; execution; effect 3. Contents of satisfaction piece 4. Indexing of satisfaction piece 5. Satisfaction by order or decree 6. Fee 7. Form of satisfaction piece

NOTE: This act is repealed insofar as it is inconsistent with the Mortgage Satisfaction Act. 2002, Dec. 9, P.L. 1530, No. 197, [21 P.S. §§721-1 to 721-12]; see Chapter 29.4 below. § 1.  Definitions As used in this act, “Mortgagee” includes any person, partnership, association, corporation, society, organization or fiduciary, holding a mortgage against real estate in a city or county of the first class, and entitled to payment of the mortgage debt, or the heir, legal representative, successor or assignee of any of the foregoing. § 2.  Satisfaction piece; recording; execution; effect Every mortgagee shall, upon receipt of payment of the mortgage debt and tender of satisfaction and filing costs, at the request of the mortgagor or owner of the mortgaged premises, enter of record in the office where the mortgage is recorded a duly executed satisfaction piece to be phrased substantially as provided in the form set out in section seven of this act, and acknowledged as provided by law. The satisfaction piece when recorded shall forever thereafter discharge, defeat and release the lien and debt of the mortgage. § 3.  Contents of satisfaction piece

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Ch. 29.2

Part V Ch. 41–48A Zoning, etc. Part VI Ch. 49–56 Taxation Part VII Ch. 57–63 Litigation Part VIII Ch. 64–67 L/T Part IX Ch. 68–72 Condos, etc. Index

gtb-parealestate22-all.indb 401

Part IV Ch. 36–40 Insurance

401

Part III Ch. 23–35 Mortgages

1. 21 P.S. § 711 et seq. 2. 21 P.S. § 716.

Part II Ch. 15–22 Deeds

KNOW ALL MEN BY THESE PRESENTS That ______________________________________________________ do __________ hereby certify that a certain Indenture of Mortgage bearing date the __________ day of __________ Two Thousand and _____, made and executed by ______________ to _______________________________, to secure payment of the principal sum of __________ dollars and duly recorded in the Department of Records of the City of Philadelphia, Mortgage Book No. _____ page _____ on the __________ day of __________ Nineteen Hundred and _____ 19___, and secured upon (describe real

Part I Ch. 1–14 Brokers

Every satisfaction piece shall contain the name of the mortgagor and mortgagee, the date and amount of the mortgage, a reference by book and page (or appropriate designation in the case of microfilm recording) to the record of the original mortgage, a brief description of the real estate, and any assignment or assignments thereof. The satisfaction piece shall be accompanied, on presentation for recording, by the original mortgage instrument. Nothing herein contained shall impose liability on any city or county of the first class for any mistake, error or inaccuracy found in any satisfaction piece filed by any mortgagee which shall appear complete and correct at the time of its filing. Complier’s Note—this section Repealed by the Uniform Real Property Electronic Recording Act [see Chapter 19.2 of this Lawsource; 21 PS § 483.1 to § 483.9] insofar as the section prohibits electronic filing of satisfaction pieces allowed by the Uniform Real Property Electronic Recording Act. § 4.  Indexing of satisfaction piece The recording officer shall properly index all satisfaction pieces against the name of the mortgagee or last assignee, as each is indicated in the satisfaction piece, and the recording officer shall indicate the recording of the satisfaction piece in the mortgage record. § 5.  Satisfaction by order or decree This act1 shall not affect or impair any other act, or any rule of civil procedure promulgated by the Supreme Court of the Commonwealth, which provides for the satisfaction or discharge of a mortgage by order or decree of any court upon payment of the fee prescribed in section six hereof.2 The recording officer shall accept for recording a copy of the order or decree certified by the prothonotary, and shall index and indicate the same in the record as is herein provided for a satisfaction piece. § 6.  Fee The fee for recording a satisfaction piece shall be two dollars and fifty cents ($2.50), exclusive of any State tax now levied or that may hereafter be levied on recorded instruments. The council of any city of the first class may, by ordinance, establish any other fees as it may determine to be proper to cover the costs of the recording and the maintenance of the records of satisfied mortgages. § 7.  Form of satisfaction piece (a)   Form of Individual Satisfaction Piece; Complete Satisfaction. Complier’s Note—this section Repealed by the Uniform Real Property Electronic Recording Act [see Chapter 19.2 of this Lawsource; 21 PS § 483.1 to § 483.9] insofar as the section prohibits electronic filing of satisfaction pieces allowed by the Uniform Real Property Electronic Recording Act.

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PART III

12/22/21 10:45 AM

§ 7

MORTGAGE SATISFACTION

estate) __________________________________________________ has been paid and that upon the recording of this instrument the said mortgage shall be and is hereby forever discharged. The mortgage has not been assigned, except as follows _____________________________________________ WITNESS _____ hand and seal this __________ day of __________ A.D. 19___. Signed, sealed and delivered in the presence of ____________________ (SEAL) ____________________ (SEAL) ________________________________________________ (b)   Form of Corporation Satisfaction Piece; Complete Satisfaction. KNOW ALL MEN BY THESE PRESENTS That ______________________________________________________ do __________ hereby certify that a certain Indenture of Mortgage bearing date the __________ day of __________ Two Thousand and _____, made and executed by ______________ to _______________________________, to secure payment of the principal sum of __________ dollars and duly recorded in the Department of Records of the City of Philadelphia, Mortgage Book No. _____ page _____ on the __________ day of __________ Nineteen Hundred and _____ 19___, and secured upon (describe real estate) __________________________________________________ has been paid and that upon the recording of this instrument the said mortgage shall be and is hereby forever discharged. The mortgage has not been assigned, except as follows _____________________________________________ IN WITNESS WHEREOF the said Corporation has caused its common or corporate seal to be hereunto affixed the __________ day of __________ in the year Nineteen Hundred and _____ ______________________________________________ President Attest ________________________________________ Secretary

CHAPTER 29.3 SECOND TO EIGHTH CLASS COUNTY MORTGAGE SATISFACTION 21 P.S. § 720-1 to 21 P.S. § 720-9

Sec. § § § § § § § § §

1. Definitions 2. Satisfaction piece, effect of recording 3. Satisfaction piece, contents, execution, acknowledgment, mortgage accompanying 4. Form of satisfaction piece 5. Recording; indexing; reference on mortgage record 6. Mistakes, liability 7. Other statutes or rule of civil procedure 8. Fee for recording 9. Prior written satisfactions

NOTE: This act is repealed insofar as it is inconsistent with the Mortgage Satisfaction Act. 2002, Dec. 9, P.L. 1530, No. 197, [21 PS §§721-1 to 721-12]; see

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Ch. 29.3

Part VII Ch. 57–63 Litigation Part VIII Ch. 64–67 L/T Part IX Ch. 68–72 Condos, etc. Index

gtb-parealestate22-all.indb 403

Part VI Ch. 49–56 Taxation

403

Part V Ch. 41–48A Zoning, etc.

3. 21 P.S. § 720-4.

Part IV Ch. 36–40 Insurance

Satisfaction Piece Made this __________ day of __________ 19___ Name of Mortgagor: Name of Mortgagee: Name of Last Assignee: Date of Mortgage: Original Mortgage Debt: $

Part III Ch. 23–35 Mortgages

§ 3.  Satisfaction piece, contents, execution, acknowledgment, mortgage accompanying Every satisfaction piece shall be in substantially the form provided in section 4 of this act3 and shall contain the names of the mortgagor, mortgagee and of the last assignee of mortgagee, if any, the date and the original principal amount of the mortgage, an accurate reference by book and page (or other appropriate recording reference) to the place where the mortgage and the last assignment thereof are recorded or filed for recording, and a brief description of or a statement of the location of the mortgaged real estate, and shall be executed and acknowledged by or on behalf of the mortgagee. The satisfaction piece shall be accompanied, upon presentation for recording, by the original or a certified copy of the mortgage instrument. § 4.  Form of satisfaction piece (a)   Form of satisfaction piece for use by natural persons.

Part II Ch. 15–22 Deeds

§ 2.  Satisfaction piece, effect of recording Every mortgagee may enter of record in the office where the mortgage is recorded a duly executed satisfaction piece which shall forever thereafter satisfy and discharge the lien of the mortgage referred to therein; however, in every county that microfilms the mortgage, upon direction of the recorder of deeds the mortgagee shall satisfy and discharge the lien of the mortgage by means of a satisfaction piece.

Part I Ch. 1–14 Brokers

Chapter 29.4 below. This Act is Repealed by the Uniform Real Property Electronic Recording Act [see Chapter 19.2 of this Lawsource; 21 PS § 483.1 to § 483.9] insofar as the this Act prohibits electronic filing of satisfaction pieces allowed by the Uniform Real Property Electronic Recording Act. § 1.  Definitions As used in this act: (1)  “Mortgage” shall mean any instrument or document recorded or filed for record in the office of the recorder of deeds (or other officials in charge of recording mortgages) in any county of the second, second A, third, fourth, fifth, sixth, seventh or eighth class of the Commonwealth which creates or purports to create a specific lien on any real property within such county. (2)  “Real Property” shall mean lands, tenements, buildings and parts thereof or any interest therein. (3)  “Mortgagee” shall mean the owner or holder of the mortgage lien and shall include natural persons, co-partnerships, associations, societies, fiduciaries, private and public corporations, authorities, the United States of America and any other country and their respective governmental agencies, the Commonwealth of Pennsylvania and any other state and their respective political subdivisions and agencies or the heir at law, legal representative, assignee, successor in interest, or attorney in fact of any of the foregoing.

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PART III

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§ 5

MORTGAGE SATISFACTION

Mortgage recorded on __________, 19___, in the office of the Recorder of Deeds of _______________ County, Pennsylvania, in Mortgage Book __________, page _____ (Unless the word “None” is inserted after the “Name of Last Assignee” above, include the following): Last assignment recorded on __________, 19___, in the Office of the Recorder of Deeds of _______________ County, Pennsylvania, in Mortgage Book __________, page _____ Brief Description or Statement of Location of Mortgaged Premises: The undersigned hereby certifies that the debt secured by the above-mentioned Mortgage has been fully paid or otherwise discharged and that upon the recording hereof said Mortgage shall be and is hereby fully and forever satisfied and discharged. Witness the due execution hereof. Witnessed by: ____________________ ____________________ (Affix Acknowledgment) (b)   Form of satisfaction piece for use by other than natural persons, Satisfaction Piece Made this __________ day of __________ 19___ Name of Mortgagor: Name of Mortgagee: Name of Last Assignee: Date of Mortgage: Original Mortgage Debt: $ Mortgage Recorded on __________, 19___, in the Office of the Recorder of Deeds of _______________ County, Pennsylvania, in Mortgage Book __________, page _____, (Unless the word “None” is inserted after the “Name of Last Assignee” above, include the following): Last assignment recorded on __________, 19___, in the Office of the Recorder of Deeds of _______________ County, Pennsylvania, in Mortgage Book __________, page _____ Brief Description or Statement of Location of Mortgaged Premises: The undersigned hereby certifies that the debt secured by the above-mentioned Mortgage has been fully paid or otherwise discharged and that upon the recording hereof said Mortgage shall be and is hereby fully and forever satisfied and discharged. Witness the due execution hereof. Attested or witnessed by: __________ __________ By ______________________________ (Affix Acknowledgment) § 5.  Recording; indexing; reference on mortgage record The recording officer shall enter of record and properly index all satisfaction pieces against the name of the mortgagee or last assignee, as each is indicated in the satisfaction piece, and the recording officer shall indicate the recording of the satisfaction piece by an accurate reference placed on the record of the instrument satisfied thereby, or when the mortgage so satisfied is transcribed or

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Ch. 29.4

Part I Ch. 1–14 Brokers Part II Ch. 15–22 Deeds Part III Ch. 23–35 Mortgages Part IV Ch. 36–40 Insurance Part V Ch. 41–48A Zoning, etc.

recorded in a manner which permits notations to be made on the margin thereof, the recording officer shall note such satisfaction on the margin of the recorded mortgage and shall refer in such notation to the volume and page of the record wherein the satisfaction piece is set forth in full. § 6.  Mistakes, liability Nothing herein contained shall impose liability on any recording officer or any political subdivision of the Commonwealth for any mistake, error or inaccuracy found in any satisfaction piece recorded or filed for recording. § 7.  Other statutes or rule of civil procedure This act shall not affect or impair any other act, or any rule of civil procedure promulgated by the Supreme Court of the Commonwealth, which provides for the satisfaction or discharge of a mortgage in any manner other than as prescribed herein. § 8.  Fee for recording The fee for recording a satisfaction piece shall be four dollars and fifty cents ($4.50), exclusive of any State tax now levied or that may hereafter be levied on recorded instruments. § 9.  Prior written satisfactions No written satisfaction or intended satisfaction given prior to the date hereof with respect to any mortgage on real property, situate in this Commonwealth, shall be deemed, held or adjudged invalid, defective or insufficient in law if the same shall purport to satisfy or discharge the lien of any mortgage and shall have been duly executed and acknowledged by or on behalf of the mortgagee and recorded in the office of the recorder of deeds of the county of the Commonwealth wherein the real property described or referred to in such satisfaction is situate, but all such satisfactions shall be good, valid and effective in law for the purposes therein recited.

Table of Contents

PART III

Part VI Ch. 49–56 Taxation

CHAPTER 29.4 MORTGAGE SATISFACTION ACT 21 P.S. § 721-1 to 21 P.S. § 721-12

Sec.

1. Short title 2. Definitions 3. Satisfactions, methods and indexing 4. Satisfaction piece required and effect of satisfaction piece 5. Form of satisfaction piece 6. Notice to satisfy; damages for failure to satisfy 7. Residential mortgages; settlement officer satisfaction 8. Residential mortgages; objection to settlement officer satisfaction 9. Other rules or laws not affected 10. Prior instruments 11. Repeals 12. Applicability

Part VII Ch. 57–63 Litigation Part VIII Ch. 64–67 L/T

§ § § § § § § § § § § §

gtb-parealestate22-all.indb 405

Index

405

Part IX Ch. 68–72 Condos, etc.

NOTE: This act repeals the acts set forth above [First Class City and Second through Eighth Class County Mortgage Satisfaction Acts] and certain provisions

12/22/21 10:45 AM

§ 1

MORTGAGE SATISFACTION

of the Act of 1715 [see § 11 below] insofar as they are inconsistent with this act. This Act is Repealed by the Uniform Real Property Electronic Recording Act [see Chapter 19.2 of this Lawsource; 21 PS § 483.1 to § 483.9] insofar as the this Act prohibits electronic filing of satisfaction pieces allowed by the Uniform Real Property Electronic Recording Act. § 1.  Short title This act shall be known and may be cited as the Mortgage Satisfaction Act. § 2.  Definitions The following words and phrases when used in this act shall have the meanings given to them in this section unless the context clearly indicates otherwise: “Mortgage.” Any instrument or document recorded or presented for recording in the office of the recorder of deeds, or other official in charge of recording mortgages, in any county of this Commonwealth which creates or purports to create a specific lien on any real property within such county. “Mortgage servicer.” The last person to whom a mortgagor has been instructed by a mortgagee or prior servicer to send payments for the loan secured by a mortgage. A person lawfully transmitting a payoff statement is considered the mortgage servicer for the mortgage described in the payoff statement. “Mortgagee.” (1)  The current holder of record of the mortgage or the current holder of the mortgage or note; (2)   a mortgage servicer; or (3)   the personal representatives, agents, nominees, successors or assigns of the current holder of the mortgage or note. “Payoff statement.” A statement issued by a mortgagee or agent of the mortgagee of the amount of the unpaid balance of a loan secured by a mortgage, including principal, interest and other charges properly assessed under the loan documentation of the mortgage and interest on a per diem basis for the unpaid balance. “Real property.” Lands, tenements, buildings and parts thereof or any interest therein, condominiums and real estate cooperatives. “Residential mortgage.” A mortgage creating a specific lien upon real estate within this Commonwealth containing four or fewer residential units, including residential condominium or cooperative units. “Settlement officer.” A natural person: (1)  who is: (i)   licensed by the Insurance Department as a title insurance agent; (ii)   an employee of a title insurance company authorized to do business in this Commonwealth by the Insurance Department; or (iii)   an attorney-at-law licensed to practice in this Commonwealth; and (2)   who conducted a settlement or under whose direct supervision a settlement was conducted in which a mortgage was paid in full in accordance with the payoff statement provided by the mortgagee. § 3.  Satisfactions, methods and indexing (a)   Methods of satisfying mortgages.— (1)   Mortgages shall be satisfied by satisfaction pieces and also in the case of residential mortgages by settlement officer satisfactions as described in sections five and seven4 and not by entering satisfaction upon the margin of the 4. 21 P.S. §§ 721-5, 721-7.

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Ch. 29.4

Part V Ch. 41–48A Zoning, etc. Part VI Ch. 49–56 Taxation Part VII Ch. 57–63 Litigation Part VIII Ch. 64–67 L/T Part IX Ch. 68–72 Condos, etc. Index

gtb-parealestate22-all.indb 407

Part IV Ch. 36–40 Insurance

407

Part III Ch. 23–35 Mortgages

5. 21 P.S. § 721-5.

Part II Ch. 15–22 Deeds

SATISFACTION PIECE Made this day of , Name of Mortgagor: Name of Mortgagee: Name of Last Assignee: Date of Mortgage: Original Mortgage Debt: Mortgage Recorded on , in the Office of the Recorder of Deeds of County, Pennsylvania, in Book , Page /instrument

Part I Ch. 1–14 Brokers

record of such mortgage. A satisfaction piece or settlement officer satisfaction need not be accompanied by the original mortgage instrument or a copy thereof, certified or otherwise, when presented for recording. If required by the recording officer for the applicable county, a satisfaction piece or settlement officer satisfaction shall be accompanied by information sufficient to validate the original mortgage recording information in the public record, which shall be at the option of the mortgagee or settlement officer one of the following: (i)   The original mortgage. (ii)   A legible image of the first page of the mortgage. (iii)   A validation fee as established by the recording officer. (2)   Any recording officer who shall elect the recording validation procedure described in paragraph (1) shall give notice of such election, which notice shall be entitled “Notice of Election by (recording officer) to Adopt Recording Information Validation Procedure under the Mortgage Satisfaction Act,” shall state any additional fees to be charged and shall be advertised in the county recorder’s yearly fee schedule or fee bill, whichever is applicable. (b)  Indexing.—The recording officer shall properly index all satisfaction pieces and settlement officer satisfactions against the name of the mortgagee or last assignee as each is indicated in the satisfaction piece or settlement officer satisfaction, and the recording officer shall indicate the recording of each satisfaction piece and settlement officer satisfaction in the mortgage record. (c)   Liability of recording officer.—Nothing contained in this act shall impose liability on any recording officer or any political subdivision for any mistake, error or inaccuracy found in any satisfaction piece or settlement officer satisfaction which was presented for recording by any person or entity and which was recorded by the recording officer or political subdivision. § 4.  Satisfaction piece required and effect of satisfaction piece Every mortgagee shall, upon receipt of payment of the entire mortgage obligation and tender of all required satisfaction and recording costs, present for recording in the office where the mortgage is recorded a duly executed satisfaction piece in substantially the form set out in section five5 and acknowledged as provided by law. The satisfaction piece when recorded shall forever thereafter discharge, defeat and release the lien and debt of the mortgage. § 5.  Form of satisfaction piece Mortgagees, whether individuals or legal entities other than individuals, shall satisfy mortgages by a satisfaction piece in substantially the following form:

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PART III

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§ 6

MORTGAGE SATISFACTION

number . Brief Description or Statement of Location of Mortgaged Premises: The undersigned hereby certifies that the debt secured by the above-mentioned mortgage has been fully paid or otherwise discharged and that upon the recording hereof said mortgage shall be and is hereby fully and forever satisfied and discharged. The undersigned hereby authorizes and empowers the recorder of said county to enter this satisfaction piece and to cause said mortgage to be satisfied of record. Witness the due execution hereof with the intent to be legally bound. (signature(s) of individual mortgagee(s) or representative(s) of legal entity) (acknowledgment) § 6.  Notice to satisfy; damages for failure to satisfy (a)  Notice to satisfy.—After the entire mortgage obligation as well as all required satisfaction and recording costs have been paid to the mortgagee, the mortgagor may send a notice to the mortgagee to present for recording a satisfaction piece to avoid damages. (b)  Delivery.—The notice to satisfy shall be sent to the mortgagee by certified or registered mail, return receipt requested. The notice shall be sent to the mortgagee at the mortgagee’s address designated in the payoff statement unless the person issuing the notice has actually received from the mortgagee another name or address to which requests for satisfactions are to be sent. If no payoff statement is received by the mortgagor or no address is provided in the payoff statement and the person issuing the notice has received no address to send requests for satisfactions, the notice to satisfy shall be sent to the address to which the mortgagor has most recently made payment. (c)  Form.—The notice to satisfy shall be in substantially the following form: NOTICE TO RECORD MORTGAGE SATISFACTION PIECE TO AVOID PENALTY Date of notice: To the mortgagee named below: The party issuing this notice believes that the mortgagee of the mortgage described below has received full satisfaction and payment of all amounts secured by the mortgage, including any applicable satisfaction fee, and that, where applicable, the mortgagee has been instructed in writing, effective as of the date and time of receipt of the mortgage payoff figure, to close and decline any further advances on any open line of credit which was secured by the affected mortgage. The party issuing this notice hereby requests that the mortgagee issue and present for recording a satisfaction piece concerning the mortgage or provide a satisfactory reason why the mortgage should not be satisfied to the party issuing this notice. If you do not comply with this notice, you may be liable for penalties and costs in accordance with the act of December 9, 2002 (P.L.1530, No. 197), known as the Mortgage Satisfaction Act, or the party issuing this notice may be able to satisfy the mortgage without your consent. Name of mortgagor: Name of mortgagee: Name of last assignee: Date of mortgage: Amount of mortgage: $

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Ch. 29.4

Part III Ch. 23–35 Mortgages Part IV Ch. 36–40 Insurance Part V Ch. 41–48A Zoning, etc. Part VI Ch. 49–56 Taxation Part VII Ch. 57–63 Litigation Part VIII Ch. 64–67 L/T Part IX Ch. 68–72 Condos, etc.

6. 21 P.S. § 721-5. 7. 21 P.S. § 721-6. 8. 21 P.S. § 721-6.

Index

409

gtb-parealestate22-all.indb 409

Part II Ch. 15–22 Deeds

NOTICE OF INTENT TO RECORD SETTLEMENT OFFICER SATISFACTION WITHIN SIXTY DAYS. (b)   Recording and form.—

Part I Ch. 1–14 Brokers

Recorded in County, Pennsylvania, in Book, Page /instrument number. Brief description of premises covered by mortgage: Mortgagee loan number (if known): Name of party presenting this notice: Address of party presenting this notice: Telephone number of party presenting this notice: (d)   Penalty for failure to satisfy.— (1)   If, within 60 days of the mortgagee’s receipt of: (i)   payment of the entire mortgage obligation and all required satisfaction and recording costs; and (ii)   the first written request by the mortgagor for the satisfaction piece delivered and in substantially the form described in this section, the mortgagee fails to present for recording to the office where the mortgage was recorded a satisfaction piece as described in section five6 or the mortgage is not otherwise satisfied, the mortgagee shall forfeit and pay to the mortgagor a penalty in a sum not exceeding the original loan amount. (2)  In any successful action to recover penalties pursuant to this section, the mortgagee shall reimburse the mortgagor for costs of the action, including the mortgagor’s reasonable attorney fees. (3)   Any action to enforce the provisions of this section, including any action to recover amounts due under this section, shall be brought and maintained in the individual names and shall be prosecuted by persons entitled to recover under the terms hereof and not in a representative capacity. (4)   An action under section six7 shall be the exclusive remedy for damages for failure of a mortgagee to issue and present for recording a satisfaction piece. (5)   The delivery of a second or subsequent written request by the mortgagor for a satisfaction piece shall not give rise to an additional cause of action under this section. § 7.  Residential mortgages; settlement officer satisfaction (a)  Notice of intent to record satisfaction.—Whether or not the mortgagor has sent notice to the mortgagee as provided in section six,8 if a mortgagee of a residential mortgage has failed to present for recording to the office where the mortgage was recorded a satisfaction piece 90 days after the mortgagee has received payment of the entire mortgage obligation and all required satisfaction and recording costs in accordance with the payoff statement, a settlement officer may send a written notice to satisfy the mortgage using the means of delivery and in substantially the format described in section six, except that the notice to satisfy shall be titled:

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PART III

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§ 7

MORTGAGE SATISFACTION

(1)   If, within 60 days of the mortgagee’s receipt of the notice of intent to record satisfaction issued by a settlement officer in accordance with this section, a satisfaction piece has not been recorded in the office where the mortgage was recorded and the mortgagee has not delivered to the settlement officer a response which details reasons why the mortgage should not be satisfied, a settlement officer may present for recording a settlement officer satisfaction. The settlement officer shall also send the mortgagee a copy of the settlement officer satisfaction by the same method and procedure described in section 6. (2)   The settlement officer satisfaction shall be in substantially the following form and shall be executed by the settlement officer and acknowledged as provided by law: SETTLEMENT OFFICER SATISFACTION Name of mortgagor Date of mortgage Name of mortgagee Principal amount Name of last assignee Recorded on premises In County, Pennsylvania, in Book , Page /as instrument . Brief description or Statement of Location of Mortgaged Premises. COMMONWEALTH OF PENNSYLVANIA: COUNTY OF : ss: Before me, the subscriber, a notary public in and for the Commonwealth of Pennsylvania, personally appeared, who, being duly sworn according to law, deposes and says: (1)  The settlement officer is licensed by the Insurance Department as a Title Insurance Agent with license no. or is an employee of , a Title Insurance Company authorized to do business in Pennsylvania or is an attorney licensed to practice law in this Commonwealth. (2)   The settlement officer business address is: (3)   The settlement officer has conducted or supervised a settlement in which the above-captioned mortgage was paid in full in accordance with the payoff statement provided by the mortgagee. (4)   The above settlement was held on at in which the mortgagor sold the property, refinanced the mortgage, other . (5)   The settlement officer has ascertained, if the mortgage secures an openend line of credit account, that the mortgagee has been instructed in writing, effective no later than the date and time of the receipt of the mortgage payoff figure, to close and decline any further advances on the home equity or other open-end line of credit which was secured by the affected mortgage. (6)   The settlement officer has ascertained that the mortgagee has received payment of the loan secured by the mortgage in accordance with the payoff statement, as evidenced by a bank check, certified check, escrow account check from the settlement officer or an attorney trust account check that has been negotiated by the mortgagee, or any documentary evidence of the receipt of payment by the mortgagee. (7)   A satisfaction piece has not been recorded concerning the mortgage, nor has the settlement officer received a satisfaction piece. (8)   The settlement officer has delivered to the mortgagee notice of intent to present for recording a settlement officer satisfaction using the format and

410

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MORTGAGES

Ch. 29.4

Part IX Ch. 68–72 Condos, etc. Index

gtb-parealestate22-all.indb 411

Part VIII Ch. 64–67 L/T

411

Part VII Ch. 57–63 Litigation

9. 21 P.S. § 721-8. 10. 21 P.S. § 721-4.

Part VI Ch. 49–56 Taxation

§ 8.  Residential mortgages; objection to settlement officer satisfaction (a)  Objection.—At any time within six years of the date of the recording of a settlement officer satisfaction, a mortgagee who objects to the satisfaction of a mortgage by a settlement officer satisfaction on the grounds that there are still outstanding obligations secured by the mortgage may prepare and present for recording an objection. The objection shall be acknowledged as provided by law, shall recite in particularity the reasons why the mortgage should not be marked satisfied and shall be recorded in the same manner as the settlement officer satisfaction. (b)  Effect of proper objection.—In a case where a settlement officer satisfaction is recorded concerning a mortgage and a proper objection to that settlement officer satisfaction is presented for recording by the mortgagee and recorded, the settlement officer satisfaction shall be considered void, and the mortgage shall be considered unsatisfied as a matter of record, provided, however, such objection shall be void as against any bona fide purchaser, mortgagee

Part V Ch. 41–48A Zoning, etc.

(d)  Construction.—The procedure authorized by this section for the satisfaction of a mortgage shall constitute an optional method of accomplishing a satisfaction of a residential mortgage. The nonuse of the procedure authorized by this section for the satisfaction of a mortgage shall not give rise to any liability or any cause of action whatsoever against a settlement agent or any title insurance company by any mortgagee, mortgagor or third party.

Part IV Ch. 36–40 Insurance

(c)   Effect and objection.— (1)   Except as otherwise provided in paragraph (2), a settlement officer satisfaction complying with the terms of this section shall be effective upon recording and, except as otherwise provided in section eight,9 when so recorded has the same effect as a satisfaction piece recorded by the mortgagee in accordance with section four.10 (2)   If an objection complying with section eight is issued by the mortgagee and recorded, the mortgage shall be considered unsatisfied in accordance with section eight.

Part III Ch. 23–35 Mortgages

(signature of settlement officer) In witness whereof, I have hereunto set my hand and official seal, this day of , . Notary Public.

Part II Ch. 15–22 Deeds

(10)   Attached hereto is a copy of the canceled check, wire confirmation or other evidence of payment which paid the mortgage in full in accordance with the payoff statement.

Part I Ch. 1–14 Brokers

procedures described in the act of December 9, 2002 (P.L. 1530, No. 197), known as the Mortgage Satisfaction Act. Attached hereto is a copy of the written request notice of intent and a copy of the return receipt which indicates the written request and notice of intent were received by the mortgagee. (9)   The settlement officer has no actual knowledge of any objection by the mortgagee to the recording of a settlement officer satisfaction, nor has an objection been recorded in accordance with the act.

Table of Contents

PART III

12/22/21 10:45 AM

§ 9

MORTGAGE SATISFACTION

or lien creditor for a valid consideration whose deed, mortgage, judgment or lien was recorded prior to the time the objection was recorded. The recording officer shall enter an appropriate record to indicate that the mortgage is unsatisfied and the settlement officer satisfaction is void. Recording of a settlement officer satisfaction which is rendered void due to the filing of a proper objection shall not relieve the mortgagor or the mortgagor’s successors or assigns from any personal liability for the obligations secured by the mortgage, nor shall it discharge the lien of the mortgage. § 9.  Other rules or laws not affected This act shall not affect or impair any other act, or any rule of civil procedure promulgated by the Pennsylvania Supreme Court, which provides for the satisfaction or discharge of a mortgage by order or decree of any court upon payment of the applicable fee. The recording officer shall accept for recording a copy of the order or decree certified by the prothonotary and shall index and indicate the same in the record as is provided in this act for a satisfaction piece. Except as provided in section 3(a),11 this act shall not affect or impair any other act providing for fees for the recording of the documents and instruments provided for in this act. § 10.  Prior instruments No written satisfaction or intended satisfaction given prior to the date of this act with respect to any mortgage on real property situate in this Commonwealth, shall be deemed, held or adjudged invalid, defective or insufficient in law if the same shall purport to satisfy or discharge the lien of any mortgage and shall have been duly executed and acknowledged by or on behalf of the mortgagee and recorded in the office of the recorder of deeds of a city of the first class or any county of this Commonwealth wherein the real property described or referred to in such satisfaction is situate, but all such satisfactions shall be good, valid and effective in law for the purposes therein recited. § 11.  Repeals The following acts are repealed insofar as they are inconsistent with this act: Act of May 28, 1715 (1 Sm.L. 94, Ch.208),12 entitled “An act for acknowledging and recording of deeds.” Act of March 15, 1956 (1955 P.L. 1280, No. 392),13 entitled “An act relating to the satisfaction of mortgages in cities and counties of the first class by the recording of a satisfaction piece, prescribing forms therefor, and fixing the fees thereof.” Act of July 26, 1961 (P.L. 887, No. 382),14 entitled, as amended, “An act relating to the satisfaction of mortgages in counties of the second, second A, third, fourth, fifth, sixth, seventh and eighth class by the recording of a satisfaction piece, prescribing forms therefor, and fixing fees for the recording thereof.” § 12.  Applicability This act shall apply to every mortgage on real property in this Commonwealth which has not been satisfied prior to the effective date of this act and regardless of whether such mortgage was executed before the effective date of this act.15

11. 12. 13. 14. 15.

21 P.S. § 721-3. 16 P.S. §§ 9701, 9732; 21 P.S. §§ 8, 41 to 43, 471, 621, 681, 682. 21 P.S. §§ 711 to 717. 21 P.S. §§ 720-1 to 720-9. 2002, Dec. 9, P.L. 1530, No. 197, § 1, effective in 60 days.

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Table of Contents

CHAPTER 30 Part I Ch. 1–14 Brokers

RESIDENTIAL REAL ESTATE TRANSACTIONS 10 Pennsylvania Code, Chapter 7 4 Pa.B. 509

Part II Ch. 15–22 Deeds

Sec.

Authority The provisions of this Chapter 7 issued under act of January 30, 1974 (P. L. 13, No. 6) (41 P. S. §§ 101-605), unless otherwise noted.

The provisions of this Chapter 7 adopted March 22, 1974, effective March 23, 1974, 4 Pa.B. 509, unless otherwise noted.

§ 7.2.  Definitions and rules of construction.

Index

gtb-parealestate22-all.indb 413

Part IX Ch. 68–72 Condos, etc.

413

Part VIII Ch. 64–67 L/T

Unless the context indicates otherwise, the following definitions and rules of construction apply: Act—The act of January 30, 1974 (P. L. 13, No. 6) (41 P. S. §§ 101—605). Actual settlement costs—The term includes the following: (i)  For the purposes of the act “actual settlement costs,” is deemed to include the following: (A)   The attorney’s fees of the residential mortgage debtor if the attorney either: (I)   Is representing the residential mortgage lender. (II)   Is, directly or indirectly, recommended to the residential mortgage debtor by the residential mortgage lender. (B)   Charges and fees related to the transfer of property paid by the residential mortgage debtor to a real estate broker, mortgage broker or other person receiving directly or indirectly from the residential mortgage debtor

Part VII Ch. 57–63 Litigation

The provisions of this § 7.1 adopted March 22, 1974, effective March 23, 1974, 4 Pa.B. 509; amended January 10, 1975, effective January 11, 1975, 5 Pa.B. 72.

Part VI Ch. 49–56 Taxation

Source

Part V Ch. 41–48A Zoning, etc.

§ 7.1.  Scope. This chapter implements the act one purpose of which is to assure that every citizen of the Commonwealth who has need for residential mortgage credit is given meaningful information with respect to the cost of that credit at a rate of interest reasonably related to market conditions. Relevant credit information shall be disclosed so that the borrower may readily compare the various credit terms available to him from various sources and avoid the uninformed use of credit. Other purposes of the act which this chapter touches include the provisions of the act as to foreclosure and the establishment of lawful interest rates for various types of transactions.

Part IV Ch. 36–40 Insurance

Source

Part III Ch. 23–35 Mortgages

7.1. Scope. 7.2. Definitions and rules of construction. 7.3. Determination of loan yield. 7.4. Notice of intention to foreclose mortgage. 7.5. Commitments to enter into residential mortgages. 7.6. [Reserved]. 7.7. [Reserved]. 7.8. Prepayment penalty prohibited. 7.9. Disclosure requirements—statement of policy.

12/22/21 10:45 AM

§ 7.2

RESIDENTIAL TRANSACTIONS

a finder’s fee, commission, placement fee, service charge or other similar compensation touching the transaction. (C)   Except for the “single service charge” as defined in this section, only those charges that are cost justified regarding the specific residential mortgage for which they are charged. (ii)   For the purposes of the act “actual settlement costs” is deemed not to include the charges and fees excluded from the definition of “finance charge” as set forth in this section. Any insurance premium—The term, for purposes of the act, includes, but not be limited to, premiums for title insurance, fire and extended coverage insurance, flood insurance, F.H.A. mortgage insurance, private mortgage insurance and a deposit into an escrow account for payment of premiums on such insurance. Business loans—The term, for the purposes of the act, means extensions of credit where the funds are to be utilized in a business enterprise and where the following conditions exist: (i)  The borrower exercises actual control over the managerial decisions of the enterprise in which the funds are to be utilized. (ii)   The borrower signs an affidavit under penalty of perjury setting forth the intended use of proceeds. Charges and fees necessary for or related to the transfer of property or the closing of the residential mortgage loan—The term, for purposes of the act, includes, but not be limited to, the following, if paid by the residential mortgage debtor: property certification fees, realty transfer tax, fees for credit reports and attorney’s fees included under the definition of “actual settlement costs” which is set forth in this section; provided that the charges and fees are reasonable and bona fide, and not for the purpose of evading compliance with the act. Discount points—The term, for purposes of the act, is deemed not to include a fee paid to a residential mortgage lender by a person in the business of residential building or development in connection with a commitment by the lender to make mortgage loans to credit-worthy purchasers of real property, which has not previously been occupied as a residence; provided the fee is bona fide and not for the purpose of evading compliance with the act. This exclusion from the definition of “discount points” pertains, by way of example and not limitation, to fees charged by a residential mortgage lender to a person in the business of residential building or development under the Government National Mortgage Association Conventional Home Mortgage Program authorized by the Emergency Home Purchase Assistance Act of 1974 (P. L. 93-449) or under similar programs. Additionally, “discount points,” for purposes of the act, is deemed not to include fees paid under the Conventional Home Mortgage Program or a similar program to a residential mortgage lender by the seller of a residential unit which has previously been occupied as a residence in connection with a commitment by the lender to make a mortgage loan to a credit-worthy purchaser of a residential unit. Finance charge—The term, for purposes of the act, is deemed not to include the following: (i)   Fees, discounts or other sums realized by the Government National Mortgage Association, Federal National Mortgage Association, Federal Home Loan Mortgage Corporation or other governmentally sponsored or private secondary mortgage market purchaser, in connection with the purchase of or commitment to purchase residential mortgages, provided the purchase or commitment to purchase is bona fide and not for the purpose of evading compliance with the act. The preceding sentence means, by way of example and not limitation, that fees, discounts and other sums realized by the Government National Mortgage

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Ch. 30

(i)  A regular place of business of the residential mortgage lender in the county where the real property is located or in a county contiguous thereto which is open during normal business hours.

(i)  Residential mortgage—The term, for purposes of the permissible interest rate under the act but not the disclosure requirements under the act, is deemed not to include a transaction which is entered into under an act within the scope of section 604 of the act (41 P. S. § 604).

gtb-parealestate22-all.indb 415

Index

415

Part IX Ch. 68–72 Condos, etc.

(ii)  Residential mortgage—The term, for purposes of sections 403 and 404 of the act (41 P. S. §§ 403 and 404), includes an obligation to pay a sum of money in an original bona fide principal amount of $50,000 or less, evidenced by a security document as defined in the act and this chapter, and secured by a lien upon real property located within this Commonwealth containing two or fewer residential units or on which two or fewer residential units are to be constructed and shall include an obligation on a residential condominium unit.

Part VIII Ch. 64–67 L/T

Residential mortgage—The term means the following:

Part VII Ch. 57–63 Litigation

(iii)   If the residential mortgage lender has no place of business as set forth in subparagraph (i), any designated location in the county where the real property is located, or in a county contiguous thereto, which is open during normal business hours. The designated location may be the office of an attorney. The residential mortgage lender may require that on the day of a scheduled sheriff’s sale, tender of cure be limited to the place of the sale, provided that the residential mortgage debtor is given the name of the agent of the lender authorized to accept tender of cure and the agent is present at the place of sale at least 1 1/2 hours prior to commencement of the sale.

Part VI Ch. 49–56 Taxation

(ii)  For a period of time that the required notice provides the residential mortgage debtor with knowledge of a specific sum of money, payment of which during the period will constitute satisfactory tender of cure, an address at which tender of cure may be made by mail.

Part V Ch. 41–48A Zoning, etc.

Performance—The term, for purposes of sections 403 and 404 of the act (41 P. S. §§ 403 and 404), includes, but is not limited to, a conspicuous designation as to where cure shall be tendered, provided that the designated location is one of the following:

Part IV Ch. 36–40 Insurance

One hour prior to commencement of bidding—The term, for purposes of section 404 of the act (41 P. S. § 404), is deemed to mean one hour prior to the scheduled start of the general proceeding at which the real property in question was originally listed for sale.

Part III Ch. 23–35 Mortgages

Loan yield—The annual rate of return determined in accordance with the provisions set forth in § 7.3 (relating to determination of loan yield).

Part II Ch. 15–22 Deeds

(ii)   A satisfaction fee, if the fee is not charged for prior to the last scheduled payment, or to receipt of payment in full on the residential mortgage.

Part I Ch. 1–14 Brokers

Association under its Conventional Home Mortgage Program as provided in the definition of “discount points” set forth in this section or under similar programs are not included in the “finance charge” under the act. Department comment: this subsection is a clarification of, not an exemption from, the definition of finance charge. “Finance charge” is not intended to cover fees, discounts or charges between principals in secondary mortgage market transactions, but to cover nonactual settlement costs and charges related to the closing of the residential mortgage between the residential mortgage debtor and the original residential mortgage lender. Therefore, the levying of cost, charges and fees, or other sums by the residential mortgage lender against the residential mortgage debtor is a finance charge unless it is an actual settlement cost as defined in the act and this section.

Table of Contents

PART III

12/22/21 10:45 AM

§ 7.2

RESIDENTIAL TRANSACTIONS

(iii)  Residential mortgage—The term, for purposes of the act, is deemed not to include: (A)  A transaction with a person in the business of residential building or development to finance the construction of two or fewer residential units, provided the transaction is bona fide construction financing to a builder or developer, and not for the purpose of evading compliance with the act. (B)   A single mortgage document executed by a residential mortgage debtor and creating a lien upon real property containing three or more residential units or on which three or more residential units are to be constructed. (iv)  Residential mortgage—A loan evidenced by a single note and mortgage shall be considered to be two separate residential mortgage loans when the following factors exist: (A)   Two separate residential mortgage lenders have issued separate commitments to lend to the same residential mortgage debtor. (B)   The residential mortgage debtor will be indebted under said note and mortgage to only one residential mortgage lender at any time. (C)  The residential mortgage lenders have agreed to purchase and sell the loan documents to one another upon completion of construction or rehabilitation of the mortgaged premises by the residential mortgage debtor. With respect to the residential mortgage loans, each lender may impose the single service charge allowable under the act, and each may commit for and impose a rate of interest allowable under the act without regard to the rate of interest imposed by the other; provided that the foregoing arrangement is bona fide and not for the purpose of evading compliance with the act. Residential real property—The term, for purposes of the act, does not include vacant real property unless the construction of two or fewer residential units is included either in the agreement of sale for such property or in a separate agreement approximately contemporaneous with such agreement of sale. Residential unit—The term includes a type of residence, regardless of whether the unit is conceived of as a principal residence, a secondary residence, a summer residence, a vacation residence or a residence of some other denomination; and regardless of whether the unit is constructed or is to be constructed by conventional, precut, modular, sectional or other means. Security document—The term, for the purposes of the act is deemed to include the following: (i)   An installment land contract, land contract or lease purchase agreement. It shall also include any similar document if it is a lease of real property where the lessee pays or agrees to pay as compensation for use a sum substantially equivalent to or in excess of the aggregate value of the real property involved and it is agreed that the lessee will become, or for no other (or a nominal) consideration has the option to become, the owner of the real property upon full compliance with the terms of the agreement. (ii)   A document containing a confession of judgment which, when confessed, effects a lien upon real estate. Single service charge—The term, for purposes of the act, means a charge, in addition to other charges or fees included within the definitions of other “actual settlement costs” which is set forth in this section or in the act, paid directly or indirectly, by the residential mortgage debtor and received and retained, directly or indirectly, or on behalf of the residential mortgage lender for services or facilities furnished by the lender in connection with a residential mortgage, and not otherwise provided for as an “actual settlement cost” as set forth in this section or in the act. The charge is deemed to be “reasonable,” for purposes of this chapter and the act, if not in excess of the applicable limitations expressed in section

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Ch. 30

Source

(b)  The loan yield is computed as the annual percentage rate is computed in accordance with section 226.5(b),(c) and (d) of Regulation Z, 12 CFR 226, but using the definition of finance charge provided for in the act.

The provisions of this § 7.3 adopted March 22, 1974, effective March 23, 1974, 4 Pa.B. 509; amended January 10, 1975, effective January 11, 1975, 5 Pa.B. 72.

Late charges and other charges have also accrued to this date in the amount of _____________. The total amount now required to cure this default, or in other words, get caught up in your payments, as of the date of this letter, is __________.

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Index

You may cure this default within THIRTY (30) DAYS of the date of this letter, by paying to us the above amount of __________, plus any additional monthly payments and late charge which may fall due during this period. Such payment must be made either by cash, cashier’s check, certified check or money order, and made at __________.

Part IX Ch. 68–72 Condos, etc.

The MORTGAGE held by ____________________ (hereinafter we, us or ours) on your property located at ____________________, IS IN SERIOUS DEFAULT [because you have not made the monthly payments of ___________ for the months of __________, __________, and __________, and/or because _______________________________________________________________________].

Part VIII Ch. 64–67 L/T

NOTICE OF INTENTION TO FORECLOSE MORTGAGE

Part VII Ch. 57–63 Litigation

§ 7.4.  Notice of intention to foreclose mortgage. Before a residential mortgage lender, as defined by the act, may accelerate the maturity of a residential mortgage obligation, as defined by the act; commence a legal action including mortgage foreclosure to recover under the obligation; or take possession of a security of the residential debtor, as defined by the act, for the residential mortgage obligation—the person shall give a residential mortgage debtor notice of the intention which may be in the following form:

Part VI Ch. 49–56 Taxation

Source

Part V Ch. 41–48A Zoning, etc.

§ 7.3.  Determination of loan yield. (a)   The finance charge is amortized over the contract term of the loan.

Part IV Ch. 36–40 Insurance

The provisions of this § 7.2 adopted March 22, 1974, effective March 23, 1974, 4 Pa.B. 509; amended January 10, 1975, effective January 11, 1975, 5 Pa.B. 72; amended March 31, 1975, effective February 1, 1975, 5 Pa.B. 185; amended January 6, 1978, effective January 7, 1978, 8 Pa.B. 9; amended December 5, 1980, effective December 6, 1980, 10 Pa.B. 4591; corrected October 9, 1998, effective August 6, 1998, 28 Pa.B. 5094; corrected October 23, 1998, effective August 6, 1998, 28 Pa.B. 5094. Immediately preceding text appears at serial pages (125603) to (125609).

Part III Ch. 23–35 Mortgages

Term of a residential mortgage—The term, for purposes of the act when used in connection with renegotiable rate or rollover mortgage loans, the interval of time between the making of the loan and the first renegotiation of the loan; and a subsequent renewal of a loan shall be deemed to be for a separate term.

Part II Ch. 15–22 Deeds

Take possession of any security—The term, for purposes of section 403 of the act (41 P. S. § 403), is deemed to mean take possession of a residential real property security.

Part I Ch. 1–14 Brokers

101(e) of the act (41 P. S. § 101(e)), and except as hereinafter provided, no part of such service charge shall be collected from the residential mortgage debtor prior to loan settlement. At the residential mortgage lender’s option, a portion of the service charge, not exceeding $75, may be collected from the residential mortgage debtor when a mortgage application is received from or when a mortgage commitment is issued to the debtor, and a remainder of the service charge may be collected at settlement. Settlement fees and like charges are included within the definition of single service charge.

Table of Contents

PART III

12/22/21 10:45 AM

§ 7.5

RESIDENTIAL TRANSACTIONS

If you do not cure the default within THIRTY (30) DAYS, we intend to exercise our right to accelerate the mortgage payments. This means that whatever is owing on the original amount borrowed will be considered due immediately and you may lose the chance to pay off the original mortgage in monthly installments. If full payment of the amount of default is not made within THIRTY (30) DAYS, we also intend to instruct our attorneys to start a lawsuit to foreclose your mortgaged property. If the mortgage is foreclosed your mortgaged property will be sold by the Sheriff to pay off the mortgage debt. If we refer your case to our attorneys, but you cure the default before they begin legal proceedings against you, you will still have to pay the reasonable attorney’s fees, actually incurred, up to $50.00. However, if legal proceedings are started against you, you will have to pay the reasonable attorney’s fees even if they are over $50.00. Any attorney’s fees will be added to whatever you owe us, which may also include our reasonable costs. If you cure the default within the thirty day period, you will not be required to pay attorney’s fees. We may also sue you personally for the unpaid principal balance and all other sums due under the mortgage. If you have not cured the default within the thirty day period and foreclosure proceedings have begun, you still have the right to cure the default and prevent the sale at any time up to one hour before the Sheriff’s foreclosure sale. You may do so by paying the total amount of the unpaid monthly payments plus any late or other charges then due, as well as the reasonable attorney’s fees and costs connected with the foreclosure sale [and perform any other requirements under the mortgage]. It is estimated that the earliest date that such a Sheriff’s sale could be held would be approximately _____. A notice of the date of the Sheriff sale will be sent to you before the sale. Of course, the amount needed to cure the default will increase the longer you wait. You may find out at any time exactly what the required payment will be by calling us at the following number: _____. This payment must be in cash, cashier’s check, certified check or money order and made payable to us at the address stated above. You should realize that a Sheriff’s sale will end your ownership of the mortgaged property and your right to remain in it. If you continue to live in the property after the Sheriff’s sale, a lawsuit could be started to evict you. You have additional rights to help protect your interest in the property. YOU HAVE THE RIGHT TO SELL THE PROPERTY TO OBTAIN MONEY TO PAY OFF THE MORTGAGE DEBT, OR TO BORROW MONEY FROM ANOTHER LENDING INSTITUTION TO PAY OFF THIS DEBT. [YOU MAY HAVE THE RIGHT TO SELL OR TRANSFER THE PROPERTY SUBJECT TO THE MORTGAGE TO A BUYER OR TRANSFEREE WHO WILL ASSUME THE MORTGAGE DEBT, PROVIDED THAT ALL THE OUTSTANDING PAYMENTS, CHARGES AND ATTORNEY’S FEES AND COSTS ARE PAID PRIOR TO OR AT THE SALE, [AND THAT THE OTHER REQUIREMENTS UNDER THE MORTGAGE ARE SATISFIED]. CONTACT US TO DETERMINE UNDER WHAT CIRCUMSTANCES THIS RIGHT MIGHT EXIST]. YOU HAVE THE RIGHT TO HAVE THIS DEFAULT CURED BY ANY THIRD PARTY ACTING ON YOUR BEHALF. If you cure the default, the mortgage will be restored to the same position as if no default had occurred. However, you are not entitled to this right to cure your default more than three times in any calendar year. Authority The provisions of this § 7.4 issued under section 14 of the Savings Association Code of 1967 (7 P. S. § 6020-166). Source The provisions of this § 7.4 adopted March 22, 1974, effective March 23, 1974, 4 Pa.B. 509; amended March 29, 1974, effective March 30, 1974, 4 Pa.B. 577; amended January 10, 1975, effective January 11, 1975, 5 Pa.B. 72; reserved March 3, 1978, effective March 4, 1978, 8 Pa.B. 483; amended April 23, 1982, effective April 24, 1982, 12 Pa.B. 1314. Immediately preceding text appears at serial page (53064).

§ 7.5.  Commitments to enter into residential mortgages. Except for F.H.A. and V.A. loans, a mortgage commitment when agreed to by the residential mortgage debtor shall constitute a legally binding obligation on

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Ch. 30

§ 7.7.  [Reserved]. § 7.8.  Prepayment penalty prohibited.

(b)   A residential mortgage lender is entitled to receive a finance charge which includes interest and other charges permissible under the act, up to and including the date of receipt of prepayment from the residential mortgage debtor but not beyond the date of the receipt. (1)  If a mortgage obligation requiring payment on the tenth day of each month is prepaid in full by the residential mortgage debtor and received by the residential mortgage lender on the fifth day of the month, the residential mortgage lender is entitled to the finance charge to the fifth day of the month, when the prepayment was received.

419

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Index

The provisions of this § 7.8 adopted November 17, 1978, effective November 18, 1978, 8 Pa.B. 3200.

Part IX Ch. 68–72 Condos, etc.

Source

Part VIII Ch. 64–67 L/T

(d)  Immediately upon receipt of a prepayment, the residential mortgage lender shall stamp or otherwise duly record the date of receipt in its records. Prepayments made by a residential mortgage debtor after office or banking hours or on a nonbanking day on which a residential mortgage lender may provide certain limited services for the convenience of the public or its customers but is not otherwise open for business shall be processed by the residential mortgage lender on the next full business or banking day. (e)   A residential mortgage lender may collect any charge otherwise permitted by the act, this chapter or other law to the extent not inconsistent with section 405 of the act (41 P. S. § 405) and of this section.

Part VII Ch. 57–63 Litigation

(3)  If a residential mortgage obligation requiring payment on the first of each month is prepaid in full and mailed on or before the first of the month by the residential mortgage debtor to the residential mortgage lender who does not receive such prepayment until the fourth day of the month, the residential mortgage lender is entitled to the finance charge to the fourth day of the month, when the prepayment was received.

Part VI Ch. 49–56 Taxation

(2)   If a residential mortgage obligation requiring payment on the first day of each month is prepaid in full by the residential mortgage debtor to the residential mortgage lender on the fourth day of the month, the residential mortgage lender is entitled to the finance charge to the fourth day of the month, when the prepayment was received.

Part V Ch. 41–48A Zoning, etc.

(c)   Examples of this section are as follows:

Part IV Ch. 36–40 Insurance

(a)  Residential mortgage obligations contracted for on or after January 30, 1974 may be prepaid in full without a penalty or other charge before the maturity of the loan obligation.

Part III Ch. 23–35 Mortgages

§ 7.6.  [Reserved].

Part II Ch. 15–22 Deeds

Source The provisions of this § 7.5 adopted March 22, 1974, effective March 23, 1974, 4 Pa.B. 509; amended January 10, 1975, effective January 11, 1975, 5 Pa.B. 72.

Part I Ch. 1–14 Brokers

the part of the residential mortgage lender to make a residential mortgage loan within a specified time period in the future at a rate of interest not exceeding the maximum lawful rate of interest effective as of the date of commitment offer; provided, however, that the obligation may be conditioned upon such contingencies as are customary and necessary under the particular circumstances to protect the security of the residential mortgage lender. The commitment may not include any condition for increase of the interest rate at the time of loan settlement, even though the maximum lawful rate is then higher.

Table of Contents

PART III

12/22/21 10:45 AM

§ 7.9

RESIDENTIAL TRANSACTIONS

§ 7.9.  Disclosure requirements—statement of policy. (a)   Disclosures required under section 401 of the act (41 P. S. § 401) are those disclosures required by the Truth in Lending Act (15 U.S.C.A. §§ 1601—1667e) and the Real Estate Settlement Procedures Act of 1974 (12 U.S.C.A. §§ 2601— 2617). Residential mortgage lenders are not required to provide disclosures to residential mortgage debtors under section 401 when no disclosures are required to be provided by the Truth in Lending Act, the Real Estate Settlement Procedures Act of 1974 or regulations promulgated thereunder. (b)   By way of illustration, no disclosure is required under section 401 for an extension of credit for business or commercial purposes, even though the loan is secured by a lien on residential real estate, because those transactions are exempt under the Truth in Lending Act, the Real Estate Settlement Procedures Act of 1974 and regulations promulgated thereunder. (c)  This statement of policy reflects the Department’s past and continuing interpretation of section 401 of the act since the act was amended in 1977 by section 1 of the act of December 16, 1977 (P. L. 328, No. 97). Authority The provisions of this § 7.9 issued under section 601 of the act of January 30, 1974 (P. L. 13, No. 6) (41 P. S. § 601). Source The provisions of this § 7.9 adopted February 19, 1988, effective February 20, 1988, 18 Pa.B. 778.

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Table of Contents

CHAPTER 31 Part I Ch. 1–14 Brokers

MORTGAGE BANKERS AND BROKERS AND CONSUMER EQUITY PROTECTION CONTINUING EDUCATION

Part II Ch. 15–22 Deeds

10 Pennsylvania Code, Chapter 44 32 Pa.B. 1180, 40 Pa.B. 1180

Sec.

§ 44.1–44.5.   [Reserved].

The provisions of this Chapter 44 adopted March 1, 2002, effective March 2, 2002, 32 Pa.B. 1180, reserved June 4, 2010, effective June 5, 2010, 40 Pa.B. 2940,1 unless otherwise noted. Immediately preceding text appears at serial pages (287245) to (287248) and (340279).

Part IV Ch. 36–40 Insurance

Source

Part III Ch. 23–35 Mortgages

Authority The provisions of this Chapter 44 issued under section 304(e) of the Mortage Bankers and Brokers and Consumer Equity Protection Act (63 P. S. § 456.304(e)), reserved under 7 Pa.C.S. § 6138(a)(4), unless otherwise noted.

Part V Ch. 41–48A Zoning, etc.

§ 44.1–44.5.  [Reserved].

Part VI Ch. 49–56 Taxation Part VII Ch. 57–63 Litigation Index

gtb-parealestate22-all.indb 421

Part IX Ch. 68–72 Condos, etc.

421

Part VIII Ch. 64–67 L/T

1. The Analysis in 40 Pa.B. 2940 explained: On November 5, 2008, Chapter 3 of the Mortgage Bankers and Brokers and Consumer Equity Protection Act was repealed by operation of law and replaced by 7 Pa.C.S. Chapter 61 (relating to Mortgage Licensing Act). On August 5, 2009, 7 Pa.C.S. Chapter 61 was amended to include more stringent education requirements for mortgage licensees. See 7 Pa.C.S. § 6131.1 (relating to prelicensing and continuing education). The rescission was made, in part, to conform to the new Secure and Fair Enforcement for Mortgage Licensing Act of 2008 (12 U.S.C.A. §§ 5101–5116), which mandates minimum education requirements for mortgage loan originators. Based on the new statutory requirements, §§ 44.1–44.5 have been superseded by statute and thus obsolete.

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CHAPTER 32 REAL ESTATE APPRAISERS Chapter

32.1   Real Estate Appraisers Certification Act    63 P.S. §§ 457.1 to 457.19 32.2   Appraisal Management Company Registration Act    63 P.S. §§ 457.21 – 457.31

CHAPTER 32.1 REAL ESTATE APPRAISERS CERTIFICATION ACT 63 P.S. § 457.1 to 63 P.S. § 457.191

Sec. § § § § § § § § § § § § § § § § § § §

1. Short title 2. Definitions 3. Real estate appraiser certification required 4. State Board of Certified Real Estate Appraisers 5. Powers and duties of board 6. Application and qualifications 7. Reciprocity 8. Temporary practice 9. Fees 10. Certification renewal; records 11. Disciplinary and corrective measures 12. Reinstatement of certificate 13. Reporting of multiple certification 14. Surrender of suspended or revoked certificate 15. Penalties 16. Subpoenas 17. Injunctive relief 18. Scope of practice 19. Appropriation

Real Estate Appraisers Certification Act § 1.  Short title This act shall be known and may be cited as the Real Estate Appraisers Certification Act. § 2.  Definitions The following words and phrases when used in this act shall have the meanings given to them in this section unless the context clearly indicates otherwise: “Applicant.” A natural person. 1. Note: The act of July 10, 1990 (P.L.404, No.98), known as the Real Estate Appraisers Certification Act, is repealed insofar as it is inconsistent with Act of Jun. 29, 2018, P.L. 500, No. 75. See also Real Estate Licensing and Registration Act.

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Ch. 32.1

Part IV Ch. 36–40 Insurance Part V Ch. 41–48A Zoning, etc. Part VI Ch. 49–56 Taxation Part VII Ch. 57–63 Litigation Part VIII Ch. 64–67 L/T Part IX Ch. 68–72 Condos, etc. Index

gtb-parealestate22-all.indb 423

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423

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2. 12 U.S.C.A. § 3331 et seq.

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“Appraisal.” A written analysis, opinion or conclusion relating to the nature, quality, value or utility of specified interests in, or aspects of, identified real property, for or in expectation of compensation. “Board.” The State Board of Certified Real Estate Appraisers within the Bureau of Professional and Occupational Affairs in the Department of State. “Certified Pennsylvania evaluator.” A person who holds a current valid certificate issued under the act of April 16, 1992 (P.L.155, No.28), known as the Assessors Certification Act. “Professional member.” A certified Pennsylvania evaluator or a Statecertified real estate appraiser. “Secretary.” The Secretary of the Commonwealth or his or her designee. “State-certified real estate appraiser.” A person who holds a current valid certificate issued to him under the provisions of this act. § 3.   Real estate appraiser certification required It shall be unlawful for any person to do any of the following: (1)   To hold himself out as a State-certified real estate appraiser or to perform appraisals required by the Financial Institutions Reform, Recovery, and Enforcement Act of 1989 (Public Law 101-73, 103 Stat. 183)2 to be performed by a State-certified or State-licensed real estate appraiser unless that person holds an appropriate, current and valid certificate from the board to perform real estate appraisals. (2)   To perform real estate appraisals in nonfederally related transactions unless that person holds an appropriate, current and valid certificate from the board to perform real estate appraisals. (3)   To hold himself out as a real estate appraiser or appraiser trainee without an appropriate, current and valid certificate or license from the board. § 4.  State Board of Certified Real Estate Appraisers (a)  Creation.—There is hereby created the State Board of Certified Real Estate Appraisers as a departmental administrative board in the Department of State. The board shall consist of the following members: (1)   The Secretary of the Commonwealth or a designee. (2)   The Attorney General or a designee. (3)   The Secretary of Banking or a designee. (4)   Ten members who are citizens of the United States and who have been residents of this Commonwealth for a two-year period immediately prior to appointment. Six of the members shall be State-certified real estate appraisers, two of the members shall be certified Pennsylvania evaluators and two of the members shall be public members. Nothing in this paragraph shall prohibit the appointment of a professional member who is a certified Pennsylvania evaluator and also a State-certified real estate appraiser, except that the appointment shall specify in which capacity the member is being appointed. (b)   Term of office.—The professional and public members shall serve fouryear terms, except as provided in subsection (c) or (c.1), and shall be appointed by the Governor by and with the advice and consent of a majority of the members elected to the Senate. (c)  Initial appointments.—Within 90 days of the effective date of this act, the Governor shall nominate one professional member to serve a four-year term; one public member and one professional member to serve three-year terms; one public member and one professional member to serve two-year terms; and one professional member to serve a one-year term.

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§ 5

REAL ESTATE APPRAISERS

(c.1)  Initial appointments of certified Pennsylvania evaluators.— Within 90 days of the effective date of this subsection, the Governor shall nominate one certified Pennsylvania evaluator to serve a two-year term and one certified Pennsylvania evaluator to serve a four-year term. (d)  Continuation in office.—Each professional and public member shall continue in office until a successor is duly appointed and qualified but no longer than six months after the expiration of the term. In the event that a board member shall die, resign or otherwise become disqualified during the term of office, a successor shall be appointed in the same way and with the same qualifications as set forth in this section and shall hold office for the unexpired portion of the unexpired term. (e)   Limit on terms.—No board member shall be eligible for appointment to serve more than two consecutive four-year terms. (f)   Forfeiture of membership.—A board member who fails to attend three consecutive meetings shall forfeit his or her seat unless the secretary, upon written request from the member, finds that the member should be excused from a meeting because of illness or the death of a family member. (g)  Compensation.—Each member of the board, except the secretary, the Attorney General and the Secretary of Banking, shall receive per diem compensation at the rate of $60 per diem when actually attending to the work of the board. Members shall also receive reasonable traveling, hotel and other necessary expenses incurred in the performance of their duties in accordance with Commonwealth regulations. (h)   Forfeiture for nonattendance.—A public member who fails to attend two consecutive statutorily mandated training seminars in accordance with section 813(e) of the act of April 9, 1929 (P.L. 177, No. 175), known as The Administrative Code of 1929,3 shall forfeit his or her seat unless the secretary, upon written request from the public member, finds that the public member should be excused from a meeting because of illness or the death of a family member. (i)  Quorum.—A majority of the members of the board serving in accordance with law shall constitute a quorum for purposes of conducting the business of the board. A member may not be counted as part of a quorum or vote on any issue unless he or she is physically in attendance at the meeting. (j)  Meetings.—The board shall meet at least four times a year in Harrisburg. (k)  Notice.—Reasonable notice of all meetings shall be given in conformity with the act of July 3, 1986 (P.L. 388, No. 84), known as the Sunshine Act.4 (l)  Operating procedures.—The board shall meet within 30 days after the appointment of its initial members and set up operating procedures and an application form for certifying appraisers. It shall be the responsibility of the board to circulate these forms and educate the public to the requirements of certification. No other board and no commission within the Bureau of Professional and Occupational Affairs shall be responsible, in any manner, for the policies, procedures or other substantive matters which are within the powers and duties of the board as set forth in this act. (m)   Election of officers.—The board shall elect annually from its membership a chairman, a vice chairman and a secretary. § 5.  Powers and duties of board The board shall have the following powers and duties: (1)  To pass upon the qualifications and fitness of applicants for certification or licensure and to adopt and revise rules and regulations requiring applicants for certification to pass examinations relating to their qualifications for certification. 3. 71 P.S. § 279.4(e). 4. 65 P.S. § 271 et seq.

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Part IV Ch. 36–40 Insurance Part V Ch. 41–48A Zoning, etc. Part VI Ch. 49–56 Taxation Part VII Ch. 57–63 Litigation Part VIII Ch. 64–67 L/T Part IX Ch. 68–72 Condos, etc. Index

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5. 12 U.S.C.A. § 3331 et seq. 6. 12 U.S.C.A. § 3331 et seq.

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(2)   To adopt and, from time to time, revise such rules and regulations as may be necessary to carry out the provisions of this act. Such regulations shall include, but not be limited to, standards of professional appraisal practice requiring that appraisals be performed in accordance with generally accepted appraisal standards as required pursuant to the Financial Institutions Reform, Recovery, and Enforcement Act of 1989 (Public Law 101-73, 103 Stat. 183).5 (3)   To examine for, deny, approve, issue, revoke, suspend or renew certificates of appraisers and licenses of appraiser trainees pursuant to this act and to conduct hearings in connection therewith. (4)   To conduct hearings upon complaints concerning violations of the provisions of this act and the rules and regulations adopted pursuant to this act and seek the prosecution and enjoinder of all such violations. (5)   To expend moneys necessary to the proper carrying out of its assigned duties. (6)   To establish fees for the operation of the board, including fees for the issuance and renewal of certificates and licenses and for examinations. (7)   To submit annually a report to the Professional Licensure Committee of the House of Representatives and the Consumer Protection and Professional Licensure Committee of the Senate containing a description of the types of complaints received, status of the cases, board action which has been taken and length of time from the initial complaint to final board resolution. (8)  To submit annually to the Department of State, an estimate of the finan­cial requirements of the board for its administrative, investigative, legal and miscellaneous expenses. (9)   To submit annually to the Appropriations Committees of the House of Representatives and the Senate, 15 days after the Governor has submitted his budget to the General Assembly, a copy of the budget request for the upcoming fiscal year which the board previously submitted to the Department of State. (10)  To submit annually pursuant to the Financial Institutions Reform, Recovery, and Enforcement Act of 1989 a roster listing individuals who have received State certification. (11)   To the extent required by standards and regulations for the qualifications of appraisers promulgated pursuant to the Financial Institutions Reform, Recovery, and Enforcement Act of 1989, to consider criminal history record information of convictions and arrests that do not result in a conviction, notwithstanding the provisions of 18 Pa.C.S. § 9124(b)(1) (relating to use of records by licensing agencies). § 6.  Application and qualifications (a)   Classes of certification.—There shall be three classes of certified real estate appraisers as follows: (1)   Certified residential appraiser, which shall consist of those persons applying for and granted certification relating solely to the appraisal of residential real property in accordance with the criteria established by the Appraiser Qualifications Board of the Appraisal Foundation required pursuant to the Financial Institutions Reform, Recovery, and Enforcement Act of 1989 (Public Law 101-73, 103 Stat. 183).6 (2)   Certified general appraiser, which shall consist of those persons applying for and granted certification relating to the appraisal of both residential and nonresidential real property without limitation in accordance with the criteria established by the Appraiser Qualifications Board of the Appraisal Foundation required pursuant to the Financial Institutions Reform, Recovery, and Enforcement Act of 1989 (Public Law 101-73, 103 Stat. 183). (3)   Broker/appraiser, which shall consist of those persons who, as of Sep-

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§ 6

REAL ESTATE APPRAISERS

tember 3, 1996, were licensed real estate brokers under the act of February 19, 1980 (P.L. 15, No. 9),7 known as the Real Estate Licensing and Registration Act, and who, by September 3, 1998, made application to the board and were granted without examination a broker/appraiser certificate. A holder of a broker/appraiser certificate shall only be permitted to perform those real property appraisals that were permitted to be performed by a licensed real estate broker under the Real Estate Licensing and Registration Act as of September 3, 1996. A holder of a broker/appraiser certificate is not authorized to perform real estate appraisals pursuant to the Financial Institutions Reform, Recovery, and Enforcement Act of 1989. (a.1)   Appraiser trainee license.—In addition to the certificates authorized in subsection (a), the board shall issue an appraiser trainee license, without examination, to any person who meets the appraiser trainee educational requirements set by the board and who does not already hold an appraiser credential under subsection (a). An appraiser trainee shall operate under the direct supervision of one certified residential appraiser or certified general appraiser for the purpose of completing the experience requirement for an appraiser credential in subsection (a). An appraiser trainee shall be permitted to assist in the performance of any appraisal that is within the supervisory appraiser’s scope of practice. The supervisory appraiser shall be in good standing, have at least five years of experience as a certified residential appraiser or certified general appraiser and shall not supervise more than three appraiser trainees. (b)   Classification to be specified.—The application for examination, original certification or license and renewal of certification or license shall specify the classification being applied for. (c)  Application.—An applicant for certification or license shall submit a written application on forms provided by the board that includes information subject to the penalties for false swearing set forth in 18 Pa.C.S. § 4903 (relating to false swearing) or unsworn falsification to authorities set forth in 18 Pa.C.S. § 4904 (relating to unsworn falsification to authorities) and which demonstrates that: (1)  The applicant is of good moral character. (2)  The applicant has paid the application fee. (3)  The applicant has satisfied requirements for dissemination to the board of criminal history record information required by the Appraiser Qualifications Board of the Appraisal Foundation. (4)  The applicant has satisfied the qualifications for licensure as an appraiser trainee or certification as a residential real estate appraiser or general real estate appraiser required by: (i)  This act. (ii)  The regulations of the board. (iii)  The Real Property Appraiser Qualification Criteria of the Appraiser Qualifications Board of the Appraisal Foundation. (d)  Residential appraiser certification.—As a prerequisite to taking the examination for certification relating solely to the appraisal of residential real property, an applicant shall, in addition to meeting the requirements of subsection (c), meet the minimum education and experience requirements established pursuant to the Financial Institutions Reform, Recovery, and Enforcement Act of 1989. (e)   General appraiser certification.—As a prerequisite to taking the examination for the general certification relating to the appraisal of real property, an applicant shall, in addition to meeting the requirements of subsection (c), meet the minimum education and experience requirements established pursuant to the Financial Institutions Reform, Recovery, and Enforcement Act of 1989. (f)   Definition of subjects.—The board shall prescribe and define the sub7. 63 P.S. § 455.101 et seq.

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Ch. 32.1

Part IV Ch. 36–40 Insurance Part V Ch. 41–48A Zoning, etc. Part VI Ch. 49–56 Taxation Part VII Ch. 57–63 Litigation Part VIII Ch. 64–67 L/T Part IX Ch. 68–72 Condos, etc. Index

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427

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8. 71 P.S. § 279.3a. 9. 71 P.S. § 745.1 et seq.

Part I Ch. 1–14 Brokers

jects related to real property appraisal and the experience in real property appraisal which will satisfy the requirements of subsections (a), (a.1), (d) and (e). To the extent permitted pursuant to the Financial Institutions Reform, Recovery, and Enforcement Act of 1989 with regard to certified residential and general appraisers, the board may give credit to an applicant for classroom hours of academic experience successfully completed prior to the board’s prescription and definition of subjects pursuant to this subsection. (g)  Examinations.—Examinations for certification or license shall be selected in accordance with the Financial Institutions Reform, Recovery, and Enforcement Act of 1989. Examinations shall be prepared and administered by a qualified and approved professional testing organization in accordance with section 812.18 of the act of April 9, 1929 (P.L. 177, No. 175), known as The Administrative Code of 1929. (h)   Deleted by 1996, July 2, P.L. 460, No. 71, § 1, effective in 60 days. (i) Real estate brokers as appraisers.— (1)   Nothing in this section shall preclude a licensed real estate broker from also holding a license or certificate under subsection (a)(1) or (2) or (a.1). (2)   All persons holding a broker/appraiser certificate under subsection (a)(3) shall be entitled to hold the certificate for the entire term and shall be entitled and subject to the privileges, obligations and renewals which accompany the certificate. § 7.  Reciprocity The board shall have the power to grant a reciprocal certification to an applicant who is certified as an appraiser or licensed as an appraiser trainee in another state and has demonstrated qualifications which equal or exceed those required pursuant to this act in the determination of the board. § 8.  Temporary practice As required by the Financial Institutions Reform, Recovery, and Enforcement Act of 1989 (Public Law 101-73, 103 Stat. 183), the board shall recognize on a temporary basis the certification or license of an appraiser issued by another state if: (1)   the property to be appraised is part of a federally related transaction; (2)   the appraiser’s business is of a temporary nature; and (3)   the appraiser registers with the board. § 9.  Fees (a)  Imposition and increases.—All fees established pursuant to this act shall be fixed by the board by regulation and shall be subject to the act of June 25, 1982 (P.L. 633, No. 181), known as the Regulatory Review Act.9 If the revenues raised by fees, fines and civil penalties imposed pursuant to this act are not sufficient to meet expenditures over a two-year period, the board shall increase those fees by regulation so that the projected revenues will meet or exceed projected expenditures. (b)  Additional increases.—If the Bureau of Professional and Occupational Affairs determines that the fees established by the board under subsection (a) are inadequate to meet the minimum enforcement efforts required by this act, then the bureau, after consultation with the board and subject to the Regulatory Review Act, shall increase the fees by regulation in an amount that adequate revenues are raised to meet the required enforcement effort. (c)  Additional fees.—In addition to fees established pursuant to this act, the board is authorized to collect and transmit fees required pursuant to the Financial Institutions Reform, Recovery, and Enforcement Act of 1989 (Public Law 101-73, 103 Stat. 183).

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§ 10

REAL ESTATE APPRAISERS

§ 10.  Certification renewal, licensure renewal and records (a)  Renewal term.— (1)   Except as provided under paragraph (2), renewal of certification or licensure shall be on a biennial basis for persons in good standing. (2)   The Board may prescribe limitations on the number of times a licensed appraiser trainee may renew a license. (b)  Continuing education for residential and general appraisers.— The board shall by regulation require evidence of professional activity or continuing education as a condition of certification renewal of residential and general appraisers if, and only to the minimum extent, required pursuant to the Financial Institutions Reform, Recovery, and Enforcement Act of 1989 (Public Law 101-73, 103 Stat. 183).10 No credit shall be given for any course in office management or practice building. (b.1)  Continuing education for broker/appraisers.—Broker/appraisers shall be subject to the same continuing education requirements for certification renewal as residential and general appraisers. The board shall have the power and authority to promulgate regulations to prescribe evidence of continuing education required for certification renewal pursuant to this section. (b.2)   Continuing education for licensed appraiser trainees.—Licensed appraiser trainees shall be subject to the same continuing education requirements for licensure renewal as residential and general appraisers, but any qualifying education completed after the issuance of the license and during the biennial licensure period may also be applied to satisfy the licensed appraiser trainee’s continuing education requirements under this subsection. (c)  Records.—A record of all persons licensed as appraiser trainees and all persons certified as real estate appraisers in this Commonwealth shall be kept in the office of the board, shall be open to public inspection and copying upon payment of a nominal fee for copying the record and shall be accessible on the board’s Internet website. Each certificateholder and licensee shall advise the board of the address of his or her principal place of business. § 11.  Disciplinary and corrective measures (a)  Authority of board.—The board may deny, suspend or revoke certificates or licenses, or limit, restrict or reprimand a certificateholder or licensee for any of the following causes: (1)  Procuring or attempting to procure a certificate or license or renewal of a certificate or license pursuant to this act by knowingly making a false statement, submitting false information or refusing to provide complete information in response to a question in an application for certification or licensure or renewal of certification or licensure through any form of fraud or misrepresentation. (2)   Failing to meet the minimum qualifications established by this act. (3)   Paying, or offering to pay, any valuable consideration other than provided for by this act to any member or employee of the board to procure a certificate under this act. (4)   Being convicted of or pleading guilty to a crime which is substantially related to the qualifications, functions and duties of a person developing real property appraisals and communicating real property appraisals to others. (5)   Performing an act or omitting an act when such performance or omission involves dishonesty, fraud or misrepresentation with intent to substantially 10. 12 U.S.C.A. § 3331 et seq.

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Part IV Ch. 36–40 Insurance Part V Ch. 41–48A Zoning, etc. Part VI Ch. 49–56 Taxation Part VII Ch. 57–63 Litigation Part VIII Ch. 64–67 L/T Part IX Ch. 68–72 Condos, etc. Index

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11. 12 U.S.C.A. § 3331 et seq.

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benefit the certificateholder or licensee in his profession or with the intent to substantially injure another person. (6)   Violating any of the standards for the development or communication of real property appraisals as required pursuant to this act or the Financial Institutions Reform, Recovery, and Enforcement Act of 1989 (Public Law 10173, 103 Stat. 183).11 (7)   Failing or refusing, without good cause, to exercise reasonable diligence in developing an appraisal, preparing an appraisal report or communicating an appraisal. (8)   Negligently or incompetently developing an appraisal, preparing an appraisal report or communicating an appraisal. (9)   Willfully disregarding or violating any of the provisions of this act or the guidelines or regulations of the board for the administration and enforcement of the provisions of this act. (10)   Accepting an appraisal assignment when the employment itself is contingent upon the appraiser’s reporting a predetermined analysis or opinion, or where the fee to be paid for the performance of the appraisal assignment is contingent upon the opinion, conclusion or valuation reached, or upon the consequence resulting from the appraisal assignment. (11)  Violating the confidential nature of records to which the appraiser gained access through employment or engagement as an appraiser. (12)   Making the fee or compensation contingent upon an award or recovery in any case where the amount of the award or recovery would be affected by the appraisal. (13)   Basing the fee or compensation on a percentage of the final estimate of value. (14)  Contracting for or accepting compensation for appraisal services in the form of a commission, rebate, division of brokerage commissions or any other similar form. (15)  Having a license or certificate to perform appraisals suspended, revoked or refused by an appraisal licensure or certification authority of another state, territory or country, or receiving other disciplinary actions by the appraisal licensure or certification authority of another state, territory or country. (16)   Suspension or revocation of the right to practice by a Federal or State governmental agency. (17)  Having been found by a civil court of competent jurisdiction to have performed a fraudulent appraisal. (b)  Board action.—When the board finds that the certificate or license, application for certification or licensure or renewal of certification or licensure of any person may be denied, revoked, restricted or suspended under the terms of subsection (a), the board may: (1)   Deny the application for certification or licensure or for renewal of certification or licensure. (2)   Administer a public reprimand. (3)  Revoke, suspend, limit or otherwise restrict a certificate or license as determined by the board. (4)   Suspend enforcement of its findings thereof and place a certificateholder or licensee on probation with the right to vacate the probationary order for noncompliance.

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(5)   Restore a suspended certificate or license and impose any disciplinary or corrective measure which it might originally have imposed. § 12.  Reinstatement of certificate or license Unless ordered to do so by Commonwealth Court or an appeal therefrom, the board shall not reinstate the certificate or license of a person to practice as a certified real estate appraiser or as an appraiser trainee, pursuant to this act, which has been revoked. Any person whose certificate or license has been revoked may apply for reinstatement, after a period of at least five years, but must meet all of the certification or licensure qualifications of this act, including the examination requirement, if he or she desires to hold himself or herself out or to practice as a real estate appraiser pursuant to this act at any time after such revocation. § 13.  Reporting of multiple certification Any appraiser certified in this Commonwealth who is also certified or licensed to perform appraisals in any other state, territory or country shall report this information to the board on the biennial renewal application. Any disciplinary action taken in any other state, territory or country shall be reported to the board on the biennial renewal application, or within 90 days of disposition, whichever is sooner. Multiple licensure or certification shall be noted by the board on the certified appraiser’s record, and such state, territory or country shall be notified by the board of any disciplinary actions taken against said certified appraiser in this Commonwealth. § 14.  Surrender of suspended or revoked certificate or license The board shall require a person whose certificate or license has been suspended or revoked to return the certificate or license in such manner as the board directs. Failure to do so shall be a misdemeanor of the third degree. § 15.  Penalties (a)  Criminal penalties.—A person who violates this act commits a misdemeanor of the third degree and shall, upon conviction, be sentenced to pay a fine of up to $1,000 or to imprisonment for not more than 90 days, or both. (b) Civil penalty.—In addition to any other civil remedy or criminal penalty provided for in this act, the board, by a vote of the majority of the maximum number of the authorized membership of the board as provided by law, or by a vote of the majority of the duly qualified and confirmed membership or a minimum of three members, whichever is greater, may levy a civil penalty of up to $10,000 on any certificateholder or licensee who violates any provision of this act or any noncertificateholder who holds himself out as a real estate appraiser in this Commonwealth or who performs an appraisal for which certification or licensure is required under the Financial Institutions Reform, Recovery, and Enforcement Act of 1989 (Public Law 101-73, 103 Stat. 183)12 an appraisal in any federally related or nonfederally related transaction or any other appraisal. The board shall levy this penalty only after affording the accused party the opportunity for a hearing, as provided in 2 Pa.C.S. (relating to administrative law and procedure). (c)  Disposition.—All fines and civil penalties imposed in accordance with this section shall be paid into the Professional Licensure Augmentation Account. § 16.  Subpoenas (a)   Power to issue.—The board shall have the authority to issue subpoenas, upon application of an attorney responsible for representing the Commonwealth in disciplinary matters before the board, for the purpose of investigating alleged

12. 12 U.S.C.A. § 3331 et seq.

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(b)  Notification of board.—An attorney responsible for representing the Commonwealth in disciplinary matters before the board shall notify the board immediately upon receiving notification of an alleged violation of this act. The board shall maintain current records of all reports of alleged violations and periodically review the records for the purpose of determining that each alleged violation has been resolved in a timely manner.

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violations of the disciplinary provisions administered by the board. The board shall have the power to subpoena witnesses, to administer oaths, to examine witnesses and to take such testimony or compel the production of such books, records, papers and documents as it may deem necessary or proper in, and pertinent to, any proceeding, investigation or hearing held or had by it. Client records may not be subpoenaed without consent of the client or without order of a court of competent jurisdiction on a showing that the records are reasonably necessary for the conduct of the investigation. The court may impose such limitations on the scope of the subpoena as are necessary to prevent unnecessary intrusion into client confidential information. The board is authorized to apply to Commonwealth Court to enforce its subpoenas.

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§ 17.  Injunctive relief Part IV Ch. 36–40 Insurance Part V Ch. 41–48A Zoning, etc. Part VI Ch. 49–56 Taxation Part VII Ch. 57–63 Litigation

(a)  Injunction.—A violation of section 3 may be enjoined by the courts upon petition of the secretary or the board. In any proceeding under this section, it shall not be necessary to show that any person is individually injured by the actions complained of. If the court finds that the respondent has violated section 3, it shall enjoin him or her from so practicing or holding himself or herself out until he or she has been duly certified. Procedure in such cases shall be the same as in any other injunction suit. (b)  Remedy cumulative.—The injunctive remedy provided in this section shall be in addition to any other civil or criminal prosecution and punishment. § 18.  Scope of practice Persons who are certified as residential real estate appraisers and general real estate appraisers under this act shall also have authority to perform real estate appraisals in nonfederally related transactions appropriate to their certification classification. Brokers/appraisers shall continue to have authority to perform real estate appraisals in nonfederally related transactions. § 19.  Appropriation The sum of $85,000, or as much thereof as may be necessary, is hereby appropriated from the Professional Licensure Augmentation Account within the General Fund to the Bureau of Professional and Occupational Affairs in the Department of State for the payment of costs of processing certificates and renewals, for the operation of the board and for other general costs of the bureau operations relating to this act. The appropriation granted shall be repaid by the board within six years of the beginning of issuance of certificates by the board.

Part VIII Ch. 64–67 L/T Part IX Ch. 68–72 Condos, etc.

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CHAPTER 32.2 APPRAISAL MANAGEMENT COMPANY REGISTRATION ACT 63 P.S. §§ 457.21 – 457.3113

Sec.

§ 1. Short title § 2. Definitions § 3. Registration of appraisal management companies required § 4. Powers of board § 5. Requirements for registration § 6. Fees and renewals § 7. Responsibilities and duties of appraisal management companies § 8. Prohibited activities § 9. Registry of applicants and roster § 10. Disciplinary measures § 11. Application

§ 1.  Short title This act shall be known and may be cited as the Appraisal Management Company Registration Act. § 2.  Definitions The following words and phrases when used in this act shall have the meanings given to them in this section unless the context clearly indicates otherwise: “Applicant.” A person who files an application for registration as an appraisal management company. “Appraisal.” The term has the meaning provided in section 2 of the act of July 10, 1990 (P.L. 404, No. 98),14 known as the Real Estate Appraisers Certification Act. “Appraisal management company.” A person that provides appraisal management services and acts as a third-party intermediary between a person seeking a valuation of real estate located in this Commonwealth and an appraiser or firm of appraisers. “Appraisal management services.” Conducting business by telephone, by electronic means, by mail or in person directly or indirectly for compensation or in the expectation of compensation to manage the performance of appraisals for a client, including, without limitation: (1)  Recruiting appraisers. (2)   Contracting with appraisers to perform appraisals. (3)   Negotiating fees with appraisers. (4)   Receiving appraisal orders and appraisals. (5)   Submitting appraisals received from appraisers to the client. (6)   Providing related administrative and clerical duties. “Appraisal review.” An appraisal review as defined by the Uniform Standards of Professional Appraisal Practice issued by the Appraisal Standards Board.

13. Note: The act of February 2, 2012 (P.L.30, No.4), known as the Appraisal Management Company Registration Act, is repealed insofar as it is inconsistent with Act of Jun. 29, 2018, P.L. 500, No. 75. See also Real Estate Licensing and Registration Act. 14. 63 P.S. § 457.2.

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Ch. 32.2

Part VI Ch. 49–56 Taxation Part VII Ch. 57–63 Litigation Part VIII Ch. 64–67 L/T Part IX Ch. 68–72 Condos, etc. Index

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Part V Ch. 41–48A Zoning, etc.

433

Part IV Ch. 36–40 Insurance

P.S. § 457.1 et seq. U.S.C.A. § 3353. P.S. § 456.101 et seq. P.S. § 455.101 et seq. P.S. §§ 1201, 1202, 1203.

Part III Ch. 23–35 Mortgages

63 12 63 63 45

Part II Ch. 15–22 Deeds

15. 16. 17. 18. 19.

Part I Ch. 1–14 Brokers

“Appraiser.” An individual certified under the act of July 10, 1990 (P.L. 404, No. 98),15 known as the Real Estate Appraisers Certification Act, as a certified residential appraiser or certified general appraiser. “Appraiser panel.” A group of appraisers that have been selected by an appraisal management company to perform appraisals for the appraisal management company. “Board.” The State Board of Certified Real Estate Appraisers within the Bureau of Professional and Occupational Affairs in the Department of State. “Client.” A person that contracts with or otherwise enters into an agreement with an appraisal management company for the performance of appraisal management services. “Compliance person.” An individual who is employed, appointed or authorized by an appraisal management company to be responsible for ensuring compliance with this act. “Exempt company.” A person that is exempted from registering under this act under section 1124 of the Financial Institutions Reform, Recovery, and Enforcement Act of 1989 (Public Law 101-73, 103 Stat. 183).16 “Key person.” A person other than a compliance person who is a director, officer, supervisor, manager or other person performing a similar function in an appraisal management company. “Mortgage Bankers and Brokers and Consumer Equity Protection Act.” The act of December 22, 1989 (P.L. 687, No. 90),17 known as the Mortgage Bankers and Brokers and Consumer Equity Protection Act. “REACA.” The act of July 10, 1990 (P.L. 404, No. 98), known as the Real Estate Appraisers Certification Act. “Registrant.” An appraisal management company that is registered under this act. “RELRA.” The act of February 19, 1980 (P.L. 15, No. 9),18 known as the Real Estate Licensing and Registration Act. § 3.   Registration of appraisal management companies required Except as provided in section 11, a person who is not an exempt company or a registrant may not: (1)   Act as an appraisal management company in this Commonwealth. (2)   Hold out as an appraisal management company in this Commonwealth. (3)   Advertise or hold out as engaging in or conducting the business of an appraisal management company in this Commonwealth. § 4.   Powers of board (a)  Regulations.—The board shall have the powers necessary to implement, administer and enforce this act, including the power to adopt rules and regulations consistent with this act. (b)  Temporary regulations.—In order to facilitate the prompt implementation of this act, regulations promulgated by the board shall be deemed temporary regulations which shall expire no later than three years following the effective date of this section. The board may promulgate temporary regulations which shall not be subject to: (1)  Sections 201, 202 and 203 of the act of July 31, 1968 (P.L. 769, No. 240),19 referred to as the Commonwealth Documents Law.

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REAL ESTATE APPRAISERS

(2)  The act of June 25, 1982 (P.L. 633, No. 181),20 known as the Regulatory Review Act. (c)  Expiration.—The authority provided to the board to adopt temporary regulations under subsection (b) shall expire three years from the effective date of this section. Regulations adopted after that date shall be promulgated as provided by law. § 5.   Requirements for registration (a)  Application.—Before acting or offering to act as an appraisal management company in this Commonwealth, a person that is not an exempt company shall make written application to the board for registration accompanied by the required fee and bond or letter of credit. (b)  Required information.—The application shall contain such information as the board shall require, including the following information: (1)   The name, business street address, telephone number and other contact information of the applicant. (2)  If the applicant is not an individual and is incorporated or otherwise formed under the laws of a jurisdiction other than this Commonwealth, documentation that the applicant is authorized to transact business in this Commonwealth. (3)   The name, street address, telephone number and other contact information of any person that owns 10% or more of the applicant. (4)   The name, street address, telephone number and other contact information of the applicant’s compliance person. (5)   A certification that the applicant: (i)   Has a system in place to verify that a person being added to an appraiser panel of the applicant or who will otherwise perform appraisals for the applicant of property located in this Commonwealth is a certified appraiser and in good standing in this Commonwealth under REACA. (ii)   Has a system in place for the performance of appraisal reviews with respect to the work of all appraisers that are performing appraisals for the applicant of property located in this Commonwealth to determine whether the appraisals are being conducted in conformance with the minimum standards under REACA both on a periodic basis and whenever requested by a client. (iii)   Maintains a detailed record of each request for an appraisal that it receives, the appraiser assigned to perform the appraisal, the fees received from the client for the appraisal and the fees paid to the appraiser. (6)   Any discipline imposed on the applicant in this Commonwealth or any other state under any law regulating appraisers, appraisal management companies, real estate brokers or salespersons. (7)   Any criminal conviction of the applicant during the previous ten years in this Commonwealth or any other state or federal jurisdiction. (8)   Any other information required by rules and regulations of the board. (c)   Requirements for registration.—The board shall register an applicant as an appraisal management company in this Commonwealth upon: (1)   Receipt of a properly completed application. (2)   Payment of the required fee. (3)   Posting of the required bond or letter of credit. (4)   A determination by the board that the activities of the applicant will be directed and conducted by persons of good moral character as defined in the rules and regulations of the board. 20. 71 P.S. § 745.1 et seq.

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Part III Ch. 23–35 Mortgages

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Part II Ch. 15–22 Deeds

§ 6.   Fees and renewals (a) Filing fees.—The fee to file an application for registration or renewal of a registration under this act shall be $1,000 or such other amounts as are set by the rules and regulations of the board. (b)   Bond or letter of credit. (1)   In addition to the filing fee, each applicant for registration shall either comply with: (i)   paragraph (2) regarding the posting of a bond; or (ii)   paragraph (3) regarding the posting of a letter of credit. (2)   The requirements for posting a bond shall be: (i)   The bond shall be in the amount of $20,000 or any other amount as set by the rules and regulations of the board. (ii)   The bond shall be in the form prescribed by the rules and regulations of the board. (iii)   The bond shall accrue to the Commonwealth for the benefit of: (A)   a claimant against the registrant to secure the faithful performance of the registrant’s obligations under this act; or (B)   an appraiser who has performed an appraisal for the registrant for which the appraiser has not been paid. (iv)  The aggregate liability of the surety shall not exceed the principal sum of the bond. (v)   A party having a claim against the registrant may bring suit directly on the surety bond or the board may bring suit on behalf of the party having a claim against the registrant. (vi)   The amount of the bond shall be restored to the full amount required within 15 days after the payment of any claim on the bond. (3)   The requirements for posting a letter of credit shall be: (i)  The letter of credit shall be in the amount of $20,000 or any other amount as set by the rules and regulations of the board. (ii)  The letter of credit shall be irrevocable and in a form approved by the board. The letter of credit shall be payable to the Bureau of Professional and Occupational Affairs in the Department of State. (iii)   The letter of credit shall be for the use and the benefit of: (A)   a person suffering damages for failure of the registrant to perform its obligations under this act; or (B)   An appraiser who has performed an appraisal for the registrant for which the appraiser has not been paid. (iv)   A person described under subparagraph (iii) may file with the bureau a complaint against the registrant and request a draw upon the registrant’s letter of credit. Upon receipt of a complaint, the bureau shall notify the registrant and investigate the complaint. Upon determination by the bureau that the registrant is liable to the complainant, the bureau may, after

Part I Ch. 1–14 Brokers

(d)   Denial of application.— (1)   If the board finds that there is reason to deny the application for registration, the board shall notify the applicant that the application has been denied and shall afford the applicant an opportunity for a hearing before the board to show cause why the application should not be denied. (2)   All proceedings concerning the denial of an application for registration shall be governed by 2 Pa.C.S. (relating to administrative law and procedure). (e)  Construction.—The acceptance by the board of an application for registration does not constitute the approval of its contents or waive the authority of the board to take disciplinary action under this act.

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REAL ESTATE APPRAISERS

providing notice to the registrant, draw upon the irrevocable letter of credit to satisfy the complaint. (v)   Upon a draw against a letter of credit, the registrant must provide a new letter of credit in the amount required under subparagraph (i). (c)  Renewal.— (1)  Registrations under this act shall be renewed on a biennial basis for persons in good standing. (2)   Failure to timely renew a registration shall result in a loss of authority to operate under this act. (3)   A request to reinstate a registration shall be accompanied by payment of a penalty of $50 for each month of delinquency. (4)  The contents of an application for renewal shall be prescribed by the rules and regulations of the board. § 7.   Responsibilities and duties of appraisal management companies (a)  Conduct of reviews.—All appraisal reviews in this Commonwealth must be conducted for an appraisal management company by: (1)   a certified appraiser in good standing in this Commonwealth; or (2)   a certified or licensed appraiser in good standing in another state. (b)  Records.— (1)   An appraisal management company shall maintain or cause to be maintained: (i)   in the case of a registrant, complete records of its compliance with the certifications required under section 5(b)(5); and (ii)   in the case of registrants and exempt companies, such accounts, correspondence, memoranda, papers, books and other records as shall be required by the rules and regulations of the board. (2)   The records must be retained for: (i)   five years after their preparation; (ii)  two years after final disposition of any judicial proceeding that involves the actions of the appraisal management company that are the subject of the records; or (iii)   such other period as shall be required by the rules and regulations of the board with respect to a particular class or type of records. (3)  The board may inspect the records required under paragraph (1) at any time. (c)  Compliance person.— (1)  An appraisal management company shall at all times have a compliance person. (2) A registrant shall file a certification with the board in a form approved by the board certifying: (i)   The identity of its compliance person. (ii)  The individual’s acceptance of the responsibilities of a compliance person. (3)  A registrant shall notify the board within 30 days of a change in its compliance person. (4)   An individual registrant who operates as a sole proprietorship is considered the compliance person under this act. (d)  Updating of board records.—If the information contained in a document filed with the board is or becomes inaccurate or incomplete in any material respect, the registrant shall promptly file an amendment correcting the information contained in the document.

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Part VII Ch. 57–63 Litigation Part VIII Ch. 64–67 L/T Part IX Ch. 68–72 Condos, etc. Index

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Part VI Ch. 49–56 Taxation

437

Part V Ch. 41–48A Zoning, etc.

21. 63 P.S. § 455.201.

Part IV Ch. 36–40 Insurance

(i)   an estimated, predetermined or desired valuation in an appraisal; or

Part III Ch. 23–35 Mortgages

(6)   Request that an appraiser provide:

Part II Ch. 15–22 Deeds

(5)  Enter into a contract or agreement with an appraiser for the performance of appraisals unless the appraiser is certified and in good standing with the board.

Part I Ch. 1–14 Brokers

(e)  Disclosure.—An appraisal management company shall disclose to its lender the fees paid for an appraisal separately from any other fees or charges for appraisal management services. (f)  Notice of discipline.—A registrant must notify the board in writing within 30 days after its occurrence of any denial, revocation or suspension of its designation, registration, certificate or license under any law of any jurisdiction other than this Commonwealth regulating appraisal management companies, the imposition of any other form of discipline under any such law or the commencement of a disciplinary or enforcement action against the registrant under any such law. (g)  Provision of sales contract.—Whenever an appraisal management company requests an appraiser to perform an appraisal, the appraisal management company must make a reasonable effort to provide in a timely manner to the appraiser a copy of the contract for the sale of the property, if available, along with legal descriptions and any other documents pertinent to the assignment. § 8.  Prohibited activities (a)  Improper influence.—An employee, key person, compliance person or agent of an appraisal management company shall not improperly influence or attempt to improperly influence the development, reporting, result or review of an appraisal, including, without limitation, through the use of intimidation, coercion, extortion, bribery, blackmail, threat of nonpayment or withholding payment for an appraisal or threat of exclusion from future appraisal work. (b)  Other prohibitions.—A registrant or exempt company shall not: (1)   Hire, employ or in any way contract with or pay a person who is not an appraiser and who holds a license under the RELRA to perform a valuation of real estate unless it is a comparative market analysis as defined in section 201 of the RELRA.21 (2)   Require an appraiser to provide the registrant or exempt company with the appraiser’s digital signature or seal. (3)   Alter, amend or change an appraisal submitted by an appraiser, including, without limitation, by: (i)   removing the appraiser’s signature or seal; or (ii)   adding or removing information to or from the appraisal. (4)  Remove an appraiser from an appraiser panel without prior written notice to the appraiser. The notice must include evidence of: (i)   illegal or unlawful conduct by the appraiser; (ii)   a violation of the minimum reporting standards under the REACA or other applicable statute or regulation; (iii)   failure to satisfy minimum standards required by the appraisal management company or any contract between the appraiser and the appraisal management company; (iv)   otherwise improper or unprofessional behavior; or (v)   a legitimate business reason for the removal that is not related to the appraiser’s performance.

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(ii)   estimated values or comparable sales at any time before the appraiser completes an appraisal. (7)   Except as provided in section 7(g), provide to an appraiser: (i)   an anticipated, estimated, encouraged or desired value for a property; or (ii)   a proposed or target amount to be loaned to the borrower. (8)  Commit an act or practice that impairs or attempts to impair an appraiser’s independence, objectivity or impartiality or solicit an appraiser to violate this act or the RELRA or REACA. (9)   Prohibit an appraiser from recording the fee the appraiser was paid for the performance of an appraisal in the appraisal report. (c)   Construction.—Subsection (a) does not prohibit an appraisal management company from requesting that an appraiser: (1)   Correct objective factual errors in an appraisal. (2)  Provide additional detail, substantiation or explanation for the appraiser’s value conclusion, including, without limitation, the applicability of additional comparables as presented. (d)   Owners and employees.— (1)   Except as provided in paragraph (2), a person that has been denied registration under this act or a similar law of another jurisdiction or that would be disqualified from eligibility to be certified or licensed under the REACA may not be: (i)   a key person or compliance person; or (ii)   directly involved in the provision of appraisal services by an appraisal management company as an employee or in any other capacity. (2)  Paragraph (1) shall cease to apply at such time as a person is subsequently registered under this act or becomes eligible to be certified or licensed under the REACA. § 9.   Registry of applicants and roster (a)  Registry.—The board shall keep a register of all applicants for registration showing: (1)   The date of application. (2)   The applicant’s name. (3)   The applicant’s business street address. (4)   Whether the registration was granted or denied. (b)  Roster.—The board shall keep a current roster showing for each registrant registered at any time with the board: (1)   Its last known name and street address. (2)   An identification number. (c)   Availability of records.—The register and roster shall be kept on file in the office of the board and shall be open for public inspection. The board shall also post the roster on its Internet website. § 10.  Disciplinary measures (a)   Authority of board.—The board may impose disciplinary action as set forth in subsection (b) upon an applicant, registrant, exempt company, person acting as an appraisal management company, person holding out as an appraisal management company or person advertising or holding out as engaging in or conducting the business of an appraisal management company, for any of the following causes: (1)  The appraisal management company’s application for registration or renewal of registration when filed contained a statement that, in light of the

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Part IV Ch. 36–40 Insurance Part V Ch. 41–48A Zoning, etc. Part VI Ch. 49–56 Taxation Part VII Ch. 57–63 Litigation Part VIII Ch. 64–67 L/T Part IX Ch. 68–72 Condos, etc. Index

gtb-parealestate22-all.indb 439

Part III Ch. 23–35 Mortgages

439

Part II Ch. 15–22 Deeds

22. 7 Pa.C.S.A. § 6101 et seq. 23. 63 P.S. § 456.101 et seq.

Part I Ch. 1–14 Brokers

circumstances under which it was made, is false or misleading with respect to a material fact. (2)  The applicant, registrant, exempt company, its compliance person or key person has violated or failed to comply with: (i)   This act or the regulations or guidelines promulgated by the board for the administration and enforcement of this act. (ii)   The REACA or the regulations or guidelines promulgated by the board for the administration and enforcement of the REACA. (3)   The State Real Estate Commission has found the applicant, registrant, exempt company, compliance person or key person in violation of the RELRA or the regulations to administer and effectuate the purposes of the RELRA. (4)  The Department of Banking or a court of competent jurisdiction has found the applicant, registrant, exempt company, compliance person or key person in violation of the provisions of 7 Pa.C.S. Ch. 61 (relating to mortgage loan industry licensing and consumer protection) 22 or the Mortgage Bankers and Brokers and Consumer Equity Protection Act.23 (5)  The applicant, registrant, exempt company, compliance person or key person has been convicted of: (i)  A felony. (ii)   Within the past ten years, a misdemeanor involving mortgage lending or real estate appraising, breach of trust, moral turpitude or fraudulent or dishonest dealing. (6)  The applicant, registrant, exempt company, compliance person or key person is permanently or temporarily enjoined by a court of competent jurisdiction from engaging in or continuing any conduct or practice involving appraisal management services or operating an appraisal management company. (7)  The applicant, registrant, exempt company, compliance person or key person is the subject of an order of the board or any other state appraisal management company regulatory agency denying, suspending or revoking the person’s privilege to operate as an appraisal management company, or other disciplinary actions by an agency of another jurisdiction responsible for regulating appraisers, mortgage brokers, real estate salespersons or real estate brokers. (8)   The person was not an exempt company or registrant and: (i) Acted as an appraisal management company. (ii) Held out as an appraisal management company within this Commonwealth. (iii) Advertised or held out as engaging in or conducting the business of an appraisal management company (b)  Board action.—When the board finds any of the causes listed in subsection (a) supported by substantial evidence the board may: (1)   Deny, suspend, revoke or refuse to issue or renew the registration of an appraisal management company under this act. (2)  Restrict, reprimand, limit or suspend enforcement of its findings and place the appraisal management company on probation with the right to vacate the probation for noncompliance. (3)   In lieu of imposing a sanction authorized by paragraph (1), the board may order the removal, replacement or restriction of a compliance person or a key person found to have committed any of the violations of subsection (a) as

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a condition of approving, renewing or retaining an applicant’s or registrant’s registration. (4)   In lieu of imposing a sanction authorized by paragraph (1), the board may order a person found to have committed any of the violations of subsection (a) and that owns an interest in or participates in the business of an appraisal management company to divest partially or wholly of such interest or participation as a condition of granting, renewing or retaining an applicant’s or registrant’s registration. (5)  Levy a civil penalty or costs of investigation under subsection (d) or the act of July 2, 1993, (P.L. 345, No. 48),24 entitled “An act empowering the General Counsel or his designee to issue subpoenas for certain licensing board activities; providing for hearing examiners in the Bureau of Professional and Occupational Affairs; providing additional powers to the Commissioner of Professional and Occupational Affairs; and further providing for civil penalties and license suspension.” (6)  Require a surety bond or letter of credit in addition to the requirements of section 6(b) and regulations of the board promulgated pursuant to that subsection. (c)  Criminal penalties.—A person that violates this act commits a misdemeanor of the third degree and shall, upon conviction, be sentenced to pay a fine of up to $1,000 or to imprisonment for not more than 90 days, or both. (d)  Civil penalty.—In addition to any other civil remedy or criminal penalty provided for in this act, the board may levy a civil penalty of up to $10,000 on any person that violates any provision of this act or any person that acts as an appraisal management company, holds out as an appraisal management company in this Commonwealth or advertises or holds out as engaging in or conducting the business of an appraisal management company at a time when the person is not an exempt company or registered under this act. The board shall levy this penalty only after affording the accused party the opportunity for a hearing, as provided in 2 Pa.C.S. (relating to administrative law and procedure). All civil penalties imposed in accordance with this section shall be paid into the Professional Licensure Augmentation Account. (e)  Procedures.—The investigation and prosecution of disciplinary proceedings under this section shall be conducted by the board under the provisions of the REACA. § 11.  Application This act shall not apply to: (1)   An appraiser who: (i)   in the normal course of business enters into an agreement, whether written or otherwise, with an appraiser for the performance of an appraisal; and (ii)   under the agreement cosigns the appraisal upon its completion. (2)  A person authorized to engage in business as a banking institution, credit union or savings association organized under the laws of this Commonwealth or any other jurisdiction and whose employees perform appraisals for the person or arrange for the performance of appraisals for the person by an independent contractor to the person.

24. 63 P.S. § 2201 et seq.

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CHAPTER 33 Part I Ch. 1–14 Brokers

PRIORITY OF LIENS 42 P.S. § 8141 to 42 P.S. § 8144

Sec.

8141. Time from which liens have priority 8142. Endorsement of time 8143. Open-end mortgages 8144. Mortgages to secure certain advances

Part II Ch. 15–22 Deeds

§ § § §

(i)   taken by the seller of the mortgaged property to secure the payment of all or part of the purchase price; or

Part IV Ch. 36–40 Insurance

(ii)   taken by a mortgagee other than the seller to secure the repayment of money actually advanced by such person to or on behalf of the mortgagor at the time the mortgagor acquires title to the property and used by the mortgagor at that time to pay all or part of the purchase price, except that a mortgage other than to the seller of the property shall not be a purchase money mortgage within the meaning of this section unless expressly stated so to be.

Part V Ch. 41–48A Zoning, etc.

Liens against real property shall have priority over each other on the following basis: (1)  Purchase money mortgages, from the time they are delivered to the mortgagee, if they are recorded within ten days after their date; otherwise, from the time they are left for record. A mortgage is a “purchase money mortgage” to the extent that it is:

Part III Ch. 23–35 Mortgages

§ 8141.  Time from which liens have priority

(3)   Verdicts for a specific sum of money, from the time they are recorded by the court. (4)   Adverse judgments and other orders, from the time they are rendered.

(6)   Writs which when issued and indexed by the office of the clerk of the court of common pleas create liens against real property, from the time they are issued.

§ 8142.  Endorsement of time

(b)   Recorded verdicts, etc.—The person who records a verdict or a judgment or other order rendered in open court shall endorse on the record thereof the time it was recorded. (c)   Orders signed by a judge.—The judge who signs a judgment or other order shall endorse thereon the time he signed it.

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Index

441

Part IX Ch. 68–72 Condos, etc.

(a)  Recorder of deeds.—The recorder of deeds shall endorse upon each mortgage and defeasible deed and on the record thereof, the time when each is left for record.

Part VIII Ch. 64–67 L/T

(7)   Other instruments which when entered or filed and indexed in the office of the clerk of the court of common pleas create liens against real property, from the time they are left for entry or filing.

Part VII Ch. 57–63 Litigation

(5)   Amicable judgments, from the time the instruments on which they are entered are left for entry.

Part VI Ch. 49–56 Taxation

(2)   Other mortgages and defeasible deeds in the nature of mortgages, from the time they are left for record.

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§ 8143

PRIORITY OF LIENS

(d)   Writs and amicable judgments.—The office of the clerk of the court of common pleas shall endorse upon: (1)   Each instrument on which an amicable judgment is entered or which otherwise creates a lien against real property, the time it was left for entry or filing. (2)   Each writ creating a lien against real property, the time it was issued. (e)  Docket entries.—The office of the clerk of the court of common pleas shall note on the dockets in such office where each verdict, judgment, order, instrument or writ creating a lien against real property is entered, the time it was recorded, rendered, left for filing, or issued. § 8143.  Open-end mortgages (a)  General rule.—Whether or not it secures any other debt or obligation, an open-end mortgage, other than a purchase money mortgage as defined in section 8141 (relating to time from which liens have priority), may secure unpaid balances of advances made after such open-end mortgage is left for record. The validity and enforceability of the lien of an open-end mortgage shall not be affected by the fact that the first advance is made after the date of recording of the mortgage or that there may be no outstanding indebtedness for a period of time after an advance or advances may have been made and repaid. (b)  Unobligated advance after notice.—An open-end mortgage securing unpaid balances of advances referred to in subsection (a) is a lien on the premises described therein from the time the mortgage is left for record for the full amount of the total unpaid indebtedness, including the unpaid balances of the advances that are made under the mortgage plus interest thereon, regardless of the time when the advances are made. However, if an advance is made after the holder of the mortgage receives written notice which complies with subsection (d) of a lien or encumbrance on the mortgaged premises which is subordinate to the lien of the mortgage and if the holder is not obligated to make the advance at the time the notice is received, then the lien of the mortgage for the unpaid balance of the advance so made is subordinate to the lien or encumbrance unless the advance so made is in order to pay toward, or to provide funds to the mortgagor to pay toward, all or part of the cost of completing any erection, construction, alteration or repair of any part of the mortgaged premises, the financing of which, in whole or in part, the mortgage was given to secure. If an advance is made after the holder of an open-end mortgage receives written notice of labor performed or to be performed or materials furnished or to be furnished for the erection, construction, alteration or repair of any part of the mortgaged premises and if the holder is not obligated to make the advance at the time the notice is received, then the lien of the mortgage for the unpaid balance of the advance so made is subordinate to a valid mechanic’s lien for the labor actually performed or materials actually furnished as specified in the notice unless the advance so made is in order to pay toward, or to provide funds to the mortgagor to pay toward, all or part of the cost of completing any erection, construction, alteration or repair of any part of the mortgaged premises, the financing of which, in whole or in part, the mortgage was given to secure. (c)  Mortgagor may limit indebtedness.—The mortgagor may limit the indebtedness secured by an open-end mortgage, and release the obligation of the mortgagee to make any further payments, to that in existence at the time of the delivery of a written notice to that effect to the recorder for record, if the notice is executed by the mortgagor, is acknowledged according to law and states the volume and initial page of the record or the recorder’s file number of the mortgage, and a copy thereof is served upon the holder of the mortgage more than three days prior to the delivery of the notice to the recorder for record. The notice shall be recorded and indexed by the recorder as an amendment of the mortgage and

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“Open-end mortgage.” A mortgage which secures advances, up to a maximum amount of indebtedness outstanding at any time stated in the mortgage, plus accrued and unpaid interest. Such a mortgage shall be identified at the beginning thereof as an “open-end mortgage” and shall clearly state that it secures future advances, which in the case of a home equity plan, the lender has a contractual obligation to make on the terms and conditions set forth in the mortgage and open-end loan agreement with the borrower. Such open-end mortgage shall be deemed to secure obligatory future advances even though the mortgage or loan agreement contains some or all of the limitations and condi-

Part VIII Ch. 64–67 L/T

“Mortgagor.” Includes the mortgagor’s successors in interest as disclosed by the records of the recorder or recorders of the county or counties in which the mortgaged premises are situated.

Part VII Ch. 57–63 Litigation

“Mortgage.” Includes a mortgage, deed of trust or other instrument in the nature of a mortgage.

Part VI Ch. 49–56 Taxation

“Indebtedness.” The unpaid principal balance of advances exclusive of interest and unpaid balances of advances and other extensions of credit secured by the mortgage made for the payment of taxes, assessments, maintenance charges, insurance premiums and costs incurred for the protection of the mortgaged premises.

Part V Ch. 41–48A Zoning, etc.

“Holder of the mortgage.” The holder of the mortgage as disclosed by the records of the recorder or recorders of the county or counties in which the mortgaged premises are situated.

Part IV Ch. 36–40 Insurance

(f)  Definitions.—As used in this section, the following words and phrases shall have the meanings given to them in this subsection:

Part III Ch. 23–35 Mortgages

(e)  Section not exclusive.—This section is not exclusive and shall not be construed to change existing law with respect to the priority of the lien of advances made pursuant to a mortgage except to the extent that it gives priority to the lien for advances under an open-end mortgage complying with the requirements of this section which would not have such priority in the absence of this section.

Part II Ch. 15–22 Deeds

(d)  Notice.—The written notices provided for in subsection (b) shall be signed by the holder of the lien or encumbrance or the person who has performed or intends to perform the labor or who has furnished or intends to furnish materials, or by his agent or attorney, and shall set forth a description of the real property to which the notice relates, the date, the parties to, the volume and initial page of the record or the recorder’s file number of the mortgage over which priority is claimed for the lien or encumbrance and the amount and nature of the claim to which the lien or encumbrance relates or the nature of the labor performed or to be performed or materials furnished or to be furnished and the amount claimed or to be claimed therefor. The written notices provided for in subsections (b) and (c) shall be deemed to have been received by or served upon the holder of the mortgage when delivered to the holder personally or by registered or certified mail at the address of the holder appearing in the mortgage or an assignment thereof or, if no address is so given, at the principal place of business or residence of the holder or the agent of the holder within this Commonwealth or, if the holder has no principal place of business or residence or agent within this Commonwealth, when posted in some conspicuous place on the mortgaged premises.

Part I Ch. 1–14 Brokers

shall be noted on the margin of the record of the mortgage, giving the book and page number where the notice is recorded. The right of the mortgagor to limit indebtedness secured by the mortgage is not applicable to interest subsequently accruing on indebtedness or advances made after the delivery of the notice to the recorder for record in order to pay for all or part of the cost of completing any erection, construction, alteration or repair of any part of the mortgaged premises, the financing of which, in whole or in part, the mortgage was given to secure.

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§ 8144

PRIORITY OF LIENS

tions on the obligation to make advances which are permitted for home equity plans under the Home Equity Loan Consumer Protection Act of 1988 (Public Law 100-709, 102 Stat. 4725)1 as implemented by Regulation Z issued thereunder in 12 CFR 226.5(b) (relating to general disclosure requirements). “Recorder.” The recorder of deeds or other official in charge of recording mortgages in each county in which the mortgaged premises are located. § 8144.  Mortgages to secure certain advances In addition to any other indebtedness, a mortgage may secure unpaid balances of advances made, with respect to the mortgaged premises, for the payment of taxes, assessments, maintenance charges, insurance premiums or costs incurred for the protection of the mortgaged premises or the lien of the mortgage, expenses incurred by the mortgagee by reason of default by the mortgagor under the mortgage or advances made under a construction loan to enable completion of the improvements for which the construction loan was originally made, if such mortgage states that it shall secure such unpaid balances. A mortgage complying with this section is a lien on the premises described therein from the time the mortgage is left for record or the time of delivery to the mortgagee of a purchase money mortgage which is recorded within ten days after its date for the full amount of the unpaid balances of such advances that are made under the mortgage, plus interest thereon, regardless of the time when the advances are made.

1. 15 U.S.C. §§ 1632(b), 1637(a)(8), 1637a, 1647 and 1665b.

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CHAPTER 34 Part I Ch. 1–14 Brokers

MECHANICS’ LIEN LAW OF 1963 49 P.S. § 1101 to 49 P.S. § 1902

Sec.

101. Short title 201. Definitions 301. Right to lien; amount; subcontractor 302. Presumption as to use of materials 303. Lien not allowed in certain cases 304. Excessive curtilage 305. Right to lien in case of noncompletion of work 306. Consolidation or apportionment of claims 307. Removal or detachment of improvement subject to claim 401. Waiver of lien by claimant 402. Waiver by contractor; effect on subcontractor 403. Release as waiver 404. Effect of credit or collateral 405. Right of owner to limit claims to unpaid balance of contract price 406. Right of subcontractor to rescind after notice of contract provisions 407. Contracts not made in good faith; effect 501. Notices by subcontractor as condition precedent 501.1. State construction notices directory 501.2. Failure to file notice of furnishing 501.3. Notice of commencement and notice of furnishing 501.4. Notice of completion for informational purposes only 501.5. Notice 501.6. Prohibition 502. Filing and notice of filing of claim 503. Contents of claim 504. Amendment of claim 505. Procedure for contesting claim; preliminary objections 506. Rule to file claim 507. Indexing claims, et cetera 508. Priority of lien 509. Effect of forfeiture of leasehold 510. Discharge of lien or reduction of lien 601. Owner’s right to retain funds of contractor 602. Notice to contractor of claim 603. Contractor’s duties on receipt of notice 604. Additional remedies of owner 701. Procedure to obtain judgment 702. Effect of judgment on right to personal action 703. Appeal from judgment 704. Satisfaction of claims; penalty for failure to satisfy 705. Revival of judgment 706. Execution upon judgment 801. Severability 802. Effective date 901. Specific repeal 902. General repeal

Part II Ch. 15–22 Deeds Part III Ch. 23–35 Mortgages Part IV Ch. 36–40 Insurance Part V Ch. 41–48A Zoning, etc. Part VI Ch. 49–56 Taxation Part VII Ch. 57–63 Litigation Part VIII Ch. 64–67 L/T

§ § § § § § § § § § § § § § § § § § § § § § § § § § § § § § § § § § § § § § § § § § § § § §

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§ 101.  Short title This act shall be known and may be cited as the “Mechanics’ Lien Law of 1963”. § 201.  Definitions The following words, terms and phrases when used in this act shall have the meaning ascribed to them in this section, except where the context clearly indicates a different meaning:

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§ 201

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(1)  “Improvement” includes any building, structure or other improvement of whatsoever kind or character erected or constructed on land, together with the fixtures and other personal property used in fitting up and equipping the same for the purpose for which it is intended. (2)  “Property” means the improvement the land covered thereby and the lot or curtilage appurtenant thereto belonging to the same legal or equitable owner reasonably needed for the general purposes thereof and forming a part of a single business or residential plant. (3)  “Owner” means an owner in fee, a tenant for life or years or one having any other estate in or title to property. (4)  “Contractor” means one who, by contract with the owner, express or implied, erects, constructs, alters or repairs an improvement or any part thereof or furnishes labor, skill or superintendence thereto; or supplies or hauls materials, fixtures, machinery or equipment reasonably necessary for and actually used therein; or any or all of the foregoing, whether as superintendent, builder or materialman. The term also includes an architect or engineer who, by contract with the owner, express or implied, in addition to the preparation of drawings, specifications and contract documents also superintends or supervises any such erection, construction, alteration or repair. (5)  “Subcontractor” means one who, by contract with the contractor, or pursuant to a contract with a subcontractor in direct privity of a contract with a contractor, express or implied, erects, constructs, alters or repairs an improvement or any part thereof; or furnishes labor, skill or superintendence thereto; or supplies or hauls materials, fixtures, machinery or equipment reasonably necessary for and actually used therein; or any or all of the foregoing, whether as superintendent, builder or materialman. The term does not include an architect or engineer who contracts with a contractor or subcontractor, or a person who contracts with a materialman or a person who contracts with a subcontractor not in direct privity of a contract with a contractor. (6)  “Claimant” means a contractor or subcontractor who has filed or may file a claim under this act for a lien against property. (7)  “Materials” means building materials and supplies of all kinds, and also includes fixtures, machinery and equipment reasonably necessary to and incorporated into the improvement. (8)  “Completion of the work” means performance of the last of the labor or delivery of the last of the materials required by the terms of the claimant’s contract or agreement, whichever last occurs. (9)  “Labor” includes the furnishing of skill or superintendence. (10)  “Erection and construction” means the erection and construction of a new improvement or of a substantial addition to an existing improvement or any adaptation of an existing improvement rendering the same fit for a new or distinct use and effecting a material change in the interior or exterior thereof. (11)  “Alteration and repair” means any alteration or repair of an existing improvement which does not constitute erection or construction as defined herein. (12)  “Erection, construction, alteration or repair” includes: (a)  Demolition, removal of improvements, excavation, grading, filling, paving and landscaping, when such work is incidental to the erection, construction, alteration or repair; (b)   Initial fitting up and equipping of the improvement with fixtures, machinery and equipment suitable to the purposes for which the erection, construction, alteration or repair was intended; and (c)  Furnishing, excavating for, laying, relaying, stringing and restringing rails, ties, pipes, poles and wires, whether on the property improved or upon other property, in order to supply services to the improvement.

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1. 53 P.S. § 10101 et seq. 2. 49 P.S. § 1501.1.

Part I Ch. 1–14 Brokers

(13)  “Prothonotary” means the prothonotary of the court or courts of common pleas of the county or counties in which the improvement is situate. (14)  “Residential property” means property on which there is or will be constructed a residential building not more than three stories in height, not including any basement level, regardless of whether any portion of that basement is at grade level, or which is zoned or otherwise approved for residential development on which there is or will be constructed a residential building not more than three stories in height, not including any basement level, regardless of whether any portion of that basement is at grade level, planned residential development or agricultural use, or for which a residential subdivision or land development plan or planned residential development plan has received preliminary, tentative or final approval on which there is or will be constructed a residential building not more than three stories in height, not including any basement level, regardless of whether any portion of that basement is at grade level, pursuant to the act of July 31, 1968 (P.L. 805, No. 247),1 known as the “Pennsylvania Municipalities Planning Code.” (15)  “Costs of construction” means all costs, expenses and reimbursements pertaining to erection, construction, alteration, repair, mandated off-site improvements, government impact fees and other construction-related costs, including, but not limited to, costs, expenses and reimbursements in the nature of taxes, insurance, bonding, inspections, surveys, testing, permits, legal fees, architect fees, engineering fees, consulting fees, accounting fees, management fees, utility fees, tenant improvements, leasing commissions, payment of prior filed or recorded liens or mortgages, including mechanics liens, municipal claims, mortgage origination fees and commissions, finance costs, closing fees, recording fees, title insurance or escrow fees, or any similar or comparable costs, expenses or reimbursements related to an improvement made or intended to be made to the property. For purposes of this definition, reimbursement includes any such disbursements made to the borrower, any person acting for the benefit or on behalf of the borrower or to an affiliate of the borrower. (16)  “Department” means the Department of General Services. (17)  “Directory” means the State Construction Notices Directory in section 501.1.2 (18)  “Searchable project” means a project consisting of the erection and construction, or alteration or repair, of an improvement costing a minimum of one million five hundred thousand dollars ($1,500,000). (19)  “Construction notice” means the following notices related to a searchable project: (i)   a Notice of Commencement; (ii)   a Notice of Furnishing; (iii)   a Notice of Completion; or (iv)   a Notice of Nonpayment. (20)  “Searchable project owner” means the owner of record of real property that is a searchable project. The term shall include the owner’s agent. § 301.  Right to lien; amount; subcontractor (a)  General Rule. Except as provided under subsection (b), every improvement and the estate or title of the owner in the property shall be subject to a lien, to be perfected as herein provided, for the payment of all debts due by the owner to the contractor or by the contractor to any of his subcontractors for labor or materials furnished in the erection or construction, or the alteration or repair

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§ 302

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of the improvement, provided that the amount of the claim, other than amounts determined by apportionment under section 306(b) of this act, shall exceed five hundred dollars ($500). (b)  Subcontractor. A subcontractor does not have the right to a lien with respect to an improvement to a residential property if: (1)   the owner or tenant paid the full contract price to the contractor; (2)   the property is or is intended to be used as the residence of the owner or subsequent to occupation by the owner, a tenant of the owner; and (3)   the residential property is a single townhouse or a building that consists of one or two dwelling units used, intended or designed to be built, used, rented or leased for living purposes. For the purposes of this paragraph, the term “townhouse” shall mean a single-family dwelling unit constructed in a group of three or more attached units in which each unit extends from foundation to roof with a yard or public way on at least two sides. § 302.  Presumption as to use of materials Materials for use in or upon an improvement placed on or near the property or delivered to the owner pursuant to a contract shall be presumed to have been used therein in the absence of proof to the contrary. § 303.  Lien not allowed in certain cases (a)   Persons other than contractors or subcontractors. No lien shall be allowed in favor of any person other than a contractor or subcontractor, as defined herein, even though such person furnishes labor or materials to an improvement. (b)   Public purpose. No lien shall be allowed for labor or materials furnished for a purely public purpose. (c)   Conveyance prior to lien. If the property by conveyed in good faith and for a valuable consideration prior to the filing of a claim for alterations or repairs, the lien shall be wholly lost. (d)   Leasehold premises. No lien shall be allowed against the estate of an owner in fee by reason of any consent given by such owner to a tenant to improve the leased premises unless it shall appear in writing signed by such owner that the erection, construction, alteration or repair was in fact for the immediate use and benefit of the owner. (e)   Security interests. No lien shall be allowed for that portion of a debt representing the contract price of any materials against which the claimant holds or has claimed a security interest under the Pennsylvania Uniform Commercial Code or to which he has reserved title or the right to reacquire title. § 304.  Excessive curtilage Where an owner objects that a lien has been claimed against more property than should justly be included therein, the court upon petition may, after hearing by deposition or otherwise, limit the boundaries of the property subject to the lien. Failure to raise this objection preliminarily shall not be a waiver of the right to plead the same as a defense thereafter. § 305.  Right to lien in case of noncompletion of work Except in case of destruction by fire or other casualty, where, through no fault of the claimant, the improvement is not completed, the right to lien shall nevertheless exist. § 306.  Consolidation or apportionment of claims (a)  Consolidation of claims. Where a debt is incurred for labor or materials furnished continuously by the same claimant for work upon a single improvement but under more than one contract, the claimant may elect to file a single claim for the entire debt. In such case, “completion of the work” shall not be deemed to occur with respect to any of the contracts until it has occurred with respect to all of them.

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Part IV Ch. 36–40 Insurance Part V Ch. 41–48A Zoning, etc. Part VI Ch. 49–56 Taxation Part VII Ch. 57–63 Litigation Part VIII Ch. 64–67 L/T Part IX Ch. 68–72 Condos, etc. Index

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3. 49 P.S. § 1401.

Part I Ch. 1–14 Brokers

(b)   Apportionment of claims. Where a debt is incurred for labor or materials furnished by the same claimant for work upon several different improvements which do not form all or part of a single business or residential plant, the claimant shall file separate claims with respect to each such improvement, with the amount of each claim determined by apportionment of the total debt to the several improvements, and in such case, the amount of each separate claim may be less than five hundred dollars ($500), provided that the total debt exceeds five hundred dollars ($500). In no other case shall an apportioned claim be allowed. § 307.  Removal or detachment of improvement subject to claim (a)  Removal prohibited; Effect.—No improvement subject to the lien of a claim filed in accordance with this act shall be removed or detached from the land except pursuant to title obtained at a judicial sale or by one owning the land and not named as a defendant. Any improvement otherwise removed shall remain liable to the claim filed, except in the hands of a purchaser for value. (b)  Restraint of removal by court.—The court may on petition restrain the removal of the improvement in accordance with the Pennsylvania Rules of Civil Procedure governing actions to prevent waste. § 401.   Waiver of lien by claimant (a)  Residential Property. A contractor or subcontractor may waive his right to file a claim against residential property by a written instrument signed by him or by any conduct which operates equitably to estop such contractor from filing a claim. (b)  Nonresidential Buildings. (1)  Except as provided in subsection (a), a waiver by a contractor of lien rights is against public policy, unlawful and void unless given in consideration for payment for the work, services, materials or equipment provided and only to the extent that such payment is actually received. (2)   Except as provided in subsection (a), a waiver by a subcontractor of lien rights is against public policy, unlawful and void, unless given in consideration for payment for the work, services, materials or equipment provided and only to the extent that such payment is actually received, or unless the contractor has posted a bond guaranteeing payment for labor and materials provided by subcontractors. § 402.   Waiver by contractor; effect on subcontractor (a)  General rule.— To the extent that lien rights may be validly waived by a contractor or subcontractor under section 401(a)3 or where the contractor has posted a bond under section 401(b)(2), a written contract between the owner and a contractor, or a separate written instrument signed by the contractor, which provides that no claim shall be filed by anyone, shall be binding: but the only admissible evidence thereof, as against a subcontractor, shall be proof of actual notice thereof to him before any labor or materials were furnished by him; or proof that such contract or separate written instrument was filed in the office of the prothonotary prior to the commencement of the work upon the ground or within ten (10) days after the execution of the principal contract or not less than ten (10) days prior to the contract with the claimant subcontractor, indexed in the name of the contractor as defendant and the owner as plaintiff and also in the name of the contractor as plaintiff and the owner as defendant. The only admissible evidence that such a provision has, notwithstanding its filing, been waived in favor of any subcontractor, shall be a written agreement to that effect signed by all those who, under the contract, have an adverse interest to the subcontractor’s allegation. (b)   Electronic Indexing.—Notwithstanding the indexing requirements of subsection (a) in offices of the prothonotary in which such a written contract between the owner and contractor or separate written instrument is indexed electronically by means of a computer system or similar system such that the names of the

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§ 403

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contractor and owner are electronically retrievable regardless of whether the parties are designated as plaintiff or defendant, the contract or separate written instrument filed with the office of the prothonotary under subsection (a) may be indexed in the name of the contractor as defendant and the owner as plaintiff or in the name of the contractor as plaintiff and the owner as defendant. § 403.  Release as waiver A release signed by the claimant shall not operate as a waiver of the right to file a claim for labor or materials subsequently furnished, unless it shall appear thereby that such was the express intent of the party signing the same. § 404.  Effect of credit or collateral The giving of credit or the receipt of evidence of indebtedness or collateral otherwise than as provided in section 303(e)4 shall not operate to waive the right to file a claim, but where credit is given, no voluntary proceedings shall be taken by the claimant to enforce the lien until the credit period has expired. § 405.  Right of owner to limit claims to unpaid balance of contract price Where the claims of subcontractors exceed in the aggregate the unpaid balance of the contract price specified in the contract between the owner and the contractor, then if the subcontractor has actual notice of the total amount of said contract price and of its provisions for the time or times for payment thereof before any labor or materials were furnished by him, or if such contract or the pertinent provisions thereof were filed in the office of the prothonotary in the time and manner provided in section 402,5 each claim shall, upon application of the owner, be limited to its prorata share of the contract price remaining unpaid, or which should have remained unpaid, whichever is greatest in amount at the time notice of intention to file a claim was first given to the owner, such notice inuring to the benefit of all claimants. § 406.  Right of subcontractor to rescind after notice of contract provisions Any provisions of a contract between the owner and the contractor, which reduce or impair the rights and remedies of a subcontractor or which postpone the time for payment by the owner to the contractor for a period exceeding four (4) months after completion of the work, shall be grounds for recision by the subcontractor of his contract with the contractor, unless such subcontractor was given actual notice thereof prior to the time of the making of his contract with the contractor, or the contract or the pertinent provisions thereof were filed in the office of the prothonotary in the time and manner provided by section 402.6 Such recision shall not impair the right of the subcontractor to recover by lien or otherwise for work completed prior thereto. § 407.  Contracts not made in good faith; effect A contract for the improvement made by the owner with one not intended in good faith to be a contractor shall have no legal effect except as between the parties thereto, even though written, signed and filed as provided herein, but such contractor, as to third parties, shall be treated as the agent of the owner. § 501.   Formal notice by subcontractor as condition precedent (a), (b)   Deleted by 2006, June 29, P.L. 210, No. 52, § 3, effective Jan. 1, 2007. (b.1)   Time Period of Formal Notice. No claim by a subcontractor, whether for erection or construction or for alterations or repairs, shall be valid unless, at least thirty (30) days before the same is filed, he shall have given to the owner a formal written notice of his intention to file a claim, except that such notice shall not be required where the claim is filed pursuant to a rule to do so as provided by section 506.7

4. 5. 6. 7.

49 49 49 49

P.S. P.S. P.S. P.S.

§ § § §

1303(e). 1402. 1402. 1506.

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8. 49 P.S. § 1501.3.

Part I Ch. 1–14 Brokers

(c)   Contents of Formal Notice. The formal notice shall state: (1)   the name of the party claimant; (2)   the name of the person with whom he contracted; (3)   the amount claimed to be due; (4)   the general nature and character of the labor or materials furnished; (5)   the date of completion of the work for which his claim is made; (6)   a brief description sufficient to identify the property claimed to be subject to the lien. (d)   Service of notice. The notice provided by this section may be served by first class, registered or certified mail on the owner or his agent or by an adult in the same manner as a writ of summons in assumpsit, or if service cannot be so made then by posting upon a conspicuous public part of the improvement. § 501.1.  State Construction Notices Directory (a)  Directory. The department shall provide for an Internet website to be known as the State Construction Notices Directory to serve as a standardized Statewide system for filing construction notices. (b)  Operational Date. The directory shall be operational by December 31, 2016. The department may establish a later effective date if it provides sufficient reasons for the delay in the implementation of the directory in a notice to the chairman and minority chairman of the Labor and Industry Committee of the Senate and the chairman and minority chairman of the Labor and Industry Committee of the House of Representatives. (c)    Notification. No later than one hundred twenty (120) days after the implementation of the directory, the department shall publish notice in the Pennsylvania Bulletin advising the public of implementation of the directory and instructions on its use. The department shall place the notice and instructions on its Internet website and take other reasonable measures to inform the general public and the construction industry of the directory and its purpose. (d)  Fees. The following shall apply: (1)   The department shall establish fees for notices filed by the searchable project owner. (2)   Fees under paragraph (1) may not in the aggregate exceed the amount reasonably necessary to implement, operate and maintain the directory. (e)   Publishing of Notices. The directory shall: (1)   Make Notices of Commencement filed under section 501.3(a)8 available for a searchable project in a job-site specific format. A unique identifying number shall be assigned to each Notice of Commencement that is filed. A notice under this paragraph shall be searchable by searchable project owner name, contractor name, property address and unique identifying number. (2)  Provide copies of the filings of Notice of Furnishing under section 501.3(b) to a searchable project owner who files a notice of commencement under section 501.3(a). (3)   Provide certified hard copy printing of electronic receipts upon request for a filing under section 501.3 of a Notice of Commencement or Notice of Furnishing. The certified hard copy shall include the date, time and content of the individual filing. (4)   List all Notices of Furnishing and Notices of Completion filed with respect to a particular Notice of Commencement.

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§ 501.2

MECHANICS’ LIEN LAW OF 1963

(5)  Provide a verification process to allow persons filing required notices or requests for notices in the directory to confirm the proper indexing and linkage of their filings. (f)  Index. The directory must be primarily indexed by county. § 501.2.  Failure to file Notice of Furnishing A contract for a searchable project shall include written notice that failure to file a Notice of Furnishing under section 501.3(b) will result in the loss of lien rights. The notice shall be as follows: A subcontractor that fails to file a Notice of Furnishing on the Department of General Services publicly accessible Internet website as required by the act of August 24, 1963 (P.L. 1175, No. 497), known as the Mechanics’ Lien Law of 1963, may forfeit the right to file a mechanics lien. It is unlawful for a searchable project owner, searchable project owner’s agent, contractor or subcontractor to request, suggest, encourage or require that a subcontractor not file the required notice as required by the Mechanics’ Lien Law of 1963. § 501.3.  Notice of Commencement and Notice of Furnishing (a)   Notice of Commencement. (1)   Prior to the commencement of labor, work or the furnishing of materials for a searchable project that may give rise to a mechanics’ lien under this act, the searchable project owner or agent of the searchable project owner may file a Notice of Commencement with the directory. (2)   A contractor may act as agent for the searchable project owner and file a Notice of Commencement for the searchable project owner of a searchable project if specifically authorized by contract and the searchable project owner assumes responsibility for the contractor’s actions. (3)   The notice must include the following: (i)   Full name, address and e-mail address of the contractor. (ii)   Full name and location of the searchable project. (iii)   The county in which the searchable project is located. (iv)   The legal description of the property upon which the improvements are being made, including the tax identification number of each parcel included in the searchable project. (v)   Full name, address and e-mail address of the searchable project owner of record of the property and the searchable project being constructed. (vi)   If applicable, the full name, address and e-mail address of a surety for the performance and payment bonds and the bond numbers. (vii)  The unique identifying number that is assigned to the Notice of Commencement pursuant to section 501.1(e)(1). (4)   The searchable project owner shall also conspicuously post a copy of the Notice of Commencement at the site of a searchable project before physical work commences on the project to include the unique identifying number assigned under section 501.1(e)(1). The searchable project owner shall take reasonable measures to ensure that the Notice of Commencement remains posted at the searchable project site until completion of the project. For the purposes of this paragraph, the term “reasonable measures” means the reposting of notice by the searchable project owner within forty-eight (48) hours after becoming aware of or being notified verbally, in writing or by e-mail that the notice is not posted. (5)   The searchable project owner and the contractor shall make reasonable efforts to ensure that the Notice of Commencement is made part of contract

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Part VI Ch. 49–56 Taxation Part VII Ch. 57–63 Litigation Part VIII Ch. 64–67 L/T Part IX Ch. 68–72 Condos, etc. Index

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Part V Ch. 41–48A Zoning, etc.

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§ 501.4.  Notice of Completion for Informational Purposes Only (a)  General Rule. Within forty-five (45) days of the actual completion of work on a searchable project, a searchable project owner may file a Notice of Completion in the directory to be indexed with the original Notice of Commencement. The notice shall be transmitted via the directory to all subcontractors who have filed Notices of Furnishing. For the purposes of this paragraph, the term “actual completion of work” shall mean the following: (1)   The issuance of an occupancy permit to the searchable project owner, or his agent, and the acceptance by the searchable project owner, or his agent, of the work accompanied by cessation of all work on the searchable project; or (2)   The cessation of all work on the searchable project for thirty (30) consecutive days, provided that work is not resumed under the same contract.

Part III Ch. 23–35 Mortgages

NOTICE OF FURNISHING To: (Name of searchable project owner) (Address of searchable project owner) (Notice of Commencement Number) Please take notice that the undersigned is performing certain work or labor or furnishing certain materials ..................... to (Name and address of other contracting party) in connection with the improvement to the real property located at ....................... The labor, work or materials were performed or furnished first, or will be furnished first, on ....... (date). (Name and Address of Lien Claimant) By (Name and capacity of party signing for lien claimant) (Address of Signing Party) (Date) (c)  Construction. A subcontractor that fails to substantially comply with this section forfeits the right to file a lien claim.

Part II Ch. 15–22 Deeds

(b)   Notice of Furnishing. A subcontractor that performs work or services or provides material in furtherance of a searchable project shall comply with the following if a Notice of Commencement has been filed and posted in accordance with subsection (a): (1)   File a Notice of Furnishing with the directory within forty-five (45) days after first performing work or services at the job site or first providing materials to the job site in connection with the searchable project. (2)   The notice under paragraph (1) must contain the following: (i)   A general description of the labor or materials furnished. (ii)   Full name and address of the person supplying the services or items under subparagraph (i). (iii)   Full name and address of the person that contracted for the services or items under subparagraph (i). (iv)   A description sufficient to identify the searchable project, based on the description in the Notice of Commencement. (3)   The notice under paragraph (1) must be substantially in the following form:

Part I Ch. 1–14 Brokers

documents provided to all subcontractors awarded work on the searchable project.

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PART III

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§ 501.5

MECHANICS’ LIEN LAW OF 1963

(b)  Nonpayment. Subcontractors who have not received full payment for their work, or for goods or services, on a searchable project may file a Notice of Nonpayment with the searchable project owner or the searchable project owner’s agent or the subcontractor in the directory for informational purposes only. The failure to file a Notice of Nonpayment by a subcontractor shall not be construed to affect or limit their rights under this act. Filing of a Notice of Nonpayment shall not relieve a subcontractor from complying with other written notice requirements under this act. (c)  Court. A notice of completion shall not be considered by a court in determining compliance with timing requirements under this act or in determining the completion date for a timing purpose, including limitation periods or warranty obligations. (d)  Effect. The filing of a notice of completion is purely precatory and is not dispositive of any relationship among the parties. § 501.5.  Notice (a)  Notification. The directory shall provide notification of a filing of a notice under sections 501.3 and 501.4 to a person who requests notification of the filing of a notice for a searchable project. (b)  Requests. A person who requests the directory to provide the person with official copies of notification of the filing of a notice for a searchable project shall: (1)   provide an e-mail address, mailing address or telefax number to which notification may be sent; and (2)   be responsible for the accuracy of the e-mail address, mailing address or telefax number. (c)  Requirements. A person shall be considered to have requested notification under this section if the person files, with respect to the same searchable project that relates to the required notice, any of the following: (1)   A Notice of Commencement. (2)   A Notice of Furnishing. (3)   A Notice of Completion. (d)  Notification requirements. Notification requirements shall be fulfilled by the directory by sending the official notification to the e-mail address, mailing address or telefax number that the person provides. (e)  Official notification. A person filing a Notice of Commencement, Notice of Furnishing, Notice of Completion or related notice must verify the accuracy of information entered into the directory, regardless of whether the person files electronically, by alternate means or through a third party. (f)  Information. Each notice or other document submitted to the directory must contain: (1)  The name of the county in which the searchable project property to which the notice or other document applies is located. (2)  The tax identification number of each parcel included in the project property. (3)  The number of the building permit for the searchable project on the project property. § 501.6.  Prohibition (a)  Unlawful Acts. It shall be unlawful for a searchable project owner or the searchable project owner’s agent, a contractor or subcontractor to suggest, request, encourage or require that a subcontractor not file a Notice of Furnishing as a condition of entering into, continuing, receiving or maintaining a contract for work or furnishing of materials on a searchable project. A person that violates this subsection commits a misdemeanor of the second degree.

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Part IV Ch. 36–40 Insurance

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Part III Ch. 23–35 Mortgages

§ 503.  Contents of claim The claim shall state: (1)   the name of the party claimant, and whether he files as contractor or subcontractor; (2)   the name and address of the owner or reputed owner; (3)   the date of completion of the claimant’s work; (4)   if filed by a subcontractor, the name of the person with whom he contracted, and the dates on which preliminary notice, if required, and of formal notice of intention to file a claim was given; (5)   if filed by a contractor under a contract or contracts for an agreed sum, an identification of the contract and a general statement of the kind and character of the labor or materials furnished;

Part II Ch. 15–22 Deeds

§ 502.  Filing and notice of filing of claim (a)   Perfection of lien. To perfect a lien, every claimant must: (1)   file a claim with the prothonotary as provided by this act within six (6) months after the completion of his work; and (2)   serve written notice of such filing upon the owner within one (1) month after filing, giving the court term and number and date of filing of the claim. An affidavit of service of notice, or the acceptance of service, shall be filed within twenty (20) days after service setting forth the date and manner of service. Failure to serve such notice or to file the affidavit or acceptance of service within the times specified shall be sufficient ground for striking off the claim. (b)   Venue; property in more than one county. Where the improvement is located in more than one county, the claim may be filed in any one or more of said counties, but shall be effective only as to the part of the property in the county in which it has been filed. (c)   Manner of service. Service of the notice of filing of claim shall be made by an adult in the same manner as a writ of summons in assumpsit, or if service cannot be so made then by posting upon a conspicuous public part of the improvement.

Part I Ch. 1–14 Brokers

(b)   Lien by subcontractor. A subcontractor has the right to file a lien for the work and services performed and the materials furnished under this act, irrespective of compliance with section 501.3(b), if the subcontractor proves that the failure to comply with section 501.3(b) was directly the result of a searchable project owner, the searchable project owner’s agent or the contractor violating subsection (a). (c)  Cause of Action. A subcontractor shall have a civil cause of action if the subcontractor proves that failure to comply with section 501.3(b) was the result of a searchable project owner or searchable project owner’s agent, or a contractor or subcontractor, violating subsection (a) in order to recover damages for any loss or injury sustained as a result of the violation from a person who commits a violation. The civil cause of action shall only be applied to the entity that violates subsection (a). A court of competent jurisdiction may award to the subcontractor actual damages arising from the violation, reasonable attorneys fees and court costs. (d)  Abuse. A person abuses the directory if the person files a notice in the directory: (1)   Without a good faith reason to do so. (2)   With the intent to exact more payment than is due from the searchable project owner or other party. (3)   To obtain an unjustified advantage or benefit. (e)  Damages. A person who abuses the directory under subsection (d) shall be liable for the amount of actual damages or $2,000, whichever is greater.

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§ 504

MECHANICS’ LIEN LAW OF 1963

(6)   in all other cases than that set forth in clause (5) of this section, a detailed statement of the kind and character of the labor or materials furnished, or both, and the prices charged for each thereof; (7)   the amount or sum claimed to be due; and (8)   such description of the improvement and of the property claimed to be subject to the lien as may be reasonably necessary to identify them. § 504.  Amendment of claim A claim may be amended from time to time without prejudice to intervening rights by agreement of the parties or by leave of court, except that no amendment shall be permitted after the time for filing a claim has expired which undertakes to: (1)   substitute a different property than that described in the claim; or (2)   substitute a different party with whom the claimant contracted; or (3)   increase the aggregate amount of the claim. § 505.  Procedure for contesting claim; preliminary objections Any party may preliminarily object to a claim upon a showing of exemption or immunity of the property from lien, or for lack of conformity with this act. The court shall determine all preliminary objections. If an issue of fact is raised in such objections, the court may take evidence by deposition or otherwise. If the filing of an amended claim is allowed, the court shall fix the time within which it shall be filed. Failure to file an objection preliminarily shall not constitute a waiver of the right to raise the same as a defense in subsequent proceedings. § 506.  Rule to file claim (a)  Entry of rule; effect. At any time after the completion of the work by a subcontractor, any owner or contractor may file a rule or rules, as of course, in the court in which said claim may be filed; requiring the party named therein to file his claim within thirty (30) days after notice of said rule or be forever barred from so doing. The rule shall be entered by the prothonotary upon the judgment index and in the mechanics’ lien docket. Failure to file a claim within the time specified shall operate to wholly defeat the right to do so. If a claim be filed, it shall be entered as of the court, term and number of the rule to file the same. (b)  Effect of claim filed by subcontractor. Where a claim is filed by a subcontractor in response to such rule, the owner may give written notice thereof to the contractor in the manner set forth by section 6029 of this act, and upon the giving of such notice the owner may avail himself of the remedies provided by sections 601 and 60410 of this act and the contractor shall be subject to the duties set forth by section 603 of this act. § 507.  Indexing claims, et cetera The prothonotary shall enter the claim, verdict and judgment upon the judgment index and mechanics’ lien docket against the owner. When a claim, verdict or judgment is stricken, reversed or satisfied, or the name of a defendant is stricken, or an action upon the claim to reduce it to judgment is discontinued, or judgment is entered thereon in favor of the defendant, a note shall be made on the judgment index. § 508. Priority of lien The lien of a claim filed under this act shall take effect and have priority as follows: (a)   Except as set forth in subsection (c), in the case of the erection or construction of an improvement, as of the date of the visible commencement upon the ground of the work of erecting or constructing the improvement. (b)   Except as set forth in subsection (c), in the case of the alteration or repair of an improvement, as of the date of the filing of the claim. 9. 49 P.S. § 1602e. 10. 49 P.S. §§ 1601 and 1604.

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Part IV Ch. 36–40 Insurance Part V Ch. 41–48A Zoning, etc. Part VI Ch. 49–56 Taxation Part VII Ch. 57–63 Litigation Part VIII Ch. 64–67 L/T Part IX Ch. 68–72 Condos, etc. Index

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Part III Ch. 23–35 Mortgages

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Part II Ch. 15–22 Deeds

11. 49 P.S. § 1405.

Part I Ch. 1–14 Brokers

(c)   Any lien obtained under this act by a contractor or subcontractor shall be subordinate to the following: (1)   A purchase money mortgage as defined in 42 Pa.C.S. § 8141(1) (relating to time from which liens have priority). (2)  An open-end mortgage as defined in 42 Pa.C.S. § 8143(f) (relating to open-end mortgages), where at least sixty percent (60%) of the proceeds are intended to pay or are used to pay all or part of the costs of construction. § 509.  Effect of forfeiture of leasehold The lien of every claim shall bind only the interest of the party named as owner of the property at the time of the contract or acquired subsequently by him, but no forfeiture or surrender of a leasehold, or tenancy, whether before or after the filing of the claim, shall operate to prejudice its lien against the fixtures, machinery or other similar property. § 510.  Discharge of lien or reduction of lien (a)   Cash deposit. Any claim filed hereunder shall, upon petition of the owner or any party in interest, be discharged as a lien against the property whenever a sum equal to the amount of the claim shall have been deposited with the court in said proceedings for application to the payment of the amount finally determined to be due. (b)   Pro-rata allocation. In any case where the claim or claims are limited in the manner and to the extent provided in section 405,11 the owner may deposit with the court in separate proceedings a sum equal to the total allowable amount of said claims determined in accordance with said section, whereupon the court, on petition of such owner, shall order all of said claims discharged as liens against the property, and the sum so deposited applied pro rata to the payment thereof in the amounts finally determined to be due. (c)   Refund of excess. Any excess of funds paid into court as aforesaid, over the amount of the claim or claims determined and paid therefrom, shall be refunded to the owner or party depositing same upon application for the same. (d)   Security in lieu of cash. In lieu of the deposit of any such sum or sums, approved security may be entered in such proceedings in double the amount of the required deposit, or in such lesser amount as the court shall approve, which, however, shall in no event be less than the full amount of such required deposit; and the entry of such security shall entitle the owner to have such liens discharged to the same effect as though the required sums had been deposited in court as aforesaid. (e)   Authority of court. The court, upon petition filed by any party, and after notice and hearing, may upon cause shown: (1)   require the increase or decrease of any deposit or security; (2)   strike off security improperly filed; (3)   permit the substitution of security and enter an exoneration of security already given. (f)  Residential Property. (1)   A claim filed under this act with respect to an improvement to a residential property subject to section 301(b) shall, upon a court order issued in response to a petition or motion to the court by the owner or a party in interest, be discharged as a lien against the property when the owner or tenant has paid the full contract price to the contractor. (2)   Where the owner or tenant has paid a sum to the contractor which is less than the sum of the full contract price, a claim filed under this act with respect to an improvement to a residential property subject to section 301(b) shall, upon a court order issued in response to a petition or motion to the court

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12/22/21 10:45 AM

§ 601

MECHANICS’ LIEN LAW OF 1963

by the owner or a party in interest, cause the lien to be reduced to the amount of the unpaid contract price owed by the owner or tenant to the contractor. § 601.  Owner’s right to retain funds of contractor An owner who has been served with a notice of intention to file or a notice of the filing of a claim by a subcontractor may retain out of any moneys12 due or to become due to the contractor named therein, a sum sufficient to protect the owner from loss until such time as the claim is finally settled, released, defeated or discharged. § 602.  Notice to contractor of claim (a)   An owner served with a notice as provided by section 60113 may, and if he has retained any funds due the contractor shall, give written notice thereof to the contractor named. (b)   The notice shall state: (1)   the name of the subcontractor, the amount of the claim and the amount withheld, if any, by the owner; (2)  that unless the contractor within thirty (30) days from service of the notice settles, undertakes to defend, or secures against the claim as provided by section 603,14 the owner may avail himself of the remedies provided by section 604.15 (c)   The notice may be given by the owner or his agent to the contractor personally, or to the contractor’s manager, executive or principal officer or other agent, or if none of these persons can be found, by sending a copy of the notice by first class, registered or certified mail to the contractor at his last known office address. § 603.  Contractor’s duties on receipt of notice Upon service of the notice provided by section 602,16 the contractor shall within thirty (30) days from the contractor’s receipt of notice: (1)  settle or discharge the claim of the subcontractor and furnish to the owner a written copy of a waiver, release or satisfaction thereof, signed by the claimant; or (2)   agree in writing to undertake to defend against said claim, and if the owner has not retained sufficient funds to protect him against loss, furnish the owner additional approved security to protect the owner from loss in the event the defense should be abandoned by the contractor or should not prevail; or (3)   furnish to the owner approved security in an amount sufficient to protect the owner from loss on account of said claim. § 604.  Additional remedies of owner Should the contractor fail to settle, discharge or defend or secure against the claim, as provided by this act, the owner may: (1)   pay the claim of the subcontractor, upon which payment the owner shall be subrogated to the rights of the subcontractor against the contractor together with any instrument or other collateral security held by the subcontractor for the payment thereof; or (2)   undertake a defense against said claim in which case the contractor shall be liable to the owner for all costs, expenses and charges incurred in such defense, including reasonable attorneys’ fees, whether said defense be successful or not, but the undertaking of such defense shall not affect the right of the owner to 12. 13. 14. 15. 16.

Enrolled bill reads “monies”. 49 P.S. § 1601. 49 P.S. § 1603. 49 P.S. § 1604. 49 P.S. § 1602.

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Part VI Ch. 49–56 Taxation Part VII Ch. 57–63 Litigation Part VIII Ch. 64–67 L/T Part IX Ch. 68–72 Condos, etc. Index

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Part V Ch. 41–48A Zoning, etc.

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17. Enrolled bill reads “contractor’s”. 18. 49 P.S. § 1502.

Part III Ch. 23–35 Mortgages

§ 702.  Effect of judgment on right to personal action Nothing in this act shall alter or affect the right of a claimant to proceed in any other manner for the collection of his debt. § 703.  Appeal from judgment From any judgment, order or decree entered by the court of common pleas under the provisions of this act or from any refusal to open a judgment entered by default, an appeal may be taken. § 704.  Satisfaction of claims; penalty for failure to satisfy If shall be the duty of a claimant upon payment, satisfaction or other discharge of the claim, verdict or judgment to enter satisfaction thereof upon the record upon payment of the costs of same. Upon failure to do so within thirty (30) days after a written request to satisfy, the court upon petition of any party in interest may order the claim, verdict or judgment satisfied and the claimant shall be subject to a penalty in favor of the party aggrieved in such sum as the court in the petition proceedings shall determine to be just, but not exceeding the amount of the claim.

Part II Ch. 15–22 Deeds

§ 701.  Procedure to obtain judgment (a)  Practice and Procedure. The practice and procedure to obtain judgment upon a claim filed shall be governed by the Rules of Civil Procedure promulgated by the Supreme Court. (b)   Time for Commencing Action. An action to obtain judgment upon a claim filed shall be commenced within two (2) years from the date of filing unless the time be extended in writing by the owner. (c)   Venue; Property in More Than One County. Where a claim has been filed in more than one county as provided by section 502(b),18 proceedings to obtain judgment upon all the claims may be commenced in any of the counties and the judgment shall be res adjudicata as to the merits of the claims properly filed in the other counties. The judgment may be transferred to such other county by filing of record a certified copy of the docket entries in the action and a certification of the judgment and amount, if any. The prothonotary of the court to which the judgment has been transferred shall forthwith index it upon the judgment index and enter it upon the mechanics’ lien docket. (d)  Limitation on Time of Obtaining Judgment. A verdict must be recovered or judgment entered within five (5) years from the date of filing of the claim. Final judgment must be entered on a verdict within five (5) years. If a claim is not prosecuted to verdict or judgment, as provided above, the claim shall be wholly lost: Provided, however, That in either case, if a complaint has been or shall be filed in the cause and if the cause has been or shall be at issue, all time theretofore or thereafter consumed in the presentation and disposition of all motions and petitions of defendants, substituted defendants and intervenors in the cause, and in any appeal or appeals from any order in the cause, from the date of perfection of such appeal to the date of return of the certiorari from the appellate court to the court of common pleas, shall be excluded in the computation of the five (5) year period herein provided. (e)  Defense to Action on Claim. A setoff arising from the same transaction or occurrence from which the claim arose may be pleaded but may not be made the basis of a counterclaim.

Part I Ch. 1–14 Brokers

retain funds of the contractor under section 601 until the subcontractor’s17 claim is finally defeated or discharged.

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§ 705

MECHANICS’ LIEN LAW OF 1963

§ 705.  Revival of judgment Judgment upon a claim shall be revived within each recurring five-year period. The practice and procedure to revive judgment shall be governed by the Judgment Lien Law of 1947, as now in force or hereafter amended, and the Rules of Civil Procedure promulgated by the Supreme Court, but the lien of the revived judgment shall, as in the case of the original judgment, be limited to the liened property. § 706.  Execution upon judgment (a)  Judgment Essential to Execution. No execution shall issue against the property subject to a claim except after judgment shall have been obtained upon the claim, and within five (5) years from the date of such judgment or a revival thereof. (b)   Conformity to Rules of Civil Procedure. The practice and procedure relating to execution shall be governed by the Pennsylvania Rules of Civil Procedure relating to execution. (c)   Division of Tract. Where only a part of a single tract is subject to the lien of a mechanic’s claim, and such part cannot be sold without prejudice or injury to the whole, the court on petition of the owner, claimant or any person in interest may order the entire tract sold and shall equitably distribute the proceeds of sale according to the relative value of the part bound by and that free of the claim. The court may determine the matter itself and for that purpose may receive evidence by deposition or otherwise, or may appoint an auditor to hear the evidence and report to the court. § 801.  Severability If any provision of this act or the application thereof to any person or circumstance is held invalid, the remainder of this act, and the application of such provision to other persons or circumstances, shall not be affected thereby and to this end the provisions of this act are declared to be severable. § 802.  Effective date This act shall take effect on the first day of January, 1964, but shall not apply to liens filed prior to said date except with respect to the practice and procedure prescribed by Article VII of this act.19 § 901.  Specific repeal The following act is repealed absolutely. The act of June 4, 1901 (P.L. 431), entitled “An act defining the rights and liabilities of parties to, and regulating the effect of, contracts for work and labor to be done, and labor or materials to be furnished, to any building, bridge, wharf, dock, pier, bulkhead, vault, subway, tramway, tollroad, conduit, tunnel, mine, coal-breaker, flume, pump, screen, tank, derrick, pipe-line, aqueduct, reservoir, viaduct, telegraph, telephone, railway or railroad line; canal millrace; works for supplying water, heat, light, power, cold air, or any other substance furnished to the public; well for the production of gas, oil or other volatile or mineral substance; or other structure or improvement, of whatsoever kind or character the same may be; providing remedies for the recovery of debts due by reason of such contracts, and repealing, consolidating and extending existing laws in relation thereto.”20 § 902.  General repeal All other acts and parts of acts are repealed in so far as they are inconsistent herewith. 19. 49 P.S. § 1701 et seq. 20. 49 P.S. §§ 1 to 6, 21 to 31, 51 to 57, 71 to 80, 101 to 105, 131 to 136, 151 to 160, 181 to 184, 201 to 203, 221 to 224, 241 to 247, 261 to 268 (repealed).

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CHAPTER 35

Part I Ch. 1–14 Brokers

CONTRACTOR AND SUBCONTRACTOR PAYMENT ACT

Table of Contents

PART III

73 P.S. § 501 to 73 P.S. § 516

Sec.

1. Short title 2. Definitions 3. Application of act 4. Performance by contractor or subcontractor 5. Owner’s payment obligations 6. Owner’s withholding of payment for good faith claims 7. Contractor’s and subcontractor’s payment obligations 8. Errors in documentation 9. Retainage 10. Prepayment; advance payment 11. Contractor’s withholding of payment for good faith claims 12. Penalty and attorney fee 13. Contracts involving Federal aid 14. Applicable law 15. Applicability 16. Third party claims

Part II Ch. 15–22 Deeds Part III Ch. 23–35 Mortgages Part IV Ch. 36–40 Insurance

§ § § § § § § § § § § § § § § §

Part VIII Ch. 64–67 L/T Part IX Ch. 68–72 Condos, etc. Index

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Part VII Ch. 57–63 Litigation

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Part VI Ch. 49–56 Taxation

“Improvement.” (1)   All or any part of a building or structure. (2)  The erection, alteration, demolition, excavation, clearing, grading or filling of real property.

Part V Ch. 41–48A Zoning, etc.

§ 1.  Short title This act shall be known and may be cited as the Contractor and Subcontractor Payment Act. § 2.  Definitions The following words and phrases when used in this act shall have the meanings given to them in this section unless the context clearly indicates otherwise: “Billing period.” A payment cycle agreed to by the parties or, in the absence of an agreement, the calendar month within which work is performed. “Construction contract.” An agreement, whether written or oral, to perform work on any real property located within this Commonwealth. “Contractor.” A person authorized or engaged by an owner to improve real property. “Deficiency item.” Work performed but which the owner, the contractor or the inspector will not certify as being completed according to the specifications of a construction contract. “Delivery.” Transmittal to an addressee, including, but not limited to, delivery by first class or registered mail, hand delivery or transmission by facsimile machine. Mail, properly addressed, shall be deemed delivered three days from the day it was sent. “Improve.” To design, effect, alter, provide professional or skilled services, repair or demolish any improvement upon, connected with, or on or beneath the surface of any real property, to excavate, clear, grade, fill or landscape any real property, to construct driveways and private roadways, to furnish materials, including trees and shrubbery for any of these purposes, or to perform any labor upon improvements.

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§ 3

CONTRACTOR PAYMENT ACT

(3)  Landscaping, including the planting of trees and shrubbery, and constructing driveways and private roadways on real property. “Inspector.” The contractor or a person authorized or engaged by the owner to inspect the work performed pursuant to a construction contract to determine whether the work completed is in compliance with the construction contract. “Owner.” A person who has an interest in the real property that is improved and who ordered the improvement to be made. The term includes successors in interest of the owner and agents of the owner acting with their authority. “Person.” A corporation, partnership, business trust, other association, estate, trust foundation or a natural individual. “Real property.” Real estate that is improved, including lands, leaseholds, tenements and hereditaments, and improvements placed thereon. “Subcontractor.” A person who has contracted to furnish labor or materials to, or has performed labor for, a contractor or another subcontractor in connection with a contract to improve real property. § 3.  Application of act (a)  Number of residential units.—This act shall not apply to improvements to real property which consists of six or fewer residential units which are under construction simultaneously. (b)  Owner’s exclusion.—This act shall not apply to contracts for the purchase of materials by a person performing work on his or her own real property. (c)   Prohibition on waiver.—Unless specifically authorized under this act, parties to a contract or other agreement may not waive a provision of this act by contract or other agreement. § 4.  Performance by contractor or subcontractor Performance by a contractor or a subcontractor in accordance with the provisions of a contract shall entitle the contractor or subcontractor to payment from the party with whom the contractor or subcontractor has contracted. § 5.  Owner’s payment obligations (a)  Construction contract.—The owner shall pay the contractor strictly in accordance with terms of the construction contract. (b)   Absence of payment term.—In the absence of a construction contract or in the event that the construction contract does not contain a term governing the terms of payment, the contractor shall be entitled to invoice the owner for progress payments at the end of the billing period. The contractor shall be entitled to submit a final invoice for payment in full upon completion of the agreed-upon work. (c)   Time for payment.—Except as otherwise agreed by the parties, payment of interim and final invoices shall be due from the owner 20 days after the end of a billing period or 20 days after delivery of the invoice, whichever is later. (d)  Interest.—Except as otherwise agreed by the parties, if any progress or final payment to a contractor is not paid within seven days of the due date established in subsection (c), the owner shall pay the contractor, beginning on the eighth day, interest at the rate of 1% per month or fraction of a month on the balance that is at the time due and owing. (e)   Suspension of performance.— (1)   If payment is not received by a contractor in accordance with this section, the contractor shall have the right to suspend performance of any work, without penalty, until payment is received according to the terms of the construction contract. Any procedure in a construction contract that exceeds the procedure in paragraph (2) shall be unenforceable.

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Part VII Ch. 57–63 Litigation Part VIII Ch. 64–67 L/T Part IX Ch. 68–72 Condos, etc. Index

gtb-parealestate22-all.indb 463

Part VI Ch. 49–56 Taxation

463

Part V Ch. 41–48A Zoning, etc.

1. 73 P.S. § 509. 2. 73 P.S. § 505(c).

Part IV Ch. 36–40 Insurance

(1)   Except as provided under section 9,1 if an owner withholds payment from a contractor for a deficiency item, the amount withheld shall be reasonable and the owner shall notify the contractor of the deficiency item by a written explanation of its good faith reason within 14 calendar days of the date that the invoice is received. (2)  Failure to comply with paragraph (1) shall constitute a waiver of the basis to withhold payment and necessitate payment of the contractor in full for the invoice. (3)  If an owner withholds payment from a contractor for a deficiency item, the owner shall remit payment to the contractor for each other item that has been satisfactorily completed under the construction contract. § 7.  Contractor’s and subcontractor’s payment obligations (a)  Entitlement to payment.—Performance by a subcontractor in accordance with the provisions of the construction contract shall entitle the subcontractor to payment from the party with whom the subcontractor has contracted. (b)  Disclosure of payment dates.—A contractor or subcontractor shall disclose to a subcontractor, before a subcontract is executed, the due date for receipt of payments from the owner. Notwithstanding any other provision of this act, if a contractor or subcontractor fails to accurately disclose the due date to a subcontractor, the contractor or subcontractor shall be obligated to pay the subcontractor as though the due dates established in section 5(c)2 were met by the owner. This subsection shall not apply to a change in due dates because of conditions outside of the contractor’s control, including, but not limited to, design changes, change orders or delays in construction due to weather conditions. (c)   Time for payment.—When a subcontractor has performed in accordance with the provisions of the construction contract, a contractor shall pay to the subcontractor, and each subcontractor shall in turn pay to the subcontractor’s subcontractors, the full or proportional amount received for each such subcontractor’s work and materials, based on work completed or service provided under the subcontract, 14 days after receipt of each progress or final payment or 14 days

Part III Ch. 23–35 Mortgages

(b)  Notice.—

Part II Ch. 15–22 Deeds

§ 6.  Owner’s withholding of payment for good faith claims (a)  Authority to withhold.—The owner may withhold payment for deficiency items according to the terms of the construction contract. The owner shall pay the contractor according to the provisions of this act for any item which appears on the invoice and has been satisfactorily completed.

Part I Ch. 1–14 Brokers

(2)   Suspension of performance in a construction contract may occur in accordance with paragraph (1) or if: (i)   payment has not been made to the contractor in accordance with the schedule established under subsection (c); (ii)  at least 30 calendar days have passed since the end of the billing period for which payment has not been received according to the terms of the construction contract. The contractor shall provide written notice to the owner or the owner’s authorized agent, via electronic mail or postal service, stating that payment has not been made; and (iii)  at least 30 calendar days have passed since the written notice in subparagraph (ii) has been sent. The contractor shall provide at least 10 calendar days’ written notice, via certified mail, of the contractor’s intent to suspend performance to the owner or the owner’s authorized agent.

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PART III

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§ 8

CONTRACTOR PAYMENT ACT

after receipt of the subcontractor’s invoice, whichever is later. Payment shall be made under this section unless it is being withheld under section 11.3 (d)  Interest.—If any progress or final payment to a subcontractor is delayed beyond the date established in subsection (b) or (c), the contractor or subcontractor shall pay the subcontractor interest, beginning on the next day, at the rate provided for in section 5(d)4 on the balance that is at the time due and owing. (e)   Suspension of performance.— (1)   If payment is not received by a subcontractor in accordance with this section, the subcontractor shall have the right to suspend performance of any work, without penalty, until payment is received according to the terms of the construction contract. Any procedure in a construction contract that exceeds the procedure in paragraph (2) shall be unenforceable. (2)   Suspension of performance in a construction contract may occur in accordance with paragraph (1) or if: (i)   payment has not been made to the subcontractor in accordance with the schedule established under subsection (c); (ii)  at least 30 calendar days have passed since the end of the billing period for which payment has not been received according to the terms of the construction contract. The subcontractor shall provide written notice to the contractor or contractor’s authorized agent, via electronic mail or postal service, stating that payment has not been made; and (iii)  at least 30 calendar days have passed since the written notice in subparagraph (ii) has been sent. The subcontractor shall provide at least 10 calendar days’ written notice, via certified mail, of the subcontractor’s intent to suspend performance to the owner or the owner’s authorized agent. § 8.  Errors in documentation (a)  Notice of errors in invoice.—If an invoice is filled out incorrectly or incompletely or if there is any other defect or impropriety in an invoice, the person who receives the incorrect invoice shall give written notice to the person who sent the incorrect invoice within ten working days of receipt of the invoice. (b)  Deleted by Act 2018, June 12, P.L. 131, No. 27, § 4. (c)  Payment for invoice with error.—Once written notice has been received by the person who sent the incorrect invoice, the person receiving the invoice shall pay the correct amount of the invoice on the due date in accordance with this act. § 9.  Retainage (a)   Time for payment.—If payments under a construction contract are subject to retainage, any amounts which have been retained during the performance of the contract and which are due to be released to the contractor upon final completion shall be paid within 30 days after final acceptance of the work. (a.1)   Posting of security in lieu of retainage.—Upon reaching substantial completion of its own scope of work, a contractor or subcontractor may facilitate the release of retainage on its contract before final completion of the project by posting a maintenance bond with approved surety for 120% of the amount of retainage being held. (b)   Agreement between contractor and subcontractor.—If an owner is not withholding retainage, a contractor may withhold retainage from a subcontractor in accordance with their agreement. The retainage shall be paid within 30 days after final acceptance of the work. 3. 73 P.S. § 511. 4. 73 P.S. § 505(d).

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Index

465

Part IX Ch. 68–72 Condos, etc.

506(b) or 511(b). 505(d). 512. 511. 509.

Part VIII Ch. 64–67 L/T

§ § § § §

Part VII Ch. 57–63 Litigation

P.S. P.S. P.S. P.S. P.S.

Part VI Ch. 49–56 Taxation

73 73 73 73 73

Part V Ch. 41–48A Zoning, etc.

5. 6. 7. 8. 9.

Part IV Ch. 36–40 Insurance

§ 12.  Penalty and attorney fee (a)   Penalty for failure to comply with act.— (1)   If arbitration or litigation is commenced to recover payment due under this act and it is determined that an owner, contractor or subcontractor has failed to comply with the payment terms of this act, the arbitrator or court

Part III Ch. 23–35 Mortgages

§ 11.  Contractor’s and subcontractor’s withholding of payment for good faith claims (a)   Authority to withhold.—The contractor or subcontractor may withhold payment from any subcontractor responsible for a deficiency item. The contractor or subcontractor shall pay any subcontractor according to the provisions of this act for any item which appears on the invoice and has been satisfactorily completed. (b)  Notice.— (1)  Except as provided under section 9,9 if a contractor or subcontractor withholds payment from a subcontractor for a deficiency item, the contractor or subcontractor withholding payment must notify the subcontractor and the owner in writing of the good faith reason for the withholding within the time period specified in the construction contract or 14 calendar days of the date after receipt of the notice of the deficiency item. (2)  Failure to comply with paragraph (1) shall constitute a waiver of the basis to withhold payment and necessitate payment of the subcontractor in full for the invoice. (c)  Amount of withholding.—If a contractor or subcontractor withholds payment from a subcontractor for a deficiency item, the contractor or subcontractor withholding payment shall remit payment to the subcontractor for each other item that has been satisfactorily completed under the construction contract.

Part II Ch. 15–22 Deeds

§ 10.  Prepayment; advance payment This act shall not be construed to prohibit an owner, contractor or subcontractor from making advance payments or progress payments, or from prepaying if an agreement or other circumstances make such payment appropriate. All payments shall be made when they are due and owing and if not so made shall bear interest at the rate provided for in section 5(d)7 from the date payment was due. The person who fails to make timely payment shall also be subject to the provisions of section 11.8

Part I Ch. 1–14 Brokers

(c)   Payment of retainage to subcontractors.—A contractor shall pay to the contractor’s subcontractors, and each subcontractor shall in turn pay to the subcontractor’s subcontractors, within 14 days after receipt of the retainage, the full amount due each subcontractor. (d)   Withholding acceptance or failure to pay retainage.—Withholding of retainage for longer than 30 days after final acceptance of the work shall be subject to the obligations imposed upon the owner, contractor or subcontractor in section 6(b) or 11(b).5 If an owner, contractor or subcontractor unreasonably withholds acceptance of work or fails to pay retainage as required by this section, the owner, contractor or subcontractor shall be subject to the payment of interest at the rate established in section 5(d)6 on the balance due and owing on the date acceptance was unreasonably withheld or the date the retainage was due and owing, whichever is applicable. The owner, contractor or subcontractor shall also be subject to the provisions of section 12.7

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PART III

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§ 13

CONTRACTOR PAYMENT ACT

shall award, in addition to all other damages due, a penalty equal to 1% per month of the amount that was wrongfully withheld. (2)   An amount shall not be deemed to have been wrongfully withheld if all of the following apply: (i)   The amount bears a reasonable relation to the value of any claim held in good faith by the owner, contractor or subcontractor against whom the contractor or subcontractor is seeking to recover payment. (ii)   The claim holder complies with section 6 or 11.10 (b)  Award of attorney fee and expenses.—Notwithstanding any agreement to the contrary, the substantially prevailing party in any proceeding to recover any payment under this act shall be awarded a reasonable attorney fee in an amount to be determined by the court or arbitrator, together with expenses. § 13.  Contracts involving Federal aid If any provision of this act conflicts with a Federal statute or regulation or with conditions attached to the receipt of Federal aid, this act shall not operate to prevent receipt of Federal aid. § 14.  Applicable law Making a contract subject to the laws of another state or requiring that any litigation, arbitration or other dispute resolution process on the contract occur in another state, shall be unenforceable. § 15.  Applicability This act shall apply to construction contracts executed on or after the effective date of this act. § 16.  Third party claims Once a contractor has made payment to the subcontractor according to the payment terms of the construction contract or the provisions of this act, future claims for payment against the contractor by parties owed payment from the subcontractor which has been paid shall be barred.

10. 73 P.S. § 506 or 511.

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Table of Contents

PART IV

Chapter Chapter Chapter Chapter Chapter

36.  Title Insurance Companies 37.  Notice Requirements of Property and Casualty Insurers 38. Insurance Adjusters 39.  The Pennsylvania Fair Plan Act 40.  Mortgage Property Coverage Insurance Act

TITLE INSURANCE COMPANIES 40 P.S. § 910-1 to 40 P.S. § 910-55

Part III Ch. 23–35 Mortgages

CHAPTER 36

Part II Ch. 15–22 Deeds



Part I Ch. 1–14 Brokers

HAZARD, TITLE, & MORTGAGE INSURANCE

Sec.

Part VII Ch. 57–63 Litigation Part VIII Ch. 64–67 L/T Part IX Ch. 68–72 Condos, etc. Index

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Part VI Ch. 49–56 Taxation

467

Part V Ch. 41–48A Zoning, etc.

§ § § § § § § § § § § § § § § § § § § § § § § § § § § §

701. Definitions 702. Application of article 703. Compliance with article required 704. Corporate form required 705. Financial requirements 706. Procedure when capital impaired 707. Title examination required 708. Power to insure titles to real estate 709. Prohibition upon guaranteeing mortgages 710. Power to insure titles to real estate; loss of power 711. Power to accept deposits; loss of title insurance powers 712. Power to act as a fiduciary; loss of title insurance powers 713. Power of title insurance company. Prohibition against transacting other kinds of insurance; prohibition against other kinds of insurance companies transacting title insurance 714. Unearned premium reserve 715. Amount of unearned premium reserve; release thereof 716. Investment and maintenance of the unearned premium reserve 717. Use of the unearned premium reserve 718. Reserve for unpaid losses and loss expense 719. Primary retained liability 720. Power to reinsure 721. Special reinsurance 722. Licensure 723. Repealed 724. Agents; defined 724.1. Additional requirements 724.2. Financial responsibility 725. Agents; names to be certified to commissioner 726. Agents; to be certified and appointed 726.1. Other requirements 727. Agents; books, records, etc. 728. Agents; replies to inquiries by Commissioner 729. Agents; certain names prohibited 730. Repealed 731. Commissions; other considerations prohibited 732. Capital 733. Surplus 734. Unearned premium reserve 735. Other reserves 736. Investments acquired before effective date 737. Rate filing 738. Justification for rates

Part IV Ch. 36–40 Insurance

§ § § § § § § § § § § § §

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§ 701 § § § § § § § § § § § § § § § § § § §

TITLE INSURANCE COMPANIES

739. Making of rates 739.1. Conditions 739.2. Division of fees 740. Disapproval of filings 741. Rating organizations 742. Deviations 743. Appeal by minority 744. Information to be furnished insureds; hearings and appeals of insureds 745. Examinations of rating organizations 746. Rate administration; authority and duties of Commissioners; rules and regulations 747. False or misleading information 748. Penalties 749. Hearing procedure and judicial review 750. Existing filings and hearings, continued 751. Repealed 752. Repealed 753. Repealed 754. Other sections applicable 755. Investment plan

§ 701.  Definitions For the purpose of this article: (1)  “Title insurance” means insuring, guaranteeing or indemnifying against loss or damage suffered by owners of real property or by others interested therein by reason of liens, encumbrances upon, defects in or the unmarketability of the title to said real property; guaranteeing, warranting or otherwise insuring the correctness of searches relating to the title to real property; and doing any business in substance equivalent to any of the foregoing in a manner designed to evade the provisions of this article. (2)  The “business of title insurance” shall be deemed to be (i) the making as insurer, guarantor or surety, or proposing to make as insurer, guarantor or surety, of any contract or policy of title insurance; (ii) the transacting, or proposing to transact, any phase of title insurance, including solicitation, negotiation preliminary to execution, execution of a contract of title insurance, insuring and transacting matters subsequent to the execution of the contract and arising out of it, including reinsurance; and (iii) the doing, or proposing to do, any business in substance equivalent to any of the foregoing in a manner designed to evade the provisions of this article. (3)  “Title insurance company” means any domestic company organized under the provisions of this article for the purpose of insuring titles to real estate, a title insurance company organized under the laws of another state or foreign government and licensed to insure titles to real estate within this Commonwealth pursuant to section 7221 of this article,2 domestic and foreign companies, including any domestic bank or trust company, having the power and authorized to insure titles to real estate within this Commonwealth as to the effective date of this amendment and which meet the requirements of section 7103 of this article.4 (4)  “Applicant for insurance” shall be deemed to include approved attorneys, real estate brokers, real estate salesmen, attorneys at law and all 1. 2. 3. 4.

Enrolled bill reads “725”. 40 P.S. § 910-22. Enrolled bill reads “712”. 40 P.S. § 910-10.

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HAZARD AND TITLE INSURANCE

Ch. 36

Part VII Ch. 57–63 Litigation Part VIII Ch. 64–67 L/T Part IX Ch. 68–72 Condos, etc. Index

gtb-parealestate22-all.indb 469

Part VI Ch. 49–56 Taxation

469

Part V Ch. 41–48A Zoning, etc.

§ 910-1. §§ 383 (repealed), 384 (repealed), 385. §§ 387 to 389 (repealed), 400, 401 to 404 (repealed). § 405.

Part IV Ch. 36–40 Insurance

P.S. P.S. P.S. P.S.

Part III Ch. 23–35 Mortgages

40 40 40 40

Part II Ch. 15–22 Deeds

5. 6. 7. 8.

Part I Ch. 1–14 Brokers

others who from time to time apply to a title insurance company or to an agent of a title insurance company, for title insurance, and who at the time of such application are not agents for a title insurance company. (5)  “Fee” for title insurance means and includes the premium, the examination and settlement or closing fees, and every other charge, whether denominated premium or otherwise, made by a title insurance company, agent of a title insurance company or an approved attorney of a title insurance company, or any of them, to an insured or to an applicant for insurance, for any policy or contract for the issuance of, or an application for any class or kind of, title insurance; but the term “fee” shall not include any charges paid by an insured or by an applicant for insurance, for any policy or contract, to an attorney at law acting as an independent contractor and retained by such attorney at law, whether or not he is acting as an agent of or an approved attorney of a title insurance company, or any charges made for special services not constituting title insurance, even though performed in connection with a title insurance policy or contract. (6)  “Commissioner” means the Insurance Commissioner of the Commonwealth of Pennsylvania. (7)  An “approved attorney” means an attorney at law in good standing upon whose examination of title and report of title thereon a title insurance company may issue a policy of title insurance. § 702.  Application of article The provisions of this article shall apply to all title insurance companies, title rating organizations, title insurance agents, applicants for title insurance, policyholders and to all persons and business entities engaged in the business of title insurance. § 703.  Compliance with article required On and after the effective date of this amendment, only a title insurance company as defined in clause (3) of section 701,5 shall underwrite or issue a policy of title insurance; further, no person, firm, association, corporation, cooperative or joint-stock company shall engage in the business of title insurance in this Commonwealth unless authorized to transact such a business by the provisions of this article. § 704.  Corporate form required A title insurance company shall be organized as a stock corporation as provided in sections 203 to 205, inclusive,6 and 207 to 214, inclusive,7 of this act, and certified in the manner prescribed in section 215,8 except as hereinafter prescribed, to do the kind of insurance business, with incidental powers, specified in this article. § 705.  Financial requirements Every title insurance company shall have a minimum capital, which shall be paid in and maintained, of not less than five hundred thousand dollars ($500,000) and, in addition, paid-in initial surplus at least equal to fifty percent of its capital. § 706.  Procedure when capital impaired If for any reason the capital of a title insurance company becomes impaired, such title insurance company shall forthwith give written notice thereof to the commissioner and shall make no further policies or contracts or reinsurance agreements of title insurance while such impairment exists. Such title insurance company shall immediately call upon its stockholders for such amounts

Table of Contents

PART IV

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§ 707

TITLE INSURANCE COMPANIES

as will restore its capital to an amount prescribed by the commissioner. In case any stockholder neglects or refuses to pay the amount called for, after notice personally given or by advertisement, at such time and in such manner as the commissioner shall approve, the title insurance company shall require the return of the original certificate or certificates of stock held by such stockholder, and, in lieu thereof, issue new certificates in the proportion that the ascertained value of the assets may, as determined by the commissioner, bear to the capital existing immediately prior to the impairment, the title insurance company paying for any fractional parts of shares. The directors of the title insurance company, with the prior consent and approval of the commissioner, may create new stock, and issue certificates therefor, and dispose of the same, at not less than par, for an amount sufficient to make up the original capital or the commissioner may, in his discretion, permit the company to reduce its capital and the par value of its shares in proportion to the extent of the impairment, but the capital shall at no time be reduced to an amount less than that required by law for the organization of any such company. In fixing such reduced capital, not more than fifty per cent of the original capital shall be deducted from the assets on hand to be retained as surplus funds, nor shall any part of assets be distributed to stockholders. When the amount of capital prescribed by the commissioner has been restored, the title insurance company shall so notify the commissioner who, upon being satisfied that the impairment no longer exists and is not likely to recur, shall give written approval authorizing the title insurance company to again issue such policies or contracts or reinsurance agreements of title insurance. § 707.  Title examination required No policy of title insurance, excluding reinsurance, shall be written unless and until the title insurance company, either through its own employes, agents or approved attorneys, has conducted a reasonable examination of the record title or has caused a reasonable examination of title to be conducted. The abstract of title or the report of the examination thereof shall be in writing and shall be kept on file by the title insurance company or its agent or approved attorney for a period of not less than twenty years after the policy of title insurance has been issued. In lieu of retaining the original copy, the title insurance company or the agent of the title insurance company or the approved attorney of the title insurance company, may, in the regular course of business, establish a system whereby all or part of these writings are recorded, copied or reproduced by any photographic, photostatic, microfilm, micro-card, miniature photographic or other process which accurately reproduces or forms a durable medium for reproducing the original. § 708.  Power to insure titles to real estate Every title insurance company shall have the power to make insurance of every kind pertaining to or connected with title to real estate, and to make, execute and perfect such and so many contracts, agreements, policies and other instruments as may be required therefor, such insurances to be made for the benefit of owners of real estate, mortgagees and others interested in real estate, from loss by reason of defective titles, liens and encumbrances. § 709.  Prohibition upon guaranteeing mortgages A title insurance company shall not, in any manner whatsoever, guarantee the payment of the principal or the interest of bonds or other obligations secured by mortgages upon real property. § 710.  Power to insure titles to real estate; loss of power (a)   Every title insurance company which upon the effective date of this amendment shall lawfully possess and which has within one year prior to such date lawfully exercised in this Commonwealth the power to insure owners of real

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Ch. 36

§ 711.   Power to accept deposits; loss of title insurance powers

Part V Ch. 41–48A Zoning, etc. Part VI Ch. 49–56 Taxation Part VII Ch. 57–63 Litigation Part VIII Ch. 64–67 L/T Part IX Ch. 68–72 Condos, etc.

Any title insurance company which shall possess the further powers to act as trustee, guardian, executor, administrator, or in any other similar fiduciary capacity, and shall not have exercised, within one year preceding the effective date of this amendment, any of such further powers, and again shall exercise any of such further powers, shall make no further contracts or issue any policies of title insurance. Any such title insurance company possessing such further powers and which shall not hereafter exercise any of such further powers for any consecutive period of one year, upon exercising again any of such further powers shall make no further contracts or issue any policies of title insurance. § 713.  Power of title insurance company. Prohibition against transacting other kinds of insurance; prohibition against other kinds of insurance companies transacting title insurance A title insurance company shall not transact, underwrite or issue any kind of insurance other than title insurance; nor shall title insurance be transacted, underwritten or issued by any company transacting any other kinds of insurance. § 714.  Unearned premium reserve (a)   Every title insurance company shall, in addition to other reserves, establish and maintain a reserve to be known as the “unearned premium reserve” for title insurance, which shall, at all times for all purposes, be deemed and shall constitute the unearned portions of premiums due or received and shall be charged as a reserve liability of such title insurance company in determining its financial condition. (b)   The unearned premium reserve shall be retained and held by such title insurance company for the protection of the policyholders’ interest in policies which have not expired. Except as provided in section 717 of this act,9 assets equal to the amount of such reserve shall not be subject to distribution among depositors or other creditors or stockholders of such title insurance company until all claims of policyholders or holders of other title insurance contracts or agreements of such title insurance company have been paid in full and all liability on the policies or other title insurance contracts or agreements, whether contingent or actual, has been discharged or lawfully reinsured. Income from the

Part IV Ch. 36–40 Insurance

§ 712.  Power to act as a fiduciary; loss of title insurance powers

Part III Ch. 23–35 Mortgages

Any title insurance company which shall possess the further powers to receive deposits or otherwise to engage in a banking business, and shall not have exercised, within one year preceding the effective date of this amendment, any of such further powers, and shall again exercise such further powers to receive deposits or otherwise engage in a banking business, shall make no further contracts or issue any policies of title insurance. Any title insurance company possessing such further powers and shall not hereafter exercise any of such further powers for any consecutive period of one year, upon exercising again such further powers to receive deposits or otherwise engage in a banking business, shall make no further contracts or issue any policies of title insurance.

Part II Ch. 15–22 Deeds

(b)   Every title insurance company which does not hereafter exercise for any period of twelve months the power to insure owners of real property, mortgagees and others interested in real property, from loss by reason of defective titles, liens and encumbrances shall be forever barred from the exercise of such power.

Part I Ch. 1–14 Brokers

property, mortgagees, and others interested in real property, and others from loss by reason of defective titles, liens and encumbrances, shall, subject to the conditions herein prescribed, continue to possess such power.

Table of Contents

PART IV

9. 40 P.S. § 910-17.

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Index

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§ 715

TITLE INSURANCE COMPANIES

investment of the amount of such reserve shall be the unrestricted property of the title insurance company. § 715.  Amount of unearned premium reserve; release thereof (a)  The unearned premium reserve of every title insurance company shall consist of: (1)   The amount of the unearned premium reserve held as of the effective date of this amendment, pursuant to or under permission granted by any prior act of Assembly; and (2)   The amount of all additions required to be made to such reserve by this section, less the withdrawals therefrom as permitted by this section. (b)  Except as otherwise provided in this subsection, every title insurance company shall add to its unearned premium reserve, in respect to each policy or contract or reinsurance agreement issued by it, a sum of money out of the fees due or received for such title insurance made by it, a sum equal to one dollar ($1) for each such policy or contract or agreement, plus ten cents (10¢) for each one thousand dollars ($1000) face amount of net retained liability, and shall each year separately report the amounts so set aside in respect to policies, contracts or agreements written in such year. If substantially the entire outstanding liability of any such title insurance company shall be reinsured, the unearned premium reserve of the reinsurer shall be equal in amount to the reserve of the ceding title insurance company in respect to such outstanding liability so reinsured. (c)   The amounts set aside as additions to the unearned premium reserve shall be deducted in determining net profits of any title insurance company. (d)   For the purposes of determining the amounts of the unearned premium reserve that may be withdrawn, and the interest of the policyholders therein under section 717 of this act,10 all policies, contracts or reinsurance agreements of title insurance shall be considered as dated on July 1 in the year of issue. (e)   Additions to the unearned premium reserve which shall have been held for a period of twenty years shall be released, shall no longer constitute a part of the unearned premium reserve, shall constitute a part of net profit for the year in which the release is made and may be used for any corporate purposes, including the payment of dividends. (f)   Additions to the unearned premium reserve made since the establishment of the unearned premium reserve by sections 690 to 69411 shall continue to be released in the manner prescribed in subsection (e) of this section. (g)   That part of the unearned premium reserve created by sections 690 to 694, consisting of the aggregation of the reinsurance reserve fund, title reserve fund and title reserve, held as of February 1, 1956, shall continue to be released as provided in subsection (e) of this section, Provided, That the aggregated reserve created by those sections shall continue to be presumed to have been established out of income in twenty equal annual additions over the twenty years preceding February 1, 1956, whether or not such title insurance company had been in existence for that period. § 716.  Investment and maintenance of the unearned premium reserve The amount of the unearned premium reserve shall be invested by each such title insurance company according to the investment schedule provided in section 734 of this act.12 If by reason of depreciation in the market value of investments

10. 40 P.S. § 910-17. 11. 40 P.S. §§ 900 to 904 (repealed). 12. 40 P.S. § 910-34.

472

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HAZARD AND TITLE INSURANCE

Ch. 36

Part VIII Ch. 64–67 L/T Part IX Ch. 68–72 Condos, etc. Index

gtb-parealestate22-all.indb 473

Part VII Ch. 57–63 Litigation

473

Part VI Ch. 49–56 Taxation

§ 718.  Reserve for unpaid losses and loss expense (a)   Each title insurance company shall at all times establish and maintain, in addition to other reserves, a reserve against unpaid losses, and against loss expense, and shall calculate such reserves by making a careful estimate in each case of the loss and loss expense likely to be incurred, by reason of every claim presented or that may be presented, pursuant to notice from or on behalf of the insured, of a title defect in or lien or adverse claim against the title insured, that may result in a loss or cause expense to be incurred for the proper disposition of the claim. The sums of the items so estimated shall be the total amounts of the reserves against unpaid losses and loss expenses of such title insurance company. (b)   The amounts so estimated shall from time to time be revised as circumstances warrant. (c)   The amounts set aside in such reserves in any year shall be deducted in determining the net profits for such year of any title insurance company.

Part V Ch. 41–48A Zoning, etc.

(c)  The commissioner shall also have the authority to enter into a contract with one or more title insurance companies to reinsure all the obligations under outstanding policies of such title insurance company in accordance with their terms, covenants and conditions, the cost of said reinsurance to be paid out of the assets of such title insurance company.

Part IV Ch. 36–40 Insurance

(b)   In the event that reinsurance is unavailable, the unearned premium reserve and assets constituting minimum capital, or so much as remains thereof after outstanding claims have been paid, shall constitute a trust fund to be held by the commissioner for twenty years, out of which claims of policyholders shall be paid as they arise. The balance, if any, of such fund shall, at expiration of twenty years, revert to the general assets of the title insurance company, after reasonable charges for administration of the fund have been charged against the balance by the commissioner.

Part III Ch. 23–35 Mortgages

(2)   The assets other than the unearned premium reserve shall be available to pay claims for losses sustained by holders of policies then pending or arising up to the time reinsurance is affected. In the event that claims for losses are in excess of such assets of the title insurance company, claims shall be paid out of the assets attributable to the unearned premium reserve.

Part II Ch. 15–22 Deeds

§ 717.  Use of the unearned premium reserve (a)  If a title insurance company becomes insolvent, or is in the process of liquidation or dissolution, or in the possession of the Insurance Commissioner: (1)  Such amount of the assets of such title insurance company equal to the unearned premium reserve as is necessary, shall be used, with the written approval of the commissioner, to pay for reinsurance of the outstanding liability of such title insurance company upon all in-force policies or contracts or reinsurance agreements of title insurance, as to which claims for losses by the holders are not then pending, the balance, if any, of the unearned premium reserve fund then to be transferred to the general assets of the title insurance company;

Part I Ch. 1–14 Brokers

or other cause, the amount of the assets eligible for investment of the unearned premium reserve should on any date be less than the amount required to be maintained by law in such reserve, and the deficiency shall not be promptly cured, such title insurance company shall forthwith give written notice thereof to the Insurance Commissioner and shall make no further policies or contracts or reinsurance agreements of title insurance until the amounts of such eligible investments shall have been restored and until it shall have received written approval from the Insurance Commissioner authorizing it to again issue such policies or contracts or agreements.

Table of Contents

PART IV

12/22/21 10:45 AM

§ 719

TITLE INSURANCE COMPANIES

§ 719.  Primary retained liability (a)  No title insurance company shall issue a policy of title insurance for a single transaction, the net primary retained liability under which shall exceed an amount which is equal to its assets, not including agency and escrow funds, less an amount equal to the sum of the minimum capital required by this article for a title insurance company, unearned premium reserve and the value of title plant, but nothing herein contained shall prevent any one or more of such title insurance companies from assuming the liability on a single policy jointly with another such title insurance company or title insurance companies in excess of this amount: Provided, That the total amount of such insurance shall not exceed the aggregate maximum net primary retentions of all title insurance companies liable under such insurance; and provided none of the title insurance companies exceeds the limit of its net primary retention for a single transaction. (b)  No title insurance company shall issue a policy of title insurance for a single transaction under which its primary liability as coinsurer shall exceed the limit of net primary retention prescribed in subsection (a) of this section. (c)  No title insurance company shall issue a policy of title insurance for a single transaction under which its secondary liability as reinsurer shall exceed the limit of net primary retention prescribed in subsection (a) of this section: Provided, That if the ceding company or companies retain primary liability at least equal to ten per cent of the total amount at risk, a title insurance company may issue a policy of reinsurance for a single transaction under which its secondary liability exceeds the limit of net primary retention prescribed in subsection (a): Provided, That the total amount of its secondary liability for a single transaction shall not exceed an amount which is equal to its assets, not including agency or escrow funds, less an amount equal to the sum of the unearned premium reserve and the value of title plant. Nothing herein contained shall prevent any one or more title insurance companies from assuming the liability on a single policy jointly with another title insurance company or other title insurance companies in excess of this amount: Provided, That the total amount of such insurance shall not exceed the aggregate maximum net retentions of all such title insurance companies liable under such insurance; and provided none of the title insurance companies exceeds the limit of its net retention for a single transaction. § 720.  Power to reinsure Any title insurance company authorized to insure titles to real estate in this Commonwealth, may reinsure all or any part of its liability under one or more of its policy contracts with any title insurance company authorized to insure titles to real estate in this Commonwealth or a title insurance company authorized to insure titles to real estate in any of the United States, if such reinsuring company is, or reinsuring companies are, and remains of the same standard of solvency and complies with all other requirements fixed by the laws of this Commonwealth for title insurance companies authorized to insure titles to real estate within this Commonwealth. Any domestic title insurance company or foreign title insurance company authorized to transact business in this Commonwealth shall pay to this Commonwealth taxes required on all business taxable within this Commonwealth and reinsured, as provided in this section, with any foreign company not authorized to do business within this Commonwealth. § 721.  Special reinsurance In the event that the risk of a single transaction involving a parcel of real estate situated within this Commonwealth exceeds the total net retention, both primary and secondary, permitted by this article for all title insurance companies authorized to transact business within this Commonwealth, and the total reinsurance available from companies authorized to reinsure risks by section

474

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12/22/21 10:45 AM

HAZARD AND TITLE INSURANCE

Ch. 36

Part IV Ch. 36–40 Insurance Part V Ch. 41–48A Zoning, etc. Part VI Ch. 49–56 Taxation Part VII Ch. 57–63 Litigation Part VIII Ch. 64–67 L/T Part IX Ch. 68–72 Condos, etc. Index

gtb-parealestate22-all.indb 475

Part III Ch. 23–35 Mortgages

475

Part II Ch. 15–22 Deeds

13. 40 P.S. § 910-20. 14. 40 P.S. § 421.

Part I Ch. 1–14 Brokers

720 of this act,13 reinsurance may be obtained from companies not authorized to reinsure risks within this Commonwealth with the prior approval in writing of the commissioner. § 722.  Licensure Any title insurance company organized under the laws of another State or foreign government shall be licensed to transact a title insurance business within this Commonwealth only if such company is and remains of the same standard of solvency and complies with other requirements fixed by the laws of this Commonwealth for title insurance companies organized and authorized to transact the business of title insurance pursuant to the laws of this Commonwealth. No such company shall be licensed to transact any business within the Commonwealth until it complies with the requisites for doing business as provided in section 301.14 § 723.  Repealed. 1995, Dec. 21, P.L. 714, No. 79, § 4, effective in 60 days. § 724.  Agents; defined (a)  A title insurance agent means an authorized person, firm, association, corporation, partnership or other legal entity, other than a bona fide employe of the title insurer, who on behalf of the title insurer performs the following acts, in conjunction with the issuance of a title insurance report or policy: (1)  determines insurability and issues title insurance reports or policies, or both, based upon the performance or review of a search, or an abstract of title; and (2)   performs one or more of the following functions: (i)  collects or disburses premiums, escrow or security deposits or other funds; (ii)   handles escrow, settlements or closings; (iii)   solicits or negotiates title insurance business; or (iv)   records closing documents. The word “agent” shall not include approved attorneys, nor shall it include officers and salaried employes of any title insurance company authorized to do a title insurance business within this Commonwealth. (b)  Deleted. § 724.1.  Additional requirements A title insurance agent must hold a valid certificate of qualification issued by the Insurance Department and must perform the acts listed in section 724(a) under a written contract with a licensed title insurance company. § 724.2.  Financial responsibility Agents shall assume financial responsibility for all of the acts which the agent was appointed to perform by the title insurance company. § 725.  Agents; names to be certified to commissioner Every title insurance company authorized to transact business within this Commonwealth shall, from time to time, certify to the commissioner the names of all agents appointed by it in this Commonwealth. § 726.  Agents; to be certified and appointed (a)  Agents shall make application for a certificate of qualification with the Insurance Department for authority to act as a title insurance agent in the man-

Table of Contents

PART IV

12/22/21 10:45 AM

§ 726.1

TITLE INSURANCE COMPANIES

ner provided for in section 603 of the act of May 17, 1921 (P.L. 789, No. 285), known as “The Insurance Department Act of 1921.” Upon certification, an agent may be appointed by a title insurer with notice of such appointment to the Insurance Department in the manner provided for in section 605 of “The Insurance Department Act of 1921.”15 (b)   Certificates of qualification for agents shall expire biennially based on the date of original issue. Certificates of qualification shall be renewed in accordance with procedures and schedules set forth under section 601 of “The Insurance Department Act of 1921,”16 and any regulations promulgated thereunder. (c)   In addition to the requirements set forth in subsection (a), all agents for a title insurance company shall: (1)  pass an examination required by the Insurance Department demonstrating reasonable familiarity with applicable insurance laws and the business of title insurance in general; and (2)  satisfy the continuing education requirements for agents and brokers under 31 Pa. Code Ch. 39 (relating to continuing education for insurance agents and brokers), with the following exceptions: (i)   Title insurance agents will not be subject to the forty-eight credit-hour requirement under 31 Pa. Code § 39.8(b)(2) (relating to credit hours), but in lieu of forty-eight credit hours, will be required to complete twenty-four credit hours for each licensing period. (ii)   Title insurance agents who are attorneys and by virtue of satisfying their continuing legal education (CLE) requirement need only to complete at least three credit hours of courses of title insurance content approved by the Insurance Department. § 726.1.  Other requirements Agents for a title insurance company shall be required to: (1)   Obtain errors and omissions insurance in an amount acceptable to the insurer appointing the agent, but in no event in an amount less that two hundred fifty thousand dollars ($250,000) per claim and an aggregate limit of five hundred thousand dollars ($500,000) with a deductible no greater than twentyfive thousand dollars ($25,000). A title insurer shall not provide the insurance directly or indirectly on behalf of a title insurance agent. In the event errors and omissions insurance is unavailable generally, the Insurance Department shall promulgate rules for alternative methods to comply with this paragraph. (2)  Obtain a blanket fidelity bond covering all agency employes in an amount acceptable to the title insurance company appointing the agent, but in no event in an amount less than one hundred fifty thousand dollars ($150,000) and with a deductible not larger than fifteen percent of the bond penalty. The bond shall be executed by an insurance company authorized to do business in this Commonwealth. When the agency has no employes except the owners, partners or stockholders, the agency, with sufficient documentation, may apply to the Insurance Department for a waiver of this fidelity bond requirement. The required bond premium shall be paid by the title insurance agent, and a title insurer shall not provide the bond directly or indirectly on behalf of a title insurance agent. Except for the inception of this requirement, the bond term must conform to the term of the agent’s certification, and documentation of coverage must be furnished to the Insurance Department at the time of certification renewal. In the event of cancellation by the insurance company, 15. 40 P.S. § 235. 16. 40 P.S. § 231.

476

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HAZARD AND TITLE INSURANCE

Ch. 36

Part II Ch. 15–22 Deeds Part III Ch. 23–35 Mortgages Part IV Ch. 36–40 Insurance Part V Ch. 41–48A Zoning, etc. Part VI Ch. 49–56 Taxation

§ 727.  Agents; books, records, etc. Every agent of a title insurance company shall keep his, her or its books, records, accounts and vouchers pertaining to the business of title insurance, in such manner that the commissioner or his authorized representatives may readily ascertain from time to time, whether or not the agent has complied with all of the applicable provisions of this act. Failure to comply with this section shall be a ground for revocation of the agent’s license.

Part I Ch. 1–14 Brokers

the insurer must give the Commonwealth thirty (30) days’ written notice before the cancellation will be deemed effective. (3)   Post a surety bond in the form prescribed by the Insurance Department of not less than one hundred thousand dollars ($100,000). The bond shall be executed by an insurance company authorized to do business in this Commonwealth. For purposes of this section, an agency is defined as an individual person, partnership, corporation or other legal entity that conducts the business of title insurance on behalf of a title insurer. The bond shall secure performance by the agent of his fiduciary duties and responsibilities. The bond will remain in full force and effect until cancelled. In the event of cancellations by the surety, thirty (30) days’ notice must be given to the Insurance Department before the cancellation will be deemed effective. The premium required for the bond shall be paid by the title insurance agent, and a title insurance company shall not provide the bond directly or indirectly on behalf of a title insurance agent. The aggregate liability of the surety for any and all breaches of the conditions of the bond shall in no event exceed the penal sum of the bond. Title insurers are exempt from the requirement of obtaining a surety bond. (4)   Render accounts to the title insurer detailing all transactions and remit all funds and policies due under the contract to the title insurer on a specified basis. (5)   Collect and hold in a fiduciary capacity for the account of a title insurer all funds due the title insurer in a bank or other financial institution insured by an agency of the Federal Government. Each account shall be used for all payments on behalf of the title insurer with whom a title agency contract exists. (6)   Keep separate records of business written for each title insurer. The title insurer shall have access and a right to copy all files, accounts and records related to its business in a form acceptable to the title insurer, and the Insurance Commissioner shall have access to all files, books, bank accounts and records of the title insurance agent in a form usable to the Insurance Commissioner.

Table of Contents

PART IV

§ 728.  Agents; replies to inquiries by Commissioner Every agent of a title insurance company shall reply, in writing, promptly to any inquiry of the commissioner relative to the agent’s conduct of the business of title insurance, and failure to reply shall be a ground for revocation of the agent’s license.

Part VII Ch. 57–63 Litigation

§ 729.  Agents; certain names prohibited After the effective date of this amendment no agent for a title insurance company shall adopt a firm name containing the words “title,” “title company,” “title insurance company,” “guaranty,” “guarantee,” “guaranty company,” or “guarantee company” or similar combination thereof.

Part VIII Ch. 64–67 L/T

§ 731.  Commissions; other considerations prohibited (a)   No title insurance company or agent or approved attorney of a title insurance company shall pay, give or award to an applicant for title insurance any compensation, consideration, benefit or remuneration, directly or indirectly.

gtb-parealestate22-all.indb 477

Index

477

Part IX Ch. 68–72 Condos, etc.

§ 730.  Repealed. 1995, Dec. 21, P.L. 714, No. 79, § 9, effective in 60 days

12/22/21 10:45 AM

§ 732

TITLE INSURANCE COMPANIES

(b)  The following activities, whether performed directly or indirectly, are deemed per se inducements for the placement or referral of title insurance business by any person and are unlawful: (1)   Paying or offering to pay, furnishing or offering to furnish, or providing or offering to provide assistance with the business expenses of any person, including, but not limited to, rent, employe salaries, furniture, copiers, facsimile machines, automobiles, telephone services or equipment or computers. (2)   Providing or offering to provide any form of consideration intended for the benefit of any person, including cash, below market rate loans, automobile charges, merchandise or merchandise credits. (3)  Placing or offering to place compensating balances on behalf of any person. (4)   Advancing or paying or offering to advance or pay money on behalf of any person into escrow to facilitate a closing, except a sum which represents the proceeds of a loan made in the ordinary course of business. (5)   Disbursing or offering to disburse on behalf of any person escrow funds held by a title insurance company or title insurance agent before the conditions of the escrow applicable to the disbursement have been met. (6)   Furnishing or offering to furnish all or any part of the time or productive effort of any employe of the title insurance company or title insurance agent to any person for any service unrelated to the title business. (c)   Reasonable expenditures for food, beverages, entertainment, educational programs and promotional items constituting ordinary business expenses are deemed not to constitute an inducement for the placement or referral of title business if the expenditures are correctly reported and properly substantiated as an ordinary and necessary business expense under provisions of the Internal Revenue Code of 1986 (Public Law 99-514, 26 U.S.C. § 1 et seq.) and regulations issued thereunder and the expenditures do not violate any other law. (d)   The provision or payment of any form of consideration as an inducement for the placement or referral of title business not specifically set forth in this section shall not be presumed lawful merely because it is not specifically prohibited. (e)   The Insurance Commissioner may determine compliance and enforce the provisions of this section by written order, regulation or written consent. § 732.  Capital The capital of a title insurance company shall be invested in the following classes of investment: (1)   Government Obligations. Bonds, notes or obligations issued, assumed or guaranteed by the United States or the Dominion of Canada, or by any state, district or territory of the United States. (2)   Governmental Subdivision or Public Instrumentality Obligations. Valid and legally authorized bonds, notes or obligations issued, assumed or guaranteed by: (i)  any city, town, county, borough, township, municipality, school district, poor district, water, sewer, drainage, road or other governmental district or division located in the United States or any state, district or territory thereof; or by (ii)   any public instrumentality other than a municipal authority of one or more of the foregoing, if, by statutory or other legal requirements applicable thereto, such bonds or other evidences of indebtedness of such instrumentality are payable, as to principal and interest, from taxes levied or by law required to be levied, upon all taxable property or all taxable income within the jurisdiction of the governmental unit or units of which it is an instru-

478

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12/22/21 10:45 AM

HAZARD AND TITLE INSURANCE

Ch. 36

Part III Ch. 23–35 Mortgages Part IV Ch. 36–40 Insurance Part V Ch. 41–48A Zoning, etc. Part VI Ch. 49–56 Taxation Part VII Ch. 57–63 Litigation Part VIII Ch. 64–67 L/T Part IX Ch. 68–72 Condos, etc. Index

gtb-parealestate22-all.indb 479

Part II Ch. 15–22 Deeds

479

Part I Ch. 1–14 Brokers

mentality, or from revenues pledged or otherwise appropriated or by law required to be provided for the purpose of such payment; (iii)  any municipal authority issued pursuant to the laws of the Commonwealth relating to the creation or operation of municipal authorities, if the obligations are not in default as to principal or interest and if the project for which the obligations were issued is under lease to a school district or school districts or if the obligations are not in default as to principal or interest and if the project for which the obligations were issued is under lease to a municipality or municipalities or subject to a service contract with a municipality or municipalities, pursuant to which the municipal authority will receive lease rentals or service charges available for fixed charges on the obligations, which will average not less than one and one-fifth times the average annual fixed charges of such obligations over the life thereof, or if the obligations are not in default as to principal or interest and if for the period of five fiscal years next preceding the date of acquisition, the income of such authority available for fixed charges has averaged not less than one and one-fifth times its average annual fixed charges of such obligations over the life of such obligations. As used in this subclause the term “income available for fixed charges” shall mean income after deducting operating and maintenance expenses, and, unless the obligations are payable in serial, annual maturities, or are supported by annual sinking fund payments, depreciation, but excluding extraordinary nonrecurring items of income or expenses; and the term “fixed charges” shall include principal, both maturity and sinking fund, and interest on bonded debt. In computing such income available for fixed charges for the purposes of this section, the income so available of any corporation acquired by any municipal authority may be included, such income to be calculated as though such corporation had been operated by a municipal authority and an equivalent amount of bonded debt were outstanding. The eligibility for investment purposes of obligations of each project of a municipal authority shall be separately considered hereunder. (3)   Public Utility Obligations. Bonds, notes or obligations issued, assumed or guaranteed by any solvent public utility corporation or public utility business trust, incorporated or existing under the laws of the United States or of any state, district or territory thereof. (4)   Other Corporate Obligations. Bonds, notes or obligations issued, assumed or guaranteed by any other corporation, including railroads, or business trust, incorporated or existing under the laws of the United States or of any state, district or territory thereof, whose income available for fixed charges for the period of five fiscal years next preceding the date of investment shall have averaged not less than one and one-half times its average annual fixed charges applicable to such period. As used in this clause, the term “income available for fixed charges” shall mean income, after deducting operating and maintenance expenses, depreciation and depletion, and taxes other than Federal or State income taxes, but excluding extraordinary nonrecurring items of income or expense appearing in the regular financial statements of the corporation or business trust, and the term “fixed charges” shall include interest on funded and unfunded debt and amortization of debt discount and expense. If income is determined in reliance upon consolidated income statements of parent and subsidiary corporations or business trusts, such income shall be determined after provision for Federal and State income taxes of subsidiaries, and after proper allowance for minority stock interest, if any, and the required coverage of fixed charges, shall be computed on a basis including fixed charges and preferred dividends of subsidiaries, other than those payable by subsidiaries to the parent corporation or business trust, or to any other such subsidiaries.

Table of Contents

PART IV

12/22/21 10:45 AM

§ 732

TITLE INSURANCE COMPANIES

In applying an income test under this clause to any issuing, assuming or guaranteeing corporation or business trust, whether or not in legal existence during the whole of the five-year period next preceding the date of investment, which has at any time or times after the beginning of such period acquired the assets or the outstanding shares of capital stock of any other corporation or business trust by purchase, merger, consolidation or otherwise, substantially as an entirety, or has been reorganized pursuant to the bankruptcy law, the income of such other predecessor or constituent corporation or business trust or of the corporation or business trust so reorganized, available for interest and dividends for such portion of such period as shall have preceded acquisition or reorganization may be included in the income of such issuing, assuming or guaranteeing corporation or business trust for such portion of such period as may be determined in accordance with adjusted or pro forma consolidated income statements covering such portion of such period, and giving effect to all stock or shares outstanding and all fixed charges existing immediately after acquisition or reorganization. (5)   Trustees’, Receivers’ or Equipment Trust Obligations. (i)   Certificates, notes or obligations issued by trustees or receivers of any corporation or business trust created or existing under the laws of the United States or of any state district or territory thereof which or the assets of which, are being administered under the direction of any court having jurisdiction, if such obligation is adequately secured as to principal and interest. (ii)   Equipment trust obligations or certificates, which are adequately secured, or other adequately secured instruments, evidencing an interest in transportation equipment, wholly or in part within the United States, and a right to receive determined portions of rental, purchase or other fixed obligatory payments for the use or purchase of such transportation equipment. (6)   Acceptances and Bills of Exchange. Bank and bankers’ acceptances, and other bills of exchange of the kind and maturities made eligible pursuant to law for purchase in the open market by Federal Reserve Banks. (7)   Real Estate Loans. Ground rents and bonds, notes or other evidences of indebtedness, secured by mortgages or trust deeds upon unencumbered real property located in any state, district or territory of the United States, and in investments in the equity of the seller under contracts for deeds covering the entire balance due on bona fide sales of such real property: Provided, That a loan guaranteed or insured in full by the Administrator of Veterans’ Affairs pursuant to the provisions of the Federal Servicemen’s Readjustment Act of 1944, as heretofore or hereafter amended,17 may be subject to a prior encumbrance. Real property shall not be considered to be encumbered within the meaning of this clause by reason of the existence of instruments reserving mineral, oil, water or timber rights, rights of way, sewer rights, rights in walls or driveways, by reason of liens inferior to the lien securing the loan of the title18 insurance company, or liens for taxes or assessments not yet delinquent, or by reason of building restrictions or other restrictive covenants or by reason of any lease under which rents or profits are reserved to the owner, if, in any event, the security for such loan is a first lien upon such real property, and if there is no condition or right of re-entry or forfeiture under which such lien can be cut off, subordinated or otherwise disturbed. No mortgage or trust deed, loan or investment in a seller’s equity under a contract for deed made or acquired by the title19 insurance company on any one property shall at the date of investment exceed two-thirds of the value of the real property securing

17. Repealed. 18. Enrolled bill omitted word “title”. 19. Enrolled bill omitted word “title”.

480

gtb-parealestate22-all.indb 480

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HAZARD AND TITLE INSURANCE

Ch. 36

Part IV Ch. 36–40 Insurance Part V Ch. 41–48A Zoning, etc. Part VI Ch. 49–56 Taxation Part VII Ch. 57–63 Litigation Part VIII Ch. 64–67 L/T Part IX Ch. 68–72 Condos, etc. Index

gtb-parealestate22-all.indb 481

Part III Ch. 23–35 Mortgages

481

Part II Ch. 15–22 Deeds

20. 12 U.S.C. §1701 et seq. 21. 12 U.S.C. § 641 et seq. (repealed). 22. Repealed.

Part I Ch. 1–14 Brokers

the loan, or subject to such contract: Provided, That such limitation in respect to value shall not apply to a loan which is: (i)  insured by, or for which a commitment to insure has been made by, the Federal Housing Administrator or Commissioner, pursuant to the provisions of the Federal National Housing Act, as heretofore or hereafter amended;20 (ii)  guaranteed by the Administrator of Veterans’ Affairs pursuant to the provisions of the Federal Servicemen’s Readjustment Act of 1944, as heretofore or hereafter amended, except, that if only a portion of a loan is so guaranteed, such limitation shall apply to the portion not so guaranteed; (iii)   insured by the administrator pursuant to the provisions of the Federal Servicemen’s Readjustment Act of 1944, as heretofore or hereafter amended; (iv)   upon real estate under lease to a corporation or business trust, incorporated or existing under the laws of the United States or any state, district or territory thereof, whose income available for fixed charges for the period of five fiscal years next preceding the date of investment, shall have averaged not less than one and one-half times its average annual fixed charges applicable to such period, if there is pledged and assigned, as additional security for the loan, and for application thereon, sufficient of the rentals payable under the lease to provide for repayment of the loan within the unexpired term of the lease; (v)   upon such terms that the principal thereof will be amortized by repayments of principal at least once in each year in amounts sufficient to repay the loan within a period of not more than thirty years, and such loan is upon improved real estate, and at the date of investment does not exceed three-fourths of the value of the real estate securing the loan. (8)   Purchase Money Securities. Purchase money mortgages or like securities received by it upon the sale or exchange of real property, acquired pursuant to clause (20) of this section. (9)  Federal Housing Administrators Debentures. Debentures issued by the Federal Housing Administrator or Commissioner in settlement of claims pursuant to the Federal National Housing Act, as heretofore or hereafter amended. (10)   National Mortgage Association Securities. Securities of national mortgage associations or similar national mortgage credit institutions organized under the Federal National Housing Act, as heretofore or hereafter amended. (11)   Federal Land Bank, Federal Intermediate Credit Bank and Bank for Cooperatives Securities. Bonds, debentures and other obligations of Federal Land Banks or Federal Intermediate Credit Banks issued pursuant to the Federal Farm Loan Act, as heretofore or hereafter amended,21 or of Banks for Cooperatives issued pursuant to the Farm Credit Act of 1933, as heretofore or hereafter amended.22 (12)  Loans upon Leaseholds. Loans upon leasehold estates or unencumbered real estate located in any state, district or territory of the United States: Provided, That no such loan shall exceed two-thirds of the value of the leasehold at the date of investment, unless: (i)  such loan is guaranteed or insured by, or for which a commitment to guarantee or insure such loan has been made by, the Federal Housing

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§ 732

TITLE INSURANCE COMPANIES

Administrator or Commissioner, pursuant to the provisions of the Federal National Housing Act, as heretofore or hereafter amended; (ii)   such leasehold is of improved real estate and such loan provides for amortization by repayments of principal at least once in each year in amounts sufficient to repay the loan within a period of four-fifths of the unexpired term of the leasehold, but within a period of not more than thirty years, and does not exceed three-fourths of the value of the leasehold at the date of investment; (iii)  such real estate is under lease to a corporation or business trust, incorporated or existing under the laws of the United States or any state, district or territory thereof, whose income available for fixed charges for the period of five fiscal years next preceding the date of investment shall have averaged not less than one and one-half times its average annual fixed charges applicable to such period, if there is pledged and assigned as additional security for the loan and for application thereon sufficient of the rentals payable under such lease to provide for repayment of the loan within the unexpired term of the lease. Provided further, That the terms of any such loan shall require repayments of principal at least once in each year in amounts sufficient to repay the loan within the term of the leasehold, unexpired at the date of investment, unless a shorter period is required under subclause (ii). (13)   Savings and Loan Shares. Shares of any Federal savings and loan association, or of any building and loan or savings and loan association, to the extent that the withdrawal or repurchasable value of such shares is insured by the Federal Savings and Loan Insurance Corporation under the Federal National Housing Act, as heretofore or hereafter amended. (14)   Federal Savings and Loan Insurance Corporation Obligations. Bonds, notes or obligations issued, assumed or guaranteed by the Federal Savings and Loan Insurance Corporation, under the provisions of the Federal National Housing Act, as heretofore or hereafter amended. (15)   Federal Home Loan Bank Obligations. Bonds, notes or obligations issued, assumed or guaranteed by the Federal Home Loan Bank, or issued, assumed or guaranteed by the Federal Home Loan Bank Board under the provisions of the Federal Home Loan Bank Act, as heretofore or hereafter amended.23 (16)   International Bank Obligations. Bonds,24 notes or obligations issued, assumed or guaranteed by the International Bank for Reconstruction and Development. (17)   Business Development Credit Corporation Shares. Shares of State and regional business development credit corporations formed under the laws of this Commonwealth. (18)   Pennsylvania Housing Agency Bonds and Notes. Bonds and notes of the Pennsylvania Housing Agency created by the “Housing Agency Law”.25 (19)   Inter-American Development Bank Obligations. Bonds26 notes or27 obligations issued, assumed or guaranteed by the Inter-American Development Bank.

23. 24. 25. 26. 27.

12 U.S.C. § 1421 et seq. Enrolled bill reads “In Bonds”. 35 P.S. § 1680.101. Enrolled bill reads “In Bonds”. Enrolled bill reads “and”.

482

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Part I Ch. 1–14 Brokers Part II Ch. 15–22 Deeds Part III Ch. 23–35 Mortgages Part IV Ch. 36–40 Insurance Part V Ch. 41–48A Zoning, etc. Part VI Ch. 49–56 Taxation Part VII Ch. 57–63 Litigation Part VIII Ch. 64–67 L/T Part IX Ch. 68–72 Condos, etc.

(20)   Real Estate; Right to Acquire. It shall be lawful for any title insurance company organized under the laws of this Commonwealth to purchase, receive, hold and convey real estate or any interest therein: (i)  required for its convenient accommodation in the transaction of its business with reasonable regard to future needs; (ii)   acquired in connection with a claim under a policy of title insurance; (iii)   acquired in satisfaction or on account of loans, mortgages, liens, judgments or decrees, previously owing to it in the course of its business; (iv)  acquired in part payment of the consideration of the sale of real property owned by it if the transaction shall result in a net reduction in the company’s investment in real estate; (v)   reasonably necessary for the purpose of maintaining or enhancing the sale value of real property previously acquired or held by it under subclauses (i), (ii), (iii) or (iv) of this clause: Provided, however, That no title insurance company shall continue to hold any real estate acquired by it under subclauses (ii), (iii) or (iv) for more than five years from the date of acquisition thereof, unless it shall obtain the written approval of the commissioner to hold such real estate for a longer period of time. (21)  Title Plant. Provided it shall at all times keep at least two hundred fifty thousand dollars ($250,000), invested in the classes of securities authorized for the investment of capital other than title plant and real estate, a title insurance company may invest in a title plant. The title plant shall be considered an admitted asset at the fair value thereof. In determining the fair value of a title plant, no value shall be attributed to furniture and fixtures, and the real estate in which the title plant is housed shall be carried as real estate. The value of title abstracts, title briefs, copies of conveyances or other documents, indices and other records comprising the title plant, shall be determined by considering the expenses incurred in obtaining them, the age thereof, the cost of replacements less depreciation, and all other relevant factors. Once the value of a title plant shall have been determined hereunder, such value may be increased only by the acquisition of another title plant by purchase, consolidation or merger; in no event shall the value of the title plant be increased by additions made thereto as part of the normal course of abstracting and insuring titles to real estate. Subject to the above limitations and with the approval of the commissioner, a title insurance company may enter into agreements with one or more other ­title insurance companies authorized to do business in this Commonwealth, whereby such companies shall participate in the ownership, management and control of a title plant to service the needs of all such companies or such companies may hold stock of a corporation owning and operating a title plant for such purposes: Provided, That each of the companies participating in the ownership, management and control of such jointly owned title plant shall keep the sum of two hundred fifty thousand dollars ($250,000) invested as above set forth. § 733.  Surplus Money over and above capital, other than the unearned premium reserve, may be invested in the following classes of investments: (1)   Any of the classes of investment authorized in section 732 of this article.28 (2)   Corporate Stock or Shares. Stock or shares of any solvent corporation, incorporated under the laws of the United States or any state, district or territory thereof, the Commonwealth of Puerto Rico, or of the Dominion of Canada or any province thereof, including the stock of another title insurance company.

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28. 40 P.S. § 910-32.

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Index

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§ 734

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(3)   Corporate Obligations. Bonds, notes or obligations issued, assumed or guaranteed by any solvent corporation or business trust, incorporated or existing under the laws of the United States or any state, district or territory thereof, the Commonwealth of Puerto Rico, or of the Dominion of Canada or any province thereof. (4)   Canadian Governmental Subdivision Obligations. Valid and legally authorized bonds, notes or obligations issued, assumed or guaranteed by any province, county, city, town, village, municipality or political subdivision of the Dominion of Canada. (5)  Other Loans or Investments. Loans or investments not qualifying or permitted under the preceding subsections of this section, to an amount not exceeding five per cent of such company’s admitted assets. § 734.  Unearned premium reserve The unearned premium reserve of a title insurance company shall be invested in the same classes of investments, other than title plant and real estate, authorized for the investment of capital, except that one-fourth of such reserve may be invested in preferred or guaranteed stocks or shares of any solvent corporation or business trust, incorporated or existing under the laws of the United States or of any state, district or territory thereof, whose net earnings available for its fixed charges, during either of the two years preceding the date of such investment have been, and during each of the five years preceding such date, have averaged not less than one and one-half times the sum of its average annual fixed charges, as referred to in clause (4) of section 732,29 if any, and its average annual preferred dividend requirements. For the purposes of this section, such computation shall refer to the fiscal year immediately preceding the date of acquisition of an investment by the insurer, and the term “preferred dividend requirement”, shall include cumulative or noncumulative dividends, whether paid, earned or not. § 735.  Other reserves Reserves other than the unearned premium reserve may be invested in any of the classes of investments authorized in clauses (1), (2), (3), (4) and (5) of section 733 of this article.30 § 736.  Investments acquired before effective date Any investment of a title insurance company lawfully acquired before the effective date of this amendment and which but for this section would be considered ineligible as an investment on such effective date, shall be disposed of within three years from such effective date. The commissioner, upon application and proof that forced sale of any such investment would be contrary to the best interests of the title insurance company and its policyholders, may extend the period for sale or disposal of such investment for a further reasonable time, in no event to exceed three years. § 737.  Rate filing (a)  Every title insurance company shall file with the commissioner every manual of classifications, rules, plans, and schedules of fees and every modification of any of the foregoing relating to the rates which it proposes to use. Every such filing shall state the proposed effective date thereof, and shall indicate the character and extent of the coverage contemplated. (b)  A title insurance company may satisfy its obligations to make such filings by becoming a member of, or a subscriber to, a licensed rating organization

29. 40 P.S. § 910-32. 30. 40 P.S. § 910-33.

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Ch. 36

(c)   The commissioner shall make such review of the filings as may be necessary to carry out the provisions of this article.

Part VIII Ch. 64–67 L/T Part IX Ch. 68–72 Condos, etc. Index

gtb-parealestate22-all.indb 485

Part VII Ch. 57–63 Litigation

485

Part VI Ch. 49–56 Taxation

(h)   Beginning ninety days after the effective date of this amendment, no title insurance company or agent of a title insurance company shall charge any fee for any policy or contract of title insurance except in accordance with filings or rates which are in effect for said title insurance company or such agent of a title insurance company as provided in this article, or in accordance with subsections (f) and (g) of this section. § 738.  Justification for rates A rate filing shall be accompanied by a statement of the title insurance company or rating organization making the filing, setting forth the basis upon which the rate was fixed and the fees are to be computed. Any filing may be justified by: (1)  The experience or judgment of the title insurance company or rating organization making the filing; or (2)  The experience of other title insurance companies or rating organizations; or (3)   Any other factors which the title insurance company or rating organization deems relevant. The statement and justification shall be open to public inspection after the rate to which it applies becomes effective. § 739.  Making of rates (a)   In making rates, due consideration shall be given to past and prospective loss experience, to exposure to loss, to underwriting practice and judgment, to the extent appropriate, to past and prospective expenses, including commissions

Part V Ch. 41–48A Zoning, etc.

(g)   Upon the written consent of the insured stating his reasons therefor, filed with the commissioner, a rate in excess of that provided by a filing which might otherwise be deemed applicable may be used on any specific risk. The rate shall become effective when such consent is filed.

Part IV Ch. 36–40 Insurance

(f)   When the commissioner finds that any rate for a particular kind or class of risk cannot practicably be filed before it is used, or any contract or kind of title insurance, by reason of rarity or peculiar circumstances, does not lend itself to advance determination and filing of rates, he may, under such rules and regulations as he may prescribe, permit such rates to be used without a previous filing and waiting period.

Part III Ch. 23–35 Mortgages

(e)   Except in the case of rates filed under subsections (f) and (g) of this section, a filing which has become effective shall be deemed to meet the requirements of this article.

Part II Ch. 15–22 Deeds

(d)  Subject to the provisions of subsections (f) and (g) of this section, each filing shall be on file for a period of thirty days before it becomes effective. The commissioner may, upon written notice given within such period to the person making the filing, extend such waiting period for an additional period, not to exceed thirty days to enable him to complete the review of the filing. Further extensions of such waiting period may also be made with the consent of the title insurance company or rating organization making the filing. Upon written application by the title insurance company or rating organization making the filing, the commissioner may authorize a filing or any part thereof which he has reviewed, to become effective before the expiration of the waiting period or any extension thereof.

Part I Ch. 1–14 Brokers

which makes such filings, and by authorizing the commissioner to accept such filings on its behalf.

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§ 739.1

TITLE INSURANCE COMPANIES

paid to agents, the expenses incurred by title insurance companies, to a reasonable margin for profit and contingencies, and to all other relevant factors both within and outside of this Commonwealth. (b)   Rates shall not be inadequate or unfairly discriminatory, nor shall rates be excessive; that is, such as to permit title insurance companies to earn a greater profit, after payment of all taxes upon all income, than is necessary to enable them to earn over the years sufficient amounts to pay their actual expenses and losses arising in the conduct of their title insurance business, including commissions paid and the actual costs of maintaining a title plant, plus a reasonable profit. (c)   In ascertaining the estimated future earnings of title insurance companies, the commissioner shall utilize a properly weighted cross section of title insurance companies operating in this Commonwealth representative of the average of normally efficiently operated title insurance companies including on a weighted basis, both title insurance companies having their own title plants, and those not operating upon the title plant system. In ascertaining what is a reasonable profit after payment of all taxes on such income, the commissioner shall give due consideration to the following matters: (1)   The average rates of profit after payment of taxes on all income earned by other industry generally; (2)   The desirability for stability of rate structure; (3)  The necessity of insuring through growth in assets in times of high business activity, the financial solvency of title insurance companies in times of economic depression; and (4)   The necessity for earning sufficient dividends on the stock of title insurance companies to induce capital to be invested in title insurance companies. (d)  The systems of expense provisions and the amount of expense charged against each class of contract or policy may vary between title insurance companies. Rates may, in the discretion of any title insurance company, be less than the cost of performing the work in the case of smaller insurances, and the excess may be charged against the larger insurances without rendering the rates unfairly discriminatory. § 739.1.  Conditions A title insurer or title agent may engage in the escrow, settlement or closing business or any combination of such businesses and operate as an escrow, settlement or closing agent, in connection with the issuance of a title insurance policy, provided that: (1)  Funds deposited in connection with any escrow, settlement, closing or title indemnification shall be deposited in a separate fiduciary trust account or accounts in a bank or other financial institution insured by an agency of the Federal Government. Such funds shall be the property of the person or persons entitled thereto in accordance with the provision of the escrow, settlement, closing or title indemnification and shall be segregated by escrow, settlement, closing or title indemnification in the records of the title insurer or title agent. Such funds shall not be subject to any debts of the title insurer or title agent and shall be used only in accordance with the terms of the individual escrow, settlement, closing or title indemnification under which the funds were accepted. (2)  The title insurer or title agent shall maintain separate records of all receipts and disbursements of escrow, settlement, closing or title indemnification funds. (3)   The title insurer or title agent shall comply with any rules or regulations promulgated by the Insurance Commissioner pertaining to escrow, settlement, closing or title indemnification transactions.

486

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Part VIII Ch. 64–67 L/T Part IX Ch. 68–72 Condos, etc. Index

gtb-parealestate22-all.indb 487

Part VII Ch. 57–63 Litigation

487

Part VI Ch. 49–56 Taxation

31. 40 P.S. § 910-37. 32. 40 P.S. § 910-42.

Part V Ch. 41–48A Zoning, etc.

(1)   A copy of its constitution, its articles of agreement or association or its certificate of incorporation, and of its by-laws, rules and regulations governing the conduct of its business;

Part IV Ch. 36–40 Insurance

(a)  A corporation, an unincorporated association, a partnership or an individual, whether located within or outside this Commonwealth, may make application to the commissioner for license as a rating organization for title insurance companies, and shall file therewith:

Part III Ch. 23–35 Mortgages

§ 741.  Rating organizations

Part II Ch. 15–22 Deeds

(c)   No filing nor any modification thereof shall be disapproved if the rates in connection therewith meet the requirements of this article.

Part I Ch. 1–14 Brokers

§ 739.2.  Division of fees Nothing in this act shall be construed as prohibiting the division of fees between or among a title insurer and its title agent, two or more title insurers and their title agent, two or more title insurers, one or more title insurers and one or more title agents, or two or more title agents, provided such division of fees does not constitute an unlawful rebate or inducement under the provisions of this act. § 740.  Disapproval of filings (a)  Upon the review at any time by the commissioner of a filing, he shall, before issuing an order of disapproval, hold a hearing upon not less than ten days written notice, specifying in reasonable detail the matters to be considered at such hearing, to every title insurance company and rating organization which made such filing, and if, after such hearing, he finds that such filing or a part thereof does not meet the requirements of this article, he shall issue an order specifying in what respects he finds that it so fails, and stating when, within a reasonable period thereafter, such filing or a part thereof shall be deemed no longer effective if the filing or a part thereof has become effective under the provisions of section 737:31 Provided, however, That a title insurance company or rating organization shall have the right at any time to withdraw a filing or a part thereof, subject to the provisions of section 74232 in the case of a deviation filing. Copies of said order shall be sent to every such title insurance company and rating organization. Said order shall not affect any contract or policy made or issued prior to the expiration of the period set forth in said order. (b)   Any person or organization aggrieved with respect to any filing which is in effect, may make written application to the commissioner for a hearing hereon: Provided, however, That the title insurance company or rating organization that made the filing shall not be authorized to proceed under this subsection. Such application shall specify in reasonable detail the grounds to be relied upon by the applicant. If the commissioner shall find that the application is made in good faith, that the applicant would be so aggrieved if his grounds are established, and that such grounds otherwise justify holding such a hearing, he shall, within thirty days after receipt of such application, hold a hearing upon not less than ten days written notice to the applicant and to every title insurance company and rating organization which made such a filing. If, after such hearing, the commissioner finds that the filing or a part thereof does not meet the requirements of this article, he shall issue an order specifying in what respects he finds that such filing or a part thereof fails to meet the requirements, stating when within a reasonable period thereafter, such filing or a part thereof shall be deemed no longer effective. Copies of said order shall be sent to the applicant and to every such title insurance company and rating organization. Said order shall not affect any contract or policy made or issued prior to the expiration of the period set forth in said order.

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§ 742

TITLE INSURANCE COMPANIES

(2)   A list of its members and subscribers; (3)   The name and address of a resident of this Commonwealth upon whom notices or orders of the commissioner or process affecting such rating organization may be served; and (4)  A statement of its qualifications as a rating organization. If the commissioner finds that the applicant is competent, trustworthy and otherwise qualified to act as a33 rating organization, and that its constitution, articles of agreement or association or certificate of incorporation, and its by-laws, rules and regulations governing the conduct of its business conforms to the requirements of law, he shall issue a license authorizing the applicant to act as a rating organization for title insurance. Every such application shall be granted or denied in whole or in part by the commissioner within sixty days of the date of its filing with him. Licenses issued pursuant to this section shall remain in effect for three years unless sooner suspended or revoked by the commissioner or withdrawn by the licensee. The fee for said license shall be twenty-five dollars ($25). Licenses issued pursuant to this section may be suspended or revoked by the commissioner, after hearing upon notice, in the event the rating organization ceases to meet the requirements of this subsection. Every rating organization shall notify the commissioner promptly of every change in: any rule or regulation in its application to subscribers, or the refusal of any rating organization to admit a title insurance company as a subscriber, shall, at the request of any subscriber or any such title insurance company, be reviewed by the commissioner at a hearing held upon at least ten days written notice to such rating organization and to such subscriber or title insurance company. If the commissioner finds that such rule or regulation is unreasonable in its application to subscribers, he shall order that such rule or regulation shall not be applicable to subscribers. If the rating organization fails to grant or reject an application of a title insurance company for subscribership within thirty days after it was made, the title insurance company may request a review by the commissioner as if the application had been rejected. If the commissioner finds that the title insurance company has been refused admittance to the rating organization as a subscriber without justification, he shall order the rating organization to admit the title insurance company as a subscriber. If he finds that the action of the rating organization was justified, he shall make an order affirming its action. (c)  Cooperation among rating organizations, or among rating organizations and title insurance companies, and concert of action among title insurance companies under the same general management and control in rate making or in other matters within the scope of this article is hereby authorized, provided the filings resulting therefrom are subject to all the provisions of this article which are applicable to filings generally. The commissioner may review such activities and practices and if, after a hearing, he finds that any such activity or practice is unfair or unreasonable or otherwise inconsistent with the provisions of this article, he may issue a written order specifying in what respects such activity or practice is unfair or unreasonable or otherwise inconsistent with the provisions of this article and requiring the discontinuance of such activity or practice. § 742.  Deviations Every member of or subscriber to a rating organization shall adhere to the filings made on its behalf by such organization, except that any title insurance company which is a member of or subscriber to a rating organization may file with the commissioner a uniform percentage of decrease or increase to be applied to any or all elements of the fees produced by the rating system so filed for a 33. Enrolled bill omitted word “a”.

488

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Part VI Ch. 49–56 Taxation Part VII Ch. 57–63 Litigation Part VIII Ch. 64–67 L/T Part IX Ch. 68–72 Condos, etc. Index

gtb-parealestate22-all.indb 489

Part V Ch. 41–48A Zoning, etc.

489

Part IV Ch. 36–40 Insurance

34. 40 P.S. § 910-40. 35. 40 P.S. § 910-39.

Part III Ch. 23–35 Mortgages

§ 744.  Information to be furnished insureds; hearings and appeals of insureds (a)   Every rating organization and every title insurance company which makes its own rates shall, within a reasonable time after receiving written request

Part II Ch. 15–22 Deeds

§ 743.  Appeal by minority (a)   Any member of or subscriber to a rating organization may appeal to the commissioner from any action or decision of such rating organization in approving or rejecting any proposed change in or addition to the filings of such rating organization, and the commissioner shall, after a hearing held upon not less than ten days written notice to the appellant and to such rating organization, issue an order approving the action or decision of such rating organization or directing it to give further consideration to such proposal and to take action or make a decision upon it within thirty days, or, if such appeal is from the action or decision of the rating organization in rejecting a proposed addition to its filings, he may, in the event he finds that such action or decision was unreasonable, issue an order directing the rating organization to make an addition to its filings, on behalf of its members and subscribers, in a manner consistent with his findings, within a reasonable time after the issuance of such order: Provided, however, If the appeal is from the action of the rating organization with regard to a rate or a proposed change in or addition to its filings relating to the character and extent of coverage, he shall approve the rate applied by the rating organization or such rate as may be suggested by the appellant, if either rate be in accordance with this article. (b)  The failure of a rating organization to take action or make a decision within thirty days after submission to it of a proposal under this section shall constitute a rejection of such proposal within the meaning of this section. (c)   If such appeal is based upon the failure of the rating organization to make a filing on behalf of such member or subscriber which is based on a system of expense provisions which differs, in accordance with the right granted in subsection (d) of section 73935 from the system of expense provisions included in a filing made by the rating organization, the commissioner shall, if he grants the appeal, order the rating organization to make the requested filing for use by the appellant. In deciding such appeal, the commissioner shall apply the standards set forth in section 739.

Part I Ch. 1–14 Brokers

class of title insurance which is found by the commissioner to be a proper rating unit for the application of such uniform decrease or increase, or to be applied to the rates for a particular area, or with respect to the amount of commissions to be paid. Such deviation filing shall specify the basis for the modification and shall be accompanied by the data or historical pattern upon which the applicant relies. A copy of the filing and data shall be sent simultaneously to such rating organization. Any such deviation filing shall be on file for a waiting period of thirty days before it becomes effective. Extension of such waiting period may be made in the same manner that such period is extended in the case of rate filings. Upon written application of the person making the filing, the commissioner may authorize a deviation filing or any part thereof to become effective before the expiration of the waiting period or any extension thereof. Deviation filings shall be subject to the provisions of section 740.34 Each deviation shall be effective for at least one year from the date such deviation is filed unless terminated sooner with the approval of the commissioner, or in accordance with the provisions of section 740.

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§ 745

TITLE INSURANCE COMPANIES

therefor and upon payment of such reasonable charge as it may make, furnish to any insured affected by a rate made by it, or to the authorized representative of such insured, all pertinent information as to such rate. (b)  Every rating organization and every title insurance company which makes its own rates shall provide, within this Commonwealth, reasonable means whereby any person aggrieved by the application of its rating system may be heard, in person or by his authorized representative, on his written request to review the manner in which such rating system has been applied in connection with the insurance afforded him. If the rating organization or title insurance company fails to grant or reject such request within thirty days after it is made, the applicant may proceed in the same manner as if his application had been rejected. Any party affected by the action of such rating organization or such title insurance company on such request may, within thirty days after written notice of such action, appeal to the commissioner, who, after a hearing held upon not less than ten days written notice to the appellant and to such rating organization or insurer, may affirm or reverse such action. § 745.  Examinations of rating organizations The commissioner shall, at least once in five years, make or cause to be made an examination of such rating organization licensed under this article in this Commonwealth. The reasonable costs of any such examination shall be paid by the rating organization examined upon presentation to it of a detailed account of such costs. The officer, manager, agents and employes of such rating organization may be examined at any time under oath and shall exhibit all books, records, accounts, documents or agreements governing its method of operation. The commissioner shall furnish two copies of the examination report to the organization examined and shall notify such organization that it may, within twenty days thereafter, request a hearing on said report or on any facts or recommendations therein. Before filing any such report for public inspection, the commissioner shall grant a hearing to the organization examined. The report of any such examination, when filed for public inspection, shall be admissible in evidence in any action or proceeding brought by the commissioner against the organization examined, or its officers or agents, and shall be prima facie evidence of facts stated therein. The commissioner may withhold the report of any such examination from public inspection for such time as he may deem proper. In lieu of any such examination, the commissioner may accept the report of an examination made by the insurance supervisory official of another state pursuant to the laws of such state. § 746.   Rate administration; authority and duties of Commissioners; rules and regulations (a)   The commissioner shall promulgate reasonable rules and statistical plans, reasonably adapted to each of the rating systems on file with him, which may be modified from time to time, and which shall be used thereafter by each title insurance company, in the recording and reporting of the composition of its business, its loss and countrywide expense experience and those of its title insurance underwriters in order that the experience of all title insurance companies may be made available, at last annually, in such form and detail as may be necessary to aid him in determining whether rating systems comply with the standards set forth in this article. Such rules and plans may also provide for the recording and reporting of expense experience items which are specially applicable to this Commonwealth and are not susceptible of determination by a prorating of countrywide expense experience. In promulgating such rules and plans, the commissioner shall give due consideration to the rating systems on file with him, and in order that such rules and plans may be as uniform as is practicable among the several states, to the rules and to form of the plans used for such rating systems in other states. Such rules and plans shall not place an unreasonable burden of

490

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Ch. 36

Part VI Ch. 49–56 Taxation Part VII Ch. 57–63 Litigation Part VIII Ch. 64–67 L/T Part IX Ch. 68–72 Condos, etc. Index

gtb-parealestate22-all.indb 491

Part V Ch. 41–48A Zoning, etc.

491

Part IV Ch. 36–40 Insurance

§ 749.  Hearing procedure and judicial review (a)   Any title insurance company, rating organization or person aggrieved by any action of the commissioner, except disapproval of a filing or a part thereof,

Part III Ch. 23–35 Mortgages

§ 748.  Penalties (a)  The commissioner may, if he finds that any person or organization has violated any provision of this article, impose a penalty of not more than five hundred dollars ($500) for each such violation, but if he finds such violation to be wilful, he may impose a penalty of not more than five thousand dollars ($5,000) for each such violation. Such penalties may be in addition to any other penalty provided by law. (b)  The commissioner may suspend the license of any rating organization or title insurance company which fails to comply with an order of the commissioner within the time limited by such order, or any extension thereof which the commissioner may grant. The commissioner shall not suspend the license of any rating organization or title insurance company for failure to comply with an order until the time prescribed for an appeal therefrom has expired, or, if an appeal has been taken, until such order has been affirmed. The commissioner may determine when a suspension of license shall become effective, and it shall remain in effect for the period fixed by him, unless he modifies or rescinds such suspension, or until the order upon which such suspension is based is modified, rescinded or reversed. (c)   No penalty shall be imposed and no license shall be suspended or revoked except upon a written order of the commissioner, stating his findings, made after a hearing held upon not less than ten days written notice to such person or organization, specifying the alleged violation.

Part II Ch. 15–22 Deeds

§ 747.  False or misleading information No person or organization shall wilfully withhold information from, or knowingly give false or misleading information to, the commissioner, any statistical agency designated by the commissioner, any rating organization, or any title insurance company, which will affect the rates or fees chargeable under this article.

Part I Ch. 1–14 Brokers

expense on any title insurance company. No title insurance company shall be required to record or report its expense and loss experience on a classification basis that is inconsistent with the rating system filed by it, nor shall any title insurance company be required to report its experience to any agency of which it is not a member or subscriber. The commissioner may designate one or more rating organizations or other agencies to assist him in gathering such experience and making compilations thereof, and such compilations shall be made available, subject to reasonable rules promulgated by the commissioner, to title insurance companies and rating organizations. (b)   Reasonable rules and plans may be promulgated by the commissioner for the interchange of data necessary for the application of rating plans. (c)  In order to further uniform administration of rate regulatory laws, the commissioner and every title insurance company and rating organization may exchange information and experience data with insurance supervisory officials, title insurance companies and rating organizations in other states, and may consult with them with respect to rate making and the application of rating systems. (d)   In addition to any powers hereinbefore expressly enumerated in this act, the commissioner shall have full power and authority, and it shall be his duty, to enforce and carry out by regulations, orders or otherwise, all and singular the provisions of this article and the full intent thereof. The commissioner may make such reasonable rules and regulations not inconsistent with this article, as may be necessary or proper in the exercise of his powers or for the performance of his duties under this article.

Table of Contents

PART IV

12/22/21 10:45 AM

§ 750

TITLE INSURANCE COMPANIES

or by any rule or regulation adopted and promulgated by the commissioner, shall have the right to file a complaint with the commissioner and to have a hearing thereon before the commissioner. Pending such hearing and the decision thereon, the commissioner may suspend or postpone the effective date of his previous action, rule or regulation. (b)   All hearings provided for in this article shall be conducted, and the decision of the commissioner on the issue or filing involved shall be rendered, in accordance with the provisions of the act of June 4, 1945 (P.L. 1388), known as the “Administrative Agency Law,”36 relating to adjudication procedure. (c)  Repealed. 1978, April 28, P.L. 202, No. 53, § 2(a)[1048], effective June 27, 1978. § 750.  Existing filings and hearings, continued All title insurance manuals of classifications, rules and rates, rating plans and modifications thereof filed under any repealed act shall be deemed to have been filed under this article, and all title insurance rating organizations licensed under such repealed act shall be deemed to have been licensed under this article. All hearings and investigations pending under such repealed act shall be deemed to have been initiated under and shall be continued under this article. §§ 751, 752.  Repealed. 1990, Dec. 19, P.L. 834, No. 198, § 401(b) effective in six months § 753.  Repealed. 1994, Feb. 17, P.L. 92, No. 9, § 9, imd. effective § 754.  Other sections applicable In addition to the provisions of this article, only the following provisions of the laws governing insurance companies as presently enacted and hereinafter amended, except as they are inconsistent with the provisions of this article, shall apply to the business of title insurance and to title insurance companies, which shall be considered as within the class of insurance companies regulated by such provisions solely for the limited purpose of being subject to such provisions: (1)  Sections 1, 101 to 106, 201, 202, 205 to 212, 218, 219, 221, 401, 404, 501, 502, 504 to 511, 602 to 607, 631, 632, 633, 635 to 640 and 650 to 65437 inclusive and Article IX of the act of May 17, 1921 (P.L. 789, No. 285),38 known as “The Insurance Department Act of 1921.” (2)   Sections 101 to 109, 203, 204, 205, 207, 208, 209, 210 to 215, 300 to 331, 337.1 to 355, 605, 606, 61039 and Article XIV40 of this act. (3)   Sections 1 to 10 of the act of July 11, 1917 (P.L.804),41 entitled “An act relating to domestic and foreign insurance companies and corporations holding and dealing in insurance stock and certificates; regulating the sale of stock and evidences of indebtedness of such companies and corporations, and of subscriptions and applications therefor; and prescribing penalties.” (4)   Section 1 of the act of July 12, 1935 (P.L.969),42 entitled “An act providing for the valuation of bonds and other evidences of debt held by domestic

36. 71 P.S. § 1710.1 et seq. (repealed). 37. 40 P.S. §§ 1, 21 to 26, 41 to 52, 56, 57, 59, 181, 184, 201, 202, 204 to 210a, 232 to 237, 271 to 273, 275 to 280, 290 to 294. 38. 40 P.S. § 323.1 et seq. 39. 40 P.S. §§ 361 to 369, 383, 384, 385, 387, 388, 389, 400 to 405, 420 to 424, 426 to 429, 432 to 440.1, 441 to 454, 459.1 to 466, 470 to 477c, 725, 726, 730. 40. 40 P.S. § 991.1401 et seq. 41. 40 P.S. §§ 390 to 399. 42. 40 P.S. § 405a.

492

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Ch. 36

Part VII Ch. 57–63 Litigation Part VIII Ch. 64–67 L/T Part IX Ch. 68–72 Condos, etc. Index

gtb-parealestate22-all.indb 493

Part VI Ch. 49–56 Taxation

493

Part V Ch. 41–48A Zoning, etc.

§§ 467, 468, 469. §§ 478, 479. § 483. §§ 484 to 487. §§ 1005.1 to 1005.6 (repealed; see, now, 42 Pa.C.S.A. §§ 1722(a)(1), 2503(6), 5322, 5323). §§ 1151 to 1160 (repealed; see, now, 40 P.S. § 1171.1 et seq.). §§ 2270.1 to 2270.10 (repealed; see, now, 72 P.S. § 7901 et seq.).

Part IV Ch. 36–40 Insurance

P.S. P.S. P.S. P.S. P.S. P.S. P.S.

Part III Ch. 23–35 Mortgages

40 40 40 40 40 40 72

Part II Ch. 15–22 Deeds

43. 44. 45. 46. 47. 48. 49.

Part I Ch. 1–14 Brokers

insurance corporations and by foreign insurance corporations authorized to do business in this State.” (5)   Sections 1, 2 and 3 of the act of March 4, 1850 (P.L.126),43 entitled “An act to supply lost policies of insurance.” (6)   Sections 1 and 2 of the act of May 5, 1921 (P.L.350),44 entitled “An act making it unlawful to give or offer money to secure proxies for use at meetings of insurance companies.” (7)  Section 1 of the act of June 22, 1931 (P.L.622),45 entitled “An act to prevent fraudulent procedure in obtaining licenses or certificates from the Insurance Department, or altering licenses or certificates issued by the Insurance Department; and providing penalties.” (8)   Sections 1 to 4 of the act of May 22, 1945 (P.L.828),46 entitled “An act to enable domestic stock and mutual insurance companies to comply with the taxing statutes, and to relieve officers, directors and trustees of domestic stock and mutual insurance companies of personal liability by reason of the payment or determination not to contest payment of any license, excise, privilege, premium, occupation, or other fee, or tax, imposed by any State or political subdivision thereof.” (9)   Sections 1 to 6 of the act of May 20, 1949 (P.L.1491),47 known as the “Unauthorized Insurers Process Act.” (10)   Sections 1 to 12 of the act of June 5, 1947 (P.L.445),48 known as “The Insurance Unfair Practices Act.” (11)   Sections 1 to 10 of the act of February 21, 1961 (P.L.33),49 entitled “An act imposing a State tax on gross premiums, premium deposits, and assessments received from business transacted within this Commonwealth by certain insurance companies, associations, and exchanges; requiring the filing of annual and tentative reports and the computation and payment of tax; providing for the rights, powers and duties of the Department of Revenue, the taxpayers and officers thereof; and providing penalties.” § 755.  Investment plan Any title insurance company subject to the provisions of this act is required to have a formal investment plan which shall be updated on an annual basis as authorized by the board of directors. The investment plan shall include, at a minimum, a description of the investment strategy of the company designed to provide for liquidity and diversity of the investment portfolio. The investment plan, and such other information as the Insurance Department may require in order to determine the impact of the investment plan on the solvency of the company, shall be made available to the Insurance Department during the course of a financial condition examination conducted in accordance with the laws pertaining to the conduct of examinations.

Table of Contents

PART IV

12/22/21 10:45 AM

CHAPTER 37 NOTICE REQUIREMENTS OF PROPERTY AND CASUALTY INSURERS 40 P.S. § 3401 to 40 P.S. § 3409

Sec. § § § § § § § § §

1. Notice of increase in premium 2. Grounds for cancellation 3. Notice requirements for midterm cancellations and nonrenewals 4. Return of unearned premium 5. Extended reporting endorsement 6. Compliance 7. Applicability 8. Penalties 9. Rulemaking authority

§ 1.  Notice of increase in premium Notwithstanding any other provision of law, a policy of insurance covering commercial property or casualty risks in this Commonwealth shall provide for not less than 30 days’ advance notice to the named insured of an increase in renewal premium. This section shall not apply to policies written on a retrospective rating plan. § 2.  Grounds for cancellation Canceling in midterm a policy of insurance covering commercial property and casualty risks is prohibited for any reason other than the following: (1)   A condition, factor or loss experience material to insurability has changed substantially or a substantial condition, factor or loss experience material to insurability has become known during the policy term. (2)  Loss of reinsurance or a substantial decrease in reinsurance has occurred, which loss or decrease shall, at the time of cancellation, be certified to the Insurance Commissioner as directly affecting in-force policies. (3)   The insured has made a material misrepresentation which affects the insurability of the risk. (4)  The policy was obtained through fraudulent statements, omissions or concealment of fact material to the acceptance of the risk or to the hazard assumed by the company. (5)   The insured has failed to pay a premium when due, whether the premium is payable directly to the company or its agents or indirectly under a premium finance plan or extension of credit. (6)   The insured has requested cancellation. (7)   Material failure to comply with policy terms, conditions or contractual duties. (8)   Other reasons that the Insurance Commissioner may approve. § 3.  Notice requirements for midterm cancellations and nonrenewals (a)  Requirements.—Notices of midterm cancellation and nonrenewal shall meet the following requirements: (1)   The midterm cancellation or nonrenewal notice shall be forwarded by registered or first class mail or delivered by the insurance company directly to the named insured or insureds.

494

gtb-parealestate22-all.indb 494

12/22/21 10:45 AM

HAZARD AND TITLE INSURANCE

Ch. 37

Part IV Ch. 36–40 Insurance Part V Ch. 41–48A Zoning, etc. Part VI Ch. 49–56 Taxation Part VII Ch. 57–63 Litigation Part VIII Ch. 64–67 L/T Part IX Ch. 68–72 Condos, etc. Index

gtb-parealestate22-all.indb 495

Part III Ch. 23–35 Mortgages

495

Part II Ch. 15–22 Deeds

§ 4.  Return of unearned premium (a)  Cancellation initiated by insurer.—Unearned premium must be returned to the insured not later than ten business days after the effective date of

Part I Ch. 1–14 Brokers

(2)   Written notice of nonrenewal in the manner prescribed in this section must be forwarded directly to the named insured or insureds at least 60 days in advance of the effective date of termination. (3)   Written notice of cancellation in the manner prescribed in this section must be forwarded directly to the named insured or insureds at least 60 days in advance of the effective date of termination unless one or more of the following exist: (i)   The insured has made a material misrepresentation which affects the insurability of the risk, in which case the prescribed written notice of cancellation shall be forwarded directly to the named insured at least 15 days in advance of the effective date of termination. (ii)  The insured has failed to pay a premium when due, whether the premium is payable directly to the company or its agents or indirectly under a premium finance plan or extension of credit, in which case the prescribed written notice of cancellation shall be forwarded directly to the named insured at least 15 days in advance of the effective date of termination. (iii)   The policy was canceled by the named insured, in which case written notice of cancellation shall not be required and coverage shall be terminated on the date requested by the insured. Nothing in this paragraph shall restrict the insurer’s right to rescind an insurance policy ab initio upon discovery that the policy was obtained through fraudulent statements, omissions or concealment of fact material to the acceptance of the risk or to the hazard assumed by the company. (4)  The notice shall be clearly labeled “Notice of Cancellation” or “Notice of Nonrenewal.” (5)  A midterm cancellation or nonrenewal notice shall state the specific reasons for the cancellation or nonrenewal. The reasons shall identify the condition, factor or loss experience which caused the midterm cancellation or nonrenewal. The notice shall provide sufficient information or data for the insured to correct the deficiency. (6)  A midterm cancellation or nonrenewal notice shall state that, at the insured’s request, the insurer shall provide loss information to the insured for at least three years or the period of time during which the insurer has provided coverage to the insured, whichever is less. Loss information on the insured shall consist of the following: (i)   Information on closed claims, including date and description of occurrence, and amount of payments, if any. (ii)   Information on open claims, including date and description of occurrence, amount of payment, if any, and amount of reserves, if any. (iii)   Information on notices of occurrence, including date and description of occurrence and amount of reserves, if any. (7)   The insured’s written request for loss information must be made within ten days of the insured’s receipt of the midterm cancellation or nonrenewal notice. The insurer shall have 30 days from the date of receipt of the insured’s written request to provide the requested information. (b)  Effective notice.—Until an insurer issues a nonrenewal or cancellation notice that complies with the provisions set forth in this act, insurance coverage will remain in effect. However, if the insured obtains replacement coverage, the noncomplying insurer’s obligation to continue coverage ceases.

Table of Contents

PART IV

12/22/21 10:45 AM

§ 5

NOTICE REQUIREMENTS

termination where commercial property or casualty risks are canceled in midterm by the insurer. (b)   Cancellation initiated by insured.—Unearned premium must be returned to the insured not later than 30 days after the effective date of termination where commercial property or casualty risks are canceled in midterm by the insured. (c)  Repayment on estimated basis.—Where the amount of premium to be returned cannot be calculated precisely within the required time period for return of premium because: (1)   the policy was written on the basis of an estimated premium; or (2)   the policy was issued subject to a premium audit; the unearned premium shall be returned to the insured on an estimated basis. Upon the insurer’s completion of computation of the exact premium to be returned, an additional return premium or charge shall be made to the named insured or insureds within 15 days of the final computation. (d)  Applicability to retrospective rating plans.—This section shall not apply to policies written on a retrospective rating plan. (e)  Liability for fine.—For a period of 60 days from the effective date of this act, insurers failing to comply with subsection (a) shall not be subject to any fine under section 8(2)1 § 5.  Extended reporting endorsement Insurers must provide a 60-day period, after cancellation or nonrenewal of a claims-made policy is effective, during which time the insured may purchase an extended reporting coverage endorsement, also referred to as tail coverage. If the insured purchases the extended reporting coverage endorsement at any time within the 60-day period following cancellation or nonrenewal of a claims-made policy, the extended reporting coverage shall become effective as of the date the claims-made policy terminated. § 6.  Compliance Policy form filings received by the Insurance Department on or after the effective date of this act shall conform to the requirements set forth in this act. Amendatory endorsements shall be submitted to the Insurance Department for approval not more than 60 days after the date this act becomes effective. § 7.  Applicability (a)  General rule.—This act applies to insurance policies, exclusive of reinsurance policies, covering commercial property and casualty risks located in this Commonwealth. (b)  Limited applicability in certain areas.—Workmen’s compensation policies and medical malpractice policies subject to the act of October 15, 1975 (P.L. 390, No. 111), known as the Health Care Services Malpractice Act,2 are not subject to the cancellation provisions set forth in this act. (c)  Exceptions.—This act does not apply to commercial property and casualty insurance policies that are in effect less than 60 days, unless they are renewals. An insurer may cancel the policy provided it gives at least 30 days’ notice of the termination and provided it gives notice no later than the 60th day, unless the policy provides for a longer period of notification.

1. 40 P.S. § 3409(2). 2. 40 P.S. § 1301.101 et seq.

496

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HAZARD AND TITLE INSURANCE

Ch. 37

Part I Ch. 1–14 Brokers Part II Ch. 15–22 Deeds

§ 8.  Penalties Upon satisfactory evidence of a violation of this act by an insurer subject to its terms, the Insurance Commissioner may pursue one or more of the following causes of action: (1)   Order that the insurer cease and desist from the violation. (2)   Impose a fine of not more than $5,000 for each violation. § 9.  Rulemaking authority The Insurance Commissioner shall promulgate rules and regulations necessary for the administration of this act.

Table of Contents

PART IV

Part III Ch. 23–35 Mortgages Part IV Ch. 36–40 Insurance Part V Ch. 41–48A Zoning, etc. Part VI Ch. 49–56 Taxation Part VII Ch. 57–63 Litigation Part VIII Ch. 64–67 L/T Part IX Ch. 68–72 Condos, etc.

gtb-parealestate22-all.indb 497

Index

497

12/22/21 10:45 AM

CHAPTER 38 INSURANCE ADJUSTERS 63 P.S. § 1601 to 1608

Sec.

§ 1. § 2. § 2.1. § 2.2. § 2.3. § 2.4. § 2.5. § 3. § 3.1. § 4. § 5. § 6. § 7. § 7.1. § 8.

Definitions License Application for public adjuster license Licensing Issuance and term of license License renewals Reciprocal licensing Reserved Written disclosure of financial interest Bond Contract Revocation, etc., of license Violations Civil remedy Administration and enforcement

§ 1.  Definitions The following words and phrases when used in this act shall have the meanings given to them in this section unless the context clearly indicates otherwise: “Application.” A form approved by the Insurance Department to be used to apply for a public adjuster license. “Business entity.” A corporation, partnership, association, limited liability company or limited liability partnership. “Business entity application.” A form approved by the Insurance Department to be used by a business entity to apply for a public adjuster license. “Department.” The Insurance Department of the Commonwealth. “Home state.” The District of Columbia, a state, commonwealth or territory of the United States in which a public adjuster resides and is licensed to act as a resident public adjuster. “Licensee.” A person licensed by the Insurance Department as a public adjuster. “Nonresident public adjuster.” A public adjuster whose home state is not this Commonwealth. “Public adjuster.” Any person advertising, soliciting business or holding himself out to the public as an adjuster of claims for losses or damages arising out of policies of insurance, surety or indemnity upon property, persons or insurable business interests within this Commonwealth, and receiving any compensation or reward for the giving of advice or assistance to the insured in the adjustment of claims for such losses, or who for compensation or reward, whether by way of salary or commission or otherwise, directly or indirectly, solicits business, investigates or adjusts losses or advises the insured with reference to claims for losses on behalf of any other person engaged in the business of adjusting losses. The term does not include an agent or employee of an insurance company, association or an exchange, through whom a policy of insurance was written, in adjusting loss or damage under such policy, nor does it include an insurance

498

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12/22/21 10:45 AM

HAZARD AND TITLE INSURANCE

Ch. 38

Part V Ch. 41–48A Zoning, etc. Part VI Ch. 49–56 Taxation Part VII Ch. 57–63 Litigation Part VIII Ch. 64–67 L/T Part IX Ch. 68–72 Condos, etc. Index

gtb-parealestate22-all.indb 499

Part IV Ch. 36–40 Insurance

499

Part III Ch. 23–35 Mortgages

§ 2.1.   Application for public adjuster license (a)  Individuals.—An individual who is a resident of this Commonwealth may apply to the department for a resident public adjuster license. An individual who is not a resident of this Commonwealth may apply for a nonresident public adjuster license. To apply for a public adjuster license, an individual shall submit to the department: (1)   a completed application on forms approved by the department; (2)  the applicant’s fingerprints, for the department to receive national criminal history records information from the Criminal Justice Information Services Division of the Federal Bureau of Investigation; (3)  documentation verifying the applicant passed or is exempt from the public adjuster licensing examination; and (4)   the required license fee and fees for obtaining national criminal history records information. (b)  Business entities.—Upon designating one or more officers or partners licensed under this act to be responsible for the business entity’s compliance with the insurance laws and regulations of the Commonwealth, a business entity may apply to the department for a public adjuster license. A business entity with an office in this Commonwealth shall apply for a resident public adjuster license. A business entity that does not have an office in this Commonwealth shall apply for a nonresident public adjuster license. The designated licensees of the business entity shall submit to the department: (1)  a completed business entity application on forms approved by the department; (2)   proof of the public adjuster license held by the designated licensees; and (3)   the required license fee. (c)  License fee.—A nonrefundable $200 fee shall accompany a completed application for a resident or nonresident public adjuster license until modified by the department by regulation. § 2.2.  Licensing (a)  Individuals.—The department shall review each application and may conduct an investigation of each individual who applies for a license in accordance with this act. The department shall issue a resident or nonresident public adjuster license, as appropriate, to the applicant when the department is satisfied the following criteria have been met:

Part II Ch. 15–22 Deeds

§ 2.  License (a)  License required.—No person shall, directly or indirectly, act within the Commonwealth as a public adjuster without first procuring from the Insurance Commissioner a license as a public adjuster. (b)  (Reserved). (c)  (Reserved). (d)   License not to be issued to certain persons.—No license as a public adjuster shall be issued to any person engaged or interested in, or receiving any profit from, nor shall the holder of any such license engage or be interested in, or receive any profit from, any salvage or similar business.

Part I Ch. 1–14 Brokers

producer acting as an adjuster if the services of the insurance producer in the adjustment are without compensation. “Repairs.” Shall not include temporary or emergency repairs made for the purpose of protecting the insured property or to comply with policy terms and conditions.

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PART IV

12/22/21 10:45 AM

§ 2.3

INSURANCE ADJUSTERS

(1)   the applicant has reached 18 years of age; (2)   the applicant has not committed any act which is prohibited under this act; (3)   the applicant has passed or is exempt from the public insurance adjuster licensing examination; (4)   the applicant has paid the applicable fees established under this act; (5)   the applicant possesses the general fitness, competence and reliability sufficient to satisfy the department that1 the applicant is worthy of licensure; and (6)   other criteria as the department may establish. (b)  Business entities.—The department shall review each business entity application and may conduct an investigation of each business entity seeking licensure and its designated licensees. The department shall issue a resident or nonresident public adjuster license, as appropriate, to the business entity when the department is satisfied the following criteria have been met: (1)  the business entity has one or more designated licensees who are responsible for the business entity’s compliance with the insurance laws and regulations of this Commonwealth; (2)   the business entity’s designated licensees and officers, partners or members are licensees in good standing with the department; (3)   if a corporation or limited liability company, individual public adjuster licenses shall be held by or secured for each officer of the corporation or limited liability company; (4)   if a partnership, limited liability partnership or association, individual public adjuster licenses shall be held by or secured for each partner or member of the association; (5)   the business entity or its designated licensees have not committed an act which is prohibited under this act; (6)  the business entity is owned, operated and managed by persons possessing the general fitness, competence and reliability sufficient to satisfy the department that the business entity is worthy of licensure; (7)   the business entity has paid the applicable fees established under this act; and (8)   other criteria as the department may establish. § 2.3.   Issuance and term of license A public adjuster license issued by the department shall be: (1)   issued only in the name of the individual or business entity. If a licensee is doing business under a fictitious name other than the name appearing on the public adjuster license, the licensee is required to notify the department in writing prior to using the fictitious name; (2)   issued in paper or electronic form; (3)  nontransferable; and (4)   issued for a period not to exceed two years. § 2.4.  License renewals (a)  General rule.—A licensee may request renewal of the license. The licensee shall submit to the department a completed renewal form, the required fee

1. “department the” on enrolled bill.

500

gtb-parealestate22-all.indb 500

12/22/21 10:45 AM

HAZARD AND TITLE INSURANCE

Ch. 38

Part IV Ch. 36–40 Insurance Part V Ch. 41–48A Zoning, etc. Part VI Ch. 49–56 Taxation Part VII Ch. 57–63 Litigation Part VIII Ch. 64–67 L/T Part IX Ch. 68–72 Condos, etc. Index

gtb-parealestate22-all.indb 501

Part III Ch. 23–35 Mortgages

501

Part II Ch. 15–22 Deeds

§ 2.5.  Reciprocal licensing (a)  Nonresident individuals.— (1)   An individual who is currently licensed as a resident public adjuster in another state or territory may apply to the department for a nonresident public adjuster license. The individual shall submit to the department a completed application, proof of the individual’s current home state license in a form or manner determined acceptable by the department and the required license fee. (2)   Upon receipt and review of the application, proof of the home state license in a form or manner determined acceptable by the department and the fee, the department shall issue a nonresident public adjuster license to the individual. The department may deny the application if the individual’s home state does not award nonresident public adjuster licenses to resident licensees of this Commonwealth on the same basis. (b)   Nonresident business entities.— (1)  Upon designating one or more individuals licensed under this act to be responsible for the business entity’s compliance with the insurance laws

Part I Ch. 1–14 Brokers

and verification the licensee has completed the continuing education required by this act. Upon receipt and review, the department shall renew the license unless it determines the licensee is not in compliance with this act. (b)  Continuing education.—A licensee who is not a business entity shall successfully complete 24 credit hours of approved continuing education for each two-year license period as a condition for license renewal unless modified by the department by regulation. A licensee may carry forward excess continuing education credit hours up to 24 credit hours from one licensing period to the next licensing period. (c)  Lapses.—A licensee who allows his license to lapse by failing to timely renew the license, pay the fee required by this act or complete the continuing education required by this act may, within 60 days of the license renewal date, request the department to reinstate the license. Persons requesting reinstatement of a lapsed license shall submit a completed renewal form, the fee required by this act and verification the person has completed all continuing education required by subsection (b) for the previously licensed and lapsed periods. If the department receives a request for reinstatement together with a completed renewal application, payment of the lapsed license fee and proof of continuing education compliance within 60 days after the license lapsed, the department shall reinstate the license retroactively with the reinstatement effective on the date the license lapsed. Except as set forth in subsection (d), if a person applies for reinstatement more than 60 days after the lapse date, the person shall reapply for a license under this act. (d)  Extenuating circumstances.—A licensee who is unable to timely comply with the requirements of subsection (a) as a result of military service or other extenuating circumstance may request the department to waive the requirements of completing continuing education for the period in which the license had lapsed and payment of the lapsed license fee. The request shall include sufficient detail and supporting documentation to determine the necessity of the waiver. If the department determines that there is good cause for noncompliance, the department shall grant the waiver and permit the licensee to request renewal of the license in accordance with this act. (e)  Renewal fees.—The following nonrefundable fees shall accompany an application for renewal of a public adjuster license unless modified by the department by regulation: (1)   Resident or nonresident renewal fee, $200. (2)   Lapsed license renewal fee, $400.

Table of Contents

PART IV

12/22/21 10:45 AM

§ 3

INSURANCE ADJUSTERS

and regulations of this Commonwealth, a business entity which is currently licensed as a resident public adjuster in another state or territory may apply to the department for a nonresident public adjuster license. The designated licensees of the business entity shall remit to the department a completed business entity application, proof of the business entity’s current home state license in a form or manner determined acceptable by the department and the required license fee. (2)  Upon receipt and review of the application, proof of the home state license in a form or manner determined acceptable by the department and the fee, the department shall issue a nonresident public adjuster license to the business entity if the department determines that the business entity, its partners, members or officers and its designated licensees are licensees in good standing in the business entity’s home state. The department may deny the application if the business entity’s home state does not award nonresident public adjuster licenses to resident licensees of this Commonwealth on the same basis. § 3.  Reserved § 3.1.   Written disclosure of financial interest (a)  Requirement.—A public adjuster shall provide the insured a written disclosure concerning a direct or indirect financial interest the public adjuster has with another party involved in an aspect of the claim other than the salary, fee, commission or other consideration established in the written contract with the insured, including ownership of or compensation expected to be received from a construction firm, building appraisal firm, motor vehicle repair shop or another firm that provides estimates for work or that performs work in conjunction with damages caused by the insured loss on which the public adjuster is engaged. (b)  Definition.—As used in this section, the term “firm” shall include a corporation, partnership, association, joint-stock company or person. § 4.  Bond (a)  Public adjuster’s bond.—Each person receiving a public adjuster’s license shall, before transacting any business thereunder, execute and deliver to the Insurance Commissioner a bond in the minimum penal sum of $20,000 with such sureties as the Insurance Commissioner may approve. (b)  (Reserved). (c)  Condition of bond.—The bond of the public adjuster shall be conditioned that said public adjuster will faithfully comply with all the requirements of this act and shall not embezzle, take, secrete or otherwise dispose of or fraudulently withhold, appropriate, lend, invest or otherwise use or apply any money or substitutes for money or any salvage, goods or property received by him as such public adjuster or employee of a public adjuster, contrary to the instructions or without the consent of the assured or his legal representative. Any person, firm or corporation who has entered into a contract with a public adjuster, as provided in section 5,2 and who shall suffer loss by reason of the failure of the public adjuster to comply with this act and faithfully perform his duties shall have the right to intervene and be made a party to any action instituted by the Commonwealth on the bond of the public adjuster and to have his, her or its rights and claims adjudicated in such action and judgment rendered thereon, subject, however, to the priority of the claim and judgment of 2. 63 P.S. § 1605.

502

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Ch. 38

Part VIII Ch. 64–67 L/T Part IX Ch. 68–72 Condos, etc. Index

gtb-parealestate22-all.indb 503

Part VII Ch. 57–63 Litigation

503

Part VI Ch. 49–56 Taxation

(4)   Are misleading or unfair to the insured.

Part V Ch. 41–48A Zoning, etc.

(3)   Are contrary to the interests of the public.

Part IV Ch. 36–40 Insurance

(2)  Are unreasonable.

Part III Ch. 23–35 Mortgages

(1)   Fail to comply with this section.

Part II Ch. 15–22 Deeds

§ 5.  Contract (a)  Written contract required.—No public adjuster shall, directly or indirectly, act within this Commonwealth as a public adjuster without having first entered into a contract, in writing, on a form approved by the department and executed in duplicate by the public adjuster and the insured or a duly authorized representative. One copy of this contract shall be kept on file by the public adjuster, available at all times for inspection by the department. The department shall disapprove a contract form if, in the department’s opinion, the contract or its provisions:

Part I Ch. 1–14 Brokers

the Commonwealth. If the amount of the liability of the surety on said bond is sufficient to pay the full amount due the Commonwealth, the remainder shall be distributed pro rata among said intervenors. If no suit should be brought by the Commonwealth of Pennsylvania, upon application therefore and furnishing affidavit to the department that loss has been suffered by reason of failure of the public adjuster to comply with this act or faithfully perform his duties, such insured shall be furnished with a certified copy of said bond, upon which he, she or it shall have a right of action, and shall be and are hereby authorized to bring suit in the name of the Commonwealth for his, her or its use and benefit against said public adjuster and his sureties and to prosecute the same to final judgment and execution. Where suit is instituted by any such insureds on the bond of the public adjuster, it shall be commenced within one year after the performance and final settlement of said contract, and not later. Where suit is so instituted by an insured or insureds, no other action shall be brought by any other claimant, but any other claimant may file his claim in the action first brought and be made party thereto within one year from the completion of the work under said contract, and not later. If two or more actions be brought on the same day, the action in which the largest claim is demanded shall be regarded as the first action. Any creditor who has brought an action within one year as aforesaid, but after suit brought by another creditor or on the same day, may intervene in the suit first brought within the year, notwithstanding the fact that the intervention in such case be after the expiration of the year, provided said intervention be made within 30 days after the expiration of the year. If the recovery on the bond should be inadequate to pay the amounts found due to all of said creditors, judgment shall be given to each creditor pro rata of the amount of the recovery. The surety on said bond may pay into the court, for distribution among said claimants and creditors, the full amount of the surety’s liability, to wit, the penalty named in the bond, less any amount which said surety may have had to pay to the Commonwealth by reason of the execution of said bond, and, upon so doing, the surety will be relieved from further liability. In all suits instituted under the provisions of this act, such personal notice of the pendency of such suits, informing them of their right to intervene, as the court may order, shall be given to all known creditors and, in addition thereto, notice shall be given by publication in newspapers of general circulation, published in the county or municipality where the contract was performed, once a week for at least three successive weeks: Provided, however, That, when such suit has begun within three weeks of the end of the year within which suit may be brought, said notice by publication shall be only for the period intervening between the time of instituting such suit and the end of the year.

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At the department’s discretion, the department may also require the submission of advertising or solicitation material. (a.1)  Rescission.—A contract with a public adjuster may be rescinded by any person signing the contract. (a.2)  Disclosure.—The contracts shall disclose the following items with each of these items separately signed or initialed by the insured and the public adjuster: (1)  That the insured has the right to rescind the contract within three calendar days after signature. (2)   Fees to be charged or assessed by the public adjuster together with an explanation about how the fees will come from a portion of the claims payment, if any, made by the insurer under the policy and are not in addition to the payments. (3)   That the adjuster will provide the insured a copy of an estimate or report of losses and, upon the insured’s request, any supporting documentation it sends to the insurer. (4)  That the public adjuster is not a representative or employee of the insurer and is an independent licensee of the department. (a.3)  Regulations.—The Insurance Commissioner may issue regulations to assure the implementation of this section. (b)   Contracts only authorized by insured against his own carrier.—No public adjuster may adjust or solicit a contract for the adjustment of any claim for losses or damages on behalf of any person except claims by an insured against his own insurance carrier. (c)   Personal injury and automobile property damage claims prohibited.—No public adjuster shall act in any manner in relation to claims for personal injury or automobile property damage. (d)  Contracts limited to adjustment of insurance losses.—No public adjuster shall, directly or indirectly, through or with any person, partnership, corporation or association in which it has an indirect or beneficial interest, enter into any contract with any insured for the repair, replacement, restoration, renovation or demolition of damaged property, real or personal, at any time prior to the date a verdict or award is entered or payment is received from the insurance carrier, whichever event shall occur first. § 6.   Revocation, etc., of license (a)   Grounds for fines, suspensions or revocations.—Committing any of the following acts shall be grounds for fine, suspension or revocation of a public adjuster’s license: (1)  Material misrepresentation of the terms and effect of any insurance contract. (2)   Engaging in, or attempting to engage in, any fraudulent or misleading conduct with respect to a claim or loss that the licensee is adjusting. Misleading conduct shall not be considered a felony unless the conduct constitutes fraud. (3)   Misrepresentation of the services offered or the fees or commission to be charged. (4)   Conviction by any court of or a plea of nolo contendere to a felony under the laws of this Commonwealth, any other state, the United States or any territory or foreign country.

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Part III Ch. 23–35 Mortgages

(7)   Receiving, directly or indirectly, any compensation, commission or thing of value or profit from any person, partnership, association or corporation engaged or interested in the business of salvage, repair, replacement, restoration, renovation or demolition of damaged property, real or personal, unless such compensation, commission or thing of value or profit is disclosed to the insured and agreed to in the contract.

Part II Ch. 15–22 Deeds

(6)   Paying or causing to be paid any commission or any other compensation or thing of value whatsoever to any agent, broker, attorney, partner, clerk, servant, employee or any other person, whosoever hired by or employed by or with any insured named in any policy of insurance as an inducement or solicitation to influence the contracting of services for the services of public adjuster with any insured. A public adjuster may utilize the services of any person authorized by the insurer to assist in connection with an insurance claim: Provided, That said services must not conflict with the services required to be rendered by a public adjuster.

Part I Ch. 1–14 Brokers

(5)  Misappropriation, conversion to his own use or improper withholding of moneys held on behalf of another party to the contract.

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PART IV

(8)  (Reserved).

(10)   Violation of any provision of this act or any rule or regulation promulgated, published and adopted thereunder.

(12)   The commission of fraudulent practices. (13)   Demonstrating, in the judgment of the Insurance Commissioner, his incompetency or untrustworthiness to transact the business of a public adjuster.

(15)  Failing to comply with an administrative or court order imposing a child support obligation.

(17)   Committing a misdemeanor that involves the misuse or theft of money or property belonging to another person. (18)   Failing to notify the department of a change of address within 30 days.

(21)  Failing to notify the insured’s insurer within two calendar days of entering into a contract.

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Index

505

Part IX Ch. 68–72 Condos, etc.

(20)   Prohibiting communication between the insurer and the insured.

Part VIII Ch. 64–67 L/T

(19)   Soliciting business during the progress of a loss-producing occurrence such as a fire, tornado, severe storm or other catastrophe where the immediate safety and security of persons and property is paramount. For purposes of this paragraph, it shall be presumed that the loss-producing occurrence is still in progress while emergency responders are present at the scene, unless the emergency responders have determined that the emergency status of the event has ended.

Part VII Ch. 57–63 Litigation

(16)   Failing to pay State income tax or comply with any administrative or court order directing the payment of State income tax.

Part VI Ch. 49–56 Taxation

(14)  Having a public adjuster license or other professional license, or its equivalent, denied, suspended or revoked by a governmental entity or selfregulating professional association.

Part V Ch. 41–48A Zoning, etc.

(11)  Making a material misstatement in the application for any such license.

Part IV Ch. 36–40 Insurance

(9)  Closing of a licensee’s office for a period in excess of 30 days, unless granted permission by the Insurance Commissioner to close the office for a longer period.

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§ 7

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(b)  Civil penalty.—Regardless of whether the public adjuster was licensed or not, the Insurance Commissioner may, at his discretion, in cases warranting such action, impose a civil penalty of not more than $5,000 for each and every violation of this act. (c)  Notice and hearing.—Before the Insurance Commissioner shall take any action as above set forth, he shall give written notice to the person accused of violating the law, stating specifically the nature of such alleged violation and fixing a time and place, at least ten days thereafter, when a hearing of the matter shall be held. After such hearing or upon failure of the accused to appear at such a hearing, the Insurance Commissioner shall impose such of the above penalties as he deems advisable. When the Insurance Commissioner shall have taken any actions as above set forth, the party aggrieved may appeal therefrom to the Commonwealth Court. (d)   Adjusters responsible for conduct of employees.—Any public adjuster employing, or using the services of, any person to solicit business shall be held fully responsible for the conduct of that person in connection with business dealings, including, but not limited to, making certain that such person has a valid license as a public adjuster. § 7.  Violations A person that willfully violates section 6(a)(1), (2), (3), (5), (6) or (12)3 shall be guilty of a felony of the third degree. A violation of another provision of this act shall constitute a misdemeanor and, upon conviction, a violator shall be sentenced to pay a fine of not less than $500 nor more than $1,000 for each violation and conviction. § 7.1.  Civil remedy In addition to the authority of the Attorney General under Article XI of the act of May 17, 1921 (P.L. 789, No. 285),4 known as The Insurance Department Act of 1921, and 18 Pa.C.S. § 4117 (relating to insurance fraud), if the Attorney General finds that there has been a violation of this act, the Attorney General may bring an action to impose a civil penalty and to seek other relief, including injunctive relief, under the act of December 17, 1968 (P.L. 1224, No. 387),5 known as the Unfair Trade Practices and Consumer Protection Law. § 8.   Administration and enforcement (a)   Insurance Commissioner to administer and enforce act.—The Insurance Commissioner is hereby charged with the administration and enforcement of this act and shall prescribe, publish, adopt and promulgate rules and regulations in connection herewith. (b)   Insurance Commissioner may bring actions.—The Insurance Commissioner or a duly authorized representative may maintain an action for an injunction or other process against any person or other entity to restrain and prevent any of the foregoing from transacting business as a public adjuster without a license. Any such action shall be instituted in the court of common pleas in any county where the alleged unlicensed activity occurred. Such court may issue a temporary restraining order or injunction under this act but shall determine any such action on its merits as soon as possible whether in term time or in

3. 63 P.S. § 1606. 4. 40 P.S. § 325.1 et seq. 5. 73 P.S. § 201-1 et seq.

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Part I Ch. 1–14 Brokers Part II Ch. 15–22 Deeds

vacation. No bond shall be required of and no costs shall be taxed against the Insurance Commissioner, his duly authorized representative or the department on account of any such action. (c)  Act to be supplementary.—The provisions of this act shall be constructed as supplementary to all other acts dealing with the same subject matter. No action brought under the provisions of this act shall prevent the prosecution or institution of any civil or criminal action otherwise provided by law for violation of any licensing act or departmental rule or regulation promulgated thereunder.

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PART IV

Part III Ch. 23–35 Mortgages Part IV Ch. 36–40 Insurance Part V Ch. 41–48A Zoning, etc. Part VI Ch. 49–56 Taxation Part VII Ch. 57–63 Litigation Part VIII Ch. 64–67 L/T Part IX Ch. 68–72 Condos, etc.

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CHAPTER 39 THE PENNSYLVANIA FAIR PLAN ACT 40 P.S. § 1600.101 to 40 P.S. § 1600.502

Sec. § § § § § § § § § § § § § § § § § § § § § § § § §

101. Short title 102. Purposes 103. Definitions 201. Industry placement facility 202. Fair plan 203. Distribution of risks 204. Uninsurable risks 205. Rules; regulations 206. Annual and other statements 207. Privileged communications 208. Appeals; judicial review 301. Formation of authority 302. Governing body; administration 303. Powers of authority 304. Civil Disorder Authority Fund 305. Reimbursement payments to Federal reinsurance facility; necessity for claim by Federal reinsurance facility; limitation on amount of payments 306. Bonds of authority 307. Remedies of bondholders 401. Basic property insurance assessment 402. Payment to Pennsylvania Civil Disorder Authority 403. Reports and statements 404. Effective date 405. Termination of assessment 501. Constitutionality 502. Effective date

§ 101.  Short title This act shall be known and may be cited as “The Pennsylvania Fair Plan Act.” § 102.  Purposes The purposes of this act are: (1)  To encourage stability in the property insurance market for property located in urban areas of this Commonwealth; (2)   To encourage maximum use, in obtaining basic property insurance, as defined in this act, of the normal insurance market provided by the private property insurance industry; (3)   To encourage the improvement of the condition of properties located in urban areas of this Commonwealth and to further orderly Community development generally; (4)  To provide for the formulation and administration by an Industry Placement Facility of a plan assuring fair access to insurance requirements (Fair Plan) in order that no property shall be denied basic property insurance through the normal insurance market provided by the private property insurance industry except after a physical inspection of such property and a fair evaluation of its individual underwriting characteristics; (5)  To publicize the purposes and procedures of the Fair Plan to the end that no one may fail to seek its assistance through ignorance thereof;

508

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Part V Ch. 41–48A Zoning, etc. Part VI Ch. 49–56 Taxation Part VII Ch. 57–63 Litigation Part VIII Ch. 64–67 L/T Part IX Ch. 68–72 Condos, etc. Index

gtb-parealestate22-all.indb 509

Part IV Ch. 36–40 Insurance

509

Part III Ch. 23–35 Mortgages

1. 40 P.S. § 361 et seq. 2. 40 P.S. § 477b.

Part II Ch. 15–22 Deeds

§ 103.  Definitions As used in this act, unless the context otherwise requires: (1)  “Commissioner” means the Insurance Commissioner of the Commonwealth of Pennsylvania; (2)  “Basic property insurance” means insurance against direct loss to real or tangible personal property at a fixed location caused by perils defined and limited in the standard fire policy prescribed in section 506 of the act of May 17, 1921 (P.L. 682), known as “The Insurance Company Law of 1921,”1 and in the extended coverage endorsement approved by the commissioner pursuant to section 354 of the act,2 and such vandalism, malicious mischief, burglary, theft, or such other classes of insurance as may be determined by the Industry Placement Facility with the approval of the commissioner, but shall not include insurance on motor vehicle, farm or such manufacturing risks as may be excluded by the commissioner; (3)  “Inspection bureau” means the organization or organizations designated by the Industry Placement Facility with the approval of the commissioner to inspect and to determine the condition of the properties for which basic property insurance is sought; (4)  “Urban area” means any municipality of the Commonwealth having a blighted, deteriorated or deteriorating area (i) which the Secretary of the Department of Housing and Urban Development of the United States has approved as eligible for an urban renewal project; or (ii) which has been designated as an urban area by the Industry Placement Facility with the approval of the commissioner; (5)  “Premiums written” means gross direct premiums charged on all policies of basic property insurance and the basic property insurance components of all multiple peril policies covering property in this Commonwealth less all premiums and dividends returned to policyholders and the unused or unabsorbed portions of premium deposits; (6)  “Government” means the Federal government and the government of the Commonwealth of Pennsylvania, or any agency or instrumentality, corporate or otherwise, of either of them; (7)  “Municipality” means any city, borough, incorporated town or township established in the Commonwealth of Pennsylvania; (8)  “Federal reinsurance facility” means any agency, or instrumentality thereof, or any body corporate, created by the Federal government for the purpose of providing reinsurance for losses resulting from riots and other civil disorders;

Part I Ch. 1–14 Brokers

(6)   To provide for the formulation and administration by the Industry Placement Facility of a reinsurance arrangement whereby property insurers shall share equitably the responsibility for insuring insurable property for which basic property insurance cannot be obtained through the normal insurance market; and (7)  To provide a framework for participation by the Commonwealth in a sharing of insured losses resulting from riots and other civil disorders occurring in this Commonwealth through the formation of a Pennsylvania Civil Disorder Authority, in order that insurance companies doing business within this Commonwealth may qualify for Federal reinsurance of such losses if Federal legislation providing for such reinsurance is enacted.

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§ 201

PENNSYLVANIA FAIR PLAN ACT

(9)  “Insurer” means any insurance company or group of companies under common ownership which is authorized to engage in the insurance business under the laws of any State, and also includes any pool or association of insurance companies formed, associated or otherwise created for the purpose of sharing risks written in accordance with this act. § 201.  Industry placement facility (a)   Membership. Each insurer which is authorized to write and is engaged in writing within this Commonwealth, on a direct basis, basic property insurance or any component thereof contained in a multiple peril policy, including homeowners and commercial multiple peril policies, shall participate in the Industry Placement Facility, as hereinafter described, as a condition of its authority to write such kinds of insurance within this Commonwealth. Other insurers may become members provided they are eligible unlicensed insurers under the act of January 24, 1966 (P.L. 1509).3 (b)   Purposes. The purposes of the Facility shall be twofold, as more fully set forth in this article: (1)  To formulate and administer, subject to the approval of the commissioner, a plan assuring fair access to insurance requirements (Fair Plan) in order that no property in urban areas shall be denied basic property insurance through the normal insurance market provided by the private property insurance industry, except after a physical inspection of such property and a fair evaluation of its individual underwriting characteristics; and (2)  To formulate and administer, subject to the approval of the commissioner, a reinsurance arrangement whereby the members of the Facility shall share equitably the responsibility for insuring property in urban areas which is insurable but for which basic property insurance cannot be obtained through the normal insurance market. (c)   Organization. Within forty-five days following the effective date of this act, the Industry Placement Facility shall submit to the commissioner for his review a proposed plan of operation of the Facility, consistent with the provisions of this act and the purposes of the Facility, which shall provide for the Fair Plan, the reinsurance arrangement, and the economical and  efficient administration of the Facility, including, but not limited to, management of the Facility, preliminary assessment of all members for initial expenses necessary to commence operations, establishment of necessary facilities within this Commonwealth, assessment of members to defray losses and expenses, commission arrangements, reasonable underwriting standards and limits of liability, acceptance and cession of reinsurance, and procedures for determining amounts of insurance to be provided. The plan of operation shall be subject to approval by the commissioner and shall take effect ten days after having been approved by him. If the commissioner disapproves the proposed plan of operation, the Facility shall within fifteen days submit for review an appropriately revised plan of operation and, if the Facility fails to do so, or if the revised plan so filed is unacceptable, the commissioner shall promulgate a plan of operation. (d)   Amendment of Plan of Operation of Facility. The Facility shall, on its own initiative, subject to prior approval by the commissioner, or at the direction of the commissioner, amend the plan of operation. (e)  Administration. (1) The Facility shall be governed by a board of seven directors, elected annually by the members of the Facility. Each member of the

3. 40 P.S. § 1006.1 et seq.

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Part III Ch. 23–35 Mortgages Part IV Ch. 36–40 Insurance Part V Ch. 41–48A Zoning, etc. Part VI Ch. 49–56 Taxation Part VII Ch. 57–63 Litigation Part VIII Ch. 64–67 L/T Part IX Ch. 68–72 Condos, etc. Index

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511

Part I Ch. 1–14 Brokers

Facility shall be allotted votes bearing the same ratio to the total number of votes to be cast as its degree of participation in the Facility bears to the total participation. Pending the determination of the degree of participation of the members in the Facility, each member of the Facility shall be allotted votes bearing the same ratio to the total number of votes to be cast as each member’s written premium on basic property insurance during calendar year 1967 bears to the statewide total written premium for basic property insurance during such year. The first board shall be elected at a meeting of the members or their authorized representatives. (2)   Any vacancy on the board shall be filled by a vote of the other directors. (3)   If at any time the members fail to elect the required number of directors or a vacancy remains unfilled for more than fifteen days, the commissioner may appoint the directors necessary to constitute a full board. (f)   Participation. All members of the Facility shall participate in its expenses and in its profits and losses (or in such categories thereof as may be separately established by the Facility) in the proportion that the premiums written (as herein defined, but excluding that portion, if any, of premiums which is attributable to the reinsurance arrangement maintained by the Facility) by each such member during the second preceding calendar year bear to the aggregate premiums written in this Commonwealth by all members of the Facility. Such participation by each member in the Facility shall be determined annually by the Facility on the basis of such premiums written during the second preceding calendar year as disclosed in the annual statements and other reports filed by the member with the commissioner. § 202.  Fair plan The Fair Plan shall contain provision that: (1) Any person having an insurable interest in real or tangible personal property at a fixed location in an urban area, his representative, an insurance agent or broker, or an insurer, may request the Facility for an inspection of the property by representatives of the Inspection Bureau, such inspection to be without cost to the applicant for insurance. The request for such inspection need not be made in writing. No such risk shall be written at surcharged rates or be denied insurance coverage for basic property insurance by an insurer unless such an inspection has first been made. (2)   The plan of operation of the Inspection Bureau, the manner and scope of the inspection, and the form of the inspection report, which shall include, but need not be limited to, pertinent structural and occupancy features as well as the general condition of the building and surrounding structures, shall be prescribed by the Industry Placement Facility subject to the approval of the commissioner. (3)   Promptly after the request for inspection is received by the Facility, if no policy has been issued, the inspection shall be made, a written inspection report prepared, and such report filed with the insurer or insurers, if any, designated by the applicant; a copy thereof shall be made available to the applicant or to his representative upon request. If no insurer has been designated by the applicant, the Facility shall proceed as in clause (7) below. (4)   After the inspection report is received by an insurer, it shall promptly determine if the risk meets reasonable underwriting standards at the applicable premium rate, including approved surcharges for physical characteristics, and shall promptly return to the Industry Placement Facility the inspection report and provide an action report setting forth: (i)   the amount of coverage it agrees to write, and if the insurer agrees to write the coverage with an approved surcharge, the improvements necessary before it will provide coverage at an unsurcharged premium rate;

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§ 202

PENNSYLVANIA FAIR PLAN ACT

(ii)   the amount of coverage it agrees to write if certain improvements to the property specified in the action report are made; or (iii)   the specific reasons for which it declines to write coverage. The inspection report and the action report shall be kept on file with the Facility. If the insurer declines the risk or agrees to write it on condition that the property be improved as specified, the insurer shall, at the time of returning the inspection and action reports to the Facility, send a copy of both reports to the applicant for insurance. The insurer shall advise the applicant at the time of sending the reports to him of his right to appeal such determination to the commissioner and shall advise the applicant of the means by which to initiate such an appeal. The inspection bureau shall submit to the commissioner periodic reports setting forth information by individual insurers including the number of risks inspected under the plan, the number of risks accepted, the number of risks conditionally accepted and reinspections made, the number of risks declined, and such other information as the commissioner may request. (5)   All policies written pursuant to the Fair Plan shall be promptly written after inspection or reinspection and shall be separately coded so that appropriate records may be compiled for purposes of rate-making, performing loss prevention and other studies of the operation of the Fair Plan. (6)  If any single insurer will underwrite only a portion of the full insurable value of the property, the Industry Placement Facility shall assist the owner and his agent or broker in obtaining the remaining coverage from other members of the Facility, except to the extent that deductibles, percentage participation clauses, and other accepted underwriting devices are needed to meet special problems of insurability. (7)   If no insurer to which an inspection report has been forwarded pursuant to clause (3) above agrees promptly to provide basic property insurance for the property in question, or if no insurer has been designated by the applicant, the Facility shall take appropriate action to ascertain whether any member of the Facility will provide basic property insurance for the subject property at the applicable premium rate, including approved surcharges for physical characteristics. (8)(i)   No insurer shall direct any agent or broker or other producer not to solicit business through the Fair Plan, and no agent, broker or other producer shall be penalized in any way by an insurer for submitting applications for insurance to it under the Fair Plan. (ii)  Records of insurance procured under the Fair Plan shall be maintained separate from other records of an agent’s or broker’s business conducted with an insurer. (9)  Written notice will be given to any policyholder at least twenty days prior to the cancellation or nonrenewal of any risk eligible under the Fair Plan (except in the case of nonpayment of premium or evidence of incendiarism), and the insurer shall, in the notice of cancellation or nonrenewal, explain to the policyholder the procedures for obtaining an inspection under the Plan. (10)  No agent or broker shall be permitted to refuse an application for basic property insurance within an urban area if he is licensed to write and is actively engaged in writing such insurance. (11)  A cooperative and continuing public education program shall be undertaken by the Pennsylvania Insurance Department, the Industry Placement Facility, and the members of the Facility to assure that the Fair Plan is given adequate publicity.

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Ch. 39

Part I Ch. 1–14 Brokers Part II Ch. 15–22 Deeds Part III Ch. 23–35 Mortgages Part IV Ch. 36–40 Insurance Part V Ch. 41–48A Zoning, etc. Part VI Ch. 49–56 Taxation Part VII Ch. 57–63 Litigation Part VIII Ch. 64–67 L/T Part IX Ch. 68–72 Condos, etc.

§ 203.  Distribution of risks (a)   The Facility shall have the power, on behalf of its members— (1)   to direct one or more of its members to issue policies of basic property insurance to applicants; (2)   to assume reinsurance from its members; and (3)   to cede reinsurance. (b)  Any member of the Facility may cede to the Facility basic property insurance covering property in urban areas, to the extent and on the terms and conditions set forth in the plan of operation of the Facility. (c)   If the Facility has been unable to obtain basic property insurance for any property through the voluntary action of its members pursuant to section 202 above, it shall promptly determine: (1)  whether the property is insurable (environmental hazard, being any hazardous condition that might give rise to loss under an insurance contract but which is beyond the control of the property owners, shall not be considered by the Facility in determining insurable condition); and (2)   whether there is any unpaid premium due from the applicant for prior insurance on the property. If the Facility determines that the property is insurable and that no such unpaid premium is due, it shall promptly cause one or more of its members to issue a policy or policies of basic property insurance at the applicable premium rate, including approved surcharges for physical characteristics, in the full insurable value of the property, for a term of one year, subject to total reinsurance of such risk by the Facility. § 204.  Uninsurable risks If the Facility finds that the property is not insurable, it shall promptly supply to the applicant a written statement setting forth the features or conditions of the property which prevent it from constituting an insurable risk and the measures, if any, which if taken would make the property an insurable risk. § 205.  Rules; regulations (a)  The commissioner may promulgate rules and regulations to assure the successful operation of the Facility, including the Fair Plan, and as may be necessary for the administration of this article. (b)   The operation of the Inspection Bureau and the Industry Placement Facility shall at all times be subject to the supervision and regulation of the commissioner. The commissioner, or any person designated by him, shall have the power of visitation of and examination into such operations at any time in the discretion of the commissioner. In connection therewith, the commissioner shall have the powers granted him by section 216 of the act of May 17, 1921 (P.L. 789), known as “The Insurance Department Act of one thousand nine hundred and twenty-one,”4 and the expenses of such examination shall be borne and paid as therein provided. § 206.  Annual and other statements The Inspection Bureau and the Industry Placement Facility shall each file with the commissioner annually on or before the first day of March a statement which shall contain information with respect to its transactions, condition, operations and affairs during the preceding year. Such statement shall contain such matters and information as are prescribed by the commissioner and shall be in such form as is approved by him. The commissioner may at any time require each

Table of Contents

PART IV

4. 40 P.S. § 54.

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Index

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§ 207

PENNSYLVANIA FAIR PLAN ACT

such organization to furnish him with additional information with respect to its transactions, condition, operations and affairs or any matter connected therewith which he considers to be material and which will assist him in evaluating the scope, operation and experience of such organization. § 207.  Privileged communications There shall be no liability on the part of, and no cause of action of any nature shall arise against insurers, the Inspection Bureau, the Industry Placement Facility, or their agents or employes, or the commissioner or his authorized representatives, for any statements made in good faith by them in any reports or communications concerning the property to be insured, or at the time of any hearings conducted in connection therewith, or in the findings required by the provisions of this article. The inspection reports and communications of the Inspection Bureau and the Industry Placement Facility shall not be considered public documents. § 208.  Appeals; judicial review (a)   Any applicant for insurance and any affected insurer may appeal to the commissioner within thirty days after any ruling, action or decision by or on behalf of the Inspection Bureau or Industry Placement Facility. After a hearing upon not less than ten days’ written notice to the aggrieved person and the Bureau or Facility, the commissioner shall issue an order approving the action or decision appealed from, disapproving such action or decision, or directing the Bureau or Facility to give further consideration to the matter. (b)  All hearings held by and all orders and decisions made by the commissioner pursuant to this article shall be subject to the provisions of the act of June 4, 1945 (P.L. 1388), known as the “Administrative Agency Law,”5 including the provisions therein for judicial review. § 301.  Formation of authority In order to make available to insurers which participate in the Industry Placement Facility the reinsurance afforded by the Federal reinsurance facility against losses resulting from riots and civil disorders, there is hereby created a separate and distinct body corporate and politic which shall be known as the “Pennsylvania Civil Disorder Authority.” The authority is hereby constituted an instrumentality of the Commonwealth, and the exercise by the authority of the powers conferred by this article shall be deemed and held to be an essential governmental function of the Commonwealth. § 302.  Governing body; administration The powers of the authority shall be exercised by a governing body (herein called the “board”) composed of the Attorney General of the Commonwealth, the Secretary of Revenue, and the Insurance Commissioner, who shall select from among themselves a chairman and a vice-chairman. The Treasurer of the Commonwealth shall be designated treasurer of the authority. The members of the board shall not be liable personally on the bonds or other obligations of the authority, and the rights of creditors shall be solely against the authority. The members of the board shall receive no compensation for their services as members but shall be entitled to reimbursement for all necessary expenses incurred in connection with the performance of their duties as members. The authority may employ a secretary, an executive director, its own counsel and legal staff, and such technical experts and other agents and employes, permanent or temporary, as it may require, and may determine the qualifications and fix the compensation of such persons. The authority may delegate to one or more of its agents or employes such of its powers as it shall deem necessary to 5. 71 P.S. § 1710.1 et seq. (repealed).

514

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HAZARD AND TITLE INSURANCE

Ch. 39

Part VI Ch. 49–56 Taxation Part VII Ch. 57–63 Litigation Part VIII Ch. 64–67 L/T Part IX Ch. 68–72 Condos, etc. Index

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Part V Ch. 41–48A Zoning, etc.

515

Part IV Ch. 36–40 Insurance

(c)   All moneys of the Fund, from whatever source derived, shall be paid to the treasurer of the authority and deposited by him in one or more banks or trust

Part III Ch. 23–35 Mortgages

§ 304.  Civil Disorder Authority Fund (a)   The authority shall establish a Civil Disorder Authority Fund (hereinafter called “the Fund”) which shall be available without fiscal year limitation: (1)   To make such payments as may, from time to time, be required by the Federal reinsurance facility; (2)   To pay proper administrative expenses of the authority; and (3)   To repay such obligations of the authority, including interest thereon, as may be incurred by the authority pursuant to the provisions of this article. (b)   The fund shall be credited with: (1)   Such amounts as may be advanced to the Fund from whatever source in order to maintain the Fund in a solvent condition and able to satisfy its obligations; (2)   Interest which may be earned on investments of the Fund; (3)   Moneys borrowed by the authority and deposited in the Fund; and (4)   Receipts from any other source which may, from time to time, be credited to the Fund.

Part II Ch. 15–22 Deeds

§ 303.  Powers of authority The authority shall exercise public powers of the Commonwealth as an agency thereof, including the following powers in addition to those herein otherwise granted: (1)   To cooperate with any government or municipality as herein defined; (2)   To act as agent of any government agency for the public purposes set out in this act; (3)   To borrow funds from private lenders or from the Commonwealth or the Federal government, as may be necessary for the operation and work of the authority, and to carry out the purposes and provisions of this act; (4)   To invest any funds held in reserves or sinking funds or any funds not required for immediate disbursement, in such investments as may be lawful for executors, administrators, guardians, trustees and other fiduciaries under the laws of this Commonwealth; (5)   To sue and be sued; (6)   To adopt a seal and to alter the same at pleasure; (7)  To make and execute contracts and other instruments necessary or convenient to the exercise of the powers of the authority, and any contract or instrument when signed by the chairman or vice-chairman of the authority, or by an authorized use of their facsimile signatures, and by the secretary or assistant secretary or treasurer or assistant treasurer of the authority, or by an authorized use of their facsimile signatures, shall be held to have been properly executed for and on its behalf; (8)   To make, to amend, and to repeal bylaws, rules, regulations and resolutions; (9)   To do all acts and things necessary or convenient to carry out the powers granted to it by this article or any other acts: Provided, however, That the authority shall have no power, at any time or in any manner, to pledge the credit or taxing power of the Commonwealth, nor shall any of its obligations be deemed to be obligations of the Commonwealth.

Part I Ch. 1–14 Brokers

carry out the purposes of this act, subject always to the supervision and control of the authority.

Table of Contents

PART IV

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§ 305

PENNSYLVANIA FAIR PLAN ACT

companies, in one or more special accounts, and each of such special accounts shall be continuously secured by a pledge of direct obligations of the United States of America or of the Commonwealth of Pennsylvania, having an aggregate market value, exclusive of accrued interest, at all times at least equal to the balance on deposit in such account. Such securities shall either be deposited with the treasurer or be held by a trustee or agent satisfactory to the authority. All banks and trust companies are authorized to give such security for such deposits. The moneys in said accounts shall be paid out on the warrant or other order of the treasurer of the authority or of such other person or persons as it may authorize to execute such warrants or orders. The Department of Revenue and the Auditor General of the Commonwealth and their legally authorized representatives are hereby authorized and empowered from time to time to examine the accounts and books of the authority and any other matters relating to its finances, operations and affairs. § 305.   Reimbursement payments to Federal reinsurance facility; necessity for claim by Federal reinsurance facility; limitation on amount of payments (a)   Payments under section 304(a)(1) hereof shall be made only upon direction of the Treasurer of the Commonwealth and after receipt by him of a claim from the Federal reinsurance facility. Prior to the making of such payment the authority shall make such investigation as it may deem appropriate in order to verify the correctness of the claim made by the Federal reinsurance facility. (b)   The total amount of any such payments made during any calendar year shall not exceed five per cent of the aggregate property insurance premiums earned in the Commonwealth during the preceding calendar year on those lines of insurance reinsured by the Federal reinsurance facility in the Commonwealth during the current year. § 306.  Bonds of authority (a)  Within thirty days following receipt of a direction from the Treasurer of the Commonwealth to make payment of a claim to the Federal reinsurance facility, the authority shall offer to sell bonds, the aggregate principal amount of which shall be adequate to pay the total amount of the claim received from the Federal reinsurance facility, subject to the limitation contained in section 305(b) above, plus the reasonable expenses of the sale, due consideration having been first given to the moneys at that time in the Fund and available for payment of the claim of the Federal reinsurance facility. (b)  The proceeds of the sale of such bonds shall be paid into the Fund and shall be used to satisfy the claim of the Federal reinsurance facility which occasioned the sale of such bonds; any amount remaining after satisfaction of such claim shall be held in the Fund and may be used for any of the purposes set forth in section 304. (c)   The bonds of the authority shall be authorized by resolution of the board or by and pursuant to an indenture of trust and shall be of such series, bear such date or dates, be stated to mature at such time or times, not exceeding thirty years from their respective dates, be issued as serial or term bonds, or as part serial and part term bonds, or any combination thereof, or as a single bond payable in installments, bear interest payable annually, semi-annually or quarterly, be in such denominations, be in such form, either as negotiable commercial paper, or as investment securities in bearer or registered form, carry such registration, exchangeability and interchangeability privileges, be payable in such medium of payment and at such place or places, be subject to such terms of redemption at such prices not exceeding one hundred six per cent of the principal amount thereof, and be entitled to such priorities in the revenues or receipts of the authority as such resolution or indenture may provide. The bonds shall be signed

516

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HAZARD AND TITLE INSURANCE

Ch. 39

Part I Ch. 1–14 Brokers Part II Ch. 15–22 Deeds Part III Ch. 23–35 Mortgages Part IV Ch. 36–40 Insurance Part V Ch. 41–48A Zoning, etc. Part VI Ch. 49–56 Taxation Part VII Ch. 57–63 Litigation Part VIII Ch. 64–67 L/T Part IX Ch. 68–72 Condos, etc.

manually or by facsimile by such officers as the authority shall determine, and coupon bonds shall have attached thereto interest coupons bearing the facsimile signature of the treasurer of the authority, all as may be prescribed in such resolution or indenture. No bond shall be issued or delivered without at least one manual signature, which may be that of an officer of the fiscal agent or of the trustee under the relevant resolution or indenture. Any such bonds may be issued and delivered notwithstanding that one or more of the officers signing such bonds, or the treasurer whose facsimile signature shall be upon the coupons or any thereof, shall have ceased to be such officer or officers at the time when such bonds shall actually be delivered. (d)  Such bonds shall be sold to the highest responsible bidder or bidders proposing the lowest net interest cost to the authority, determined by computing the interest on the bonds to their stated maturity dates and adding thereto the discount or subtracting therefrom the premium specified in such bid, after public notice, by two advertisements in not less than three nor more than five newspapers of large general circulation in different parts of the Commonwealth, the first advertisement to be published not less than twenty days and the second not less than five days before the day fixed for the opening of bids. No bonds shall be sold if the net interest cost, computed to stated maturity dates of the bonds, of the money received for any issue of such bonds shall exceed six per cent a year. The advertisement of sale shall contain a general description of the bonds, the manner, place and time of the sale, or the time limit for the receipt of proposals, the name of the officer to whom, or to whose designee, bids or proposals shall be delivered, and a statement of the terms and conditions of sale: Provided, however, That any of said bonds may be sold to the State Employes’ Retirement Board, School Employes’ Retirement Board,6 or to any other custodial board or fund, or to State Employes’ Retirement Fund, or by private placement with a group of not more than twenty-five ultimate investors who purchase for investment and not with a view to distribution, without advertisement or competitive bidding. Pending the preparation of the definitive bonds, interim receipts or temporary bonds may be issued to the purchaser or purchasers of such bonds and may contain such terms and conditions as the authority may determine. (e)   Any resolution or indenture authorizing any bonds may contain provisions which shall be part of the contract with the holders thereof as to: (1)   Pledging the full faith and credit of the authority (but not of the Commonwealth or any political subdivision thereof) for such bonds or restricting the same to all or any of the revenues or receipts of the authority; (2)   The terms and provisions of the bonds; (3)   The setting aside of reserves or sinking funds and the regulation and disposition thereof; (4)   Any terms and provisions for the security of the bonds or under which the same may be issued; (5)   Any other or additional agreements with the holders of the bonds. (f)   The authority may enter into any indentures of trust, or other agreements with any bank or trust company or other person or persons in the United States having power to enter into the same, or may designate any such as fiscal agent under a bond resolution, in order to provide for the security for such bonds, and may assign and pledge all or any of the revenues or receipts of the authority thereunder. Such indenture, resolution, or other agreement may contain such provisions as may be customary in such instruments or as the authority may authorize, including provisions as to:

Table of Contents

PART IV

6. Enrolled bill omitted “School Employes’ Retirement Board”.

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Index

517

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§ 307

PENNSYLVANIA FAIR PLAN ACT

(1)   The application of funds and the safeguarding of funds on hand, invested or on deposit; (2)   The rights and remedies of said trustees or fiscal agent and the holders of the bonds (which may include restrictions upon the individual right of action of such bondholders); and (3)   The terms and provisions of the bonds or the resolutions or indentures authorizing the issuance of the same. § 307.  Remedies of bondholders The rights and the remedies herein conferred upon or granted to the bondholders shall be in addition to and not in limitation of any rights and remedies lawfully granted to such bondholders by the resolution or indenture providing for the issuance of bonds. If the authority shall default in the payment of the interest on any of the bonds after the same shall become due, and such default shall continue for a period of thirty days, or if the authority shall default in the payment of principal after the same shall become due whether at maturity or upon any unrevoked call for redemption, or if the authority shall fail or refuse to comply with the provisions of this act or shall default in any agreement made with the holder of the bonds, the holders of twenty-five per cent in aggregate principal amount of bonds then outstanding under the indenture or bond resolution involved, by instrument or instruments filed in the Office of the Recorder of Deeds of the County of Dauphin and proved or acknowledged in the same manner as a deed to be recorded, may (except as such right may be limited under the provisions of any indenture or other agreement as aforesaid) appoint a trustee to represent the bondholders for the purposes herein provided. Such trustee or any trustee under any indenture or the fiscal agent under any resolution or other agreement may, and upon written request of the holders of twenty-five per cent (or such other percentage as may be specified in any resolution, indenture or other agreement aforesaid) in principal amount of the bonds then outstanding under such indenture or resolution shall, in his or its own name— (1)  By mandamus or other suit, action or proceeding at law or in equity, enforce all rights of the bondholders, including the right to require the authority to carry out any agreement as to, or pledge of, the revenues or receipts of the authority and to require the authority to carry out any other agreements with, or for the benefit of, the bondholders, and to perform its duties under this act; (2)   Bring suit upon the bonds; (3)   By action or suit in equity, require the authority to account as if it were the trustees of an express trust for the bondholders; (4)  By action or suit in equity, enjoin any acts or things which may be unlawful, or in violation of the rights of the bondholders; or (5)   By notice in writing to the authority, declare all bonds due and payable and, if all defaults shall be made good, then with the consent of the holders of twenty-five percent (or such other percentage as may be specified in any indenture, resolution or other agreement aforesaid) of the principal amount of the bonds then outstanding, to annul such declaration and its consequences. § 401.  Basic property insurance assessment In order to provide for the payment of the principal of and interest on bonds of the authority, issued pursuant to section 306 of this act, an assessment is hereby levied on each insurer which is a member of the Industry Placement Facility. The amount of such assessment shall be two per cent of the aggregate gross premiums received by such insurer for policies of basic property insurance, or any component thereof, including homeowners and commercial multiple peril policies, written within this Commonwealth.

518

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HAZARD AND TITLE INSURANCE

Ch. 39

Part I Ch. 1–14 Brokers Part II Ch. 15–22 Deeds Part III Ch. 23–35 Mortgages Part IV Ch. 36–40 Insurance Part V Ch. 41–48A Zoning, etc. Part VI Ch. 49–56 Taxation Part VII Ch. 57–63 Litigation Part VIII Ch. 64–67 L/T

§ 402.  Payment to Pennsylvania Civil Disorder Authority Every insurer shall, on or before the fifteenth day of April of each year, compute and pay to the Treasurer of the Pennsylvania Civil Disorder Authority the aggregate assessments due upon the gross premiums received by it for basic property insurance written within the Commonwealth during the calendar year immediately preceding said payment date. Said aggregate assessments shall bear interest at the rate of six per cent per annum from the date the same are due and payable to the authority until payment is made. § 403.  Reports and statements The commissioner may at any time require any insurer to furnish him with such information as he, in his discretion, may deem necessary in order to determine whether or not such insurer is complying with the provisions of this article. § 404.  Effective date The assessment provided for herein shall be collectible on all policies of basic property insurance, or any component thereof, including home-owners and commercial multiple peril policies, written on and after the thirtieth day following issuance by the authority of its bonds pursuant to section 306 of this act. § 405.  Termination of assessment The assessment imposed by this article shall remain in full force and effect until all bonds issued by the Pennsylvania Civil Disorder Authority have been retired, and shall thereafter terminate at such time and upon such terms and conditions as shall be specified by the board of the authority. § 501.  Constitutionality If any provision or clause of this act or the application thereof to any person or situation is held invalid, such invalidity shall not affect other provisions or applications of the act which can be given effect without the invalid provision or application, and to this end the provisions of this act are declared to be severable. § 502.  Effective date (a)   This act shall take effect upon the effective date of the establishment of the Federal reinsurance facility. (b)(1)  Policies issued pursuant to the direction of and other obligations incurred by the Industry Placement Facility shall not be impaired by the termination of the Federal reinsurance facility and such Industry Placement Facility shall be continued for the purpose of servicing such policies and performing such obligations; (2)  All bonds issued and other obligations incurred by the Pennsylvania Civil Disorder Authority shall not be impaired by the termination of the Federal reinsurance facility and such authority shall be continued for the purpose of servicing such bonds and performing such obligations; and (3)   The collection of the basic property insurance assessment shall terminate as provided in section 405 of this act.

Table of Contents

PART IV

Part IX Ch. 68–72 Condos, etc.

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Index

519

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CHAPTER 40 MORTGAGE PROPERTY INSURANCE COVERAGE ACT 7 P.S. § 6701–6703

Sec.

§ 1. Short title § 2. Definitions § 3. Restriction

§ 1.  Short title This act shall be known and may be cited as the Mortgage Property Insurance Coverage Act. § 2.  Definitions The following words and phrases when used in this act shall have the meanings given to them in this section unless the context clearly indicates otherwise: “Lender.” Any bank, savings bank, savings and loan association, credit union, mortgage bank, mortgage broker, finance company, consumer discount company or other financial institution or person that lends money to a borrower and secures the loan by a mortgage given by the borrower on real property or by placing a lien against real property. “Property insurance coverage.” Real property insurance covering owneroccupied private residential properties against losses caused by perils that commonly are covered in insurance policies described with terms similar to “standard fire” or “standard fire with extended coverage.” § 3.  Restriction No lender may require a borrower, as a condition of obtaining or maintaining a secured loan, to obtain property insurance coverage which exceeds the replacement value of buildings and structures situate on the land used to secure the loan. A borrower on a loan secured by real property may not be required to insure the value of the land.

520

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12/22/21 10:45 AM

Table of Contents

PART V Part I Ch. 1–14 Brokers

ZONING, PLANNING, AND GOVERNMENT REGULATION 41. Municipalities Planning Code 41.1. Development Permit Extension Act 42. Eminent Domain Code 43. Municipal Code and Ordinance Compliance 44. Crimes and Offenses 45. Divorce and Domestic Violence Property Rights 46. Nuisances and Recreational Use of Land 47. Pennsylvania Human Relations Act 48. Abandoned and Blighted Property Conservatorship Act

CHAPTER 41

Part III Ch. 23–35 Mortgages

Chapter Chapter Chapter Chapter Chapter Chapter Chapter Chapter Chapter

Part II Ch. 15–22 Deeds



MUNICIPALITIES PLANNING CODE General Provisions Planning Agencies Comprehensive Plan Official Map Subdivision and Land Development Municipal Capital Improvement Zoning Planned Residential Development Traditional Neighborhood Development Zoning Challenges; General Provisions (Repealed) Joint Municipal Zoning Zoning Hearing Board and Other Administrative Proceedings Appeals (Repealed) Appeals to Court Joint Municipal Planning Commissions Joint Municipal Zoning (Repealed) Repeals

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Index

521

Part IX Ch. 68–72 Condos, etc.

101. Short title 102. Effective date 103. Construction of act 104. Constitutional construction 105. Purpose of act 106. Appropriations, grants and gifts 107. Definitions 108. Optional notice of ordinance or decision; procedural validity challenges 109. Notice 201. Creation of planning agencies 202. Planning commission 203. Appointment, term and vacancy 204. Repealed 205. Membership 206. Removal 207. Conduct of business 208. Planning department director 209. Repealed 209.1. Powers and duties of planning agency 210. Administrative and technical assistance

Part VIII Ch. 64–67 L/T

§ § § § § § § § § § § § § § § § § § § §

Part VII Ch. 57–63 Litigation

Sec.

Part VI Ch. 49–56 Taxation

I II III IV V V-A VI VII VII-A VIII VIII-A IX X X-A XI XI-A XII

Part V Ch. 41–48A Zoning, etc.

Article Article Article Article Article Article Article Article Article Article Article Article Article Article Article Article Article

Part IV Ch. 36–40 Insurance

53 P.S. § 10101 to 53 P.S. § 11202

12/22/21 10:45 AM



MUNICIPALITIES PLANNING CODE

§ § § § § § § § §

211. Assistance 212. Intergovernmental cooperation 301. Preparation of comprehensive plan 301.1. Energy conservation plan element 301.2. Surveys by planning agency 301.3. Submission of plan to county planning agency 301.4. Compliance by counties 301.5. Funding of municipal planning 302. Adoption of Municipal, Multimunicipal and County Comprehensive Plans and Plan Amendments 303. Legal status of comprehensive plan within the jurisdiction that adopted the plan 304. Legal status of county comprehensive plans within municipalities 305. The legal status of comprehensive plans within school districts 306. Municipal and county comprehensive plans 307. State Land Use and Growth Management Report 401. Grant of power 402. Adoption of the official map and amendments thereto 403. Effect of approved plats on official map 404. Effect of official map on mapped streets, watercourses and public grounds 405. Buildings in mapped streets, watercourses or other public grounds 406. Time limitations on reservations for future taking 407. Release of damage claims or compensation 408. Notice to other municipalities 501. Grant of power 502. Jurisdiction of county planning agencies; adoption by reference of county subdivision and land development ordinances 502.1. Contiguous municipalities 503. Contents of subdivision and land development ordinance 503.1. Water supply 504. Enactment of subdivision and land development ordinance 505. Enactment of subdivision and land development ordinance amendment 506. Publication, advertisement and availability of ordinance 507. Effect of subdivision and land development ordinance 508. Approval of plats 508.1. Notice to School District. 509. Completion of improvements or guarantee thereof prerequisite to final plat approval 510. Release from improvement bond 511. Remedies to effect completion of improvements 512. Repealed 512.1. Modifications 513. Recording plats and deeds 514. Effect of plat approval on official map 515. Repealed 515.1. Preventive remedies 515.2. Jurisdiction 515.3. Enforcement remedies 516. Repealed 501-A. Purposes 502-A. Definitions 503-A. Grant of power 504-A. Transportation capital improvements plan 505-A. Establishment and administration of impact fees 506-A. Appeals 507-A. Prerequisites for assessing sewer and water tap-in fees 508-A. Joint Municipal Impact Fee Ordinance 601. General powers 602. County powers 602.1. County review; dispute resolution 603. Ordinance provisions 603.1. Interpretation of ordinance provisions 604. Zoning purposes

§ § § § § § § § § § § § § § § § § § § § § § § § § § § § § § § § § § § § § § § § § § § § § § § § § §

522

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GOVERNMENT REGULATION

Part IV Ch. 36–40 Insurance Part V Ch. 41–48A Zoning, etc. Part VI Ch. 49–56 Taxation Part VII Ch. 57–63 Litigation Part VIII Ch. 64–67 L/T Part IX Ch. 68–72 Condos, etc. Index

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Part III Ch. 23–35 Mortgages

523

Part II Ch. 15–22 Deeds

605. Classifications 606. Statement of community development objectives 607. Preparation of proposed zoning ordinance 608. Enactment of zoning ordinance 608.1. Municipal authorities and water companies 609. Enactment of zoning ordinance amendments 609.1. Procedure for landowner curative amendments 609.2. Procedure upon municipal curative amendments 610. Publication, advertisement and availability of ordinances 611. Repealed 612. Repealed 613. Registration of nonconforming uses, structures and lots 614. Appointment and powers of zoning officer 615. Zoning appeals 616. Repealed 616.1. Enforcement notice 617. Causes of action 617.1. Jurisdiction 617.2. Enforcement remedies 617.3. Finances and expenditures 618. Repealed 619. Exemptions 619.1. Transferable development rights 619.2. Effect of comprehensive plans and zoning ordinances 620. Repealed 621. Prohibiting the location of methadone treatment facilities in certain locations 701. Purposes 702. Grant of power 702.1. Transferable development rights 703. Applicability of comprehensive plan and statement of community development objectives § 704. Jurisdiction of county planning agencies § 705. Standards and conditions for planned residential development § 706. Enforcement and modification of provisions of the plan § 707. Application for tentative approval of planned residential development § 708. Public hearings § 709. The findings § 710. Status of plan after tentative approval § 711. Application for final approval § 712. Repealed § 712.1. Jurisdiction § 712.2. Enforcement remedies § 713. Compliance by municipalities § 701-A. Purposes and objectives § 702-A. Grant of power § 703-A. Transferable development rights § 704-A. Applicability of comprehensive plan and statement of community development objectives § 705-A. Forms of traditional neighborhood development § 706-A. Standards and conditions for traditional neighborhood development § 707-A. Sketch Plan Presentation § 708-A. Manual of written and graphic design guidelines § 708.1-A. Subdivision and land development ordinance provisions applicable to traditional neighborhood development § 709-A. Applicability of article to agriculture § 801. Repealed § 802. Repealed § 801-A. General powers § 802-A. Relation to county and municipal zoning § 803-A. Ordinance provisions § 804-A. Zoning purposes § 805-A. Classifications § 806-A. Statement of community development objectives

Part I Ch. 1–14 Brokers

§ § § § § § § § § § § § § § § § § § § § § § § § § § § § § §

Ch. 41

Table of Contents

PART V

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MUNICIPALITIES PLANNING CODE

§ 807-A. Preparation of proposed zoning ordinance § 808-A. Enactment of zoning ordinance § 809-A. Enactment of zoning ordinance amendments § 810-A. Procedure for curative amendments § 811-A. Area of jurisdiction for challenges § 812-A. Procedure for joint municipal curative amendments § 813-A. Publication, advertisement and availability of ordinances § 814-A. Registration of nonconforming uses § 815-A. Administration § 816-A. Zoning appeals § 817-A. Enforcement penalties § 818-A. Enforcement remedies § 819-A. Finances § 820-A. Exemptions § 821-A. Existing bodies § 901. General provisions § 902. Repealed § 903. Membership of board § 904. Joint zoning hearing boards § 905. Removal of members § 906. Organization of board § 907. Expenditures for services § 908. Hearings § 908.1. Mediation option § 909. Repealed § 909.1. Jurisdiction § 910. Repealed § 910.1. Applicability of judicial remedies § 910.2. Zoning hearing board’s functions; variances § 911. Repealed § 912. Repealed § 912.1. Zoning hearing board’s functions; special exception § 913. Repealed § 913.1. Repealed § 913.2. Governing body’s functions; conditional uses § 913.3. Parties appellant before the board § 914. Repealed § 914.1. Time limitations § 915. Repealed § 915.1. Stay of proceedings § 916. Repealed § 916.1. Validity of ordinance; substantive questions § 916.2. Procedure to obtain preliminary opinion § 917. Applicability of ordinance amendments § 918. Special applicability provisions § 1001. Repealed § 1002. Repealed §§ 1003 to Repealed  1011. § 1012. Repealed § 1001-A. Land use appeals § 1002-A. Jurisdiction and venue on appeal; time for appeal § 1003-A. Appeals to court; commencement; stay of proceedings § 1004-A. Intervention § 1005-A. Hearing and argument of land use appeal § 1006-A. Judicial relief § 1101. Purposes § 1102. Intergovernmental cooperative planning and implementation agreements § 1103. County or multimunicipal comprehensive plans § 1104. Implementation agreements § 1105. Legal effect § 1106. Specific plans § 1107. Saving clause

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Ch. 41

1101-A. Definitions. 1102-A. Notification requirement. 1103-A. Review by wastewater system officials. 1104-A. Applicability. 1201. Specific repeals 1202. General repeal

Part I Ch. 1–14 Brokers

§ § § § § §

GOVERNMENT REGULATION

Table of Contents

PART V

Part II Ch. 15–22 Deeds

ARTICLE I General Provisions

§ 102.  Effective date This act shall take effect January 1, 1969.

Part III Ch. 23–35 Mortgages

§ 101.  Short title This act shall be known and may be cited as the “Pennsylvania Municipalities Planning Code.”

Part IV Ch. 36–40 Insurance

§ 104.  Constitutional construction The provisions of this act shall be severable, and if any of its provisions shall be held to be unconstitutional, the validity of any of the remaining provisions of this act shall not be affected. It is hereby declared as the legislative intention that this act would have been adopted had such unconstitutional provision not been included therein.

Part VI Ch. 49–56 Taxation Part IX Ch. 68–72 Condos, etc. Index

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Part VIII Ch. 64–67 L/T

525

Part VII Ch. 57–63 Litigation

§ 105.  Purpose of act It is the intent, purpose and scope of this act to protect and promote safety, health and morals; to accomplish coordinated development; to provide for the general welfare by guiding and protecting amenity, convenience, future governmental, economic, practical, and social and cultural facilities, development and growth, as well as the improvement of governmental processes and functions; to guide uses of land and structures, type and location of streets, public grounds and other facilities; to promote the conservation of energy through the use of planning practices and to promote the effective utilization of renewable energy sources; to promote the preservation of this Commonwealth’s natural and historic resources and prime agricultural land; to encourage municipalities to adopt municipal or joint municipal comprehensive plans generally consistent with the county comprehensive plan; to promote small business development and foster a business-friendly environment in this Commonwealth; to ensure that municipalities adopt zoning ordinances which are generally consistent with the municipality’s comprehensive plan; to encourage the preservation of prime agricultural land and natural and historic resources through easements, transfer of development rights and rezoning; to

Part V Ch. 41–48A Zoning, etc.

§ 103.  Construction of act The provisions of this act shall not affect any act done, contract executed or liability incurred prior to its effective date, or affect any suit or prosecution pending or to be instituted, to enforce any right, rule, regulation, or ordinance or to punish any offense against any such repealed laws or against any ordinance enacted under them. All ordinances, resolutions, regulations and rules made pursuant to any act of Assembly repealed by this act shall continue in effect as if such act had not been repealed, except as the provisions are inconsistent herewith. The provisions of other acts relating to municipalities other than cities of the first and second class and counties of the second class are made a part of this act and this code shall be construed to give effect to all provisions of other acts not specifically repealed.

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ensure that municipalities enact zoning ordinances that facilitate the pres­ent and future economic viability of existing agricultural operations in this Commonwealth and do not prevent or impede the owner or operator’s need to change or expand their operations in the future in order to remain viable; to encourage the revitalization of established urban centers; and to permit municipalities to minimize such problems as may presently exist or which may be foreseen and wherever the provisions of this act promote, encourage, require or authorize governing bodies to protect, preserve or conserve open land, consisting of natural resources, forests and woodlands, any actions taken to protect, preserve or conserve such land shall not be for the purposes of precluding access for forestry. § 106.  Appropriations, grants and gifts The governing body of every municipality is hereby authorized and empowered to make such appropriations as it may see fit, to accept gifts, grants or bequests from public and private sources for the purpose of carrying out the powers and duties conferred by this act, and to enter into agreements regarding the acceptance or utilization of such grants, gifts or bequests. § 107.  Definitions (a)  The following words and phrases when used in this act shall have the meanings given to them in this subsection unless the context clearly indicates otherwise: “Agricultural operation,” an enterprise that is actively engaged in the commercial production and preparation for market of crops, livestock and livestock products and in the production, harvesting and preparation for market or use of agricultural, agronomic, horticultural, silvicultural and aquacultural crops and commodities. The term includes an enterprise that implements changes in production practices and procedures or types of crops, livestock, livestock products or commodities produced consistent with practices and procedures that are normally engaged by farmers or are consistent with technological development within the agricultural industry. “Applicant,” a landowner or developer, as hereinafter defined, who has filed an application for development including his heirs, successors and assigns. “Application for development,” every application, whether preliminary, tentative or final, required to be filed and approved prior to start of construction or development including but not limited to an application for a building permit, for the approval of a subdivision plat or plan or for the approval of a development plan. “Appointing authority,” the mayor in cities; the board of commissioners in counties; the council in incorporated towns and boroughs; the board of commissioners in townships of the first class; and the board of supervisors in townships of the second class; or as may be designated in the law providing for the form of government. “Authority,” a body politic and corporate created pursuant to the act of May 2, 1945 (P.L. 382, No. 164),1 known as the “Municipality Authorities Act of 1945.” “Center for Local Government Services.” The Governor’s Center for Local Government Services located within the Department of Community and Economic Development. “City” or “cities,” cities of the second class A and third class. “Common open space,” a parcel or parcels of land or an area of water, or a combination of land and water within a development site and designed and intended for the use or enjoyment of residents of a development, not including streets, off-street parking areas, and areas set aside for public facilities.

1. 53 P.S. § 301 et seq.

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GOVERNMENT REGULATION

Ch. 41

Part IV Ch. 36–40 Insurance Part V Ch. 41–48A Zoning, etc. Part VI Ch. 49–56 Taxation Part VII Ch. 57–63 Litigation Part VIII Ch. 64–67 L/T Part IX Ch. 68–72 Condos, etc. Index

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Part III Ch. 23–35 Mortgages

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Part II Ch. 15–22 Deeds

2. 53 P.S. § 10601 et seq.

Part I Ch. 1–14 Brokers

“Conditional use,” a use permitted in a particular zoning district pursuant to the provisions in Article VI.2 “Consistency,” an agreement or correspondence between matters being compared which denotes a reasonable, rational, similar connection or relationship. “County,” any county of the second class through eighth class. “County comprehensive plan,” a land use and growth management plan prepared by the county planning commission and adopted by the county commissioners which establishes broad goals and criteria for municipalities to use in preparation of their comprehensive plans and land use regulation. “Designated growth area,” a region within a county or counties described in a municipal or multimunicipal plan that preferably includes and surrounds a city, borough or village and within which residential and mixed use development is permitted or planned for at densities of one unit to the acre or more, commercial, industrial and institutional uses are permitted or planned for and public infrastructure services are provided or planned. “Developer,” any landowner, agent of such landowner, or tenant with the permission of such landowner, who makes or causes to be made a subdivision of land or a land development. “Development plan,” the provisions for development, including a planned residential development, a plat of subdivision, all covenants relating to use, location and bulk of buildings and other structures, intensity of use or density of development, streets, ways and parking facilities, common open space and public facilities. The phrase “provisions of the development plan” when used in this act shall mean the written and graphic materials referred to in this definition. “Development of regional significance and impact,” any land development that, because of its character, magnitude or location, will have substantial effect upon the health, safety or welfare of citizens in more than one municipality. “Electronic notice,” notice given by a municipality through the Internet of the time and place of a public hearing and the particular nature of the matter to be considered at the hearing. “Forestry,” the management of forests and timberlands when practiced in accordance with accepted silvicultural principles, through developing, cultivating, harvesting, transporting and selling trees for commercial purposes, which does not involve any land development. “Future growth area,” an area of a municipal or multimunicipal plan outside of and adjacent to a designated growth area where residential, commercial, industrial and institutional uses and development are permitted or planned at varying densities and public infrastructure services may or may not be provided, but future development at greater densities is planned to accompany the orderly extension and provision of public infrastructure services. “General consistency, generally consistent,” that which exhibits consistency. “Governing body,” the council in cities, boroughs and incorporated towns; the board of commissioners in townships of the first class; the board of supervisors in townships of the second class; the board of commissioners in counties of the second class through eighth class or as may be designated in the law providing for the form of government. “Land development,” any of the following activities: (1)  The improvement of one lot or two or more contiguous lots, tracts or parcels of land for any purpose involving:

Table of Contents

PART V

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§ 107

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(i)   a group of two or more residential or nonresidential buildings, whether proposed initially or cumulatively, or a single nonresidential building on a lot or lots regardless of the number of occupants or tenure; or (ii)   the division or allocation of land or space, whether initially or cumulatively, between or among two or more existing or prospective occupants by means of, or for the purpose of streets, common areas, leaseholds, condominiums, building groups or other features. (2)   A subdivision of land. (3)   Development in accordance with section 503(1.1).3 “Landowner,” the legal or beneficial owner or owners of land including the holder of an option or contract to purchase (whether or not such option or contract is subject to any condition), a lessee if he is authorized under the lease to exercise the rights of the landowner, or other person having a proprietary interest in land. “Lot,” a designated parcel, tract or area of land established by a plat or otherwise as permitted by law and to be used, developed or built upon as a unit. “Mailed notice,” notice given by a municipality by first class mail of the time and place of a public hearing and the particular nature of the matter to be considered at the hearing. “Mediation,” a voluntary negotiating process in which parties in a dispute mutually select a neutral mediator to assist them in jointly exploring and settling their differences, culminating in a written agreement which the parties themselves create and consider acceptable. “Minerals,” any aggregate or mass of mineral matter, whether or not coherent. The term includes, but is not limited to, limestone and dolomite, sand and gravel, rock and stone, earth, fill, slag, iron ore, zinc ore, vermiculite and clay, anthracite and bituminous coal, coal refuse, peat and crude oil and natural gas. “Mobilehome,” a transportable, single family dwelling intended for permanent occupancy, contained in one unit, or in two or more units designed to be joined into one integral unit capable of again being separated for repeated towing, which arrives at a site complete and ready for occupancy except for minor and incidental unpacking and assembly operations, and constructed so that it may be used without a permanent foundation. “Mobilehome lot,” a parcel of land in a mobilehome park, improved with the necessary utility connections and other appurtenances necessary for the erections thereon of a single mobilehome. “Mobilehome park,” a parcel or contiguous parcels of land which has been so designated and improved that it contains two or more mobilehome lots for the placement thereon of mobilehomes. “Multimunicipal plan,” a plan developed and adopted by any number of contiguous municipalities, including a joint municipal plan as authorized by this act, except that all of the municipalities participating in the plan need not be contiguous if all of them are within the same school district. “Multimunicipal planning agency,” a planning agency comprised of representatives of more than one municipality and constituted as a joint municipal planning commission in accordance with Article XI, or otherwise by resolution of the participating municipalities, to address on behalf of the participating municipalities multimunicipal issues, including, but not limited to, agricultural and open space preservation, natural and historic resources, transportation, housing and economic development. 3. 53 P.S. § 10503(1.1).

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GOVERNMENT REGULATION

Ch. 41

Part IV Ch. 36–40 Insurance Part V Ch. 41–48A Zoning, etc. Part VI Ch. 49–56 Taxation Part VII Ch. 57–63 Litigation Part VIII Ch. 64–67 L/T Part IX Ch. 68–72 Condos, etc. Index

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Part III Ch. 23–35 Mortgages

529

Part II Ch. 15–22 Deeds

4. 53 P.S. § 10401 et seq.

Part I Ch. 1–14 Brokers

“Municipal authority,” a body politic and corporate created pursuant to the act of May 2, 1945 (P.L. 382, No. 164), known as the “Municipality Authorities Act of 1945.” “Municipal engineer,” a professional engineer licensed as such in the Commonwealth of Pennsylvania, duly appointed as the engineer for a municipality, planning agency or joint planning commission. “Municipality,” any city of the second class A or third class, borough, incorporated town, township of the first or second class, county of the second class through eighth class, home rule municipality, or any similar general purpose unit of government which shall hereafter be created by the General Assembly. “No-impact home-based business,” a business or commercial activity administered or conducted as an accessory use which is clearly secondary to the use as a residential dwelling and which involves no customer, client or patient traffic, whether vehicular or pedestrian, pickup, delivery or removal functions to or from the premises, in excess of those normally associated with residential use. The business or commercial activity must satisfy the following requirements: (1)   The business activity shall be compatible with the residential use of the property and surrounding residential uses. (2)  The business shall employ no employees other than family members residing in the dwelling. (3)   There shall be no display or sale of retail goods and no stockpiling or inventory of a substantial nature. (4)   There shall be no outside appearance of a business use, including, but not limited to, parking, signs or lights. (5)   The business activity may not use any equipment or process which creates noise, vibration, glare, fumes, odors or electrical or electronic interference, including interference with radio or television reception, which is detectable in the neighborhood. (6)   The business activity may not generate any solid waste or sewage discharge in volume or type which is not normally associated with residential use in the neighborhood. (7)   The business activity shall be conducted only within the dwelling and may not occupy more than 25% of the habitable floor area. (8)   The business may not involve any illegal activity. “Nonconforming lot,” a lot the area or dimension of which was lawful prior to the adoption or amendment of a zoning ordinance, but which fails to conform to the requirements of the zoning district in which it is located by reasons of such adoption or amendment. “Nonconforming structure,” a structure or part of a structure manifestly not designed to comply with the applicable use or extent of use provisions in a zoning ordinance or amendment heretofore or hereafter enacted, where such structure lawfully existed prior to the enactment of such ordinance or amendment or prior to the application of such ordinance or amendment to its location by reason of annexation. Such nonconforming structures include, but are not limited to, nonconforming signs. “Nonconforming use,” a use, whether of land or of structure, which does not comply with the applicable use provisions in a zoning ordinance or amendment heretofore or hereafter enacted, where such use was lawfully in existence prior to the enactment of such ordinance or amendment, or prior to the application of such ordinance or amendment to its location by reason of annexation. “Official map,” a map adopted by ordinance pursuant to Article IV.4

Table of Contents

PART V

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“Planned residential development,” an area of land, controlled by a landowner, to be developed as a single entity for a number of dwelling units, or combination of residential and nonresidential uses, the development plan for which does not correspond in lot size, bulk, type of dwelling, or use, density, or intensity, lot coverage and required open space to the regulations established in any one district created, from time to time, under the provisions of a municipal zoning ordinance. “Planning agency,” a planning commission, planning department, or a planning committee of the governing body. “Plat,” the map or plan of a subdivision or land development, whether preliminary or final. “Preservation or protection,” when used in connection with natural and historic resources, shall include means to conserve and safeguard these resources from wasteful or destructive use but shall not be interpreted to authorize the unreasonable restriction of forestry, mining or other lawful uses of natural resources. “Prime agricultural land,” land used for agricultural purposes that contains soils of the first, second or third class as defined by the United States Department of Agriculture Natural Resource and Conservation Services County Soil Survey. “Professional consultants,” persons who provide expert or professional advice, including, but not limited to, architects, attorneys, certified public accountants, engineers, geologists, land surveyors, landscape architects or planners. “Public grounds,” includes: (1)   parks, playgrounds, trails, paths and other recreational areas and other public areas; (2)   sites for schools, sewage treatment, refuse disposal and other publicly owned or operated facilities; and (3)   publicly owned or operated scenic and historic sites. “Public hearing,” a formal meeting held pursuant to public notice by the governing body or planning agency, intended to inform and obtain public comment, prior to taking action in accordance with this act. “Public infrastructure area,” a designated growth area and all or any portion of a future growth area described in a county or multimunicipal comprehensive plan where public infrastructure services will be provided and outside of which such public infrastructure services will not be required to be publicly financed. “Public infrastructure services,” services that are provided to areas with densities of one or more units to the acre, which may include sanitary sewers and facilities for the collection and treatment of sewage, water lines and facilities for the pumping and treating of water, parks and open space, streets and sidewalks, public transportation and other services that may be appropriate within a growth area, but shall exclude fire protection and emergency medical services and any other service required to protect the health and safety of residents. “Public meeting,” a forum held pursuant to notice under 65 Pa.C.S. Ch. 7 (relating to open meetings). “Public notice,” notice published once each week for two successive weeks in a newspaper of general circulation in the municipality. Such notice shall state the time and place of the hearing and the particular nature of the matter to be considered at the hearing. The first publication shall not be more than 30 days and the second publication shall not be less than seven days from the date of the hearing. “Regional planning agency,” a planning agency that is comprised of representatives of more than one county. Regional planning responsibilities shall

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GOVERNMENT REGULATION

Ch. 41

“Special exception,” a use permitted in a particular zoning district pursuant to the provisions of Articles VI and IX.5

“Street,” includes street, avenue, boulevard, road, highway, freeway, parkway, lane, alley, viaduct and any other ways used or intended to be used by vehicular traffic or pedestrians whether public or private.

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Index

5. 53 P.S. §§ 10601 et seq. and 10901 et seq.

Part IX Ch. 68–72 Condos, etc.

“Traditional neighborhood development,” an area of land typically developed for a compatible mixture of residential units for various income levels and nonresidential commercial and workplace uses, including some structures that provide for a mix of uses within the same building. Residences, shops, offices, workplaces, public buildings and parks are interwoven within the neighborhood so that all are within relatively close proximity to each other. Traditional

Part VIII Ch. 64–67 L/T

“Substantially completed,” where, in the judgment of the municipal engineer, at least 90% (based on the cost of the required improvements for which financial security was posted pursuant to section 509) of those improvements required as a condition for final approval have been completed in accordance with the approved plan, so that the project will be able to be used, occupied or operated for its intended use.

Part VII Ch. 57–63 Litigation

“Subdivision,” the division or redivision of a lot, tract or parcel of land by any means into two or more lots, tracts, parcels or other divisions of land including changes in existing lot lines for the purpose, whether immediate or future, of lease, partition by the court for distribution to heirs or devisees, transfer of ownership or building or lot development: Provided, however, That the subdivision by lease of land for agricultural purposes into parcels of more than ten acres, not involving any new street or easement of access or any residential dwelling, shall be exempted.

Part VI Ch. 49–56 Taxation

“Structure,” any man-made object having an ascertainable stationary location on or in land or water, whether or not affixed to the land.

Part V Ch. 41–48A Zoning, etc.

“State Land Use and Growth Management Report,” a comprehensive land use and growth management report to be prepared by the Center for Local Government Services and which shall contain information, data and conclusions regarding growth and development patterns in this Commonwealth and which will offer recommendations to Commonwealth agencies for coordination of executive action, regulation and programs.

Part IV Ch. 36–40 Insurance

“Specific plan,” a detailed plan for nonresidential development of an area covered by a municipal or multimunicipal comprehensive plan, which, when approved and adopted by the participating municipalities through ordinances and agreements, supersedes all other applicable ordinances.

Part III Ch. 23–35 Mortgages

“Rural resource area,” an area described in a municipal or multimunicipal plan within which rural resource uses including, but not limited to, agriculture, timbering, mining, quarrying and other extractive industries, forest and game lands and recreation and tourism are encouraged and enhanced, development that is compatible with or supportive of such uses is permitted and public infrastructure services are not provided except in villages.

Part II Ch. 15–22 Deeds

“Renewable energy source,” any method, process or substance whose supply is rejuvenated through natural processes and, subject to those natural processes, remains relatively constant, including, but not limited to, biomass conversion, geothermal energy, solar and wind energy and hydroelectric energy and excluding those sources of energy used in the fission and fusion processes.

Part I Ch. 1–14 Brokers

include providing technical assistance to counties and municipalities, mediating conflicts across county lines and reviewing county comprehensive plans for consistency with one another.

Table of Contents

PART V

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neighborhood development is relatively compact and oriented toward pedestrian activity. It has an identifiable center and a discernible edge. The center of the neighborhood is in the form of a public park, commons, plaza, square or prominent intersection of two or more major streets. Generally, there is a hierarchy of streets laid out with an interconnected network of streets and blocks that provides multiple routes from origins to destinations and are appropriately designed to serve the needs of pedestrians and vehicles equally. “Transferable development rights,” the attaching of development rights to specified lands which are desired by a municipality to be kept undeveloped, but permitting those rights to be transferred from those lands so that the development potential which they represent may occur on other lands where more intensive development is deemed to be appropriate. “Variance,” relief granted pursuant to the provisions of Articles VI and IX. “Village,” an unincorporated settlement that is part of a township where residential and mixed use densities of one unit to the acre or more exist or are permitted and commercial, industrial or institutional uses exist or are permitted. “Water survey,” an inventory of the source, quantity, yield and use of groundwater and surface-water resources within a municipality. (b)   The following words and phrases when used in Articles IX and X-A6 shall have the meanings given to them in this subsection unless the context clearly indicates otherwise: “Board,” any body granted jurisdiction under a land use ordinance or under this act to render final adjudications. “Decision,” final adjudication of any board or other body granted jurisdiction under any land use ordinance or this act to do so, either by reason of the grant of exclusive jurisdiction or by reason of appeals from determinations. All decisions shall be appealable to the court of common pleas of the county and judicial district wherein the municipality lies. “Determination,” final action by an officer, body or agency charged with the administration of any land use ordinance or applications thereunder, except the following: (1)   the governing body; (2)   the zoning hearing board; or (3)   the planning agency, only if and to the extent the planning agency is charged with final decision on preliminary or final plans under the subdivision and land development ordinance or planned residential development provisions. Determinations shall be appealable only to the boards designated as having jurisdiction for such appeal. “Hearing,” an administrative proceeding conducted by a board pursuant to section 909.1.7 “Land use ordinance,” any ordinance or map adopted pursuant to the authority granted in Articles IV, V, VI and VII.8 “Report,” any letter, review, memorandum, compilation or similar writing made by any body, board, officer or consultant other than a solicitor to any other body, board, officer or consultant for the purpose of assisting the recipient of 6. Sections 10901 et seq. and 11001-A et seq. (repealed). 7. 53 P.S. § 10909.1. 8. 53 P.S. §§ 10401 et seq., 10501 et seq., 10601 et seq. and 10701 et seq.

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GOVERNMENT REGULATION

Ch. 41

(1)   The governing body of the municipality. (2)   In the case of an ordinance, any resident or landowner in the municipality.

(c)   Each notice shall contain the following: (1)   If the notice relates to an ordinance: (ii)   A brief statement of the general content of the ordinance. (iii)  The address of the municipal building where the full text of the ordinance may be reviewed by members of the public.

Part VI Ch. 49–56 Taxation

(i)   The municipality’s ordinance number.

Part V Ch. 41–48A Zoning, etc.

(3)  In the case of a decision, the applicant requesting the decision or the landowner or successor in interest of the property subject to or affected by the decision.

Part IV Ch. 36–40 Insurance

(b)  Notice that municipal action has been taken to adopt an ordinance or enter a decision, regardless of whether the municipal action was taken before or after the effective date of this section, may be provided through publication, at any time, once each week for two successive weeks in a newspaper of general circulation in the municipality by the following:

Part III Ch. 23–35 Mortgages

(a)   It is the intent of this section to allow optional public notice of municipal action in order to provide an opportunity to challenge, in accordance with section 1002-A(b) or section 1002.1-A,9 the validity of an ordinance or decision on the basis that a defect in procedure resulted in a deprivation of constitutional rights, and to establish a period of limitations for raising such challenges.

Part II Ch. 15–22 Deeds

§ 108.  Optional notice of ordinance or decision; procedural validity challenges

Part I Ch. 1–14 Brokers

such report in the rendering of any decision or determination. All reports shall be deemed recommendatory and advisory only and shall not be binding upon the recipient, board, officer, body or agency, nor shall any appeal lie therefrom. Any report used, received or considered by the body, board, officer or agency rendering a determination or decision shall be made available for inspection to the applicant and all other parties to any proceeding upon request, and copies thereof shall be provided at cost of reproduction.

Table of Contents

PART V

(2)   If the notice relates to a decision: Part VII Ch. 57–63 Litigation

(i)   The name of the applicant or owner of the subject property. (ii)   The street address or location of the subject property. (iii)   The file number or docket number of the decision. (iv)   A brief description of the nature of the decision. (vi)   The address of the municipal building where the full text of the decision may be reviewed by members of the public.

Part IX Ch. 68–72 Condos, etc.

(3)   In addition to the requirements of paragraphs (1) and (2), the publication of each notice authorized by the section shall contain a statement that the publication is intended to provide notification of an ordinance or decision and that any person claiming a right to challenge the validity of the ordinance or decision must bring a legal action within 30 days of the publication of the second notice.

Part VIII Ch. 64–67 L/T

(v)   The date upon which the decision was issued.

9. 53 P.S. §§ 11002-A. 11002.1-A.

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Index

533

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§ 109

MUNICIPALITIES PLANNING CODE

(4)   The person providing notice as authorized by this section shall provide proof of publication to the municipality adopting the ordinance or decision for retention with municipal records. Failure to comply with this paragraph shall not invalidate any notice provided in accordance with this section or the applicability of the period of limitation in subsection (d). (d)   Notwithstanding this or any other act, in order to provide certainty of the validity of an ordinance or decision, any appeal or action contesting the validity of an ordinance based on a procedural defect in the process of enactment or the validity of a decision based on a procedural or substantive defect shall be dismissed, with prejudice, as untimely if not filed within the 30th day following the second publication of the notice authorized in this section. (e)   Any appeal or action filed within the 30-day period referred to in s­ ubsection (d) shall be taken to the court of common pleas and shall be conducted in accordance with and subject to the procedures set forth in 42 Pa.C.S. § 5571.1 (relating to appeals from ordinances, resolutions, maps, etc.) in the case of challenges to ordinances or section 1002.1-A in the case of challenges to decisions. (f)  Where no appeal or action contesting the procedural validity of an ordinance or the procedural or substantive validity of a decision is filed within the period set forth in subsection (d), the ordinance or decision shall be deemed to be reaffirmed and reissued on the date of the second publication of the optional notice permitted under this section. (g)  An appeal shall be exempt from the time limitation in subsection (d) only if the party bringing the appeal establishes that the application of the time limitation in subsection (d) would result in an unconstitutional deprivation of due process. (h)   Nothing in this section shall be construed to abrogate, repeal, extend or otherwise modify the time for appeal as set forth in section 1002-A, where the appellant was a party to proceedings prior to the entry of a decision or otherwise had an adequate opportunity to bring a timely action in accordance with section 1002-A to contest the procedural validity of an ordinance or the procedural or substantive validity of a decision. § 109.  Notice In any case in which mailed notice or electronic notice is required by this act, the following shall apply: (1)   An owner of a tract or parcel of land located within a municipality or an owner of the mineral rights in a tract or parcel of land within a municipality may request that the municipality provide written or electronic notice of a public hearing which may affect such tract or parcel of land. (2)  Mailed notice shall be required only if an owner of a tract or parcel of land located within a municipality or an owner of the mineral rights in a tract or parcel of land within the municipality has made a written request that the notice be mailed and has supplied the municipality with a stamped, self-addressed envelope prior to a public hearing. (3)   Electronic notice shall be required only if an owner of a tract or parcel of land located within a municipality or an owner of the mineral rights in a tract or parcel of land within the municipality has made a written request that notice be sent electronically and has supplied the municipality with an electronic address prior to a public hearing and only if that municipality maintains the capability of generating an electronic notice. An owner of a tract or parcel of land located within a municipality or an owner of the mineral rights in a tract or parcel of land within the municipality making the request and supplying an electronic address may at any time notify the municipality that the owner of the tract or parcel of land located within the municipality or the owner of the mineral rights in the tract or parcel of land within the municipality no

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Ch. 41

Part II Ch. 15–22 Deeds Part III Ch. 23–35 Mortgages Part IV Ch. 36–40 Insurance Part V Ch. 41–48A Zoning, etc. Part VI Ch. 49–56 Taxation Part VII Ch. 57–63 Litigation

ARTICLE II

Part I Ch. 1–14 Brokers

longer will accept electronic notice, and, in that event, the municipality may no longer provide electronic notice. (4)   An owner of a tract or parcel of land located within a municipality or an owner of the mineral rights in a tract or parcel of land within the municipality who has requested a mailed notice shall be solely responsible for the number, accuracy and sufficiency of the envelopes supplied. The municipality shall not be responsible or liable if the owner of a tract or parcel of land located within a municipality or an owner of the mineral rights in a tract or parcel of land within the municipality does not provide to the municipality notice of any changes in the owner’s mailing address. (5)   An owner of a tract or parcel of land located within a municipality or an owner of the mineral rights in a tract or parcel of land within the municipality who has requested electronic notice shall be solely responsible for the accuracy and functioning of the electronic address provided to the municipality. The municipality shall not be responsible or liable if the owner of a tract or parcel of land located within a municipality or an owner of the mineral rights in a tract or parcel of land within the municipality does not provide to the municipality notice of any changes to the owner’s electronic address. (6)   A municipality shall deposit a mailed notice in the United States mail or provide electronic notice not more than 30 and not less than seven days prior to the scheduled date of the hearing as shown on the notice. (7)   For each public hearing, the municipal secretary or zoning officer shall prepare, sign and maintain a list of all mailed notices, mailing dates, electronic notices and electronic notice dates. The signed list shall constitute a presumption that the notice was given. (8)   The mailed notice shall be deemed received by an owner of a tract or parcel of land located within a municipality or an owner of the mineral rights in a tract or parcel of land within the municipality on the date deposited in the United States mail. (9)   The electronic notice shall be deemed received by an owner of a tract or parcel of land located within a municipality or an owner of the mineral rights in a tract or parcel of land within the municipality on the date the municipality electronically notifies the owner. (10)   Failure of an owner of a tract or parcel of land located within a municipality or an owner of the mineral rights in a tract or parcel of land within the municipality to receive a requested mailed notice or electronic notice shall not be deemed to invalidate any action or proceedings under this act.

Table of Contents

PART V

Planning Agencies

Index

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Part IX Ch. 68–72 Condos, etc.

535

Part VIII Ch. 64–67 L/T

§ 201.  Creation of planning agencies The governing body of any municipality shall have the power to create or abolish, by ordinance, a planning commission or planning department, or both. An ordinance which creates both a planning commission and a planning department shall specify which of the powers and duties conferred on planning agencies by this act; each shall exercise and may confer upon each additional powers, duties and advisory functions not inconsistent with this act. In lieu of a planning commission or planning department, the governing body may elect to assign the powers and duties conferred by this act upon a planning committee comprised of members appointed from the governing body. The engineer for the municipality, or an engineer appointed by the governing body, shall serve the planning agency

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§ 202

MUNICIPALITIES PLANNING CODE

as engineering advisor. The solicitor for the municipality, or an attorney appointed by the governing body, shall serve the planning agency as legal advisor. § 202.  Planning commission If the governing body of any municipality shall elect to create a planning commission, such commission shall have not less than three nor more than nine members. Except for elected or appointed officers or employees of the municipality, members of the commission may receive compensation in an amount fixed by the governing body. Compensation shall not exceed the rate of compensation authorized to be paid to members of the governing body. Without exception, members of the planning commission may be reimbursed for necessary and reasonable expenses. However, elected or appointed officers or employees of the municipality shall not, by reason of membership thereon, forfeit the right to exercise the powers, perform the duties or receive the compensations of the municipal offices held by them during such membership. § 203.  Appointment, term and vacancy (a)   All members of the commission shall be appointed by the appointing authority of the municipality. All such appointments shall be approved by the governing body, except where the governing body is the appointing authority. (b)   The term of each of the members of the commission shall be for four years, or until his successor is appointed and qualified, except that the terms of the members first appointed pursuant to this act shall be so fixed that on commissions of eight members or less no more than two shall be reappointed or replaced during any future calendar year, and on commissions of nine members no more than three shall be so reappointed or replaced. (c)  The chairman of the planning commission shall promptly notify the appointing authority of the municipality concerning vacancies in the commission, and such vacancy shall be filled for the unexpired term. If a vacancy shall occur otherwise than by expiration of term, it shall be filled by appointment for the unexpired term according to the terms of this article. (d)   Should the governing body of any municipality determine to increase the number of members of an already existing planning commission, the additional members shall be appointed as provided in this article. If the governing body of any municipality shall determine to reduce the number of members on any existing planning commission, such reduction shall be effectuated by allowing the terms to expire and by making no new appointments to fill the vacancy. Any reduction or increase shall be by ordinance. (e)   The governing body may appoint by resolution at least one but no more than three residents of the municipality to serve as alternate members of the planning commission. The term of office of an alternate member shall be four years. When seated pursuant to the provisions of section 207,10 an alternate shall be entitled to participate in all proceedings and discussions of the commission to the same and full extent as provided by law for commission members, including, specifically, the right to cast a vote as a voting member during the proceedings, and shall have all the powers and duties set forth in this act and as otherwise provided by law. Alternates shall not serve as a member of the zoning hearing board or as a zoning officer. Any alternate may participate in any proceeding or discussion of the commission but shall not be entitled to vote as a member of the commission nor be reimbursed pursuant to section 20211 unless designated as a voting alternate member pursuant to section 207. 10. 53 P.S. § 10207. 11. 53 P.S. § 10202.

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GOVERNMENT REGULATION

Ch. 41

Table of Contents

PART V

§ 204.  Repealed. 1988, Dec. 21, P.L. 1329, No. 170, § 10, effective in 60 days

Part III Ch. 23–35 Mortgages Part IV Ch. 36–40 Insurance Part V Ch. 41–48A Zoning, etc. Part VI Ch. 49–56 Taxation Part VII Ch. 57–63 Litigation

§ 207.  Conduct of business (a)  The commission shall elect its own chairman and vice-chairman and create and fill such other offices as it may determine. Officers shall serve annual terms and may succeed themselves. The commission may make and alter by laws and rules and regulations to govern its procedures consistent with the ordinances of the municipality and the laws of the Commonwealth. The commission shall keep a full record of its business and shall annually make a written report by March 1 of each year of its activities to the governing body. Interim reports may be made as often as may be necessary, or as requested by the governing body. (b)   The chairman of the planning commission may designate alternate members of the commission to substitute for any absent member or member who has recused himself or has been disqualified by the governing body, and, if, by reason of absence, recusal or disqualification of a member, a quorum is not reached, the chairman of the commission shall designate as many alternate members of the commission to sit on the commission as may be needed to reach a quorum. Any alternate member of the commission shall continue to serve on the commission in all proceedings involving the matter or case for which the alternate was initially appointed until the commission has made a final decision on the matter or case. Designation of an alternate pursuant to this section shall be made on a case-by-case basis in rotation according to declining seniority among all alternates.

Part II Ch. 15–22 Deeds

§ 206.  Removal Any member of a planning commission once qualified and appointed may be removed from office for malfeasance, misfeasance or nonfeasance in office or for other just cause by a majority vote of the governing body taken after the member has received 15 days’ advance notice of the intent to take such a vote. A hearing shall be held in connection with the vote if the member shall request it in writing. Any appointment to fill a vacancy created by removal shall be only for the unexpired term.

Part I Ch. 1–14 Brokers

§ 205.  Membership All of the members of the planning commission shall be residents of the municipality. On all planning commissions appointed pursuant to this act, a certain number of the members, designated as citizen members shall not be officers or employees of the municipality. On a commission of three members at least two shall be citizen members. On a commission of four or five members at least three shall be citizen members. On a commission of either six or seven members at least five shall be citizen members, and on commissions of either eight or nine members at least six shall be citizen members.

§ 208.  Planning department director

Index

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Part IX Ch. 68–72 Condos, etc.

537

Part VIII Ch. 64–67 L/T

For the administration of each planning department, the appointing authority may appoint a director of planning who shall be, in the opinion of the appointing authority, qualified for the duties of his position. Each such appointment shall be with the approval of the governing body, except where the governing body is the appointing authority. The director of planning shall be in charge of the administration of the department, and shall exercise the powers and be subject to the duties that are granted or imposed on a planning agency by this act, except that where a municipality creates both a planning commission and a planning department, the director of planning shall exercise only those powers and be subject to only those duties which are specifically conferred upon him by ordinance enacted pursuant to this article.

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§ 209

MUNICIPALITIES PLANNING CODE

§ 209.  Repealed. 1972, June 1, P.L. 333, No. 93, § 2 § 209.1.  Powers and duties of planning agency (a)   The planning agency shall at the request of the governing body have the power and shall be required to: (1)   Prepare the comprehensive plan for the development of the municipality as set forth in this act, and present it for the consideration of the governing body. (2)   Maintain and keep on file records of its action. All records and files of the planning agency shall be in the possession of the governing body. (b)   The planning agency at the request of the governing body may: (1)   Make recommendations to the governing body concerning the adoption or amendment of an official map. (2)   Prepare and present to the governing body of the municipality a zoning ordinance, and make recommendations to the governing body on proposed amendments to it as set forth in this act. (3)   Prepare, recommend and administer subdivision and land development and planned residential development regulations, as set forth in this act. (4)   Prepare and present to the governing body of the municipality a building code and a housing code and make recommendations concerning proposed amendments thereto. (5)   Do such other acts or make such studies as may be necessary to fulfill the duties and obligations imposed by this act. (6)   Prepare and present to the governing body of the municipality an environmental study. (7)   Submit to the governing body of a municipality a recommended capital improvements program. (7.1)   Prepare and present to the governing body of the municipality a water survey, which shall be consistent with the State Water Plan and any applicable water resources plan adopted by a river basin commission. The water survey shall be conducted in consultation with any public water supplier in the area to be surveyed. (8)  Promote public interest in, and understanding of, the comprehensive plan and planning. (9)  Make recommendations to governmental, civic and private agencies and individuals as to the effectiveness of the proposals of such agencies and individuals. (10)   Hold public hearings and meetings. (10.1)   Present testimony before any board. (11)   Require from other departments and agencies of the municipality such available information as relates to the work of the planning agency. (12)   In the performance of its functions, enter upon any land to make examinations and surveys with the consent of the owner. (13)   Prepare and present to the governing body of the municipality a study regarding the feasibility and practicability of using renewable energy sources in specific areas within the municipality. (14)   Review the zoning ordinance, subdivision and land development ordinance, official map, provisions for planned residential development, and such other ordinances and regulations governing the development of land no less frequently than it reviews the comprehensive plan.

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Part I Ch. 1–14 Brokers Part II Ch. 15–22 Deeds Part III Ch. 23–35 Mortgages

§ 210.  Administrative and technical assistance The appointing authority may employ administrative and technical services to aid in carrying out the provisions of this act either as consultants on particular matters or as regular employees of the municipality. A county planning agency, with the consent of its governing body may perform planning services for any municipality whose governing body requests such assistance and may enter into agreements or contracts for such work. § 211.  Assistance The planning agency may, with the consent of the governing body, accept and utilize any funds, personnel or other assistance made available by the county, the Commonwealth or the Federal government or any of their agencies, or from private sources. The governing body may enter into agreements or contracts regarding the acceptance or utilization of the funds or assistance in accordance with the governmental procedures of the municipality. § 212.  Intergovernmental cooperation For the purposes of this act, the governing body may utilize the authority granted under 53 Pa.C.S. §§ 2303(a) (relating to intergovernmental cooperation authorized) and 2315 (relating to effect of joint cooperation agreements).

Table of Contents

PART V

Part IV Ch. 36–40 Insurance

ARTICLE III Comprehensive Plan (a)   The municipal, multimunicipal or county comprehensive plan, consisting of maps, charts and textual matter, shall include, but need not be limited to, the following related basic elements:

(4)   A plan for community facilities and utilities, which may include public and private education, recreation, municipal buildings, fire and police stations,

Part IX Ch. 68–72 Condos, etc.

(3)   A plan for movement of people and goods, which may include expressways, highways, local street systems, parking facilities, pedestrian and bikeway systems, public transit routes, terminals, airfields, port facilities, railroad facilities and other similar facilities or uses.

Part VIII Ch. 64–67 L/T

(2.1)  A plan to meet the housing needs of present residents and of those individuals and families anticipated to reside in the municipality, which may include conservation of presently sound housing, rehabilitation of housing in declining neighborhoods and the accommodation of expected new housing in different dwelling types and at appropriate densities for households of all income levels.

Part VII Ch. 57–63 Litigation

(2)   A plan for land use, which may include provisions for the amount, intensity, character and timing of land use proposed for residence, industry, business, agriculture, major traffic and transit facilities, utilities, community facilities, public grounds, parks and recreation, preservation of prime agricultural lands, flood plains and other areas of special hazards and other similar uses.

Part VI Ch. 49–56 Taxation

(1)   A statement of objectives of the municipality concerning its future development, including, but not limited to, the location, character and timing of future development, that may also serve as a statement of community development objectives as provided in section 606.12

Part V Ch. 41–48A Zoning, etc.

§ 301.  Preparation of comprehensive plan

12. 53 P.S. § 10606.

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Index

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§ 301

MUNICIPALITIES PLANNING CODE

libraries, hospitals, water supply and distribution, sewerage and waste treatment, solid waste management, storm drainage, and flood plain management, utility corridors and associated facilities, and other similar facilities or uses. (4.1)  A statement of the interrelationships among the various plan com­ ponents, which may include an estimate of the environmental, energy conservation, fiscal, economic development and social consequences on the municipality. (4.2)   A discussion of short- and long-range plan implementation strategies, which may include implications for capital improvements programming, new or updated development regulations, and identification of public funds potentially available. (5)   A statement indicating that the existing and proposed development of the municipality is compatible with the existing and proposed development and plans in contiguous portions of neighboring municipalities, or a statement indicating measures which have been taken to provide buffers or other transitional devices between disparate uses, and a statement indicating that the existing and proposed development of the municipality is generally consistent with the objectives and plans of the county comprehensive plan. (6)   A plan for the protection of natural and historic resources to the extent not preempted by Federal or State law. This clause includes, but is not limited to, wetlands and aquifer recharge zones, woodlands, steep slopes, prime agricultural land, flood plains, unique natural areas and historic sites. The plan shall be consistent with and may not exceed those requirements imposed under the following: (i)   act of June 22, 1937 (P.L. 1987, No. 394), known as “The Clean Streams Law”;13 (ii)   act of May 31, 1945 (P.L. 1198, No. 418), known as the “Surface Mining Conservation and Reclamation Act”;14 (iii)  act of April 27, 1966 (1st Sp.Sess., P.L. 31, No. 1), known as “The Bituminous Mine Subsidence and Land Conservation Act”;15 (iv)   act of September 24, 1968 (P.L. 1040, No. 318), known as the “Coal Refuse Disposal Control Act”;16 (v)   act of December 19, 1984 (P.L. 1140, No. 223), known as the “Oil and Gas Act”;17 (vi)   act of December 19, 1984 (P.L. 1093, No. 219), known as the “Noncoal Surface Mining Conservation and Reclamation Act”;18 (vii)   act of June 30, 1981 (P.L. 128, No. 43), known as the “Agricultural Area Security Law”;19 (viii)   act of June 10, 1982 (P.L. 454, No. 133), entitled “An act protecting agricultural operations from nuisance suits and ordinances under certain circumstances”;20 and

13. 14. 15. 16. 17. 18. 19. 20.

35 P.S. § 691.1 et seq. 52 P.S. § 1396.2 et seq. 52 P.S. § 1406.1 et seq. 52 P.S. § 30.52 et seq. 58 P.S. § 601.101 et seq. 52 P.S. § 3301 et seq. 3 P.S. § 901 et seq. 3 P.S. § 951 et seq.

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GOVERNMENT REGULATION

Ch. 41

Part III Ch. 23–35 Mortgages Part IV Ch. 36–40 Insurance Part V Ch. 41–48A Zoning, etc. Part VI Ch. 49–56 Taxation Part VII Ch. 57–63 Litigation Part VIII Ch. 64–67 L/T Part IX Ch. 68–72 Condos, etc.

§ 301.1.  Energy conservation plan element To promote energy conservation and the effective utilization of renewable energy sources, the comprehensive plan may include an energy conservation plan element which systematically analyzes the impact of each other component and element of the comprehensive plan on the present and future use of energy in

Part II Ch. 15–22 Deeds

(d)   The municipal, multimunicipal or county comprehensive plan may identify those areas where growth and development will occur so that a full range of public infrastructure services, including sewer, water, highways, police and fire protection, public schools, parks, open space and other services can be adequately planned and provided as needed to accommodate growth.

Part I Ch. 1–14 Brokers

(ix)   act of May 20, 1993 (P.L. 12, No. 6), known as the “Nutrient Management Act,”21 regardless of whether any agricultural operation within the area to be affected by the plan is a concentrated animal operation as defined under the act. (7)   In addition to any other requirements of this act, a county comprehensive plan shall: (i)   Identify land uses as they relate to important natural resources and appropriate utilization of existing minerals. (ii)   Identify current and proposed land uses which have a regional impact and significance, such as large shopping centers, major industrial parks, mines and related activities, office parks, storage facilities, large residential developments, regional entertainment and recreational complexes, hospitals, airports and port facilities. (iii)   Identify a plan for the preservation and enhancement of prime agricultural land and encourage the compatibility of land use regulation with existing agricultural operations. (iv)   Identify a plan for historic preservation. (b)  The comprehensive plan shall include a plan for the reliable supply of water, considering current and future water resources availability, uses and limitations, including provisions adequate to protect water supply sources. Any such plan shall be generally consistent with the State Water Plan and any applicable water resources plan adopted by a river basin commission. It shall also contain a statement recognizing that: (1)   Lawful activities such as extraction of minerals may impact water supply sources and such activities are governed by statutes regulating mineral extraction that specify replacement and restoration of water supplies affected by such activities. (2)   Commercial agriculture production may impact water supply sources. (c)  The municipal or multimunicipal comprehensive plan shall be reviewed at least every ten years. The municipal or multimunicipal comprehensive plan shall be sent to the governing bodies of contiguous municipalities for review and comment and shall also be sent to the Center for Local Government Services for informational purposes. The municipal or multimunicipal comprehensive plan shall also be sent to the county planning commissions or, upon request of a county planning commission, a regional planning commission when the comprehensive plan is updated or at ten-year intervals, whichever comes first, for review and comment on whether the municipal or multimunicipal comprehensive plan remains generally consistent with the county comprehensive plan and to indicate where the local plan may deviate from the county comprehensive plan.

Table of Contents

PART V

21. 3 P.S. § 1701 et seq.

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Index

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§ 301.2

MUNICIPALITIES PLANNING CODE

the municipality, details specific measures contained in the other plan elements designed to reduce energy consumption and proposes other measures that the municipality may take to reduce energy consumption and to promote the effective utilization of renewable energy sources. § 301.2.  Surveys by planning agency In preparing the comprehensive plan, the planning agency shall make careful surveys, studies and analyses of housing, demographic, and economic characteristics and trends; amount, type and general location and interrelationships of different categories of land use; general location and extent of transportation and community facilities; natural features affecting development; natural, historic and cultural resources; and the prospects for future growth in the municipality. § 301.3.  Submission of plan to county planning agency If a county planning agency has been created for the county in which the municipality is located, then at least 45 days prior to the public hearing required in section 30222 on the comprehensive plan or amendment thereof, the municipality shall forward a copy of that plan or amendment to the county planning agency for its comments. At the same time, the municipality shall also forward copies of the proposed plan or amendment to all contiguous municipalities and to the local school district for their review and comments. § 301.4.  Compliance by counties (a)   If a county does not have a comprehensive plan, then that county shall, within three years of the effective date of this act and with the opportunity for the review, comment and participation of the municipalities and school districts within the respective county and contiguous counties, school districts and municipalities, prepare and adopt a comprehensive plan in accordance with the requirements of section 301. Municipal comprehensive plans which are adopted shall be generally consistent with the adopted county comprehensive plan. (b)  County planning commissions shall publish advisory guidelines to promote general consistency with the adopted county comprehensive plan. These guidelines shall promote uniformity with respect to local planning and zoning terminology and common types of municipal land use regulations. § 301.5.  Funding of municipal planning Priority for State grants to develop or revise comprehensive plans shall be given to those municipalities which agree to adopt comprehensive plans generally consistent with the county comprehensive plan and which agree to enact a new zoning ordinance or amendment which would fully implement the municipal comprehensive plan. No more than 25% of the total funds available for these grants shall be disbursed under priority status pursuant to this provision. Municipalities and counties shall comply with these agreements within three years. Failure to comply with the agreements shall be taken into consideration for future State funding. § 302.  Adoption of Municipal, Multimunicipal and County Comprehensive Plans and Plan Amendments (a)   The governing body may adopt and amend the comprehensive plan as a whole or in part. Before adopting or amending a comprehensive plan, or any part thereof, the planning agency shall hold at least one public meeting before forwarding the proposed comprehensive plan or amendment thereof to the governing body. In reviewing the proposed comprehensive plan, the governing body shall

22. 53 P.S. § 10302.

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GOVERNMENT REGULATION

Ch. 41

Table of Contents

PART V

Part I Ch. 1–14 Brokers

(a.1)  The governing body of the county may adopt and amend the county comprehensive plan in whole or in part. Before adopting or amending a comprehensive plan, or any part thereof, the county planning agency shall hold at least one public meeting before forwarding the proposed comprehensive plan or amendment thereof to the governing body. In reviewing the proposed comprehensive plan, the governing body shall consider the comments of municipalities and school districts within the county and contiguous school districts, municipalities and counties as well as the public meeting comments and the recommendations of the county planning agency. The comments of the counties, municipalities and school districts shall be made to the governing body within 45 days of receipt by the governing body, and the proposed comprehensive plan or amendment thereto shall not be acted upon until such comment is received. If, however, the counties, municipalities and school districts fail to respond within 45 days, the governing body may proceed without their comments.

Part III Ch. 23–35 Mortgages

(2)   the location, erection, demolition, removal or sale of any public structure located within the municipality;

gtb-parealestate22-all.indb 543

Index

543

Part IX Ch. 68–72 Condos, etc.

(1)   the location, opening, vacation, extension, widening, narrowing or enlargement of any street, public ground, pierhead or watercourse;

Part VIII Ch. 64–67 L/T

(a)   Whenever the governing body, pursuant to the procedures provided in section 302, has adopted a comprehensive plan or any part thereof, any subsequent proposed action of the governing body, its departments, agencies and appointed authorities shall be submitted to the planning agency for its recommendations when the proposed action relates to:

Part VII Ch. 57–63 Litigation

§ 303.  Legal status of comprehensive plan within the jurisdiction that adopted the plan

Part VI Ch. 49–56 Taxation

(d)   Counties shall in accordance with subsection (a.1) consider amendments to their comprehensive plan proposed by municipalities which are considering adoption or revision of their municipal comprehensive plans so as to achieve general consistency between the respective plans. County comprehensive plans shall be updated at least every ten years. Where two or more contiguous municipalities request amendments to a county comprehensive plan for the purpose of achieving general consistency between the municipal plans or multimunicipal plan and the county comprehensive plan, the county must accept the amendments unless good cause for their refusal is established.

Part V Ch. 41–48A Zoning, etc.

(c)   The adoption of the comprehensive plan, or any part thereof, or any amendment thereto, shall be by resolution carried by the affirmative votes of not less than a majority of all the members of the governing body. The resolution shall refer expressly to the maps, charts, textual matter, and other matters intended to form the whole or part of the plan, and the action shall be recorded on the adopted plan or part.

Part IV Ch. 36–40 Insurance

(b)   The governing body shall hold at least one public hearing pursuant to public notice. If, after the public hearing held upon the proposed plan or amendment to the plan, the proposed plan or proposed amendment thereto is substantially revised, the governing body shall hold another public hearing, pursuant to public notice, before proceeding to vote on the plan or amendment thereto.

Part II Ch. 15–22 Deeds

consider the comments of the county, contiguous municipalities and the school district, as well as the public meeting comments and the recommendations of the municipal planning agency. The comments of the county, contiguous municipalities and the local school district shall be made to the governing body within 45 days of receipt by the governing body, and the proposed plan or amendment thereto shall not be acted upon until such comment is received. If, however, the contiguous municipalities and the local school district fail to respond within 45 days, the governing body may proceed without their comments.

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§ 304

MUNICIPALITIES PLANNING CODE

(3)   the adoption, amendment or repeal of an official map, subdivision and land development ordinance, zoning ordinance or provisions for planned residential development, or capital improvements program; or (4)  the construction, extension or abandonment of any water line, sewer line or sewage treatment facility. (b)   The recommendations of the planning agency including a specific statement as to whether or not the proposed action is in accordance with the objectives of the formally adopted comprehensive plan shall be made in writing to the governing body within 45 days. (c)   Notwithstanding any other provision of this act, no action by the governing body of a municipality shall be invalid nor shall the same be subject to challenge or appeal on the basis that such action is inconsistent with, or fails to comply with, the provision of a comprehensive plan. (d)   Municipal zoning, subdivision and land development regulations and capital improvement programs shall generally implement the municipal and multimunicipal comprehensive plan or, where none exists, the municipal statement of community development objectives. § 304.  Legal status of county comprehensive plans within municipalities (a)  Following the adoption of a comprehensive plan or any part thereof by a county, pursuant to the procedures in section 302,23 any proposed action of the governing body of a municipality, its departments, agencies and appointed authorities within the county shall be submitted to the county planning agency for its recommendations if the proposed action relates to: (1)   the location, opening, vacation, extension, widening, narrowing or enlargement of any street, public ground, pierhead or watercourse; (2)   the location, erection, demolition, removal or sale of any public structures located within the municipality; (3)   the adoption, amendment or repeal of any comprehensive plan, official map, subdivision or land ordinance, zoning ordinance or provisions for planned residential development; or (4)  the construction, extension or abandonment of any water line, sewer line or sewage treatment facility. (b)   The recommendation of the planning agency shall be made to the governing body of the municipality within 45 days and the proposed action shall not be taken until such recommendation is made. If, however, the planning agency fails to act within 45 days, the governing body shall proceed without its recommendation. § 305.  The legal status of comprehensive plans within school districts Following the adoption of a comprehensive plan or any part thereof by any municipality or county governing body, pursuant to the procedures in section 302,24 any proposed action of the governing body of any public school district located within the municipality or county relating to the location, demolition, removal, sale or lease of any school district structure or land shall be submitted to the municipal and county planning agencies for their recommendations at least 45 days prior to the execution of such proposed action by the governing body of the school district.

23. 53 P.S. § 10302. 24. 53 P.S. § 10302.

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GOVERNMENT REGULATION

Ch. 41

Part IV Ch. 36–40 Insurance

Official Map

Part VI Ch. 49–56 Taxation Part VII Ch. 57–63 Litigation Part VIII Ch. 64–67 L/T Part IX Ch. 68–72 Condos, etc. Index

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Part V Ch. 41–48A Zoning, etc.

§ 401.  Grant of power (a)  The governing body of each municipality shall have the power to make or cause to be made an official map of all or a portion of the municipality which may show appropriate elements or portions of elements of the comprehensive plan adopted pursuant to section 30225 with regard to public lands and facilities, and which may include, but need not be limited to: (1)   Existing and proposed public streets, watercourses and public grounds, including widenings, narrowings, extensions, diminutions, openings or closing of same. (2)  Existing and proposed public parks, playgrounds and open space reservations. (3)   Pedestrian ways and easements. (4)   Railroad and transit rights-of-way and easements. (5)   Flood control basins, floodways and flood plains, storm water management areas and drainage easements. (6)   Support facilities, easements and other properties held by public bodies undertaking the elements described in section 301.26 (b)   For the purposes of taking action under this section, the governing body or its authorized designee may make or cause to be made surveys and maps to identify, for the regulatory purposes of this article, the location of property, trafficway alignment or utility easement by use of property records, aerial photography, photogrammetric mapping or other method sufficient for identification, description and publication of the map components. For acquisition of lands and

545

Part III Ch. 23–35 Mortgages

ARTICLE IV

25. 53 P.S. § 10302. 26. 53 P.S. § 10301.

Part II Ch. 15–22 Deeds

§ 307.  State Land Use and Growth Management Report The Center for Local Government Services shall issue a Land Use and Growth Management Report by the year 2005 and shall review and update the report at five-year intervals.

Part I Ch. 1–14 Brokers

§ 306.  Municipal and county comprehensive plans (a)   When a municipality having a comprehensive plan is located in a county which has adopted a comprehensive plan, both the county and the municipality shall each give the plan of the other consideration in order that the objectives of each plan can be protected to the greatest extent possible. (b)   Within 30 days after adoption, the governing body of a municipality, other than a county, shall forward a certified copy of the comprehensive plan, or part thereof or amendment thereto, to the county planning agency or, in counties where no planning agency exists, to the governing body of the county in which the municipality is located. (c)   Counties shall consult with municipalities and solicit comment from school districts, municipal authorities, the Center for Local Government Services, for informational purposes, and public utilities during the process of preparing or updating a county comprehensive plan in order to determine future growth needs.

Table of Contents

PART V

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§ 402

MUNICIPALITIES PLANNING CODE

easements, boundary descriptions by metes and bounds shall be made and sealed by a licensed surveyor. § 402.  Adoption of the official map and amendments thereto (a)   Prior to the adoption of the official map or part thereof, or any amendments to the official map, the governing body shall refer the proposed official map, or part thereof or amendment thereto, with an accompanying ordinance describing the proposed map, to the planning agency for review. The planning agency shall report its recommendations on said proposed official map and accompanying ordinance, part thereof, or amendment thereto within 45 days unless an extension of time shall be agreed to by the governing body. If, however, the planning agency fails to act within 45 days, the governing body may proceed without its recommendations. (b)   The county and adjacent municipalities may offer comments and recommendations during said 45-day review period in accordance with section 408.27 Local authorities, park boards, environmental boards and similar public bodies may also offer comments and recommendations to the governing body or planning agency if requested by same during said 45-day review period. Before voting on the enactment of the proposed ordinance and official map, or part thereof or amendment thereto, the governing body shall hold a public hearing pursuant to public notice. (c)  Following adoption of the ordinance and official map, or part thereof or amendment thereto, a copy of same, verified by the governing body, shall be submitted to the recorder of deeds of the county in which the municipality is located and shall be recorded within 60 days of the effective date. The fee for recording and indexing ordinances and amendments shall be paid by the municipality enacting the ordinance or amendment and shall be in the amount prescribed by law for the recording of ordinances by the recorder of deeds. § 403.  Effect of approved plats on official map After adoption of the official map, or part thereof, all streets, watercourses and public grounds and the elements listed in section 40128 on final, recorded plats which have been approved as provided by this act shall be deemed amendments to the official map. Notwithstanding any of the other terms of this article, no public hearing need be held or notice given if the amendment of the official map is the result of the addition of a plat which has been approved as provided by this act. § 404.  Effect of official map on mapped streets, watercourses and public grounds The adoption of any street, street lines or other public lands pursuant to this article as part of the official map shall not, in and of itself, constitute or be deemed to constitute the opening or establishment of any street nor the taking or acceptance of any land, nor shall it obligate the municipality to improve or maintain any such street or land. The adoption of proposed watercourses or public grounds as part of the official map shall not, in and of itself, constitute or be deemed to constitute a taking or acceptance of any land by the municipality. § 405.   Buildings in mapped streets, watercourses or other public grounds For the purpose of preserving the integrity of the official map of the municipality, no permit shall be issued for any building within the lines of any street, watercourse or public ground shown or laid out on the official map. No person shall recover any damages for the taking for public use of any building or im-

27. 53 P.S. § 10408. 28. 53 P.S. § 10401.

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Ch. 41

Part I Ch. 1–14 Brokers Part II Ch. 15–22 Deeds Part III Ch. 23–35 Mortgages Part IV Ch. 36–40 Insurance Part V Ch. 41–48A Zoning, etc. Part VI Ch. 49–56 Taxation Part VII Ch. 57–63 Litigation Part VIII Ch. 64–67 L/T Part IX Ch. 68–72 Condos, etc.

provements constructed within the lines of any street, watercourse or public ground after the same shall have been included in the official map, and any such building or improvement shall be removed at the expense of the owner. However, when the property of which the reserved location forms a part, cannot yield a reasonable return to the owner unless a permit shall be granted, the owner may apply to the governing body for the grant of a special encroachment permit to build. Before granting any special encroachment permit authorized in this section, the governing body may submit the application for a special encroachment permit to the local planning agency and allow the planning agency 30 days for review and comment and shall give public notice and hold a public hearing at which all parties in interest shall have an opportunity to be heard. A refusal by the governing body to grant the special encroachment permit applied for may be appealed by the applicant to the zoning hearing board in the same manner, and within the same time limitation, as is provided in Article IX.29 § 406.  Time limitations on reservations for future taking The governing body may fix the time for which streets, watercourses and public grounds on the official map shall be deemed reserved for future taking or acquisition for public use. However, the reservation for public grounds shall lapse and become void one year after an owner of such property has submitted a written notice to the governing body announcing his intentions to build, subdivide or otherwise develop the land covered by the reservation, or has made formal application for an official permit to build a structure for private use, unless the governing body shall have acquired the property or begun condemnation proceedings to acquire such property before the end of the year. § 407.  Release of damage claims or compensation The governing body may designate any of its agencies to negotiate with the owner of land under the following circumstances: (1)   whereon reservations are made; (2)   whereon releases of claims for damages or compensation for such reservations are required; or (3)   whereon agreements indemnifying the governing body from claims by others may be required. Any releases or agreements when properly executed by the governing body and the owner, and recorded, shall be binding upon any successor in title. § 408.  Notice to other municipalities (a)  When any county has adopted an official map in accordance with the terms of this article, a certified copy of the map and the ordinances adopting it shall be sent to every municipality within said county. All amendments shall be sent to the aforementioned municipalities. The powers of the governing bodies of counties to adopt, amend and repeal official maps shall be limited to land and watercourses in those municipalities wholly or partly within the county which have no official map in effect at the time an official map is introduced before the governing body of the county, and until the municipal official map is in effect. The adoption of an official map by any municipality, other than a county, whose land or watercourses are subject to county official mapping, shall act as a repeal protanto of the county official map within the municipality adopting such ordinance. Notwithstanding any of the other terms or conditions of this section the county official map shall govern as to county streets and public grounds, facilities and improvements, even though such streets or public grounds, facilities and improvements are located in a municipality which has adopted an official map.

Table of Contents

PART V

29. 53 P.S. § 10901 et seq.

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Index

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(b)   When a municipality proposes to adopt an official map, or any amendment thereto, a copy of the map and the proposed ordinance adopting it, or any amendment thereto, shall be forwarded for review to the county planning agency, or if no such agency exists to the governing body of the county at the same time it is submitted for review to the municipal planning agency. The comments of the county planning agency shall be made to the governing body of the municipality within 45 days, and the proposed action shall not be taken until such comments are received. If, however, the planning agency fails to act within 45 days, the governing body may proceed without its comments. (c)  Additionally, if any municipality proposes to adopt an official map, or amendment thereto, that shows any street or public lands intended to lead into any adjacent municipality a copy of said official map or amendment shall be forwarded to such adjacent municipality for review and comment by the governing body and planning agency of the adjacent municipality. The comments of the adjacent municipality shall be made to the governing body of the municipality proposing the adoption within 45 days, and the proposed action shall not be taken until such comments are received. If, however, the adjacent municipality fails to act within 45 days, the governing body of the proposing municipality may proceed without its comments. When a municipality adopts an official map, a certified copy of the map, the ordinance adopting it and any later amendments shall be forwarded, within 30 days after adoption, to the county planning agency or, in counties where no planning agency exists, to the governing body of the county in which the municipality is located. Additionally, if any municipality adopts an official map, or amendment thereto, that shows any street or public lands intended to lead into any adjacent municipality, a certified copy of said official map or amendment shall be forwarded to such adjacent municipality.

ARTICLE V Subdivision and Land Development § 501.  Grant of power The governing body of each municipality may regulate subdivisions and land development within the municipality by enacting a subdivision and land development ordinance. The ordinance shall require that all subdivision and land development plats of land situated within the municipality shall be submitted for approval to the governing body or, in lieu thereof, to a planning agency designated in the ordinance for this purpose, in which case any planning agency action shall be considered as action of the governing body. All powers granted herein to the governing body or the planning agency shall be exercised in accordance with the provisions of the subdivision and land development ordinance. In the case of any development governed by planned residential development provisions adopted pursuant to Article VII,30 however, the applicable provisions of the subdivision and land development ordinance shall be as modified by such provisions and the procedures which shall be followed in the approval of any plat, and the rights and duties of the parties thereto shall be governed by Article VII and the provisions adopted thereunder. Provisions regulating mobilehome parks shall be set forth in separate and distinct articles of any subdivision and land development ordinance adopted pursuant to Article V31 or any planned residential development provisions adopted pursuant to Article VII.

30. 53 P.S. § 10701 et seq. 31. 53 P.S. § 10501 et seq.

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GOVERNMENT REGULATION

Ch. 41

Part IV Ch. 36–40 Insurance Part V Ch. 41–48A Zoning, etc. Part VI Ch. 49–56 Taxation Part VII Ch. 57–63 Litigation Part VIII Ch. 64–67 L/T Part IX Ch. 68–72 Condos, etc. Index

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Part III Ch. 23–35 Mortgages

549

Part II Ch. 15–22 Deeds

32. 53 P.S. § 10901 et seq.

Part I Ch. 1–14 Brokers

§ 502.  Jurisdiction of county planning agencies; adoption by reference of county subdivision and land development ordinances (a)   When any county has adopted a subdivision and land development ordinance in accordance with the terms of this article, a certified copy of the ordinance shall be sent to every municipality within the county. All amendments shall also be sent to the aforementioned municipalities. The powers of governing bodies of counties to enact, amend and repeal subdivision and land development ordinances shall be limited to land in those municipalities wholly or partly within the county which have no subdivision and land development ordinance in effect at the time a subdivision and land development ordinance is introduced before the governing body of the county, and until the municipal subdivision and land development ordinance is in effect and a certified copy of such ordinance is filed with the county planning agency, if one exists. (b)   The enactment of a subdivision and land development ordinance by any municipality, other than a county, whose land is subject to a county subdivision and land development ordinance shall act as a repeal pro tanto of the county subdivision and land development ordinance within the municipality adopting such ordinance. However, applications for subdivision and land development located within a municipality having adopted a subdivision and land development ordinance as set forth in this article shall be forwarded upon receipt by the municipality to the county planning agency for review and report together with a fee sufficient to cover the costs of the review and report which fee shall be paid by the applicant: Provided, That such municipalities shall not approve such applications until the county report is received or until the expiration of 30 days from the date the application was forwarded to the county. (c)   Further, any municipality other than a county may adopt by reference the subdivision and land development ordinance of the county, and may by separate ordinance designate the county planning agency, with the county planning agency’s concurrence, as its official administrative agency for review and approval of plats. § 502.1.  Contiguous municipalities (a)  The county planning commission shall offer a mediation option to any municipality which believes that its citizens will experience harm as the result of an applicant’s proposed subdivision or development of land in a contiguous municipality if the municipalities agree. In exercising such an option, the municipalities shall comply with the procedures set forth in Article IX.32 The cost of the mediation shall be shared equally by the municipalities unless otherwise agreed. The applicant shall have the right to participate in the mediation. (b)   The governing body of the municipality may appear and comment before the governing body of a contiguous municipality and the various boards and commissions of the contiguous municipality considering a proposed subdivision, change of land use or land development. § 503.  Contents of subdivision and land development ordinance The subdivision and land development ordinance may include, but need not be limited to: (1)   Provisions for the submittal and processing of plats, including the charging of review fees, and specifications for such plats, including certification as to the accuracy of plats and provisions for preliminary and final approval and for processing of final approval by stages or sections of development. Such plats and surveys shall be prepared in accordance with the act of May 23,

Table of Contents

PART V

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§ 503

MUNICIPALITIES PLANNING CODE

1945 (P.L. 913, No. 367),33 known as the “Engineer, Land Surveyor and Geologist Registration Law,” except that this requirement shall not preclude the preparation of a plat in accordance with the act of January 24, 1966 (1965 P.L. 1527, No. 535),34 known as the “Landscape Architects’ Registration Law,” when it is appropriate to prepare the plat using professional services as set forth in the def­inition of the “practice of landscape architecture” under section 2 of that act.35 Review fees may include reasonable and necessary charges by the municipality’s professional consultants for review and report thereon to the municipality. Such review fees shall be based upon a schedule established by ordinance or resolution. Such review fees shall be reasonable and in accordance with the ordinary and customary charges for similar service in the community, but in no event shall the fees exceed the rate or cost charged by the professional consultant for comparable services to the municipality for services which are not reimbursed or otherwise imposed on applicants. Fees charged to the municipality relating to any appeal of a decision on an application shall not be considered review fees and may not be charged to an applicant. (i)   The governing body shall submit to the applicant an itemized bill showing work performed, identifying the person performing the services and the time and date spent for each task. Nothing in this subparagraph shall prohibit interim itemized billing or municipal escrow or other security requirements. In the event the applicant disputes the amount of any such review fees, the applicant shall, no later than 100 days after the date of transmittal of the bill to the applicant, notify the municipality and the municipality’s professional consultant that such fees are disputed and shall explain the basis of their objections to the fees charged, in which case the municipality shall not delay or disapprove a subdivision or land development application due to the applicant’s dispute over fees. Failure of the applicant to dispute a bill within 100 days shall be a waiver of the applicant’s right to arbitration of that bill under section 510(g).36 (ii)   In the event that the municipality’s professional consultant and the applicant cannot agree on the amount of review fees which are reasonable and necessary, then the applicant and the municipality shall follow the procedure for dispute resolution set forth in section 510(g), provided that the arbitrator resolving such dispute shall be of the same profession or discipline as the professional consultant whose fees are being disputed. (iii)   Subsequent to a decision on an application, the governing body shall submit to the applicant an itemized bill for review fees, specifically designated as a final bill. The final bill shall include all review fees incurred at least through the date of the decision on the application. If for any reason additional review is required subsequent to the decision, including inspections and other work to satisfy the conditions of the approval, the review fees shall be charged to the applicant as a supplement to the final bill. (1.1)  Provisions for the exclusion of certain land development from the ­definition of land development contained in section 10737 only when such land development involves: (i)   the conversion of an existing single–family detached dwelling or single family semi–detached dwelling into not more than three residential units, unless such units are intended to be a condominium;

33. 34. 35. 36. 37.

63 63 63 53 53

P.S. P.S. P.S. P.S. P.S.

§ § § § §

148 et seq. 901 et seq. 902. 10510. 107.

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GOVERNMENT REGULATION

Ch. 41

Part V Ch. 41–48A Zoning, etc. Part VI Ch. 49–56 Taxation Part VII Ch. 57–63 Litigation Part VIII Ch. 64–67 L/T Part IX Ch. 68–72 Condos, etc.

(6)  Provisions for encouraging the use of renewable energy systems and energy–conserving building design.

Part IV Ch. 36–40 Insurance

(5)   Provisions for encouraging and promoting flexibility, economy and ingenuity in the layout and design of subdivisions and land developments, including provisions authorizing alterations in site requirements and for encouraging other practices which are in accordance with modern and evolving principles of site planning and development.

Part III Ch. 23–35 Mortgages

(4.1)   Provisions which apply uniformly throughout the municipality regulating minimum setback lines and minimum lot sizes which are based upon the availability of water and sewage, in the event the municipality has not enacted a zoning ordinance.

Part II Ch. 15–22 Deeds

(4)  Provisions which take into account phased land development not intended for the immediate erection of buildings where streets, curbs, gutters, street lights, fire hydrants, water and sewage facilities and other improvements may not be possible to install as a condition precedent to final approval of plats, but will be a condition precedent to the erection of buildings on lands included in the approved plat.

Part I Ch. 1–14 Brokers

(ii)   the addition of an accessory building, including farm buildings, on a lot or lots subordinate to an existing principal building; or (iii)   the addition or conversion of buildings or rides within the confines of an enterprise which would be considered an amusement park. For purposes of this subclause, an amusement park is defined as a tract or area used principally as a location for permanent amusement structures or rides. This exclusion shall not apply to newly acquired acreage by an amusement park until initial plans for the expanded area have been approved by proper authorities. (2)   Provisions for insuring that: (i)   the layout or arrangement of the subdivision or land development shall conform to the comprehensive plan and to any regulations or maps adopted in furtherance thereof; (ii)   streets in and bordering a subdivision or land development shall be coordinated, and be of such widths and grades and in such locations as deemed necessary to accommodate prospective traffic, and facilitate fire protection; (iii)   adequate easements or right–of–way shall be provided for drainage and utilities; (iv)   reservations if any by the developer of any area designed for use as public grounds shall be suitable size and location for their designated uses; and (v) land which is subject to flooding, subsidence or underground fires either shall be made safe for the purpose for which such land is proposed to be used, or that such land shall be set aside for uses which shall not endanger life or property or further aggravate or increase the existing menace. (3)   Provisions governing the standards by which streets shall be designed, graded and improved, and walkways, curbs, gutters, street lights, fire hydrants, water and sewage facilities and other improvements shall be installed as a condition precedent to final approval of plats in accordance with the requirements of section 509.38 The standards shall insure that the streets be improved to such a condition that the streets are passable for vehicles which are intended to use that street: Provided, however, that no municipality shall be required to accept such streets for public dedication until the streets meet such additional standards and specifications as the municipality may require for public dedication.

Table of Contents

PART V

38. 53 P.S. § 10509.

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Index

551

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§ 503

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(7)   Provisions for soliciting reviews and reports from adjacent municipalities and other governmental agencies affected by the plans. (8)   Provisions for administering waivers or modifications to the minimum standards of the ordinance in accordance with section 512.1,39 when the literal compliance with mandatory provisions is shown to the satisfaction of the governing body or planning agency, where applicable, to be unreasonable, to cause undue hardship, or when an alternative standard can be demonstrated to provide equal or better results. (9)   Provisions for the approval of a plat, whether preliminary or final, subject to conditions acceptable to the applicant and a procedure for the applicant’s acceptance or rejection of any conditions which may be imposed, including a provision that approval of a plat shall be rescinded automatically upon the applicant’s failure to accept or reject such conditions within such time limit as may be established by the governing ordinance. (10)  Provisions and standards for insuring that new developments incorporate adequate provisions for a reliable, safe and adequate water supply to support intended uses within the capacity of available resources. (11)   Provisions requiring the public dedication of land suitable for the use intended; and, upon agreement with the applicant or developer, the construction of recreational facilities, the payment of fees in lieu thereof, the private reservation of the land, or a combination, for park or recreation purposes as a condition precedent to final plan approval, provided that: (i)   The provisions of this paragraph shall not apply to any plan application, whether preliminary or final, pending at the time of enactment of such provisions. (ii)   The ordinance includes definite standards for determining the proportion of a development to be dedicated and the amount of any fee to be paid in lieu thereof. (iii)   The land or fees, or combination thereof, are to be used only for the purpose of providing, acquiring, operating or maintaining park or recreational facilities reasonably accessible to the development. (iv)   The governing body has a formally adopted recreation plan, and the park and recreational facilities are in accordance with definite principles and standards contained in the subdivision and land development ordinance. (v)   The amount and location of land to be dedicated or the fees to be paid shall bear a reasonable relationship to the use of the park and recreational facilities by future inhabitants of the development or subdivision. (vi)  A fee authorized under this subsection shall, upon its receipt by a municipality, be deposited in an interest-bearing account, clearly identified as reserved for providing, acquiring, operating or maintaining park or recreational facilities. Interest earned on such accounts shall become funds of that account. (vii)   Upon request of any person who paid any fee under this subsection, the municipality shall refund such fee, plus interest accumulated thereon from the date of payment, if the municipality had used the fee paid for a purpose other than the purposes set forth in this section. (viii)  No municipality shall have the power to require the construction of recreational facilities or the dedication of land, or fees in lieu thereof, or private reservation except as may be provided by statute.

39. 53 P.S. § 10512.1.

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GOVERNMENT REGULATION

Ch. 41

Table of Contents

PART V

§ 503.1.  Water supply

Part IX Ch. 68–72 Condos, etc. Index

gtb-parealestate22-all.indb 553

Part VIII Ch. 64–67 L/T

553

Part VII Ch. 57–63 Litigation

§ 506.  Publication, advertisement and availability of ordinance (a)   Proposed subdivision and land development ordinances and amendments shall not be enacted unless notice of proposed enactment is given in the manner set forth in this section, and shall include the time and place of the meeting at

Part VI Ch. 49–56 Taxation

(a)  Amendments to the subdivision and land development ordinance shall become effective only after a public hearing held pursuant to public notice in the manner prescribed for enactment of a proposed ordinance by this article. In addition, in case of an amendment other than that prepared by the planning agency, the governing body shall submit each such amendment to the planning agency for recommendations at least 30 days prior to the date fixed for the public hearing on such proposed amendment. If a county planning agency shall have been created for the county in which the municipality proposing the amendment is located, then, at least 30 days prior to the hearing on the amendment, the municipality shall submit the proposed amendment to said county planning agency for recommendations. (b)   Within 30 days after adoption, the governing body of a municipality, other than a county, shall forward a certified copy of any amendment to the subdivision and land development ordinance to the county planning agency or, in counties where no planning agency exists, to the governing body of the county in which the municipality is located.

Part V Ch. 41–48A Zoning, etc.

§ 505.   Enactment of subdivision and land development ordinance amendment

Part IV Ch. 36–40 Insurance

(b)   Within 30 days after adoption, the governing body of a municipality, other than a county, shall forward a certified copy of the subdivision and land development ordinance to the county planning agency or, in counties where no planning agency exists, to the governing body of the county in which the municipality is located.

Part III Ch. 23–35 Mortgages

(a)   Before voting on the enactment of a proposed subdivision and land development ordinance, the governing body shall hold a public hearing thereon pursuant to public notice. A brief summary setting forth the principal provisions of the proposed ordinance and a reference to the place within the municipality where copies of the proposed ordinance may be secured or examined shall be incorporated in the public notice. Unless the proposed subdivision and land development ordinance shall have been prepared by the planning agency, the governing body shall submit the ordinance to the planning agency at least 45 days prior to the hearing on such ordinance to provide the planning agency an opportunity to submit recommendations. If a county planning agency shall have been created for the county in which the municipality adopting the ordinance is located, then, at least 45 days prior to the public hearing on the ordinance, the municipality shall submit the proposed ordinance to said county planning agency for recommendations.

Part II Ch. 15–22 Deeds

§ 504.  Enactment of subdivision and land development ordinance

Part I Ch. 1–14 Brokers

Every ordinance adopted pursuant to this article shall include a provision that, if water is to be provided by means other than by private wells owned and maintained by the individual owners of lots within the subdivision or development, applicants shall present evidence to the governing body or planning agency, as the case may be, that the subdivision or development is to be supplied by a certificated public utility, a bona fide cooperative association of lot owners, or by a municipal corporation, authority or utility. A copy of a Certificate of Public Convenience from the Pennsylvania Public Utility Commission or an application for such certificate, a cooperative agreement or a commitment or agreement to serve the area in question, whichever is appropriate, shall be acceptable evidence.

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§ 507

MUNICIPALITIES PLANNING CODE

which passage will be considered, a reference to a place within the municipality where copies of the proposed ordinance or amendment may be examined without charge or obtained for a charge not greater than the cost thereof. The governing body shall publish the proposed ordinance or amendment once in one newspaper of general circulation in the municipality not more than 60 days nor less than seven days prior to passage. Publication of the proposed ordinance or amendment shall include either the full text thereof or the title and a brief summary, prepared by the municipal solicitor and setting forth all the provisions in reasonable detail. If the full text is not included: (1)   A copy thereof shall be supplied to a newspaper of general circulation in the municipality at the time the public notice is published. (2)   An attested copy of the proposed ordinance shall be filed in the county law library or other county office designated by the county commissioners, who may impose a fee no greater than that necessary to cover the actual costs of storing said ordinances. (b)   In the event substantial amendments are made in the proposed ordinance or amendment, before voting upon enactment, the governing body shall, at least ten days prior to enactment, readvertise, in one newspaper of general circulation in the municipality, a brief summary setting forth all the provisions in reasonable detail together with a summary of the amendments. (c)  Subdivision and land development ordinances and amendments may be incorporated into official ordinance books by reference with the same force and effect as if duly recorded therein. § 507.  Effect of subdivision and land development ordinance Where a subdivision and land development ordinance has been enacted by a municipality under the authority of this article no subdivision or land development of any lot, tract or parcel of land shall be made, no street, sanitary sewer, storm sewer, water main or other improvements in connection therewith shall be laid out, constructed, opened or dedicated for public use or travel, or for the common use of occupants of buildings abutting thereon, except in accordance with the provisions of such ordinance. § 508.  Approval of plats All applications for approval of a plat (other than those governed by Article VII),40 whether preliminary or final, shall be acted upon by the governing body or the planning agency within such time limits as may be fixed in the subdivision and land development ordinance but the governing body or the planning agency shall render its decision and communicate it to the applicant not later than 90 days following the date of the regular meeting of the governing body or the planning agency (whichever first reviews the application) next following the date the application is filed or after a final order of court remanding an application, provided that should the said next regular meeting occur more than 30 days following the filing of the application or the final order of the court, the said 90-day period shall be measured from the 30th day following the day the application has been filed. (1)   The decision of the governing body or the planning agency shall be in writing and shall be communicated to the applicant personally or mailed to him at his last known address not later than 15 days following the decision. (2)  When the application is not approved in terms as filed the decision shall specify the defects found in the application and describe the requirements which have not been met and shall, in each case, cite to the provisions of the statute or ordinance relied upon. 40. 53 P.S. § 10701 et seq.

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GOVERNMENT REGULATION

Ch. 41

Part III Ch. 23–35 Mortgages Part IV Ch. 36–40 Insurance Part V Ch. 41–48A Zoning, etc. Part VI Ch. 49–56 Taxation Part VII Ch. 57–63 Litigation Part VIII Ch. 64–67 L/T Part IX Ch. 68–72 Condos, etc. Index

gtb-parealestate22-all.indb 555

Part II Ch. 15–22 Deeds

555

Part I Ch. 1–14 Brokers

(3)   Failure of the governing body or agency to render a decision and communicate it to the applicant within the time and in the manner required herein shall be deemed an approval of the application in terms as presented unless the applicant has agreed in writing to an extension of time or change in the prescribed manner of presentation of communication of the decision, in which case, failure to meet the extended time or change in manner of presentation of communication shall have like effect. (4)   Changes in the ordinance shall affect plats as follows: (i)   From the time an application for approval of a plat, whether preliminary or final, is duly filed as provided in the subdivision and land development ordinance, and while such application is pending approval or disapproval, no change or amendment of the zoning, subdivision or other governing ordinance or plan shall affect the decision on such application adversely to the applicant and the applicant shall be entitled to a decision in accordance with the provisions of the governing ordinances or plans as they stood at the time the application was duly filed. In addition, when a preliminary application has been duly approved, the applicant shall be entitled to final approval in accordance with the terms of the approved preliminary application as hereinafter provided. However, if an application is properly and finally denied, any subsequent application shall be subject to the intervening change in governing regulations. (ii)   When an application for approval of a plat, whether preliminary or ­final, has been approved without conditions or approved by the applicant’s acceptance of conditions, no subsequent change or amendment in the zoning, subdivision or other governing ordinance or plan shall be applied to affect adversely the right of the applicant to commence and to complete any aspect of the approved development in accordance with the terms of such approval within five years from such approval. The five-year period shall be extended for the duration of any litigation, including appeals, which prevent the commencement or completion of the development and for the duration of any sewer or utility moratorium or prohibition which was imposed subsequent to the filing of an application for preliminary approval of a plat. In the event of an appeal filed by any party from the approval or disapproval of a plat, the five-year period shall be extended by the total time from the date the appeal was filed until a final order in such matter has been entered and all appeals have been concluded and any period for filing appeals or requests for reconsideration have expired, provided, however, no extension shall be based upon any water or sewer moratorium which was in effect as of the date of the filing of a preliminary application. (iii)   Where final approval is preceded by preliminary approval, the aforesaid five-year period shall be counted from the date of the preliminary approval. In the case of any doubt as to the terms of a preliminary approval, the terms shall be construed in the light of the provisions of the governing ordinances or plans as they stood at the time when the application for such approval was duly filed. (iv)   Where the landowner has substantially completed the required improvements as depicted upon the final plat within the aforesaid five-year limit, or any extension thereof as may be granted by the governing body, no change of municipal ordinance or plan enacted subsequent to the date of filing of the preliminary plat shall modify or revoke any aspect of the approved final plat pertaining to zoning classification or density, lot, building, street or utility location. (v)  In the case of a preliminary plat calling for the installation of improvements beyond the five-year period, a schedule shall be filed by the landowner with the preliminary plat delineating all proposed sections as

Table of Contents

PART V

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§ 508

MUNICIPALITIES PLANNING CODE

well as deadlines within which applications for final plat approval of each section are intended to be filed. Such schedule shall be updated annually by the applicant on or before the anniversary of the preliminary plat approval, until final plat approval of the final section has been granted and any modification in the aforesaid schedule shall be subject to approval of the governing body in its discretion. (vi)   Each section in any residential subdivision or land development, except for the last section, shall contain a minimum of 25% of the total number of dwelling units as depicted on the preliminary plan, unless a lesser percentage is approved by the governing body in its discretion. Provided the landowner has not defaulted with regard to or violated any of the conditions of the preliminary plat approval, including compliance with landowner’s aforesaid schedule of submission of final plats for the various sections, then the aforesaid protections afforded by substantially completing the improvements depicted upon the final plat within five years shall apply and for any section or sections, beyond the initial section, in which the required improvements have not been substantially completed within said five-year period the aforesaid protections shall apply for an additional term or terms of three years from the date of final plat approval for each section. (vii)   Failure of landowner to adhere to the aforesaid schedule of submission of final plats for the various sections shall subject any such section to any and all changes in zoning, subdivision and other governing ordinance enacted by the municipality subsequent to the date of the initial preliminary plan submission. (5)   Before acting on any subdivision plat, the governing body or the planning agency, as the case may be, may hold a public hearing thereon after public notice. (6)   No plat which will require access to a highway under the jurisdiction of the Department of Transportation shall be finally approved unless the plat contains a notice that a highway occupancy permit is required pursuant to section 420 of the act of June 1, 1945 (P.L. 1242, No. 428),41 known as the “State Highway Law,” before driveway access to a State highway is permitted. The department shall, within sixty days of the date of receipt of an application for a highway occupancy permit, (i) approve the permit, which shall be valid thereafter unless, prior to commencement of construction thereunder, the geographic, physical or other conditions under which the permit is approved change, requiring modification or denial of the permit, in which event the department shall give notice thereof in accordance with regulations, (ii) deny the permit, (iii) return the application for additional information or correction to conform with department regulations or (iv) determine that no permit is required in which case the department shall notify the municipality and the applicant in writing. If the department shall fail to take any action within the 60-day period, the permit will be deemed to be issued. The plat shall be marked to indicate that access to the State highway shall be only as authorized by a highway occupancy permit. Neither the department nor any municipality to which permit-issuing authority has been delegated under section 420 of the “State Highway Law” shall be liable in damages for any injury to persons or property arising out of the issuance or denial of a driveway permit, or for failure to regulate any driveway. Furthermore, the municipality from which the building permit approval has been requested shall not be held liable for damages to persons or property arising out of the issuance or denial of a driveway permit by the department.

41. 36 P.S. § 670-420.

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GOVERNMENT REGULATION

Ch. 41

Part VI Ch. 49–56 Taxation Part VII Ch. 57–63 Litigation Part VIII Ch. 64–67 L/T Part IX Ch. 68–72 Condos, etc. Index

gtb-parealestate22-all.indb 557

Part V Ch. 41–48A Zoning, etc.

557

Part IV Ch. 36–40 Insurance

42. 53 P.S. § 10901 et seq. 43. 36 P.S. § 670-420.

Part III Ch. 23–35 Mortgages

(d)   Such financial security shall be posted with a bonding company or Federal or Commonwealth chartered lending institution chosen by the party posting the financial security, provided said bonding company or lending institution is authorized to conduct such business within the Commonwealth.

Part II Ch. 15–22 Deeds

(c)   Without limitation as to other types of financial security which the municipality may approve, which approval shall not be unreasonably withheld, Federal or Commonwealth chartered lending institution irrevocable letters of credit and restrictive or escrow accounts in such lending institutions shall be deemed acceptable financial security for the purposes of this section.

Part I Ch. 1–14 Brokers

(7)  The municipality may offer a mediation option as an aid in completing proceedings authorized by this section. In exercising such an option, the municipality and mediating parties shall meet the stipulations and follow the procedures set forth in Article IX.42 § 508.1.  Notice to School District. Each month a municipality shall notify in writing the superintendent of a school district in which a plan for a residential development was finally approved by the municipality during the preceding month. The notice shall include, but not be limited to, the location of the development, the number and types of units to be included in the development and the expected construction schedule of the development. § 509.  Completion of improvements or guarantee thereof prerequisite to final plat approval (a)   No plat shall be finally approved unless the streets shown on such plat have been improved to a mud-free or otherwise permanently passable condition, or improved as may be required by the subdivision and land development ordinance and any walkways, curbs, gutters, street lights, fire hydrants, shade trees, water mains, sanitary sewers, storm sewers and other improvements as may be required by the subdivision and land development ordinance have been installed in accordance with such ordinance. In lieu of the completion of any improvements required as a condition for the final approval of a plat, including improvements or fees required pursuant to section 509(i), the subdivision and land development ordinance shall provide for the deposit with the municipality of financial security in an amount sufficient to cover the costs of such improvements or common amenities including, but not limited to, roads, storm water detention and/ or retention basins and other related drainage facilities, recreational facilities, open space improvements, or buffer or screen plantings which may be required. The applicant shall not be required to provide financial security for the costs of any improvements for which financial security is required by and provided to the Department of Transportation in connection with the issuance of a highway occupancy permit pursuant to section 420 of the act of June 1, 1945 (P.L. 1242, No. 428), known as the “State Highway Law.”43 (b)  When requested by the developer, in order to facilitate financing, the governing body or the planning agency, if designated, shall furnish the developer with a signed copy of a resolution indicating approval of the final plat contingent upon the developer obtaining a satisfactory financial security. The final plat or record plan shall not be signed nor recorded until the financial improvements agreement is executed. The resolution or letter of contingent approval shall expire and be deemed to be revoked if the financial security agreement is not executed within 90 days unless a written extension is granted by the governing body; such extension shall not be unreasonably withheld and shall be placed in writing at the request of the developer.

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§ 509

MUNICIPALITIES PLANNING CODE

(e)  Such bond, or other security shall provide for, and secure to the public, the completion of any improvements which may be required on or before the date fixed in the formal action of approval or accompanying agreement for completion of the improvements. (f)  The amount of financial security to be posted for the completion of the required improvements shall be equal to 110% of the cost of completion estimated as of 90 days following the date scheduled for completion by the developer. Annually, the municipality may adjust the amount of the financial security by comparing the actual cost of the improvements which have been completed and the estimated cost for the completion of the remaining improvements as of the expiration of the 90th day after either the original date scheduled for completion or a rescheduled date of completion. Subsequent to said adjustment, the municipality may require the developer to post additional security in order to assure that the financial security equals said 110%. Any additional security shall be posted by the developer in accordance with this subsection. (g)   The amount of financial security required shall be based upon an estimate of the cost of completion of the required improvements, submitted by an applicant or developer and prepared by a professional engineer licensed as such in this Commonwealth and certified by such engineer to be a fair and reasonable estimate of such cost. The municipality, upon the recommendation of the municipal engineer, may refuse to accept such estimate for good cause shown. If the applicant or developer and the municipality are unable to agree upon an estimate, then the estimate shall be recalculated and recertified by another professional engineer licensed as such in this Commonwealth and chosen mutually by the municipality and the applicant or developer. The estimate certified by the third engineer shall be presumed fair and reasonable and shall be the final estimate. In the event that a third engineer is so chosen, fees for the services of said engineer shall be paid equally by the municipality and the applicant or developer. (h)  If the party posting the financial security requires more than one year from the date of posting of the financial security to complete the required improvements, the amount of financial security may be increased by an additional 10% for each one-year period beyond the first anniversary date from posting of financial security or to an amount not exceeding 110% of the cost of completing the required improvements as reestablished on or about the expiration of the preceding one-year period by using the above bidding procedure. (i)   In the case where development is projected over a period of years, the governing body or the planning agency may authorize submission of final plats by section or stages of development subject to such requirements or guarantees as to improvements in future sections or stages of development as it finds essential for the protection of any finally approved section of the development. (j)   As the work of installing the required improvements proceeds, the party posting the financial security may request the governing body to release or authorize the release, from time to time, such portions of the financial security necessary for payment to the contractor or contractors performing the work. Any such requests shall be in writing addressed to the governing body, and the governing body shall have 45 days from receipt of such request within which to allow the municipal engineer to certify, in writing, to the governing body that such portion of the work upon the improvements has been completed in accordance with the approved plat. Upon such certification the governing body shall authorize release by the bonding company or lending institution of an amount as ­estimated by the municipal engineer fairly representing the value of the improvements completed or, if the governing body fails to act within said 45-day period, the governing body shall be deemed to have approved the release of funds as requested. The governing body may, prior to final release at the time of completion and certification by its engineer, retain 10% of the original amount of the posted financial security for the aforesaid improvements.

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GOVERNMENT REGULATION

Ch. 41

Part IX Ch. 68–72 Condos, etc. Index

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Part VIII Ch. 64–67 L/T

559

Part VII Ch. 57–63 Litigation

(c)   If the municipal governing body or the municipal engineer fails to comply with the time limitation provisions contained herein, all improvements will be deemed to have been approved and the developer shall be released from all liability, pursuant to its performance guaranty bond or other security agreement.

Part VI Ch. 49–56 Taxation

(b)   The municipal governing body shall notify the developer, within 15 days of receipt of the engineer’s report, in writing by certified or registered mail of the action of said municipal governing body with relation thereto.

Part V Ch. 41–48A Zoning, etc.

(a)   When the developer has completed all of the necessary and appropriate improvements, the developer shall notify the municipal governing body, in writing, by certified or registered mail, of the completion of the aforesaid improvements and shall send a copy thereof to the municipal engineer. The municipal governing body shall, within ten days after receipt of such notice, direct and authorize the municipal engineer to inspect all of the aforesaid improvements. The municipal engineer shall, thereupon, file a report, in writing, with the municipal governing body, and shall promptly mail a copy of the same to the developer by certified or registered mail. The report shall be made and mailed within 30 days after receipt by the municipal engineer of the aforesaid authorization from the governing body; said report shall be detailed and shall indicate approval or rejection of said improvements, either in whole or in part, and if said improvements, or any portion thereof, shall not be approved or shall be rejected by the municipal engineer, said report shall contain a statement of reasons for such nonapproval or rejection.

Part IV Ch. 36–40 Insurance

§ 510.  Release from improvement bond

Part III Ch. 23–35 Mortgages

(m)  If financial security has been provided in lieu of the completion of improvements required as a condition for the final approval of a plat as set forth in this section, the municipality shall not condition the issuance of building, grading or other permits relating to the erection or placement of improvements, including buildings, upon the lots or land as depicted upon the final plat upon actual completion of the improvements depicted upon the approved final plat. Moreover, if said financial security has been provided, occupancy permits for any building or buildings to be erected shall not be withheld following: the improvement of the streets providing access to and from existing public roads to such building or buildings to a mud-free or otherwise permanently passable condition, as well as the completion of all other improvements as depicted upon the approved plat, either upon the lot or lots or beyond the lot or lots in question if such improvements are necessary for the reasonable use of or occupancy of the building or buildings. Any ordinance or statute inconsistent herewith is hereby expressly repealed.

Part II Ch. 15–22 Deeds

(l)   If water mains or sanitary sewer lines, or both, along with apparatus or facilities related thereto, are to be installed under the jurisdiction and pursuant to the rules and regulations of a public utility or municipal authority separate and distinct from the municipality, financial security to assure proper completion and maintenance thereof shall be posted in accordance with the regulations of the controlling public utility or municipal authority and shall not be included within the financial security as otherwise required by this section.

Part I Ch. 1–14 Brokers

(k)   Where the governing body accepts dedication of all or some of the required improvements following completion, the governing body may require the posting of financial security to secure structural integrity of said dedicated improvements as well as the functioning of said dedicated improvements in accordance with the design and specifications as depicted on the final plat for a term not to exceed 18 months from the date of acceptance of dedication. Said financial security shall be of the same type as otherwise required in this section with regard to installation of such improvements, and the amount of the financial security shall not exceed 15% of the actual cost of installation of said dedicated improvements.

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§ 510

MUNICIPALITIES PLANNING CODE

(d)   If any portion of the said improvements shall not be approved or shall be rejected by the municipal governing body, the developer shall proceed to complete the same and, upon completion, the same procedure of notification, as outlined herein, shall be followed. (e)   Nothing herein, however, shall be construed in limitation of the developer’s right to contest or question by legal proceedings or otherwise, any determination of the municipal governing body or the municipal engineer. (f)   Where herein reference is made to the municipal engineer, he shall be as a consultant thereto. (g)  The municipality may prescribe that the applicant shall reimburse the municipality for the reasonable and necessary expense incurred in connection with the inspection of improvements. The applicant shall not be required to reimburse the governing body for any inspection which is duplicative of inspections conducted by other governmental agencies or public utilities. The burden of proving that any inspection is duplicative shall be upon the objecting applicant. Such reimbursement shall be based upon a schedule established by ordinance or resolution. Such expense shall be reasonable and in accordance with the ordinary and customary fees charged by the municipality’s professional consultant for work performed for similar services in the community, but in no event shall the fees exceed the rate or cost charged by the professional consultant to the municipality for comparable services when fees are not reimbursed or otherwise imposed on applicants. (1)   The governing body shall submit to the applicant an itemized bill showing the work performed in connection with the inspection of improvements performed, identifying the person performing the services and the time and date spent for each task. In the event the applicant disputes the amount of any such expense in connection with the inspection of improvements, the applicant shall, no later than 100 days after the date of transmittal of a bill for inspection services, notify the municipality and the municipality’s professional consultant that such inspection expenses are disputed as unreasonable or unnecessary and shall explain the basis of their objections to the fees charged, in which case the municipality shall not delay or disapprove a request for release of financial security, a subdivision or land development application or any approval or permit related to development due to the applicant’s dispute of inspection expenses. Failure of the applicant to dispute a bill within 100 days shall be a waiver of the applicant’s right to arbitration of that bill under this section. (1.1)   Subsequent to the final release of financial security for completion of improvements for a subdivision or land development, or any phase thereof, the professional consultant shall submit to the governing body a bill for inspection services, specifically designated as a final bill, which the governing body shall submit to the applicant. The final bill shall include inspection fees incurred through the release of financial security. (2)  If the professional consultant and the applicant cannot agree on the amount of expenses which are reasonable and necessary, then the applicant shall have the right, within 100 days of the transmittal of the final bill or supplement to the final bill to the applicant, to request the appointment of another professional consultant to serve as an arbitrator. The applicant and professional consultant whose fees are being challenged shall, by mutual agreement, appoint another professional consultant to review any bills the applicant has disputed and which remain unresolved and make a determination as to the amount thereof which is reasonable and necessary. The arbitrator shall be of the same profession as the professional consultant whose fees are being challenged. (3)   The arbitrator so appointed shall hear such evidence and review such documentation as the arbitrator in his or her sole opinion deems necessary

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Ch. 41

Index

gtb-parealestate22-all.indb 561

Part IX Ch. 68–72 Condos, etc.

561

Part VIII Ch. 64–67 L/T

(a)   The governing body or the planning agency, if authorized to approve applications within the subdivision and land development ordinance, may grant a modification of the requirements of one or more provisions if the literal enforcement will exact undue hardship because of peculiar conditions pertaining to the land in question, provided that such modification will not be contrary to the public interest and that the purpose and intent of the ordinance is observed.

Part VII Ch. 57–63 Litigation

§ 512.1.  Modifications

Part VI Ch. 49–56 Taxation

§ 512.  Repealed. 1972, June 1, P.L. 333, No. 93, § 5

Part V Ch. 41–48A Zoning, etc.

In the event that any improvements which may be required have not been installed as provided in the subdivision and land development ordinance or in accord with the approved final plat the governing body of the municipality is hereby granted the power to enforce any corporate bond, or other security by appropriate legal and equitable remedies. If proceeds of such bond, or other security are insufficient to pay the cost of installing or making repairs or corrections to all the improvements covered by said security, the governing body of the municipality may, at its option, install part of such improvements in all or part of the subdivision or land development and may institute appropriate legal or equitable action to recover the moneys necessary to complete the remainder of the improvements. All of the proceeds, whether resulting from the security or from any legal or equitable action brought against the developer, or both, shall be used solely for the installation of the improvements covered by such security, and not for any other municipal purpose.

Part IV Ch. 36–40 Insurance

§ 511.  Remedies to effect completion of improvements

Part III Ch. 23–35 Mortgages

(5)   The fee of the arbitrator shall be paid by the applicant if the disputed fee is upheld by the arbitrator. The fee of the arbitrator shall be paid by the charging party if the disputed fee is $2,500 or greater than the payment decided by the arbitrator. The fee of the arbitrator shall be paid in an equal amount by the applicant and the charging party if the disputed fee is less than $2,500 of the payment decided by the arbitrator. (6)  In the event that the disputed fees have been paid and the arbitrator finds that the disputed fees are unreasonable or excessive by more than $10,000, the arbitrator shall: (i)   award the amount of the fees found to be unreasonable or excessive to the party that paid the disputed fee; and (ii)  impose a surcharge of 4% of the amount found as unreasonable or excessive to be paid to the party that paid the disputed fee. (7)   A municipality or an applicant shall have 100 days after paying a fee to dispute any fee charged as being unreasonable or excessive.

Part II Ch. 15–22 Deeds

(4)   In the event that the municipality’s professional consultant and applicant cannot agree upon the arbitrator to be appointed within 20 days of the request for appointment of an arbitrator, then, upon application of either party, the President Judge of the Court of Common Pleas of the judicial district in which the municipality is located (or if at the time there be no President Judge, then the senior active judge then sitting) shall appoint such arbitrator, who, in that case, shall be neither the municipality’s professional consultant nor any professional consultant who has been retained by, or performed services for, the municipality or the applicant within the preceding five years.

Part I Ch. 1–14 Brokers

and shall render a decision no later than 50 days after the date of appointment. Based on the decision of the arbitrator, the applicant or the professional consultant whose fees were challenged shall be required to pay any amounts necessary to implement the decision within 60 days. In the event the municipality has paid the professional consultant an amount in excess of the amount determined to be reasonable and necessary, the professional consultant shall within 60 days reimburse the excess payment.

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PART V

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§ 513

MUNICIPALITIES PLANNING CODE

(b)  All requests for a modification shall be in writing and shall accompany and be a part of the application for development. The request shall state in full the grounds and facts of unreasonableness or hardship on which the request is based, the provision or provisions of the ordinance involved and the minimum modification necessary. (c)   If approval power is reserved by the governing body, the request for modification may be referred to the planning agency for advisory comments. (d)   The governing body or the planning agency, as the case may be, shall keep a written record of all action on all requests for modifications. § 513.  Recording plats and deeds (a)   Upon the approval of a final plat, the developer shall within 90 days of such final approval or 90 days after the date of delivery of an approved plat signed by the governing body following completion of conditions imposed for such approval, whichever is later, record such plat in the office of the recorder of deeds of the county in which the municipality is located. Whenever such plat approval is required by a municipality, the recorder of deeds of the county shall not accept any plat for recording, unless such plat officially notes the approval of the governing body and review by the county planning agency, if one exists. (b)  The recording of the plat shall not constitute grounds for assessment increases until such time as lots are sold or improvements are installed on the land included within the subject plat. § 514.  Effect of plat approval on official map After a plat has been approved and recorded as provided in this article, all streets and public grounds on such plat shall be, and become a part of the official map of the municipality without public hearing. § 515.  Repealed. 1988, Dec. 21, P.L. 1329, No. 170, § 43, effective in 60 days. § 515.1.  Preventive remedies (a)   In addition to other remedies, the municipality may institute and maintain appropriate actions by law or in equity to restrain, correct or abate violations, to prevent unlawful construction, to recover damages and to prevent illegal occupancy of a building, structure or premises. The description by metes and bounds in the instrument of transfer or other documents used in the process of selling or transferring shall not exempt the seller or transferor from such penalties or from the remedies herein provided. (b)  A municipality may refuse to issue any permit or grant any approval necessary to further improve or develop any real property which has been developed or which has resulted from a subdivision of real property in violation of any ordinance adopted pursuant to this article. This authority to deny such a permit or approval shall apply to any of the following applicants: (1)   The owner of record at the time of such violation. (2)   The vendee or lessee of the owner of record at the time of such violation without regard as to whether such vendee or lessee had actual or constructive knowledge of the violation. (3)   The current owner of record who acquired the property subsequent to the time of violation without regard as to whether such current owner had actual or constructive knowledge of the violation. (4)   The vendee or lessee of the current owner of record who acquired the property subsequent to the time of violation without regard as to whether such vendee or lessee had actual or constructive knowledge of the violation. As an additional condition for issuance of a permit or the granting of an approval to any such owner, current owner, vendee or lessee for the development

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GOVERNMENT REGULATION

Ch. 41

Part IV Ch. 36–40 Insurance Part V Ch. 41–48A Zoning, etc. Part VI Ch. 49–56 Taxation Part VII Ch. 57–63 Litigation Part VIII Ch. 64–67 L/T Part IX Ch. 68–72 Condos, etc.

§ 501-A.  Purposes To further the purposes of this act in an era of increasing development and of a corresponding demand for municipal capital improvements, to insure that the cost of needed capital improvements be applied to new developments in a manner that will allocate equitably the cost of those improvements among property owners and to respond to the increasing difficulty which municipalities are experiencing in developing revenue sources to fund new capital infrastructure from the public sector, the following powers are granted to all municipalities, other than counties, which municipalities have adopted either a municipal or county comprehensive plan, subdivision and land development ordinance and zoning ordinance. § 502-A.  Definitions The following words and phrases when used in this article shall have the meanings given to them in this section unless the context clearly indicates otherwise: “Adjusted for family size,” adjusted in a manner which results in an income eligibility level which is lower for households with fewer than four people, or

Part III Ch. 23–35 Mortgages

Municipal Capital Improvement

Part II Ch. 15–22 Deeds

ARTICLE V-A

Part I Ch. 1–14 Brokers

of any such real property, the municipality may require compliance with the conditions that would have been applicable to the property at the time the applicant acquired an interest in such real property. § 515.2.  Jurisdiction District justices shall have initial jurisdiction in proceedings brought under section 515.3.44 § 515.3.  Enforcement remedies (a)  Any person, partnership or corporation who or which has violated the provisions of any subdivision or land development ordinance enacted under this act or prior enabling laws shall, upon being found liable therefor in a civil enforcement proceeding commenced by a municipality, pay a judgment of not more than $500 plus all court costs, including reasonable attorney fees incurred by the municipality as a result thereof. No judgment shall commence or be imposed, levied or payable until the date of the determination of a violation by the district justice. If the defendant neither pays nor timely appeals the judgment, the municipality may enforce the judgment pursuant to the applicable rules of civil procedure. Each day that a violation continues shall constitute a separate violation, unless the district justice determining that there has been a violation further determines that there was a good faith basis for the person, partnership or corporation violating the ordinance to have believed that there was no such violation, in which event there shall be deemed to have been only one such violation until the fifth day following the date of the determination of a violation by the district justice and thereafter each day that a violation continues shall constitute a separate violation. (b)  The court of common pleas, upon petition, may grant an order of stay, upon cause shown, tolling the per diem judgment pending a final adjudication of the violation and judgment. (c)   Nothing contained in this section shall be construed or interpreted to grant to any person or entity other than the municipality the right to commence any action for enforcement pursuant to this section. § 516.  Repealed. 1972, June 1, P.L. 333, No. 93, § 7

Table of Contents

PART V

44. 53 P.S. § 10515.3.

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Index

563

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higher for households with more than four people, than the base income eligibility level determined as provided in the definition of low- to moderate-income persons based upon a formula as established by the rule of the agency. “Adjusted gross income,” all wages, assets, regular cash or noncash contributions or gifts from persons outside the household, and such other resources and benefits as may be determined to be income by rule of the department, adjusted for family size, less deductions under section 62 of the Internal Revenue Code of 1986 (Public Law 99-514, 26 U.S.C. § 62 et seq.). “Affordable,” with respect to the housing unit to be occupied by low- to moderate-income persons, monthly rents or monthly mortgage payments, including property taxes and insurance, that do not exceed 30% of that amount which represents 100% of the adjusted gross annual income for households within the metropolitan statistical area (MSA) or, if not within the MSA, within the county in which the housing unit is located, divided by 12. “Agency,” the Pennsylvania Housing Finance Agency as created pursuant to the act of December 3, 1959 (P.L. 1688, No. 621),45 known as the “Housing Finance Agency Law.” “Department,” the Department of Community Affairs of the Commonwealth. “Existing deficiencies,” existing highways, roads or streets operating at a level of service below the preferred level of service designated by the municipality, as adopted in the transportation capital improvement plan. “Highways, roads or streets,” any highways, roads or streets identified on the legally adopted municipal street or highway plan or the official map which carry vehicular traffic, together with all necessary appurtenances, including bridges, rights-of-way and traffic control improvements. The term shall not include the interstate highway system. “Impact fee,” a charge or fee imposed by a municipality against new development in order to generate revenue for funding the costs of transportation capital improvements necessitated by and attributable to new development. “Low- to moderate-income persons,” one or more natural persons or a family, the total annual adjusted gross household income of which is less than 100% of the median annual adjusted gross income for households in this Commonwealth or is less than 100% of the median annual adjusted gross income for households within the metropolitan statistical area (MSA) or, if not within the MSA, within the county in which the household is located, whichever is greater. “New development,” any commercial, industrial or residential or other project which involves new construction, enlargement, reconstruction, redevelopment, relocation or structural alteration and which is expected to generate additional vehicular traffic within the transportation service area of the municipality. “Offsite improvements,” those public capital improvements which are not onsite improvements and that serve the needs of more than one development. “Onsite improvements,” all improvements constructed on the applicant’s property, or the improvements constructed on the property abutting the applicant’s property necessary for the ingress or egress to the applicant’s property, and required to be constructed by the applicant pursuant to any municipal ordinance, including, but not limited to, the municipal building code, subdivision and land development ordinance, PRD regulations and zoning ordinance. “Pass-through trip,” a trip which has both an origin and a destination outside the service area.

45. 35 P.S. § 1680.101 et seq.

564

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GOVERNMENT REGULATION

Ch. 41

Part VII Ch. 57–63 Litigation Part VIII Ch. 64–67 L/T Part IX Ch. 68–72 Condos, etc. Index

gtb-parealestate22-all.indb 565

Part VI Ch. 49–56 Taxation

565

Part V Ch. 41–48A Zoning, etc.

§ 503-A.  Grant of power (a)  The governing body of each municipality other than a county, in accordance with the conditions and procedures set forth in this act, may enact, amend and repeal impact fee ordinances and, thereafter, may establish, at the time of municipal approval of any new development or subdivision, the amount of an impact fee for any of the offsite public transportation capital improvements authorized by this act as a condition precedent to final plat approval under the municipality’s subdivision and land development ordinance. Every ordinance adopted pursuant to this act shall include, but not be limited to, provisions for the following: (1)   The conditions and standards for the determination and imposition of impact fees consistent with the provisions of this act. (2)   The agency, body or office within the municipality which shall administer the collection, disbursement and accounting of impact fees. (3)   The time, method and procedure for the payment of impact fees. (4)   The procedure for issuance of any credit against or reimbursement of impact fees which an applicant may be entitled to receive consistent with the provisions of this act. (5)   Exemptions or credits which the municipality may choose to adopt. In this regard the municipality shall have the power to: (i)   Provide a credit of up to 100% of the applicable impact fees for all new development and growth which constitutes affordable housing to low- and moderate-income persons. (ii)   Provide a credit of up to 100% of the applicable impact fees for growth which are determined by the municipality to serve an overriding public interest. (iii)  Exempt de minimus applications from impact fee requirements. If such a policy is adopted, the definition of de minimus shall be contained in the ordinance. (b)   No municipality shall have the power to require as a condition for approval of a land development or subdivision application the construction, dedication or payment of any offsite improvements or capital expenditures of any nature what-

Part IV Ch. 36–40 Insurance

“Transportation service area,” a geographically defined portion of the municipality not to exceed seven square miles of area which, pursuant to the comprehensive plan and applicable district zoning regulations, has an aggregation of sites with development potential creating the need for transportation improvements within such area to be funded by impact fees. No area may be included in more than one transportation service area.

Part III Ch. 23–35 Mortgages

“Transportation capital improvements,” those offsite road improvements that have a life expectancy of three or more years, not including costs for maintenance, operation or repair.

Part II Ch. 15–22 Deeds

“Traffic or transportation engineer or planner,” any person who is a registered professional engineer in this Commonwealth or is otherwise qualified by education and experience to perform traffic or transportation planning analyses of the type required in this act and who deals with the planning, geometric design and traffic operations of highways, roads and streets, their networks, terminals and abutting lands and relationships with other modes of transportation for the achievement of convenient, efficient and safe movement of goods and persons.

Part I Ch. 1–14 Brokers

“Road improvement,” the construction, enlargement, expansion or improvement of public highways, roads or streets. It shall not include bicycle lanes, bus lanes, busways, pedestrian ways, rail lines or tollways.

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soever or impose any contribution in lieu thereof, exaction fee, or any connection, tapping or similar fee except as may be specifically authorized under this act. (c)   No municipality may levy an impact fee prior to the enactment of a municipal impact fee ordinance adopted in accordance with the procedures set forth in this act, except as may be specifically authorized by the provisions of this act. A transportation impact fee shall be imposed by a municipality within a service area or areas only where such fees have been determined and imposed pursuant to the standards, provisions and procedures set forth herein. (d)   Impact fees may be used for those costs incurred for improvements designated in the transportation capital improvement program which are attributable to new development, including the acquisition of land and rights-of-way; engineering, legal and planning costs; and all other costs which are directly related to road improvements within the service area or areas, including debt service. Impact fees shall not be imposed or used for costs associated with any of the following: (1)   Construction, acquisition or expansion of municipal facilities other than capital improvements identified in the transportation capital improvements plan required by this act. (2)  Repair, operation or maintenance of existing or new capital improvements. (3)   Upgrading, updating, expanding or replacing existing capital improvements to serve existing developments in order to meet stricter safety, efficiency, environmental or regulatory standards not attributable to new development. (4)   Upgrading, updating, expanding or replacing existing capital improvements to remedy deficiencies in service to existing development or fund deficiencies in existing municipal capital improvements resulting from a lack of adequate municipal funding over the years for maintenance or capital construction costs. (5)  Preparing and developing the land use assumptions, roadway sufficiency analysis and transportation capital improvement plan, except that impact fees may be used for no more than a proportionate amount of the cost of professional consultants incurred in preparing a roadway sufficiency analysis of infrastructure within a specified transportation service area, such allowable proportion to be calculated by dividing the total costs of all road improvements in the adopted transportation capital improvement program within the transportation service area attributable to projected future development within the service area, as defined in section 504-A(e)(1)(iii), by the total costs of all road improvements in the adopted transportation capital improvement program within the specific transportation service area, as defined in section 504-A. (e)  Nothing in this act shall be deemed to alter or affect a municipality’s existing power to require an applicant for municipal approval of any new development or subdivision from paying for the installation of onsite improvements as provided for in a municipality’s subdivision and land development ordinance as authorized by this act. (f)  No municipality may delay or deny any application for building permit, certificate-of-occupancy, development or any other approval or permit required for construction, land development, subdivision or occupancy for the reason that any project of an approved capital improvement program has not been completed. (g)  A municipality which has enacted an impact fee ordinance on or before June 1, 1990, may for a period not to exceed one year from the effective date of this article, adopt an impact fee ordinance to conform with the standards and procedures set forth in this article. Where a fee previously imposed pursuant to an ordinance in effect on June 1, 1990, for transportation improvements authorized by this article is greater than the recalculated fee due under the newly

566

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GOVERNMENT REGULATION

Ch. 41

Part IV Ch. 36–40 Insurance Part V Ch. 41–48A Zoning, etc. Part VI Ch. 49–56 Taxation Part VII Ch. 57–63 Litigation Part VIII Ch. 64–67 L/T Part IX Ch. 68–72 Condos, etc. Index

gtb-parealestate22-all.indb 567

Part III Ch. 23–35 Mortgages

567

Part II Ch. 15–22 Deeds

46. 53 P.S. § 11101 et seq. 47. 53 P.S. § 10201 et seq.

Part I Ch. 1–14 Brokers

adopted ordinance, the individual who paid the fee is entitled to a refund of the difference. If the recalculated fee is greater than the previously paid fee, there shall be no additional charge. (h)  The powers provided by this section may be exercised by two or more municipalities, other than counties, which have adopted a joint municipal comprehensive plan pursuant to Article XI46 through a joint municipal authority, subject to the conditions and procedures set forth in this Article. § 504-A.  Transportation capital improvements plan (a)   A transportation capital improvements plan shall be prepared and adopted by the governing body of the municipality prior to the enactment of any impact fee ordinance. The municipality shall provide qualified professionals to assist the transportation impact fee advisory committee or the planning commission in the preparation of the transportation capital improvements plan and calculation of the impact fees to be imposed to implement the plan in accordance with the procedures, provisions and standards set forth in this act. (b)(1)  An impact fee advisory committee shall be created by resolution of a municipality intending to adopt a transportation impact fee ordinance. The resolution shall describe the geographical area or areas of the municipality for which the advisory committee shall develop the land use assumptions and conduct the roadway sufficiency analysis studies. (2)   The advisory committee shall consist of no fewer than 7 nor more than 15 members, all of whom shall serve without compensation. The governing body of the municipality shall appoint as members of the advisory committee persons who are either residents of the municipality or conduct business within the municipality and are not employees or officials of the municipality. Not less than 40% of the members of the advisory committee shall be representatives of the real estate, commercial and residential development, and building industries. The municipality may also appoint traffic or transportation engineers or planners to serve on the advisory committee provided the appointment is made after consultation with the advisory committee members. The traffic or transportation engineers or planners appointed to the advisory committee may not be employed by the municipality for the development of or consultation on the roadways sufficiency analysis which may lead to the adoption of the transportation capital improvements plan. (3)   The governing body of the municipality may elect to designate the municipal planning commission appointed pursuant to Article II47 as the impact fee advisory committee. If the existing planning commission does not include members representative of the real estate, commercial and residential development, and building industries at no less than 40% of the membership, the governing body of the municipality shall appoint the sufficient number of representatives of the aforementioned industries who reside in the municipality or conduct business within the municipality to serve as ad hoc voting members of the planning commission whenever such commission functions as the impact fee advisory committee. (4)   No impact fee ordinance may be invalidated as a result of any legal action challenging the composition of the advisory committee which is not brought within 90 days following the first public meeting of said advisory committee. (5)  The advisory committee shall serve in an advisory capacity and shall have the following duties:

Table of Contents

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§ 504-A

MUNICIPALITIES PLANNING CODE

(i)   To make recommendations with respect to land use assumptions, the development of comprehensive road improvements and impact fees. (ii)   To make recommendations to approve, disapprove or modify a capital improvement program by preparing a written report containing these recommendations to the municipality. (iii)  To monitor and evaluate the implementation of a capital improvement program and the assessment of impact fees, and report annually to the municipality with respect to the same. (iv)   To advise the municipality of the need to revise or update the land use assumptions, capital improvement program or impact fees. (c)(1)   As a prerequisite to the development of the transportation capital improvements plan, the advisory committee shall develop land use assumptions for the determination of future growth and development within the designated area or areas as described by the municipal resolution and recommend its findings to the governing body. Prior to the issuance and presentation of a written report to the municipality on the recommendations for proposed land use assumptions upon which to base the development of the transportation capital improvements plan, the advisory committee shall conduct a public hearing, following the providing of proper notice in accordance with section 107,48 for the consideration of the land use assumption proposals. Following receipt of the advisory committee report, which shall include the findings of the public hearing, the governing body of the municipality shall by resolution approve, disapprove or modify the land use assumptions recommended by the advisory committee. (2)   The land use assumptions report shall: (i)  Describe the existing land uses within the designated area or areas and the highways, roads or streets incorporated therein. (ii)   To the extent possible, reflect projected changes in land uses, densities of residential development, intensities of nonresidential development and population growth rates which may affect the level of traffic within the designated area or areas over a period of at least the next five years. These projections shall be based on an analysis of population growth rates during the prior five-year period, current zoning regulations, approved subdivision and land developments, and the future land use plan contained in the adopted municipal comprehensive plan. It may also refer to all professionally produced studies and reports pertaining to the municipality regarding such items as demographics, parks and recreation, economic development and any other study deemed appropriate by the municipality. (3)  If the municipality is located in a county which has created a county planning agency, the advisory committee shall forward a copy of their proposed land use assumptions to the county planning agency for its comments at least 30 days prior to the public hearing. At the same time, the advisory committee shall also forward copies of the proposed assumptions to all contiguous municipalities and to the local school district for their review and comments. (d)(1)  Upon adoption of the land use assumptions by the municipality, the advisory committee shall prepare, or cause to be prepared, a roadway sufficiency analysis which shall establish the existing level of infrastructure sufficiency and preferred levels of service within any designated area or areas of the municipality as described by the resolution adopted pursuant to the creation of the advisory committee. The roadway sufficiency analysis shall be prepared for any highway, road or street within the designated area or areas on which the need for road improvements attributable to projected future new development is anticipated. 48. 53 P.S. § 10107.

568

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Ch. 41

(iv)   The specification of the required road improvements needed to bring the existing level of service to the preferred level of service.

(vi)   The identification of forecasted deficiencies which will be created by “pass-through” trips.

gtb-parealestate22-all.indb 569

Index

569

Part IX Ch. 68–72 Condos, etc.

(e)(1)  Utilizing the information provided by the land use assumption and the roadway sufficiency analysis as the basis for determination of the need for road improvements to remedy existing deficiencies and accommodate future projected traffic volumes, the advisory committee shall identify those capital projects which the municipality should consider for adoption in its transportation capital improvements plan and shall recommend the delineation of the transportation service area or areas. The capital improvement plan shall be developed in accordance with generally accepted engineering and planning practices. The capital improve-

Part VIII Ch. 64–67 L/T

(2)   The advisory committee shall provide the governing body with the findings of the roadway sufficiency analysis. Following receipt of the advisory committee report, the governing body shall by resolution approve, disapprove or modify the roadway sufficiency analysis recommended by the advisory committee.

Part VII Ch. 57–63 Litigation

(v)   A projection of anticipated traffic volumes, with a separate determination of pass-through trips, for a period of not less than five years from the date of the preparation of the roadway sufficiency analysis based upon the land use assumptions adopted under this section.

Part VI Ch. 49–56 Taxation

(iii)   The identification of existing deficiencies which need to be remedied to accommodate existing traffic at the preferred level of service.

Part V Ch. 41–48A Zoning, etc.

(B)  Following adoption of the preferred level of service, such level of service may be waived for a particular road segment or intersection if the municipality finds that one or more of the following effectively precludes provision of road improvements necessary to meet the level of service: geometric design limitations, topographic limitations or the unavailability of necessary right-of-way.

Part IV Ch. 36–40 Insurance

(A)   The level of service shall be one of the categories of road service as defined by the Transportation Research Board of the National Academy of Sciences or the Institute of Transportation Engineers. The municipality may choose to select a level of service on a transportation service area basis as the preferred level of service. The preferred levels of service shall be designated by the governing body of the municipality following determination of the existing level of service as established by the roadway sufficiency analysis. If the preferred level of service is designated as greater than the existing level of service, the municipality shall be required to identify road improvements needed to correct the existing deficiencies.

Part III Ch. 23–35 Mortgages

(ii)   The identification of a preferred level of service established pursuant to the following:

Part II Ch. 15–22 Deeds

(i)  The establishment of existing volumes of traffic and existing levels of service.

Part I Ch. 1–14 Brokers

The municipality shall commission a traffic or transportation engineer or planner to assist the advisory committee in the preparation of the roadway sufficiency analysis. Municipalities may jointly commission such engineer or planner to assist in the preparation of multiple municipality roadway sufficiency analyses. In preparing the roadway sufficiency analysis report, the engineer may consider and refer to previously produced professional studies and reports relevant to the production of the roadway sufficiency analysis as required by this section. It shall be deemed that the roads, streets and highways not on the roadway sufficiency analysis report are not impacted by future development. The roadway sufficiency analysis shall include the following components:

Table of Contents

PART V

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§ 504-A

MUNICIPALITIES PLANNING CODE

ment program shall include projections of all designated road improvements in the capital improvement program. The total cost of the road improvements shall be based upon estimated costs, using standard traffic engineering standards, with a 10% maximum contingency which may be added to said estimate. These costs shall include improvements to correct existing deficiencies with identified anticipated sources of funding and timetables for implementation. The transportation capital improvements plan shall include the following components: (i)   A description of the existing highways, roads and streets within the transportation service area and the road improvements required to update, improve, expand or replace such highways, roads and streets in order to meet the preferred level of service and usage and stricter safety, efficiency, environmental or regulatory standards not attributable to new development. (ii)   A plan specifying the road improvements within the transportation service area attributable to forecasted pass-through traffic so as to maintain the preferred level of service after existing deficiencies identified by the roadway sufficiency analysis have been remedied. (iii)   A plan specifying the road improvements or portions thereof within the transportation service area attributable to the projected future development, consistent with the adopted land use assumptions, in order to maintain the preferred level of service after accommodation for pass-through traffic and after existing deficiencies identified in the roadway sufficiency analysis have been remedied. (iv)   The projected costs of the road improvements to be included in the transportation capital improvements plan, calculating separately for each project by the following categories: (A)   The costs or portion thereof associated with correcting existing deficiencies as specified in subparagraph (i). (B)  The costs or portions thereof attributable to providing road improvements to accommodate forecasted pass-through trips as specified in subparagraph (ii). (C)  The costs of providing necessary road improvements or portions thereof attributable to projected future development as specified in subparagraph (iii), provided that no more than 50% of the cost of the improvements to any highway, road or street which qualifies as a State highway or portion of the rural State highway system as provided in section 102 of the act of June 1, 1945 (P.L. 1242, No. 428), known as the “State Highway Law,”49 may be included. (v)   A projected timetable and proposed budget for constructing each road improvement contained in the plan. (vi)   The proposed source of funding for each capital improvement included in the road plan. This shall include anticipated revenue from the Federal Government, State government, municipality, impact fees and any other source. The estimated revenue for each capital improvement in the plan which is to be provided by impact fees shall be identified separately for each project. (2)   The source of funding required for projects to remedy existing deficiencies as set forth in paragraph (1)(i) and the road improvements attributable to forecasted pass-through traffic as set forth in paragraph (1)(ii) shall be exclusive of funds generated from the assessment of impact fees. (3)   Upon the completion of the transportation capital improvements plan and prior to its adoption by the governing body of the municipality and the enactment of a municipal impact fee ordinance, the advisory committee shall 49. 36 P.S. § 670-102.

570

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GOVERNMENT REGULATION

Ch. 41

Part I Ch. 1–14 Brokers Part II Ch. 15–22 Deeds Part III Ch. 23–35 Mortgages Part IV Ch. 36–40 Insurance Part V Ch. 41–48A Zoning, etc. Part VI Ch. 49–56 Taxation Part VII Ch. 57–63 Litigation Part VIII Ch. 64–67 L/T Part IX Ch. 68–72 Condos, etc.

hold at least one public hearing for consideration of the plan. Notification of the public hearing shall comply with the requirement of section 107. The plan shall be available for public inspection at least ten working days prior to the date of the public hearing. After presentation of the recommendation by the advisory committee or its representatives at a public meeting of the governing body, the governing body may make such changes to the plan prior to its adoption as the governing body deems appropriate following review of the public comments made at the public hearing. (4)   The governing body may periodically, but no more frequently than annually, request the impact fee advisory committee to review the capital improvements plan and impact fee charges and make recommendations for revisions for subsequent consideration and adoption by the governing body based only on the following: (i)   New subsequent development which has occurred in the municipality. (ii)  Capital improvements contained in the capital improvements plan, the construction of which has been completed. (iii)   Unavoidable delays beyond the responsibility or control of the municipality in the construction of capital improvements contained in the plan. (iv)   Significant changes in the land use assumptions. (v)   Changes in the estimated costs of the proposed transportation capital improvements, which may be recalculated by applying the construction cost index as published in the American City/County magazine or the Engineering News Record. (vi)   Significant changes in the projected revenue from all sources listed needed for the construction of the transportation capital improvements. (f)   Any improvements to Federal-aid or State highways to be funded in part by impact fees shall require the approval of the Department of Transportation and, if necessary, the United States Department of Transportation. Nothing in this act shall be deemed to alter or diminish the powers, duties or jurisdiction of the Department of Transportation with respect to State highways or the rural State highway system. (g)   Two or more municipalities may, upon agreement, appoint a joint impact fee advisory committee which may develop roadway sufficiency analyses and transportation capital improvements plans for the participating municipalities. The members of the advisory committee must be either residents of or conduct business within one of the participating municipalities. § 505-A.  Establishment and administration of impact fees (a)(1)   The impact fee for transportation capital improvements shall be based upon the total costs of the road improvements included in the adopted capital improvement plan within a given transportation service area attributable to and necessitated by new development within the service area as calculated pursuant to section 504-A(e)(1)(iv)(C),50 divided by the number of anticipated peak hour trips generated by all new development consistent with the adopted land use assumptions and calculated in accordance with the Trip Generation Manual published by the Institute of Transportation Engineers, fourth or subsequent edition as adopted by the municipality by ordinance or resolution to equal a per trip cost for transportation improvements within the service area. (2)  The specific impact fee for a specific new development or subdivision within the service area for road improvements shall be determined as of the date of preliminary land development or subdivision approval by multiplying

Table of Contents

PART V

50. 53 P.S. § 10504.

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Index

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the per trip cost established for the service area as determined in section 503-A(a)51 by the estimated number of peak hour trips to be generated by the new development or subdivision using generally accepted traffic engineering standards. (3)  A municipality may authorize or require the preparation of a special transportation study in order to determine traffic generation or circulation for a new nonresidential development to assist in the determination of the amount of the transportation fee for such development or subdivision. The municipality shall set forth by ordinance the circumstances in which such a study should be authorized or required, provided however, that no special transportation study shall be required when there is no deviation from the land use assumptions resulting in increased density, intensity or trip generation by a particular development. A developer or municipality may, however, at any time, voluntarily prepare and submit a traffic study for a proposed development or may have such a study prepared at its expense after the development is completed to include actual trips generated by the development for use in any appeal as provided for under this act. The special transportation study shall be prepared by a qualified traffic or transportation engineer using procedures and methods established by the municipality based on generally accepted transportation planning and engineering standards. The study, where required by the municipality, shall be submitted prior to the imposition of an impact fee and shall be taken into consideration by the municipality in increasing or reducing the amount of the impact fee for the new development for the amount shown on the impact fee schedule adopted by the municipality. (b)  The governing body shall enact an impact ordinance setting forth a description of the boundaries and a fee schedule for each transportation service area. At least ten working days prior to the adoption of the ordinance at a public meeting, the ordinance shall be available for public inspection. The impact fee ordinance shall include, but not be limited to, those provisions set forth in section 503-A(a) and conform with the standards, provisions and procedures set forth in this act. (c)(1)   A municipality may give notice of its intention to adopt an impact fee ordinance by publishing a statement of such intention twice in one newspaper of general circulation in the municipality. The first publication shall not occur before the adoption of the resolution by which the municipality establishes its impact fee advisory committee. The second publication shall occur not less than one nor more than three weeks thereafter. (2)   A municipal impact fee ordinance adopted under and pursuant to this act may provide that the provisions of the ordinance may have retroactive application, for a period not to exceed 18 months after the adoption of the resolution creating an impact fee advisory committee pursuant to section 504-A(b)(1), to preliminary or tentative applications for land development, subdivision or PRD with the municipality on or after the first publication of the municipality’s intention to adopt an impact fee ordinance; provided, however, that the impact fee imposed on building permits for construction of new development approved pursuant to such applications filed during the period of pendancy shall not exceed $1,000 per anticipated peak hour trip as calculated in accordance with the generally accepted traffic engineering standards as set forth under the provisions of subsection (a)(1) or the subsequently adopted fee established by the ordinance, whichever is less. (3)   No action upon an application for land development, subdivision or PRD shall be postponed, delayed or extended by the municipality because adoption

51. 53 P.S. § 10503-A.

572

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GOVERNMENT REGULATION

Ch. 41

Part V Ch. 41–48A Zoning, etc. Part VI Ch. 49–56 Taxation Part VII Ch. 57–63 Litigation Part VIII Ch. 64–67 L/T Part IX Ch. 68–72 Condos, etc. Index

gtb-parealestate22-all.indb 573

Part IV Ch. 36–40 Insurance

573

Part III Ch. 23–35 Mortgages

(e)   All transportation impact fees imposed under the terms of this act shall be payable at the time of the issuance of building permits for the applicable new development or subdivision. The municipality may not require the applicant to provide a guarantee of financial security for the payment of any transportation impact fees, except the municipality may provide for the deposit with the municipality of financial security in an amount sufficient to cover the cost of the construction of any road improvement contained in the transportation capital improvement plan which is performed by the applicant. (f)  An applicant shall be entitled to a credit against the impact fee in the amount of the fair market value of any land dedicated by the applicant to the municipality for future right-of-way, realignment or widening of any existing roadways or for the value of any construction of road improvements contained

Part II Ch. 15–22 Deeds

(d)   Any impact fees collected by a municipality pursuant to a municipal ordinance shall be deposited by the municipality into an interest-bearing fund account designated solely for impact fees, clearly identifying the transportation service area from which the fee was received. Funds collected in one transportation service area must be accounted for and expended within that transportation service area, and such funds shall only be expended for that portion of the transportation capital improvements identified as being funded by impact fees under the transportation capital improvements plan. Notwithstanding any other provisions of this act, municipalities may expend impact fees paid by an applicant on projects not contained in the adopted transportation capital improvement plan or may provide credit against impact fees for the value of any construction projects not contained in the transportation capital improvement plan which are performed at the applicant’s expense if all of the following criteria are met: (1)  The applicant has provided written consent to use of its collected impact fees or the provision of such credit against the applicant’s impact fees for specific transportation projects which are not included in the transportation capital improvement plan. (2)  The alternative transportation projects, whether highway or multimodal, have as their purpose the reduction of traffic congestion or the removal of vehicle trips from the roadway network. (3)   The municipality amends its transportation capital improvement plan components required by section 504-A(e)(1)(vi) to provide replacement of the collected impact fees transferred to transportation projects outside the approved transportation capital improvement plan from sources other than impact fees or developer contributions within three years of completion of the alternative projects to which the transferred fees were applied or for which credit was provided. All interest earned on such funds shall become funds of that account. The municipality shall provide that an accounting be made annually for any fund account containing impact fee proceeds and earned interest. Such accounting shall include, but not be limited to, the total funds collected, the source of the funds collected, the total amount of interest accruing on such funds and the amount of funds expended on specific transportation improvements. Notice of the availability of the results of the accounting shall be included and published as part of the annual audit required of municipalities. A copy of the report shall also be provided to the advisory committee.

Part I Ch. 1–14 Brokers

of a municipal impact fee ordinance is being considered. Furthermore, the adoption of an impact fee ordinance more than 18 months after adoption of a resolution creating the impact fee advisory committee shall not be retroactive or applicable to plats submitted for preliminary or tentative approval prior to the legal publication of the proposed impact fee ordinance and any fees collected pursuant to this subsection shall be refunded to the payor of such fees; provided the adoption of the impact fee ordinance was not delayed due to the initiation of any litigation challenging the adoption of such ordinance.

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in the transportation capital improvement program which is performed at the applicant’s expense. The amount of such credit for any capital improvement constructed shall be the amount allocated in the capital improvement program, including contingency factors, for such work. The fair market value of any land dedicated by the applicant shall be determined as of the date of the submission of the land development or subdivision application to the municipality. (g)   Impact fees previously collected by a municipality shall be refunded, together with earned accrued interest thereon, to the payor of such fees from the date of payment under any of the following circumstances: (1)  In the event that a municipality terminates or completes an adopted capital improvements plan for a transportation service area and there remains at the time of termination or completion undispersed funds in the accounts established for that purpose, the municipality shall provide written notice by certified mail to those persons who previously paid the fees which remain undispersed of the availability of said funds for refund of the person’s proportionate share of the fund balance. The allocation of the refund shall be determined by generally accepted accounting practices. In the event that any of the funds remain unclaimed following one year after the notice, which notice shall be provided to the last known address provided by the payor of the fees to the municipality, the municipality shall be authorized to transfer any funds so remaining to any other fund in the municipality without any further obligation to refund said funds. (2)   If the municipality fails to commence construction of any transportation service area road improvements within three years of the scheduled construction date set forth in the transportation capital improvements plan, any person who paid any impact fees pursuant to that transportation capital improvements plan shall, upon written request to the municipality, receive a refund of that portion of the fee attributable to the contribution for the uncommenced road improvement, plus the interest accumulated thereon from the date of payment. (3)   If, upon completion of any road improvements project, the actual expenditures of the capital project are less than 95% of the costs properly allocable to the fee paid within the transportation service area in which the completed road improvement was adopted, the municipality shall refund the pro rata difference between the budgeted costs and the actual expenditures, including interest accumulated thereon from the date of payment, to the person or persons who paid the impact fees for such improvements. (4)   If the new development for which transportation impact fees were paid is not commenced prior to the expiration of building permits issued for the new development within the time limits established by applicable building codes within the municipality or if the building permit as issued for the new development is altered and the alteration results in a decrease in the amount of the impact fee due in accordance with the calculations set forth in subsection (a)(1). (h)   Where an impact fee ordinance has been adopted pursuant to the other provisions of this act, the ordinance may impose an additional impact fee upon new developments which generate 1,000 or more new peak hour trips, net of pass-by trips as defined by the current edition of the Institute of Transportation Engineers Trip Generation Manual, during the peak hour period designated in the ordinance. In such case, the impact fee ordinance adopted under this act may require the applicant for such a development to perform a traffic analysis of development traffic impact on highways, roads or streets outside the transportation service area in which the development site is located but within the boundaries of the municipality or municipalities adopting a joint municipal impact fee ordinance or municipalities which are participating in a joint municipal authority authorized to impose impact fees by this article. Any such highways, roads or streets or parts thereof outside the transportation service area which

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§ 506-A.  Appeals

§ 507-A.  Prerequisites for assessing sewer and water tap-in fees

§ 508-A.  Joint Municipal Impact Fee Ordinance

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Index

575

Part IX Ch. 68–72 Condos, etc.

52. 53 P.S. § 301 et seq. 53. 53 P.S. § 10901 et seq.

Part VIII Ch. 64–67 L/T

(a)   or the purpose of permitting municipalities which cooperatively plan for their future to also provide for transportation capital improvements in a cooperative manner, the governing bodies of each municipality which has adopted a joint municipal comprehensive plan pursuant to Article XI53 in accordance with the conditions and procedures set forth in this article may cooperate with one or more municipalities to enact, amend and repeal joint transportation impact fee ordinances to accomplish the purposes of this act in accordance with this article. (b)   The procedures set forth in this article shall be applicable to the enactment of a joint municipal impact fee ordinance.

Part VII Ch. 57–63 Litigation

(c)   Where a property owner or owners construct or cause to be constructed any addition, expansion or extension to or of a sewer or water system of a municipality whereby such addition, expansion or extension provides future excess capacity to accommodate future development upon the lands of others, the municipality shall provide for the reimbursement to the property owner or owners in accordance with the provisions of the “Municipality Authorities Act of 1945.”

Part VI Ch. 49–56 Taxation

(b)   Where a municipally owned water or sewer system is to be extended at the expense of the owner or owners of properties or where the municipality otherwise would construct the connection end or customer facilities services (other than water meter installation), the property owner or owners shall have the right to construct such extension or make such connection and install such customer facilities himself or themselves or through a subcontractor in accordance with the “Municipality Authorities Act of 1945.”

Part V Ch. 41–48A Zoning, etc.

(a)   No municipality may charge any tap-in connection or other similar fee as a condition of connection to a municipally owned sewer or water system unless such fee is calculated as provided in the applicable provisions of the act of May 2, 1945, (P.L. 382, No. 164),52 known as the “Municipality Authorities Act of 1945.”

Part IV Ch. 36–40 Insurance

(c)   Any cost incurred by parties in such an appeal shall be the separate responsibility of the parties.

Part III Ch. 23–35 Mortgages

(b)   A master may be appointed by the court to hear testimony on the issues and return the record and a transcript of the testimony, together with a report and recommendations, or the court may appoint a master to hold a nonrecord hearing and to make recommendations and return the same to the court, in which case either party may demand a hearing de novo before the court.

Part II Ch. 15–22 Deeds

(a)   Any person required to pay an impact fee shall have the right to contest the land use assumptions, the development and implementation of the transportation capital improvement program, the imposition of impact fees, the periodic updating of the transportation capital improvement program, the refund of impact fees and all other matters relating to impact fees, including the constitutionality or validity of the impact fee ordinance by filing an appeal with the court of common pleas.

Part I Ch. 1–14 Brokers

will accommodate 10% or more of development traffic and 100 or more new peak hour trips may be required to be studied, and the ordinance may require the applicant to mitigate the traffic impacts of the development on such highways, roads and streets to maintain the predevelopment conditions after completion of the development.

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§ 601

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(c)   Each municipality party to a joint municipal impact fee ordinance shall approve the advisory committee and shall adopt the land use assumptions, roadway sufficiency analysis, capital improvement plan and ordinances and amendments thereto in accordance with the procedures in this article, and no such ordinance shall become effective until it has been properly adopted by all the participating municipalities.

ARTICLE VI Zoning § 601.  General powers The governing body of each municipality, in accordance with the conditions and procedures set forth in this act, may enact, amend and repeal zoning ordinances to implement comprehensive plans and to accomplish any of the purposes of this act. § 602.  County powers The powers of the governing bodies of counties to enact, amend and repeal zoning ordinances shall be limited to land in those municipalities, wholly or partly within the county, which have no zoning ordinance in effect at the time a zoning ordinance is introduced before the governing body of the county and until the municipality’s zoning ordinance is in effect. The enactment of a zoning ordinance by any municipality, other than the county, whose land is subject to county zoning shall act as a repeal pro tanto of the county zoning ordinance within the municipality adopting such ordinance. § 602.1.  County review; dispute resolution The county planning commission shall offer a mediation option to any municipality which believes that its citizens will experience harm as the result of the adoption of a zoning ordinance or an amendment to an existing zoning ordinance in a contiguous municipality if the contiguous municipalities agree. In exercising such an option, the municipalities shall comply with the procedures set forth in Article IX.54 The cost of the mediation shall be shared equally by the parties unless otherwise agreed. § 603.  Ordinance provisions (a)   Zoning ordinances should reflect the policy goals of the statement of community development objectives required in section 606,55 and give consideration to the character of the municipality, the needs of the citizens and the suitabilities and special nature of particular parts of the municipality. (b)   Zoning ordinances, except to the extent that those regulations of mineral extraction by local ordinances and enactments have heretofore been superseded and preempted by the act of May 31, 1945 (P.L. 1198, No. 418), known as the “Surface Mining Conservation and Reclamation Act,”56 the act of December 19, 1984 (P.L. 1093, No. 219), known as the “Noncoal Surface Mining Conservation and Reclamation Act,”57 and the act of December 19, 1984 (P.L. 1140, No. 223), known as the “Oil and Gas Act,”58 and to the extent that the subsidence impacts of coal extraction are regulated by the act of April 27, 1966 (1st Sp.Sess., P.L. 31, No. 1), known as “The Bituminous Mine Subsidence and Land Conservation Act,”59 and that regulation of activities related to commercial agricultural produc54. 55. 56. 57. 58. 59.

53 53 52 52 58 52

P.S. P.S. P.S. P.S. P.S. P.S.

§ § § § § §

10901 et seq. 10606. 1396.2 et seq. 3301 et seq. 601.101 et seq. 1406.1 et seq.

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(2)   Size, height, bulk, location, erection, construction, repair, maintenance, alteration, razing, removal and use of structures.

(4)   Density of population and intensity of use.

(c)   Zoning ordinances may contain: (1)   provisions for special exceptions and variances administered by the zoning hearing board, which provisions shall be in accordance with this act;

Part IX Ch. 68–72 Condos, etc.

60. 61. 62. 63. 64.

3 P.S. § 1701 et seq. 3 P.S. § 901 et seq. 3 P.S. § 951 et seq. 53 P.S. § 10908. 53 P.S. § 10619.1.

Index

577

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Part VIII Ch. 64–67 L/T

(4)   such other provisions as may be necessary to implement the purposes of this act; (5)   provisions to encourage innovation and to promote flexibility, economy and ingenuity in development, including subdivisions and land developments as defined in this act; (6)   provisions authorizing increases in the permissible density of population or intensity of a particular use based upon expressed standards and criteria set forth in the zoning ordinance; and

Part VII Ch. 57–63 Litigation

(3)   provisions for the administration and enforcement of such ordinances;

Part VI Ch. 49–56 Taxation

(2.2)   provisions for regulating transferable development rights, on a voluntary basis, including provisions for the protection of persons acquiring the same, in accordance with express standards and criteria set forth in the ordinance and section 619.1;64

Part V Ch. 41–48A Zoning, etc.

(2)   provisions for conditional uses to be allowed or denied by the governing body after recommendations by the planning agency and hearing, pursuant to express standards and criteria set forth in the zoning ordinance. Notice of hearings on conditional uses shall be provided in accordance with section 908(1),63 and notice of the decision shall be provided in accordance with section 908(10). In allowing a conditional use, the governing body may attach such reasonable conditions and safeguards, other than those related to off-site transportation or road improvements, in addition to those expressed in the ordinance, as it may deem necessary to implement the purposes of this act and the zoning ordinance;

Part IV Ch. 36–40 Insurance

(5)   Protection and preservation of natural and historic resources and prime agricultural land and activities.

Part III Ch. 23–35 Mortgages

(3)  Areas and dimensions of land and bodies of water to be occupied by uses and structures, as well as areas, courts, yards, and other open spaces and distances to be left unoccupied by uses and structures.

Part II Ch. 15–22 Deeds

(1)   Uses of land, watercourses and other bodies of water.

Part I Ch. 1–14 Brokers

tion would exceed the requirements imposed under the act of May 20, 1993 (P.L. 12, No. 6), known as the “Nutrient Management Act,”60 regardless of whether any agricultural operation within the area to be affected by the ordinance would be a concentrated animal operation as defined by the “Nutrient Management Act,” the act of June 30, 1981 (P.L. 128, No. 43), known as the “ Agricultural Area Security Law,”61 or the act of June 10, 1982 (P.L. 454, No. 133), entitled “An act protecting agricultural operations from nuisance suits and ordinances under certain circumstances,”62 or that regulation of other activities are preempted by other Federal or State laws may permit, prohibit, regulate, restrict and determine:

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§ 603.1

MUNICIPALITIES PLANNING CODE

(7)  provisions to promote and preserve prime agricultural land, environmentally sensitive areas and areas of historic significance. (d)  Zoning ordinances may include provisions regulating the siting, density and design of residential, commercial, industrial and other developments in order to assure the availability of reliable, safe and adequate water supplies to support the intended land uses within the capacity of available water resources. (e)   Zoning ordinances may not unduly restrict the display of religious symbols on property being used for religious purposes. (f)  Zoning ordinances may not unreasonably restrict forestry activities. To encourage maintenance and management of forested or wooded open space and promote the conduct of forestry as a sound and economically viable use of forested land throughout this Commonwealth, forestry activities, including, but not limited to, timber harvesting, shall be a permitted use by right in all zoning districts in every municipality. (g)(1)   Zoning ordinances shall protect prime agricultural land and may promote the establishment of agricultural security areas. (2)  Zoning ordinances shall provide for protection of natural and historic features and resources. (h)  Zoning ordinances shall encourage the continuity, development and viability of agricultural operations. Zoning ordinances may not restrict agricultural operations or changes to or expansions of agricultural operations in geographic areas where agriculture has traditionally been present unless the agricultural operation will have a direct adverse effect on the public health and safety. Nothing in this subsection shall require a municipality to adopt a zoning ordinance that violates or exceeds the provisions of the act of May 20, 1993 (P.L. 12, No. 6), known as the “Nutrient Management Act,” the act of June 30, 1981 (P.L. 128, No. 43), known as the “Agricultural Area Security Law,” or the act of June 10, 1982 (P.L. 454, No. 133), entitled “An act protecting agricultural operations from nuisance suits and ordinances under certain circumstances.” (i)   Zoning ordinances shall provide for the reasonable development of minerals in each municipality. (j)   Zoning ordinances adopted by municipalities shall be generally consistent with the municipal or multimunicipal comprehensive plan or, where none exists, with the municipal statement of community development objectives and the county comprehensive plan. If a municipality amends its zoning ordinance in a manner not generally consistent with its comprehensive plan, it shall concurrently amend its comprehensive plan in accordance with Article III. (k)   A municipality may amend its comprehensive plan at any time, provided that the comprehensive plan remains generally consistent with the county comprehensive plan and compatible with the comprehensive plans of abutting municipalities. (l)  Zoning ordinances shall permit no-impact home-based businesses in all residential zones of the municipality as a use permitted by right, except that such permission shall not supersede any deed restriction, covenant or agreement restricting the use of land nor any master deed, bylaw or other document applicable to a common interest ownership community. § 603.1.  Interpretation of ordinance provisions In interpreting the language of zoning ordinances to determine the extent of the restriction upon the use of the property, the language shall be interpreted, where doubt exists as to the intended meaning of the language written and enacted by the governing body, in favor of the property owner and against any implied extension of the restriction.

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Table of Contents

PART V

§ 604.  Zoning purposes

(3)  To preserve prime agriculture and farmland considering topography, soil type and classification, and present use.

§ 605.  Classifications

(1.1)   For the purpose of regulating nonconforming uses and structures.

(ii)   natural or artificial bodies of water, boat docks and related facilities;

(iv)   public buildings and public grounds; (v)   aircraft, helicopter, rocket, and spacecraft facilities; (vi)  places having unique historical, architectural or patriotic interest or value; or

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Index

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Part IX Ch. 68–72 Condos, etc.

(iii)   places of relatively steep slope or grade, or other areas of hazardous geological or topographic features;

Part VIII Ch. 64–67 L/T

(2)   For the regulation, restriction or prohibition of uses and structures at, along or near: (i)   major thoroughfares, their intersections and interchanges, transportation arteries and rail or transit terminals;

Part VII Ch. 57–63 Litigation

(1)  For the purpose of making transitional provisions at and near the boundaries of districts.

Part VI Ch. 49–56 Taxation

In any municipality, other than a county, which enacts a zoning ordinance, no part of such municipality shall be left unzoned. The provisions of all zoning ordinances may be classified so that different provisions may be applied to different classes of situations, uses and structures and to such various districts of the municipality as shall be described by a map made part of the zoning ordinance. Where zoning districts are created, all provisions shall be uniform for each class of uses or structures, within each district, except that additional classifications may be made within any district:

Part V Ch. 41–48A Zoning, etc.

(5)   To accommodate reasonable overall community growth, including population and employment growth, and opportunities for development of a variety of residential dwelling types and nonresidential uses.

Part IV Ch. 36–40 Insurance

(4)  To provide for the use of land within the municipality for residential housing of various dwelling types encompassing all basic forms of housing, including single-family and two-family dwellings, and a reasonable range of multifamily dwellings in various arrangements, mobile homes and mobile home parks, provided, however, that no zoning ordinance shall be deemed invalid for the failure to provide for any other specific dwelling type.

Part III Ch. 23–35 Mortgages

(2)   To prevent one or more of the following: overcrowding of land, blight, danger and congestion in travel and transportation, loss of health, life or property from fire, flood, panic or other dangers.

Part II Ch. 15–22 Deeds

(1)   To promote, protect and facilitate any or all of the following: the public health, safety, morals, and the general welfare; coordinated and practical community development and proper density of population; emergency management preparedness and operations, airports, and national defense facilities, the provisions of adequate light and air, access to incident solar energy, police protection, vehicle parking and loading space, transportation, water, sewerage, schools, recreational facilities, public grounds, the provision of a safe, reliable and adequate water supply for domestic, commercial, agricultural or industrial use, and other public requirements; as well as preservation of the natural, scenic and historic values in the environment and preservation of forests, wetlands, aquifers and floodplains.

Part I Ch. 1–14 Brokers

The provisions of zoning ordinances shall be designed:

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§ 606

MUNICIPALITIES PLANNING CODE

(vii)  flood plain areas, agricultural areas, sanitary landfills, and other places having a special character or use affecting and affected by their surroundings. As among several classes of zoning districts, the provisions for permitted uses may be mutually exclusive, in whole or in part. (3)   For the purpose of encouraging innovation and the promotion of flexibility, economy and ingenuity in development, including subdivisions and land developments as defined in this act, and for the purpose of authorizing increases in the permissible density of population or intensity of a particular use based upon expressed standards and criteria set forth in the zoning ordinance. (4)   For the purpose of regulating transferable development rights on a voluntary basis. § 606.  Statement of community development objectives Zoning ordinances enacted after the effective date of this act should reflect the policy goals of the municipality as listed in a statement of community development objectives, recognizing that circumstances can necessitate the adoption and timely pursuit of new goals and the enactment of new zoning ordinances which may neither require nor allow for the completion of a new comprehensive plan and approval of new community development objectives. This statement may be supplied by reference to the community comprehensive plan or such portions of the community comprehensive plan as may exist and be applicable or may be the statement of community development objectives provided in a statement of legislative findings of the governing body of the municipality with respect to land use; density of population; the need for housing, commerce and industry; the location and function of streets and other community facilities and utilities; the need for preserving agricultural land and protecting natural resources; and any other factors that the municipality believes relevant in describing the purposes and intent of the zoning ordinance. § 607.  Preparation of proposed zoning ordinance (a)   The text and map of the proposed zoning ordinance, as well as all necessary studies and surveys preliminary thereto, shall be prepared by the planning agency of each municipality upon request by the governing body. (b)   In preparing a proposed zoning ordinance, the planning agency shall hold at least one public meeting pursuant to public notice and may hold additional public meetings upon such notice as it shall determine to be advisable. (c)   Upon the completion of its work, the planning agency shall present to the governing body the proposed zoning ordinance, together with recommendations and explanatory materials. (d)   The procedure set forth in this section shall be a condition precedent to the validity of a zoning ordinance adopted pursuant to this act. (e)   If a county planning agency shall have been created for the county in which the municipality adopting the ordinance is located, then at least 45 days prior to the public hearing by the local governing body as provided in section 608,65 the municipality shall submit the proposed ordinance to said county planning agency for recommendations. § 608.  Enactment of zoning ordinance Before voting on the enactment of a zoning ordinance, the governing body shall hold a public hearing thereon, pursuant to public notice, and pursuant to mailed notice and electronic notice to any owner of a tract or parcel of land located

65. 53 P.S. §10608.

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Part IV Ch. 36–40 Insurance Part V Ch. 41–48A Zoning, etc. Part VI Ch. 49–56 Taxation Part VII Ch. 57–63 Litigation Part VIII Ch. 64–67 L/T Part IX Ch. 68–72 Condos, etc. Index

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Part III Ch. 23–35 Mortgages

581

Part II Ch. 15–22 Deeds

66. 53 P.S. § 10109. 67. 53 P.S. § 10619.2. 68. 53 P.S. § 10607.

Part I Ch. 1–14 Brokers

within a municipality or an owner of the mineral rights in a tract or parcel of land within the municipality who has made a timely request in accordance with section 109.66 The vote on the enactment by the governing body shall be within 90 days after the last public hearing. Within 30 days after enactment, a copy of the zoning ordinance shall be forwarded to the county planning agency or, in counties where no planning agency exists, to the governing body of the county in which the municipality is located. § 608.1.  Municipal authorities and water companies (a)  A municipal authority, water company or any other municipality that plans to expand water, sanitary sewer or storm sewer service via a new main extension to a proposed development that has not received any municipal approvals within the municipality shall notify the municipality by certified mail, return receipt requested, of its intention and shall provide the municipality an opportunity to provide written comment on whether the proposed expansion of service within the municipality is generally consistent with the zoning ordinance. (b)   The purpose of the requirement of this section is to provide the municipal authority, water company or any other municipality with information regarding how its decision to expand service may potentially enhance and support or conflict with or negatively impact on the land use planning of municipalities. (c)   Nothing in this section shall be construed as limiting the right of a municipal authority, water company or any other municipality to expand service as otherwise permitted by law. (d)   Except as provided in section 619.2,67 nothing in this act shall be construed as limiting the authority of the Pennsylvania Public Utility Commission over the implementation, location, construction and maintenance of public utility facilities. The requirement of this section shall not apply to an expansion of service by a municipal authority, water company or other municipality which is ordered by a court or a Federal or State agency. (e)   As used in this section: (1)  A “decision to expand service within the municipality” shall mean a decision to expand the number of its individual service connections for distribution or collection within a municipality as a result of a main extension, but if the number of individual service connections are not being increased, locating or acquiring transmission lines or interceptors or wells, reservoirs, aquifers, pump stations, water storage tanks or other facilities by a municipal authority or water company in a new area of a municipality shall not be deemed an expansion of service. (2)   A “water company” shall include any person or corporation, including a municipal corporation operating beyond its corporate limits, which furnishes water to or for the public for compensation. (f)   Nothing in this section shall be construed to authorize a municipality to regulate the allocation or withdrawal of water resources by any person, municipal authority or water company that is otherwise regulated by the Pennsylvania Public Utility Commission or other Federal or State agencies or statutes. § 609.  Enactment of zoning ordinance amendments (a)   For the preparation of amendments to zoning ordinances, the procedure set forth in section 60768 for the preparation of a proposed zoning ordinance shall be optional. (b)(1)   Before voting on the enactment of an amendment, the governing body

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§ 609.1

MUNICIPALITIES PLANNING CODE

shall hold a public hearing thereon, pursuant to public notice, and pursuant to mailed notice and electronic notice to an owner of a tract or parcel of land located within a municipality or an owner of the mineral rights in a tract or parcel of land within the municipality who has made a timely request in accordance with section 109. In addition, if the proposed amendment involves a zoning map change, notice of said public hearing shall be conspicuously posted by the municipality at points deemed sufficient by the municipality along the tract to notify potentially interested citizens. The affected tract or area shall be posted at least one week prior to the date of the hearing. (2)(i)  In addition to the requirement that notice be posted under clause (1), where the proposed amendment involves a zoning map change, notice of the public hearing shall be mailed by the municipality at least 30 days prior to the date of the hearing by first class mail to the addressees to which real estate tax bills are sent for all real property located within the area being rezoned, as evidenced by tax records within the possession of the municipality. The notice shall include the location, date and time of the public hearing. A good faith effort and substantial compliance shall satisfy the requirements of this subsection. (ii)   This clause shall not apply when the rezoning constitutes a comprehensive rezoning. (c)   In the case of an amendment other than that prepared by the planning agency, the governing body shall submit each such amendment to the planning agency at least 30 days prior to the hearing on such proposed amendment to provide the planning agency an opportunity to submit recommendations. (d)   If, after any public hearing held upon an amendment, the proposed amendment is changed substantially, or is revised, to include land previously not affected by it, the governing body shall hold another public hearing, pursuant to public notice, mailed notice and electronic notice, before proceeding to vote on the amendment. (e)  If a county planning agency shall have been created for the county in which the municipality proposing the amendment is located, then at least 30 days prior to the public hearing on the amendment by the local governing body, the municipality shall submit the proposed amendment to the county planning agency for recommendations. (f)   The municipality may offer a mediation option as an aid in completing proceedings authorized by this section. In exercising such an option, the municipality and mediating parties shall meet the stipulations and follow the procedures set forth in Article IX.69 (g)  Within 30 days after enactment, a copy of the amendment to the zoning ordinance shall be forwarded to the county planning agency or, in counties where no planning agency exists, to the governing body of the county in which the municipality is located. § 609.1.  Procedure for landowner curative amendments (a)   A landowner who desires to challenge on substantive grounds the validity of a zoning ordinance or map or any provision thereof, which prohibits or restricts the use or development of land in which he has an interest may submit a curative amendment to the governing body with a written request that his challenge and proposed amendment be heard and decided as provided in section 916.1.70 The governing body shall commence a hearing thereon within 60 days of the request as provided in section 916.1. The curative amendment and challenge shall be referred to the planning agency or agencies as provided in section 60971 69. 53 P.S. § 10901 et seq. 70. 53 P.S. § 10916.1.

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Part IV Ch. 36–40 Insurance Part V Ch. 41–48A Zoning, etc. Part VI Ch. 49–56 Taxation Part VII Ch. 57–63 Litigation Part VIII Ch. 64–67 L/T Part IX Ch. 68–72 Condos, etc. Index

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Part III Ch. 23–35 Mortgages

583

Part II Ch. 15–22 Deeds

71. 53 P.S. § 10609. 72. 53 P.S. § 10610. 73. 53 P.S. § 10908.

Part I Ch. 1–14 Brokers

and notice of the hearing thereon shall be given as provided in section 61072 and in section 916.1. (b)   The hearing shall be conducted in accordance with section 90873 and all references therein to the zoning hearing board shall, for purposes of this section be references to the governing body: provided, however, That the provisions of section 908(1.2) and (9) shall not apply and the provisions of section 916.1 shall control. If a municipality does not accept a landowner’s curative amendment brought in accordance with this subsection and a court subsequently rules that the challenge has merit, the court’s decision shall not result in a declaration of invalidity for the entire zoning ordinance and map, but only for those provisions which specifically relate to the landowner’s curative amendment and challenge. (c)   The governing body of a municipality which has determined that a validity challenge has merit may accept a landowner’s curative amendment, with or without revision, or may adopt an alternative amendment which will cure the challenged defects. The governing body shall consider the curative amendments, plans and explanatory material submitted by the landowner and shall also consider: (1)   the impact of the proposal upon roads, sewer facilities, water supplies, schools and other public service facilities; (2)   if the proposal is for a residential use, the impact of the proposal upon regional housing needs and the effectiveness of the proposal in providing housing units of a type actually available to and affordable by classes of persons otherwise unlawfully excluded by the challenged provisions of the ordinance or map; (3)   the suitability of the site for the intensity of use proposed by the site’s soils, slopes, woodland, wetlands, flood plains, aquifers, natural resources and other natural features; (4)  the impact of the proposed use on the site’s soils, slopes, woodlands, wetlands, flood plains, natural resources and natural features, the degree to which these are protected or destroyed, the tolerance of the resources to development and any adverse environmental impacts; and (5)   the impact of the proposal on the preservation of agriculture and other land uses which are essential to public health and welfare. § 609.2.  Procedure upon municipal curative amendments If a municipality determines that its zoning ordinance or any portion thereof is substantially invalid, it shall take the following actions: (1)   A municipality shall declare by formal action, its zoning ordinance or portions thereof substantively invalid and propose to prepare a curative amendment to overcome such invalidity. Within 30 days following such declaration and proposal the governing body of the municipality shall: (i)   By resolution make specific findings setting forth the declared invalidity of the zoning ordinance which may include: (A)  references to specific uses which are either not permitted or not permitted in sufficient quantity; (B)   reference to a class of use or uses which require revision; or (C)   reference to the entire ordinance which requires revisions. (ii)   Begin to prepare and consider a curative amendment to the zoning ordinance to correct the declared invalidity. (2)  Within 180 days from the date of the declaration and proposal, the

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§ 610

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municipality shall enact a curative amendment to validate, or reaffirm the validity of, its zoning ordinance pursuant to the provisions required by section 60974 in order to cure the declared invalidity of the zoning ordinance. (3)  Upon the initiation of the procedures, as set forth in clause (1), the governing body shall not be required to entertain or consider any landowner’s curative amendment filed under section 609.175 nor shall the zoning hearing board be required to give a report requested under section 909.1 or 916.176 subsequent to the declaration and proposal based upon the grounds identical to or substantially similar to those specified in the resolution required by clause (1)(a). Upon completion of the procedures as set forth in clauses (1) and (2), no rights to a cure pursuant to the provisions of sections 609.1 and 916.1 shall, from the date of the declaration and proposal, accrue to any landowner on the basis of the substantive invalidity of the unamended zoning ordinance for which there has been a curative amendment pursuant to this section. (4)   A municipality having utilized the procedures as set forth in clauses (1) and (2) may not again utilize said procedure for a 36-month period following the date of the enactment of a curative amendment, or reaffirmation of the validity of its zoning ordinance, pursuant to clause (2); provided, however, if after the date of declaration and proposal there is a substantially new duty or obligation imposed upon the municipality by virtue of a change in statute or by virtue of a Pennsylvania Appellate Court decision, the municipality may utilize the provisions of this section to prepare a curative amendment to its ordinance to fulfill said duty or obligation. § 610.  Publication, advertisement and availability of ordinances (a)   Proposed zoning ordinances and amendments shall not be enacted unless notice of proposed enactment is given in the manner set forth in this section, and shall include the time and place of the meeting at which passage will be considered, a reference to a place within the municipality where copies of the proposed ordinance or amendment may be examined without charge or obtained for a charge not greater than the cost thereof. The governing body shall publish the proposed ordinance or amendment once in one newspaper of general circulation in the municipality not more than 60 days nor less than 7 days prior to passage. Publication of the proposed ordinance or amendment shall include either the full text thereof or the title and a brief summary, prepared by the municipal solicitor and setting forth all the provisions in reasonable detail. If the full text is not included: (1)   A copy thereof shall be supplied to a newspaper of general circulation in the municipality at the time the public notice is published. (2)   An attested copy of the proposed ordinance shall be filed in the county law library or other county office designated by the county commissioners, who may impose a fee no greater than that necessary to cover the actual costs of storing said ordinances. (b)   In the event substantial amendments are made in the proposed ordinance or amendment, before voting upon enactment, the governing body shall, at least ten days prior to enactment, readvertise, in one newspaper of general circulation in the municipality, a brief summary setting forth all the provisions in reasonable detail together with a summary of the amendments. (c)   Zoning ordinances and amendments may be incorporated into official ordinance books by reference with the same force and effect as if duly recorded therein.

74. 53 P.S. § 10609. 75. 53 P.S. § 10609.1. 76. 53 P.S. §§ 10909.1, 10916.1.

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§ 611.  Repealed. 1988, Dec. 21, P.L. 1329, No. 170, § 56, effective in 60 days

§ 616.  Repealed. 1988, Dec. 21, P.L. 1329, No. 170, § 59, effective in 60 days

(c)   An enforcement notice shall state at least the following: (1)   The name of the owner of record and any other person against whom the municipality intends to take action. (3)   The specific violation with a description of the requirements which have not been met, citing in each instance the applicable provisions of the ordinance. (4)   The date before which the steps for compliance must be commenced and the date before which the steps must be completed.

(d)   In any appeal of an enforcement notice to the zoning hearing board, the municipality shall have the responsibility of presenting its evidence first.

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Index

(e)   Any filing fee paid by a party to appeal an enforcement notice to the zoning hearing board shall be returned to the appealing party by the municipality if the zoning hearing board or any court in a subsequent appeal rules in the appealing party’s favor.

Part IX Ch. 68–72 Condos, etc.

(6)   That failure to comply with the notice within the time specified, unless extended by appeal to the zoning hearing board, constitutes a violation, with possible sanctions clearly described.

Part VIII Ch. 64–67 L/T

(5)  That the recipient of the notice has the right to appeal to the zoning hearing board within a prescribed period of time in accordance with procedures set forth in the ordinance.

Part VII Ch. 57–63 Litigation

(2)   The location of the property in violation.

Part VI Ch. 49–56 Taxation

(b)   The enforcement notice shall be sent to the owner of record of the parcel on which the violation has occurred, to any person who has filed a written request to receive enforcement notices regarding that parcel, and to any other person requested in writing by the owner of record.

Part V Ch. 41–48A Zoning, etc.

§ 616.1.  Enforcement notice (a)   If it appears to the municipality that a violation of any zoning ordinance enacted under this act or prior enabling laws has occurred, the municipality shall initiate enforcement proceedings by sending an enforcement notice as provided in this section.

Part IV Ch. 36–40 Insurance

§ 615.  Zoning appeals All appeals from decisions of the zoning officer shall be taken in the manner set forth in this act.

Part III Ch. 23–35 Mortgages

§ 614.  Appointment and powers of zoning officer For the administration of a zoning ordinance, a zoning officer, who shall not hold any elective office in the municipality, shall be appointed. The zoning officer shall meet qualifications established by the municipality and shall be able to demonstrate to the satisfaction of the municipality a working knowledge of municipal zoning. The zoning officer shall administer the zoning ordinance in accordance with its literal terms, and shall not have the power to permit any construction or any use or change of use which does not conform to the zoning ordinance. Zoning officers may be authorized to institute civil enforcement proceedings as a means of enforcement when acting within the scope of their employment.

Part II Ch. 15–22 Deeds

§ 613.  Registration of nonconforming uses, structures and lots Zoning ordinances may contain provisions requiring the zoning officer to identify and register nonconforming uses, structures and lots, together with the reasons why the zoning officer identified them as nonconformities.

Part I Ch. 1–14 Brokers

§ 612.  Repealed. 1972, June 1, P.L. 333, No. 93, § 11

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§ 617

MUNICIPALITIES PLANNING CODE

§ 617.  Causes of action In case any building, structure, landscaping or land is, or is proposed to be, erected, constructed, reconstructed, altered, converted, maintained or used in violation of any ordinance enacted under this act or prior enabling laws, the governing body or, with the approval of the governing body, an officer of the municipality, or any aggrieved owner or tenant of real property who shows that his property or person will be substantially affected by the alleged violation, in addition to other remedies, may institute any appropriate action or proceeding to prevent, restrain, correct or abate such building, structure, landscaping or land, or to prevent, in or about such premises, any act, conduct, business or use constituting a violation. When any such action is instituted by a landowner or tenant, notice of that action shall be served upon the municipality at least 30 days prior to the time the action is begun by serving a copy of the complaint on the governing body of the municipality. No such action may be maintained until such notice has been given. § 617.1.  Jurisdiction District justices shall have initial jurisdiction over proceedings brought under section 617.2.77 § 617.2.  Enforcement remedies (a)   Any person, partnership or corporation who or which has violated or permitted the violation of the provisions of any zoning ordinance enacted under this act or prior enabling laws shall, upon being found liable therefor in a civil enforcement proceeding commenced by a municipality, pay a judgment of not more than $500 plus all court costs, including reasonable attorney fees incurred by a municipality as a result thereof. No judgment shall commence or be imposed, levied or payable until the date of the determination of a violation by the district justice. If the defendant neither pays nor timely appeals the judgment, the municipality may enforce the judgment pursuant to the applicable rules of civil procedure. Each day that a violation continues shall constitute a separate violation, unless the district justice determining that there has been a violation further determines that there was a good faith basis for the person, partnership or corporation violating the ordinance to have believed that there was no such violation, in which event there shall be deemed to have been only one such violation until the fifth day following the date of the determination of a violation by the district justice and thereafter each day that a violation continues shall constitute a separate violation. All judgments, costs and reasonable attorney fees collected for the violation of zoning ordinances shall be paid over to the municipality whose ordinance has been violated. (b)  The court of common pleas, upon petition, may grant an order of stay, upon cause shown, tolling the per diem fine pending a final adjudication of the violation and judgment. (c)   Nothing contained in this section shall be construed or interpreted to grant to any person or entity other than the municipality the right to commence any action for enforcement pursuant to this section. § 617.3.  Finances and expenditures (a)   The governing body may appropriate funds to finance the preparation of zoning ordinances and shall appropriate funds for administration, for enforcement and for actions to support or oppose, upon appeal to the courts, decisions of the zoning hearing board. (b)  The governing body shall make provision in its budget and appropriate funds for the operation of the zoning hearing board. 77. 53 P.S. § 10617.2.

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(c)   The zoning hearing board may employ or contract for and fix the compensation of legal counsel, as the need arises. The legal counsel shall be an attorney other than the municipal solicitor. The board may also employ or contract for and fix the compensation of experts and other staff and may contract for services as it shall deem necessary. The compensation of legal counsel, experts and staff and the sums expended for services shall not exceed the amount appropriated by the governing body for this use.

Part I Ch. 1–14 Brokers

(d)   For the same purposes, the governing body may accept gifts and grants of money and services from private sources and from the county, State and Federal Governments.

Part II Ch. 15–22 Deeds

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Part IX Ch. 68–72 Condos, etc.

(d)  No development rights shall be transferable beyond the boundaries of the municipality wherein the lands from which the development rights arise are situated, except that, in the case of a joint municipal zoning ordinance or a written agreement among two or more municipalities, development rights shall be transferable within the boundaries of the municipalities comprising the joint municipal zoning ordinance or, where there is a written agreement, the boundaries of the municipalities who are parties to the agreement.

Part VIII Ch. 64–67 L/T

(c)   The recorder of deeds shall not accept for recording any such instrument of conveyance unless there is endorsed thereon the approval of the municipal governing body having zoning or planned residential development jurisdiction over the land within which the development rights are to be conveyed, dated not more than 60 days prior to the recording.

Part VII Ch. 57–63 Litigation

(b)   The development rights shall be conveyed by a deed duly recorded in the office of the recorder of deeds in and for the county in which the municipality whose ordinance authorizes such conveyance is located.

Part VI Ch. 49–56 Taxation

§ 619.1.  Transferable development rights (a)  To and only to the extent a local ordinance enacted in accordance with this article and Article VII so provides, there is hereby created, as a separate estate in land, the development rights therein, and the same are declared to be severable and separately conveyable from the estate in fee simple to which they are applicable.

Part V Ch. 41–48A Zoning, etc.

§ 619.  Exemptions This article shall not apply to any existing or proposed building, or extension thereof, used or to be used by a public utility corporation, if, upon petition of the corporation, the Pennsylvania Public Utility Commission shall, after a public hearing, decide that the present or proposed situation of the building in question is reasonably necessary for the convenience or welfare of the public. It shall be the responsibility of the Pennsylvania Public Utility Commission to ensure that both the corporation and the municipality in which the building or proposed building is located have notice of the hearing and are granted an opportunity to appear, present witnesses, cross-examine witnesses presented by other parties and otherwise exercise the rights of a party to the proceedings.

Part IV Ch. 36–40 Insurance

§ 618.  Repealed. 1988, Dec. 21, P.L. 1329, No. 170, § 63, effective in 60 days.

Part III Ch. 23–35 Mortgages

(e)  The governing body may prescribe reasonable fees with respect to the administration of a zoning ordinance and with respect to hearings before the zoning hearing board. Fees for these hearings may include compensation for the secretary and members of the zoning hearing board, notice and advertising costs and necessary administrative overhead connected with the hearing. The costs, however, shall not include legal expenses of the zoning hearing board, expenses for engineering, architectural or other technical consultants or expert witness costs.

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§ 619.2

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§ 619.2.  Effect of comprehensive plans and zoning ordinances (a)   When a county adopts a comprehensive plan in accordance with sections 301 and 30278 and any municipalities therein have adopted comprehensive plans and zoning ordinances in accordance with sections 301, 303(d) and 603(j),79 Commonwealth agencies shall consider and may rely upon comprehensive plans and zoning ordinances when reviewing applications for the funding or permitting of infrastructure or facilities. (b)   The Center for Local Government Services shall work with municipalities to coordinate Commonwealth agency program resources with municipal planning and zoning activities. Upon request, the Center for Local Government Services shall assist municipalities in identifying and assessing the impact of Commonwealth agency decisions and their effect on municipal and multimunicipal planning and zoning. Upon the authorization of the Governor, the Center for Local Government Services shall have access to information, services, functions and other resources in the possession of executive agencies under the Governor’s jurisdiction to fulfill its obligations under this section. (c)   When municipalities adopt a joint municipal zoning ordinance: (1)  Commonwealth agencies shall consider and may rely upon the joint municipal zoning ordinance for the funding or permitting of infrastructure or facilities. (2)   The municipalities may by agreement share tax revenues and fees remitted to municipalities located within the joint municipal zone. § 620.  Repealed. 1972, June 1, P.L. 333, No. 93, § 13 § 621.   Prohibiting the location of methadone treatment facilities in certain locations (a)(1)  Notwithstanding any other provision of law to the contrary and except as provided in subsection (b), a methadone treatment facility shall not be established or operated within 500 feet of an existing school, public playground, public park, residential housing area, child-care facility, church, meetinghouse or other actual place of regularly stated religious worship established prior to the proposed methadone treatment facility. (2)  The provisions of this subsection shall apply whether or not an occupancy permit or certificate of use has been issued to the owner or operator of a methadone treatment facility for a location that is within 500 feet of an existing school, public playground, public park, residential housing area, child-care facility, church, meetinghouse or other actual place of regularly stated religious worship established prior to the proposed methadone treatment facility. (b)  Notwithstanding subsection (a), a methadone treatment facility may be established and operated closer than 500 feet to an existing school, public playground, public park, residential housing area, child-care facility, church, meetinghouse or other actual place of regularly stated religious worship established prior to the proposed methadone treatment facility if, by majority vote, the governing body for the municipality in which the proposed methadone treatment facility is to be located votes in favor of the issuance of an occupancy permit or certificate of use for said facility at such a location. At least 14 days prior to the governing body of a municipality voting on whether to approve the issuance of an occupancy permit or certificate of use for a methadone treatment facility at a location that is closer than 500 feet to a school, public playground, public park, residential housing area, child-care facility, church, meetinghouse or other actual place of regularly stated religious worship established prior to the proposed methadone 78. 53 P.S. §§ 10301 and 10302. 79. 53 P.S. §§ 10303 and 10603.

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Part VI Ch. 49–56 Taxation

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Part V Ch. 41–48A Zoning, etc.

80. 53 P.S. § 10601 et seq. 81. 53 P.S. § 10601 et seq.

Part IV Ch. 36–40 Insurance

§ 701.  Purposes In order that the purposes of this act be furthered in an era of increasing urbanization and of growing demand for housing of all types and design; to insure that the provisions of Article VI80 which are concerned in part with the uniform treatment of dwelling type, bulk, density, intensity and open space within each zoning district, shall not be applied to the improvement of land by other than lot by lot development in a manner that would distort the objectives of that Article VI; to encourage innovations in residential and nonresidential development and renewal so that the growing demand for housing and other development may be met by greater variety in type, design and layout of dwellings and other buildings and structures and by the conservation and more efficient use of open space ancillary to said dwellings and uses; so that greater opportunities for better housing and recreation may extend to all citizens and residents of this Commonwealth; and in order to encourage a more efficient use of land and of public services and to reflect changes in the technology of land development so that economies secured may enure to the benefit of those who need homes and for other uses; and, in aid of these purposes, to provide a procedure which can relate the type, design and layout of residential and nonresidential development to the particular site and the particular demand for housing existing at the time of development in a manner consistent with the preservation of the property values within existing residential and nonresidential areas, and to insure that the increased flexibility of regulations over land development authorized herein is carried out under such administrative standards and procedures as shall encourage the disposition of proposals for land development without undue delay, the following powers are granted to all municipalities. § 702.  Grant of power The governing body of each municipality may enact, amend and repeal provisions within a zoning ordinance fixing standards and conditions for planned residential development. The enactment of such provisions shall be in accordance with the procedures required for the enactment of an amendment of a zoning ordinance as provided in Article VI81 of this act. Pursuant to such provisions the governing body may approve, modify or disapprove any development plan within the municipality adopting such provisions or designate the planning agency as its official agency for such purposes. Such provisions shall:

Part III Ch. 23–35 Mortgages

Planned Residential Development

Part II Ch. 15–22 Deeds

ARTICLE VII

Part I Ch. 1–14 Brokers

treatment facility, one or more public hearings regarding the proposed methadone treatment facility location shall be held within the municipality following public notice. All owners of real property located within 500 feet of the proposed location shall be provided written notice of said public hearings at least 30 days prior to said public hearings occurring. (c)  This section shall not apply to a methadone treatment facility that is licensed by the Department of Health prior to May 15, 1999. (d)  As used in this section, the term “methadone treatment facility” shall mean a facility licensed by the Department of Health to use the drug methadone in the treatment, maintenance or detoxification of persons.

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§ 702.1

MUNICIPALITIES PLANNING CODE

(1)   Specify whether the governing body, or the planning agency shall administer planned residential development provisions pursuant to the provisions of this article; (2)   Set forth the standards, conditions and regulations for a planned residential development consistent with the provisions of this article; and (3)   Set forth the procedures pertaining to the application for, hearing on and tentative and final approval of a planned residential development, which shall be consistent with the provisions of this article for such applications and hearings. § 702.1.  Transferable development rights Municipalities electing to enact planned residential development provisions may also incorporate therein provisions for transferable development rights, on a voluntary basis, in accordance with express standards and criteria set forth in the ordinance and with the requirements of Article VI.82 § 703.  Applicability of comprehensive plan and statement of community development objectives All provisions and all amendments thereto adopted pursuant to this article shall be based on and interpreted in relation to the statement of community development objectives of the zoning ordinance and may be related to either the comprehensive plan for the development of the municipality prepared under the provisions of this act or a statement of legislative findings in accordance with section 606.83 Every application for approval of a planned residential development either shall be based on and interpreted in relation to the statement of community development objectives, and may be related to the comprehensive plan, or shall be based on and interpreted in relation to the statement of legislative findings. § 704.  Jurisdiction of county planning agencies (a)   When any county has adopted planned residential development provisions in accordance with the terms of this article, a certified copy of such provisions shall be sent to every municipality within the county. All amendments shall also be sent to the aforementioned municipalities. (b)  The powers of governing bodies of counties to enact, amend and repeal planned residential development provisions shall not supersede any local planned residential development, zoning or subdivision and land development ordinance which is already in effect or subsequently becomes effective in any municipality within such county, provided that a certified copy of such provision is filed with the county planning agency, if one exists. However, all applications for tentative approval of planned residential development of land located within a municipality having adopted planned residential development provisions as set forth in this article shall nevertheless be referred to the county planning agency, if one exists, for study and recommendation and such county planning agency shall be required to report to such municipality within 30 days or forfeit the right to review. § 705.  Standards and conditions for planned residential development (a)   All provisions adopted pursuant to this article shall set forth all the standards, conditions and regulations by which a proposed planned residential development shall be evaluated, and said standards, conditions and regulations shall be consistent with the following subsections. (b)  The provisions adopted pursuant to this article shall set forth the uses permitted in a planned residential development, which uses may include but shall not be limited to:

82. 53 P.S. § 10601 et seq. 83. 53 P.S. § 10606.

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Part III Ch. 23–35 Mortgages Part IV Ch. 36–40 Insurance Part V Ch. 41–48A Zoning, etc. Part VI Ch. 49–56 Taxation Part VII Ch. 57–63 Litigation Part VIII Ch. 64–67 L/T Part IX Ch. 68–72 Condos, etc. Index

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Part I Ch. 1–14 Brokers

(1)   Dwelling units of any dwelling type or configuration, or any combination thereof. (2)  Those nonresidential uses deemed to be appropriate for incorporation in the design of the planned residential development. (c)  The provisions may establish regulations setting forth the timing of development among the various types of dwellings and may specify whether some or all nonresidential uses are to be built before, after or at the same time as the residential uses. (d)   The provisions adopted pursuant to this article shall establish standards governing the density, or intensity of land use, in a planned residential development. The standards may vary the density or intensity of land use, otherwise applicable to the land under the provisions of a zoning ordinance of the municipality within the planned residential development in consideration of all of the following: (1)   The amount, location and proposed use of common open space. (2)  The location and physical characteristics of the site of the proposed planned residential development. (3)   The location, design, type and use of structures proposed. (e)   In the case of a planned residential development proposed to be developed over a period of years, standards established in provisions adopted pursuant to this article may, to encourage the flexibility of housing density, design and type intended by this article: (1)   Permit a variation in each section to be developed from the density, or intensity of use, established for the entire planned residential development. (2)  Allow for a greater concentration of density or intensity of land use, within some section or sections of development, whether it be earlier or later in the development than upon others. (3)  Require that the approval of such greater concentration of density or intensity of land use for any section to be developed be offset by a smaller concentration in any completed prior stage or by an appropriate reservation of common open space on the remaining land by a grant of easement or by covenant in favor of the municipality, provided that such reservation shall, as far as practicable, defer the precise location of such common open space until an application for final approval is filed, so that flexibility of development which is a prime objective of this article, can be maintained. (f)   The standards for a planned residential development established by provisions adopted pursuant to this article may require that the common open space resulting from the application of standards for density, or intensity of land use, shall be set aside for the use and benefit of the residents in such development and may include provisions which shall determine the amount and location of said common open space and secure its improvement and maintenance for common open space use, subject, however, to the following: (1)  The municipality may, at any time and from time to time, accept the dedication of land or any interest therein for public use and maintenance, but the municipality need not require, as a condition of the approval of a planned residential development, that land proposed to be set aside for common open space be dedicated or made available to public use. The provisions may require that the landowner provide for and establish an organization for the ownership and maintenance of the common open space, and that such organization shall not be dissolved nor shall it dispose of the common open space, by sale or otherwise (except to an organization conceived and established to own and maintain the common open space), without first offering to dedicate the same to the public.

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§ 705

MUNICIPALITIES PLANNING CODE

(2)  In the event that the organization established to own and maintain common open space, or any successor organization, shall at any time after establishment of the planned residential development fail to maintain the common open space in reasonable order and condition in accordance with the development plan, the municipality may serve written notice upon such organization or upon the residents of the planned residential development setting forth the manner in which the organization has failed to maintain the common open space in reasonable condition, and said notice shall include a demand that such deficiencies of maintenance be corrected within 30 days thereof, and shall state the date and place of a hearing thereon which shall be held within 14 days of the notice. At such hearing the municipality may modify the terms of the original notice as to the deficiencies and may give an extension of time within which they shall be corrected. (3)   If the deficiencies set forth in the original notice or in the modifications thereof shall not be corrected within said 30 days or any extension thereof, the municipality, in order to preserve the taxable values of the properties within the planned residential development and to prevent the common open space from becoming a public nuisance, may enter upon said common open space and maintain the same for a period of one year. Said maintenance by the municipality shall not constitute a taking of said common open space, nor vest in the public any rights to use the same. (4)   Before the expiration of said year, the municipality shall, upon its initiative or upon the request of the organization theretofore responsible for the maintenance of the common open space, call a public hearing upon notice to such organization, or to the residents of the planned residential development, to be held by the governing body or its designated agency, at which hearing such organization or the residents of the planned residential development shall show cause why such maintenance by the municipality shall not, at the option of the municipality, continue for a succeeding year. If the governing body, or its designated agency, shall determine that such organization is ready and able to maintain said common open space in reasonable condition, the municipality shall cease to maintain said common open space at the end of said year. If the governing body or its designated agency shall determine that such organization is not ready and able to maintain said common open space in a reasonable condition, the municipality may, in its discretion, continue to maintain said common open space during the next succeeding year and, subject to a similar hearing and determination, in each year thereafter. (5)  The decision of the governing body or its designated agency shall be subject to appeal to court in the same manner, and within the same time limitation, as is provided for zoning appeals by this act. (6)   The cost of such maintenance by the municipality shall be assessed ratably against the properties within the planned residential development that have a right of enjoyment of the common open space, and shall become a lien on said properties. The municipality at the time of entering upon said common open space for the purpose of maintenance shall file a notice of lien in the office of the prothonotary of the county, upon the properties affected by the lien within the planned residential development. (g)  Provisions adopted pursuant to this article may require that a planned residential development contain a minimum number of dwelling units. (h)   The authority granted a municipality by Article V84 to establish standards for the location, width, course and surfacing of streets, walkways, curbs, gutters, street lights, shade trees, water, sewage and drainage facilities, easements or 84. 53 P.S. § 10501 et seq.

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Part VI Ch. 49–56 Taxation Part VII Ch. 57–63 Litigation Part VIII Ch. 64–67 L/T Part IX Ch. 68–72 Condos, etc. Index

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Part V Ch. 41–48A Zoning, etc.

593

Part IV Ch. 36–40 Insurance

(iii)   the intensity of use or the density of residential units; shall run in favor of the municipality and shall be enforceable in law or in equity by the municipality, without limitation on any powers of regulation otherwise granted the municipality by law.

Part III Ch. 23–35 Mortgages

(ii)   the quantity and location of common open space, except as otherwise provided in this article; and

Part II Ch. 15–22 Deeds

§ 706.  Enforcement and modification of provisions of the plan To further the mutual interest of the residents of the planned residential development and of the public in the preservation of the integrity of the development plan, as finally approved, and to insure that modifications, if any, in the development plan shall not impair the reasonable reliance of the said residents upon the provisions of the development plan, nor result in changes that would adversely affect the public interest, the enforcement and modification of the provisions of the development plan as finally approved, whether those are recorded by plat, covenant, easement or otherwise shall be subject to the following provisions: (1)   The provisions of the development plan relating to: (i)   the use, bulk and location of buildings and structures;

Part I Ch. 1–14 Brokers

rights-of-way for drainage and utilities, reservations of public grounds, other improvements, regulations for the height and setback as they relate to renewable energy systems and energy-conserving building design, regulations for the height and location of vegetation with respect to boundary lines, as they relate to renewable energy systems and energy-conserving building design, regulations for the type and location of renewable energy systems or their components and regulations for the design and construction of structures to encourage the use of renewable energy systems, shall be vested in the governing body or the planning agency for the purposes of this article. The standards applicable to a particular planned residential development may be different than or modifications of, the standards and requirements otherwise required of subdivisions authorized under an ordinance adopted pursuant to Article V, provided, however, that provisions adopted pursuant to this article shall set forth the limits and extent of any modifications or changes in such standards and requirements in order that a landowner shall know the limits and extent of permissible modifications from the standards otherwise applicable to subdivisions. (i)  The provisions adopted pursuant to this article shall set forth the standards and criteria by which the design, bulk and location of buildings shall be evaluated, and all such standards and criteria for any feature of a planned residential development shall be set forth in such provisions with sufficient certainty to provide reasonable criteria by which specific proposals for a planned residential development can be evaluated. All standards in such provisions shall not unreasonably restrict the ability of the landowner to relate his development plan to the particular site and to the particular demand for housing existing at the time of development. (j)  Provisions adopted pursuant to this article shall include a requirement that, if water is to be provided by means other than by private wells owned and maintained by the individual owners of lots within the planned residential development, applicants shall present evidence to the governing body or planning agency, as the case may be, that the planned residential development is to be supplied by a certificated public utility, a bona fide cooperative association of lot owners, or by a municipal corporation, authority or utility. A copy of a Certificate of Public Convenience from the Pennsylvania Public Utility Commission or an application for such certificate, a cooperative agreement, or a commitment or agreement to serve the area in question, whichever is appropriate, shall be acceptable evidence.

Table of Contents

PART V

12/22/21 10:45 AM

§ 707

MUNICIPALITIES PLANNING CODE

(2)  All provisions of the development plan shall run in favor of the residents of the planned residential development but only to the extent expressly provided in the development plan and in accordance with the terms of the development plan, and to that extent said provisions, whether recorded by plat, covenant, easement or otherwise, may be enforced at law or equity by said residents acting individually, jointly, or through an organization designated in the development plan to act on their behalf; provided, however, that no provisions of the development plan shall be implied to exist in favor of residents of the planned residential development except as to those portions of the development plan which have been finally approved and have been recorded. (3)   All those provisions of the development plan authorized to be enforced by the municipality under this section may be modified, removed, or released by the municipality, except grants or easements relating to the service or equipment of a public utility, subject to the following conditions: (i)   No such modification, removal or release of the provisions of the development plan by the municipality shall affect the rights of the residents of the planned residential development to maintain and enforce those provisions, at law or equity, as provided in this section. (ii)   No modification, removal or release of the provisions of the development plan by the municipality shall be permitted except upon a finding by the governing body or the planning agency, following a public hearing thereon pursuant to public notice called and held in accordance with the provisions of this article, that the same is consistent with the efficient development and preservation of the entire planned residential development, does not adversely affect either the enjoyment of land abutting upon or across the street from the planned residential development or the public interest, and is not granted solely to confer a special benefit upon any person. (4)  Residents of the planned residential development may, to the extent and in the manner expressly authorized by the provisions of the development plan, modify, remove or release their rights to enforce the provisions of the development plan but no such action shall affect the right of the municipality to enforce the provisions of the development plan in accordance with the provisions of this section. § 707.  Application for tentative approval of planned residential development In order to provide an expeditious method for processing a development plan for a planned residential development under the provisions adopted pursuant to the powers granted herein, and to avoid the delay and uncertainty which would arise if it were necessary to secure approval, by a multiplicity of local procedures, of a plat of subdivision as well as approval of a change in the zoning regulations otherwise applicable to the property, it is hereby declared to be in the public interest that all procedures with respect to the approval or disapproval of a development plan for a planned residential development and the continuing administration thereof shall be consistent with the following provisions: (1)  An application for tentative approval of the development plan for a planned residential development shall be filed by or on behalf of the landowner. (2)   The application for tentative approval shall be filed by the landowner in such form, upon the payment of such a reasonable fee and with such officials of the municipality as shall be designated in the provisions adopted pursuant to this article. (3)  All planning, zoning and subdivision matters relating to the platting, use and development of the planned residential development and subsequent modifications of the regulations relating thereto, to the extent such modifica-

594

gtb-parealestate22-all.indb 594

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GOVERNMENT REGULATION

Ch. 41

Part IV Ch. 36–40 Insurance Part V Ch. 41–48A Zoning, etc. Part VI Ch. 49–56 Taxation Part VII Ch. 57–63 Litigation Part VIII Ch. 64–67 L/T Part IX Ch. 68–72 Condos, etc. Index

gtb-parealestate22-all.indb 595

Part III Ch. 23–35 Mortgages

595

Part II Ch. 15–22 Deeds

85. 53 P.S. §§ 10501 et seq., 10601 et seq. 86. 53 P.S. § 10901 et seq.

Part I Ch. 1–14 Brokers

tion is vested in the municipality, shall be determined and established by the governing body or the planning agency. (4)  The provisions shall require only such information in the application as is reasonably necessary to disclose to the governing body or the planning agency: (i)  the location, size and topography of the site and the nature of the landowner’s interest in the land proposed to be developed; (ii)   the density of land use to be allocated to parts of the site to be developed; (iii)   the location and size of the common open space and the form of organization proposed to own and maintain the common open space; (iv)   the use and the approximate height, bulk and location of buildings and other structures; (v)  the feasibility of proposals for water supply and the disposition of sanitary waste and storm water; (vi)   the substance of covenants, grants of easements or other restrictions proposed to be imposed upon the use of the land, buildings and structures including proposed easements or grants for public utilities; (vii)   the provisions for parking of vehicles and the location and width of proposed streets and public ways; (viii)  the required modifications in the municipal land use regulations otherwise applicable to the subject property; (viii.1)   the feasibility of proposals for energy conservation and the effective utilization of renewable energy sources; and (ix)   in the case of development plans which call for development over a period of years, a schedule showing the proposed times within which applications for final approval of all sections of the planned residential development are intended to be filed and this schedule must be updated annually, on the anniversary of its approval, until the development is completed and accepted. (5)  The application for tentative approval of a planned residential development shall include a written statement by the landowner setting forth the reasons why, in his opinion, a planned residential development would be in the public interest and would be consistent with the comprehensive plan for the development of the municipality. (6)   The application for and tentative and final approval of a development plan for a planned residential development prescribed in this article shall be in lieu of all other procedures or approvals, otherwise required pursuant to Articles V and VI of this act.85 § 708.  Public hearings (a)  Within 60 days after the filing of an application for tentative approval of a planned residential development pursuant to this article, a public hearing pursuant to public notice on said application shall be held by the governing body or the planning agency, if designated, in the manner prescribed in Article IX.86 (b)   The governing body or the planning agency may continue the hearing from time to time, and where applicable, may refer the matter back to the planning agency for a report, provided, however, that in any event, the public hearing or hearings shall be concluded within 60 days after the date of the first public hearing.

Table of Contents

PART V

12/22/21 10:45 AM

§ 709

MUNICIPALITIES PLANNING CODE

(c)  The municipality may offer a mediation option as an aid in completing proceedings authorized by this section and by subsequent sections in this article prior to final approval by the governing body. In exercising such an option, the municipality and mediating parties shall meet the stipulations and follow the procedures set forth in Article IX. § 709.  The findings (a)   The governing body, or the planning agency, within 60 days following the conclusion of the public hearing provided for in this article or within 180 days after the date of filing of the application, whichever occurs first, shall, by official written communication, to the landowner, either: (1)   grant tentative approval of the development plan as submitted; (2)   grant tentative approval subject to specified conditions not included in the development plan as submitted; or (3)   deny tentative approval to the development plan. Failure to so act within said period shall be deemed to be a grant of tentative approval of the development plan as submitted. In the event, however, that tentative approval is granted subject to conditions, the landowner may, within 30 days after receiving a copy of the official written communication of the governing body notify such governing body of his refusal to accept all said conditions, in which case, the governing body shall be deemed to have denied tentative approval of the development plan. In the event the landowner does not, within said period, notify the governing body of his refusal to accept all said conditions, tentative approval of the development plan, with all said conditions, shall stand as granted. (b)   The grant or denial of tentative approval by official written communication shall include not only conclusions but also findings of fact related to the specific proposal and shall set forth the reasons for the grant, with or without conditions, or for the denial, and said communication shall set forth with particularity in what respects the development plan would or would not be in the public interest, including, but not limited to, findings of fact and conclusions on the following: (1)   in those respects in which the development plan is or is not consistent with the comprehensive plan for the development of the municipality; (2)  the extent to which the development plan departs from zoning and subdivision regulations otherwise applicable to the subject property, including but not limited to density, bulk and use, and the reasons why such departures are or are not deemed to be in the public interest; (3)  the purpose, location and amount of the common open space in the planned residential development, the reliability of the proposals for maintenance and conservation of the common open space, and the adequacy or inadequacy of the amount and purpose of the common open space as related to the proposed density and type of residential development; (4)   the physical design of the development plan and the manner in which said design does or does not make adequate provision for public services, provide adequate control over vehicular traffic, and further the amenities of light and air, recreation and visual enjoyment; (5)   the relationship, beneficial or adverse, of the proposed planned residential development to the neighborhood in which it is proposed to be established; and (6)   in the case of a development plan which proposes development over a period of years, the sufficiency of the terms and conditions intended to protect the interests of the public and of the residents of the planned residential development in the integrity of the development plan.

596

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GOVERNMENT REGULATION

Ch. 41

Part VI Ch. 49–56 Taxation Part VII Ch. 57–63 Litigation Part VIII Ch. 64–67 L/T Part IX Ch. 68–72 Condos, etc. Index

gtb-parealestate22-all.indb 597

Part V Ch. 41–48A Zoning, etc.

597

Part IV Ch. 36–40 Insurance

§ 711.  Application for final approval (a)  An application for final approval may be for all the land included in a development plan or, to the extent set forth in the tentative approval, for a section thereof. Said application shall be made to the official of the municipality designated by the ordinance and within the time or times specified by the official written communication granting tentative approval. The application shall include any drawings, specifications, covenants, easements, performance bond and such other requirements as may be specified by ordinance, as well as any conditions set forth in the official written communication at the time of tentative approval. A public hearing on an application for final approval of the development plan, or part thereof, shall not be required provided the development plan, or the part thereof, submitted for final approval, is in compliance with the development plan theretofore given tentative approval and with any specified conditions attached thereto.

Part III Ch. 23–35 Mortgages

(b)   Tentative approval of a development plan shall not qualify a plat of the planned residential development for recording nor authorize development or the issuance of any building permits. A development plan which has been given tentative approval as submitted, or which has been given tentative approval with conditions which have been accepted by the landowner (and provided that the landowner has not defaulted nor violated any of the conditions of the tentative approval), shall not be modified or revoked nor otherwise impaired by action of the municipality pending an application or applications for final approval, without the consent of the landowner, provided an application or applications for final approval is filed or, in the case of development over a period of years, provided applications are filed, within the periods of time specified in the official written communication granting tentative approval. (c)  In the event that a development plan is given tentative approval and thereafter, but prior to final approval, the landowner shall elect to abandon said development plan and shall so notify the governing body in writing, or in the event the landowner shall fail to file application or applications for final approval within the required period of time or times, as the case may be, the tentative approval shall be deemed to be revoked and all that portion of the area included in the development plan for which final approval has not been given shall be subject to those local ordinances otherwise applicable thereto as they may be amended from time to time, and the same shall be noted on the zoning map and in the records of the municipal secretary or clerk of the municipality.

Part II Ch. 15–22 Deeds

§ 710.  Status of plan after tentative approval (a)   The official written communication provided for in this article shall be certified by the municipal secretary or clerk of the governing body and shall be filed in his office, and a certified copy shall be mailed to the landowner. Where tentative approval has been granted, it shall be deemed an amendment to the zoning map, effective upon final approval, and shall be noted on the zoning map.

Part I Ch. 1–14 Brokers

(c)  In the event a development plan is granted tentative approval, with or without conditions, the governing body may set forth in the official written communication the time within which an application for final approval of the development plan shall be filed or, in the case of a development plan which provides for development over a period of years, the periods of time within which applications for final approval of each part thereof shall be filed. Except upon the consent of the landowner, the time so established between grant of tentative approval and an application for final approval shall not be less than three months and, in the case of developments over a period of years, the time between applications for final approval of each part of a plan shall be not less than 12 months.

Table of Contents

PART V

12/22/21 10:45 AM

§ 711

MUNICIPALITIES PLANNING CODE

(b)  In the event the application for final approval has been filed, together with all drawings, specifications and other documents in support thereof, and as required by the ordinance and the official written communication of tentative approval, the municipality shall, within 45 days from the date of the regular meeting of the governing body or the planning agency, whichever first reviews the application next following the date the application is filed, grant such development plan final approval, provided, however, that should the next regular meeting occur more than 30 days following the filing of the application, the 45-day period shall be measured from the 30th day following the day the application has been filed. (c)   In the event the development plan as submitted contains variations from the development plan given tentative approval, the approving body may refuse to grant final approval and shall, within 45 days from the date of the regular meeting of the governing body or the planning agency, whichever first reviews the application next following the date the application is filed, so advise the landowner in writing of said refusal, setting forth in said notice the reasons why one or more of said variations are not in the public interest, provided, however, that should the next regular meeting occur more than 30 days following the filing of the application, the 45-day period shall be measured from the 30th day following the day the application has been filed. In the event of such refusal, the landowner may either: or

(1)   refile his application for final approval without the variations objected;

(2)  file a written request with the approving body that it hold a public hearing on his application for final approval. If the landowner wishes to take either such alternate action he may do so at any time within which he shall be entitled to apply for final approval, or within 30 additional days if the time for applying for final approval shall have already passed at the time when the landowner was advised that the development plan was not in substantial compliance. In the event the landowner shall fail to take either of these alternate actions within said time, he shall be deemed to have abandoned the development plan. Any such public hearing shall be held pursuant to public notice within 30 days after request for the hearing is made by the landowner, and the hearing shall be conducted in the manner prescribed in this article for public hearings on applications for tentative approval. Within 30 days after the conclusion of the hearing, the approving body shall by official written communication either grant final approval to the development plan or deny final approval. The grant or denial of final approval of the development plan shall, in cases arising under this section, be in the form and contain the findings required for an application for tentative approval set forth in this article. Failure of the governing body or agency to render a decision on an application for final approval and communicate it to the applicant within the time and in the manner required by this section shall be deemed an approval of the application for final approval, as presented, unless the applicant has agreed in writing to an extension of time or change in the prescribed manner of presentation of communication of the decision, in which case failure to meet the extended time or change in manner of presentation of communication shall have like effect. (d)   A development plan, or any part thereof, which has been given final approval shall be so certified without delay by the approving body and shall be filed of record forthwith in the office of the recorder of deeds before any development shall take place in accordance therewith. Upon the filing of record of the development plan the zoning and subdivision regulations otherwise applicable to the land included in such plan shall cease to apply thereto. Pending completion, in accordance with the time provisions stated in section 508,87 of said planned 87. 53 P.S. § 10508.

598

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12/22/21 10:45 AM

GOVERNMENT REGULATION

Ch. 41

Part VIII Ch. 64–67 L/T Part IX Ch. 68–72 Condos, etc. Index

gtb-parealestate22-all.indb 599

Part VII Ch. 57–63 Litigation

599

Part VI Ch. 49–56 Taxation

10513(a). 10509. 10601 et seq. 10712.2.

Part V Ch. 41–48A Zoning, etc.

§ § § §

Part IV Ch. 36–40 Insurance

P.S. P.S. P.S. P.S.

Part III Ch. 23–35 Mortgages

53 53 53 53

Part II Ch. 15–22 Deeds

88. 89. 90. 91.

Part I Ch. 1–14 Brokers

residential development or of that part thereof, as the case may be, that has been finally approved, no modification of the provisions of said development plan, or part thereof, as finally approved, shall be made except with the consent of the landowner. Upon approval of a final plat, the developer shall record the plat in accordance with the provisions of section 513(a)88 and post financial security in accordance with section 509.89 (e)   In the event that a development plan, or a section thereof, is given final approval and thereafter the landowner shall abandon such plan or the section thereof that has been finally approved, and shall so notify the approving body in writing; or, in the event the landowner shall fail to commence and carry out the planned residential development in accordance with the time provisions stated in section 508 after final approval has been granted, no development or further development shall take place on the property included in the development plan until after the said property is reclassified by enactment of an amendment to the municipal zoning ordinance in the manner prescribed for such amendments in Article VI.90 (f) Each month a municipality shall notify in writing the superintendent of a school district in which development plans for a planned residential development were finally approved by the municipality during the preceding month. The notice shall include, but not be limited to, the location of the development, the number and types of units to be included in the development and the expected construction schedule of the development. § 712.  Repealed. 1972, June 1, P.L. 333, No. 93, § 13 § 712.1.  Jurisdiction District justices shall have initial jurisdiction over proceedings brought under section 712.2.91 § 712.2.  Enforcement remedies (a)  Any person, partnership or corporation, who or which has violated the planned residential development provisions of any ordinance enacted under this act or prior enabling laws shall, upon being found liable therefor in a civil enforcement proceeding commenced by a municipality, pay a judgment of not more than $500 plus all court costs, including reasonable attorney fees incurred by a municipality as a result thereof. No judgment shall commence or be imposed, levied or payable until the date of the determination of a violation by the district justice. If the defendant neither pays nor timely appeals the judgment, the municipality may enforce the judgment pursuant to the appropriate rules of civil procedure. Each day that a violation continues shall constitute a separate violation, unless the district justice determining that there has been a violation further determines that there was a good faith basis for the person, partnership or corporation violating the ordinance to have believed that there was no such violation, in which event there shall be deemed to have been only one such violation until the fifth day following the date of the determination of a violation by the district justice, and thereafter each day that a violation continues shall constitute a separate violation. All judgments, costs and reasonable attorney fees collected for the violation of planned residential development provisions shall be paid over to the municipality whose ordinance has been violated. (b)  The court of common pleas, upon petition, may grant an order of stay, upon cause shown, tolling the per diem judgment pending a final adjudication of the violation and judgment.

Table of Contents

PART V

12/22/21 10:45 AM

§ 713

MUNICIPALITIES PLANNING CODE

(c)   Nothing contained in this section shall be construed or interpreted to grant to any person or entity other than the municipality the right to commence any action for enforcement pursuant to this section. § 713.  Compliance by municipalities Municipalities with planned residential development ordinances shall have five years from the effective date of this amendatory act to comply with the provisions of this article.

ARTICLE VII-A Traditional Neighborhood Development § 701-A.  Purposes and objectives (a)   This article grants powers to municipalities for the following purposes: (1)   to insure that the provisions of Article VI92 which are concerned in part with the uniform treatment of dwelling type, bulk, density, intensity and open space within each zoning district shall not be applied to the improvement of land by other than lot by lot development in a manner that would distort the objectives of Article VI; (2)   to encourage innovations in residential and nonresidential development and renewal which makes use of a mixed-use form of development so that the growing demand for housing and other development may be met by greater variety in type, design and layout of dwellings and other buildings and structures and by the conservation and more efficient use of open space ancillary to said dwellings and uses; (3)   to extend greater opportunities for better housing, recreation and access to goods, services and employment opportunities to all citizens and residents of this Commonwealth; (4)   to encourage a more efficient use of land and of public services to reflect changes in the technology of land development so that economies secured may benefit those who need homes and for other uses; (5)   to allow for the development of fully integrated, mixed-use pedestrianoriented neighborhoods; (6)   to minimize traffic congestion, infrastructure costs and environmental degradation; (7)  to promote the implementation of the objectives of the municipal or multimunicipal comprehensive plan for guiding the location for growth; (8)  to provide a procedure in aid of these purposes which can relate the type, design and layout of residential and nonresidential development to the particular site and the particular demand for housing existing at the time of development in a manner consistent with the preservation of the property values within existing residential and nonresidential areas; and (9)   to insure that the increased flexibility of regulations over land development authorized herein is carried out under such administrative standards and procedure as shall encourage the disposition of proposals for land development without undue delay. (b)   The objectives of a traditional neighborhood development are: (1)   to establish a community which is pedestrian-oriented with a number of parks, a centrally located public commons, square, plaza, park or prominent 92. 53 P.S. § 10601 et seq.

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GOVERNMENT REGULATION

Ch. 41

(2)  to minimize traffic congestion and reduce the need for extensive road construction by reducing the number and length of automobile trips required to access everyday needs;

(4)  to provide the elderly and the young with independence of movement by locating most daily activities within walking distance;

(6)  to foster a sense of place and community by providing a setting that encourages the natural intermingling of everyday uses and activities within a recognizable neighborhood;

(8)  to encourage community-oriented initiatives and to support the balanced development of society by providing suitable civic and public buildings and facilities.

(i)   designate a part or parts of the municipality as a district or districts which are reserved exclusively for traditional neighborhood development; or (ii)   permit the creation of a traditional neighborhood development in any part of the municipality or in one or more specified zoning districts.

§ 703-A.  Transferable development rights

Part IX Ch. 68–72 Condos, etc.

Municipalities electing to enact traditional neighborhood development provisions may also incorporate provisions for transferable development rights on a voluntary basis in accordance with express standards and criteria set forth in the ordinance and with the requirements of Article VI.93

Part VIII Ch. 64–67 L/T

(2)  Set forth the procedures pertaining to the application for, hearing on and preliminary and final approval of a traditional neighborhood development which shall be consistent with this article for those applications and hearings.

Part VII Ch. 57–63 Litigation

(1)  Set forth the standards, conditions and regulations for a traditional neighborhood development consistent with this article. A zoning ordinance or amendment may authorize and provide standards, conditions and regulations for traditional neighborhood development that:

Part VI Ch. 49–56 Taxation

The governing body of each municipality may enact, amend and repeal provisions of a zoning ordinance in order to fix standards and conditions for traditional neighborhood development. The provisions for standards and conditions for traditional neighborhood development shall be, except as otherwise provided in this article, consistent with Article VI and shall be included within the zoning ordinance, and the enactment of the traditional neighborhood development provisions shall be in accordance with the procedures required for the enactment of an amendment of a zoning ordinance as provided in Article VI. The provisions shall:

Part V Ch. 41–48A Zoning, etc.

10702-A.   Grant of power

Part IV Ch. 36–40 Insurance

(7)   to integrate age and income groups and foster the bonds of an authentic community by providing a range of housing types, shops and workplaces; and

Part III Ch. 23–35 Mortgages

(5)   to foster the ability of citizens to come to know each other and to watch over their mutual security by providing public spaces such as streets, parks and squares and mixed use which maximizes the proximity to neighbors at almost all times of the day;

Part II Ch. 15–22 Deeds

(3)   to make public transit a viable alternative to the automobile by organizing appropriate building densities;

Part I Ch. 1–14 Brokers

intersection of two or more major streets, commercial enterprises and civic and other public buildings and facilities for social activity, recreation and community functions;

Table of Contents

PART V

93. 53 P.S. § 10601 et seq.

gtb-parealestate22-all.indb 601

Index

601

12/22/21 10:45 AM

§ 704-A

MUNICIPALITIES PLANNING CODE

§ 704-A.  Applicability of comprehensive plan and statement of community development objectives All provisions and all amendments to the provisions adopted pursuant to this article shall be based on and interpreted in relation to the statement of community development objectives of the zoning ordinance and shall be consistent with either the comprehensive plan of the municipality or the statement of community development objectives in accordance with section 606.94 Every application for the approval of a traditional neighborhood development shall be based on and interpreted in relation to the statement of community development objectives and shall be consistent with the comprehensive plan. § 705-A.  Forms of traditional neighborhood development A traditional neighborhood development may be developed and applied in any of the following forms. (1)   As a new development. (2)   As an outgrowth or extension of existing development. (3)  As a form of urban infill where existing uses and structures may be incorporated into the development. (4)   In any combination or variation of the above. § 706-A.  Standards and conditions for traditional neighborhood development (a)   All provisions adopted pursuant to this article shall set forth all the standards, conditions and regulations by which a proposed traditional neighborhood development shall be evaluated, and those standards, conditions and regulations shall be consistent with the following subsections. (b)  The provisions adopted pursuant to this article shall set forth the uses permitted in traditional neighborhood development, which uses may include, but shall not be limited to: (1)  Dwelling units of any dwelling type or configuration or any combination thereof. (2)  Those nonresidential uses deemed to be appropriate for incorporation in the design of the traditional neighborhood development. (c)  The provisions may establish regulations setting forth the timing of development among the various types of dwellings and may specify whether some or all nonresidential uses are to be built before, after or at the same time as the residential uses. (d)   The provisions adopted pursuant to this article shall establish standards governing the density or intensity of land use in a traditional neighborhood development. The standards may vary the density or intensity of land use otherwise applicable to the land under the provisions of a zoning ordinance of the municipality within the traditional neighborhood development. It is recommended that the provisions adopted by the municipality pursuant to this article include, but not be limited to, all of the following: (1)   The amount, location and proposed use of common open space, providing for parks to be distributed throughout the neighborhood as well as the establishment of a centrally located public commons, square, park, plaza or prominent intersection of two or more major streets. (2)  The location and physical characteristics of the site of the proposed traditional neighborhood development, providing for the retaining and enhancing, where practicable, of natural features such as wetlands, ponds, lakes, waterways, trees of high quality, significant tree stands and other significant

94. 53 P.S. § 10606.

602

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GOVERNMENT REGULATION

Ch. 41

(4)  The location, design, type and use of structures proposed, with most structures being placed close to the street at generally the equivalent of onequarter the width of the lot or less. The distance between the sidewalk and residential dwellings should, as a general rule, be occupied by a semipublic attachment such as a porch or, at a minimum, a covered entryway.

Part III Ch. 23–35 Mortgages

gtb-parealestate22-all.indb 603

Index

603

Part IX Ch. 68–72 Condos, etc.

(e)  In the case of a traditional neighborhood development proposed to be developed over a period of years, standards established in provisions adopted

Part VIII Ch. 64–67 L/T

(9)  The greatest density of housing and the preponderance of office and commercial uses should be located to anchor the traditional neighborhood development. If the neighborhood is adjacent to existing development or a major roadway then office, commercial and denser residential uses may be located at either the edge or the center, or both. Commercial uses located at the edge of the traditional neighborhood development may be located adjacent to similar commercial uses in order to form a greater commercial corridor.

Part VII Ch. 57–63 Litigation

(8)  The site plan to provide for either a natural or man-made corridor to serve as the edge of the neighborhood. When standing alone, the traditional neighborhood development should front on open space to serve as its edge. Such open space may include, but is not limited to, parks, a golf course, cemetery, farmland or natural settings such as woodlands or waterways. When adjacent to existing development, the traditional neighborhood development should either front on open space, a street or roadway or any combination hereof.

Part VI Ch. 49–56 Taxation

(7)   The minimum and maximum areas and dimensions of the properties and common open space within the proposed traditional neighborhood development and the approximate distance from the center to the edge of the traditional neighborhood development. It is recommended that the distance from the center to the edge of the traditional neighborhood development be approximately one-quarter mile or less and not more than one-half mile. Traditional neighborhood developments in excess of one-half mile distance from center to edge should be divided into two or more developments.

Part V Ch. 41–48A Zoning, etc.

(6)   The location for vehicular parking with the street plan providing for onstreet parking for most streets, with the exception of alleys. All parking lots, except where there is a compelling reason to the contrary, should be located either behind or to the side of buildings and in most cases should be located toward the center of blocks such that only their access is visible from adjacent streets. In most cases, structures located on lots smaller than 50 feet in width should be served by a rear alley with all garages fronting on alleys. Garages not served by an alley should be set back from the front of the house or rotated so that the garage doors do not face any adjacent streets.

Part IV Ch. 36–40 Insurance

(5)   The location, design, type and use of streets, alleys, sidewalks and other public rights-of-way with a hierarchy of streets laid out with an interconnected network of streets and blocks that provide multiple routes from origins to destinations and are appropriately designed to serve the needs of pedestrians and vehicles equally. As such, most streets, except alleys, should have sidewalks.

Part II Ch. 15–22 Deeds

(3)   The location and physical characteristics of the site of the proposed traditional neighborhood development so that it will develop out of the location of squares, parks and other neighborhood centers and subcenters. Zoning changes in building type should generally occur at mid-block rather than mid-street, and buildings should tend to be zoned by compatibility of building type rather than building use. The proposed traditional neighborhood development should be designed to work with the topography of the site to minimize the amount of grading necessary to achieve a street network, and some significant high points of the site should be set aside for public tracts for the location of public buildings or other public facilities.

Part I Ch. 1–14 Brokers

natural features. These significant natural features should be at least partially fronted by public tracts whenever possible.

Table of Contents

PART V

12/22/21 10:45 AM

§ 707-A

MUNICIPALITIES PLANNING CODE

pursuant to this article may, to encourage the flexibility of housing density, design and type intended by this article: (1)   Permit a variation in each section to be developed from the density or intensity of use established for the entire traditional neighborhood development. (2)  Allow for a greater concentration of density or intensity of land use within some section or sections of development, whether it be earlier or later in the development than upon others. (3)  Require that the approval of such greater concentration of density or intensity of land use for any section to be developed be offset by a smaller concentration in any completed prior stage or by an appropriate reservation of common open space on the remaining land by a grant of easement or by covenant in favor of the municipality, provided that the reservation shall as far as practicable defer the precise location of such common open space until an application for final approval is filed so that flexibility of development which is a prime objective of this article can be maintained. (f)   Provisions adopted pursuant to this article may require that a traditional neighborhood development contain a minimum number of dwelling units and a minimum number of nonresidential units. (g)(1)   The authority granted a municipality by Article V to establish standards for the location, width, course and surfacing of streets, walkways, curbs, gutters, street lights, shade trees, water, sewage and drainage facilities, easements or rights-of-way for drainage and utilities, reservations of public grounds, other improvements, regulations for the height and setback as they relate to renewable energy systems and energy-conserving building design, regulations for the height and location of vegetation with respect to boundary lines, as they relate to renewable energy systems and energy-conserving building design, regulations for the type and location of renewable energy systems or their components and regulations for the design and construction of structures to encourage the use of renewable energy systems, shall be vested in the governing body or the planning agency for the purposes of this article. (2)  The standards applicable to a particular traditional neighborhood development may be different than or modifications of the standards and requirements otherwise required of subdivisions or land development authorized under an ordinance adopted pursuant to Article V, provided, however, that provisions adopted pursuant to this article shall set forth the limits and extent of any modifications or changes in such standards and requirements in order that a landowner shall know the limits and extent of permissible modifications from the standards otherwise applicable to subdivisions or land development. § 707-A.  Sketch Plan Presentation The municipality may informally meet with a landowner to informally discuss the conceptual aspects of the landowner’s development plan prior to the filing of the application for preliminary approval for the development plan. The landowner may present a sketch plan to the municipality for discussion purposes only, and during the discussion the municipality may make suggestions and recommendations on the design of the developmental plan which shall not be binding on the municipality. § 10708-A.   Manual of written and graphic design guidelines Where it has adopted provisions for traditional neighborhood development, the governing body of a municipality may provide, upon review and recommendation of the planning commission where one exists, a manual of written and graphic design guidelines. The manual may be included in or amended into the subdivision and land development ordinance, the zoning ordinance or both.

604

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GOVERNMENT REGULATION

Ch. 41

Part V Ch. 41–48A Zoning, etc.

§§ 801, 802.  Repealed. 1972, June 2, P.L. 333, No. 93, § 13 §§ 801, 802.  Repealed. 1972, June 2, P.L. 333, No. 93, § 13

Joint Municipal Zoning

Index

gtb-parealestate22-all.indb 605

Part IX Ch. 68–72 Condos, etc.

605

Part VIII Ch. 64–67 L/T

§ 802-A.  Relation to county and municipal zoning The enactment by any municipality of a joint municipal zoning ordinance whose land is subject to county or municipal zoning shall constitute an immediate repeal

Part VII Ch. 57–63 Litigation

§ 801-A.  General powers (a)   For the purpose of permitting municipalities which cooperatively plan for their future to also regulate future growth and change in a cooperative manner, the governing body of each municipality, in accordance with the conditions and procedures set forth in this act, may cooperate with one or more municipalities to enact, amend and repeal joint municipal zoning ordinances in order to implement joint municipal comprehensive plans and to accomplish any of the purposes of this act. (b)   A joint municipal zoning ordinance shall be based upon an adopted joint municipal comprehensive plan and shall be prepared by a joint municipal planning commission established under the provisions of this act.

Part VI Ch. 49–56 Taxation

ARTICLE VIII-A

95. 3 P.S. § 901 et seq. 96. 3 P.S. § 951 et seq. 97. 3 P.S. § 901 et seq.

Part IV Ch. 36–40 Insurance

Zoning Challenges; General Provisions (Repealed)

Part III Ch. 23–35 Mortgages

ARTICLE VIII

Part II Ch. 15–22 Deeds

§ 709-A.  Applicability of article to agriculture Zoning ordinances shall encourage the continuity, development and viability of agricultural operations. Zoning ordinances may not restrict agricultural operations or changes to or expansions of agricultural operations in geographic areas where agriculture has traditionally been present unless the agricultural operation will have a direct adverse effect on the public health and safety. Nothing in this section shall require a municipality to adopt a zoning ordinance that violates or exceeds the provisions of the act of June 30, 1981 (P.L. 128, No. 43), known as the “Agricultural Area Security Law,”95 the act of June 10, 1982 (P.L. 454, No. 133), entitled “An act protecting agricultural operations from nuisance suits and ordinances under certain circumstances,”96 and the act of May 20, 1993 (P.L. 12, No. 6), known as the “Nutrient Management Act.”97

Part I Ch. 1–14 Brokers

§ 708.1-A.  Subdivision and land development ordinance provisions applicable to traditional neighborhood development The municipality may enact subdivision and land development ordinance provisions applicable to a traditional neighborhood development to address the design standards that are appropriate to a traditional neighborhood development, including, but not limited to, compactness, pedestrian orientation, street geometry or other related design features. The provisions may be included as part of any ordinance pertaining to traditional neighborhood development and may be subject to modification similar to section 512.1.

Table of Contents

PART V

12/22/21 10:45 AM

§ 803-A

MUNICIPALITIES PLANNING CODE

of the county or municipal zoning ordinance within the municipality adopting such ordinance as of the effective date of the joint municipal zoning ordinance. § 803-A.  Ordinance provisions Joint municipal zoning ordinances may permit, prohibit, regulate, restrict and determine and may contain the same elements as authorized for municipal zoning ordinances by section 603.98 § 804-A.  Zoning purposes The provisions of joint municipal zoning ordinances shall be designed to serve the same purposes for the area of its jurisdiction as is required by section 60499 for municipal zoning ordinances. § 805-A.  Classifications The authorizations and requirements of section 605100 shall be applicable to joint municipal zoning ordinances. No area of a municipality party to a joint municipal zoning ordinance shall be left unzoned. § 806-A.  Statement of community development objectives (a)   Every joint municipal zoning ordinance shall contain a statement of community development objectives as defined by section 606.101 (b)   The statement of community development objectives shall be based upon the joint municipal comprehensive plan and may be supplemented by a statement of legislative findings of the governing bodies party to the joint municipal zoning ordinance as defined by section 606. (c)  The community development objectives for a joint municipal zoning ordinance shall relate to the area within the jurisdiction of the ordinance, shall identify the community development objectives of each municipality party to the joint municipal zoning ordinance and the relationship of these objectives to those of the area and shall, in addition, include the basis for the geographic delineation of the area which the ordinance regulates. § 807-A.  Preparation of proposed zoning ordinance The requirements of section 607102 as applicable to municipal zoning ordinances shall equally apply to the preparation of a joint municipal zoning ordinance except that: (1)   The joint municipal planning commission shall assume the preparation responsibilities of the planning agency and shall be directed by the governing bodies of the participating municipalities. (2)   At least one public meeting shall be held by the joint municipal planning commission within the area of jurisdiction of the proposed joint municipal zoning ordinance. § 808-A.  Enactment of zoning ordinance (a)   The procedural requirements of section 608103 shall be applicable to the enactment of a joint municipal zoning ordinance. (b)   Each municipality party to a joint municipal zoning ordinance shall enact the ordinance and it shall not become effective until it has been properly enacted by all the participating municipalities.

98. 53 P.S. § 10603. 99. 53 P.S. § 10604. 100. 53 P.S. § 10605. 101. 53 P.S. § 10606. 102. 53 P.S. § 10607. 103. 53 P.S. § 10608.

606

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GOVERNMENT REGULATION

Ch. 41

Part IV Ch. 36–40 Insurance Part V Ch. 41–48A Zoning, etc. Part VI Ch. 49–56 Taxation Part VII Ch. 57–63 Litigation Part VIII Ch. 64–67 L/T Part IX Ch. 68–72 Condos, etc. Index

gtb-parealestate22-all.indb 607

Part III Ch. 23–35 Mortgages

607

Part II Ch. 15–22 Deeds

104. 53 P.S. § 10609. 105. 53 P.S. § 10609.1. 106. 53 P.S. § 10609.2.

Part I Ch. 1–14 Brokers

(c)  No municipality may withdraw from or repeal a joint municipal zoning ordinance during the first three years following the date of its enactment. If, at any time after the end of the second year following the enactment of a joint municipal zoning ordinance, a municipality wishes to repeal and withdraw from a joint municipal zoning ordinance, it shall enact an ordinance, which shall be effective no sooner than one year after its enactment, repealing the joint municipal zoning ordinance and shall provide immediately and concurrently one year’s advanced written notice of its repeal and withdrawal to the governing bodies of all municipalities party to the joint municipal zoning ordinance. The repeal and withdrawal may become effective within less than one year with the unanimous approval, by ordinance, of the governing bodies of all municipalities party to the joint municipal zoning ordinance. § 809-A.  Enactment of zoning ordinance amendments (a)  The procedural requirements for amendments to a joint municipal zoning ordinance shall be as required by section 609,104 except that all proposed amendments shall also be submitted to the joint municipal planning commission for review at least 30 days prior to the hearing on such proposed amendments. (b)   The governing bodies of the other participating municipalities shall submit their comments, including a specific recommendation to adopt or not to adopt the proposed amendment, to the governing body of the municipality within which the amendment is proposed no later than the date of the public hearing. Failure to provide comments shall be construed as a recommendation to adopt the proposed amendments. (c)   No amendments to the joint municipal zoning ordinance shall be effective unless all of the participating municipalities approve the amendment. § 810-A.  Procedure for curative amendments Curative amendments shall be filed in accordance with the requirements of section 609.1105 with the municipality within which the landowner’s property is located: Provided, however, That the governing body before which the curative amendment is brought shall not have the power to adopt any amendment to the joint municipal zoning ordinance without the approval of the other municipalities participating in the joint municipal zoning ordinance. The challenge shall be directed to the validity of the joint municipal zoning ordinance as it applies to the entire area of its jurisdiction. § 811-A.  Area of jurisdiction for challenges In any challenge to the validity of the joint municipal zoning ordinance, the court shall consider the validity of the ordinance as it applies to the entire area of its jurisdiction as enacted and shall not limit consideration to any single constituent municipality. § 812-A.  Procedure for joint municipal curative amendments (a)   The governing bodies of all the participating municipalities may declare the joint municipal zoning ordinance or portions thereof substantially invalid and prepare a municipal curative amendment pursuant to section 609.2.106 (b)   The provisions of section 609.2(4) shall apply to all municipalities participating in the joint municipal zoning ordinance. (c)(1)  In the case of a joint municipal curative amendment involving two or three municipalities, the municipalities shall have nine months from the date of declaration of partial or total invalidity to enact a curative amendment.

Table of Contents

PART V

12/22/21 10:45 AM

§ 813-A

MUNICIPALITIES PLANNING CODE

(2)   Subject to the limitation contained in clause (3), where there are more than three municipality parties, the nine-month period shall be extended one additional month for each municipality in excess of three that is a party to the joint municipal zoning ordinance. (3)  Notwithstanding the additional periods provided for in clause (2), a curative amendment shall be enacted by the parties to a joint municipal zoning ordinance not later than one year from the date of declaration of partial or total invalidity. § 813-A.  Publication, advertisement and availability of ordinances The content of public notices and the procedures for the advertisement and enactment of joint municipal zoning ordinances and amendments shall be regulated by section 610.107 § 814-A.  Registration of nonconforming uses The registration of nonconforming uses shall be as specified by section 613.108 § 815-A.  Administration (a)   The governing bodies of the municipalities adopting the joint municipal zoning ordinance may establish a joint zoning hearing board pursuant to the authority of section 904,109 except that: (1)  The joint municipal zoning ordinance shall either create a joint zoning hearing board to administer the entire joint municipal zoning ordinance or provide for the retention or creation of individual zoning hearing boards in each of the individual participating municipalities to administer the new joint municipal zoning ordinance as to properties located within each of the individual participating municipalities. (2)   These same procedures shall be followed by a joint zoning hearing board as set forth in Article IX110 for individual municipal zoning hearing boards. (b)   The joint municipal zoning ordinance shall specify the number of zoning officers to be appointed to administer the ordinance pursuant to section 614.111 One zoning officer may be appointed by each municipality to administer the ordinance within the municipal boundaries or a single zoning officer may be appointed to administer the ordinance throughout the jurisdiction of the ordinance. § 816-A.  Zoning appeals All rights and procedures provided in Articles IX and X-A112 shall pertain to joint municipal zoning. § 817-A.  Enforcement penalties Penalties for violation of a joint municipal zoning ordinance shall be as specified in section 617.1.113 § 818-A.  Enforcement remedies (a)   Enforcement remedies shall be as specified in section 617.114 (b)   In addition, the provisions of a joint municipal zoning ordinance shall be binding upon the municipalities and may be enforced by appropriate remedy by any one or more of the municipalities against any other municipality party thereto. 107. 108. 109. 110. 111. 112. 113. 114.

53 53 53 53 53 53 53 53

P.S. P.S. P.S. P.S. P.S. P.S. P.S. P.S.

§ § § § § § § §

10610. 10613. 10904. 10901 et seq. 10614. 10901 et seq.; 53 P.S. § 11001-A et seq. 10617.1. 10617.

608

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GOVERNMENT REGULATION

Ch. 41

gtb-parealestate22-all.indb 609

Index

609

Part IX Ch. 68–72 Condos, etc.

10617.2. 10619. 11101-A et seq. (repealed). 10906.

Part VIII Ch. 64–67 L/T

§ § § §

Part VII Ch. 57–63 Litigation

P.S. P.S. P.S. P.S.

Part VI Ch. 49–56 Taxation

53 53 53 53

Part V Ch. 41–48A Zoning, etc.

115. 116. 117. 118.

Part IV Ch. 36–40 Insurance

§ 901.  General provisions Every municipality which has enacted or enacts a zoning ordinance pursuant to this act or prior enabling laws, shall create a zoning hearing board. As used in this article, unless the context clearly indicates otherwise, the term “board” shall refer to such zoning hearing board. § 902.  Repealed. 1988, Dec. 21, P.L. 1329, No. 170, § 79, effective in 60 days. § 903.  Membership of board (a)   The membership of the board shall, upon the determination of the governing body, consist of either three or five residents of the municipality appointed by resolution by the governing body. The terms of office of a three member board shall be three years and shall be so fixed that the term of office of one member shall expire each year. The terms of office of a five member board shall be five years and shall be so fixed that the term of office of one member of a five member board shall expire each year. If a three member board is changed to a five member board, the members of the existing three member board shall continue in office until their term of office would expire under prior law.The governing body shall appoint two additional members to the board with terms scheduled to expire in accordance with the provisions of this section. The board shall promptly notify the governing body of any vacancies which occur. Appointments to fill vacancies shall be only for the unexpired portion of the term. Members of the board shall hold no other elected or appointed office in the municipality, nor shall any member be an employee of the municipality. (b)   The governing body may appoint by resolution at least one but no more than three residents of the municipality to serve as alternate members of the board. The term of office of an alternate member shall be three years. When seated pursuant to the provisions of section 906,118 an alternate shall be entitled to participate in all proceedings and discussions of the board to the same and

Part III Ch. 23–35 Mortgages

Zoning Hearing Board and Other Administrative Proceedings

Part II Ch. 15–22 Deeds

ARTICLE IX

Part I Ch. 1–14 Brokers

§ 819-A.  Finances (a)   The governing body of a municipality may appropriate and receive funds for a joint municipal zoning ordinance in the same manner as authorized for a municipal zoning ordinance by section 617.2.115 (b)   A joint municipal zoning ordinance shall specify the manner and extent of financing the costs for administration and enforcement, including the financial responsibilities for defending legal challenges to the ordinance. § 820-A.  Exemptions The exemptions for a joint municipal zoning ordinance shall be those identified by section 619.116 § 821-A.  Existing bodies Municipalities which, on or before the effective date of this amendatory act, established joint bodies under former Article XI-A117 of this act, shall have five years from the effective date of this amendatory act to comply with the provisions of this article.

Table of Contents

PART V

12/22/21 10:45 AM

§ 904

MUNICIPALITIES PLANNING CODE

full extent as provided by law for board members, including specifically the right to cast a vote as a voting member during the proceedings, and shall have all the powers and duties set forth in this act and as otherwise provided by law. Alternates shall hold no other elected or appointed office in the municipality, including service as a member of the planning commission or as a zoning officer, nor shall any alternate be an employee of the municipality. Any alternate may participate in any proceeding or discussion of the board but shall not be entitled to vote as a member of the board nor be compensated pursuant to section 907119 unless designated as a voting alternate member pursuant to section 906. § 904.  Joint zoning hearing boards (a)   Two or more municipalities may, by ordinances enacted in each, create a joint zoning hearing board in lieu of a separate board for each municipality. A joint board shall consist of two members appointed from among the residents of each municipality by its governing body. (b)   The term of office of members of joint boards shall be five years, except that of the two members first appointed from each municipality, the term of office of one member shall be three years. When any vacancies occur, the joint board shall promptly notify the governing body which appointed the member whose office has become vacant, and such governing body shall appoint a member for the unexpired portion of the term. Members of the joint board shall hold no other office in the participating municipality. (c)   Where legal counsel is desired, an attorney, other than the solicitors of the participating municipalities, may be appointed to serve as counsel to the joint zoning hearing board. (d)   In all other respects, including the appointment and seating of alternate members, joint zoning hearing boards shall be governed by provisions of this act not inconsistent with the provisions of this section. § 905.  Removal of members Any board member may be removed for malfeasance, misfeasance or nonfeasance in office or for other just cause by a majority vote of the governing body which appointed the member, taken after the member has received 15 days’ advance notice of the intent to take such a vote. A hearing shall be held in connection with the vote if the member shall request it in writing. § 906.  Organization of board (a)   The board shall elect from its own membership its officers, who shall serve annual terms as such and may succeed themselves. For the conduct of any hearing and the taking of any action, a quorum shall be not less than a majority of all the members of the board, but the board may appoint a hearing officer from its own membership to conduct any hearing on its behalf and the parties may waive further action by the board as provided in section 908.120 (b)   The chairman of the board may designate alternate members of the board to replace any absent or disqualified member, and if, by reason of absence or disqualification of a member, a quorum is not reached, the chairman of the board shall designate as many alternate members of the board to sit on the board as may be needed to reach a quorum. Any alternate member of the board shall continue to serve on the board in all proceedings involving the matter or case for which the alternate was initially appointed until the board has made a final decision on the matter or case. Designation of an alternate pursuant to this section shall be made on a case-by-case basis in rotation according to declining seniority among all alternates. 119. 53 P.S. § 10907. 120. 53 P.S. § 10908.

610

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GOVERNMENT REGULATION

Ch. 41

Part I Ch. 1–14 Brokers Part II Ch. 15–22 Deeds Part III Ch. 23–35 Mortgages Part IV Ch. 36–40 Insurance Part V Ch. 41–48A Zoning, etc. Part VI Ch. 49–56 Taxation Part VII Ch. 57–63 Litigation Part VIII Ch. 64–67 L/T Part IX Ch. 68–72 Condos, etc.

(c)   The board may make, alter and rescind rules and forms for its procedure, consistent with ordinances of the municipality and laws of the Commonwealth. The board shall keep full public records of its business, which records shall be the property of the municipality, and shall submit a report of its activities to the governing body as requested by the governing body. § 907.  Expenditures for services Within the limits of funds appropriated by the governing body, the board may employ or contract for secretaries, clerks, legal counsel, consultants and other technical and clerical services. Members of the board may receive compensation for the performance of their duties, as may be fixed by the governing body, but in no case shall it exceed the rate of compensation authorized to be paid to the members of the governing body. Alternate members of the board may receive compensation, as may be fixed by the governing body, for the performance of their duties when designated as alternate members pursuant to section 906,121 but in no case shall such compensation exceed the rate of compensation authorized to be paid to the members of the governing body. § 908.  Hearings The board shall conduct hearings and make decisions in accordance with the following requirements: (1)  Public notice shall be given and written notice shall be given to the applicant, the zoning officer, such other persons as the governing body shall designate by ordinance and to any person who has made timely request for the same. Written notices shall be given at such time and in such manner as shall be prescribed by ordinance or, in the absence of ordinance provision, by rules of the board. In addition to the written notice provided herein, written notice of said hearing shall be conspicuously posted on the affected tract of land at least one week prior to the hearing. (1.1)  The governing body may prescribe reasonable fees with respect to hearings before the zoning hearing board. Fees for said hearings may include compensation for the secretary and members of the zoning hearing board, notice and advertising costs and necessary administrative overhead connected with the hearing. The costs, however, shall not include legal expenses of the zoning hearing board, expenses for engineering, architectural or other technical consultants or expert witness costs. (1.2)  The first hearing before the board or hearing officer shall be commenced within 60 days from the date of receipt of the applicant’s application, unless the applicant has agreed in writing to an extension of time. Each subsequent hearing before the board or hearing officer shall be held within 45 days of the prior hearing, unless otherwise agreed to by the applicant in writing or on the record. An applicant shall complete the presentation of his case-in-chief within 100 days of the first hearing. Upon the request of the applicant, the board or hearing officer shall assure that the applicant receives at least seven hours of hearings within the 100 days, including the first hearing. Persons opposed to the application shall complete the presentation of their opposition to the application within 100 days of the first hearing held after the completion of the applicant’s case-in-chief. An applicant may, upon request, be granted additional hearings to complete his case-in-chief provided the persons opposed to the application are granted an equal number of additional hearings. Persons opposed to the application may, upon the written consent or consent on the record by the applicant and municipality, be granted additional hearings to complete their opposition to the application provided the applicant is granted an equal number of additional hearings for rebuttal.

Table of Contents

PART V

121. 53 P.S. § 10906.

gtb-parealestate22-all.indb 611

Index

611

12/22/21 10:45 AM

§ 908

MUNICIPALITIES PLANNING CODE

(2)   The hearings shall be conducted by the board or the board may appoint any member or an independent attorney as a hearing officer. The decision, or, where no decision is called for, the findings shall be made by the board; however, the appellant or the applicant, as the case may be, in addition to the ­municipality, may, prior to the decision of the hearing, waive decision or findings by the board and accept the decision or findings of the hearing officer as final. (3)   The parties to the hearing shall be the municipality, any person affected by the application who has made timely appearance of record before the board, and any other person including civic or community organizations permitted to appear by the board. The board shall have power to require that all persons who wish to be considered parties enter appearances in writing on forms provided by the board for that purpose. (4)  The chairman or acting chairman of the board or the hearing officer presiding shall have power to administer oaths and issue subpoenas to compel the attendance of witnesses and the production of relevant documents and papers, including witnesses and documents requested by the parties. (5)   The parties shall have the right to be represented by counsel and shall be afforded the opportunity to respond and present evidence and argument and cross-examine adverse witnesses on all relevant issues. (6)   Formal rules of evidence shall not apply, but irrelevant, immaterial, or unduly repetitious evidence may be excluded. (7)  The board or the hearing officer, as the case may be, shall keep a stenographic record of the proceedings. The appearance fee for a stenographer shall be shared equally by the applicant and the board. The cost of the original transcript shall be paid by the board if the transcript is ordered by the board or hearing officer or shall be paid by the person appealing from the decision of the board if such appeal is made, and in either event the cost of additional copies shall be paid by the person requesting such copy or copies. In other cases the party requesting the original transcript shall bear the cost thereof. (8)  The board or the hearing officer shall not communicate, directly or indirectly, with any party or his representatives in connection with any issue involved except upon notice and opportunity for all parties to participate, shall not take notice of any communication, reports, staff memoranda, or other materials, except advice from their solicitor, unless the parties are afforded an opportunity to contest the material so noticed and shall not inspect the site or its surroundings after the commencement of hearings with any party or his representative unless all parties are given an opportunity to be present. (9)  The board or the hearing officer, as the case may be, shall render a written decision or, when no decision is called for, make written findings on the application within 45 days after the last hearing before the board or hearing officer. Where the application is contested or denied, each decision shall be accompanied by findings of fact and conclusions based thereon together with the reasons therefor. Conclusions based on any provisions of this act or of any ordinance, rule or regulation shall contain a reference to the provision relied on and the reasons why the conclusion is deemed appropriate in the light of the facts found. If the hearing is conducted by a hearing officer and there has been no stipulation that his decision or findings are final, the board shall make his report and recommendations available to the parties within 45 days and the parties shall be entitled to make written representations thereon to the board prior to final decision or entry of findings, and the board’s decision shall be entered no later than 30 days after the report of the hearing officer. Except

612

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GOVERNMENT REGULATION

Ch. 41

Part IV Ch. 36–40 Insurance Part V Ch. 41–48A Zoning, etc. Part VI Ch. 49–56 Taxation Part VII Ch. 57–63 Litigation Part VIII Ch. 64–67 L/T Part IX Ch. 68–72 Condos, etc. Index

gtb-parealestate22-all.indb 613

Part III Ch. 23–35 Mortgages

613

Part II Ch. 15–22 Deeds

122. 53 P.S. § 10916.1. 123. 53 P.S. § 11001-A et seq.

Part I Ch. 1–14 Brokers

for challenges filed under section 916.1122 where the board fails to render the decision within the period required by this subsection or fails to commence, conduct or complete the required hearing as provided in subsection (1.2), the decision shall be deemed to have been rendered in favor of the applicant unless the applicant has agreed in writing or on the record to an extension of time. When a decision has been rendered in favor of the applicant because of the failure of the board to meet or render a decision as hereinabove provided, the board shall give public notice of said decision within ten days from the last day it could have met to render a decision in the same manner as provided in subsection (1) of this section. If the board shall fail to provide such notice, the applicant may do so. Nothing in this subsection shall prejudice the right of any party opposing the application to appeal the decision to a court of competent jurisdiction. (10)   A copy of the final decision or, where no decision is called for, of the findings shall be delivered to the applicant personally or mailed to him not later than the day following its date. To all other persons who have filed their name and address with the board not later than the last day of the hearing, the board shall provide by mail or otherwise, brief notice of the decision or findings and a statement of the place at which the full decision or findings may be examined. § 908.1.  Mediation option (a)   Parties to proceedings authorized in this article and Article X-A123 may utilize mediation as an aid in completing such proceedings. In proceedings before the zoning hearing board, in no case shall the zoning hearing board initiate mediation or participate as a mediating party. Mediation shall supplement, not replace, those procedures in this article and Article X-A once they have been formally initiated. Nothing in this section shall be interpreted as expanding or limiting municipal police powers or as modifying any principles of substantive law. (b)   Participation in mediation shall be wholly voluntary. The appropriateness of mediation shall be determined by the particulars of each case and the willingness of the parties to negotiate. Any municipality offering the mediation option shall assure that, in each case, the mediating parties, assisted by the mediator as appropriate, develop terms and conditions for: (1)  Funding mediation. (2)   Selecting a mediator who, at a minimum, shall have a working knowledge of municipal zoning and subdivision procedures and demonstrated skills in mediation. (3)   Completing mediation, including time limits for such completion. (4)   Suspending time limits otherwise authorized in this act, provided there is written consent by the mediating parties, and by an applicant or municipal decisionmaking body if either is not a party to the mediation. (5)   Identifying all parties and affording them the opportunity to participate. (6)   Subject to legal restraints, determining whether some or all of the mediation sessions shall be open or closed to the public. (7)   Assuring that mediated solutions are in writing and signed by the parties, and become subject to review and approval by the appropriate decisionmaking body pursuant to the authorized procedures set forth in the other sections of this act.

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(c)   No offers or statements made in the mediation sessions, excluding the final written mediated agreement, shall be admissible as evidence in any subsequent judicial or administrative proceedings. § 909.  Repealed. 1988, Dec. 21, P.L. 1329, No. 170, § 86, effective in 60 days § 909.1.  Jurisdiction (a)  The zoning hearing board shall have exclusive jurisdiction to hear and render final adjudications in the following matters: (1)  Substantive challenges to the validity of any land use ordinance, except those brought before the governing body pursuant to sections 609.1 and 916.1(a)(2).124 (2)   Deleted by 2008, July 4, P.L. 319, No. 39, § 3, imd. effective. (3)   Appeals from the determination of the zoning officer, including, but not limited to, the granting or denial of any permit, or failure to act on the application therefor, the issuance of any cease and desist order or the registration or refusal to register any nonconforming use, structure or lot. (4)  Appeals from a determination by a municipal engineer or the zoning officer with reference to the administration of any flood plain or flood hazard ordinance or such provisions within a land use ordinance. (5)   Applications for variances from the terms of the zoning ordinance and flood hazard ordinance or such provisions within a land use ordinance, pursuant to section 910.2.125 (6)   Applications for special exceptions under the zoning ordinance or flood plain or flood hazard ordinance or such provisions within a land use ordinance, pursuant to section 912.1.126 (7)   Appeals from the determination of any officer or agency charged with the administration of any transfers of development rights or performance density provisions of the zoning ordinance. (8)   Appeals from the zoning officer’s determination under section 916.2.127 (9)   Appeals from the determination of the zoning officer or municipal engineer in the administration of any land use ordinance or provision thereof with reference to sedimentation and erosion control and storm water management insofar as the same relate to development not involving Article V or VII128 applications. (b)   The governing body or, except as to clauses (3), (4) and (5), the planning agency, if designated, shall have exclusive jurisdiction to hear and render final adjudications in the following matters: (1)   All applications for approvals of planned residential developments under Article VII pursuant to the provisions of section 702.129 (2)   All applications pursuant to section 508 for approval of subdivisions or land developments under Article V.130 Any provision in a subdivision and land development ordinance requiring that final action concerning subdivision and

124. 125. 126. 127. 128. 129. 130.

53 53 53 53 53 53 53

P.S. P.S. P.S. P.S. P.S. P.S. P.S.

§§ 10609.1, 10916.1(a)(2). § 10910.2. § 10912.1. § 10916.2. § 10501 et seq.; 53 P.S. § 10701 et seq. § 10702. § 10508.

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(3)  Applications for conditional use under the express provisions of the zoning ordinance pursuant to section 603(c)(2).131

(5)   All petitions for amendments to land use ordinances, pursuant to the procedures set forth in section 609.132 Any action on such petitions shall be deemed legislative acts, provided that nothing contained in this clause shall be deemed to enlarge or diminish existing law with reference to appeals to court.

§ 910.1.  Applicability of judicial remedies

§ 910.2.  Zoning hearing board’s functions; variances

53 53 53 53

P.S. P.S. P.S. P.S.

§ § § §

Part IX Ch. 68–72 Condos, etc.

131. 132. 133. 134.

10603(c)(2). 10609. 10405. 10406.

Index

615

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Part VIII Ch. 64–67 L/T

(1)   That there are unique physical circumstances or conditions, including irregularity, narrowness, or shallowness of lot size or shape, or exceptional topographical or other physical conditions peculiar to the particular property and that the unnecessary hardship is due to such conditions and not the circumstances or conditions generally created by the provisions of the zoning ordinance in the neighborhood or district in which the property is located. (2)   That because of such physical circumstances or conditions, there is no possibility that the property can be developed in strict conformity with the

Part VII Ch. 57–63 Litigation

(a)   The board shall hear requests for variances where it is alleged that the provisions of the zoning ordinance inflict unnecessary hardship upon the applicant. The board may by rule prescribe the form of application and may require preliminary application to the zoning officer. The board may grant a variance, provided that all of the following findings are made where relevant in a given case:

Part VI Ch. 49–56 Taxation

Nothing contained in this article shall be construed to deny the appellant the right to proceed directly to court where appropriate, pursuant to the Pennsylvania Rules of Civil Procedure No. 1091 (relating to action in mandamus).

Part V Ch. 41–48A Zoning, etc.

§ 910.  Repealed. 1988, Dec. 21, P.L. 1329, No. 170, § 88, effective in 60 days

Part IV Ch. 36–40 Insurance

(7)  Applications for a special encroachment permit pursuant to section 405133 and applications for a permit pursuant to section 406.134

Part III Ch. 23–35 Mortgages

(6)   Appeals from the determination of the zoning officer or the municipal engineer in the administration of any land use ordinance or provisions thereof with reference to sedimentation and erosion control and storm water management insofar as the same relate to application for land development under Articles V and VII. Where such determination relates only to development not involving an Article V or VII application, the appeal from such determination of the zoning officer or the municipal engineer shall be to the zoning hearing board pursuant to subsection (a)(9). Where the applicable land use ordinance vests jurisdiction for final administration of subdivision and land development applications in the planning agency, all appeals from determinations under this paragraph shall be to the planning agency and all appeals from the decision of the planning agency shall be to court.

Part II Ch. 15–22 Deeds

(4)   Applications for curative amendment to a zoning ordinance pursuant to sections 609.1 and 916.1(a)(2).

Part I Ch. 1–14 Brokers

land development applications be taken by a planning agency rather than the governing body shall vest exclusive jurisdiction in the planning agency in lieu of the governing body for purposes of the provisions of this paragraph.

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§ 911

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provisions of the zoning ordinance and that the authorization of a variance is therefore necessary to enable the reasonable use of the property. (3)   That such unnecessary hardship has not been created by the appellant. (4)   That the variance, if authorized, will not alter the essential character of the neighborhood or district in which the property is located, nor substantially or permanently impair the appropriate use or development of adjacent property, nor be detrimental to the public welfare. (5)   That the variance, if authorized, will represent the minimum variance that will afford relief and will represent the least modification possible of the regulation in issue. (b)   In granting any variance, the board may attach such reasonable conditions and safeguards as it may deem necessary to implement the purposes of this act and the zoning ordinance. § 911.  Repealed. 1972, June 1, P.L. 333, No. 93, § 15 § 912.  Repealed. 1988, Dec. 21, P.L. 1329, No. 170, § 90, effective in 60 days § 912.1.  Zoning hearing board’s functions; special exception Where the governing body, in the zoning ordinance, has stated special exceptions to be granted or denied by the board pursuant to express standards and criteria, the board shall hear and decide requests for such special exceptions in accordance with such standards and criteria. In granting a special exception, the board may attach such reasonable conditions and safeguards, in addition to those expressed in the ordinance, as it may deem necessary to implement the purposes of this act and the zoning ordinance. §§ 913, 913.1.  Repealed. 1988, Dec. 21, P.L. 1329, No. 170, § 92, effective in 60 days §§ 913, 913.1.  Repealed. 1988, Dec. 21, P.L. 1329, No. 170, § 92, effective in 60 days § 913.2.  Governing body’s functions; conditional uses (a)   Where the governing body, in the zoning ordinances, has stated conditional uses to be granted or denied by the governing body pursuant to express standards and criteria, the governing body shall hold hearings on and decide requests for such conditional uses in accordance with such standards and criteria. The hearing shall be conducted by the board or the board may appoint any member or an independent attorney as a hearing officer. The decision or, where no decision is called for, the findings shall be made by the board. However, the appellant or the applicant, as the case may be, in addition to the municipality may, prior to the decision of the hearing, waive decision or findings by the board and accept the decision or findings of the hearing officer as final. In granting a conditional use, the governing body may attach such reasonable conditions and safeguards, in addition to those expressed in the ordinance, as it may deem necessary to implement the purposes of this act in the zoning ordinance. (b)(1)   The governing body shall render a written decision or, when no decision is called for, make written findings on the conditional use application within 45 days after the last hearing before the governing body. Where the application is contested or denied, each decision shall be accompanied by findings of fact or conclusions based thereon, together with any reasons therefor. Conclusions based on any provisions of this act or of any ordinance, rule or regulation shall contain a reference to the provision relied on and the reasons why the conclusion is deemed appropriate in the light of the facts found. (2)   Where the governing body fails to render the decision within the period required by this subsection or fails to commence, conduct or complete the re-

616

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Index

617

Part IX Ch. 68–72 Condos, etc.

10908. 10909.1(a)(1), (2), (3), (4), (7), (8), (9). 10910.2. 10912.1. 10709. 10916.2. 10913.3.

Part VIII Ch. 64–67 L/T

§ § § § § § §

Part VII Ch. 57–63 Litigation

P.S. P.S. P.S. P.S. P.S. P.S. P.S.

Part VI Ch. 49–56 Taxation

53 53 53 53 53 53 53

Part V Ch. 41–48A Zoning, etc.

135. 136. 137. 138. 139. 140. 141.

Part IV Ch. 36–40 Insurance

§ 914.1.  Time limitations (a)   No person shall be allowed to file any proceeding with the board later than 30 days after an application for development, preliminary or final, has been approved by an appropriate municipal officer, agency or body if such proceeding is designed to secure reversal or to limit the approval in any manner unless such person alleges and proves that he had no notice, knowledge, or reason to believe that such approval had been given. If such person has succeeded to his interest after such approval, he shall be bound by the knowledge of his predecessor in interest. The failure of anyone other than the landowner to appeal from an adverse decision on a tentative plan pursuant to section 709139 or from an adverse decision by a zoning officer on a challenge to the validity of an ordinance or map pursuant to section 916.2140 shall preclude an appeal from a final approval except in the case where the final submission substantially deviates from the approved tentative approval. (b)   All appeals from determinations adverse to the landowners shall be filed by the landowner within 30 days after notice of the determination is issued. § 915.  Repealed. 1988, Dec. 21, P.L. 1329, No. 170, § 96, effective in 60 days § 915.1.  Stay of proceedings (a)   Upon filing of any proceeding referred to in section 913.3141 and during its pendency before the board, all land development pursuant to any challenged ordinance, order or approval of the zoning officer or of any agency or body, and all official action thereunder, shall be stayed unless the zoning officer or any other

Part III Ch. 23–35 Mortgages

§ 914.  Repealed. 1988, Dec. 21, P.L. 1329, No. 170, § 94, effective in 60 days

Part II Ch. 15–22 Deeds

§ 913.3.  Parties appellant before the board Appeals under section 909.1(a)(1), (2), (3), (4), (7), (8) and (9)136 may be filed with the board in writing by the landowner affected, any officer or agency of the municipality, or any person aggrieved. Requests for a variance under section 910.2137 and for special exception under section 912.1138 may be filed with the board by any landowner or any tenant with the permission of such landowner.

Part I Ch. 1–14 Brokers

quired hearing as provided in section 908(1.2),135 the decision shall be deemed to have been rendered in favor of the applicant unless the applicant has agreed in writing or on the record to an extension of time. When a decision has been rendered in favor of the applicant because of the failure of the governing body to meet or render a decision as hereinabove provided, the governing body shall give public notice of the decision within ten days from the last day it could have met to render a decision in the same manner as required by the public notice requirements of this act. If the governing body shall fail to provide such notice, the applicant may do so. (3)   Nothing in this subsection shall prejudice the right of any party opposing the application to appeal the decision to a court of competent jurisdiction. A copy of the final decision or, where no decision is called for, of the findings shall be delivered to the applicant personally or mailed to him no later than the day following its date.

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§ 916

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appropriate agency or body certifies to the board facts indicating that such stay would cause imminent peril to life or property, in which case the development or official action shall not be stayed otherwise than by a restraining order, which may be granted by the board or by the court having jurisdiction of zoning appeals, on petition, after notice to the zoning officer or other appropriate agency or body. When an application for development, preliminary or final, has been duly approved and proceedings designed to reverse or limit the approval are filed with the board by persons other than the applicant, the applicant may petition the court having jurisdiction of zoning appeals to order such persons to post bond as a condition to continuing the proceedings before the board. (b)   After the petition is presented, the court shall hold a hearing to determine if the filing of the appeal is frivolous. At the hearing, evidence may be presented on the merits of the case. It shall be the burden of the applicant for a bond to prove the appeal is frivolous. After consideration of all evidence presented, if the court determines that the appeal is frivolous, it shall grant the petition for a bond. The right to petition the court to order the appellants to post bond may be waived by the appellee, but such waiver may be revoked by him if an appeal is taken from a final decision of the court. (c)  The question whether or not such petition should be granted and the amount of the bond shall be within the sound discretion of the court. An order denying a petition for bond shall be interlocutory. An order directing the responding party to post a bond shall be interlocutory. (d)   If an appeal is taken by a respondent to the petition for a bond from an order of the court dismissing a zoning appeal for refusal to post a bond and the appellate court sustains the order of the court below to post a bond, the respondent to the petition for a bond, upon motion of the petitioner and after hearing in the court having jurisdiction of zoning appeals, shall be liable for all reasonable costs, expenses and attorney fees incurred by the petitioner. § 916.  Repealed. 1988, Dec. 21, P.L. 1329, No. 170, § 98, effective in 60 days § 916.1.  Validity of ordinance; substantive questions (a)   A landowner who, on substantive grounds, desires to challenge the validity of an ordinance or map or any provision thereof which prohibits or restricts the use or development of land in which he has an interest shall submit the challenge either: (1)   to the zoning hearing board under section 909.1(a);142 or (2)   to the governing body under section 909.1(b)(4), together with a request for a curative amendment under section 609.1.143 (b)   Persons aggrieved by a use or development permitted on the land of another by an ordinance or map, or any provision thereof, who desires to challenge its validity on substantive grounds shall first submit their challenge to the zoning hearing board for a decision thereon under section 909.1(a)(1). (c)   The submissions referred to in subsections (a) and (b) shall be governed by the following: (1)  In challenges before the zoning hearing board, the challenging party shall make a written request to the board that it hold a hearing on its challenge. The request shall contain the reasons for the challenge. Where the landowner desires to challenge the validity of such ordinance and elects to proceed by curative amendment under section 609.1, his application to the governing body shall contain, in addition to the requirements of the written request hereof, the

142. 53 P.S. § 10909.1(a). 143. 53 P.S. § 10609.1.

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(4)   The governing body may retain an independent attorney to present the defense of the challenged ordinance or map on its behalf and to present their witnesses on its behalf.

Part VI Ch. 49–56 Taxation Part VII Ch. 57–63 Litigation Part VIII Ch. 64–67 L/T Part IX Ch. 68–72 Condos, etc. Index

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Part V Ch. 41–48A Zoning, etc.

619

Part IV Ch. 36–40 Insurance

(5)   Based upon the testimony presented at the hearing or hearings, the governing body or the zoning board, as the case may be, shall determine whether the challenged ordinance or map is defective, as alleged by the landowner. If a challenge heard by a governing body is found to have merit, the governing body shall proceed as provided in section 609.1. If a challenge heard by a zoning hearing board is found to have merit, the decision of the zoning hearing board shall include recommended amendments to the challenged ordinance which will cure the defects found. In reaching its decision, the zoning hearing board shall consider the amendments, plans and explanatory material submitted by the landowner and shall also consider: (i)   the impact of the proposal upon roads, sewer facilities, water supplies, schools and other public service facilities; (ii)  if the proposal is for a residential use, the impact of the proposal upon regional housing needs and the effectiveness of the proposal in providing housing units of a type actually available to and affordable by classes of persons otherwise unlawfully excluded by the challenged provisions of the ordinance or map; (iii)   the suitability of the site for the intensity of use proposed by the site’s soils, slopes, woodlands, wetlands, flood plains, aquifers, natural resources and other natural features; (iv)   the impact of the proposed use on the site’s soils, slopes, woodlands, wetlands, flood plains, natural resources and natural features, the degree to which these are protected or destroyed, the tolerance of the resources to development and any adverse environmental impacts; and (v)   the impact of the proposal on the preservation of agriculture and other land uses which are essential to public health and welfare. (6)  The governing body or the zoning hearing board, as the case may be, shall render its decision within 45 days after the conclusion of the last hearing. (7)   If the governing body or the zoning board, as the case may be, fails to act on the landowner’s request within the time limits referred to in paragraph (6), a denial of the request is deemed to have occurred on the 46th day after the close of the last hearing. (d)  The zoning hearing board or governing body, as the case may be, shall commence its hearings within 60 days after the request is filed unless the landowner requests or consents to an extension of time.

Part III Ch. 23–35 Mortgages

(3)   If the submission is made to the governing body, the municipal solicitor shall represent and advise it at the hearing or hearings referred to in section 909.1(b)(4).

Part II Ch. 15–22 Deeds

(2)   If the submission is made by the landowner to the governing body under subsection (a)(2), the request also shall be accompanied by an amendment or amendments to the ordinance proposed by the landowner to cure the alleged defects therein.

Part I Ch. 1–14 Brokers

plans and explanatory materials describing the use or development proposed by the landowner in lieu of the use or development permitted by the challenged ordinance or map. Such plans or other materials shall not be required to meet the standards prescribed for preliminary, tentative or final approval or for the issuance of a permit, so long as they provide reasonable notice of the proposed use or development and a sufficient basis for evaluating the challenged ordinance or map in light thereof. Nothing herein contained shall preclude the landowner from first seeking a final approval before submitting his challenge.

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§ 916.1

MUNICIPALITIES PLANNING CODE

(e)  Public notice of the hearing shall include notice that the validity of the ordinance or map is in question and shall give the place where and the times when a copy of the request, including any plans, explanatory material or proposed amendments may be examined by the public. (f)   The challenge shall be deemed denied when: (1)   the zoning hearing board or governing body, as the case may be, fails to commence the hearing within the time limits set forth in subsection (d); (2)  the governing body notifies the landowner that it will not adopt the curative amendment; (3)   the governing body adopts another curative amendment which is unacceptable to the landowner; or (4)   the zoning hearing board or governing body, as the case may be, fails to act on the request 45 days after the close of the last hearing on the request, unless the time is extended by mutual consent by the landowner and municipality. (g)   Where, after the effective date of this act, a curative amendment proposal is approved by the grant of a curative amendment application by the governing body pursuant to section 909.1(b)(4) or a validity challenge is sustained by the zoning hearing board pursuant to section 909.1(a)(1) or the court acts finally on appeal from denial of a curative amendment proposal or a validity challenge, and the proposal or challenge so approved requires a further application for subdivision or land development, the developer shall have two years from the date of such approval to file an application for preliminary or tentative approval pursuant to Article V or VII.144 Within the two-year period, no subsequent change or amendment in the zoning, subdivision or other governing ordinance or plan shall be applied in any manner which adversely affects the rights of the applicant as granted in the curative amendment or the sustained validity challenge. Upon the filing of the preliminary or tentative plan, the provisions of section 508(4)145 shall apply. Where the proposal appended to the curative amendment application or the validity challenge is approved but does not require further application under any subdivision or land development ordinance, the developer shall have one year within which to file for a building permit. Within the one-year period, no subsequent change or amendment in the zoning, subdivision or other governing ordinance or plan shall be applied in any manner which adversely affects the rights of the applicant as granted in the curative amendment or the sustained validity challenge. During these protected periods, the court shall retain or assume jurisdiction for the purpose of awarding such supplemental relief as may be necessary. (h)   Where municipalities have adopted a multimunicipal comprehensive plan pursuant to Article XI146 but have not adopted a joint municipal ordinance pursuant to Article VIII-A147 and all municipalities participating in the multimunicipal comprehensive plan have adopted and are administering zoning ordinances generally consistent with the provisions of the multimunicipal comprehensive plan and a challenge is brought to the validity of a zoning ordinance of a participating municipality involving a proposed use, then the zoning hearing board or governing body, as the case may be, shall consider the availability of uses under zoning ordinances within the municipalities participating in the multimunicipal comprehensive plan within a reasonable geographic area and shall not limit its consideration to the application of the zoning ordinance on the municipality whose zoning ordinance is being challenged. 144. 145. 146. 147.

53 53 53 53

P.S. P.S. P.S. P.S.

§ § § §

10501 et seq.; 53 P.S. § 10701 et seq. 10508(4). 11101 et seq. 10812—A.

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Part IV Ch. 36–40 Insurance Part V Ch. 41–48A Zoning, etc. Part VI Ch. 49–56 Taxation Part VII Ch. 57–63 Litigation Part VIII Ch. 64–67 L/T Part IX Ch. 68–72 Condos, etc. Index

gtb-parealestate22-all.indb 621

Part III Ch. 23–35 Mortgages

621

Part II Ch. 15–22 Deeds

148. 53 P.S. § 10914.1. 149. 53 P.S. § 10107.

Part I Ch. 1–14 Brokers

(i)   A landowner who has challenged on substantive grounds the validity of a zoning ordinance or map either by submission of a curative amendment to the governing body under subsection (a)(2) or to the zoning hearing board under section 909.1(a)(1) shall not submit any additional substantive challenges involving the same parcel, group of parcels or part thereof until such time as the status of the landowner’s original challenge has been finally determined or withdrawn: Provided, however, That if after the date of the landowner’s original challenge the municipality adopts a substantially new or different zoning ordinance or zoning map, the landowner may file a second substantive challenge to the new or different zoning ordinance or zoning map under subsection (a). § 916.2.  Procedure to obtain preliminary opinion In order not to unreasonably delay the time when a landowner may secure assurance that the ordinance or map under which he proposed to build is free from challenge, and recognizing that the procedure for preliminary approval of his development may be too cumbersome or may be unavailable, the landowner may advance the date from which time for any challenge to the ordinance or map will run under section 914.1148 by the following procedure: (1)  The landowner may submit plans and other materials describing his proposed use or development to the zoning officer for a preliminary opinion as to their compliance with the applicable ordinances and maps. Such plans and other materials shall not be required to meet the standards prescribed for preliminary, tentative or final approval or for the issuance of a building permit so long as they provide reasonable notice of the proposed use or development and a sufficient basis for a preliminary opinion as to its compliance. (2)   If the zoning officer’s preliminary opinion is that the use or development complies with the ordinance or map, notice thereof shall be published once each week for two successive weeks in a newspaper of general circulation in the municipality. Such notice shall include a general description of the proposed use or development and its location, by some readily identifiable directive, and the place and times where the plans and other materials may be examined by the public. The favorable preliminary approval under section 914.1 and the time therein specified for commencing a proceeding with the board shall run from the time when the second notice thereof has been published. § 917.  Applicability of ordinance amendments When an application for either a special exception or a conditional use has been filed with either the zoning hearing board or governing body, as relevant, and the subject matter of such application would ultimately constitute either a land development as defined in section 107149 or a subdivision as defined in section 107, no change or amendment of the zoning, subdivision or other governing ordinance or plans shall affect the decision on such application adversely to the applicant, and the applicant shall be entitled to a decision in accordance with the provisions of the governing ordinances or plans as they stood at the time the application was duly filed. Provided, further, should such an application be approved by either the zoning hearing board or governing body, as relevant, applicant shall be entitled to proceed with the submission of either land development or subdivision plans within a period of six months or longer as may be approved by either the zoning hearing board or the governing body following the date of such approval in accordance with the provisions of the governing ordinances or plans as they stood at the time the application was duly filed before either the zoning hearing board or governing body, as relevant. If either a land development or subdivision plan is so filed within said period, such plan shall be subject to

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§ 918

MUNICIPALITIES PLANNING CODE

the provisions of section 508(1) through (4)150 and specifically to the time limitations of section 508(4) which shall commence as of the date of filing such land development or subdivision plan. § 918.  Special applicability provisions A municipal zoning ordinance enacted on or before August 21, 2000, shall not be invalidated, superseded or affected by any amendatory provision of the act of June 22, 2000 (P.L. 483, No. 67), entitled “An act amending the act of July 31, 1968 (P.L. 805, No. 247),151 entitled, as amended, ‘An act to empower cities of the second class A, and third class, boroughs, incorporated towns, townships of the first and second classes including those within a county of the second class and counties of the second through eighth classes, individually or jointly, to plan their development and to govern the same by zoning, subdivision and land development ordinances, planned residential development and other ordinances, by official maps, by the reservation of certain land for future public purpose and by the acquisition of such land; to promote the conservation of energy through the use of planning practices and to promote the effective utilization of renewable energy sources; providing for the establishment of planning commissions, planning departments, planning committees and zoning hearing boards, authorizing them to charge fees, make inspections and hold public hearings; providing for mediation; providing for transferable development rights; providing for appropriations, appeals to courts and penalties for violations; and repealing acts and parts of acts,’ adding definitions; providing for intergovernmental cooperative planning and implementation agreements; further providing for repeals; and making an editorial change,” or the act of June 22, 2000 (P.L. 495, No. 68), entitled “An act amending the act of July 31, 1968 (P.L. 805, No. 247), entitled, as amended, ‘An act to empower cities of the second class A, and third class, boroughs, incorporated towns, townships of the first and second classes including those within a county of the second class and counties of the second through eighth classes, individually or jointly, to plan their development and to govern the same by zoning, subdivision and land development ordinances, planned residential development and other ordinances, by official maps, by the reservation of certain land for future public purpose and by the acquisition of such land; to promote the conservation of energy through the use of planning practices and to promote the effective utilization of renewable energy sources; providing for the establishment of planning commissions, planning departments, planning committees and zoning hearing boards, authorizing them to charge fees, make inspections and hold public hearings; providing for mediation; providing for transferable development rights; providing for appropriations, appeals to courts and penalties for violations; and repealing acts and parts of acts,’ further providing for the purpose of the act; adding certain definitions; further providing for various matters relating to the comprehensive plan and for compliance by counties; providing for funding for municipal planning and for neighboring municipalities; further providing for certain ordinances; adding provisions relating to projects of regional impact; providing for traditional neighborhood development; further providing for grant of power, for contents of subdivision and land development ordinance, for approval of plats and for recording of plats and deeds; and providing for municipal authorities and water companies and for transferable development rights,” and such ordinance provisions shall continue in full force and effect until February 21, 2001; or, provided, however, any such ordinance shall be subject to such amendatory provisions on and after February 22, 2001.

150. 53 P.S. § 10508. 151. 53 P.S. § 10101 et seq.

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GOVERNMENT REGULATION

Ch. 41

Table of Contents

PART V

ARTICLE X

Appeals to Court

Part IX Ch. 68–72 Condos, etc.

10901 et seq. 10908(9). 10108. 11002-A. 10908.

Index

623

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Part VIII Ch. 64–67 L/T

§ § § § §

Part VII Ch. 57–63 Litigation

P.S. P.S. P.S. P.S. P.S.

Part VI Ch. 49–56 Taxation

53 53 53 53 53

Part V Ch. 41–48A Zoning, etc.

152. 153. 154. 155. 156.

Part IV Ch. 36–40 Insurance

§ 1001-A.  Land use appeals The procedures set forth in this article shall constitute the exclusive mode for securing review of any decision rendered pursuant to Article IX or deemed to have been made under this act. § 1002-A.   Jurisdiction and venue on appeal; time for appeal (a) All appeals from all land use decisions rendered pursuant to Article IX152 shall be taken to the court of common pleas of the judicial district wherein the land is located and shall be filed within 30 days after entry of the decision as provided in 42 Pa.C.S. § 5572 (relating to time of entry of order) or, in the case of a deemed decision, within 30 days after the date upon which notice of said deemed decision is given as set forth in section 908(9)153 of this act. It is the express intent of the General Assembly that, except in cases in which an unconstitutional deprivation of due process would result from its application, the 30-day limitation in this section should be applied in all appeals from decisions. (b) Challenges to the validity of a land use ordinance raising procedural questions or alleged defects in the process of enactment or adoption shall be raised by appeal taken directly to the court of common pleas of the judicial district in which the municipality adopting the ordinance is located in accordance with 42 Pa.C.S. § 5571.1 (relating to appeals from ordinances, resolutions, maps, etc.). § 11002.1-A.   Time for appeal; procedural defects of decisions (a)   This section shall apply to all appeals challenging the validity of a land use decision on the basis of a defect in procedures prescribed by statute or ordinance. (b)   Except as otherwise provided in section 108,154 all appeals challenging the validity of a decision solely on the basis of a defect in procedure shall be filed within the time period provided in section 1002- A(a)155 unless a party establishes each of the following: (1)   That the person filing the appeal had insufficient actual or constructive notice of the decision to permit filing an appeal within the time period provided in section 1002-A(a). Notice of a hearing prior to the entry of a decision in accordance with section 908(1),156 notice of a decision in accordance with section

Part III Ch. 23–35 Mortgages

ARTICLE X-A

Part II Ch. 15–22 Deeds

§ 1001.  Repealed. 1988, Dec. 21, P.L. 1329, No. 170, § 100, effective in 60 days § 1002.  Repealed. 1978, Apr 28, P.L. 202, No. 53, § 2(a)[1421], eff. June 27, 1978 §§ 1003 to 1011.  Repealed. 1988, Dec. 21, P.L. 1329, No. 170, § 100, effective in 60 days § 1012.  Repealed. 1971, June 3, P.L. 118, No. 6, § 1 (§ 509(a)(178) )

Part I Ch. 1–14 Brokers

Appeals

12/22/21 10:45 AM

§ 1003-A MUNICIPALITIES PLANNING CODE 908(10) or notice of a deemed decision provided in accordance with this act shall establish constructive notice as a matter of law in any appeal under this section. (2)   That because of the insufficient actual or constructive notice of the decision, the application of the time limitation in section 1002-A(a) would result in an impermissible deprivation of constitutional rights. (c)   Appeals under this section shall only be permitted by an aggrieved person who can establish that reliance on the validity of the challenged decision resulted or could result in a use of property that directly affects such person’s substantive property rights. (d)  No decision challenged in an appeal pursuant to this section shall be deemed void from inception except as follows: (1)   In the case of an appeal brought within the time period provided in section 1002-A(a), the party alleging the defect must meet the burden of proving that there was a failure to strictly comply with procedure. (2)   In the case of an appeal exempt from the time period provided in section 1002-A(a) or brought pursuant to section 108, the party alleging the defect must meet the burden of proving that because of the alleged defect in procedure alone: (i)   the public was denied notice sufficient to permit participation in the proceedings prior to the entry of the decision to the extent such participation was authorized by statute or ordinance; or (ii)   those whose substantive property rights were or could be directly affected by the entry of the decision were denied an opportunity to participate in proceedings prior to the entry of the decision. (e)   Substantial compliance with notice of a hearing required prior to the entry of a decision in accordance with section 908(1) shall establish notice adequate to permit public participation as a matter of law in any appeal under this section. (f)   An adjudication that a decision is void from inception shall not affect any previously acquired rights of property owners who have exercised good faith reliance on the validity of the decision prior to the determination. § 1003-A.  Appeals to court; commencement; stay of proceedings (a)   Land use appeals shall be entered as of course by the prothonotary or clerk upon the filing of a land use appeal notice which concisely sets forth the grounds on which the appellant relies. The appeal notice need not be verified. The land use appeal notice shall be accompanied by a true copy thereof. (b)   Upon filing of a land use appeal, the prothonotary or clerk shall forthwith, as of course, send to the governing body, board or agency whose decision or action has been appealed, by registered or certified mail, the copy of the land use appeal notice, together with a writ of certiorari commanding said governing body, board or agency, within 20 days after receipt thereof, to certify to the court its entire record in the matter in which the land use appeal has been taken, or a true and complete copy thereof, including any transcript of testimony in existence and available to the governing body, board or agency at the time it received the writ of certiorari. (c)   If the appellant is a person other than the landowner of the land directly involved in the decision or action appealed from, the appellant, within seven days after the land use appeal is filed, shall serve a true copy of the land use appeal notice by mailing said notice to the landowner or his attorney at his last known address. For identification of such landowner, the appellant may rely upon the record of the municipality and, in the event of good faith mistakes as to such identity, may make such service nunc pro tunc by leave of court. (d)   The filing of an appeal in court under this section shall not stay the action appealed from, but the appellants may petition the court having jurisdiction

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GOVERNMENT REGULATION

Ch. 41

Part IV Ch. 36–40 Insurance Part V Ch. 41–48A Zoning, etc. Part VI Ch. 49–56 Taxation Part VII Ch. 57–63 Litigation Part VIII Ch. 64–67 L/T Part IX Ch. 68–72 Condos, etc. Index

gtb-parealestate22-all.indb 625

Part III Ch. 23–35 Mortgages

625

Part II Ch. 15–22 Deeds

157. 53 P.S. § 10916.1. 158. 53 P.S. § 10801-A et seq.; 53 P.S. § 11101 et seq.

Part I Ch. 1–14 Brokers

of land use appeals for a stay. If the appellants are persons who are seeking to prevent a use or development of the land of another, whether or not a stay is sought by them, the landowner whose use or development is in question may petition the court to order the appellants to post bond as a condition to proceeding with the appeal. After the petition for posting a bond is presented, the court shall hold a hearing to determine if the filing of the appeal is frivolous. At the hearing, evidence may be presented on the merits of the case. It shall be the burden of the landowners to prove the appeal is frivolous. After consideration of all evidence presented, if the court determines that the appeal is frivolous, it shall grant the petition for posting a bond. The right to petition the court to order the appellants to post bond may be waived by the appellee, but such waiver may be revoked by him if an appeal is taken from a final decision of the court. The question of the amount of the bond shall be within the sound discretion of the court. An order denying a petition for bond shall be interlocutory. An order directing the respondent to the petition for posting a bond to post a bond shall be interlocutory. If an appeal is taken by a respondent to the petition for posting a bond from an order of the court dismissing a land use appeal for refusal to post a bond, such responding party, upon motion of petitioner and, after hearing in the court having jurisdiction of land use appeals, shall be liable for all reasonable costs, expenses and attorney fees incurred by petitioner. § 1004-A.  Intervention Within the 30 days first following the filing of a land use appeal, if the appeal is from a board or agency of a municipality, the municipality and any owner or tenant of property directly involved in the action appealed from may intervene as of course by filing a notice of intervention, accompanied by proof of service of the same, upon each appellant or each appellant’s counsel of record. All other intervention shall be governed by the Pennsylvania Rules of Civil Procedure. § 1005-A.  Hearing and argument of land use appeal If, upon motion, it is shown that proper consideration of the land use appeal requires the presentation of additional evidence, a judge of the court may hold a hearing to receive additional evidence, may remand the case to the body, agency or officer whose decision or order has been brought up for review, or may refer the case to a referee to receive additional evidence, provided that appeals brought before the court pursuant to section 916.1157 shall not be remanded for further hearings before any body, agency or officer of the municipality. If the record below includes findings of fact made by the governing body, board or agency whose decision or action is brought up for review and the court does not take additional evidence or appoint a referee to take additional evidence, the findings of the governing body, board or agency shall not be disturbed by the court if supported by substantial evidence. If the record does not include findings of fact or if additional evidence is taken by the court or by a referee, the court shall make its own findings of fact based on the record below as supplemented by the additional evidence, if any. § 1006-A.  Judicial relief (a)   In a land use appeal, the court shall have power to declare any ordinance or map invalid and set aside or modify any action, decision or order of the governing body, agency or officer of the municipality brought up on appeal. (b)   Where municipalities have adopted a joint municipal comprehensive plan and enacted a zoning ordinance or ordinances consistent with the joint municipal comprehensive plan within a region pursuant to Articles VIII-A and XI,158 the court, when determining the validity of a challenge to such a municipality’s zon-

Table of Contents

PART V

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§ 1101

MUNICIPALITIES PLANNING CODE

ing ordinance, shall consider the zoning ordinance or ordinances as they apply to the entire region and shall not limit its consideration to the application of the zoning ordinance within the boundaries of the respective municipalities. (b.1)  Where municipalities have adopted a multimunicipal comprehensive plan pursuant to Article XI159 but have not adopted a joint municipal ordinance pursuant to Article VIII-A160 and all municipalities participating in the multimunicipal comprehensive plan have adopted and are administrating zoning ordinances generally consistent with the provisions of the multimunicipal comprehensive plan and a challenge is brought to the validity of a zoning ordinance of a participating municipality involving a proposed use, then the court shall consider the availability of uses under zoning ordinances within the municipalities participating in the multimunicipal comprehensive plan within a reasonable geographic area and shall not limit its consideration to the application of the zoning ordinance on the municipality whose zoning ordinance is being challenged. (b.2)  Notwithstanding any provisions of this section to the contrary, each municipality shall provide for reasonable coal mining activities in its zoning ordinance. (c)   If the court finds that an ordinance or map, or a decision or order thereunder, which has been brought up for review unlawfully prevents or restricts a development or use which has been described by the landowner through plans and other materials submitted to the governing body, agency or officer of the municipality whose action or failure to act is in question on the appeal, it may order the described development or use approved as to all elements or it may order it approved as to some elements and refer other elements to the governing body, agency or officer having jurisdiction thereof for further proceedings, including the adoption of alternative restrictions, in accordance with the court’s opinion and order. (d)   Upon motion by any of the parties or upon motion by the court, the judge of the court may hold a hearing or hearings to receive additional evidence or employ experts to aid the court to frame an appropriate order. If the court employs an expert, the report or evidence of such expert shall be available to any party and he shall be subject to examination or cross-examination by any party. He shall be paid reasonable compensation for his services which may be assessed against any or all of the parties as determined by the court. The court shall retain jurisdiction of the appeal during the pendency of any such further proceedings and may, upon motion of the landowner, issue such supplementary orders as it deems necessary to protect the rights of the landowner as declared in its opinion and order. (e)   The fact that the plans and other materials are not in a form or are not accompanied by other submissions which are required for final approval of the development or use in question or for the issuance of permits shall not prevent the court from granting the definitive relief authorized. The court may act upon preliminary or sketch plans by framing its decree to take into account the need for further submissions before final approval is granted.

ARTICLE XI Joint Municipal Planning Commission § 1101.  Purposes It is the purpose of this article:

159. 53 P.S. § 11101 et seq. 160. 53 P.S. § 10812—A.

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GOVERNMENT REGULATION

Ch. 41

Part V Ch. 41–48A Zoning, etc. Part VI Ch. 49–56 Taxation Part VII Ch. 57–63 Litigation Part VIII Ch. 64–67 L/T Part IX Ch. 68–72 Condos, etc. Index

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Part IV Ch. 36–40 Insurance

627

Part III Ch. 23–35 Mortgages

§ 1103.  County or multimunicipal comprehensive plans (a)   The comprehensive plan that is the subject of an agreement may be developed by the municipalities or, at the request of the municipalities, by the county

Part II Ch. 15–22 Deeds

§ 1102.  Intergovernmental cooperative planning and implementation agreements For the purpose of developing, adopting and implementing a comprehensive plan for the entire county or for any area within the county, the governing bodies of municipalities located within the county or counties may enter into intergovernmental cooperative agreements, as provided by 53 Pa.C.S. Ch. 23 Such. A (relating to intergovernmental cooperation), except for any provisions permitting initiative and referendum. Such agreements may also be entered into between and among counties and municipalities for areas that include municipalities in more than one county, and between and among counties, municipalities, authorities and special districts providing water and sewer facilities, transportation planning or other services within the area of a plan and with the opportunity for the active participation of State agencies and school districts. Implementation of the comprehensive plan and subdivision and zoning ordinances shall be accomplished in accordance with articles of this act.

Part I Ch. 1–14 Brokers

(1)  To provide for development that is compatible with surrounding land uses and that will complement existing land development with a balance of commercial, industrial and residential uses. (2)  To protect and maintain the separate identity of Pennsylvania’s communities and to prevent the unnecessary conversion of valuable and limited agricultural land. (3)  To encourage cooperation and coordinated planning among adjoining municipalities so that each municipality accommodates its share of the multimunicipal growth burden and does not induce unnecessary or premature development of rural lands. (4)  To minimize disruption of the economy and environment of existing communities. (5)  To complement the economic and transportation needs of the region and this Commonwealth. (6)   To provide for the continuation of historic community patterns. (7)   To provide for coordinated highways, public services and development. (8)  To ensure that new public water and wastewater treatment systems are constructed in areas that will result in the efficient utilization of existing systems, prior to the development and construction of new systems. (9)  To ensure that new or major extension of existing public water and wastewater treatment systems are constructed only in those areas within which anticipated growth and development can adequately be sustained within the financial and environmental resources of the area. (10)   To identify those areas where growth and development will occur so that a full range of public infrastructure services, including sewer, water, highways, police and fire protection, public schools, parks, open space and other services, can be adequately planned and provided as needed to accommodate the growth that occurs. (11)  To encourage innovations in residential, commercial and industrial development to meet growing population demands by an increased variety in type, design and layout of structures and by the conservation and more efficient use of open space ancillary to such structures. (12)   To facilitate the development of affordable and other types of housing in numbers consistent with the need for such housing as shown by existing and projected population and employment data for the region.

Table of Contents

PART V

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§ 1103

MUNICIPALITIES PLANNING CODE

planning agency, or agencies in the case of a plan covering municipalities in more than one county, in cooperation with municipalities within the area and shall include all the elements required or authorized in section 301161 for the region of the plan, including a plan to meet the housing needs of present residents and those individuals and families anticipated to reside in the area of the plan, which may include conservation of presently sound housing, rehabilitation of housing in declining neighborhoods and the accommodations of expected new housing in different dwelling types and of appropriate densities for households of all income levels. The plan may: (1)   Designate growth areas where: (i)  Orderly and efficient development to accommodate the projected growth of the area within the next 20 years is planned for residential and mixed use densities of one unit or more per acre. (ii)   Commercial, industrial and institutional uses to provide for the economic and employment needs of the area and to insure that the area has an adequate tax base are planned for. (iii)   Services to serve such development are provided or planned for. (2)  Designate potential future growth areas where future development is planned for densities to accompany the orderly extension and provision of services. (3)   Designate rural resource areas, if applicable, where: (i)   Rural resource uses are planned for. (ii)  Development at densities that are compatible with rural resource uses are or may be permitted. (iii)  Infrastructure extensions or improvements are not intended to be publicly financed by municipalities, except in villages, unless the participating or affected municipalities agree that such service should be provided to an area for health or safety reasons or to accomplish one or more of the purposes set forth in section 1101.162 (4)  Plan for the accommodation of all categories of uses within the area of the plan, provided, however, that all uses need not be provided in every municipality but shall be planned and provided for within a reasonable geographic area of the plan. (5)   Plan for developments of areawide significance and impact, particularly those identified in section 301(3) and (4). (6)   Plan for the conservation and enhancement of the natural, scenic, historic and aesthetic resources within the area of the plan. (b)  The county may facilitate a multimunicipal process and may enter into cooperative planning agreements with participating municipalities governing particular planning subjects and responsibilities. The planning process shall include a public participation process to assure that all governing bodies, municipal authorities, school districts and agencies, whether public or private, having jurisdiction or operating within the area of the plan and landowners and citizens affected by the plan have an opportunity to be heard prior to the public hearings required for the adoption of the plan under section 302(a).163 (c)   Adoption of the plan and plan amendments shall conform to the requirements of section 302 and may be reflected on the official map of each participat-

161. 53 P.S. § 10301. 162. 53 P.S. § 11101. 163. 53 P.S. § 10302.

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GOVERNMENT REGULATION

Ch. 41

Part VI Ch. 49–56 Taxation Part VII Ch. 57–63 Litigation Part VIII Ch. 64–67 L/T Part IX Ch. 68–72 Condos, etc. Index

gtb-parealestate22-all.indb 629

Part V Ch. 41–48A Zoning, etc.

629

Part IV Ch. 36–40 Insurance

164. 53 P.S. § 10401. 165. 53 P.S. § 11103.

Part III Ch. 23–35 Mortgages

(d)  The county may facilitate convening representatives of municipalities, municipal authorities, special districts, public utilities, whether public or private, or other agencies that provide or declare an interest in providing a public infrastructure service in a public infrastructure service area or a portion of a public infrastructure service area within a growth area, as established in a county

Part II Ch. 15–22 Deeds

(c)   Cooperative implementation agreements may designate growth areas, future growth areas and rural resource areas within the plan. The agreement shall also provide a process for amending the multimunicipal comprehensive plan and redefining the designated growth area, future growth area and rural resource area within the plan.

Part I Ch. 1–14 Brokers

ing municipality pursuant to section 401.164 Where a county and municipality have developed and adopted a comprehensive county or multimunicipal plan that conforms to the requirements of this article within five years prior to the date of adoption of this article, the plan may be implemented by agreements as provided for in this article. § 1104.  Implementation agreements (a)   In order to implement multimunicipal comprehensive plans under section 1103,165 counties and municipalities shall have authority to enter into intergovernmental cooperative agreements. (b)   Cooperative implementation agreements shall: (1)   Establish the process that the participating municipalities will use to achieve general consistency between the county or multimunicipal comprehensive plan and zoning ordinances, subdivision and land development and capital improvement plans within participating municipalities, including adoption of conforming ordinances by participating municipalities within two years and a mechanism for resolving disputes over the interpretation of the multimunicipal comprehensive plan and the consistency of implementing plans and ordinances. (2)   Establish a process for review and approval of developments of regional significance and impact that are proposed within any participating municipality. Subdivision and land development approval powers under this act shall only be exercised by the municipality in which the property where the approval is sought. Under no circumstances shall a subdivision or land development applicant be required to undergo more than one approval process. (3)  Establish the role and responsibilities of participating municipalities with respect to implementation of the plan, including the provision of public infrastructure services within participating municipalities as described in subsection (d), the provision of affordable housing and purchase of real property, including rights-of-way and easements. (4)  Require a yearly report by participating municipalities to the county planning agency and by the county planning agency to the participating municipalities concerning activities carried out pursuant to the agreement during the previous year. Such reports shall include summaries of public infrastructure needs in growth areas and progress toward meeting those needs through capital improvement plans and implementing actions and reports on development applications and dispositions for residential, commercial and industrial development in each participating municipality for the purpose of evaluating the extent of provision for all categories of use and housing for all income levels within the region of the plan. (5)   Describe any other duties and responsibilities as may be agreed upon by the parties.

Table of Contents

PART V

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§ 1105

MUNICIPALITIES PLANNING CODE

or multimunicipal comprehensive plan, for the purpose of negotiating agreements for the provision of such services. The county may provide or contract with others to provide technical assistance, mediation or dispute resolution services in order to assist the parties in negotiating such agreements. § 1105.  Legal effect (a)  Where municipalities have adopted a county plan or a multimunicipal plan is adopted under this article and the participating municipalities have conformed their local plans and ordinances to the county or multimunicipal plan by implementing cooperative agreements and adopting appropriate resolutions and ordinances, the following shall apply: (1)   Sections 916.1 and 1006-A.166 (2)   State agencies shall consider and may rely upon comprehensive plans and zoning ordinances when reviewing applications for the funding or permitting of infrastructure or facilities. (3)  State agencies shall consider and may give priority consideration to applications for financial or technical assistance for projects consistent with the county or multimunicipal plan. (b)   Participating municipalities that have entered into implementation agreements to carry out a county or multimunicipal plan as described in this article shall have the following additional powers: (1)  To provide by cooperative agreement for the sharing of tax revenues and fees by municipalities within the region of the plan. (2)  To adopt a transfer of development rights program by adoption of an ordinance applicable to the region of the plan so as to enable development rights to be transferred from rural resource areas in any municipality within the plan to designated growth areas in any municipality within the plan. (c)   Nothing in this article shall be construed to authorize a municipality to regulate the allocation or withdrawal of water resources by a municipal authority or water company that is otherwise regulated by the Pennsylvania Public Utility Commission or other Federal or State agencies or statutes. (d)   Except as provided in section 619.2,167 nothing in this article shall be construed as limiting the authority of the Pennsylvania Public Utility Commission over the implementation, location, construction and maintenance of public utility facilities and the rendering of public utility services to the public. § 1106.  Specific plans (a)   Participating municipalities shall have authority to adopt a specific plan for the systematic implementation of a county or multimunicipal comprehensive plan for any nonresidential part of the area covered by the plan. Such specific plan shall include a text and a diagram or diagrams and implementing ordinances which specify all of the following in detail: (1)  The distribution, location, extent of area and standards for land uses and facilities, including design of sewage, water, drainage and other essential facilities needed to support the land uses. (2)  The location, classification and design of all transportation facilities, including, but not limited to, streets and roads needed to serve the land uses described in the specific plan. (3)   Standards for population density, land coverage, building intensity and supporting services, including utilities. 166. 53 P.S. §§ 10916.1 and 11006—A. 167. 53 P.S. § 10619.2.

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GOVERNMENT REGULATION

Ch. 41

Part VI Ch. 49–56 Taxation Part VII Ch. 57–63 Litigation Part VIII Ch. 64–67 L/T

§ 1101-A.  Definitions. The following words and phrases when used in this article shall have the meanings given to them in this section unless the context clearly indicates otherwise:

Part IX Ch. 68–72 Condos, etc.

53 PS §§ 1101-A to 1104-A

Index

gtb-parealestate22-all.indb 631

Part V Ch. 41–48A Zoning, etc.

WASTEWATER PROCESSING COOPERATIVE PLANNING (Second Class-A Counties)

631

Part IV Ch. 36–40 Insurance

ARTICLE XI-A

168. 53 P.S. § 10501 et seq.

Part III Ch. 23–35 Mortgages

(a)  The passage of this act and the repeal by it of any prior enabling laws relating to regional planning shall not invalidate any regional planning commission created under such other laws. This act, in such respect, shall be deemed a continuation and codification of such prior enabling laws. (b)  The amendment of this article shall not invalidate any joint municipal planning commission established under the former provisions of this article. A joint municipal planning commission shall continue to function under the amended provisions of this article.

Part II Ch. 15–22 Deeds

§ 1107.  Saving clause

Part I Ch. 1–14 Brokers

(4)  Standards for the preservation, conservation, development and use of natural resources, including the protection of significant open spaces, resource lands and agricultural lands within or adjacent to the area covered by the specific plan. (5)  A program of implementation including regulations, financing of the capital improvements and provisions for repealing or amending the specific plan. Regulations may include zoning, storm water, subdivision and land development, highway access and any other provisions for which municipalities are authorized by law to enact. The regulations may be amended into the county or municipal ordinances or adopted as separate ordinances. If enacted as separate ordinances for the area covered by the specific plan, the ordinances shall repeal and replace any county or municipal ordinances in effect within the area covered by the specific plan, and ordinances shall conform to the provisions of the specific plan. (b)(1)   No specific plan may be adopted or amended unless the proposed plan or amendment is consistent with an adopted county or multimunicipal comprehensive plan. (2)   No capital project by any municipal authority or municipality shall be approved or undertaken and no final plan, development plan or plat for any subdivision or development of land shall be approved unless such projects, plans or plats are consistent with the adopted specific plan. (c)   In adopting or amending a specific plan, a county and participating municipalities shall use the same procedures as provided in this article for adopting comprehensive plans and ordinances. (d)  Whenever a specific plan has been adopted, applicants for subdivision or land development approval shall be required to submit only a final plan as provided in Article V,168 provided that such final plan is consistent with and implements the adopted specific plan. (e)   A county or counties and participating municipalities are prohibited from assessing subdivision and land development applicants for the cost of the specific plan.

Table of Contents

PART V

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§ 1102-A MUNICIPALITIES PLANNING CODE “Department.” The Department of Environmental Protection of the Commonwealth. “Wastewater system official.” Either: (1) the manager of a wastewater system; or (2) if a manager is not employed to oversee a wastewater system, the system municipal officials of the municipality in which the wastewater system exists. § 1102-A.   Notification requirement. (a)   Notice to wastewater systems official.— (1)   Except as provided in paragraph (2), notwithstanding any other provision of law, this section applies to a person who files an application for: (i)   development, plat approval, planned residential development or waiver of land development under this act; or (ii)   a construction permit under section 502 of the act of November 10, 1999 (P.L.491, No.45), known as the Pennsylvania Construction Code Act. (2)   This article does not apply to: (i)   an application that involves new construction or alteration or renovation of a one-family or two-family dwelling; (ii)   an application that has an approved sewer module; or (iii)   an application for which the department has issued a determination that sewage planning is not required or has granted an exemption from sewage planning. (3)   A person subject to this subsection shall provide written notification of filing the application to the wastewater system official serving the property identified in the application. A copy of the written notification shall be provided by the person to the municipality. (b)  Failure to notify.—No application subject to subsection (a) may be deemed by the municipality to be administratively complete until the municipality receives a copy of the written notification required by subsection (a). § 1103-A.   Review by wastewater system officials. (a)   Wastewater systems review.— (1)  Upon receipt of the notification required under section 1102-A(a), the wastewater system official shall review the notification to determine the impact of the application on the wastewater system. The wastewater system official may request additional information, including a copy of the application, from the applicant. (2)(i)   Except as provided under subparagraph (ii), review by the wastewater system official shall be completed within 30 days of receipt of the notification required under section 1102-A. For good cause shown, the wastewater system official may request and the municipality shall grant an extension of up to 15 days for completion of the review. (ii)   If another statute establishes an application review period of 30 days or less, the review period and extension provided under subparagraph (i) shall not apply and the wastewater system official shall complete the review within the review period provided by that statute. (3)   If a municipality does not receive any notice from the wastewater system official within the time period provided under paragraph (2), the municipality shall proceed with the application as if the application is in compliance with the requirements of the wastewater system. (b)   Notification of results of review.— (1)   Upon completion of the review required under subsection (a), the wastewater system official shall notify the applicant and the municipality in writing

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GOVERNMENT REGULATION

Ch. 41

Part VIII Ch. 64–67 L/T Part IX Ch. 68–72 Condos, etc. Index

gtb-parealestate22-all.indb 633

Part VII Ch. 57–63 Litigation

633

Part VI Ch. 49–56 Taxation

169. 53 P.S. § 1095.

Part V Ch. 41–48A Zoning, etc.

(1)  Section 12, act of May 16, 1891 (P.L. 75, No. 59),169 entitled “An act in relation to the laying out, opening, widening, straightening, extending or vacating streets and alleys, and the construction of bridges in the several municipalities of this Commonwealth, the grading, paving, macadamizing or otherwise improving streets and alleys, providing for ascertaining the damages to private property resulting therefrom, the assessment of the damages, costs and expenses thereof upon the property benefited, and the construction of sewers and payment of the damages, costs and expenses thereof, including damages to private property resulting therefrom,” as to cities of the second class A, incorporated towns and townships of the first and second class.

Part IV Ch. 36–40 Insurance

§ 1201.  Specific repeals The following acts and parts of acts and amendments thereof are repealed to the extent hereinafter specified:

Part III Ch. 23–35 Mortgages

Repeals

Part II Ch. 15–22 Deeds

ARTICLE XII

Part I Ch. 1–14 Brokers

of its findings, which shall include a statement regarding the expected impact of the application on the current wastewater system. (2)   If the application will cause the wastewater system to exceed its permitted capacity or will result in necessary upgrades to the wastewater system’s infrastructure, the written notice of the wastewater system official shall include the specific reasons that are causing the wastewater system to exceed its permitted capacity or the necessity for upgrades to the wastewater system’s infrastructure. (c)  Approval of applications.—Except for applications which are exempt from the provisions of this article as provided under section 1102-A(a)(2), a municipality may not: (1)  grant final approval of an application for development, plat approval or planned residential development under this act unless final approval is conditioned upon receipt of a waiver of or an approved exemption from sewage planning or written approval of the application is received from the wastewater system official; or (2)   approve an application for a construction permit under section 502 of the act of November 10, 1999 (P.L.491, No.45), known as the Pennsylvania Construction Code Act, unless the application has been reviewed under this section. (d)   Right of appeal.—Any person aggrieved by a decision of a wastewater system official shall be entitled to seek the remedies provided under the act of January 24, 1966 (1965 P.L.1535, No.537), known as the Pennsylvania Sewage Facilities Act. § 1104-A.  Applicability. This article shall apply as follows: (1)   This article shall apply to applications for development, plat approval, planned residential development, waiver of land development or construction permits if the development or construction utilizes wastewater treatment service provided by a county wastewater treatment authority incorporated in a county of the second class A. (2)  This article shall apply to all municipalities served by the authority under paragraph (1).

Table of Contents

PART V

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§ 1202

MUNICIPALITIES PLANNING CODE

(2)  Sections 1151, 1152, 1153, 1154, 1155, 1156, 1601, 1602, 1603, 1604, 1605, 1606, 1607, 1608, 1609, 1711, 1721, 1722, 2706, 2707, 3201, 3202, 3203, 3204, 3205, 3206, 3207, 3208, 3209 and 3210, act of February 1, 1966 (P.L. 1656, No. 581),170 known as “The Borough Code,” absolutely. (3)  Sections 2001, 3015, 3016, 3061, 3062, 3063, 3064, 3065, 3066, 3067, 3068, 3101, 3102, 3103, 3104, 3105, 3106, 3107, 3107.1, 3107.2, 3108, 3109, 3110, 3111, 3201, 3202 and 3203, act of June 24, 1931 (P.L. 1206, No. 331),171 known as “The First Class Township Code,” reenacted and amended May 27, 1949 (P.L. 1955, No. 569), absolutely. (4)  Sections 2901, 2902, 2903, 2904, 2905, 2906, 3701, 3702, 4001, 4002, 4003, 4004, 4005, 4006, 4101, 4102, 4103, 4104, 4105, 4106, 4107, 4110, 4111, 4112, 4113, 4114, 4120, 4121, 4122, 4123, 4124, 4125, 4126, 4127, 4128 and 4129, act of June 23, 1931 (P.L. 932, No. 317),172 known as “The Third Class City Code,” reenacted and amended June 28, 1951 (P.L. 662, No. 164), absolutely. (5)   Sections 1201-A, 1202-A, 1203-A, 1204-A, 1205-A, 1206-A, 1207-A, 1208A, 1907.1, 1907.2, 2001, 2002, 2003, 2004, 2005, 2006, 2007, 2008, 2009, 2010, 2051, 2052, 2053, 2054, 2055, 2056 and 2057, act of May 1, 1933 (P.L. 103, No. 69),173 known as “The Second Class Township Code,” reenacted and amended July 10, 1947 (P.L. 1481, No. 567), absolutely. (6)   The act of April 18, 1945 (P.L. 258, No. 117),174 entitled “An act requiring cities, boroughs, towns and townships to notify adjacent political subdivisions of proposed streets, roads and highways leading into them,” as to cities of the second class A and third class, boroughs, incorporated towns and townships of the first and second class. (7)  Sections 2001, 2002, 2003, 2004, 2005, 2006, 2007, 2008, 2009, 2010, 2011, 2020, 2021, 2022, 2023, 2024, 2025, 2026, 2027, 2028, 2029, 2030, 2031, 2032, 2033, 2034, 2035, 2036, 2037, 2038 and 2039, act of August 9, 1955 (P.L. 323, No. 130),175 known as “The County Code,” absolutely. (8)   Sections 2201 through 2211 and 2220 through 2239, act of July 28, 1953 (P.L. 723, No. 230),176 known as the “Second Class County Code,” in so far as they relate to counties of the second class A. § 1202.  General repeal All other acts and parts of acts are repealed in so far as they are inconsistent herewith, but this act shall not repeal or modify any of the provisions of 66 Pa.C.S. Pt. I (relating to public utility code), 68 Pa.C.S. Pt. II Subpt. B (relating to condominiums) or any laws administered by the Department of Transportation of the Commonwealth of Pennsylvania.

170. 53 P.S. §§ 46151 to 46156, 46601 to 46609, 46711, 46721, 46722, 47706, 47707, 48201 to 48210. 171. 53 P.S. §§ 57001, 58015, 58016, 58061 to 58068, 58101 to 58111, 58201 to 58203. 172. 53 P.S. §§ 37901 to 37906, 38701, 38702, 39001 to 39006, 39101 to 39107, 39110 to 39114, 39120 to 39129. 173. 53 P.S. §§ 66251 to 66258, 66907.1, 66907.2, 67001 to 67010, 67051 to 67057. 174. 36 P.S. § 1762. 175. 16 P.S. §§ 2001 to 2011, 2020 to 2039. 176. 16 P.S. §§ 5201 to 5211, 5220 to 5239.

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Table of Contents

CHAPTER 41.1

Part I Ch. 1–14 Brokers

DEVELOPMENT PERMIT EXTENSION ACT 53 P.S. § 11703.1 et seq.

Sec.

11703.1. Short title 11703.2. Definitions 11703.3. Existing approval 11703.4. Subsequent changes 11703.5. Agency verification 11703.6. Applicability 11703.7. Notice 11703.8. Miscellaneous

Part II Ch. 15–22 Deeds Part VIII Ch. 64–67 L/T Part IX Ch. 68–72 Condos, etc. Index

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Part VII Ch. 57–63 Litigation

Pa.C.S. § 3101 et seq. Pa.C.S. § 4101 et seq. Pa.C.S. § 5101 et seq. P.S. § 22181 et seq. P.S. § 7101 et seq. P.S. § 51 et seq.

Part VI Ch. 49–56 Taxation

68 68 68 53 53 71

Part V Ch. 41–48A Zoning, etc.

1. 2. 3. 4. 5. 6.

Part IV Ch. 36–40 Insurance

§ 11703.1.   Short title This act shall be known and may be cited as the Development Permit Extension Act. § 11703.2.  Definitions The following words and phrases when used in this act shall have the meanings given to them in this section unless the context clearly indicates otherwise: “Approval.” Any of the following: (1)  except as provided in paragraphs (2) and (3), any government agency approval, agreement, permit, including a building permit or construction permit, or other authorization or decision: (i)   allowing a development or construction project to proceed; or (ii)   relating to or affecting development, granted pursuant to a statute, regulation or ordinance adopted by a municipality, including the following: (A)   37 Pa.C.S. (relating to historical and museums). (B)   53 Pa.C.S. (relating to municipalities generally). (C)   68 Pa.C.S. Pt. II Subpt. B (relating to condominiums).1 (D)   68 Pa.C.S. Pt. II Subpt. C (relating to cooperatives).2 (E)   68 Pa.C.S. Pt. II Subpt. D (relating to planned communities).3 (F)   The act of March 7, 1901 (P.L. 20, No. 14), referred to as the Second Class City Law, as it relates to development and construction.4 (G)  The act of May 16, 1923 (P.L. 207, No. 153), referred to as the Municipal Claim and Tax Lien Law.5 (H)   The act of April 9, 1929 (P.L. 177, No. 175), known as The Administrative Code of 1929.6

Part III Ch. 23–35 Mortgages

§ § § § § § § §

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§ 11703.2 DEVELOPMENT PERMIT EXTENSION ACT (I)   The act of June 23, 1931 (P.L. 932, No. 317), known as The Third Class City Code, as it relates to development and construction.7 (J)   The act of June 24, 1931 (P.L. 1206, No. 331), known as The First Class Township Code, as it relates to development and construction.8 (K)   The act of May 1, 1933 (P.L. 103, No. 69), known as The Second Class Township Code, as it relates to development and construction.9 (L)   The act of June 22, 1937 (P.L. 1987, No. 394), known as The Clean Streams Law.10 (M)   The act of June 1, 1945 (P.L. 1242, No. 428), known as the State Highway Law,11 as it relates to the issuance of highway occupancy permits which are regulated under 67 Pa. Code Ch. 441 (relating to access to and occupancy of highways by driveways and local roads) or which are affected by other laws or regulations. (N)   The act of April 21, 1949 (P.L. 665, No. 155), known as the First Class City Home Rule Act, as it relates to development and construction.12 (O)   The act of July 28, 1953 (P.L. 723, No. 230),13 known as the Second Class County Code. (P)   The act of August 9, 1955 (P.L. 323, No. 130), known as The County Code.14 (Q)   The act of July 15, 1957 (P.L. 901, No. 399), known as the Optional Third Class City Charter Law, as it relates to development and construction.15 (R)   The act of January 24, 1966 (1965 P.L. 1535, No. 537), known as the Pennsylvania Sewage Facilities Act.16 (S)   The act of February 1, 1966 (1965 P.L. 1656, No. 581), known as The Borough Code, as it relates to development and construction.17 (T)   The act of July 31, 1968 (P.L. 805, No. 247), known as the Pennsylvania Municipalities Planning Code.18 (U)   The act of July 9, 1971 (P.L. 206, No. 34), known as the Improvement of Deteriorating Real Property or Areas Tax Exemption Act.19 (V)   The act of October 4, 1978 (P.L. 851, No. 166), known as the Flood Plain Management Act.20 (W)   The act of October 4, 1978 (P.L. 864, No. 167), known as the Storm Water Management Act.21 (X)   The act of November 26, 1978 (P.L. 1375, No. 325), known as the Dam Safety and Encroachments Act.22 7. 53 P.S. § 35101 et seq. 8. 53 P.S. § 55101 et seq. 9. 53 P.S. § 65101 et seq. 10. 35 P.S. § 691.1 et seq. 11. 36 P.S. § 670-101 et seq. 12. 53 P.S. § 13101 et seq. 13. 16 P.S. § 3101 et seq. 14. 16 P.S. § 101 et seq. 15. 53 P.S. § 41101 et seq. 16. 35 P.S. § 750.1 et seq. 17. 53 P.S. § 45101 et seq. (repealed); see 8 Pa.C.S. § 101 et seq. 18. 53 P.S. § 10101 et seq. 19. 72 P.S. § 4711-101 et seq. 20. 32 P.S. § 679.101 et seq. 21. 32 P.S. § 680.1 et seq. 22. 32 P.S. § 693.1 et seq.

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GOVERNMENT REGULATION

Ch. 41.1

Part IV Ch. 36–40 Insurance Part V Ch. 41–48A Zoning, etc. Part VI Ch. 49–56 Taxation Part VII Ch. 57–63 Litigation Part VIII Ch. 64–67 L/T Part IX Ch. 68–72 Condos, etc. Index

P.S. § 7210.101 et seq. P.S. § 1081 et seq. P.S. § 5051 et seq. P.S. § 2992.1 et seq. U.S.C. § 470 et seq. Pa.C.S. §§ 3101 et seq., 5101 et seq. P.S. § 10107.

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Part III Ch. 23–35 Mortgages

35 68 32 62 16 68 53

Part II Ch. 15–22 Deeds

23. 24. 25. 26. 27. 28. 29.

Part I Ch. 1–14 Brokers

(Y)  The act of November 10, 1999 (P.L. 491, No. 45), known as the Pennsylvania Construction Code Act.23 (Z)  The act of December 20, 2000 (P.L. 724, No. 99), known as the Municipal Code and Ordinance Compliance Act.24 (Z.1)   The act of June 22, 2001 (P.L. 390, No. 29), known as the Conservation and Preservation Easements Act.25 (Z.2)   The former act of May 16, 2002 (P.L. 315, No. 46), known as the Community Services Block Grant Act.26 (Z.3)  The act of February 22, 2008 (P.L. 36, No. 4), entitled “An act authorizing the Department of General Services, with the concurrence of the Department of Environmental Protection, to lease to VTE Philadelphia, LP, or its nominee, land within the bed of the Delaware River in the City of Philadelphia; and affirming the authority of the General Assembly to enact certain conveyances.” (Z.4)  The act of February 22, 2008 (P.L. 41, No. 5), entitled “An act authorizing the Department of General Services, with the concurrence of the Department of Environmental Protection, to lease to NCCB Associates, LP, or its nominee, land within the bed of the Delaware River in the City of Philadelphia; and affirming the authority of the General Assembly to enact certain conveyances.” (Z.5)   Soil erosion and sediment control plans approved by a local soil conservation district under 25 Pa. Code Ch. 102 (relating to erosion and sediment control). (Z.6)  The National Historic Preservation Act (Public Law 89-665, 80 Stat. 915),27 to the extent the Commonwealth has been empowered to administer, approve or otherwise authorize activities under that act. (Z.7)   The Federal Water Pollution Control Act (62 Stat. 1155, 33 U.S.C. § 1251 et seq.), to the extent the Commonwealth has been empowered to administer, approve or otherwise authorize activities under that act; (2)  in cities of the first class and agencies established by such cities, the term shall include only the issuance of a building permit, a zoning use and registration permit and any administrative approval, including an approval by a board or commission, that is a condition precedent to issuance of a building permit or zoning use and registration permit to an owner of property; or (3)   any authorization to create additional units and common elements out of convertible real estate in a condominium or planned community or otherwise relating to the right to convert convertible real estate or withdraw withdrawable real estate pursuant to 68 Pa.C.S. Pt. II Subpt. B or D.28 “Development.” Any of the following: (1)  The division of a parcel of land into two or more parcels, including a subdivision as defined in section 107 of the act of July 31, 1968 (P.L. 805, No. 247),29 known as the Pennsylvania Municipalities Planning Code. (2)   The construction, reconstruction, conversion, structural alteration, relocation or enlargement of a building or other structure.

Table of Contents

PART V

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§ 11703.3 DEVELOPMENT PERMIT EXTENSION ACT (3)   Site preparation, including grading, earth moving activities, clearance, soil removal or movement, timber harvesting relocation, excavation, landfill and moving, depositing or storing soil, rock or earth materials. (4)   A use or change in the use of a building or other structure or change in land use. (5)   Land development, as defined in section 107 of the Pennsylvania Municipalities Planning Code, or land use. (6)   Demolition, moving or removing a building or other structure. (7)   The right to convert convertible real estate or withdraw withdrawable real estate pursuant to 68 Pa.C.S. Pt. II Subpt. B (relating to condominiums) or D (relating to planned communities). “Extension period.” The period beginning after December 31, 2008, and ending before July 2, 2016. “Government agency.” The Commonwealth, a political subdivision or an agency, department, authority, commission or board of the Commonwealth or a political subdivision. The term includes regional commissions, boards or instrumentalities with the authority to issue approvals. § 11703.3.   Existing approval (a)  Automatic suspension.—For an approval that is granted for or in effect between the beginning of the extension period and July 2, 2013, whether obtained before or after the beginning of the extension period, the running of the period of the approval shall be automatically suspended until July 2, 2016. (a.1)   Cities of the first class.—In cities of the first class and agencies established by such cities, the suspension provided for in subsection (a) shall be valid, for any covered approval, 20 days after the notice from the approval holder to the agency that issued the approval of the approval holder’s intent to exercise his or her rights under the suspension and payment of a fee equal to 50% of the original application fee, but not to exceed $5,000. The agency that issued the approval may prescribe a form of notice. (a.2)  Limitation.—Any government approval granted after July 2, 2013, shall not be extended beyond the normal approval periods of the government agency without the permission or approval of the government agency. (b)  Duration.—The extension period established under this act shall be the maximum approval period authorized under this act and shall supersede the normal time period for approvals relating to development. Nothing in this section shall prohibit the government agency from granting additional extensions as provided by law. (c)  Riparian leases.— (1)   The time period relating to obtaining a building permit under section 1(i) of the act of February 22, 2008 (P.L. 36, No. 4), entitled “An act authorizing the Department of General Services, with the concurrence of the Department of Environmental Protection, to lease to VTE Philadelphia, LP, or its nominee, land within the bed of the Delaware River in the City of Philadelphia; and affirming the authority of the General Assembly to enact certain conveyances,” shall be extended until January 1, 2013. (2)   The time period relating to obtaining a building permit under section 1(i) of the act of February 22, 2008 (P.L. 41, No. 5), entitled “An act authorizing the Department of General Services, with the concurrence of the Department of Environmental Protection, to lease to NCCB Associates, LP, or its nominee, land within the bed of the Delaware River in the City of Philadelphia; and affirming the authority of the General Assembly to enact certain conveyances,” shall be extended until January 1, 2013.

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GOVERNMENT REGULATION

Ch. 41.1

Part IV Ch. 36–40 Insurance Part V Ch. 41–48A Zoning, etc. Part VI Ch. 49–56 Taxation Part VII Ch. 57–63 Litigation Part VIII Ch. 64–67 L/T Part IX Ch. 68–72 Condos, etc. Index

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Part III Ch. 23–35 Mortgages

639

Part II Ch. 15–22 Deeds

30. 53 P.S. § 10101 et seq. 31. 53 P.S. § 10101 et seq.

Part I Ch. 1–14 Brokers

§ 11703.4.   Subsequent changes (a)   Change in law.—A law, regulation or policy enacted, adopted or modified by a government agency during the extension period shall not have the effect of prohibiting or limiting an existing approval during the extension period. (b)  Planning code approval.—When an approval has been granted under the act of July 31, 1968 (P.L. 805, No. 247),30 known as the Pennsylvania Municipalities Planning Code, a subsequent change in a zoning, subdivision or other governing ordinance or plan shall not apply to or affect the right of the applicant to commence or complete the activities authorized by the approval for the duration of the extension period. For purposes of this subsection, the extension period shall be extended for the duration of any litigation, including appeals, relating to an approval which prevents the completion of all or part of the activity authorized by the approval. (c)  Nonexpiration.—An action by a government agency or law to lease, license, grant or otherwise convey rights in the beds of navigable waters of the Commonwealth shall not expire for the duration of the extension period, including time limits relating to the initiation, prosecution or completion of construction. A conveyance of rights under this subsection shall not terminate during the extension period for failure to initiate, prosecute or complete construction. § 11703.5.   Agency verification (a)   Request for verification.— (1)  The holder or recipient of an approval may seek written verification from the issuing government agency for any of the following: (i)   The existence of a valid approval. (ii)   The expiration date of the approval under this act. (2)   The request shall set forth the approval in question and the anticipated expiration date under this act. (b)  Agency action.—Upon receipt of a request under subsection (a), the government agency shall respond in writing affirming or denying the existence of the approval, its expiration date and any issues associated with its validity within 30 days. Except in cities of the first class and agencies established by such cities, failure to respond within 30 days shall result in a deemed affirmation of the existence of the approval and expiration date set forth in the request submitted under subsection (a). The agency may charge a fee of not more than $100 for verification of a residential approval and $500 for verification of a commercial approval under this subsection. (c)   Failure to seek affirmation.—The failure of the holder of an approval to seek verification from a government agency shall not be grounds for termination, revocation or other invalidation of an approval. (d)   Appeals of verification.—A dispute arising under this section shall be appealable in accordance with one of the following applicable laws: (1)   2 Pa.C.S. § 105 (relating to local agency law). (2)   The act of July 31, 1968 (P.L. 805, No. 247),31 known as the Pennsylvania Municipalities Planning Code. § 11703.6.  Applicability (a)  Exceptions.—This act shall not apply to any of the following: (1)   An approval issued to comply with Federal law, the duration or terms of expiration of which is specified or determined by Federal law.

Table of Contents

PART V

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§ 11703.7 DEVELOPMENT PERMIT EXTENSION ACT (2)  An administrative consent order or other enforcement action relating to an approval that is subject to the extension period. (3)  An approval, designation or benefit under the act of October 6, 1998 (P.L. 705, No. 92),32 known as the Keystone Opportunity Zone, Keystone Opportunity Expansion Zone and Keystone Opportunity Improvement Zone Act. (4)   A “One-Call” determination, response or other requirement under the act of December 10, 1974 (P.L. 852, No. 287),33 referred to as the Underground Utility Line Protection Law. (5)  The revocation or modification of an approval or extension of an approval, when the approval authorizes the modification or revocation for cause. (6)   An approval issued by the Department of Transportation, except that approvals in accordance with 67 Pa. Code Ch. 441 (relating to access to and occupancy of highways by driveways and local roads) shall be extended by the department upon the submission of a complete and accurate application throughout the extension period for one-year intervals, subject to the requirements of 67 Pa. Code Ch. 441, including modifications based on changed circumstances. (7)  An approval issued by the Department of Environmental Protection implementing 25 Pa. Code § 93.4a (relating to antidegradation) in connection with surface waters, as defined in 25 Pa. Code § 93.1 (relating to definitions), or wetlands, as defined in 25 Pa. Code § 93.1, which surface waters or wetlands, after the issuance of the approval, and during the extension period, became classified as: (i)  High Quality Waters, pursuant to 25 Pa. Code §§ 93.1 and 93.4b(a) (relating to qualifying as high quality or exceptional value waters); or (ii)   Exceptional Value Waters, pursuant to 25 Pa. Code § 93.4b(b)(1). (8)  An approval issued by the Department of Environmental Protection implementing 25 Pa. Code § 93.4a in connection with surface waters, as defined in 25 Pa. Code § 93.1, or wetlands, as defined in 25 Pa. Code § 93.1, which surface waters or wetlands are classified as Exceptional Value Waters pursuant to 25 Pa. Code § 93.4b(b)(1). (b)   Sewer and water systems.—If an approval is based upon the connection to a sanitary sewer system or water distribution system, the application of the extension period as it relates to capacity shall be contingent upon the availability of sufficient capacity of the system to accommodate the development that is the subject of the extended approval. If sufficient capacity is unavailable at the time it is required to proceed with development under the approval, priority with regard to further distribution or allocation of capacity shall be established by the date on which the approval was obtained. Priority relating to distribution of additional capacity shall be allocated in order of the granting of the original approval for the connection. (c)   Fee.--A government agency which issued an approval may charge a fee to extend the approval that may be no more than 25% of the original application fee. In no event may the fee be more than $5,000. § 11703.7.  Notice By August 5, 2010, each affected government agency shall publish notice of applicability of the extension period to approvals granted by the government agency under this act in the Pennsylvania Bulletin.

32. 73 P.S. § 820.101 et seq. 33. 73 P.S. § 176 et seq.

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GOVERNMENT REGULATION

Ch. 41.1

Part I Ch. 1–14 Brokers Part II Ch. 15–22 Deeds Part III Ch. 23–35 Mortgages

§ 11703.8.  Miscellaneous (a)  Construction.—Nothing in this act shall be construed to modify any requirement of law that is necessary to retain Federal delegation to, or assumption by, the Commonwealth of the authority to implement a Federal law or program. (b)  Authority.—During the extension period, a government agency shall retain the authority to do all of the following: (1)   Suspend or revoke an approval for noncompliance with a written condition of the approval. (2)   Enforce conditions of approvals granted under law prior to the extension period. (3)  Enforce only those conditions in an approval issued under the act of July 31, 1968 (P.L. 805, No. 247),34 known as the Pennsylvania Municipalities Planning Code, that are required to be performed prior to final plan approval.

Table of Contents

PART V

Part IV Ch. 36–40 Insurance Part V Ch. 41–48A Zoning, etc. Part VI Ch. 49–56 Taxation Part VII Ch. 57–63 Litigation Part VIII Ch. 64–67 L/T Part IX Ch. 68–72 Condos, etc.

34. 53 P.S. § 10101 et seq.

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Index

641

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CHAPTER 42 EMINENT DOMAIN CODE 26 Pa.C.S. §§ 101 et seq.

Chapter

 1.  General Provisions   2.   Limitations on Use of Eminent Domain  3.  Procedure to Condemn   5.   Procedure for Determining Damages   7.   Just Compensation and Measure of Damages   9.   Special Damages for Displacement 11.  Evidence

CHAPTER 1 GENERAL PROVISIONS Section

  101.   Short title of title.  102.  Application of title.  103.  Definitions.   201.   Short title of chapter.  202.  Definitions.  203.  Applicability.   204.   Eminent domain for private business prohibited.  205.  Blight.  206.  Extraterritorial takings.   207.   Eminent domain of agricultural property (Reserved).   208.   Eminent domain of land subject to conservation easement.  301.  Venue.  302.  Declaration of taking.  303.  Security required.   304.   Recording notice of condemnation.  305.  Notice to condemnee.  306.  Preliminary objections.   307.  Possession, right of entry and payment of compensation.   308.   Revocation of condemnation proceedings.   309.   Right to enter property prior to condemnation.  310.  Abandonment of project.   501.   Agreement as to damages.   502.   Petition for appointment of viewers.  503.  View.  504.  Appointment of viewers.   505.   Service of notice of view and hearing.   506.   Additional condemnees, mortgagees and intervention.  507.  Joint claims.   508.   Appointment of trustee or guardian ad litem.   509.   Furnishing of plans to viewers.  510.  Powers of viewers.   511.   Administrative matters for viewers’ hearings.  512.  Report of viewers.  513.  Disagreement.   514.   Filing of report of viewers.  515.  Reports.  516.  Right of appeal.  517.  Appeals.  518.  Disposition of appeal.  519.  Allocation of damages.   520.   Waiver of viewers’ proceedings and termination by stipulation.   521.   Liens and distribution of damages.   522.   Payment into court and distribution.

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Part I Ch. 1–14 Brokers

  701.   Just compensation; other damages.  702.  Measure of damages.  703.  Fair market value.   704.   Effect of imminence of condemnation.   705.   Contiguous tracts and unity of use.   706.   Effect of condemnation use on after value.   707.   Removal of machinery, equipment or fixtures.   708.   Expenses incidental to transfer of title.   709.   Condemnee’s costs where no declaration of taking filed.   710.   Limited reimbursement of appraisal, attorney and engineering fees.   711.   Payment on account of increased mortgage costs.   712.   Loss of rentals because of imminence of condemnation.  713.  Delay compensation.  714.  Consequential damages.   715.   Damages for vacation of roads.   716.   Attempted avoidance of monetary just compensation.  901.  Definitions.   902.   Moving and related expenses of displaced persons.   903.   Replacement housing for homeowners.   904.   Replacement housing for tenants and others.  905.  Housing replacement authorization.  906.  Regulations.   907.   Payments not to be considered as income or resources. 1101.  Viewers’ hearing. 1102.   Condemnor’s evidence before viewers. 1103.   Trial in court on appeal. 1104.   Competency of condemnee as witness. 1105.  Evidence generally. 1106.   Use of condemned property.

Part II Ch. 15–22 Deeds Part III Ch. 23–35 Mortgages Part IV Ch. 36–40 Insurance Part V Ch. 41–48A Zoning, etc. Part IX Ch. 68–72 Condos, etc. Index

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§ 103.  Definitions Subject to additional definitions contained in subsequent provisions of this title which are applicable to specific provisions of this title, the following words and phrases when used in this title shall have the meanings given to them in this section unless the context clearly indicates otherwise: “Acquiring agency.” Any entity, including the Commonwealth, vested with the power of eminent domain by the laws of this Commonwealth. This definition is subject to section 901 (relating to definitions). “Acquisition cost.” General damages or, in the event of amicable acquisition, the price paid by the acquiring agency. “Business.” Any lawful activity, except a farm operation, conducted:

Part VII Ch. 57–63 Litigation

§ 102.   Application of title (a)  General rule.—This title provides a complete and exclusive procedure and law to govern all condemnations of property for public purposes and the assessment of damages. (b)  Construction.—Nothing in this title shall be construed: (1)  To affect the jurisdiction or power of the Pennsylvania Public Utility Commission or any statute providing for the assessment of benefits for public improvements on the properties benefited. (2)   To enlarge or diminish the power of condemnation given by law to any condemnor.

Part VI Ch. 49–56 Taxation

§ 101.   Short title of title This title shall be known and may be cited as the Eminent Domain Code.

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(1)   primarily for the purchase, sale, lease or rental of personal or real property or for the manufacture, processing or marketing of products, commodities or any other personal property; (2)   primarily for the sale of services to the public; (3)   primarily for outdoor advertising display purposes if the display must be moved as a result of the project; or (4)   by a nonprofit organization. “Comparable replacement dwelling.” A dwelling that is: (1)   Decent, safe and sanitary. (2)   Adequate in size to accommodate the occupants. (3)   Within the financial means of the displaced person. (4)  Functionally equivalent. (5)   In an area not subject to unreasonable adverse environmental conditions. (6)  In a location generally not less desirable than the location of the displaced person’s dwelling with respect to public utilities, facilities, services and the displaced person’s place of employment. “Condemn.” To take, injure or destroy property by authority of law for a public purpose. “Condemnee.” The owner of a property interest taken, injured or destroyed. The term does not include a mortgagee, judgment creditor or other lienholder. “Condemnor.” The acquiring agency, including the Commonwealth, that takes, injures or destroys property by authority of law for a public purpose. “Court.” The court of common pleas. “Displaced person.” (1)   Except as set forth in paragraph (2) or (3), any of the following: (i)   A condemnee or other person that moves from real property or moves personal property from real property: (A)   as a direct result of a written notice of intent to acquire or the acquisition of the real property, in whole or in part, for a program or project undertaken by an acquiring agency; or (B)  on which such person is a residential tenant or conducts a small business or a farm operation as a direct result of rehabilitation, demolition or other displacing activity for a program or project undertaken by an acquiring agency if the displacement is permanent. (ii)   A person that was in occupancy of the real property on or before the date of acquisition, notwithstanding the termination or expiration of a lease entered into before or after the event giving rise to the displacement. (2)   The term does not include any of the following: (i)  A person that unlawfully occupies the displacement property or occupied the property for the purpose of obtaining assistance under this title. (ii)   In any case in which the acquiring agency acquires real property for a program or project, a person, other than a person that was an occupant of the property at the time it was acquired, that occupies the property on a rental basis for a short term or a period subject to termination when the property is needed for the program or project. (3)  This definition is subject to section 902(a)(2) (relating to moving and related expenses of displaced persons).

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Part I Ch. 1–14 Brokers Part II Ch. 15–22 Deeds Part III Ch. 23–35 Mortgages

“Farm operation.” Any activity conducted solely or primarily for the production of one or more agricultural products or commodities, including timber, for sale or home use and customarily producing these products or commodities in sufficient quantity to be capable of contributing materially to the operator’s support. “Natural disaster.” A disaster officially declared as a natural disaster by the Governor. “Personal property.” Any tangible property not considered to be real property for purposes of general damages under the laws of this Commonwealth. “Program or project.” Any program or project undertaken by or for an acquiring agency as to which it has the authority to exercise the power of eminent domain. “Small business.” A business that has less than 501 employees who are: (1)   working at the site being acquired; or (2)   permanently displaced by a program or project. “Utility.” A public utility as defined in 66 Pa.C.S. § 102 (relating to definitions).

Table of Contents

PART V

CHAPTER 2 Part IV Ch. 36–40 Insurance

LIMITATIONS ON USE OF EMINENT DOMAIN

Part V Ch. 41–48A Zoning, etc. Part VI Ch. 49–56 Taxation Part VII Ch. 57–63 Litigation Part VIII Ch. 64–67 L/T Part IX Ch. 68–72 Condos, etc.

§ 201.   Short title of chapter This chapter shall be known and may be cited as the Property Rights Protection Act. § 202.  Definitions The following words and phrases when used in this chapter shall have the meanings given to them in this section unless the context clearly indicates otherwise: “Agricultural commodity.” As defined under section 2 of the act of June 10, 1982 (P.L. 454, No. 133),1 referred to as the Right-to-Farm Law. “Agricultural operation.” A person engaged commercially in the production of an agricultural commodity that has an anticipated yearly gross income of at least $10,000. “Agricultural property.” Property that is owned or operated by an agricultural operation in the course of the operation’s production, harvesting or preparation for market of an agricultural commodity. The term also includes any residential dwelling or woodlot situated on the property. “Common carrier.” Any and all persons or corporations holding out, offering or undertaking, directly or indirectly, service for compensation to the public for the transportation of passengers or property, or both, or any class of passengers or property, by, through, over, above or under land, water or air, and shall include forwarders, but shall not include contract carriers by motor vehicles, or brokers, or any bona fide cooperative association transporting property exclusively for the members of such association on a nonprofit basis. “Commonwealth agency.” As defined in 2 Pa.C.S. § 101 (relating to definitions). “Condemnee.” A person that owns property subject to the exercise of the power of eminent domain by a condemnor. “Condemnor.” Any of the following which is authorized by law to exercise the power of eminent domain: (1)   The Commonwealth, a Commonwealth agency or an instrumentality or

1. 3 P.S. § 952.

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authority of the Commonwealth. (2)   A political subdivision, an agency of a political subdivision or an instrumentality or authority of a political subdivision. (3)   A public utility as defined in 66 Pa.C.S. § 102 (relating to definitions). (4)   A private entity. (5)   An electrical cooperative corporation under 15 Pa.C.S. Ch. 73 (relating to electric cooperative corporations). “Conservation easement.” As defined under section 3 of the act of June 22, 2001 (P.L.390, No.29),2 known as the Conservation and Preservation Easements Act. “Eminent domain.” The power of the Commonwealth to take private property for public use in return for just compensation. “Open space benefits.” The benefits to the residents of this Commonwealth and its local government units which result from the preservation or restriction of the use of selected predominantly undeveloped open spaces or areas, including, but not limited to: (1)   the protection and conservation of water resources and watersheds, by appropriate means, including, but not limited to, preserving the natural cover, preventing floods and soil erosion, protecting water quality and replenishing surface and ground water supplies; (2)   the protection and conservation of forests and land being used to produce timber crops; (3)   the protection and conservation of farmland; (4)  the protection of existing or planned park, recreation or conservation sites; (5)   the protection and conservation of natural or scenic resources, including, but not limited to, soils, beaches, streams, flood plains, steep slopes or marshes; (6)  the protection of scenic areas for public visual enjoyment from public rights of way; (7)   the preservation of sites of historic, geologic or botanic interest; and (8)   the promotion of sound, cohesive and efficient land development by preserving open spaces between communities. “Private enterprise.” A for-profit or not-for-profit entity or organization. This term does not include any entity or organization that meets the definition of an institution of purely public charity pursuant to the act of November 26, 1997 (P.L. 508, No. 55),3 known as the Institutions of Purely Public Charity Act. “Redevelopment area.” As defined in section 3(n) of the act of May 24, 1945 (P.L. 991, No. 385),4, known as the Urban Redevelopment Law. “Unit of property.” A parcel of real estate or condominium unit, including any interest in common elements with improvements thereon, if any, that is identified by a legal description in a recorded deed or a tax identification number. § 203.  Applicability (a)  Authority.—Except as set forth in subsection (b), the limitations and protections set forth in this chapter apply to the exercise of eminent domain by a condemnor. (b)  Exception.—This chapter does not affect any of the following: 2. 32 P.S. § 5053. 3. 10 P.S. § 371 et seq. 4. 35 P.S. § 1703.

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Table of Contents

PART V

(1)   The jurisdiction or power of the Pennsylvania Public Utility Commission.

(4)   The exercise of eminent domain within a city of the first or second class in areas that were certified, on or before the effective date of this chapter, as blighted under section 2 of the act of May 24, 1945 (P.L. 991, No. 385),6 known as the Urban Redevelopment Law. This paragraph shall expire December 31, 2012.

(c)  Construction.—Nothing in this chapter shall be deemed to expand or enlarge the power of a condemnor to utilize eminent domain.

(b)  Exception.—Subsection (a) does not apply if any of the following apply: (1)   (i)   the condemnee consents to the use of the property for private enterprise; or

(2)   The property is taken by, to the extent the party has the power of eminent domain, transferred or leased to any of the following:

(ii)   A common carrier. (iii)   A private enterprise that occupies an incidental area within a public project, such as retail space, office space, restaurant and food service facility or similar incidental area.

(i)   Removal of a public nuisance. (ii)   Removal of a structure which is:

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Index

5. 55 P.S. § 697.1 et seq. 6. 35 P.S. § 1702.

Part IX Ch. 68–72 Condos, etc.

(A)   beyond repair; or (B)   unfit for human habitation or use. This paragraph does not include activities and structures for which nuisance

Part VIII Ch. 64–67 L/T

(3)  There is, on or associated with the property taken, a threat to public health or safety. This paragraph includes the following:

Part VII Ch. 57–63 Litigation

(i)   A public utility or railroad as defined in 66 Pa.C.S. § 102 (relating to definitions).

Part VI Ch. 49–56 Taxation

(ii)   the condemnee does not file or does not prevail on preliminary objection filed to a declaration of taking for the acquisition of condemnee’s property.

Part V Ch. 41–48A Zoning, etc.

§ 204.   Eminent domain for private business prohibited (a)  Prohibition.—Except as set forth in subsection (b), the exercise by any condemnor of the power of eminent domain to take private property in order to use it for private enterprise is prohibited.

Part IV Ch. 36–40 Insurance

(6)  The exercise of eminent domain within a home rule municipality by a county of the second class A in areas that were certified, on or before the effective date of this chapter, as blighted under section 2 of the Urban Redevelopment Law. This paragraph shall expire December 31, 2012.

Part III Ch. 23–35 Mortgages

(5)  The exercise of eminent domain by a home rule county of the second class A, or a municipality located therein, in areas that were certified, on or before the effective date of this chapter, as blighted under section 2 of the Urban Redevelopment Law. This paragraph shall expire December 31, 2012.

Part II Ch. 15–22 Deeds

(3)   The jurisdiction or power of the Philadelphia Regional Port Authority to exercise eminent domain within a designated port zone for a port facility as defined in the act of July 10, 1989 (P.L. 291, No. 50),5 known as the Philadelphia Regional Port Authority Act.

Part I Ch. 1–14 Brokers

(2)   Any statute providing for the assessment of benefits for public improvement on the ‘properties benefited.

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actions are prohibited under section 4 of the act of June 10, 1982 (P.L. 454, No. 133),7 referred to as the Right-to-Farm Law. (4)   The property taken is abandoned. (5)   The property taken meets the requirements of section 205 (relating to blight). (6)  The property taken is acquired by a condemnor pursuant to section 12.1 of the act of May 24, 1945 (P.L. 991, No. 385),8 known as the Urban Redevelopment Law. (7)   The property taken is acquired for the development of low-income and mixed-income housing projects pursuant to the act of May 28, 1937 (P.L. 955, No. 265),9 known as the Housing Authorities Law, or to be developed using financial ncentives available for the development of low-income and mixedincome housing projects under: (i)   section 42 of the Internal Revenue Code of 1986 (Public Law 99–514, 26 U.S.C. § 42); (ii)   the Housing and Community Development Act of 1974 (Public Law 93–383, 88 Stat. 633); (iii)   the Cranston-Gonzalez National Affordable Housing Act (Public Law 101–625, 42 U.S.C. § 12701 et seq.); (iv)   53 Pa.C.S. Ch. 60 (relating to optional affordable housing funding); (v)   the Brownfields for Housing and Redevelopment Assistance programs of the Department of Community and Economic Development; (vi)   the Homeownership Choice Program and the PennHOMES Program of the Pennsylvania Housing Finance Agency; and (vii)   any successor program to a program under this paragraph. (8)   The property taken is acquired pursuant to the act of June 25, 1999 (P.L. 179, No. 24),10 known as the Economic Development Eminent Domain Law, in order to allow for the removal of blighted properties within the borders of a former military facility located in a county of the second class A. (9)   The property is used or to be used for any road, street, highway, trafficway or for property to be acquired to provide access to a public thoroughfare for a property which would be otherwise inaccessible as the result of the use of eminent domain or for ingress, egress or parking of motor vehicles. § 205.  Blight (a)  Scope.—This section applies notwithstanding the act of May 24, 1945 (P.L. 991, No. 385),11 known as the Urban Redevelopment Law. (b)  Single property.—For purposes of acquiring a single unit of property by eminent domain, a condemnor is authorized or permitted to declare a property, either within or outside of a redevelopment area, to be blighted only if the property is any of the following: (1)   A premises which, because of physical condition or use, is regarded as a 7. 3 P.S. § 954. 8. 35 P.S. § 1712.1. 9. 35 P.S. § 1541 et seq. 10. 73 P.S. § 330.1 et seq. 11. 35 P.S. § 1701 et seq.

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(2)  A premises which, because of physical condition, use or occupancy, is considered an attractive nuisance to children. This paragraph includes an abandoned:

Part I Ch. 1–14 Brokers

public nuisance at common law or has been declared a public nuisance in accordance with the municipality housing, building, plumbing, fire or related codes.

Table of Contents

PART V

(i)  well; Part II Ch. 15–22 Deeds

(ii)  shaft; (iii)  basement; (iv)  excavation; or (v)   unsafe fence or structure.

(5)  A structure from which the utilities, plumbing, heating, sewerage or other facilities have been disconnected, destroyed, removed or rendered ineffective so that the property is unfit for its intended use.

(7)   An unoccupied property which has been tax delinquent for a period of two years.

(9)   An abandoned property. A property shall be considered abandoned under this paragraph if it:

(iii) has been declared abandoned by the owner, including an estate that is in possession of the property. (10)  A property which has defective or unusual conditions of title or no known owners, rendering title unmarketable.

(12)   A property having three or more of the following characteristics: (i)   has unsafe or hazardous conditions that do not meet current use, oc-

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Part IX Ch. 68–72 Condos, etc.

(11)  A property which has environmentally hazardous conditions, solid waste pollution or contamination in a building or on the land which poses a direct and immediate threat to the health, safety and welfare of the community.

Part VIII Ch. 64–67 L/T

(ii)   is a vacant property or vacant or unimproved lot or parcel of ground on which the total of municipal liens on the property for tax or other type of claim of the municipality is in excess of 150%, of the fair market value of the property as established by the Board of Revisions of Taxes or other body with legal authority to determine the taxable value of the property; or

Part VII Ch. 57–63 Litigation

(i)   is a vacant or unimproved lot or parcel of ground on which a municipal lien for the cost of demolition of a structure located on the property remains unpaid for a period of six months;

Part VI Ch. 49–56 Taxation

(8)   A property which is vacant but not tax delinquent and which has not been rehabilitated within one year of the receipt of notice to rehabilitate from the appropriate enforcement agency.

Part V Ch. 41–48A Zoning, etc.

(6)   Any vacant or unimproved lot or parcel of ground in a predominantly built-up neighborhood which, by reason of neglect or lack of maintenance, has become a place for accumulation of trash and debris or a haven for rodents or other vermin.

Part IV Ch. 36–40 Insurance

(4)  A structure which is a fire hazard or is otherwise dangerous to the safety of persons or property.

Part III Ch. 23–35 Mortgages

(3)   A dwelling which, because it is dilapidated, unsanitary, unsafe, vermininfested or lacking in the facilities and equipment required by statute or an applicable municipal code, has been designated by the agency responsible for enforcement of the statute or code as unfit for human habitation.

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cupancy or fire codes; (ii)   has unsafe external and internal accessways; (iii) is being served by an unsafe public street or right-of-way; (iv)   violates the applicable property maintenance code adopted by a municipality and is an immediate threat to public health and safety; (v)  is vacant; (vi)  is located in a redevelopment area with a density of at least 1,000 people per square mile or a redevelopment area with more than 90% of the units of property being nonresidential or a municipality with a density of at least 2,500 people per square mile. (c)  Multiple properties.— (1)   For purposes of acquiring multiple units of property by eminent domain, a condemnor is authorized or permitted to declare an area, either within or outside of a redevelopment area, to be blighted only if: (i)   a majority of the units of property meet any of the requirements under subsection (b) and represent a majority of the geographical area; or (ii)   properties representing a majority of the geographical area meet one or more of the conditions set forth in subsection (b)(1) through (11) or satisfy the conditions of subsection (b)(12) that are necessary for a condemnor to declare them blighted under subsection (b) and at least one-third of the units of property meet two or more of the requirements under subsection (b)(1) through (11) or satisfy the conditions of subsection (b)(12) and one or more of the requirements under subsection (b)(1) through (11). (2)   A condemnor may use eminent domain to acquire any unit of property within a blighted area so declared pursuant to this section. (3)   Properties owned by the condemnor within such geographical area may be included in any calculation of whether such units constitute a majority of the geographical area under this subsection. (4)   For purposes of this subsection, a building containing multiple condominium units shall be treated as one unit of property. (d)  Redesignation.—If a condemnor seeks to add or enlarge a blighted area, it must find that the area meets the requirements of subsection (b) or (c) at the time of the addition or enlargement. (e)  Expiration.—The declaration of a blighted area shall expire after 20 years. § 206.   Extraterritorial takings (a)  General rule.—Except as set forth in subsection (b), no political subdivision shall exercise eminent domain authority against land that is situated in another political subdivision without the approval by resolution of the governing body of the political subdivision in which the land is situated. (b)  Exceptions.—This section shall not apply to any of the following: (1)  A school district which exercises eminent domain authority against property located within its geographic boundaries. (2)  An authority formed under 53 Pa.C.S. Ch. 56 (relating to municipal authorities) which exercises eminent domain authority against property located within its geographic boundaries. (3)   The exercise of eminent domain authority under 74 Pa.C.S. § 5920 (relating to acquisition of air rights) Section 2.12 Repeals are as follows:

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(2)   As much of section 2 of the act of May 24, 1945 (P.L.991, No.385), known as the Urban Redevelopment Law, as relates to condemnation of blighted premises and that is inconsistent with this act is repealed.

Section 3.13 (a) Chapter 2 shall apply to the exercise of the power of eminent domain on or after the effective date of this section.

Section 4.   This act shall take effect in 120 days. Approved May 4, 2006.

Part III Ch. 23–35 Mortgages

(b)  For property acquired pursuant to 26 Pa.C.S. § 205, this act shall not apply to units of property identified in a redevelopment proposal approved by a governing body before the effective date of this section.

Part II Ch. 15–22 Deeds

(3)   All other acts and parts of acts are repealed insofar as they are inconsistent with this act.

Part I Ch. 1–14 Brokers

(1)   The General Assembly declares that the repeal under paragraph (2) is necessary to effectuate the addition of 26 Pa.C.S. § 205.

Table of Contents

PART V

§ 207.   Eminent domain of agricultural property

Part VI Ch. 49–56 Taxation

(c)  Disapproval.—The Agricultural Lands Condemnation Approval Board shall disapprove the proposed condemnation if the board determines the condemnor is not authorized under this chapter to take the agricultural property by eminent domain.

Part V Ch. 41–48A Zoning, etc.

(b)  Determination of blight.—The exercise of eminent domain powers based on a condition of the agricultural property shall not be authorized under section 205 unless the Agricultural Lands Condemnation Approval Board determines the exercise is necessary to protect the health and safety of the community.

Part IV Ch. 36–40 Insurance

(a)  Approval required.—Notwithstanding any provision of law to the contrary, approval by the Agricultural Lands Condemnation Approval Board shall be required prior to the exercise of eminent domain authority by any agency of the Commonwealth or political subdivision or municipal authority on agricultural property under section 204(b)(3) (relating to eminent domain for private business prohibited) or 205 (relating to blight). Approval shall be obtained in accordance with section 13 of the act of June 30, 1981 (P.L. 128, No. 43),14 known as the Agricultural Area Security Law.

§ 208.   Eminent domain of land subject to conservation easement.

Index

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Part IX Ch. 68–72 Condos, etc.

651

Part VIII Ch. 64–67 L/T

12. 35 P.S. § 1702 note. 13. 26 Pa.C.S.A. § 205 note. 14. 3 P.S. § 913.

Part VII Ch. 57–63 Litigation

(a)  Approval required.—Except as provided in subsection (g), no political subdivision, authority, public utility or other body having or exercising powers of eminent domain shall condemn any land subject to a conservation easement for any purpose, unless prior approval has been obtained from the orphans’ court of the county in which the land is located. The condemnation approval specified by this subsection shall not be required for an underground public utility facility that does not permanently impact the open space benefits protected by the conservation easement. The condemnation approval specified by this subsection shall not be required for any public utility facility or other project that is subject to approval by a Federal agency, the necessity for the propriety and environmental effects of which has been reviewed and ratified or approved by the Pennsylvania Public Utility Commission or the Federal Energy Regulatory Commission, regardless of whether the right to establish and maintain such underground or other public

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utility facility is obtained by condemnation or by agreement with the owner. (b)  Determination of blight.—The exercise of eminent domain powers based on a condition of the land subject to a conservation easement shall not be authorized under section 205 (relating to blight) unless the orphans’ court determines the exercise is necessary to protect the health and safety of the community. (c)  Notice.—Any condemnor wishing to condemn property, the approval for which is required under this section, shall, at least 30 days prior to taking such action, notify the orphans’ court that the action is contemplated. (d)  Review.—The orphans’ court shall review the proposed condemnation and approve the proposed condemnation only if the court determines there is no reasonable and prudent alternative to the utilization of the land subject to a conservation easement for the project. (e)   Findings and decisions.—The orphans’ court shall render findings and decisions of the court’s review under subsection (d) and shall report the findings and decisions to the proposed condemnor. (f)  Injunctions.—The orphans’ court may request the Attorney General to bring an action to enjoin a condemnor from violating any provision of this section. (g)  Exceptions.—This section shall not apply to any of the following: (1)   Emergency projects where, in the discretion of the condemning entity, the taking is reasonably necessary for the protection of life or property. (2)   Condemnations by an agency of the Commonwealth for any purpose.

CHAPTER 3 PROCEDURE TO CONDEMN § 301.  Venue (a)  General rule.—A condemnation proceeding shall be brought in the court of the county in which the property is located or, if the property is located in two or more counties, in the court of any one of the counties. (b)  Multiple counties.—Where the property is located in two or more counties and a proceeding is commenced in the court of one of the counties, all subsequent proceedings regarding the same property shall be brought in the same county. § 302.   Declaration of taking (a)   Condemnation and passage of title.— (1)   Condemnation under the power of condemnation given by law to a condemnor shall be effected only by the filing in court of a declaration of taking with the security required under section 303(a) (relating to security required). (2)   The title which the condemnor acquires in the property condemned shall pass to the condemnor on the date of the filing, and the condemnor shall be entitled to possession under section 307 (relating to possession, right of entry and payment of compensation). (b)  Contents.—The declaration of taking shall be in writing and executed by the condemnor and shall be captioned as a proceeding in REM and contain the following: (1)   The name and address of the condemnor. (2)   A specific reference to the statute and section under which the condem-

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nation is authorized.

(4)   A brief description of the purpose of the condemnation.

(7)   A statement specifying where a plan showing the condemned property may be inspected in the county in which the property taken is located.

Part III Ch. 23–35 Mortgages

(6)   A statement of the nature of the title acquired, if any.

Part II Ch. 15–22 Deeds

(5)  A description of the property condemned, sufficient for identification, specifying the municipal corporation and the county or counties where the property taken is located, a reference to the place of recording in the office of the recorder of deeds of plans showing the property condemned or a statement that plans showing the property condemned are on the same day being lodged for record or filed in the office of the recorder of deeds in the county in accordance with section 304 (relating to recording notice of condemnation).

Part I Ch. 1–14 Brokers

(3)  A specific reference to the action, whether by ordinance, resolution or otherwise, by which the declaration of taking was authorized, including the date when the action was taken and the place where the record may be examined.

(8)   A statement of how just compensation has been made or secured.

(e)  Filing.—The condemnor shall file within one year of the action authorizing the declaration of taking a declaration of taking covering all properties included in the authorization not otherwise acquired by the condemnor within this time.

(1)   Where a condemnor has the power of taxation, it shall not be required to file a bond with the declaration of taking.

§ 304.   Recording notice of condemnation (a)   County of recording.— (1)   The condemnor, upon filing its declaration of taking, shall on the same

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Part IX Ch. 68–72 Condos, etc.

(c)  Insufficient security.—The court, upon preliminary objections of the condemnee under and within the time set forth in section 306(a) (relating to preliminary objections), may require the condemnor to give bond and security as the court deems proper if it appears to the court that the bond or power of taxation of the condemnor is insufficient security.

Part VIII Ch. 64–67 L/T

(2)   The funds raised or authorized by law to be raised by the power of taxation of the condemnor shall be deemed pledged and are made security for the payment of the damages determined by law.

Part VII Ch. 57–63 Litigation

(b)   Pledge of tax revenues.—

Part VI Ch. 49–56 Taxation

§ 303.   Security required (a)  Bond.—Except as provided in subsection (b), every condemnor shall give security to effect the condemnation by filing with the declaration of taking its bond, without surety, to the Commonwealth for the use of the owner of the property interests condemned, the condition of which shall be that the condemnor shall pay the damages determined by law.

Part V Ch. 41–48A Zoning, etc.

(d)  Fee.—The prothonotary shall charge one fee for filing each declaration of taking, which shall be the same regardless of the number of properties or condemnees included.

Part IV Ch. 36–40 Insurance

(c)   More than one property included in declaration.—The condemnor may include in one declaration of taking any or all of the properties specified in the action by which the declaration of taking was authorized.

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day lodge for record a notice of the declaration in the office of the recorder of deeds of the county in which the property is located. (2)  If the property is located in two or more counties, the notice shall be recorded in each county. (b)   Notice and recording requirements.— (1) The notice shall specify: (i)   The court term and number of the declaration of taking. (ii)   The date it was filed. (iii)   A description or plan of the property condemned sufficient for identification. (iv)  The names of the owners of the property interests condemned, as reasonably known to the condemnor. (2)   The notices shall be indexed in the deed indices showing the condemnee set forth in the notice as grantor and the condemnor as grantee. (3)   If plans are to be recorded as part of the notice, they shall be submitted on standard legal size paper. If plans are to be filed as part of the notice, they shall be in legible scale and filed in a condemnation book or file or microfilmed, with a notation as to the condemnation book and page number, file number or microfilm number to be made by the recorder on the margin of the notice. (4)   Upon the notice being assigned a book and page number by the recorder of deeds, the condemnor shall file with the prothonotary under the caption of the declaration of taking a memorandum of the book and page number in which the notice is recorded. (c) Fees.—The recorder shall receive as a fee for recording each notice the sums as provided by the act of June 12, 1919 (P.L. 476, No. 240),1 referred to as the Second Class County Recorder of Deeds Fee Law, and the act of April 8, 1982 (P.L. 310, No. 87),2 referred to as the Recorder of Deeds Fee Law. § 305.   Notice to condemnee (a)  Written notice.—Within 30 days after the filing of the declaration of taking, the condemnor shall give written notice of the filing to the condemnee, to any mortgagee of record and to any lienholder of record. (b)  Service.— (1)   The notice shall be served, within or without this Commonwealth, by any competent adult in the same manner as in a civil action or by registered mail to the last known address of the person being served. (2)   If service cannot be made in the manner set forth under paragraph (1), then service shall be made by posting a copy of the notice upon the most public part of the property and by publication of a copy of the notice, omitting the plot plan required by subsection (c)(9), one time each in one newspaper of general circulation and the legal journal, if any, published in the county. (c)  Contents.—The notice to be given the condemnee shall state: (1)   The caption of the case. (2)   The date of filing of the declaration of taking and the court term and number. (3)   The name of the condemnee to whom it is directed. (4)   The name and address of the condemnor.

1. 16 P.S. §§ 11411, 11412. 2. 42 P.S. § 21051 et seq.

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(6)  A specific reference to the action, whether by ordinance, resolution or otherwise, by which the declaration of taking was authorized, including the date when the action was taken and the place where the record may be examined. (8)   A statement that the condemnee’s property has been condemned and a reasonable identification of the property.

(10)   A statement of the nature of the title acquired. (11)   A statement specifying where a plan showing the condemned property may be inspected in the county in which the property taken is located. (12)   A statement of how just compensation has been made or secured.

(e)   Proof of service.—The condemnor shall file proof of service of the notice.

(1)  Within 30 days after being served with notice of condemnation, the condemnee may file preliminary objections to the declaration of taking. (2)   The court upon cause shown may extend the time for filing preliminary objections.

(i)  The power or right of the condemnor to appropriate the condemned property unless it has been previously adjudicated. (ii)   The sufficiency of the security. (iv)   Any other procedure followed by the condemnor.

(c)  Grounds to be stated.—Preliminary objections shall state specifically the grounds relied on. (d)  When raised.—All preliminary objections shall be raised at one time and in one pleading. They may be inconsistent.

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(e)  Service.—The condemnee shall serve a copy of the preliminary objections on the condemnor within 72 hours after filing them.

Part IX Ch. 68–72 Condos, etc.

(b)  Waiver.—Failure to raise by preliminary objections the issues listed in subsection (a) shall constitute a waiver. Issues of compensation may not be raised by preliminary objections.

Part VIII Ch. 64–67 L/T

(iii)   The declaration of taking.

Part VII Ch. 57–63 Litigation

(3)  Preliminary objections shall be limited to and shall be the exclusive method of challenging:

Part VI Ch. 49–56 Taxation

§ 306.   Preliminary objections (a)   Filing and exclusive method of challenging certain matters.—

Part V Ch. 41–48A Zoning, etc.

(d)  Compliance.—Service of a copy of the declaration of taking, together with the information and notice required by subsection (c)(2), (8), (9) and (13), shall constitute compliance with the notice requirements of this section.

Part IV Ch. 36–40 Insurance

(13)  A statement that, if the condemnee wishes to challenge the power or the right of the condemnor to appropriate the condemned property, the sufficiency of the security, the procedure followed by the condemnor or the declaration of taking, the condemnee must file preliminary objections within 30 days after being served with notice of condemnation.

Part III Ch. 23–35 Mortgages

(9)  In the case of a partial taking, a plot plan showing the condemnee’s entire property and the area taken.

Part II Ch. 15–22 Deeds

(7)   A brief description of the purpose of the condemnation.

Part I Ch. 1–14 Brokers

(5)   A specific reference to the statute and section under which the condemnation action is authorized.

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(f)  Disposition.— (1)   The court shall determine promptly all preliminary objections and make preliminary and final orders and decrees as justice shall require, including the revesting of title. (2)   If an issue of fact is raised, the court shall take evidence by depositions or otherwise. (3)   The court may allow amendment or direct the filing of a more specific declaration of taking. (g)   Costs and expenses.— (1)   If preliminary objections which have the effect of terminating the condemnation are sustained, the condemnor shall reimburse the condemnee for reasonable appraisal, attorney and engineering fees and other costs and expenses actually incurred because of the condemnation proceedings. (2)   The court shall assess costs and expenses under this subsection. § 307.   Possession, right of entry and payment of compensation (a)   Possession or right of entry of condemnor.— (1)   (i)   The condemnor, after the expiration of the time for filing preliminary objections by the condemnee to the declaration of taking, shall be entitled to possession or right of entry upon payment of or a written offer to pay to the condemnee the amount of just compensation as estimated by the condemnor. (ii)   The condemnor shall be entitled to possession or right of entry upon an easement without the payment of or offer to pay the estimated just compensation if the condemnor has the right to assess the property for benefits. (iii)   If a condemnee or any other person then refuses to deliver possession or permit right of entry, the prothonotary upon praecipe of the condemnor shall issue a rule, returnable in five days after service upon the condemnee or the other person, to show cause why a writ of possession should not issue. (iv)   The court, unless preliminary objections warranting delay are pending, may issue a writ of possession conditioned except as provided in this subsection upon payment to the condemnee or into court of the estimated just compensation and on any other terms as the court may direct. (2)  A court may issue a writ of possession to a condemnor prior to the disposition of preliminary objections. (i)   If it is finally determined that a condemnation is invalid in a case in which preliminary objections challenge the validity of a right-of-way or easement for occupation by a utility, the affected owners may recover damages for injuries sustained by taking possession under this paragraph and are entitled to appropriate equitable relief. (ii)  If it is finally determined that any other condemnation is invalid after the granting of possession under this paragraph, the affected owners may recover costs and expenses under section 306(g) (relating to preliminary objections) and are entitled to disposition under section 306(f). (b)   Tender of possession or right of entry by condemnee.— (1)   If within 60 days from the filing of the declaration of taking the condemnor has not paid just compensation as provided in subsection (a), the condemnee may tender possession or right of entry in writing, and the condemnor shall then make payment of the just compensation due the condemnee as estimated by the condemnor. (2)   If the condemnor fails to make the payment, the court, upon petition of the condemnee, may compel the condemnor to file a declaration of estimated

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(3)  The court may, after hearing, enter judgment for the amount of the estimated just compensation.

Part I Ch. 1–14 Brokers

just compensation or, if the condemnor fails or refuses to file the declaration, may at the cost of the condemnor appoint an impartial expert appraiser to estimate just compensation.

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PART V

(c)   Compensation without prejudice.— (1)   The compensation paid under subsections (a) and (b) shall be without prejudice to the rights of either the condemnor or the condemnee to proceed to a final determination of the just compensation, and any payments made shall be considered only as payments pro tanto of the just compensation as finally determined.

Part II Ch. 15–22 Deeds

(2)   Following the rendition of the verdict, the court shall mold the verdict to deduct the estimated just compensation previously paid by the condemnor.

Part III Ch. 23–35 Mortgages

(3)   In no event shall the condemnee be compelled to pay back to the condemnor the compensation paid under subsection (a) or (b), even if the amount of just compensation as finally determined is less than the compensation paid.

(2)   The title shall then revest in the condemnee as of the date of the filing of the declaration of taking, and all mortgages and other liens existing as of that date and not thereafter discharged shall be reinstated. (1)  Recorded in the office of the recorder of deeds of the county in which the property taken is located, with the condemnor as the grantor and the condemnee as the grantee.

(c)  Fees.—The fees payable to the recorder for recording the notice of relinquishment shall be in the same amounts as provided in section 304(c)(relating to recording notice of condemnation).

(e)  Agreement.—The condemner and the condemnee, without the filing of a declaration of relinquishment, may by agreement effect a revesting of title in the condemnee which agreement shall be properly recorded. (a)  General rule.—Prior to the filing of the declaration of taking, the condemnor or its employees or agents shall have the right to enter upon any land or improvement in order to make studies, surveys, tests, soundings and appraisals.

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(b)  Notice to owner required.—The owner of the land or the party in whose name the property is assessed shall be notified ten days prior to entry

Part IX Ch. 68–72 Condos, etc.

§ 309.   Right to enter property prior to condemnation

Part VIII Ch. 64–67 L/T

(d)   Costs and expenses.—Where condemned property is relinquished, the condemnee shall be reimbursed by the condemnor for reasonable costs and expenses as provided in section 306(g) (relating to preliminary objections).

Part VII Ch. 57–63 Litigation

(2) Served on the condemnee, any mortgagee of record and any lienholder of record in the same manner as provided for service of the declaration of taking.

Part VI Ch. 49–56 Taxation

(b)  Notice.—Notice of the relinquishment shall be:

Part V Ch. 41–48A Zoning, etc.

(1)   The condemnor, by filing a declaration of relinquishment in court within two years from the filing of the declaration of taking and before having made the payment provided in section 307(a) or (b) (relating to possession, right of entry and payment of compensation) or as to which the condemnee has not tendered possession of the condemned property as provided in section 307, may relinquish all or any part of the property condemned that it has not taken actual possession of for use in the improvement.

Part IV Ch. 36–40 Insurance

§ 308.  Revocation of condemnation proceedings (a)   Declaration of relinquishment.—

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on the property. (c)  Damages.— (1)  Any actual damages sustained by the owner of a property interest in the property entered upon by the condemnor shall be paid by the condemnor. (2)   Damages shall be assessed by the court, or the court may refer the matter to viewers to ascertain and assess the damages sustained by the condemnee. (d)  Construction.—The exercise of this right of entry by the condemnor shall neither constitute a condemnation nor be interpreted as a notice of an intent to acquire the real property. § 310.   Abandonment of project (a)  Disposition of property.—If a condemnor has condemned a fee and then abandons the purpose for which the property has been condemned, the condemnor may dispose of it by sale, lease, gift, devise or other transfer with the following restrictions: (1)   If the property is undeveloped or has not been substantially improved, it may not be disposed of within ten years after condemnation without first being offered to the condemnee at the same price paid to the condemnee by the condemnor. (2)   If the property is located outside the corporate boundaries of a county of the first or second class and is undeveloped or has not been substantially improved and was devoted to agricultural use at the time of the condemnation, it may not be disposed of within 21 years after condemnation without first being offered to the condemnee at the same price paid to the condemnee by the condemnor. (3)   If the property is undeveloped or has not been substantially improved and the offers required to be made under paragraphs (1) and (2) have not been accepted, the property shall not be disposed of by any condemnor, acquiring agency or subsequent purchaser for a nonpublic use or purpose within 21 years after condemnation. Upon petition by the condemnor, the court may permit disposal of the property in less than 21 years upon proof by a preponderance of the evidence that a change in circumstances has abrogated the original public purpose for which the property was taken. (b)  Notice.—The condemnee shall be served with notice of the offer in the same manner as prescribed for the service of notices in section 305(b) (relating to notice to condemnee) and shall have 90 days after receipt of notice to make written acceptance. (c)   Certain conditional offers prohibited.—The condemnor may not condition any offer required to be made to a condemnee under subsection (a) on the payment by the condemnee of additional fees, real estate taxes or payments in lieu of taxes or other costs. (d)  Definitions.—As used in this section, the following words and phrases shall have the meanings given to them in this subsection: “Agricultural commodity.” As defined in section 2 of the act of June 10, 1982 (P.L. 454, No. 133),3 referred to as the Right-to-Farm Law. “Agricultural use.” Land which is used for the purpose of producing an agricultural commodity or is devoted to and meets the requirements and qualifications for payments or other compensation pursuant to a soil conservation program under an agreement with an agency of the Federal Government. Land contain3. 3 P.S. § 952.

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CHAPTER 5

(2)  The date of the filing of the declaration of taking and whether any preliminary objections have been filed and remain undisposed of. (3)   In the case of a petition of a condemnee or displaced person, the name of the condemnor.

(5)   A brief description of the property acquired. (6)   A request for the appointment of viewers to ascertain just compensation.

(c)   Condemnation where no declaration of taking has been filed.—

(2)   The court shall determine whether a condemnation has occurred, and, if the court determines that a condemnation has occurred, the court shall determine the condemnation date and the extent and nature of any property interest condemned.

(d)  Separate proceedings.—The court, in furtherance of convenience or to avoid prejudice, may, on its own motion or on motion of any party, order separate viewers’ proceedings or trial when more than one property has been included in the petition.

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Part IX Ch. 68–72 Condos, etc.

(4)   A copy of the order and any modification shall be filed by the condemnor in the office of the recorder of deeds of the county in which the property is located and shall be indexed in the deed indices showing the condemnee as grantor and the condemnor as grantee.

Part VIII Ch. 64–67 L/T

(3)   The court shall enter an order specifying any property interest which has been condemned and the date of the condemnation.

Part VII Ch. 57–63 Litigation

(1)   An owner of a property interest who asserts that the owner’s property interest has been condemned without the filing of a declaration of taking may file a petition for the appointment of viewers substantially in the form provided for in subsection (a) setting forth the factual basis of the petition.

Part VI Ch. 49–56 Taxation

(b)  Property included in condemnor’s petition.—The condemnor may include in its petition any or all of the property included in the declaration of taking.

Part V Ch. 41–48A Zoning, etc.

(4)  The names and addresses of all condemnees, displaced persons and mortgagees known to the petitioner to have an interest in the property acquired and the nature of their interest.

Part IV Ch. 36–40 Insurance

(1)   A caption designating the condemnee or displaced person as the plaintiff and the condemnor as the defendant.

Part III Ch. 23–35 Mortgages

§ 502.   Petition for appointment of viewers (a)  Contents of petition.—A condemnor, condemnee or displaced person may file a petition requesting the appointment of viewers, setting forth:

Part II Ch. 15–22 Deeds

PROCEDURE FOR DETERMINING DAMAGES § 501.   Agreement as to damages At any stage of the proceedings, the condemnor and the condemnee may agree upon all or any part or item of the damages and proceed to have those parts or items not agreed upon assessed as provided in this chapter. The condemnor may make payment of any part or item agreed upon.

Part I Ch. 1–14 Brokers

ing a farmhouse or other buildings related to farming shall be deemed to be in agricultural use. The term includes a woodlot and land which is rented to another person and used for the purpose of producing an agricultural commodity.

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§ 503. View In every proceeding: (1)   At least one of the viewers appointed shall be an attorney at law who shall be chairman of the board and who shall attend the view. (2)   At least two of the three viewers appointed shall view the property in question. § 504.   Appointment of viewers (a)   Court to appoint.— (1)   Upon the filing of a petition for the appointment of viewers, the court, unless preliminary objections to the validity of the condemnation or jurisdiction warranting delay are pending, shall promptly appoint three viewers who shall view the premises, hold hearings and file a report. (2)   In counties of the first class, the court may appoint an alternate viewer in addition to the three viewers specifically appointed. (3)   The prothonotary shall promptly notify the viewers of their appointment unless a local rule provides another method of notification. (4)   No viewer shall represent a client or testify as an expert witness before the board. (b)   Service of petition for the appointment of viewers and order appointing viewers.—The petitioners shall promptly send to all other parties by registered mail, return receipt requested, a certified true copy of the petition for the appointment of viewers and a copy of the court order appointing the viewers if an order has been entered. A copy of the petition and order, if entered, shall also be mailed to all mortgagees and other lienholders of record. (c)  Notice of views and hearings.—The viewers shall give notice of the time and place of all views and hearings. The notice shall be given to all parties by not less than 30 days written notice by registered mail, return receipt requested. (d)  Preliminary objections.— (1)   Any objection to the appointment of viewers may be raised by preliminary objections filed within 30 days after receipt of notice of the appointment of viewers. (2)   Objections to the form of the petition or the appointment or the qualifications of the viewers in any proceeding or to the legal sufficiency or factual basis of a petition filed under section 502(c) (relating to petition for appointment of viewers) are waived unless included in preliminary objections. (3)   An answer with or without new matter may be filed within 20 days of service of preliminary objections, and a reply to new matter may be filed within 20 days of service of the answer. (4)   The court shall determine promptly all preliminary objections and make any orders and decrees as justice requires. (5)   If an issue of fact is raised, the court shall conduct an evidentiary hearing or order that evidence be taken by deposition or otherwise, but in no event shall evidence be taken by the viewers on this issue. § 505.   Service of notice of view and hearing (a)  General rule.—Notice of the view and hearing shall be served, within or without this Commonwealth, by any competent adult in the same manner as a civil action or by registered mail, return receipt requested, to the last known address of the condemnee and condemnor.

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(b)  Notice.—

(2)  If these persons have not received 20 days’ notice of the hearing, the viewers shall, upon request, adjourn the hearing to allow notice.

(b)   Apportionment of damages.—The award of the viewers or the verdict on appeal from the viewers shall, first, fix the total amount of’ damages for the property and, second, apportion the total amount of damages between or among the several claimants entitled to damages.

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(c)  Copies to condemnee.—Copies of’ the plans shall be furnished at the same time, without cost, to the condemnee upon written request.

Part IX Ch. 68–72 Condos, etc.

(b)  Supplemental plans.—If, in the opinion of the viewers, the plans are insufficient, the viewers may require the submission of supplemental plans.

Part VIII Ch. 64–67 L/T

§ 509.   Furnishing of plans to viewers (a)   Duty of condemnor.—The condemnor shall provide the viewers at or before the view with a plan showing the entire property involved, the improvements, the extent and nature of the condemnation and any other physical data, including grades, as may be necessary for the proper determination of just compensation.

Part VII Ch. 57–63 Litigation

(c)  Separate hearings.—Claims for special damages under section 902 (relating to moving and related expenses of displaced persons) may be heard or tried separately. § 508.   Appointment of trustee or guardian ad litem The court on its own motion may, or on petition of any party in interest shall, appoint a trustee ad litem or guardian ad litem, as may be appropriate, in accordance with general rules.

Part VI Ch. 49–56 Taxation

§ 507.   Joint claims (a)  Required.—The claims of all the owners of the condemned property, including joint tenants, tenants in common, life tenants, remaindermen, owners of easements or ground rents and all others having an interest in the property and the claims of all tenants, if any, of the property, shall be heard or tried together.

Part V Ch. 41–48A Zoning, etc.

(c)  Intervention.—The court may permit a mortgagee, judgment creditor or other lien-holder to intervene in the proceedings where the person’s interest is not adequately protected, but a person shall not be a party to the proceedings unless the person has intervened.

Part IV Ch. 36–40 Insurance

(1)  The viewers shall notify by written notice all persons whose names are furnished under subsection (a) of the pendency of the proceedings and of subsequent hearings.

Part III Ch. 23–35 Mortgages

§ 506.   Additional condemnees, mortgagees and intervention (a)  Identification.—The condemnee, at or before the hearing at which the claim is presented, shall furnish the viewers and the condemnor with the names and addresses of all other condemnees known to the condemnee to have an interest in his property and the nature of their interests and the names and addresses of all mortgagees and lienholders of record known to the condemnee.

Part II Ch. 15–22 Deeds

(c)  Proof of service.—Proof of service and the manner of service shall be attached to the viewers’ report.

Part I Ch. 1–14 Brokers

(b)  Public posting.—If service cannot be made in the manner set forth in subsection (a), then service shall be made by posting a copy of the notice upon a public part of the property and by publication, at the cost of the condemnor, once in a newspaper of general circulation and once in the legal publication, if any, designated by rule or order of court for publication of legal notices, published in the county.

Table of Contents

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(d)   Condemnor to pay for condemnee cost.—If the condemnor does not furnish a plan or the condemnor’s plans are insufficient, the court, on application of the condemnee, may charge to the condemnor, as costs, reasonable expenses for plans furnished by the condemnee. § 510.   Powers of viewers (a) Proceedings.— (1)   The viewers may adjourn the proceedings from time to time. Upon request of the viewers or a party, the court which appointed the viewers shall issue a subpoena to testify or to produce books and documents. (2)   All the viewers shall act unless prevented by sickness or other unavoidable cause, but a majority of the viewers may hear, determine, act upon and report all matters relating to the view for which they were appointed. (b)  Construction.—The provisions of this section shall not be affected by the appointment of an alternate viewer as provided for in section 504 (relating to appointment of viewers). § 511.   Administrative matters for viewers’ hearings (a)  Facilities.—All viewers’ hearings shall be held publicly in a suitable place within the county designated by the court. (b)  Stenographic notes.—Whenever in the opinion of the viewers it is desirable, accurate stenographic notes of hearings shall be taken, and copies of the notes shall be furnished to the parties interested when desired upon payment of a sum fixed by the rules and regulations of the respective court. § 512.   Report of viewers The viewers shall file a report which shall include in brief and concise paragraph form: (1)   The date of their appointment as viewers. (2)   A reference to the notices of the time and place of view and hearing with proof of service of notices, which shall be attached to the report. (3)  A copy of the plan showing the extent of the taking or injury upon which the viewers’ award is predicated and a statement of the nature of the interest condemned. (4)   The date of the filing of the declaration of taking. (5)   A schedule of damages awarded and benefits assessed, to and by whom payable, and for which property, separately stated as follows: general damages, moving and removal expenses, business dislocation damages and other items of special damages authorized by this title and the date from which damages for delay shall be calculated. (6)   In the case of a partial taking, a statement as to the amount of the general damages attributable as severance damages to the part of the property not taken if the apportionment has been requested in writing by the condemnee. (7)   Where there are several interests in the condemned property, a statement of the total amount of damages and the distribution between or among the several claimants. (8)   Whether there are other claimants to any interest or estate in the property condemned and the viewers’ determination of the extent, if any, of each interest in the property and in the award. (9)   Their rulings on any written requests for findings of fact and conclusions of law submitted to them.

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Part III Ch. 23–35 Mortgages Part IV Ch. 36–40 Insurance Part V Ch. 41–48A Zoning, etc. Part VI Ch. 49–56 Taxation Part VII Ch. 57–63 Litigation Part VIII Ch. 64–67 L/T Part IX Ch. 68–72 Condos, etc. Index

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(10)   Other matters they deem relevant. § 513.  Disagreement If a majority of the viewers do not agree on a decision, three new viewers shall be appointed by the court upon application of any interested party. § 514.   Filing of report of viewers (a)  Time period for filing.—The viewers shall file their report within 30 days of their final hearing or within 30 days from the filing of the transcription of the stenographic notes of testimony. The transcription shall be filed within 30 days of the final hearing. (b)   Copy of report and notice to parties.—Ten days before the filing of their report, the viewers shall mail a copy of the report to all parties or their attorneys of record, with notice of the date of the intended filing and that the report shall become final unless an appeal is filed within 30 days from the date the report is filed. (c)   Correction of errors.—Prior to the filing of their report, the viewers may correct any errors in the report and give notice to the persons affected. (d)  Other entities to receive report.—A copy of the report, when filed, shall also be mailed to all mortgagees of record and other lienholders of record. § 515.  Reports (a)   Multiple properties or claims.—The viewers may include in one report one or more properties or claims under section 902 (relating to moving and related expenses of displaced persons) referred to them under the same or separate petitions if the properties are included in the same declaration of taking. (b)  Expenses and damages.—The viewers may file a separate report for expenses and damages under section 902. (c)  Finality.—Each report shall be final as to the property or properties included and subject to separate appeal. § 516.   Right of appeal (a)   Extent of right.— (1)   Any party aggrieved by the decision of the viewers may appeal to the court. The appeal shall raise all objections of law or fact to the viewers’ report. (2)  The appeal shall be signed by the appellant or an attorney or agent, and no verification shall be required. (3)   Any award of damages or assessment of benefits, as the case may be, as to which no appeal is taken shall become final as of course and shall constitute a final judgment. (b)  Consolidation.—The count, on its own motion or on application of any party in interest, may consolidate separate appeals involving only common questions of law as one proceeding. (c)  Cross appeals.—If a timely appeal is filed by a party, any other party may file an appeal within 15 days of the date on which the first appeal was filed. An appeal may be taken from less than all of an award. (d)  Withdrawal.—Prior to the beginning of testimony, any party may withdraw its appeal without the consent of the other parties. § 517.  Appeals (a)  Contents.—The appeal shall set forth: (1)   The name of appellant and appellee. (2)  A brief description or identification of the property involved and the condemnee’s interest.

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(3)   A reference to the proceedings appealed from and the date of the filing of the viewers’ report. (4)   Objections, if any, to the viewers’ report, other than to the amount of the award. (5)   A demand for jury trial, if desired. If the appellant desires a jury trial, the appellant shall at the time of filing the appeal endorse the appeal or file separately a written demand for jury trial, signed by the appellant or counsel. (b)  Jury trial.— (1)   If no demand for jury trial is made by the appellant, any other party may file a written demand for jury trial within 15 days after being served with a copy of the appeal. (2)   If no party makes a demand for a jury trial as provided in this section, the right to jury trial shall be deemed to have been waived, and the court shall try the case without a jury. (c)  Service.—The appellant shall serve a copy of the appeal on all other parties within five days after filing the appeal. Proof of service of a copy of the appeal shall be filed by the appellant. (d)   Other pleadings not required.—No other pleadings shall be required and the cause shall be deemed at issue. § 518.   Disposition of appeal An appeal shall be disposed as follows: (1)  All objections, other than to the amount of the award, raised by the appeal shall be determined by the court preliminarily. (2)   The court may confirm, modify or change the report or refer it back to the same or other viewers. A decree confirming, modifying or changing the report constitutes a final order. (3)   The amount of damages shall be determined by the court unless a jury trial has been demanded. (4)  At the trial of the case, the condemnee shall be the plaintiff and the condemnor shall be the defendant. § 519.   Allocation of damages (a)  Severance damages.—Upon appeal from an award of viewers, the court upon the request of the plaintiff shall, after the jury or the court, if the trial is without jury, has returned its general verdict, make a specific finding and allocation of the amount of the general verdict attributable to severance damages to the part of the property not taken. (b)  Other damages.—The jury or the court in a trial without a jury shall make specific findings as to the portion of the verdict allocated to: (1)  general damages; (2)   moving and removal expenses; (3)   business dislocation damages; and (4)   other items of special damages authorized by this title; except reasonable appraisal, attorney and engineering fees recoverable under sections 306 (relating to preliminary objections), 308 (relating to revocation of condemnation proceedings), 709 (relating to condemnee’s costs where no declaration of taking filed) and 710 (relating to limited reimbursement of appraisal, attorney and engineering fees), which shall be determined by the court in an appropriate case. § 520.   Waiver of viewers’ proceedings and termination by stipulation (a)  Waiver of viewers’ proceedings.—The condemnor and condemnee

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Part III Ch. 23–35 Mortgages Part IV Ch. 36–40 Insurance Part V Ch. 41–48A Zoning, etc. Part VI Ch. 49–56 Taxation Part VII Ch. 57–63 Litigation Part VIII Ch. 64–67 L/T Part IX Ch. 68–72 Condos, etc. Index

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may, by written agreement filed with and approved by the court, waive proceedings before viewers and proceed directly to the court on agreed issues of law or fact. The proceedings shall then be the same as on appeal from a report of viewers. (b)   Termination by stipulation.—At any time after filing of a petition for the appointment of viewers, the parties may, by stipulation filed with the prothonotary, terminate the viewers’ proceedings as to all or part of the properties involved and stipulate that judgment may be entered for the amount of damages agreed on for each property interest covered by the stipulation. A copy of the stipulation shall be filed with the viewers. § 521.   Liens and distribution of damages (a) Liens.— (1)   Damages payable to a condemnee under sections 701 (relating to just compensation; other damages) through 707 (relating to removal of machinery, equipment or fixtures), 713 (relating to delay compensation), 714 (relating to consequential damages), 715 (relating to damages for vacation of roads) and 902(b)(1) and (2) (relating to moving and related expenses of displaced persons) shall be subject to a lien for all taxes and municipal claims assessed against the property and to all mortgages, judgments and other liens of record against the property for which the particular damages are payable, existing at the date of the filing of the declaration of taking. (2)  The liens shall be paid out of the damages in order of priority before any payment to the condemnee, unless released. (3)  In the case of a partial taking or of damages under sections 714 and 715, the lienholder shall be entitled only to an equitable pro rata share of the damages lienable under this section. (b)   Distribution of damages.— (1)   The condemnor shall distribute the damages properly. If the condemnor is unable to determine proper distribution of the damages, it may, without payment into court, petition the court to distribute the damages and shall furnish the court with a schedule of proposed distribution. (2)   Notice of the filing of the petition and schedule of proposed distribution shall be given to all condemnees, mortgagees, judgment creditors and other lienholders, as shown in the proposed schedule, in any manner as the court may direct by general rule or special order. (3)  The court may hear the matter or may appoint a master to hear and report or may order any issue tried by the court and jury as may appear proper under all the circumstances. (4)   The court shall then enter an order of distribution of the fund. § 522.   Payment into court and distribution (a)   Payment into court.— (1)  Upon refusal to accept payment of the damages or of the estimated just compensation under section 307 (relating to possession, right of entry and payment of compensation) or if the party entitled thereto cannot be found or if for any other reason the amount cannot be paid to the party entitled thereto, the court upon petition of the condemnor, which shall include a schedule of proposed distribution, may direct payment and costs into court or as the court may direct in full satisfaction. (2)  The condemnor shall give 20 days’ notice of the presentation of the petition, including a copy of the schedule of the proposed distribution, to all parties in interest known to the condemnor in any manner as the court may direct by general rule or special order. (3)   If the court is satisfied in a particular case that the condemnor failed to use reasonable diligence in giving notice, the court may, upon petition of

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§ 701

EMINENT DOMAIN CODE

any party in interest adversely affected by the failure to give notice, order that compensation for delay in payment be awarded to the party for the period after deposit in court by the condemnor under this section until the time the party in interest has received a distribution of funds under this section. (b)  Distribution.—The court upon petition of any party in interest shall distribute the funds paid under subsection (a) or any funds deposited in court under section 307 to the persons entitled thereto in accordance with the procedure in section 521 (relating to liens and distribution of damages), but, if no petition is presented within a period of five years of the date of payment into court, the court shall order the fund or any balance remaining to be paid to the Commonwealth without escheat. No fee shall be charged against these funds.

CHAPTER 7 JUST COMPENSATION AND MEASURE OF DAMAGES § 701.   Just compensation; other damages A condemnee shall be entitled to just compensation for the taking, injury or destruction of the condemnee’s property, determined as set forth in this chapter. Other damages shall also be paid or awarded as provided in this title. § 702.   Measure of damages (a)  Just compensation.—Just compensation shall consist of the difference between the fair market value of the condemnee’s entire property interest immediately before the condemnation and as unaffected by the condemnation and the fair market value of the property interest remaining immediately after the condemnation and as affected by the condemnation. (b)   Urban development or redevelopment condemnation.—In the case of the condemnation of property in connection with any urban development or redevelopment project, which property is damaged by subsidence due to failure of surface support resulting from the existence of mine tunnels or passageways under the property or by reason of fires occurring in mine tunnels or passageways or of burning coal refuse banks, the damage resulting from the subsidence or underground fires or burning coal refuse banks shall be excluded in determining the fair market value of the condemnee’s entire property interest immediately before the condemnation. (c)   Value of property damaged by natural disaster.— (1)  In the case of the condemnation of property in connection with any program or project which property is damaged by any natural disaster, the damage resulting from the natural disaster shall be excluded in determining fair market value of the condemnee’s entire property interest immediately before the condemnation. (2)   This subsection applies only where the damage resulting from the natural disaster has occurred within five years prior to the initiation of negotiations for or notice of intent to acquire or order to vacate the property and during the ownership of the property by the condemnee. The damage to be excluded shall include only actual physical damage to the property for which the condemnee has not received any compensation or reimbursement. § 703.   Fair market value Fair market value shall be the price which would be agreed to by a willing and informed seller and buyer, taking into consideration but not limited to the following factors: (1)   The present use of the property and its value for that use. (2)   The highest and best reasonably available use of the property and its value for that use.

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Part III Ch. 23–35 Mortgages Part IV Ch. 36–40 Insurance Part V Ch. 41–48A Zoning, etc. Part VI Ch. 49–56 Taxation Part VII Ch. 57–63 Litigation Part VIII Ch. 64–67 L/T Part IX Ch. 68–72 Condos, etc. Index

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(3)   The machinery, equipment and fixtures forming part of the real estate taken. (4)   Other factors as to which evidence may be offered as provided by Chapter 11 (relating to evidence). § 704.   Effect of imminence of condemnation Any change in the fair market value prior to the date of condemnation which the condemnor or condemnee establishes was substantially due to the general knowledge of the imminence of condemnation, other than that due to physical deterioration of the property within the reasonable control of the condemnee, shall be disregarded in determining fair market value. § 705.   Contiguous tracts and unity of use Where all or a part of several contiguous tracts in substantially identical ownership is condemned or a part of several noncontiguous tracts in substantially identical ownership which are used together for a unified purpose is condemned, damages shall be assessed as if the tracts were one parcel. § 706.   Effect of condemnation use on after value (a)  General rule.—In determining the fair market value of the remaining property after a partial taking, consideration shall be given to the use to which the property condemned is to be put and the damages or benefits specially affecting the remaining property due to its proximity to the improvement for which the property was taken. (b)   Future damages and general benefits.—Future damages and general benefits which will affect the entire community beyond the proper ties directly abutting the property taken shall not be considered in arriving at the after value. (c)  Special benefits.—Special benefits to the remaining property shall in no event exceed the total damages, except in cases where the condemnor is authorized under existing law to make special assessments for benefits. (d)  Partial taking.—A partial taking shall not extinguish a nonconforming use unless all or a substantial portion of the improvements on the property are within the area of the property taken. § 707.   Removal of machinery, equipment or fixtures (a)  Notice to condemnee.—In the event the condemnor does not require for its use machinery, equipment or fixtures forming part of the real estate, it shall so notify the condemnee. (b)  Condemnee election.— (1)   The condemnee may within 30 days of the notice elect to remove the machinery, equipment or fixtures unless the time is extended by the condemnor. (2)   If the condemnee so elects, the damages shall be reduced by the fair market value of the machinery, equipment or fixtures severed from the real estate. § 708.   Expenses incidental to transfer of title An acquiring agency shall, on the date of payment of the purchase price of amicably acquired real property or of payment or tender of estimated just compensation in a condemnation proceeding to acquire real property, whichever is earlier or as soon as is practicable, reimburse the owner for expenses necessarily incurred for: (1)   Recording fees, transfer taxes and similar expenses incidental to conveying the real property to the acquiring agency. (2)  Penalty costs for prepayment for any preexisting recorded mortgage entered into in good faith encumbering the real property. (3)  The pro rata portion of real property taxes paid which are allocable to a period subsequent to the date of vesting title in the acquiring agency or

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the effective date of possession of the real property by the acquiring agency, whichever is earlier. (4)   The pro rata portion of water and sewer charges paid to a taxing entity or a local authority allocable to a period subsequent to the effective date of possession of the real property by the acquiring agency. § 709.   Condemnee’s costs where no declaration of taking filed Where proceedings are instituted by a condemnee under section 502(c) (relating to petition for appointment of viewers), a judgment awarding compensation to the condemnee for the taking of property shall include reimbursement of reasonable appraisal, attorney and engineering fees and other costs and expenses actually incurred. § 710.  Limited reimbursement of appraisal, attorney and engineering fees (a)  General rule.—The owner of any right, title or interest in real property acquired or injured by an acquiring agency, who is not eligible for reimbursement of fees under section 306(g) (relating to preliminary objections), 308(d) (relating to revocation of condemnation proceedings) or 709 (relating to condemnee’s costs where no declaration of taking filed), shall be reimbursed in an amount not to exceed $4,000 per property, regardless of right, title or interest, as a payment toward reasonable expenses actually incurred for appraisal, attorney and engineering fees, except where the taking is for an easement related to underground piping for water or sewer infrastructure, in which case the reimbursement is limited to $1,000, regardless of right, title or interest. (b)  Attorney fees.—In determining reasonable attorney fees under sections 306(g), 308(d), 709 and this section, the court shall consider all of the circumstances of the case, including, but not limited to, time records if available. § 711.   Payment on account of increased mortgage costs (a)  Reimbursement of owner.—Whenever the acquisition of property by an acquiring agency results in the termination of an installment purchase contract, mortgage or other evidence of debt on the acquired property, requiring the legal or equitable owner to enter into another installment purchase contract, mortgage or other evidence of debt on the property purchased for the same use as the acquired property, a legal or equitable owner who does not qualify for a payment under section 903(a)(2) (relating to replacement housing for homeowners) shall be compensated for any increased interest and other debt service costs which the owner is required to pay for financing the acquisition of the replacement property. (b)   Determination of amount.— (1)  Compensation for any increased interest and other debt service costs shall be equal to the excess in the aggregate interest and other debt service costs of that amount on the principal of the installment purchase contract, mortgage or other evidence of debt on the replacement property which is equal to the unpaid balance of the installment purchase contract, mortgage or other evidence of debt on the acquired property over the remaining term of the installment purchase contract, mortgage or other evidence of debt on the acquired property reduced to present worth. (2)   The discount rate to be used in reducing to present worth shall be the prevailing interest rate paid on savings deposits by commercial banks in the general area in which the replacement property is located. (3)   The amount shall be paid only if the acquired property was subject to an installment purchase contract or encumbered by a bona fide mortgage or other evidence of debt secured by the property which was a valid lien on the property for not less than 180 days prior to the initiation of negotiations for

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the acquisition of the property.

Part V Ch. 41–48A Zoning, etc. Part VI Ch. 49–56 Taxation Part VII Ch. 57–63 Litigation Part VIII Ch. 64–67 L/T Part IX Ch. 68–72 Condos, etc. Index

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§ 714.   Consequential damages All condemnors, including the Commonwealth, shall be liable for damages to property abutting the area of an improvement resulting from change of grade of a road or highway, permanent interference with access or injury to surface support, whether or not any property is taken. § 715.   Damages for vacation of roads Whenever a public road, street or highway is vacated, the affected owners may recover damages for any injuries sustained, even though no land is actually taken. § 716.   Attempted avoidance of monetary just compensation

Part II Ch. 15–22 Deeds

§ 713.   Delay compensation (a)  General rule.—Compensation for delay in payment shall be paid at an annual rate equal to the prime rate as listed in the first edition of the Wall Street Journal published in the year, plus 1%, not compounded, from: (1)   the date of relinquishment of possession of the condemned property by the condemnee; or (2)  if possession is not required to effectuate condemnation, the date of condemnation. (b)  Exclusion.— (1)   No compensation for delay shall be payable with respect to funds paid on account or by deposit in court after the date of the payment or deposit. (2)   During the period the condemnee remains in possession after the condemnation: (i)   the condemnee shall not be entitled to compensation for delay in payment; and (ii)   the condemnor shall not be entitled to rent or other charges for use and occupancy of the condemned property by the condemnee. (c)   Award or judgment.—Compensation for delay shall not be included by the viewers or the court or jury on appeal as part of the award or verdict but shall, at the time of payment of the award or judgment, be calculated under subsection (a) and added to the award or judgment. There shall be no further or additional payment of interest on the award or verdict.

Part I Ch. 1–14 Brokers

§ 712.   Loss of rentals because of imminence of condemnation (a)  General rule.—A property owner shall be entitled to receive as special damages compensation for any loss suffered prior to the date of taking caused by a reduction of income from rentals which the property owner establishes was substantially due to the general knowledge of the imminence of condemnation, other than that due to physical deterioration of the property within the reasonable control of the property owner. (b)  Applicability.—This section applies only to losses of rental income suffered following a 60-day period subsequent to written notice from the property owner to the acquiring agency that losses of rental income are being suffered. Claims for special damages under this section may be made by any property owner whose property is or was scheduled for condemnation, whether or not a condemnation subsequently occurs. Total damages under this section shall not exceed $30,000. (c)  Limited applicability.—Claims for special damages compensation as described in subsection (a) may be made by any property owner against any acquiring agency whether or not a condemnation subsequently occurs for any project related to a convention center in a city of the first class.

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§ 716

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Where a condemnor attempts to avoid the payment of monetary just compensation to which the condemnee otherwise would be entitled by use of a substitute for monetary compensation and the condemnee incurs expenses, including appraisal, attorney and engineering fees, in securing an adjudication that the substitute is not adequate, the condemnee shall be reimbursed by the condemnor for all these expenses incurred.

CHAPTER 9 SPECIAL DAMAGES FOR DISPLACEMENT § 901.  Definitions The following words and phrases when used in this chapter shall have the meanings given to them in this section unless the context clearly indicates otherwise: “Acquiring agency.” The term includes an agency or person that is carrying out a program or project to the extent that the agency or person causes a person to become a displaced person. § 902.   Moving and related expenses of displaced persons (a)   Reasonable expenses incurred.— (1)   A displaced person shall be reimbursed for reasonable expenses incurred in moving the displaced person and the person’s family and for the removal, transportation and reinstallation of personal property. (i)   Receipts shall be prima facie evidence of incurred reasonable moving expenses. (ii)   Any displaced person who is displaced from a dwelling may elect to receive, in lieu of reimbursement of incurred moving expenses, a moving expense and dislocation allowance determined according to a schedule established by the acquiring agency. (2)   As used in this subsection, the following words and phrases shall have the meanings given to them in this paragraph: “Displaced person.” Includes a person who moves from real property or moves personal property: (i)  as a direct result of a written notice of intent to acquire or the acquisition of other real property, in whole or in part, on which the person conducts a business or farm operation for a program or project undertaken by an acquiring agency; or (ii)  as a direct result of rehabilitation, demolition or other displacing activity of other real property on which such person conducts a business or a farm operation under a program or project undertaken by an acquiring agency if the displacement is permanent. (b)  Damages for dislocation of business or farm operation.—A displaced person who is displaced from a place of business or from a farm operation shall be entitled, in addition to any payment received under subsection (a), to damages for dislocation of business or farm operation as follows: (1)   Damages equal to the value in place of the personal property which: (i)  is not moved because of the discontinuance of the business or farm operation or the unavailability of a comparable site for relocation; or (ii)   cannot be moved without substantially destroying or diminishing its utility in the relocated business or farm operation. (2)   (i)   In lieu of the damages provided in paragraph (1), at the option of the displaced person, an amount not to exceed $12,000 to be determined by

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(iii)   The displaced person shall not, directly or indirectly, purchase any of the personal property at private sale. Inventory shall be paid for under this option only if the business is not relocated.

(4)   Actual reasonable expenses necessary to reestablish a displaced farm, nonprofit organization or small business at its new site, but not to exceed $25,000. Sites occupied solely by outdoor advertising signs, displays or devices do not qualify for this benefit.

(iii) A person whose sole business at a dwelling from which the person is displaced is the rental of such property to others shall not qualify for a payment under this paragraph.

Part IX Ch. 68–72 Condos, etc. Index

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Part VIII Ch. 64–67 L/T

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§ 903.   Replacement housing for homeowners (a)   Additional payments to certain homeowners.— (1)  In addition to payments otherwise authorized, the acquiring agency shall make an additional payment not in excess of $31,000 to any displaced person who is displaced from a dwelling actually owned and occupied by the displaced person for not less than 90 days prior to the initiation of negotiations for the acquisition of the property or the receipt of written notice from the acquiring agency of intent to acquire or order to vacate. (2)   The additional payment shall include the following elements: (i)   The amount, if any, which when added to the acquisition cost of the acquired dwelling equals the reasonable cost of a comparable replacement dwelling which is available to the displaced person on the private market. (ii)   The amount, if any, which will compensate the displaced person for any increased interest and other debt service costs which the person is re-

Part VI Ch. 49–56 Taxation

(iv)   As used in this paragraph, the term “average annual net earnings” means one-half of any net earnings of the business or farm operation before Federal, State and local income taxes during the two taxable years immediately preceding the taxable year in which the business or farm operation moves from the real property acquired for a project and includes any compensation paid by the business or farm operation to the owner, a spouse or dependents during this period. The regulations promulgated under section 906 (relating to regulations) may designate another period determined to be more equitable for establishing average annual net earnings as long as the designated period does not produce a lesser payment than would be produced by use of the last two taxable years.

Part V Ch. 41–48A Zoning, etc.

(ii)   Payment shall be made only if the business cannot be relocated without a substantial loss of profits and if the business is not part of a commercial enterprise having more than three other entities which are not being acquired by the acquiring agency and which are under the same ownership and are engaged in the same or similar business activities.

Part IV Ch. 36–40 Insurance

(5)  (i)  In addition to damages under subsection (a) and paragraphs (1), (2), (3) or (4), damages in an amount equal to the average annual net earnings but not more than $60,000 nor less than $3,000.

Part III Ch. 23–35 Mortgages

(3)   Actual reasonable expenses in searching for a replacement business or farm.

Part II Ch. 15–22 Deeds

(ii)   If this option is selected, the displaced person shall give the acquiring agency not less than 60 days’ notice in writing of intention to seek damages under this option.

Part I Ch. 1–14 Brokers

taking 50% of the difference, if any, between the original cost of the personal property to the displaced person or the replacement cost of equivalent property at the time of sale, whichever is lower, and the net proceeds obtained by the displaced person at a commercially reasonable private or public sale.

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§ 904

EMINENT DOMAIN CODE

quired to pay for financing the acquisition of any comparable replacement dwelling. The amount shall be paid only if the acquired dwelling was subject to an installment purchase contract or encumbered by a bona fide installment purchase contract, mortgage or other evidence of debt secured by the dwelling which was a valid lien on such dwelling for not less than 180 days immediately prior to the initiation of negotiations for the acquisition of such dwelling. (iii)   Reasonable expenses incurred by the displaced person for evidence of title, recording and attorney fees, real property transfer taxes and other closing and related costs incident to the purchase and financing of the replacement dwelling, but not including prepaid expenses. (b)   One-year time period for purchase of replacement dwelling.— (1)   The additional payment authorized by this section shall be made only to a displaced person who purchases and occupies a replacement dwelling, which is decent, safe, sanitary and adequate to accommodate the displaced person, not later than the end of the one-year period beginning on the date on which the person receives final payment of full acquisition cost for the acquired dwelling or on the date on which the person moves from the acquired dwelling, whichever is later. Regulations issued under section 906 (relating to regulations) may prescribe situations when the one-,year period may be extended. (2)   If the period is extended, the payment under this section shall be based on the costs of relocating the person to a comparable replacement dwelling within one year of the date on which the person received final payment of full acquisition costs for the acquired dwelling. (c)   Right of election.—The person entitled under this section shall have the right to elect the benefits available under section 904 (relating to replacement housing for tenants and others) in lieu of those provided by this section. § 904.   Replacement housing for tenants and others (a)   Payment to certain displaced persons.— (1)   In addition to amounts otherwise authorized, an acquiring agency shall make a payment to or for any displaced person displaced from a dwelling not eligible to receive a payment under section 903 (relating to replacement housing for homeowners), which dwelling was actually and lawfully occupied by the displaced person for not less than 90 days prior to the initiation of negotiations for acquisition of the dwelling or the receipt of written notice from the acquiring agency of intent to acquire or order to vacate. The payment shall be the amount determined to be necessary to enable the displaced person to lease a comparable replacement dwelling for a period not to exceed 42 months. The amount shall be the additional amount, if any, over the actual rental or fair rental value of the acquired dwelling, but not more than $7,200. (2)   Any person eligible for a payment under paragraph (1) may elect to apply the payment to a down payment on, and other incidental expenses pursuant to, the purchase of a decent, safe and sanitary replacement dwelling. (b)  Condition of payment.—The additional payment authorized by this section shall be made only to a displaced person who occupies a replacement dwelling which is decent, safe and sanitary. § 905.   Housing replacement authorization (a)   Short title of section.—This section shall be known and may be cited as the Housing Replacement Authorization Act. (b)   Housing replacements by acquiring agency as last resort.— (1)   If comparable replacement sale or rental housing is not available in the

672

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GOVERNMENT REGULATION

Ch. 42

Part III Ch. 23–35 Mortgages Part IV Ch. 36–40 Insurance Part V Ch. 41–48A Zoning, etc. Part VI Ch. 49–56 Taxation Part VII Ch. 57–63 Litigation Part VIII Ch. 64–67 L/T Part IX Ch. 68–72 Condos, etc. Index

gtb-parealestate22-all.indb 673

Part II Ch. 15–22 Deeds

673

Part I Ch. 1–14 Brokers

neighborhood or community in which a program or project is located and this housing cannot otherwise be made available, the acquiring agency may purchase, construct, reconstruct or otherwise provide replacement housing by use of funds authorized for the program or project. For this purpose, the acquiring agency may exercise its power of eminent domain to acquire property in fee simple or any lesser estate as it deems advisable. (2)  Replacement housing provided under this section may be sold, leased or otherwise disposed of by the acquiring agency, for or without consideration, to displaced persons or to nonprofit, limited dividend or cooperative organizations or public bodies, on terms and conditions as the acquiring agency deems necessary and proper to effect the relocation of persons displaced by a program or project. (3)  The acquiring agency may contract with other public agencies or any person for the financing, planning, acquisition, development, construction, management, sale, lease or other disposition of replacement housing provided under this section. (c)   Planning and other preliminary expenses for replacement housing.— (1)   A governmental acquiring agency may make loans and grants to nonprofit, limited dividend or cooperative organizations or public bodies for necessary and reasonable expenses, prior to construction, for planning and obtaining mortgage financing for the rehabilitation or construction of housing for these displaced persons. (2)   The loans and grants shall be made prior to the availability of financing for items such as preliminary surveys and analyses of market needs, preliminary site engineering, preliminary architectural fees, legal, appraisal and organizational fees, site acquisition, application and mortgage commitment fees, construction loan fees and discounts and similar items. (3)  Loans to an organization established for profit shall bear interest at market rate determined by the acquiring agency. All other loans and grants shall be without interest. (4)   The acquiring agency shall require repayment of loans and grants made under this section, under any terms and conditions it requires, upon completion of the project or sooner. However, except in the case of a loan to an organization established for profit, the acquiring agency may cancel any part or all of a loan and may cancel the repayment provisions of a grant if it determines that a permanent loan to finance the rehabilitation or the construction of the housing cannot be obtained in an amount adequate for repayment of the loan. (d)   Availability of funds.—Funds, including motor license funds and other special funds, appropriated or otherwise available to any acquiring agency for a program or project, which results in the displacement of any person, shall be available also for obligations and expenditures to carry out the provisions of this section. § 906.  Regulations The General Counsel may promulgate regulations necessary to assure that: (1)  The payments authorized by this chapter shall be made in a manner which is fair and reasonable and as uniform as practicable. (2)   A displaced person who makes proper application for a payment authorized for that person by this chapter shall be paid promptly after a move or, in hardship cases, be paid in advance. (3)   Any person aggrieved by a determination as to eligibility for a payment authorized by this chapter or the amount of a payment may elect to have the application reviewed by the head of the acquiring agency.

Table of Contents

PART V

12/22/21 10:45 AM

§ 907

EMINENT DOMAIN CODE

(4)   Each displaced person shall receive the maximum payments authorized by this chapter. (5)  Each acquiring agency may obtain the maximum Federal reimbursement for relocation payment and assistance costs authorized by any Federal law. § 907.   Payments not to be considered as income or resources No payment received by a displaced person under this chapter shall be considered as income or resources for the purpose of determining the eligibility or extent of eligibility of any person for assistance under any State law or for the purposes of the State or local personal income or wage tax laws, corporation tax laws or other tax laws. No payments under this chapter except those provided for in section 902(b) (relating to moving and related expenses of displaced persons) shall be subject to attachment or execution at law or in equity.

CHAPTER 11 EVIDENCE § 1101.   Viewers’ hearing The viewers may hear testimony, receive evidence and make independent investigation as they deem appropriate, without being bound by formal rules of evidence. § 1102.   Condemnor’s evidence before viewers The condemnor shall, at the hearing before the viewers, present expert testimony of the amount of damages suffered by the condemnee. § 1103.   Trial in court on appeal At the trial in court on appeal: (1)   Either party may, as a matter of right, have the jury or the judge in a trial without a jury view the property involved, notwithstanding that structures have been demolished or the site altered, and the view shall be evidentiary. If the trial is with a jury, the trial judge shall accompany the jury on the view. (2)   If any valuation expert who has not previously testified before the viewers is to testify, the party calling the expert must disclose the expert’s name and serve a statement of the valuation of the property before and after the condemnation and the expert’s opinion of the highest and best use of the property before the condemnation and of any part remaining after the condemnation on the opposing party at least ten days before the commencement of the trial. (3)   The report of the viewers and the amount of their award shall not be admissible as evidence. § 1104.   Competency of condemnee as witness The condemnee or an officer of a corporate condemnee, without farther qualification, may testify as to just compensation without compliance with the provisions of section 1103(2) (relating to trial in court on appeal). § 1105.   Evidence generally At the hearing before the viewers or at the trial in court on appeal: (1)   A qualified valuation expert may, on direct or cross-examination, state any or all facts and data which the expert considered in arriving at an opinion, whether or not the expert has personal knowledge of the facts and data, and a statement of the facts and data and the sources of information shall be subject to impeachment and rebuttal.

674

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GOVERNMENT REGULATION

Ch. 42

Part I Ch. 1–14 Brokers Part II Ch. 15–22 Deeds Part III Ch. 23–35 Mortgages Part IV Ch. 36–40 Insurance Part V Ch. 41–48A Zoning, etc. Part VI Ch. 49–56 Taxation Part VII Ch. 57–63 Litigation

(2)   A qualified valuation expert may, on direct or cross-examination, testify in detail as to the valuation of the property on a comparable market value, reproduction cost or capitalization basis, which testimony may include, but shall not be limited to, the following: (i)   The price and other terms of any sale or contract to sell the condemned property or comparable property made within a reasonable time before or after the date of condemnation. (ii)  The rent reserved and other terms of any lease of the condemned property or comparable property which was in effect within a reasonable time before or after the date of condemnation. (iii)   The capitalization of the net rental or reasonable net rental value of the condemned property, including reasonable net rental values customarily determined by a percentage or other measurable portion of gross sales or gross income of a business which may reasonably be conducted on the premises, as distinguished from the capitalized value of the income or profits attributable to any business conducted on the premises of the condemned property. (iv)   The value of the land together with the cost of replacing or reproducing the existing improvements less depreciation or obsolescence. (v)  The cost of adjustments and alterations to any remaining property made necessary or reasonably required by the condemnation. (3)   Either party may show the difference between the condition of the property and of the immediate neighborhood at the time of condemnation and at the time of view, either by the viewers or jury. (4)   The assessed valuations of property condemned shall not be admissible in evidence for any purpose. (5)   A qualified valuation expert may testify that the expert has relied upon the written report of another expert as to the cost of adjustments and alterations to any remaining property made necessary or reasonably required by the condemnation, but only if a copy of the written report has been furnished to the opposing party ten days in advance of the trial. (6)  If otherwise qualified, a valuation expert shall not be disqualified by reason of not having made sales of property or not having examined the condemned property prior to the condemnation if the expert can show he has acquired knowledge of its condition at the time of the condemnation. § 1106.   Use of condemned property In arriving at a valuation of the remaining part of the property in a partial condemnation, an expert witness may consider and testify to the use to which the condemned property is intended to be put by the condemnor.

Table of Contents

PART V

Part VIII Ch. 64–67 L/T Part IX Ch. 68–72 Condos, etc.

gtb-parealestate22-all.indb 675

Index

675

12/22/21 10:45 AM

CHAPTER 43 MUNICIPAL CODE AND ORDINANCE COMPLIANCE ACT 68 P.S. §§ 1081 to 68 P.S. § 1083

Sec.

1. Short title. 2. Definitions. 2.1. Issuance of use and occupancy certificate. 2.2. Applicability. 3. Compliance requirement.

§ 1.  Short title.1 This act shall be known and may be cited as the Municipal Code and Ordinance Compliance Act. § 2.  Definitions.2 The following words and phrases when used in this act shall have the meanings given to them in this section unless the context clearly indicates otherwise: “Constructive knowledge.” (Deleted by amendment) “Date of purchase.” The date on which title and right to possess the property transfers to the purchaser or, in cases where the property is sold pursuant to the act of May 16, 1923 (P.L.207, No.153), referred to as the Municipal Claim and Tax Lien Law, the first day following the right of redemption period authorized under the Municipal Claim and Tax Lien Law. “Known to have.” (Deleted by amendment) “Municipality.” Any city, borough, incorporated town, township, home rule municipality, optional plan municipality, optional charter municipality or any similar general purpose unit of government which may be created or authorized by statute. “Substantial violation.” A violation of an adopted building, housing, property maintenance or fire code or maintenance, health or safety nuisance ordinance that makes a building, structure or any part thereof unfit for human habitation and is discovered during the course of a municipal inspection of a property and disclosed to the record owner or prospective purchaser of the property through issuance of a municipal report. “Temporary access certificate.” A certificate issued by a municipality as a result of the municipal inspection of a property incident to the resale of the property that identifies at least one substantial violation, and the purpose of the certificate is to authorize the purchaser to access the property for the purpose of correcting substantial violations pursuant to the maintenance and repair provisions of this act. No person may occupy a property during the term of a temporary access certificate, but the owner shall be permitted to store personalty that is related to the proposed use or occupancy of the property or is needed to repair the substantial violations during the time of the temporary access certificate.

1. 68 P.S. § 1081. 2. 68 P.S. § 1082

676

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12/22/21 10:45 AM

GOVERNMENT REGULATION

Ch. 43

Part IV Ch. 36–40 Insurance Part V Ch. 41–48A Zoning, etc. Part VI Ch. 49–56 Taxation Part VII Ch. 57–63 Litigation Part VIII Ch. 64–67 L/T Part IX Ch. 68–72 Condos, etc. Index

gtb-parealestate22-all.indb 677

Part III Ch. 23–35 Mortgages

677

Part II Ch. 15–22 Deeds

3. 68 P.S. § 1082.1. 4. 68 P.S. § 1082.2.

Part I Ch. 1–14 Brokers

“Temporary use and occupancy certificate.” A certificate issued by a municipality as a result of the municipal inspection of a property incident to the resale of the property that reveals a violation but no substantial violation, and the purpose of the certificate is to authorize the purchaser to fully utilize or reside in the property while correcting violations pursuant to the maintenance and repair provisions of this act. “Unfit for human habitation.” A condition which renders a building or structure, or any part thereof, dangerous or injurious to the health, safety or physical welfare of an occupant or the occupants of neighboring dwellings. The condition may include substantial violations of a property that show evidence of: a significant increase to the hazards of fire or accident; inadequate sanitary facilities; vermin infestation; or a condition of disrepair, dilapidation or structural defects such that the cost of rehabilitation and repair would exceed one-half of the agreed-upon purchase price of the property. “Use and occupancy certificate.” A certificate issued by a municipality stipulating that the property meets all ordinances and codes and may be used or occupied as intended. “Violation.” A violation of a properly adopted building, housing, property maintenance or fire code or maintenance, health or safety nuisance ordinance that does not rise to the level of a substantial violation and is discovered during the course of a municipal inspection of a property and disclosed to the record owner or prospective purchaser of the property through issuance of a municipal report. §  2.1.   Issuance of use and occupancy certificate.3 (a) General rule.—A municipality requiring a use and occupancy certificate shall issue the certificate in the following manner: (1) If the municipal inspection reveals no violations. (2) If the municipal inspection reveals at least one violation, but no substantial violations, the municipality shall issue a temporary use and occupancy certificate. (3) If the municipal inspection reveals at least one substantial violation, the municipality shall specifically note those items on the inspection report and shall issue a temporary access certificate. (b) Escrows and bonds prohibited.—A municipality may not require the escrowing of funds or posting of a bond, or impose any similar financial security as a condition of issuing a certificate. (c) Construction.—Subsection (b) shall not be construed to prohibit a municipality from requiring an owner, prior to accessing the property, to acquire the necessary permits and meet all other related obligations in other statutes that pertain to building, property maintenance, fire codes or other health or safety codes. § 2.2.  Applicability.4 (a) Applicability.—Except as set forth in subsection (b), this act shall not apply to, and a municipality may not require, a certificate of occupancy, a temporary use and occupancy certificate or a temporary access certificate for a real estate transfer, including a residential or nonresidential transfer, as provided under 68 Pa.C.S. § 7103(b)(2) (relating to application of part), to any of the following which take title to property for the purpose of holding the property for

Table of Contents

PART V

12/22/21 10:45 AM

§ 3

MUNICIPAL CODE AND COMPLIANCE

sale to offset losses incurred on a loan or other obligation in default secured by a mortgage, deed of trust or other lien on the property: (1) Bank. (2) Savings association. (3) Credit union. (4) Mortgage lender. (5) Financial institution similar to an institution listed in paragraphs (1) through (4). (6) Subsidiary of a financial institution listed in paragraphs (1) through (5). (b) Exception.—A financial institution not subject to this act under subsection (a) may be required by a municipality to correct a substantial violation. § 3.  Compliance requirement.5 (a) General rule.—Within 12 months of the date of purchase, the purchaser of a property known to be in violation of a municipal code or ordinance shall, at his option, either: (1) bring the property into compliance with municipal codes or ordinances; or (2) demolish the building or structure in accordance with law. (a.1) Negotiation of longer time periods.—At the request of the property owner, the municipality may negotiate, at its discretion, longer time periods for maintenance and repair of the structure under a temporary certificate, but the time periods stated in subsection (a) may not be shortened. (a.2) Reinspection of property.— (1) At the expiration of the time period set forth in subsection (a) or before that time, if requested by the property owner, the municipality shall reinspect the property for the purpose of determining compliance with the cited violations. (2) If a temporary access permit has been issued and reinspection indicates that the noted substantial violations have been corrected but other cited violations have not yet been corrected, the municipality shall issue a temporary use and occupancy permit to be valid for the time remaining on the original temporary access permit. (3) If the reinspection indicates that all noted violations have been corrected, the municipality shall issue a use and occupancy certificate for the property. (b) Penalty.— (1) Failure to comply with the requirements of subsection (a) shall result in: (i) Revocation of the temporary certificate. (ii) The purchaser being subject to any existing municipal ordinances or codes relating to the occupation of a property without a use and occupancy certificate. (iii) The purchaser being personally liable for the costs of maintenance, repairs or demolition sufficient to correct the cited violations, and a fine of not less than $1,000 and not more than $10,000. (2) Fines shall be remitted to the municipality in which the building, structure or part of a building or structure is located. (3) In municipalities with low-income housing, not less than one-third of the 5. 68 P.S. § 1083.

678

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GOVERNMENT REGULATION

Ch. 43

Part I Ch. 1–14 Brokers Part II Ch. 15–22 Deeds Part III Ch. 23–35 Mortgages

fine imposed specifically for code violations shall be used by the municipality for low-income housing in a manner determined by the municipality. (c) Nuisance ordinances.—(Deleted by amendment) (d) Enforcement.—(Deleted by amendment) (e) Coordination with other requirements.—(Deleted by amendment) (f) Exception.—A violation of a municipal code or ordinance, for which a fine, other penalty or a judgment to abate or correct was imposed by a magisterial district judge or municipal court, or a judgment at law or in equity was imposed by a court of common pleas prior to purchase, shall not be subject to the requirements of this section. (g) Nonapplicability.—This section shall not apply where the municipality denies the certificate or permit pursuant to 53 Pa.C.S. Ch. 61 (relating to neighborhood blight reclamation and revitalization).

Table of Contents

PART V

Part IV Ch. 36–40 Insurance Part V Ch. 41–48A Zoning, etc. Part VI Ch. 49–56 Taxation Part VII Ch. 57–63 Litigation Part VIII Ch. 64–67 L/T Part IX Ch. 68–72 Condos, etc.

gtb-parealestate22-all.indb 679

Index

679

12/22/21 10:45 AM

CHAPTER 44 CRIMES AND OFFENSES Chapter

44.1   Secondary Mortgage Loans    7 P.S. § 6622 44.2   Recorders of Deeds    16 P.S. § 9784 44.3   Destruction of Survey Monument    18 Pa.C.S. § 3312 44.4   Destruction or Concealment of Recordable Instruments    18 Pa.C.S. § 4103 44.5   Deeds and Conveyances    21 P.S. §§ 53, 54, 613, & 615 44.6  Manufactured Housing    35 P.S. § 1656.9 44.7   Housing Finance Agency Law    35 P.S. § 1680.602a 44.8   Maximum Interest Rates: “Act 6”    41 P.S. § 505 44.9   Pennsylvania Human Relations Act    43 P.S. § 961 44.10   Real Estate Licensing and Registration Act    63 P.S. § 455.303 44.11  Insurance Adjusters    63 P.S. § 1607 44.12   Mortgage Bankers and Brokers and Consumer Equity Protection Act    63 P.S. § 456.314 44.13   Real Estate Appraisers Certification Act    63 P.S. § 457.15 44.14   Home Inspection Law    68 Pa.C.S. § 7511 44.15   Pennsylvania Realty Transfer Tax    72 P.S. § 8110-C 44.16   Unlicensed Mortgage Loan Business    18 P.S. § 7331 44.17  Nuisances    68 P.S. § 473 44.18   Consumer Credit Cost Disclosure    15 U.S.C. § 1611 44.19  Impersonating a Notary Public or a Holder of a Professional or Occupational License    18 Pa.C.S. § 4913 44.20   Failure to Comply with a Code Requirement    53 Pa.C.S. § 6115

CHAPTER 44.1 SECONDARY MORTGAGE LOANS 7 P.S. § 6622

§ 6622.  Penalties (a)   Any person who is not licensed by the secretary or exempted from the licensing requirements in accordance with the provisions of this act and who shall engage in the business of negotiating or making secondary mortgage loans

680

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12/22/21 10:45 AM

GOVERNMENT REGULATION

Ch. 44.2

Part III Ch. 23–35 Mortgages Part IV Ch. 36–40 Insurance Part V Ch. 41–48A Zoning, etc. Part VI Ch. 49–56 Taxation Part VII Ch. 57–63 Litigation

16 P.S. § 9784

Part VIII Ch. 64–67 L/T

§ 9784.  Failure to certify; penalty Recorders of deeds who shall fail to certify the same to the office of the county commissioners, as aforesaid, shall be deemed guilty of a misdemeanor in office, and on conviction thereof be punished by a fine not exceeding one hundred dollars.

Part IX Ch. 68–72 Condos, etc.

1. 7 P.S. § 6201 et seq.

Index

681

gtb-parealestate22-all.indb 681

Part II Ch. 15–22 Deeds

CHAPTER 44.2 RECORDERS OF DEEDS

Part I Ch. 1–14 Brokers

and charge, collect, contract for or receive interest, fees, premiums, charges or other considerations which aggregate in excess of the interest that the lender would otherwise be permitted by law to charge if not licensed under this act on the amount actually loaned or advanced, or on the unpaid principal balances when the contract is payable by stated installments, shall be guilty of a misdemeanor, and upon conviction thereof, shall be sentenced to pay a fine of not less than $500 or more than $5,000, and/or undergo imprisonment not less than six months nor more than three years, in the discretion of the court. This subsection shall not apply to real property secured loans made by a licensee under the act of April 8, 1937 (P.L. 262, No. 66), known as the “Consumer Discount Company Act.”1 (b)   Except as the result of unintentional error, a corporation licensed under the provisions of this act or any director, officer, employee or agent who shall violate any provision of this act or shall direct or consent to such violations, shall be subject to a fine of $2,000 for the first offense, and for each subsequent offense a like fine and/or suspension of license. A licensee shall have no liability for unintentional error if within 15 days after discovering an error the licensee notifies the person concerned of the error and makes adjustments in the account as necessary to assure that the person will not be required to pay any interest, fees, premiums, charges or other considerations which aggregate in excess of the charges permitted under this act. (b.1)   A sponsoring broker or broker’s agent who violates any provision of this act shall be subject to a fine to be levied by the Department of Banking of up to $2,000 for each offense. (c)  If a contract is made in good faith in conformity with an interpretation of this act by the appellate courts of the Commonwealth or in compliance with a rule or regulation officially promulgated by the secretary no provision of this section imposing any penalty shall apply, notwithstanding that after such contract is made, such interpretation, rule or regulation is amended, rescinded, or determined by judicial or other authority to be invalid for any reason. (d)  The lien granted or provided in connection with a secondary mortgage loan shall not be deemed to constitute a sale of the property with regard to any prior existing lien, for the purpose of permitting foreclosure of or execution on such prior lien.

Table of Contents

PART V

12/22/21 10:45 AM

§ 3312

CRIMES AND OFFENSES CHAPTER 44.3 DESTRUCTION OF SURVEY MONUMENT 18 Pa. C.S. § 3312

§ 3312. Destruction of a survey monument (a)  Offense defined.— (1)   A person commits a summary offense if he intentionally cuts, injures, damages, destroys, defaces or removes any survey monument or marker, other than a natural object such as a tree or stream. (2)  A person commits a misdemeanor of the second degree if he willfully or maliciously cuts, injures, damages, destroys, defaces or removes any survey monument or marker in order to call into question a boundary line. (b)  Restitution.—Any person convicted of violating this section shall, in addition to any other penalty imposed, be liable for the cost of the reestablishment of permanent survey monuments or markers by a professional land surveyor and all reasonable attorney fees. (c)  Affirmative defense.—It is an affirmative defense to any prosecution for an offense under this section that the survey monument or marker was improperly placed by a professional land surveyor. (d)  Definitions.—As used in this section, the following words and phrases shall have the meanings given to them in this subsection: “Professional land surveyor.” As defined under the act of May 23, 1945 (P.L. 913, No. 367, 43 P.S. 148 et seq.) known as the Engineer, Land Surveyor and Geologist Registration Law. “Survey monument or marker.” Any object adopted or placed by a professional land surveyor to define the boundaries of a property, including, but not limited to, natural objects such as trees or streams, or artificial monuments such as iron pins, concrete monuments, set stones or party walls. The phrase does not include a wooden stake placed by a professional land surveyor as a temporary marker or place holder.

CHAPTER 44.4 RECORDABLE INSTRUMENTS 18 Pa. C.S. § 4103

§ 4103.  Fraudulent destruction, removal or concealment of recordable instruments A person commits a felony of the third degree if, with intent to deceive or injure anyone, he destroys, removes or conceals any will, deed, mortgage, security instrument or other writing for which the law provides public recording.

682

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GOVERNMENT REGULATION

Ch. 44.5

Part I Ch. 1–14 Brokers

CHAPTER 44.5 DEEDS AND CONVEYANCES

Table of Contents

PART V

21 P.S. §§ 53, 54, 613, & 615

§ 613.  Certificates

Part VII Ch. 57–63 Litigation

(b)  It shall be unlawful for an owner to sell his property, or any interest therein, unless the owner shall first deliver to the purchaser at or prior to the time for settlement a certificate issued by the appropriate municipal official disclosing whether there exists any notice of an uncorrected violation of the housing, building, safety or fire ordinances.

Part VI Ch. 49–56 Taxation

(a)   In any city of the first class, any city of the second class or in any city of the second class A, city of the third class, borough, town, township of the first class or township of the second class which has adopted the provisions of this act it shall be unlawful for any owner to sell his property, or any interest therein, unless the owner shall first deliver to the purchaser at or prior to the time for settlement a certification of the District classification, issued by the appropriate municipal officer indicating the zoning classification and the legality of the existing use of the property to be sold.

Part V Ch. 41–48A Zoning, etc.

Provided, That this shall not prevent the said court from punishing the contempt of the said party by fine and imprisonment, if deemed necessary.

Part IV Ch. 36–40 Insurance

§ 54.  Punishment for contempt

Part III Ch. 23–35 Mortgages

In any proceedings at law or in equity, in any of the courts of this commonwealth having jurisdiction, if the said court shall order a conveyance to be executed by either of the parties to the said proceeding of his or her interest in any lands or tenements to any other party or person, and the party so ordered shall neglect or refuse to comply with the said order and make the said conveyance, or shall die, flee the jurisdiction, or become insane without having complied therewith, it shall be lawful for the said court to order and direct that such conveyance be made by the sheriff, prothonotary or clerk, or by a trustee specially appointed for that purpose; and the said conveyance having been duly executed by the said sheriff, prothonotary, clerk or trustee, and acknowledged in open court, shall be good and effective to convey the interest of the recusant, neglecting, deceased, persons fleeing the jurisdiction, or insane party, to the extent ordered by the court, the same as if it had been duly executed and delivered by such party personally.

Part II Ch. 15–22 Deeds

§ 53.  Conveyance by officer when decreed by court; acknowledgment in open court

§ 615.  Penalties

Part IX Ch. 68–72 Condos, etc.

2. 21 P.S. §613

Index

683

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Part VIII Ch. 64–67 L/T

Any owner who violates the provisions of section 3 of this act2 shall be guilty of a misdemeanor, and upon conviction thereof, shall be sentenced to pay a fine of not more than one thousand dollars, or undergo imprisonment for not more than one year, or both.

12/22/21 10:45 AM

§ 1656.9

CRIMES AND OFFENSES

CHAPTER 44.6 MANUFACTURED HOUSING CONSTRUCTION AND SAFETY STANDARDS AUTHORIZATION ACT 35 P.S. § 1656.9

§ 1656.9.  Penalties (a)  Any person who violates or fails to comply with any provisions of the National Manufactured Home Construction and Safety Standards Act of 1974, as amended,3 this act or any regulation or final order issued thereunder shall be liable for a civil penalty not to exceed $1,000 for each violation. Each violation of the National Manufactured Home Construction and Safety Standards Act of 1974, this act, or any regulation or order issued under either this act or the National Manufactured Home Construction and Safety Standards Act of 1974, shall constitute a separate violation with respect to each manufactured home or with respect to each failure or refusal to allow or perform an act required thereby, except that the maximum civil penalty shall not exceed $1,000,000 for any related series of violations occurring within one year from the date of the first violation. (b)   Any individual, or a director, officer or agent of a corporation who knowingly and willfully violates the provisions of this act or section 610 of the National Manufactured Home Construction and Safety Standards Act of 1974 in a manner which threatens the health and safety of any purchaser shall be fined not more than $1,000 or imprisoned not more than one year, or both.

CHAPTER 44.7 HOUSING FINANCE AGENCY LAW 35 P.S. § 1680.602a

§ 1680.602a.  Fraud penalty Any person who attempts to or obtains financial aid for a project hereunder4 or occupancy or continual occupancy of a dwelling unit therein by false or misleading information or who shall violate this act or who shall by fraud attempt to obtain moneys from the agency or its approval for the payment of moneys or shall fraudulently attempt to or does prevent the collection of any moneys due to the agency shall, for each offense, be guilty of a misdemeanor, and, upon conviction thereof, shall be sentenced to pay a fine not exceeding three hundred dollars ($300) or undergo imprisonment not exceeding one year, or both.

CHAPTER 44.8 MAXIMUM INTEREST RATES: “ACT 6” 41 P.S. § 505

§ 505.  Penalties (a) Any person who knowingly and intentionally violates the provisions of this act shall be guilty of a misdemeanor of the third degree.

3. 42 U.S.C.A. § 5401 et seq. 4. Housing Finance Agency Law 35 PS §§1680.101 et seq.

684

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GOVERNMENT REGULATION

Ch. 44.11

43 P.S. § 961

Part IV Ch. 36–40 Insurance

CHAPTER 44.10 REAL ESTATE LICENSING AND REGISTRATION ACT

Part VII Ch. 57–63 Litigation Part VIII Ch. 64–67 L/T

CHAPTER 44.11 INSURANCE ADJUSTERS

§ 7.  Violations Any person, partnership, association or corporation violating any of the provisions of this act shall be guilty of a misdemeanor and, upon conviction thereof, shall be sentenced to pay a fine of not less than $500 nor more than $1,000 for each

Part IX Ch. 68–72 Condos, etc.

63 P.S. § 1607

Index

gtb-parealestate22-all.indb 685

Part VI Ch. 49–56 Taxation

§ 303.  Criminal penalties Any person who shall engage in or carry on the business, or act in the capacity of a broker, salesperson, cemetery broker, cemetery salesperson, campground membership salesperson, time-share salesperson, builder-owner salesperson, rental listing referral agent or cemetery company, within this Commonwealth, without a license or registration certificate, or shall carry on or continue business after the suspension or revocation of any such license or registration certificate issued to him, or shall employ any person as a salesperson or cemetery salesperson to whom a license has not been issued, or whose license or registration certificate as such shall have been revoked or suspended, shall be guilty of a summary offense and upon conviction thereof for a first offense shall be sentenced to pay a fine not exceeding $500 or suffer imprisonment, not exceeding three months, or both and for a second or subsequent offense shall be guilty of a felony of the third degree and upon conviction thereof, shall be sentenced to pay a fine of not less than $2,000 but not more than $5,000 or to imprisonment for not less than one year but not more than two years, or both.

Part V Ch. 41–48A Zoning, etc.

63 P.S. § 455.303

685

Part III Ch. 23–35 Mortgages

§ 961.  Penalties Any person who shall wilfully resist, prevent, impede or interfere with the Commission, its members, agents or agencies in the performance of duties pursuant to this act, or shall wilfully violate an order of the Commission, shall be guilty of a misdemeanor and, upon conviction thereof, shall be sentenced to pay a fine of not less than one hundred dollars ($100.00) nor more than five hundred dollars ($500.00), or to undergo imprisonment not exceeding thirty (30) days, or both, in the discretion of the court, but procedure for the review of an order shall not be deemed to be such wilful conduct.

Part II Ch. 15–22 Deeds

CHAPTER 44.9 PENNSYLVANIA HUMAN RELATIONS ACT

Part I Ch. 1–14 Brokers

(b)   Any person who violates a provision of this act shall be subject to a fine levied by the department of ten thousand dollars ($10,000) per offense.

Table of Contents

PART V

12/22/21 10:45 AM

§ 314

CRIMES AND OFFENSES

violation and conviction. Prosecution for any violation under this section may be instituted by the Insurance Commissioner or his duly authorized representative.

CHAPTER 44.12 MORTGAGE BANKERS AND BROKERS AND CONSUMER EQUITY PROTECTION ACT 63 P.S. § 456.314

§ 314.  Penalties (a)  Nonlicensees.—Any person who is not licensed by the department or is not exempted from the licensing requirements in accordance with the provisions of this chapter and who engages in the business of a mortgage banker, loan correspondent, mortgage broker or limited mortgage broker commits a felony of the third degree. (b)   Nonlicensees subject to the provisions of this chapter.—Any person who is subject to the provisions of this chapter, even though not licensed hereunder, or any person who is not licensed by the department or is not exempt from the licensing requirements, who violates any of the provisions to which it is subject shall be subject to a fine levied by the department or commission of up to $2,000 for each offense. Any such nonlicensed person who commits three or more offenses may, at the discretion of the department or commission, be prohibited from engaging in the first mortgage loan business unless licensed under this chapter. (c)  Violations by licensees.—Any person licensed under the provisions of this chapter or any director, officer, employee or agent of a licensee who shall violate the provisions of this chapter or shall direct or consent to such violations shall be subject to a fine levied by the department of up to $2,000 for each offense. (d)  Limited powers.—The powers conferred upon the commission by subsection (b) shall only be exercised by the commission in relation to persons licensed pursuant to the provisions of the act of February 19, 1980 (P.L. 15, No. 9),1 known as the Real Estate Licensing and Registration Act, who are subject to subsection (b) under section 303(b)(3)2 and the exercise of such power by the commission in relation to such persons shall be exclusive.

CHAPTER 44.13 REAL ESTATE APPRAISERS CERTIFICATION ACT 63 P.S. § 457.15

§ 457.15 Penalties (a)  Criminal penalties.—A person who violates this act commits a misdemeanor of the third degree and shall, upon conviction, be sentenced to pay a fine of up to $1,000 or to imprisonment for not more than 90 days, or both.

686

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GOVERNMENT REGULATION

Ch. 44.15

Part I Ch. 1–14 Brokers

CHAPTER 44.14 HOME INSPECTION LAW

Table of Contents

PART V

68 Pa. C.S. § 7511

(1)  fraudulently cut, tear or remove from a document any documentary stamp; or,

Part VII Ch. 57–63 Litigation

(c)   It shall be unlawful for any person to:

Part VI Ch. 49–56 Taxation

(b)   Any person violating any of the provisions of subsection (a) shall be guilty of a summary offense.

Part V Ch. 41–48A Zoning, etc.

§ 8110-C.  Unlawful acts; penalty (a)   It shall be unlawful for any person to: (1) accept or present for recording or cause to be accepted or presented for recording any document, without the full amount of tax thereon being duly paid; or, (2) make use of any documentary stamp to denote payment of any tax imposed by this article without canceling such stamp as required by this article or as prescribed by the department; or (3) fail, neglect or refuse to comply with or violate the rules and regulations prescribed, adopted and promulgated by the department under the provisions of this article.

Part IV Ch. 36–40 Insurance

72 P.S. § 8110-C

Part III Ch. 23–35 Mortgages

CHAPTER 44.15 PENNSYLVANIA REALTY TRANSFER TAX

Part II Ch. 15–22 Deeds

§ 7511.  Penalties (a)  Criminal penalty.—A person who violates section 7509 (relating to liability insurance) or who provides a false representation under section 7510 (relating to reliance by buyer) commits a summary offense and, upon conviction thereof for a first offense, shall be sentenced to pay a fine not exceeding $500 or to imprisonment for not more than three months, or both, and for a second or subsequent offense commits a misdemeanor of the third degree and, upon conviction thereof, shall be sentenced to pay a fine of not less than $2,000 but not more than $5,000 or to imprisonment for not less than one year but not more than two years, or both. (b)  Fine.—A person who violates any provision of section 7508 (relating to home inspection reports) shall, upon conviction in a summary proceeding before a magisterial district judge, be sentenced to pay a fine not exceeding $500.

(2)   fraudulently affix to any document upon which tax is imposed by this article any documentary stamp which has been cut, torn or removed from any other document upon which tax is imposed by this article, or any documentary stamp of insufficient value, or any forged or counterfeited stamp, or any impression of any forged or counterfeited stamp, die, plate or other article; or,

Part VIII Ch. 64–67 L/T

(3)  willfully remove or alter the cancellation marks of any documentary stamp, or restore any such documentary stamp, with intent to use or cause the same to be used after it has already been used, or knowingly buy, sell, offer for sale, or give away any such altered or restored stamp to any person for use, or knowingly use the same; or,

Part IX Ch. 68–72 Condos, etc.

gtb-parealestate22-all.indb 687

Index

687

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§ 7331

CRIMES AND OFFENSES

(4)   knowingly have in his possession any altered or restored documentary stamp which has been removed from any document upon which tax is imposed by this article: Provided, That the possession of such stamps shall be prima facie evidence of an intent to violate the provisions of this clause; or, (5)   knowingly or willfully prepare, keep, sell, offer for sale, or have in his possession, any forged or counterfeited documentary stamps. (d)   Any person violating any of the provisions of subsection (c) shall be guilty of a misdemeanor of the second degree. (e)   A person who makes a false statement of value or declaration of acquisition, when he does not believe the statement or declaration to be true, is guilty of a misdemeanor of the second degree.

CHAPTER 44.16 UNLICENSED MORTGAGE LOAN BUSINESS. 18 P.S. § 7331

§ 7331.   Unlicensed mortgage loan business. A person that operates without a license in violation of 7 Pa.C.S. § 6111 (relating to license requirements) commits a felony of the third degree.

CHAPTER 44.17 NUISANCES. 68 P.S. § 473

§ 473.   Violation of act. Any person violating any of the provisions of this act shall be guilty of a misdemeanor, and, upon conviction, shall be sentenced to imprisonment for not more than one year, or pay a fine not exceeding one thousand dollars, or both, at the discretion of the court.

CHAPTER 44.18 CONSUMER CREDIT COST DISCLOSURE 15 U.S.C. § 1611

§ 1611.  Criminal liability for willful and knowing violation Whoever willfully and knowingly (1)  gives false or inaccurate information or fails to provide information which he is required to disclose under the provisions of this subchapter or any regulation issued thereunder,

688

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GOVERNMENT REGULATION

Ch. 44.20

(3)  otherwise fails to comply with any requirement imposed under this subchapter,

Part III Ch. 23–35 Mortgages

CHAPTER 44.19 IMPERSONATING A NOTARY PUBLIC OR A HOLDER OF A PROFESSIONAL OR OCCUPATIONAL LICENSE 18 Pa.C.S. § 4913

(2)   performs any action in furtherance of this false pretense. (b)  Grading.— (1)   Except as set forth in paragraph (2) or (3), an offense under this section is a misdemeanor of the second degree.

Part VIII Ch. 64–67 L/T

CHAPTER 44.20 FAILURE TO COMPLY WITH A CODE REQUIREMENT 53 Pa.C.S. § 6115

Part IX Ch. 68–72 Condos, etc.

§ 6115.  Failure to comply with a code requirement (a)  Offense defined.—The owner of real property commits the offense of failure to comply with a code requirement if all of the following apply: (1)  The owner of real property has been convicted of a second or subsequent serious violation of the same provision of a municipal code for the same property.

Index

gtb-parealestate22-all.indb 689

Part VII Ch. 57–63 Litigation

(3)   If the intent of the actor is to impersonate a doctor of medicine and, in so doing, the actor provides medical advice or treatment to another person as a patient, regardless of whether or not the other person suffers harm from the medical advice or treatment, an offense under this section is a misdemeanor of the first degree.

Part VI Ch. 49–56 Taxation

(2)   If the intent of the actor is to harm, defraud or injure anyone, an offense under this section is a misdemeanor of the first degree.

Part V Ch. 41–48A Zoning, etc.

(1)   falsely pretends to hold the office of notary public within this Commonwealth or to hold a professional or occupational license issued by a licensing board; and

Part IV Ch. 36–40 Insurance

§ 4913.  Impersonating a notary public or a holder of a professional or occupational license (a)  Offense defined.—A person commits an offense if the person does any of the following:

689

Part II Ch. 15–22 Deeds

shall be fined not more than $5,000 or imprisoned not more than one year, or both.

Part I Ch. 1–14 Brokers

(2)   uses any chart or table authorized by the Board under section 1606 of this title in such a manner as to consistently understate the annual percentage rate determined under section 1606(a)(1)(A) of this title, or

Table of Contents

PART V

12/22/21 10:45 AM

§ 6115

CRIMES AND OFFENSES

(2)  The violation poses a threat to the public’s health, safety or property and the owner has not taken a substantial step to correct the violation. (3)  The violation is considered a public nuisance and the owner has not made a reasonable attempt to correct the violation. (b)  Grading.—Failure to comply with a code requirement shall constitute a: (1)   Misdemeanor of the second degree if the offense is a second conviction of a serious violation of the same provision of a municipal code relating to the same property. (2)   Misdemeanor of the first degree if the offense is based on three or more convictions of serious violations of the same provision of a municipal code relating to the same property. (c)  Definition.—As used in this section, “code requirement” shall mean a building, housing or property maintenance code or ordinance of a municipality.

690

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12/22/21 10:45 AM

Table of Contents

CHAPTER 45

Part I Ch. 1–14 Brokers

DIVORCE AND DOMESTIC VIOLENCE PROPERTY RIGHTS 23 Pa. C.S. § 3503 to 23 Pa. C.S. § 3508 23 Pa. C.S. § 4361 to 23 Pa. C.S. § 4365 3503. Effect of divorce on property rights generally 3504. Disposition of property after termination of marriage 3505. Disposition of property to defeat obligations 3506. Statement of reasons for distribution 3507. Division of entireties property between divorced persons 3508. Conveyance of entireties property to divorced spouse 4361. Execution of support order against entireties property 4362. Plaintiff’s share of proceeds of sale 4363. Trustee to distribute proceeds of sale 4364. Credit to plaintiff who purchases property 4365. Rights of divorced person in entireties property sold for support

Part III Ch. 23–35 Mortgages

§ § § § § § § § § § §

Part II Ch. 15–22 Deeds

Sec.

Part VI Ch. 49–56 Taxation Part VII Ch. 57–63 Litigation Part VIII Ch. 64–67 L/T Part IX Ch. 68–72 Condos, etc. Index

gtb-parealestate22-all.indb 691

Part V Ch. 41–48A Zoning, etc.

691

Part IV Ch. 36–40 Insurance

§ 3503.  Effect of divorce on property rights generally Whenever a decree or judgment is granted which nullifies or absolutely terminates the bonds of matrimony, all property rights which are dependent upon the marital relation, except those which are vested rights, are terminated unless the court expressly provides otherwise in its decree. All duties, rights and claims accruing to either of the parties at any time theretofore in pursuance of the marriage shall cease, and the parties shall severally be at liberty to marry again as if they had never been married. § 3504.  Disposition of property after termination of marriage Unless provided otherwise by the court, whenever a decree of divorce or annulment is entered by a court of competent jurisdiction, both parties whose marriage is terminated or affected shall have complete freedom of disposition as to their separate real and personal property and may mortgage, sell, grant, convey or otherwise encumber or dispose of their separate property, whether the property was acquired before, during or after coverture, and neither need join in, consent to or acknowledge a deed, mortgage or instrument of the other. § 3505.  Disposition of property to defeat obligations (a)  Preliminary relief.—Where it appears to the court that a party is about to leave the jurisdiction of the court or is about to remove property of that party from the jurisdiction of the court or is about to dispose of, alienate or encumber property in order to defeat equitable distribution, alimony pendente lite, alimony, child and spousal support or a similar award, an injunction may issue to prevent the removal or disposition and the property may be attached as prescribed by general rules. The court may also issue a writ of ne exeat to preclude the removal. (b)   Inventory of property.—Both parties shall submit to the court an inventory and appraisement, which shall contain all of the following: (1)   A list of the property owned or possessed by either or both of them as of: (i)   the date of separation; and (ii)   thirty days prior to the date of hearing on equitable distribution.

12/22/21 10:45 AM

§ 3506

DIVORCE PROPERTY RIGHTS

(2)   A list of the value of the property owned or possessed by either or both of them as of: (i)   the date of acquisition; (ii)   the date of separation; and (iii)   thirty days prior to the date of hearing on equitable distribution. (3)   A list of the liabilities of either or both of them as of 30 days prior to the date of hearing on equitable distribution, whether or not the liabilities are related to the property set forth in the inventory and appraisement. (c)  Discovery.—Discovery under this part shall be as provided for all other civil actions under the Pennsylvania Rules of Civil Procedure. (d)   Constructive trust for undisclosed assets.—If a party fails to disclose information required by general rule of the Supreme Court and in consequence thereof an asset or assets with a fair market value of $1,000 or more is omitted from the final distribution of property, the party aggrieved by the nondisclosure may at any time petition the court granting the award to declare the creation of a constructive trust as to all undisclosed assets for the benefit of the parties and their minor or dependent children, if any. The party in whose name the assets are held shall be declared the constructive trustee unless the court designates a different trustee, and the trust may include any terms and conditions the court may determine. The court shall grant the petition upon a finding of a failure to disclose the assets as required by general rule of the Supreme Court. (e)   Encumbrance or disposition to third parties.—An encumbrance or disposition of marital property to third persons who paid wholly inadequate consideration for the property may be deemed fraudulent and declared void. § 3506.  Statement of reasons for distribution In an order made under this chapter for the distribution of property, the court shall set forth the percentage of distribution for each marital asset or group of assets and the reason for the distribution ordered. § 3507.  Division of entireties property between divorced persons (a)  General rule.—Whenever married persons holding property as tenants by entireties are divorced, they shall, except as otherwise provided by an order made under this chapter, thereafter hold the property as tenants in common of equal one-half shares in value, and either of them may bring an action against the other to have the property sold and the proceeds divided between them. (b)  Division of proceeds.—Except as provided in subsection (c), the proceeds of a sale under this section, after the payment of the expenses of sale, shall be equally divided between the parties. (c)  Liens.—The amount of any lien entered of record jointly against both of the parties, together with any interest due on the lien and docket costs, shall be deducted from the proceeds of sale and the amount of the liens entered of record against either of the parties, together with any interest due on the liens and docket costs, shall be deducted from the share of the party against whom the lien is filed and paid to the person or persons to whom the amount of the lien is due and payable. (d)  Record of divorce decree.—No decree of divorce shall be effective to change the existing law relating to liens upon property held by tenants by the entireties except a decree of divorce that is valid in this Commonwealth and not until the decree of divorce or a certified copy of the decree is recorded in the office of the recorder of deeds of the county where the property is situate. The decree shall be indexed in the grantor’s index against each of the tenants by the entireties.

692

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12/22/21 10:45 AM

GOVERNMENT REGULATION

Ch. 45

Part IV Ch. 36–40 Insurance Part V Ch. 41–48A Zoning, etc. Part VI Ch. 49–56 Taxation Part VII Ch. 57–63 Litigation Part VIII Ch. 64–67 L/T Part IX Ch. 68–72 Condos, etc. Index

gtb-parealestate22-all.indb 693

Part III Ch. 23–35 Mortgages

693

Part II Ch. 15–22 Deeds

1. 42 Pa.C.S. § 8121 et seq.

Part I Ch. 1–14 Brokers

§ 3508.  Conveyance of entireties property to divorced spouse Whenever married persons have acquired real estate as tenants by entireties and thereafter are divorced, either former spouse, except as otherwise provided by an order made under this chapter, may convey to the other, without the joinder of the other, the grantor’s interest in the real estate so that the grantee holds the real estate in fee simple, freed from all right, title and interest which the grantor had in the real estate as a tenant by the entireties. § 4361.  Execution of support order against entireties property (a)   Entry of order.—Whenever married persons hold real property by the entireties and one spouse secures an order of court against the other spouse for the support of the plaintiff spouse or of a child of both persons or the defendant or for the support of both the plaintiff spouse and child and a copy of the order has been certified to the court of common pleas of the county in this Commonwealth in which the property is situated, the order shall be entered in that court as a judgment with the same effect as if it had been recovered as a judgment of that court. (b)  Execution on judgment.—Execution may be issued on the judgment against the real property held by the entireties, and the property may be sold in the manner provided by law for the sale of real property on execution issued on a judgment. In any writs of execution on the judgment, the defendant shall not be entitled to the benefit of 42 Pa.C.S. Ch. 81 Subch. B1 (relating to exemptions from execution) or any other exemption statute. (c)   Title of purchaser.—The sale of real property under this section conveys to the purchaser or purchasers thereof a good and valid title to the property and vests in the purchaser or purchasers the entire title of both the married persons in the same manner and with the same effect as if both married persons had joined in the conveyance of the property. § 4362.  Plaintiff’s share of proceeds of sale (a)  General rule.—The plaintiff spouse shall be entitled, out of the proceeds of this sale, to such sums of money as represents the share in the property, based on the proportionate part of the original purchase money furnished by the plaintiff spouse for the purchase of the property. (b)   Petition to court.—The plaintiff spouse may petition the court of common pleas of the county where the real property is situated, either before or after the sale of the property by execution, setting forth plaintiff’s claim, and the court shall fix a date for a hearing on the petition. (c)  Hearing and decree.—After notice and hearing, the court shall make such decree as shall be proper. At the hearing, both spouses shall be competent witnesses. § 4363.  Trustee to distribute proceeds of sale (a)  Appointment of trustee.—The court shall, at the time of the hearing or thereafter, appoint a trustee who shall receive from the sheriff the proceeds of the sale of the property after the costs have been paid. (b)  Disposition of proceeds.—The trustee shall, out of the proceeds, pay to the plaintiff spouse the sum of money the court decreed as plaintiff’s share in the property sold and also the sums of money, and interest thereon from the time the respective items making them up became due and payable, which are due and payable under the order of support. The trustee shall also pay to the plaintiff spouse any additional sums the plaintiff may be entitled to under any order of court for the support of plaintiff or the children of defendant.

Table of Contents

PART V

12/22/21 10:45 AM

§ 4364

DIVORCE PROPERTY RIGHTS

§ 4364.  Credit to plaintiff who purchases property (a)  General rule.—If the plaintiff spouse becomes the purchaser at the execution sale, the plaintiff shall be entitled to a credit on the purchase price thereof for the sum of money found by the court to represent the plaintiff’s share in the property and also for the sums of money due the plaintiff from the defendant under the order of support upon which the execution was issued at the time of the sale, together with interest on the sums due the plaintiff for support from the time the respective sums become due. (b)   Allowance or assignment of credit.—The credit shall be allowed the plaintiff by the sheriff or the plaintiff may assign the sums due the plaintiff to the purchaser of the property whereupon credit shall be given to the purchaser by the sheriff for the amount assigned. § 4365.   Rights of divorced person in entireties property sold for support (a)  General rule.—After the divorce of any spouse who is a tenant by the entireties of real property with the former spouse, the divorced spouse is entitled to all the rights and remedies provided in this subchapter for the collection of any sums of money ordered by a court to be paid to the divorced spouse for the support of the children of the former spouse as fully as if no divorce had occurred. (b)   Proceeds of sale.—Upon the sale of the real property for the collection of any sums of money due the divorced spouse under an order of court, the divorced spouse shall be entitled to receive therefrom such sum of money as represents the share of the divorced spouse in the property, as ordered by the court under section 4362 (relating to plaintiff’s share of proceeds of sale), together with any sums which may be due to the divorced spouse under an order of support against the former spouse.

694

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Table of Contents

CHAPTER 46

Part I Ch. 1–14 Brokers

NUISANCES AND RECREATIONAL USE OF LAND Chapter

Part II Ch. 15–22 Deeds

46.1  Nuisances    68 PS § 467 to 68 PS § 473 46.2   Recreational Use of Land    68 P.S. § 477-1 to 68 P.S. § 477-8

CHAPTER 46.1 NUISANCES

Part III Ch. 23–35 Mortgages

68 P.S. § 467 to 68 P.S. § 473

Sec.

1. Building used for fornication, etc., as nuisance 2. Knowledge of unlawful use by owner 3. Action to enjoin nuisance 4. Abatement of nuisance 5. Repealed 6. Violation of injunction; contempt 7. Violation of act

Part IV Ch. 36–40 Insurance

§ § § § § § §

Part VIII Ch. 64–67 L/T Part IX Ch. 68–72 Condos, etc. Index

gtb-parealestate22-all.indb 695

Part VII Ch. 57–63 Litigation

695

Part VI Ch. 49–56 Taxation

1. § 467 supra.

Part V Ch. 41–48A Zoning, etc.

§ 1.  Building used for fornication, etc., as nuisance Any building, or part of a building, used for the purpose of fornication, lewdness, assignation, and/or prostitution is hereby declared to be a common nuisance; and any person who maintains such a common nuisance shall be guilty of a misdemeanor, and, upon conviction, shall be sentenced to imprisonment for not more than one year, or pay a fine not exceeding one thousand dollars, or both, at the discretion of the court. § 2.  Knowledge of unlawful use by owner If a person, being the owner of any building, has knowledge of, or reason to believe, that such building, or a part thereof, is used for the purposes of fornication, lewdness, assignation, and/or prostitution, and suffers the same to be so used, such building shall be subject to a lien for and may be sold to pay all fines and costs assessed against the person guilty of maintaining such nuisance for such violation of this act; and the total amount of any such fine and costs may be entered, by the filing of a certificate thereof by the clerk of the court in which the same was imposed, in the court of common pleas of the county, and shall remain a lien in favor of such county until paid. Judgment may be obtained thereon and execution issued in the manner provided by law in the case of municipal liens. § 3.  Action to enjoin nuisance An action to enjoin any nuisances defined in section one of this act1 may be brought, in the name of the Commonwealth of Pennsylvania, by the Attorney General thereof or by the district attorney of the county concerned.

12/22/21 10:45 AM

§ 4

NUISANCES AND RECREATIONAL USE

§ 4.  Abatement of nuisance It shall not be necessary for the court to find the property involved was being unlawfully used, as aforesaid, at the time of the hearing, but on finding that the material allegations of the petition are true, the court shall order that the building nor any part thereof be not used for any of the purposes aforesaid. And upon judgment of the court ordering such nuisance to be abated, the court may order that the building, or any part thereof, shall not be occupied or used for any purpose whatsoever for one year thereafter, but the court may, in its discretion, permit it to be occupied or used if the owner thereof shall give bond, with sufficient surety to be approved by the court making the order, in the penal and liquidated sum of not less than one thousand dollars nor more than twenty-five hundred dollars, payable to the Commonwealth of Pennsylvania, and conditioned that the building, or part thereof, shall not be used for any of the purposes aforesaid, and that he will pay all fines, costs, and damages that may be assessed for any violation of this act upon said property. § 5.  Repealed by 1978, April 28, P.L. 202, No. 53, § 2(a)[1128], effective June 27, 1980 § 6.  Violation of injunction; contempt Any person, or any owner of such building, or any agent of such owner, who, after any injunction or order, as aforesaid, has been granted, shall use such building, or any part thereof, as aforesaid, or knowingly permit the same to be so used, shall be subject to summary punishment as for contempt of court, in the manner now provided by law. § 7.  Violation of act Any person violating any of the provisions of this act shall be guilty of a misdemeanor, and, upon conviction, shall be sentenced to imprisonment for not more than one year, or pay a fine not exceeding one thousand dollars, or both, at the discretion of the court.

CHAPTER 46.2 RECREATIONAL USE OF LAND 68 P.S. § 477-1 to 68 P.S. § 477-8

Sec. § § § § § § § §

1. Purpose; liability 2. Definitions 3. Duty to keep premises safe; warning 4. Assurance of safe premises; duty of care; responsibility, liability 5. Land leased to State or subdivision 6. Liability not limited 7. Construction of act 8. Repealer

§ 1.  Purpose; liability The purpose of this act is to encourage owners of land to make land and water areas available to the public for recreational purposes by limiting their liability. § 2.  Definitions As used in this act:

696

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GOVERNMENT REGULATION

Ch. 46.2

Part III Ch. 23–35 Mortgages Part IV Ch. 36–40 Insurance Part V Ch. 41–48A Zoning, etc. Part VI Ch. 49–56 Taxation Part VII Ch. 57–63 Litigation Part VIII Ch. 64–67 L/T Part IX Ch. 68–72 Condos, etc. Index

gtb-parealestate22-all.indb 697

Part II Ch. 15–22 Deeds

697

Part I Ch. 1–14 Brokers

(1)  “Land” means land, roads, water, watercourses, private ways and buildings, structures and machinery or equipment when attached to the realty. (2)  “Owner” means the possessor of a fee interest, a tenant, lessee, occupant or person in control of the premises. (3)  “Recreational purpose” includes, but is not limited to, any of the following, or any combination thereof: hunting, fishing, swimming, boating, recreational noncommercial aircraft operations or recreational noncommercial ultralight operations on private airstrips, camping, picnicking, hiking, pleasure driving, nature study, water skiing, water sports, cave exploration and viewing or enjoying historical, archaeological, scenic, or scientific sites. (4)  “Charge” means the admission price or fee asked in return for invitation or permission to enter or go upon the land. § 3.  Duty to keep premises safe; warning Except as specifically recognized or provided in section 6 of this act, an owner of land owes no duty of care to keep the premises safe for entry or use by others for recreational purposes, or to give any warning of a dangerous condition, use, structure, or activity on such premises to persons entering for such purposes. § 4.  Assurance of safe premises; duty of care; responsibility, liability Except as specifically recognized by or provided in section 6 of this act, an owner of land who either directly or indirectly invites or permits without charge any person to use such property for recreational purposes does not thereby: (1)   Extend any assurance that the premises are safe for any purpose. (2)  Confer upon such person the legal status of an invitee or licensee to whom a duty of care is owed. (3)   Assume responsibility for or incur liability for any injury to persons or property caused by an act of omission of such persons. (4)   Assume responsibility for or incur liability for any injury to persons or property, wherever such persons or property are located, caused while hunting as defined in 34 Pa.C.S. § 102 (relating to definitions). § 5.  Land leased to State or subdivision Unless otherwise agreed in writing, the provisions of sections 3 and 4 of this act shall be deemed applicable to the duties and liability of an owner of land leased to the State or any subdivision thereof for recreational purposes. § 6.  Liability not limited Nothing in this act limits in any way any liability which otherwise exists: (1)  For wilful or malicious failure to guard or warn against a dangerous condition, use, structure, or activity. (2)  For injury suffered in any case where the owner of land charges the person or persons who enter or go on the land for the recreational use thereof, except that in the case of land leased to the State or a subdivision thereof, any consideration received by the owner for such lease shall not be deemed a charge within the meaning of this section. § 7.  Construction of act Nothing in this act shall be construed to: (1)  Create a duty of care or ground of liability for injury to persons or property. (2)   Relieve any person using the land of another for recreational purposes from any obligation which he may have in the absence of this act to exercise care in his use of such land and in his activities thereon, or from the legal consequences of failure to employ such care. § 8.  Repealer The act of September 27, 1961 (P.L. 1696), [12 P.S. section 1629], is repealed. All other acts or parts of acts are repealed in so far as inconsistent herewith.

Table of Contents

PART V

12/22/21 10:45 AM

CHAPTER 47 PENNSYLVANIA HUMAN RELATIONS ACT 43 P.S. § 951 to 43 P.S. § 963

Sec.

§ 1. Short title § 2. Findings and declaration of policy § 3. Right to freedom from discrimination in employment, housing and public accommodation § 4. Definitions § 5. Unlawful Discriminatory Practices § 5.1. Religious observance; public employes § 5.2. Abortion and sterilization; immunity from requirement to perform; unlawful discriminatory practices § 5.3. Prohibition of certain real estate practices § 6. Pennsylvania Human Relations Commission § 7. Powers and duties of the Commission § 8. Educational Program § 8.1. Investigatory hearings relating to racial problems § 8.2. Restriction on Commission authority over pupil school assignment § 9. Procedure § 9.1. Procedure regarding housing advertisements § 9.2. Injunctions § 9.3. Civil penalties § 10. Enforcement and judicial review § 11. Penalties § 12. Construction and exclusiveness of remedy § 12.1. Local human relations commissions § 12.2. Cooperation of state agencies § 13. Separability

§ 1.  Short title This act may be cited as the “Pennsylvania Human Relations Act”. § 2.  Findings and declaration of policy (a)   The practice or policy of discrimination against individuals or groups by reason of their race, color, familial status, religious creed, ancestry, age, sex, national origin, handicap or disability, use of guide or support animals because of the blindness, deafness or physical handicap of the user or because the user is a handler or trainer of support or guide animals is a matter of concern of the Commonwealth. Such discrimination foments domestic strife and unrest, threatens the rights and privileges of the inhabitants of the Commonwealth, and undermines the foundations of a free democratic state. The denial of equal employment, housing and public accommodation opportunities because of such discrimination, and the consequent failure to utilize the productive capacities of individuals to their fullest extent, deprives large segments of the population of the Commonwealth of earnings necessary to maintain decent standards of living, necessitates their resort to public relief and intensifies group conflicts, thereby resulting in grave injury to the public health and welfare, compels many individuals to live in dwellings which are substandard, unhealthful and overcrowded, resulting in racial segregation in public schools and other community facilities, juvenile delinquency and other evils, thereby threatening the peace, health, safety and general welfare of the Commonwealth and its inhabitants. (b)  It is hereby declared to be the public policy of this Commonwealth to foster the employment of all individuals in accordance with their fullest capaci-

698

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GOVERNMENT REGULATION

Ch. 47

Part III Ch. 23–35 Mortgages Part IV Ch. 36–40 Insurance Part V Ch. 41–48A Zoning, etc. Part VI Ch. 49–56 Taxation Part VII Ch. 57–63 Litigation Part VIII Ch. 64–67 L/T Part IX Ch. 68–72 Condos, etc. Index

gtb-parealestate22-all.indb 699

Part II Ch. 15–22 Deeds

699

Part I Ch. 1–14 Brokers

ties regardless of their race, color, religious creed, ancestry, age, sex, national origin, handicap or disability, use of guide or support animals because of the blindness, deafness or physical handicap of the user or because the user is a handler or trainer of support or guide animals, and to safeguard their right to obtain and hold employment without such discrimination, to assure equal opportunities to all individuals and to safeguard their rights to public accommodation and to secure housing accommodation and commercial property regardless of race, color, familial status, religious creed, ancestry, age, sex, national origin, handicap or disability, use of guide or support animals because of blindness or deafness of the user or because the user is a handler or trainer of guide or support animals. (c)   This act shall be deemed an exercise of the police power of the Commonwealth for the protection of the public welfare, prosperity, health and peace of the people of the Commonwealth of Pennsylvania. § 3.  Right to freedom from discrimination in employment, housing and public accommodation The opportunity for an individual to obtain employment for which he is qualified, and to obtain all the accommodations, advantages, facilities and privileges of any public accommodation and of any housing accommodation and commercial property without discrimination because of race, color, familial status, religious creed, ancestry, handicap or disability, age, sex, national origin, the use of a guide or support animal because of the blindness, deafness or physical handicap of the user or because the user is a handler or trainer of support or guide animals is hereby recognized as and declared to be a civil right which shall be enforceable as set forth in this act. § 4.  Definitions As used in this act unless a different meaning clearly appears from the context: (a)  The term “person” includes one or more individuals, partnerships, associations, organizations, corporations, legal representatives, trustees in bankruptcy or receivers. It also includes, but is not limited to, any owner, lessor, assignor, builder, manager, broker, salesman, agent, employe, independent contractor, lending institution and the Commonwealth of Pennsylvania, and all political subdivisions, authorities, boards and commissions thereof. (b)  The term “employer” includes the Commonwealth or any political subdivision or board, department, commission or school district thereof and any person employing four or more persons within the Commonwealth, but except as hereinafter provided, does not include religious, fraternal, charitable or sectarian corporations or associations, except such corporations or associations supported, in whole or in part, by governmental appropriations. The term “employer” with respect to discriminatory practices based on race, color, age, sex, national origin or non-job related handicap or disability, includes religious, fraternal, charitable and sectarian corporations and associations employing four or more persons within the Commonwealth. (c)  The term “employe” does not include (1) any individual employed in agriculture or in the domestic service of any person, (2) any individuals who, as a part of their employment, reside in the personal residence of the employer, (3) any individual employed by said individual’s parents, spouse or child. (d)  The term “labor organizations” includes any organization which exists for the purpose, in whole or in part, of collective bargaining or of dealing with employers concerning grievances, terms or conditions of employment or of other mutual aid or protection in relation to employment. (e)  The term “employment agency” includes any person regularly undertaking, with or without compensation, to procure opportunities to work or to procure, recruit, refer or place employes.

Table of Contents

PART V

12/22/21 10:45 AM

§ 4

HUMAN RELATIONS ACT

(f)  The term “Commission” means the Pennsylvania Human Relations Commission created by this act. (g)  The term “discriminate” includes segregate. (h)  The term “age” includes any person forty years of age or older and shall also include any other person so protected by further amendment to the Federal Age Discrimination in Employment Act. (i)  The term “housing accommodations” includes (1) any building, structure, mobile home site or facility, or portion thereof, which is used or occupied or is intended, arranged or designed to be used or occupied as the home residence or sleeping place of one or more individuals, groups or families whether or not living independently of each other; and (2) any vacant land offered for sale, lease or held for the purpose of constructing or locating thereon any such building, structure, mobile home site or facility. The term “housing accommodation” shall not include any personal residence offered for rent by the owner or lessee thereof or by his or her broker, salesperson, agent or employe. (j)  The term “commercial property” means (1) any building, structure or facility, or portion thereof, which is used, occupied or is intended, arranged or designed to be used or occupied for the purpose of operating a business, an office, a manufactory or any public accommodation; and (2) any vacant land offered for sale, lease or held for the purpose of constructing or locating thereon any such building, structure, facility, business concern or public accommodation. (k)  The term “personal residence” means a building or structure containing living quarters occupied or intended to be occupied by no more than two individuals, two groups or two families living independently of each other and used by the owner or lessee thereof as a bona fide residence for himself and any members of his family forming his household. (l)  The term “public accommodation, resort or amusement” means any accommodation, resort or amusement which is open to, accepts or solicits the patronage of the general public, including but not limited to inns, taverns, roadhouses, hotels, motels, whether conducted for the entertainment of transient guests or for the accommodation of those seeking health, recreation or rest, or restaurants or eating houses, or any place where food is sold for consumption on the premises, buffets, saloons, barrooms or any store, park or enclosure where spirituous or malt liquors are sold, ice cream parlors, confectioneries, soda fountains and all stores where ice cream, ice and fruit preparations or their derivatives, or where beverages of any kind are retailed for consumption on the premises, drug stores, dispensaries, clinics, hospitals, bathhouses, swimming pools, barber shops, beauty parlors, retail stores and establishments, theatres, motion picture houses, airdromes, roof gardens, music halls, race courses, skating rinks, amusement and recreation parks, fairs, bowling alleys, gymnasiums, shooting galleries, billiard and pool parlors, public libraries, kindergartens, primary and secondary schools, high schools, academies, colleges and universities, extension courses and all educational institutions under the supervision of this Commonwealth, nonsectarian cemeteries, garages and all public conveyances operated on land or water or in the air as well as the stations, terminals and airports thereof, financial institutions and all Commonwealth facilities and services, including such facilities and services of all political subdivisions thereof, but shall not include any accommodations which are in their nature distinctly private. (m)  The term “political subdivision” means any county, city, borough, incorporated town or township of this Commonwealth. (n)  The term “legislative body” means the body or board authorized by law to enact ordinances or adopt resolutions for the political subdivision. (o)  The term “local commission” means a Human Relations Commission created by the legislative body of a political subdivision.

700

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GOVERNMENT REGULATION

Ch. 47

Part IV Ch. 36–40 Insurance Part V Ch. 41–48A Zoning, etc. Part VI Ch. 49–56 Taxation Part VII Ch. 57–63 Litigation Part VIII Ch. 64–67 L/T Part IX Ch. 68–72 Condos, etc.

(iii)   is intended and operated for occupancy by at least one person fiftyfive years of age or older per unit.

Part III Ch. 23–35 Mortgages

(ii)   is intended for and solely occupied by persons sixty-two years of age or older; or

Part II Ch. 15–22 Deeds

(i)   provided under any Federal or State program that the Pennsylvania Human Relations Commission determines is specifically designed and operated to assist elderly persons as defined in the Federal or State program;

Part I Ch. 1–14 Brokers

(p)  The term “non-job related handicap or disability” means any handicap or disability which does not substantially interfere with the ability to perform the essential functions of the employment which a handicapped person applies for, is engaged in or has been engaged in. Uninsurability or increased cost of insurance under a group or employe insurance plan does not render a handicap or disability job related. (p.1)  The term “handicap or disability,” with respect to a person, means: (1)   a physical or mental impairment which substantially limits one or more of such person’s major life activities; (2)   a record of having such an impairment; or (3)   being regarded as having such an impairment, but such term does not include current, illegal use of or addiction to a controlled substance, as defined in section 102 of the Controlled Substances Act (Public Law 91-513, 21 U.S.C. § 802). (q)  The term “permanent hearing examiner” shall mean a full-time employe who is an attorney. (r)  The term “designated agent of the complainant” shall mean an individual who is a para-legal under the supervision of a practicing attorney. (s)  The term “commercial profit” means any form of compensation in money, or which can be measured in terms of money. (t)  The term “familial status” means one or more individuals who have not attained the age of eighteen years being domiciled with: (1)  a parent or other person having legal custody of such individual or individuals; or (2)   the designee of such parent or other person having such custody, with the written permission of such parent or other person. The protections afforded against discrimination on the basis of familial status shall apply to any person who is pregnant or is in the process of securing legal custody of any individual who has not attained the age of 18 years. (u)  The term “Fair Housing Act” means Public Law 90-284, 42 U.S.C. § 3601 et seq. (v)  The term “accessible” means being in compliance with the applicable standards set forth in the following: (1)   the Fair Housing Act (Public Law 90-284, 42 U.S.C. § 3601 et seq.); (2)  the Americans with Disabilities Act of 1990 (Public Law 101-336, 42 U.S.C. § 12101 et seq.); and (3)   the act of September 1, 1965 (P.L. 459, No. 235), entitled, as amended, “An act requiring that certain buildings and facilities adhere to certain principles, standards and specifications to make the same accessible to and usable by persons with physical handicaps, and providing for enforcement.”1 (w)(1)  The term “housing for older persons” means housing:

Table of Contents

PART V

1. 71 P.S. § 1455.1 et seq.

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Index

701

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§ 5

HUMAN RELATIONS ACT

(2)   In determining whether housing qualifies as housing for older persons under this clause, the Pennsylvania Human Relations Commission’s requirements shall include, but not be limited to, the following: (i)  Deleted. (ii)   At least eighty percent of the units are occupied by at least one person fifty-five years of age or older per unit. (iii)  There is publication of, and adherence to, policies and procedures which demonstrate an intent by the owner or manager to provide housing for persons fifty-five years of age or older. (iv)   The housing complies with regulations promulgated by the Pennsylvania Human Relations Commission for verification of occupancy. Regulations under this paragraph shall do all of the following: (A)   Provide for verification by reliable surveys and affidavits. Surveys and affidavits under this subparagraph shall be admissible in administrative and judicial proceedings for the purpose of verification under this paragraph. (B)   Include examples of the types of policies and procedures relevant to a determination of compliance with the requirement of paragraph (iii). (3)  Housing shall not fail to meet the requirements for housing for older persons by reason of unoccupied units provided that such units are reserved for occupancy by persons who meet the age requirements of this clause. (x)  The term “independent contractor” includes any person who is subject to the provisions governing any of the professions and occupations regulated by State licensing laws enforced by the Bureau of Professional and Occupational Affairs in the Department of State, or is included in the Fair Housing Act (Public Law 90-284, 42 U.S.C. § 3601 et seq.). (y)  The term “real estate-related transaction” means any of the following: (1)   The making or purchasing of loans or providing other financial assistance for purchasing, constructing, improving, repairing or maintaining a housing accommodation or commercial property. (2)  The purchasing, constructing, improving, repairing or maintaining a housing accommodation or commercial property. (3)   The selling, brokering or appraising of real property. (z)  The term “advertisement” or “advertising” means any advertisement and any similar written, printed, taped or broadcast communication, notice, statement or the like which is disseminated (whether published, printed, circulated, issued, displayed, posted or mailed) for the purpose of promoting housing activity, including, but not limited to, rentals, leases and sales. (aa)  The term “advertiser” means any person who places, publishes, broadcasts or similarly causes to be disseminated by any other means an advertisement or advertising as defined in clause (z). § 5.  Unlawful Discriminatory Practices It shall be an unlawful discriminatory practice, unless based upon a bona fide occupational qualification, or in the case of a fraternal corporation or association, unless based upon membership in such association or corporation, or except where based upon applicable security regulations established by the United States or the Commonwealth of Pennsylvania: (a)  For any employer because of the race, color, religious creed, ancestry, age, sex, national origin or non-job related handicap or disability or the use of a guide or support animal because of the blindness, deafness or physical handicap of any individual or independent contractor, to refuse to hire or employ or

702

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12/22/21 10:45 AM

GOVERNMENT REGULATION

Ch. 47

Part I Ch. 1–14 Brokers Part II Ch. 15–22 Deeds Part III Ch. 23–35 Mortgages Part IV Ch. 36–40 Insurance Part V Ch. 41–48A Zoning, etc. Part VI Ch. 49–56 Taxation Part VII Ch. 57–63 Litigation Part VIII Ch. 64–67 L/T Part IX Ch. 68–72 Condos, etc.

contract with, or to bar or to discharge from employment such individual or independent contractor, or to otherwise discriminate against such individual or independent contractor with respect to compensation, hire, tenure, terms, conditions or privileges of employment or contract, if the individual or independent contractor is the best able and most competent to perform the services required. The provision of this paragraph shall not apply, to (1) operation of the terms or conditions of any bona fide retirement or pension plan which have the effect of a minimum service requirement, (2) operation of the terms or conditions of any bona fide group or employe insurance plan, (3) age limitations placed upon entry into bona fide apprenticeship programs of two years or more approved by the State Apprenticeship and Training Council of the Department of Labor and Industry, established by the act of July 14, 1961 (P.L. 604, No. 304), known as “The Apprenticeship and Training Act.”2 Notwithstanding any provision of this clause, it shall not be an unlawful employment practice for a religious corporation or association to hire or employ on the basis of sex in those certain instances where sex is a bona fide occupational qualification because of the religious beliefs, practices, or observances of the corporation, or association. (b)   For any employer, employment agency or labor organization, prior to the employment, contracting with an independent contractor or admission to membership, to: (1)   Elicit any information or make or keep a record of or use any form of application or application blank containing questions or entries concerning the race, color, religious creed, ancestry, age, sex, national origin, past handicap or disability or the use of a guide or support animal because of the blindness, deafness or physical handicap of any applicant for employment or membership. Prior to an offer of employment, an employer may not inquire as to whether an individual has a handicap or disability or as to the severity of such handicap or disability. An employer may inquire as to the individual’s ability to perform the essential functions of the employment. (2)   Print or publish or cause to be printed or published any notice or advertisement relating to employment or membership indicating any preference, limitation, specification or discrimination based upon race, color, religious creed, ancestry, age, sex, national origin, non-job related handicap or disability or the use of a guide or support animal because of the blindness, deafness or physical handicap of the user. (3)   Deny or limit, through a quota system, employment or membership because of race, color, religious creed, ancestry, age, sex, national origin, non-job related handicap or disability, the use of a guide or support animal because of the blindness, deafness or physical handicap of the user or place of birth. (4)   Substantially confine or limit recruitment or hiring of individuals, with intent to circumvent the spirit and purpose of this act, to any employment agency, employment service, labor organization, training school or training center or any other employe-referring source which services individuals who are predominantly of the same race, color, religious creed, ancestry, age, sex, national origin or non-job related handicap or disability. (5)   Deny employment because of a prior handicap or disability. Nothing in clause (b) of this section shall bar any institution or organization for handicapped or disabled persons from limiting or giving preference in employment or membership to handicapped or disabled persons. (c)   For any labor organization because of the race, color, religious creed, ancestry, age, sex, national origin, non-job related handicap or disability or the use of a

Table of Contents

PART V

2. 43 P.S. § 90.1 et seq.

gtb-parealestate22-all.indb 703

Index

703

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§ 5

HUMAN RELATIONS ACT

guide or support animal because of the blindness, deafness or physical handicap of any individual to deny full and equal membership rights to any individual or otherwise to discriminate against such individuals with respect to hire, tenure, terms, conditions or privileges of employment or any other matter, directly or indirectly, related to employment. (d)  For any person, employer, employment agency or labor organization to discriminate in any manner against any individual because such individual has opposed any practice forbidden by this act, or because such individual has made a charge, testified or assisted, in any manner, in any investigation, proceeding or hearing under this act. (e)   For any person, employer, employment agency, labor organization or employe, to aid, abet, incite, compel or coerce the doing of any act declared by this section to be an unlawful discriminatory practice, or to obstruct or prevent any person from complying with the provisions of this act or any order issued thereunder, or to attempt, directly or indirectly, to commit any act declared by this section to be an unlawful discriminatory practice. (f)   For any employment agency to fail or refuse to classify properly, refer for employment or otherwise to discriminate against any individual because of his race, color, religious creed, ancestry, age, sex, national origin, non-job related handicap or disability or the use of a guide or support animal because of the blindness, deafness or physical handicap of the user. (g)   For any individual seeking employment to publish or cause to be published any advertisement which in any manner expresses a limitation or preference as to the race, color, religious creed, ancestry, age, sex, national origin, non-job related handicap or disability or the use of a guide or support animal because of the blindness, deafness or physical handicap of any prospective employer. (h)   For any person to: (1)   Refuse to sell, lease, finance or otherwise to deny or withhold any housing accommodation or commercial property from any person because of the race, color, familial status, age, religious creed, ancestry, sex, national origin or handicap or disability of any person, prospective owner, occupant or user of such housing accommodation or commercial property, or to refuse to lease any housing accommodation or commercial property to any person due to use of a guide animal because of the blindness or deafness of the user, use of a support animal because of a physical handicap of the user or because the user is a handler or trainer of support or guide animals or because of the handicap or disability of an individual with whom the person is known to have a relationship or association. (1.1)   Evict or attempt to evict an occupant of any housing accommodation before the end of the term of a lease because of pregnancy or the birth of a child. (2)   Refuse to lend money, whether or not secured by mortgage or otherwise for the acquisition, construction, rehabilitation, repair or maintenance of any housing accommodation or commercial property or otherwise withhold financing of any housing accommodation or commercial property from any person because of the race, color, familial status, age, religious creed, ancestry, sex, national origin, handicap or disability of any person, the use of a guide or support animal because of the blindness, deafness or physical handicap of the user or because the user is a handler or trainer of support or guide animals or because of the handicap or disability of an individual with whom the person is known to have a relationship or association. (3)   Discriminate against any person in the terms or conditions of selling or leasing any housing accommodation or commercial property or in furnishing facilities, services or privileges in connection with the ownership, occupancy or use of any housing accommodation or commercial property because of the

704

gtb-parealestate22-all.indb 704

12/22/21 10:45 AM

GOVERNMENT REGULATION

Ch. 47

Part III Ch. 23–35 Mortgages Part IV Ch. 36–40 Insurance Part V Ch. 41–48A Zoning, etc. Part VI Ch. 49–56 Taxation Part VII Ch. 57–63 Litigation Part VIII Ch. 64–67 L/T Part IX Ch. 68–72 Condos, etc. Index

gtb-parealestate22-all.indb 705

Part II Ch. 15–22 Deeds

705

Part I Ch. 1–14 Brokers

race, color, familial status, age, religious creed, ancestry, sex, national origin, handicap or disability of any person, the use of a guide or support animal because of the blindness, deafness or physical handicap of the user or because the user is a handler or trainer of support or guide animals or because of the handicap or disability of an individual with whom the person is known to have a relationship or association. (3.1)   Refuse to permit, at the expense of a person with a handicap, reasonable modifications of existing premises occupied or to be occupied by such person if such modifications may be necessary to afford such person full enjoyment of the premises, except that, in the case of a rental, the landlord may, where it is reasonable to do so, grant permission for a modification if the renter agrees to restore the interior of the premises to the condition that existed before the modification, with reasonable wear and tear excepted. (3.2)   Refuse to make reasonable accommodations in rules, policies, practices or services when such accommodations may be necessary to afford such person equal opportunity to use and enjoy a housing accommodation. (4)   Discriminate against any person in the terms or conditions of any loan of money, whether or not secured by mortgage or otherwise for the acquisition, construction, rehabilitation, repair or maintenance of housing accommodation or commercial property because of the race, color, familial status, age, religious creed, ancestry, sex, national origin or handicap or disability of any person, the use of a guide or support animal because of the blindness, deafness or physical handicap of the user or because the user is a handler or trainer of guide or support animals or because of the handicap or disability of an individual with whom the person is known to have a relationship or association. (5)   Print, publish or circulate any statement or advertisement: (i) relating to the sale, lease or acquisition of any housing accommodation or commercial property or the loan of money, whether or not secured by mortgage, or otherwise for the acquisition, construction, rehabilitation, repair or maintenance of any housing accommodation or commercial property which indicates any preference, limitation, specification, or discrimination based upon race, color, familial status, age, religious creed, ancestry, sex, national origin, handicap or disability or because of the handicap or disability of an individual with whom the person is known to have a relationship or association, or (ii) relating to the sale, lease or acquisition of any housing accommodation or commercial property which indicates any preference, limitation, specification or discrimination based upon use of a guide or support animal because of the blindness, deafness or physical handicap of the user or because the user is a handler or trainer of support or guide animals. (6)   Make any inquiry, elicit any information, make or keep any record or use any form of application, containing questions or entries concerning race, color, familial status, age, religious creed, ancestry, sex, national origin, handicap or disability or because of the handicap or disability of an individual with whom the person is known to have a relationship or association in connection with the sale or lease of any housing accommodation or commercial property or loan of any money, whether or not secured by mortgage or otherwise for the acquisition, construction, rehabilitation, repair or maintenance of any housing accommodation or commercial property, or to make any inquiry, elicit any information, make or keep any record or use any form of application, containing questions or entries concerning the use of a guide or support animal because of the blindness, deafness or physical handicap of the user or because the user is a handler or trainer of support or guide animals, in connection with the lease of any housing accommodation or commercial property. (7)   Construct, operate, offer for sale, lease or rent or otherwise make available housing or commercial property which is not accessible.

Table of Contents

PART V

12/22/21 10:45 AM

§ 5

HUMAN RELATIONS ACT

(8)  Discriminate in real estate-related transactions, as described by and subject to the following: (i)  It shall be unlawful for any person or other entity whose business includes engaging in real estate-related transactions to discriminate against any person in making available such a transaction or in the terms of conditions of such a transaction because of race, color, religious creed, ancestry, national origin, sex, age, handicap or disability, use of a guide or support animal because of a physical handicap or because the user is a handler or trainer of guide or support animals or familial status. (ii)  Nothing in this act prohibits a person engaged in the business of furnishing appraisals of real property to take into consideration factors other than race, color, religious creed, ancestry, national origin, sex, age, handicap or disability, use of a guide or support animal because of a physical handicap or because the user is a handler or trainer of guide or support animals or familial status. (9)   Nothing in this clause, regarding age or familial status, shall apply with respect to housing for older persons. A person shall not be held personally liable for monetary damages for a violation of this act if the person reasonably relied, in good faith, on the application of the exemption of this subclause. A person may only prove good faith reliance on the application of the exemption of this subclause by proving that at the time of the act complained of all of the following applied: (i)   The person had no actual knowledge that the housing was not eligible for exemption under this subclause. (ii)  The owner or manager of the housing had stated formally, in writing, that the housing complied with the requirements for exemption under this subclause. (10)   Nothing in this clause shall bar any religious or denominational institution or organization or any charitable or educational organization which is operated, supervised or controlled by or in connection with a religious organization or any bona fide private or fraternal organization from giving preference to persons of the same religion or denomination or to members of such private or fraternal organization or from making such selection as is calculated by such organization to promote the religious principles or the aims, purposes or fraternal principles for which it is established or maintained. Nor shall it apply to the rental of rooms in a landlord-occupied rooming house with a common entrance, nor with respect to discrimination based on sex, the advertising, rental or leasing of housing accommodations in a single-sex dormitory or rooms in one’s personal residence in which common living areas are shared. (11)   Nothing in this act limits the applicability of the Fair Housing Act and reasonable State or local restrictions on the maximum number of occupants permitted to occupy a dwelling or a reasonable restriction relating to health or safety standards or business necessity. Owners and managers of dwellings may develop and implement reasonable occupancy and safety standards based on factors such as the number and size of sleeping areas or bedrooms and the overall size of a dwelling unit so long as the standards do not violate the Fair Housing Act or State or local restrictions. (i)   For any person being the owner, lessee, proprietor, manager, superintendent, agent or employe of any public accommodation, resort or amusement to: (1)   Refuse, withhold from, or deny to any person because of his race, color, sex, religious creed, ancestry, national origin or handicap or disability, or to any person due to use of a guide or support animal because of the blindness, deafness or physical handicap of the user or because the user is a handler or

706

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GOVERNMENT REGULATION

Ch. 47

(l)  To exclude or otherwise deny equal jobs or benefits to a person because of the handicap or disability of an individual with whom the person is known to have a relationship or association.

§ 5.1.  Religious observance; public employes

gtb-parealestate22-all.indb 707

Index

707

Part IX Ch. 68–72 Condos, etc.

(b)   Except as may be required in an emergency or where personal presence is indispensable to the orderly transaction of public business, no person employed by the State or any of its political subdivisions shall be required to remain at the place of employment during any day or days or portion thereof that, as a religious requirement, the person observes as the sabbath or other holy day, including a reasonable time prior and subsequent thereto for travel between the place of employment and home, provided however, that any such absence from work shall,

Part VIII Ch. 64–67 L/T

(a)   It shall be an unlawful discriminatory practice for any officer, agency or department of the State or any of its political subdivisions, to prohibit, prevent or disqualify any person from, or otherwise to discriminate against any person in, obtaining or holding employment by the State or by any such subdivision, because of such person’s observance of any particular day or days or any portion thereof as a sabbath or other holy day in accordance with the requirements of the person’s religion.

Part VII Ch. 57–63 Litigation

This section of the act shall not be construed to prohibit the refusal to hire or the dismissal of a person who is not able to function properly in the job applied for or engaged in.

Part VI Ch. 49–56 Taxation

(k)  For any employer to discriminate against an employe or a prospective employe because the employe only has a diploma based on passing a general educational development test as compared to a high school diploma. However, should vocational technical training or other special training be required with regard to a specific position, then such training or special training may be considered by the employer.

Part V Ch. 41–48A Zoning, etc.

(j)   For any person subject to the act to fail to post and exhibit prominently in his place of business any fair practices notice prepared and distributed by the Pennsylvania Human Relations Commission.

Part IV Ch. 36–40 Insurance

(4)  Construct, operate or otherwise make available such place of public accommodation, resort or amusement which is not accessible.

Part III Ch. 23–35 Mortgages

(3)  Exclude or otherwise deny equal goods, services, facilities, privileges, advantages, accommodations or other opportunities to a person because of the handicap or disability of an individual with whom the person is known to have a relationship or association.

Part II Ch. 15–22 Deeds

(2)  Publish, circulate, issue, display, post or mail, either directly or indirectly, any written or printed communication, notice or advertisement to the effect that any of the accommodations, advantages, facilities and privileges of any such place shall be refused, withheld from or denied to any person on account of race, color, religious creed, sex, ancestry, national origin or handicap or disability, or to any person due to use of a guide or support animal because of the blindness, deafness or physical handicap of the user, or because the user is a handler or trainer of support or guide animals, or that the patronage or custom thereat of any person, belonging to or purporting to be of any particular race, color, religious creed, sex, ancestry, national origin or handicap or disability, or to any person due to use of a guide or support animal because of the blindness, deafness or physical handicap of the user or because the user is a handler or trainer of support or guide animals, is unwelcome, objectionable or not acceptable, desired or solicited.

Part I Ch. 1–14 Brokers

trainer of support or guide animals, either directly or indirectly, any of the accommodations, advantages, facilities or privileges of such public accommodation, resort or amusement.

Table of Contents

PART V

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§ 5.2

HUMAN RELATIONS ACT

wherever practicable in the judgment of the employer, be made up by an equivalent amount of time and work at some other mutually convenient time, or shall be charged against any leave with pay ordinarily granted, other than sick leave, provided further, however, that any such absence not so made up or charged, may be treated by the employer of such person as leave taken without pay. (c)   This section shall not be construed to apply to any position dealing with the public health or safety where the person holding such position must be available for duty whenever needed, or to any position or class of positions the nature and quality of the duties of which are such that the personal presence of the holder of such position is regularly essential on any particular day or days or portion thereof for the normal performance of such duties with respect to any applicant therefor or holder thereof who, as a religious requirement, observes such day or days or portion thereof as the sabbath or other holy day. § 5.2.  Abortion and sterilization; immunity from requirement to perform; unlawful discriminatory practices (a)   No hospital or other health care facility shall be required to, or held liable for refusal to, perform or permit the performance of abortion or sterilization contrary to its stated ethical policy. No physician, nurse, staff member or employe of a hospital or other health care facility, who shall state in writing to such hospital or health care facility an objection to performing, participating in, or cooperating in, abortion or sterilization on moral, religious or professional grounds, shall be required to, or held liable for refusal to, perform, participate in, or cooperate in such abortion or sterilization. (b)   It shall be an unlawful discriminatory practice: (1)   For any person to impose penalties or take disciplinary action against, or to deny or limit public funds, licenses, certifications, degrees, or other approvals or documents of qualification to, any hospital or other health care facility, refusal of such hospital or health care facility to perform or permit to be performed, participate in, or cooperate in, abortion or sterilization by reason of objection thereto on moral, religious or professional grounds, or because of any statement or other manifestation of attitude by such hospital or health care facility with respect to abortion or sterilization. (2)   For any person to impose penalties or take disciplinary action against, or to deny or limit public funds, licenses, certifications, degrees, or other approvals or documents of qualification to any physician, nurse or staff member or employe of any hospital or health care facility, due to the willingness or refusal of such physician, nurse or staff member or employe to perform or participate in abortion or sterilization by reason of objection thereto on moral, religious or professional grounds, or because of any statement or other manifestation of attitude by such physician, nurse or staff member or employe with respect to abortion or sterilization. (3)  For any public or private agency, institution or person, including a medical, nursing or other school, to deny admission to, impose any burdens in terms of conditions of employment upon, or otherwise discriminate against any applicant for admission thereto or any physician, nurse, staff member, student or employe thereof, on account of the willingness or refusal of such applicant, physician, nurse, staff member, student or employe to perform or participate in, abortion or sterilization by reason of objection thereto on moral, religious or professional grounds, or because of any statement or other manifestation of attitude by such person with respect to abortion or sterilization: Provided, however, That this subsection shall not apply to any health care facility operated exclusively for the performance of abortion or sterilization or directly related procedures or to a separate clinic of a health care facility for the performance of abortion or sterilization or directly related procedures.

708

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GOVERNMENT REGULATION

Ch. 47

Table of Contents

PART V

§ 5.3.  Prohibition of certain real estate practices

Index

gtb-parealestate22-all.indb 709

Part IX Ch. 68–72 Condos, etc.

709

Part VIII Ch. 64–67 L/T

(b)   Said Commission shall consist of eleven members, to be known as Commissioners, who shall be appointed by the Governor by and with the advice and consent of a majority of the members of the Senate, not more than six of such Commissioners to be from the same political party, and each of whom shall hold office for a term of five years or until his successor shall have been duly appointed and qualified. Vacancies occurring in an office of a member of the Commission by expiration of term, death, resignation, removal or for any other reason shall be filled in the manner aforesaid for the balance of that term. Commission members failing to attend meetings for three consecutive months shall forfeit their seats unless the chairperson of the commission receives written notification from the member involved that the absence was due to personal illness or the death or illness of an immediate family member.

Part VII Ch. 57–63 Litigation

(a)   There shall be, and there is hereby established in the Governor’s Office a non-partisan, departmental administrative commission for the administration of this act, which shall be known as the “Pennsylvania Human Relations Commission,” and which is hereinafter referred to as the “Commission.”

Part VI Ch. 49–56 Taxation

§ 6.  Pennsylvania Human Relations Commission

Part V Ch. 41–48A Zoning, etc.

(d)   In any way misrepresent or otherwise misadvertise within a neighborhood or community, whether or not in writing, that any housing accommodation or commercial property within such neighborhood or community is available for inspection, sale, lease, sublease or other transfer, in any context where such misrepresentation or misadvertising would have the effect of fostering an impression or belief that there has been or will be an increase in real estate activity within such neighborhood or community due to the residence, or anticipated increased or decreased residence, of persons of a particular race, color, familial status, age, religious creed, ancestry, sex, national origin, handicap or disability, or the use of a guide or support animal because of the blindness, deafness or physical handicap of the user.

Part IV Ch. 36–40 Insurance

(c)   Misrepresent, create or distort a circumstance, condition or incident for the purpose of fostering the impression or belief, on the part of any owner, occupant or prospective owner or occupant of any housing accommodation or commercial property, that such housing accommodation or commercial property is within any neighborhood, community or area adjacent to any other area which would be adversely impacted by the residence, or future increased or decreased residence, of persons of a particular race, color, familial status, age, religious creed, ancestry, sex, national origin, handicap or disability, or who are guide or support animal dependent within such neighborhood, community or area.

Part III Ch. 23–35 Mortgages

(b)   Discourage, or attempt to discourage, for commercial profit, the purchase or lease of any housing accommodation or commercial property by representing that such housing accommodation or commercial property is within any neighborhood, community or area adjacent to any other area in which there reside, or may in the future reside in increased or decreased numbers, persons of a particular race, color, familial status, age, religious creed, ancestry, sex, national origin, handicap or disability, or who are guide or support animal dependent.

Part II Ch. 15–22 Deeds

(a)  Induce, solicit or attempt to induce or solicit for commercial profit any listing, sale or transaction involving any housing accommodation or commercial property by representing that such housing accommodation or commercial property is within any neighborhood, community or area adjacent to any other area in which there reside, or do not reside, persons of a particular race, color, familial status, age, religious creed, ancestry, sex, national origin, handicap or disability, or who are guide or support animal dependent.

Part I Ch. 1–14 Brokers

It shall be an unlawful discriminatory practice for any person to:

12/22/21 10:45 AM

§ 7

HUMAN RELATIONS ACT

(c)  Subject to the provisions of this act, the Commission shall have all the powers and shall perform the duties generally vested in and imposed upon departmental administrative boards and commissions by the act, approved the ninth day of April, one thousand nine hundred twenty-nine (Pamphlet Laws 177), known as “The Administrative Code of one thousand nine hundred twenty-nine,” and its amendments, and shall be subject to all the provisions of such code which apply generally to departmental administrative boards and commissions. (d)   The Governor shall designate one of the members of the Commission to be its chairperson who shall preside at all meetings of the Commission and perform all the duties and functions of the chairperson thereof. The Commission may designate one of its members to act as chairperson during the absence or incapacity of the chairperson and, when so acting, the member so designated shall have and perform all the powers and duties of the chairperson of the Commission. (e)   Six members of the Commission or a majority of those duly appointed and qualified shall constitute a quorum for transacting business, and a majority vote of those present at any meeting shall be sufficient for any official action taken by the Commission. (f)   Each member of the Commission shall receive per diem compensation at the rate of sixty dollars ($60) per day for the time actually devoted to the business of the Commission. Members shall also receive the amount of reasonable traveling, hotel and other necessary expenses incurred in the performance of their duties in accordance with Commonwealth regulations. (g)   The Commission shall adopt an official seal by which its acts and proceedings shall be authenticated, and of which the courts shall take judicial notice. The certificate of the chairperson of the Commission, under the seal of the Commission and attested by the secretary, shall be accepted in evidence in any judicial proceeding in any court of this Commonwealth as adequate and sufficient proof of the acts and proceedings of the Commission therein certified to. § 7.  Powers and duties of the Commission The Commission shall have the following powers and duties: (a)   To establish and maintain a central office in the City of Harrisburg. (b)   To meet and function at any place within the Commonwealth. (c)  To appoint such attorneys and permanent hearing examiners and other employes and agents as it may deem necessary, fix their compensation within the limitations provided by law, and prescribe their duties. Permanent hearing examiners shall perform no duties inconsistent with their duties and responsibilities as permanent hearing examiners. (c.1)   To conduct mandatory training seminars on the Pennsylvania Human Relations Act and other applicable Federal and State law, procedures and rules for all investigative personnel. (c.2)   To afford complainants and respondents the opportunity for comments after the final disposition of a complaint. These comments shall be provided to the Commission members. (c.3)   To appoint attorneys to perform the following functions: (1) render legal advice to Commission members on matters appearing before it; or (2) give legal assistance to complainants appearing before the Commission or hearing examiners. These responsibilities shall require a separate staff of attorneys to perform each function. (d)   To adopt, promulgate, amend and rescind rules and regulations to effectuate the policies and provisions of this act. (e)   To formulate policies to effectuate the purposes of this act and make recommendations to agencies and officers of the Commonwealth or political subdivi-

710

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GOVERNMENT REGULATION

Ch. 47

Part III Ch. 23–35 Mortgages Part IV Ch. 36–40 Insurance Part V Ch. 41–48A Zoning, etc. Part VI Ch. 49–56 Taxation Part VII Ch. 57–63 Litigation Part VIII Ch. 64–67 L/T Part IX Ch. 68–72 Condos, etc. Index

gtb-parealestate22-all.indb 711

Part II Ch. 15–22 Deeds

711

Part I Ch. 1–14 Brokers

sions of government or board, department, commission or school district thereof to effectuate such policies. (f)   To initiate, receive, investigate and pass upon complaints charging unlawful discriminatory practices. (f.1)   To investigate where no complaint has been filed but with the consent of at least eight of the members of the Commission any problem of racial discrimination with the intent of avoiding and preventing the development of racial tension. (f.2)   On request of the Governor, to investigate claims of excessive use of force by police in civil rights protest activities. (g)(1)  To hold hearings, subpoena witnesses, compel their attendance, administer oaths, take testimony of any person under oath or affirmation and, in connection therewith, to require the production for examination of any books and papers relating to any matter under investigation where a complaint has been properly filed before the Commission. The Commission may make rules as to the issuance of subpoenas by individual Commissioners. In case of contumacy or refusal to obey a subpoena issued to any person any court of jurisdiction, upon application by the Commission, may issue to such person an order requiring such person to appear before the Commission, there to produce documentary evidence, if so ordered, or there to give evidence touching the matter in question, and any failure to obey such order of the court may be punished by said court as a contempt thereof. (2)   No person shall be excused from attending and testifying, or from producing records, correspondence, documents or other evidence in obedience to the subpoena of the Commission or of any individual Commissioner, on the ground that the testimony or evidence required of him may tend to incriminate him or subject him to a penalty or forfeiture, but no person shall be prosecuted or subjected to any penalty or forfeiture for or on account of any transaction, matter or thing concerning which he is compelled, after having claimed his privilege against self-incrimination, to testify or produce evidence, except that such person so testifying shall not be exempt from prosecution and punishment for perjury committed in so testifying. The immunity herein provided shall extend only to natural persons so compelled to testify. (h)   To inspect upon request such records of the Commonwealth or any political subdivision, board, department, commission or school district thereof as it may deem necessary or advisable to carry into effect the provisions of this act. (i)   To create such advisory agencies and conciliation councils, local or statewide, as will aid in effectuating the purposes of this act. The Commission may itself or it may empower these agencies and councils to (1) study the problems of discrimination in all or specific fields of human relationships when based on race, color, familial status, religious creed, ancestry, age, sex, national origin or handicap or disability, and (2) foster, through community effort or otherwise, good will among the groups and elements of the population of the State. Such agencies and councils may make recommendations to the Commission for the development of policies and procedure in general. Advisory agencies and conciliation councils created by the Commission shall be composed of representative citizens, serving without pay, but the Commission may make provision for technical and clerical assistance to such agencies and councils, and for the payment of the expenses of such assistance. (j)   To issue such publications and such results of investigations and research as, in its judgment, will tend to promote good will and minimize or eliminate discrimination because of race, color, familial status, religious creed, ancestry, age, sex, national origin or handicap or disability. (k)   To submit an annual report for each fiscal year by the following March 31 to the General Assembly, the Labor and Industry Committee of the Senate

Table of Contents

PART V

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§ 8

HUMAN RELATIONS ACT

and the State Government Committee of the House of Representatives and the Governor describing in detail the types of complaints received, the investigations, status of cases, Commission action which has been taken, how many were found to have probable cause, how many were resolved by public hearing and the length of time from the initial complaint to final Commission resolution. It shall also contain recommendations for such further legislation concerning abuses and discrimination because of race, color, familial status, religious creed, ancestry, national origin, age, sex, handicap or disability or the use of a guide or support animal because of the blindness, deafness or physical handicap of the user or because the user is a handler or trainer of support or guide animals, as may be desirable. (l)   To prepare and distribute fair practices notices. (m)  Deleted by amendment. 1991, Dec. 20, P.L. 414, No. 51, § 5, imd. effective. (n)   To notify local human relations commissions of complaints received by the Pennsylvania Human Relations Commission involving persons within a commission’s jurisdiction. The Pennsylvania Human Relations Commission may enter into work-sharing agreements with those local commissions having comparable jurisdiction and enforcement authority. (o)   To prepare and publish all findings of fact, conclusions of the law, final decisions and orders made after a public hearing by the hearing examiners, Commission panel or full Commission. (p)   To give public access to the commission’s compliance manual. (q)   To preserve opinions rendered by the Commission for five years from the date of publication. § 8.  Educational Program The Commission, in cooperation with the Department of Education, is authorized to recommend a multicultural educational program, designed for the students of the schools in this Commonwealth and for all other residents thereof, with emphasis on foreign cultural and language studies, as well as on the basic shared precepts and principles of United States culture, in order to promote cultural understanding and appreciation and to further good will among all persons, without regard to race, color, familial status, religious creed, ancestry, age, sex, national origin, handicap or disability. § 8.1.  Investigatory hearings relating to racial problems Whenever any problem of racial discrimination or racial tension arises, the Commission may immediately hold an investigatory hearing. The place of any such hearing shall be in the county where the problem exists. The hearing may be public or private and the Commission shall have the same powers as provided in clause (g) for hearings on complaint filed. The purpose of the hearing shall be to resolve the problem promptly by the gathering of all the facts from all the interested parties and making such recommendations as may be necessary. The Commission shall not be bound by the strict rules of evidence prevailing in courts of law or equity. The testimony taken at the hearing shall be under oath and be transcribed. Should the recommendations of the Commission not be accepted within a reasonable time the Commission may, with the consent of eight members, on its own behalf initiate a complaint and the hearing findings and Commission order shall proceed the same as where a complaint has been filed.

712

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12/22/21 10:45 AM

GOVERNMENT REGULATION

Ch. 47

Part IV Ch. 36–40 Insurance Part V Ch. 41–48A Zoning, etc. Part VI Ch. 49–56 Taxation Part VII Ch. 57–63 Litigation Part VIII Ch. 64–67 L/T Part IX Ch. 68–72 Condos, etc. Index

gtb-parealestate22-all.indb 713

Part III Ch. 23–35 Mortgages

713

Part II Ch. 15–22 Deeds

3. 24 P.S. § 1-101 et seq. 4. 53 P.S. § 13201 et seq.

Part I Ch. 1–14 Brokers

§ 8.2.  Restriction on Commission authority over pupil school assignment (a)   It is the finding of the General Assembly that the neighborhood school is the cornerstone of Pennsylvania’s education policy on the assignment of pupils to public schools and that the assignment of pupils to public schools is a matter that falls within the special competence and expertise of education authorities, and it is the policy of the General Assembly that this act shall not interfere with the neighborhood school system or with the authority of education officials to provide for the assignment of pupils to public schools unless such assignment is necessary to remedy a violation of the Equal Protection Clause of the 14th Amendment to the Constitution of the United States. (b)  Neither the Pennsylvania Human Relations Commission nor any local human relations commission nor any court, as part of its review of any commission or local commission action or any complaint filed pursuant to this act, shall impose upon the Commonwealth, any school district or other school entity, or any governing body, officer or employe of any of the foregoing, any requirement that pupils be assigned to attend any public school other than the school of appropriate grade level that the pupil qualifies to attend closest to the student’s home and shall not impose any other obligation or responsibility with respect to pupil school assignment or pupil transportation related to pupil assignment unless: (1)   imposing that requirement, obligation or responsibility upon such party is necessary to remedy a specific violation by such party that would also constitute a violation of the Equal Protection Clause of the 14th Amendment to the Constitution of the United States; and (2)  a court would be permitted under decisional law to impose that requirement, obligation or responsibility upon such party to remedy the specific violation of the Equal Protection Clause of the 14th Amendment to the Constitution of the United States. (c)   Nothing in this section shall prohibit a school district from voluntarily continuing or commencing a school integration plan within its territorial jurisdiction or from assigning pupils for any appropriate reason within the scope of its authority under the act of March 10, 1949 (P.L. 30, No. 14),3 known as the “Public School Code of 1949,” or the act of August 9, 1963 (P.L. 643, No. 341),4 known as the “First Class City Public Education Home Rule Act,” including, but not limited to, the assignment of pupils who request English as a second language to a school other than the school closest to the pupil’s home, if such instruction is unavailable at the closest school. § 9.  Procedure (a)   Any person claiming to be aggrieved by an alleged unlawful discriminatory practice may make, sign and file with the Commission a verified complaint, in writing, which shall state the name and address of the person, employer, labor organization or employment agency alleged to have committed the unlawful discriminatory practice complained of, and which shall set forth the particulars thereof and contain such other information as may be required by the Commission. Commission representatives shall not modify the substance of the complaint. Whenever a person invokes the procedures set forth in this act, the Commission shall refuse to accept for filing a complaint it determines to be untimely with no grounds for equitable tolling, outside its jurisdiction or frivolous on its face. The Commission upon its own initiative or the Attorney General may, in like manner, make, sign and file such complaint. Any employer whose employes, or

Table of Contents

PART V

12/22/21 10:45 AM

§ 9

HUMAN RELATIONS ACT

some of them, hinder or threaten to hinder compliance with the provisions of this act may file with the Commission a verified complaint, asking for assistance by conciliation or other remedial action and, during such period of conciliation or other remedial action, no hearings, orders or other actions shall be taken by the Commission against such employer. (b)(1)   After the filing of any complaint, or whenever there is reason to believe that an unlawful discriminatory practice has been committed, the Commission shall make a prompt investigation in connection therewith. (2)  The Commission shall send a copy of the complaint to the named respondent within thirty days from the date of docketing the complaint, unless otherwise required by the Fair Housing Act. (3)   A respondent shall file a written, verified answer to the complaint within thirty days of service of the complaint, unless otherwise required by the Fair Housing Act. The Commission, upon request of the respondent, may grant an extension of not more than thirty additional days, unless otherwise required by the Fair Housing Act. (4)   After service of the complaint, the Commission shall encourage voluntary and informed predetermination settlements between parties. (c)   If it shall be determined after such investigation that no probable cause exists for crediting the allegations of the complaint, the Commission shall, within ten days from such determination, cause to be issued and served upon the complainant written notice of such determination, and the said complainant or his attorney may, within ten days after such service, file with the Commission a written request for a preliminary hearing before the Commission to determine probable cause for crediting the allegations of the complaint. If it shall be determined after such investigation that probable cause exists for crediting the allegations of the complaint, the Commission shall immediately endeavor to eliminate the unlawful discriminatory practice complained of by conference, conciliation and persuasion. The members of the Commission and its staff shall not disclose what has transpired in the course of such endeavors: Provided, That the Commission may publish the facts in the case of any complaint which has been dismissed, and the terms of conciliation when the complaint has been adjusted, without disclosing, except as required by the Fair Housing Act, the identity of the parties involved. (c.1)  The Commission shall dismiss a case with prejudice, before or after a finding of probable cause, where, in its opinion, appropriate remedy has been offered by the respondent and refused by the complainant. (d)  In case of failure so to eliminate such practice or in advance thereof, if in the judgment of the Commission circumstances so warrant, the Commission shall cause to be issued and served a written notice, together with a copy of such complaint as the same may have been amended, requiring the person, employer, labor organization or employment agency named in such complaint, hereinafter referred to as respondent, to answer the charges of such complaint at a hearing before the Commission at a time and place to be specified in such notice. The place of any such hearing shall be in the county in which the alleged offense was committed. (d.1)  When notice of hearing is given as set forth in subsection (d) and an election procedure is required by the Fair Housing Act, either party may elect to have the claim asserted in the complaint decided in a civil action brought under the original jurisdiction of Commonwealth Court. The written notice of the Commission shall be sent to all parties and will inform them of their right to take civil action. An election must be made within twenty days after receipt of the notice of hearing. A party making this election shall notify the Commission and all other parties. If an election for civil action is made by either party, the Commission shall, within thirty days from the date of election, commence

714

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12/22/21 10:45 AM

GOVERNMENT REGULATION

Ch. 47

Part III Ch. 23–35 Mortgages Part IV Ch. 36–40 Insurance Part V Ch. 41–48A Zoning, etc. Part VI Ch. 49–56 Taxation Part VII Ch. 57–63 Litigation Part VIII Ch. 64–67 L/T Part IX Ch. 68–72 Condos, etc. Index

gtb-parealestate22-all.indb 715

Part II Ch. 15–22 Deeds

715

Part I Ch. 1–14 Brokers

and maintain a civil action on behalf of the complainant provided, however, that, whenever the Attorney General signs and files the complaint pursuant to subsection (a), the Attorney General shall, within thirty days from the date of election, commence and maintain a civil action on behalf of the complainant. In those cases commenced by the Attorney General, the Commission shall have the right to intervene. In any action brought under this subsection: (1)   All filing fees shall be waived for the Commission and all parties, including the action brought under Commonwealth Court’s original jurisdiction and any appeal arising out of such action. (2)  If, after a trial, Commonwealth Court finds that a respondent engaged in or is engaging in any unlawful discriminatory practice as defined in this act, the court may award attorney fees and costs to the complainant on whose behalf the action was commenced. (3)  If, after a trial, Commonwealth Court finds that a respondent has not engaged in or is not engaging in any unlawful discriminatory practice as defined in this act, the court may award attorney fees and costs to the prevailing respondent if the respondent proves that the complaint upon which the civil action was based was brought in bad faith. (4)  If, after a trial, the Commonwealth Court finds that a respondent has not engaged in any unlawful discriminatory practice as defined in this act, the court may award attorney fees and costs to the prevailing respondent if the court determines that the complaint is frivolous and that the Commission dealt with the party complained against in a wilful, wanton and oppressive manner, in which case the Commission shall be ordered to pay such costs and attorney fees. (e)   The case in support of the complaint shall be presented before the Commission or before a permanent hearing examiner designated by the Commission for the purpose of hearing said complaint by one of its attorneys or agents, by the complainant’s attorney or by a designated agent of the complainant. The respondent may appear at such hearing in person or otherwise, with or without counsel, and submit testimony. The complainant may likewise appear at such hearing in person or otherwise, with or without counsel, and submit testimony. The Commission or the complainant shall have the power reasonably and fairly to amend any complaint, and the respondent shall have like power to amend his answer. The Commission shall not be bound by the strict rules of evidence prevailing in courts of law or equity. The testimony taken at the hearing shall be under oath and be transcribed. (f)(1)  If, upon all the evidence at the hearing, the Commission shall find that a respondent has engaged in or is engaging in any unlawful discriminatory practice as defined in this act, the Commission shall state its findings of fact, and shall issue and cause to be served on such respondent an order requiring such respondent to cease and desist from such unlawful discriminatory practice and to take such affirmative action, including, but not limited to, reimbursement of certifiable travel expenses in matters involving the complaint, compensation for loss of work in matters involving the complaint, hiring, reinstatement or upgrading of employes, with or without back pay, admission or restoration to ­membership in any respondent labor organization, the making of reasonable accommodations, or selling or leasing specified housing accommodations or commercial property upon such equal terms and conditions and with such equal facilities, services and privileges or lending money, whether or not secured by mortgage or otherwise for the acquisition, construction, rehabilitation, repair or maintenance of housing accommodations or commercial property, upon such equal terms and conditions to any person discriminated against or all persons, and any other verifiable, reasonable out-of-pocket expenses caused by such unlawful discriminatory practice, provided that, in those cases alleging a violation

Table of Contents

PART V

12/22/21 10:45 AM

§ 9

HUMAN RELATIONS ACT

of section 5(d), (e) or (h)5 or 5.36 where the underlying complaint is a violation of section 5(h) or 5.3, the Commission may award actual damages, including damages caused by humiliation and embarrassment, as, in the judgment of the Commission, will effectuate the purposes of this act, and including a requirement for report of the manner of compliance. (2)   Such order may also assess a civil penalty against the respondent in a complaint of discrimination filed under sections 5(h) or 5.3 of this act: (i)   in an amount not exceeding ten thousand dollars ($10,000) if the respondent has not been adjudged to have committed any prior discriminatory practice; (ii)   in an amount not exceeding twenty-five thousand dollars ($25,000) if the respondent has been adjudged to have committed one other discriminatory practice during the five-year period ending on the date of this order; or (iii)  in an amount not exceeding fifty thousand dollars ($50,000) if the respondent has been adjudged to have committed more than one other discriminatory practice during the seven-year period ending on the date of this order. If, however, the acts constituting the discriminatory practice that is the object of the charge are committed by the same natural person who has been previously adjudged to have committed acts constituting a discriminatory practice, then the civil penalties set forth in subparagraphs (ii) and (iii) may be imposed without regard to the period of time within which any subsequent discriminatory practice occurred. (3)   When the respondent is a licensee of the Commonwealth, the Commission shall inform the appropriate State licensing authority of the order with the request that the licensing authority take such action as it deems appropriate against such licensee. An appeal from the Commission’s order shall act as a supersedeas and stay such action by the State licensing authority until a final decision on said appeal. (4)   If, upon all the evidence, the Commission shall find that a respondent has not engaged in any such unlawful discriminatory practice, the Commission shall state its findings of fact, and shall issue and cause to be served on the complainant an order dismissing the said complaint as to such respondent. (f.1)   If, upon all the evidence at the hearing, in those cases alleging a violation of section 5(d), (e), (h) or 5.3 where the underlying complaint is a violation of section 5(h) or 5.3, the Commission finds that a respondent has engaged in or is engaging in any unlawful discriminatory practice as defined in this act, the Commission may award attorney fees and costs to prevailing complainants. (f.2)   If, upon all the evidence at the hearing, in those cases alleging a violation of section 5(d), (e), (h) or 5.3 where the underlying complaint is a violation of section 5(h) or 5.3, the Commission finds that a respondent has not engaged in or is not engaging in any unlawful discriminatory practice as defined in this act, the Commission may award attorney fees and costs to a prevailing respondent if the respondent proves that the complaint was brought in bad faith. (g)   The Commission shall establish rules of practice to govern, expedite and effectuate the foregoing procedure and its own actions thereunder. Three or more members of the Commission or a permanent hearing examiner designated by the Commission shall constitute the Commission for any hearing required to be held by the Commission under this act. The recommended findings, conclusions and

5. 43 P.S. § 955(d), (e) or (h). 6. 43 P.S. § 955.3.

716

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GOVERNMENT REGULATION

Ch. 47

Part IV Ch. 36–40 Insurance Part V Ch. 41–48A Zoning, etc. Part VI Ch. 49–56 Taxation Part VII Ch. 57–63 Litigation Part VIII Ch. 64–67 L/T Part IX Ch. 68–72 Condos, etc. Index

gtb-parealestate22-all.indb 717

Part III Ch. 23–35 Mortgages

717

Part II Ch. 15–22 Deeds

7. 43 P.S. § 959(f)(2) and (f.1). 8. 45 P.S. § 1205. 9. 71 P.S. §§ 732-204(b) and 732-301(10). 10. 71 P.S. § 745.1 et seq.

Part I Ch. 1–14 Brokers

order made by said members or permanent hearing examiner shall be reviewed and approved or reversed by the Commission before such order may be served upon the parties to the complaint. The recommended findings, conclusions and order made by said members or permanent hearing examiner shall become a part of the permanent record of the proceeding and shall accompany any order served upon the parties to the complaint. (h)   Any complaint filed pursuant to this section must be so filed within one hundred eighty days after the alleged act of discrimination, unless otherwise required by the Fair Housing Act. (i)  Any complaint may be withdrawn at any time by the party filing the complaint. (j)   At any time after the filing of a complaint, the Commission shall dismiss with prejudice a complaint which, in its opinion, is untimely with no grounds for equitable tolling, outside its jurisdiction or frivolous on its face. § 9.1.  Procedure regarding housing advertisements (a)   Where the alleged violation of this act complained of involves an advertisement, the following procedure specified in this section shall apply. (b)   The Commission shall compile, publish and update as required a list of words, phrases, symbols and the like which are impermissible under this act when used in housing advertisements and shall publish in the Pennsylvania Bulletin both this list and specific examples of housing advertisements which are impermissible under this act. This list shall be published within sixty days of the effective date of this section and shall serve thereafter as proposed rulemaking in full force and effect until such time as the final-form regulations are adopted. (c)   An advertiser who knowingly and wilfully violates this act may be penalized under section 9(f)(2) and (f.1).7 It shall be an affirmative defense precluding a finding that an advertiser has knowingly and wilfully violated this act if an advertiser has either: (1)   attempted in good faith to comply with the list and specific examples of impermissible housing advertisements described in subsection (b); or (2)  complied with an interpretation of the Commission or its personnel concerning what constitutes appropriate housing advertisements. It shall also be an affirmative defense precluding a finding that an advertiser has knowingly and wilfully violated this act if an advertiser has made reasonable efforts in good faith to comply with this act. Guidelines as to the type of conduct which constitutes such reasonable efforts to comply shall be developed and published by the Commission in the Pennsylvania Bulletin along, with the list and specific examples of impermissible advertising described in subsection (b). (d)(1)  In order to facilitate the speedy implementation of this program, the Commission shall have the power and authority to promulgate, adopt and use guidelines which shall be published in the Pennsylvania Bulletin. The guidelines shall not be subject to review pursuant to section 205 of the act of July 31, 1968 (P.L. 769, No. 240),8 referred to as the Commonwealth Documents Law, sections 204(b) and 301(10) of the act of October 15, 1980 (P.L. 950, No. 164),9 known as the “Commonwealth Attorneys Act,” or the act of June 25, 1982 (P.L. 633, No. 181),10 known as the “Regulatory Review Act,” and shall be effective for a period not to exceed two (2) years from the effective date of this section.

Table of Contents

PART V

12/22/21 10:45 AM

§ 9.2

HUMAN RELATIONS ACT

(2)   After the expiration of the two (2) year period, all guidelines shall expire and shall be replaced by regulations which shall have been promulgated, adopted and published as provided by law within two (2) years from the effective date of this section. § 9.2.  Injunctions If the Commission concludes, at any time following the filing of a complaint under this act, that prompt judicial action is necessary to prevent immediate and irreparable harm, the Commission may commence an action in Commonwealth Court or the appropriate court of common pleas, and that court may grant an appropriate preliminary or special injunction pending final disposition of the complaint. Any such order or relief shall be granted in accordance with Rule 1531 of the Pennsylvania Rules of Civil Procedure. § 9.3.  Civil penalties The Commission shall have the power to adopt a schedule of civil penalties for violation of section 5(h)(5)11 by the advertiser and the publisher in instances where the complainant does not take action to secure housing accommodations or financing and is not denied housing accommodations or financing based on the alleged discriminatory language in the advertisement. The schedule of penalties, guidelines for their imposition and procedures for appeal shall be published in the Pennsylvania Bulletin, provided that the Commission shall, within two (2) years of such publication, promulgate a regulation setting forth the schedule of penalties, guidelines and procedures. Any such penalty shall not exceed the sum of five hundred dollars ($500.00). Duly authorized agents of the Commission shall have the power and authority to issue citations and impose penalties for any such violations. Any such penalty imposed may be appealed to the Commission pursuant to regulations promulgated under this act. All proceedings shall be conducted in accordance with the provisions of 2 Pa.C.S. (relating to administrative law and procedure). § 10.  Enforcement and judicial review The complainant, the Attorney General or the Commission may secure enforcement of the order of the Commission or other appropriate relief. When the Commission has heard and decided any complaint brought before it, enforcement of its order shall be initiated by the filing of a petition in court, together with a transcript of the record of the hearing before the Commission, and issuance and service of a copy of said petition as in proceedings in equity. The Commission’s copy of the testimony shall be available at all reasonable times to all parties for examination without cost, and for the purpose of enforcement or judicial review of the order. § 11.  Penalties Any person who shall wilfully resist, prevent, impede or interfere with the Commission, its members, agents or agencies in the performance of duties pursuant to this act, or shall wilfully violate an order of the Commission, shall be guilty of a misdemeanor and, upon conviction thereof, shall be sentenced to pay a fine of not less than one hundred dollars ($100.00) nor more than five hundred dollars ($500.00), or to undergo imprisonment not exceeding thirty (30) days, or both, in the discretion of the court, but procedure for the review of an order shall not be deemed to be such wilful conduct. § 12.  Construction and exclusiveness of remedy (a)   The provisions of this act shall be construed liberally for the accomplishment of the purposes thereof, and any law inconsistent with any provisions hereof shall not apply. 11. 43 P.S. § 955(h)(5).

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Ch. 47

Index

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Part IX Ch. 68–72 Condos, etc.

719

Part VIII Ch. 64–67 L/T

(c.3)   If, after a trial held pursuant to subsection (c), the court of common pleas finds that a defendant has not engaged in or is not engaging in any unlawful discriminatory practice as defined in this act, the court may award attorney fees and costs to the prevailing defendant if the defendant proves that the complaint was brought in bad faith.

Part VII Ch. 57–63 Litigation

(c.2)   If, after a trial held pursuant to subsection (c), the court of common pleas finds that a defendant engaged in or is engaging in any unlawful discriminatory practice as defined in this act, the court may award attorney fees and costs to the prevailing plaintiff.

Part VI Ch. 49–56 Taxation

(c.1)  Notwithstanding subsections (a) and (c) or any other provision of this act, nothing in this act shall be deemed to authorize imposition by the Commission of remedial quota relief in cases involving hiring or promoting of employes of the Commonwealth, its agencies or instrumentalities or employes of local governments and school districts in this Commonwealth. This subsection shall not, however, prohibit the voluntary adoption of an affirmative action plan designed to assure that all persons are accorded equality of opportunity in employment.

Part V Ch. 41–48A Zoning, etc.

(4)  The court shall serve upon the Commission any final order issued in any action brought under this subsection.

Part IV Ch. 36–40 Insurance

(3)  If the court finds that the respondent has engaged in or is engaging in an unlawful discriminatory practice charged in the complaint, the court shall enjoin the respondent from engaging in such unlawful discriminatory practice and order affirmative action which may include, but is not limited to, reinstatement or hiring of employes, granting of back pay, or any other legal or equitable relief as the court deems appropriate. Back pay liability shall not accrue from a date more than three years prior to the filing of a complaint charging violations of this act.

Part III Ch. 23–35 Mortgages

(2)  An action under this subsection shall be filed within two years after the date of notice from the Commission closing the complaint. Any complaint so filed shall be served on the Commission at the time the complaint is filed in court. The Commission shall notify the complainant of this requirement.

Part II Ch. 15–22 Deeds

(c)(1)   In cases involving a claim of discrimination, if a complainant invokes the procedures set forth in this act, that individual’s right of action in the courts of the Commonwealth shall not be foreclosed. If within one (1) year after the filing of a complaint with the Commission, the Commission dismisses the complaint or has not entered into a conciliation agreement to which the complainant is a party, the Commission must so notify the complainant. On receipt of such a notice the complainant shall be able to bring an action in the courts of common pleas of the Commonwealth based on the right to freedom from discrimination granted by this act.

Part I Ch. 1–14 Brokers

(b)   Except as provided in subsection (c), nothing contained in this act shall be deemed to repeal or supersede any of the provisions of any existing or hereafter adopted municipal ordinance, municipal charter or of any law of this Commonwealth relating to discrimination because of race, color, familial status, religious creed, ancestry, age, sex, national origin or handicap or disability, but as to acts declared unlawful by section five of this act the procedure herein provided shall, when invoked, be exclusive and the final determination therein shall exclude any other action, civil or criminal, based on the same grievance of the complainant concerned. If the complainant institutes any action based on such grievance without resorting to the procedure provided in this act, such complainant may not subsequently resort to the procedure herein. In the event of a conflict between the interpretation of a provision of this act and the interpretation of a similar provision contained in any municipal ordinance, the interpretation of the provision in this act shall apply to such municipal ordinance.

Table of Contents

PART V

12/22/21 10:45 AM

§ 12.1

HUMAN RELATIONS ACT

(d)   Nothing in this act shall be construed to require any employer to hire any person with a job-related handicap or disability. (e)  The time limits for filing under any complaint or other pleading under this act shall be subject to waiver, estoppel and equitable tolling. (f)   Nothing in this act shall be constructed as superseding any provision of the act of October 15, 1980 (P.L. 950, No. 164), known as the “Commonwealth Attorneys Act.”12 All court actions commenced by or against the Commission shall be subject to the provisions of that act. § 12.1.  Local human relations commissions (a)   The legislative body of a political subdivision may, by ordinance or resolution, authorize the establishment of membership in and support of a Local Human Relations Commission. The number and qualifications of the members of any local commission and their terms and method of appointment or removal shall be such as may be determined and agreed upon by the legislative body, except that no such member shall hold office in any political party. Members of a local commission shall serve without salary but may be paid expenses incurred in the performance of their duties. (b)   The legislative body of any political subdivision shall have the authority to appropriate funds, in such amounts as may be deemed necessary, for the purpose of contributing to the operation of a local commission including the payment of its share of the salary of an investigator or staff member acting jointly for it and one or more other local commissions. (c)   The local commission shall have the power to appoint such employes and staff, as it may deem necessary, to fulfill its purpose including the power to appoint an investigator or staff member to act jointly for it and one or more other local commissions. (d)   The legislative bodies of political subdivisions shall have the authority to grant to local commissions powers and duties similar to those now exercised by the Pennsylvania Human Relations Commission under the provisions of this act. (e)   The local human relations commission shall notify the Pennsylvania Human Relations Commission of complaints received involving discriminatory acts within that commission’s jurisdiction. § 12.2.  Cooperation of state agencies The Bureau of Blindness and Visual Services, the Office of Vocational Rehabilitation, the Office for the Deaf and Hearing Impaired, and any other State agency which seeks to aid persons with handicaps or disability shall assist employers, the Commission and the courts of this Commonwealth in the implementation and enforcement of this act by providing expertise in the area of handicaps and disabilities. § 13.  Separability (a)   If any clause, sentence, paragraph or part of this act, or the application thereof, to any person or circumstance, shall, for any reason, be adjudged by a court of competent jurisdiction to be invalid, such judgment shall not affect, impair or invalidate the remainder of this act nor the application of such clause, sentence, paragraph or part to other persons or circumstances, but shall be confined in its operation to the clause, sentence, paragraph or part thereof and to the persons or circumstances directly involved in the controversy in which such judgment shall have been rendered. It is hereby declared to be the legislative intent that this act would have been adopted had such provisions not been included or such persons or circumstances been expressly excluded from their coverage.

12. 71 P.S. § 732-101 et seq.

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GOVERNMENT REGULATION

Ch. 47

Part I Ch. 1–14 Brokers Part II Ch. 15–22 Deeds

(b)   Notwithstanding the provisions of subsection (a), if any clause, sentence, paragraph or part of this act, or the application thereof to any person or circumstance, shall be adjudged by a court of competent jurisdiction or finally determined by the Department of Housing and Urban Development not to be in substantial equivalence with the Fair Housing Act and if such judgment or final determination threatens the loss or reduction of Federal funds to the Commission, all provisions of this amendatory act except the provisions adding subsections (c.1) and (j) to section 9 shall be null and void. The Commission shall, in such event, apply the provisions of 16 Pa. Code §§ 45.8(a) (relating to advertisements) and 45.13(f) (relating to exemptions) which were in effect on March 1, 1997, such provisions having been revived by operation of law.

Table of Contents

PART V

Part III Ch. 23–35 Mortgages Part IV Ch. 36–40 Insurance Part V Ch. 41–48A Zoning, etc. Part VI Ch. 49–56 Taxation Part VII Ch. 57–63 Litigation Part VIII Ch. 64–67 L/T Part IX Ch. 68–72 Condos, etc.

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Index

721

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CHAPTER 48 BLIGHT Chapter

48.1   Abandoned and Blighted Property Conservatorship Act    68 P.S. §§ 1101-1111 48.2   Neighborhood Blight Reclamation and Revitalization Act    53 Pa.C.S. § 6101–6145 48.3   Municipality Condemnation Order Act    53 P.S. §§ 4271–4277 48.4  Blighted Property—Definition    1 Pa.C.S. § 1991

CHAPTER 48.1 ABANDONED AND BLIGHTED PROPERTY CONSERVATORSHIP ACT 68 P.S. §§ 1101–1111

Sec. § § § § § § § § § § §

1101. 1102. 1103. 1104. 1105. 1106. 1107. 1108. 1109. 1110. 1111.

Short title Legislative findings and purpose Definitions Initiation of action Appointment of conservator Powers and duties of conservator Ownership of property Incurring indebtedness Sale of property Termination of conservatorship Applicability

§ 1101.   Short title This act shall be known and may be cited as the Abandoned and Blighted Property Conservatorship Act. § 1102.   Legislative findings and purpose The General Assembly finds and declares that: (1)   Pennsylvania’s older communities are important to the Commonwealth’s economic health by providing a focal point for businesses and services and to this Commonwealth’s quality of life with its rich history and diverse communities. However, many older communities suffer from blighted properties that have been abandoned by their owners. (2)  Many citizens of this Commonwealth are adversely affected by abandoned and blighted residential, commercial and industrial properties, including those citizens who live in proximity to such substandard buildings, as well as those who own property in the vicinity of such buildings. (3)   Substandard, deteriorating and abandoned residential, commercial and industrial structures are a public safety threat and nuisance and their blighting effect diminishes property values in the communities in which these properties are located. (4)   If these buildings are not rehabilitated, they are likely to remain abandoned and further deteriorate, resulting in increased costs to the Commonwealth, municipality and taxpayers to secure and ultimately demolish them. (5)   Providing a mechanism to transform abandoned and blighted buildings into productive reuse is an opportunity for communities to modernize, revitalize grow, and to improve the quality of life for neighbors who are already there.

722

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GOVERNMENT REGULATION

Ch. 48.1

Part IV Ch. 36–40 Insurance Part V Ch. 41–48A Zoning, etc. Part VI Ch. 49–56 Taxation Part VII Ch. 57–63 Litigation Part VIII Ch. 64–67 L/T Part IX Ch. 68–72 Condos, etc. Index

gtb-parealestate22-all.indb 723

Part III Ch. 23–35 Mortgages

723

Part II Ch. 15–22 Deeds

1. 68 P.S. § 1105(d). 2. 63 P.S. § 455.101 et seq.

Part I Ch. 1–14 Brokers

(6)   If the owner of a residential, commercial or industrial building fails to maintain the property in accordance with applicable municipal codes or standards of public welfare or safety, it is in the best interest of the Commonwealth, the municipality and the community for the court, pursuant to the provisions of this act, to appoint a conservator to make the necessary improvements before the building deteriorates further and necessitates demolition, resulting in the removal of the building from the housing supply or prohibiting future productive economic use. § 1103.  Definitions The following words and phrases when used in this act shall have the meanings given to them in this section unless the context clearly indicates otherwise: “Abandoned property.” Any property that meets the requirements of conditions for conservatorship as provided in section 5(d).1 “Actively marketed.” A “for sale” sign has been placed on the property with accurate contact information and the owner has done at least one of the following: (1)   engaged the services of a licensee under the act of February 19, 1980 (P.L. 15, No. 9),2 known as the Real Estate Licensing and Registration Act, to place the property in a Multiple Listing Service or otherwise market the property; (2)  placed weekly or more frequent advertisements in print or electronic media; or (3)   distributed printed advertisements. “Building.” A residential, commercial or industrial building or structure and the land appurtenant thereto, including a vacant lot on which a building has been demolished. “Code.” A building, housing, property maintenance, fire, health or other public safety ordinance enacted by a municipality. “Competent entity.” A person or entity, including a governmental unit with experience in the rehabilitation of residential, commercial or industrial buildings and the ability to provide or obtain the necessary financing for such rehabilitation. “Conservator’s or developer’s fee.” A fee equal to the greatest of the following: (1)   an amount equal to $2,500, adjusted upward by 2% each year; (2)   a 20% markup of the costs and expenses for construction, stabilization, rehabilitation, maintenance and operation or demolition as described in the proposed conservator’s plan and any subsequent plan approved by the court; or (3)   twenty percent of the sale price of the property. “Costs of rehabilitation.” Costs and expenses for construction, stabilization, rehabilitation, maintenance and operation or demolition, including reasonable nonconstruction costs associated with the project, including, but not limited to, environmental remediation, architectural, engineering and legal fees and costs, permits, financing fees and a conservator’s or developer’s fee. “Court.” The appropriate court of common pleas. “Historic property.” A property which is listed on the National Register of Historic Places or is a contributing property in a national register historic district or is located in a local government ordinance historic district. “Immediate family.” A parent, spouse, child, brother or sister. “Nonprofit corporation.” A nonprofit corporation that has, as one of its purposes, remediation of blight, community development activities, including

Table of Contents

PART V

12/22/21 10:45 AM

§ 1104 BLIGHT economic development, historic preservation or the promotion or enhancement of affordable housing opportunities. “Owner.” The holder or holders of title to, or of a legal or equitable interest in, a residential, commercial or industrial building. The term shall include an heir, assignee, trustee, beneficiary and lessee provided the ownership interest is a matter of public record. “Party in interest.” A person or entity who has a direct and immediate interest in a residential, commercial or industrial building, including: (1)  The owner. (2)   A lienholder and other secured creditor of the owner. (3)   A resident or business owner within 2,000 feet of the building. (4)   A nonprofit corporation, including a redevelopment authority, which: (i)   except as set forth in subparagraph (ii), is located in the municipality where the building is located; and (ii)   for a building located in a city of the first class, is located in the city and has participated in a project within a five-mile radius of the location of the building. (5)   A municipality or school district in which the building is located. “Public nuisance.” A property that, because of physical condition or use, has been declared by the appropriate official a public nuisance in accordance with the local housing, building, health, fire or related code or is determined to be a public nuisance by the court. “Substantial rehabilitation.” Repairs to the building where: (1)   the cost of repairs, replacements and improvements exceeds 15% of the property’s value after completion of all repairs, replacements and improvements; or (2)   more than one major building component is being replaced. Major building components include: (i)  roof structures; (ii)  ceilings; (iii)   wall or floor structures; (iv)  foundations; (v)  plumbing systems; (vi)   heating and air conditioning systems; and (vii)  electrical systems. § 1104.   Initiation of action (a)   Filing of petition.—A petition for the appointment of a conservator to take possession and to undertake the rehabilitation of a building may be filed by a party in interest in a court in the county in which the building is located. The proceeding on the petition shall constitute an action in rem. (b)  Contents.—The petition submitted to the court shall include a sworn statement that, to the best of the petitioner’s knowledge, the property meets the conditions for conservatorship set forth in section 5(d)3 and to the extent available to the petitioner after reasonable efforts to obtain such information: (1)  A copy of any citation charging the owner with being in violation of municipal code requirements or declaring the building to be a public nuisance.

3. 68 P.S. § 1105.

724

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GOVERNMENT REGULATION

Ch. 48.1

Part I Ch. 1–14 Brokers Part II Ch. 15–22 Deeds Part III Ch. 23–35 Mortgages Part IV Ch. 36–40 Insurance Part V Ch. 41–48A Zoning, etc. Part VI Ch. 49–56 Taxation Part VII Ch. 57–63 Litigation Part VIII Ch. 64–67 L/T Part IX Ch. 68–72 Condos, etc.

(2)  A recommendation as to which person or entity should be appointed conservator. (3)   A preliminary plan with initial cost estimates for rehabilitation of the building to bring it into compliance with all municipal codes and duly adopted plans for the area in which the building is located and anticipated funding sources. (4)   A schedule of mortgages, liens and other encumbrances on the property. (c)   Notice of lis pendens.—The petitioner shall file a notice of lis pendens in the office of the recorder of deeds for the county in which the property is located. (d)   Notification of owner, political subdivisions and lienholders.— (1)   Upon filing the petition with the court, the petitioner shall notify the current owner of the property, all political subdivisions in which the property is located, all municipal authorities known to have provided service to the property and all lienholders of the filing by registered or certified mail to the last known address of each and by posting a copy of the notice on the building. (2)   In the event the registered or certified mail is returned with notation by the postal authorities that the recipient refused to accept the mail, the petitioner may mail a copy to the recipient at the same address by ordinary mail with the return address of the petitioner appearing thereon. (3)   Service by ordinary mail shall be presumed complete if the mail is not returned to the petitioner within 30 days after mailing. (4)   In the event that the registered or certified mail is returned with the notation by the postal authorities that it was unclaimed, the notice shall be personally served. (5)   In the event that the personal service is not able to be made after two such attempts, then the petitioner shall mail the petition to the recipient at the same address by ordinary mail with the return address of the petitioner appearing thereon with service by ordinary mail deemed complete if the mail is not returned to the petitioner within 15 days after the mailing. (6)  The petitioner shall also notify the owner and each lienholder of the hearing date and provide notice that the owner and lienholders may petition to intervene in the action. (e)  Adjacent properties.—The petition may include one or more adjacent properties in a single action if: (1)   the property that is the primary subject of the action is owned by the same owner as the adjacent property; and (2)   the properties are or were used for a single or interrelated function. § 1105.   Appointment of conservator (a)  General rule.—The court shall act upon a petition submitted by holding a hearing within 60 days of receipt of the petition and by rendering a decision no later than 30 days after completion of the hearing. (b)  Intervention.—A party in interest may intervene in the proceeding and be heard with respect to the petition, the requested relief or any other matter which may come before the court in connection with the proceeding. (c)  Hearing.—At the hearing, any party in interest shall be permitted to present evidence to support or contest the petition, including, but not limited to, the schedule of encumbrances. (d)  Conditions for conservatorship.—If a petition is filed under section 4,4 the court may appoint a conservator if all of the following apply as of the date of filing: (1)   The building has not been legally occupied for at least the previous 12

Table of Contents

PART V

4. 68 P.S. § 1104.

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Index

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§ 1105 BLIGHT months. (2)  The owner fails to present compelling evidence that he has actively marketed the property during the preceding 60-day period and made a good faith effort to sell the property at a price which reflects the circumstances and market conditions. (3)   The property is not subject to a pending foreclosure action by an individual or nongovernmental entity. (4)   The current owner fails to present sufficient evidence that he has acquired the property within the preceding six months. The evidence shall not include instances where the prior owner is a member of the immediate family of the current owner, unless the transfer of title results from the death of the prior owner, or where the current or prior owner is a corporation, partnership or other entity in which either owner or the immediate family of either owner has an interest in excess of 5%. (5)   The court finds at least three of the following: (i)   The building or physical structure is a public nuisance. (ii)   The building is in need of substantial rehabilitation and no rehabilitation has taken place during the previous 12 months. (iii)   The building is unfit for human habitation, occupancy or use. (iv)  The condition and vacancy of the building materially increase the risk of fire to the building and to adjacent properties. (v)  The building is subject to unauthorized entry leading to potential health and safety hazards and one of the following applies: (A)   The owner has failed to take reasonable and necessary measures to secure the building. (B)   The municipality has secured the building in order to prevent such hazards after the owner has failed to do so. (vi)   The property is an attractive nuisance to children, including, but not limited to, the presence of abandoned wells, shafts, basements, excavations and unsafe structures. (vii)   The presence of vermin or the accumulation of debris, uncut vegetation or physical deterioration of the structure or grounds has created potential health and safety hazards and the owner has failed to take reasonable and necessary measures to remove the hazards. (viii)   The dilapidated appearance or other condition of the building negatively affects the economic well-being of residents and businesses in close proximity to the building, including decreases in property value and loss of business, and the owner has failed to take reasonable and necessary measures to remedy appearance or the condition. (ix)   The property is an attractive nuisance for illicit purposes, including prostitution, drug use and vagrancy. (e)  Appointment.— (1)   If the court determines after a hearing that the property has met the conditions of subsection (d), the court may appoint a conservator, certify the schedule of encumbrances and grant such other relief as may be just and appropriate. The certification shall be binding with respect to all mortgages, liens and encumbrances, including municipal liens, arising or attaching to the property prior to the date of the petition. (2)   The court shall give first consideration for appointment as conservator to the most senior nongovernmental lienholder on the property. (3)   In the event the senior lienholder is found to be not competent or declines

726

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GOVERNMENT REGULATION

Ch. 48.1

Part III Ch. 23–35 Mortgages Part IV Ch. 36–40 Insurance Part V Ch. 41–48A Zoning, etc. Part VI Ch. 49–56 Taxation Part VII Ch. 57–63 Litigation Part VIII Ch. 64–67 L/T Part IX Ch. 68–72 Condos, etc. Index

gtb-parealestate22-all.indb 727

Part II Ch. 15–22 Deeds

727

Part I Ch. 1–14 Brokers

the appointment, the court may appoint a nonprofit corporation or other competent entity. If the property is located in a city of the first class, the nonprofit corporation or entity must be located in the city and must have participated in a project within a five-mile radius of the location of the property. In appointing a conservator, the court shall: (i)   consider any recommendations contained in the petition or otherwise presented by a party in interest; and (ii)   give preference to the appointment of a nonprofit corporation or governmental unit over an individual. (f)  Conditional relief.— (1)   If the court finds after a hearing that the conditions for conservatorship set forth in subsection (d) have been established, but the owner represents that the conditions, violations or nuisance or emergency condition will be abated in a reasonable period, the court may allow the owner to proceed to remedy the conditions. (2)   If the conditions set forth in paragraph (1) have been satisfied, the court shall enter an order providing that, in the event that the violations or nuisance or emergency conditions are not abated by the owner by a specific date or that other specified remedial activities have not occurred by a specific date or dates, an order granting the relief requested in the petition shall be entered. (3)   The court shall also require the owner to post a bond in the amount of the repair costs estimated in the petition as a condition to retaining possession of the building. (4)   Upon a finding that: (i)   the petition states conditions for conservatorship; or (ii)   the owner elects to either: (A)   remedy all violations and nuisance or emergency conditions; or (B)  sell the property subject to the conservatorship, the owner shall reimburse the petitioner for all costs incurred by the petitioner in preparing and filing the petition in accordance with the requirements of section 4 and the conservator’s or developer’s fee. (g)  Conservator’s lien.—The conservator may file a lien against the property in an amount based on the costs incurred during the conservatorship, including, but not limited to, costs of rehabilitation, attorney fees and court costs. The lien amount may be adjusted from time to time. (h)  Immediate possession.—The conservator shall promptly take possession of the building and other property subject to the conservatorship and shall immediately be authorized to exercise all powers of this act. (i)   Removal by court.—A conservator may be removed by the court at any time upon the request of the conservator or upon a showing by a party to the action that the conservator is not carrying out its responsibilities under this act. § 1106.   Powers and duties of conservator (a)  Full powers and duties.—The conservator shall have all powers and duties necessary or desirable, from time to time, for the efficient operation, management and improvement of the building in order to bring it into compliance with all municipal building and housing code requirements and to fulfill the conservator’s responsibilities under this act. Such powers and duties shall include, but not be limited to, the power to: (1)   Take possession and control of the building, appurtenant land and any personal property of the owner used with respect to the building, including any bank or operating account for the building. (2)   Collect outstanding accounts receivable.

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PART V

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§ 1106 BLIGHT (3)   Pursue all claims or causes of action of the owner with respect to the building and all other property subject to the conservator. (4)   Contract for the repair and maintenance of the building. The contracts shall be appropriately documented and included in the reports and accounting which the conservator is required to submit or file under the provisions of this act. The conservator shall make a reasonable effort to solicit three bids for contracts valued at more than $25,000, except when the contractor or developer provides or obtains financing for the conservatorship. (5)   Borrow money and incur credit in accordance with section 8.5 (6)  Contract and pay for the maintenance and restoration of utilities to the building. (7)   Purchase materials, goods and supplies to accomplish repairs and operate the building. (8)  With the court’s approval, enter into new rental contracts and leases for a period not to exceed one year. (9)   Affirm, renew or enter into contracts providing for insurance coverage on the building. (10)  Engage and pay legal, accounting, appraisal and other professionals to aid the conservator in the conduct of the conservatorship. (11)  When the building has been designated a historic property, consult with the municipality’s historical commission or board of historical and architectural review, a local historic preservation organization or, in the absence thereof, the Pennsylvania Historical and Museum Commission for recommendations on preserving the property’s historic character. (12)   Apply for and receive public grants or loans. (13)   Sell the building in accordance with section 9.6 (14)  Exercise all authority that an owner of the building would have to improve, maintain and otherwise manage the building, including the extent to which rehabilitation will satisfy the goals of the conservatorship. (b)  Affirmative duty.—While in possession of the building, the conservator shall: (1)   Maintain, safeguard and insure the building. (2)   Apply all revenue generated from the building consistent with the provisions of this act. (3)(i)  Develop a final plan for abatement of the conditions which caused the petition to be granted or, if no such feasible final plan can be developed, to develop alternatives, including the closing, sealing or demolition of all or part of the building. (ii)  When the building has been designated a historic property, rehabilitate architectural features that define the property’s historic character. (iii)  When demolition of a property in a historic district is necessary, design any replacement construction on the site to comply with applicable standards under current law. (4)  Implement the final plan referred to in paragraph (3) upon approval by the court. (5)   Submit a status report to the court and parties to the action annually or more frequently as the court may deem appropriate. The status report shall 5. 68 P.S. § 1108. 6. 68 P.S. § 1109.

728

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GOVERNMENT REGULATION

Ch. 48.1

Part IV Ch. 36–40 Insurance Part V Ch. 41–48A Zoning, etc. Part VI Ch. 49–56 Taxation Part VII Ch. 57–63 Litigation Part VIII Ch. 64–67 L/T Part IX Ch. 68–72 Condos, etc. Index

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Part III Ch. 23–35 Mortgages

729

Part II Ch. 15–22 Deeds

7. 68 P.S. § 1105.

Part I Ch. 1–14 Brokers

include: (i)   A copy of any contract entered into by the conservator regarding the improvement of the building. (ii)   An account of the disposition of all revenue generated from the building. (iii)   An account of all expenses and improvements. (iv)   The status of developing and implementing the final plan pursuant to this subsection. (v)  A description of any proposed actions to be taken in the next six months to improve the building. (c)   Hearing on conservator’s final plan for abatement.— (1)   At the time the court appoints a conservator, the conservator may present and the court may approve the final plan for abatement. If no plan is presented at that hearing, a hearing date on the conservator’s final plan for abatement shall be set within 120 days of the appointment. (2)   Thirty days prior to the date of the hearing, the conservator shall submit the plan to the court and to all parties to the action. (3)  The plan shall include a cost estimate, a financing plan and either a description of the work to be done for the rehabilitation of the building or, if rehabilitation is not feasible, a proposal for the closing, sealing or demolition of the building. (4)   The plan shall conform with all existing municipal codes, duly adopted plans for the area and historic preservation requirements. (5)   At the time of the hearing, all parties shall be allowed to comment on the plan, and the court shall take all comments into consideration when assessing the feasibility of the plan and the proposed financing. In making its assessment, the court shall give reasonable regard to the conservator’s determination of the scope and necessity of work to be done for the rehabilitation or demolition of the building in approving the final plan and in approving the costs of conservatorship and sale of the property. (6)   Within 15 days of the hearing, the court shall issue a decision approving the plan or requiring that the plan be amended. (7)   If the court decision requires that the plan be amended, a hearing date shall be set within 60 days from the date of the decision. (d)  Accounting.—Upon the implementation of the final plan approved by the court, the conservator shall file with the court a full accounting of all income and expenditures during the period of time it took to implement the final plan. § 1107.   Ownership of property (a)   Ownership interest of conservator.—A conservator appointed under section 57 shall be deemed to have an ownership interest in and legal control of the property for the purposes of filing plans with public agencies and boards, seeking and obtaining construction permits and other approvals and submitting applications for financing or other assistance to public or private entities. (b)   Liability of owner.—Notwithstanding the appointment of a conservator under section 5, nothing in this act shall be construed to relieve the owner of any civil or criminal liability or of any obligation to pay taxes, municipal liens and charges, mortgages, private liens or other fees or charges, whether incurred

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PART V

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§ 1108 BLIGHT before or after the appointment of the conservator and no such liability shall transfer to the conservator. (c)   Limitation of conservator’s environmental liability.— (1)   Notwithstanding any law to the contrary, the conservator shall not be held liable for any environmental damage to the building or the real property upon which the building is located that existed prior to the appointment by the court of the conservator. (2)   Paragraph (1) does not apply to the owner or any other person or entity regarding the building and its real property that is subject to an appointed conservator under this act. § 1108.   Incurring indebtedness (a)  Borrowing.—From time to time, a conservator may borrow money or incur indebtedness in order to cover the costs of rehabilitation or to otherwise fulfill the conservator’s obligations under this act. (b)  Liens.—In order to facilitate the borrowing of funds for the costs of rehabilitation, the court may grant priority status to a lien given to secure payment on a debt incurred for purposes authorized under this chapter, provided that: (1)   the conservator sought to obtain the necessary financing from the senior, nongovernmental lienholder, but the lienholder declined to provide financing for reasonable improvements or other costs of rehabilitation on reasonable terms; and (2)   lien priority is necessary in order to induce another lender to provide financing on reasonable terms (c)   Lien status of rehabilitation expenses.—Should the senior lienholder agree to provide financing for the costs of rehabilitation, any funds lent to cover the costs shall be deemed to be added to the senior lienholder’s preexisting first lien. (d)   Approval of financing.—The court may approve financing for the costs of rehabilitation, the terms of which may include deferred repayment and use restrictions. The terms of the financing may remain with the property after the conservatorship has ended and be assumed by any of the following: (1)   The owner, if the owner regains possession of the property under section 10(2).8 (2)   The buyer who takes title under section 9.9 § 1109.   Sale of property (a)  Sale by owner or lienholder.—If a property subject to conservatorship is sold by the owner or foreclosed upon by a lienholder or if any interest therein is transferred, such sale, foreclosure or transfer shall be subject to the ­conservatorship. (b)  Sale by conservator.—Upon application of the conservator, the court may order the sale of the property if the court finds that: (1)   Notice and an opportunity to provide comment to the court was given to each record owner of the property and each lienholder. (2)   The conservator has been in control of the building for more than three months and the owner has not successfully petitioned to terminate the conser-

8. 68 P.S. § 1110. 9. 68 P.S. § 1109.

730

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GOVERNMENT REGULATION

Ch. 48.1

Part VII Ch. 57–63 Litigation Part VIII Ch. 64–67 L/T Part IX Ch. 68–72 Condos, etc. Index

731

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Part VI Ch. 49–56 Taxation

1110. 1108. 1104. 1105. 1301.1 et seq.

Part V Ch. 41–48A Zoning, etc.

§ § § § §

Part IV Ch. 36–40 Insurance

P.S. P.S. P.S. P.S. P.S.

Part III Ch. 23–35 Mortgages

68 68 68 68 72

Part II Ch. 15–22 Deeds

10. 11. 12. 13. 14.

Part I Ch. 1–14 Brokers

vatorship under section 10.10 (3)  The terms and conditions of the sale are acceptable to the court, and the buyer has a reasonable likelihood of maintaining the property. (c)   Sale free and clear.— (1)   The court may authorize the conservator to sell the building free and clear of all liens, claims and encumbrances, provided that the proceeds of the sale are distributed pursuant to subsection (d) at settlement. (2)  In the event that the proceeds of the sale are insufficient to pay all existing liens, claims and encumbrances, the proceeds shall be distributed according to the priorities set forth in subsection (d) and all unpaid liens, claims or encumbrances which have not been assumed under section 8(d)11 shall be extinguished. (d)  Distribution.—The proceeds of the sale shall be applied in accordance with the following priorities to: (1)   All court costs. (2)   Liens of the Commonwealth, liens for unpaid property taxes and properly recorded municipal liens. (3)   Costs and expenses of sale. (4)   Principal and interest on any borrowing or incurrence of indebtedness granted priority over existing liens and security interest under section 8(b). (4.1)   Costs incurred by the petitioner in preparing and filing the petition in accordance with the requirements of section 4.12 (5)   Costs of rehabilitation and any fees and expenses incurred by the conservator in connection with the sale or the safeguarding of the property for which the lien authorized under section (5)(g)13 was filed. (6)   Valid liens and security interests in accordance with their priority. (7)   Any unpaid obligations of the conservator. (8)   Deleted by 2014, Oct. 22, P.L. 2557, No. 157, § 5, effective Dec. 22, 2014. (9)  The owner. (e)  Owner’s proceeds as unclaimed property.—In the event the owner cannot be located, any proceeds from the sale which belong to the owner shall be presumed to be abandoned and unclaimed and shall be subject to the custody and control of the Commonwealth pursuant to Article XIII.1 of the act of April 9, 1929 (P.L. 343, No. 176),14 known as The Fiscal Code. § 1110.   Termination of conservatorship Upon request of a party in interest or the conservator, the court may order the termination of the conservatorship if it determines: (1)  the conditions that were the grounds for the petition and all other code violations have been abated or corrected, the obligations, expenses and improvements of the conservatorship, including all fees and expenses of the conservator, have been fully paid or provided for and the purposes of the con-

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§ 1111 BLIGHT servatorship have been fulfilled; (2)   the owner, mortgagee or lienholder has requested the conservatorship be terminated and has provided adequate assurances to the court that the conditions that constituted grounds for the petition will be promptly abated, all obligations, expenses and improvements of the conservatorship, including all fees and expenses of the conservator, have been fully paid or provided for and the purposes of the conservatorship have been fulfilled; (3)   the building has been sold by the conservator and the proceeds distributed in accordance with section 9(d);15 or (4)   the conservator has been unable, after diligent effort, to present a plan that could be approved under section 6(b)(3)16 or to implement a previously approved plan or, for any reason, the purposes of the conservatorship cannot be fulfilled. § 1111.  Applicability (a)  General inapplicability.—This act shall not apply to commercial and residential buildings, structures or land owned by or held in trust for the Federal Government and regulated under the United States Housing Act of 1937 (50 Stat. 888, 42 U.S.C. § 1437 et seq.) and regulations promulgated under that act. (b)   Inapplicability to service members.—This act shall not apply if the property owner has vacated the property in order to perform military service in time of war, armed conflict or in order to assist with relief efforts during a declared Federal or State emergency as a member of the United States Armed Forces or its reserve component.

CHAPTER 48.2 NEIGHBORHOOD BLIGHT RECLAMATION AND REVITALIZATION ACT 53 Pa.C.S. §§ 6101 – 6145

SUBCHAPTER A. PRELIMINARY PROVISIONS Sec.

§ 6101. § 6102. § 6103.

Short title of chapter Legislative findings and purpose Definitions

SUBCHAPTER B. ACTIONS AGAINST OWNER OF PROPERTY WITH SERIOUS CODE VIOLATIONS Sec.

§ § § § §

6111. 6112. 6113. 6114. 6115.

Actions Asset attachment Duty of out-of-State owners of property in this Commonwealth Duty of corporation, association and trust owners Failure to comply with a code requirement

15. 68 P.S. § 1109. 16. 68 P.S. § 1106.

732

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GOVERNMENT REGULATION

Ch. 48.2

Sec.

§ 6131.

Part I Ch. 1–14 Brokers

SUBCHAPTER C. PERMIT DENIALS BY MUNICIPALITIES Municipal permit denial

Part II Ch. 15–22 Deeds

SUBCHAPTER D. MISCELLANEOUS PROVISIONS Sec.

Part III Ch. 23–35 Mortgages

§§ 6141, 6142. (Reserved) § 6143. Conflict with other law § 6144. Relief for inherited property § 6145 Construction

SUBCHAPTER A. PRELIMINARY PROVISIONS

Part V Ch. 41–48A Zoning, etc. Part VI Ch. 49–56 Taxation Part VII Ch. 57–63 Litigation Part VIII Ch. 64–67 L/T Part IX Ch. 68–72 Condos, etc. Index

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Part IV Ch. 36–40 Insurance

§ 6101.   Short title of chapter This chapter shall be known and may be cited as the Neighborhood Blight Reclamation and Revitalization Act. § 6102.   Legislative findings and purpose The General Assembly finds and declares as follows: (1)  There are deteriorated properties located in all municipalities of this Commonwealth as a result of neglect by their owners in violation of applicable State and municipal codes. (2)  These deteriorated properties create public nuisances which have an impact on crime and the quality of life of our residents and require significant expenditures of public funds in order to abate and correct the nuisances. (3)  In order to address these situations, it is appropriate to deny certain governmental permits and approvals in order: (i)  To prohibit property owners from further extending their financial commitments so as to render themselves unable to abate or correct the code, statutory and regulatory violations or tax delinquencies. (ii)   To reduce the likelihood that other municipalities will have to address the owners’ neglect and resulting deteriorated properties. (iii)   To sanction the owners for not adhering to their legal obligations to the Commonwealth and its municipalities, as well as to tenants, adjoining property owners and neighborhoods. § 6103.  Definitions The following words and phrases when used in this chapter shall have the meanings given to them in this section unless the context clearly indicates otherwise: “Agent.” Any director, officer, servant, employee or other person authorized to act in behalf of a corporation or association and, in the case of an unincorporated association, a member of such association. “Building.” A residential, commercial or industrial building or structure and the land appurtenant to it. “Corporation.” The term does not include a municipal authority. “Court.” The appropriate court of common pleas. “Mortgage lender.” A business association defined as a “banking institution” or “mortgage lender” under 7 Pa.C.S. Ch. 61 (relating to mortgage loan industry licensing and consumer protection) that is in possession of or holds title to real

733

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§ 6111 BLIGHT property pursuant to, in enforcement of or to protect rights arising under a mortgage, mortgage note, deed of trust or other transaction that created a security interest in the real property. “Municipal code” or “code.” A building, housing, property maintenance, fire, health or other public safety ordinance, related to the use or maintenance of real property, enacted by a municipality. The term does not include a subdivision and land development ordinance or a zoning ordinance enacted by a municipality. “Municipality.” A city, borough, incorporated town, township or home rule, optional plan or optional charter municipality or municipal authority in this Commonwealth and any entity formed pursuant to Subchapter A of Chapter 23 (relating to intergovernmental cooperation). “Municipal permits.” Privileges relating to real property granted by a municipality, including, but not limited to, building permits, exceptions to zoning ordinances and occupancy permits. The term includes approvals pursuant to land use ordinances other than decisions on the substantive validity of a zoning ordinance or map or the acceptance of a curative amendment. “Owner.” A holder of the title to residential, commercial or industrial real estate, other than a mortgage lender, who possesses and controls the real estate. The term includes, but is not limited to, heirs, assigns, beneficiaries and lessees, provided this ownership interest is a matter of public record. “Public nuisance.” Property which, because of its physical condition or use, is regarded as a public nuisance at common law or has been declared by the appropriate official a public nuisance in accordance with a municipal code. “Serious violation.” A violation of a State law or a code that poses an imminent threat to the health and safety of a dwelling occupant, occupants in surrounding structures or a passersby. “State law.” A statute of the Commonwealth or a regulation of an agency charged with the administration and enforcement of Commonwealth law. “Substantial step.” An affirmative action as determined by a property code official or officer of the court on the part of a property owner or managing agent to remedy a serious violation of a State law or municipal code, including, but not limited to, physical improvements or repairs to the property, which affirmative action is subject to appeal in accordance with applicable law. “Tax delinquent property.” Tax delinquent real property as defined under: (1)   the act of July 7, 1947 (P.L. 1368, No. 542),17 known as the Real Estate Tax Sale Law; (2)   the act of May 16, 1923 (P.L. 207, No. 153),18 referred to as the Municipal Claim and Tax Lien Law; or (3)   the act of October 11, 1984 (P.L. 876, No. 171),19 known as the Second Class City Treasurer›s Sale and Collection Act, located in any municipality in this Commonwealth. SUBCHAPTER B. ACTIONS AGAINST OWNER OF PROPERTY WITH SERIOUS CODE VIOLATIONS § 6111.  Actions In addition to any other remedy available at law or in equity, a municipality may institute the following actions against the owner of any real property that is in serious violation of a code or for failure to correct a condition which causes 17. 72 P.S. § 5860.101 et seq. 18. 53 P.S. § 7101 et seq. 19. 53 P.S. § 27101 et seq.

734

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GOVERNMENT REGULATION

Ch. 48.2

Part III Ch. 23–35 Mortgages Part IV Ch. 36–40 Insurance Part V Ch. 41–48A Zoning, etc. Part VI Ch. 49–56 Taxation Part VII Ch. 57–63 Litigation Part VIII Ch. 64–67 L/T Part IX Ch. 68–72 Condos, etc. Index

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Part II Ch. 15–22 Deeds

735

Part I Ch. 1–14 Brokers

the property to be regarded as a public nuisance: (1)(i)   An in personam action may be initiated for a continuing violation for which the owner takes no substantial step to correct within six months following receipt of an order to correct the violation, unless the order is subject to a pending appeal before the administrative agency or court. (ii)   Notwithstanding any law limiting the form of action for the recovery of penalties by a municipality for the violation of a code, the municipality may recover, in a single action under this section, an amount equal to any penalties imposed against the owner and any costs of remediation lawfully incurred by or on behalf of the municipality to remedy any code violation. (2)   A proceeding in equity. § 6112.   Asset attachment (a)  General rule.—A lien may be placed against the assets of an owner of real property that is in serious violation of a code or is regarded as a public nuisance after a judgment, decree or order is entered by a court of competent jurisdiction against the owner of the property for an adjudication under section 6111 (relating to actions). (b)  Construction.—Nothing in this section shall be construed to authorize, in the case of an owner that is a corporation, association or trust, a lien on the individual assets of the general partner, agent or trustee, except as otherwise allowed by law, limited partner, shareholder, member or beneficiary of the association or trust. § 6113.   Duty of out-of-State owners of property in this Commonwealth A person or other responsible party who lives or has a principal place of residence outside this Commonwealth, who owns or is responsible for property in this Commonwealth against which code violations have been cited and the person is charged under 18 Pa.C.S. (relating to crimes and offenses), and who has been properly notified of the violations may be extradited to this Commonwealth to face criminal prosecution to the full extent allowed and in the manner authorized by 42 Pa.C.S. Ch. 91 (relating to detainers and extradition). § 6114.   Duty of corporation, association and trust owners Where, after reasonable efforts, service of process for a notice or citation for any code violation for any real property owned by a corporation, association or trust cannot be accomplished by handing a copy of the notice or citation to an agent, executive officer, partner or trustee of the corporation, association or trust or to the manager, trustee or clerk in charge of the property, the delivery of the notice or citation may occur by registered, certified or United States Express mail, accompanied by a delivery confirmation: (1)   To the registered office of the corporation, association or trust. (2)   Where the corporation, association or trust does not have a registered office, to the mailing address used for real estate tax collection purposes, if accompanied by the posting of a conspicuous notice to the property and by handing a copy of the notice or citation to the person in charge of the property at that time. (3)   In the case of a corporation, notice shall be sent to the registered office on file with the Department of State. § 6115.   Failure to comply with a code requirement (a)  Offense defined.—The owner of real property commits the offense of failure to comply with a code requirement if all of the following apply: (1)   The owner of real property has been convicted of a second or subsequent serious violation of the same provision of a municipal code for the same property. (2)  The violation poses a threat to the public’s health, safety or property and the owner has not taken a substantial step to correct the violation. (3)  The violation is considered a public nuisance and the owner has not made a reasonable attempt to correct the violation.

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PART V

12/22/21 10:45 AM

§§ 6131 BLIGHT (b)  Grading.—Failure to comply with a code requirement shall constitute a: (1)   Misdemeanor of the second degree if the offense is a second conviction of a serious violation of the same provision of a municipal code relating to the same property. (2)   Misdemeanor of the first degree if the offense is based on three or more convictions of serious violations of the same provision of a municipal code relating to the same property. (c)  Definition.—As used in this section, “code requirement” shall mean a building, housing or property maintenance code or ordinance of a municipality. SUBCHAPTER C. PERMIT DENIALS BY MUNICIPALITIES § 6131.   Municipal permit denial (a)  Denial.— (1)  A municipality or a board under subsection (c) may deny issuing to an applicant a municipal permit if the applicant owns real property in any municipality for which there exists on the real property: (i)   a final and unappealable tax, water, sewer or refuse collection delinquency on account of the actions of the owner; or (ii)   a serious violation of State law or a code and the owner has taken no substantial steps to correct the violation within six months following notification of the violation and for which fines or other penalties or a judgment to abate or correct were imposed by a magisterial district judge or municipal court, or a judgment at law or in equity was imposed by a court of common pleas. However, no denial shall be permitted on the basis of a property for which the judgment, order or decree is subject to a stay or supersedeas by an order of a court of competent jurisdiction or automatically allowed by statute or rule of court until the stay or supersedeas is lifted by the court or a higher court or the stay or supersedeas expires as otherwise provided by law. Where a stay or supersedeas is in effect, the property owner shall so advise the municipality seeking to deny a municipal permit. (2)  A municipality or board shall not deny a municipal permit to an applicant if the municipal permit is necessary to correct a violation of State law or a code. (3)  The municipal permit denial shall not apply to an applicant’s delinquency on taxes, water, sewer or refuse collection charges that are under appeal or otherwise contested through a court or administrative process. (4)  In issuing a denial of a permit based on an applicant’s delinquency in real property taxes or municipal charges or for failure to abate a serious violation of State law or a code on real property that the applicant owns in this Commonwealth, the municipality or board shall indicate the street address, municipal corporation and county in which the property is located and the court and docket number for each parcel cited as a basis for the denial. The denial shall also state that the applicant may request a letter of compliance from the appropriate State agency, municipality or school district, in a form specified by such entity as provided in this section. (b)   Proof of compliance.— (1)   All municipal permits denied in accordance with this subsection may be withheld until an applicant obtains a letter from the appropriate State agency, municipality or school district indicating the following: (i)  the property in question has no final and unappealable tax, water, sewer or refuse delinquencies; (ii)   the property in question is now in State law and code compliance; or

736

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GOVERNMENT REGULATION

Ch. 48.2

Part VI Ch. 49–56 Taxation Part VII Ch. 57–63 Litigation Part VIII Ch. 64–67 L/T Part IX Ch. 68–72 Condos, etc. Index

gtb-parealestate22-all.indb 737

Part V Ch. 41–48A Zoning, etc.

737

Part IV Ch. 36–40 Insurance

20. 53 P.S. § 10101 et seq. 21. 2 Pa.C.S. § 551 et seq. 22. 2 Pa.C.S. § 751 et seq.

Part III Ch. 23–35 Mortgages

§ 6141.  (Reserved) § 6142.  (Reserved) § 6143.   Conflict with other law In the event of a conflict between the requirements of this chapter and Federal requirements applicable to demolition, disposition or redevelopment of buildings, structures or land owned by or held in trust for the Government of the United States and regulated pursuant to the United States Housing Act of 1937 (50 Stat. 888, 42 U.S.C. § 1437 et seq.) and the regulations promulgated thereunder, the Federal requirements shall prevail.

Part II Ch. 15–22 Deeds

SUBCHAPTER D. MISCELLANEOUS PROVISIONS

Part I Ch. 1–14 Brokers

(iii)   the owner of the property has presented and the appropriate State agency or municipality has accepted a plan to begin remediation of a serious violation of State law or a code. Acceptance of the plan may be contingent on: (A)   Beginning the remediation plan within no fewer than 30 days following acceptance of the plan or sooner, if mutually agreeable to both the property owner and the municipality. (B)  Completing the remediation plan within no fewer than 90 days following commencement of the plan or sooner, if mutually agreeable to both the property owner and the municipality. (2)  In the event that the appropriate State agency, municipality or school district fails to issue a letter indicating tax, water, sewer, refuse, State law or code compliance or noncompliance, as the case may be, within 45 days of the request, the property in question shall be deemed to be in compliance for the purpose of this section. The appropriate State agency, municipality or school district shall specify the form in which the request for a compliance letter shall be made. (3)   Letters required under this section shall be verified by the appropriate municipal officials before issuing to the applicant a municipal permit. (4)(i)   Municipal permits may be denied by a board in accordance with the requirements of this section to the extent that approval of the municipal permit is within the jurisdiction of the board. For purposes of this section, “board” shall mean a zoning hearing board or other body granted jurisdiction to render decisions in accordance with the act of July 31, 1968 (P.L.805, No.247),20 known as the Pennsylvania Municipalities Planning Code, or a similar board in municipalities not subject to that act. (ii)  In any proceeding before a board other than the governing body of the municipality, the municipality may appear to present evidence that the applicant is subject to a denial by the board in accordance with this section. (iii)  For purposes of this subsection, a municipal permit may only be denied to an applicant other than an owner if: (A)   the applicant is acting under the direction or with the permission of an owner; and (B)   the owner owns real property satisfying the conditions of subsection (a). (c)   Applicability of other law.—A denial of a permit shall be subject to the provisions of 2 Pa.C.S. Chs. 5 Subch. B21 (relating to practice and procedure of local agencies) and 7 Subch. B22 (relating to judicial review of local agency action) or the Pennsylvania Municipalities Planning Code, for denials subject to the act.

Table of Contents

PART V

12/22/21 10:45 AM

§ 6141 BLIGHT § 6144.   Relief for inherited property Where property is inherited by will or intestacy, the devisee or heir shall be given the opportunity to make payments on reasonable terms to correct code violations or to enter into a remediation agreement under section 6131(b)(1)(iii) (relating to municipal permit denial) with a municipality to avoid subjecting the devisee’s or heir’s other properties to asset attachment or denial of permits and approvals on other properties owned by the devisee or heir. § 6145.  Construction Nothing in this chapter shall be construed to abridge or alter the remedies now existing at common law or by statute, but the provisions of this chapter are in addition to such remedies.

CHAPTER 48.3 MUNICIPALITY CONDEMNATION ORDER ACT 53 P.S. §§ 4271–4277

AN ACT Providing for filing and recording by municipalities of condemnation orders and for statements of vacated condemnation orders. § 1. Short title. This act shall be known and may be cited as the Municipality Condemnation Order Act. § 2. Definitions. The following words and phrases when used in this act shall have the meanings given to them in this section unless the context clearly indicates otherwise: “Condemnation order.” A declaration by an authorized official of a municipality that a dwelling, building, structure or premises is unfit for human habitation or other use or conditions exist that are dangerous or injurious to the health or safety of the occupants of the dwelling, building, structure or premises, the occupants of neighboring dwellings or other residents of the municipality and which declaration includes a demand for the owner to take corrective action to the dwelling, building, structure or premises. “Municipality.” A city, borough, incorporated town, township, home rule municipality, optional plan municipality, optional charter municipality or similar general purpose unit of government that may be created or authorized by statute. § 3. Filing and recording of condemnation orders. (a) General rule.—A municipality that issues a condemnation order on a property may record the condemnation order with the office of recorder of deeds of the county in which the property is located. (b) Constructive notice.—If recorded, the condemnation order shall be constructive notice to all purchasers and other persons who are responsible for the property. § 4. Cost of recording. A municipality may recover the cost of recording a condemnation order on a property from the tax sale proceeds or directly from the purchaser of the property. § 5. Validity of condemnation order. Notwithstanding section 612(a) of the act of July 7, 1947 (P.L.1368, No.542), known as the Real Estate Tax Sale Law, a properly recorded condemnation order shall be a lien on the property and shall not be affected by an upset sale, a judicial sale or a repository sale of the property. § 6. Statement of vacated condemnation order. After a condemnation order on a property has been recorded under this section, if the municipality vacates the condemnation order, the municipality shall, within 15 days of the condemnation order being vacated, record with the office of recorder

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GOVERNMENT REGULATION

Ch. 48.4

Part II Ch. 15–22 Deeds

CHAPTER 48.4 BLIGHTED PROPERTY—DEFINITION 1 Pa.C.S. § 1991

Part IV Ch. 36–40 Insurance Part V Ch. 41–48A Zoning, etc. Part VI Ch. 49–56 Taxation Part VII Ch. 57–63 Litigation Part VIII Ch. 64–67 L/T Part IX Ch. 68–72 Condos, etc. Index

gtb-parealestate22-all.indb 739

Part III Ch. 23–35 Mortgages

1 Pa.C.S. § 1991. Definitions. The following words and phrases, when used in any statute finally enacted on or after September 1, 1937, unless the context clearly indicates otherwise, shall have the meanings given to them in this section: * * * “Blighted property.” The term includes: (1)  A premises: (i)  ascertained to be a public nuisance due to physical condition or use and regarded as such at common law and deemed to be a danger to public health, safety and welfare or public nuisance as regulated by a locally adopted property maintenance code or, if no such code exists, any compatible code enacted by the act of November 10, 1999 (P.L.491, No.45), known as the Pennsylvania Construction Code Act; or (ii)  the condition of which contains an attractive nuisance created by physical condition, use or occupancy, including abandoned water wells, shafts, basements, excavations and unsafe fences or other structures, or which contains an unauthorized entry, unsafe equipment or other safety risk. (2)   A dwelling that has been condemned or otherwise deemed unfit for occupancy or use by the local authority having jurisdiction due to dilapidated, unsanitary, unsafe or vermin-infested condition or that is lacking in the facilities and equipment as required by the Pennsylvania Construction Code Act. (3)  A structure determined by the local authority having jurisdiction to be a fire hazard or otherwise that could easily catch fire or cause a fire and endanger public health, safety and welfare. (4)  A vacant or unimproved lot or parcel of ground located in a predominantly developed neighborhood that has become a place for the accumulation of trash and debris or a haven for rodents and other vermin by reason of neglect or lack of maintenance. (5)   A property that is vacant and has not been rehabilitated within one year from receipt of notice for corrective action as issued by the local authority having jurisdiction, except a property where a valid construction permit is in place. (6)   A vacant or unimproved lot or parcel of ground that is subject to a municipal lien for the cost of demolition of a structure previously located on the property and for which no payments on the lien have been made for a period of 12 months. (7)   A vacant or unimproved lot or parcel of ground on which the total municipal liens for delinquent real estate and property tax or any other type of municipal claim are greater than 150% of the fair market value of the property as established by the board of assessment appeals or other body with legal authority to determine the taxable value of the property. (8)   A property that has been declared abandoned in writing by the owner, including an estate that is in possession of the property.

739

Part I Ch. 1–14 Brokers

of deeds a statement indicating that the condemnation order has been vacated. § 7. Effective date. This act shall take effect in 60 days. Note: Approved by the Governor October 29, 2020 Effective date: December 28, 2020

Table of Contents

PART V

12/22/21 10:45 AM

CHAPTER 48A LAND BANKS 68 Pa.C.S. §§ 2101 – 2120

Sec. § § § § § § § § § § § § § § § § § § § §

2101. 2102. 2103. 2104. 2105. 2106. 2107. 2108. 2109. 2110. 2111. 2112. 2113. 2114. 2115. 2116. 2117. 2118. 2119. 2120.

Scope of chapter. Legislative findings and purpose. Definitions. Creation and existence. Board. Staff. Powers. Eminent domain. Acquisition of property. Disposition of property. Financing of land bank operations. Borrowing and issuance of bonds. Public records and public access. Dissolution of land bank. Conflicts of interest. Construction, intent and scope. Delinquent property tax enforcement. Expedited quiet title proceedings. Annual audit and report. Determination on procedural revision.

§ 2101.   Scope of chapter. This chapter relates to land banks. § 2102.   Legislative findings and purpose. The General Assembly finds and declares that: (1)  Strong communities are important to the social and economic vitality of this Commonwealth. Whether urban, suburban or rural, many communities are struggling to cope with vacant, abandoned and tax-delinquent properties. (2))   Citizens of this Commonwealth are affected adversely by vacant, abandoned and tax-delinquent properties, including properties which have been vacated or abandoned due to mortgage foreclosure. (3))  Vacant, abandoned and tax-delinquent properties impose significant costs on neighborhoods, communities and municipalities by lowering property values, increasing fire and police protection costs, decreasing tax revenues and undermining community cohesion. (4))   There is an overriding public need to confront the problems caused by vacant, abandoned and tax-delinquent properties through the creation of new tools to enable municipalities to turn vacant, abandoned and tax-delinquent spaces into vibrant places. (5)   Land banks are one of the tools that municipalities may use to facilitate the return of vacant, abandoned and tax-delinquent properties to productive use. § 2103.  Definitions. The following words and phrases when used in this chapter shall have the meanings given to them in this section unless the context clearly indicates otherwise: “Board.” The board of directors of a land bank.

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GOVERNMENT REGULATION

Ch. 48A

(7) Additional terms and conditions the land bank jurisdiction deems reasonable and necessary for operation of the land bank. (b)  Filing.—The governing body of the land bank jurisdiction which creates a land bank shall file a copy of the ordinance with the department and with the

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Index

741

Part IX Ch. 68–72 Condos, etc.

(6)  Policies regarding former owner-occupants who are occupying homes acquired by the land bank. These policies shall show a preference for keeping the former owner-occupants in their homes, whenever feasible.

Part VIII Ch. 64–67 L/T

(5)   The manner by which residents will be provided an opportunity to have input into the land bank decision-making process.

Part VII Ch. 57–63 Litigation

(4)  The qualifications, manner of selection or appointment and terms of office of members of the board.

Part VI Ch. 49–56 Taxation

(3)   The names of individuals to serve as initial members of the board and the length of terms which they will serve.

Part V Ch. 41–48A Zoning, etc.

(2)   The number of members of the board.

Part IV Ch. 36–40 Insurance

(1)   The name of the land bank.

Part III Ch. 23–35 Mortgages

(a)  Authority.—Subject, in a city of the first class, to the home rule charter, a land bank jurisdiction may elect to create a land bank by the adoption of an ordinance to create a binding legal obligation. The ordinance must specify the following:

Part II Ch. 15–22 Deeds

§ 2104.   Creation and existence.

Part I Ch. 1–14 Brokers

“Department.” The Department of Community and Economic Development of the Commonwealth. “Financial institution.” A bank, savings association, operating subsidiary of a bank or savings association, credit union, association licensed to originate mortgage loans or an assignee of a mortgage or note originated by such an institution. “Land bank.” A public body and a body corporate and politic established under this chapter. “Land bank jurisdiction.” (1)   a county, a city, a borough, a township and an incorporated town with a population of more than 10,000; or (2)   two or more municipalities with populations less than 10,000 that enter into an intergovernmental cooperation agreement to establish and maintain a land bank. “Low income.” A household with total income at or below 80% of the area median income, adjusted for household size, as defined annually by the United States Department of Housing and Urban Development. “Municipality.” A county, city, borough, incorporated town, township or home rule municipality. “Owner-occupant.” A natural person with a legal or equitable ownership interest in property which was the primary residence of the person for at least three consecutive months at any point in the year preceding the date of initial delinquency. “Real property.” Land and all structures and fixtures thereon and all estates and interests in land, including easements, covenants and leaseholders. “School district.” Any of the classifications of school districts specified in section 202 of the act of March 10, 1949 (P.L.30, No.14), known as the Public School Code of 1949. The term includes, as to any real property acquired, owned or conveyed by a land bank, the school district within whose geographical jurisdiction the real property is located.

Table of Contents

PART V

12/22/21 10:45 AM

§ 2104

LAND BANKS

Department of State. After receipt of the ordinance, the Secretary of the Commonwealth shall issue a certificate of incorporation. (c)  Combinations.— (1)  The authority under subsection (a) may be exercised in combination pursuant to an intergovernmental cooperation agreement by: (i)   more than one land bank jurisdiction; or (ii)   a land bank jurisdiction and one or more municipalities. (2)   If a land bank is established under paragraph (1), the intergovernmental cooperation agreement must specify matters identified in subsection (a). (d)  Limitation.—Except as set forth in subsection (c), if a county establishes a land bank, the land bank shall have the power to acquire real property only in those portions of the county located outside of the geographical boundaries of any other land bank established by another land bank jurisdiction located partially or entirely within the county. (e)  Participation by school district.—A school district may participate in a land bank pursuant to an intergovernmental cooperation agreement. The agreement must specify the membership, if any, of the school district on the board of the land bank and the actions of the land bank which are subject to approval by the school district. (f)   Legal status of land bank.—A land bank shall: (1)   be a public body corporate and politic; and (2)   have duration until terminated and dissolved under section 2114 (relating to dissolution of land bank). (g)  Collaboration.—A land bank, a political subdivision and another municipal entity may enter into an intergovernmental cooperation agreement relative to the operations of a land bank. (h)  Redevelopment authority.— (1)  A land bank jurisdiction located in a county of the second A, third, fourth, fifth, sixth, seventh or eighth class may, by ordinance, designate a redevelopment authority created for the jurisdiction and operating under the act of May 24, 1945 (P.L.991, No.385), known as the Urban Redevelopment Law, as land bank for the jurisdiction. The ordinance shall designate the authority as the land bank and contain the specifications of subsection (a)(5), (6) and (7). The ordinance may contain voting or approval requirements as authorized by section 2110(g) (relating to disposition of property). The ordinance shall be filed with the Department of State, which shall note it on the record of incorporation for the authority. The department shall create a model ordinance for the designation. (2)   A redevelopment authority designated under this subsection shall exercise the powers of a land bank under this chapter subject to the following: (i)   The designation shall not affect the organization, membership, eligibility, tenure and compensation of the authority board, except that voting requirements specified in sections 2105(h) (relating to board) and 2115 (relating to conflicts of interest) shall apply to proceedings under this chapter. Upon a vacancy or expiration of the term of a board member occurring after the designation, the land bank jurisdiction shall appoint a replacement to ensure compliance with the requirements of section 2105(b)(3). (ii)   Subject to subparagraph (i), the authority shall establish rules, policies and procedures consistent with this chapter for land bank activities. (iii)   The authority as land bank shall only acquire, hold and dispose of property in accordance with this chapter. Finances of the authority as land bank shall be retained and accounted for separately from finances held for

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GOVERNMENT REGULATION

Ch. 48A

Part IV Ch. 36–40 Insurance Part V Ch. 41–48A Zoning, etc. Part VI Ch. 49–56 Taxation Part VII Ch. 57–63 Litigation Part VIII Ch. 64–67 L/T Part IX Ch. 68–72 Condos, etc. Index

gtb-parealestate22-all.indb 743

Part III Ch. 23–35 Mortgages

743

Part II Ch. 15–22 Deeds

§ 2105.  Board. (a)  Membership.—A board shall consist of an odd number of members and be not less than 5 members nor more than 11 members. Unless restricted by the actions or agreements specified in section 2104 (relating to creation and existence) and subject to the limits stated in this section, the size of the board may be adjusted in accordance with bylaws of the land bank. (b)   Eligibility to serve on board.— (1)   Notwithstanding any law to the contrary, a public officer shall be eligible to serve as a board member, and the acceptance of the appointment shall neither terminate nor impair that public office. (2)   A municipal employee shall be eligible to serve as a board member. (3)   An established land bank board shall include at least one voting member who: (i)   is a resident of the land bank jurisdiction; (ii)   is not a public official or municipal employee; and (iii)  maintains membership with a recognized civic organization within the land bank jurisdiction. (4)   A member removed under subsection (d)(3) shall be ineligible for reappointment to the board unless the reappointment is confirmed unanimously by the board. (5)   As used in this subsection, the term “public officer” means an individual who is elected to a municipal office. (c)  Officers.—The members of the board shall select annually from among their members a chair, vice chair, secretary, treasurer and other officers as the board determines. (d)  Rules.—The board shall establish rules on all of the following: (1)   Duties of officers under subsection (c). (2)  Attendance and participation of members in its regular and special meetings. (3)   A procedure to remove a member by a majority vote of the other members for failure to comply with a rule. (4)   Other matters necessary to govern the conduct of a land bank. (e)  Vacancies.—A vacancy on the board shall be filled in the same manner as the original appointment. Upon removal under subsection (d)(3), the position shall become vacant. (f)  Compensation.—Board members shall serve without compensation. The board may reimburse a member for expenses actually incurred in the performance of duties on behalf of the land bank. (g)  Meetings.— (1)   The board shall meet as follows: (i)   In regular session according to a schedule adopted by the board. (ii)   In special session: (A)   as convened by the chair; or (B)   upon written notice signed by a majority of the members.

Part I Ch. 1–14 Brokers

other authority purposes and shall be subject to section 2119 (relating to annual audit and report). (3)   The designation of the authority as land bank may be revoked in the same manner as the dissolution of a land bank under section 2114 (relating to dissolution of land bank).

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PART V

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§ 2106

LAND BANKS

(2)  A majority of the board, excluding vacancies, constitutes a quorum. Physical presence is required under this paragraph. (h)  Voting.— (1)   Except as set forth in paragraph (2) or (3), action of the board must be approved by the affirmative vote of a majority of the board present and voting. (2)   Action of the board on the following matters must be approved by a majority of the entire board membership: (i)   Adoption of bylaws. (ii)   Adoption of rules under subsection (d). (iii)   Hiring or firing of an employee or contractor of the land bank. This function may, by majority vote of the entire board membership, be delegated by the board to a specified officer or committee of the land bank. (iv)   Incurring of debt. (v)   Adoption or amendment of the annual budget. (vi)  Sale, lease, encumbrance or alienation of real property or personal property with a value of more than $50,000. (3)  A resolution under section 2114 (relating to dissolution of a land bank)   must be approved by two-thirds of the entire board membership. (4)   A member of the board may not vote by proxy. (5)   A member may request a recorded vote on any resolution or action of the land bank. (i)  Immunity.—A land bank jurisdiction which establishes a land bank and a municipality and a school district which are parties to an intergovernmental cooperation agreement establishing a land bank shall not be liable personally on the bonds or other obligations of the land bank. Rights of creditors of a land bank shall be solely against the land bank. § 2106.  Staff. (a)  Employees.—A land bank may employ or enter into a contract for an executive director, counsel and legal staff, technical experts and other individuals and may determine the qualifications and fix the compensation and benefits of those employees. (b)  Contracts.—A land bank may enter into a contract with a municipality for: (1)   the municipality to provide staffing services to the land bank; or (2)   the land bank to provide staffing services to the municipality. § 2107.  Powers. A land bank constitutes a public body, corporate and politic, exercising public powers of the Commonwealth necessary or appropriate to carry out this chapter, including the following powers: (1)   To adopt, amend and repeal bylaws for the regulation of its affairs and the conduct of its business. (2)  To sue and be sued in its own name and be a party in a civil action. This paragraph includes an action to clear title to property of the land bank. (3)   To adopt a seal and to alter the same at pleasure. (4)   To borrow from Federal Government funds, from the Commonwealth, from private lenders or from municipalities, as necessary, for the operation and work of the land bank. (5)   To issue negotiable revenue bonds and notes according to the provisions of this chapter.

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GOVERNMENT REGULATION

Ch. 48A

Part V Ch. 41–48A Zoning, etc. Part VI Ch. 49–56 Taxation Part VII Ch. 57–63 Litigation Part VIII Ch. 64–67 L/T Part IX Ch. 68–72 Condos, etc. Index

gtb-parealestate22-all.indb 745

Part IV Ch. 36–40 Insurance

745

Part III Ch. 23–35 Mortgages

§ 2109.   Acquisition of property. (a)   Title to be held in its name.—A land bank shall hold in its own name all real property it acquires. (b)  Tax exemption.— (1)   Except as set forth in paragraph (2), the real property of a land bank and its income and operations are exempt from State and local tax.

Part II Ch. 15–22 Deeds

§ 2108.   Eminent domain. A land bank does not possess the power of eminent domain.

Part I Ch. 1–14 Brokers

(6)  To procure insurance or guarantees from the Federal Government or the Commonwealth of the payment of debt incurred by the land bank, and to pay premiums in connection with the insurance or guarantee. (7)   To enter into contracts and other instruments necessary, incidental or convenient to the performance of its duties and the exercise of its powers. This paragraph includes intergovernmental cooperation agreements under 53 Pa.C.S. Ch. 23 Subch. A (relating to intergovernmental cooperation) for the joint exercise of powers under this chapter. (8)   To enter into contracts and intergovernmental cooperation agreements with municipalities for the performance of functions by municipalities on behalf of the land bank or by the land bank on behalf of municipalities. (9)  To make and execute contracts and other instruments necessary or convenient to the exercise of the powers of the land bank. Any contract or instrument signed shall be executed by and for the land bank if the contract or instrument is signed, including an authorized facsimile signature, by: (i)   the chair or vice chair of the land bank; and (ii)  either: (A)   the secretary or assistant secretary of the land bank; or (B)   the treasurer or assistant treasurer of the land bank. (10)   To procure insurance against losses in connection with the real property, assets or activities of the land bank. (11)   To invest money of the land bank at the discretion of the board in instruments, obligations, securities or property determined proper by the board and to name and use depositories for its money. (12)   To enter into contracts for the management of, the collection of rent from or the sale of real property of the land bank. (13)   To design, develop, construct, demolish, reconstruct, rehabilitate, renovate, relocate and otherwise improve real property or rights or interests in real property. (14)  To fix, charge and collect rents, fees and charges for the use of real property of the land bank and for services provided by the land bank. (15)   To grant or acquire licenses, easements, leases or options with respect to real property of the land bank. (16)   To enter into partnerships, joint ventures and other collaborative relationships with municipalities and other public and private entities for the ownership, management, development and disposition of real property. (17)   To organize and reorganize the executive, administrative, clerical and other departments of the land bank and to fix the duties, powers and compensation of employees, agents and consultants of the land bank. (18)  To do all other things necessary or convenient to achieve the objectives and purposes of the land bank or other law related to the purposes and responsibility of the land bank.

Table of Contents

PART V

12/22/21 10:45 AM

§ 2110

LAND BANKS

(2)   Paragraph (1) does not apply to real property of a land bank after the fifth consecutive year in which the real property is continuously leased to a private third party. However, real property shall continue to be exempt from State and local taxes if it is leased to a nonprofit or governmental agency at substantially less than fair market value. (c)  Methods of acquisition.—A land bank may acquire real property or interests in real property by any means on terms and conditions and in a manner the land bank considers proper. (d)   Acquisitions from municipalities.— (1)  A land bank may acquire real property by purchase contracts, lease purchase agreements, installment sales contracts and land contracts and may accept transfers from municipalities upon terms and conditions as agreed to by the land bank and the municipality. (2)   A municipality may transfer to a land bank real property and interests in real property of the municipality on terms and conditions and according to procedures determined by the municipality as long as the real property is located within the jurisdiction of the land bank. (3)   A redevelopment authority located within a land bank jurisdiction established under this chapter may, with the consent of the local governing body and without a redevelopment contract, convey property which it acquired before the effective date of this paragraph to the land bank. A conveyance under this paragraph shall be with fee simple title, free of all liens and encumbrances. (e)  Maintenance.—A land bank shall maintain all of its real property in accordance with the statutes and ordinances of the jurisdiction in which the real property is located. (f)  Prohibition.— (1)   Subject to the provisions of paragraph (2), a land bank may not own or hold real property located outside the jurisdictional boundaries of the entities which created the land bank under section 2104(c) (relating to creation and existence). (2)   A land bank may be granted authority pursuant to an intergovernmental cooperation agreement with a municipality to manage and maintain real property located within the jurisdiction of the municipality. (g)   Tax claim bureaus.—A tax claim bureau may transfer to a land bank real property of the county held by the tax claim bureau, as trustee for the county, in a repository for unsold property under section 626 of the act of July 7, 1947 (P.L.1368, No.542), known as the Real Estate Tax Sale Law. (h)   Acquisition of tax delinquent properties.—If authorized by the land bank jurisdiction which created a land bank or otherwise by intergovernmental cooperation agreement, a land bank may accept donations of real property and extinguish delinquent claims for taxes as to the property under section 5.1 of the act of May 16, 1923 (P.L.207, No.153), referred to as the Municipal Claim and Tax Lien Law, or section 303 of the Real Estate Tax Sale Law. For the purposes of this subsection, the land bank shall have all rights and obligations of the municipality provided for in section 5.1 of the Municipal Claim and Tax Lien Law and of a local taxing authority provided for in section 303 of the Real Estate Tax Sale Law. § 2110.   Disposition of property. (a)  Public access to inventory.—A land bank shall maintain and make available for public review and inspection an inventory of real property held by the land bank.

746

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GOVERNMENT REGULATION

Ch. 48A

Part III Ch. 23–35 Mortgages Part IV Ch. 36–40 Insurance Part V Ch. 41–48A Zoning, etc. Part VI Ch. 49–56 Taxation Part VII Ch. 57–63 Litigation Part VIII Ch. 64–67 L/T Part IX Ch. 68–72 Condos, etc.

(1)   the Federal Government;

Part II Ch. 15–22 Deeds

§ 2111.   Financing of land bank operations. (a)  General rule.—A land bank may receive funding through grants and loans from:

Part I Ch. 1–14 Brokers

(b)  Power.—A land bank may convey, exchange, sell, transfer, lease, grant or mortgage interests in real property of the land bank in the form and by the method determined to be in the best interests of the land bank. (c)  Consideration.— (1)  A land bank shall determine the amount and form of consideration necessary to convey, exchange, sell, transfer, lease as lessor, grant or mortgage interests in real property. (2)  Consideration may take the form of monetary payments and secured financial obligations, covenants and conditions related to the present and future use of the property, contractual commitments of the transferee and other forms of consideration as determined by the board to be in the best interest of the land bank. (d)   Policies and procedures.— (1)  A board shall determine and state in the land bank policies and procedures the general terms and conditions for consideration to be received by the land bank for the transfer of real property and interests in real property. (2)   Requirements which may be applicable to the disposition of real property and interests in real property by municipalities shall not be applicable to the disposition of real property and interests in real property by a land bank. (e)   Ranking of priorities.— (1)   A land bank jurisdiction may establish a hierarchical ranking of priorities for the use of real property conveyed by a land bank, including use for: (i)   Purely public spaces and places. (ii)  Affordable housing. (iii)   Retail, commercial and industrial activities. (iv)  Conservation areas. (2)   The priorities established may be for the entire land bank jurisdiction or may be set according to the needs of different neighborhoods, municipalities or other locations within the land bank jurisdiction, or according to the nature of the real property. (f)   Land use plans.—A land bank shall consider all duly adopted land use plans and make reasonable efforts to coordinate the disposition of land bank real property with such land use plans. (g)   Specific voting and approval requirements.— (1)   A land bank jurisdiction may, in its ordinance creating a land bank or, in the case of multiple land bank jurisdictions and municipalities creating a single land bank in the applicable intergovernmental cooperation agreement, require that a particular form of disposition of real property or a disposition of real property located within specified jurisdictions be subject to specified voting and approval requirements of the board. (2)   Except as restricted or constrained under paragraph (1), the board may delegate to officers and employees the authority to enter into and execute agreements, instruments of conveyance and other related documents pertaining to the conveyance of real property by the land bank.

Table of Contents

PART V

(2)  the Commonwealth;

gtb-parealestate22-all.indb 747

Index

747

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§ 2112

LAND BANKS

(3)  a municipality; (4)   the land bank jurisdiction which created the land bank; and (5)  private sources. (b)  Funding.—A land bank may receive and retain payments for services rendered, for rents and leasehold payments received, for consideration for disposition of real and personal property, for proceeds of insurance coverage for losses incurred, for income from investments and for an asset and activity lawfully permitted to a land bank under this chapter. (c)   Allocated real property taxes.— (1)  A taxing jurisdiction may authorize the remittance or dedication of a portion of real property taxes collected pursuant to the laws of this Commonwealth to a land bank on real property conveyed by a land bank. (2)   Allocation of property tax revenues in accordance with this subsection, if authorized by the taxing jurisdiction, shall commence with the first taxable year following the date of conveyance and continue for a period of up to five years and may not exceed a maximum of 50% of the aggregate property tax revenues generated by the property. (3)  Remittance or dedication of real property taxes shall include the real property taxes of a school district only if the school district enters into an agreement with the land bank for the remittance or dedication. § 2112.   Borrowing and issuance of bonds. (a)  Authority.— (1)   A land bank may issue a bond for any of its corporate purposes. (2)  The principal and interest of a bond shall be payable from the land bank’s general revenue. (3)   The bond may be secured by any of the following: (i)   A pledge of revenue. This subparagraph includes a grant or contribution from: (A)   The Federal Government or a Federal agency or instrumentality. (B)   The Commonwealth, a Commonwealth agency or an instrumentality of the Commonwealth. (ii)   A mortgage of property of the land bank. (b)  Nature.—The bond must meet the requirements of 13 Pa.C.S. § 3104 (relating to negotiable instrument). (c)  Tax exempt.—A bond and the income from the bond is exempt from taxation by: (1)   the Commonwealth; or (2)   a political subdivision. (d)  Procedure.— (1)  A bond must be authorized by resolution of the board and shall be a limited obligation of the land bank. (2)   The principal and interest, costs of issuance and other costs incidental to the bond shall be payable solely from the income and revenue derived from the sale, lease or other disposition of the assets of the land bank. The land bank may secure the bond by a mortgage or other security device covering all or part of the project from which the pledged revenues may be derived. (3)   A refunding bond issued under this section: (i)   shall be payable from: (A)   a source described in this chapter; or

748

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GOVERNMENT REGULATION

Ch. 48A

Part VIII Ch. 64–67 L/T Part IX Ch. 68–72 Condos, etc. Index

gtb-parealestate22-all.indb 749

Part VII Ch. 57–63 Litigation

749

Part VI Ch. 49–56 Taxation

§ 2114.   Dissolution of land bank. (a)  General rule.—A land bank may be dissolved as a public body corporate and politic upon compliance with all of the following: (1)   Sixty calendar days’ advance written notice of consideration of a resolution to request dissolution must:

Part V Ch. 41–48A Zoning, etc.

§ 2113.   Public records and public access. (a)  Public records.—A board shall keep minutes and a record of its proceedings. (b)  Public access.—A land bank is subject to: (1)   65 Pa.C.S. Ch. 7 (relating to open meetings); and (2)   the act of February 14, 2008 (P.L.6, No.3), known as the Right-to-Know Law.

Part IV Ch. 36–40 Insurance

(g)  Liability.— (1)  Neither the members of a land bank nor a person executing the bond shall be liable personally on the bonds by reason of the issuance of the bond. (2)   The bond or other obligation of a land bank related to a bond shall not be a debt of a municipality or of the Commonwealth. A statement to this effect shall appear on the face of the bond or obligation. (3)   On the bond or other obligation of a land bank related to a bond, all of the following apply: (i)   The Commonwealth has no liability. This subparagraph applies to the revenue and property of the Commonwealth. (ii)  A municipality has no liability. This subparagraph applies to the revenue and property of a municipality.

Part III Ch. 23–35 Mortgages

(f)  Sale.— (1)   A bond shall be issued, sold and delivered in accordance with the terms and provisions of the authorizing resolution. The board, to effectuate its best interest, may determine the manner of sale, public or private, and the price of the bond. (2)  The resolution issuing a bond must be published in a newspaper of general circulation within the jurisdiction in which the land bank is located.

Part II Ch. 15–22 Deeds

(e)   Powers of municipalities.—A municipality may elect to guarantee, insure or otherwise become primarily or secondarily obligated on the indebtedness of a land bank subject, however, to all other provisions of law of this Commonwealth applicable to municipal indebtedness.

Part I Ch. 1–14 Brokers

(B) the investment of the proceeds of the refunding bonds; and (ii)  shall not constitute an indebtedness or pledge of the general credit of a political subdivision within the meaning of a constitutional or statutory limitation of indebtedness and shall contain a recital to that effect. (4)   A bond must comply with the authorizing resolution as to: (i)  form; (ii)  denomination; (iii)  interest rate; (iv)  maturity; and (v)  execution. (5)   A bond may be subject to redemption at the option of and in the manner determined by the board in the authorizing resolution.

Table of Contents

PART V

12/22/21 10:45 AM

§ 2115

LAND BANKS

(i)   be given to the land bank jurisdiction which created the land bank; (ii)   be published in a local newspaper of general circulation; and (iii)   be sent by certified mail to the trustees of outstanding bonds of the land bank. (2)  A resolution requesting dissolution must be approved under section 2105(h)(3) (relating to board). (b)  Authority.—Upon receipt of a proper resolution described in subsection (a)(1), the land bank jurisdiction which created the land bank may dissolve the land bank by adoption of an ordinance subject to the approval of the mayor in a city or the county executive in a home rule county. If approved, the governing body of the land bank jurisdiction which created the land bank shall file a certified copy of the ordinance with the Department of State, and the Secretary of the Commonwealth shall cause the termination of the existence of the land bank to be noted on the record of incorporation. Upon such filing, the land bank shall cease to function. The Secretary of the Commonwealth shall also notify the department of the dissolution of the land bank. (c)   Transfer of assets.—Upon dissolution of the land bank, real property, personal property and other assets of the land bank shall become the assets of the municipality in which the property is located. The following shall apply: (1)  Personal property, including financial assets, of the land bank shall be divided among participating land bank jurisdictions in proportion to the population of each jurisdiction. (2)  The municipality in which real property is located shall approve the transfer of title to the municipality. (d)  Multiple jurisdictions.—If multiple land bank jurisdictions create a land bank under section 2104(c) (relating to creation and existence), the withdrawal of one or more land bank jurisdictions shall not require dissolution of the land bank unless: (1)  the intergovernmental cooperation agreement provides for dissolution in this event; and (2)   there is no land bank jurisdiction which desires to continue the existence of the land bank. § 2115.   Conflicts of interest. (a)   State Adverse Interest Act.—The acts and decisions of members of a board and of employees of a land bank shall be subject to the act of July 19, 1957 (P.L.1017, No.451), known as the State Adverse Interest Act. (b)  Ethical standards.—Board members and land bank employees are subject to 65 Pa.C.S. Ch. 11 (relating to ethics standards and financial disclosure). (c)   Supplemental rules and guidelines.—The board may adopt: (1)   supplemental rules addressing potential conflicts of interest; and (2)   ethical guidelines for members of the board and land bank employees. § 2116.   Construction, intent and scope. This chapter shall be construed liberally to effectuate the legislative intent and the purposes as complete and independent authorization for the implementation of this chapter, and all powers granted shall be broadly interpreted to effectuate the intent and purposes and not as a limitation of powers. § 2117.   Delinquent property tax enforcement. (a)   Power to discharge liens and claims.— (1)  Except as set forth in paragraph (2), a land bank may, by resolution of the board, discharge a lien or claim to its real property for tax owed to the members of the land bank.

750

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GOVERNMENT REGULATION

Ch. 48A

Part III Ch. 23–35 Mortgages Part IV Ch. 36–40 Insurance Part V Ch. 41–48A Zoning, etc. Part VI Ch. 49–56 Taxation Part VII Ch. 57–63 Litigation Part VIII Ch. 64–67 L/T Part IX Ch. 68–72 Condos, etc. Index

gtb-parealestate22-all.indb 751

Part II Ch. 15–22 Deeds

751

Part I Ch. 1–14 Brokers

(2)   For a land bank to discharge a lien or claim to its real property under paragraph (1) for tax owed to a school district, the governing body of the school district must approve the discharge. (3)   The land bank must file evidence of the extinguishment and dissolution of liens or claims with the county tax claim bureau, including copies of the resolution by the board, the intergovernmental agreement, receipt of payment and other necessary and appropriate documentation. This requirement must be satisfied no later than the earlier of: (i)   ten days prior to the conveyance of the property; or (ii)   within 30 days after the discharge. (b)   Remittance of payments.—To the extent that a land bank receives payments attributable to a lien or claim for real property taxes owed to a municipality or school district on property acquired by the land bank, the land bank shall remit the full amount of the payments to the municipality or school district. (c)   Procedure relating to Real Estate Tax Sale Law.—For a land bank located in a municipality which follows the act of July 7, 1947 (P.L.1368, No.542), known as the Real Estate Tax Sale Law, all of the following apply: (1)   Depending upon the time of filing, the following apply: (i)  For a tax claim filed under the Real Estate Tax Sale Law, the municipality: (A)   may direct the county tax claim bureau to assign the claim or lien to the land bank under terms mutually acceptable to the municipality and land bank; and (B)   shall otherwise confer upon the land bank the rights, privileges and remedies of an assignee under section 316 of the Real Estate Tax Sale Law. (ii)  For a tax claim to be filed under the Real Estate Tax Sale Law, a municipality which has complied with section 26 of the act of May 25, 1945 (P.L.1050, No.394), known as the Local Tax Collection Law, and section 306 of the Real Estate Tax Sale Law: (A)   may assign and transfer the claim to the land bank upon terms and conditions mutually acceptable to the municipality and the land bank; and (B)   shall otherwise confer upon the land bank the rights, privileges and remedies of an assignee under section 316 of the Real Estate Tax Sale Law. (iii)  For tax liens assigned to the land bank under subparagraph (i) or (ii), the land bank shall adopt policies providing for plans and agreements by which low-income, owner-occupant households may pay their delinquent taxes. Such plans and agreements shall take into account the household’s ability to pay and shall be designed to promote the continued occupancy by that household whenever feasible. (2)   All of the following apply to upset sales: (i)   The land bank and the plaintiff in the claim may enter into an agreement for the land bank to purchase the property at the minimum amount described in section 605 of the Real Estate Tax Sale Law in the event there is no bid tendered for a higher amount than the minimum amount. (ii)  If there is an agreement under subparagraph (i) and no one bids a higher price than the minimum amount described in section 605 of the Real Estate Tax Sale Law, the property shall be sold to the land bank upon payment by the land bank for the upset sale costs and all liens, claims and subordinate encumbrances shall be discharged by the sale. (3)   All of the following apply to judicial sales: (i)  Notwithstanding section 612 of the Real Estate Tax Sale Law, the form, substance and timing of the land bank’s payment of the sales price

Table of Contents

PART V

12/22/21 10:45 AM

§ 2117

LAND BANKS

may be according to the agreement as is mutually acceptable to the plaintiff and the land bank if all of the following apply: (A)   A judicial sale is ordered pursuant to a judgment on a tax claim. (B)   The purchaser of the property is the land bank. (C)   The sales price is an amount agreed to by the land bank and the plaintiff in the claim. (ii)  The obligation of the land bank to perform in accordance with the agreement under subparagraph (i)   shall be deemed to be in full satisfaction of the tax claim which was the basis for the judgment. (iii)   The land bank, as purchaser at the sale, shall have an absolute title to the property sold, free and discharged of tax and municipal claims, liens, mortgages, ground rents, charges and estates. (4)   The notice and return under sections 602 and 607(a) of the Real Estate Tax Sale Law must contain reference to a potential bid by the land bank. (5)   The deed to the land bank under sections 608 and 615 of the Real Estate Tax Sale Law shall be delivered and acknowledged and recorded within 30 days of the date of confirmation. (6)   All of the following apply to judicial sales for multiple tracts: (i)  In a petition for a judicial sale, the municipality or the land bank, if it is the holder of municipal tax liens, may combine in a single petition multiple tracts of real property if the petition and accompanying affidavits provide all of the following: (A)   Identification of each tract of real property. (B)  The identities of each party having an interest in a tract of real property. (C)  The amount of the tax liens then due and owing, together with associated interest, costs and fees. (D)  The nature of the notice of the proposed sale provided to the interested parties. (ii)   The court may authorize in a single final judgment that all or part of the real properties identified in the petition be sold free and clear of tax and municipal claims, mortgages, liens, charges and estates and ground rents. (d)  Procedure relating to Municipal Claim and Tax Lien Law.—For a land bank located in a municipality which follows the act of May 16, 1923 (P.L.207, No.153), referred to as the Municipal Claim and Tax Lien Law, all of the following apply: (1)   Regardless of the time of filing, the municipality: (i)   may assign and transfer a tax or municipal claim to the land bank upon terms and conditions mutually acceptable to the municipality and land bank; (ii)   shall otherwise confer upon the land bank the rights, privileges and remedies of an assignee as stated in section 33 of the Municipal Claim and Tax Lien Law; and (iii)   for tax liens assigned to the land bank under this section, the land bank shall adopt policies providing for plans and agreements by which lowincome, owner-occupant households may pay their delinquent taxes. Such plans and agreements shall take into account the household’s ability to pay and shall be designed to promote the continued occupancy by that household whenever feasible. (2)   All of the following apply to upset sales:

752

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GOVERNMENT REGULATION

Ch. 48A

(3)   All of the following apply to judicial sales:

(A)   A judicial sale is ordered pursuant to a judgment on a tax or municipal claim.

Part III Ch. 23–35 Mortgages

(i)   Notwithstanding section 31 of the Municipal Claim and Tax Lien Law, the form, substance and timing of the land bank’s payment of the sales price may be according to the agreement mutually acceptable to the plaintiff and the land bank if all of the following apply:

Part II Ch. 15–22 Deeds

(ii)  If there is an agreement under subparagraph (i) and no one bids a higher price than the minimum amount described in section 29 of the Municipal Claim and Tax Lien Law, the property shall be sold to the land bank upon payment by the land bank for the upset sale costs and liens, claims and subordinate encumbrances shall be discharged by the sale.

Part I Ch. 1–14 Brokers

(i)   The land bank and the plaintiff in the claim may enter into an agreement for the land bank to purchase the property at the minimum amount described in section 29 of the Municipal Claim and Tax Lien Law in the event there is no bid tendered for a higher amount than the minimum amount.

Table of Contents

PART V

(B)   The purchaser of the property is the land bank.

(ii)  The obligation of the land bank to perform in accordance with the agreement under subparagraph (i)   shall be deemed to be in full satisfaction of the municipal claim which was the basis for the judgment.

(iii)   The land bank, as purchaser at the sale, shall have an absolute title to the property sold, free and discharged of tax and municipal claims, liens, mortgages, ground rents, charges and estates.

(5)   All of the following apply to judicial sales for multiple tracts: (i)   In a petition for a judicial sale, a municipality or a land bank, if it is the holder of municipal tax liens, may combine in a petition multiple tracts of real property if the petition and accompanying affidavits provide all of the following:

gtb-parealestate22-all.indb 753

Index

753

Part IX Ch. 68–72 Condos, etc.

(iv)   The deed to the land bank shall be executed, acknowledged and delivered within 30 days of the sale.

Part VIII Ch. 64–67 L/T

(ii)   The bid of the land bank shall be paid as to its form, substance and timing according to an agreement that is mutually acceptable to the plaintiff and the land bank. The obligation of the land bank to perform in accordance with the agreement shall be deemed to be in full satisfaction of the tax or municipal claim which was the basis for the judgment.

Part VII Ch. 57–63 Litigation

(i)  The land bank may tender a bid at the sale in an amount equal to the total amount of all municipal claims and liens which were the basis for the judgment. Upon tender under this subparagraph, the property shall be deemed sold to the land bank regardless of bids by other parties.

Part VI Ch. 49–56 Taxation

(4)   Notwithstanding sections 31.1 and 31.2 of the Municipal Claim and Tax Lien Law and sections 4 and 6 of the act of March 1, 1956 (1955 P.L.1196, No.372), entitled “An act authorizing the sale of vacant land located in areas certified as conservation areas in counties of the first class, under a judgment obtained on a tax claim, by the sheriff of the county; providing for the discharge of all liens, mortgages, ground rents, estates and claims against the property by sale; and limiting the right of redemption,” all of the following apply:

Part V Ch. 41–48A Zoning, etc.

(iii)   The land bank, as purchaser at the sale, shall have an absolute title to the property sold, free and discharged of tax and municipal claims, liens, mortgages, ground rents, charges and estates.

Part IV Ch. 36–40 Insurance

(C)   The sales price is an amount agreed to by the land bank and the plaintiff.

12/22/21 10:45 AM

§ 2117

LAND BANKS

(A)   Identification of each tract of real property. (B)  The identities of each party having an interest in a tract of real property. (C)   The amount of the taxes then due and owing. (D)  The nature of the notice of the proposed sale provided to the interested parties. (ii)   The court may authorize in a single final judgment that all or part of the real properties identified in the petition be sold free and clear of tax and municipal claims, mortgages, liens, ground rents, charges and estates. (e)   Procedure relating to Second Class City Treasurer’s Sale and Collection Act.—For a land bank located in a municipality which follows the act of October 11, 1984 (P.L.876, No.171), known as the Second Class City Treasurer’s Sale and Collection Act, all of the following apply: (1)   Regardless of the time of filing, a municipality: (i)   may assign and transfer a tax or municipal claim to the land bank under the Second Class City Treasurer’s Sale and Collection Act upon terms and conditions mutually acceptable to the municipality and the land bank; and (ii)   shall otherwise confer upon the land bank the rights, privileges and remedies of the municipality under the Second Class City Treasurer’s Sale and Collection Act. (iii)   For tax liens assigned to the land bank under this section, the land bank shall adopt policies providing for plans and agreements by which lowincome, owner-occupant households may pay their delinquent taxes. Such plans and agreements shall take into account the household’s ability to pay and shall be designed to promote the continued occupancy by that household whenever feasible. (2)   All of the following apply to upset sales: (i)   The land bank and the plaintiff in the claim may enter into an agreement for the land bank to purchase the property for the minimum amount of the upset sale price described in section 301 of the Second Class City Treasurer’s Sale and Collection Act in the event there is no bid tendered for a higher amount than the minimum amount. (ii)   The land bank may tender a bid for the mutually agreed upset sale price. (iii)  Notwithstanding section 301 of the Second Class City Treasurer’s Sale and Collection Act, the bid of the land bank shall be paid as to its form, substance and timing according to an agreement between the municipality and land bank. The obligation of the land bank to perform in accordance with the agreement shall be deemed to be in full satisfaction of the tax or claim which was the basis for the sale. (3)   The notice and advertisement under sections 203 and 204 of the Second Class City Treasurer’s Sale and Collection Act must contain reference to a potential bid by the land bank. (4)  Subject to redemption under section 304 of the Second Class City Treasurer’s Sale and Collection Act and confirmation under section 305 of the Second Class City Treasurer’s Sale and Collection Act, the land bank, as purchaser at the sale, shall have an absolute title to the property sold, free and discharged of tax and municipal claims, liens, mortgages, ground rents, charges and estates. (5)   The deed to the land bank under section 307 of the Second Class City Treasurer’s Sale and Collection Act shall be delivered, acknowledged and recorded within 30 days of the date of confirmation.

754

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GOVERNMENT REGULATION

Ch. 48A

Part IV Ch. 36–40 Insurance Part V Ch. 41–48A Zoning, etc. Part VI Ch. 49–56 Taxation Part VII Ch. 57–63 Litigation Part VIII Ch. 64–67 L/T Part IX Ch. 68–72 Condos, etc. Index

gtb-parealestate22-all.indb 755

Part III Ch. 23–35 Mortgages

755

Part II Ch. 15–22 Deeds

(b)  Procedural requirements.— (1)   Prior to the filing of an action to quiet title the land bank must conduct an examination of title to determine the identity of any person possessing a claim or interest in or to the real property. (2)  Service of the complaint to quiet title shall be provided to interested parties as follows: (i)   By first class mail to the identity and address reasonably ascertainable by an inspection of public records. (ii)  In the case of occupied real property, by first class mail, addressed to “Occupant.” (iii)   By posting a copy of the notice on the real property. (iv)  By publication. (v)   As ordered by the court. (3)   As part of the complaint to quiet title, the land bank must file an affidavit identifying: (i)   persons discovered under paragraph (1); and (ii)   the form of service under paragraph (2). (c)  Hearing.— (1)  The court shall schedule a hearing on the complaint within 90 days following filing of the complaint and as to all matters upon which an answer was not filed by an interested party. (2)  The court shall issue its final judgment within 120 days of the filing of the complaint.

Part I Ch. 1–14 Brokers

(e.1)  Land bank.—Notwithstanding subsections (d) and (e), in counties of the second class containing a city of the second class, a land bank may not engage in any of the following absent an agreement with a county, city, borough, incorporated town, township, school district or body politic and corporate created as a municipal authority pursuant to law whose claims comprise the upset sales price: (1)   Purchase property for less than the upset sales price described in section 29 of the Municipal Claim and Tax Lien Law or section 301 of the Second Class City Treasurer’s Sale and Collection Act. (2)  Alter the form, substance or timing of the payment of the sales price by the land bank. (f)  Involuntary transfers.—A land bank which acquires real property under this section shall be deemed to have acquired the real property as an involuntary transfer within the meaning of section 701(b)(1)(vi)(B) of the act of October 18, 1988 (P.L.756, No.108), known as the Hazardous Sites Cleanup Act. (g)  Expiration.—This section shall expire upon publication of the notice under section 2120 (relating to determination on procedural revision). § 2118.   Expedited quiet title proceedings. (a)  Authorization.— (1)   A land bank may file an action to quiet title to real property in which the land bank has an interest. (2)   A land bank may join in a single complaint to quiet title to one or more parcels of real property. (3)  For purposes of an action under this section, the land bank shall be deemed to be the holder of sufficient legal and equitable interests and possessory rights so as to qualify the land bank as an adequate complainant in the action.

Table of Contents

PART V

12/22/21 10:45 AM

§ 2119

LAND BANKS

§ 2119.   Annual audit and report. The following shall apply: (1)   The land bank shall annually, within 120 days after the end of the fiscal year, submit an audit of income and expenditures, together with a report of its activities for the preceding year, to the department. (2)   A duplicate of the audit and the report shall be filed with the governing body of: (i)   the land bank jurisdiction which created the land bank; and (ii)   each political subdivision which opted to participate in the land bank pursuant to an intergovernmental agreement. § 2120.   Determination on procedural revision. If the department determines that comprehensive reform legislation on property-tax foreclosure has been enacted revising procedure under the statutory provisions referred to in section 2117 (relating to delinquent property tax enforcement), the department shall transmit notice of the determination to the Legislative Reference Bureau for publication in the Pennsylvania Bulletin.

756

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Table of Contents

PART VI

Chapter Chapter Chapter Chapter Chapter Chapter Chapter Chapter

49.  Transfer Tax Authorization 50.  General County Assessment Law 51.  Assessors Certification Act 52.  Municipal Claims and Tax Liens 53.  Real Estate Tax Sale Law 54.  Property Tax Rebates and Abatements 55.  Revitalization Exemptions from Taxation 56.  Internal Revenue Code

Part III Ch. 23–35 Mortgages

CHAPTER 49

Part II Ch. 15–22 Deeds



Part I Ch. 1–14 Brokers

REAL ESTATE TAXATION

TRANSFER TAX AUTHORIZATION



Selected Sections from

49.4   Local Tax Enabling Act    53 P.S. §§ 6924.101; 6924.301.1; 6924.307; 6924.311; 6924.320

CHAPTER 49.1 STATE REALTY TRANSFER TAX

Sec.

gtb-parealestate22-all.indb 757

Index

757

Part IX Ch. 68–72 Condos, etc.

§ § § § § § § § § §

1101-C. Definitions 1102-C. Imposition of tax 1102-C.1. Repealed 1102-C.2. Exempt parties 1102-C.3. Excluded transactions 1102-C.4. Documents relating to associations or corporations and members, partners, stockholders or shareholders thereof 1102-C.5. Acquired company 1102-C.6. Transfer of tax 1103-C. Credits against tax 1103-C.1. Extension of lease 1104-C. Proceeds of judicial sale 1105-C. Documentary stamps 1106-C. Stamps, commissions, payments and transfers 1107-C. Enforcement; rules and regulations 1108-C. Failure to affix stamps 1109-C. Statement of value; penalty

Part VIII Ch. 64–67 L/T

§ § § § § §

Part VII Ch. 57–63 Litigation

72 P.S. § 8101-C to 72 P.S. § 8114-C

Part VI Ch. 49–56 Taxation



Part V Ch. 41–48A Zoning, etc.

49.1   State Realty Transfer Tax    72 P.S. § 8101-C to 72 P.S. § 8114-C 49.2   Local Real Estate Transfer Tax    72 P.S. § 8101-D to 72 P.S. § 8114-D 49.3  Tax Authorization for Cities of the First Class    72 P.S. § 4750.1301

Part IV Ch. 36–40 Insurance

Chapter

12/22/21 10:45 AM

§ 1101-C § § § § § §

TRANSFER TAX AUTHORIZATION

1109-C.1. Civil penalties 1110-C. Unlawful acts; penalty 1111-C. Assessment and notice of tax; review 1112-C. Lien 1113-C. Refunds 1114-C. Sharing information

§ 1101-C.  Definitions The following words when used in this article shall have the meanings ascribed to them in this section: “Agricultural production.” As defined in section 3 of the act of June 30, 1981 (P.L.128, No.43), known as the “Agricultural Area Security Law.” “Association.” A general partnership, limited partnership, limited liability partnership or any other form of unincorporated enterprise, owned or conducted by two or more persons other than a private trust or decedent’s estate. “Conservancy.” A corporation or association that possesses a tax-exempt status pursuant to section 501(c)(3) of the Internal Revenue Code of 1986 (Public Law 99-514, 26 U.S.C. § 501(c)(3)) and which has as its primary purpose preservation of land for historic, recreational, scenic, agricultural or open-space opportunities. “Corporation.” A corporation, joint-stock association, business trust or banking institution which is organized under the laws of this Commonwealth, the United States, or any other state, territory, or foreign country, or dependency. “Department.” The Department of Revenue of this Commonwealth. “Document.” Any deed, instrument or writing which conveys, transfers, demises, vests, confirms or evidences any transfer or demise of title to real estate in this Commonwealth, but does not include wills, mortgages, deeds of trust or other instruments of like character given as security for a debt and deeds of release thereof to the debtor, land contracts whereby the legal title does not pass to the grantee until the total consideration specified in the contract has been paid or any cancellation thereof unless the consideration is payable over a period of time exceeding thirty years or instruments which solely grant, vest or confirm a public utility easement. “Document” shall also include a declaration of acquisition required to be presented for recording under section 1102-C.5 of this article. “Family farm business.” A corporation or association of which at least seventy-five per cent of its assets are devoted to the business of agriculture and at least seventy-five per cent of each class of stock of the corporation or the interests in the association is continuously owned by members of the same family. The business of agriculture shall include the leasing to members of the same family or the leasing to a corporation or association owned by members of the same family of property which is directly and principally used for agricultural purposes. The business of agriculture shall not be deemed to include: (1)  recreational activities such as, but not limited to, hunting, fishing, camping, skiing, show competition or racing; (2)  the raising, breeding or training of game animals or game birds, fish, cats, dogs or pets or animals intended for use in sporting or recreational activities; (3)  fur farming;

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Ch. 49.1

Table of Contents

PART VI

(4)  stockyard and slaughterhouse operations; or

“Qualified beginner farmer.” A person that:

(2)  Has not received Federal gross income from agricultural production for more than the ten most recent taxable years.

(4)  Has obtained written certification from the Department of Agriculture confirming qualified beginner farmer status. “Real estate.”

(3)  A tenant-stockholder’s interest in a cooperative housing corporation, trust or association under a proprietary lease or occupancy agreement. “Real estate company.” A corporation or association which meets any of the following:

gtb-parealestate22-all.indb 759

Index

759

Part IX Ch. 68–72 Condos, etc.

(2)  A condominium unit.

Part VIII Ch. 64–67 L/T

(1)  Any lands, tenements or hereditaments, including, without limitation, buildings, structures, fixtures, mines, minerals, oil, gas, quarries, spaces with or without upper or lower boundaries, trees and other improvements, immovables or interests which by custom, usage or law pass with a conveyance of land, but excluding permanently attached machinery and equipment in an industrial plant.

Part VII Ch. 57–63 Litigation

(3)  Intends to engage in agricultural production within the borders of this Commonwealth and to provide the majority of the labor and management involved in that agricultural production.

Part VI Ch. 49–56 Taxation

(1)  Has demonstrated experience in the agriculture industry or related field or has transferable skills as determined by the Department of Agriculture.

Part V Ch. 41–48A Zoning, etc.

“Person.” Every natural person, association, or corporation. Whenever used in any clause prescribing and imposing a fine or imprisonment, or both, the term “person” as applied to associations, shall include the responsible members or general partners thereof, and as applied to corporations, the officers thereof.

Part IV Ch. 36–40 Insurance

“Ordinary trust.” Any trust, other than a business trust or a living trust, which takes effect during the lifetime of the settlor and for which the trustees of the trust take title to property primarily for the purpose of protecting, managing or conserving it until distribution to the named beneficiaries of the trust. An ordinary trust does not include a trust that has an objective to carry on business and divide gains, nor does it either expressly or impliedly have any of the following features: the treatment of beneficiaries as associates, the treatment of the interests in the trust as personal property, the free transferability of beneficial interests in the trust, centralized management by the trustee or the beneficiaries, or continuity of life.

Part III Ch. 23–35 Mortgages

“Members of the same family.” Any individual, such individual’s brothers and sisters, the brothers and sisters of such individual’s parents and grandparents, the ancestors and lineal descendents of any of the foregoing, a spouse of any of the foregoing and the estate of any of the foregoing. Individuals related by the half blood or legal adoption shall be treated as if they were related by the whole blood.

Part II Ch. 15–22 Deeds

“Living trust.” Any trust, other than a business trust, intended as a will substitute by the settlor which becomes effective during the lifetime of the settlor, but from which trust distributions cannot be made to any beneficiaries other than the settlor prior to the death of the settlor.

Part I Ch. 1–14 Brokers

(5)  manufacturing or processing operations of any kind.

12/22/21 10:45 AM

§ 1101-C

TRANSFER TAX AUTHORIZATION

(1)  Is primarily engaged in the business of holding, selling or leasing real estate ninety per cent or more of the ownership interest in which is held by thirty-five or fewer persons and which: (i)  derives sixty per cent or more of its annual gross receipts from the ownership or disposition of real estate; or (ii)  holds real estate, the value of which comprises ninety per cent or more of the value of its entire tangible asset holdings exclusive of tangible assets which are freely transferable and actively traded on an established market. (2)  Ninety per cent or more of the ownership interest in the corporation or association is held by thirty-five or fewer persons, and the corporation or association owns, as ninety per cent or more of the fair market value of its assets, a direct or indirect interest in a real estate company. An indirect ownership interest is an interest in a corporation or association, ninety per cent or more of the ownership interest which is held by thirty-five or fewer persons whose purpose is the ownership of a real estate company. “Title to real estate.” (1)  Any interest in real estate which endures for a period of time, the termination of which is not fixed or ascertained by a specific number of years, including, without limitation, an estate in fee simple, life estate or perpetual leasehold; or (2)  Any interest in real estate enduring for a fixed period of years but which, either by reason of the length of the term or the grant of a right to extend the term by renewal or otherwise, consists of a group of rights approximating those of an estate in fee simple, life estate or perpetual leasehold, including, without limitation, a leasehold interest or possessory interest under a lease or occupancy agreement for a term of thirty years or more or a leasehold interest or possessory interest in real estate in which the lessee has equity. “Transaction.” The making, executing, delivering, accepting, or presenting for recording of a document. “Value.” (1)  In the case of any bona fide sale of real estate at arm’s length for actual monetary worth, the amount of the actual consideration therefor, paid or to be paid, including liens or other encumbrances thereon existing before the transfer and not removed thereby, whether or not the underlying indebtedness is assumed, and ground rents, or a commensurate part thereof where such liens or other encumbrances and ground rents also encumber or are charged against other real estate: Provided, that where such documents shall set forth a nominal consideration, the “value” thereof shall be determined from the price set forth in or actual consideration for the contract of sale; (2)  In the case of a gift, sale by execution upon a judgment or upon the foreclosure of a mortgage by a judicial officer, transactions without consideration or for consideration less than the actual monetary worth of the real estate, a taxable lease, an occupancy agreement, a leasehold or possessory interest, any exchange of properties, or the real estate of an acquired company, the actual monetary worth of the real estate determined by adjusting the assessed value of the real estate for local real estate tax purposes for the common level ratio of assessed values to market values of the taxing district as established by the State Tax Equalization Board, or a commensurate part of the assessment where the assessment includes other real estate;

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Ch. 49.1

“Volunteer emergency medical services agency.” The term shall have the same meaning as given to the term “volunteer ambulance service” in 35 PA.C.S. § 7802 (relating to definitions).

“Volunteer rescue company.” as defined in 35 PA.C.S. § 7802 (relating to definitions).

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761

Part IX Ch. 68–72 Condos, etc.

(1)  A transfer to the Commonwealth or to any of its instrumentalities, agencies or political subdivisions by gift, dedication or deed in lieu of condemnation or deed of confirmation in connection with condemnation proceedings, or a reconveyance by the condemning body of the property condemned to the owner of record at the time of condemnation, which reconveyance may include property line adjustments provided said reconveyance is made within one year from the date of condemnation.

Part VIII Ch. 64–67 L/T

§ 1102-C.3.   Excluded transactions The tax imposed by section 1102-C shall not be imposed upon:

Part VII Ch. 57–63 Litigation

§ 1102-C.2.   Exempt parties The United States, the Commonwealth or any of their instrumentalities, agencies or political subdivisions, or veterans’ service organizations shall be exempt from payment of the tax imposed by this article. The exemption under this section shall not, however, relieve any other party to a transaction from liability for the tax.

Part VI Ch. 49–56 Taxation

§ 1102-C.1.   Repealed. 1986, July 2, P.L. 318, No. 77, § 10, imd. Effective

Part V Ch. 41–48A Zoning, etc.

§ 1102-C.   Imposition of tax Every person who makes, executes, delivers, accepts or presents for recording any document or in whose behalf any document is made, executed, delivered, accepted or presented for recording, shall be subject to pay for and in respect to the transaction or any part thereof, or for or in respect of the vellum parchment or paper upon which such document is written or printed, a State tax at the rate of one per cent of the value of the real estate within this Commonwealth represented by such document, which State tax shall be payable at the earlier of the time the document is presented for recording or within thirty days of acceptance of such document or within thirty days of becoming an acquired company.

Part IV Ch. 36–40 Insurance

“Volunteer fire company.” As defined in 35 PA.C.S. § 7802 (relating to definitions).

Part III Ch. 23–35 Mortgages

“Veterans’ service organization.” A not-for-profit organization that has been chartered by the Congress of the United States to service veterans or is a member of the Pennsylvania State Veterans’ Commission under 51 Pa.C.S. Ch. 17 (relating to State Veterans’ Commission and Deputy Adjutant General for Veterans’ Affairs).

Part II Ch. 15–22 Deeds

(4)  The actual consideration for or actual monetary worth of any executory agreement for the construction of buildings, structures or other permanent improvements to real estate between the grantor and other persons existing before the transfer and not removed thereby or between the grantor, the agent or principal of the grantor or a related corporation, association or partnership and the grantee existing before or effective with the transfer.

Part I Ch. 1–14 Brokers

(3)  In the case of an easement or other interest in real estate the value of which is not determinable under clause (1) or (2), the actual monetary worth of such interest; or

Table of Contents

PART VI

12/22/21 10:45 AM

§ 1102-C.3 TRANSFER TAX AUTHORIZATION (2)  A document which the Commonwealth is prohibited from taxing under the Constitution or statutes of the United States. (3)  A conveyance to a municipality, township, school district or county pursuant to acquisition by the municipality, township, school district or county of a tax delinquent property at sheriff sale or tax claim bureau sale. (4)  A transfer for no or nominal actual consideration which corrects or confirms a transfer previously recorded, but which does not extend or limit existing record legal title or interest. (5)  A transfer of division in kind for no or nominal actual consideration of property passed by testate or intestate succession and held by cotenants; however, if any of the parties take shares greater in value than their undivided interest, tax is due on the excess. (6)  A transfer between husband and wife, between persons who were previously husband and wife who have since been divorced, provided the property or interest therein subject to such transfer was acquired by the husband and wife or husband or wife prior to the granting of the final decree in divorce, between parent and child or the spouse of such child, between a stepparent and a stepchild or the spouse of the stepchild, between brother or sister or spouse of a brother or sister and brother or sister or the spouse of a brother or sister and between a grandparent and grandchild or the spouse of such grandchild, except that a subsequent transfer by the grantee within one year shall be subject to tax as if the grantor were making such transfer. (7)  A transfer for no or nominal actual consideration of property passing by testate or intestate succession from a personal representative of a decedent to the decedent’s devisee or heir. (8)  A transfer for no or nominal actual consideration to a trustee of an ordinary trust where the transfer of the same property would be exempt if the transfer was made directly from the grantor to all of the possible beneficiaries that are entitled to receive the property or proceeds from the sale of the property under the trust, whether or not such beneficiaries are contingent or specifically named. A trust clause which identifies the contingent beneficiaries by reference to the heirs of the trust settlor as determined by the laws of the intestate succession shall not disqualify a transfer from the exclusion provided by this clause. No such exemption shall be granted unless the recorder of deeds is presented with a copy of the trust instrument that clearly identifies the grantor and all possible beneficiaries. (8.1)  A transfer for no or nominal actual consideration to a trustee of a living trust from the settlor of the living trust. No such exemption shall be granted unless the recorder of deeds is presented with a copy of the living trust instrument. (9)  A transfer for no or nominal actual consideration from a trustee of an ordinary trust to a specifically named beneficiary that is entitled to receive the property under the recorded trust instrument or to a contingent beneficiary where the transfer of the same property would be exempt if the transfer was made by the grantor of the property into the trust to that beneficiary. However, any transfer of real estate from a living trust during the settlor’s lifetime shall be considered for the purposes of this article as if such transfer were made directly from the settlor to the grantee. (9.1)  A transfer for no or nominal actual consideration from a trustee of a living trust after the death of the settlor of the trust or from a trustee of a

762

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Ch. 49.1

(9.2)  A transfer for no or nominal actual consideration from the trustee of a living trust to the settlor of the living trust if such property was originally conveyed to the trustee by the settlor.

(11)  A transfer: (i)  for no or nominal actual consideration between principal and agent or straw party; or

(12)  A transfer made pursuant to the statutory merger or consolidation of a corporation or statutory division of a nonprofit corporation, except where the department reasonably determines that the primary intent for such merger, consolidation or division is avoidance of the tax imposed by this article.

(15)  A transfer from a nonprofit industrial development agency or authority to a grantee purchasing directly from it, but only if:

(17)  Any transfer between religious organizations or other bodies or persons holding title for a religious organization if such real estate is not being or has not been used by such transferor for commercial purposes. (18)  Any of the following:

gtb-parealestate22-all.indb 763

Index

763

Part IX Ch. 68–72 Condos, etc.

(16)  A transfer by a mortgagor to the holder of a bona fide mortgage in default in lieu of a foreclosure or a transfer pursuant to a judicial sale in which the successful bidder is the bona fide holder of a mortgage, unless the holder assigns the bid to another person.

Part VIII Ch. 64–67 L/T

(ii)  the agency or authority has the full ownership interest in the real estate transferred.

Part VII Ch. 57–63 Litigation

(i)  the grantee shall directly use such real estate for the primary purpose of manufacturing, fabricating, compounding, processing, publishing, research and development, transportation, energy conversion, energy production, pollution control, warehousing or agriculture; and

Part VI Ch. 49–56 Taxation

(14)  A transfer from a nonprofit industrial development agency or authority to a grantee of property conveyed by the grantee to that agency or authority as security for a debt of the grantee or a transfer to a nonprofit industrial development agency or authority.

Part V Ch. 41–48A Zoning, etc.

(13)  A transfer from a corporation or association of real estate held of record in the name of the corporation or association where the grantee owns stock of the corporation or an interest in the association in the same proportion as his interest in or ownership of the real estate being conveyed and where the stock of the corporation or the interest in the association has been held by the grantee for more than two years.

Part IV Ch. 36–40 Insurance

Where the document by which title is acquired by a grantee or statement of value fails to set forth that the property was acquired by the grantee from, or for the benefit of, his principal, there is a rebuttable presumption that the property is the property of the grantee in his individual capacity if the grantee claims an exemption from taxation under this clause.

Part III Ch. 23–35 Mortgages

(ii)  from or to an agent or straw party where, if the agent or straw party were his principal, no tax would be imposed under this article.

Part II Ch. 15–22 Deeds

(10)  A transfer for no or nominal actual consideration from trustee to successor trustee.

Part I Ch. 1–14 Brokers

trust created pursuant to the will of a decedent to a beneficiary to whom the property is devised or bequeathed.

Table of Contents

PART VI

12/22/21 10:45 AM

§ 1102-C.3 TRANSFER TAX AUTHORIZATION (i)  A transfer to a conservancy. (ii)  A transfer from a conservancy to the United States, the Commonwealth or to any of their instrumentalities, agencies or political subdivisions. (iii)  A transfer from a conservancy where the real estate is encumbered by a perpetual agricultural conservation easement as defined by the act of June 30, 1981 (P.L.128, No.43), known as the “Agricultural Area Security Law,” and such conservancy has owned the real estate for at least two years immediately prior to the transfer. (iv)  A transfer of an agricultural conservation easement to or from the Commonwealth, a county, a local government unit or a conservancy under authority of the “Agricultural Area Security Law.” (v)  A transfer of a conservation easement or preservation easement under the act of June 22, 2001 (P.L.390, No.29), known as the “Conservation and Preservation Easements Act.” (vi)  A transfer of a perpetual historic preservation easement, a perpetual public trail easement or other perpetual public recreational use easement, a perpetual scenic preservation easement or a perpetual open-space preservation easement to or from the United States, the Commonwealth, a county, a local government unit or a conservancy. (vii)  A transfer of real estate that is subject to an agricultural conservation easement established under authority of the act of June 30, 1981 (P.L.128, No.43), known as the “Agricultural Area Security Law,” to a qualified beginner farmer. (19)  A transfer of real estate devoted to the business of agriculture to a family farm business by: (i)  a member of the same family which directly owns at least seventyfive per cent of each class of the stock thereof or the interests in that family farm business; or (ii)  a family farm business, which family directly owns at least seventyfive per cent of each class of stock thereof or the interests in that family farm business. (19.1)  Deleted by 2012, July 2, P.L. 751, No. 85, § 10, imd. effective. (20)  A transfer between members of the same family of an ownership interest in a real estate company or family farm business that owns real estate. (21)  A transaction wherein the tax due is one dollar ($ 1) or less. (22)  Leases for the production or extraction of coal, oil, natural gas or minerals and assignments thereof. (23)  A transfer of real estate to or by a volunteer EMS company, volunteer fire company or volunteer rescue company as those terms are defined in 35 Pa.C.S. § 7802 (relating to definitions). (24)  A transfer of real estate to or by a land bank. For the purposes of this clause, the term “land bank” shall have the same meaning as given to it in 68 Pa.C.S. § 2103 (relating to definitions). In order to exercise any exclusion provided in this section, the true, full and complete value of the transfer shall be shown on the statement of value. For leases of coal, oil, natural gas or minerals, the statement of value may be

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Ch. 49.1

§ 1102-C.5.   Acquired company (a)  A real estate company is an acquired company upon a change in the ownership interest in the company, however effected, if the change:

(2)  of itself or together with prior changes has the effect of transferring, directly or indirectly, ninety per cent or more of the total ownership interest in the company within a period of three years.

(c)  Within thirty days after becoming an acquired company, the company shall present a declaration of acquisition with the recorder of each county in which it holds real estate for the affixation of documentary stamps and recording. Such declaration shall set forth the value of real estate holdings of the acquired company in such county.

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Index

765

Part IX Ch. 68–72 Condos, etc.

(b.3)  The conveyance of assets held by one family farm business to another family farm business shall not be considered a transfer of assets under this article if the same individuals hold at least fifty per cent of the ownership interest in each family farm business.

Part VIII Ch. 64–67 L/T

(b.2)  A family farm business is an acquired company when, because of voluntary or involuntary dissolution, it ceases to be a family farm business or when, because of the issuance or transfer of stock in the corporation or transfer of interests in the association or because of acquisition or transfer of assets that are devoted to the business of agriculture, it fails to meet the minimum requirements of a family farm business under this article.

Part VII Ch. 57–63 Litigation

(b), (b.1)   Deleted by 2012, July 2, P.L. 751, No. 85, § 12, imd. effective.

Part VI Ch. 49–56 Taxation

(3)   For the purposes of paragraph (2), a transfer occurs within a period of three years of another transfer or transfers if, during the period, the transferring party provides the transferee a legally binding commitment or option, enforceable at a future date, to execute the transfer.

Part V Ch. 41–48A Zoning, etc.

(1)  does not affect the continuity of the company; and

Part IV Ch. 36–40 Insurance

Except as otherwise provided in sections 1102-C.3 and 1102-C.5, documents which make, confirm or evidence any transfer or demise of title to real estate between associations or corporations and the members, partners, shareholders or stockholders thereof are fully taxable. For the purposes of this article, corporations and associations are entities separate from their members, partners, stockholders or shareholders.

Part III Ch. 23–35 Mortgages

§ 1102-C.4.   Documents relating to associations or corporations and members, partners, stockholders or shareholders thereof

Part II Ch. 15–22 Deeds

(25)  Beginning on or after December 31, 2015, a transfer of real estate by a housing authority created under the act of May 28, 1937 (P.L.955, No.265), referred to as the Housing Authorities Law, to a nonprofit organization which is utilizing the real estate for the purpose of Rental Assistance Demonstration administered by the United States Department of Housing and Urban Development under the Consolidated and Further Continuing Appropriations Act, 2012 (Public Law 112-55, 125 Stat. 552).

Part I Ch. 1–14 Brokers

limited to an explanation of the reason such document is not subject to tax under this article.

Table of Contents

PART VI

12/22/21 10:45 AM

§ 1102-C.6 TRANSFER TAX AUTHORIZATION § 1102-C.6.   Transfer of tax (a)  Subject to subsection (b), beginning July 31, 2019, and each July 31 thereafter, the State Treasurer shall transfer from the General Fund to the Housing Affordability and Rehabilitation Enhancement Fund under Article IV-D of the act of December 3, 1959 (P.L.1688, No.621), known as the “Housing Finance Agency Law,” an amount equal to forty per cent of the difference between: (1)  the total amount of the tax imposed under section 1102-C and collected by the Commonwealth for the prior fiscal year; and (2)  the total dollar amount of such tax estimated for the fiscal year beginning July 1, 2014, and as contained in the final estimate signed by the Governor for that fiscal year as required by section 618 of the act of April 9, 1929 (P.L.177, No.175), known as “The Administrative Code of 1929.” (b)  The amount transferred under subsection (a) may not exceed forty million dollars ($40,000,000). (c)  Nothing in this section shall be construed to reduce or prohibit increased funding for the Housing Affordability and Rehabilitation Enhancement Fund or the Keystone Recreation, Park and Conservation Fund as provided in the “Housing Finance Agency Law” or other law. § 1103-C.   Credits against tax (a)  Where there is a transfer of a residential property by a licensed real estate broker which property was transferred to him within the preceding year as consideration for the purchase of other residential property, a credit for the amount of the tax paid at the time of the transfer to him shall be given to him toward the amount of the tax due upon the transfer. (b)  Where there is a transfer by a builder of residential property which was transferred to the builder within the preceding year as consideration for the purchase of new, previously unoccupied residential property, a credit for the amount of the tax paid at the time of the transfer to the builder shall be given to the builder toward the amount of the tax due upon the transfer. (c)   Where there is a transfer of real estate which is demised by the grantor, a credit for the amount of tax paid at the time of the demise shall be given the grantor toward the tax due upon the transfer. (d)  Where there is a conveyance by deed of real estate which was previously sold under a land contract by the grantor, a credit for the amount of tax paid at the time of the sale shall be given the grantor toward the tax due upon the deed. (e)  If the tax due upon the transfer is greater than the credit given under this section, the difference shall be paid. If the credit allowed is greater than the amount of tax due, no refund or carryover credit shall be allowed. § 1103-C.1.   Extension of lease In determining the term of a lease, it shall be presumed that a right or option to renew or extend a lease will be exercised if the rental charge to the lessee is fixed or if a method for calculating the rental charge is established. § 1104-C.   Proceeds of judicial sale The tax herein imposed shall be fully paid, and have priority out of the proceeds of any judicial sale of real estate before any other obligation, claim, lien, judgment, estate or costs of the sale and of the writ upon which the sale is made, and the sheriff, or other officer, conducting said sale, shall pay the tax herein imposed out of the first moneys paid to him in connection therewith. If the proceeds of

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Ch. 49.1

(c)  All moneys paid in accordance with this article shall be credited to the General Fund.

Part V Ch. 41–48A Zoning, etc.

(d)  At the end of each month, the State Treasurer shall transfer from the General Fund to the Keystone Recreation, Park and Conservation Fund an amount equal to the tax credited to the General Fund under subsection (c) for the previous month multiplied by the applicable transfer factor. The applicable transfer factor for each month shall be as follows:

Part VI Ch. 49–56 Taxation

(b)  The department shall allow each county a commission equal to one per cent of the face value of the stamps sold or two hundred fifty dollars ($ 250) whichever is greater. The recorder of deeds shall pay the commission herein allowed to the general fund of the county. The department shall pay the premium or premiums on any bond or bonds required by law to be procured by recorder of deeds for the performance of their duties under this article.

Part IV Ch. 36–40 Insurance

§ 1106-C.   Stamps, commissions, payments and transfers (a)  The department shall prescribe, prepare and furnish stamps to each recorder of deeds, of such denominations and quantities as may be necessary, for the payment of the tax imposed and assessed by this article.

Part III Ch. 23–35 Mortgages

(b)  The use of documentary license meter impressions or similar indicia of payment in lieu of stamps as required by this article may be permitted in the discretion of the department.

Part II Ch. 15–22 Deeds

§ 1105-C.   Documentary stamps (a)  The payment of the tax imposed by this article shall be evidenced by the affixing of a documentary stamp or stamps to every document by the person making, executing, delivering or presenting for recording such document. Such stamps shall be affixed in such manner that their removal will require the continued application of steam or water, and the person using or affixing such stamps shall write or stamp or cause to be written or stamped thereon the initials of his name and the date upon which such stamps are affixed or used so that such stamps may not again be used: Provided, That the department may prescribe such other method of cancellation as it may deem expedient.

Part I Ch. 1–14 Brokers

the sale are insufficient to pay the entire tax herein imposed, the purchaser shall be liable for the remaining tax.

Table of Contents

PART VI

Transfer Factor

July 1994 through December 2001

Part VII Ch. 57–63 Litigation

Month

0.15

January 2002 through June 2002

0.10

July 2002 through June 2003

0.075 0.15

July 2006 through June 2007

0.021

July 2007 and each month thereafter

0.15

Part VIII Ch. 64–67 L/T

July 2003 through June 2006

(1)  The method and means to be used in affixing or cancelling of stamps in substitution for or in addition to the method and means provided in this article.

gtb-parealestate22-all.indb 767

Index

767

Part IX Ch. 68–72 Condos, etc.

§ 1107-C.  Enforcement; rules and regulations The department is hereby charged with the enforcement of the provisions of this article and is hereby authorized and empowered to prescribe, adopt, promulgate and enforce rules and regulations relating to:

12/22/21 10:45 AM

§ 1108-C

TRANSFER TAX AUTHORIZATION

(2)  The denominations and sale of stamps. (3)  Any other matter or thing pertaining to the administration and enforcement of the provisions of this article. § 1108-C.   Failure to affix stamps No document upon which tax is imposed by this article shall at any time be made the basis of any action or other legal proceeding, nor shall proof thereof be offered or received in evidence in any court of this Commonwealth, or recorded in the office of any recorder of deeds of any county of this Commonwealth, unless a documentary stamp or stamps as provided in this article have been affixed thereto. § 1109-C.   Statement of value; penalty (a)  Every document lodged with or presented to any recorder of deeds in this Commonwealth for recording, shall set forth therein and as a part of such document the true, full and complete value thereof, or shall be accompanied by a statement of value executed by a responsible person connected with the transaction showing such connection and setting forth the true, full and complete value thereof or the reason, if any, why such document is not subject to tax under this article. The provisions of this subsection shall not apply to any excludable real estate transfers which are exempt from taxation based on family relationship. Other documents presented for the affixation of stamps shall be accompanied by a certified copy of the document and statement of value executed by a responsible person connected with the transaction showing such connection and setting forth the true, full and complete value thereof or the reason, if any, why such document is not subject to tax under this article. (b)  Any recorder of deeds who shall record any document upon which tax is imposed by this article without the proper documentary stamp or stamps affixed thereto as required by this article as is indicated in such document or accompanying statement of value shall, upon summary conviction, be sentenced to pay a fine of fifty dollars ($ 50) and costs of prosecution, and in default of payment thereof, undergo imprisonment for not more than thirty days. § 1109-C.1.   Civil penalties (a)  If any part of any underpayment of tax imposed by this article is due to fraud, there shall be added to the tax an amount equal to fifty per cent of the underpayment. (b)  In the case of failure to record a declaration required under this article on the date prescribed therefor, unless it is shown that such failure is due to reasonable cause, there shall be added to the tax five per cent of the amount of such tax if the failure is for not more than one month, with an additional five per cent for each additional month or fraction thereof during which such failure continues, not exceeding fifty per cent in the aggregate. § 1110-C.   Unlawful acts; penalty (a)  It shall be unlawful for any person to: (1)  accept or present for recording or cause to be accepted or presented for recording any document, without the full amount of tax thereon being duly paid; or, (2)  make use of any documentary stamp to denote payment of any tax imposed by this article without cancelling such stamp as required by this article or as prescribed by the department; or,

768

gtb-parealestate22-all.indb 768

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REAL ESTATE TAXATION

Ch. 49.1

(b)  Any person violating any of the provisions of subsection (a) shall be guilty of a summary offense. (1)  fraudulently cut, tear or remove from a document any documentary stamp; or,

(5)  knowingly or wilfully prepare, keep, sell, offer for sale, or have in his possession, any forged or counterfeited documentary stamps. (d)  Any person violating any of the provisions of subsection (c) shall be guilty of a misdemeanor of the second degree.

(b)  Promptly after the date of such assessment, the department shall send a copy thereof, including the basis of the assessment, to the person against whom it was made. Any taxpayer against whom an assessment is made may petition the department for a reassessment pursuant to Article XXVII

gtb-parealestate22-all.indb 769

Index

769

Part IX Ch. 68–72 Condos, etc.

(2)  If any part of an underpayment of tax is due to fraud or an undisclosed, intentional disregard of rules and regulations, the full amount of the tax may be assessed at any time.

Part VIII Ch. 64–67 L/T

(1)  If the taxpayer underpays the correct amount of the tax by twenty-five per cent or more, the tax may be assessed at any time within six years after the date of the recording of the document.

Part VII Ch. 57–63 Litigation

§ 1111-C.   Assessment and notice of tax; review (a)  If any person shall fail to pay any tax imposed by this article for which he is liable, the department is hereby authorized and empowered to make an assessment of additional tax and interest due by such person based upon any information within its possession or that shall come into its possession. All of such assessments shall be made within three years after the date of the recording of the document, subject to the following:

Part VI Ch. 49–56 Taxation

(e)  A person who makes a false statement of value or declaration of acquisition, when he does not believe the statement or declaration to be true, is guilty of a misdemeanor of the second degree.

Part V Ch. 41–48A Zoning, etc.

(4)  knowingly have in his possession any altered or restored documentary stamp which has been removed from any document upon which tax is imposed by this article: Provided, That the possession of such stamps shall be prima facie evidence of an intent to violate the provisions of this clause; or,

Part IV Ch. 36–40 Insurance

(3)  wilfully remove or alter the cancellation marks of any documentary stamp, or restore any such documentary stamp, with intent to use or cause the same to be used after it has already been used, or knowingly buy, sell, offer for sale, or give away any such altered or restored stamp to any person for use, or knowingly use the same; or,

Part III Ch. 23–35 Mortgages

(2)  fraudulently affix to any document upon which tax is imposed by this article any documentary stamp which has been cut, torn or removed from any other document upon which tax is imposed by this article, or any documentary stamp of insufficient value, or any forged or counterfeited stamp, or any impression of any forged or counterfeited stamp, die, plate or other article; or,

Part II Ch. 15–22 Deeds

(c)  It shall be unlawful for any person to:

Part I Ch. 1–14 Brokers

(3)  fail, neglect or refuse to comply with or violate the rules and regulations prescribed, adopted and promulgated by the department under the provisions of this article.

Table of Contents

PART VI

12/22/21 10:45 AM

§ 1112-C

TRANSFER TAX AUTHORIZATION

§ 1112-C.  Lien (a)  Any tax determined to be due by the department and remaining unpaid after demand for the same, and all penalties and interest thereon, shall be a lien in favor of the Commonwealth upon the property, both real and personal, of such person but only after said lien has been entered and docketed of record by the prothonotary of the county where such property is situated. (a.1)  At any time after it makes an assessment of additional tax, penalty or interest, the department may transmit to the prothonotaries of the respective counties certified copies of all liens for such taxes, penalties and interest, and it shall be the duty of each prothonotary receiving the lien to enter and docket the same of record in his office, which lien shall be indexed as judgments are now indexed. After the department’s assessment becomes final, a writ of execution may directly issue upon such lien without the issuance and prosecution to judgment of a writ of scire facias: Provided, That not less than ten days before issuance of any execution on the lien, notice shall be sent by certified mail to the taxpayer at his last known post office address. No prothonotary shall require as a condition precedent to the entry of such liens, the payment of any costs incident thereto. (b)  The lien imposed hereunder shall have priority from the date of its recording as aforesaid, and shall be fully paid and satisfied out of the proceeds of any judicial sale of property subject thereto before any other obligation, judgment, claim, lien or estate to which said property may subsequently become subject, except costs of the sale and of the writ upon which the sale was made, and real estate taxes and municipal claims against such property, but shall be subordinate to mortgages and other liens existing and duly recorded or entered of record prior to the recording of the tax lien. In the case of a judicial sale of property subject to a lien imposed hereunder upon a lien or claim over which the lien imposed hereunder has priority, as aforesaid, such sale shall discharge the lien imposed hereunder to the extent only that the proceeds are applied to its payment, and such lien shall continue in full force and effect as to the balance remaining unpaid. (c)  The lien imposed hereunder shall continue for five years from the date of its entry of record, and may be renewed and continued in the manner now or hereafter provided for the renewal of judgments, or as may be provided in the act of April 9, 1929 (P.L. 343, No. 176), known as “The Fiscal Code.” § 1113-C.  Refunds (a)  Whenever the amount due upon assessment or review is less than the amount paid to the department on account thereof, the department shall enter a credit in the amount of such difference to the account of the person who paid the tax. (b)  Where there has been no assessment of unpaid tax, the department shall have the power, and its duty shall be, to hear and decide any application for refund and, upon the allowance of such application, to enter a credit in the amount of the overpayment to the account of the person who paid the tax. Such application must be filed under Article XXVII. § 1114-C.   Sharing information Notwithstanding the provisions of any other act, the department may divulge to the proper officer of a political subdivision imposing a local real estate transfer tax, or the authorized representative of that officer, information gained pursuant to the department’s administration or collection respecting the collection of realty transfer tax under this article.

770

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REAL ESTATE TAXATION

Ch. 49.2

Part I Ch. 1–14 Brokers

CHAPTER 49.2 LOCAL REAL ESTATE TRANSFER TAX 72 P.S. § 8101-D to 72 P.S. § 8114-D

Sec.

1101-D. Imposition 1102-D. Administration 1103-D. Regulations 1104-D. Documentary stamps 1105-D. Collection agent 1106-D. Disbursements 1107-D. Proceeds of judicial sale 1108-D. Failure to affix stamps 1109-D. Determination and notice of tax; review 1110-D. Lien 1111-D. Refunds 1112-D. Civil penalties 1113-D. Unlawful acts and penalty 1114-D. Information

Part II Ch. 15–22 Deeds Part III Ch. 23–35 Mortgages

§ § § § § § § § § § § § § §

Part VII Ch. 57–63 Litigation Part VIII Ch. 64–67 L/T Part IX Ch. 68–72 Condos, etc.

§ 8101-C et seq. §§ 6905, 6908, 6917. § 6901 et seq. § 8102-C. § 8109-D. § 8101-C et seq.

Index

771

gtb-parealestate22-all.indb 771

Part VI Ch. 49–56 Taxation

P.S. P.S. P.S. P.S. P.S. P.S.

Part V Ch. 41–48A Zoning, etc.

72 53 53 72 72 72

Part IV Ch. 36–40 Insurance

§ 1101-D.  Imposition The duly constituted authorities of the following political subdivisions—cities of the second class, cities of the second class A, cities of the third class, boroughs, incorporated towns, townships of the first class, townships of the second class, school districts of the first class A, school districts of the second class, school districts of the third class and school districts of the fourth class, in all cases including independent school districts—may, in their discretion, by ordinance or resolution, for general revenue purposes, levy, assess and collect or provide for the levying, assessment and collection of a tax upon a transfer of real property or an interest in real property within the limits of the political subdivision, regardless of where the instruments making the transfers are made, executed or delivered or where the actual settlements on the transfer take place, to the extent that the transactions are subject to the tax imposed by Article XI-C.1 A tax imposed under this article shall be subject to rate limitations provided by section 5, section 8 and section 172 of the act of December 31, 1965 (P.L. 1257, No. 511), known as “The Local Tax Enabling Act.” § 1102-D.  Administration (a)   The tax authorized under this article shall be administered, collected and enforced under the act of December 31, 1965 (P.L. 1257, No. 511),3 known as “The Local Tax Enabling Act,” provided, however, that, if the correct amount of the tax is not paid by the last date prescribed for timely payment as provided for in section 1102-C,4 the department may determine the tax, interest and penalty as provided for in section 1109-D5 and may collect and enforce the tax, interest and penalty in the same manner as tax, interest and penalty imposed by Article XI-C.6

1. 2. 3. 4. 5. 6.

Table of Contents

PART VI

12/22/21 10:45 AM

§ 1103-D

TRANSFER TAX AUTHORIZATION

(b)   Whenever a declaration is required to be filed under Article XI-C, a declaration is also required to be filed under this article. § 1103-D.  Regulations (a)  The regulations promulgated under Article XI-C7 shall be applicable to the taxes imposed under this article. (b)   The Department of Revenue may promulgate and enforce regulations not inconsistent with the provisions of this article. (c)  The department, to cover its costs of administration, shall retain an amount equal to costs but not to exceed ten per cent of the tax, interest and penalty collected and enforced by the department under section 1102-D.8 § 1104-D.  Documentary stamps (a)   The payment of the tax imposed under this article shall be evidenced by the affixing of a documentary stamp or stamps to every document by the person making, executing, delivering or presenting for recording such document. The stamps shall be affixed in such manner that their removal will require the continued application of steam or water, and the person using or affixing the stamps shall write, stamp or cause to be written or stamped thereon the initials of that person’s name and the date upon which the stamps are affixed or used so that the stamps may not again be used, provided that the Department of Revenue may prescribe such other method of cancellation as it may deem expedient. (b)  The department may, in its discretion, use documentary license meter impressions or similar indicia of payment in lieu of stamps. § 1105-D.  Collection agent The recorder of deeds shall be the collection agent for any political subdivision levying a local real estate transfer tax under this article. The recorder of deeds shall pay tax, interest and penalty collected under this article over to the appropriate political subdivision in accordance with section 6(c) of the act of November 1, 1971 (P.L. 495, No. 113),9 entitled, as amended, “An act providing for the compensation of county officers in counties of the second through eighth classes, for compensation of district attorneys in cities and counties of the first class, for compensation of district election officers in all counties, for the disposition of fees, for filing of bonds in certain cases and for duties of certain officers.” § 1106-D.  Disbursements The tax, interest and penalty that the Department of Revenue collects under this article shall be remitted in the manner provided by law to the appropriate recorder of deeds along with the “State Tax Payment Imprint Receipt” which shall provide sufficient information for the recorder of deeds to determine which political subdivisions are entitled to the collections. The recorder of deeds shall record the “State Tax Payment Imprint Receipt” whether or not signed and acknowledged by the Department of Revenue and shall index in the grantor/grantee index to the original document upon which the tax has been paid. The department shall collect from the taxpayer as part of its determination process the county recording fee for the recording of the “State Tax Payment Imprint Receipt.” § 1107-D.  Proceeds of judicial sale The tax imposed under this article shall be fully paid and have priority out of the proceeds of any judicial sale of real estate before any other obligation, claim, lien, judgment, estate or costs of the sale and of the writ upon which the sale is

7. 72 P.S. § 8101-C et seq. 8. 72 P.S. § 8102-D. 9. 16 P.S. § 11011-6.

772

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REAL ESTATE TAXATION

Ch. 49.2

Part VI Ch. 49–56 Taxation Part VII Ch. 57–63 Litigation Part VIII Ch. 64–67 L/T Part IX Ch. 68–72 Condos, etc. Index

gtb-parealestate22-all.indb 773

Part V Ch. 41–48A Zoning, etc.

773

Part IV Ch. 36–40 Insurance

§ 1110-D.  Lien (a)  Any tax that the Department of Revenue determines to be due under this article and remains unpaid after demand for the same, and all penalties

Part III Ch. 23–35 Mortgages

§ 1109-D.  Determination and notice of tax; review (a)  If any person fails to pay any tax imposed under this article for which that person is liable, a political subdivision may authorize the Department of Revenue to make a determination of additional tax, penalty and interest due under this section by the person. The determination will be based upon any information which is within the possession or which will come into the possession of the department. The determination will be made within three years after the date of the recording of the document, subject to the following: (1)   If the taxpayer underpays the correct amount of the tax by twenty-five per cent or more, the tax may be assessed at any time within six years after the date of the recording of the document. (2)   If any part of an underpayment of tax is due to fraud or an undisclosed, intentional disregard of rules and regulations, the full amount of the tax may be assessed at any time. (b)(1)  Promptly after the date of such determination, the department shall send by mail a copy thereof to the person against whom it was made. Within ninety days after the date upon which the copy of the determination was mailed, the person may file with the department a petition for redetermination of the taxes. (2)   Every petition for redetermination must state specifically the reasons which the petitioner believes to be entitled to redetermination and shall be supported by affirmation that it is not made for the purpose of delay and that the facts set forth therein are true. (3)   The department, within six months after the date of filing of a petition for redetermination, shall dispose of the petition. Notice of the action taken upon a petition for redetermination shall be given to the petitioner promptly after the date of redetermination by the department. (c)  A person shall have the right to review by the Board of Finance and Revenue and appeal in the same manner and within the same time as provided by law in the case of capital stock and franchise taxes imposed upon corporations. (d)(1)  Notice of the action of the Board of Finance and Revenue shall be given by mail to the political subdivision. A political subdivision shall have the right to appeal in the same manner and within the same time as provided by law for the Commonwealth in the case of capital stock and franchise taxes imposed upon corporations. (2)   The political subdivision may request in writing the Office of General Counsel to render such legal advice and such representation as are required concerning every matter and issue arising in connection with an appeal from a decision of the Board of Finance and Revenue.

Part II Ch. 15–22 Deeds

§ 1108-D.  Failure to affix stamps No document upon which tax is imposed under this article shall at any time be made the basis of any action or other legal proceeding nor shall proof thereof be offered or received in evidence in any court of this Commonwealth or recorded in the office of any recorder of deeds of any county of this Commonwealth unless a documentary stamp or stamps as provided in this article have been affixed thereto.

Part I Ch. 1–14 Brokers

made. The sheriff or other officer conducting the sale shall pay the tax imposed under this article out of the first moneys paid to the sheriff or officer in connection therewith. If the proceeds of the sale are insufficient to pay the entire tax imposed under this article, the purchaser shall be liable for the remaining tax.

Table of Contents

PART VI

12/22/21 10:45 AM

§ 1111-D

TRANSFER TAX AUTHORIZATION

and interest thereon, shall be a lien in favor of the affected political subdivision upon the property, both real and personal, of the person but only after the lien has been entered and docketed of record by the prothonotary of the county where such property is situated. (b)(1)   At any time after it makes a determination of additional tax, penalty or interest under this article, the department may transmit to the prothonotaries of the respective counties certified copies of all liens for the taxes, penalties and interest under this article or copies of all liens under Article XI-C10 and this article on a single form. (2)  A prothonotary receiving the lien shall enter and docket the lien of record in the prothonotary’s office, which lien shall be indexed as judgments are now indexed. (3)   After the department’s determination becomes final, a writ of execution may directly issue upon the lien without the issuance and prosecution to judgment of a writ of scire facias, provided that, not less than ten days before issuance of any execution on the lien, notice shall be sent by certified mail to the taxpayer at the taxpayer’s last known post office address. No prothonotary shall require as a condition precedent to the entry of the liens the payment of any costs incident thereto. (c)(1)   The lien imposed under this section shall have priority from the date of its recording and shall be fully paid and satisfied out of the proceeds of any judicial sale of property subject thereto before any other obligation, judgment, claim, lien or estate to which the property may subsequently become subject, except costs of the sale and of the writ upon which the sale was made, and real estate taxes and municipal claims against such property, but shall be subordinate to mortgages and other liens existing and duly recorded or entered of record prior to the recording of the tax lien. (2)   In the case of a judicial sale of property subject to a lien imposed under this section upon a lien or claim over which the lien has priority, the sale shall discharge the lien to the extent only that the proceeds are applied to its payment, and the lien shall continue in full force and effect as to the balance remaining unpaid. (d)  A lien imposed under this article shall be equal in priority to the lien imposed under Article XI-C.11 § 1111-D.  Refunds (a)   Whenever the amount due upon determination, redetermination or review is less than the amount paid on account thereof, the political subdivision shall refund the difference. (b)  Where there has been no determination of unpaid tax, application for refund shall be made to the political subdivision in the manner prescribed by the act of December 31, 1965 (P.L. 1257, No. 511),12 known as “The Local Tax Enabling Act,” 53 Pa.C.S. Ch. 84 Subch. C13 (relating to local taxpayers bill of rights) or as otherwise provided by law. § 1112-D.  Civil penalties (a)   If any part of any underpayment of tax imposed under this article is due to fraud, an amount equal to fifty per cent of the underpayment shall be added to the tax. 10. 11. 12. 13.

72 P.S. § 8101-C et seq. Ibid. 53 P.S. § 6901 et seq. 53 Pa.C.S. § 8421 et seq.

774

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REAL ESTATE TAXATION

Ch. 49.2

(a)   It shall be unlawful for any person to: (1)   accept or present for recording or cause to be accepted or presented for recording any document without the full amount of tax thereon being duly paid;

(3)   fail, neglect or refuse to comply with or violate the rules and regulations prescribed, adopted and promulgated by the department under this article;

(7)   knowingly have in his possession any altered or restored documentary stamp which has been removed from any document upon which a tax is imposed under this article, provided that the possession of such stamps shall be prima facie evidence of an intent to violate the provisions of this clause; or

(b)(1)   Except as otherwise provided in clause (2), a person who violates subsection (a) commits a misdemeanor of the second degree.

(c)   A person who makes a false statement of value or declaration of acquisition, not believing the statement or declaration to be true, commits a misdemeanor of the second degree.

Notwithstanding the provisions of any other act, the officer of a political subdivision imposing a local real estate transfer tax or the authorized representative of the officer may divulge to the Department of Revenue information concerning the administration or collection of local real estate transfer tax authorized by this article.

gtb-parealestate22-all.indb 775

Index

775

Part IX Ch. 68–72 Condos, etc.

§ 1114-D.  Information

Part VIII Ch. 64–67 L/T

(2)   A person who violates subsection (a)(1), (2) or (3) commits a summary offense.

Part VII Ch. 57–63 Litigation

(8)  knowingly or wilfully prepare, keep, sell, offer for sale or have in his possession any forged or counterfeited documentary stamps.

Part VI Ch. 49–56 Taxation

(6)  wilfully remove or alter the cancellation marks of any documentary stamp, or restore any such documentary stamp, with intent to use or cause the same to be used after it has already been used, or knowingly buy, sell, offer for sale or give away such altered or restored stamp to any person for use, or knowingly use the same;

Part V Ch. 41–48A Zoning, etc.

(5)   fraudulently affix to any document upon which tax is imposed under this article any documentary stamp which has been cut, torn or removed from any other document upon which tax is imposed under this article, or any documentary stamp of insufficient value, or any forged or counterfeited stamp, or any impression of any forged or counterfeited stamp, die, plate or other article;

Part IV Ch. 36–40 Insurance

(4)  fraudulently cut, tear or remove from a document any documentary stamp;

Part III Ch. 23–35 Mortgages

(2)  make use of any documentary stamp to denote payment of any tax imposed under this article without cancelling such stamp as required by this article or as prescribed by the Department of Revenue;

Part II Ch. 15–22 Deeds

§ 1113-D.  Unlawful acts and penalty

Part I Ch. 1–14 Brokers

(b)   In the case of failure to record a declaration required under this article on the date prescribed therefor, unless it is shown that such failure is due to reasonable cause, five per cent of the amount of such tax shall be added to the tax if the failure is for not more than one month, with an additional five per cent for each additional month or fraction thereof during which the failure continues, not exceeding fifty per cent in the aggregate.

Table of Contents

PART VI

12/22/21 10:45 AM

§ 4750.1301   TRANSFER TAX AUTHORIZATION CHAPTER 49.3 TAX AUTHORIZATION FOR CITIES OF THE FIRST CLASS 72 P.S. § 4750.1301

Sec.

§ 4750.1301.  Tax authorization for cities of the first class

§ 4750.1301.  Tax authorization for cities of the first class (a)  [Reserved] (b)   Real estate transfer tax. (1)   From and after the effective date of this chapter, the council of any city of the first class shall have the authority, by ordinance, for general revenue purposes, to levy, assess and collect or provide for the levying, assessment and collection of a tax upon a transfer of real property or an interest in real property within the geographical limits of a city of the first class, regardless of where the instruments making the transfer are made, executed or delivered or where the actual settlements on the transfer take place, to the extent that the transactions are subject to the tax imposed by Article XI-C of the act of March 4, 1971 (P.L. 6, No. 2), known as the Tax Reform Code of 1971.14 (2)   In addition, such city of the first class may impose a local real estate transfer tax upon additional classes or types of transactions and may establish standards to be used by the city of the first class to determine the monetary value to be applied to a transaction for the purpose of taxation, if the tax was or is imposed by the city of the first class pursuant to the act of August 5, 1932 (Sp.Sess., P.L. 45, No. 45), referred to as the Sterling Act,15 or pursuant to this act. (3)  If the collector of taxes for any such city of the first class determines that any part of any underpayment of tax imposed pursuant to this authority is due to conduct proscribed by the ordinance imposing a tax on the transfer of real estate or an interest in real property, the city shall have the authority to add to the tax an amount equal to 50% of the underpayment; and, in the case of failure to record any document in a timely manner as prescribed therefor by ordinance, unless it is shown that such failure is due to reasonable cause, the city shall have the authority by ordinance to require to be added to the tax 5% of the amount of such tax if the failure is for not more than one month, with an additional 5% for each additional month or fraction thereof during which such failure continues, not exceeding 50% in the aggregate. (4)   This subsection shall apply to all taxable transactions occurring on and after November 30, 1988.

CHAPTER 49.4 Selected Sections from 14. 72 P.S. § 8101-C et seq. 15. 53 P.S. § 15971 et seq.

776

gtb-parealestate22-all.indb 776

12/22/21 10:45 AM

REAL ESTATE TAXATION

Ch. 49.4

Table of Contents

PART VI

LOCAL TAX ENABLING ACT Part I Ch. 1–14 Brokers

53 P.S. §§ 6924.101; 6924.301.1; 6924.307; 6924.311; 6924.320

Sec. 6924.101. 6924.301.1. 6924.307. 6924.311. 6924.320.

Short Title Delegation of Taxing Powers and Restrictions Thereon Rate, Amount, Court Approval; Revision of Budget Limitations on Rates of Specific Taxes Tax Limitations

Part II Ch. 15–22 Deeds

§ § § § §

Part V Ch. 41–48A Zoning, etc. Part VI Ch. 49–56 Taxation Part VII Ch. 57–63 Litigation Part VIII Ch. 64–67 L/T Part IX Ch. 68–72 Condos, etc. Index

gtb-parealestate22-all.indb 777

Part IV Ch. 36–40 Insurance

777

Part III Ch. 23–35 Mortgages

§ 6924.101.   Short Title This act shall be known and may be cited as “The Local Tax Enabling Act.” * * * * § 6924.301.1.   Delegation of Taxing Powers and Restrictions Thereon (a)  The duly constituted authorities of the following political subdivisions, cities of the second class, cities of the second class A, cities of the third class, boroughs, towns, townships of the first class, townships of the second class, school districts of the second class, school districts of the third class, and school districts of the fourth class, in all cases including independent school districts may, in their discretion, by ordinance or resolution, for general revenue purposes, levy, assess and collect or provide for the levying, assessment and collection of such taxes as they shall determine on persons, transactions, occupations, privileges, subjects and personal property within the limits of such political subdivisions, and upon the transfer of real property, or of any interest in real property, situate within the political subdivision levying and assessing the tax, regardless of where the instruments making the transfers are made, executed or delivered or where the actual settlements on such transfer take place. The taxing authority may provide that the transferee shall remain liable for any unpaid realty transfer taxes imposed by virtue of this chapter. (a.1)(1)   A local taxing authority may levy a tax on the privilege of doing business in the jurisdiction of the local taxing authority if: (i)   the privilege is exercised by conducting transactions in the jurisdiction of the levying local taxing authority for all or part of fifteen or more calendar days within the calendar year; or (ii)   the privilege is exercised through a base of operations in the jurisdiction of the levying local taxing authority. The gross receipts subject to this tax shall not include any receipts subject to a tax measured by such gross receipts which is imposed under subparagraph (i). (2)   As used in this subsection, the term “base of operations” shall mean an actual, physical and permanent place of business from which a taxpayer manages, directs and controls its business activities at that location. (b)   Each local taxing authority may, by ordinance or resolution, exempt any person whose total income from all sources is less than twelve thousand dollars ($12,000) per annum from the per capita or similar head tax, occupation tax or earned income tax, or any portion thereof, and may adopt regulations for the processing of claims for exemptions. (c)(1)  Each political subdivision levying the local services tax shall exempt the following persons from the local services tax:

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§ 6924.301.1

TRANSFER TAX AUTHORIZATION

(i)  Any person who has served in any war or armed conflict in which the United States was engaged and is honorably discharged or released under honorable circumstances from active service if, as a result of military service, the person is blind, paraplegic or a double or quadruple amputee or has a service-connected disability declared by the United States Veterans’ Administration or its successor to be a total one hundred percent permanent disability. (ii)   Any person who serves as a member of a reserve component of the armed forces and is called to active duty at any time during the taxable year. (2)   For purposes of this subsection, “reserve component of the armed forces” shall mean the United States Army Reserve, United States Navy Reserve, United States Marine Corps Reserve, United States Coast Guard Reserve, United States Air Force Reserve, the Pennsylvania Army National Guard or the Pennsylvania Air National Guard. (d)   Each political subdivision levying the local services tax at a rate exceeding ten dollars ($10) shall, and each political subdivision levying the local services tax at a rate of ten dollars ($10) or less may, by ordinance or resolution, exempt any person from the local services tax whose total earned income and net profits from all sources within the political subdivision is less than twelve thousand dollars ($12,000) for the calendar year in which the local services tax is levied. (e)(1)   A person seeking to claim an exemption from the local services tax may annually file an exemption certificate with the political subdivision levying the tax and with the person’s employer affirming that the person reasonably expects to receive earned income and net profits from all sources within the political subdivision of less than twelve thousand dollars ($12,000) in the calendar year for which the exemption certificate is filed. In the event the political subdivision utilizes a tax collection officer pursuant to section 10 of this act, the political subdivision shall provide a copy of the exemption certificate to that officer. The exemption certificate shall have attached to it a copy of all the employe’s last pay stubs or W-2 forms from employment within the political subdivision for the year prior to the fiscal year for which the employe is requesting to be exempted from the local services tax. Upon receipt of the exemption certificate and until otherwise instructed by the political subdivision levying the tax or except as required by clause (2), the employer shall not withhold the tax from the person during the calendar year or the remainder of the calendar year for which the exemption certificate applies. Employers shall ensure that the exemption certificate forms are readily available to employes at all times and shall furnish each new employe with a form at the time of hiring. The Department of Community and Economic Development shall develop and make available to political subdivisions and employers uniform exemption certificates required by this clause. (2)   With respect to a person who claimed an exemption for a given calendar year from the local services tax, upon notification to an employer by the person or by the political subdivision that the person has received earned income and net profits from all sources within that political subdivision equal to or in excess of twelve thousand dollars ($12,000) in that calendar year or that the person is otherwise ineligible for the tax exemption for that calendar year, or upon an employer’s payment to the person of earned income within that political subdivision in an amount equal to or in excess of twelve thousand dollars ($12,000) in that calendar year, an employer shall withhold the local services tax from the person under clause (3). (3)   If a person who claimed an exemption for a given calendar year from the local services tax becomes subject to the tax for the calendar year under clause (2), the employer shall withhold the tax for the remainder of that calendar year. The employer shall withhold from the person, for the first payroll period after receipt of the notification under clause (2), a lump sum equal to the amount of tax that was not withheld from the person due to the exemption claimed by

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REAL ESTATE TAXATION

Ch. 49.4

Table of Contents

PART VI

the person under this subsection, plus the per payroll amount due for that first payroll period. The amount of tax withheld per payroll period for the remaining payroll periods in that calendar year shall be the same amount withheld for other employes. In the event the employment of a person subject to withholding of the tax under this clause is subsequently severed in that calendar year, the person shall be liable for any outstanding balance of tax due, and the political subdivision levying the tax may pursue collection under this act.

Part I Ch. 1–14 Brokers

(4)   Except as provided in clause (2), it is the intent of this subsection that employers shall not be responsible for investigating exemption certificates, monitoring tax exemption eligibility or exempting any employe from a local services tax.

Part II Ch. 15–22 Deeds

(f)   Such local authorities shall not have authority by virtue of this act:

Part V Ch. 41–48A Zoning, etc. Part VI Ch. 49–56 Taxation Part VII Ch. 57–63 Litigation Part VIII Ch. 64–67 L/T Part IX Ch. 68–72 Condos, etc. Index

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Part IV Ch. 36–40 Insurance

779

Part III Ch. 23–35 Mortgages

(1)   To levy, assess and collect or provide for the levying, assessment and collection of any tax on the transfer of real property when the transfer is by will or mortgage or the intestate laws of this Commonwealth or on a transfer by the owner of previously occupied residential premises to a builder of new residential premises when such previously occupied residential premises is taken in trade by such builder as part of the consideration from the purchaser of a new previously unoccupied single family residential premises or on a transfer between corporations operating housing projects pursuant to the housing and redevelopment assistance law and the shareholders thereof, or on a transfer between nonprofit industrial development agencies and industrial corporations purchasing from them, or on transfer to or from nonprofit industrial development agencies, or on a transfer between husband and wife, or on a transfer between persons who were previously husband and wife but who have since been divorced; provided such transfer is made within three months of the date of the granting of the final decree in divorce, or the decree of equitable distribution of marital property, whichever is later, and the property or interest therein, subject to such transfer, was acquired by the husband and wife, or husband or wife, prior to the granting of the final decree in divorce, or on a transfer between parent and child or the spouse of such a child, or between parent and trustee for the benefit of a child or the spouse of such child, or on a transfer between a grandparent and grandchild or the spouse of such grandchild, or on a transfer between brother and sister or brother and brother or sister and sister or the spouse of such brother or sister, or on a transfer to a conservancy which possesses a tax-exempt status pursuant to section 501(c) (3) of the Internal Revenue Code, and which has as its primary purpose the preservation of land for historic, recreational, scenic, agricultural or open space opportunities, by and between a principal and straw party for the purpose of placing a mortgage or ground rent upon the premises, or on a correctional deed without consideration, or on a transfer to the United States, the Commonwealth of Pennsylvania, or to any of their instrumentalities, agencies or political subdivisions, by gift, dedication or deed in lieu of condemnation, or deed of confirmation in connection with condemnation proceedings, or reconveyance by the condemning body of the property condemned to the owner of record at the time of condemnation which reconveyance may include property line adjustments provided said reconveyance is made within one year from the date of condemnation; or leases or lease transactions; or on a conveyance to a trustee under a recorded trust agreement for the express purpose of holding title in trust as security for a debt contracted at the time of the conveyance under which the trustee is not the lender and requiring the trustee to make reconveyance to the grantor-borrower upon the repayment of the debt, or a transfer within a family from a sole proprietor family member to a family farm corporation, or in any sheriff sale instituted by a mortgagee in which the purchaser of said sheriff sale is the mortgagee who instituted said sale, or on a privilege, transaction, subject, occupation or personal property which is now or does hereafter become subject to a State tax or license fee;

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§ 6924.301.1

TRANSFER TAX AUTHORIZATION

(2)   To levy, assess or collect a tax on the gross receipts from utility service of any person or company whose rates and services are fixed and regulated by the Pennsylvania Public Utility Commission or on any public utility services rendered by any such person or company or on any privilege or transaction involving the rendering of any such public utility service; (3)  Except on sales of admission to places of amusement, other than on sales of admission to professional baseball events in a city of the third class with a population of not less than one hundred six thousand and not more than one hundred seven thousand based on the 2000 Federal decennial census, or on sales or other transfers of title or possession of property, to levy, assess or collect a tax on the privilege of employing such tangible property as is now or does hereafter become subject to a State tax; and for the purposes of this clause, real property rented for camping purposes shall not be considered a place of amusement; (4)   To levy, assess and collect a tax on goods and articles manufactured in such political subdivision or on the by-products of manufacture, or on minerals, timber, natural resources and farm products produced in such political subdivision or on the preparation or processing thereof for use or market, or on any privilege, act or transaction related to the business of manufacturing, the production, preparation or processing of minerals, timber and natural resources, or farm products, by manufacturers, by producers and by farmers with respect to the goods, articles and products of their own manufacture, production or growth, or on any privilege, act or transaction relating to the business of processing by-products of manufacture, or on the transportation, loading, unloading or dumping or storage of such goods, articles, products or by-products; except that local authorities may levy, assess and collect a local services tax and taxes on the occupation, per capita and earned income or net profits of natural persons engaged in the above activities whether doing business as individual proprietorship or as members of partnerships or other associations; (5)  To levy, assess or collect a tax on salaries, wages, commissions, compensation and earned income of nonresidents of the political subdivisions: Provided, That this limitation (5) shall apply only to school districts of the second, third and fourth classes; (6)   To levy, assess or collect a tax on personal property subject to taxation by counties or on personal property owned by persons, associations and corporations specifically exempted by law from taxation under the county personal property tax law: Provided, That this limitation (6) shall not apply to cities of the second class; (7)   To levy, assess or collect a tax on membership in or membership dues, fees or assessment of charitable, religious, beneficial or nonprofit organizations including but not limited to sportsmens, recreational, golf and tennis clubs, girl and boy scout troops and councils; (8)   To levy, assess or collect any tax on a mobilehome or house trailer subject to a real property tax unless the same tax is levied, assessed and collected on other real property in the political subdivision. (9)   To levy, assess or collect any tax on individuals for the privilege of engaging in an occupation except that such a tax, to be known as the local services tax, may be levied, assessed and collected only by the political subdivision of the taxpayer’s place of employment. The following apply: (i)   If a local services tax is levied at a combined rate exceeding ten dollars ($10) in a calendar year, a person subject to the local services tax shall be assessed a pro rata share of the tax for each payroll period in which the person is engaging in an occupation. The pro rata share of the tax assessed on the person for a payroll period shall be determined by dividing the combined rate of the local services tax levied for the calendar year by the number of

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Ch. 49.4

Part VIII Ch. 64–67 L/T Part IX Ch. 68–72 Condos, etc. Index

gtb-parealestate22-all.indb 781

Part VII Ch. 57–63 Litigation

781

Part VI Ch. 49–56 Taxation

(vi)  The local services tax shall be no more than fifty-two dollars ($52) on each person for each calendar year, irrespective of the number of political subdivisions within which a person may be employed. A political subdivision shall provide a taxpayer a receipt of payment upon request by the taxpayer. (vii)  Political subdivisions shall adopt regulations for the processing of

Part V Ch. 41–48A Zoning, etc.

(v)   In the case of concurrent employment, an employer shall refrain from withholding the local services tax if the employe provides a recent pay statement from a principal employer that includes the name of the employer, the length of the payroll period and the amount of the local services tax withheld and a statement from the employe that the pay statement is from the employe’s principal employer and the employe will notify other employers of a change in principal place of employment within two weeks of its occurrence. The Department of Community and Economic Development shall develop a uniform employe statement form.

Part IV Ch. 36–40 Insurance

(iv)   With respect to a person subject to the local services tax at a combined rate exceeding ten dollars ($10), the situs of the tax shall be the place of employment on the first day the person becomes subject to the tax during each payroll period. With respect to a person subject to the local services tax at a combined rate of not more than ten dollars ($10), the situs of the tax shall be the place of employment determined as of the day the person first becomes subject to the tax during the calendar year. In the event a person is engaged in more than one occupation, that is, concurrent employment, or an occupation which requires the person working in more than one political subdivision during a payroll period, the priority of claim to collect the local services tax shall be in the following order: first, the political subdivision in which a person maintains the person’s principal office or is principally employed; second, the political subdivision in which the person resides and works, if the tax is levied by that political subdivision; and third, the political subdivision in which a person is employed and which imposes the tax nearest in miles to the person’s home.

Part III Ch. 23–35 Mortgages

(iii)  Except as provided in subclause (ii), no person shall be subject to the payment of the local services tax by more than one political subdivision during each payroll period as established by subclause (iv).

Part II Ch. 15–22 Deeds

(ii)  If a school district levied an emergency and municipal services tax on the effective date of this subclause, the school district may continue to levy the local services tax in the same amount the school district collected on the effective date of this subclause. However, if a municipality located in whole or in part within the school district subsequently levies the local services tax, the school district may only collect five dollars ($5) on persons employed within the municipality each calendar year. A school district that did not levy an emergency and municipal services tax on the effective date of this subclause shall be prohibited from levying the local services tax. If a school district and a municipality located in whole or in part within the school district both levy a local services tax at a combined rate exceeding ten dollars ($10), the school district’s pro rata share of the aggregate local services taxes levied on persons employed within the municipality shall be collected by the municipality or its tax officer based on payroll periods as provided under subclause (i) and shall be paid to the school district on a quarterly basis within sixty days of receipt by the municipality or its tax officer.

Part I Ch. 1–14 Brokers

payroll periods established by the employer for the calendar year. For purposes of determining the pro rata share, an employer shall round down the amount of the tax collected each payroll period to the nearest one-hundredth of a dollar. Collection of the local services tax levied under this subclause shall be made on a payroll period basis for each payroll period in which the person is engaging in an occupation, except as provided in subclause (v).

Table of Contents

PART VI

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§ 6924.301.1

TRANSFER TAX AUTHORIZATION

refund claims for overpaid local services taxes for any calendar year. The regulations shall be consistent with 53 Pa.C.S. §§ 8425 (relating to refunds of overpayments) and 8426 (relating to interest on overpayment). Refunds made within seventy-five days of a refund request or seventy-five days after the last day the employer is required to remit the local services tax for the last quarter of the calendar year under section 312 of this act, whichever is later, shall not be subject to interest imposed under 53 Pa.C.S. § 8426. Political subdivisions shall only provide refunds for amounts overpaid in a calendar year that exceed one dollar ($1). (viii)  The Department of Community and Economic Development shall provide suggested forms and technical assistance to facilitate the administration of the local services tax for political subdivisions and reduce the burden of implementation, accounting and compliance for employers and taxpayers. (ix)  For purposes of this clause, “combined rate” shall mean the aggregate annual rate of the local services tax levied by a school district and a municipality located in whole or in part within the school district. (10)   To levy, assess or collect a tax on admissions to motion picture theatres: Provided, That this limitation (10) shall not apply to cities of the second class. (11)   To levy, assess or collect a tax on the construction of or improvement to residential dwellings or upon the application for or issuance of permits for the construction of or improvements to residential dwellings. (12)  To levy, assess and collect a mercantile or business privilege tax on gross receipts or part thereof which are: (i) discounts allowed to purchasers as cash discounts for prompt payment of their bills; (ii) charges advanced by a seller for freight, delivery or other transportation for the purchaser in accordance with the terms of a contract of sale; (iii) received upon the sale of an article of personal property which was acquired by the seller as a trade-in to the extent that the gross receipts in the sale of the article taken in trade does not exceed the amount of trade-in allowance made in acquiring such article; (iv) refunds, credits or allowances given to a purchaser on account of defects in goods sold or merchandise returned; (v) Pennsylvania sales tax; (vi) based on the value of exchanges or transfers between one seller and another seller who transfers property with the understanding that property of an identical description will be returned at a subsequent date; however, when sellers engaged in similar lines of business exchange property and one of them makes payment to the other in addition to the property exchanged, the additional payment received may be included in the gross receipts of the seller receiving such additional cash payments; (vii) of sellers from sales to other sellers in the same line where the seller transfers the title or possession at the same price for which the seller acquired the merchandise; or (viii) transfers between one department, branch or division of a corporation or other business entity of goods, wares and merchandise to another department, branch or division of the same corporation or business entity and which are recorded on the books to reflect such interdepartmental transactions. (13)  To levy, assess or collect an amusement or admissions tax on membership, membership dues, fees or assessments, donations, contributions or monetary charges of any character whatsoever paid by the general public, or a limited or selected number thereof, for such persons to enter into any place, indoors or outdoors, to engage in any activities, the predominant purpose or nature of which is exercise, fitness, health maintenance, improvement or rehabilitation, health or nutrition education, or weight control. (14)   Except by cities of the second class, to levy, assess or collect a tax on payroll amounts generated as a result of business activity.

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REAL ESTATE TAXATION

Ch. 49.4

Part V Ch. 41–48A Zoning, etc. Part VI Ch. 49–56 Taxation Part VII Ch. 57–63 Litigation Part VIII Ch. 64–67 L/T Part IX Ch. 68–72 Condos, etc. Index

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Part IV Ch. 36–40 Insurance

783

Part III Ch. 23–35 Mortgages

§ 6924.311.   Limitations on Rates of Specific Taxes No taxes levied under the provisions of this chapter shall be levied by any political subdivision on the following subjects exceeding the rates specified in this section: (1)   Per capita, poll or other similar head taxes, ten dollars ($10). (2)   On each dollar of the whole volume of business transacted by wholesale dealers in goods, wares and merchandise, one mill, by retail dealers in goods, wares and merchandise and by proprietors of restaurants or other places where food, drink and refreshments are served, one and one-half mills; except in cities of the second class, where rates shall not exceed one mill on wholesale dealers and two mills on retail dealers and proprietors. No such tax shall be levied on the dollar volume of business transacted by wholesale and retail dealers derived from the resale of goods, wares and merchandise, taken by any dealer as a trade-in or as part payment for other goods, wares and merchandise, except to the extent that the resale price exceeds the trade-in allowance. When a political subdivision which currently levies, assesses or collects a mercantile or business privilege tax on gross receipts under section 533 of the act of December 13, 1988 (P.L.1121, No.145), known as the “Local Tax Reform Act,” merges with one or more political subdivisions to form a new political subdivision on or after August 1, 2008, the new political subdivision may levy that mercantile or business privilege tax in the first year following the merger at a rate necessary to generate the same revenues generated in the last fiscal year that the merging political subdivision generated before the merger. Such rate shall remain in effect for the new political subdivision in subsequent years, but the revenue-neutral limitation shall only apply to the first year following the merger. If the merging political subdivision had previously shared the rate of taxation with another political subdivision, the nonmerging political subdivision which had shared the rate is capped at the rate it was previously levying.

Part II Ch. 15–22 Deeds

§ 6924.307.   Rate, Amount, Court Approval; Revision of Budget Any tax imposed under this chapter shall not be subject to any limitations under existing laws as to rate or amount or as to the necessity of securing court approval or as to budgetary requirements. Any city, borough or township imposing a tax under this chapter may revise its budget during any fiscal year by increasing or making additional appropriations from funds to be provided from such tax. The ordinance or resolution may be passed or adopted prior to the beginning of the fiscal year and prior to the preparation of the budget when desirable. Every ordinance or resolution which imposed a tax under the authority of this chapter shall be passed or adopted, if for a school district, during the period other school taxes are required by law to be levied and assessed by such district. Each ordinance and resolution shall state that it is enacted under the authority of this chapter, known as “The Local Tax Enabling Act”.

Part I Ch. 1–14 Brokers

(15)   Except by cities of the second class in which a sports stadium or arena that has received public funds in connection with its construction or maintenance is located, to levy, assess and collect a publicly funded facility usage fee upon those nonresident individuals who use such facility to engage in an athletic event or otherwise render a performance for which they receive remuneration. (16)   To levy, assess or collect an amusement or admissions tax on the charge imposed upon a patron for the sale of admission to or for the privilege of admission to a bowling alley or bowling lane to engage in one or more games of bowling. (17)   To levy, assess or collect an amusement or admission tax based on a charge imposed for the movement of passengers by a for-profit railroad that operates as a common carrier of freight subject to the jurisdiction of the United States Surface Transportation Board if the freight constitutes a majority of the movements handled by the railroad measured by both income and volume and the for-profit railroad transports more than 20,000 revenue carloads annually while offering tourist or passenger service.

Table of Contents

PART VI

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§ 6924.311

TRANSFER TAX AUTHORIZATION

(3)   On wages, salaries, commissions and other earned income of individuals, one percent. (4)   On retail sales involving the transfer of title or possession of tangible personal property, two percent. (5)   On the transfer of real property, one percent. (6)   On admissions to places of amusement, athletic events and the like, and on motion picture theatres in cities of the second class, ten percent. (7)   Flat rate occupation taxes not using a millage or percentage as a basis, ten dollars ($10). (8)   Local services taxes, fifty-two dollars ($52). (9)   On admissions to ski facilities, ten percent. The tax base upon which the tax shall be levied shall not exceed forty percent of the cost of the lift ticket. The lift ticket shall include all costs of admissions to the ski facility. (10)   On admissions to golf courses, ten percent. The tax base upon which the tax shall be levied shall not exceed forty percent of the greens fee. The greens fee shall include all costs of admissions to the golf course. (11)   ((11) deleted by amendment Dec. 1, 2003, P.L.1729, No.222) (12)   On payrolls, fifty-five hundredths percent. Except as otherwise provided in this chapter, at any time two political subdivisions shall impose any one of the above taxes on the same person, subject, business, transaction or privilege, located within both such political subdivisions, during the same year or part of the same year, under the authority of this chapter then the tax levied by a political subdivision under the authority of this chapter shall, during the time such duplication of the tax exists, except as hereinafter otherwise provided, be one-half of the rate, as above limited, and such one-half rate shall become effective by virtue of the requirements of this chapter from the day such duplication becomes effective without any action on the part of the political subdivision imposing the tax under the authority of this chapter. When any one of the above taxes has been levied under the provisions of this chapter by one political subdivision and a subsequent levy is made either for the first time or is revived after a lapse of time by another political subdivision on the same person, subject, business, transaction or privilege at a rate that would make the combined levies exceed the limit allowed by this subdivision, the tax of the second political subdivision shall not become effective until the end of the fiscal year for which the prior tax was levied, unless: (1)  Notice indicating its intention to make such levy is given to the first taxing body by the second taxing body as follows: (i) when the notice is given to a school district it shall be given at least forty-five days prior to the last day fixed by law for the levy of its school taxes; (ii) when given to any other political subdivision it shall be prior to the first day of January immediately preceding, or if a last day for the adoption of the budget is fixed by law, at least forty-five days prior to such last day; or (2)  Unless the first taxing body shall indicate by appropriate resolution its desire to waive notice requirements in which case the levy of the second taxing body shall become effective on such date as may be agreed upon by the two taxing bodies. It is the intent and purpose of this provision to limit rates of taxes referred to in this section so that the entire burden of one tax on a person, subject, business, transaction or privilege shall not exceed the limitations prescribed in this section: Provided, however, That any two political subdivisions which impose any one of the above taxes, on the same person, subject, business, transaction or privilege during the same year or part of the same year may agree among themselves that, instead of limiting their respective rates to one-half of the maximum rate herein provided, they will impose respectively different rates, the total of which shall not exceed the maximum rate as above permitted. Notwithstanding the provisions of this section, any city of the second class A may enact a tax upon wages, salaries, commissions and other earned income of

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Ch. 49.4

Part III Ch. 23–35 Mortgages Part IV Ch. 36–40 Insurance Part V Ch. 41–48A Zoning, etc. Part VI Ch. 49–56 Taxation Part VII Ch. 57–63 Litigation Part VIII Ch. 64–67 L/T Part IX Ch. 68–72 Condos, etc. Index

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Part II Ch. 15–22 Deeds

785

Part I Ch. 1–14 Brokers

individuals resident therein, not exceeding one percent, even though a school district levies a similar tax on the same person provided that the aggregate of both taxes does not exceed two percent. § 6924.320.   Tax Limitations (a)  Over-all Limit of Tax Revenues.—The aggregate amount of all taxes imposed by any political subdivision under this section and in effect during any fiscal year shall not exceed an amount equal to the product obtained by multiplying the latest total market valuation of real estate in such political subdivision, as determined by the board for the assessment and revision of taxes or any similar board established by the assessment laws which determines market values of real estate within the political subdivision, by twelve mills. In school districts of the second class, third class and fourth class and in any political subdivision within a county where no market values of real estate have been determined by the board for the assessment and revision of taxes, or any similar board, the aggregate amount of all taxes imposed under this section and in effect during any fiscal year shall not exceed an amount equal to the product obtained by multiplying the latest total market valuation of real estate in such school district, or other political subdivision, as certified by the State Tax Equalization Board, by twelve mills. In school districts of the third and fourth class, taxes imposed on sales involving the transfer of real property shall not be included in computing the aggregate amount of taxes for any fiscal year in which one hundred or more new homes or other major improvements on real estate were constructed in the school district. The aggregate amount of all taxes imposed by any independent school district under this section during any fiscal year shall not exceed an amount equal to the product obtained by multiplying the latest total valuation of real estate in such district by fifteen mills. (b)   Reduction of Rates Where Taxes Exceed Limitations; Use of Excess Moneys.—If, during any fiscal year, it shall appear that the aggregate revenues from taxes levied and collected under the authority of this chapter will materially exceed the limitations imposed by this chapter, the political subdivision shall forthwith reduce the rate or rates of such tax or taxes to stay within such limitations as nearly as may be. Any one or more persons liable for the payment of taxes levied and collected under the authority of this chapter shall have the right to complain to the court of common pleas of the county in an action of mandamus to compel compliance with the preceding provision of this subsection. Tax moneys levied and collected in any fiscal year in excess of the limitations imposed by this chapter shall not be expended during such year, but shall be deposited in a separate account in the treasury of the political subdivision for expenditure in the following fiscal year. The rates of taxes imposed under this chapter for the following fiscal year shall be so fixed that the revenues thereby produced, together with the excess tax moneys on deposit as aforesaid, shall not exceed the limitations imposed by this chapter. (c)  Domicile.—An individual who does not meet the domicile requirements for the purpose of determining and paying the tax provided under Article III of the act of March 4, 1971 (P.L.6, No.2), known as the “Tax Reform Code of 1971,” shall be deemed to not meet the domicile requirements for local tax purposes. (d)   Local Tax Limitations.—The calculation of the aggregate amount of all taxes imposed under this section shall not include the following: (1)   Any revenues derived from a tax rate in excess of the tax rates authorized under this chapter which is levied under the act of July 10, 1987 (P.L.246, No.47), known as the “Municipalities Financial Recovery Act,” or the act of December 18, 1984 (P.L.1005, No.205), known as the “Municipal Pension Plan Funding Standard and Recovery Act.” (2)   Any revenues derived from the levy of a tax by a home rule municipality in compliance with 53 Pa.C.S. § 2962(b) (relating to limitation on municipal powers).

Table of Contents

PART VI

12/22/21 10:45 AM

CHAPTER 50 GENERAL COUNTY ASSESSMENT LAW 72 P.S. § 5020-1 to 72 P.S. § 5020-602

Sec. § § § § § § § § § § § § § § § § § § § § § § § § § § § § § § § § § § § § § § § § § § § § § § § § § § §

1. Consolidation of assessment laws 101. Short title; effective date 102. Definitions 103. Excluded provisions 104. Application of act 105. Saving clause; construction 106. Constitutional construction 201. Subjects of taxation enumerated 202. Occupation tax in counties of the second class and third class abolished; optional in other counties 203. Repealed 203.1. Limitation upon taxation 203.2. Limitation on rates of specific taxes 203.3. Prohibition on certain levies 204. Exemptions from taxation 205. Temporary tax exemption for residential construction 206. Temporary assessment change for real estate subject to a sewer connection ban order 301. Election of assessors 302. Oath of assessors 303. Filing of assessor’s oath 304. Vacancies in the office of assessor 305. Compensation of assessors except in first-class townships 306. Compensation and expenses of assessors and assistants in first-class townships 307. Fixing amount of compensation and expenses in first-class townships; payment 308. Mileage 309. Interpreters 310. Penalty for refusing to serve; exception 401. Issuing of precepts and return of assessments in triennial years 402. Valuation of property 402.1. Valuation of mobilehomes or house trailers 403. List of taxables 404. Assessment of persons in counties that do not levy occupation taxes 405. Return of exempt property 406. Real estate omitted from triennial assessment 407. Conveyances; assessment; mobilehouse courts, owner, removal permits, penalty 408. Conveyances; charge, abstract; assessments 409. Persons acquiring unseated lands to furnish statement to county commissioners 410. Assessment of unseated lands 411. Assessment of seated lands divided by county lines 412. Assessment of seated lands divided by township lines 413. Assessment where township line passes through mansion house 414. Assessment of coal underlying lands divided by county, township or borough lines 415. Separate assessment of coal and surface 416. Assessing real estate subject to ground rent, dower, or mortgage 417. Assessment of property of decedents’ estates 418. Returns of timber lands 419. Assessment of auxiliary forest reserves 420. Assessment for county and poor purposes where lands in one county are annexed to a borough in another county 421. Assessment for borough and school purposes where lands in one county are annexed to a borough in another county 422. Borough ward assessors to act as board 431. Issuing of precepts and return of assessments in inter-triennial years 432. Inter-Triennial Assessments

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Part V Ch. 41–48A Zoning, etc. Part VI Ch. 49–56 Taxation Part VII Ch. 57–63 Litigation Part VIII Ch. 64–67 L/T Part IX Ch. 68–72 Condos, etc.

§ 1.  Consolidation of assessment laws The laws designating the subjects, property and persons subject to and exempt from taxation for county, city, borough, town, township, school and poor purposes, and for the assessment of persons, property and subjects of taxation for county purposes, and for boroughs, towns, townships, school districts and poor districts which levy their taxes on county assessments, are hereby amended, revised and consolidated as follows: § 101.  Short title; effective date This act1 shall be known, and may be cited, as “The General County Assessment Law.” This act shall become effective immediately upon final enactment. § 102.  Definitions The following words and phrases shall, for the purpose of this act, have the meanings respectively ascribed to them in this section, except where the context clearly indicates a different meaning: “Assessors” and “elected assessors” shall mean the assessors for county tax purposes elected in wards, boroughs, towns and townships in counties of the fourth, fifth, sixth, seventh and eighth classes.

Part IV Ch. 36–40 Insurance

§ § § § § §

Part III Ch. 23–35 Mortgages

§ § §

441. Persons removing into district; property transferred or omitted 451. Penalty on assessors for failure to assess and for making incorrect assessments 452. Penalty on assessor for failure to perform duty 453. Penalty on county commissioners for failure to perform duty 501. Commissioners to constitute board of revision; oath 502. Publication of statement showing aggregate assessments, et cetera 503. Revision at time of appeals 504. Right of taxables to examine returns 505. Making revisions 505.1. Errors in assessments and refunds 506. Employment of assistants in counties of the fourth class 507. Transcript of assessments, statement of rate, and day for appeal sent to assessors 508. Notice of assessment, rate, and appeal 509. Publication of notice of appeal 510. Notice of appeals in inter-triennial years 511. Board of revision to hear and pass on appeals 512. Assessors to attend appeals 513. Place of holding appeals 514. Assessments regulated; duplicates 514.1. Notice of changes given to taxing authorities 515. Duplicates to be furnished school districts of third and fourth classes 516. Duplicates to be furnished townships of the first and second classes and boroughs 517. Hearing appeals subsequent to time fixed 518. Repealed 518.1. Appeal to court from assessments; collection pending appeal; payment into court; refunds 518.2. Appeals to court 519. Appeals to Supreme or Superior Courts 520. Appeals by municipalities 521. Payment to tax district pending appeal 601. Repealer 602. Acts saved from repeal

Part II Ch. 15–22 Deeds

§ § § § § § § § § §

Ch. 50

Part I Ch. 1–14 Brokers

§ § § § § § § § § § § §

REAL ESTATE TAXATION

Table of Contents

PART VI

1. 72 P.S. § 5020-101 et seq.

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Index

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§ 103

GENERAL COUNTY ASSESSMENT LAW

“Appointed assessors” shall mean the assessors appointed by the board of revision of taxes in counties of the first class, and the subordinate assessors appointed by the board for the assessment and revision of taxes in counties of the second, second A and third classes. “Base year” shall mean the year upon which real property market values are based for the most recent county-wide revision of assessment of real property, or other prior year upon which the market value of all real property of the county is based. Real property market values shall be equalized within the county and any changes by the board of revision of taxes or board for the assessment and revision of taxes shall be expressed in terms of such base year values. “Board of revision of taxes” shall mean the board of revision of taxes in counties of the first class. “Board for the assessment and revision of taxes” shall mean the board for the assessment and revision of taxes in counties of the second, second A and third classes. “Common level ratio” shall mean the ratio of assessed value to current market value used generally in the county as last determined by the State Tax Equalization Board pursuant to the act of June 27, 1947 (P.L. 1046, No. 447), referred to as the State Tax Equalization Board Law.2 “County commissioners” means the board of county commissioners or other similar body in home rule charter counties. “Established predetermined ratio” shall mean the ratio of assessed value to market value established by the board of county commissioners and uniformly applied in determining assessed value in any year § 103.  Excluded provisions This act does not include any provisions, and shall not be construed to repeal: (1)   The act approved the seventeenth day of June, one thousand nine hundred and thirteen (Pamphlet Laws, five hundred seven),3 entitled “An act to provide revenue for State and county purposes, and, in cities co-extensive with counties, for city and county purposes; imposing taxes upon certain classes of personal property; providing for the assessment and collection of the same; providing for the duties and compensation of prothonotaries and recorders in connection therewith; and modifying existing legislation which provided for raising revenue for State purposes,” or any of its amendments; (2)  Except where specifically referred to in this act, the laws relating to boards of revision of taxes, or boards for the assessment and revision of taxes, in counties of the first, second and third classes; (3)  Except where specifically referred to in this act, the laws relating to cities, boroughs, towns, townships, school districts and poor districts. § 104.  Application of act Except as otherwise in this act specifically limited, this act shall apply in all of the counties of the Commonwealth. § 105.  Saving clause; construction The provisions of this act so far as they are the same as those of existing laws are intended as a continuation of such laws, and not as new enactments. The repeal by this act of any act of Assembly, or part thereof, shall not revive any act, or part thereof, heretofore repealed or superseded. 2. 72 P.S. § 4656.1 et seq. 3. 72 P.S. § 4821 et seq.

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REAL ESTATE TAXATION

Ch. 50

§ 201.  Subjects of taxation enumerated

Part IX Ch. 68–72 Condos, etc. Index

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Part VIII Ch. 64–67 L/T

789

Part VII Ch. 57–63 Litigation

(a)   All real estate, to wit: Houses, house trailers and mobilehomes buildings permanently attached to land or connected with water, gas, electric or sewage facilities, buildings, lands, lots of ground and ground rents, trailer parks and parking lots, mills and manufactories of all kinds, furnaces, forges, bloomeries, distilleries, sugar houses, malt houses, breweries, tan yards, fisheries, and ferries, wharves, all office type construction of whatever kind, that portion of a steel, lead, aluminum or like melting and continuous casting structures which enclose, provide shelter or protection from the elements for the various machinery, tools, appliances, equipment, materials or products involved in the mill, mine, manufactory or industrial process, and all other real estate not exempt by law from taxation. Machinery, tools, appliances and other equipment contained in any mill, mine, manufactory or industrial establishment shall not be considered or included as a part of the real estate in determining the value of such mill, mine, manufactory or industrial establishment. No office type construction of whatever kind shall be excluded from taxation but shall be considered a part of real property subject to taxation. That portion of a steel, lead, aluminum or like melting and continuous casting structure which encloses, provides shelter or protection from the elements for the various machinery, tools, appliances, equipment, materials or products involved in the mill, mine, manufactory or industrial process shall be considered as part of real property subject to taxation. No silo used predominantly for processing or storage of animal feed incidental to operation of the farm on which it is located, no free-standing detachable grain bin or corn crib used

Part VI Ch. 49–56 Taxation

The following subjects and property shall, as hereinafter provided, be valued and assessed, and subject to taxation for all county, city, borough, town, township, school and poor purposes at the annual rate:

Part V Ch. 41–48A Zoning, etc.

The provisions of this act shall be severable, and if any of the provisions shall be held to be unconstitutional, such decision shall not affect the validity of any of the remaining provisions of this act. It is hereby declared as the legislative intent that this act would have been adopted had such unconstitutional provision not been included therein.

Part IV Ch. 36–40 Insurance

§ 106.  Constitutional construction

Part III Ch. 23–35 Mortgages

The provisions of this act shall not affect any act done, liability incurred, or right accrued or vested, or affect any suit, proceeding or prosecution pending or to be instituted to enforce any right or penalty or punish any offense under the authority of any act of Assembly repealed by this act. Any person holding office under any act of Assembly repealed by this act shall continue to hold such office until the expiration of the term thereof, subject to the conditions attached to such office prior to the passage of this act.

Part II Ch. 15–22 Deeds

Whenever the provisions of this act are inconsistent with any law relating to or administered by any board of revision of taxes, or board for the assessment and revision of taxes, in counties of the first, second or third class, the laws relating to and administered by such boards, and not included in this act, shall apply, and the inconsistent provisions of this act shall not apply to such classes of counties, but shall be in full force as to all other classes of counties, except as affected by local laws.

Part I Ch. 1–14 Brokers

All local acts of Assembly applying to particular counties or political subdivisions thereof, and not heretofore repealed, shall continue in force, and any provisions of this act inconsistent therewith shall not apply to the counties or political subdivisions thereof affected by such local laws. The reenactment by this act of any act of Assembly, or part thereof, that has heretofore been repealed by any local act of Assembly, in so far as it applied to a particular county or political subdivision thereof, shall not revive or extend the provisions so reënacted to such county or political subdivision thereof.

Table of Contents

PART VI

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§ 201

GENERAL COUNTY ASSESSMENT LAW

exclusively for processing or storage of animal feed incidental to the operation of the farm on which it is located and no in-ground and above- ground structures and containments used predominantly for processing and storage of animal waste and composting facilities incidental to operation of the farm on which the structures and containments are located, shall be included in determining the value of real estate used predominantly as a farm: Provided, That for the tax or fiscal year beginning on or after the first day of January, one thousand nine hundred fifty-eight, eighty per centum of the assessed value of any such machinery, tools, appliances and other equipment located in counties of the second class as well as in all cities of the third class, boroughs, townships, school districts of the second, third and fourth class, and institutional districts in counties of the second class, shall be considered and included in determining the value of such mill, mine, manufactory or industrial establishment: Provided further, That for the tax or fiscal year beginning on or after the first day of January, one thousand nine hundred fifty-nine, sixty per centum of the assessed value of any such machinery, tools, appliances and other equipment located in said political subdivisions, shall be considered and included in determining the value of such mill, mine, manufactory or industrial establishment: Provided further, That for the tax or fiscal year beginning on or after the first day of January, one thousand nine hundred sixty, forty per centum of the assessed value of any such machinery, tools, appliances and other equipment located in said political subdivisions, shall be considered and included in determining the value of such mill, mine, manufactory or industrial establishment: Provided further, That for the tax or fiscal year beginning on or after the first day of January, one thousand nine hundred sixty-one, twenty per centum of the assessed value of any such machinery, tools, appliances and other equipment located in said political subdivisions, shall be considered and included in determining the value of such mill, mine, manufactory or industrial establishment: Provided further, That for the tax or fiscal years beginning on or after the first day of January, one thousand nine hundred sixty-two, no portion of the value of any such machinery, tools, appliances and other equipment regardless of where located, shall be considered and included in determining the value of such mill, mine, manufactory or industrial establishment: Provided further, That nothing contained in this section of this act shall be construed as an intent to provide for the valuing and assessing and subjecting to taxation for purposes of any city of the second class or any school district of the first class A any such machinery, tools, appliances and other equipment: And provided further, That such exclusion of silos used predominantly for processing or storage of animal feed incidental to operation of the farm on which the silo is located shall be included in determining the value of real estate used predominantly as a farm shall become effective for taxes to be levied for the tax or fiscal year beginning on or after the first day of January, one thousand nine hundred seventy-four: And provided further, That such exclusion of free-standing detachable grain bins and corn cribs used exclusively for processing or storage of animal feed incidental to operation of the farm on which the grain bin or corn crib is located shall become effective in determining the value of real estate used predominantly as a farm for taxes to be levied for the tax or fiscal year beginning on or after the first day of January, one thousand nine hundred eighty-five. No amusement park rides shall be assessed or taxed as real estate regardless of whether they have become affixed to the real estate. (b)   All salaries and emoluments of office, all offices, and posts of profit, professions, trades and occupations, except the occupation of farmer, and all persons over the age of eighteen years who do not follow any occupation or calling, as well of unnaturalized foreign-born persons who shall have resided within this Commonwealth for one whole year, as citizens of this Commonwealth: Provided, That whenever a person, other than a Federal employe, not taxable under the provision of this clause, is disfranchised from voting because he cannot be lawfully

790

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REAL ESTATE TAXATION

Ch. 50

§ 202.  Occupation tax in counties of the second class and third class abolished; optional in other counties

Part II Ch. 15–22 Deeds

(c)  All other things and persons now taxable by the laws of this Commonwealth for county, city and school purposes.

Part I Ch. 1–14 Brokers

assessed for a county or State tax, it shall be lawful for the county commissioners to assess the occupation of such persons for county taxation purposes, in the manner provided by this act for such assessments. The provisions of this clause shall not apply to counties of the second and third class, or to any other county, the county commissioners of which shall by resolution determine not to levy a tax on trades, occupations, professions and persons who follow no occupation or calling, nor shall the provisions of this clause apply to cities of the second and second A class, or to school districts.

Table of Contents

PART VI

Part III Ch. 23–35 Mortgages

§ 203.  Repealed. 1965, Dec. 22, P.L. 1143, No. 440, § 1 § 203.1.  Limitation upon taxation A mobilehome or house trailer upon which a real property tax is levied as provided by law shall not be subject to any tax not levied on other real property in the political subdivision, except that such property shall be deemed tangible personal property with respect to the act of March 6, 1956 (P.L. 1228), known as the “Selective Sales and Use Tax Act”.4 § 203.2.  Limitation on rates of specific taxes No taxes levied under the provisions of this act or 53 Pa.C.S. § 8402(c) (relating to scope and limitations) shall be levied by any political subdivision on admissions to automobile racing facilities with a seating capacity of over twenty-five thousand and a continuous race area of one mile or more in excess of the per centum collected as of January 1, 2002. The tax base upon which the tax shall be levied shall not exceed forty per centum of the cost of admission to an automobile racing facility. § 203.3.  Prohibition on certain levies Notwithstanding the provisions of this act, the act of December 31, 1965 (P.L. 1257, No. 511),5 known as “The Local Tax Enabling Act,” or 53 Pa.C.S. § 8402(c) (relating to scope and limitations), no political subdivision shall levy, assess or collect a tax on admissions to ski facilities after December 1, 2002. § 204.  Exemptions from taxation (a)  The following property shall be exempt from all county, city, borough, town, township, road, poor and school tax, to wit: (1)   All churches, meeting-houses, or other actual places of regularly stated religious worship, with the ground thereto annexed necessary for the occupancy and enjoyment of the same; (2)   All actual places of burial, including burial grounds and all mausoleums, vaults, crypts or structures intended to hold or contain the bodies of the dead, when used or held by a person or organization deriving no private or corporate profit therefrom and no substantial part of whose activity consists of selling personal property in connection therewith;

Part IV Ch. 36–40 Insurance Part VIII Ch. 64–67 L/T Part IX Ch. 68–72 Condos, etc. Index

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Part VII Ch. 57–63 Litigation

791

Part VI Ch. 49–56 Taxation

4. 72 P.S. § 3403-1 et seq. 5. 53 P.S. § 6901 et seq.

Part V Ch. 41–48A Zoning, etc.

In counties of the second and third class, the county tax on trades, occupations and professions is hereby abolished. In all other counties, except counties of the first class, the county commissioners may by resolution determine not to levy a tax on trades, occupations, professions and persons who follow no occupation or calling. Such action may at any time, and in like manner, be repealed and such tax be levied as theretofore.

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§ 204

GENERAL COUNTY ASSESSMENT LAW

(3)   All hospitals, universities, colleges, seminaries, academies, associations and institutions of learning, benevolence, or charity, including fire and rescue stations, with the grounds thereto annexed and necessary for the occupancy and enjoyment of the same, founded, endowed, and maintained by public or private charity: Provided, That the entire revenue derived by the same be applied to the support and to increase the efficiency and facilities thereof, the repair and the necessary increase of grounds and buildings thereof, and for no other purpose: And provided further, That any charitable organization providing residential housing services in which the charitable nonprofit organization receives subsidies for at least ninety-five per centum of the residential housing units from a low-income Federal housing program shall remain a “purely public charity” and tax exempt provided that any surplus from such assistance or subsidy is monitored by the appropriate governmental agency and used solely to advance common charitable purposes within the charitable organization; (4)  All schoolhouses belonging to any county, borough or school district, with the ground thereto annexed and necessary for the occupancy and enjoyment of the same, except that there shall be no exemption for grading, paving, curbing, macadamizing, maintenance, or improvement of streets or roads and constructing sewers and sidewalks and other municipal improvements abutting land owned by a school district other than any school district of the first class or first class A or school district of the second, third or fourth class which is coterminous with a city, borough, town or township, except that any such school district of the second, third or fourth class coterminous with a city, borough, town or township may agree to pay all or part of any such assessments or charges; (5)   All courthouses, jails and poorhouses, with the ground thereto annexed and necessary for the occupancy and enjoyment of the same; (6)   All public parks when owned and held by trustees for the benefit of the public, and used for amusements, recreation, sports and other public purposes without profit; (7)  All other public property used for public purposes, with the ground thereto annexed and necessary for the occupancy and enjoyment of the same, but this shall not be construed to include property otherwise taxable which is owned or held by an agency of the Government of the United States nor shall this act or any other act be construed to exempt from taxation any privilege, act or transaction conducted upon public property by persons or entities which would be taxable if conducted upon nonpublic property regardless of the purpose or purposes for which such activity occurs, even if conducted as agent for or lessee of any public authority; (8)   All real and personal property owned, occupied, and used by any branch, post or camp of honorably discharged servicemen or servicewomen and actually and regularly used for benevolent, charitable or patriotic purposes; (9)  All real property owned by one or more institutions of purely public charity, used and occupied partly by such owner or owners and partly by other institutions of purely public charity, and necessary for the occupancy and enjoyment of such institutions so using it; (10)   All playgrounds, with the equipments and grounds thereto annexed, necessary for the occupancy and enjoyment of the same, founded, endowed, or maintained by public or private charity, which apply their revenue to the support and repair of such playgrounds and to increase the efficiency and facilities thereof, either in ground or buildings, or otherwise, and for no other purpose, and owned, leased, possessed, or controlled by public school boards or properly organized and duly constituted playground associations, and approved and accepted by the board of county commissioners, or board

792

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REAL ESTATE TAXATION

Ch. 50

Part III Ch. 23–35 Mortgages Part IV Ch. 36–40 Insurance Part V Ch. 41–48A Zoning, etc. Part VI Ch. 49–56 Taxation Part VII Ch. 57–63 Litigation Part VIII Ch. 64–67 L/T Part IX Ch. 68–72 Condos, etc. Index

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Part II Ch. 15–22 Deeds

793

Part I Ch. 1–14 Brokers

of revision of taxes, of the county in which said playgrounds are situated as such playgrounds; (11)   All buildings owned and occupied by free, public, nonsectarian libraries, and the land on which they stand and that which is immediately and necessarily appurtenant thereto, notwithstanding the fact that some portion or portions of said building or lands appurtenant may be yielding rentals to the corporation or association managing such library: Provided, That the net receipts of such corporation or association from rentals shall be used solely for the purpose of maintaining the said library; (12)  All property, including buildings and the land reasonably necessary thereto, provided and maintained by public or private charity, and used exclusively for public libraries, museums, art galleries, or concert music halls, and not used for private or corporate profit, so long as the said public use continues: Provided, however, That in the case of concert music halls used partly for exempt purposes and partly for non-exempt purposes, that part measured either in area or in time, whichever is the lesser, which is used for non-exempt purposes, shall be valued, assessed and subject to taxation; (13)  All fire and rescue stations which are founded, endowed and maintained by public or private charity, together with the grounds thereto annexed and necessary for the occupancy and enjoyment of the same, and social halls and grounds owned and occupied by fire and rescue stations, used on a regular basis for activities which contribute to the support of fire and rescue stations: Provided, That the net receipts from such activities are used solely for the charitable purposes of the fire and rescue stations. (b)   Except as otherwise provided in clauses (11) and (13) of this section, all property real or personal, other than that which is actually and regularly used and occupied for the purposes specified in this section, and all such property from which any income or revenue is derived, other than from recipients of the bounty of the institution or charity, shall be subject to taxation, except where exempted by law for State purposes, and nothing herein contained shall exempt same therefrom. (c)   Except as otherwise provided in clause (10) of this section, all property, real and personal, actually and regularly used and occupied for the purposes specified in this section shall be subject to taxation, unless the person or persons, associations or corporation, so using and occupying the same, shall be seized of the legal or equitable title in the realty and possessor of the personal property absolutely. (d)   Each county, city, borough, incorporated town, township and school district may, by ordinance or resolution, exempt any person whose total income from all sources is less than five thousand dollars ($5,000), per annum from its per capita, or similar head tax, occupation tax and occupational privilege tax or any portion thereof. Each taxing authority may adopt regulations for the processing of claims for the exemption. § 205.  Temporary tax exemption for residential construction (a)   As used in this section, the word “dwellings” means buildings or portions thereof intended for permanent use as homes or residences. (b)  New single and multiple dwellings constructed for residential purposes and improvements to existing unoccupied dwellings or improvements to existing structures for purposes of conversion to dwellings, shall not be valued or assessed for purposes of real property taxes until (1) occupied, (2) conveyed to a bona fide purchaser or, (3) thirty months from the first day of the month after which the building permit was issued or, if no building permit or other notification of improvement was required, then from the date construction commenced. The assessment of any multiple dwelling because of occupancy shall be upon

Table of Contents

PART VI

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§ 206

GENERAL COUNTY ASSESSMENT LAW

such proportion which the value of the occupied portion bears to the value of the entire multiple dwelling. § 206.  Temporary assessment change for real estate subject to a sewer connection ban order When a department or agency of the Commonwealth or a municipality has ordered a sewer connection ban because of a lack of adequate sewage treatment facilities, the real estate affected by the order shall be reassessed for the duration of the order. The reassessment shall be based on the value of the best use of the land during the period of the reassessment. For the purposes of this section, the phrase “affected by the order” shall be defined as the application for a building permit and the denial to the applicant of permission to proceed with the building or construction because of a sewer ban order. § 301.  Election of assessors The qualified voters of each ward in cities of the third class shall, at the municipal election in the year one thousand nine hundred and thirty-five, and every four years thereafter, vote for and elect a properly qualified person, according to law, to act as county assessor in each of said wards under the provisions of this act, who shall serve for four years. All county assessors in boroughs, towns, townships and wards thereof shall be elected at the times and for the terms prescribed by existing laws. This section does not apply in counties of the first, second and third classes where assessors, under existing law, are appointed. § 302.  Oath of assessors The elected and appointed assessors of the several wards, townships, towns, boroughs and districts, and, in townships of the first class, also the assistant township assessors and assistant triennial assessors, shall, immediately on the receipt of the precept from the county commissioners, or board of revision of taxes, or board for the assessment and revision of taxes, and before entering upon the duties of their office, take and subscribe the following oath or affirmation: You do (swear or affirm) that you will support the Constitution of the United States and the Constitution of Pennsylvania, that you will, as assessor for (ward, district, borough, town or township), use your utmost diligence and ability to discover and ascertain all the property, real and personal, within your (ward, district, borough, town or township), and all other objects subject to taxation by the laws of this Commonwealth, and take an accurate account of the same; and that you will justly and honestly, to the best of your judgment, assess and value every separate lot, piece or tract of land, with the improvements thereon, and all personal property made taxable by the laws of this Commonwealth, within your (ward, district, borough, town or township), at the rate or price which you shall, after due examination and consideration, believe the same would sell for if sold singly and separately at a bona fide sale, after full public notice; and that you will assess all persons according to their correct offices and posts of profit, trades and occupations; and that you will perform your duty as assessor of said (ward, district or township) with honesty and fidelity, according to the laws of this Commonwealth, without fear, favor or affection, hatred, malice or ill will. § 303.  Filing of assessor’s oath It shall be the duty of each elected and appointed assessor and assistant township and triennial assessor to produce to the commissioners, or board of revision of taxes, or board for the assessment and revision of taxes, of the county, within twenty days after his election or appointment, a copy of the oath or affirmation taken and subscribed by him as is hereinbefore directed, and attested by the person before whom the same was administered, which shall be filed by the commissioners, or said boards, in their respective office.

794

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REAL ESTATE TAXATION

Ch. 50

Table of Contents

PART VI

§ 304.  Vacancies in the office of assessor

Index

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Part IX Ch. 68–72 Condos, etc.

795

Part VIII Ch. 64–67 L/T

The said township assessors and assistant township assessors and assistant triennial assessors shall make return, on oath or affirmation, to the county commissioners of the proper county, of the number of days actually employed by them in the performance of the duties of their office, and of amounts expended for postage, stationery, and office rent; and the county commissioners are hereby empowered to summon the respective township assessors and assistant township assessors and assistant triennial assessors before them, and examine them, upon oath or affirmation, as to the accuracy of the said return. When the county commissioners shall have determined, either from the returns of the township

Part VII Ch. 57–63 Litigation

§ 307.  Fixing amount of compensation and expenses in first-class townships; payment

Part VI Ch. 49–56 Taxation

In counties of the fourth, fifth, sixth, seventh and eighth classes, the township assessor and the assistant township assessor in each township of the first class shall receive, as compensation for his services, ten ($10.00) dollars per diem for each day actually employed by him in the performance of the duties of his office, both in making the triennial assessment and in making the supplemental assessments in the intervening years between the years of the triennial assessment; the said compensation to be paid by the county as heretofore. The compensation of the assistant triennial assessors in the said townships of the first class shall be five ($5.00) dollars per diem for each day actually employed by them, respectively, in the performance of the duties of their office, to be paid by the county as heretofore. In addition to the compensation hereinbefore provided, the township assessors, assistant township assessors, and assistant triennial assessors of firstclass townships shall be reimbursed by the county for any expenditures made for postage or stationery necessarily used in the performance of their duties and for any necessary office rent.

Part V Ch. 41–48A Zoning, etc.

§ 306.  Compensation and expenses of assessors and assistants in firstclass townships

Part IV Ch. 36–40 Insurance

In counties of the fourth, fifth, sixth, seventh and eighth classes each elected assessor for county purposes, in cities of the third class, boroughs, towns and townships of the second class, shall keep an account of the several days by him actually employed in the performance of his duties, and shall make return of the same to the commissioners of the county, verified by his oath or affirmation, and, for each day necessarily so employed, he shall receive: In cities of the third class, such compensation as shall be fixed by the county commissioners; in boroughs and townships of the second class, the sum of five dollars; and in town the same compensation as is now received by assessors in towns.

Part III Ch. 23–35 Mortgages

§ 305.  Compensation of assessors except in first-class townships

Part II Ch. 15–22 Deeds

If the electors of any ward, borough, town or township shall fail to choose an assessor, or, in townships of the first class, an assistant township assessor or assistant triennial assessor, at the time appointed by law, or if any person elected to such office shall neglect or refuse to serve therein, or if any vacancy shall happen therein by death or otherwise, the commissioners of the county shall appoint a fit person to fill the office, who shall serve until the expiration of the then current term of such officer, and who shall have the same powers, be subject to the same penalties, and receive the same compensation, as if he had been elected to such office.

Part I Ch. 1–14 Brokers

Whenever an elected assessor, or, in townships of the first class, an assessor, assistant township assessor or assistant triennial assessor, refuses or neglects to qualify as required by law, or refuses or neglects to receive the precept and books for the triennial or other assessment, the county commissioners are hereby authorized to appoint a suitable person to serve as assessor on the eighth day after the time designated by this act to begin the assessment.

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§ 308

GENERAL COUNTY ASSESSMENT LAW

assessors and assistant township assessors and assistant triennial assessors, or from their examination of them as aforesaid, the number of days actually employed by them and the amount of moneys properly and necessarily expended for postage, stationery, and office rent, clerk hire and other expenses, the county commissioners shall make payment to the aforesaid township assessors, assistant township assessors and assistant triennial assessors the amount due them from the funds of the county as hereinbefore stated. § 308.  Mileage Whenever any elected assessor, or, in townships of the first class, any assessor, assistant township assessor or assistant triennial assessor, whose duties pertain to making assessments for purposes of county taxation, shall be required to travel to the county seat of his county, or to any place of sitting of the county commissioners elsewhere than at the county seat, he shall receive from the county mileage at the rate of three cents a mile for each mile necessarily traveled, both going and returning, in addition to the per diem compensation for services allowed by this act. § 309.  Interpreters In counties of the fourth, fifth, sixth, seventh and eighth classes, county commissioners may appoint interpreters to act as such for assessors, or, in townships of the first class, for assessors, assistant township assessors or assistant triennial assessors. Such interpreters may be assigned by the county commissioners to assist any assessor or assistant assessor, and shall accompany him to his district at and for such time as the commissioners may designate. Such interpreters shall, on behalf of such assessor or assistant assessor, and under his direction and control, administer oaths, and interrogate any taxable concerning name, occupation, residence, and property of said taxable. The number of said interpreters, so appointed, shall be within the discretion of the county commissioners, provided not more than one interpreter be employed to a district, and in no event shall any interpreter be employed for a greater length of time than ten days in any one district. The compensation for any interpreter appointed under the provisions of this act shall be two dollars and fifty cents per day, and traveling expenses, payable, upon warrant of the county commissioners, out of the county treasury. § 310.  Penalty for refusing to serve; exception If any elected assessor refuses to serve he shall forfeit and pay the sum of twenty dollars, to be recovered before a justice of the peace or alderman, at the suit of the commissioners, as debts of similar amount are now recoverable: Provided, That no person who shall have served as collector or assessor shall be appointed or chosen for a second term without his consent for the term of ten years. § 401.  Issuing of precepts and return of assessments in triennial years (a)  In counties of the first class, the precepts to make annual assessments shall be issued to the appointed assessors by the board of revision of taxes, and return thereof made as provided by existing law relating to the board of revision of taxes in said counties; (b)   In counties of the second class, the precepts to make triennial assessments shall be issued to the appointed assessors by the board for the assessment and revision of taxes at such time as the board may prescribe, and return thereof be made on or before the first Monday of November as provided by existing law relating to the board for the assessment and revision of taxes in said counties; (c)  In counties of the second A and third class, the precepts to make triennial assessments shall be issued to the appointed assessors by the board for the assessment and revision of taxes, and return thereof made at such times as the

796

gtb-parealestate22-all.indb 796

12/22/21 10:45 AM

REAL ESTATE TAXATION

Ch. 50

Part III Ch. 23–35 Mortgages Part IV Ch. 36–40 Insurance Part V Ch. 41–48A Zoning, etc. Part VI Ch. 49–56 Taxation Part VII Ch. 57–63 Litigation Part VIII Ch. 64–67 L/T Part IX Ch. 68–72 Condos, etc. Index

gtb-parealestate22-all.indb 797

Part II Ch. 15–22 Deeds

797

Part I Ch. 1–14 Brokers

board shall determine in accordance with existing law relating to the board for the assessment and revision of taxes in said counties; (d)   In counties of the fourth class, the county commissioners shall issue the precepts to make triennial assessments to the elected assessors of their respective townships, towns, boroughs and wards on or before the first day of June, and the assessors are hereby required to complete the said assessment and make their return not later than the first day of September, one thousand nine hundred and thirty-three, and triennially thereafter; (e)   In counties of the fifth, sixth, seventh and eighth classes, the county commissioners shall issue the precepts to make triennial assessments to the assessors of the respective townships of the second class, towns, boroughs and wards on or before the second Monday of September, and, to assessors in townships of the first class, on or before the first day of July, and the assessors are hereby required to complete the said assessment and make their return not later than the thirty-first day of December, one thousand nine hundred and thirty-three, and triennially thereafter: Provided, That the county commissioners of said counties may, at the time of issuing their precepts, direct the return thereof to be made at any time before the thirty-first day of December: Provided further, That where assessors in townships of the first class shall have been continuously engaged in the actual performance of their duties after the delivery of the precepts to them, except where prevented by sickness or stress of weather, and are not able to complete the triennial assessment and make return thereof on or before the thirty-first day of December, it shall be lawful for the said assessors to continue the performance of their duties and to make return of their assessment to the county commissioners after said date, but in no case shall any such return be made later than the fifteenth day of February of the year following the delivery of the precepts to the assessors. § 402.  Valuation of property (a)   It shall be the duty of the several elected and appointed assessors, and, in townships of the first class, of the assessors, assistant township assessors and assistant triennial assessors, to rate and value all objects of taxation, whether for county, city, township, town, school, institution district, poor or borough purposes, according to the actual value thereof, and at such rates and prices for which the same would separately bona fide sell. In arriving at actual value the county may utilize either the current market value or it may adopt a base year market value. In arriving at such value the price at which any property may actually have been sold either in the base year or in the current taxable year, shall be considered but shall not be controlling. Instead such selling price, estimated or actual, shall be subject to revision by increase or decrease to accomplish equalization with other similar property within the taxing district. In arriving at the actual value, all three methods, namely, cost (reproduction or replacement, as applicable, less depreciation and all forms of obsolescence), comparable sales and income approaches, must be considered in conjunction with one another. Except in counties of the first class, no political subdivision shall levy real estate taxes on a county-wide revised assessment of real property until it has been completed for the entire county. (a.1)   The board of county commissioners shall establish and determine, after proper notice has been given, an established predetermined ratio of assessed value to actual value which may not exceed one hundred per centum (100%) of actual value. The commissioners, acting as a board of revision of taxes, or board for the assessments and revision of taxes shall apply the established predetermined ratio to the actual value of all real property to formulate the assessment roll. (b)(1)  Except as to counties of the first and second class, after any county makes a county-wide revision of assessment of real property at values based

Table of Contents

PART VI

12/22/21 10:45 AM

§ 402.1 GENERAL COUNTY ASSESSMENT LAW upon an established predetermined ratio as required by law or after any county changes its established predetermined ratio, each political subdivision, which hereafter for the first time levies its real estate taxes on that revised assessment or valuation, shall, for the first year, reduce its tax rate, if necessary, for the purpose of having the total amount of taxes levied for that year against the real properties contained in the duplicate for the preceding year, equal, in the case of any taxing district, the total amount it levied on such properties the preceding year, notwithstanding the increased valuations of such properties under the revised assessment. The tax rate shall be fixed at a figure which will accomplish this purpose. (2)  After establishing a tax rate under clause (1), a political subdivision may, by a separate and specific vote, establish a final tax rate for the first year it levies its real estate taxes on a revised assessment or valuation. The tax rate under this clause shall be fixed at a figure which limits the total amount of taxes levied for that year against the real properties contained in the duplicate for the preceding year to not more than ten per centum greater than the total amount it levied on such properties the preceding year, notwithstanding the increased valuations of such properties under the revised assessment. (3)   For the purpose of determining the total amount of taxes to be levied for said first year under clauses (1) and (2), the amount to be levied on newly constructed buildings or structures or on increased valuations based on new improvements made to existing houses need not be considered. (4)   With the approval of the court of common pleas, upon good cause shown, any such political subdivision may increase the tax rate herein prescribed, notwithstanding the provisions of this subsection. (c)(1)   In arriving at the actual value of real property, the impact of applicable rent restrictions, affordability requirements or any other related restrictions prescribed by any Federal or State programs shall be considered. (2)   Federal or State income tax credits with respect to property shall not be considered real property or income attributable to real property. (3)   This subsection shall apply in all counties and other political subdivisions in this Commonwealth. § 402.1.  Valuation of mobilehomes or house trailers It shall be the duty of the several elected and appointed assessors of the political subdivisions to assess, rate and value all mobilehomes and house trailers within their subdivisions according to the actual value thereof and prices for which the same would separately bona fide sell. The land upon which such mobilehome or house trailer is located at the time of assessment shall be valued separately, and shall not include the value of the house trailer or mobilehome located thereon. § 403.  List of taxables The elected and appointed assessors of the several counties shall, in each year, make a return to the county commissioners, or board of revision of taxes, or board for the assessment and revision of taxes, of all the taxable inhabitants within their respective wards, boroughs, towns, townships and districts, which return shall state the names and surnames and the address of each of such taxable inhabitants, stating the occupation and the street and number of the house in which such inhabitant resides. In all cases where such taxable inhabitant resides in a house not having a street and number address, the name of the owner of the house and his or her address, as definitely as possible, shall be given. The provisions of this section shall not apply to any county of the first class except where, under the provisions of existing law, a tax upon occupations may be levied by any city within such county which makes its tax levies on the basis of the assessments provided for by this act, and where such city has authorized such levy.

798

gtb-parealestate22-all.indb 798

12/22/21 10:45 AM

REAL ESTATE TAXATION

Ch. 50

Part III Ch. 23–35 Mortgages Part IV Ch. 36–40 Insurance Part V Ch. 41–48A Zoning, etc. Part VI Ch. 49–56 Taxation Part VII Ch. 57–63 Litigation Part VIII Ch. 64–67 L/T Part IX Ch. 68–72 Condos, etc. Index

gtb-parealestate22-all.indb 799

Part II Ch. 15–22 Deeds

799

Part I Ch. 1–14 Brokers

§ 404.  Assessment of persons in counties that do not levy occupation taxes It shall be the duty of the assessors, for taxation purposes in counties of the second, second A and third class, and in counties electing not to levy a tax on trades, occupations, professions and persons who follow no occupation or calling, to prepare a list of all residents and inhabitants in such counties over the age of eighteen years, and return the same to the proper county authorities with other taxable property as provided by law. The assessor shall also state the occupation of each such resident and inhabitant or that a person does not follow an occupation or calling, as the case may be, for the assessment of any township or borough tax on occupations, as provided by law. The county commissioners, or boards for the assessment and revision of taxes, as the case may be, shall continue to fix valuations for trades, occupations, professions and persons who follow no occupation or calling, as provided by law, for the use of boroughs and townships, and nothing contained in this act shall be construed to repeal the power of townships and boroughs to levy taxes on trades, occupations, professions, and on persons who follow no occupation or calling as provided by law. § 405.  Return of exempt property It shall be the duty of the several elected and appointed assessors in this Commonwealth to make return of all property, now or which hereafter may be especially exempt by act of Assembly from taxes, in a separate list to the commissioners, or board of revision of taxes, or board for the assessment and revision of taxes, as the case may be, of the proper county, for which service the said assessors shall receive the same compensation as is allowed for like services in other cases. § 406.  Real estate omitted from triennial assessment Whenever any taxable real estate shall be omitted to be assessed at the triennial assessment, the elected or appointed assessor, on notice thereof, shall forthwith assess and return the same to the proper office, which assessment shall be subject to appeal, and shall continue until the next triennial assessment, and its proper proportion of all taxes to which such real estate is liable, levied after such assessment, shall be laid thereon. § 407.  Conveyances; assessment; mobilehouse courts, owner, removal permits, penalty (a)   Recorder of deeds in certain counties to furnish record of conveyances; compensation.—It shall be the duty of the recorder of deeds in each county of the second A, third, fourth, fifth, sixth, seventh and eighth classes to keep a daily record, separate and apart from all other records, of every deed or conveyance of land in said county entered in his office for recording which record shall set forth the following information to wit: The date of the deed or conveyance, the names of the grantor and grantee, the consideration mentioned in the deed, the location of the property as to city, borough, ward, town or township, the acreage of the land conveyed, if mentioned, and if the land conveyed be a lot or lots on a recorded plan, the number or numbers by which the same may be designated on the plan, if mentioned in the deed; and it shall be the further duty of the recorder, on the first Monday of each month, to file the aforesaid daily record in the commissioner’s office, or office of the board for the assessment and revision of taxes, of the proper county, together with his certificate, appended thereto, that such record is correct; and the recorder of deeds shall charge, and collect from the person presenting a deed of conveyance for record, the sum of fifteen (15) cents, when it contains but one description of land, and ten (10) cents for each additional description therein described, which sum shall be in full compensation for his services under this act. (b)  Statement of conveyances to be furnished assessors.—It shall be the duty of the county commissioners, or board for the assessment and revision

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PART VI

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§ 408

GENERAL COUNTY ASSESSMENT LAW

of taxes, of such counties, upon receipt of such daily report from the office of the recorder of deeds, to keep the same on file in their office; and, prior to the making of the annual and of the triennial assessment, to deliver to the elected or appointed assessor or assessors of each city, borough, ward, town, township or district, before he shall enter upon the discharge of his duty as assessor of the real estate in his district, a statement or statements of all such deeds and conveyances of all such real estate within said district, together with all the information regarding the same as set forth in this section, to be used by such assessor or assessors in making the assessment in the name of the owners of the real estate and in ascertaining the value of such real estate. All mobilehome court operators which shall mean every person who leases land to two or more persons for the purpose of allowing such persons to locate thereon a mobilehome or house trailer which is subject to real property taxation shall maintain a record of all such leases which shall be opened for inspection at all reasonable times by the tax assessor of the political subdivision. As part of such record, the court operator shall note the arrival of each mobilehome or house trailer, the make or manufacturer thereof, the serial number, the number of occupants, their names and ages, and their last prior residence address. Each month the mobilehome court operator shall send a record to the tax assessor of the political subdivision of the arrivals and departures during the prior month of mobilehomes or house trailers on his land. (c)   Land to be assessed in name of owner at time of assessment.—It shall be the duty of such assessor or assessors in such counties, in making the triennial assessment and the intermediate annual assessments, to ascertain the owner or owners of each tract, piece, parcel or lot of ground assessed, at the time of such assessment, and to assess the same in the name of the then owner or owners, as thus appears in such statement, unless to his personal knowledge there has been thereafter a change in the ownership so that such tract, piece, parcel or lot of real estate shall be assessed in the name of the then owner or owners, except that all mobilehomes or house trailers shall be assessed in the name of the then owner or owners of such mobilehome or house trailer, who shall be the person or persons named in the title of such mobilehome or house trailer irrespective of whether the title is issued by this State or another state. (d)   Notification of mobilehome or house trailer owner.—Each person in whose name a mobilehome or house trailer is assessed, rated or valued as provided in this act, shall be notified in writing by the assessor that it shall be unlawful for any person to remove the mobilehome or house trailer from the taxing district without first having obtained removal permits from the local tax collector. (e)  Removal permits.—The local tax collector shall issue removal permits upon application therefor whenever a fee of two dollars ($2) and all taxes levied and assessed on the mobilehome or house trailer to be moved are paid. (f)  Penalty.—Any person who moves a mobilehome or house trailer from the territorial limits of the taxing district without first having obtained a removal permit issued under this act shall, upon summary conviction thereof, be sentenced to pay a fine of one hundred dollars ($100) and costs of prosecution or undergo imprisonment for not more than thirty days, or both. § 408.  Conveyances; charge, abstract; assessments (a)   Recorder of deeds to furnish abstract of conveyances of property in first-class townships; compensation.—Before the recorder of deeds of any county, wherein there is no board for the assessment and revision of taxes for county purposes, shall admit to record in his office any deed of conveyance of land in any township of the first class within said county, he shall charge, and collect from the person presenting such deed of conveyance for record, the sum

800

gtb-parealestate22-all.indb 800

12/22/21 10:45 AM

REAL ESTATE TAXATION

Ch. 50

Part III Ch. 23–35 Mortgages Part IV Ch. 36–40 Insurance Part V Ch. 41–48A Zoning, etc. Part VI Ch. 49–56 Taxation Part VII Ch. 57–63 Litigation Part VIII Ch. 64–67 L/T Part IX Ch. 68–72 Condos, etc. Index

gtb-parealestate22-all.indb 801

Part II Ch. 15–22 Deeds

801

Part I Ch. 1–14 Brokers

of fifteen (15) cents as a fee for the service hereinafter prescribed; and, at the time of admitting the deed of conveyance to record, the recorder of deeds shall transmit to the town clerk of the township of the first class, in which the land so conveyed may be located, an abstract of the deed of conveyance, giving the name of the grantor, the name and address of the grantee, the acreage conveyed, if mentioned, and the consideration money mentioned, and if the land conveyed be a lot or lots on a recorded plan, the number or numbers by which the same may be designated on the plan, if mentioned in the deed. (b)   Assessors in first-class townships to examine records and return property in name of then owner.—It shall be the duty of the assessor and assistant assessors in each of such townships of the first class, before making the triennial assessment, to examine the record books or registers of real estate, if any, kept in such township, and to assess each tract, piece, parcel or lot of land in the said township in the name of the owner thereof, as shown by the said record books or registers; and it shall further be the duty of the assessor, in the years intermediate between the triennial assessments, to revise the preceding assessment according to the changes of ownership, as shown by the record books or registers, so that each tract, piece, parcel or lot of real estate in the township shall be assessed in the name of the then owner, as shown by the said record books or registers, and to return the said revised assessment to the county commissioners, in the manner directed by this act. § 409.  Persons acquiring unseated lands to furnish statement to county commissioners It shall be the duty of every person hereafter becoming a holder of unseated lands, by gift, grant or other conveyance, to furnish to the county commissioners, or board for the assessment and revision of taxes, as the case may be, a statement signed by such holder, or his, her, or their agent, containing a description of each tract so acquired, the name of the person or persons to whom the original title from the Commonwealth passed, and the nature, number and date of such original title, together with the date of the conveyance to such holder, and the name of the grantor, within one year from and after such conveyance, and on failure of any holder of unseated lands to comply with the injunctions of this act, it shall be the duty of the county commissioners to assess on every tract of land, respecting which such default shall be made when discovered, four times the amount of the tax to which such tract or tracts of land would have been otherwise liable, and to enforce the collection thereof, in the same manner that taxes due on unseated lands are or may be assessed and collected: Provided, That nothing in this section shall be construed as giving greater validity to unexecuted land warrants than they are now entitled to, nor to the detriment of persons under legal disabilities, provided such person or persons comply with the foregoing requisitions within the time or times limited, respectively, after such disability shall be removed. § 410.  Assessment of unseated lands All unseated lands within this Commonwealth, held by individuals, copartnerships, associations or corporations, either by improvement, warrant, patent, or otherwise, shall, for the purpose of raising county rates and levies, be valued and assessed in the same manner as other property. Whenever any tax levy is made upon land as unseated, which the assessors for the same year by error or mistake returned assessed as seated, while the same ought or might legally have been assessed as unseated, such levy shall be deemed valid and regular for all intents and purposes, notwithstanding it differs from the copy of the duplicate furnished by the assessor. All records of the county commissioners charging lands as unseated with arrears of taxes shall be evidence of an assessment. No clearing over by mistake shall ever be deemed sufficient to render land seated.

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PART VI

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§ 411

GENERAL COUNTY ASSESSMENT LAW

§ 411.  Assessment of seated lands divided by county lines The elected and appointed assessors of the several counties shall, on seated lands, make the assessment in the county in which the mansion house is situated, when county lines divide a tract of land. Whenever the dividing line between two counties shall pass through the mansion house of any tract of land, the owner of the land so divided may choose as the situs of assessment either of the counties, by a written notice of his election to the commissioners of both counties. The elected or appointed assessors of the county so chosen shall assess therein all the tract of land. In the event that the owner shall refuse or fail do so choose, then the county in which the larger portion of the mansion house is situated shall have the right of assessment. § 412.  Assessment of seated lands divided by township lines Where seated lands are divided by the boundary line between a township and a city, borough or town, and the mansion house is situate in a township, the whole of such lands shall be assessed only in the township where the mansion house is situated. Where the mansion house is situated in a city, borough or town, and the balance of such seated lands are located in one or more townships, the land located in such township or townships shall be assessed therein, and the land located in the city, borough or town shall be assessed therein. Where seated lands are divided by the boundary line between two townships, the land located in each township shall be assessed therein, notwithstanding the situs of the residence or mansion house. § 413.  Assessment where township line passes through mansion house Whenever the dividing line between any township and city or borough, or between any two townships, as now or may be hereafter located, shall pass through the mansion house of any tract of land, the owner of the land so divided may choose, as the place of residence of its occupants, either of the townships or the borough, by a written notice of his election to the commissioners of the county. A choice once so made shall be binding on the owner and occupiers of such mansion house and on future owners thereof. In case of the neglect or refusal of the owner of such land to make an election as aforesaid, the persons occupying said mansion house shall be regarded as residing wholly within the township, and the elected or appointed assessors of such township shall, in such case, or when he elects to reside in the township, assess therein such persons, and all the tract of land on which such mansion house is erected. § 414.  Assessment of coal underlying lands divided by county, township or borough lines The elected or appointed assessors of the wards, townships and boroughs of the several counties shall, where seated lands, underlaid with coal, are divided by county, city, township or borough lines, the ownership of which coal has been severed from the ownership of the overlying strata or surface, assess each division of said coal in the county, city, township or borough in which it actually lies. § 415.  Separate assessment of coal and surface All elected and appointed assessors shall hereafter assess coal and surface separately in cases where the life tenant of land has not the right to operate the coal underlying said surface. § 416.  Assessing real estate subject to ground rent, dower, or mortgage All real estate subject to ground rent, dower, or mortgage shall be estimated at its full value and taxed accordingly, except in the case of real estate subject to ground rent where there is no provision made in the ground rent deed that the lessee shall pay the taxes on the ground rent, in which cases such ground rent shall be estimated and assessed for taxes to the owners thereof.

802

gtb-parealestate22-all.indb 802

12/22/21 10:45 AM

REAL ESTATE TAXATION

Ch. 50

Part III Ch. 23–35 Mortgages Part IV Ch. 36–40 Insurance Part V Ch. 41–48A Zoning, etc. Part VI Ch. 49–56 Taxation Part VII Ch. 57–63 Litigation Part VIII Ch. 64–67 L/T Part IX Ch. 68–72 Condos, etc. Index

gtb-parealestate22-all.indb 803

Part II Ch. 15–22 Deeds

803

Part I Ch. 1–14 Brokers

§ 417.  Assessment of property of decedents’ estates Where any person shall die leaving real or personal estate, which by the existing laws of this Commonwealth is subject to taxation for county purposes, such property, so long as the same shall belong to the estate of such deceased person, may be assessed in the name of the decedent, or in the name of his administrator or administrators, executor or executors, or his heirs generally, or in the name of any of the administrators, executors or heirs; and in assessing it in the names of the executors, administrators, or heirs it shall not be necessary to designate them by their christian or surnames. § 418.  Returns of timber lands It shall be the duty of the several elected and appointed assessors, in their return of real estate to the commissioners of the proper county at each triennial assessment, to make returns of all the timber land in their proper district by specifying in separate columns how many acres each tract contains of cleared land, and how many in timber. § 419.  Assessment of auxiliary forest reserves All surface land which has, since the fifth day of June, one thousand nine hundred and thirteen, been classified and set apart as auxiliary forest reserves, in the manner provided by law, or which may hereafter be so classified, shall, so long as the same remains so classified, be rated in value, for the purpose of taxation, not in excess of one dollar ($1.00) per acre, and shall continue to be so rated so long as the said land remains within the class designated as auxiliary forest reserves: Provided, however, That if the said surface land be underlaid with coal, iron ore, oil, gas, or other valuable minerals, said minerals may be separately assessed. The elected and appointed assessors in the several boroughs, townships and districts in which such lands are situate shall assess such lands in the manner now or hereafter provided for the assessment of real estate for purposes of taxation, as if they had not been set apart as auxiliary forest reserves, and shall make their return to the county commissioners in like manner as is now or hereafter may be provided by law, subject to exception, appeal, and final adjustment. Upon receipt of assessment returns from the various assessors, the county commissioners, or board for the assessment and revision of taxes, shall reduce, in their records, to a sum not in excess of one dollar ($1.00) per acre, the assessment on all those lands which shall have been placed in the class known as auxiliary forest reserves, in accordance with certificates filed with them by the Department of Forests and Waters, and the original assessment returns made by said assessors shall be preserved. § 420.  Assessment for county and poor purposes where lands in one county are annexed to a borough in another county Where lands situate in one county now are or hereafter shall be annexed to a borough situate in an adjoining county, the authorities in the county wherein the land is actually situated, now or hereafter having authority to make the assessments on which the county and poor taxes are levied shall assess the taxable property within the lines of land lying in such county, and shall record the same in a separate book. This assessment shall be made by the authority that would have made the assessment had the land not been annexed to the borough. The owners of all property so assessed shall have the same right of appeal from this assessment as any other taxable in the same county. § 421.  Assessment for borough and school purposes where lands in one county are annexed to a borough in another county The authorities within the county wherein is situated the borough to which such land has been annexed, now or hereafter having authority to make the assessments on which the borough and school taxes are levied, shall also assess

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PART VI

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§ 422

GENERAL COUNTY ASSESSMENT LAW

the taxable property within the territory which is situated in one county and has been annexed to a borough which is situated in an adjoining county, and shall record the same in a separate book. This assessment shall be made by the authority which would have assessed this land had it been in the same county as the borough to which it is annexed. The owner of any property so annexed shall have the same right of appeal from this assessment as any other taxable in the same county as the borough. § 422.  Borough ward assessors to act as board In boroughs divided into wards, in making the valuation of property, the elected assessors of all the wards shall act as a board of assessors; and such board of assessors shall make the assessments of all subjects of taxation in the borough, for borough, school, district and county purposes, and return thereof shall be made to the county commissioners, as now provided by law, subject to revision by the county commissioners as now provided by law. § 431.  Issuing of precepts and return of assessments in inter-triennial years (a)   In counties of the second class, the precepts to make assessments in the years between triennial assessments shall be issued to the appointed assessors by the board for the assessment and revision of taxes at such time as the board may prescribe, and return thereof made on or before the first Monday of November as provided by existing law relating to the board for the assessment and revision of taxes in said counties. (b)  In counties of the third class, the precepts to make assessments in the years between triennial assessments shall be issued to the appointed assessors by the board for the assessment and revision of taxes, and return thereof made at such times as the board shall determine in accordance with existing law relating to the board for the assessment and revision of taxes in said counties. (c)   In counties of the fourth class, the precepts to make assessments in the years between triennial assessments shall be issued to the assessor by the county commissioners on or before the first day of June, and the assessors are hereby required to complete the said assessments and to make return thereof not later than ninety days from the date of the issuing of said precepts. (d)   In counties of the fifth, sixth, seventh and eighth classes, the precepts to make assessments in the years between triennial assessments shall be issued to the assessors of townships of the second class, towns, boroughs and wards on or before the second Monday of September, and, to assessors in townships of the first class, on or before the first day of July, and the said assessors are hereby required to complete the said assessments and to make return thereof not later than ninety days from the date of the issuing of said precepts: Provided, That in cases of an emergency, or in wards where an assessor cannot complete the reassessment within the said ninety days, the county commissioners may, at their discretion extend the time for completing the said reassessment and for making return thereof: And provided further, That where assessors in townships of the first class shall have been continuously engaged in the actual performance of their duties after the delivery of the precepts to them, except where prevented by sickness or stress of weather, and are not able to complete the assessment and make return thereof as herein provided, it shall be lawful for said assessors to continue the performance of their duties and to make return of their assessment to the county commissioners after said date, but in no case shall any such return be made later than the fifteenth day of February of the year following the delivery of the precepts to the assessors. § 432.  Inter-Triennial Assessments In each of the two years succeeding the triennial assessment, except in counties of the first class, and except as in counties of the second and third classes

804

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REAL ESTATE TAXATION

Ch. 50

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Index

805

Part IX Ch. 68–72 Condos, etc.

It shall be a misdemeanor in office for the county commissioners, or members of the board of revision of taxes, or board for the assessment and revision of

Part VIII Ch. 64–67 L/T

§ 453.  Penalty on county commissioners for failure to perform duty

Part VII Ch. 57–63 Litigation

If any elected or appointed assessor, or, in townships of the first class, any assessor, assistant township assessor or assistant triennial assessor, who shall have taken upon himself the duties of such office, neglects or refuses to comply with any order or warrant issued to him in conformity with law, or does not perform the duties enjoined upon him by law, he shall forfeit any sum not exceeding forty dollars, to be recovered by the county as debts of a like amount are recoverable.

Part VI Ch. 49–56 Taxation

§ 452.  Penalty on assessor for failure to perform duty

Part V Ch. 41–48A Zoning, etc.

If any elected or appointed assessor, or, in townships of the first class, any assessor, assistant township assessor or assistant triennial assessor, knowingly and intentionally omits, neglects or refuses to assess and return any property, person, or thing made taxable by law, or knowingly and intentionally assesses, rates or values the same at more or less than he knows and believes the just cash value or rate thereof, or neglects or refuses to assess any tax required by law, he shall be guilty of a misdemeanor in office, and, on conviction thereof, be subject to imprisonment not less than three nor more than twelve months, and fined in a sum not less than one hundred nor more than two hundred dollars.

Part IV Ch. 36–40 Insurance

§ 451.  Penalty on assessors for failure to assess and for making incorrect assessments

Part III Ch. 23–35 Mortgages

The county commissioners, or the board for the assessment and revision of taxes, as the case may be, may, in their discretion, issue their precepts to the elected or appointed assessors of the respective wards, districts, boroughs, towns and townships, on or before the first day in March of each year, for the assessment of such persons as may remove into the respective township, ward, borough, town or district since the last assessment, and for the reassessment of such property as may have been transferred since the last assessment, and for the assessment of those who may have been omitted from the last assessment. And it shall be the duty of such assessors to make such assessment, and return the same before the twenty-fifth of May. For such service the said assessor shall receive, out of the county funds, such compensation as may be fixed by the county commissioners, not, however, exceeding the per diem compensation fixed by this act.

Part II Ch. 15–22 Deeds

§ 441.  Persons removing into district; property transferred or omitted

Part I Ch. 1–14 Brokers

otherwise provided, the commissioners, or board for the assessment and revision of taxes, as the case may be, of the respective county shall send a transcript of such triennial assessment to the elected or appointed assessors of every ward, borough, town, township and district therein, together with their precepts, requiring them to take an account of all personal property taxable by law, together with a just valuation of same, and all persons, and also a valuation of all offices and posts of profit, professions, trades and occupations taxable by law, enjoining such assessors to make a just return to them and to note in such return such alterations in his ward, borough, town, township or district, as may have been occasioned by the transfer or division of real estate, or by the destruction of buildings, or by the mining out of coal, ore, or other minerals assessed under the triennial assessment, and also noting all persons who have arrived at the age of eighteen years since the last triennial assessment, and all others who have since that time come to inhabit in such ward, borough, town, township or district, together with the taxable property such persons may possess, and the valuation thereof, agreeably to the provisions of this act; and to reassess all real estate which may have been improved by the erection of buildings or other improvements subsequent to the last preceding triennial assessments, subject to appeals as now provided by law.

Table of Contents

PART VI

12/22/21 10:45 AM

§ 501

GENERAL COUNTY ASSESSMENT LAW

taxes, of any county to neglect or refuse to perform the duties required of them by law in the assessment of any tax which has been or shall be imposed by the laws of this Commonwealth, and, on conviction of said offense, he or they shall be punished by a fine of not less than fifty nor more than two hundred dollars. § 501.  Commissioners to constitute board of revision; oath The county commissioners of each county of the fourth, fifth, sixth, seventh and eighth classes shall compose a board to be called a “Board of Revision,” of which the county commissioner holding the oldest certificate of election shall be the president. The members of said board shall each take and subscribe an oath or affirmation, before the president of the court of common pleas, the prothonotary, or any of the associate judges of the county, in the following words, to wit: “I . . . do swear or affirm that I will faithfully, and to the best of my knowledge and judgment, revise, correct and equalize the valuation of all property taxable by law . . . in . . . county, . . . and faithfully perform all the duties of a member of the board of revision for . . . county, according to the laws of this Commonwealth,”—which oath shall be deposited in the office of the recorder of the county. § 502.  Publication of statement showing aggregate assessments, et cetera The county commissioners, acting as a board of revision, or the board for the assessment and revision of taxes, as the case may be, of the several counties shall, as soon as the elected or appointed assessors of the several wards, districts, boroughs, towns and townships in their respective counties shall have made their returns, make out and publish in not less than two newspapers for two weeks, or, if there be no newspaper published in the county, by handbills posted up in each ward, district, borough, town or township, at the place of holding township, town, borough, ward or district elections, a statement in such form as will show the aggregate value and assessments made by each assessor in the county, upon property taxable by law for county purposes, upon personal property, upon all salaries and emoluments of office, and all persons, trades, occupations and professions, and as will also show the whole amount of taxes assessed on each ward, district, borough, town and township in the county, and, at the time and in the manner herein provided for publishing said statements, the county commissioners, acting as a board of revision, or the board for the assessment and revision of taxes, as the case may be, shall also give public notice of a day not later than thirty days from the time of publishing, by them appointed, for finally determining whether any of the valuations of the assessors have been made below a just rate, according to the meaning and intention of this act: Provided, That any neglect or refusal of the county commissioners, or board for the assessment and revision of taxes, to make and publish the statement required by this section shall not invalidate or hinder the collection of any tax imposed by any law of this Commonwealth. § 503.  Revision at time of appeals The county commissioners, acting as a board of revision, or board for the assessment and revision of taxes, as the case may be, are hereby authorized to do and perform the duties of said board of revision upon the same day, and at the same time and place, fixed for the hearing of appeals for the several townships, towns, boroughs and wards in their respective counties. § 504.  Right of taxables to examine returns From the time of publishing the returns of the elected or appointed assessors until the day appointed for finally determining whether any valuation of the assessors have been made too low, any taxable inhabitant of the county shall have the right to examine the return in the commissioners’ office, or board for the assessment and revision of taxes, as the case may be.

806

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REAL ESTATE TAXATION

Ch. 50

Part III Ch. 23–35 Mortgages Part IV Ch. 36–40 Insurance Part V Ch. 41–48A Zoning, etc. Part VI Ch. 49–56 Taxation Part VII Ch. 57–63 Litigation Part VIII Ch. 64–67 L/T Part IX Ch. 68–72 Condos, etc. Index

gtb-parealestate22-all.indb 807

Part II Ch. 15–22 Deeds

807

Part I Ch. 1–14 Brokers

§ 505.  Making revisions (a)  The county commissioners, acting as the board of revision, or board of revision of taxes, or board for the assessment and revision of taxes, as the case may be, in each county, shall, on receiving the returns of the elected or appointed assessors, proceed to examine and inquire whether the same have been made in conformity with the laws of this Commonwealth, and whether all property to be valued for taxation for county purposes has been valued at actual value. They shall receive and consider the written communication of any taxable inhabitant of the county relative to any property which such taxable inhabitant shall believe to have been valued too low, and, on the day appointed for determining whether any property has been valued too low or too high, they shall proceed to raise or lower the price or valuation of any property which they shall believe to have been valued too low or too high, and if they cannot on the day appointed revise, raise and equalize the valuation of all property, they may adjourn from day to day until the whole of such valuation shall have been revised, raised or equalized. (b)   The board is authorized to make additions and revisions to the assessment roll of persons and property subject to local taxation at any time in the year, so long as the notice provisions are complied with. All additions and revisions shall be a supplement to the assessment roll for levy and collection of taxes for the tax year for which the assessment roll was originally prepared, in addition to being added to the assessment roll for the following calendar or fiscal tax years. § 505.1.  Errors in assessments and refunds Whenever through mathematical or clerical error an assessment is made more than it should have been, and taxes are paid on such incorrect assessment, the county commissioners, acting as a board of revision of taxes, or the board for the assessment and revision of taxes, upon discovery of such error and correction of the assessment shall so inform the appropriate taxing district or districts, which shall make a refund to the taxpayer or taxpayers for the period of the error or six years, whichever is less, from the date of application for refund or discovery of such error by the board. Reassessment, with or without application by the owner, as a decision of judgment based on the method of assessment by the board, shall not constitute an error under this section. § 506.  Employment of assistants in counties of the fourth class The commissioners of each county of the fourth class are hereby authorized and empowered to employ competent persons, resident freeholders of the county, who shall assist the county commissioners of such counties in the adjustment and revision of assessments; and are further authorized and empowered to employ such clerical and other assistance as may be necessary to enable the commissioners to function properly in their capacity as a board of revision of the assessments and valuations arrived at by such assessments. The salary of such employees shall be fixed by the salary board in the respective counties, and shall be paid out of the funds of the county in the usual manner. § 507.  Transcript of assessments, statement of rate, and day for appeal sent to assessors When the revisions of the triennial assessments have been completed, the commissioners, acting as a board of revision, or the board for the assessment and revision of taxes, as the case may be, of the respective counties shall cause accurate transcripts of the assessments to be made out by their clerk, and shall transmit the same to the respective elected or appointed assessors on or before the second Monday of April following, together with a statement of the rate per cent of the tax and the day of appeal fixed by them.

Table of Contents

PART VI

12/22/21 10:45 AM

§ 508

GENERAL COUNTY ASSESSMENT LAW

§ 508.  Notice of assessment, rate, and appeal It shall be the duty of the several elected or appointed assessors on receiving such transcript of the triennial assessment from the county commissioners, acting as a board of revision, or the board for the assessment and revision of taxes, as the case may be, to give written or printed notice, at least five days before the day of appeal, to every taxable inhabitant within the respective ward, borough, town, township or district, the amount of the present assessment, valuation and ratio, the amount or sum of which he stands rated, and the rate per cent of the tax, and of the time and place of such appeal. In every case where the county commissioners, acting as a board of revision, or the board for the assessment and revision of taxes, as the case may be, shall change the valuation of any property or the established predetermined ratio, a statement of the present assessment, valuation and ratio and a notice of such changed assessment, valuation and ratio shall also be given to the owner or owners. § 509.  Publication of notice of appeal It shall also be the duty of the commissioners, acting as a board of revision, or the board for the assessment and revision of taxes, as the case may be, of the respective counties, to give notice, by advertisement in one or more newspapers printed in or nearest to the seat of justice of the proper county, at least three weeks before the day of appeal, of the time and place fixed for such appeal from triennial assessments. § 510.  Notice of appeals in inter-triennial years It shall be the duty of the several elected and appointed assessors in each of the two years succeeding the triennial assessment to give notice to the taxable inhabitants in like manner as after the triennial assessment, but in the following cases only; namely, in the case of real property, where buildings or other improvements have been newly erected or have been destroyed, and when coal, ore, or other minerals assessed under the triennial assessment have been mined out, since such triennial assessment; and in the case of personal property, offices, professions, trades and occupations, where there has been any alteration in the assessment, occasioning a different valuation from the former year, and also where persons have come to inhabit in the county since such triennial assessment. § 511.  Board of revision to hear and pass on appeals (a)   At the time and place fixed for the appeal, whether at a triennial or intertriennial assessment, the commissioners, acting as a board of revision, or the board for the assessment and revision of taxes, shall attend and hear all persons who may apply for redress, and grant such relief as to them shall appear just and reasonable: Provided, That the commissioners, acting as a board of revision, or the board for the assessment and revision of taxes, shall not make any allowance or abatement in the valuation of any real estate, in any other year than that in which the triennial assessment is made, excepting where buildings or other improvements have been destroyed, or where coal, ore, or other minerals assessed under the triennial assessment have been mined out, subsequently to such triennial assessment, in which cases such allowance or abatement shall be made. (b)   In any appeal of an assessment the commissioners, acting as a board of revision of taxes, or the board for the assessment and revision of taxes, shall make the following determinations: (1)   The market value as of the date such appeal was filed before the county commissioners, acting as a board of revision of taxes, or the board for the assessment and revision of taxes. (2)   The common level ratio published by the State Tax Equalization Board on or before July 1 of the year prior to the tax year being appealed to the

808

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REAL ESTATE TAXATION

Ch. 50

Part III Ch. 23–35 Mortgages Part IV Ch. 36–40 Insurance Part V Ch. 41–48A Zoning, etc. Part VI Ch. 49–56 Taxation Part VII Ch. 57–63 Litigation Part VIII Ch. 64–67 L/T Part IX Ch. 68–72 Condos, etc. Index

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Part II Ch. 15–22 Deeds

809

Part I Ch. 1–14 Brokers

county commissioners, acting as a board of revision of taxes, or the board for the assessment and revision of taxes. (b.1)  When a county has effected a countywide revision of the assessment which was used to develop the common level ratio last determined by the State Tax Equalization Board, the following shall apply: (1)   If a county changes its assessment base by applying a change in predetermined ratio, the board shall apply the percentage change between the existing predetermined ratio and newly established predetermined ratio to the county’s common level ratio to establish the certified revised common level ratio for the year in which the assessment was revised. (2)   If the county performs a countywide revision of assessments by revaluing the properties and applying an established predetermined ratio, the board shall utilize the established predetermined ratio instead of the common level ratio for the year in which the assessment was revised and until such time as the common level ratio determined by the State Tax Equalization Board reflects the revaluing of properties resulting from the revision of assessments. (c)   The county commissioners, acting as a board of revision of taxes, or the board for the assessment and revision of taxes, after determining the market value of the property, shall then apply the established predetermined ratio to such value unless the common level ratio published by the State Tax Equalization Board on or before July 1 of the year prior to the tax year being appealed to the county commissioners, acting as a board of revision of taxes, or the board for the assessment and revision of taxes varies by more than fifteen per centum (15%) from the established predetermined ratio, in which case the commissioners, acting as a board of revision of taxes, or a board for the assessment and revision of taxes, shall apply that same common level ratio to the market value of the property. (d)   Nothing herein shall prevent any appellant from appealing any base year valuation without reference to ratio. (e)   Persons who have suffered catastrophic losses to their property shall have the right to appeal before the county commissioners, acting as a board of revision of taxes, or the board for the assessment and revision of taxes within the remainder of the county fiscal year in which the catastrophic loss occurred, or within six months of the date on which the catastrophic loss occurred, whichever time period is longer. The duty of the county commissioners, acting as a board of revision of taxes, or the board for the assessment and revision of taxes shall be to reassess the value of the property in the following manner: the value of the property before the catastrophic loss, based on the percentage of the taxable year for which the property stood at its former value, shall be added to the value of the property after the catastrophic loss, based on the percentage of the taxable year for which the property stood at its reduced value. Any property improvements made subsequent to the catastrophic loss in the same tax year shall not be included in the reassessment described in this subsection for that tax year. Any adjustments in assessment under this subsection: (1)   shall be reflected by the appropriate taxing authorities in the form of a credit for the succeeding tax year; or (2)  upon application by the property owner to the appropriate taxing authorities, shall result in a refund being paid to the property owner at the time of issuance of the tax notice for the next succeeding tax year by the respective taxing authorities. A reduction in assessed value for catastrophic loss due to inclusion or proposed inclusion as residential property on either the National Priority List under the Federal Comprehensive Environmental Response, Compensation, and Liability

Table of Contents

PART VI

12/22/21 10:45 AM

§ 512

GENERAL COUNTY ASSESSMENT LAW

Act of 1980 (Public Law 96-510, 94 Stat. 2767)6, as amended, or the State Priority List under the act of October 18, 1988 (P.L. 756, No. 108), known as the “Hazardous Sites Cleanup Act,”7 shall be in effect until remediation is completed. (f)  As used in this section, “catastrophic loss” means any loss due to mine subsidence, fire, flood or other natural disaster which affects the physical state of the real property and which exceeds fifty per centum (50%) of the market value of the real property prior to the loss. The phrase “catastrophic loss” shall also mean any loss which exceeds fifty per centum (50%) of the market value of the real property prior to the loss incurred by residential property owners who are not deemed responsible parties under the Comprehensive Environmental Response, Compensation, and Liability Act of 1980 or the “Hazardous Sites Cleanup Act” and whose residential property is included or proposed to be included as residential property on: (1)   the National Priority List by the Environmental Protection Agency under the Comprehensive Environmental Response, Compensation, and Liability Act of 1980; or (2)   the State Priority List by the Department of Environmental Resources under the “Hazardous Sites Cleanup Act.” (g)  Notwithstanding any other law regarding the assessment of real property due to catastrophic loss, the provision of subsections (e) and (f) relating to residential property affected by the Comprehensive Environmental Response, Compensation, and Liability Act of 1980 or the “Hazardous Sites Cleanup Act” shall apply to all counties. § 512.  Assessors to attend appeals It shall be the duty of the several elected and appointed assessors to attend at the time and place fixed for the appeal from triennial and inter-triennial assessments for the respective ward, borough, town, township or district, to prevent impositions being practiced on the commissioners, acting as a board of revision, or the board for the assessment and revision of taxes, as the case may be, by the persons appealing. § 513.  Place of holding appeals The county commissioners, acting as boards of revision, and boards for the assessment and revision of taxes, of the several counties shall have power, when hearing tax appeals, either in triennial or inter-triennial years, to sit and to hold hearings and dispose of appeals away from the county seat and within the city, borough, town or township of the county where the appeals originate, and to take action on any such appeals with like force and effect as if said appeals were regularly heard and action thereon taken in their respective offices at the county seat. § 514.  Assessments regulated; duplicates Immediately after the appeals are over, the commissioners, acting as a board of revision, or the board for the assessment and revision of taxes, as the case may be, shall proceed to regulate the assessments, according to the alterations made, and shall cause their clerks to make fair duplicates thereof, in such form as the commissioners or board may direct. § 514.1.  Notice of changes given to taxing authorities When the commissioners acting as a board of revision or the board for the assessment and revision of taxes, as the case may be, shall make any change in the amount of three hundred dollars ($300) or more in the assessed value of property as finally fixed in the preceding assessment roll, or shall fix the valu6. 42 U.S.C.A. § 9601 et seq. 7. 35 P.S. § 6020.101 et seq.

810

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REAL ESTATE TAXATION

Ch. 50

Part I Ch. 1–14 Brokers Part II Ch. 15–22 Deeds Part III Ch. 23–35 Mortgages Part IV Ch. 36–40 Insurance Part V Ch. 41–48A Zoning, etc. Part VI Ch. 49–56 Taxation Part VII Ch. 57–63 Litigation Part VIII Ch. 64–67 L/T Part IX Ch. 68–72 Condos, etc.

ation of property which has not theretofore been separately fixed, whether such change or new valuation is made before or after an appeal has been heard by the board or by the court of common pleas, the board shall give notice of such change or new valuation to the clerk of the city (if it has accepted the provisions of this act)8 in which the assessed property is located, to the secretary of the school district in which the assessed property is located, and to the secretary of the borough or township in which the assessed property is located. The time limit within which the city, borough, township and school district is entitled to appeal from the actions of the board or from the decision of the court of common pleas shall commence to run on the day such notice is mailed or otherwise delivered. § 515.  Duplicates to be furnished school districts of third and fourth classes In order to enable the board of school directors in each district of the third class, other than school districts of that class which are located wholly within the boundary lines of cities of the third class, and where such third-class school districts comprise the same territory as such city of the third class in which the same is so located, as aforesaid, and in each district of the fourth class in this Commonwealth, to assess and levy the necessary school taxes required by such district each year, the county commissioners, or board for the assessment and revision of taxes, in each county shall, on or before the first day of April in each year, at the expense of the county, furnish to each school district of the third class, other than school districts of that class which are located wholly within the boundary lines of cities of the third class, and where such third-class school districts comprise the same territory as such city of the third class in which the same is so located, as aforesaid, and to each district of the fourth class, therein, for its use, to be retained by it, a properly certified duplicate of the last adjusted valuation of all real estate, personal property, and residents or inhabitants made taxable for county purposes in such school districts, stating the name of each taxable, and the valuation, description, and kind of property, and a list of the residents or inhabitants assessed; all of which real estate, personal property, and residents or inhabitants are hereby made taxable for school purposes in each school district of the third and fourth class. § 516.   Duplicates to be furnished townships of the first and second classes and boroughs The county commissioners, or the board for the assessment and revision of taxes, of the several counties shall, except in counties of the second class, on or before the first day of December of each year, at the expense of the county, furnish to the township commissioners of each township of the first class, and to the township supervisors of each township of the second class and to borough councils, for their use, a properly certified duplicate of the last adjusted valuation of all real estate, personal property, and occupations made taxable for county purposes in such townships or boroughs. Such duplicate shall state the name of each taxable, with the valuation, description, and kind of property and occupation of such taxable. The duplicate may be corrected, amended or changed after the first day of December as circumstances may require. § 517.  Hearing appeals subsequent to time fixed It shall be the duty of the commissioners, acting as a board of revision, or the board for the assessment and revision of taxes, as the case may be, to hear appeals at any subsequent time when they may be in session, previous to the payment of the tax, and to make such alterations as they might have done on the regular day of appeal: Provided, That no such appeal shall be heard unless the appellant shall have given due notice thereof to the assessor of the proper ward, borough, town, township or district.

Table of Contents

PART VI

8. 72 P.S. § 5020-1 et seq.

gtb-parealestate22-all.indb 811

Index

811

12/22/21 10:45 AM

§ 518

GENERAL COUNTY ASSESSMENT LAW

§ 518.  Repealed. 1955, Dec. 28, P.L. 917, § 1 § 518.1.  Appeal to court from assessments; collection pending appeal; payment into court; refunds (a)   Any owner of real estate or taxable property in this Commonwealth, who may feel aggrieved by the last or any future assessment or valuation of his real estate or taxable property, may appeal from the decision of the county commissioners, acting as a board of revision, or the board of revision of taxes, or the board for the assessment and revision of taxes, or the Board of Property Assessment, Appeals and Review, in counties of the second class, as the case may be, to the court and, thereupon, the court shall proceed, at the earliest convenient time to be by them appointed, of which notice shall be given to the county commissioners, acting as a board of revision, or the board of revision of taxes, or the board for the assessment and revision of taxes, or the Board of Property Assessment, Appeals and Review, in counties of the second class, as the case may be, to hear the said appeal and the proofs in the case and to make such orders and decrees touching the matter complained of as to the judges of said court may seem just and equitable having due regard to the valuation and assessment made of other real estate in such county or city, the costs of the appeal and hearing to be apportioned or paid as the court may direct: Provided, however, That the appeal shall not prevent the collection of the taxes complained of, but in case the same shall be reduced, then the excess shall be returned to the person or persons who shall have paid the same: And provided further, That the appellant may pay the amount of the tax alleged to be due by reason of the assessment appealed from to the tax collector, under protest in writing, in which case when the tax is paid over to the taxing district, it shall be the duty of the tax collector to notify the taxing district of such payment under protest by delivering to it the protest in writing. Whereupon, the taxing district with the exception of cities of the second class and school districts of the first class A within such counties shall be required to segregate twenty-five per centum (25%) of the amount of the tax paid over, and shall deposit the same in a separate account in the depository in which the funds of the taxing district are deposited, and shall not be permitted to expend any portion of such segregated amount, unless it shall first petition the court alleging that such segregated amount is unjustly withheld. Thereupon, the court shall have power to order the use by the taxing district of such portion of such segregated amount as shall appear to said court to be reasonably free from dispute, and the remainder of the segregated amount shall be held segregated by the taxing district pending the final disposition of the appeal: Provided further, That upon final disposition of the appeal the amount found to be due the appellant as a refund, together with interest thereon, shall also be a legal set off or credit against any taxes assessed against appellant by the same taxing district and where a taxing district alleges that it is unable to thus credit all of such refund in one year, the court, upon application of either party, shall determine over what period of time such refund shall be made, and shall fix the amount thereof which shall be credited in any year or years. This proviso shall be construed to apply to all refunds that are now due, or may hereafter become due, as the result of appeals from assessments that have not been finally determined or adjusted at the time this act takes effect regardless whether there has been a payment of any moneys into court or to the tax collector under written protest. (b)   If a taxpayer has filed an appeal from an assessment, so long as the appeal is pending before the board or before a court on appeal from the determination of the board, as provided by statute, the appeal will also be taken as an appeal by the taxpayer on the subject property for any valuation for any assessment subsequent to the filing of such appeal with the board and prior to the determination of the appeal by the board or the court. This provision shall be applicable to all pending appeals as well as future appeals.

812

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REAL ESTATE TAXATION

Ch. 50

Part III Ch. 23–35 Mortgages Part IV Ch. 36–40 Insurance Part V Ch. 41–48A Zoning, etc. Part VI Ch. 49–56 Taxation Part VII Ch. 57–63 Litigation Part VIII Ch. 64–67 L/T Part IX Ch. 68–72 Condos, etc. Index

gtb-parealestate22-all.indb 813

Part II Ch. 15–22 Deeds

813

Part I Ch. 1–14 Brokers

(c)   Appeals to courts of common pleas may be referred by such courts to boards of arbitrators under 42 Pa.C.S. Ch. 73 Subch. C (relating to judicial arbitration) or to boards of viewers under 42 Pa.C.S. Ch. 21 Subch. E (relating to boards of viewers) in accordance with rules and procedures prescribed by such courts. § 518.2.  Appeals to court (a)  In any appeal of an assessment the court shall make the following determinations: (1)   The market value as of the date such appeal was filed before the county commissioners, acting as a board of revision of taxes, or the board for the assessment and revision of taxes. In the event subsequent years have been made a part of the appeal, the court shall determine the respective market value for each such year. (2)   The common level ratio which was applicable in the original appeal to the county commissioners, acting as a board of revision of taxes, or the board for the assessment and revision of taxes. In the event subsequent years have been made a part of the appeal, the court shall determine the respective common level ratio for each such year published by the State Tax Equalization Board on or before July 1 of the year prior to the tax year being appealed. (b)   The court, after determining the market value of the property pursuant to subsection (a)(1), shall then apply the established predetermined ratio to such value unless the corresponding common level ratio determined pursuant to subsection (a)(2) varies by more than fifteen per centum (15%) from the established predetermined ratio, in which case the court shall apply the respective common level ratio to the corresponding market value of the property. (b.1) When a county has effected a countywide revision of the assessment which was used to develop the common level ratio last determined by the State Tax Equalization Board, the following shall apply: (1)   If a county changes its assessment base by applying a change in predetermined ratio, the court shall apply the percentage change between the existing predetermined ratio and newly established predetermined ratio to the county’s common level ratio to establish the certified revised common level ratio for the year in which the assessment was revised. (2)   If the county performs a countywide revision of assessments by revaluing the properties and applying an established predetermined ratio, the court shall utilize the established predetermined ratio instead of the common level ratio for the year in which the assessment was revised and until such time as the common level ratio determined by the State Tax Equalization Board reflects the revaluing of properties resulting from the revision of assessments. (c)   Nothing herein shall prevent any appellant from appealing any base year valuation without reference to ratio. § 519.  Appeals to Supreme or Superior Courts Any owner of real estate or taxable property in this Commonwealth, or any county, city, borough, town, township, school district or other public corporation having power and authority to levy taxes on the assessment of his real estate or taxable property in question, may appeal from the judgment, order or decree of any court of common pleas, in any matter affecting the assessment of taxes on said property: Provided, That the appeal shall not prevent the collection of the taxes upon the assessment fixed or allowed by such judgment, order or decree of the court of common pleas, but in case the same shall be reduced, then the excess shall be returned to the persons or persons who shall have paid the same. § 520.  Appeals by municipalities The corporate authorities of any county, city, borough, town, township, school district or poor district, which may feel aggrieved by any assessment of any prop-

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GENERAL COUNTY ASSESSMENT LAW

erty or other subject of taxation for its corporate purposes, shall have the right to appeal therefrom in the same manner, subject to the same procedure, and with like effect, as if such appeal were taken by a taxable with respect to his property. § 521.  Payment to tax district pending appeal Where, under the provisions of the existing law, any appellant has heretofore paid any tax into court pending the disposition of an appeal, the court shall, upon application of the taxing district, order the payment to the taxing district of the total amount of such fund, and twenty-five per centum (25%) thereof shall be segregated and deposited by the taxing district in like manner, and subject to like proceedings, as hereinbefore required in the case of payments by appellants under protest. § 601.  Repealer The following acts and parts of acts are hereby repealed as respectively indicated: 1933, May 22, P.L. 853, art. VI, §601 § 602.  Acts saved from repeal All other acts and parts of acts inconsistent with this act are repealed. This act shall not repeal or modify any of the provisions of any act of Assembly amendatory of law in force at the time of the passage of this act, or otherwise adopted at the session of the General Assembly of one thousand nine hundred and thirtythree, whether such acts were adopted prior to the passage of this act, or shall be adopted subsequent to the passage of this act; nor shall this act repeal any such act, or part thereof, in force at the time of the passage of this act, which is amended by any act of Assembly adopted at the session of the General Assembly of one thousand nine hundred and thirty-three.

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CHAPTER 51

Part I Ch. 1–14 Brokers

ASSESSORS CERTIFICATION ACT 63 P.S. § 458.1 to 63 P.S. § 458.16

Sec.

1. Short title 2. Definitions 3. Regulations 4. Duties of board 5. Qualifications 6. Certification 7. Disciplinary and correction measures 8. Unlawful practice 9. Fees 10. Disposition of fees 11. Nonapplicability 12. Implementation 13. Holders of valid certification 14. Ratification of action 15. Construction of act 16. Retroactivity

Part II Ch. 15–22 Deeds Part III Ch. 23–35 Mortgages Part IV Ch. 36–40 Insurance

§ § § § § § § § § § § § § § § §

This act shall be known and may be cited as the Assessors Certification Act. § 2.  Definitions The following words and phrases when used in this act shall have the meanings given to them in this section unless the context clearly indicates otherwise:

“Board.” The State Board of Certified Real Estate Appraisers.

“Commissioner.” The Commissioner of Professional and Occupational Affairs in the Department of State.

Part VII Ch. 57–63 Litigation

“Certified Pennsylvania Evaluator.” An individual who has completed a minimum of 90 hours of basic courses of study covering the appraisal assessing profession and has successfully completed a comprehensive examination covering all phases of the appraisal process and the assessment function established by the assessment statutes of this Commonwealth.

Part VI Ch. 49–56 Taxation

“Assessor.” Any person responsible for the valuation of real property for ad valorem taxation purposes.

Part V Ch. 41–48A Zoning, etc.

§ 1.  Short title

“Revaluation company.” A mass appraisal company. The following words and phrases when used in this act shall have the meanings given to them in this section unless the context clearly indicates otherwise: “Assessor.” [Repealed by amendment] “Certified Pennsylvania Evaluator.” An individual holding a valid certificate issued in accordance with section 6. “Commissioner.” The Commissioner of Professional and Occupational Affairs in the Department of State.

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“Board.” The State Board of Certified Real Estate Appraisers.

Part VIII Ch. 64–67 L/T

§ 2.  Definitions [Effective April 27, 2021]

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§ 3

ASSESSORS CERTIFICATION ACT

“Property valuation model.” A model that expresses the forces of supply and demand at work in the local market and seeks to explain or predict the market value of properties from the available real estate data based on the sales comparison, cost and income approaches to value. The term shall include those models developed for use in mass appraisals that value a universe of properties as of a given date using standard methodology, employ common data and allow for statistical testing. “Revaluation company.” A mass appraisal company conducting appraisals of real property within this Commonwealth. “Revaluation company personnel.” Persons employed by a revaluation company, or by a contractor of a county or a revaluation company, and directly responsible for the valuation of real property or the development of a property valuation model. § 3.  Regulations The board may promulgate rules and regulations consistent with the statutes of this Commonwealth to administer and enforce the provisions of this act. § 4.  Duties of board (a)  Certification of assessors.—It shall be the duty of the board to certify all assessors in this Commonwealth. Any assessor employed on or before March 16, 1992, but not holding the title of Certified Pennsylvania Evaluator shall have three years from the effective date of employment as an assessor to obtain certification by the board. Any assessor employed after March 16, 1992, shall obtain certification within a period of three years from the effective date of employment as an assessor. (b)   Qualification of revaluation company personnel.—Any person employed by a revaluation company who is directly responsible for the valuation of real property shall have met the educational requirements of this act or successfully completed educational courses equal to the minimum qualifications established by the board. Failure to meet the requirements contained in this section will prohibit that person from determining the value of real property in this Commonwealth. (c)   Biennial renewal of certificates.—Renewal of certification shall occur on a biennial basis commencing with the 1993 renewal cycle administered by the board for other professional certification renewals. (d)  Continuing education.—An assessor applying for renewal of certification shall submit proof to the board that, during the two years immediately preceding renewal, the assessor has satisfactorily completed a minimum of 20 hours of continuing education relating to assessment and appraisal practices, provided that, for the 1993 renewal, an assessor shall be required to complete only ten hours of continuing education. The board shall approve continuing education courses and providers pursuant to regulations promulgated by the board. § 4.  Duties of board [Effective April 27, 2021] (a)  Certification. It shall be the duty of the board to certify any person responsible for the valuation of real property for ad valorem taxation purposes and revaluation company personnel in this Commonwealth. (b)  Qualification of revaluation company personnel. [Repealed by amendment] (c)  Biennial renewal of certificates. Renewal of certification shall occur on a biennial basis commencing with the 1993 renewal cycle administered by the board for other professional certification renewals.

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(a)  General rule.—All assessors in this Commonwealth shall meet the requirements enumerated in subsection (b).

Part II Ch. 15–22 Deeds

§ 5.  Qualifications

Part I Ch. 1–14 Brokers

(d)  Continuing education. A Certified Pennsylvania Evaluator applying for renewal of certification shall submit proof to the board that, during the two years immediately preceding renewal, the individual has satisfactorily completed the required minimum hours of continuing education relating to assessment and appraisal practice. The board shall approve continuing education courses and providers and set the required minimum hours pursuant to regulations promulgated by the board.

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(b)  Requirements.—An applicant shall meet the following requirements:

(2)   The applicant shall be at least 18 years of age. (3)  The applicant shall be a resident of this Commonwealth for at least six months.

§ 6.  Certification (a)  Requirement.—All assessors in this Commonwealth shall be certified under this act.

1. 71 P.S. § 279.3a. 2. 63 P.S. § 455.101 et seq. 3. 63 P.S. § 457.1 et seq.

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(e)  Licensure.—Nothing in this act shall relieve any individual or company from any otherwise applicable legal obligation to be licensed as a real estate broker pursuant to the act of February 19, 1980 (P.L. 15, No. 9), known as the Real Estate Licensing and Registration Act,2 or to be certified as a certified State real estate appraiser under the act of July 10, 1990 (P.L. 404, No. 98), known as the Real Estate Appraisers Certification Act.3

Part VIII Ch. 64–67 L/T

(d)  Certification.—Upon successful completion of the comprehensive examination, the board shall issue a Certified Pennsylvania Evaluator’s Certificate to the applicant. A certificate shall be valid for two years or until the next renewal cycle administered by the board for other professional certification renewals, whichever occurs earlier.

Part VII Ch. 57–63 Litigation

(c)  Examination.—Applicants shall successfully complete a comprehensive examination covering all phases of the appraisal process and the assessment function established by the assessment statutes of this Commonwealth. Any such examination shall be prepared and administered by a qualified and approved professional testing organization in accordance with section 812.1 of the act of April 9, 1929 (P.L. 177, No. 175), known as The Administrative Code of 1929.1

Part VI Ch. 49–56 Taxation

(b)  Application.—Application for certification shall be made to the board by completion of the board’s prescribed application form and shall be accompanied by the appropriate fee established by the board.

Part V Ch. 41–48A Zoning, etc.

§ 5.  Qualifications [Repealed effective April 27, 2021]

Part IV Ch. 36–40 Insurance

(4)   The applicant shall have successfully completed a minimum of 90 hours of the basic courses of study approved by the board covering the appraisal assessing profession or any other professional courses acceptable to the board. At the discretion of the county commissioners, the county may reimburse county assessors for the costs of completing the courses of study required by this subsection.

Part III Ch. 23–35 Mortgages

(1)   The applicant shall have a high school diploma, or its equivalent, or two years of assessing experience.

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§ 6

ASSESSORS CERTIFICATION ACT

§ 6.  Qualifications for certification [Effective April 27, 2021] (a)  Requirement. All persons responsible for the valuation of real property for ad valorem taxation purposes in this Commonwealth and all revaluation company personnel shall be certified under this act. (b)  Application. Application for certification shall be made to the board by completion of the board’s prescribed application form and shall be accompanied by the appropriate fee established by the board. An applicant shall: (1)  (Reserved). (2)   Have a high school diploma, or its equivalent, or two years of assessing experience. (3)   Be at least 18 years of age. (4)   Be a resident of this Commonwealth for at least six months. This paragraph does not apply to revaluation company personnel. (5)   Have successfully completed a minimum of 90 hours of the basic courses of study approved by the board covering the appraisal assessing profession or any other professional courses acceptable to the board. The basic course of study shall include instruction on judicial interpretation of the uniformity clause of the Constitution of Pennsylvania. At the discretion of the county commissioners of a county, the county may reimburse county assessors for the costs of completing the courses of study required by this subsection. (c)  Examination. Applicants shall successfully complete a comprehensive examination covering all phases of the appraisal process and the assessment function established by the assessment statutes of this Commonwealth. Any such examination shall be prepared and administered by a qualified and approved professional testing organization in accordance with section 812.1 of the act of April 9, 1929 (P.L. 177, No. 175), known as The Administrative Code of 1929. (d)  Certification. Upon successful completion of the comprehensive examination, the board shall issue a Certified Pennsylvania Evaluator’s Certificate to the applicant. A certificate shall be valid for two years or until the next renewal cycle administered by the board for other professional certification renewals, whichever occurs earlier. (e)  Licensure. Nothing in this act shall relieve any individual or company from any otherwise applicable legal obligation to be licensed as a real estate broker pursuant to the act of February 19, 1980 (P.L. 15, No. 9), known as the Real Estate Licensing and Registration Act, or to be certified as a certified State real estate appraiser under the act of July 10, 1990 (P.L. 404, No. 98), known as the Real Estate Appraisers Certification Act. § 6.1.  Employees of political subdivisions [Effective April 27, 2021] (a)  Local regulation. Except as provided in subsection (b), nothing in this act shall prohibit a political subdivision or an official authorized by law to value real property for ad valorem taxation purposes from the hiring, training and supervision of employees. (b)  Employee duties. An employee may assist in data collection and fulfill all other duties assigned by the political subdivision or official, except that the employee may not value real property unless certified in accordance with section 6.

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§ 7.  Disciplinary and correction measures

(2)   Failing to meet the minimum qualifications established by this act.

(4)   Being convicted of or pleading guilty to a crime which is substantially related to the qualifications, functions and duties of a person developing real property assessments.

(6)   Violating any of the standards of professional conduct for real property assessment as adopted by the board by regulation.

(8)  Negligently or incompetently developing an assessment or preparing an assessment.

(10)  Violating the confidential nature of records to which the assessor gained access through employment or engagement as an assessor.

(b)  Board action.—When the board finds that the certification or application for certification or renewal of a person should be denied, revoked, restricted or suspended under the terms of subsection (a), the board may: (1)   Deny the application for certification or renewal. (3)   Revoke, suspend, limit or otherwise restrict a certificate as determined by the board. (4)  Suspend enforcement of its findings and place a certificate holder on probation with the right to vacate the probationary order for noncompliance.

§ 7.  Disciplinary and correction measures [Effective April 27, 2021] (a)   Authority of board. The board may deny, suspend or revoke certificates or limit, restrict or reprimand a certificate holder for any of the following causes:

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(5)  Restore a suspended certification and impose any disciplinary or corrective measure which it might originally have imposed.

Part VIII Ch. 64–67 L/T

(2)   Administer a public reprimand.

Part VII Ch. 57–63 Litigation

(11)  Having an assessor’s license or certificate suspended, revoked or refused or receiving other disciplinary action by a licensing or certification authority of another state, territory or country.

Part VI Ch. 49–56 Taxation

(9)  Willfully disregarding or violating any of the provisions of this act or the regulations of the board for the administration and enforcement of the provisions of this act.

Part V Ch. 41–48A Zoning, etc.

(7)   Failing or refusing, without good cause, to exercise reasonable diligence in developing an assessment or preparing an assessment report.

Part IV Ch. 36–40 Insurance

(5)   Performing an act or omitting an act when such performance or omission involves dishonesty, fraud or misrepresentation with intent to substantially benefit the certificate holder in his profession or with the intent to substantially injure another person.

Part III Ch. 23–35 Mortgages

(3)   Paying or offering to pay any valuable consideration other than provided for by this act to any member or employee of the board to procure a certificate or renewal of a certificate under this act.

Part II Ch. 15–22 Deeds

(1)   Procuring or attempting to procure a certificate or renewal of a certificate pursuant to this act by knowingly making a false statement, submitting false information or refusing to provide complete information in response to a question in an application for certification or renewal.

Part I Ch. 1–14 Brokers

(a)  Authority of board.—The board may deny, suspend or revoke certificates or limit, restrict or reprimand a certificate holder for any of the following causes:

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§ 8

ASSESSORS CERTIFICATION ACT

(1)   Procuring or attempting to procure a certificate or renewal of a certificate pursuant to this act by knowingly making a false statement, submitting false information or refusing to provide complete information in response to a question in an application for certification or renewal. (2)   Failing to meet the minimum qualifications established by this act. (3)   Paying or offering to pay any valuable consideration other than provided for by this act to any member or employee of the board to procure a certificate or renewal of a certificate under this act. (4)  Being convicted of or pleading guilty to a crime that directly relates to or has a direct bearing on the fitness or ability to perform one or more of the duties or responsibilities necessarily related to the development of real property assessments. (5)   Performing an act or omitting an act when such performance or omission involves dishonesty, fraud or misrepresentation with intent to substantially benefit the certificate holder in his profession or with the intent to substantially injure another person. (6)   Violating any of the standards of professional conduct for real property assessment as adopted by the board by regulation. (7)   Failing or refusing, without good cause, to exercise reasonable diligence in developing an assessment or preparing an assessment report. (8)  Negligently or incompetently developing an assessment or preparing an assessment. (9)  Willfully disregarding or violating any of the provisions of this act or the regulations of the board for the administration and enforcement of the provisions of this act. (10)  Violating the confidential nature of records to which the certificate holder gained access through employment or engagement as an assessor. (11)  Having an assessor’s or evaluator’s license or certificate suspended, revoked or refused or receiving other disciplinary action by a licensing or certification authority of another state, territory or country. (b)  Board action. When the board finds that the certification or application for certification or renewal of a person should be denied, revoked, restricted or suspended under the terms of subsection (a), the board may: (1)   Deny the application for certification or renewal. (2)   Administer a public reprimand. (3)   Revoke, suspend, limit or otherwise restrict a certificate as determined by the board. (4)  Suspend enforcement of its findings and place a certificate holder on probation with the right to vacate the probationary order for noncompliance. (5)  Restore a suspended certification and impose any disciplinary or corrective measure which it might originally have imposed. § 8.  Unlawful practice (a)  Prohibition.—A person may not perform valuations of real property for ad valorem tax purposes, except as provided by the three-year grace period under section 4(a),4 unless the person is currently certified by the board as a Certified Pennsylvania Evaluator. 4. 63 P.S. § 458.4(a).

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(a)   Prohibition on ad valorem tax valuations. A person may not perform valuations of real property for ad valorem tax purposes unless the person is currently certified by the board as a Certified Pennsylvania Evaluator.

(e)  Civil penalty. In addition to any other civil remedy or criminal penalty provided in this act, the board, by a vote of the majority of the maximum number of the authorized membership of the board as provided by law or by a vote of the majority of the duly qualified and confirmed membership or a minimum of three members, whichever is greater, may, after affording an accused party the

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(d)  Remedy cumulative. The injunctive remedy provided in this section shall be in addition to any other civil or criminal prosecution and punishment.

Part VIII Ch. 64–67 L/T

(c)  Injunction. A violation of subsection (a) may be enjoined by the courts upon petition of the commissioner or the board. In any proceeding under this section, it shall not be necessary to show that any person is individually injured by the actions complained of. If the court finds that the respondent has violated subsection (a), it shall enjoin him or her from so practicing or holding himself or herself out until he or she has been duly certified. Procedure in such cases shall be the same as in any other injunctive suit.

Part VII Ch. 57–63 Litigation

(b)  Penalty. A person who intentionally violates subsection (a) commits a misdemeanor of the third degree and shall, upon conviction, be sentenced to pay a fine of $ 2,500 or to imprisonment for not more than one year, or both.

Part VI Ch. 49–56 Taxation

(a.1)  Revaluation company personnel. No revaluation company personnel shall determine the value of real property in this Commonwealth or develop property valuation models for use in this Commonwealth unless currently certified by the board as a Certified Pennsylvania Evaluator.

Part V Ch. 41–48A Zoning, etc.

§ 8.  Unlawful practice [Effective April 27, 2021]

Part IV Ch. 36–40 Insurance

(e)  Civil penalty.—In addition to any other civil remedy or criminal penalty provided in this act, the board, by a vote of the majority of the maximum number of the authorized membership of the board as provided by law or by a vote of the majority of the duly qualified and confirmed membership or a minimum of three members, whichever is greater, may levy a civil penalty of up to $1,000 on any current certificate holder who violates any provision of this act or on any person who holds himself or herself out as a Certified Pennsylvania Evaluator or performs valuations of real property for ad valorem tax purposes for which certification as a Certified Pennsylvania Evaluator is required without being so certified pursuant to this act. The board shall levy this penalty only after affording the accused party the opportunity for a hearing, as provided in 2 Pa.C.S. (relating to administrative law and procedure).

Part III Ch. 23–35 Mortgages

(d)  Remedy cumulative.—The injunctive remedy provided in this section shall be in addition to any other civil or criminal prosecution and punishment.

Part II Ch. 15–22 Deeds

(c)  Injunction.—A violation of subsection (a) may be enjoined by the courts upon petition of the commissioner or the board. In any proceeding under this section, it shall not be necessary to show that any person is individually injured by the actions complained of. If the court finds that the respondent has violated subsection (a), it shall enjoin him or her from so practicing or holding himself or herself out until he or she has been duly certified. Procedure in such cases shall be the same as in any other injunctive suit.

Part I Ch. 1–14 Brokers

(b)  Penalty.—A person who intentionally violates subsection (a) commits a misdemeanor of the third degree and shall, upon conviction, be sentenced to pay a fine of $2,500 or to imprisonment for not more than one year, or both.

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§ 9

ASSESSORS CERTIFICATION ACT

opportunity for a hearing as provided in 2 Pa.C.S. (relating to administrative law and procedure), levy a civil penalty of up to $1,000 on any of the following: (1)   A current certificate holder who violates a provision of this act. (2)   A person who holds himself out as a Certified Pennsylvania Evaluator without being so certified under this act. (3)   A person who violates the prohibitions in subsections (a) and (a.1). § 9.  Fees The board shall establish by regulation such fees as it deems necessary for applications, examinations, certifications and renewals authorized by this act or by regulations promulgated by the board. § 10.  Disposition of fees All fees collected under this act shall be deposited in the Professional Licensure Augmentation Account. § 11.  Nonapplicability This act shall not apply to counties of the first class. § 11.  Nonapplicability [Repealed effective December 28, 2020] § 11.1.  Assessors in counties of the first class [Effective December 28, 2020] An assessor who is employed by a county of the first class on the effective date of this section shall have three years from the effective date of this section to become certified under this act. § 12.  Implementation In order to facilitate the speedy implementation of this act, the board shall have the power and authority to promulgate, adopt and use guidelines, including the authority to prescribe the examination and other qualifications required for certification and renewal under this section. Such guidelines shall be published in the Pennsylvania Bulletin. The guidelines shall not be subject to review under section 205 of the act of July 31, 1968 (P.L. 769, No. 240), referred to as the Commonwealth Documents Law,5 sections 204(b) and 301(10) of the act of October 15, 1980 (P.L. 950, No. 164), known as the Commonwealth Attorneys Act,6 or the act of June 25, 1982 (P.L. 633, No. 181), known as the Regulatory Review Act,7 and shall be effective for a period not to exceed two years from the effective date of this act. After the expiration of the two-year period, the guidelines shall expire and shall be replaced by regulations which shall have been promulgated, adopted and published as provided by law. § 13.  Holders of valid certification Any person who, on the effective date of this act, holds a valid certificate issued by the State Tax Equalization Board under the act of December 17, 1986 (P.L. 1675, No. 192), known as the Assessors Certification Act,8 prior to the effective date of this act shall on and after the effective date of this act be deemed to be certified by the State Board of Certified Real Estate Appraisers as provided in this act, provided that such certification shall expire commencing with the 1993 renewal cycle administered by the board for other professional certification renewals unless renewed in accordance with this act. 5. 45 P.S. § 1205. 6. 71 P.S. §§ 732-204(b), 732-301(10). 7. 71 P.S. § 745.1 et seq. 8. 72 P.S. § 5010.1 et seq. (expired).

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§ 14.  Ratification of action Part I Ch. 1–14 Brokers

All actions taken by the State Tax Equalization Board relative to the administration of the provisions of the expired act of December 17, 1986 (P.L. 1675, No. 192), known as the Assessors Certification Act,9 between March 17, 1992, and the effective date of this act are hereby ratified and validated. § 15.  Construction of act

§ 16.  Retroactivity

Part II Ch. 15–22 Deeds

This act shall be construed as a continuation of the act of December 17, 1986 (P.L. 1675, No. 192), known as the Assessors Certification Act.10 This act shall be retroactive to March 17, 1992.

Part III Ch. 23–35 Mortgages Part IV Ch. 36–40 Insurance Part V Ch. 41–48A Zoning, etc. Part VI Ch. 49–56 Taxation Part VII Ch. 57–63 Litigation Part VIII Ch. 64–67 L/T Part IX Ch. 68–72 Condos, etc.

9. 72 P.S. § 5010.1 et seq. (expired). 10. 72 P.S. § 5010.1 et seq. (expired).

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CHAPTER 52 MUNICIPAL CLAIMS AND TAX LIENS 53 P.S. § 7101 to 53 P.S. § 7505

Sec. § § § § § § § § § § § § § § § § § § § § § § § § § § § § § § § § § § § § § § § § § § § § § § § §

7101. Definitions 7102. Local taxes a first lien; date 7103. Taxes first lien 7104. Tax lien divested by judicial sale 7105. Officer to pay taxes out of proceeds of sale 7106. Municipal claims first lien; cities of first class; docketing; judgment; execution 7107. Entitlement to liens for taxes, removal of nuisances, grading, paving; assignment by municipal authority; claim to use of contractor 7108. Exemptions 7108.1. Donations of property subject to claim for taxes 7109. Tax claims against real estate owned by joint tenants, tenants in common, or coparceners 7110. Separate and distinct properties; apportionment of charge 7111. Application of act 7112. Construction and constitutionality of act; repealer; act not repealed 7141. Neglect of owner condition precedent to filing claim for curbing, etc. 7142. Claims filed to use 7143. Time and place for filing; liability; interest; form; contents; appeals from assessments; indexing; revival; order fixing amount 7144. Contents of claim; signature; county taxes, levies or assessments; affidavit of use plaintiff 7145. Property included in claims; payment of portion 7146. Locality index; unpaid tax list; consumer reporting agencies 7147. Assignment of claims, etc. 7181. Intervening or substituted defendants 7182. Petition of defendant; payment into court; affidavit; rule; decree; jury trial 7183. Time of lien; suggestion and averment of nonpayment and default; scire facias; form; dockets and indexes; fees; extension of lien; loss of lien 7184. Notice to issue scire facias; failure to issue; claimant not permitted to discontinue after issuance 7185. Form of scire facias; addition of parties; amicable scire facias 7186. Addition by sheriff of parties to writ; posting copy; service of writ; return 7187. Evidence; compulsory non-suit; verdict; attorney’s fee 7188. Amendments to claims, etc.; opening of default judgments 7189. Return of rules; pleadings; findings 7190. Service of notices; petitions and rules 7191. Security 7192. Use-plaintiffs; duty to enter satisfaction; penalty 7193. Repealed 7193.1. Notice of interest; registration; service 7193.2. Rule to show cause; decree; service; notice 7193.3. Validity of sale; time for filing contest 7193.4. Cities of first class; time for proceeding on claims; preclusion of sale for undue hardship 7193.5. Procedures available to tax claim bureaus 7194. Prothonotaries to make up convenient dockets of unsatisfied tax liens 7195. Dockets to be evidence and notice; original dockets to lose effect 7196. Separate dockets of unpaid taxes to be kept; effect of entries in dockets 7197. Lost liens to be satisfied upon execution or public sale 7198. Recovery for services rendered outside municipality 7199. Procedure same as within limits 7200. Definitions 7201. Corporate reorganizations 7202. Arrangement proceedings by persons other than corporations 7203. Penalty for failure to pay assessments

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Part IV Ch. 36–40 Insurance Part V Ch. 41–48A Zoning, etc. Part VI Ch. 49–56 Taxation Part VII Ch. 57–63 Litigation Part VIII Ch. 64–67 L/T Part IX Ch. 68–72 Condos, etc. Index

gtb-parealestate22-all.indb 825

Part III Ch. 23–35 Mortgages

825

Part II Ch. 15–22 Deeds

7231. Definitions 7232. Inquiry as to indebtedness; withholding approval of claims 7233. Agreements as to payments; withholding payment 7234. Petition to court of common pleas; rule to appear; termination of proceedings when agreement entered into § 7235. Order and decree for set-off; costs § 7251. Collection of municipal claims by assumpsit; limitations § 7252. Actions previously instituted § 7271. Judgment for want of affidavit of defense; assessment of damages; rule for judgment; replication § 7272. Scire facias to revive judgment; form; fee for additional names § 7273. Service of scire facias to revive judgment; procedure § 7274. Judgment for plaintiff; costs § 7275. Sequestrator; supersedeas § 7276. Dockets § 7277. Stay of proceedings; security for; effect; expiration § 7278. Levari facias; form; advertisement of sale; sheriff’s deed § 7279. Upset sale price; purchase by municipality § 7280. Execution against quasi public corporations § 7281. Judicial sales; effect of; postponement of sale; decree for sale; stay; evidence; bids; redemption; deed § 7282. Counties of first class; recovery of judgment; sale free from claims § 7283. Cities of first class; recovery of judgment; sale free from claims § 7283a. Judicial sales; multiple properties sold together § 7284. Legislative finding § 7285. Certification of area as a conservation area § 7286. “Vacant lot” defined § 7287. Petition to sell property; order; redemption; notice of sale § 7288. Testimony respecting whereabouts of interested parties § 7289. Purchase by claimant § 7290. Deed § 7291. Disposition of proceeds of sale § 7292. Payment of costs prior to proposed sale § 7293. Redemption § 7321. Abatement of certain charges on payment of delinquent claims § 7322. Payments may be anticipated § 7323. Claims to which abatement privilege extends § 7324. Persons within benefit of act § 7325. Individual properties may be cleared; statement of claims owed; notice to property owners § 7326. Adjournment of sales for nonpayment of taxes § 7327. Assessments forming sole basis of improvement bonds not affected § 7328. Abatement of certain charges on payment of delinquent claims § 7329. Claims to which abatement privilege extends § 7330. Persons within benefit of act § 7331. Individual properties may be cleared; statement of claims owed § 7332. Adjournment of sales for nonpayment of taxes § 7333. Assessments forming sole basis of improvement bonds not affected § 7334. Abatement of debt, interest and penalties in certain cases § 7335. Application of act §§ 7361 to Repealed  7365. § 7391. Delayed filing; amendment of claims, etc. § 7392. Loss of lien or claim; proceedings to revive authorized § 7393. Unfiled municipal claims ratified if filed within six months; amicable writs of scire facias to revive claims validated § 7394. Counties authorized to revive certain tax liens § 7395. Boroughs and townships of first class authorized to revive certain tax liens § 7396. Ratification of amicable writ of scire facias filed by borough or township of first class to revive municipal claim § 7397. Boroughs and townships of first class authorized to revive municipal claims § 7398. Boroughs, townships and cities of third class authorized to revive municipal claims

Part I Ch. 1–14 Brokers

§ § § §

Ch. 52

Table of Contents

PART VI

12/22/21 10:45 AM

§ 7101 § § § § § § § § § § § § § § § § § § § § § § § § § § § § § § § § § §

MUNICIPAL CLAIMS AND TAX LIENS

7399. Revival of certain warrants 7400. Actions to collect tax validated 7401. Statute of limitations inapplicable 7402. City or school district of first class 7431. Errors in names or descriptions of property; amendment; proceedings 7432. Failure to file claim; inadequate description of property; failure to sue out scire facias, file averment of default, or enter or revive judgment 7433. Errors in names or descriptions of property; filing of amended tax lien 7434. Variance in names; validation of sale 7435. Tax liens in certain counties where claim not signed by controller, validated 7436. Judicial sale for less than upset price; validation of sale 7437. Intervening rights of third persons protected; litigated cases 7438. Validation of sales; fieri facias instead of levari facias 7439. Treasurers’ sales for delinquent taxes without adjournment, validated 7440. Validation of municipal improvements, assessments, claims and liens 7441. Filing of liens for improvement 7442. Proceeding for collection of claim 7443. Claims already filed validated 7444. Municipal improvements, assessments, claims and liens 7445. Filing liens 7446. Collection of claim 7447. Municipal improvements, assessments, claims and liens 7448. Lien, filing, contents, prima facie evidence 7449. Collection of claim; application of statute 7450. Municipal improvements, assessments, claims and liens 7451. Lien, filing, contents, prima facie evidence 7452. Collection of claim; application of statute 7453. Municipal improvements, assessments, claims and liens 7454. Lien, filing, contents, prima facie evidence 7455. Collection of claim; application of statute 7501. Name of act 7502. Definition 7503. Taxpayer’s record transmitted to prothonotary 7504. Dockets; indexes; lien; judgment; execution; sale; revival; scire facias 7505. Appeal from assessment

§ 7101.  Definitions The word “taxes,” as used in this act, means any county, city, borough, incorporated town, township, school, bridge, road, or poor taxes, together with and including all penalties, interest, costs, charges, expenses and fees, including reasonable attorney fees, as allowed by this act and all other applicable laws. The word “highway,” as used in this act, means the whole or any part of any public street, public road, public lane, public alley, or other public highway. The words “tax claim,” as used in this act, mean the claim filed to recover taxes. The words “municipal claim,” as used in this act, unless specifically indicated otherwise, mean and include (1) the claim arising out of, or resulting from, a tax assessed, service supplied, work done, or improvement authorized and undertaken, by a municipality, although the amount thereof be not at the time definitely ascertained by the authority authorized to determine the same, and a lien therefor be not filed, but becomes filable within the period and in the manner herein provided, (2) the claim filed to recover for the grading, guttering, macadamizing, or otherwise improving, the cartways of any public highway; for grading, curbing, recurbing, paving, repaving, constructing, or repairing the footways thereof; for laying water pipes, gas pipes, culverts, sewers, branch sewers, or sewer connections therein; for assessments for benefits in the opening, widening

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Ch. 52

Part III Ch. 23–35 Mortgages Part IV Ch. 36–40 Insurance Part V Ch. 41–48A Zoning, etc. Part VI Ch. 49–56 Taxation Part VII Ch. 57–63 Litigation Part VIII Ch. 64–67 L/T Part IX Ch. 68–72 Condos, etc. Index

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Part II Ch. 15–22 Deeds

827

Part I Ch. 1–14 Brokers

or vacation thereof; or in the changing of water-courses or the construction of sewers through private lands; or in highways of townships of the first class; or in the acquisition of sewers and drains constructed and owned by individuals or corporations, and of rights in and to use the same; for the removal of nuisances; or for water rates, lighting rates, or sewer rates, and (3) the claim filed to recover for work, material, and services rendered or furnished in the construction, improvement, maintenance, and operation of a project or projects of a body politic or corporate created as a Municipal Authority pursuant to law. A municipal claim shall be together with and shall include all penalties, interest, costs, fines, charges, expenses and fees, including reasonable attorney fees, as allowed by this act and all other applicable laws. The word “claimant,” as used in this act, means the plaintiff or use-plaintiff in whose favor the claim is filed as a lien. The word “contractor,” as used in this act, means the person or persons who, under contract with the legal plaintiff, performed the work for which the lien is given. The word “property,” as used in this act, means the real estate subject to the lien and against which the claim is filed as a lien. The word “owner,” as used in this act, means the person or persons in whose name the property is registered, if registered according to law, and, in all other cases, means any person or persons in open, peaceable and notorious possession of the property, as apparent owner or owners thereof, if any, or the reputed owner or owners thereof in the neighborhood of such property. The word “municipality,” as used in this act, means any county, city, borough, incorporated town, township, school district, or a body politic and corporate created as a Municipal Authority pursuant to law and any assignees thereof. The words “charges, expenses, and fees,” as used in this act, include all sums paid or incurred by a municipality to file, preserve and collect unpaid taxes, tax claims, tax liens, municipal claims and municipal liens, including, but not limited to, prothonotary and sheriff fees, postage expenses, and title search expenses. A county, city, borough, incorporated town, township, school district or municipal authority may also recover as “charges, expenses, and fees” the charges, expenses, commissions and fees of third-party collectors retained by the county, city, borough, incorporated town, township, school district or municipal authority, provided that the charges, expenses, commissions and fees of such third-party collectors are approved by legislative action of the county, city, borough, incorporated town, township, school district or municipal authority which levies the unpaid taxes, tax claims, tax liens, municipal claims and municipal liens. § 7102.  Local taxes a first lien; date All taxes which may hereafter be lawfully imposed and assessed by counties, institution districts, cities, boroughs, towns, townships, and school districts on real property, are hereby declared to be a first lien on such real property (but subordinate to the lien of taxes imposed by the Commonwealth), and every such lien shall date from the day on which the millage or tax rate is fixed by the proper authority of any such political subdivision, except where such taxes are imposed and assessed prior to the commencement of the fiscal year for which the same are imposed or assessed, in which case the lien of such taxes shall date from the first day of the fiscal year for which such taxes are imposed or assessed. § 7103.  Taxes first lien All taxes which may hereafter be lawfully imposed or assessed on any property in this Commonwealth, and all taxes heretofore lawfully imposed or assessed by any municipality on any property in this Commonwealth for the years one thousand nine hundred and twenty-one, one thousand nine hundred and twentytwo, and one thousand nine hundred and twenty-three, in the manner and to

Table of Contents

PART VI

12/22/21 10:45 AM

§ 7104

MUNICIPAL CLAIMS AND TAX LIENS

the extent hereinafter set forth, shall be and they are hereby declared to be a first lien on said property, together with all charges, expenses, and fees added thereto for failure to pay promptly; and such liens shall have priority to and be fully paid and satisfied out of the proceeds of any judicial sale of said property, before any other obligation, judgment, claim, lien, or estate with which the said property may become charged or for which it may become liable, save and except only the costs of the sale and of the writ upon which it is made. § 7104.  Tax lien divested by judicial sale The lien of all taxes now or hereafter to be levied or assessed against any real estate within this Commonwealth shall be divested by any judicial sale of such land: Provided, The amount of the purchase money shall equal the amount of the said taxes. § 7105.  Officer to pay taxes out of proceeds of sale It is hereby made the duty of any officer having taxes for collection against any land advertised to be sold, or of the county commissioners before the taxes have been certified for collection, to give notice to the officers or person selling any such land of the amount of taxes against the same, and the officer selling such land shall pay said taxes out of the proceeds arising from the sale first after payment of the costs of sale. § 7106.  Municipal claims first lien; cities of first class; docketing; judgment; execution (a)(1)   All municipal claims, municipal liens, taxes, tax claims and tax liens which may hereafter be lawfully imposed or assessed on any property in this Commonwealth, and all such claims heretofore lawfully imposed or assessed within six months before the passage of this act and not yet liened, in the manner and to the extent hereinafter set forth, shall be and they are hereby declared to be a lien on said property, together with all charges, expenses, and fees incurred in the collection of any delinquent account, including reasonable attorney fees under subsection (a.1), added thereto for failure to pay promptly; and municipal claims and municipal liens shall arise when lawfully imposed and assessed and shall have priority to and be fully paid and satisfied out of the proceeds of any judicial sale of said property, before any other obligation, judgment, claim, lien, or estate with which the said property may become charged, or for which it may become liable, save and except only the costs of the sale and of the writ upon which it is made, and the taxes, tax claims and tax liens imposed or assessed upon said property. (2)  A claim for property taxes that has been reduced to judgment shall be enforceable as a lien against real property in the same manner and to the same extent as a judgment for money under the generally applicable laws of this Commonwealth. For purposes of this clause, “reduced to judgment” means a claim rendered absolute under section 311 of the act of July 7, 1947 (P.L. 1368, No. 542),1 known as the “Real Estate Tax Sale Law,” and those given the effect of a judgment in accordance with this act. (3)   Notwithstanding any other provision of law, when a judgment or lien under this section is reduced or satisfied by payment or a sale of the property, the judgment creditor shall notify the tax claim bureau or prothonotary where the original tax claim is docketed and shall enter the satisfaction in the office of the clerk of the court in the county where the judgment is outstanding. No tax claim shall be subject to additional interest as a result of enforcement as a judgment lien under clause (2). (4)  A judgment lien under this subsection shall exist separate and apart from the tax lien. 1. 72 P.S. § 5860.311.

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Ch. 52

Part III Ch. 23–35 Mortgages Part IV Ch. 36–40 Insurance Part V Ch. 41–48A Zoning, etc. Part VI Ch. 49–56 Taxation Part VII Ch. 57–63 Litigation Part VIII Ch. 64–67 L/T Part IX Ch. 68–72 Condos, etc. Index

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Part II Ch. 15–22 Deeds

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Part I Ch. 1–14 Brokers

(5)   Nothing in this subsection shall be construed as affecting other remedies available to a municipality for collection of a tax or the priority or amount of a tax lien. (a.1)   It is not the intent of this section to require owners to pay, or municipalities to sanction, inappropriate or unreasonable attorney fees, charges or expenses for routine functions. Attorney fees incurred in the collection of any delinquent account, including municipal claims, municipal liens, taxes, tax claims and tax liens, shall be in an amount sufficient to compensate attorneys undertaking collection and representation of a municipality or its assignee in any actions in law or equity involving claims arising under this act. A municipality by ordinance, or by resolution if the municipality is of a class which does not have the power to enact an ordinance, shall adopt the schedule of attorney fees. Where attorney fees are sought to be collected in connection with the collection of a delinquent account, including municipal claims, municipal liens, taxes, tax claims and tax liens, the owner may petition the court of common pleas in the county where the property subject to the municipal claim and lien, tax claim and lien or taxes is located to adjudicate the reasonableness of the attorney fees imposed. In the event that there is a challenge to the reasonableness of the attorney fees imposed in accordance with this section, the court shall consider, but not be limited to, the following: (1)   The time and labor required, the novelty and difficulty of the questions involved and the skill requisite to properly undertake collection and representation of a municipality. (2)   The customary charges of the members of the bar for similar services. (3)   The amount of the delinquent account collected and the benefit to the municipality from the services. (4)   The contingency or the certainty of the compensation. (a.2)   Any time attorney fees are awarded pursuant to any provision of law, the municipality shall not be entitled to duplicate recovery of attorney fees under this section. (a.3)(1)   At least thirty days prior to assessing or imposing attorney fees in connection with the collection of a delinquent account, including municipal claims, municipal liens, taxes, tax claims and tax liens, a municipality shall, by United States certified mail, return receipt requested, postage prepaid, mail to the owner the notice required by this subsection. (2)   If within thirty days of mailing the notice in accordance with clause (1) the certified mail is refused or unclaimed or the return receipt is not received, then at least ten days prior to assessing or imposing attorney fees in connection with the collection of a delinquent account, a municipality shall, by United States first class mail, mail to the owner the notice required by this subsection. (3)  The notice required by this subsection shall be mailed to the owner’s last known post office address by virtue of the knowledge and information possessed by the municipality and by the county office responsible for assessments and revisions of taxes. It shall be the duty of the municipality to determine the owner’s last post office address known to said collector and county assessment office. (4)   The notice to the owner shall include the following: (i)   A statement of the municipality’s intent to impose or assess attorney fees within thirty days of mailing the notice pursuant to clause (1) or within ten days of the mailing of the notice pursuant to clause (2). (ii)   The manner in which the imposition or assessment of attorney fees may be avoided by payment of the delinquent account. (b)   With the exception of those claims which have been assigned, any municipal claim, municipal lien, tax, tax claim or tax lien, including interest, penalty

Table of Contents

PART VI

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§ 7107

MUNICIPAL CLAIMS AND TAX LIENS

and costs, imposed by a city of the first class, shall be a judgment only against the said property when the lien has been docketed by the prothonotary. The docketing of the lien shall be given the effect of a judgment against the said property only with respect to which the claim is filed as a lien. The prothonotary shall maintain an in rem index, the form and location of which shall be within the prothonotary’s discretion. All tax claims, water rents or rates, lighting rates, power rates and sewer rates heretofore filed are hereby ratified, confirmed and made valid subsisting liens as of the date of their original filing. (c)   A writ of execution may issue directly without prosecution to judgment of a writ of scire facias. Any property sold in execution shall be sold in compliance with the provisions of section 31.2.2 (d)   Attorney fees may be imposed and collected in accordance with this section upon all taxes, tax claims, tax liens, municipal claims, municipal liens, writs of scire facias, judgments or executions filed on or after December 19, 1990. § 7107.  Entitlement to liens for taxes, removal of nuisances, grading, paving; assignment by municipal authority; claim to use of contractor The lien for taxes shall exist in favor of, and the claim therefor may be filed against the property taxed by, any municipality to which the tax is payable. The lien for the removal of nuisances shall exist in favor of, and the claim therefor may be filed against the property from which it is removed, or by which it is caused, by, any municipality by or for which the nuisance is removed. The lien for grading, guttering, paving, macadamizing, or otherwise improving the cartways of any highways; for grading, curbing, recurbing, paving, repaving, constructing, or repairing the footways thereof; or for laying water pipes, gas pipes, culverts, sewers, branch sewers, or sewer connections in any highway; for assessments for benefits in the opening, widening, or vacation thereof; or in the changing of watercourses or construction of sewers through private lands; or in highways of townships of the first class; or in the acquisition of sewers and drains constructed and owned by individuals or corporations, and of rights in and to use the same; or for water rates, lighting rates, or sewer rates, or rates for any other service furnished by a municipality,—shall exist in favor of, and the claim therefor3 may be filed against the property thereby benefited by, the municipality extending the benefit; or the city, borough, or township in which the property is located, if the work, material or service forming the basis of such lien was supplied by a municipal authority organized by a city of the second class, by a county of the second class or by a city of the third class and such liens or the claim therefor has been assigned to it. Municipal authorities organized by cities of the second class, by counties of the second class or by cities of the third class are hereby authorized to assign their municipal claims and their liens to the city, borough, or township in which the property subject thereto is located, and cities, boroughs and townships in which such property is located are hereby authorized to purchase the same. Upon such assignment or purchase the city, borough, or township acquiring such municipal claim or lien shall have the same rights thereunder as if it had supplied the work, material or service upon which such municipal claim or lien is based. When the contractor performing the work is to be paid by assessment bills, the lien shall exist for, and the claim shall be filed to, his use, and he shall under no circumstances have recourse to the municipality authorizing the work.

2. 53 P.S. § 7283. 3. Enrolled bill reads “therefore”.

830

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REAL ESTATE TAXATION

Ch. 52

Part IV Ch. 36–40 Insurance Part V Ch. 41–48A Zoning, etc. Part VI Ch. 49–56 Taxation Part VII Ch. 57–63 Litigation Part VIII Ch. 64–67 L/T Part IX Ch. 68–72 Condos, etc. Index

gtb-parealestate22-all.indb 831

Part III Ch. 23–35 Mortgages

831

Part II Ch. 15–22 Deeds

§ 7108.1.   Donations of property subject to claim for taxes (a)   A county, city, borough, incorporated town, township, home rule municipality, optional plan municipality or optional charter municipality may accept the donation of a property that is subject to a claim for taxes. A municipal authority, other than a redevelopment authority, or a school district may participate in a donation pursuant to subsection (g). A municipality shall provide written notice to other local municipalities or their designees under subsection (f) of a donation proposed by the owner of the property. A donation under this subsection shall not be accepted less than thirty days after notice to all other municipalities which have a claim for taxes on the subject property under this act. A donation under this subsection shall operate to divest all liens against the property possessed by the municipality accepting the donation and all other local tax liens recorded prior to the date of donation, except as otherwise provided in this section and except mortgages recorded prior to the tax liens. (b)   A municipality which receives a notice of proposed donation may request to participate in negotiations with regard to the donation and extinguishment of all or part of its liens and with regard to proposals to return the property to the tax rolls or to productive public use. A municipality which does not respond in writing to the notice within thirty days of its receipt of the notice shall waive its right to participate in the donation negotiations, and its lien shall be extinguished. A municipality participating in donation negotiations may agree to extinguish all existing liens against the property in exchange for full or partial satisfaction of its claims upon future sale of the property by the municipality accepting the donation. Every negotiation shall consider the structure and condition of the property, the market value of the property in its current condition, the best use of the property given the neighborhood and local ordinances and the costs to cure any defects, including defects in title. (c)  A donation under this subsection shall be by deed recorded, and registered where required, with the county recorder of deeds. The deed shall be accompanied by recorded satisfactions of any and all claims for taxes which are extinguished by virtue of the donation. In all instances the satisfaction from the municipality which is accepting ownership of the property pursuant to the donation shall provide for full extinguishment of all claims under this act possessed by it. Satisfactions of liens shall provide that all claims of all municipalities in which the property is located are discharged and extinguished, unless terms are otherwise agreed upon between the owner and the municipalities participating in the donation negotiations. (d)   Property that has been donated under this section shall be exempt from claims for taxes from all the municipalities in which it is located during the time

Part I Ch. 1–14 Brokers

§ 7108.  Exemptions All real estate, by whomsoever owned and for whatsoever purpose used, other than property owned by the State or the United States, shall be subject to all tax and municipal claims herein provided for, except that all property owned by any county, city, or other municipality or municipal division, and actual places of religious worship, places of burial not held or used for private or corporate profit, and institutions of purely public charity, shall not be subject to tax or municipal claims on property, by law, exempt from taxation except for the removal of nuisances, for sewer claims and sewer connections, or for the curbing, recurbing, paving, repaving, or repairing the footways in front thereof. All other real estate, by whomsoever owned and for whatsoever purpose used, shall be subject to all tax claims and municipal claims herein provided for: Provided, however, That nothing in this act contained shall hinder or prevent any municipality from providing that any municipal work may be done at the expense of the public generally, and be paid out of the general funds of the municipality.

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PART VI

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§ 7109

MUNICIPAL CLAIMS AND TAX LIENS

that it remains in the ownership of the county, city, borough, incorporated town, township, home rule municipality, optional plan municipality, optional charter municipality, redevelopment authority or school district to which it was donated. (e)   Notwithstanding any other provision of law, an owner who donates property under this section shall not be personally liable for the amount of claims for taxes exempted or extinguished as a result of the donation. (f)   A county, city, borough, incorporated town, township, home rule municipality, optional plan municipality or optional charter municipality in which the property is located may designate another such municipality, or a redevelopment authority in which the property is located, to act as its agent with regard to a donation under this section. A single municipality or the redevelopment authority may be selected as the agent for all municipalities holding a tax claim or lien. In returning the property to the tax rolls or to productive public use, a municipality or a redevelopment authority may seek the assistance of a community development corporation serving the area where the property is located. (g)   A school district or municipal authority, other than a redevelopment authority, may participate in the provisions of this section only if the school district or municipal authority has designated an agent in accordance with subsection (f). Nothing in this subsection shall prevent a school district or municipal authority from taking title to a donated property if it is determined during negotiations that the best manner to return the property to productive use is to allow a school district or municipal authority to use the property for purposes directly related to the mission of the district or authority. § 7109.  Tax claims against real estate owned by joint tenants, tenants in common, or coparceners Where any real estate in this Commonwealth is owned by joint tenants, tenants in common, or coparceners, and any joint tenant or tenant in common or coparcener has paid his or their proportionate amount of the taxes due thereon, any municipality may file a claim for the unpaid taxes against the estate, title, and interest of the owner or owners who have not paid his, her, or their proportionate share of the tax. Whenever a claim for taxes shall have been filed against real estate owned by joint tenants, tenants in common, or coparceners, the claimant shall release the estate, title, and interest of any joint tenant, tenant in common, or coparcener from said tax claim, upon payment by said joint tenant, tenant in common, or coparcener of his, her, or its proportionate share of the taxes included therein, with proportionate interest and costs, when any property in this Commonwealth is owned by more than one owner or part owner, and the estate and title of any owner, or part owner, is either exempt from taxation or municipal claims, or has not been subjected by law to taxation or municipal claims, the estate and title of such owner or owners as may not be exempt from taxation or municipal claims, or has been subjected thereto, shall be subject to the tax and municipal claims provided for in this act as any other real property liable to assessment for taxes and municipal claims; the lien being filed against all the estate, title, and interest of the owner or owners subject to the claim. § 7110.  Separate and distinct properties; apportionment of charge In all cases where a tax or municipal claim is levied on or filed against separate and distinct properties as one estate, it shall and may be lawful for the proper public authority, either before or after filing a claim therefor, to apportion the same ratably upon the separate and distinct properties so assessed together. And the court in which the claim is filed, on proof that the properties were separate and distinct at the time the tax was levied or the work was done, shall, at any stage of the proceedings, apportion the charge against such properties. When apportioned, they shall be treated and considered in all respects as if separate and distinct claims had been filed; and payment and satisfaction of any one portion may be made without prejudice to the claim as against the rest.

832

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REAL ESTATE TAXATION

Ch. 52

Part VI Ch. 49–56 Taxation Part VII Ch. 57–63 Litigation Part VIII Ch. 64–67 L/T Part IX Ch. 68–72 Condos, etc. Index

gtb-parealestate22-all.indb 833

Part V Ch. 41–48A Zoning, etc.

833

Part IV Ch. 36–40 Insurance

4. See notes under 53 P.S. § 7101. 5. Repealed.

Part III Ch. 23–35 Mortgages

§ 7141.  Neglect of owner condition precedent to filing claim for curbing, etc. No claim shall be filed for curbing, recurbing, paving, repaving, or repairing the footways of any highway, unless the owner shall have neglected to do said work for such length of time as may be described by ordinance, after notice so to do, served upon him or his known agent or occupant of the property, except when, in the case of curbing or recurbing or repaving the footway, it shall form part of an improvement resulting also in the paving, macadamizing, or otherwise improving the cartway of said highway; and if there be no agent or occupant known by claimant, it may be posted on the most public part of the property.

Part II Ch. 15–22 Deeds

§ 7112.  Construction and constitutionality of act; repealer; act not repealed Nothing contained in this act shall be construed to repeal or affect the validity of any other acts of Assembly providing other methods or remedies for the collection of taxes and municipal claims. Municipalities and use-claimants shall have and retain the right to proceed to collect such claims by assumpsit, distraint, or under the acts relating to the collection of taxes upon seated and unseated land, or in any other way or by any other method authorized by law, as though this act had not been passed. If any clause, phrase, section, or part of this act, is held to be unconstitutional, it shall not affect the validity of the remaining or other portions of the act. All acts or parts of acts of Assembly of this Commonwealth, general, special, or local, including those relating to the redemption of property from sheriffs’ sales on tax and municipal claims, appertaining to the subject matter covered by this act, and inconsistent herewith, shall be, and the same are hereby, repealed. It being intended that this act shall furnish a complete and exclusive system in itself, so far as relates to tax and municipal claims, except as hereinbefore set forth. Nothing contained in this act shall be construed to repeal or to affect the validity of the act of Assembly, approved the first day of June, one thousand nine hundred and fifteen (Pamphlet Laws, six hundred and sixty),5 entitled “An act to amend an act, approved the twenty-first day of May, one thousand nine hundred and thirteen, entitled ‘An act providing for the return of taxes on seated land in counties, poor districts, boroughs, incorporated towns, and townships, for county, poor, borough, town, or townships taxes, respectively, and providing for the sale of such lands for taxes,’ so as to include school taxes.”

Part I Ch. 1–14 Brokers

§ 7111.  Application of act This act shall apply only to claims wherein the right to file a lien accrues after the date of its passage, and to tax claims for the years one thousand nine hundred and twenty-one, one thousand nine hundred and twenty-two, and one thousand nine hundred and twenty-three, and to municipal claims heretofore lawfully imposed or assessed within six months before the passage of this act and not liened at the time of its passage; but the rights of other claimants, under existing laws, shall remain unaffected by its passage, and all claims properly filed thereunder are hereby validated: Provided, however, That all tax and municipal claims filed under any prior act of Assembly, or directed to be filed under any such prior act or acts, including the act, approved the fourth day of June, one thousand nine hundred and one (Pamphlet Laws, three hundred and sixty-four),4 may hereafter be revived, continued, and collected under and according to the procedure and provisions of this act.

Table of Contents

PART VI

12/22/21 10:45 AM

§ 7142

MUNICIPAL CLAIMS AND TAX LIENS

§ 7142.  Claims filed to use Where claims are to be filed to use, the claimant, at least one month before the claim is filed, shall serve a written notice of his intention to file it unless the amount due is paid. Service of such notice may be made personally on the owner wherever found, but if he cannot be served in the county where the property is situated, such notice may be served on his agent or the party in possession of the property; and if there be no agent or party in possession, it may be posted on the most public part of the property. The provisions of this section shall not apply if the use-plaintiff is a city, borough, or township to which a municipal claim of a municipal authority organized by a city of the second class, by a county of the second class or by a city of the third class has been assigned or sold, as provided in section four of this act,6 and the procedure for filing, reviving and enforcing liens for such assigned claim shall be the same as is provided in this act for filing, reviving and enforcing liens based on such use-plaintiff’s own municipal claims. § 7143.  Time and place for filing; liability; interest; form; contents; appeals from assessments; indexing; revival; order fixing amount Claims for taxes, water rents or rates, lighting rates, power rates, and sewer rates, must be filed in the court of common pleas of the county in which the property is situated unless the property is situate in the City of Philadelphia and the taxes or rates do not exceed the maximum amount over which the Municipal Court of Philadelphia has original jurisdiction, in which event the claim must be filed in the Municipal Court of Philadelphia. All such claims shall be filed on or before the last day of the third calendar year after that in which the taxes or rates are first payable, except that in cities and school districts of the first class claims for taxes and other municipal claims, which have heretofore become liens pursuant to the provisions of this act or which have been entered of record as liens or which have been liened and revived, shall continue and remain as liens for the period of twenty years from such revival, entry or lien by operation of law, whichever shall have last occurred; and other municipal claims must be filed in said court of common pleas or the Municipal Court of Philadelphia within six months from the time the work was done in front of the particular property, where the charge against the property is assessed or made at the time the work is authorized; within six months after the completion of the improvement, where the assessment is made by the municipality upon all the properties after the completion of the improvement; and within six months after confirmation by the court, where confirmation is required; the certificate of the surveyor, engineer, or other officer supervising the improvement, filed in the proper office, being conclusive of the time of completion thereof, but he being personally liable to anyone injured by any false statement therein. Where a borough lies in more than one county, any such claim filed by such borough may be filed in each of such counties. In case the real estate benefited by the improvement is sold before the municipal claim is filed, the date of completion in said certificate shall determine the liability for the payment of the claim as between buyer and seller, unless otherwise agreed upon or as above set forth. A number of years’ taxes or rates of different kinds if payable to the same plaintiff may be included in one claim. Interest as determined by the municipality at a rate not to exceed ten per cent per annum shall be collectible on all municipal claims from the date of the completion of the work after it is filed as a lien, and on claims for taxes, water rents or rates, lighting rates, or sewer rates from the date of the filing of the lien therefor: Provided, however, That after the effective date of this amendatory act7 where municipal claims are filed arising out of a 6. 53 P.S. § 7107. 7. December 28, 1981.

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Ch. 52

Part III Ch. 23–35 Mortgages Part IV Ch. 36–40 Insurance Part V Ch. 41–48A Zoning, etc. Part VI Ch. 49–56 Taxation Part VII Ch. 57–63 Litigation Part VIII Ch. 64–67 L/T Part IX Ch. 68–72 Condos, etc. Index

gtb-parealestate22-all.indb 835

Part II Ch. 15–22 Deeds

835

Part I Ch. 1–14 Brokers

municipal project which required the municipality to issue bonds to finance the project interest shall be collectible on such claims at the rate of interest of the bond issue or at the rate of twelve per cent per annum, whichever is less. Where the provisions of any other act relating to claims for taxes, water rents or rates, lighting rates, power rates, sewer rents or rates or for any other type of municipal claim or lien utilizes the procedures provided in this act and where the provisions of such other act establishes a different rate of interest for such claims or liens, the maximum rate of interest of ten per cent per annum as provided for in this section shall be applicable to the claims and liens provided for under such other acts: Provided, however, That after the effective date of this amendatory act where municipal claims are filed arising out of a municipal project which required the municipality to issue bonds to finance the project interest shall be collectible on such claims at the rate of interest of the bond issue or at the rate of twelve per cent per annum, whichever is less. Claims for taxes, water rents, or rates, lighting rates, power rates and sewer rates may be in the form of written or typewritten lists showing the names of the taxables, including the name and last known address, with its zip code, of the owner of each property against which a claim is being filed, and descriptions of the properties against which the claims are filed, together with the amount of the taxes due such municipality. Such lists may be filed on behalf of a single municipality, or they may cover the unpaid taxes due any two or more municipalities whose taxes are collected by the same tax collector, provided the amounts due each municipality are separately shown. All tax claims, water rents, or rates, lighting rates, power rates and sewer rates, heretofore filed in such form, are hereby ratified, confirmed and made valid subsisting liens as of the date of their original filing. A number of years’ taxes or rates of different kinds, if payable to the same plaintiff, may be included in one claim. Municipal claims shall likewise be filed within said period, where any appeal is taken from the assessment for the recovery of which such municipal claim is filed. In such case the lien filed shall be in the form hereinafter provided, except that it shall set forth the amount of the claim as an undetermined amount, the amount thereof to be determined by the appeal taken from the assessment upon which such municipal claim is based, pending in a certain court (referring to the court and the proceeding where such appeal is pending). Upon the filing of such municipal claim, the claim shall be indexed by the prothonotary upon the judgment index and upon the locality index of the court, and the amount of the claim set forth therein as an undetermined amount. If final judgment is not obtained upon such appeal within twenty years from the filing of such municipal claim, the claimant in the lien shall, within such period of twenty years, file a suggestion of nonpayment, in the form hereinafter set forth, which shall have the effect of continuing the lien thereof for a further period of twenty years from the date of filing such suggestion, except that with respect to claims for taxes and other municipal claims, in cities and school districts of the first class, if final judgment is not obtained upon such appeal within twenty years from the filing of such municipal claims, the claimant in the lien shall, within such period of twenty years, file a suggestion of nonpayment in the prescribed form which shall have the effect of continuing the lien thereof for a further period of twenty years from the date of filing such suggestion. Such municipal claim shall be revived in a similar manner during each recurring period of twenty years thereafter, until final judgment is entered upon said appeal and the undetermined amount of such municipal claim is fixed in the manner hereinafter provided, except that with respect to claims for taxes and other municipal claims, in cities and school districts of the first class, such municipal claims shall be revived in a similar manner during each recurring period of twenty years thereafter until final judgment is entered upon said appeal and the undetermined amount of such municipal claim is fixed in the manner hereinafter provided.

Table of Contents

PART VI

12/22/21 10:45 AM

§ 7144

MUNICIPAL CLAIMS AND TAX LIENS

When the final judgment is obtained upon such appeal, the court in which said municipal claim is pending shall, upon the petition of any interested party, make an order fixing the undetermined amount claimed in such claim at the amount determined by the final judgment upon said appeal, which shall bear interest from the date of the verdict upon which final judgment was entered, and thereafter the amount of said claim shall be the sum thus fixed. Proceedings upon said municipal claim thereafter shall be as in other cases. Where, on final judgment upon said appeal, it appears that no amount is due upon the assessment for the recovery of which such claim is filed, the court in which such municipal claim is pending shall, upon the petition of any interested party, make an order striking such municipal claim from the record, and charge the costs upon such claim to the plaintiff in the claim filed. Where such appeal is discontinued, the court in which such municipal claim is pending shall, upon the petition of any interested party, make an order fixing the undetermined amount claimed at the amount of the original assessment, which shall bear interest from the date that such assessment was originally payable, and thereafter the amount of such claim shall be the sum thus fixed. In counties of the second class and municipalities therein, interest at the applicable per annum rate shall accrue monthly on all taxes, tax claims and municipal claims on the first day of the month for the entire month, or part thereof, in which the taxes, tax claims or municipal claims are paid. Interest shall not be paid on a per diem basis. In counties of the second class, all county taxes after the same become delinquent, as provided by law, shall include a penalty of five per centum for such delinquency. In counties of the second class, taxes and tax claims, when collected, shall be paid into the county treasury for the use of the county unless the taxes and tax claims are assigned, in which event there is no requirement that the taxes and tax claims collected by the assignee be paid into the county treasury. In counties of the second class, the county shall not be required to advance or pay any fee to the prothonotary for the filing of paper or electronic filing or performing any services for the second class county relating to the filing, satisfaction, assignment, transfer, revival, amendment, enforcement and collection of taxes, tax claims and tax liens. The prothonotary shall accept filings by or on behalf of the second class county relating to the taxes, tax claims and tax liens and note the cost for such service performed on the docket, and the second class county, its employees, representatives, agents and assigns shall thereafter collect such fee as a cost as part of the taxes, tax claims and tax liens. § 7144.   Contents of claim; signature; county taxes, levies or assessments; affidavit of use plaintiff Said claim shall set forth: 1. The name of the municipality by which filed; 2. The name and last known address, including its zip code, of the owner of the property against which it is filed; 3. A description of the property against which it is filed; 4. The authority under or by virtue of which the tax was levied or the work was done; 5. The time for which the tax was levied, or the date on which the work was completed in front of the particular property against which the claim is filed; or the date of completion of the improvement, where the assessment is made after completion; or the date of confirmation by the court, where confirmation is required done; 6. If filed to the use of a contractor, the date of, and parties to, the contract for doing said work; and

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Ch. 52

Part IV Ch. 36–40 Insurance Part V Ch. 41–48A Zoning, etc. Part VI Ch. 49–56 Taxation Part VII Ch. 57–63 Litigation Part VIII Ch. 64–67 L/T Part IX Ch. 68–72 Condos, etc. Index

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Part III Ch. 23–35 Mortgages

837

Part II Ch. 15–22 Deeds

§ 7145.  Property included in claims; payment of portion The property described in tax claims shall include the whole property against which the tax is levied. The property described in municipal claims may include the whole contiguous property, or it may include only the lot in front of or upon which the work is done, or to which service is supplied, of such depth as is usual in properties of the same kind or character in the particular neighborhood. No municipal claim or tax claim shall be invalid by reason of including therein property to a greater depth than as above provided, but the court in which the same is filed may, at any time prior to judgment thereon, but not afterwards, upon it appearing that such claim includes property to a greater depth than is hereby made subject to such claim, limit the lien thereof to the proper depth. Where any owner or owners of property abutting on a highway conveys or convey, or at any time heretofore has or have conveyed, a strip of land abutting on said highway, which strip is too narrow to be used as a site for the smallest width dwelling allowed by law to be erected thereon, such conveyance shall be deemed to be made for the purpose of evading liability for the municipal improvements made or to be made in such highway, and, in such cases, the assessment may be made at the option of the municipality, against the lot as it existed before the division, and the lien may be filed against the entire lot as thus assessed, joining the owners of both the rear lot and the said strip in the claim. In all cases where a tax is levied on or filed against separate and distinct properties, in one amount covering all, the proper public authority shall, if tendered with all costs, if any, accept payment of the portion of the whole amount of said tax chargeable upon each or any of the separate and distinct properties so charged together, according to the tax rate and assessed valuation thereof, and payment and satisfaction of any one portion may be made without prejudice to the claim against the remainder. § 7146.   Locality index; unpaid tax list; consumer reporting agencies (a) It shall be the duty of the prothonotaries of the courts of common pleas to keep a locality index, in which shall be entered all tax or municipal claims hereafter filed, and, upon any written order therefor, they shall give a certificate of search, showing all the claims filed against any property. For so doing they shall receive the sum of twenty-five cents, and five cents additional for each claim certified, and no more. (b) (1) In addition to the requirements of subsection (a), the department or public official responsible for collection of delinquent taxes in a city of the first class or other municipality that utilizes this act for the collection of delinquent taxes, and the county treasurer in a county of the second class, shall maintain as a public record a list of all properties against which taxes were levied, the whole or any part of which were due and payable in a prior year and which remain unpaid. This list shall describe the property and identify its location, provide the name and last known address, including the zip code, of the owner of the property and the amount of unpaid taxes, penalties and interest due, for all years other than the current tax year. If taxes on the list are paid or another settlement had been agreed to or if a tax sale of the property is held, this fact shall be noted on the list.

Part I Ch. 1–14 Brokers

7. In other than tax claims, the kind and character of the work done for which the claim is filed, and, if the work be such as to require previous notice to the owner to do it, when and how such notice was given. Said claim shall be signed by, or have stamped thereon a facsimile signature of, the solicitor or chief executive officer of the claimant, or the chief of its delinquent tax bureau, except that, in counties of the second class, said claim or claims for county taxes, levies or assessments shall be signed by, or have stamped thereon a facsimile signature of, the county controller; and, in the case of a use-plaintiff, must be accompanied by an affidavit that the facts therein set forth are true to the best of his knowledge, information, and belief.

Table of Contents

PART VI

12/22/21 10:45 AM

§ 7147

MUNICIPAL CLAIMS AND TAX LIENS

(2) In addition to the requirements of subsection (a), the department or public official responsible for collection of delinquent taxes may report any nonpayment of taxes, including liens, to one or more consumer reporting agencies, as defined by the Fair Credit Reporting Act (Public Law 91-508, 15 U.S.C. § 1681 et seq.). § 7147.  Assignment of claims, etc. Any tax or municipal claim filed or to be filed, under the provisions of this act, and any judgment recovered thereon, may be assigned or transferred to a third party, either absolutely or as collateral security for an amount to be determined by the municipality or other assignor. The lien of such tax or municipal claim assigned shall continue as a tax or municipal claim in favor of the assignee. An assignee, upon assignment or reassignment of such tax or municipal claim not originating as a use-plaintiff claim of a nonmunicipality, shall have and enjoy the same rights, privileges and remedies as were held by the assigning municipality to enforce and collect the assigned tax or municipal claim under the provisions of this act or any other laws applicable to the collection and enforcement of tax or municipal claims. A third party, upon assignment or reassignment of a useplaintiff municipal claim originating with a nonmunicipality, shall have and enjoy the same rights, privileges and remedies as the original holder thereof to enforce and collect the assigned use-plaintiff municipal claim under the provisions of this act and any other laws applicable to the collection and enforcement of useplaintiff municipal claims. A defendant, upon the assignment or reassignment of such tax, municipal claim or use-plaintiff municipal claim to a third party, shall have and enjoy the same rights and defenses under the provisions of this act and any other laws applicable to the collection and enforcement of taxes, tax claims, municipal claims and use-plaintiff municipal claims against the assignee that the defendant held against the assignor. Where the tax or municipal claim has been paid in full by one of several defendants therein, whether originally named as such or allowed to intervene and defend, it shall be satisfied of record as to him, and marked to his use as against the other defendants, pro rata, according to their respective interests in the property bound by the claim. § 7181.  Intervening or substituted defendants Any person having an interest in the property, whensoever acquired, may, after ten days’ prior notice in writing, by leave of court, intervene as a party defendant and make defense thereto, with the same effect as if he had been originally named as a defendant in the claim filed. And the claimant may, by writing filed at his costs, strike off the name of any defendant therein, and may substitute as a defendant, and issue a scire facias against, any person who may have any interest therein as owner, or who is the personal representative of an owner who has died either before or after filing the claim, but such substitution shall always be without prejudice to any intervening rights. § 7182.  Petition of defendant; payment into court; affidavit; rule; decree; jury trial Any defendant named in the claim, or any person allowed to intervene and defend thereagainst, may, at any stage of the proceedings, present his petition, under oath or affirmation, setting forth that he has a defense in whole or in part thereto, and of what it consists; and praying that a rule be granted upon the claimant to file an affidavit of the amount claimed by him, and to show cause why the petitioner should not have leave to pay money into court; and, in the case of a municipal claim, to enter security in lieu of the claim; whereupon a rule shall be granted as prayed for. Upon the pleadings filed, or from the claim and the affidavit of defense, and without a petition where an affidavit of defense has been filed, the court shall determine how much of the claim is admitted or not sufficiently denied; and shall enter a decree that upon payment by such petitioner to the claimant of the amount thus found to be due, with interest and costs if

838

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REAL ESTATE TAXATION

Ch. 52

Part VIII Ch. 64–67 L/T Part IX Ch. 68–72 Condos, etc. Index

gtb-parealestate22-all.indb 839

Part VII Ch. 57–63 Litigation

839

Part VI Ch. 49–56 Taxation

The filing and indexing of such suggestion and averment within twenty years, or in any city or school district of the first class within twenty years, of filing the claim or the issuing of any writ of scire facias thereon, or of any judgment thereon, or of the filing of any prior suggestion and averment of default, shall have the same force and effect, for the purposes of continuing and preserving the lien of the claim, as though a writ of scire facias had been issued or a judgment or judgment of revival had been obtained within such period: Provided, That no writ of levari facias shall be issued upon a claim for the purpose of exposing the

Part V Ch. 41–48A Zoning, etc.

Such suggestion and averment shall be signed by, or have stamped thereon a facsimile signature of, the solicitor or chief executive officer of the claimant, or the chief of its delinquent tax bureau, except in counties of the second class, in which case it shall be signed by, or have stamped thereon a facsimile signature of, the county controller. The prothonotary shall docket and index the suggestion and averments directed therein.

Part IV Ch. 36–40 Insurance

And now __________________________________________________________, the claimant, by ____________________________________________, its solicitor, or by the chief of its delinquent tax bureau, or, in counties of the second class, by the county controller, suggests of record that the above claim is still due and owing to the claimant, and avers that the owner is still in default for nonpayment thereof. The prothonotary is hereby directed to enter this suggestion and averment on the municipal lien or the proper docket of the claim, and also to index it upon the judgment index and on the locality index of the court, for the purpose of continuing the lien of the claim.

Part III Ch. 23–35 Mortgages

The suggestion and averment shall be in the following form, under the caption of the claim:

Part II Ch. 15–22 Deeds

§ 7183.  Time of lien; suggestion and averment of nonpayment and default; scire facias; form; dockets and indexes; fees; extension of lien; loss of lien Such tax, municipal or other claim if filed within the period aforesaid, shall remain a lien upon said properties until fully paid and satisfied: Provided, That either a suggestion of nonpayment and an averment of default, in the form hereinafter provided, be filed, either before or after judgment on the scire facias or else a writ of scire facias, in the form herein provided, be issued to revive the same, within each period of twenty years following—(a) the date on which said claim was filed, (b) the date on which a writ of scire facias was issued thereon, (c) the date on which any judgment was entered thereon, (d) the date on which a previous suggestion of nonpayment and default was filed thereon, or (e) the date on which a judgment of revival was obtained thereon, except that in cities and school districts of the first class with respect to taxes and other municipal claims, the period within which such liens may be revived shall be twenty years.

Part I Ch. 1–14 Brokers

anything be found to be due, or upon payment into court, if the claimant refuses to accept the same, and upon payment into court of a sum sufficient to cover the balance claimed, with interest and costs, or upon the entry of approved security in the case of a municipal claim, that such claim shall be wholly discharged as a lien against the property described therein, and shall be stricken from the judgment index. Thereafter the material, disputed facts, if any, shall be tried by a jury, without further pleadings, with the same effect as if a writ of scire facias had duly issued upon said claim, to recover the balance thereof; but the jury shall be sworn to try the issues between the claimant and the parties who paid the fund into court or entered security, and verdict, judgment and payment, or execution, shall follow as in other cases. The same course may be pursued, at the instance of any owner, where the claim has not in fact been filed, and if, in that event, the petitioner complies with the decree made, the money paid into court or security entered shall stand in lieu of the claim and the latter shall not be filed, and if filed shall be stricken off upon motion.

Table of Contents

PART VI

12/22/21 10:45 AM

§ 7184

MUNICIPAL CLAIMS AND TAX LIENS

property liened to sheriff’s sale, except after a judgment shall have been duly obtained upon the claim, as provided in this section, and such judgment must have been obtained within twenty years, or in any city or school district of the first class within twenty years, of the issuance of the levari facias. Whenever the lien of a claim has been revived and continued by the filing and indexing of a suggestion and averment of default, the claimant may, at any time within twenty years therefrom, or in any city or school district of the first class within twenty years, issue a writ of scire facias thereon reciting all suggestion and averment of default filed since the filing of the claim, and shall proceed thereon, in the manner herein provided, subject to the right of the owner to raise any defense arising since the last judgment. If a claim be not filed within the time aforesaid, or if it be not prosecuted in the manner and at the time aforesaid, its lien on real estate shall be wholly lost. The charge for filing the claim of a municipality or municipality authority shall include the cost of marking the record paid and satisfied. When the claim and costs are paid the municipality or municipality authority shall so notify the prothonotary. Notwithstanding any other provision of this or any other act to the contrary, all judgments in favor of cities, counties and school districts of the first class relating to self-assessed taxes as defined in section 2 of the act of December 1, 1959 (P.L. 1673, No. 616),8 known as the “Self-Assessed Tax Lien Act,” may be revived in the manner provided for in this section. § 7184.  Notice to issue scire facias; failure to issue; claimant not permitted to discontinue after issuance Any party named as defendant in the claim filed, or admitted to defend thereagainst, may file, as of course, and serve a notice upon the claimant or upon the counsel of record to issue a scire facias thereon, within fifteen days after notice so to do. If no scire facias be issued within fifteen days after the affidavit of service of notice is filed of record, the claim shall be stricken off by the court, upon motion. If a scire facias be issued in accordance with such notice, the claimant shall not be permitted to discontinue the same, or suffer a nonsuit upon the trial thereof, but a compulsory nonsuit shall be entered by the court if the claimant does not appear, or withdraws, or for reason fails to maintain his claim. § 7185.  Form of scire facias; addition of parties; amicable scire facias The claim shall be sued by writ of scire facias, and the form thereof shall be substantially as follows: The Commonwealth of Pennsylvania to (names of the parties defendant), Greeting: Whereas, The (city, borough, or other municipality, as the case may be,) on the __________ day of __________, A.D. 1 _____, filed its claim in our court of common pleas of __________ County; at No. __________, __________ Term, 1 __________, M.L.D., for the sum of $__________, with interest from the __________ day of __________, 1 __________, for (give the improvement, or that for which the claim is filed), against the following property situate in (give location and brief description of the property), owned or reputed to be owned by you. And whereas, We have been given to understand that said claim is still due and unpaid, and remains a lien against the said property; Now, you are hereby notified to file your affidavit of defense to said claim, if defense you have thereto, in the office of the prothonotary of our said court, within fifteen days after the service of this writ upon you. If no affidavit of defense be

8. 53 P.S. § 7502.

840

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REAL ESTATE TAXATION

Ch. 52

Part V Ch. 41–48A Zoning, etc. Part VI Ch. 49–56 Taxation Part VII Ch. 57–63 Litigation Part VIII Ch. 64–67 L/T Part IX Ch. 68–72 Condos, etc. Index

gtb-parealestate22-all.indb 841

Part IV Ch. 36–40 Insurance

841

Part III Ch. 23–35 Mortgages

§ 7187.  Evidence; compulsory non-suit; verdict; attorney’s fee Tax claims and municipal claims shall be prima facie evidence of the facts averred therein in all cases; and the averments in both tax and municipal claims

Part II Ch. 15–22 Deeds

§ 7186.  Addition by sheriff of parties to writ; posting copy; service of writ; return The sheriff to whom the scire facias is given for service shall add to the writ, as parties defendant, all persons, other than those named therein, who may be found in possession of the property described, or any part thereof, and in case no one is found in possession by the sheriff, he shall post a true copy of the writ on the most public part of said property; and he shall add to the said writ the names of any persons, not already named therein, whom he may ascertain to have an interest in the property described, or any part thereof, which writ shall then be further served as follows: (a)   By serving, as in the case of a summons, such of those named in the writ, or added thereto, as may be found in the county in which the writ issued; and, (b)   Where the sheriff has information that those named in the writ, or added thereto, or any of them, may be found in any other county of this Commonwealth, the said person shall be served, as in the case of a summons, by the sheriff of the county in which the said defendants or any of them may reside, he being deputized for that purpose by the sheriff of the county in which the writ issues; and, (c)   In case any of those named in the writ, or added thereto, cannot be found by the sheriff, or their residences within this Commonwealth are unknown to him, or in case they reside without the Commonwealth, the said writ may be served by advertising a copy thereof, or a brief notice of the contents of the same, once a week for three successive weeks, in one newspaper of general circulation in the county, and in the legal periodical, if any, designated by the court for that purpose: Provided, however, That any defendant may accept service of said writ, in person or by counsel, with the same effect as if duly served therewith by the sheriff. Where the said writ, or the brief notice of the contents thereof, have been advertised as aforesaid, the same shall have the same effect as if the writ had been personally served; and all those named therein, or added thereto, as to whom publication has been made, shall file their affidavit of defense, as required by the said writ, within fifteen days after the date of the last weekly advertisement of the said writ; and all those named therein or added thereto, who have been served as in case of a summons, shall file their affidavit of defense, as required by said writ, within fifteen days after such service. Service of any such writ may be made at any time within three months from the date on which it was issued, but it shall be served and returned at the earliest date possible, and the plaintiff may require its return at any time, whether or not it be actually served.

Part I Ch. 1–14 Brokers

filed within said time, judgment may be entered against you for the whole claim, and the property described in the claim be sold to recover the amount thereof. Witness the Honorable __________, President Judge of our said court, this __________ day of __________, A.D. 1 __________. __________ Prothonotary. (Seal) The claimant, when he files his praecipe for the writ of scire facias, may direct the prothonotary to add and insert the names of any persons whom the claimant may know to have an interest in the premises, and the scire facias shall be issued containing such additional names. But the parties to the claim may agree upon an amicable scire facias, upon such terms as may be agreed upon, with the same effect as if a scire facias, in the form aforesaid, had been duly issued, served, and returned; or the defendants, or any of them, may waive the issue of a scire facias, and appear with like effect as if the scire facias had been issued and served.

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PART VI

12/22/21 10:45 AM

§ 7188

MUNICIPAL CLAIMS AND TAX LIENS

shall be conclusive evidence of the facts averred therein, except in the particulars in which those averments shall be specifically denied by the affidavit of defense, or amendment thereof duly allowed. A compulsory nonsuit, upon trial, shall be equivalent to a verdict for defendant, whether the plaintiff appeared or not. If plaintiff recovers a verdict, upon trial, in excess of the amount admitted by the defendant in his affidavit of defense or pleadings, he shall be entitled to reasonable attorney fees for collection in accordance with section 3.9 § 7188.  Amendments to claims, etc.; opening of default judgments Any claim, petition, answer, replication, scire facias, affidavit of defense, or other paper filed of record, may be amended, from time to time, by agreement of the parties, or by leave of the court upon petition for that purpose, under oath or affirmation, setting forth the amendment desired, that the averments therein contained are true in fact, and that by mistake they were omitted from or wrongfully stated in the particulars as to which amendment is desired. Such amendments shall be of right, saving intervening rights, except that no amendment of the claim shall be allowed, after the time for its filing has expired, which undertakes to substitute an entirely different property from that originally described in the claim, but the description of the property may be amended so as to be made more accurate, as in other cases of amendment. The court may, for cause shown and filed of record, enlarge the time for filing the affidavit of defense, answer or replication, for issuing a scire facias or for entering security, by rule or special or standing order; and any judgment by default may be opened by the court, upon cause shown by intervenors or other defendants, as in other cases; but no enlargement of the time for issuing a scire facias shall extend the same beyond the time herein provided for preserving or retaining the lien thereof. § 7189.  Return of rules; pleadings; findings Any rule granted under the provisions of this act may be made returnable at such time as the court may direct, either therein or by rule of court, or by special or standing order. All petitions, answers, and replications shall be under oath or affirmation. Answers must be filed and served within fifteen days after service of the petition, and rules and replications must be filed within fifteen days after service of the last of the answers. Replications must be confined to a reply to new matter set forth in the answers. The facts averred by either party, and not denied in the answer or replication of the other, shall be taken as true in all subsequent proceedings in the cause, without the necessity for proof thereof, unless amended as herein set forth. Any fact necessarily found by the court in finally determining a rule shall also be taken as true in all subsequent proceedings in the cause, without the necessity for proof thereof, unless either party, by writing filed and served at least ten days prior to the time fixed for trial, requires that it be submitted to the jury. § 7190.  Service of notices; petitions and rules Unless otherwise herein provided, all notices, petitions, and rules shall be served upon counsel for the parties interested or upon the parties themselves in the manner bills in equity are served, or upon the owner by leaving a copy with the party in possession of the real estate, or, in default of service in any of the methods stated, then in such manner as the court shall direct. § 7191.  Security Whenever security is required to be given in accordance with the provisions of this act, it may be approved by the prothonotary, subject to an appeal to the court as in other cases. If thereafter the security by found to be insufficient, new security may be required within a given time, in default of the entry of which

9. 53 P.S. § 7106.

842

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REAL ESTATE TAXATION

Ch. 52

Part IV Ch. 36–40 Insurance Part V Ch. 41–48A Zoning, etc. Part VI Ch. 49–56 Taxation Part VII Ch. 57–63 Litigation Part VIII Ch. 64–67 L/T Part IX Ch. 68–72 Condos, etc. Index

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Part III Ch. 23–35 Mortgages

843

Part II Ch. 15–22 Deeds

10. 53 P.S. § 7283. 11. 53 P.S. § 7193.1.

Part I Ch. 1–14 Brokers

the cause may proceed with the same effect as if none had been given, the sureties, however, remaining liable. By agreement of the parties, or upon approval by the court after notice, new security may be entered in lieu of that originally taken, and an exonerator entered on the first bond, or the security given may be limited to a particular property if clear of incumbrances, and, if also, the security by entered as a lien upon said property. § 7192.  Use-plaintiffs; duty to enter satisfaction; penalty In cases where there is a use-plaintiff, if the claim shall be paid or otherwise satisfied or discharged at any time before or after filing, it shall be the duty of the use-plaintiff, or his legal representatives, at the request of the owner, or of any other person interested, by a statement, in writing, showing how the claim was paid, satisfied, or discharged, and on the payment of costs, if any be due, to enter satisfaction on the record of such claim. In such cases a refusal to satisfy the claim for a period of sixty days after notice so to do, served upon the useplaintiff or his agent or attorney, shall subject such use-plaintiff to a suit, as for penalty, at the hands of the party aggrieved, in such sum as the jury shall determine to be just but not exceeding the amount of the claim. § 7193.  Repealed. 1978, April 28, P.L. 202, No. 53, § 2(a)[1057], effective June 27, 1980 § 7193.1.  Notice of interest; registration; service (a)  Any owner of real property located within a city of the first class, any mortgagee thereof or any person having a lien or claim thereon or interest therein shall register a notice of interest with the department of the city of the first class responsible for collection of tax and municipal claims stating his name, residence and mailing address and a description of the real property in which the person has an interest. A notice of interest shall not be required for any mortgage or interest otherwise properly recorded in the Office of the Recorder of Deeds provided the document contains a current address sufficient to satisfy the notice requirements of this section. The interested party shall file an amended registration as needed. (b)  After the completion and filing of a notice of interest, a city of the first class shall serve all petitions, rules and other notices required by this act on those interested parties at the registered address. (c)   A city of the first class may promulgate regulations for the bulk registration of notices of interest. § 7193.2.  Rule to show cause; decree; service; notice (a)   In cities of the first class, notice of a rule to show cause why a property should not be sold free and clear of all encumbrances issued by a court pursuant to a petition filed by a claimant under section 31.210 of this act shall be served by the claimant upon owners, mortgagees, holders of ground rents, liens and charges or estates of whatsoever kind as follows: (1)   By posting a true and correct copy of the petition and rule on the most public part of the property; (2)  By mailing by first class mail to the address registered by any interested party pursuant to section 39.111 of this act a true and correct copy of the petition and rule; and (3)  By reviewing a title search, title insurance policy or tax information certificate that identifies interested parties of record who have not registered their addresses pursuant to section 39.1 of this act, the city shall mail by first class mail and either by certified mail, return receipt requested, or by registered mail to such addresses as appear on the respective records relating to the premises a true and correct copy of the petition and rule.

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§ 7193.2 MUNICIPAL CLAIMS AND TAX LIENS Service of notice pursuant to this section shall be deemed accomplished on the date of mailing. The city shall file an affidavit of service with the court prior to seeking a decree ordering the sale of the premises. (a.1)   In counties of the second class and municipalities therein, notice of a rule to show cause why a property should not be sold free and clear of all liens and encumbrances issued by a court pursuant to a petition filed by a claimant under sections 28 and 31.112 of this act shall be served by the claimant upon owners, mortgagees, holder of ground rents, liens and charges or estates of whatsoever kind as follows: (1)   By posting a true and correct copy of the petition and rule on the most public part of the property. (2)  By reviewing a title search, title insurance policy or tax information certificate that identifies interested parties of record, the county or municipality shall mail by first class mail and either by certified mail, return receipt requested, or by certificate of mailing to such addresses as appear on the respective records relating to the premises a true and correct copy of the petition and rule. Notice pursuant to this section shall be deemed accomplished on the date of mailing. The county or municipality shall file an affidavit of service with the court prior to seeking a decree ordering the sale of the premises. (b)   No party whose interest did not appear on a title search, title insurance policy or tax information certificate or who failed to accurately register his interest and address pursuant to section 39.1 of this act shall have standing to complain of improper notice if the city shall have complied with subsection (a) of this section. This provision shall not apply if the mortgage or interest was otherwise properly recorded in the Office of the Recorder of Deeds and the document contains a current address sufficient to satisfy the notice requirements of this section. Notwithstanding any other requirement set forth in this act or any other law to the contrary, the notice required by subsection (a) of this section shall constitute the only notice required before a court may enter a decree ordering a tax sale. (b.1)   No party whose interest did not appear on a title search or title insurance policy, because of the party’s failure to record or properly record its interest, shall have standing to complain of improper notice if the county or municipality shall have complied with subsection (a.1). This provision shall not apply if the mortgage or interest was otherwise properly recorded in the Office of the Recorder of Deeds and the document contains a current address sufficient to satisfy the notice requirements of this section. Notwithstanding any other requirement set forth by subsection (a.1), notice thereunder shall constitute the only notice required before a court may enter a decree ordering a tax sale free and clear of liens. (c)  Notice of the court’s decree ordering a tax sale, together with the time, place and date of the sale, shall be served by first class mail on all parties served with the petition and rule, on any parties whose interest appeared of record after the filing of the petition but before the court’s decree and on any creditor who has obtained judgment against the owner of the premises prior to the date of the decree. The city shall file an affidavit of service of these notices prior to the date of the sale. (d)   Except in cities of the first class, in sales pursuant to a petition filed by a claimant under section 31.1, notice of the court’s decree ordering a tax sale, together with the time, place and date of the sale, shall be served along with the notice of sheriff’s sale and shall be provided to all parties entitled to receive notice pursuant to Pa.R.C.P. No. 3129.1 (relating to sale of real property; notice; affidavit).

12. 53 P.S. §§ 7278, 7282.

844

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Ch. 52

Part V Ch. 41–48A Zoning, etc. Part VI Ch. 49–56 Taxation Part VII Ch. 57–63 Litigation Part VIII Ch. 64–67 L/T Part IX Ch. 68–72 Condos, etc. Index

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Part IV Ch. 36–40 Insurance

845

Part III Ch. 23–35 Mortgages

13. 53 P.S. § 7283. 14. 72 P.S. § 5860.101 et seq.

Part II Ch. 15–22 Deeds

§ 7195.  Dockets to be evidence and notice; original dockets to lose effect And upon the completion of the entry of such unsatisfied tax liens upon such dockets, the same shall thereafter be evidence and notice of such unsatisfied liens, and the original dockets containing such unsatisfied liens shall not thereafter be notice or evidence of such unsatisfied liens. § 7196.  Separate dockets of unpaid taxes to be kept; effect of entries in dockets From and after the passage of this act, the prothonotaries of the several counties aforesaid shall enter all such unpaid county, poor, road, school, school-building, borough and township taxes as may be certified to and filed with them, in separate dockets, and such liens shall be entered in alphabetical order against the several persons, firms, or corporations against whom the same may be levied or assessed; and when so entered the same shall be notice to all persons, and such liens shall not be hereafter entered upon the general judgment index of such counties.

Part I Ch. 1–14 Brokers

(e)   Except in cities of the first class, in sales pursuant to a petition filed by a claimant under section 28, notice of the court’s decree ordering a sale, together with the time, place and date of the sale, shall be served by first class mail upon all parties who receive notice pursuant to Pa.R.C.P. No. 3129.1 prior to the initial sale. Notice under this section shall be provided no later than seven days prior to the continued sale. § 7193.3.  Validity of sale; time for filing contest All parties wishing to contest the validity of any sale conducted pursuant to section 31.213 of this act, including the sufficiency of any notice, and any party claiming to have an interest in the premises which was not discharged by the sale must file a petition seeking to overturn the sale or to establish the interest within three months of the acknowledgment of the deed to the premises by the sheriff. § 7193.4.  Cities of first class; time for proceeding on claims; preclusion of sale for undue hardship Cities of the first class shall proceed on tax claims after one year of delinquency, unless the owner or an interested party enters into a payment agreement suitable to the claimant. The finance director of the city may preclude the sale of a property on a case-by-case basis if the sale would create an undue hardship on the property owner or occupant. § 7193.5.  Procedures available to tax claim bureaus The tax claim bureaus of the several counties may adopt and use the procedures set forth in this act in addition to the procedures set forth in the act of July 7, 1947 (P.L. 1368, No. 542),14 known as the “Real Estate Tax Sale Law.” § 7194.  Prothonotaries to make up convenient dockets of unsatisfied tax liens The prothonotaries of the several counties of this commonwealth, in which county, poor, road, school, building, borough and township taxes are directed by law to be filed as liens against the real estate against which said taxes have been assessed and levied, may make up or cause to be made up, from the record of such tax liens as appear to be unsatisfied, convenient dockets of all such unsatisfied liens, in which the several liens affecting each ward, borough or township shall be separately set out, under the name of the proper municipality, and against the name of the person against whom the same is entered at the time of the passage of this act.

Table of Contents

PART VI

12/22/21 10:45 AM

§ 7197

MUNICIPAL CLAIMS AND TAX LIENS

§ 7197.  Lost liens to be satisfied upon execution or public sale Whenever any real property has been or is hereafter sold at a sheriff’s sale by virtue of any writ of execution issued from any court in this Commonwealth, or at a public sale for taxes held by a county tax claim bureau, at which sale for taxes held by a been or are realized to pay all tax liens and municipal claims presented against the property, and a political subdivision has lost or hereafter loses its lien or liens for taxes and municipal claims, or either, on such property by virtue of not having filed or not filing same in the manner prescribed or within the time limited by law to participate in the distribution of the proceeds of such sale, and whenever the purchaser at such sale or any subsequent purchaser furnishes proof to the political subdivision that it has lost any such lien or liens, the political subdivision involved shall satisfy of record any such lien or liens at its expense. § 7198.  Recovery for services rendered outside municipality Any municipality may proceed to recover water rents or rates, lighting rates, power rates and sewer rates due and unpaid for service rendered beyond the municipal limits by the filing of municipal claims therefor against the real estate served in the same manner and with the same effect as such rents or rates are now recoverable within the municipal limits. § 7199.  Procedure same as within limits The procedure on liens filed under the provisions of this act shall be the same as though the real estate were within the municipal limits. § 7200.  Definitions Hereafter in this act the following words shall be understood to have the meanings herein set forth, unless a contrary or different meaning be clearly indicated by the context: (a)  “Claims” shall mean municipal claims and liens, tax claims and liens and penalties, interest and costs due thereon. (b)  “Corporation” shall mean all bodies having any of the powers and privileges of private corporations not possessed by individuals or partnerships and shall include partnership associations organized under laws making the capital subscribed alone responsible for the debts of the associations, joint stock companies, unincorporated companies and associations and any business conducted by a trustee or trustees wherein beneficial interest or ownership is evidenced by certificate or other written instrument. § 7201.  Corporate reorganizations Whenever, after a hearing duly held thereon, a plan of reorganization of any corporation has been or shall hereafter be found to be fair and equitable and feasible and be approved by the decree or order of any court of competent jurisdiction pursuant to the provisions of Chapter X of the Act of the Congress of the United States, approved the first day of July, one thousand eight hundred ninety-eight, entitled, “An Act to Establish a Uniform System of Bankruptcy Throughout the United States”, and the amendments and supplements thereto,15 or of any similar Act of Congress, and which plan of reorganization fixes a sum to be paid for the discharge and satisfaction of all claims of any political subdivisions against such corporation or its property, which sum may be less than the total amount of such claims, but shall be determined by such court to be not less than the net amount which could be realized at a tax sale of the real property against which such taxes may be or might become a lien or by enforced collection against such corporation, then and in such event the tax levying body of any political subdivision shall have power to file its written acceptance of said plan of

15. 11 U.S.C. § 501 et seq. (repealed; see now 11 U.S.C. § 101 et seq.).

846

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REAL ESTATE TAXATION

Ch. 52

Part I Ch. 1–14 Brokers Part II Ch. 15–22 Deeds Part III Ch. 23–35 Mortgages Part IV Ch. 36–40 Insurance Part V Ch. 41–48A Zoning, etc. Part VI Ch. 49–56 Taxation Part VII Ch. 57–63 Litigation Part VIII Ch. 64–67 L/T Part IX Ch. 68–72 Condos, etc.

reorganization, accompanied by a copy of the ordinance or resolution authorizing the acceptance of such plan, in the court having jurisdiction of the proceedings for the reorganization of such corporation, and to accept in full satisfaction and discharge of such claims as may constitute claims against such corporation, and in full satisfaction and discharge of the liens of any such claims as may constitute liens against the property of such corporation, the amount so fixed by the court in said plan of reorganization. Such satisfaction and discharge shall not constitute a satisfaction and discharge of any liability of any person other than such corporation with respect to such claims. Upon the payment over to the political subdivision of the amount so fixed the tax levying body of such political subdivision shall cause satisfaction to be entered on the proper record for such claims. § 7202.  Arrangement proceedings by persons other than corporations Whenever any arrangement respecting a person other than a corporation has been or shall hereafter be proposed pursuant to the provisions of Chapter XII of the Act of the Congress of the United States, approved the first day of July, one thousand eight hundred ninety-eight, entitled, “An Act to Establish a Uniform System of Bankruptcy Throughout the United States”, and the amendments and supplements thereto,16 or of any similar Act of Congress, which arrangement fixes a sum to be paid for the discharge and satisfaction of all claims due by such person to any political subdivision, which sum may be less than the total amount of such claims, but shall be not less than the net amount which could be realized at a tax sale of the real property against which such taxes may be or might become a lien or by enforced collection against such person, then and in such event the tax levying body of any political subdivision shall have power to file its written acceptance of said arrangement, accompanied by a copy of the ordinance or resolution authorizing the acceptance of such arrangement in the court having jurisdiction of the proceeding for such arrangement, and, upon confirmation by such court of such arrangement, shall accept in full satisfaction for such claims the amount so fixed in said arrangement. Upon payment over to the political subdivision of the amount so fixed the tax levying body of such political subdivision shall cause satisfaction to be entered on the proper record for such claims. § 7203.  Penalty for failure to pay assessments From and after the passage of this act any municipality or township of this Commonwealth shall have the right to impose a penalty, not exceeding five per centum, for failure to pay any municipal assessment which remains unpaid for ninety days after the assessment shall have been levied. Such penalty shall be added to the assessment and included in the amount for which the municipal lien is filed for such unpaid assessment. § 7231.  Definitions The word “person” as used in this act shall be construed to include any individual, association, copartnership, and corporation. The term “delinquent taxes and municipal claims,” as used in this act, shall include all delinquent taxes and municipal claims, whether or not liens for such taxes or claims have been filed in the office of the prothonotary of the county, and shall include also all penalties, interest, and costs due on such delinquent taxes and municipal claims. The term “political subdivision,” as used in this act, means county, city, other than city of the first class, borough, town, township, poor district, institution district and school district within the Commonwealth.

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PART VI

16. 11 U.S.C. § 801 et seq. (repealed).

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Index

847

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§ 7232

MUNICIPAL CLAIMS AND TAX LIENS

§ 7232.  Inquiry as to indebtedness; withholding approval of claims Every political subdivision, before approving or paying the claim or account of any person against such political subdivision, shall have power to inquire of the receiver of taxes of the political subdivision whether such person is indebted to it for or on account of any delinquent taxes or municipal claims. In any case where it shall be found that such person is so indebted to the political subdivision, or when such person is indebted to the political subdivision for any sum of money, which debt shall have been reduced to judgment in favor of such political subdivision, the approval and payment of such claim or account in whole or in part shall be withheld by the officer or employe authorized by law to make such approval or payment, until such person shall have entered into an agreement with the political subdivision as hereinafter provided. § 7233.  Agreements as to payments; withholding payment The political subdivision shall have power to enter into such agreements as it may deem necessary to assure the payment of delinquent taxes and municipal claims and unpaid judgments, interest, and costs thereon by persons having claims or accounts against the political subdivision, including therein provision for the application of moneys due by the political subdivision on any such claim or account to the payment of such delinquent taxes, municipal claims and unpaid judgments, interest, and costs and the satisfaction of such taxes, municipal claims and judgments, interest, and costs on the public records in whole or in part. If any person shall, upon demand of the political subdivision, refuse to enter into any such agreement, the officer or employe of the political subdivision authorized to approve or pay such accounts shall continue to further withhold his approval or payment of such claim or account against the political subdivision or any part thereof, and advise such person that the political subdivision has a set-off against his claim or account or the part thereof not approved or paid for delinquent taxes, municipal claims, or a judgment or judgments held against such person and the interest and costs thereon, and that payment thereof will be refused until such delinquent taxes, municipal claims or judgments with the interest and costs thereon are paid or provision for their payment made. § 7234.  Petition to court of common pleas; rule to appear; termination of proceedings when agreement entered into If any person who is indebted to the political subdivision on account of delinquent taxes, municipal claims or judgment as aforesaid, and who has a claim or account against such political subdivision, shall, upon demand of the political subdivision, refuse, neglect or fail to enter into an agreement as hereinbefore provided, such political subdivision may petition the court of common pleas of the county, setting forth the facts of the case and asking for a rule to show cause why a decree should not be made that the amount of such delinquent taxes, municipal claim or judgment owing to the political subdivision, be set-off against the claim or account which such person has against the political subdivision, or against the proceeds of any judgment secured thereon. Thereupon the court shall grant a rule against all parties interested to appear and show cause why such a decree should not be made. The rule shall be returnable in not less than ninety (90) days from the date the petition was presented. If, during such period, prior to the return of such rule, the said person having such claim or account against the political subdivision shall enter into an agreement therewith, satisfactory to the political subdivision, the said proceedings upon notice given to the said court shall terminate. § 7235.  Order and decree for set-off; costs If, upon hearing, the court is satisfied that service of the rule has been made upon the parties interested, and that the facts stated in the petition are true, it shall order and decree that the amount of delinquent taxes, municipal claims and judgments owing to the said political subdivision by the said person having

848

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Ch. 52

Part I Ch. 1–14 Brokers Part II Ch. 15–22 Deeds Part III Ch. 23–35 Mortgages Part IV Ch. 36–40 Insurance Part V Ch. 41–48A Zoning, etc. Part VI Ch. 49–56 Taxation Part VII Ch. 57–63 Litigation Part VIII Ch. 64–67 L/T Part IX Ch. 68–72 Condos, etc.

a claim or account against such political subdivision, shall be set-off against such claim or account and against the proceeds of any judgment secured thereon. The court shall in its order determine by whom the costs of the proceedings shall be paid. § 7251.  Collection of municipal claims by assumpsit; limitations In addition to the remedies provided by law for the filing of liens for the collection of municipal claims, including but not limited to water rates, sewer rates and the removal of nuisances, all cities, boroughs, incorporated towns, townships and bodies corporate and politic created as municipal authorities pursuant to law may proceed for the recovery and collection of all of the foregoing claims by action of assumpsit against the person or persons who were the owner or owners of the property at the time of the completion of the improvement, or at the time the water or sewer rates or the cost of the removal of nuisances first became payable notwithstanding the fact that there was a failure on the part of any such city, borough, township, or body politic and corporate created as a municipal authority pursuant to law, or its agents, to enter any such municipal claim as a lien against the property assessed for the improvement, or for the furnishing of water or sewer services and for the removal of nuisances and for the recovery of which the action of assumpsit was brought. Any such action in assumpsit shall be commenced either within six years after the completion of the improvement from which said claim arises or within six years after the water or sewer rates or the cost of abating a nuisance first became payable. § 7252.  Actions previously instituted This act shall extend to all municipal claims where the improvement was heretofore made, or to municipal claims for water or sewer rates or cost of abating a nuisance which heretofore became payable where the claim is not barred by the statute of limitations affecting actions of debt or assumpsit. § 7271.  Judgment for want of affidavit of defense; assessment of damages; rule for judgment; replication If no affidavit of defense be filed within the time designated, judgment may be entered and damages assessed by the prothonotary by default, for want thereof. Such assessment shall include a fee for collection to plaintiff’s attorney in accordance with section 3.17 If an affidavit of defense be filed, a rule may be taken for judgment for want of sufficient affidavit of defense, or for so much of the claim as is insufficiently denied, with leave to proceed for the residue. The defendant may, by rule, require the plaintiff to reply, under oath or affirmation, to the statements set forth in the affidavit of defense, and after the replication has been filed may move for judgment on the whole record. § 7272.  Scire facias to revive judgment; form; fee for additional names The judgment upon such claim may be revived by writ of scire facias in the following form: The Commonwealth of Pennsylvania, to C. D. and E. F., Greeting: Whereas, A.B., claimant, on the __________ day of __________, A.D. 1_____, recovered judgment in the sum of __________ dollars against you, that the following described property be sold to satisfy the same: (Here describe property in full.) And whereas, We have been given to understand that though judgment, as aforesaid, was rendered, yet the amount thereof is still due and unpaid, and remains as a lien against said property. Now, you are hereby notified to file your

Table of Contents

PART VI

17. 53 P.S. § 7106.

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Index

849

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§ 7273

MUNICIPAL CLAIMS AND TAX LIENS

affidavit of defense to A.B.’s claim upon said judgment, if any defense you have, in the office of the prothonotary of our said court, within fifteen days after service of this writ upon you. If no affidavit of defense be filed within that time, said judgment may be revived against you for the amount set forth, with interest from the time of its recovery, and said property to be sold to recover the whole thereof. Witness the Hon. __________, President Judge of our said court, this __________ day of __________, A.D. 1_____ (Seal.) __________ Prothonotary. But the parties to the judgment may agree upon an amicable scire facias to revive, or to an amicable judgment of revival, upon such terms as may be agreed upon, with the same effect as if a scire facias in the form aforesaid had been duly issued, served, and returned. Where the name of more than one defendant is included in the scire facias described in this section, the prothonotary shall be entitled to an additional fee of twenty-five cents ($.25) for each extra name so included. § 7273.  Service of scire facias to revive judgment; procedure Said writ of scire facias shall be served, and the proceedings thereon shall be conducted, as to persons who are found by the sheriff, in the manner hereinbefore provided for the original scire facias sur claim; but, in any and all events, a return of nihil habet to the writs to revive shall be equivalent to personal service upon the defendants. The practice and procedure following said scire facias to revive, so far as applicable, shall be the same as in the case of the original scire facias to collect the claim. § 7274.  Judgment for plaintiff; costs All judgments for the plaintiff, whether on the original scire facias or any scire facias to revive, shall be de terris only, and shall be recovered out of the property bound by lien, and not otherwise; but the costs, whether as against the plaintiff, or the defendant actually defending against the claim, may be recovered by execution as in personal actions. § 7275.  Sequestrator; supersedeas After the expiration of twenty days from the recovery of judgment, whether on the original scire or any scire facias to revive, except in cases where the property named is essential to the business of a quasi public corporation, the court shall, upon the petition of the plaintiff, appoint a sequestrator of the rents, issues, and profits of the property bound by the judgment, unless in the meantime an appeal be taken, and approved security given to operate as supersedeas. If the owner against whom the judgment is entered be in possession of the property sequestered, or the party in possession refuse to pay a fair rent, the court shall, upon petition filed and served, grant a rule, and, if it be made absolute, award a writ in the nature of a writ of habere facias possessionem, directed to the owner and/or the party in possession commanding him, or them, to deliver such possession to the sequestrator within fifteen days thereafter, unless such property be occupied by the owner and his family for a home, in which case he shall be entitled to retain possession for a period of one month from the time the petition was served upon him. A sequestrator, once appointed, shall have power to retain possession as sequestrator until all the taxes owing at the time of his appointment shall have been collected or paid. He shall have power to lease the property for a period not exceeding one year with the usual privilege of renewal or termination thereof upon three months notice. He may make such repairs to the property as may be reasonably necessary to restore it to and maintain it in a tenantable condition. He may advertise for tenants and collect the costs of repairs and advertising from rentals collected or from a redeeming owner. He may appoint an agent or agents to collect the rentals of the property and pay such agent or agents the customary

850

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12/22/21 10:45 AM

REAL ESTATE TAXATION

Ch. 52

Part I Ch. 1–14 Brokers Part II Ch. 15–22 Deeds Part III Ch. 23–35 Mortgages Part IV Ch. 36–40 Insurance Part V Ch. 41–48A Zoning, etc. Part VI Ch. 49–56 Taxation Part VII Ch. 57–63 Litigation Part VIII Ch. 64–67 L/T Part IX Ch. 68–72 Condos, etc.

commissions for rent collections. All commissions, costs, and necessary expenses shall be deducted from the rents collected before paying the net balance towards the taxes. Any owner of the property may redeem it from the sequestrator and be again entitled to possession thereof upon payment of the net amount of taxes then owing upon the property after payment of the commissions, costs, and expenses of the sequestration proceedings. Upon payment of all taxes owing, either by a redeeming owner or by collection of rentals, the sequestrator shall transfer the possession of the property to the owner or owners subject to any existing lease or leases given or executed by the sequestrator, which said lease or leases shall be assigned to the owner. Sequestrators appointed under this act shall have and exercise all the powers, and shall be entitled to use, all the remedies conferred by the laws of this Commonwealth upon sequestrators in other proceedings, so far as they may be applicable. § 7276.  Dockets Every claim filed, scire facias issued, verdict recovered, and judgment entered, in accordance with the provisions of this act, shall be docketed in appropriate dockets, and, except as hereinafter provided, shall be entered upon the judgment index of the court. When a claim is stricken off or satisfied, the name of a defendant stricken out, a scire facias discontinued or quashed, or a verdict or judgment stricken off or satisfied, a note thereof shall be made on such docket or dockets: Provided, however, That in counties in which the filing of liens for county taxes was authorized by law prior to the passing of the act of one thousand nine hundred and one, aforesaid,18 the method of filing, entering, docketing, and indexing liens for county, road, poor, school, borough, school building, township, and other taxes, assessed in boroughs and townships in such counties, shall remain and be continued thereafter in the same manner and form as in use prior to the passage of the said act, approved June fourth, one thousand nine hundred and one, notwithstanding the passage of the same. § 7277.  Stay of proceedings; security for; effect; expiration At any time before the property is sold, approved security may be entered for a stay of proceedings until the expiration of one year after the date of filing the claim. The entry of such security by the owner, before the entry of judgment on the claim, shall be equivalent to an admission by him that the property is liable for the claim. After the stay has expired the claimant may proceed upon the claim and the bond given, separately or simultaneously. § 7278.  Levari facias; form; advertisement of sale; sheriff’s deed Execution upon any judgment recovered upon any such claim, except where the property named is essential to the business of a quasi public corporation, shall be by writ of levari facias in the following form: The Commonwealth of Pennsylvania: To the sheriff of __________ County, Greeting: Whereas, A.B., claimant, on the __________ day of __________, Anno Domini 1 __________, recovered judgment in the sum of __________ dollars, with interest from the __________ day of __________, Anno Domini 1 __________, and the costs amounting to ...... dollars, in our court of common pleas of said county, of __________ Term __________, No. __________, M.L.D. against C.D. and E.F., that the following described property in your bailiwick be sold to satisfy the same, viz.: (Here describe the property in full.)

Table of Contents

PART VI

18. See notes under 53 P.S. § 7101.

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Index

851

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§ 7279

MUNICIPAL CLAIMS AND TAX LIENS

Now, this is to command you that you expose the said property to sale by public vendue and outcry, after due advertisement according to law, and that return of said sale, with the moneys realized thereby and this writ, you make to our said court on the __________ day of __________, Anno Domini 1 __________ Witness the Honorable __________, President Judge of our said court, this __________ day of __________, Anno Domini 1 __________ Advertisement of such sale shall be made, and the deed to the purchaser shall be executed, acknowledged, and delivered, as in other real estate sales by the sheriff. § 7279.  Upset sale price; purchase by municipality The plaintiff in any judgment recovered on a tax or municipal claim may, upon paying the sheriff’s costs, fix an upset price to be realized at any sale under such judgment, sufficient to pay all taxes and municipal claims, and all accrued but unfiled taxes and claims, in full. No sale shall be made on a judgment recovered on a tax or municipal claim except for a sum sufficient to pay all taxes and municipal claims in full, except as hereinafter provided, and the plaintiff in such judgment may purchase the property at such sale, for that sum, if no one bids a higher price therefor, except when a municipality is the real plaintiff in such judgment, and no one else bids a sum sufficient to pay sheriff’s costs and all taxes and municipal claims in full, said municipality may purchase the property for the sheriff’s costs thereon, subject to the lien of all taxes and municipal claims, and liens not otherwise discharged by the sale under existing law. Upon a purchase by a municipality for the sheriff’s costs, any income received from the property by the municipality in excess of that necessary for the upkeep of said property and the payment of insurance premiums thereon, and the cost of improvements thereto, shall be applied to the payment of the costs of sale, then to payment of all taxes liened and unliened, in the order of their priority, the oldest being paid first, and then to municipal claims in the same order. § 7280.  Execution against quasi public corporations Where judgment is recovered upon any claim, the property named in which is essential to the business of a quasi public corporation, the claimant shall have execution thereupon as in other cases of judgments against such corporations. Upon the distribution of any fund realized by a sale of the franchises and the whole or any part of the assets of the corporation, the court shall determine the actual value of the property bound by the lien, and the claim shall be preferred, with such other claims, to the extent of the value thus determined. § 7281.  Judicial sales; effect of; postponement of sale; decree for sale; stay; evidence; bids; redemption; deed The lien of a tax or a municipal claim shall not be divested by any judicial sale of the property liened, where the amount due is indefinite or undetermined, or where the same is not due and payable; nor shall the lien of a tax or municipal claim be divested by any judicial sale of the property liened, as respects so much thereof as the proceeds of such sale may be insufficient to discharge; nor, except as hereinafter provided, shall a judicial sale of the property liened, under a judgment obtained on a tax or municipal claim, discharge the lien of any other tax or municipal claim than that upon which said sale is had, except to the extent that the proceeds realized are sufficient for its payment, after paying the costs, charges and fees, including reasonable attorney fees, expenses of the sale, and of the writ upon which it was made, and any other prior tax or municipal claims to which the fund may first be applicable. On any such sale being made all tax claims shall be paid out of the proceeds thereof: first, the oldest tax having priority; and municipal claims shall be paid next, the oldest in point of lien having priority. Mortgages, ground-rents, and other charges on or estates in the property which

852

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12/22/21 10:45 AM

REAL ESTATE TAXATION

Ch. 52

Part I Ch. 1–14 Brokers Part II Ch. 15–22 Deeds Part III Ch. 23–35 Mortgages Part IV Ch. 36–40 Insurance Part V Ch. 41–48A Zoning, etc. Part VI Ch. 49–56 Taxation Part VII Ch. 57–63 Litigation Part VIII Ch. 64–67 L/T Part IX Ch. 68–72 Condos, etc.

were recorded, or created where recording is not required, before any tax other than for the current year accrue, or before the actual doing of the work in front of or upon the particular property for which the municipal claim is filed, shall not be disturbed by such sale unless a prior lien is also discharged thereby. In case the property be not sold for a sum sufficient to pay all taxes and municipal claims, together with the costs thereon, the plaintiff in any such claim may postpone the sale, without payment of costs, and file his petition setting forth that more than one year has elapsed since the filing of his claim; that he has exposed the property to sheriff’s sale thereunder, and was unable to obtain a bid sufficient to pay the upset price in full; and, if the plaintiff is not a municipality as defined in this act, that he will bid sufficient to pay the upset price, and upon the production of searches or a title insurance policy showing the state of the record and the ownership of the property, and of all tax and municipal claims, mortgages, ground-rents, or other charges on or estates in the land, the court shall grant a rule upon all parties thus shown to be interested to appear and show cause why a decree should not be made that said property be sold, freed, and cleared of their respective claims, mortgages, charges, and estates. If, upon a hearing thereafter, the court is satisfied that service has been made of said rule upon the parties respondent, in the manner provided in section 39.2,19 and that the facts stated in the petition be true, it shall order and decree that said property be sold at a subsequent sheriff’s sale day, to be fixed by the court without further advertisement, and the court may fix a common date and place of sale for more than one of said properties if it deems a joint sale to be advantageous. All property at sheriff’s sale shall be sold, clear of all claims, liens, mortgages, charges, and estates, to the highest bidder at such sale; and the proceeds realized therefrom shall be distributed in accordance with the priority of such claims; and the purchaser at such sale shall take, and forever thereafter have, an absolute title to the property sold, free, and discharged of all tax and municipal claims, liens, mortgages, charges, and estates of whatsoever kind, subject only to the right of redemption as provided by law. In counties of the second class, upon return of the writ upon which the sale was made and upon the expiration of the statutory right of redemption and if no petition to set aside the sale is pending, the prothonotary shall satisfy all tax claims and municipal claims divested by the judicial sale in accordance with the order of court authorizing such sale. Any person interested may, at any time before the sale, pay the petitioner the whole of his claim, with interest, costs, charges, expenses, fees and attorney fees, whereupon the proceedings on petition shall at once determine. For the purpose of enabling the petitioner in any such proceedings to give the notice required, he may take the testimony of the defendant in the claim, or of any other person whom he may have reason to believe has knowledge of the whereabouts of any of the parties respondent, either by deposition, commission, or letters rogatory. Any municipality, being a claimant, shall have the right, and is hereby empowered, to bid and become the purchaser of the property at such sale; and while the said property, so purchased, is held and owned by any county, city, borough, incorporated town, township, school district or a body politic and corporate created as a municipal authority pursuant to law, it shall not be subject to tax claims, unless it be redeemed by the former owner or other person having the right to redeem, as provided by law. If, however, a municipality shall become the purchaser at said sale, the former owner or other person, desiring to redeem, shall pay all taxes and municipal claims accrued and chargeable against the property prior to the sale thereof, together with the costs and interest thereon, and also all taxes and claims, whether filed or not, which would have accrued

Table of Contents

PART VI

19. 53 P.S. § 7193.2.

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Index

853

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§ 7282

MUNICIPAL CLAIMS AND TAX LIENS

and become chargeable against the property had the same been purchased at the sale by some party other than the municipality. Upon the delivery by the sheriff of a deed for any property sold under a tax or municipal claim, the judgment upon which such sale was had shall thereupon and forever thereafter be final and conclusive as to all matters of defense which could have been raised in the proceeding, including payment, and no error or irregularity in obtaining or entering of such judgment shall effect the validity thereof. § 7282.   Counties of first class; recovery of judgment; sale free from claims In addition to the remedy prescribed in sections twenty-eight and thirty-one of this act,20 whenever a claimant in any county of the first class has obtained a judgment upon its tax or municipal claim, it may file its petition in the court in which the proceeding is pending, setting forth the facts necessary to show the right to sell, together with searches or a title insurance policy, showing the state of the record and the ownership of the property, and of all tax and municipal claims, mortgages, groundrents, or other charges on, or estates in, the land, as shown by the official records of the county, or the political subdivision in which the real estate is situate, and thereupon the court shall grant a rule upon all parties thus shown to be interested, to appear and show cause why a decree should not be made that said property be sold, freed and cleared of their respective claims, mortgages, groundrents, charges and estates, and without any right of redemption after such sale. If, upon a hearing, thereafter the court is satisfied that service has been made of said rule upon all interested parties in accordance with section 39.221 and that the facts stated in the petition be true, it shall order and decree that said property be sold at a subsequent sheriff’s sale at a time to be fixed thereafter by the claimant, at least one year after the date of the decree, clear of all claims, liens, mortgages, groundrents, charges and estates to the highest bidder at such sale, and the proceeds realized therefrom shall be distributed in accordance with the priority of such claims, liens, mortgages, groundrents, charges and estates, and the purchaser at such sale shall take and forever thereafter have an absolute title to the property sold, free and discharged of all tax and municipal claims, liens, mortgages, groundrents, charges and estates of whatsoever kind, and not thereafter subject to any right of redemption. Advertisement of such sale shall be made and the deed to the purchaser shall be executed, acknowledged and delivered as in other real estate sales by the sheriff: Provided, however, That any person interested may at any time prior to the proposed sale pay all the costs of the proceedings, including a reasonable fee for the necessary title search or title insurance policy to be fixed by the court, and all tax and municipal claims, penalties and interest thereon, charged against the property; whereupon the proceedings on petition shall at once determine, notice of this proviso shall be included with each service and in each publication of the aforesaid rule. In addition to the remedy prescribed in section 28,22 whenever a municipality in any county of the second class has obtained a judgment on a tax or municipal claim, it may file its petition in the court in which the proceeding is pending. The petition shall set forth the facts necessary to show the right to sell; a title search or a title insurance policy showing the state of the record and the ownership of the property; and all tax and municipal claims, mortgages, groundrents or other charges on, or estates in, the land as shown by the official records of the county or the political subdivision in which the real estate is situate. The court shall issue a rule upon all parties named in the petition to appear and show cause why a decree 20. 53 P.S. §§ 7278 and 7281. 21. 53 P.S. § 7193.2. 22. 53 P.S. § 7278.

854

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REAL ESTATE TAXATION

Ch. 52

Part I Ch. 1–14 Brokers Part II Ch. 15–22 Deeds Part III Ch. 23–35 Mortgages Part IV Ch. 36–40 Insurance Part V Ch. 41–48A Zoning, etc. Part VI Ch. 49–56 Taxation Part VII Ch. 57–63 Litigation Part VIII Ch. 64–67 L/T Part IX Ch. 68–72 Condos, etc.

shall not be made to sell the property free and clear of all claims, mortgages, groundrents, charges and estates and without any right of redemption after such sale. If, upon a hearing thereafter, the court is satisfied that proper service has been made of said rule on all interested parties in accordance with section 39.2 and that the facts stated in the petition are true, it shall order and decree that the property be sold at a subsequent sheriff’s sale at a time fixed by the claimant, clear of all claims, liens, mortgages, groundrents, charges and estates, to the highest bidder at such sale, and the proceeds realized therefrom shall be distributed in accordance with the priority of such claims, liens, mortgages, groundrents, charges and estates, and the purchaser shall take and forever thereafter have an absolute title to the property sold, free and discharged of all tax and municipal claims, liens, mortgages, groundrents, charges and estates of whatsoever kind, and not thereafter subject to any right of redemption. Advertisement of such sale shall be made and the deed to the purchaser shall be executed, acknowledged and delivered as in other real estate sales by the sheriff. An interested person may, at any time prior to the proposed sale, pay all the costs, charges, expenses and fees and attorney fees of the proceedings, including the cost for the title search or title insurance policy, and all tax and municipal claims charged against the property, whereupon the sale proceedings shall at once terminate. Notice of this provision shall be included with each service of the aforesaid rule. In counties of the second class, upon return of the writ upon which the sale was made and if no petition to set aside the sale is pending, the prothonotary shall satisfy all tax claims and municipal claims divested by the judicial sale. For the purpose of enabling the petitioner in any such proceedings to give the notice required, it may take the testimony of the defendant in the claim, or of any other person whom it may have reason to believe has knowledge of the whereabouts of any of the parties respondent, either by deposition, commission or letters rogatory. Any claimant shall have the right, and is hereby empowered, to bid and become the purchaser of the property at such sale, and if such purchaser shall be a taxing authority within the county, such property, while held and owned by such taxing authority, shall not be subject to tax claims. Upon the delivery by the sheriff of a deed for any property sold under the provisions of this section, the judgment upon which such sale was had shall thereupon and forever thereafter be final and conclusive, and the validity thereof shall not be questioned for any cause whatsoever. § 7283.  Cities of first class; recovery of judgment; sale free from claims (a)   In addition to the remedies prescribed in sections 28, 323 and 31.1 of this act, 1 in cities of the first class, whenever a claimant has filed its tax or municipal claim in accordance with the requirements of this act, it may file its petition in the court in which the proceeding is pending, setting forth the facts necessary to show the right to sell, together with searches or a title insurance policy, showing the state of record and the ownership of the property, and of all tax and municipal claims, mortgages, ground rents or other charges on, or estates in, the land, as shown by the official records of the city or county, or the political subdivision in which the real estate is situate, and thereupon the court shall grant a rule upon all parties thus shown to be interested, to appear and show cause why a decree should not be made that the property be sold, freed and cleared of their respective claims, mortgages, ground rents, charges and estates. If upon a hearing, the court is satisfied that service had been made of the rule upon the parties respondent in the manner provided in this act for the service of writs of scire facias to obtain judgments upon tax and municipal claims, and that contemporaneously with the

Table of Contents

PART VI

23. 53 P.S. §§ 7278, 7281, and 7282.

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Index

855

12/22/21 10:45 AM

§ 7283

MUNICIPAL CLAIMS AND TAX LIENS

service of the rule on the parties respondent notice of the rule has been published by the claimant in at least one newspaper of general circulation in the county, and in a legal periodical published therein, if any, and that the facts stated in the petition be true, it shall order and decree that the property be sold at a subsequent sheriff’s sale at a time to be fixed thereafter by the claimant, clear of all claims, liens, mortgages, ground rents, charges and estates, to the highest bidder at such sale and after payment of the tax or municipal lien the balance of the proceeds realized therefrom, shall be distributed in accordance with the priority of the remaining claims, liens, mortgages, ground rents, charges and estates, and the purchaser at such sale shall take and forever thereafter have, an absolute title to the property sold, free and discharged of all tax and municipal claims, liens, mortgages, ground rents, charges and estates of whatsoever kind, subject only to the right of redemption as provided by law. The date of the sale shall be advertised in at least one newspaper of general circulation in the county and in the legal periodical published therein. (b)   The deed to the purchaser shall be executed, acknowledged and delivered as in other real estate sales by the sheriff. Deeds for property exposed for any sale under this section shall not be executed, acknowledged and delivered any sooner than thirty days nor later than one hundred and twenty days after the purchaser pays the balance due to the sheriff for any sale held under this section. Any person interested may at any time prior to the proposed sale pay all the costs of the proceedings, including the cost for the title search or title insurance policy, and all tax and municipal claims, penalties and interest thereon, charged against the property whereupon the proceedings on petition shall at once determine. (b.1)   A city of the first class may, within thirty days of any sale held under this section, petition the court of common pleas to prohibit the transfer of any deed for any property exposed for any sale under this act which is located in that city to any purchaser who is proven to meet any of the criteria set forth in subsection (b.2). (b.2)(1)   The petition of a city of the first class shall allege that the purchaser has over the three years preceding the filing of the petition exhibited a course of conduct which demonstrates that a purchaser permitted an uncorrected housing code violation to continue unabated after being convicted of such violation and: (i)   failed to maintain property owned by the purchaser in a reasonable manner such that it posed a threat to health, safety or property; or (ii)   permitted the use of property in an unsafe, illegal or unsanitary manner such that it posed a threat to health, safety or property. (2)   A person who acts as an agent for a purchaser who sought to avoid the limitations placed on the purchase of property by this section shall be subject to the restrictions imposed by this section. (3)   Allegations under this subsection shall be proved by a preponderance of the evidence. In ruling on the petition, a court shall consider whether violations were caused by malicious acts of a current non-owner occupant and the control exercised by a purchaser in regard to his ownership interest or rights with other properties. (b.3)  A change of name or business status shall not defeat the purpose of this section. (b.4)   As used in this section: “Purchaser” shall mean any individual, partner, limited or general partner, shareholder, trustee, beneficiary, any other individual with any ownership interest or right in a business association, sole proprietorship, partnership, limited partnership, S or C corporation, limited liability company or corporation, trust, business trust or any other business association.

856

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12/22/21 10:45 AM

REAL ESTATE TAXATION

Ch. 52

Part VI Ch. 49–56 Taxation Part VII Ch. 57–63 Litigation Part VIII Ch. 64–67 L/T Part IX Ch. 68–72 Condos, etc.

7281. 7282. 7283. 7193.2.

Index

857

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Part V Ch. 41–48A Zoning, etc.

§ § § §

Part IV Ch. 36–40 Insurance

P.S. P.S. P.S. P.S.

Part III Ch. 23–35 Mortgages

53 53 53 53

Part II Ch. 15–22 Deeds

24. 25. 26. 27.

Part I Ch. 1–14 Brokers

“Uncorrected housing code violation” shall mean any conviction of a violation of the building, housing, property maintenance or fire code which is not remedied within six months of conviction. “Violation” shall mean any conviction under a building, housing, property maintenance or fire code which posed a threat to health, safety or property, but not a conviction deemed by a court to be de minimis. (c)   For the purpose of enabling the petitioner in any proceedings to give the notice required, it may take the testimony of the defendant in the claim, or of any other person whom it may have reason to believe has knowledge of the whereabouts of any of the parties respondent, either by deposition, commission or letters rogatory. (d)   Any claimant may bid and become the purchaser of the property at such sale, and if such purchaser shall be a taxing authority within the city or county, such property while held and owned by such taxing authority, shall not be subject to tax claims, unless it be redeemed by the former owner or other person having the right to redeem, as provided by law. If, however, a city or county, or a taxing authority within the city or county, shall become the purchaser at said sale, the former owner or other persons, desiring to redeem, shall pay all taxes and municipal claims accrued and chargeable against the property prior to the sale thereof, together with the costs and interest thereon, and also all taxes and claims, whether filed or not, which would have accrued and become chargeable against the property had the same been purchased at the sale by some party other than the city or county, or a taxing authority within the city or county. (e)  Upon the delivery by the sheriff of a deed for any property sold under the provisions of this section, the judgment upon which such sale was had shall thereupon and forever thereafter be final and conclusive, and the validity thereof shall not be questioned for any cause whatsoever. § 7283a.  Judicial sales; multiple properties sold together If with regard to two or more properties a municipality is authorized under section 31,24 31.125 or 31.226 to petition the court for the individual sale of each property, free and clear of its respective claims, liens, mortgages, charges and estates, the municipality may join any number of the properties in a single petition, and the court may grant a rule upon all parties shown to be interested in any of the properties to appear and show cause why a decree should not be made that the properties which are the subject of the petition be sold together in one sale, free and clear of their respective claims, mortgages, charges and estates. If upon a hearing thereafter the court is satisfied that service has been made of the rule upon the parties in the manner provided in section 39.227 and that the facts stated in the petition be true, the court shall order and decree, subject to any applicable restrictions and limitations in section 31, 31.1 or 31.2, that the properties be sold together at one sale at a subsequent sheriff’s sale day, to be fixed by the court without further advertisement, clear of all claims, liens, mortgages, charges and estates, to the highest bidder at such sale. If a judicial sale of multiple properties is ordered, any party shown to be interested in a particular property may, at any time before the sale, pay the municipality the whole of its claim relating to the particular property, with interest, costs, charges, expenses, fees and attorney fees, whereupon the proceedings on petition with regard to that property shall at once determine. A judicial sale of multiple properties shall not

Table of Contents

PART VI

12/22/21 10:45 AM

§ 7284

MUNICIPAL CLAIMS AND TAX LIENS

diminish the right of redemption with regard to any particular property that is a part of the sale. § 7284.  Legislative finding (a)   It is hereby determined and declared as a matter of legislative finding that: (1)   There exists in counties of the first class in this Commonwealth areas which have become blighted, or are deteriorating and, thus, in serious danger of becoming blighted, because of the unsafe, unsanitary, inadequate or overcrowded condition of the dwellings therein, because of the conditions of vacant lots, or because of inadequate planning of the area, or the excessive land coverage by the building thereon, or the lack of proper light and air and open space, or because of the defective design and arrangement of the buildings thereon, or faulty street or lot layout, or economically or socially undesirable land uses. As a result of these conditions, blighted and deteriorated areas have been conducive to the spread of disease and have been productive of an alarming rise in juvenile delinquency and crime. (2)   These areas contain numerous empty lots which are generally used for dumping and are breeding places for vermin. These empty lots are detrimental to the health, safety and welfare of the community and result in accelerating the trend toward neighborhood deterioration and blight. (3)   These vacant lots are generally tax delinquent. Neighboring land owners and others generally refrain from purchasing these lots at tax sales and28 rehabilitating them (i) because of the necessity of two sales under existing law and (ii) because the prior owner has under existing law an outstanding right to redeem the property and oust the purchaser from possession. (b)  It is hereby declared to be the policy of the Commonwealth of Pennsylvania to promote the health, safety and welfare of the inhabitants thereof by encouraging neighboring land owners and others to purchase vacant lots at tax sales by authorizing the purchaser at a tax sale, wherever tax delinquencies exist for a period of at least five years, to take title upon such sale free of all tax and municipal claims, liens, mortgages, ground rents, charges and estates and without any right of redemption. § 7285.  Certification of area as a conservation area Whenever the Planning Commission having jurisdiction in a county determines that any area is blighted or in serious danger of becoming blighted, it may certify the area as a conservation area. In making its determination, the Planning Commission shall consider the extent to which the following conditions exist: (1)   Unsafe, unsanitary and overcrowded dwellings; (2)   Vacant lots, overgrown by weeds and used for dumping grounds; (3)  A disproportionate number of tax delinquent properties causing the taxes received from the area to be less than the cost of State and municipal services rendered; (4)   Excessive land coverage by buildings with resulting lack of proper light, air and open space; (5)  Defective design and arrangement of buildings or faulty street or lot layout; (6)   Economically and socially undesirable land uses. § 7286.  “Vacant lot” defined The term “vacant lot” shall mean any piece of ground without any permanent building or structure erected thereon.

28. Enrolled bill omitted “and”.

858

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REAL ESTATE TAXATION

Ch. 52

Part IV Ch. 36–40 Insurance Part V Ch. 41–48A Zoning, etc. Part VI Ch. 49–56 Taxation Part VII Ch. 57–63 Litigation Part VIII Ch. 64–67 L/T Part IX Ch. 68–72 Condos, etc. Index

gtb-parealestate22-all.indb 859

Part III Ch. 23–35 Mortgages

859

Part II Ch. 15–22 Deeds

29. 53 P.S. § 7186 30. 53 P.S. § 7283 et seq.

Part I Ch. 1–14 Brokers

§ 7287.  Petition to sell property; order; redemption; notice of sale (a)   When a claimant in any county of the first class has obtained a judgment upon its tax or municipal claim against any vacant lot located in an area which has been certified as a conservation area by the Planning Commission having jurisdiction in the county, and there shall be charged against the property tax delinquencies for a period of at least five years, the claimant may file a petition in the court in which the proceeding is pending, setting forth the facts necessary to establish the right to sell the property, together with a title search or a title insurance policy showing the state of the record and the ownership of the property and of all tax and municipal claims, mortgages, ground rents or other charges on, or estates in, the real property, as shown by the official record of the county in which the real property is situate. The court shall thereupon grant a rule upon all parties shown to be interested, to appear and show cause why a decree should not be made that the property be sold, free and clear of the respective tax and municipal claims, liens, mortgages, ground rents, charges and estates and without any right of redemption after a sale. (b)  If, upon a hearing, the court is satisfied that (1) service of the rule has been made upon the interested parties in the manner provided for the service of writs of scire facias in section eighteen of the act of May sixteen, one thousand nine hundred twenty-three (Pamphlet Laws 207),29 for the obtaining of a judgment upon tax and municipal claims, and (2) notice of the rule has been published by the claimant in at least one newspaper of general circulation in the county and in the authorized legal periodical published therein, if any, and (3) the facts stated in the petition are true, it shall order and decree that the property be sold at a subsequent sheriff sale at a time to be fixed thereafter by the court free and clear of all tax and municipal claims, liens, mortgages, ground rents, charges and estates, to the highest bidder at the sale, and the purchaser at the sale shall take and forever thereafter have an absolute title to the property sold, free and discharged of all tax and municipal claims, liens, mortgages, ground rents, charges and estates of whatsoever kind. The property shall not thereafter by subject to any right of redemption. Notice of the sale shall be published by the claimant in at least one newspaper of general circulation in the county and in the authorized legal periodical published therein, if any. § 7288.  Testimony respecting whereabouts of interested parties For the purpose of enabling the petitioner in any proceedings to give the notice required, the court may take the testimony of any interested party, or of any other person whom it may have reason to believe has knowledge of the whereabouts of any of the other interested parties. § 7289.  Purchase by claimant Any claimant shall have the right to bid and become the purchaser of the property at a sale. § 7290.  Deed The deed for the property shall be executed, acknowledged and delivered as in other real estate sales by the sheriff. Upon the delivery of a deed for any property sold under the provisions of this act,30 the judgment, upon which the sale was had, shall thereupon and forever thereafter be final and conclusive, and the validity thereof shall not be questioned for any cause whatsoever. § 7291.  Disposition of proceeds of sale The costs and the expenses of any sale shall first be paid out of the proceeds. The balance thereof shall be applied first to the payment of tax claims, the old-

Table of Contents

PART VI

12/22/21 10:45 AM

§ 7292

MUNICIPAL CLAIMS AND TAX LIENS

est thereof having priority, municipal claims shall be next the oldest in point of lien having priority; and any surplus shall be distributed in accordance with law. § 7292.  Payment of costs prior to proposed sale Notwithstanding any provisions of this act, any person may, at any time prior to the proposed sale, pay all costs of the proceedings,31 including the cost of the necessary title search or title insurance policy and all tax and municipal claims, penalties and interest thereon, charged against the property; whereupon, the proceedings on petition shall at once determine. § 7293.  Redemption (a)   The owner of any property sold under a tax or municipal claim, or his assignees, or any party whose lien or estate has been discharged thereby, may, except as provided in subsection (c) of this section, redeem the same at any time within nine months from the date of the acknowledgment of the sheriff’s deed therefor, upon payment of the amount bid at such sale; the cost of drawing, acknowledging, and recording the sheriff’s deed; the amount of all taxes and municipal claims, whether not entered as liens, if actually paid; the principal and interest of estates and encumbrances, not discharged by the sale and actually paid; the insurance upon the property, and other charges and necessary expenses of the property, actually paid, less rents or other income therefrom, and a sum equal to interest at the rate of ten per centum per annum thereon, from the time of each of such payments. If both owner and creditor desire to redeem, the owner shall have the right so to do only in case he pays the creditor’s claim in full. If more than one creditor desires to redeem, the one who was lowest in lien at the time of sale shall have the prior right, upon payment in full of the claim of the one higher in lien. Within nine months, one who was lower in lien may redeem from one higher in lien who has already redeemed, and the owner may redeem from him; and so on throughout, in each case by paying the claim of the one whose right was higher; and one higher in lien may redeem from one lower in lien, unless his claim is paid; but in each case the right must be exercised within nine months. (b)  Any person entitled to redeem may present his petition to the proper court, setting forth the facts, and his readiness to pay the redemption money; whereupon the court shall grant a rule to show cause why the purchaser should not reconvey to him the premises sold; and if, upon hearing, the court shall be satisfied of the facts, it shall make the rule absolute, and upon payment being made or tendered, shall enforce it by attachment. (c)   Notwithstanding any other provision of law to the contrary, in any city, township, borough or incorporated town, there shall be no redemption of vacant property by any person after the date of the acknowledgment of the sheriff’s deed therefor. For the purposes of this subsection, property shall be deemed to be “vacant property” unless it was continuously occupied by the same individual or basic family unit as a residence for at least ninety days prior to the date of the sale and continues to be so occupied on the date of the acknowledgment of the sheriff’s deed therefor. § 7321.  Abatement of certain charges on payment of delinquent claims All interest charges, expenses and fees added to any and all delinquent county, city, borough, town, township, school district or poor district claims, imposed or assessed on any parcel or parcels of real estate in the year one thousand nine hundred and thirty-five and all previous years, arising out of or resulting from a service supplied, work done or improvement authorized and undertaken by any such political subdivision, or filed to recover for the grading, guttering, macadamizing, or otherwise improving the cartways of any public highway; for grading, curbing, recurbing, paving, repaving, constructing or repairing the footways 31. Enrolled bill reads “proceeding”.

860

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12/22/21 10:45 AM

REAL ESTATE TAXATION

Ch. 52

Part III Ch. 23–35 Mortgages Part IV Ch. 36–40 Insurance Part V Ch. 41–48A Zoning, etc. Part VI Ch. 49–56 Taxation Part VII Ch. 57–63 Litigation Part VIII Ch. 64–67 L/T Part IX Ch. 68–72 Condos, etc. Index

gtb-parealestate22-all.indb 861

Part II Ch. 15–22 Deeds

861

Part I Ch. 1–14 Brokers

thereof; for laying water pipes, gas pipes, culverts, sewers, branch sewers, or sewer connections therein; for assessments for benefits in the opening, widening or vacation thereof, or in the changing of watercourses, or the construction of sewers through private lands, or in highways of townships of the first class, or in the acquisition of sewers and drains constructed and owned by individuals or corporations, and of rights in and to use the same; for the removal of nuisances; or for water rates, lighting rates or sewer rates, may be abated by the political subdivision, in behalf of which the claim was filed, if said delinquent claims are paid as hereinafter provided. In order to receive the benefits of this act, twenty per centum of the delinquent municipal claims, imposed or assessed on any parcel or parcels of real estate in the year one thousand nine hundred and thirty-five and in all previous years, shall be paid, on or before the thirty-first of December, one thousand nine hundred and thirty-seven; twenty per centum, on or before the thirty-first day of December, one thousand nine hundred and thirty-eight; twenty per centum, on or before the thirty-first day of December, one thousand nine hundred and thirty-nine; twenty per centum, on or before the thirty-first day of December, one thousand nine hundred and forty; and twenty per centum, on or before the thirty-first day of December, one thousand nine hundred and forty-one. If and whenever any of the said installments are not paid when due and payable as herein provided, then, and in that event, there shall become due and payable for such year a sum equal to one-fifth of the total amount of the abated interest charges, expenses and fees in addition to the other payments required to be paid under this act during that year, which said additional sum shall be payable and must be paid at the time next succeeding installment payment becomes due under this act. If such additional sum is not so paid, then the total amount of the abated interest charges, expenses and fees, less the aggregate of any such additional sums theretofore paid, shall be revived and added to the unpaid claims with the same force and effect as if such abated interest charges, expenses and fees, or portion thereof, had never been abated, and the person liable for the payment thereof shall not thereafter be entitled to any further benefits or privileges under this act. § 7322.  Payments may be anticipated Any person may anticipate the payment of such delinquent municipal claims for the year one thousand nine hundred and thirty-five and previous years and receive the benefits of this act by paying the entire amount or the balance due on such delinquent claims at any time, on or before the thirty-first day of December, one thousand nine hundred and thirty-seven. § 7323.  Claims to which abatement privilege extends This act shall be construed to apply to all such claims whether or not liens for such claims have been filed in the office of the prothonotary of the county, or proceedings for the collection of such claims have been instituted in any court in said county, or where real property has been sold to a county, city, borough, town, township, school district or poor district at a judicial sale for the nonpayment of such claim, and the period of redemption has not expired; but this act shall not be construed to apply to cases where real property has been sold other than to a county, city, borough, town, township, school district or poor district at any such sale, and where the period of redemption has not expired, and the person liable for the payment of such claim shall be liable for the payment of all costs incurred in such proceedings, except the solicitor’s fees. § 7324.  Persons within benefit of act The benefits of this act shall extend to and accrue to any successful bidder or purchaser at sheriff’s or other judicial sale, grantee, transferee, mortgagee or other party in interest in the parcel or parcels of real estate against which the above mentioned claims have been imposed or assessed and levied.

Table of Contents

PART VI

12/22/21 10:45 AM

§ 7325

MUNICIPAL CLAIMS AND TAX LIENS

§ 7325.  Individual properties may be cleared; statement of claims owed; notice to property owners Any taxpayer shall have the right to pay the delinquent claims, imposed or assessed and levied against any parcel or parcels of real estate, without being required to pay the delinquent claims imposed or assessed and levied against any other parcel or parcels of real estate in the same ward district or other political subdivision. Upon application either in person or in writing by any person liable for the payment of any such delinquent claims, the authorities imposing or assessing and levying such claims, or the person or persons charged with the collection of such delinquent claims, or the person or persons in whose custody the records of such delinquent claims are kept, shall furnish to the person liable for the payment of such claims a statement of the delinquent claims owed by him to such political subdivision, showing the face amount, the interest charges, expenses and fees, and any costs or other charges in detail against such real property as shown by the records in his custody. Within thirty days after the acceptance of the provisions of this act by any political subdivision, and once again during the last week of October, one thousand nine hundred and thirty-seven, the corporate authorities of the political subdivision shall have published in their official newspaper or newspapers and in the legal newspapers, if any, a notice in display type relative to the provisions of this act, which shall read as follows: Notice to Property Owners. Under the provisions of Act No. ____________ approved ________, 1937, all persons owing any county, city, borough, town, township, school district or poor district delinquent municipal claims (such as street and sewer delinquent municipal claims), for the year one thousand nine hundred and thirty-five, and all previous years, may have certain of the interest charges, expenses and fees thereon abated by paying the amount or amounts due on such delinquent claims in five equal annual installments, if the first twenty per centum installment is paid, on or before the thirty-first day of December, one thousand nine hundred and thirty-seven, or the entire amount, or the balance due of such delinquent claims, may be paid at face at any time prior to December thirty-first, one thousand nine hundred and thirty-seven. Further information may be obtained from the undersigned. § 7326.  Adjournment of sales for nonpayment of taxes In order to enable the taxpayer to receive the full benefits of this act, no real property shall be sold for nonpayment of such municipal claims before December thirty-first, one thousand nine hundred and thirty-seven, and any such sale shall be adjourned or readjourned as often as may be necessary for this purpose. If any sale is adjourned or readjourned after advertisement, no additional advertisement or notice shall be necessary for the adjourned or readjourned sale. No such adjournment or readjournment, failure to advertise, or hold any such sale, shall invalidate the lien of any municipal claim due and unpaid, but the lien of all such claims shall be fully preserved during the entire installment period, herein provided for, if the persons liable for the payment of such claims avail themselves of the privileges or benefits of this act: Provided, however, That in every case where a person avails himself of the privileges or benefits of this act, the period, during which payment of the said delinquent claim is postponed or continued under this act, shall not be included in computing and determining whether or not any right of the authority which imposed or assessed such claim has been barred or lost by reason of the provisions of any statute or statutes now existing, or hereafter enacted, limiting the right of the said authority to file, preserve or maintain the lien of the said claim.

862

gtb-parealestate22-all.indb 862

12/22/21 10:45 AM

REAL ESTATE TAXATION

Ch. 52

Part III Ch. 23–35 Mortgages Part IV Ch. 36–40 Insurance Part V Ch. 41–48A Zoning, etc. Part VI Ch. 49–56 Taxation Part VII Ch. 57–63 Litigation Part VIII Ch. 64–67 L/T Part IX Ch. 68–72 Condos, etc. Index

gtb-parealestate22-all.indb 863

Part II Ch. 15–22 Deeds

863

Part I Ch. 1–14 Brokers

§ 7327.  Assessments forming sole basis of improvement bonds not a ­ ffected The provisions of this act shall not apply to or in any manner affect any assessments which are the sole basis of improvement bonds issued by any political subdivision and which are the security for the payment thereof, or to any assessments which have heretofore been assigned by any political subdivision to any contractor in payment of the amount due him under terms of the contract for the improvement for which the assessment was levied. § 7328.  Abatement of certain charges on payment of delinquent claims All unpaid interest charges and penalties added to any and all delinquent municipal claims imposed or assessed on any parcel or parcels of real estate in the year one thousand nine hundred and thirty-six, and all previous year, filed by any city, boroughs, incorporated towns or townships, to recover for the grading, guttering, macadamizing or otherwise improving the cartways of any public highway, for grading, curbing, recurbing, paving, repaving, constructing or repairing the footways thereof, for laying water pipes, gas pipes, culverts, sewers, branch sewers, or sewer connection therein, for assessments for benefits in the opening, widening or vacation thereof, or in the changing of water-courses, or the construction of sewers through private lands, or in the acquisition of sewers and drains constructed and owned by individuals or corporations, and of rights in and to use the same, may be abated by such city, boroughs, incorporated towns or townships, upon the payment of the entire face amount of such delinquent claims imposed or assessed on any parcel or parcels of real estate and the costs of filing or of any proceedings thereon on or before December thirty-first, one thousand nine hundred and thirty-nine. § 7329.  Claims to which abatement privilege extends This act shall be construed to apply to all such claims, whether or not liens for such claims have been filed in the office of the prothonotary of the county or proceedings for the collection of such claims have been instituted in any court in said county, or where real property has been sold to a county, city, borough, town, township, school district or poor district at a judicial sale for the nonpayment of such claim and the period of redemption has not expired; but this act shall not be construed to apply to cases where real property has been sold, other than to a county, city, borough, town, township, school district or poor district at any such sale, and where the period of redemption has not expired, and the person liable for the payment of such claim shall be liable for the payment of all costs incurred in such proceedings except the solicitor’s fees. § 7330.  Persons within benefit of act The benefits of this act shall extend to and accrue to any successful bidder or purchaser at sheriff’s or other judicial sale, grantee, transferee, mortgagee, or other party in interest in the parcel or parcels of real estate against which the above-mentioned claims have been imposed or assessed and levied. § 7331.  Individual properties may be cleared; statement of claims owed Any taxpayer shall have the right to pay the delinquent claims imposed or assessed and levied against any parcel or parcels of real estate without being required to pay the delinquent claims imposed or assessed and levied against any other parcel or parcels of real estate in the same ward, district or other political subdivision. Upon application, either in person or in writing, by any person liable for the payment of any such delinquent claims, the authorities imposing or assessing and levying such claims, or the person or persons charged with the collection of such delinquent claims, or the person or persons in whose custody the records of such delinquent claims are kept, shall furnish to the person liable for the payment of such claims a statement of the delinquent claims owed by him to such political subdivision showing the face amount, the interest charges, penalties, expenses

Table of Contents

PART VI

12/22/21 10:45 AM

§ 7332

MUNICIPAL CLAIMS AND TAX LIENS

and fees and costs or other charges in detail against such real property, as shown by the records in his custody. § 7332.  Adjournment of sales for nonpayment of taxes In order to enable the taxpayer to receive the full benefits of this act, no real property shall be sold for nonpayment of such municipal claims before January first, one thousand nine hundred and forty, and any such sale shall be adjourned or readjourned as often as may be necessary for this purpose. If any sale is adjourned or readjourned after advertisement, no additional advertisement or notice shall be necessary for the adjourned or readjourned sale. No such adjournment or readjournment, failure to advertise or hold any such sale shall invalidate the lien of any municipal claim due and unpaid, but the lien of all such claims shall be fully preserved until February first, one thousand nine hundred and forty, in order to give the city, boroughs, incorporated towns or townships authorities an opportunity to revive any such liens when payment is not made under the provisions of this act: Provided, however, That in every case where a person avails himself of the privileges or benefits of this act, the period during which payment of the said delinquent claim is postponed or continued under this act shall not be included in computing and determining whether or not any right of the authority which imposed or assessed such claim has been barred or lost by reason of the provisions of any statute or statutes, now existing or hereafter enacted limiting the right of the said authority to file, preserve or maintain the lien of the said claim. § 7333.   Assessments forming sole basis of improvement bonds not affected The provisions of this act shall not apply to or in any manner affect any assessments which are the sole basis of improvement bonds issued by any political subdivision and which are the security for the payment thereof, or to any assessments which have heretofore been assigned by any political subdivision to any contractor in payment of the amount due him under terms of the contract for the improvement for which the assessment was levied. § 7334.  Abatement of debt, interest and penalties in certain cases Whenever after due investigation, it has been determined by the corporate authorities of any county, city, borough, incorporated town, township, school district or institution district, that the fair market value of any property against which such political subdivision has theretofore entered a lien for municipal improvements or for the abatement of nuisances, or against which such political subdivision has secured judgment by revival of a lien theretofore entered, is insufficient, in the judgment of the corporate authorities of such political subdivision, to realize the amount thereof at a sheriff’s sale of the same, such portions of the interest, penalties, and total debt of said claim, as in the judgment of said corporate authorities may be uncollectible from said property, may be abated by the political subdivision in behalf of which the claim was filed: Provided, however, That no such abatement of any portion of the debt, interest or penalties shall be made except in cases where immediate payment of the reduced amount with costs is made in cash to such political subdivision: And provided further, That no such abatement shall be made unless the same is authorized by a resolution passed by a two-thirds vote of the corporate authorities of the county, city, borough, incorporated town, township, school district or institution district so abating the same. § 7335.  Application of act The provisions of this act shall not apply to or in any manner affect any assessments which are the sole basis of improvement bonds issued by any political subdivision, and which are the security for the payment thereof, or to any assessments which have heretofore been assigned by any political subdivision to any contractor in payment of the amount due him under the terms of the contract for the improvement for which the assessment was levied.

864

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12/22/21 10:45 AM

REAL ESTATE TAXATION

Ch. 52

§ 7391.  Delayed filing; amendment of claims, etc.

Part IV Ch. 36–40 Insurance Part V Ch. 41–48A Zoning, etc. Part VI Ch. 49–56 Taxation Part VII Ch. 57–63 Litigation Part VIII Ch. 64–67 L/T Part IX Ch. 68–72 Condos, etc. Index

gtb-parealestate22-all.indb 865

Part III Ch. 23–35 Mortgages

865

Part II Ch. 15–22 Deeds

Whenever any county, city, borough, incorporated town, township, school district, poor district or county institution district has heretofore failed to file in the office of the prothonotary of the county, any tax claim or municipal claim assessed against any property within the time limit required by law for such filing, whereby the lien of such tax or municipal claim is lost; or has heretofore filed any tax claim or municipal claim assessed against any property and in such claim has described the property against which the claim was assessed only by the name of the owner and the distance from a given point; or has heretofore filed in the office of the prothonotary of the proper county any tax or municipal claim and the county, city, borough, incorporated town, township, school district, poor district or county institution district has not, within the period of five years after the date on which any such claim was filed, such out a writ of scire facias to reduce the same to judgment or has not done so in time, or, in the case of a tax or municipal claim, has not, within said period of five years, filed a suggestion of nonpayment and an averment of default; or whenever any writ of scire facias has been issued to reduce any such claim to judgment and by reason of defense or any other court proceedings or by reason of failure to file a praecipe on time judgment has not been entered within the period of five years after the date on which such writ was issued; or whenever any such tax or municipal claim has been reduced to judgment and the county, city, borough, incorporated town, township, school district, poor district or county institution district has not, within the period of five years after the date on which such judgment was entered or within five years after the date on which such judgment was last revived, filed a suggestion of nonpayment and an averment of default or sued out a writ of scire facias to revive the same; then, in any such case any such county, city, borough, incorporated town, township, school district, poor district or county institution district may, within six months after the effective date of this act, file such tax or municipal claim, or amend such claim so as to properly describe the property against which the claim is assessed, or issue its praecipe for a writ of scire facias on any such tax or municipal claim and proceed to judgment in the manner provided by law to obtain judgments upon tax or municipal claims, or, in case a writ of scire facias has been issued but the same has not been reduced to judgment within five years from the date of issuance, issue its praecipe for an alias writ of scire facias on any such tax or municipal claim and proceed to judgment in the manner provided by law to obtain judgments upon tax on municipal claims, or, in the case of a tax or municipal claim where no judgment has been entered, file a suggestion of nonpayment and an averment of default, or, in case judgment has been entered on a tax or municipal claim, either file a suggestion of nonpayment and an averment of default or issue its praecipe for a writ of scire facias on any such judgment and proceed to judgment in the manner provided by law to obtain judgments of revival; and such claim or judgment so entered or revived shall be a valid claim or judgment and be a lien upon the real estate upon which it was a lien at the time the claim was filed or the judgment was entered and said claim or judgment was entered, and said claim or judgment may be revived or further revived and collected as other claims or judgment upon tax or municipal claims are revived and collected: Provided, That the lien of any such claim or judgment shall not reattach against any real estate transferred to any purchaser before such claim is filed or during the time when the lien of any such tax or municipal claim or judgment was lost, nor shall the lien of any such claim or judgment impair or affect the priority of the lien of any mortgage or other lien which gained priority because of the failure of the county, city, borough, incorporated town, township, school district, poor district or county institution district to file such claim, or to properly describe the property against which the claim was assessed, or to sue out the writ of scire facias or file a suggestion of nonpayment and an

Part I Ch. 1–14 Brokers

§§ 7361 to 7365.  Repealed. 1978, April 28, P.L. 202, No. 53, § 2(a)[1026], effective June 27, 1980

Table of Contents

PART VI

12/22/21 10:45 AM

§ 7392

MUNICIPAL CLAIMS AND TAX LIENS

averment of default within the five year period, or was entered of record during the time the lien of such tax or municipal claim or judgment was lost; nor shall any such lien so revived impair or affect the priority of the lien of any mortgage or other lien which was entered prior to the tax or municipal claim or which gained priority during the time such lien was not revived or was not effective. § 7392.  Loss of lien or claim; proceedings to revive authorized Whenever any city, borough, incorporated town, township or school district has heretofore filed, in the office of the prothonotary of the proper county, any tax or municipal claim, and the city, borough, incorporated town or township, or school district has not, within the period of five years after the date on which any such claim was filed, sued out a writ of scire facias to reduce the same to judgment; or in the case of a tax or municipal claim has not, within said period of five years filed a suggestion of nonpayment and an averment of default, or whenever any writ of scire facias has been issued to reduce any such claim to judgment, and by reason of defense or any other court proceedings, judgment has not been entered within the period of five years after the date on which such writ was issued; or whenever any such tax or municipal claim has been reduced to judgment and the city, borough, incorporated town, township or school district has not, within the period of five years after the date on which such judgment was entered; or within five years after the date on which such judgment was last revived, filed a suggestion of nonpayment and an averment of default, or sued out a writ of scire facias to revive the same, then in any such case, any such city, borough, incorporated town, township or school district may, within six months after the passage and approval of this act, issue its praecipe for a writ of scire facias on any such tax or municipal claim and proceed to judgment in the manner provided by law to obtain judgments upon tax, or municipal claims; or in case a writ of scire facias has been issued, but the same has not been reduced to judgment within five years from the date of issuance, issue its praecipe for an alias writ of scire facias on any such tax or municipal claim and proceed to judgment in the manner provided by law to obtain judgments upon tax, or municipal claims; or in the case of a tax or municipal claim, where no judgment has been entered, file a suggestion of nonpayment and an averment of default; or in case judgment has been entered on a tax or municipal claim, either file a suggestion of nonpayment and an averment of default or issue its praecipe for a writ of scire facias on any such judgment and proceed to judgment in the manner provided by law to obtain judgments of revival, and such claim or judgment so entered or revived shall be a valid claim or judgment and be a lien upon the real estate upon which it was a lien at the time the claim was filed or the judgment was entered, and said claim or judgment may be revived, or further revived and collected as other claims or judgments upon tax or municipal claims are revived and collected: Provided, however, That the lien of any such claim or judgment shall not reattach against any real estate transferred to any purchaser during the time when the lien of any such tax, or municipal claim or judgment was lost, nor shall the lien of any such claim or judgment impair or affect the priority of the lien of any mortgage or other lien which gained priority because of the failure of the city, borough, incorporated town, township or school district to sue out the writ of scire facias, or file a suggestion of nonpayment and an averment of default within the five year period, or was entered of record during the time the lien of such tax or municipal claim or judgment was lost. § 7393.   Unfiled municipal claims ratified if filed within six months; amicable writs of scire facias to revive claims validated Whenever any city, borough, incorporated town, or township has heretofore failed to file in the office of the prothonotary of the county any municipal claims assessed on any property within six months after the completion of the improvement, as required by law, whereby the lien of such claims was wholly lost, such

866

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12/22/21 10:45 AM

REAL ESTATE TAXATION

Ch. 52

Part VII Ch. 57–63 Litigation Part VIII Ch. 64–67 L/T Part IX Ch. 68–72 Condos, etc. Index

gtb-parealestate22-all.indb 867

Part VI Ch. 49–56 Taxation

867

Part V Ch. 41–48A Zoning, etc.

Whenever any borough or township of the first class has heretofore filed in the office of the prothonotary of the proper county any tax lien or tax liens, and the borough or township of the first class has not, within the period of five years after the date on which any such tax lien was filed, sued out a writ of scire facias to reduce the same to judgment, then, in any such case, any such borough or township of the first class may, within six months after the passage and approval of this act, issue its praecipe for a writ of scire facias on any such tax lien and proceed to judgment in the manner provided by law to obtain judgments upon tax liens; and such judgment shall be a valid judgment and be a lien upon the real estate upon which it was a lien at the time it was filed, and said judgment may be revived and collected as other judgments upon tax liens are revived and collected: Provided, however, That the lien of any such judgment shall not reattach against any real estate transferred to any purchaser during the time when the lien of any such tax lien was lost, nor shall the lien of any such judgment impair or affect the priority of the lien of any mortgage or other lien which gained priority because of the failure of the borough or township of the first class to sue

Part IV Ch. 36–40 Insurance

§ 7395.  Boroughs and townships of first class authorized to revive certain tax liens

Part III Ch. 23–35 Mortgages

Whenever any county has heretofore filed, in the office of the prothonotary of the proper county, any tax lien or tax liens, and the said county has not, within the period of five years after the date on which any such tax lien was filed or last revived, filed a suggestion of nonpayment and an averment of default to revive the same, then, in any such case, any such county may, within six months after the final enactment of this act, file a suggestion of nonpayment and an averment of default on any such tax lien for the revival thereof; and such suggestion of nonpayment, and averment of default so entered, shall constitute a valid revival of such lien, and be a lien upon the real estate upon which it was a lien at the time the lien was first filed, and said lien may be revived or further revived and collected as other tax liens are revived and collected: Provided, however, That any such lien shall not reattach against any real estate transferred to any purchaser during the time when the lien of any such tax lien was not revived, nor shall any such lien so revived impair or affect the priority of the lien of any mortgage or other lien which gained priority during the time such lien was not revived.

Part II Ch. 15–22 Deeds

§ 7394.  Counties authorized to revive certain tax liens

Part I Ch. 1–14 Brokers

claims shall be and the same are hereby ratified, confirmed, declared valid and to be a lien on such property, together with all charges, expenses and fees added thereto for failure to pay promptly, if such claims shall be duly entered and filed in the office of the prothonotary, in the manner provided by law for the filing of municipal claims, at any time within six months after the effective date of this act; or whenever any city, borough, incorporated town, or township has heretofore filed in the office of the prothonotary of the proper county an amicable writ of scire facias to revive any municipal claim and such writ of scire facias shall not have been filed within the period of five years from the time the original claim was filed, or within five years after any prior revival of such claim, then, in any such case, such action in filing such amicable writ of scire facias is hereby ratified, confirmed, and made valid, notwithstanding that the same was not filed within the time required by law and that the lien of such municipal claim was lost, and the lien of any such municipal claim shall be deemed revived from the date such amicable writ of scire facias was filed in the office of the prothonotary, and such lien may be proceeded upon, further revived, and collected as provided by law: Provided, however, That the lien of any such municipal claim shall not reattach against any property transferred to any purchaser during the time the lien of the same was lost: And provided further, That where any other lien shall have attached to any such property during the period when the lien of the municipal claim was lost, such other lien shall have priority over such municipal claim.

Table of Contents

PART VI

12/22/21 10:45 AM

§ 7396

MUNICIPAL CLAIMS AND TAX LIENS

out the writ of scire facias within the five-year period or was entered of record during the time the lien of such tax lien was lost. This act shall be in effect immediately upon its passage, and approval by the Governor. § 7396.  Ratification of amicable writ of scire facias filed by borough or township of first class to revive municipal claim Whenever any borough or township of the first class has heretofore filed in the office of the prothonotary of the proper county an amicable writ of scire facias to revive any municipal claim, and such writ of scire facias shall not have been filed within the period of five years from the time the original claim was filed, or within five years after any prior revival of such claim; then in any such case such action in filing such amicable writ of scire facias is hereby ratified, confirmed, and made valid notwithstanding that the same was not filed within the time required by law, and that the lien of such municipal claim was lost; and the lien of any such municipal claim shall be deemed revived from the date such amicable writ of scire facias was filed in the office of the prothonotary; and such lien may be proceeded upon, further revived, and collected as provided by law: Provided, however, That the lien of any such municipal claim shall not reattach against any real estate transferred to any purchaser during the time when the lien of the same was lost: And provided further, That where any mortgage shall have been entered of record against any such real estate during the period when the lien of any such municipal claim was lost, such mortgage shall have priority over such revived municipal claim. § 7397.  Boroughs and townships of first class authorized to revive municipal claims Whenever any borough or township of the first class has heretofore filed in the office of the prothonotary of the proper county any municipal claim or claims, and the borough or township of the first class has not within the period of five years after the date on which any such claim was filed, sued out a writ of scire facias to reduce the same to judgment, then, in any such case, any such borough or township of the first class may within six months after the passage and approval of this act, issue its praecipe for a writ of scire facias on any such municipal claim and proceed to judgment in the manner provided by law to obtain judgments upon municipal claims, and such judgment shall be a valid judgment and be a lien upon the real estate upon which it was a lien at the time it was filed; and said judgment may be revived and collected as other judgments upon municipal claims are revived and collected: Provided, however, That the lien of any such judgment shall not reattach against any real estate transferred to any purchaser during the time when the lien of any such municipal claim was lost; not shall the lien of any such judgment impair or affect the priority of the lien of any mortgage or other lien, which gained priority because of the failure of the borough or township of the first class to sue out the writ of scire facias within the five year period, or was entered of record during the time the lien of such municipal claim was lost. This act shall be in effect immediately upon its passage, and approval by the Governor. § 7398.  Boroughs, townships and cities of third class authorized to revive municipal claims Whenever any city of the third class, borough, or township has heretofore filed, in the office of the prothonotary of the proper county, any municipal claim or claims, and the city, borough, or township has not, within the period of five years after the date on which any such claim was filed, sued out a writ of scire facias to reduce the same to judgment, or whenever any such municipal claim or claims have been reduced to judgment and the borough or township has not, within the period of five years after the date on which such judgment or judg-

868

gtb-parealestate22-all.indb 868

12/22/21 10:45 AM

REAL ESTATE TAXATION

Ch. 52

Part VI Ch. 49–56 Taxation Part VII Ch. 57–63 Litigation Part VIII Ch. 64–67 L/T Part IX Ch. 68–72 Condos, etc. Index

gtb-parealestate22-all.indb 869

Part V Ch. 41–48A Zoning, etc.

869

Part IV Ch. 36–40 Insurance

§ 7400.  Actions to collect tax validated The collection heretofore of any tax, and all proceedings by distress or otherwise for the collection of any tax heretofore commenced, are hereby ratified, confirmed and made valid, notwithstanding the fact that, at the time of such collection or the commencement of such proceedings, the period of limitation of the warrants of the duplicates of the tax collector had expired, or the power and authority of the tax collector had expired by virtue of the expiration of his term of office, and such duplicates and warrants and the power and authority of the tax collector

Part III Ch. 23–35 Mortgages

In all cases in which the period of limitation of the warrants of the duplicates of the county, poor, institution district, road, city, township, ward, school, and borough tax collectors have heretofore expired or will expire during the years one thousand nine hundred thirty-nine and one thousand nine hundred and forty, and in cases where the power and authority of the said tax collectors have heretofore expired or shall expire, during the years one thousand nine hundred thirty-nine and one thousand nine hundred and forty, by virtue of the expiration of their terms of office, and said tax collector or collectors have or shall become personally liable for the taxes contained in said duplicates and warrants, or any part thereof, by reason of the personal payment or otherwise by said tax collector or collectors of the said taxes, or any part thereof, without having recovered or collected the same from the person or persons against whom they have been levied and assessed, or without having recovered or collected the same from the person or persons owning the property against which the said taxes have been assessed and levied, the said duplicates and warrants and the power and authority of the said tax collectors, in all such cases, are hereby revived and extended for a period of two years after the passage of this act, and the said tax collector or collectors, their executors and administrators, if they are deceased, or either surety or sureties, are hereby empowered to proceed and collect said taxes from all such persons who have not paid them, residing in said district within which said taxes are assessed, as well as from all persons who may remove or have removed from said city, ward, township or townships, or boroughs, and have neglected to pay the taxes aforesaid assessed, with the like effect as if said warrant or warrants had not expired or the term of office of said tax collector had not expired.

Part II Ch. 15–22 Deeds

§ 7399.  Revival of certain warrants

Part I Ch. 1–14 Brokers

ments were entered or within five years after the date on which such judgment or judgments were last revived, filed a suggestion of nonpayment and an averment of default, or sued out a writ of scire facias to revive the same, then, in any such case, any such city, borough, or township may, within six months after the passage and approval of this act, issue its praecipe for a writ of scire facias on any such municipal claim and proceed to judgment in the manner provided by law to obtain judgments upon municipal claims, or, in case judgment has been entered, either file a suggestion of nonpayment and an averment of default or issue its praecipe for a writ of scire facias on any such judgment and proceed to judgment in the manner provided by law to obtain judgments of revival, and such judgment, so entered or revived, shall be a valid judgment and be a lien upon the real estate upon which it was a lien at the time the claim was filed or the judgment was entered, and said judgment may be revived or further revived and collected as other judgments upon municipal claims are revived and collected: Provided however, That, the lien of any such judgment shall not reattach against any real estate transferred to any purchaser during the time when the lien of any such municipal claim or judgment was lost; nor shall the lien of any such judgment impair or affect the priority of the lien of any mortgage or other lien, which gained priority because of the failure of the city or borough or township to sue out the writ of scire facias or file a suggestion of nonpayment and an averment of default within the five year period, or was entered of record during the time the lien of such municipal claim or judgment was lost.

Table of Contents

PART VI

12/22/21 10:45 AM

§ 7401

MUNICIPAL CLAIMS AND TAX LIENS

had not, at such time, been revived and extended, with like effect as though the same had in fact been so revived and extended. § 7401.  Statute of limitations inapplicable The provisions of this act shall not apply to warrants issued prior to the year one thousand eight hundred and ninety-four, and nothing in this act shall release any bondsman or security. This act shall not apply to cities having special laws on this subject. No collector or the sureties thereof, who take advantage of this act, shall be permitted to plead the statute of limitations in any action brought to recover the amount of any duplicate or warrant so extended or renewed. No statute of limitations shall prevent the collection of any tax for which the warrants and powers and authorities of the said tax collectors have been so as aforesaid extended, renewed, and revived. § 7402.  City or school district of first class Whenever any city or school district of the first class has heretofore failed or hereafter fails to file in the office of the prothonotary of the proper county, any real estate tax, water rent or sewer rent claim assessed against any property within the time limit required by law for such filing, whereby the lien of such tax, water rent or sewer rent claim is lost; or has heretofore filed or hereafter files any real estate tax claim, water rent or sewer rent claim assessed against any property and any such claim describes the property against which the claim was assessed only by the name of the owner and the distance from a given point; or has heretofore filed or hereafter files in the office of the prothonotary of the proper county any real estate tax, water rent or sewer rent claim and the city or school district has not, within the period of five (5) years after the date on which any such claim was filed, sued out a writ of scire facias to reduce the same to judgment or has not done so in time, or in the case of a real estate tax claim or water rent or sewer rent claim has not, within said period of five (5) years, filed a suggestion of nonpayment and an averment of default; or whenever any writ of scire facias has been issued to reduce any such claim to judgment and by reason of defense or any other court proceedings or by reason of failure to file a praecipe on time the judgment has not been entered within the period of five (5) years after the date on which such writ was issued; or whenever any such real estate tax, water rent or sewer rent claim has been reduced to judgment and the city or school district has not, within the period of five (5) years after the date on which such judgment was entered or within five (5) years after the date on which such judgment was last revived, filed a suggestion or nonpayment and averment of default or sued out a writ of scire facias to revive the same; then, in any such case, the city or school district may, within six (6) years after the effective date of this act, file or amend such real estate tax, water rent or sewer rent claim so as to properly describe the property against which the claim is assessed or issue its praecipe for a writ of scire facias on any such real estate tax, water rent or sewer rent claim and proceed to judgment in the manner provided by law to obtain judgments upon real estate tax, water rent or sewer rent claims or in case a writ of scire facias has been issued but the same has not been reduced to judgment within five (5) years from the date of issuance issue its praecipe for an alias writ of scire facias on any such real estate tax, water rent or sewer rent claim and proceed to judgment in the manner provided by law to obtain judgments thereon or in the case of a real estate tax, water rent or sewer rent claim where no judgment has been entered file a suggestion of nonpayment and an averment of default or in case judgment has been entered on a real estate tax or water rent or sewer rent claim, either file a suggestion of nonpayment and an averment of default or issue its praecipe for a writ of scire facias on any such judgment and proceed to judgment in the manner provided by law to obtain judgments of revival and such claims or judgment so entered or revived shall be a valid claim or judgment and be a lien upon the real estate upon which it was a lien at the time the claim was filed or the judgment was entered and said real estate tax, water rent or sewer rent claim or any judgments thereon may be revived or further revived and collected

870

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12/22/21 10:45 AM

REAL ESTATE TAXATION

Ch. 52

Part V Ch. 41–48A Zoning, etc. Part VI Ch. 49–56 Taxation Part VII Ch. 57–63 Litigation Part VIII Ch. 64–67 L/T Part IX Ch. 68–72 Condos, etc. Index

gtb-parealestate22-all.indb 871

Part IV Ch. 36–40 Insurance

871

Part III Ch. 23–35 Mortgages

§ 7432.  Failure to file claim; inadequate description of property; failure to sue out scire facias, file averment of default, or enter or revive judgment Whenever, heretofore or hereafter, any county, city, borough, incorporated town, township, school district, poor district, county institution district or municipality authority has failed to file in the office of the prothonotary of the county, any tax claim or municipal claim assessed against any property within the time limit required by law for such filing, whereby the lien of such tax or municipal claim is lost; or has filed any tax claim or municipal claim assessed against any property and in such claim has described the property against which the claim was assessed only by the name of the owner and the distance from a given point; or has filed in the office of the prothonotary of the proper county any tax or municipal claim and the county, city, borough, incorporated town, township, school district, poor district, county institution district or municipality authority has not, within the period of five years after the date on which any such claim was filed, sued out a writ of scire facias to reduce the same to judgment or has not

Part II Ch. 15–22 Deeds

§ 7431.  Errors in names or descriptions of property; amendment; proceedings Whenever, heretofore or hereafter, any tax lien or municipal claim is or shall be defective, by reason of error in the name or names of the registered owner or owners thereof or by reason of the fact that the description of the property and the street address set forth in the claim as filed do not conform with each other, the claimant entering or filing such tax lien or municipal claim shall have the right, at any stage in the proceedings, to file an amended tax or municipal claim so that the correct name or names of the registered owner or owners and the correct description of the property shall appear therein; and, upon the filing of the amended tax or municipal claim, such lien or claim is hereby declared to be valid to all intents and purposes, and such liens or claims may be enforced as in the case of liens or claims entered or filed in the name or names of the proper registered owner or owners and with a correct description of the property: Provided, however, That no further proceedings shall be had upon such tax lien or municipal claim, whether or not judgment has theretofore been entered upon any writ of scire facias theretofore issued, until after a writ of scire facias has been issued upon the lien or claim as amended and has been served in the manner provided for the service of such writs in the acts of Assembly relating to tax liens and municipal claims, and has been duly reduced to judgment: Provided further, however, That this act shall not apply to any property where change of ownership has occurred previous to the filing of the amended tax or municipal lien, and such amended tax or lien shall not take priority over any mortgage or judgment recorded or entered subsequent to the filing of the original tax or municipal lien but previous to the filing of the amended tax or municipal lien.

Part I Ch. 1–14 Brokers

as other claims or judgments upon real estate tax, water rent or sewer rent claims are revived and collected: Provided further, That the lien of any such claim or judgment shall not reattach against any real estate transferred to any purchaser before such claim is filed or amended during the time when the lien of any such tax or municipal claim or judgment was lost, nor shall the lien of any such claim or judgment impair or affect the priority of the lien of any mortgage or other lien which gained priority because of the failure of the city or the school district to file such claim, or to properly describe the property against which the claim was assessed or to sue out the writ of scire facias or file a suggestion of nonpayment and an averment of default within the prescribed period, or was entered of record during the time the lien of such tax or municipal claim or judgment was lost; nor shall any such lien so revived impair or affect the priority of the lien of any mortgage or other lien which was entered prior to the real estate tax or water rent or sewer rent claim or which gained priority during the time such lien was not revived or was not effective.

Table of Contents

PART VI

12/22/21 10:45 AM

§ 7433

MUNICIPAL CLAIMS AND TAX LIENS

done so in time, or, in the case of a tax or municipal claim, has not, within said period of five years, filed a suggestion of nonpayment and an averment of default; or whenever heretofore or hereafter any writ of scire facias has been issued to reduce any such claim to judgment and by reason of defense or any other court proceedings or by reason of failure to file a praecipe on time judgment has not been entered within the period of five years after the date on which such writ was issued; or whenever, heretofore or hereafter, any such tax or municipal claim has been reduced to judgment and the county, city, borough, incorporated town, township, school district, poor district, county institution district or municipality authority has not, within the period of five years after the date on which such judgment was entered or within five years after the date on which such judgment was last revived, filed a suggestion of nonpayment and an averment of default or sued out a writ of scire facias to revive the same; then, in any such case heretofore or hereafter occurring, any such county, city, borough, incorporated town, township, school district, poor district, county institution district or municipality authority may, at any time after the effective date of this act, file such tax or municipal claim, or amend such claim so as to properly describe the property against which the claim is assessed, or issue its praecipe for a writ of scire facias on any such tax or municipal claim and proceed to judgment in the manner provided by law to obtain judgments upon tax or municipal claims, or, in case a writ of scire facias has been issued but the same has not been reduced to judgment within five years from the date of issuance, issue its praecipe for an alias writ of scire facias on any such tax or municipal claim and proceed to judgment in the manner provided by law to obtain judgments upon tax on municipal claims, or, in the case of a tax or municipal claim where no judgment has been entered, file a suggestion of nonpayment and an averment of default, or, in case judgment has been entered on a tax or municipal claim, either file a suggestion of nonpayment and an averment of default or issue its praecipe for a writ of scire facias on any such judgment and proceed to judgment in the manner provided by law to obtain judgments of revival; and such claim or judgment so entered or revived shall be a valid claim or judgment and be a lien upon the real estate upon which it was a lien at the time the claim was filed or the judgment was entered and said claim or judgment was entered, and said claim or judgment may be revived or further revived and collected as other claims or judgments upon tax or municipal claims are revived and collected: Provided, That the lien of any such claim or judgment shall not reattach against any real estate transferred to any purchaser before such claim is filed or during the time when the lien of any such tax or municipal claim or judgment was lost, nor shall the lien of any such claim or judgment impair or affect the priority of the lien of any mortgage or other lien which gained priority because of the failure of the county, city, borough, incorporated town, township, school district, poor district, county institution district or municipality authority to file such claim, or to properly describe the property against which the claim was assessed, or to sue out the writ of scire facias or file a suggestion of nonpayment and an averment of default within the five year period, or was entered of record during the time the lien of such tax or municipal claim or judgment was lost; nor shall any such lien so revived impair or affect the priority of the lien of any mortgage or other lien which was entered prior to the tax or municipal claim or which gained priority during the time such lien was not revived or was not effective. § 7433.  Errors in names or descriptions of property; filing of amended tax lien Whenever heretofore or hereafter any tax lien is or shall be defective, by reason of error in the name or names of the registered owner or owners thereof, or by reason of the fact that the description of the property, the lot number or numbers, the name of the development or plan, or the street number set forth in the tax lien, as filed, do not conform with each other, the taxing authority or any one

872

gtb-parealestate22-all.indb 872

12/22/21 10:45 AM

REAL ESTATE TAXATION

Ch. 52

Part I Ch. 1–14 Brokers Part II Ch. 15–22 Deeds Part III Ch. 23–35 Mortgages Part IV Ch. 36–40 Insurance Part V Ch. 41–48A Zoning, etc. Part VI Ch. 49–56 Taxation Part VII Ch. 57–63 Litigation Part VIII Ch. 64–67 L/T Part IX Ch. 68–72 Condos, etc.

authorized by law to enter such tax lien, shall have the right to file an amended tax lien so that the correct name or names of the registered owner or owners and the correct description of the property as to lot numbers, development or plan or street number shall appear therein, and upon the filing of the amended tax lien, such lien is hereby declared to be valid to all intents and purposes and such liens may be enforced as in the case of liens entered or filed in the name or names of the proper registered owner or owners and with a correct description of the property: Provided, however, That this act shall not apply to any property where change of ownership has occurred previous to the filing of the amended tax lien and such amended tax lien shall not take priority over any mortgage or judgment recorded or entered subsequent to the filing of the original tax lien, but previous to the filing of the amended tax lien. § 7434.  Variance in names; validation of sale Whenever heretofore any purchaser has purchased real property at a judicial sale had on a judgment obtained for unpaid taxes or municipal assessments in accordance with the provisions of the act, approved the sixteenth day of May, one thousand nine hundred and twenty-three (Pamphlet Laws, two hundred seven),32 entitled, “An act providing when, how, upon what property, and to what extent, liens shall be allowed for taxes and for municipal improvements, for the removal of nuisances, and for water rents or rates, sewer rates, and lighting rates; for the procedure upon claims filed therefor; the methods for preserving such liens and enforcing payment of such claims; the effect of judicial sales of the properties liened; the distribution of the proceeds of such sales, and the redemption of the property therefrom; for the lien and collection of certain taxes heretofore assessed, and of claims for municipal improvements made and nuisances removed, within six months before the passage of this act; and for the procedure on tax and municipal claims filed under other and prior acts of Assembly”, and its amendments thereto, and the name or names of the defendant or defendants in the writ of scire facias on the lien and in the judgment upon which execution was issued is different from that in which the tax or municipal lien is assessed, such sale is hereby ratified, confirmed, validated and made binding in the same manner as if all the provisions of said act had been strictly complied with: Provided, however, That the property is correctly described in the writ of execution upon which said sale was had, that the purchaser thereafter has presented his petition to the proper court setting forth said sale and delivery of a sheriff’s deed and the court has made an order adjudicating the title of said purchaser valid and indefeasible against all persons. § 7435.  Tax liens in certain counties where claim not signed by controller, validated Whenever, heretofore, any tax lien has been entered in the office of the prothonotary of any county having a controller, and the claim for such tax whereupon the lien was filed was not signed by, and did not have stamped thereon a facsimile signature of the controller of such county as required by section ten of the act, approved the sixteenth day of May, one thousand nine hundred twentythree (Pamphlet Laws, two hundred seven), entitled “An act providing when, how, upon what property, and to what extent, liens shall be allowed for taxes and for municipal improvements, for the removal of nuisances, and for water rents or rates, sewer rates, and lighting rates; for the procedure upon claims filed therefor; the methods for preserving such liens and enforcing payment of such claims; the effect of judicial sales of the properties liened; the distribution of the proceeds of such sales, and the redemption of the property therefrom; for the lien and collection of certain taxes heretofore assessed, and of claims for municipal improvements made and nuisances removed, within six months before

Table of Contents

PART VI

32. 53 P.S. § 7101 et seq.

gtb-parealestate22-all.indb 873

Index

873

12/22/21 10:45 AM

§ 7436

MUNICIPAL CLAIMS AND TAX LIENS

the passage of this act; and for the procedure on tax and municipal claims filed under other and prior acts of Assembly,” as amended by the act, approved the second day of July, one thousand nine hundred thirty-seven (Pamphlet Laws, two thousand eight hundred eight)33, such lien shall not be invalidated, discharged or set aside by reason of such defect if, in all other respects, such claim was filed and lien entered thereon as provided by law; and all such tax liens are hereby ratified, confirmed and validated. § 7436.  Judicial sale for less than upset price; validation of sale Whenever heretofore any purchaser has purchased real estate at a judicial sale had on a judgment obtained for unpaid municipal assessments or taxes, and said purchaser has paid to the sheriff the amount of his bid, which bid was less than the upset price required to pay all municipal assessments and taxes assessed and levied against the premises sold at the judicial sale, and no petition was presented to the court and no rule granted to show cause why the premises sold should not be sold free and clear of all claims, now by this act such sale is made valid and binding in the same manner as if all of the provisions of said act of Assembly regulating said sale had been strictly followed and a decree of court made directing that the premises be sold for the amount of the bid and free of all claims, taxes and assessments. § 7437.  Intervening rights of third persons protected; litigated cases The provisions of this act shall not apply in any instance where the rights of third persons have intervened or the validity of any such sale or the title to the premises purchased thereat has been made the subject of litigation in any court of the Commonwealth prior to the approval of this act. § 7438.  Validation of sales; fieri facias instead of levari facias All sheriffs’ sales of real estate for the non-payment of taxes, sewer liens, pavement liens and other municipal liens, heretofore held under the provisions of any act of Assembly, where the liens for such taxes and other municipal claims were filed and where the taxes assessed or other municipal claims were actually due and unpaid, are hereby made valid, notwithstanding the fact that prior to such sales executions upon any judgments recovered upon any such taxes and other municipal claims have been by writ of fieri facias instead of by writ of levari facias, and the titles to all such real estate in the hands of the purchasers thereof, their heirs, grantees and assigns are hereby declared to be good and valid to all intents and purposes. The provisions of this act shall not apply in any instance where the validity of any such sale or the title to the premises purchased thereat has been made the subject of litigation in any court of the Commonwealth prior to the approval of this act. § 7439.   Treasurers’ sales for delinquent taxes without adjournment, validated Whenever, heretofore, any land has been sold by the county treasurer of any county for the purpose of securing the payment of delinquent taxes which were assessed and levied against such land, and such sale was held contrary to the provisions of any act of Assembly requiring the adjournment or readjournment of such sale to a later date, such sale shall not be invalidated by reason of the failure of the county treasurer to adjourn or readjourn such sale as required by said act of Assembly, if in all other respects the laws relating to the holding of such sale were fully complied with, and all such treasurers sales are hereby ratified, confirmed and validated and the title to any such land purchased by any person or by the county commissioners of any county at such treasurers sale and 33. 53 P.S. § 7144.

874

gtb-parealestate22-all.indb 874

12/22/21 10:45 AM

REAL ESTATE TAXATION

Ch. 52

Part IV Ch. 36–40 Insurance Part V Ch. 41–48A Zoning, etc. Part VI Ch. 49–56 Taxation Part VII Ch. 57–63 Litigation Part VIII Ch. 64–67 L/T Part IX Ch. 68–72 Condos, etc. Index

gtb-parealestate22-all.indb 875

Part III Ch. 23–35 Mortgages

875

Part II Ch. 15–22 Deeds

§ 7440.  Validation of municipal improvements, assessments, claims and liens Whenever, heretofore, the council of any city of the third class or of any borough, or the board of commissioners of any township of the first class of this Commonwealth has authorized by ordinance the grading, curbing, guttering, paving or macadamizing with concrete, brick, stone or other suitable material of any public street or thoroughfare, or portion thereof, either cartway, footwalk or gutter; and has caused such improvement to be made; and in such ordinance has authorized the advertising for bids therefor; and the assessment of benefits upon the property benefited thereby; and subsequent thereto pursuant to an ordinance passed, after the passage and approval of the original ordinance providing for the improvement, has authorized the entering into a contract for the said improvement with the Secretary of Highways of the Commonwealth of Pennsylvania and with the general contractor, who was the successful bidder with the Commonwealth for the construction of any portion of such streets or highways, without any advertising for bids on the part of the city, borough or township as provided for in the original ordinance authorizing such improvement; and has subsequent thereto brought proceedings for the appointment of viewers to assess benefits for the said improvements against the property abutting along the line of improvement in accordance with the provisions of the original ordinance authorizing the said improvement; or has by ordinance provided for the assessment against abutting property owners of benefits for such improvement; or whenever heretofore, the council of any city of the third class or of any borough, or the board of commissioners of any township of the first class of this Commonwealth has required by ordinance and caused to be made graded, paved, curbed or macadamized with brick, stone or other suitable material, or otherwise improved any property or public street or thoroughfare, or part thereof, either cartway, footwalk or gutter; or has covered or enclosed any watercourse or waterway in any street or thoroughfare so as to improve or extend and increase the driveway in any street or thoroughfare; or has vacated, confined, paved or altered the channel of any watercourse or waterway; or has caused any sewers whatsoever to be construed within or without any such city, borough or township; or has caused ornamental lights to be erected pursuant to any ordinance; or has heretofore in accordance with existing law assessed a portion of the cost of such sewer as a sewage tax against property abutting along the line of said improvement on the side of said street, alley or highway which is located outside the limits of the said city, borough or township, the owners of such property being given permission by the said city, borough or township to use such sewer, and such property not being then provided with sewer facilities; and has by ordinance provided for the assessment against abutting property owners of benefits for such improvement, but owing to some defect in the petition, action of council or of the board of commissioners, notice of publication, failure to make said improvement in accordance with the strict terms of any ordinance, or any other proceeding or action necessary under existing laws and ordinances to give jurisdiction to such council or board of commissioners; or because of noncompliance with existing laws as to publication of copies of ordinance and posting of handbills prior to or after the final passage of such ordinance; or because of noncompliance with existing laws as to the purchasing of materials and supplies; or the awarding of contracts without advertising; or because the ordinance itself or the official record book containing the same has been lost, mislaid or destroyed; or such ordinance has not been transcribed in the official record book; or because of irregularity or error in the appointment of viewers to assess benefits against property abutting along the line of improvement; or because of the neglect of viewers, appointed to assess damages and benefits caused or accruing as a result thereof, to file their report within the time required by law

Part I Ch. 1–14 Brokers

the deed executed and acknowledge to such purchaser is hereby declared to be as valid as if such sale had been held in full conformity of the law relating thereto.

Table of Contents

PART VI

12/22/21 10:45 AM

§ 7440

MUNICIPAL CLAIMS AND TAX LIENS

for the filing thereof; or because of irregularity or error in the method or procedure taken for the ascertainment of the amount of benefits to such property; or because of any irregularity or error in the ordinances or passage or approval thereof authorizing the execution of the work, the contracting therefor, and the assessing of benefits therefor, or where the right of the board of viewers to assume jurisdiction and to act in assessing the properties benefited thereby is questioned; or because of any irregularity or error in the failure to bring the proceedings for the assessment of benefits for such improvement before the board of viewers within the time provided by law; or the failure to assess the benefits therefor in the manner now provided by law; or because of any irregularity or error in arriving at or determining the benefits assessed against any such property; or because of the failure to give notice as required by law or ordinance; or the time for filing a lien or making claim for such improvement has expired; or the claim has not been filed after notice to do so; or for any other reason the costs of such improvement, or portion thereof, were not or cannot be legally assessed upon the property bounding or abutting on the line of the improvement or on the street or part thereof improved; or owing to some defect in the statement of claim filed to secure the lien, or the failure of the city, borough or township solicitor to file the lien in the court of common pleas, or to sign the name, or to have stamped thereon a facsimile signature of the said solicitor or chief executive of the claimant for the costs of such improvement, or any error made in the name of the owner or owners of the abutting property along the line of the improvement payment thereof cannot be enforced; or if the ordinance of the city, borough or township, authorizing the construction of any improvement, was in fact adopted before such city, borough or township was legally empowered to make such assessments on property within or outside the limits of such city, borough or township, if such improvement was actually constructed, and such assessments against property within or without the limits of such city, borough or township made subsequent to the time when such city, borough or township was legally empowered to levy such assessments as was contemplated by the act or acts of General Assembly under which the improvement was attempted to be made; and statement of claim filed, now by this act such improvement is made valid and binding and also any statement of claim, heretofore filed, if any, to secure the liens therefor is also made valid and binding, and the jurisdiction of any board of viewers hereinbefore mentioned to entertain such proceedings and the assessments made pursuant to such proceedings against property within or without the limits of any such city, borough or township shall be valid and binding, and the council of such city or borough and the commissioners of such township may cause the property, bounding or abutting along the line of the improvement or on the street, or part thereof, upon which the improvement has been made or is now being made, to be assessed in the manner now provided by law or by the board of viewers’ proceedings in the manner and at the rates now provided by law with such a portion of the costs of such improvement as is contemplated by the law under which the improvement was made, or attempted to be made, or is now being made; and all such benefits and all assessments heretofore made or determined are hereby ratified, confirmed, and validated; and any statement of claims heretofore filed, if any, to secure the liens therefor are also hereby ratified, confirmed, and validated. Such assessment or other assessment heretofore made or hereafter made in proceedings now pending within the time limitations specified in this act shall be a lien upon the property assessed, and any lien heretofore filed for benefits assessed or for the cost of such improvement, or any part thereof, although the report of the viewers assessing the same was not filed within the time required by law for the filing thereof, is hereby made valid and binding with the same force and effect as though such report was filed within the time required by law for filing the same. The lien shall date from the completion of the improvement for which the assessment is made whether the work was completed through one or several operations or contracts, or from the date of filing the same, and shall remain a lien until fully paid and satisfied: Provided, That a writ of scire facias is issued to revive the same

876

gtb-parealestate22-all.indb 876

12/22/21 10:45 AM

REAL ESTATE TAXATION

Ch. 52

Part II Ch. 15–22 Deeds Part III Ch. 23–35 Mortgages Part IV Ch. 36–40 Insurance Part V Ch. 41–48A Zoning, etc. Part VI Ch. 49–56 Taxation

§ 7441.  Filing of liens for improvement The council of any city of the third class, or of any borough, or the board of commissioners of any township of the first class of this Commonwealth, entitled to a lien under this act, shall file a lien therefor, if not heretofore filed, in the office of the prothonotary of the county within which the property lies within six (6) months after the completion of the work where the improvement is now in progress, or within twelve (12) months after the confirmation absolute of the report of the viewers assessing the benefits for such improvement whether now or hereafter pending, or within twelve (12) months after the approval of this act where the improvement is now completed if no lien has been heretofore filed for the same, or within twelve (12) months after the passage of any councilmanic ordinance assessing benefits under the provisions of this act where the improvement is already completed, and the same shall be entered upon record as other municipal claims. Such liens shall state the name of the party claimant, which shall be the corporate name of the city, borough or township making the improvement; name of the owner or reputed owner of the property assessed; a reasonable description of the property assessed; the amount or sum claimed to be due which shall include interest on the assessment from the completion of the improvement; for what improvement the claim is made; the date of its completion; the date of the assessment for which the lien is filed. Such lien, when so filed, shall be prima facie evidence of all matters therein set forth and of the right of the city, borough or township to recover the amount therein claimed to be due, together with interest from the date of the lien or completion of the improvement, costs, and an attorney’s commission of five per centum for collecting. § 7442.  Proceeding for collection of claim The claim, when so filed, shall be proceeded upon for collection by writ of scire facias: Provided, That this act shall not apply to any proceeding, suit or lien wherein a final order or judgment of any court of record has already been made or entered.

Part I Ch. 1–14 Brokers

during every period of five (5) years after the lien is filed, as hereafter provided: And provided further, That this act shall not validate any lien against any property which has been conveyed to a bona fide purchaser thereof subsequent to the expiration of the period prescribed by law for the filing of such liens and prior to the date of the filing thereof, or give the lien thus filed priority over any bona fide lien or liens filed, entered or recorded, or which shall have otherwise attached subsequently to the time prescribed by law for the filing of such municipal lien and prior to the time of the filing thereof.

Table of Contents

PART VI

Part VII Ch. 57–63 Litigation

§ 7444.  Municipal improvements, assessments, claims and liens Whenever, heretofore, the council of any city of the third class or of any borough, or the board of commissioners of any township of the first class of this Commonwealth has authorized by ordinance the grading, curbing, guttering, paving or macadamizing with concrete, brick, stone or other suitable material of any public street or thoroughfare, or portion thereof, either cartway, footwalk or gutter; and has caused such improvement to be made; and in such ordinance has authorized the advertising for bids therefor; and the assessment of benefits on the front foot rule or otherwise upon the property benefited thereby; and subsequent thereto pursuant to an ordinance passed, after the passage and approval of the original ordinance providing for the improvement, has authorized the entering into a contract for the said improvement with the Secretary of Highways of the Commonwealth of Pennsylvania and with the general contractor, who was the successful

Part VIII Ch. 64–67 L/T

gtb-parealestate22-all.indb 877

Index

877

Part IX Ch. 68–72 Condos, etc.

§ 7443.  Claims already filed validated All claims heretofore filed for water rents or rates, lighting rates, power rates and sewer rates for service rendered beyond the municipal limits are hereby validated, and procedure thereon shall be the same as though the real estate were within the municipal boundaries.

12/22/21 10:45 AM

§ 7444

MUNICIPAL CLAIMS AND TAX LIENS

bidder with the Commonwealth for the construction of any portion of such streets or highways, without any advertising for bids on the part of the city, borough or township as provided for in the original ordinance authorizing such improvement; and has subsequent thereto brought proceedings for the appointment of viewers to assess benefits for the said improvements against the property abutting along the line of improvement in accordance with the provisions of the original ordinance authorizing the said improvement; or has by ordinance provided for the assessment against abutting property owners of benefits on the front foot rule or otherwise for such improvement; or whenever heretofore, the council of any city of the third class or of any borough, or the board of commissioners of any township of the first class of this Commonwealth has required by ordinance and caused to be made graded, paved, curbed or macadamized with brick, stone or other suitable material, or otherwise improved any property or public street or thoroughfare, or part thereof, either cartway, footwalk or gutter; or has covered or enclosed any watercourse or waterway in any street or thoroughfare so as to improve or extend and increase the driveway in any street or thoroughfare; or has vacated, confined, paved or altered the channel of any watercourse or waterway; or has caused any sewers whatsoever to be constructed within or without any such city, borough or township; or has caused ornamental lights to be erected pursuant to any ordinance; or has heretofore in accordance with existing law assessed a portion of the cost of such sewer as a sewage tax against property abutting along the line of said improvement on the side of said street, alley or highway which is located outside the limits of the said city, borough or township, the owners of such property being given permission by the said city, borough or township to use such sewer, and such property not being then provided with sewer facilities; and has by ordinance provided for the assessment against abutting property owners of benefits on the front foot rule or otherwise for such improvement, but owing to some defect in the petition, action of council or of the board of commissioners, notice of publication, failure to make said improvement in accordance with the strict terms of any ordinance, or any other proceeding or action necessary under existing laws and ordinances to give jurisdiction to such council or board of commissioners; or because of noncompliance with existing laws as to publication of copies of ordinance and posting of handbills prior to or after the final passage of such ordinance; or because of noncompliance with existing laws as to the purchasing of materials and supplies; or the awarding of contracts without advertising; or because the ordinance itself or the official record book containing the same has been lost, mislaid or destroyed; or such ordinance has not been transcribed in the official record book; or because of irregularity or error in the appointment of viewers to assess benefits against property abutting along the line of improvement; or because of the neglect of viewers, appointed to assess damages and benefits caused or accruing as a result thereof, to file their report within the time required by law for the filing thereof; or because of irregularity or error in the method or procedure taken for the ascertainment of the amount of benefits to such property; or because of any irregularity or error in the ordinances or passage or approval thereof authorizing the execution of the work, the contracting therefor, and the assessing of benefits therefor, or where the right of the board of viewers to assume jurisdiction and to act in assessing the properties benefited thereby is questioned; or because of any irregularity or error in the failure to bring the proceedings for the assessment of benefits on the front foot rule or otherwise for such improvement before the board of viewers within the time provided by law; or the failure to assess the benefits therefor in the manner now provided by law; or because of any irregularity or error in arriving at or determining the benefits assessed against any such property; or because of the failure to give notice as required by law or ordinance; or the time for filing a lien or making claim for such improvement has expired; or the claim has not been filed after notice to do so; or for any other reason the costs of such improvement, or portion thereof, were not or cannot be legally assessed upon the property bounding or abutting on the line of the im-

878

gtb-parealestate22-all.indb 878

12/22/21 10:45 AM

REAL ESTATE TAXATION

Ch. 52

Part IV Ch. 36–40 Insurance Part V Ch. 41–48A Zoning, etc. Part VI Ch. 49–56 Taxation Part VII Ch. 57–63 Litigation Part VIII Ch. 64–67 L/T Part IX Ch. 68–72 Condos, etc. Index

gtb-parealestate22-all.indb 879

Part III Ch. 23–35 Mortgages

879

Part II Ch. 15–22 Deeds

§ 7445.  Filing liens The council of any city of the third class, or of any borough, or the board of commissioners of any township of the first class of this Commonwealth, entitled to a lien under this act, shall file a lien therefor, if not heretofore filed, in the office of the prothonotary of the county within which the property lies within six months

Part I Ch. 1–14 Brokers

provement or on the street or part thereof improved; or owing to some defect in the statement of claim filed to secure the lien, or the failure of the city, borough or township solicitor to file the lien in the court of common pleas, or to sign the name, or to have stamped thereon a facsimile signature of the said solicitor or chief executive of the claimant for the costs of such improvement, or any error made in the name of the owner or owners of the abutting property along the line of the improvement payment thereof cannot be enforced; or if the ordinance of the city, borough or township, authorizing the construction of any improvement, was in fact adopted before such city, borough or township was legally empowered to make such assessments on property within or outside the limits of such city, borough or township, if such improvement was actually constructed, and such assessments against property within or without the limits of such city, borough or township made subsequent to the time when such city, borough or township was legally empowered to levy such assessments as was contemplated by the act or acts of General Assembly under which the improvement was attempted to be made; and statement of claim filed, now by this act such improvement is made valid and binding and also any statement of claim, heretofore filed, if any, to secure the liens therefore is also made valid and binding, and the jurisdiction of any board of viewers hereinbefore mentioned to entertain such proceedings and the assessments made pursuant to such proceedings against property within or without the limits of any such city, borough or township shall be valid and binding, and the council of such city or borough and the commissioners of such township may cause the property, bounding or abutting along the line of the improvement or on the street, or part thereof, upon which the improvement has been made or is now being made, to be assessed in the manner now provided by law or by the board of viewers’ proceedings in the manner and at the rates now provided by law with such a portion of the costs of such improvement as is contemplated by the law under which the improvement was made, or attempted to be made, or is now being made; and all such benefits and all assessments heretofore made or determined are hereby ratified, confirmed, and validated; and any statement of claims heretofore filed, if any, to secure the liens therefor are also hereby ratified, confirmed, and validated. Such assessment or other assessment heretofore made or hereafter made in proceedings now pending within the time limitations specified in this act shall be a lien upon the property assessed, and any lien heretofore filed for benefits assessed or for the cost of such improvement, or any part thereof, although the report of the viewers assessing the same was not filed within the time required by law for the filing thereof, is hereby made valid and binding with the same force and effect as though such report was filed within the time required by law for filing the same. The lien shall date from the completion of the improvement for which the assessment is made whether the work was completed through one or several operations or contracts, or from the date of filing the same, and shall remain a lien until fully paid and satisfied: Provided, That a writ of scire facias is issued to revive the same during every period of five years after the lien is filed, as hereafter provided: And provided further, That this act shall not validate any lien against any property which has been conveyed to a bona fide purchaser thereof subsequent to the expiration of the period prescribed by law for the filing of such liens and prior to the date of the filing thereof, or give the lien thus filed priority over any bona fide lien or liens filed, entered or recorded, or which shall have otherwise attached subsequently to the time prescribed by law for the filing of such municipal lien and prior to the time of the filing thereof.

Table of Contents

PART VI

12/22/21 10:45 AM

§ 7446

MUNICIPAL CLAIMS AND TAX LIENS

after the completion of the work where the improvement is now in progress, or within twelve months after the confirmation absolute of the report of the viewers assessing the benefits for such improvement whether now or hereafter pending, or within twelve months after the approval of this act where the improvement is now completed if no lien has been heretofore filed for the same, or within twelve months after the passage of any councilmanic ordinance assessing benefits under the provisions of this act where the improvement is already completed, and the same shall be entered upon record as other municipal claims. Such liens shall state the name of the party claimant, which shall be the corporate name of the city, borough or township making the improvement; name of the owner or reputed owner of the property assessed; a reasonable description of the property assessed; the amount or sum claimed to be due which shall include interest on the assessment from the completion of the improvement for what improvement the claim is made; the date of its completion; the date of the assessment for which the lien is filed. Such lien, when so filed, shall be prima facie evidence of all matters therein set forth and of the right of the city, borough or township to recover the amount therein claimed to be due, together with interest from the date of the lien or completion of the improvement, costs, and an attorney’s commission of five per centum for collecting. § 7446.  Collection of claim The claim, when so filed, shall be proceeded upon for collection by writ of scire facias: Provided, That this act shall not apply to any proceeding, suit or lien wherein a final order or judgment of any court of record has already been made or entered. § 7447.  Municipal improvements, assessments, claims and liens Whenever, heretofore, the council of any city of the third class or of any borough, or the board of commissioners of any township of the first class or the board of supervisors of any township of the second class of this Commonwealth has authorized by ordinance the grading, curbing, guttering, paving or macadamizing with concrete, brick, stone or other suitable material of any public street or thoroughfare, or portion thereof, either cartway, footwalk or gutter; and has caused such improvement to be made; and in such ordinance has authorized the advertising for bids therefor; and the assessment of benefits on the front foot rule or otherwise upon the property benefited thereby; and subsequent thereto pursuant to an ordinance passed, after the passage and approval of the original ordinance providing for the improvement, has authorized the entering into a contract for the said improvement with the Secretary of Highways of the Commonwealth of Pennsylvania and with the general contractor, who was the successful bidder with the Commonwealth for the construction of any portion of such streets or highways, without any advertising for bids on the part of the city, borough or township as provided for in the original ordinance authorizing such improvement; and has subsequent thereto brought proceedings for the appointment of viewers to assess benefits for the said improvements against the property abutting along the line of improvement in accordance with the provisions of the original ordinance authorizing the said improvement; or has by ordinance provided for the assessment against abutting property owners of benefits on the front foot rule or otherwise for such improvement; or whenever, heretofore, the council of any city of the third class or of any borough, or the board of commissioners of any township of the first class, or the board of supervisors of any township of the second class, of this Commonwealth has required by ordinance and caused to be made, graded, paved, curbed or macadamized with brick, stone or other suitable material, or otherwise improved any property or public street or thoroughfare, or part thereof, either cartway, footwalk or gutter; or has covered or enclosed any watercourse or waterway in any street or thoroughfare so as to improve or extend and increase the driveway in any street or thoroughfare; or has vacated, confined, paved or altered the channel of any watercourse or waterway; or has caused any sewers whatsoever

880

gtb-parealestate22-all.indb 880

12/22/21 10:45 AM

REAL ESTATE TAXATION

Ch. 52

Part III Ch. 23–35 Mortgages Part IV Ch. 36–40 Insurance Part V Ch. 41–48A Zoning, etc. Part VI Ch. 49–56 Taxation Part VII Ch. 57–63 Litigation Part VIII Ch. 64–67 L/T Part IX Ch. 68–72 Condos, etc. Index

gtb-parealestate22-all.indb 881

Part II Ch. 15–22 Deeds

881

Part I Ch. 1–14 Brokers

to be constructed within or without any such city, borough or township; or has caused ornamental lights to be erected pursuant to any ordinance; or has heretofore in accordance with existing law assessed a portion of the cost of such sewer as a sewage tax against property abutting along the line of said improvement on the side of said street, alley or highway which is located outside the limits of the said city, borough or township, the owners of such property being given permission by the said city, borough or township to use such sewer, and such property not being then provided with sewer facilities; and has by ordinance provided for the assessment against abutting property owners of benefits on the front foot rule or otherwise for such improvement, but owing to some defect in the petition, action of council or of the board of commissioners, or board of supervisors, notice of publication failure to make said improvement in accordance with the strict terms of any ordinance, or any other proceeding or action necessary under existing laws and ordinances to give jurisdiction to such council, board of commissioners or board of supervisors; or because of noncompliance with existing laws as to publication of copies of ordinance and posting of handbills prior to or after the final passage of such ordinance; or because of noncompliance with existing laws as to the purchasing of materials and supplies; or the awarding of contracts without advertising; or because the ordinance itself or the official record book containing the same has been lost, mislaid or destroyed; or such ordinance has not been transcribed in the official record book; or because of irregularity or error in the appointment of viewers to assess benefits against property abutting along the line of improvement; or because of the neglect of viewers, appointed to assess damages and benefits caused or accruing as a result thereof, to file their report within the time required by law for the filing thereof; or because of irregularity or error in the method or procedure taken for the ascertainment of the amount of benefits to such property; or because of any irregularity or error in the ordinances or passage or approval thereof authorizing the execution of the work, the contracting therefor, and the assessing of benefits therefor, or where the right of the board of viewers to assume jurisdiction and to act in assessing the properties benefited thereby is questioned; or because of any irregularity or error in the failure to bring the proceedings for the assessment of benefits on the front foot rule or otherwise for such improvement before the board of viewers within the time provided by law; or the failure to assess the benefits therefor in the manner now provided by law; or because of any irregularity or error in arriving at or determining the benefits assessed against any such property; or because of the failure to give notice as required by law or ordinance; or the time for filing a lien or making claim for such improvement has expired; or the claim has not been filed after notice to do so; or for any other reason the costs of such improvement, or portion thereof, were not or cannot be legally assessed upon the property bounding or abutting on the line of the improvement or on the street or part thereof improved; or owing to some defect in the statement of claim filed to secure the lien, or the failure of the city, borough or township solicitor to file the lien in the court of common pleas, or to sign the name, or to have stamped thereon a facsimile signature of the said solicitor or chief executive of the claimant for the costs of such improvement, or any error made in the name of the owner or owners of the abutting property along the line of the improvement payment thereof cannot be enforced; or if the ordinance of the city, borough or township, authorizing the construction of any improvement, was in fact adopted before such city, borough or township was legally empowered to make such assessments on property within or outside the limits of such city, borough or township, if such improvement was actually constructed, and such assessments against property within or without the limits of such city, borough or township made subsequent to the time when such city, borough or township was legally empowered to levy such assessments as was contemplated by the act or acts of General Assembly under which the improvement was attempted to be made; and statement of claim filed, now by this act such improvement is made valid and binding and also any statement of

Table of Contents

PART VI

12/22/21 10:45 AM

§ 7448

MUNICIPAL CLAIMS AND TAX LIENS

claim, heretofore filed, if any, to secure the liens therefor is also made valid and binding, and the jurisdiction of any board of viewers hereinbefore mentioned to entertain such proceedings and the assessments made pursuant to such proceedings against property within or without the limits of any such city, borough or township shall be valid and binding, and the council of such city or borough and the commissioners or supervisors of such township may cause the property, bounding or abutting along the line of the improvement or on the street, or part thereof, upon which the improvement has been made or is now being made, to be assessed in the manner now provided by law or by the board of viewers’ proceedings in the manner and at the rates now provided by law with such a portion of the costs of such improvement as is contemplated by the law under which the improvement was made, or attempted to be made, or is now being made; and all such benefits and all assessments heretofore made or determined are hereby ratified, confirmed, and validated; and any statement of claims heretofore filed, if any, to secure the liens therefor are also hereby ratified, confirmed, and validated. Such assessment or other assessment heretofore made or hereafter made in proceedings now pending within the time limitations specified in this act shall be a lien upon the property assessed, and any lien heretofore filed for benefits assessed or for the cost of such improvement, or any part thereof, although the report of the viewers assessing the same was not filed within the time required by law for the filing thereof, is hereby made valid and binding with the same force and effect as though such report was filed within the time required by law for filing the same. The lien shall date from the completion of the improvement for which the assessment is made whether the work was completed through one or several operations or contracts, or from the date of filing the same, and shall remain a lien until fully paid and satisfied: Provided, That a writ of scire facias is issued to revive the same during every period of five years after the lien is filed, as hereafter provided: And provided further, That this act shall not validate any lien against any property which has been conveyed to a bona fide purchaser thereof subsequent to the expiration of the period prescribed by law for the filing of such liens and prior to the date of the filing thereof, or give the lien thus filed priority over any bona fide lien or liens filed, entered or recorded, or which shall have otherwise attached subsequently to the time prescribed by law for the filing of such municipal lien and prior to the time of the filing thereof. § 7448.  Lien, filing, contents, prima facie evidence The council of any city of the third class, or of any borough, or the board of commissioners of any township of the first class or the board of supervisors of any township of the second class of this Commonwealth, entitled to a lien under this act, shall file a lien therefor, if not heretofore filed, in the office of the prothonotary of the county within which the property lies within six months after the completion of the work where the improvement is now in progress, or within twelve months after the confirmation absolute of the report of the viewers assessing the benefits for such improvement whether now or hereafter pending, or within twelve months after the approval of this act where the improvement is now completed if no lien has been heretofore filed for the same, or within twelve months after the passage of any councilmanic ordinance assessing benefits under the provisions of this act where the improvement is already completed, and the same shall be entered upon record as other municipal claims. Such liens shall be entered name of the party claimant, which shall be the corporate name of the city, borough or township making the improvement; name of the owner or reputed owner of the property assessed; a reasonable description of the property assessed; the amount or sum claimed to be due which shall include interest on the assessment from the completion of the improvement for what improvement the claim is made; the date of its completion; the date of the assessment for which the lien is filed. Such lien, when so filed, shall be prima facie evidence of all matters therein set forth and of the right of the city, borough or township to

882

gtb-parealestate22-all.indb 882

12/22/21 10:45 AM

REAL ESTATE TAXATION

Ch. 52

Part V Ch. 41–48A Zoning, etc. Part VI Ch. 49–56 Taxation Part VII Ch. 57–63 Litigation Part VIII Ch. 64–67 L/T Part IX Ch. 68–72 Condos, etc. Index

gtb-parealestate22-all.indb 883

Part IV Ch. 36–40 Insurance

883

Part III Ch. 23–35 Mortgages

§ 7450.  Municipal improvements, assessments, claims and liens Whenever, heretofore, the council of any city of the third class or of any borough, or the board of commissioners of any township of the first class or the board of supervisors of any township of the second class of this Commonwealth has authorized by ordinance the grading, curbing, guttering, paving or macadamizing with concrete, brick, stone or other suitable material of any public street or thoroughfare, or portion thereof, either cartway, footwalk or gutter; and has caused such improvement to be made; and in such ordinance has authorized the advertising for bids therefor; and the assessment of benefits on the front foot rule or otherwise upon the property benefited thereby; and subsequent thereto pursuant to an ordinance passed, after the passage and approval of the original ordinance providing for the improvement, has authorized the entering into a contract for the said improvement with the Secretary of Highways of the Commonwealth of Pennsylvania and with the general contractor, who was the successful bidder with the Commonwealth for the construction of any portion of such streets or highways, without any advertising for bids on the part of the city, borough or township as provided for in the original ordinance authorizing such improvement; and has subsequent thereto brought proceedings for the appointment of viewers to assess benefits for the said improvements against the property abutting along the line of improvement in accordance with the provisions of the original ordinance authorizing the said improvement; or has by ordinance provided for the assessment against abutting property owners of benefits on the front foot rule or otherwise for such improvement; or whenever, heretofore, the council of any city of the third class or of any borough, or the board of commissioners of any township of the first class, or the board of supervisors of any township of the second class, of this Commonwealth has required by ordinance and caused to be made graded, paved, curbed or macadamized with brick, stone or other suitable material, or otherwise improved any property or public street or thoroughfare, or part thereof, either cartway, footwalk or gutter; or has covered or enclosed any watercourse or waterway in any street or thoroughfare so as to improve or extend and increase the driveway in any street or thoroughfare; or has vacated, confined, paved or altered the channel of any watercourse or waterway; or has caused any sewers whatsoever to be constructed within or without any such city, borough or township; or has caused ornamental lights to be erected pursuant to any ordinance; or has heretofore in accordance with existing law assessed a portion of the cost of such sewer as a sewage tax against property abutting along the line of said improvement on the side of said street, alley or highway which is located outside the limits of the said city, borough or township, the owners of such property being given permission by the said city, borough or township to use such sewer, and such property not being then provided with sewer facilities; and has by ordinance provided for the assessment against abutting property owners of benefits on the front foot rule or otherwise for such improvement, but owing to some defect in the petition, action of council or of the board of commissioners, or board of supervisors, notice of publication, failure to make said improvement in accordance with the strict terms of any ordinance, or any other proceeding or action necessary under existing laws and ordinances to give jurisdiction to such council, board of commissioners or board of supervisors;

Part II Ch. 15–22 Deeds

§ 7449.  Collection of claim; application of statute The claim, when so filed, shall be proceeded upon for collection by writ of scire facias: Provided, That this act shall not apply to any proceeding, suit or lien wherein a final order or judgment of any court of record has already been made or entered.

Part I Ch. 1–14 Brokers

recover the amount therein claimed to be due, together with interest from the date of the lien or completion of the improvement, costs, and an attorney’s commission of five per centum for collecting.

Table of Contents

PART VI

12/22/21 10:45 AM

§ 7450

MUNICIPAL CLAIMS AND TAX LIENS

or because of noncompliance with existing laws as to publication of copies of ordinance and posting of handbills prior to or after the final passage of such ordinance; or because of noncompliance with existing laws as to the purchasing of materials and supplies; or the awarding of contracts without advertising; or because the ordinance itself or the official record book containing the same has been lost, mislaid or destroyed; or such ordinance has not been transcribed in the official record book; or because of irregularity or error in the appointment of viewers to assess benefits against property abutting along the line of improvement; or because of the neglect of viewers, appointed to assess damages and benefits caused or accruing as a result thereof, to file their report within the time required by law for the filing thereof; or because of irregularity or error in the method or procedure taken for the ascertainment of the amount of benefits to such property; or because of any irregularity or error in the ordinances or passage or approval thereof authorizing the execution of the work, the contracting therefor, and the assessing of benefits therefor, or where the right of the board of viewers to assume jurisdiction and to act in assessing the properties benefited thereby is questioned; or because of any irregularity or error in the failure to bring the proceedings for the assessment of benefits on the front foot rule or otherwise for such improvement before the board of viewers within the time provided by law; or the failure to assess the benefits therefor in the manner now provided by law; or because of any irregularity or error in arriving at or determining the benefits assessed against any such property; or because of the failure to give notice as required by law or ordinance; or the time for filing a lien or making claim for such improvement has expired; or the claim has not been filed after notice to do so; or for any other reason the costs of such improvement, or portion thereof, were not or cannot be legally assessed upon the property bounding or abutting on the line of the improvement or on the street or part thereof improved; or owing to some defect in the statement of claim filed to secure the lien, or the failure of the city, borough or township solicitor to file the lien in the court of common pleas, or to sign the name, or to have stamped thereon a facsimile signature of the said solicitor or chief executive of the claimant for the costs of such improvement, or any error made in the name of the owner or owners of the abutting property along the line of the improvement payment thereof cannot be enforced; or if the ordinance of the city, borough or township, authorizing the construction of any improvement, was in fact adopted before such city, borough or township was legally empowered to make such assessments on property within or outside the limits of such city, borough or township, if such improvement was actually constructed, and such assessments against property within or without the limits of such city, borough or township made subsequent to the time when such city, borough or township was legally empowered to levy such assessments as was contemplated by the act or acts of General Assembly under which the improvement was attempted to be made; and statement of claim filed, now by this act such improvement is made valid and binding and also any statement of claim, heretofore filed, if any, to secure the liens therefor is also made valid and binding, and the jurisdiction of any board of viewers hereinbefore mentioned to entertain such proceedings and the assessments made pursuant to such proceedings against property within or without the limits of any such city, borough or township shall be valid and binding, and the council of such city or borough and the commissioners or supervisors of such township may cause the property, bounding or abutting along the line of the improvement or on the street, or part thereof, upon which the improvement has been made or is now being made, to be assessed in the manner now provided by law or by the board of viewers’ proceedings in the manner and at the rates now provided by law with such a portion of the costs of such improvement as is contemplated by the law under which the improvement was made, or attempted to be made, or is now being made; and all such benefits and all assessments heretofore made or determined are hereby ratified, confirmed, and validated; and any statement of claims heretofore filed, if any, to secure the liens therefor are also hereby ratified, con-

884

gtb-parealestate22-all.indb 884

12/22/21 10:45 AM

REAL ESTATE TAXATION

Ch. 52

Part VI Ch. 49–56 Taxation Part VII Ch. 57–63 Litigation Part VIII Ch. 64–67 L/T Part IX Ch. 68–72 Condos, etc. Index

gtb-parealestate22-all.indb 885

Part V Ch. 41–48A Zoning, etc.

885

Part IV Ch. 36–40 Insurance

§ 7453.  Municipal improvements, assessments, claims and liens Whenever, heretofore, the council of any city of the third class or of any borough, or the board of commissioners of any township of the first class or the board of supervisors of any township of the second class of this Commonwealth has authorized by ordinance the grading, curbing, guttering, paving or macadamizing with concrete, brick, stone or other suitable material of any public street

Part III Ch. 23–35 Mortgages

§ 7452.  Collection of claim; application of statute The claim, when so filed, shall be proceeded upon for collection by writ of scire facias: Provided, That this act shall not apply to any proceeding, suit or lien wherein a final order or judgment of any court of record has already been made or entered.

Part II Ch. 15–22 Deeds

§ 7451.  Lien, filing, contents, prima facie evidence The council of any city of the third class, or of any borough, or the board of commissioners of any township of the first class or the board of supervisors of any township of the second class of this Commonwealth, entitled to a lien under this act, shall file a lien therefor, if not heretofore filed, in the office of the prothonotary of the county within which the property lies within six months after the completion of work where the improvement is now in progress, or within twelve months after the confirmation absolute of the report of the viewers assessing the benefits for such improvement whether now or hereafter pending, or within twelve months after the approval of this act where the improvement is now completed if no lien has been heretofore filed for the same, or within twelve months after the passage of any councilmanic ordinance assessing benefits under the provisions of this act where the improvement is already completed, and the same shall be entered upon record as other municipal claims. Such liens shall state the name of the party claimant, which shall be the corporate name of the city, borough or township making the improvement; name of the owner or reputed owner of the property assessed; a reasonable description of the property assessed; the amount or sum claimed to be due which shall include interest on the assessment from the completion of the improvement for what improvement the claim is made; the date of its completion; the date of the assessment for which the lien is filed. Such lien, when so filed, shall be prima facie evidence of all matters therein set forth and of the right of the city, borough or township to recover the amount therein claimed to be due, together with interest from the date of the lien or completion of the improvement, costs, and an attorney’s commission of five per centum for collecting.

Part I Ch. 1–14 Brokers

firmed, and validated. Such assessment or other assessment heretofore made or hereafter made in proceedings now pending within the time limitations specified in this act shall be a lien upon the property assessed, and any lien heretofore filed for benefits assessed or for the cost of such improvement, or any part thereof, although the report of the viewers assessing the same was not filed within the time required by law for the filing thereof, is hereby made valid and binding with the same force and effect as though such report was filed within the time required by law for filing the same. The lien shall date from the completion of the improvement for which the assessment is made whether the work was completed through one or several operations or contracts, or from the date of filing the same, and shall remain a lien until fully paid and satisfied: Provided, That a writ of scire facias is issued to revive the same during every period of five years after the lien is filed, as hereafter provided: And provided further, That this act shall not validate any lien against any property which has been conveyed to a bona fide purchaser thereof subsequent to the expiration of the period prescribed by law for the filing of such liens and prior to the date of the filing thereof, or give the lien thus filed priority over any bona fide lien or liens filed, entered or recorded, or which shall have otherwise attached subsequently to the time prescribed by law for the filing of such municipal lien and prior to the time of the filing thereof.

Table of Contents

PART VI

12/22/21 10:45 AM

§ 7453

MUNICIPAL CLAIMS AND TAX LIENS

or thoroughfare, or portion thereof, either cartway, footwalk or gutter; and has caused such improvement to be made; and in such ordinance has authorized the advertising for bids therefor; and the assessment of benefits on the front foot rule or otherwise upon the property benefited thereby; and subsequent thereto pursuant to an ordinance passed, after the passage and approval of the original ordinance providing for the improvement, has authorized the entering into a contract for the said improvement with the Secretary of Transportation of the Commonwealth of Pennsylvania and with the general contractor, who was the successful bidder with the Commonwealth for the construction of any portion of such streets or highways, without any advertising for bids on the part of the city, borough or township as provided for in the original ordinance authorizing such improvement; and has subsequent thereto brought proceedings for the appointment of viewers to assess benefits for the said improvements against the property abutting along the line of improvement in accordance with the provisions of the original ordinance authorizing the said improvement; or has by ordinance provided for the assessment against abutting property owners of benefits on the front foot rule or otherwise for such improvement; or whenever, heretofore, the council of any city of the third class or of any borough, or the board of commissioners of any township of the first class, or the board of supervisors of any township of the second class, of this Commonwealth has required by ordinance and caused to be made graded, paved, curbed or macadamized with brick, stone or other suitable material, or otherwise improved any property or public street or thoroughfare, or part thereof, either cartway, footwalk or gutter; or has covered or enclosed any watercourse or waterway in any street or thoroughfare so as to improve or extend and increase the driveway in any street or thoroughfare; or has vacated, confined, paved or altered the channel of any watercourse or waterway; or has caused any sewers whatsoever to be constructed within or without any such city, borough or township; or has caused ornamental lights to be erected pursuant to any ordinance; or has heretofore in accordance with existing law assessed a portion of the cost of such sewer as a sewage tax against property abutting along the line of said improvement on the side of said street, alley or highway which is located outside the limits of the said city, borough or township, the owners of such property being given permission by the said city, borough or township to use such sewer, and such property not being then provided with sewer facilities; and has by ordinance provided for the assessment against abutting property owners of benefits on the front foot rule or otherwise for such improvement, but owing to some defect in the petition, action of council or of the board of commissioners, or board of supervisors, notice of publication, failure to make said improvement in accordance with the strict terms of any ordinance, or any other proceeding or action necessary under existing laws and ordinances to give jurisdiction to such council, board of commissioners or board of supervisors; or because of noncompliance with existing laws as to publication of copies of ordinance and posting of handbills prior to or after the final passage of such ordinance; or because of noncompliance with existing laws as to the purchasing of materials and supplies; or the awarding of contracts without advertising; or because the ordinance itself or the official record book containing the same has been lost, mislaid or destroyed; or such ordinance has not been transcribed in the official record book; or because of irregularity or error in the appointment of viewers to assess benefits against property abutting along the line of improvement; or because of the neglect of viewers, appointed to assess damages and benefits caused or accruing as a result thereof, to file their report within the time required by law for the filing thereof; or because of irregularity or error in the method or procedure taken for the ascertainment of the amount of benefits to such property; or because of any irregularity or error in the ordinances or passage or approval thereof authorizing the execution of the work, the contracting therefor, and the assessing of benefits therefor, or where the right of the board of viewers to assume jurisdiction and to act in assessing the properties benefited

886

gtb-parealestate22-all.indb 886

12/22/21 10:45 AM

REAL ESTATE TAXATION

Ch. 52

Part III Ch. 23–35 Mortgages Part IV Ch. 36–40 Insurance Part V Ch. 41–48A Zoning, etc. Part VI Ch. 49–56 Taxation Part VII Ch. 57–63 Litigation Part VIII Ch. 64–67 L/T Part IX Ch. 68–72 Condos, etc. Index

gtb-parealestate22-all.indb 887

Part II Ch. 15–22 Deeds

887

Part I Ch. 1–14 Brokers

thereby is questioned; or because of any irregularity or error in the failure to bring the proceedings for the assessment of benefits on the front foot rule or otherwise for such improvement before the board of viewers within the time provided by law; or the failure to assess the benefits therefor in the manner now provided by law; or because of any irregularity or error in arriving at or determining the benefits assessed against any such property; or because of the failure to give notice as required by law or ordinance; or the time for filing a lien or making claim for such improvement has expired; or the claim has not been filed after notice to do so; or for any other reason the costs of such improvement, or portion thereof, were not or cannot be legally assessed upon the property bounding or abutting on the line of the improvement or on the street or part thereof improved; or owing to some defect in the statement of claim filed to secure the lien, or the failure of the city, borough or township solicitor to file the lien in the court of common pleas, or to sign the name, or to have stamped thereon a facsimile signature of the said solicitor or chief executive of the claimant for the costs of such improvement, or any error made in the name of the owner or owners of the abutting property along the line of the improvement payment thereof cannot be enforced; or if the ordinance of the city, borough or township, authorizing the construction of any improvement, was in fact adopted before such city, borough or township was legally empowered to make such assessments on property within or outside the limits of such city, borough, or township, if such improvement was actually constructed, and such assessments against property within or without the limits of such city, borough or township made subsequent to the time when such city, borough or township was legally empowered to levy such assessments as was contemplated by the act or acts of General Assembly under which the improvement was attempted to be made; and statement of claim filed, now by this act such improvement is made valid and binding and also any statement of claim, heretofore filed, if any, to secure the liens therefor is also made valid and binding, and the jurisdiction of any board of viewers hereinbefore mentioned to entertain such proceedings and the assessments made pursuant to such proceedings against property within or without the limits of any such city, borough or township shall be valid and binding, and the council of such city or borough and the commissioners or supervisors of such township may cause the property, bounding or abutting along the line of the improvement or on the street, or part thereof, upon which the improvement has been made or is now being made, to be assessed in the manner now provided by law or by the board of viewers’ proceedings in the manner and at the rates now provided by law with such a portion of the costs of such improvement as is contemplated by the law under which the improvement was made, or attempted to be made, or is now being made; and all such benefits and all assessments heretofore made or determined are hereby ratified, confirmed, and validated; and any statement of claims heretofore filed, if any, to secure the liens therefor are also hereby ratified, confirmed, and validated. Such assessment or other assessment heretofore made or hereafter made in proceedings now pending within the time limitations specified in this act shall be a lien upon the property assessed, and any lien heretofore filed for benefits assessed or for the cost of such improvement, or any part thereof, although the report of the viewers assessing the same was not filed within the time required by law for the filing thereof, is hereby made valid and binding with the same force and effect as though such report was filed within the time required by law for filing the same. The lien shall date from the completion of the improvement for which the assessment is made whether the work was completed through one or several operations or contracts, or from the date of filing the same, and shall remain a lien until fully paid and satisfied: Provided, That the lien be revived during every period of five years after the lien is filed, either by the issuance of a writ of revival, or the filing of a suggestion of nonpayment and an averment of default: And provided further, That this act shall not validate any lien against any property which has been conveyed to a bona fide purchaser thereof subse-

Table of Contents

PART VI

12/22/21 10:45 AM

§ 7454

MUNICIPAL CLAIMS AND TAX LIENS

quent to the expiration of the period prescribed by law for the filing of such liens and prior to the date of the filing thereof, or give the lien thus filed priority over any bona fide lien or liens filed, entered or recorded or which shall have otherwise attached subsequently to the time prescribed by law for the filing of such municipal lien and prior to the time of the filing thereof. § 7454.  Lien, filing, contents, prima facie evidence The council of any city of the third class, or of any borough, or the board of commissioners of any township of the first class or the board of supervisors of any township of the second class of this Commonwealth, entitled to a lien under this act, shall file a lien therefor, if not heretofore filed, in the office of the prothonotary of the county within which the property lies within six months after the completion of work where the improvement is now in progress, or within twelve months after the confirmation absolute of the report of the viewers assessing the benefits for such improvement whether now or hereafter pending, or within twelve months after the approval of this act where the improvement is now completed if no lien has been heretofore filed for the same, or within twelve months after the passage of any councilmanic ordinance assessing benefits under the provisions of this act where the improvement is already completed, and the same shall be entered upon record as other municipal claims. Such liens shall state the name of the party claimant, which shall be the corporate name of the city, borough or township making the improvement; name of the owner or reputed owner of the property assessed; a reasonable description of the property assessed; the amount or sum claimed to be due which shall include interest on the assessment from the completion of the improvement for what improvement the claim is made; the date of its completion; the date of the assessment for which the lien is filed. Such lien, when so filed, shall be prima facie evidence of all matters therein set forth and of the right of the city, borough or township to recover the amount therein claimed to be due, together with interest from the date of the lien or completion of the improvement, costs, and an attorney’s commission of five per cent for collecting. § 7455.  Collection of claim; application of statute The claim, when so filed, shall be proceeded upon for collection by writ of scire facias: Provided, That this act shall not apply to any proceeding, suit or lien wherein a final order or judgment of any court of record has already been made or entered. § 7501.  Name of act This act shall be known and may be cited as the “Self-Assessed Tax Lien Act.” § 7502.  Definition As used in this act, “Self-assessed tax” means any tax levied by any political subdivision of the Commonwealth for which the taxpayer is required to compute and file, together with payment, a return with the local collector or receiver of taxes. § 7503.  Taxpayer’s record transmitted to prothonotary (a)  Any city of the first class and any school district of the first class may transmit to the prothonotary of its county a certified record of the self-assessed tax of any taxpayer who fails to— (1)   Compute and file a self-assessed tax return when required to do so, or (2)   Pay any or all of the declared amount due, or (3)  Compute correctly or understates the amount of the self-assessed tax due. (b)   Every certified record shall contain the name of the taxpayer, his address, the specific self-assessed tax involved, amount of the tax due, penalty and interest thereon, and the year for which the said tax has been levied.

888

gtb-parealestate22-all.indb 888

12/22/21 10:45 AM

REAL ESTATE TAXATION

Ch. 52

Part IV Ch. 36–40 Insurance Part V Ch. 41–48A Zoning, etc. Part VI Ch. 49–56 Taxation Part VII Ch. 57–63 Litigation Part VIII Ch. 64–67 L/T Part IX Ch. 68–72 Condos, etc. Index

gtb-parealestate22-all.indb 889

Part III Ch. 23–35 Mortgages

889

Part II Ch. 15–22 Deeds

34. 53 P.S. § 7283.

Part I Ch. 1–14 Brokers

§ 7504.  Dockets; indexes; lien; judgment; execution; sale; revival; scire facias (a)   The prothonotary shall enter every certified record in a docket maintained in the prothonotary’s office. This docket shall be designated “Self-Assessed Tax Lien Docket,” and such tax lien shall be indexed as judgments are now indexed. (b)   All certified records shall be a lien upon the real estate of the taxpayer within the county in which such city of the first class or school district of the first class is located from the date of entry upon the docket and until paid. The lien shall be given the effect of a judgment and a writ of execution may issue directly without prosecution to judgment of a writ of scire facias. Any property sold in execution shall be sold in compliance with the procedure provided for municipal claims in section 31.2, act of May 16, 1923 (P.L. 207),34 subject to all prior claims, mortgages, ground rents, charges and estates. (c)   The lien shall continue for five years and may be revived and continued in the manner now or hereafter provided for revival of judgments, or by the filing of a suggestion of nonpayment and averment of default in the form hereinafter provided, within each period of five years following— (1)   The date on which the certified record of self-assessed taxes was entered and docketed, (2)   The date on which a petition and rule was filed, (3)   The date on which any judgment on the petition and rule was entered, (4)   The date on which a previous suggestion of nonpayment and averment of default was filed, (5)   The date on which a judgment of revival was obtained thereon. (d)  The suggestion and averment shall be in the following form under the caption of the claim: “And now __________ the claimant by __________ its solicitor, or by the chief of its delinquent tax bureau, suggests of record that the above claim is still due and owing to the claimant, and avers the defendant is still in default for nonpayment thereof. The prothonotary is hereby directed to enter this suggestion and averment on the Self-Assessed Tax Lien Docket, and also index it upon the judgment index of the court for the purpose of continuing the lien of the claim.” Such suggestion and averment shall be signed by, or have stamped thereon, a facsimile signature of the solicitor or chief executive officer of the claimant or the chief of its delinquent tax bureau. (e)  The prothonotary shall docket and index the suggestion and averment directed therein, and for such services shall be entitled to a fee of one dollar ($1) to be taxed and collected as costs in the claim. The filing and indexing of such suggestion and averment within five years of filing the claim, or the issuing of any writ of scire facias thereon or any judgment thereon or the filing of any prior suggestion and averment of default, shall have the same force and effect for the purpose of continuing and preserving the lien of the claim as though a writ of scire facias had been issued or a judgment or judgment of revival had been obtained within such period. It shall be lawful for a writ of scire facias to issue and be prosecuted to judgment in the manner in which such writs are now ordinarily employed. The above described procedures shall be in addition to any other methods of collection that may be or are presently authorized. § 7505.  Appeal from assessment Nothing herein shall affect the taxpayers’ rights to appeal from any assessment, and any issue which can be determined on such appeal shall not be subject to review in any proceeding on the lien.

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PART VI

12/22/21 10:45 AM

CHAPTER 53 REAL ESTATE TAX SALE LAW 72 P.S. § 5860-101 to 72 P.S. § 5860-803

Sec. § § § § § § § § § § § § § § § § § § § § § § § § § § § § § § § § § § § § § § § § § § § § § § § § § § § § § § § § § §

101. Short title 102. Definitions 201. Creation of bureaus 201a. Alternative collection of taxes 202. Appointment and compensation of personnel 203. Bonds 204. County bureau to collect taxes 205. System of accounting and distribution 206. Costs, fees and expenses 207. Reimbursement of county; charges 208. Agent of taxing districts; lien certificates 301. Taxes, a first lien 302. Lien entitlement 303. Property subject to or exempt from claim 304. Tax liens and municipal claims divested by sale 305. Claims against property owned by joint tenants and tenants in common 306. Return of property and delinquent taxes; interest; settlements by tax collectors 307. Filing claims 308. Notice of filing of returns and entry of claim 309. Contents of claims entered 310. Property included in claims 311. Claims become absolute 312. Lien lost if not returned to bureau 313. Substitution of defendants 314. Proceeding to attack validity of claim 315. Claims; dockets; satisfaction and public record lists 316. Assignment of claims 401. Petition for sequestrator 402. Authority for petition 403. Procedure to obtain possession 404. Powers of sequestrator 405. Return of possession 406. General powers and remedies of sequestrator 501. Discharge of tax claims 502. Repealed 502a. Option of county to extend period for discharge of tax claim 503. Repealed. 503a. Extension of period for discharge of tax claim 504. Extension for elderly 505. Repealed 506. Repealed 501-A. Duty to register 502-A. Application 503-A. List of registered bidders 601. Date of sale 602. Notice of sale 603. Removal from sale; agreements to stay sale 604. Sales of property of quasi-public corporation 605. Upset sale price 606. Payments by purchasers at sales 607. Bureau’s consolidated return to court; notice; confirmation; appeal 607a. Additional notification efforts 608. Deed 609. Nondivestiture of liens 610. Petition for judicial sale 611. Service of rule 612. Hearing and order for judicial sale 612-1. County commissioners may bid and purchase property; costs paid by taxing districts

890

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12/22/21 10:45 AM

Ch. 53

612-2. Combined judicial sales 612-3. Additional costs for rehabilitation and maintenance 613. Properties not sold because of insufficient bid may be sold at private sale 613-1. Private sales, validation 614. Options 615. Deeds 616. Mandatory judicial sale 617. Errors as to description; names, etc., may be amended on petition 618. Repurchase by owner 619. Restrictions on Purchases 619a. Additional restrictions 625. Purpose 626. Unsold property repository 627. Sale of property in repository 628. Assessment restrictions on property sold from repository 629. Notification of sale 630. Distribution of all moneys received 641. Limitation on Trusteeship 642. Ownership interests and responsibilities of delinquent property owner 701. Property heretofore purchased by taxing districts to be turned over to bureau 702. Powers and duties of bureau as agent 703. Such properties to be sold under provisions of Article VI 704. Validation of title 705. Duty of county and bureau; enforcement provision 801. Acts of assembly repealed 802. General repeal 803. Effective date

Part I Ch. 1–14 Brokers Part II Ch. 15–22 Deeds Part III Ch. 23–35 Mortgages Part IV Ch. 36–40 Insurance

§ § § § § § § § § § § § § § § § § § § § § § § § § § §

REAL ESTATE TAXATION

Part VII Ch. 57–63 Litigation Part VIII Ch. 64–67 L/T Part IX Ch. 68–72 Condos, etc. Index

gtb-parealestate22-all.indb 891

Part VI Ch. 49–56 Taxation

891

Part V Ch. 41–48A Zoning, etc.

§ 101.  Short title This act shall be known and may be cited as the “Real Estate Tax Sale Law.” § 102.  Definitions As used in this act, the following words shall be construed as herein defined, unless the context clearly indicates otherwise: “Absolute,” the perfection of a claim for taxes under section 311, after which the validity of the claim may not be challenged. “Actual sale,” payment of the full amount of money agreed to be paid as the sale price by the successful bidder or purchaser at upset sale under sections 605 through 609.1 “Bureau,” the Tax Claim Bureau created by this act in the several counties. “Claim,” a claim entered in a claim docket by the bureau to recover the taxes returned by the various taxing districts against a certain property. “County,” a county of the second A, third, fourth, fifth, sixth, seventh or eighth class, including counties of these classes which have adopted or may adopt home rule charters under the act of April 13, 1972 (P.L. 184, No. 62), known as the “Home Rule Charter and Optional Plans Law.”2 “County commissioner,” includes the equivalent official in home rule counties. “Delinquent,” taxes shall be considered delinquent on December 31 of each calendar year for all taxing districts. “Delinquent property owner,” a person, whose taxes on the subject property are delinquent and in whose name the property is last registered, if registered according to law or, if not registered according to law, the person whose name last appears as an owner of record on a deed or instrument of conveyance recorded 1. 72 P.S. §§ 5860.605 to 5860.609. 2. 53 P.S. § 1-101 et seq.

Table of Contents

PART VI

12/22/21 10:45 AM

§ 102

REAL ESTATE TAX SALE LAW

in the county office designated for recording. In all other cases, the term means a person in open, peaceable and notorious possession of property as apparent owner or reputed owner of the property. “Director,” the director of the Tax Claim Bureau. “Discharge of tax claim period,” the period of time between entry of claim and actual sale of property. “Owner,” the person in whose name the property is last registered, if registered according to law, or, if not registered according to law, the person whose name last appears as an owner of record on any deed or instrument of conveyance recorded in the county office designated for recording and in all other cases means any person in open, peaceable and notorious possession of the property, as apparent owner or owners thereof, or the reputed owner or owners thereof, in the neighborhood of such property; as to property having been turned over to the bureau under Article VII3 by any county, “owner” shall mean the county. “Owner Occupant,” the owner of a property which has improvements constructed thereon and for which the annual tax bill is mailed to an owner residing at the same address as that of the property. “Posted” or “posting,” the following: (1)   In the case of property containing assessed improvements, affixing notices as required by this act: (i)   To a portion of an improvement situated to be reasonably conspicuous to both the owner and the general public. (ii)  To a stake secured on or adjacent to the property, within approximately twenty-five (25) feet of any entrance to the property in a manner situated to be reasonably conspicuous to both the owner and the general public, in cases in which subclause (i) does not apply. (iii)   Adjacent to the property line, on a stake secured on or adjacent to the property in a manner reasonably conspicuous to the owner and the general public in cases in which subclauses (i) and (ii) do not apply. (2)   In the case of property containing no assessed improvements, affixing notices as required by this act: (i)   To a stake secured on or adjacent to the property, within approximately twenty-five (25) feet of any entrance to the property in a manner situated to be reasonably conspicuous to both the owner and the general public. (ii)   Adjacent to the property line, on a stake secured on or adjacent to the property in a manner reasonably conspicuous to the owner and the general public in cases in which subclause (i) does not apply. (3)   In the event that a reasonably conspicuous location in accordance with clause (1) or (2) is not available, placing any alternative, similarly durable notification of proceedings under this act at a location on or near the property and reasonably conspicuous to the owner and the general public. “Property,” real property which shall include a mobilehome or house trailer permanently attached to land or connected with water, gas, electricity or sewage facilities, subject to a tax lien or against which a claim is being or has been filed as a lien. “Property,” includes both seated and unseated lands. “Taxes,” all taxes, with added interest and penalties, levied by a taxing district upon real property, including improvements. Whenever interest and penalties have been abated by a statute which provides for payment of delinquent taxes on an instalment basis, interest and penalties shall be included in the event of a default as prescribed by the abatement statute. 3. 72 P.S. §§ 5860.701 et seq.

892

gtb-parealestate22-all.indb 892

12/22/21 10:45 AM

REAL ESTATE TAXATION

Ch. 53

Part IV Ch. 36–40 Insurance Part V Ch. 41–48A Zoning, etc. Part VI Ch. 49–56 Taxation Part VII Ch. 57–63 Litigation Part VIII Ch. 64–67 L/T Part IX Ch. 68–72 Condos, etc. Index

gtb-parealestate22-all.indb 893

Part III Ch. 23–35 Mortgages

893

Part II Ch. 15–22 Deeds

4. 72 P.S. § 5860.201a. 5. 53 Pa.C.S. § 2301 et seq. 6. 72 P.S. § 5860.203.

Part I Ch. 1–14 Brokers

“Taxing District,” any county, city, borough, incorporated town, township, home rule municipality, optional plan municipality, optional charter municipality, school district, institution district or any similar general purpose unit of government which may be created or authorized by statute except counties of the first and second class and cities, boroughs, incorporated towns, townships, home rule municipalities, optional plan municipalities, optional charter municipalities, school districts or institution districts therein and cities of the second class A and school districts therein. § 201.  Creation of bureaus Except as otherwise provided in section 201.1,4 a Tax Claim Bureau is hereby created in each county in the office of the county commissioners. § 201a.  Alternative collection of taxes (a)  In lieu of or in addition to creating a bureau, counties are authorized to provide by ordinance for the appointment and compensation of such agents, clerks, collectors and other assistants and employes, either under existing departments, in private sector entities or otherwise as may be deemed necessary, for the collection and distribution of taxes under this act. Any alternative collection method shall be subject to all of the notices, time frames, enumerated fees and protections for property owners contained in this act. Two or more counties may enter into a joint agreement under 53 Pa.C.S. Ch. 23 Subch. A5 (relating to intergovernmental cooperation) to provide for the alternative collection of taxes under this section. (b)  The requirement of section 2036 to furnish bonds, provisions of this act relating to accounting and distribution of moneys and other provisions relating to operation of a bureau shall apply to an alternative collection system established under this section. § 202.  Appointment and compensation of personnel (a)  In each county, the county commissioners shall have direct supervision and control of the bureau, and shall have power to appoint a director and such employes and assistants as may be necessary to properly administer the affairs of the bureau, but the number and compensation of such employes, including the compensation of the director, shall be fixed by the salary board of the county in those counties where there is a salary board, and in all other counties by the county commissioners. Such compensation shall be paid by the county from county funds. County employes or the county treasurer may be assigned by the county commissioners to act as the director or to other duties in the bureau. (b)   The county solicitor shall be the legal advisor and counsel to the bureau. The solicitor may appoint such assistant solicitors at such salaries as shall be allowed by the salary board. § 203.  Bonds The county commissioners of each county shall have power to require the director of the bureau and such employes and assistants of the bureau, as may by them be designated, to give bonds to the Commonwealth for the use of the taxing districts, whose delinquent real estate tax claims are administered through such bureau, and for the use of any other person having a claim by reason of any act of such director, employes or assistants in such penal sum as the county commissioners shall fix, conditioned for the faithful performance of the duties of their office or public position and a strict accounting and distribution of all moneys collected or received by them under the provisions of this act. The cost of such bonds shall be paid by the county.

Table of Contents

PART VI

12/22/21 10:45 AM

§ 204

REAL ESTATE TAX SALE LAW

§ 204.  County bureau to collect taxes (a)   Each county bureau shall receive and collect such taxes and give proper receipt therefor when payment is offered, and to make distribution of the moneys received as provided by this act. (b)(1)   All taxes for which returns have been made to the bureau shall be payable only to the bureau and shall not be payable to or be accepted by any taxing district or tax collector. (2)   In the event that any such taxes are received or accepted by any taxing district contrary to the provisions of this section, the taxing district shall be liable to the bureau for, and the bureau shall deduct from any distribution to which the taxing district is entitled under section 205,7 all charges, fees, costs, commission and interest to which the bureau would otherwise have been entitled under the act if payment had been made directly to the bureau. § 205.  System of accounting and distribution (a)   In each county bureau a system of accounting and distribution of all moneys collected or received under the provisions of this act shall be established in the bureau as may be determined by the county commissioners, the county controller, if any, and county treasurer. (b)  The bureau shall keep an accurate account of all money recovered and received by it under this act and maintain a separate account for each property. (c)  Money received on account of costs, fees and expenses advanced by any taxing district shall be repaid to the taxing district making the advance. Other money collected under this act shall be subject, first, to a commission of five per centum (5%) of all money collected to be retained by the bureau to offset costs of the administration of this act. Interest earned on money held by the bureau prior to distribution shall also be retained by the bureau for administrative costs. (c.1)   It shall then be the duty of the bureau to distribute the entire remaining balance of the moneys collected, except moneys collected through any tax sale under the provisions of this act, to the taxing districts at least once every three (3) months in proportion to the taxes due each taxing district. (d)  It shall be the duty of the bureau to distribute all moneys collected as the result of any tax sale conducted under the provisions of this act, less the deductions authorized by subsection (c), in the following manner and according to the following priority: (1)   First, to the Commonwealth, by payment to the State Treasurer through the Department of Revenue, for satisfaction of tax liens of the Commonwealth only if the total amount of such liens or such portion thereof have been included in the purchase price and paid by the purchaser or the property is sold at judicial sale pursuant to this act. (2)   Second, to the respective taxing districts in proportion to the taxes due them. (3)  Third, to taxing districts or municipal authorities for satisfaction of municipal claims. (4)   Fourth, to mortgagees and other lien holders, in order of their priority, for satisfaction of mortgages and liens as they may appear of record, whether or not discharged by the sale. (5)   Fifth, to the owner of the property.

7. Section 5860.205 of this title.

894

gtb-parealestate22-all.indb 894

12/22/21 10:45 AM

REAL ESTATE TAXATION

Ch. 53

Part IV Ch. 36–40 Insurance Part V Ch. 41–48A Zoning, etc. Part VI Ch. 49–56 Taxation Part VII Ch. 57–63 Litigation Part VIII Ch. 64–67 L/T Part IX Ch. 68–72 Condos, etc. Index

gtb-parealestate22-all.indb 895

Part III Ch. 23–35 Mortgages

895

Part II Ch. 15–22 Deeds

8. Sections 5860.101 to 5860.803 of this title. 9. Section 5860.205 of this title.

Part I Ch. 1–14 Brokers

(e)  Prior to the actual distribution required by subsection (d), the bureau shall petition the court of common pleas for a confirmation of distribution. The petition shall set forth a proposed schedule of distribution for each account and shall request the court to issue a rule to show cause on each distributee why the court should not confirm the distribution as proposed. The rule to show cause and a copy of the petition shall be served by first class mail upon each distributee and upon the purchaser, with proof of mailing to the last residence or place of business of the distributee known to the bureau and to the purchaser at the address given to the bureau. If the rule to show cause is not returned by any distributee or purchaser on or before the time set for its return, the court shall forthwith confirm the distribution absolutely. If any distributee or purchaser makes a return of the rule within the time set by the court, the court shall forthwith hear any objections and exceptions to the proposed distribution and thereafter adjust the schedule of distribution as it deems just and equitable according to law and confirm the distribution absolutely as adjusted. An absolute confirmation of distribution by the court shall be final and nonappealable with respect to all distributees listed in the petition. (f)  Whenever no claim for payment of any balance due the owner of the property is presented by or on behalf of the owner within a period of three (3) years of the date of the sale, the balance of the proceeds shall be distributed to the respective taxing districts pro rata based on the millage imposed by the respective taxing districts as of the year such property was sold. Interest earned by the proceeds of the sale during this three-year period shall be retained by the county. § 206.  Costs, fees and expenses The county shall be liable, or initially liable for all costs, fees and expenses which shall be required to be paid to administer the affairs of the bureau and of this act,8 including but not limited to, costs of mailing and advertising notices, fees for the entry of claims, and proceedings thereon, and all other proceedings required by this act, except where otherwise provided by this act, the costs of repairs and alteration to, and insurance on property in sequestration or management, commissions to rental agents, advertising for rent, title searches and salaries and compensation, and the costs of bonds of officers, employes and agents of the bureau, and rental of offices, furniture, equipment, material and supplies for the use of the bureau. All such costs, fees and expenses shall be paid as other expenses of the county are paid from appropriations made by the county, and not otherwise, and when any of such costs, fees and expenses are recovered they shall be deposited in the treasury of the county for the use of the county. § 207.  Reimbursement of county; charges (a)   In order to reimburse the county for the actual costs and expenses of operating the bureau created by this act, the county shall receive and retain out of all moneys collected or received under the provisions of this act, five per centum (5%) thereof, which percentage shall be deducted by the bureau before paying over moneys to the respective taxing districts entitled thereto. This percentage and interest earned under section 2059 shall be paid into the county treasury for the use of the county. The reimbursement herein provided for shall be in addition to the costs, fees and expenses advanced by the county, which, upon recovery, are payable to the county as provided by the preceding section of this act.

Table of Contents

PART VI

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§ 208

REAL ESTATE TAX SALE LAW

(b)   In addition to the five per centum (5%) authorized by subsection (a), and the reimbursement as therein provided, maximum charges for the following or similar type services are authorized: (1)   Entry of Claim, includes $10.00 (i)   audit lien sheets (ii)   enter on property card (iii)   enter in docket (iv)   enter in index (v)   type notice of return (vi)   mail notice of return (2)   Satisfaction of Claim, includes $ 5.00 (i)  prepare receipt (ii)  satisfy docket (iii)  satisfy index (iv)   post property card (v)   enter on daily distribution sheet (3)   Preparation of Sale, includes $15.00 (i)   prepare cost sheet (ii)   type notice of sale (iii)   mail notice of sale (iv)   prepare advertising copy (4)   Review of Records, includes $10.00 (i)   check assessment records (ii)   check Recorder of Deeds (iii)   check Register of Wills (5)   Preparation of Deed $25.00 10 (6)   Discharge of Tax Claim, Section 501 $ 5.00 (6.1)   Removal from Sale, Section 60311 $ 5.00 (7)   Agreement to Stay Sale, Section 603 $15.00 (8)   Postage Actual cost It is the intent of this act to authorize the bureau to charge the costs of its operation against the properties for which a delinquent return is made on an equitable and pro-rata basis in so far as is possible. The charge made for each service shall bear a reasonable relationship to the service rendered. § 208.  Agent of taxing districts; lien certificates The bureau and the director thereof shall, in the administration of this act, be the agent of the taxing districts whose tax claims are returned to the bureau for collection and prosecution under the provisions of this act, and in the management and disposition of property in accordance with the provisions of this act. The bureau shall, upon request of any person, furnish a lien certificate showing the taxes due on any property as shown by its records. A fee of not more than five dollars ($5) shall be charged for any such certificate and shall be payable to the county. 10. Section 5860.501 of this title. 11. Section 5860.603 of this title.

896

gtb-parealestate22-all.indb 896

12/22/21 10:45 AM

REAL ESTATE TAXATION

Ch. 53

Part V Ch. 41–48A Zoning, etc. Part VI Ch. 49–56 Taxation Part VII Ch. 57–63 Litigation Part VIII Ch. 64–67 L/T Part IX Ch. 68–72 Condos, etc. Index

gtb-parealestate22-all.indb 897

Part IV Ch. 36–40 Insurance

897

Part III Ch. 23–35 Mortgages

12. Section 5860.205 of this title.

Part II Ch. 15–22 Deeds

(2)  A donation under this subsection shall be by deed recorded, and registered where required, with the county recorder of deeds. The deed shall be accompanied by recorded satisfactions of any and all claims for taxes which are

Part I Ch. 1–14 Brokers

§ 301.  Taxes, a first lien All taxes which may hereafter be lawfully levied on property in this Commonwealth by any taxing district, and all taxes heretofore lawfully levied by any taxing district on any property, the lien of which has not been lost under existing laws (whether or not a claim has been filed, or return thereof has been made to the county commissioners) shall be and are hereby declared to be a first lien on said property. Such liens shall have priority to and be fully paid and satisfied out of the proceeds of any sale of said property held under the provisions of this act before any mortgage, ground rent, obligation, judgment claim, lien or estate with which the said property may have or shall become charged, or for which it may become liable, save and except only the costs of the sale and of the proceedings upon which it is made, and such tax liens of the Commonwealth of Pennsylvania given priority of payment by section 205 of this act.12 § 302.  Lien entitlement The lien for taxes shall exist in favor of the taxing district to which the tax is payable and the claim therefor shall be filed against the property taxed. § 303.   Property subject to or exempt from claim (a)  All property, by whomsoever owned and for whatsoever purpose used, and all property the owner of which is unknown and has been unknown for a period of not less than five years, shall be subject to claims for taxes, except such property which is exempt by law from taxation or which is not made subject to taxation by law. (b)   Notwithstanding subsection (a), a local taxing district, including a municipal authority or a school district if acting pursuant to paragraph (6), may accept the donation of a property that is subject to a claim for taxes under this act. A local taxing district shall provide written notice to all other local taxing districts or their designees under paragraph (5) of a donation proposed by the owner of the property. A donation under this subsection shall not be accepted less than thirty (30) days after notice to all other local taxing districts which have a claim for taxes on the subject property under this act. A donation under this subsection shall divest all liens against the property possessed by the local taxing district accepting the donation, and all other local tax liens recorded prior to the date of donation, except as provided in this subsection. (1)   A local taxing district which receives a notice of proposed donation may request to participate in negotiations with regard to the donation and extinguishment of all or part of its liens and with regard to proposals to return the property to the tax rolls or to productive public use. A local taxing district which does not respond in writing to the notice within thirty (30) days of receipt of the notice shall waive its right to participate in the donation negotiations, and its lien shall be extinguished. A local taxing district participating in donation negotiations may agree to extinguish all existing liens against the property in exchange for full or partial satisfaction of its claims upon future sale of the property by the local taxing district accepting the donation. Every negotiation shall consider the structure of the property, the market value of the property in its current condition, the best use of the property given the neighborhood and local ordinances and the costs to cure any defects, including defects in title.

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§ 304

REAL ESTATE TAX SALE LAW

extinguished by virtue of the donation. In all instances, the satisfaction from the local taxing district which is accepting ownership of the property pursuant to the donation shall provide for full extinguishment of all claims under this act possessed by it. Satisfactions of liens shall provide that all claims of all local taxing districts in which the property is located are discharged and extinguished, unless terms are otherwise agreed upon between the owner and the local taxing districts participating in the donation negotiations. (3)   Property that has been donated in accordance with this subsection shall be exempt from claims for taxes from any local taxing district in which it is located during the time that it remains in the ownership of the county, city, borough, incorporated town, school district, township, home rule municipality, optional plan municipality, redevelopment authority or optional charter municipality to which it was donated. (4)   An owner that donates property in accordance with this subsection shall not be personally liable for the amount of claims for taxes exempted or extinguished as a result of the donation. (5)   A local taxing district possessing a claim under this act may designate another local taxing district, or the redevelopment authority in the county in which the property is located, to act as its agent with regard to a donation under this subsection. A single local taxing district or the redevelopment authority may be selected as the agent for all local taxing districts holding a tax claim or lien against the property under this act. In returning the property to the tax rolls or to productive public use, a redevelopment authority may seek the assistance of a community development corporation serving the area where the property is located. (6)  A school district or municipal authority other than a redevelopment authority may participate in the provisions of this subsection only if the school district or municipal authority has designated an agent in accordance with paragraph (5). Nothing in this subsection shall prevent a school district or municipal authority from taking title to a donated property if it is determined during negotiations that the best manner to return the property to productive use is to allow a school district or municipal authority to use the property for purposes directly related to the mission of the district or authority. (c)   If an owner of property that is subject to a claim for taxes wishes to donate the property under subsection (b), the owner must do so prior to receiving a notice of sale as required in section 602. (d)   Nothing in this section shall be construed to require a county, city, borough, incorporated town, township, home rule municipality, optional plan municipality, optional charter municipality, school district or redevelopment authority to accept an offer of property donation. (e)   For the purpose of this section, the phrase “claims for taxes” shall include all penalties, interest and fees assessed against the property. § 304.  Tax liens and municipal claims divested by sale The lien of all taxes and municipal claims now or hereafter imposed, levied or assessed against any property and included in the upset price shall be divested by any upset sale of such property under the provisions of this act, if the amount of the purchase money shall be at least equal to the amount of tax liens of the Commonwealth having priority under section 205,13 the amount of all taxes due 13. Section 5860.205 of this title.

898

gtb-parealestate22-all.indb 898

12/22/21 10:45 AM

REAL ESTATE TAXATION

Ch. 53

Part IX Ch. 68–72 Condos, etc. Index

gtb-parealestate22-all.indb 899

Part VIII Ch. 64–67 L/T

899

Part VII Ch. 57–63 Litigation

14. Section 5860.605 of this title.

Part VI Ch. 49–56 Taxation

(c)   The county commissioners, by resolution, may establish and fix a return date, other than the return date prescribed in subsection (a), on or before which

Part V Ch. 41–48A Zoning, etc.

(b)   No taxes shall be returned by any tax collector where the owner is paying his delinquent taxes under the provisions of any act of Assembly abating penalties, interest and costs, unless there has been a default in payment by the owner, in which case or at any time when a yearly return is being made after any such default, return shall be made of the balance due as fixed by the act of Assembly abating penalties, interest and costs, or either. The lien of all such taxes shall be continued for the purpose of making a return thereof and collecting the same under the provisions of this act.

Part IV Ch. 36–40 Insurance

(a)   It shall be the duty of each receiver or collector of any county, city, borough, town, township, school district or institution district taxes to make a return to the bureau on or before the last day of April of each year, but no earlier than the first day of January of that year. The return shall be typewritten on a form provided by or acceptable to the county and shall include a list of all properties against which taxes were levied, the whole or any part of which were due and payable in the calendar year immediately preceding and which remain unpaid, giving the description of each such property as it appears in the tax duplicate, and the name and address of the owner as it appears in the tax duplicate, together with the amount of such unpaid taxes, penalties and interest due to but not including the first day of the month following the return. Such return shall be accompanied by a signed affidavit that the return is correct and complete. Interest shall be charged on taxes so returned from and after but not before the first day of the month following the return. Interest shall be charged at the rate of nine per centum (9%) per annum.

Part III Ch. 23–35 Mortgages

§ 306.  Return of property and delinquent taxes; interest; settlements by tax collectors

Part II Ch. 15–22 Deeds

§ 305.  Claims against property owned by joint tenants and tenants in common When any property is owned by joint tenants or tenants in common, and any such tenant has paid his proportionate amount of taxes due thereon, any taxing district may cause to be filed a claim for the unpaid taxes against the estate, title and interest of the owners who have not paid their proportionate share of the taxes. Whenever a claim for taxes shall have been filed against property owned by joint tenants or tenants in common, the bureau shall release the estate, title and interest of any joint tenant or tenant in common from said claim, upon payment by said joint tenant or tenant in common of his proportionate share of the taxes included therein with proportionate costs. When any property is owned by more than one owner, or part owner, and the estate and title of any owner, or part owner, is either exempt from taxation or has not been made subject by law to taxation, the estate or title of such owner or owners as may not be exempt from taxation, or as has been made subject thereto, shall be subject to taxes in the same manner as any other property liable to assessment for taxes, the claim being filed against all the estate, title and interest of the owner or owners subject to the lien.

Part I Ch. 1–14 Brokers

on such property, the amount of all municipal claims certified to the bureau under section 60514 and costs of sale.

Table of Contents

PART VI

12/22/21 10:45 AM

§ 307

REAL ESTATE TAX SALE LAW

tax collectors must make the return to the bureau required by this section. No return shall be made or return date established before the first day of January following the year when taxes first become due and payable as specified on the tax notice, and no return date shall be established which is later than the last day of April immediately following the year in which the taxes became due. The single return date established and fixed by said resolution shall be uniform within the county for all taxes returnable under the provisions of this act. Whenever the resolution establishes and fixes a return date, interest shall be charged on taxes so returned from and after the first day of the month immediately following the month in which the return is required. Interest shall be charged at the rate of nine per centum (9%) per annum. § 307.  Filing claims (a)  Claims for taxes against property so returned must be entered by the bureau in the office thereof in suitable dockets. (b)   Not later than the thirtieth day of June, each year, the bureau shall make up from the tax returns received from the taxing districts, as aforesaid, a claim for each property returned, which shall contain the unpaid taxes against such property, which are due all taxing districts as found in the various returns. Such claims shall be entered by the bureau in a suitable claim docket and may be in the form of written or typewritten lists. A claim shall cover the unpaid taxes due all taxing districts, but the amount due each taxing district shall nevertheless be shown separately. A number of years’ taxes of different kinds may be included in one claim. Any claims shall be amendable by leave of the bureau upon notice to the defendant as the bureau may require. § 308.  Notice of filing of returns and entry of claim (a)   Not later than the thirty-first day of July of each year, the bureau shall give only one notice of the return of said taxes and the entry of such claim in one envelope for each delinquent taxable property, by United States registered mail or United States certified mail, return receipt requested, postage prepaid, addressed to the owners at the same address listed on the form returned by the tax collector for taxes that are delinquent. In the case of property owned by joint tenants, tenants in common, or husband and wife as tenants by the entireties, the bureau may give the notice required by this section by forwarding only one notice addressed to such joint tenants, tenants in common or husband and wife at the same post office address. If the owner of the property is unknown and has been unknown for a period of not less than five years, such notice shall be given only by posting on the property affected. If no post office address of the owner is known or if a notice mailed to an owner at such last known post office address is not delivered by the postal authorities, then notice as herein provided shall be posted on the property affected. If the property owner has entered into an agreement with the bureau for the payment of the delinquent taxes, the posting is not necessary. Each mailed and posted notice shall, (1) show all the information shown on the claim entered, (2) state that if payment of the amount due the several taxing districts for said taxes is not made to the bureau on or before the thirty-first day of December next following, and no exceptions thereto are filed, the said claim shall become absolute, (3) state that on July first of the year in which such notice is given a one (1) year period for discharge of tax claim shall commence or has commenced to run, and that if full payment of taxes is not made during that period as provided by this act, the property shall be advertised for and exposed to sale under this act, and (4) state that there shall be no redemption after the actual sale. (a.1)   In addition to the requirements of subsection (a)(1), (2), (3) and (4), each mailed and posted notice shall state that the owner of any owner-occupied real estate can apply for an extension of the period for discharge of tax claim for up

900

gtb-parealestate22-all.indb 900

12/22/21 10:45 AM

REAL ESTATE TAXATION

Ch. 53

Part V Ch. 41–48A Zoning, etc. Part VI Ch. 49–56 Taxation Part VII Ch. 57–63 Litigation Part VIII Ch. 64–67 L/T Part IX Ch. 68–72 Condos, etc. Index

gtb-parealestate22-all.indb 901

Part IV Ch. 36–40 Insurance

901

Part III Ch. 23–35 Mortgages

15. 72 P.S. § 5860.502a. 16. 72 P.S. § 5860.503a.

Part II Ch. 15–22 Deeds

WARNING “IF YOU FAIL TO PAY THIS TAX CLAIM OR FAIL TO TAKE LEGAL ACTION TO CHALLENGE THIS TAX CLAIM, YOUR PROPERTY WILL BE SOLD WITHOUT YOUR CONSENT AS PAYMENT FOR THESE TAXES. YOUR PROPERTY MAY BE SOLD FOR A SMALL FRACTION OF ITS FAIR MARKET VALUE. If YOU PAY THIS TAX CLAIM BEFORE JULY 1, 19__, YOUR PROPERTY WILL NOT BE SOLD. IF YOU PAY THIS CLAIM AFTER JULY 1, 19__, BUT BEFORE ACTUAL SALE, YOUR PROPERTY WILL NOT BE SOLD BUT WILL BE LISTED ON ADVERTISEMENTS FOR SUCH SALE. IF YOU HAVE ANY QUESTIONS, PLEASE CALL YOUR ATTORNEY, THE TAX CLAIM BUREAU AT THE FOLLOWING TELEPHONE NUMBER __________, OR THE COUNTY LAWYER REFERRAL SERVICE.” (c)   The costs of such mailed and posted notices shall be part of the costs of the proceedings and shall be paid by the owner the same as other costs. § 309.  Contents of claims entered All claims for taxes returned, made up as a claim and entered in the claim docket in the bureau shall set forth: (a)   The names of the taxing districts for which filed, (b)   Except when the owner of the property is unknown and has been unknown for a period of not less than five years, the name of the owner and the owner’s last known address, including the zip code by virtue of the knowledge and information possessed by the bureau, by the tax collector for the taxing district making the return and by the county office responsible for assessments and revisions of taxes, of the property against which it is filed, (c)   A description of the property against which the claim is filed sufficient to identify the same. A description of the property shall be deemed sufficient if it contains (1) a reference to a record of a deed or other instrument of conveyance which describes the property, or (2) a reference to the number or number and block of the property in a plan, recorded in the office of the recorder of deeds of the county, and the record of such plan, or (3) a reference to the number on any lot and block plan officially adopted by a taxing district, or (4) a statement of the street and number of the property as officially designated by public authorities of a taxing district as of the time the property was assessed, or (5) where the property is not identified by reference to the record of a deed, or other instrument of conveyance, and may not be identified by street and number, or by recorded plan, or by a lot and block plan, a statement of the approximate acreage of the property and the name of at least one (1) owner of adjoining property, if such statement is accompanied by information showing the character of and use to which the property is devoted, as for instance “dwelling and lot,” “vacant lot,” “vacant land” or “hotel, restaurant, apartment house, office building, bank build-

Part I Ch. 1–14 Brokers

to twelve (12) additional months under and subject to the provisions of sections 502.115 and 503.1.16 (b)   Notice given in the manner provided by this section shall constitute proper service on the owner. A statement in the claim entered that due notice of the same was given shall be conclusive evidence that notice was given as required by law. The notice given in the manner provided by this section shall contain the following provision which shall be conspicuously placed upon said notice and set in at least 10-point type in a box as follows:

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ing, manufacturing plant, industrial plant and the lands belonging thereto,” or “farm and the buildings thereon,” or “plant nursery and buildings thereon,” or “forest or woodland,” or “wasteland,” or “coal, oil or other mineral severed from the surface,” etc., or intelligible abbreviations thereof. A variation in the description of the property given in the claim filed from that shown on the assessment for tax purposes shall not constitute an irregularity and shall not invalidate the claim. The aforesaid description shall not be deemed exclusive. (d)   The year or years, period or periods, for which the respective taxes were levied, and the amount of taxes due for each year, or period, and the penalties and interest due thereon at the time of filing. (e)   That due notice of the returns of such taxes, the entry of the claim and that the same would become absolute, if no exceptions were filed, was given to the owner or posted on the property in the manner required by law. Said claim shall be entered in the office of the bureau in the proper claim docket and be signed by or have stamped thereon a facsimile signature of the director. § 310.  Property included in claims The property described in tax claims shall include the whole property against which the tax was levied. In all cases where a tax is levied on separate and distinct properties as one estate, the taxing district shall, upon request before a claim therefor is entered in the claim docket, apportion the same rateably upon the separate and distinct properties. The bureau to which any such tax has been returned, on proof that the properties were separate and distinct at the time the tax was levied, shall apportion the charge against such properties. When apportioned they shall be treated and considered in all respects as if separate and distinct claims had been entered. Payment and satisfaction of any one portion may be made without prejudice to the claim as against the rest. § 311.  Claims become absolute On the first day of January next following the notice hereinbefore prescribed, if the amount of the tax claim referred to in the notice has not been paid, or no exceptions thereto filed, the claim shall become absolute. Every such claim shall bear interest as hereinbefore provided to the date of payment, or date of sale held under the provisions of this act, except in the case of claims where the owner is paying his taxes under the provisions of any law abating penalties, interests and costs, or either, in which case the claim shall bear no interest and costs, unless there is a default in payment, in which case interest shall run on the amount due on the claim at the time of default, and penalties, interest and costs abated shall be added as provided by the act of Assembly abating the same. § 312.  Lien lost if not returned to bureau Any such claim for taxes, if such taxes were returned to the bureau within the time required by this act, shall remain a lien upon said property until fully paid and satisfied, or until said property shall be sold as provided in this act. If a tax is not returned to the bureau within the time required by this act, its lien on the property shall be wholly lost. But where a tax has not been returned as required by this act, a taxing district may nevertheless proceed, by action in assumpsit, to recover the amount of any taxes due and owing by an owner at any time within six (6) years after the taxes first became due. § 313.  Substitution of defendants Any taxing district may before or after return of a claim to the bureau, but before such claim shall become absolute on its own motion, strike off the name of any defendant in any claim filed, and may substitute as a defendant any person who may have an interest in the property as owner, or who is the personal representative of an owner who has died, but such substitution shall always be without

902

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Ch. 53

Part V Ch. 41–48A Zoning, etc. Part VI Ch. 49–56 Taxation Part VII Ch. 57–63 Litigation Part VIII Ch. 64–67 L/T Part IX Ch. 68–72 Condos, etc. Index

gtb-parealestate22-all.indb 903

Part IV Ch. 36–40 Insurance

903

Part III Ch. 23–35 Mortgages

17. 72 P.S. § 5860.311.

Part II Ch. 15–22 Deeds

§ 314.  Proceeding to attack validity of claim (a)   Any claim for taxes may, prior to the time it becomes absolute, be set aside or reduced in amount by the bureau with which it is filed if the claim is found invalid in whole, or in part, by reason of the fact that the taxes for which the claim was entered were paid in whole, or in part, to a proper officer or agent of the taxing district, or is found invalid, in whole or in part, for any other reason not involving a question which could have been raised by an appeal provided for by law. Any such claim prior to the time it becomes absolute may be set aside or reduced in amount by the court of common pleas on appeal, as hereinafter provided, for any reason which constitutes a just, sufficient and valid defense to the claim in whole, or in part, except want of notice of the return and entry of the claim by the bureau, or for any dispute in the amount of the claim which involves the amount of the assessed valuation of the property or the validity of the tax levied. (b)   Any defendant in any such claim, at any time before the day fixed for the claim to become absolute under section 311,17 may file with the bureau exceptions to the claim as entered, or to any part of the claim. The bureau, after giving due notice to the taxing districts interested, shall hold a hearing thereon and either disallow the exceptions or allow the exceptions in whole, or in part, and strike off or reduce the claim in accordance with the evidence produced and the powers of the bureau as hereinbefore prescribed. If the defendant is aggrieved by the decision of the bureau he may, within fifteen (15) days after notice thereof, appeal by petition to the court of common pleas of the county setting forth the defense he has to the claim, or any part thereof, and the refusal of the bureau to allow his exceptions and strike off or reduce the amount of the claim. Thereupon the court shall grant a rule on the taxing district or districts to show cause why the claim should not be set aside or reduced in amount as prayed for in the petition. The petitioners shall give notice of such proceeding to the bureau. (c)  The issues raised by the petition and the answer thereto by the taxing district or districts shall be tried by the court or a jury. (d)  The petition and the answer or answers thereto, if an issue of fact is raised, shall be endorsed with a statement signed by the party or his attorney in the following form: “Jury trial demanded,” or “Jury trial waived.” The endorsement of “jury trial waived” on both petition and answer or answers shall be deemed a waiver of a trial by jury of every issue in the proceeding. (e)  No taxpayer shall have the right to proceed by petition to the court of common pleas to open a claim absolute under the provisions of this act, except on the ground of payment of the tax involved or failure to receive notice. The remedy provided by this section to contest a tax claim entered shall be deemed exclusive except as herein otherwise provided. (f)  After verdict by the court or the jury, the court shall, by its final order, either affirm or set the claim aside, or reduce the amount of the claim and fix the proper amount thereof in accordance with the verdict, and shall assess the costs of the proceedings as it shall determine. Upon final order of the court, or

Part I Ch. 1–14 Brokers

prejudice to any intervening rights, and in such cases notice of the proposed substitution shall first be given by the taxing district to all parties in interest.

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upon final disposition thereof upon appeal, if the entire claim has not been set aside, such return shall become absolute. § 315.   Claims; dockets; satisfaction and public record lists (a)  Every return made to and every claim made up by the bureau and the result of every proceeding thereon, entered in accordance with this act, shall be docketed in appropriate dockets in the office of the bureau suitably indexed and when so entered shall continue the lien of the tax against the property charged with the tax. When a claim is stricken off or reduced or satisfied by payment or a sale has been held of the property covered by the claim, the director shall cause a note thereof to be made on such docket and index and shall authenticate the same. (b)  In addition, the bureau shall maintain as a public record a list of all properties against which taxes were levied, the whole or any part of which were due and payable in a prior year and which remain unpaid. This list shall describe the property and identify its location, provide the name and last known address, including the zip code of the owner of the property, as determined by the knowledge and information possessed by the bureau, the tax collector for the taxing district that made the return and the county office responsible for making assessment and revisions of taxes, and the amount of unpaid taxes, penalties and interest due, for all years other than the current tax year. If taxes on the list are paid or another settlement had been agreed to or if a tax sale of the property is held, this fact shall be noted on the list. (c)   The bureau may report any nonpayment of taxes, including liens, to one or more consumer reporting agencies, as defined by the Fair Credit Reporting Act (Public Law 91-508, 15 U.S.C. § 1681 et seq.). § 316.  Assignment of claims (a)   A taxing district may assign some or all of its portion of the claims, either absolutely or as collateral security, for an amount to be determined by the taxing district and under such terms and conditions upon which the taxing district and the assignee shall agree in writing. For the purpose of this subsection, a claim docketed by the bureau may be divisible so that one taxing district may assign its portion of the claim, but another taxing district may retain its portion. No assignment shall become effective until at least thirty (30) days after the delivery to the bureau of a copy of the resolution authorizing the assignment. Upon such an assignment, the following shall apply: (1)   Upon written notice provided by the taxing district or the assignee, the bureau shall record notice of the assignment on the docket. (2)   Assignment shall not be deemed a discharge or satisfaction of the claim or the taxes giving rise to the claim, and the lien of the assigned claim and taxes giving rise to the claim shall continue in favor of the assignee. (3)   The assignee shall have and enjoy the same rights, privileges and remedies as were held by the taxing district with respect to the assigned claim and the tax giving rise to the claim under the provisions of this act or any other laws applicable to the collection and enforcement of tax claims, including the right of the taxing district to receive the distribution of moneys collected pursuant to section 205(c.1)18 and the proceeds of a tax sale pursuant to section 205(d) and (f).

18. 72 P.S. § 5860.205.

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Part VI Ch. 49–56 Taxation Part VII Ch. 57–63 Litigation Part VIII Ch. 64–67 L/T Part IX Ch. 68–72 Condos, etc.

5860.201. 5860.207. 5860.309. 5860.605. 5860.501. 5860.612-1. 5860.601. 5860.619. 5860.619a.

Index

905

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Part V Ch. 41–48A Zoning, etc.

§ § § § § § § § §

Part IV Ch. 36–40 Insurance

P.S. P.S. P.S. P.S. P.S. P.S. P.S. P.S. P.S.

Part III Ch. 23–35 Mortgages

72 72 72 72 72 72 72 72 72

Part II Ch. 15–22 Deeds

19. 20. 21. 22. 23. 24. 25. 26. 27.

Part I Ch. 1–14 Brokers

(4)   The county may exercise its authority under section 201.119 to provide for the assignee to exercise all of the duties of a bureau in connection with the collection and enforcement of the tax claims assigned or, if the county continues to operate a bureau or has provided under section 201.1 for some other person to perform some or all of the functions of the county, may provide by contract with the assignee for the division or sharing of such duties between the bureau or other person and the assignee with respect to the tax claims assigned. (5)   Assignment shall not affect the five per centum (5%) commission on tax claim collections payable to the bureau under section 205(c) and reimbursement of county charges under section 207(a)20 unless the taxing district and the bureau agree with respect to any such assignment in writing as follows: (i)  The bureau’s five per centum (5%) commission under section 205(c) with respect to such portion shall be paid in part out of the proceeds of assignment of such portion. (ii)  No further commission shall be paid to the bureau with respect to such portion until such time as the assignee shall have received, pursuant to section 205(c.1) or (d), an amount equal to the proceeds of the assignment of such portion paid by the assignee. (iii)   After the assignee has received, pursuant to section 205(c.1) or (d), an amount equal to the proceeds of the assignment of such portion paid by the assignee, the bureau shall be paid the remainder of the bureau’s five per centum (5%) commission in such manner and at such times as the taxing district and the bureau shall have agreed in writing. (6)  An owner of property shall have the same rights and defenses under this act and any other laws applicable to the collection and enforcement of tax claims that the owner held against the assignor. (7)   References in this act to a taxing district shall be deemed to be references to the assignee of the taxing district with respect to assigned claims, except for identification of the taxes under section 30921 and recordation of taxes and certification of municipal claims under section 60522 and except for references to any actions taken by the taxing district before the assignment or to other taxes and claims of the taxing district that have not been so assigned. (8)  With respect to the assigned taxes and claim, the assignee shall be deemed the political subdivision for purposes of section 50123 and a taxing authority for purposes of section 612.124, unless otherwise agreed to in writing between the assignee and the taxing districts. (9)   An assignee shall not be deemed a municipality for purposes of section 601(d) and (e),25 61926 or 619.1.27 (b)   A claim assigned pursuant to this section may be further assigned, with the subsequent assignee having and enjoying the same rights, privileges and

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remedies as its assignor. Notice of any subsequent assignment shall be recorded pursuant to subsection (a)(1). § 401.  Petition for sequestrator After the expiration of twenty (20) days from the time the claim becomes absolute, except in cases where the property is essential to the business of a quasipublic corporation, the court shall, on the petition of the bureau, appoint it as sequestrator of the rents, issues and profits of the property bound by the claim. § 402.  Authority for petition The bureau may present any such petition on its own motion, and shall do so at the request, in writing, of any taxing districts. § 403.  Procedure to obtain possession If either the owner against whom the claim is entered, being in possession of the property sequestered, or the party in possession, refuses to pay a fair rent to the sequestrator, the court shall, upon the petition filed, grant a rule on the property owner or party in possession to show cause why possession of the property should not be delivered to the sequestrator. The petition and rule shall be served on the owner or party in possession in such manner and within such time as the court may direct. If the rule is made absolute, the court shall award a writ in the nature of a writ of habere facias possessionem directed to the owner or party in possession, commanding him to deliver possession to the sequestrator within fifteen (15) days thereafter, unless such property is occupied by the owner and his family for a home, in which case he shall be commanded to deliver possession within thirty (30) days thereafter: Provided, That if one or more persons in the family of the owner occupying the property as a home are receiving assistance from any public agency, the bureau, as sequestrator, may elect to lease the property, under the provisions of section four hundred four of this act,28 to the owner or other member of his family dwelling therein, for as long as the sequestrator is paid monthly a sum at least equal, but not limited to, such portion of the assistance grant as the Department of Public Assistance provides for the payment of taxes, insurance and necessary repairs, and for sixty (60) days after the removal of said persons from the public assistance rolls. § 404.  Powers of sequestrator A sequestrator shall have power to retain possession of the property, as sequestrator, until all taxes owing to the several taxing districts shall have been collected or paid. He shall have power (a) to lease the property for a period not exceeding one (1) year, with the usual privilege of renewal or termination thereof upon three (3) months’ notice, (b) to make such repairs to the property as may be reasonably necessary to restore and maintain it in a tenantable condition, and to carry insurance on such property, (c) to advertise the property for rent, (d) to collect the costs of repairs, advertising and commissions of rental agents from rentals collected or from a redeeming owner, (e) to sell and dispose of growing crops, and (f) to appoint a licensed real estate broker or agent, as agent to collect the rentals of the property, and pay such agents the customary commissions for rent collections. The bureau shall not, in any case, without prior approval of the county commissioners, incur any expense for the maintenance, repair or alteration of any property in excess of eighty per centum (80%) of the amount of rental to be received from such property within a period of one (1) year under a lease entered into at or before the time such expense is incurred. All commissions, costs and necessary expenses shall be deducted from the rents collected before paying the net balance toward taxes.

28. Section 5860.404 of this title.

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Part IV Ch. 36–40 Insurance Part V Ch. 41–48A Zoning, etc. Part VI Ch. 49–56 Taxation Part VII Ch. 57–63 Litigation Part VIII Ch. 64–67 L/T Part IX Ch. 68–72 Condos, etc. Index

gtb-parealestate22-all.indb 907

Part III Ch. 23–35 Mortgages

907

Part II Ch. 15–22 Deeds

29. Sections 5860.101 to 5860.803 of this title.

Part I Ch. 1–14 Brokers

§ 405.  Return of possession Any owner of the property may redeem it from the sequestrator and be again entitled to possession thereof upon payment of the amount of taxes then owing upon the property after the payment of commissions, costs and expenses of the sequestration proceedings. Upon payment of all taxes and costs or the satisfaction of the taxes and costs by collection of rentals, the sequestrator shall transfer possession of the property to the owner, subject to any existing lease given by the sequestrator, which lease shall be assigned to the owner. The sequestrator shall in such cases enter satisfaction on the record of the tax claim. In any case where it appears to the sequestrator that property taken into possession does not yield any revenue or not sufficient revenue to continue in possession thereof, he may, with the consent of the court, return possession of the property to the owner subject to any existing lease given by the sequestrator, and thereafter such property shall be sold at the next sale held at least ninety (90) days after such return of possession in the manner provided by this act. § 406.  General powers and remedies of sequestrator Sequestrators appointed under this act29 shall have and exercise all the powers, and shall be entitled to use all remedies conferred by law upon sequestrators in other proceedings so far as applicable. § 501.  Discharge of tax claims (a)   Any owner, his heirs or legal representatives, or any lien creditor, his heirs, assigns or legal representative, or other interested person or, with the approval of the lienholding political subdivision, disinterested person may cause the discharge of tax claims and liens entered against the property by payment to the bureau of the amount of the aforesaid claim and interest thereon, the amount of any other tax claim or tax judgment due on such property and interest thereon, and the amount of all accrued taxes which have been returned and remain unpaid, the record costs, including pro rata costs of the notice or notices given in connection with the returns or claims calculated under paragraph (1), (2) or (3). The county may give the right of first refusal for discharge of tax claims under this section to the local redevelopment authority, municipality or its designated agent. The subject property shall be removed from exposure to sale and shall not be listed in any advertisement relating to sale of property for delinquent taxes if, prior to July 1 of the year following the notice of claim, payment is made in any of the following amounts: (1)   An amount equal to the sum of: (i)   the outstanding taxes entered on notice of claim and interest due on those taxes; (ii)   the amount of any other tax claim on or tax judgment against such property and interest on that claim or judgment; (iii)  the amount of all accrued taxes which have been returned and remain unpaid; and (iv)   the record costs, including pro rata costs of notice given in connection with returns and claims. (2)  An amount less than the total amount due under paragraph (1) if the political subdivision agrees to accept that amount. If payment is made after July 1 of the year following the notice of claim, but before the actual sale of the property, the property shall not be sold, but the property and name of owner may appear in an advertisement relating to the sale of property for delinquent taxes. (3)   With respect to two (2) or more claims or judgments transferred by a

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political subdivision to a person, an amount less than the aggregate amount due for such claims or judgments under paragraph (1) if the political subdivision agrees to accept that amount. (a.1)   Upon receipt of payment or upon certification to the bureau that payment of all taxes and other charges otherwise payable to the bureau under this act has been made to a taxing district, the bureau shall issue written acknowledgement of receipt and a certificate of discharge and shall enter satisfaction on the record. All payments received shall be distributed to the taxing district entitled thereto not less than once every three (3) months. (b)  When any property is discharged from tax claim by payment by a lien creditor, or his heirs, assigns or legal representatives, or by any person, whether interested or disinterested, the certificate shall be issued to the person making the payment and shall state the fact of the discharge, a brief description of the property discharged and the amount of the discharge payment. This certificate may be entered in the office of the prothonotary as a judgment against the owner of the property for the entire amount due to the political subdivision, regardless of whether the property was discharged from tax claim by payment under subsection (a)(1), (2) or (3). The lien of any such judgment shall have priority over all other liens against such property in the same manner and to the same extent as the taxes involved in the discharge. (b.1)  In addition to any other remedy provided by law, a certificate under subsection (b) enables the person for whose benefit judgment was entered to proceed by action in assumpsit and recover the amount of tax due by an owner and to recover related attorney fees and court costs and reasonable collection costs related thereto. An action under this subsection must be commenced within six (6) years after the taxes first became due. (c)   There shall be no redemption of any property after the actual sale thereof. (d)   Nothing in this section shall preclude the bureau from retaining the five per centum (5%) commission on all money collected by the bureau and any interest earned on money held by the bureau as provided in section 205(c). (e)  If any interested or disinterested person holding a judgment certificate sells real or personal property subject to a judgment certificate at a judicial or a private sale and the proceeds of the sale are less than the amount of the judgment certificate and any municipal or other claim with liens on the property that are coequal or senior to the lien of the person holding the judgment certificate, the proceeds of the sale shall be distributed in the following order of priority: (1)   first to the costs of enforcement and sale, including attorney fees or commissions, incurred by the person holding the judgment certificate in enforcing its rights against the property; (2)   to any and all claims senior in priority to that of the holder of the judgment certificate in proportion to such claims; and (3)  the balance to all municipal claims coequal in lien priority with the judgment certificate, including the claim to which the judgment certificate relates, in proportion to such claims. § 502.  Repealed. 1993, Dec. 22, P.L. 525, No. 76, § 2, imd. effective § 502a.  Option of county to extend period for discharge of tax claim A county may at the option of its commissioners enact legislation extending the period for discharge of tax claim for real estate taxes for taxpayers for up to twelve (12) additional months. § 503.  Repealed. 1993, Dec. 22, P.L. 525, No. 76, § 4, imd. effective § 503a.  Extension of period for discharge of tax claim (a)  If the county commissioners of the county enact legislation pursuant to section 502.1,30 then the county commissioners, acting through the county tax

908

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Ch. 53

Part IV Ch. 36–40 Insurance Part V Ch. 41–48A Zoning, etc. Part VI Ch. 49–56 Taxation Part VII Ch. 57–63 Litigation Part VIII Ch. 64–67 L/T Part IX Ch. 68–72 Condos, etc. Index

gtb-parealestate22-all.indb 909

Part III Ch. 23–35 Mortgages

909

Part II Ch. 15–22 Deeds

30. 72 P.S. § 5860.502a. 31. 72 P.S. § 5860.603.

Part I Ch. 1–14 Brokers

claim bureau determine that a tax claim or tax claims constitute severe hardship to the taxpayer and that extenuating circumstances beyond the taxpayer’s control have caused the tax claim or claims to be filed or remain unpaid and there is a reasonable probability that the taxpayer will be able to meet the indebtedness if granted an extension of the period for discharge of tax claim for up to twelve (12) additional months, they shall have the authority in the event of an application for extension submitted by the taxpayer to: (1)  Extend the period for discharge of tax claim for owner-occupied real estate for up to twelve (12) additional months: Provided, That the taxpayer enters into an equitable apportioned payment schedule consistent therewith. (2)   Abate, suspend, continue or stay the tax sale proceedings pending with respect to the owner-occupied residential real estate. (b)   The payment schedule authorized under subsection (a) shall permit the taxpayer to make payment of the amount due in at least four (4) separate payments, spaced at least thirty (30) days apart, and shall require the initial payment to be not more than twenty-five per centum (25%) of the total indebtedness calculated to be due under the schedule. However, the provisions of this subsection and of section 60331 notwithstanding, the county commissioners may, in their discretion, in special hardship cases, establish payment schedules specifically suited to the capabilities of the particular affected taxpayer. (c)  The application for extension authorized in clause (1) of subsection (a) shall be made in a form as shall be provided by the bureau. Within thirty (30) days of receipt of the application, the director of the bureau shall either allow or disallow the extension. If the extension is allowed, the bureau shall set the length of the extension. Any taxpayer aggrieved by the decision of the bureau may, within fifteen (15) days after notice thereof, appeal to the county court of common pleas for de novo review of the application. (d)  For the purpose of this section, the phrase “extenuating circumstances” means: (1)   Serious physical illness or injury or a combination of the illness or injury with a state of prolonged unemployment if: (i)  the taxpayer is a permanent resident of the Commonwealth, (ii) the illness or injury, or combination thereof, occurred or persisted during any of the tax years for which the delinquent taxes were assessed or during the year immediately preceding any such delinquency, and (iii) the illness or injury, or combination thereof, has been a substantial cause of the taxpayer’s failure to pay any such delinquent tax or taxes to the date of application for relief under this section. (2)   Unemployment if: (i) the taxpayer is a permanent resident of the Commonwealth, (ii) the unemployment occurred or persisted during any of the tax years for which the delinquent taxes were assessed or during the year immediately preceding any such delinquency, and (iii) the unemployment has been a substantial cause of the taxpayer’s failure to pay any such delinquent tax or taxes to the date of application for relief under this section. (e)   For the purpose of this section, an extension of the period for discharge of tax claim shall only apply to one (1) owner-occupied property per taxpayer. § 504.  Extension for elderly (a)  The county commissioners may enact legislation which provides that, if the county commissioners, acting through the bureau, determine or have reason

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§ 504

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to believe that a tax claim or tax claims relate to residential real estate which is owned and occupied solely by a person sixty-five (65) years of age or older or is owned and occupied jointly by persons all of whom are sixty-five (65) years of age or older and there is a possibility that such owner is not fully informed as to the tax claim or claims and the effect of the impending sale, or otherwise needs assistance to prevent the property from going to sale, the period for discharge of the tax claim or claims may be extended or payment of the tax claim or claims may be deferred to a later time. To be eligible for a deferral of tax, an applicant’s household income must be equal to or less than the maximum household income necessary to qualify for a property tax or rent rebate under the act of March 11, 1971 (P.L. 104, No. 3), known as the “Senior Citizens Rebate and Assistance Act.”32 (b)  Legislation enacted as authorized by subsection (a) may authorize the bureau, either through its own action or in cooperation with the Area Agency on Aging or any other organization, group or individuals, to examine documents of record, require documentation of household income, conduct inquiries or take any other action to determine if the owner of the property to which the tax claim relates is sixty-five (65) years of age or older. If it is determined that the owner is sixty-five (65) years of age or older, meets the income requirements of subsection (a) and otherwise qualifies for special consideration under this section, such legislation may authorize any of the following insofar as such action will not ultimately result in loss to the bureau or the taxing district: (1)   Extend the period for discharge of the tax claim or claims for up to three (3) additional months if it appears to the bureau that suitable arrangement for payment of the tax claim or claims can be made within that period. (2)   If it is determined that the owner desires to continue to reside in the residence and cannot afford to pay the tax claim or claims and continue to live in a comfortable lifestyle, stay the tax sale and defer payment of the tax claim or claims until such time as title to the property is transferred or the owner is no longer the sole occupant of the property. Any such tax deferral program shall include requirements relating to the income limitations set forth in subsection (a), value of the property, owner’s equity in the property, insurance of the property and other requirements deemed necessary for entitlement to the deferral and for protection of the tax claim or claims. All taxes so deferred shall constitute a prior lien on the property in favor of the taxing district and shall attach as of the date and in the same manner and shall be collected as other liens for taxes, but the taxes shall be due and payable only when title to the property is transferred or the eligible owner is no longer the sole occupant. (3)   If it is determined that the owner does not desire to continue to reside in the residence, or that a deferral of tax pursuant to paragraph (2) would jeopardize ultimate recovery of the tax claim or claims in full, and it appears that the owner has equity in the residence which would be lost at a regular tax sale, a special sale of the residence can be arranged. At least two independent appraisals of the residence shall be obtained, and the residence shall be placed on the market at a price midway between such appraisals for a period not to exceed eleven (11) months from the date the property was initially scheduled for sale. If the property is sold within that period, the proceeds shall be distributed in the priority stated in section 205(d)33 and confirmed as provided in section 205(e).34 Cost of the appraisals and seller’s costs of the sale shall be borne by the owner. If the property is not sold within that period, the property shall be sold at the next regularly scheduled tax sale, and costs incurred shall be recouped by the bureau at the sale. 32. 72 P.S. § 4751-1 et seq. 33. 72 P.S. § 5860.205(d). 34. 72 P.S. § 5860.205(e).

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Part VIII Ch. 64–67 L/T Part IX Ch. 68–72 Condos, etc. Index

gtb-parealestate22-all.indb 911

Part VII Ch. 57–63 Litigation

911

Part VI Ch. 49–56 Taxation

5860.306. 5860.619a. 5860.601. 5860.619.

Part V Ch. 41–48A Zoning, etc.

§ § § §

Part IV Ch. 36–40 Insurance

P.S. P.S. P.S. P.S.

Part III Ch. 23–35 Mortgages

72 72 72 72

Part II Ch. 15–22 Deeds

35. 36. 37. 38.

Part I Ch. 1–14 Brokers

(c)   All taxes that are deferred under this act shall bear simple interest from the date they become due and payable until the date they are paid. The interest rate per annum for each calendar year shall be the rate established by section 30635 of this act. (d)   The procedures set forth in this section are not intended to be exclusive, but are intended to express the intent of the General Assembly to permit county commissioners to enact whatever legislation they may deem beneficial to senior citizens to prevent them from losing their residences, or losing equity in their residences, as a result of unpaid real estate taxes, to the extent that such measures may be enacted pursuant to section 2(b)(ii) of Article VIII of the Constitution of Pennsylvania, but subject to the condition that such legislation does not jeopardize the ultimate receipt in full of taxes imposed by the taxing districts. §§ 505, 506.  Repealed. 1993, Dec. 22, P.L. 525, No. 76, § 6, imd. effective § 501-A.   Duty to register. (a)  General rule.—A person that intends to bid at a scheduled upset sale or judicial sale must appear and register at the bureau not less than 10 days before the scheduled upset sale or judicial sale. (b)   Bids on multiple properties.—Except if a person intends to bid on more than one property at scheduled sales conducted on the same day in the same county, each time that a person intends to bid at a scheduled sale, the person must comply with subsection (a). (c)  Fee.—A county may establish a fee for filing an application to register under this article. § 502-A.  Application. In order to register for a scheduled upset sale or judicial sale, the person must submit an application that includes the following information: (1)  If the applicant is an individual, the individual’s name, residential address and phone number. (2)  If the applicant is not an individual, the applicant’s name, including the name of all officers, business address and phone number. (3)  If the applicant is a limited liability company, the names, business addresses and phone numbers of all members, managers and any other persons with any ownership interest or right in the limited liability company. (4)  An affidavit stating that the applicant: (i)  is not delinquent in paying real estate taxes to any taxing district in this Commonwealth and that the applicant has no municipal utility bills, as defined in section 619.1(b),36 that are not more than one year outstanding anywhere in this Commonwealth; (ii)  is not bidding for or acting as an agent for a person who is barred from participating in the sale under section 601(d);37 (iii)  has not, within the three years preceding the filing of the application, engaged in a course of conduct or permitted an uncorrected housing code violation, as defined in section 619(e), to continue unabated after being convicted of an uncorrected housing code violation, as defined in section 619(e),38 and has not either: (A)  failed to maintain property owned by the applicant in a reasonable manner such that the property posed a threat to health, safety or property; or

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§ 503-A

REAL ESTATE TAX SALE LAW

(B)  permitted the use of property in an unsafe, illegal or unsanitary manner such that the property posed a threat to health, safety or property; and (iv)  understands that an applicant who signs a bidder registration application knowing that it contains a false statement and who causes it to be filed with the bureau shall be subject to prosecution for the commission of a misdemeanor of the second degree in violation of 18 Pa.C.S. § 4904(a) (relating to unsworn falsification to authorities). (5)  If the applicant is not an individual, documentation that the signer has the authority to act on behalf of the applicant, and the individual appearing in person to register, as required under section 501-A(a),39 is the signer of the application or otherwise authorized to act on behalf of the applicant. § 503-A.   List of registered bidders. A bureau shall provide a list of completed applications received under section 502-A to all municipalities within the county by mail, email or facsimile at least five days prior to the upset sale or judicial sale. The list shall provide the name, address and phone number of the applicant. For registered bidders that are not individuals, the bureau shall provide to all municipalities the names, business addresses and phone numbers of all officers, members, managers and any other persons with an ownership interest or right in the applicant as disclosed in the application. § 601.  Date of sale (a)   The bureau shall schedule the date of the sale no earlier than the second Monday of September and before October 1, and the sale may be adjourned, readjourned or continued. No additional notice of sale is required when the sale is adjourned, readjourned or continued if the sale is held by the end of the calendar year. The bureau may, for convenience and because of the number of properties involved, schedule sales of property in various taxing districts or wards on different dates. Except as otherwise provided in this article, all sales shall be held by the bureau by the end of the calendar year. (1)   The bureau shall sell the property if all of the following are met: (i)   A tax claim has become absolute. (ii)   The property has not been discharged from the tax claim nor removed from sale under section 603;40 or a tax judgment has been entered against the property prior to January 1, 1948, and is unsatisfied, and a sale of the property has not been stayed by agreement under this article. (iii)   The property is not in the possession of the sequestrator. (2)   Property that is essential to the business of a quasi-public corporation shall not be sold. (3)   No owner-occupied property may be sold unless the bureau has given the owner occupant written notice of such sale at least ten (10) days prior to the date of actual sale by personal service by the sheriff or his deputy or person deputized by the sheriff for this purpose unless the county commissioners, by resolution, appoint a person or persons to make all personal services required by this clause. The sheriff or his deputy shall make a return of service to the bureau, or the persons appointed by the county commissioners in lieu of the sheriff or his deputy shall file with the bureau written proof of service, setting forth the name of the person served, the date and time and place of service, and attach a copy of the notice which was served. If such personal notice cannot be served within twenty-five (25) days of the request by the bureau to make such personal service, the bureau may petition the court of common pleas to waive the requirement of personal notice for good cause shown. Personal service of 39. 72 P.S. § 5860.501-A. 40. Section 5860.603 of this title.

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Part III Ch. 23–35 Mortgages Part IV Ch. 36–40 Insurance Part V Ch. 41–48A Zoning, etc. Part VI Ch. 49–56 Taxation Part VII Ch. 57–63 Litigation Part VIII Ch. 64–67 L/T Part IX Ch. 68–72 Condos, etc. Index

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Part II Ch. 15–22 Deeds

913

Part I Ch. 1–14 Brokers

notice on one of the owners shall be deemed personal service on all owners. (b)   No property shall be exposed to sale where the delinquent taxes involved in a claim are being paid by the owner under any law abating penalties, interests and costs, or either, unless there has been a default by the owner in payment, in which case the sale of the property shall be proceeded with, as herein provided, at the time fixed for the next scheduled sale, occurring at least ninety (90) days after such default. (c)  The taxing authorities of the county and of any political subdivision in the county may jointly petition the court of common pleas of the county to stay the sale of property in any political subdivision held under the provisions of this section. The petition shall set forth the reasons for such stay. If, in the opinion of the court, after hearing, there are sufficient reasons for such stay, the court shall have jurisdiction and power to enter an order staying such sale for any period not exceeding one year from the time fixed for such sale under subsection (a) of this section. In case of any such stay of sale, the properties in such political subdivision shall be sold in accordance with the provisions of this section on the date of the next annual sale. (d)   No individual whose landlord license has been revoked in a municipality pursuant to its ordinance may purchase property in the county in which the local municipality is located at a tax sale under this act. Pursuant to this subsection, a municipality shall furnish to the county in which such municipality is located, within forty-eight (48) hours in advance of a tax sale, documentation relating to landlord license revocations pursuant to municipal ordinance. (e)   Any municipality that issues landlords’ licenses must provide to a landlord, prior to revoking such license, notice of the potential revocation . The landlord licensing ordinance must provide the landlord a reasonable opportunity to respond to the notice and an opportunity to appeal any decision made against him. If the landlord is in violation of a local ordinance that deals with building standards, safety or property maintenance, the municipality must also provide the landlord with a reasonable opportunity to comply with the ordinance prior to revocation. A revocation of a landlord’s license shall not be permanent. Thqe revocation shall only be until the landlord has corrected the code violations that led to the revocation. However, the landlord’s license shall only be reinstated after the building has been inspected and approved by the appropriate official or employe of the licensing municipality. Inspections for reinstatement shall be performed within a reasonable amount of time after the landlord notifies the municipality of any corrected violation. The municipality shall, by ordinance, establish procedures to implement this subsection. Any municipality whose landlord licensing ordinance is contrary to this subsection must revise the ordinance within sixty (60) days of the effective date of this subsection. The notice, response and appeal provisions under this subsection as well as the prohibition on bidding under subsection (d) shall only apply to actions on or after the effective date of this subsection. § 602.  Notice of sale (a)  At least thirty (30) days prior to any scheduled sale the bureau shall give notice thereof, not less than once in two (2) newspapers of general circulation in the county, if so many are published therein, and once in the legal journal, if any, designated by the court for the publication of legal notices. Such notice shall set forth (1) the purposes of such sale, (2) the time of such sale, (3) the place of such sale, (4) the terms of the sale including the approximate upset price, (5) the descriptions of the properties to be sold as stated in the claims entered and the name of the owner. (b)   Where the owner is unknown and has been unknown for a period of not less than five years, the name of the owner need not be included in such description. (c)   The description may be given intelligible abbreviations. (d)  Such published notice shall be addressed to the “owners of properties described in this notice and to all persons having liens, judgments or municipal or other claims against such properties.”

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§ 602

REAL ESTATE TAX SALE LAW

(e)  In addition to such publications, similar notice of the sale shall also be given by the bureau as follows: (1)   At least thirty (30) days before the date of the sale, by United States certified mail, restricted delivery, return receipt requested, postage prepaid, to each owner as defined by this act. (2)   If return receipt is not received from each owner pursuant to the provisions of clause (1), then, at least ten (10) days before the date of the sale, similar notice of the sale shall be given to each owner who failed to acknowledge the first notice by United States first class mail, proof of mailing, at his last known post office address by virtue of the knowledge and information possessed by the bureau, by the tax collector for the taxing district making the return and by the county office responsible for assessments and revisions of taxes. It shall be the duty of the bureau to determine the last post office address known to said collector and county assessment office. (3)   Each property scheduled for sale shall be posted at least ten (10) days prior to the sale. (f)  The published notice, the mail notice and the posted notice shall each state that the sale of any property may, at the option of the bureau, be stayed if the owner thereof or any lien creditor of the owner on or before the actual sale enters into an agreement with the bureau to pay the taxes in instalments, in the manner provided by this act. (g)   All notices required by this section other than the newspaper notice and notice in the legal journal shall contain the following provision which shall be conspicuously placed upon said notices and set in at least 10-point type in a box as follows: WARNING “YOUR PROPERTY IS ABOUT TO BE SOLD WITHOUT YOUR CONSENT FOR DELINQUENT TAXES. YOUR PROPERTY MAY BE SOLD FOR A SMALL FRACTION OF ITS FAIR MARKET VALUE. IF YOU HAVE ANY QUESTIONS AS TO WHAT YOU MUST DO IN ORDER TO SAVE YOUR PROPERTY, PLEASE CALL YOUR ATTORNEY, THE TAX CLAIM BUREAU AT THE FOLLOWING TELEPHONE NUMBER ____________, OR THE COUNTY LAWYER REFERRAL SERVICE.” (h)   In case the property of any corporation, limited partnership or joint-stock association is advertised for sale, the bureau shall give to the Department of Revenue, at least thirty (30) days prior to the date of the scheduled sale, notice of the sale by certified mail on a form provided by the Department of Revenue which shall set forth (1) the name and address of the bureau, (2) the date of the sale, (3) the name and address of each corporation, limited partnership or joint-stock association, if any, whose property is scheduled for sale and (4) the total number of corporations, limited partnerships and joint- stock associations whose properties are scheduled for sale. Upon receipt of the notice and at least seven (7) days before the date of sale listed on the notice, the Department of Revenue shall mail to the bureau, by certified mail, a proof of claim for payment of Commonwealth taxes which are accorded priority by section 1401 of the act of April 9, 1929 (P.L. 343, No. 176), known as “The Fiscal Code.”41 The bureau shall include in the upset sale price of each said property the amount of Commonwealth taxes set forth on the proof of claim received from the Department of Revenue. If the bureau complies with the notice of provisions of this section and the Department of Revenue fails to mail to the bureau, at least seven (7) days before the date of sale listed on said notice by verification by the postmark, by certified mail, the proof of claim required by 41.  72 P.S. § 1401.

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Part IV Ch. 36–40 Insurance Part V Ch. 41–48A Zoning, etc. Part VI Ch. 49–56 Taxation Part VII Ch. 57–63 Litigation Part VIII Ch. 64–67 L/T Part IX Ch. 68–72 Condos, etc. Index

gtb-parealestate22-all.indb 915

Part III Ch. 23–35 Mortgages

915

Part II Ch. 15–22 Deeds

§ 605.  Upset sale price The bureau shall fix as the upset price to be realized at the sale of any property upon a claim absolute, the sum of (a) the tax liens of the Commonwealth, (b) the amount of the claim absolute and interest thereon on which the sale is being held, (c) the amount of any other tax claim or tax judgment due on such property and interest on the judgment to the date of sale, (d) the amount of all accrued taxes including taxes levied for the current year, whether or not returned, a record of which shall be furnished to the bureau by tax collectors, receivers of taxes and taxing districts, (e) the amount of the municipal claims against the property, and (f) the record costs and costs of sale, including pro rata costs of the publication of notice and costs of mail and posted notices in connection with the return of the claim and mail and posted notices of sale. It shall be the duty of all taxing districts, and municipal authorities having municipal claims against any such property, to certify, by August 30 of the year of the

Part I Ch. 1–14 Brokers

this section, the lien upon said property shall be forever discharged and divested, notwithstanding any other provision of this act or other law to the contrary. If the bureau does not receive a reply from the Department of Revenue prior to the scheduled date of the sale, it shall be the duty of the bureau to contact the department to determine if such reply was mailed. The bureau may then opt to reschedule the sale if circumstances warrant. No owner shall attack the validity of any sale on the basis that the bureau failed to give the notice required by this section. § 603.  Removal from sale; agreements to stay sale Any owner or lien creditor of the owner may, at the option of the bureau, prior to the actual sale, (1) cause the property to be removed from the sale by payment in full of taxes which have become absolute and of all charges and interest due on these taxes to the time of payment, or (2) enter into an agreement, in writing, with the bureau to stay the sale of the property upon the payment of twenty-five per centum (25%) of the amount due on all tax claims and tax judgments filed or entered against such property and the interest and costs on the taxes returned to date, as provided by this act, and agreeing therein to pay the balance of said claims and judgments and the interest and costs thereon in not more than three (3) instalments all within one (1) year of the date of said agreement, the agreement to specify the dates on or before which each instalment shall be paid, and the amount of each instalment. So long as said agreement is being fully complied with by the taxpayer, the sale of the property covered by the agreement shall be stayed. But in case of default in such agreement by the owner or lien creditor, the bureau, after written notice of such default given by United States mail, postage prepaid, to the owner or lien creditor at the address stated in the agreement, shall apply all payments made against the oldest delinquent taxes and costs, then against the more recent. If sufficient payment has been made to discharge all the taxes and claims which would have caused the property to be put up for sale, the property may not be sold. If sufficient payment has not been received to discharge these taxes and claims, the bureau shall proceed with the sale of such property in the manner herein provided either at the next scheduled upset sale or at a special upset sale, either of which is to be held at least ninety (90) days after such default. If a party to an instalment agreement defaults on the agreement, the bureau shall not enter into a new instalment agreement with that person within three (3) years of the default. § 604.  Sales of property of quasi-public corporation Where a claim becomes absolute and the property covered thereby is essential to the business of a quasi-public corporation, the bureau shall have the right of execution thereupon, as in cases of judgments, against such corporations. Upon the distribution of any fund realized by a sale of the franchises and the whole or any part of the property and assets of the corporation, the court shall determine the actual value of the property bound by the tax claim and the claim shall be preferred with other like claims to the extent of the value of the property thus determined.

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§ 606

REAL ESTATE TAX SALE LAW

scheduled sale, the amount thereof to the bureau for the purpose of including the same in the upset price. If a taxing district or municipal authority fails to certify the amount of any municipal claim which has become a claim against the property prior to August 1 of the year of the scheduled sale, the claim shall be divested by the upset sale, notwithstanding any provision of this act to the contrary. No sale of property shall be made by the bureau unless a bid equal to the upset price is made. If no bid equal to the upset price is received, the sale shall be continued without further advertisement in order to give the bureau a chance to sell the property at private sale, or to petition court for an order to sell the same, freed and discharged of all liens as hereinafter provided. No upset sale may be continued beyond the end of the calendar year, and no property may be sold at private sale or judicial sale unless the property has first been exposed to upset sale and was not sold at upset sale. § 606.  Payments by purchasers at sales The purchaser of any property at an upset sale shall pay to the bureau the entire purchase money on the date of the sale, no later than one (1) hour before the close of business or at such other time on said date as designated by the bureau. In case said amount is not so paid, the sale shall be voided and the property shall be put up again at the same sale, if possible, or at any adjournment, readjournment or continuation of the sale. § 607.  Bureau’s consolidated return to court; notice; confirmation; appeal (a)   It shall be the duty of the bureau, not later than sixty (60) days after a sale was held, to make a consolidated return to the court of common pleas of the county, wherein it shall set forth, (1) a brief description of each property exposed to sale, (2) the name of the owner in whose name it was assessed, (3) the name of the owner at the time of sale, and to whom notice by mail was given as provided by this act, (4) a reference to the record of the tax claim on which the sale was held, (5) the time when and the newspapers in which the advertisement for sale was made, with a copy of said advertisement, (6) the time of sale, (7) the name of the purchaser, if any, and (8) the price for which each property was sold, or that no bid was made equal to the upset price and the property was not sold. Within thirty (30) days of presentation of the consolidated return, if it shall appear to said court that such sale has been regularly conducted under the provisions of this act, the consolidated return and the sales so made shall be confirmed nisi. No consolidated return shall be made to the court until notice has been given to the owner under subsection (a.1)(1). (a.1)(1)  Notice shall be given by the bureau within thirty (30) days of the actual sale to each owner by United States certified mail, restricted delivery, return receipt requested, postage prepaid, to each owner at his last known post office address as determined in sectiohrn 602(e)(2)42 that the property was sold and that the owner may file objections or exceptions with the court relating to the regularity and procedures followed during the sale no later than thirty (30) days after the court has made a confirmation nisi of the consolidated return. (2)   All notices required by this subsection shall contain the following provisions and be in the following form set in at least 10-point type in a box as follows: WARNING “YOUR PROPERTY HAS BEEN SOLD AT A TAX SALE ON ______________ FOR THE COLLECTION FOR DELINQUENT TAXES INCURRED IN ______________. YOU MAY FILE OBJECTIONS OR EXCEPTIONS TO THE SALE IMMEDIATELY BUT NO LATER THAN THIRTY (30) DAYS FOL42. Section 5860.602(e)(2) of this title.

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gtb-parealestate22-all.indb 917

Index

917

Part IX Ch. 68–72 Condos, etc.

(a)   When any notification of a pending tax sale or a tax sale subject to court confirmation is required to be mailed to any owner, mortgagee, lienholder or other person or entity whose property interests are likely to be significantly affected by such tax sale, and such mailed notification is either returned without the required receipted personal signature of the addressee or under other circumstances raising a significant doubt as to the actual receipt of such notification by the named addressee or is not returned or acknowledged at all, then, before the tax sale can

Part VIII Ch. 64–67 L/T

§ 607a.  Additional notification efforts

Part VII Ch. 57–63 Litigation

(g)  If no objections or exceptions are filed or if objections or exceptions are finally overruled and the sale confirmed absolutely, the validity of the tax, its return for nonpayment, the entry of the claim, or the making of such claim absolute and the proceedings of the bureau with respect to such sale, shall not thereafter be inquired into judicially in equity or by civil proceedings by the person in whose name such property was sold, by a grantee or assignee, by any lien creditor or by any other person, except with respect to the giving of notice under the act, to the time of holding the sale, or to the time of petitioning the court for an order of sale. There shall be no period of redemption after such sale and the sale shall be deemed to pass a good and valid title to the purchaser, free from any liens or encumbrances whatsoever, except such liens as are hereafter specifically saved, and in all respects as valid and effective as if acquired by a sheriff’s deed.

Part VI Ch. 49–56 Taxation

(f)   Repealed. 1971, June 3, P.L. 142, No. 6, § 1 (§ 509(a)(140)).

Part V Ch. 41–48A Zoning, etc.

(e)  If such objections or exceptions are sustained and the court deems the defect not amendable, it shall, by its order or decree, invalidate the sale and order another sale to be held in conformity with this act at such time and under such conditions as it shall fix.

Part IV Ch. 36–40 Insurance

(d)   Any objections or exceptions to such a sale may question the regularity or legality of the proceedings of the bureau in respect to such sale, but may not raise the legality of the taxes on which the sale was held, of the return by the tax collector to the bureau or of the claim entered. In case any objections or exceptions are filed they shall be disposed of according to the practice of the court. If the same are overruled or set aside, a decree of absolute confirmation shall be entered by the court.

Part III Ch. 23–35 Mortgages

(c)   In case no objections or exceptions are filed to any such sale within thirty (30) days after the court has made a confirmation nisi, a decree of absolute confirmation shall be entered as of course by the prothonotary.

Part II Ch. 15–22 Deeds

(b.1)   If notice is given under subsection (a.1)(2), proof that notice under subsection (a.1)(1) was not received by the owner shall not defeat a sale nor invalidate title to property. If the mailed or published notice required under this section is defective or was served in an untimely manner, the court shall enter an order nunc pro tunc for cause and, upon proof of prejudice, shall grant the owner leave to file objections and exceptions.

Part I Ch. 1–14 Brokers

LOWING THE CONFIRMATION NISI OF THE RETURN BY THE COURT. IF YOU HAVE ANY QUESTIONS PLEASE CALL YOUR ATTORNEY, THIS TAX CLAIM BUREAU AT THE FOLLOWING TELEPHONE NUMBER ______________, OR THE COUNTY LAWYER REFERRAL SERVICE.” (b)   The bureau shall, at the expense of the county, within ten (10) days after confirmation nisi of the consolidated return, publish a general notice once in a newspaper of general circulation published in the county, and in the legal journal, if any, designated by rules of court for the publication of legal notices, stating (1) that the consolidated return of the bureau with respect to any such sale for taxes has been presented to the court, (2) giving the date of confirmation nisi and (3) that objections or exceptions thereto may be filed by any owner or lien creditor within thirty (30) days after the court has made a confirmation nisi of the consolidated return or that the return will be confirmed absolutely.

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§ 608

REAL ESTATE TAX SALE LAW

be conducted or confirmed, the bureau must exercise reasonable efforts to discover the whereabouts of such person or entity and notify him. The bureau’s efforts shall include, but not necessarily be restricted to, a search of current telephone directories for the county and of the dockets and indices of the county tax assessment offices, recorder of deeds office and prothonotary’s office, as well as contacts made to any apparent alternate address or telephone number which may have been written on or in the file pertinent to such property. When such reasonable efforts have been exhausted, regardless of whether or not the notification efforts have been successful, a notation shall be placed in the property file describing the efforts made and the results thereof, and the property may be rescheduled for sale or the sale may be confirmed as provided in this act. (b)   The notification efforts required by subsection (a) shall be in addition to any other notice requirements imposed by this act. § 608.  Deed After the court has confirmed the sale and the purchaser has paid the amount of his bid, it shall be the duty of the bureau to make to the said purchaser, his or their heirs or assigns a deed in fee simple for the property sold. Each such deed shall be in the name of the bureau as trustee grantor and shall be executed and duly acknowledged before the prothonotary by the director and a notation of such deed and acknowledgement shall be duly entered on the proper records. The deed shall, before delivery, be recorded in the office for the recording of deeds at the cost of the purchaser. § 609.  Nondivestiture of liens Every such sale shall convey title to the property under and subject to the lien of every recorded obligation, claim, lien, estate, mortgage, ground rent and Commonwealth tax lien not included in the upset price with which said property may have or shall become charged or for which it may become liable. § 610.  Petition for judicial sale In cases where the upset price shall not be bid at any such sale, the sale shall be continued, but not beyond the end of the calendar year, without further advertising, and the bureau may, at any time during or after the continuance, and shall, immediately at the written direction of a taxing district, file its petition in the court of common pleas of the county to sell the property under sections 612 and 612.1.43 The bureau shall set forth on the petition (1) the tax claim upon which the property was exposed for sale, (2) that neither the owner, his heirs or legal representatives or any lien creditor, his heirs, assigns or legal representatives or other person interested has caused stay of sale, discharge of tax claim or removal from sale, (3) that the property was exposed to public sale and the date of such sale, (4) that before exposing the property to public sale the bureau fixed an upset price, as herein provided, and (5) that it was unable to obtain a bid sufficient to pay said upset price. Upon the presentation of such petition, accompanied with searches, showing the state of the record and the ownership of the property and all tax and municipal claims, liens, mortgages, ground rents, charges and estates against the same, the court shall grant a rule upon all parties thus shown to be interested to appear and show cause why a decree should not be made that said property be sold, freed and cleared of their respective tax and municipal claims, liens, mortgages, charges and estates, except separately taxed ground rents. The rule shall be made returnable in not more than thirty (30) days from the date the petition was presented or as otherwise determined by the court. § 611.  Service of rule Service of the rule shall be made in the same manner as writs of scire facias are served in this Commonwealth. When service cannot be made in the county 43. Sections 5860.612, 5860.612-1 of this title.

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Ch. 53

Part IV Ch. 36–40 Insurance Part V Ch. 41–48A Zoning, etc. Part VI Ch. 49–56 Taxation Part VII Ch. 57–63 Litigation Part VIII Ch. 64–67 L/T Part IX Ch. 68–72 Condos, etc. Index

gtb-parealestate22-all.indb 919

Part III Ch. 23–35 Mortgages

919

Part II Ch. 15–22 Deeds

44. Sections 5860.101 to 5860.803 of this title. 45. Section 5860.205 of this title. 46. Section 5860.612 of this title.

Part I Ch. 1–14 Brokers

where the rule was granted, the sheriff of the county shall deputize the sheriff of any other county in this Commonwealth, where service can be made. If service of the rule cannot be made in this Commonwealth, then the rule shall be served on the person named in the rule by the sheriff, by sending him, by registered mail, return receipt requested, postage prepaid, at least fifteen (15) days before the return day of the rule, a true and attested copy thereof, addressed to such person’s last known post office address. The sheriff shall attach to his return, the return receipts, and if the person named in the rule has refused to accept the registered mail or cannot be found at his last known address, shall attach evidence thereof. This shall constitute sufficient service under this act.44 § 612.  Hearing and order for judicial sale (a)  If upon hearing, the court is satisfied that service of the rule has been made upon the parties named in the rule, in the manner provided by this act, and that the facts stated in the petition are true, it shall order and decree that said property be sold at a subsequent day to be fixed by the court, freed and cleared of all tax and municipal claims, mortgages, liens, charges and estates, except separately taxed ground rents, to the highest bidder, and that the purchaser at such sale shall take and thereafter have an absolute title to the property sold free and clear of all tax and municipal claims, mortgages, liens, charges and estates of whatsoever kind, except ground rents, separately taxed. Out of the proceeds of such sale shall be paid the costs set forth in the upset price at the prior sale, and the additional costs incurred relative to this sale, including the fee for title search. The court order may specify that no sale shall be made except to the county unless a bid equal to such costs is offered. The remainder of said proceeds shall be distributed by the office designated by the county commissioners under section 205.45 After the purchaser shall have paid over the purchase price, the bureau shall make and deliver a deed in the manner hereinbefore provided. (b)   When aforesaid petition for sale is presented within three (3) months after the date of the scheduled upset sale, the court, in its order, shall direct that no further advertisement is required. In cases where said petition is presented after the three (3) month period has expired, the court shall, in its order fixing a subsequent sale, direct that the readvertisement of such sale need not be published three (3) consecutive weeks, nor include a list and description of the lands to be sold, but need only be advertised by one (1) insertion in one (1) or two (2) newspapers as hereinbefore provided for such advertisements, at least thirty (30) days prior to the sale, and include the purpose, the time, the place and the terms of such sale with a reference to the prior advertisement. (c)   In any such petition for sale, the bureau may, if it deems the same advantageous, request the court to fix the place of sale at the property to be sold, and if the court is convinced the taxing districts interested will be benefited thereby, it shall order the sale to be held on the property to be sold. (d)  The court may fix a common date and place of sale for more than one property to be sold. § 612-1.  County commissioners may bid and purchase property; costs paid by taxing districts Whenever any property shall be put up for public sale upon order of court, as provided in section 612,46 the county commissioners are hereby authorized to bid up to and including one dollar over and above all costs, as prescribed in section 612, for said property at such sale and if the property is sold to them for the county, the county shall take and have an absolute title, free and clear of all tax and municipal claims, mortgages, liens and charges and estates of whatsoever

Table of Contents

PART VI

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§ 612-2

REAL ESTATE TAX SALE LAW

kind, except ground rents, separately taxed in the same manner and to the same extent as a private purchaser would have taken. In such cases, the proportionate share of said costs shall be paid to the county by the respective taxing districts in proportion to the taxes due them on such property. An amount equal to such costs due the county from any taxing district may be deducted from any tax moneys thereafter payable to such district under the provisions of this act. Upon the sale thereafter of such property by the county, the proceeds from the sale shall be distributed to the taxing authorities in proportion to the taxes due them on such property at the time of the last tax sale. Any property purchased at such sale by the county may thereafter by the county commissioners be (1) leased to any taxing district to be used for public purposes; (2) used for any suitable public purpose by the county; (3) sold in the same manner as any other real property owned in fee simple by the county; or (4) sold upon petition to the court of common pleas, which shall fix a day not more than thirty (30) days thereafter for a hearing and sale. At least five (5) days notice of such hearing and sale shall be given to all the taxing authorities having an interest therein, and notice shall also be given by publication at least two times, with approximately ten (10) days intervening, in at least one (1) newspaper of general circulation published in the county and the official legal journal of the county, setting forth the location of the property that was acquired at a public tax sale, giving the date and place, the terms of the proposed sale, and that the property will be sold clear and free of all tax and municipal claims, mortgages, liens, charges and estates, except separately taxed ground rents, and the lowest amount which the county is prepared to accept for the sale of the property. If, after such hearing, the court is satisfied that the proposed sale is proper and to the advantage of the county and the other taxing districts interested, it shall allow any person to offer more than the minimum price fixed by the county, or other price, as the court may find proper, and enter a decree approving such sale and directing a conveyance of such property to the person or persons purchasing the same, upon the payment of the purchase price and all costs of the proceeding. The title conveyed shall be free and clear of all tax and municipal claims, mortgages, liens and charges and estates of whatever kind, except ground rents separately taxed. § 612-2.  Combined judicial sales If the bureau has more than one property on which it was unable to obtain a bid sufficient to pay the upset price, it may, with the approval of the interested taxing districts and in accordance with the requirements of this subarticle, petition for, and the court may authorize, a combined sale of two or more of the properties, to be sold free and clear of all tax and municipal claims, mortgages, liens, charges and estates, except separately taxed ground rents, to the highest bidder, and that the purchaser at such sale shall take and thereafter have an absolute title to the properties sold free and clear of all tax and municipal claims, mortgages, liens, charges and estates of whatsoever kind, except ground rents, separately taxed. 612-3.   Additional costs for rehabilitation and maintenance (a)   Notwithstanding the limitations contained in section 206,47 in the case of property exposed to upset sale and not sold at upset sale, the bureau may incur, and may recover as costs from proceeds prior to any distribution in a subsequent sale to the extent authorized by this or any other act, the following: (1)   Costs of rehabilitation and maintenance as may be, in the sole discretion of the bureau, reasonably necessary to address safety issues or restore or maintain the property in a salable condition. 47. 72 P.S. § 5860.206.

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Ch. 53

Part I Ch. 1–14 Brokers Part II Ch. 15–22 Deeds Part III Ch. 23–35 Mortgages Part IV Ch. 36–40 Insurance Part V Ch. 41–48A Zoning, etc. Part VI Ch. 49–56 Taxation Part VII Ch. 57–63 Litigation Part VIII Ch. 64–67 L/T Part IX Ch. 68–72 Condos, etc.

(2)   Costs of rehabilitation and maintenance necessary to ensure the property is maintained in compliance with property maintenance codes. (b)   This section may not be construed as creating any affirmative duty on the part of the county or bureau to rehabilitate or maintain property or as imposing any liability on a county or bureau for injuries to persons or property that may occur on property subject to rehabilitation and maintenance under this section. (c)  Definitions.—As used in this section, the following words and phrases shall have the meanings given to them in this subsection unless the context clearly indicates otherwise: “Costs of maintenance,” costs and expenses for materials and services related to the upkeep or preservation of the condition of the property, including ordinary and necessary repairs. “Costs of rehabilitation,” costs and expenses for construction, stabilization, rehabilitation, demolition and reasonable nonconstruction costs. The term includes environmental remediation, architectural, engineering and legal fees, permits, financing fees and insurance costs. The term does not include construction of new structures. “Property maintenance codes,” municipal ordinances that regulate the maintenance or development of real property. The term includes building codes, housing codes and public safety codes. § 613.  Properties not sold because of insufficient bid may be sold at private sale (a)   At any time after any property has been exposed to public sale and such property was not sold because no bid was made equal to the upset price, as hereinbefore provided, and whether or not proceedings are initiated pursuant to sections 610 through 612.1,48 the bureau may, on its own motion, and shall, on the written instructions of any taxing district having any tax claims or tax judgments against said property, agree to sell the property at private sale, at any price approved by the bureau. Notice of the proposed sale, stating the price and the property proposed to be sold, shall be given to each such taxing district and to the owner of the property. Notice shall also be given by publication at least two (2) times, with approximately ten (10) days intervening between each publication, in at least one (1) newspaper of general circulation published in the county where the property is located and in the official legal journal of that county. The notice by publication shall set forth the location of the property, the date and place of sale, the price and terms of sale, and the provision that the property will be sold free and clear of all tax claims and tax judgments. The corporate authorities of any taxing district having any tax claims or tax judgments against the property which is to be sold, the owner, an interested party, or a person interested in purchasing the property may, if not satisfied that the sale price approved by the bureau is sufficient, within forty-five (45) days after notice of the proposed sale, petition the court of common pleas of the county to disapprove the sale. The court shall, in such case, after notice to each such taxing district, the owner, the bureau, the purchaser and any other person who has joined in the petition, hear all parties. After such hearing, the court may either confirm or disapprove the sale as to it appears just and proper. If the sale is disapproved, the court shall at the same time fix a price below which such property shall not be sold and order that, if no private sale can be arranged, the property be sold at public judicial sale under this act. If more than one party agrees to pay the minimum price set by the court, the court shall direct the bureau to conduct an auction-style bid of the property among the parties to the proceedings. If only one party agrees to

Table of Contents

PART VI

48. Sections 5860.610 to 5860.612-1 of this title.

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Index

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§ 613-1

REAL ESTATE TAX SALE LAW

pay the minimum price set by the court, the bureau shall sell the property to that party without the necessity of an auction. (b)   When an offer to purchase any such property has been received, and the price has been disapproved by the bureau, the bureau shall, on the written instructions of any interested taxing district, submit by petition the proposed sale to the court of common pleas of the county for approval. The court shall, after affording the owner and each taxing district having any tax claims or tax judgments against the property an opportunity to be heard on such notice, as the court deems appropriate, approve or disapprove the sale. If the court approves the sale, it shall be consummated with like effect as though it had been approved by the bureau and by all taxing districts having said interest. § 613-1.  Private sales, validation Whenever prior to the effective date of this act the Tax Claim Bureau sold any real property at any private sale which was in conformity in all respects to the requirements of the act of July 7, 1947 (P.L. 1368, No. 542), known as the “Real Estate Tax Sale Law”49 except any requirements of sections 610 through 612.150 or the requirement of section 61351 of that act, that such sale be made within one (1) year after the property was exposed to public sale and such sale was continued because no bid was made equal to the upset price, all such sales are hereby ratified, confirmed and validated and the title to any such property purchased by any person, and the deed executed and acknowledged to such purchaser, are hereby declared to be as valid as if the entire transaction had been in full conformity with the “Real Estate Tax Sale Law.” § 614.  Options (a)  The bureau shall have the right to accept option money to bind the private sale of any such property at the price offered therefor, which shall be credited to the purchase price when the sale is effected, or be retained for the use of the taxing districts, if the purchase price is not paid over. But if the purchase price is not approved or confirmed, as hereinbefore provided, and the sale is not consummated for that reason, the option money shall be returned to the prospective purchaser. (b)   Before a petition is presented to court for a subsequent sale, as herein provided, the bureau shall have the right to accept option money from any person who agrees to bid a certain agreed price for the property at the sale, and such money shall be credited to the purchase price, if such person purchases the property at the sale at a price not less than the agreed price. If said person does not bid the amount agreed upon, or more, or if the purchase price is not paid over, then the option money shall be retained for the use of the taxing districts. But if the property is sold to any other bidder for a price in excess of the agreed offer, the option money shall be returned to the person having deposited the same. (c)   Such option money shall be deposited in the county treasury. § 615.  Deeds When the price for the private sale of any said property has been finally approved or confirmed, as hereinbefore provided, the bureau shall upon payment over of the purchase price less the option money, if any, make to the purchaser, his or their heirs or assigns, a deed in fee simple for the property sold. Each such deed shall be in the name of the bureau, as trustee grantor and shall be executed and duly acknowledged before the prothonotary by the director. Such 49. Section 5860.101 et seq. of this title. 50. Sections 5860.610 to 5860.612-1 of this title. 51. Section 5860.613 of this title.

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Ch. 53

Part V Ch. 41–48A Zoning, etc. Part VI Ch. 49–56 Taxation

(b)   A change of name or business status shall not defeat the purpose of this section.

Part IV Ch. 36–40 Insurance

§ 618.  Repurchase by owner (a)  The owner shall have no right to purchase the owner’s property at a judicial sale, a private sale or from the bureau’s repository for unsold property under the provisions of this act. (a.1)  Notwithstanding subsection (a), if a property remains unsold after an upset sale and on the docket of a bureau, the bureau may accept full payment for the property from or on behalf of the owner. Full payment shall include all delinquent taxes returned to the bureau and any costs, penalties and interest due at the time the owner appears to pay the taxes. The bureau may not accept partial payments or enter into an installment agreement with an owner whose property remains unsold after an upset sale. The receipt of full payment pursuant to this subsection shall discharge the tax claims entered against the property. The subject property shall be removed from further exposure to sale, and a note thereof shall be made on the docket and index.

Part III Ch. 23–35 Mortgages

§ 617.  Errors as to description; names, etc., may be amended on petition When a property has been sold under the provisions of this act, and there are errors in the description or in the spelling of any person’s name, or other obvious errors in the claim, or in the return to court, or in any petition relative to the proceedings, or in the bureau’s tax deed, such error may be amended by a petition to court for a rule on all parties interested to show cause why the records should not be amended and such errors corrected. After hearing on the rule, the court may make such order relative thereto as to it seems just and proper.

Part II Ch. 15–22 Deeds

§ 616.  Mandatory judicial sale If within the period of ten (10) months after the date of the scheduled upset sale, the bureau has not filed a petition for a judicial sale under section 61052 or the property has not been sold at private sale, the bureau shall, within the next immediately following two (2) months, file a petition for judicial sale of the property in the manner set forth in section 610.

Part I Ch. 1–14 Brokers

deed shall convey title to the purchaser free, clear and discharged of all tax claims and tax judgments, whether or not returned, filed or entered, as provided by this or any other act.

Table of Contents

PART VI

(c)   For the purpose of this section:

52. Section 5860.610 of this title. 53. 72 P.S. § 5860.610 et seq.

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Index

923

Part IX Ch. 68–72 Condos, etc.

(b)   A municipality may, within fifteen (15) days before or after any sale held under subarticle (b) of Article VI, petition the court of common pleas to prohibit the transfer of any deed for any property exposed for any sale under subarticle

Part VIII Ch. 64–67 L/T

§ 619.  Restrictions on Purchases (a)   Deeds for any property exposed for any sale under Subarticle (b) of Article VI of this act shall not be exchanged any sooner than twenty (20) days nor later than forty-five (45) days after any sale held under subarticle (b) of Article VI.53

Part VII Ch. 57–63 Litigation

“Owner” means any individual, partner, shareholder, trust, partnership, limited partnership, corporation or any other business association or any trust, partnership, limited partnership, corporation or any other business association that has any individual as part of the business association who had any ownership interest or rights in the property.

12/22/21 10:45 AM

§ 619a

REAL ESTATE TAX SALE LAW

(b) of Article VI which is located in that municipality to any purchaser who is proven to meet any of the criteria set forth in the municipality’s petition. (c)(1)   The petition of the municipality shall allege that the purchaser has over the last three years preceding the filing of the petition exhibited a course of conduct which demonstrates that a purchaser permitted an uncorrected housing code violation to continue unabated after being convicted of such violation; and (i)   failed to maintain property owned by that purchaser in a reasonable manner such that it posed a threat to health, safety or property; or (ii)   permitted the use of property in an unsafe, illegal or unsanitary manner such that it posed a threat to health, safety or property. (2)   A person who acts as an agent for a purchaser who sought to avoid the limitations placed on the purchase of property by this section shall be subject to the restrictions imposed by this section. (3)   Allegations under this subsection shall be proved by a preponderance of the evidence. In ruling on the petition, a court shall consider whether violations were caused by malicious acts of a current non-owner occupant and the control exercised by a purchaser in regard to his ownership interest or rights with other properties. (d)   A change of name or business status shall not defeat the purpose of this section. (e)   As used in this section: “Municipality,” any county, city, borough, incorporated town, township, home rule municipality, optional plan municipality, optional charter municipality or any similar general purpose unit of government which may be created or authorized by statute. “Purchaser,” any individual, partner, limited or general partner, shareholder, trustee, beneficiary, any other individual with any ownership interest or right in a business association, sole proprietorship, partnership, limited partnership, S or C corporation, limited liability company or corporation, trust, business trust or any other business association. “Uncorrected housing code violation,” any conviction of a violation of the local building, housing, property maintenance or fire code which is not remedied within six (6) months of conviction. “Violation,” any conviction under a building, housing, property maintenance or fire code which posed a threat to health, safety or property, but not a conviction deemed by a court to be de minimis. § 619a.  Additional restrictions (a)  Within twenty (20) days following any sale under this act, a successful bidder shall be required to provide certification to the bureau that the person is not delinquent in paying real estate taxes to any of the taxing districts where the property is located and that the person has no municipal utility bills that are more than one year outstanding. (b)   As used in this section, the following terms shall have the following meanings: “Certification,” shall mean proof via receipts of paid real estate taxes and municipal utility bills within the jurisdiction or a notarized affidavit by the bidder evidencing payment of such real estate taxes and municipal utility bills.

924

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Ch. 53

Part VIII Ch. 64–67 L/T Part IX Ch. 68–72 Condos, etc. Index

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Part VII Ch. 57–63 Litigation

925

Part VI Ch. 49–56 Taxation

54. 72 P.S. § 5860.502-A.

Part V Ch. 41–48A Zoning, etc.

§ 628.  Assessment restrictions on property sold from repository Notwithstanding any other provisions of the various assessment laws of this Commonwealth, the price for which property is sold under this subarticle of the

Part IV Ch. 36–40 Insurance

§ 627.  Sale of property in repository (a)   The bureau may, with the written consent of all the taxing districts where the property is located, establish a minimum purchase price and accept an offer of any price equal to or greater than the minimum purchase price for property placed in the “repository for unsold properties” without court approval and published notice of sale. The bureau shall require, as a condition of sale, that the purchaser provide an affidavit that includes the information specified under section 502-A.54 Any taxing district may not unreasonably withhold its consent to the sale of the property and, if no consent is provided within sixty (60) days of the date notice was received by the taxing district, it shall be deemed that the taxing district consents to the sale of the property. As a condition of its consent, a taxing district may require that the purchaser: (1)   appear in person before the governing body of the taxing district charged with reviewing repository bids; and (2)   provide all of the information required under section 502-A. (b)  The property shall be conveyed to the purchaser upon payment of the agreed price, free and clear of all tax and municipal claims, mortgages, liens, and charges and estates of whatsoever kind, except ground rents separately taxed. It shall be the responsibility of the bureau to have the deed recorded at the expense of the purchaser.

Part III Ch. 23–35 Mortgages

§ 626.  Unsold property repository If, after conducting and exposing a property to a judicial sale under the provisions of this act, whether prior to, at the time of or after the effective date of this amendatory act, any property remains unsold, it shall be placed in a category to be termed “repository for unsold properties.” A list of properties in this category shall be maintained by the bureau and shall be available during normal office hours to the general public. From time to time, the bureau may publish a list of these properties in a locally circulating newspaper.

Part II Ch. 15–22 Deeds

§ 625.  Purpose It is the intent of this subarticle to establish a procedure to minimize the number of properties which the county, through the tax claim bureau, holds because of delinquent tax claims, recognizing that some properties have little or no value except perhaps to a neighboring property owner and that holding such properties constitutes a cost to the county and bureau.

Part I Ch. 1–14 Brokers

“Municipal utility bills,” shall mean bills for services provided by a utility which is wholly owned and operated by a municipality or municipal authority. The term shall include, but not be limited to, water, sewer and solid waste disposal utility bills. “Municipality,” refers to any county, city, borough, incorporated town, township, home rule municipality, optional plan municipality, optional charter municipality or any similar general purpose unit of government which may be authorized by statute. “Person,” includes a corporation; partnership; limited liability company; business trust; other association; government entity, other than the Commonwealth; estate; trust; foundation; or natural person.

Table of Contents

PART VI

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§ 629

REAL ESTATE TAX SALE LAW

act only, shall be deemed to be the fair market value of the property for tax assessment purposes. The assessment and the consideration upon which it was made shall not be changed unless any of the following occurs: (1)   It is changed as part of a general county reassessment. (2)   It is sold as an individual parcel or as part of a combined parcel. (3)  It is improved as provided for in the several assessment laws of this Commonwealth. § 629.  Notification of sale The bureau shall notify all affected taxing districts, the county assessment office and any affected tax collector of the sale and of the restriction on the assessment. § 630.  Distribution of all moneys received Moneys received under this subarticle shall be distributed as provided for in section 205.55 § 641.   Limitation on Trusteeship56 (a)   A county or bureau shall hold property subject to sale under this act only as trustee for the purpose of exercising only such control over the property as may be necessary or implied in order to convey the property or otherwise further the purposes of this act. (b)   A county or bureau shall not have any civil or criminal liability or have any obligation for maintenance or for nuisance remediation of a tax-delinquent property, regardless of whether the property has been exposed to an upset sale or other sale under this act, unless the county or bureau purchases the property as provided in section 612.1. A trusteeship under this act shall not be considered the care, custody or control of real property under 42 Pa.C.S. § 8542(b)(3) (relating to exceptions to governmental immunity). (c)   Notwithstanding subsection (b), a county or bureau may, at its discretion and subject to section 612.3, rehabilitate and maintain property of which the county or bureau is a trustee without consent of the delinquent property owner. This authorization shall not diminish the responsibility of a delinquent property owner as provided in section 642. § 642.   Ownership Interests and Responsibilities of Delinquent Property Owner.—(a)   At the time a property that is tax delinquent is exposed to, but not sold at, an upset sale, legal title to the property shall remain with the delinquent property owner until the bureau transfers the deed as trustee grantor to a purchaser. (b)  Nothing in this act shall be construed to relieve a delinquent property owner of civil or criminal liability or for an obligation for maintenance or for nuisance remediation of the tax-delinquent property to the extent the liability is imposed by law or ordinance. § 701.  Property heretofore purchased by taxing districts to be turned over to bureau Where the county commissioners, any taxing district or trustee for any taxing districts have, prior to the time when this act became effective in any taxing district, acquired any property at a tax sale or a sale on a judgment for a tax 55. Section 5860.205 of this title. 56. Section 4 of Act 2018, June 19, P.L. 239, No. 38, effective in 60 days, provides that “[t]his act shall apply to sales conducted on or after the effective date of this section.”

926

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Ch. 53

Part VI Ch. 49–56 Taxation Part VII Ch. 57–63 Litigation Part VIII Ch. 64–67 L/T Part IX Ch. 68–72 Condos, etc. Index

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Part V Ch. 41–48A Zoning, etc.

927

Part IV Ch. 36–40 Insurance

57. Sections 5860.613, 5860.614 and 5860.615 of this title. 58. Sections 5860.301 et seq., 5860.306 et seq. of this title.

Part III Ch. 23–35 Mortgages

§ 703.  Such properties to be sold under provisions of Article VI (a)   All properties so turned over to the bureau which have not been sold at private sale, as hereinbefore provided, may be sold at public sale by the bureau upon written request of any taxing authorities having any tax claims or tax judgments against the property. Such sale shall be made at the time specified in the request and in the same manner as if the property was being sold at a first sale on a tax claim, as provided in Articles III and VI,58 except that it shall be a simple public sale with no upset price, and shall divest only the lien of tax claims and tax judgments. The purchaser of any such property shall be given a deed, executed and acknowledged as hereinbefore provided, which shall convey title free, clear and discharged of all tax claims and tax judgments, whether or

Part II Ch. 15–22 Deeds

§ 702.  Powers and duties of bureau as agent The property turned over to it, as provided in the preceding section, shall not be subject to redemption and until finally sold, as hereinafter provided, the bureau shall manage and control the property for the trustee county with power, (a) to lease the property for a period not exceeding one (1) year with the usual privilege of renewal on termination thereof upon three (3) months’ notice, and any such lease may be on a royalty basis for the purpose of extracting any minerals or oil or the cutting of timber, (b) to make such repairs to the property as may be reasonably necessary to restore and maintain it in a tenantable condition, and to carry insurance on such property, (c) to advertise the property for sale or for rent, (d) to appoint an agent or agents who shall be a licensed real estate broker or agent to collect the rentals, and pay such agents the customary commissions for rent collection, (e) to harvest and sell the crops or produce of the property, (f) to sell any scrap or salvage resulting from repairs or alterations to buildings on the property or from the demolition of buildings no longer safe for occupancy, (g) to recover the cost of advertising, repairs, alterations or demolition of buildings, the harvesting of crops and the commissions of rental agents from the rental or sale of the property or any crops or salvage therefrom, and (h) to sell the property at private sale, to give options thereon and receive option money, and to make deeds for such property when sold in the manner provided by and subject to the provisions of sections 613, 614 and 61557 in so far as they may be applicable. The bureau shall not in any case incur any expense for the maintenance, repair or alteration of any such property in excess of eighty per centum (80%) of the amount of rental to be received for such property within a period of one (1) year, under a lease entered into at or before the time such expense is incurred.

Part I Ch. 1–14 Brokers

claim, unless such property or interest shall have been resold or used for a public purpose, for which the property might otherwise have been acquired, such commissioners, taxing district or trustees shall deliver possession of such property to the bureau together with all the pertinent information, as to when and how it was acquired, the taxes for which it was offered for sale at the time, the party which purchased it, the known mortgages, liens or estates, if any, not discharged by such sale, and the taxes which would have been levied against such property had it not been purchased by the taxing district. Thereafter all rights and title to the property, held by such taxing district or trustee, shall vest in the county, as trustee, for all taxing districts having the power to levy taxes against such property, if it were privately owned, and the bureau shall become the agent of all taxing districts having an interest in the management and control of such property with the following powers and duties with respect thereto.

Table of Contents

PART VI

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§ 704

REAL ESTATE TAX SALE LAW

not returned, filed or entered as provided by this or any other act. The notices to be given of such sale, as required in Article VI for an upset sale, as provided for in sections 605 through 612.1,59 shall state that there is no upset price and that the sale shall divest only the lien of taxes and tax judgments. (b)  In lieu of the public sale provided for in the preceding subsection, or if such sale is held but the property is not sold due to the absence of any bid, the bureau, upon written request of any such interested taxing authorities, may sell such property upon petition to court for an order to sell clear and free of all claims, liens, mortgages and estates in the same manner with like proceedings and with like effect as if said properties had been first exposed to public sale as provided in Article VI but not sold because of insufficient bid. The sale of properties turned over to the bureau under the provisions of this article shall, except as herein otherwise provided, be subject to all the provisions of Article VI in so far as they may be applicable, and when sold at public sale by order of court, as above provided, such properties shall be sold free and discharged from all tax and municipal claims, mortgages, liens, charges and estates whatsoever. § 704.  Validation of title Each property to which the county does not have title under the provisions of this article shall be subject to Article VI unless title to these properties which have been acquired under Article VII shall have been ratified, confirmed and validated in the manner provided by law for the validation of titles by the court of common pleas of the county in which each property is located, upon proof of title to the property. Any titles ratified, confirmed and validated pursuant to this section shall not be challenged or invalidated thereafter by reason of any defect whatsoever in the acquisition or retention thereof, notwithstanding any law or act of Assembly to the contrary. § 705.  Duty of county and bureau; enforcement provision With respect to properties to which the county has title under this article, it shall be the duty of the county and of the bureau to perform every fiduciary duty imposed on them by law, including, but not limited to, making a pro rata distribution of rents, profits and issues of the properties to the appropriate taxing districts according to the interest of the taxing districts in the properties and the entitlement of the taxing districts to the rents, profits and issues, and also including, but not limited to, selling properties subject to this article, if the sale is a good faith exercise of the fiduciary duty imposed. A taxing district may enforce the provisions of this section by an action at law or in equity, or as otherwise provided by law. § 801.  Acts of assembly repealed The following acts and parts of acts are hereby repealed in so far as they apply to taxing districts coming within the provisions of and operating under this act.60 § 802.  General repeal All acts and parts of acts inconsistent with the provisions of this act61 are hereby repealed. § 803.  Effective date The provisions of this act62 shall become effective on the first day of January, one thousand nine hundred forty-eight. 54. 60. 61. 62.

Sections Sections Sections Sections

5860.605 5860.101 5860.101 5860.101

to to to to

5860.612-1 of this title. 5860.803 of this title. 5860.803 of this title. 5860.803 of this title.

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Table of Contents

CHAPTER 54

Part I Ch. 1–14 Brokers

PROPERTY TAX REBATES AND ABATEMENTS Chapter

Part II Ch. 15–22 Deeds

54.1   Senior Citizens Rebate and Assistance Act    72 P.S. § 4751-1 to 72 P.S. § 4751-12 54.2  Cities of the First Class Low-Income Senior Citizens Property Tax    72 P.S. § 4751-21 to 72 P.S. § 4751-26 54.3   Tax Extension for the U.S. Armed Services    72 P.S. § 4753-1 to 72 P.S. § 4753-4 54.4   New Home Construction Local Tax Abatement Act    72 P.S. § 4754-1 to 72 P.S. § 4754-6

Part III Ch. 23–35 Mortgages Part IV Ch. 36–40 Insurance

CHAPTER 54.1 SENIOR CITIZENS REBATE AND ASSISTANCE ACT 72 P.S. § 4751-1 to 72 P.S. § 4751-12

Sec.

1. Short title 2. Declaration of policy 3. Definitions 4. Property tax; rent rebate and inflation cost 5. Filing of claim 6. Proof of claim 7. Incorrect claim 8. Funds for payment of claims 9. Claim forms and rules and regulations 10. Fraudulent claim; conveyance to obtain benefits 11. Repealed 11.1. Petition for redetermination 11.2. Review by Board of Finance and Revenue 11.3. Appeal 11.4. Grants to area agencies on aging for services to older persons 11.5. Repealed. 1982, Dec. 15, P.L. 1288, No. 291, § 6, imd. effective 12. Effective date

Part V Ch. 41–48A Zoning, etc. Part VI Ch. 49–56 Taxation Part VII Ch. 57–63 Litigation

§ § § § § § § § § § § § § § § § §

Index

gtb-parealestate22-all.indb 929

Part IX Ch. 68–72 Condos, etc.

929

Part VIII Ch. 64–67 L/T

§ 1.  Short title This act shall be known and may be cited as the “Senior Citizens Rebate and Assistance Act.” § 2.  Declaration of policy In recognition of the severe economic plight of certain senior citizens, widows, widowers and permanently disabled persons who are real property owners or renters with fixed and limited incomes who are faced with rising living costs and constantly increasing tax and inflation cost burdens which threaten their homesteads and self-sufficiency, the General Assembly, pursuant to the mandates of the Constitutional Convention of 1968, considers it to be a matter of sound public policy to make special provisions for property tax rebates or rent rebates in lieu of property taxes and inflation dividends to that class of senior citizens, widows,

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§ 3

PROPERTY TAX REBATES

widowers and permanently disabled persons who are real property taxpayers or renters who are without adequate means of support to enable them to remain in peaceable possession of their homes and relieving their economic burden and to provide transportation assistance grants and to provide grants to area agencies on aging for services to older persons. § 3.  Definitions As used in this act: (1)  “Income” means all income from whatever source derived, including but not limited to salaries, wages, bonuses, commissions, income from self-employment, alimony, support money, cash public assistance and relief, the gross amount of any pensions or annuities including railroad retirement benefits for calendar years prior to 1999, and fifty per cent of railroad retirement benefits for calendar years 1999 and thereafter, all benefits received under the Federal Social Security Act1 (except Medicare benefits) for calendar years prior to 1999, and fifty per cent of all benefits received under the Federal Social Security Act (except Medicare benefits) for calendar years 1999 and thereafter, all benefits received under State unemployment insurance laws and veterans’ disability payments, all interest received from the Federal or any State government, or any instrumentality or political subdivision thereof, realized capital gains, rentals, workmen’s compensation and the gross amount of loss of time insurance benefits, life insurance benefits and proceeds (except the first five thousand dollars ($5,000) of the total of death benefit payments), and gifts of cash or property (other than transfers by gift between members of a household) in excess of a total value of three hundred dollars ($300), but shall not include surplus food or other relief in kind supplied by a governmental agency or property tax or rent rebate or inflation dividend. (2)  “Household income” means all income received by the claimant and his spouse while residing in the homestead during the calendar year for which a rebate and dividend are claimed. (3)  “Homestead” means a dwelling, whether owned or rented, and so much of the land surrounding it, as is reasonably necessary for use of the dwelling as a home, occupied by a claimant. A homestead shall also include premises occupied by reason of ownership or lease in a cooperative housing corporation, mobile homes which are assessed as realty for local property tax purposes and the land, if owned or rented by the claimant, upon which the mobile home is situated, and other similar living accommodations, as well as a part of a multi-dwelling or multi-purpose building and a part of the land upon which it is built. It shall also include premises occupied by reason of the claimant’s ownership or rental of a dwelling located on land owned by a nonprofit incorporated association, of which the claimant is a member, if the claimant is required to pay a pro rata share of the property taxes levied against the association’s land. It shall also include premises occupied by a claimant if he is required by law to pay a property tax by reason of his ownership or rental (including a possessory interest) in the dwelling, the land, or both. An owner includes a person in possession under a contract of sale, deed of trust, life estate, joint tenancy or tenancy in common or by reason of statutes of descent and distribution. (4)  “Real property taxes” means all taxes on a homestead (exclusive of municipal assessments, delinquent charges, and interest) due and payable during a calendar year.

1. 42 U.S.C. § 1301 et seq.

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REAL ESTATE TAXATION

Ch. 54.1

Part V Ch. 41–48A Zoning, etc. Part VI Ch. 49–56 Taxation Part VII Ch. 57–63 Litigation Part VIII Ch. 64–67 L/T Part IX Ch. 68–72 Condos, etc. Index

gtb-parealestate22-all.indb 931

Part IV Ch. 36–40 Insurance

931

Part III Ch. 23–35 Mortgages

(2)   The amount of any claim for property tax rebate or rent rebate in lieu of property taxes for real property taxes or rent due and payable during calendar year 1985 and thereafter shall be determined in accordance with the following schedule:

2. 72 P.S. § 4751-4.

Part II Ch. 15–22 Deeds

Household Income Percentage of Real Property Taxes or Rent Rebate in Lieu of Property Taxes Allowed as Rebate $0,000 - $  4,999 100% $5,000 - $  5,999  80% $6,000 - $  6,999  60% $7,000 - $  7,999  40% $8,000 - $  8,999  20% $9,000 -   11,999  10%

Part I Ch. 1–14 Brokers

(5)  “Rent rebate in lieu of property taxes” means twenty per cent of the gross amount actually paid in cash or its equivalent in any calendar year to a landlord in connection with the occupancy of a homestead by a claimant, irrespective of whether such amount constitutes payment solely for the right of occupancy or otherwise. (6)  “Inflation dividend” means an additional amount calculated by the department in accordance with subsection (a.2) of section 4.2 (7)  “Claimant” means a person who files a claim for property tax rebate or rent rebate in lieu of property taxes and inflation dividend and was sixtyfive years of age or over, or whose spouse (if a member of the household) was sixty-five years of age or over, during a calendar year in which real property taxes, rent and inflation costs were due and payable or was a widow or widower and was fifty years of age or over during a calendar year or part thereof in which real property taxes, rent and inflation costs were due and payable, or was a permanently disabled person eighteen years of age or over during a calendar year or part thereof in which real property taxes, rent and inflation costs were due and payable. For the purposes of this act the term “widow” or “widower” shall mean the surviving wife or the surviving husband, as the case may be, of a deceased individual and who has not remarried except as provided in subsection (c) and (d) of section 4 of this act. For the purposes of this act the term “permanently disabled person” shall mean a person who is unable to engage in any substantial gainful activity by reason of any medically determinable physical or mental impairment which can be expected to continue indefinitely, except as provided in subsection (c) and (d) of section 4 of this act. (8)  “Department” means the Department of Revenue. (9)  “Inflation expenses” means the additional costs of those essential consumer needs of senior citizens in the Commonwealth. Those inflation expenses include but are not limited to the additional cost of medical prescriptions, energy needs, transportation and food and clothing essentials. § 4.  Property tax; rent rebate and inflation cost (a)  Deleted. (a.1)(1)  The amount of any claim for property tax rebate or rent rebate in lieu of property taxes for real property taxes or rent due and payable during calendar years 1981, 1982, 1983 and 1984 shall be determined in accordance with the following schedule:

Table of Contents

PART VI

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§ 4

PROPERTY TAX REBATES

Household Income Percentage of Real Property Taxes or Rent Rebate in Lieu of Property Taxes Allowed as Rebate $00,000 - $  4,999 100% $05,000 - $  5,499 100% $05,500 - $  5,999  90% $06,000 - $  6,499  80% $06,500 - $  6,999  70% $07,000 - $  7,499  60% $07,500 - $  7,999  50% $08,000 - $  8,499  40% $08,500 - $  8,999  35% $09,000 - $  9,999  25% $10,000 - $11,999  20% $12,000 - $12,999  15% $13,000 - $15,000  10% (a.2)(1)  To all claimants eligible for a property tax or rent rebate pursuant to subsection (a.1)(1) there shall be paid an inflation dividend determined in accordance with the following schedule: Household Income Dividend $0,000 -   4,999 $125 $5,000 -   5,999 $100 $6,000 -   6,999 $  75 $7,000 -   7,999 $  60 $8,000 -   8,999 $  45 $9,000 - 11,999 $  30 (2)   To all claimants eligible for a property tax or rent rebate pursuant to subsection (a.1)(2) there shall be paid an inflation dividend determined in accordance with the following schedule: Household Income Dividend $0,000 -   4,999 $125 $  5,000 -   5,499 $100 $  5,500 -   5,999 $100 $  6,000 -   6,499 $  75 $  6,500 -   6,999 $  7,000 -   7,499 $  60 $  7,500 -   7,999 $  60 $  8,000 -   8,499 $  45 $  8,500 -   8,999 $  45 $  9,000 -   9,999 $  30 $10,000 - 11,999 $  30 $12,000 - 12,999 $  30 $13,000 - 15,000 $  20 (a.3)   To all claimants eligible for a property tax or rent rebate for real property taxes or rent due and payable during calendar year 1980 there shall be paid one hundred dollars ($100) as an additional inflation dividend. The additional inflation dividend payment shall be mailed no later than the mailing of the application form for claiming a 1981 property tax or rent rebate. (b)  No claim shall be allowed if the amount of property tax or rent rebate computed in accordance with this section is less than ten dollars ($10), and the maximum amount of property tax or rent rebate payable shall not exceed five hundred dollars ($500). (c)   No claim shall be allowed if the claimant is a tenant of an owner of real property exempt from real property taxes.

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REAL ESTATE TAXATION

Ch. 54.1

Part I Ch. 1–14 Brokers Part II Ch. 15–22 Deeds Part III Ch. 23–35 Mortgages Part IV Ch. 36–40 Insurance Part V Ch. 41–48A Zoning, etc. Part VI Ch. 49–56 Taxation Part VII Ch. 57–63 Litigation Part VIII Ch. 64–67 L/T Part IX Ch. 68–72 Condos, etc.

(d)  If a homestead is owned or rented and occupied for only a portion of a year or is owned or rented in part by a person who does not meet the qualifications for a claimant, exclusive of any interest owned or leased by a claimant’s spouse, or if the claimant is a widow or widower who remarries, or if the claimant is a permanently disabled person who is no longer disabled, the department shall apportion the real property taxes or rent in accordance with the period or degree of ownership or leasehold or eligibility of the claimant in determining the amount of rebate for which a claimant is eligible. A claimant who receives public assistance from the Department of Public Welfare shall not be eligible for rent rebate in lieu of property taxes, or an inflation dividend during those months within which he receives public assistance. (e)   Rent shall not include subsidies provided by or through a governmental agency. § 5.  Filing of claim A claim for property tax or rent rebate and inflation dividend shall be filed with the department on or before the thirtieth day of June of the year next succeeding the end of the calendar year in which real property taxes or rent were due and payable: Provided, That claims filed after the June 30 deadline until December 31 of such calendar year shall be accepted by the Secretary of Revenue as long as funds are available to pay the benefits to the late filing claimants. No reimbursement on a claim shall be made from the State Lottery Fund earlier than the day following the thirtieth day of June provided in this act on which that claim may be filed with the department. Rebate claims for taxes or rent paid during calendar year 1977 shall be accepted by the Secretary of Revenue if filed with the department on or before the thirtieth day of April 1979. Only one claimant from a homestead each year shall be entitled to the property tax or rent rebate and inflation dividend. If two or more persons are able to meet the qualifications for a claimant, they may determine who the claimant shall be. If they are unable to agree, the department shall determine to whom the rebate and dividend is to be paid. § 6.  Proof of claim Each claim shall include reasonable proof of household income, the size and nature of the property claimed as a homestead and the rent or tax receipt, or other proof that the real property taxes on the homestead have been paid, or rent in connection with the occupancy of a homestead has been paid. If the claimant is a widow, or widower, a declaration of such status in such manner as prescribed by the Secretary of Revenue shall be included. Proof that a claimant is eligible to receive disability benefits under the Federal Social Security Act3 shall constitute proof of disability under this act. No person who has been found not to be disabled by the social security administration shall be granted a rebate or dividend under this act. A claimant not covered under the Federal Social Security Act shall be examined by a physician designated by the department and such status determined using the same standards used by the social security administration. It shall not be necessary that such taxes or rent were paid directly by the claimant: Provided, That the rent or taxes have been paid when the claim is filed. The first claim filed shall include proof that the claimant or his spouse was age sixty-five or over or fifty years or over in the case of a widow, or widower, during the calendar year in which real property taxes or rent were due and payable. § 7.  Incorrect claim Whenever on audit of any claim, the department finds the claim to have been incorrectly determined, it shall redetermine the correct amount of the claim and notify the claimant of the reason of the redetermination and the amount of the corrected claim.

Table of Contents

PART VI

3. 42 U.S.C. § 1301 et seq.

gtb-parealestate22-all.indb 933

Index

933

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§ 8

PROPERTY TAX REBATES

§ 8.  Funds for payment of claims Approved claims shall be paid from the State Lottery Fund established by the act of August 26, 1971 (P.L. 351, No. 91),4 known as the “State Lottery Law.” § 9.  Claim forms and rules and regulations Necessary rules and regulations shall be prescribed by a committee consisting of the Secretaries of Aging, Revenue and Community Affairs. The Secretary of Aging shall serve as the chairman of the committee. The Department of Revenue shall receive all applications, determine the eligibility of claimants, hear appeals, disburse payments, and make available suitable forms for the filing of claims. § 10.  Fraudulent claim; conveyance to obtain benefits In any case in which a claim is excessive and was filed with fraudulent intent, the claim shall be disallowed in full and a penalty of twenty-five per cent of the amount claimed shall be imposed. The penalty and the amount of the disallowed claim, if the claim has been paid, shall bear interest at the rate of one-half of one per cent per month from the date of the claim until repaid. The claimant and any person who assisted in the preparation or filing of a fraudulent claim shall be guilty of a misdemeanor, and, upon conviction thereof, shall be sentenced to pay a fine not exceeding one thousand dollars ($1,000), or undergo imprisonment not exceeding one year, or both. A claim shall be disallowed if the claimant received title to the homestead primarily for the purpose of receiving property tax rebate. § 11.  Repealed. 1973, Dec. 5, No. 136, § 2 § 11.1.  Petition for redetermination Any claimant whose claim is either denied, corrected or otherwise adversely affected by the department, may file with the department a petition for redetermination on forms supplied by the department within ninety days after the date of mailing of written notice by the department of such action. Such petition shall set forth the grounds upon which claimant alleges that such departmental action is erroneous or unlawful, in whole or part, and shall contain an affidavit or affirmation that the facts contained therein are true and correct. An extension of time for filing the petition may be allowed for cause but not to exceed one hundred twenty days. The department shall hold such hearings as may be necessary for the purpose of redetermination, and each claimant who has duly filed such petition for redetermination shall be notified by the department of the time when, and the place where, such hearing in his case will be held. It shall be the duty of the department, within six months after receiving a filed petition for redetermination, to dispose of the matters raised by such petition and mail notice of the department’s decision to the claimant. § 11.2.  Review by Board of Finance and Revenue Within ninety days after the date of official receipt by the claimant of notice mailed by the department of its decision on any petition for redetermination filed with it, the claimant who is adversely affected by such decision may by petition request the Board of Finance and Revenue to review such action. The failure of the department to officially notify the claimant of a decision within the sixmonths period provided for by section 11.15 shall act as a denial of such petition, and a petition for review may be filed with the Board of Finance and Revenue within one hundred twenty days after written notice is officially received by the claimant that the department has failed to dispose of the petition within the six-months period prescribed by section 11.1. Every petition for redetermination filed hereunder shall state the reasons upon which the claimant relies, or shall incorporate by reference the petition for redetermination in which such reasons 4. 72 P.S. § 3761-1 et seq. 5. 72 P.S. § 11.1.

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REAL ESTATE TAXATION

Ch. 54.2

Part V Ch. 41–48A Zoning, etc. Part VI Ch. 49–56 Taxation Part VII Ch. 57–63 Litigation

Sec.

Part VIII Ch. 64–67 L/T

4751-21. Construction 4751-22. Declaration of policy 4751-23. Definitions 4751-24. Special tax provisions; refund or forgiveness of real estate taxes 4751-25. Application; proof of claim 4751-26. Administration and enforcement

Part IX Ch. 68–72 Condos, etc.

§ 4751-21.  Construction This act shall be construed to authorize the governing bodies of cities of the first class to provide by ordinance for the implementation of the special tax provisions contained in this act which allow for the refund or forgiveness of real property tax liability of certain low-income senior citizens attributable to real property tax rate increases and increases in the assessed value of the low-income senior

Index

gtb-parealestate22-all.indb 935

Part IV Ch. 36–40 Insurance

72 P.S. § 4751-21 to 72 P.S. § 4751-26

935

Part III Ch. 23–35 Mortgages

CHAPTER 54.2 CITIES OF THE FIRST CLASS LOW-INCOME SENIOR CITIZENS PROPERTY TAX

§ § § § § §

Part II Ch. 15–22 Deeds

This act shall take effect immediately, applicable to tax years beginning January 1, 1971, and thereafter.

Part I Ch. 1–14 Brokers

shall have been stated. The petition shall be supported by affidavit that the facts set forth therein are correct and true. The Board of Finance and Revenue shall act in disposition of such petitions filed with it within six months after they have been received, and in the event of failure of said board to dispose of any such petition within six months, the action taken by the department upon the petition for redetermination shall be deemed sustained. The Board of Finance and Revenue may sustain the action taken by the department on the petition for redetermination or it may take such other action as it shall deem is necessary and consistent with provisions of this act. Notice of the action of the Board of Finance and Revenue shall be given by mail to the department and to the claimant. § 11.3.  Appeal Any claimant, aggrieved by the decision of the Board of Finance and Revenue may appeal from the decision of the Board of Finance and Revenue, in the manner now or hereafter provided by law for appeals from decisions of said board in tax cases. § 11.4.  Grants to area agencies on aging for services to older persons For fiscal year 1981-1982 six million two hundred thousand dollars ($6,200,000) is hereby appropriated from the Lottery Fund to the Department of Aging for service grants to area agencies on aging. The department shall allocate these funds to area agencies on aging on the basis of each agency’s proportionate share of all State and Federal Funds currently available. Such funds shall not be used for costs of administration. § 11.5.  Repealed. 1982, Dec. 15, P.L. 1288, No. 291, § 6, imd. effective § 12.  Effective date

Table of Contents

PART VI

12/22/21 10:45 AM

§ 4751-22

PROPERTY TAX REBATES

citizen’s homestead, thereby implementing section 2(b)(ii) of Article VIII of the Constitution of Pennsylvania. § 4751-22.  Declaration of policy (1)   In recognition of the powers contained in section 2(b)(ii) of Article VIII of the Constitution of Pennsylvania which provides therein for the establishing as a class or classes of subjects of taxation the property or privileges of persons who, because of poverty or age, are determined to be in need of special tax provisions, it is the legislative intent and purpose of this act to implement the powers under such constitutional provision by establishing special tax provisions for a class of persons within cities of the first class as provided in this act. (2)   Having determined that there are persons within cities of the first class of this Commonwealth whose incomes are such that the governing bodies of cities of the first class may decide that the imposition of the full amount of real estate taxes on these persons deprives them and their dependents of the bare necessities of life and having further determined that poverty is a relative concept inextricably joined with actual income, the number of persons dependent upon such income and the unlikelihood of a taxpayer being able by reason of age to increase that income it is deemed to be a matter of public policy to provide special tax provisions for that class of persons designated in this act within cities of the first class to enable governing bodies of cities of the first class to by ordinance relieve their economic burden. § 4751-23.  Definitions The following words and phrases when used in this act shall have the meanings given to them in this section unless the context clearly indicates otherwise: “Dependent.” A child who derives more than one-half of the child’s total support during the entire taxable year from a taxpayer eligible for the special tax provisions of this act. Any person who is a dependent pursuant to the provisions of the Internal Revenue Code of 1986 (Public Law 99-514, 26 U.S.C. § 1 et seq.) during a taxable year shall prima facie be deemed a dependent for the purpose of this act. “Homestead.” A dwelling used as a home, occupied by a taxpayer as a primary residence. The term includes, but is not limited to, mobile homes which are assessed as realty for local property tax purposes and the land upon which the mobile home is situated and other similar living accommodations as well as a part of a multidwelling or multipurpose building and a part of the land upon which it is built to the extent that the eligible taxpayer is chargeable by a city of the first class for property taxes. The term also includes, but is not limited to, premises occupied by an eligible taxpayer if he is required by law to pay a property tax by reason of his ownership or rental of, including a possessory interest in, the dwelling, the land or both. The term “by law” shall not be deemed to include a contractual obligation between the eligible taxpayer and a person who would otherwise be responsible to a city of the first class for the payment of the tax. An owner includes a person in possession under contract of sale, deed of trust, life estate, joint tenancy or tenancy in common. “Income.” All income from whatever source derived, including, but not limited to, salaries, wages, bonuses, commissions, income from self-employment, alimony, support money, cash public assistance and relief, the net amount of any pensions or annuities, including railroad retirement benefits, all benefits received under the Social Security Act (49 Stat. 620, 42 U.S.C. § 301 et seq.), except Medicare benefits, all benefits received under State employment insurance laws and veterans’ disability payments, all interest received from the Federal or any state government, or any instrumentality or political subdivision thereof, realized capital gains, net income from rentals, workers’ compensation and the gross amount of loss of time insurance benefits, life insurance benefits and proceeds, except the

936

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REAL ESTATE TAXATION

Ch. 54.2

Part I Ch. 1–14 Brokers Part II Ch. 15–22 Deeds Part III Ch. 23–35 Mortgages Part IV Ch. 36–40 Insurance Part V Ch. 41–48A Zoning, etc. Part VI Ch. 49–56 Taxation Part VII Ch. 57–63 Litigation Part VIII Ch. 64–67 L/T Part IX Ch. 68–72 Condos, etc.

first $10,000 of the total of death benefit payment, and gifts of cash or property, other than transfers by gift between members of a household, in excess of a total value of $500, but shall not include surplus food or other relief in kind supplied by a governmental agency or property tax rebate. “Low-income taxpayer.” A taxpayer whose income does not exceed the maximum annual income allowable for an eligible claimant to participate in the Commonwealth’s program for pharmaceutical assistance for the elderly, pursuant to the act of August 14, 1991 (P.L. 342, No. 36),6 known as the Lottery Fund Preservation Act. “Poverty.” An economic condition wherein the total amount of household income is insufficient to adequately provide the taxpayer, the taxpayer’s spouse and dependent children with the necessities of life. For the purpose of determining eligibility for the tax exemptions and special tax provisions of this act, a taxpayer is deemed to be living at the poverty level if the taxpayer meets the low-income provisions defined under this act. “Real estate taxes.” All taxes on a homestead imposed or authorized to be imposed for cities of the first class and school districts of the first class. “Senior citizen.” A taxpayer who is 65 years of age or older or whose spouse, if a member of the household, is 65 years of age or older during a calendar year in which real property taxes are due and payable or was a widow or widower of someone who was 65 years of age or older and was 50 years of age or older during a calendar year or part thereof in which real estate taxes were due and payable. The term “widow” or “widower” shall mean the surviving wife or the surviving husband, as the case may be, of a deceased individual who has not remarried. “Special tax provision.” The standards and qualifications provided under this act to establish the eligibility for and the refund or forgiveness of a portion of the taxpayer’s real estate tax liability. § 4751-24.  Special tax provisions; refund or forgiveness of real estate taxes (a)  General rule.—Any taxpayer within a city of the first class who meets the standards and qualifications established by this act shall be deemed a separate class of subjects of taxation, and, as such, each governing body of a city of the first class may by ordinance provide that such taxpayers shall be entitled to the benefit of the special tax provisions of this act. (b)   Refund or forgiveness of real estate taxes.—Pursuant to the provisions of such ordinance, eligible taxpayers shall be entitled to a refund or forgiveness which have been paid over to or would, except for the provisions of this act, be payable to cities of the first class and school districts of the first class for real estate taxes authorized or imposed for city and school district purposes in accordance with the following provisions: (1)  Low-income senior citizens taxpayers shall be entitled to receive refunds or forgiveness of that part of their real estate tax liability attributable to any real estate tax rate increase or an increase in the assessed value of the taxpayer’s homestead occurring after the effective date of any ordinance implementing this act. (2)   In the event that a taxpayer who had previously been eligible to receive refunds or forgiveness of taxes as authorized by this act is no longer eligible by reason of failing to meet the low-income requirement provided under this act, the taxpayer shall be billed and shall pay real estate taxes at the then current real estate tax rate and assessed value. If for subsequent tax years a

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PART VI

6. 72 P.S. § 3762-101 et seq.

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Index

937

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§ 4751-25

PROPERTY TAX REBATES

taxpayer reestablishes eligibility for refunds or forgiveness of real estate taxes by again meeting the low-income requirements provided under this act, the amount of real estate taxes that the taxpayer is eligible to have refunded or forgiven is that part of their real estate tax liability attributable to any real estate tax rate increase or an increase in the assessed value of the taxpayer’s homestead occurring no earlier than the calendar year prior to the tax year for which the taxpayer reestablishes eligibility. (3)   The maximum amount of real estate taxes which may be refunded or forgiven may be limited by ordinance. (4)   If a homestead is owned for only a portion of a year or is owned in part by a person who is not a low-income taxpayer, the tax collector shall apportion the real estate taxes in accordance with the period or portion of ownership of the eligible taxpayer in determining the amount of refund or forgiveness for which a taxpayer is eligible. § 4751-25.  Application; proof of claim (a)  Application.—Any person desiring to take advantage of the special tax provisions pursuant to ordinance adopted under this act shall notify each city of the first class granting the special tax provisions in writing on a form provided by it submitted at the time provided in the ordinance or regulation. Only one taxpayer for each homestead shall be entitled to the real estate tax refund or forgiveness of taxes. If two or more persons residing at any homestead meet the qualification for a real estate tax refund or forgiveness of taxes, they may determine among themselves who shall receive the refund or forgiveness of taxes. If they are unable to agree, each city of the first class shall determine to whom the refund or forgiveness of taxes is to apply. (b)  Proof of claim.—Each application shall include reasonable proof of household income, the location and nature of the property claimed as a homestead and the tax bill or receipt for the real estate taxes owed or paid in connection with the occupancy of the homestead. It shall not be necessary that real estate taxes are paid directly by the taxpayer. The first application filed shall include proof that the taxpayer or the taxpayer’s spouse is or will be 65 years of age or older during the calendar year in which real estate taxes are due and payable. § 4751-26.  Administration and enforcement Each city of the first class shall provide by ordinance, rule or regulation for the administration and enforcement of any ordinance adopted pursuant to this act as is provided by law.

CHAPTER 54.3 TAX EXTENSION FOR THE U.S. ARMED SERVICES 72 P.S. § 4753-1 to 72 P.S. § 4753-4

Sec. § § § §

1. Extension of tax deadlines 2. Applicability 3. Time extension information 4. Retroactivity

938

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REAL ESTATE TAXATION

Ch. 54.3

Part IV Ch. 36–40 Insurance Part V Ch. 41–48A Zoning, etc. Part VI Ch. 49–56 Taxation Part VII Ch. 57–63 Litigation Part VIII Ch. 64–67 L/T Part IX Ch. 68–72 Condos, etc. Index

gtb-parealestate22-all.indb 939

Part III Ch. 23–35 Mortgages

939

Part II Ch. 15–22 Deeds

7. 24 P.S. § 1-101 et seq. 8. 53 P.S. § 6901 et seq. 9. 53 P.S. § 15971 et seq.

Part I Ch. 1–14 Brokers

§ 1.  Extension of tax deadlines (a)  General rule.—The following individuals may be accorded an extension of the legal deadline for the filing of any tax return or the payment of any tax, as described in section 2, without being subject to any interest, penalty or other charges or forfeiture of eligibility for any discount provided by law: (1)   Any resident of this Commonwealth serving in the armed forces of the United States in an area designated by Presidential Executive order as a “combat zone” or who has been ordered to active duty with the armed forces of the United States as a result of Operations Desert Shield and Desert Storm subsequent to August 2, 1990, and prior to the legal deadline for the filing of any tax return or the payment of any tax, as described in section 2, may have such deadline extended until the date 180 days following the date of: (i)   the return of that resident to the United States or prior duty station; (ii)   release from active duty; or (iii)  release of the resident from a military or veterans’ hospital in the case of a service-connected injury. (2)  Any resident of this Commonwealth serving in a civilian capacity in support of the United States Armed Forces subsequent to August 2, 1990, in the “combat zone” in the Middle East as designated by the Presidential Executive order or serving outside the boundaries of this Commonwealth in support of such armed forces and prior to the legal deadline for the filing of any tax return or the payment of any tax, as described in section 2, may have such deadlines extended until the date 180 days following: (i)   the date of the return of that employee to this Commonwealth; or (ii)   the date designated by the Presidential Executive order as the date of termination of combative activities in the Middle East “combat zone,” whichever occurs first. (3)   Any spouse of an individual qualifying under paragraph (1) or (2) shall have the same rights and be subject to the same restrictions as provided in this section. (b)  Liability waived.—The estate of any individual covered under subsection (a)(1) or (2) who dies while serving in a “combat zone” or dies as a result of injuries received while in a “combat zone” may not be liable for payment of the decedent’s earned income tax for the year of death and for the year immediately preceding the year of death. § 2.  Applicability Local taxing authorities may adopt any or all of the provisions of this act in regard to the following taxes imposed or collected under the act of March 10, 1949 (P.L. 30, No. 14), known as the Public School Code of 1949;7 the act of December 31, 1965 (P.L. 1257, No. 511), known as The Local Tax Enabling Act;8 the act of August 5, 1932 (Sp.Sess., P.L. 45, No. 45), referred to as the Sterling Act;9 any of the various county and municipal codes; and any other applicable statute: (1)   Real property taxes. (2)   Earned income taxes. (3)   Intangible personal property taxes. (4)   Per capita taxes.

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§ 3

PROPERTY TAX REBATES

(5)  Occupation taxes. (6)   Occupational privilege taxes. § 3.  Time extension information Any local taxing authority which adopts any of the options under this act and which issues any notice relating to a delinquent return or overdue tax payment shall include information relating to any time extension available under this act. § 4.  Retroactivity This act shall be retroactive to August 2, 1990.

CHAPTER 54.4 NEW HOME CONSTRUCTION LOCAL TAX ABATEMENT ACT 72 P.S. § 4754-1 to 72 P.S. § 4754-6

Sec. § § § § § §

1. Short title 2. Construction 3. Definitions 4. New residential construction 5. Exemption schedule 6. Procedure for obtaining an exemption

§ 1.  Short title This act shall be known and may be cited as the New Home Construction Local Tax Abatement Act. § 2.  Construction This act shall be construed to authorize local taxing authorities to exempt improvement to certain unimproved residential property implementing section 2(b)(iv) of Article VIII of the Constitution of Pennsylvania. § 3.  Definitions The following words and phrases when used in this act shall have the meanings given to them in this section unless the context clearly indicates otherwise: “Improvement.” The erection or construction of one or more residential buildings in compliance with laws, ordinances or regulations governing such actions. “Local taxing authority.” A county, city, borough, incorporated town, township, school district or home rule municipality having authority to levy real property taxes. “Unimproved residential property.” Any unimproved real estate owned by an individual, association, corporation or governmental entity located in this Commonwealth, which is or may be zoned, in accordance with the provisions of the act of July 31, 1968 (P.L. 805, No. 247), known as the Pennsylvania Municipalities Planning Code,10 for residential use.

10. 53 P.S. § 10101 et seq.

940

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REAL ESTATE TAXATION

Ch. 54.4

Part III Ch. 23–35 Mortgages Part IV Ch. 36–40 Insurance Part V Ch. 41–48A Zoning, etc. Part VI Ch. 49–56 Taxation Part VII Ch. 57–63 Litigation Part VIII Ch. 64–67 L/T Part IX Ch. 68–72 Condos, etc. Index

gtb-parealestate22-all.indb 941

Part II Ch. 15–22 Deeds

941

Part I Ch. 1–14 Brokers

§ 4.  New residential construction (a)   Power to grant exemptions.—Each local taxing authority may, by ordinance or resolution, exempt from real property taxation the assessed valuation of improvements to unimproved residential property in the amounts and in accordance with the provisions and limitations set forth in this act. Prior to the adoption of the ordinance or resolution authorizing the granting of tax exemptions, the local taxing authority by ordinance or resolution shall affix the boundaries of the unimproved residential property or properties wholly or partially located within its jurisdiction for which the tax exemption shall be available. Such ordinance or resolution shall also specify the purpose for determining such boundaries, including, but not limited to, maintenance of neighborhoods, consistency of zoning districts, rejuvenation of blighted areas and development of vacant property. Prior to the adoption of the ordinance or resolution authorizing the granting of tax exemptions, the local taxing authority shall conduct at least one public hearing for the purpose of discussion of the provisions of the ordinance, including, but not limited to, the abatement period and the exemption schedule. At the public hearing, local taxing authorities, planning commissioners, redevelopment authorities, and other public and private agencies, individuals, associations and corporations which are knowledgeable and interested in the improvement of unimproved residential property may present their recommendations concerning the location of boundaries of the unimproved residential property or properties for the guidance of the local taxing authority. The ordinance or resolution adopted by a local taxing authority shall specify the cost of improvements per dwelling unit to be exempted, and the schedule of taxes exempted. (b)   Cooperation between municipalities.—Two or more local taxing authorities may join together for the purpose of implementing this act. The local taxing authorities may, by implementing ordinance or resolution, agree to adopt tax exemptions contingent upon the similar adoption by an adjacent local taxing authority or by a local taxing authority with mutual jurisdiction, within the limitations provided herein. (c)  Limitation.—In the event a local taxing authority enacts an ordinance under subsection (a) and subsequently amends the ordinance to shorten the abatement period provided for in the original or latest version of the ordinance, the taxing authority shall not reduce the abatement period for those property owners eligible for and participating in the previously enacted abatement program. In the event a local taxing authority enacts an abatement ordinance under subsection (a) and subsequently amends the ordinance to extend the abatement period provided for in the original or latest version of the ordinance, the taxing authority may extend the abatement period for those property owners eligible for and participating in the previously enacted abatement program provided, however, that in no case shall the original period plus the extension result in an abatement period that exceeds two years. § 5.  Exemption schedule (a)  Amount of exemption.—A local taxing authority granting a tax exemption pursuant to this act may provide for tax exemption on the assessment attributable to the actual cost of improvements or up to any maximum cost uniformly established by the local taxing authority. The maximum cost shall apply uniformly to all eligible unimproved residential property within the local taxing authority jurisdiction. (b)   Schedule of taxes.—Whether or not the assessment eligible for exemption is based upon actual cost or a maximum cost, the actual amount of taxes exempted shall be in accordance with the schedule of taxes exempted established by the local taxing authority, subject to the following limitations: (1)   The length of the schedule of taxes exempted which shall be known as the abatement period shall not exceed two years.

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§ 6

PROPERTY TAX REBATES

(2)   The schedule of taxes exempted shall stipulate the portion of improvements to be exempted each year. (3)   The exemption from taxes shall be limited to the additional assessment valuation attributable to the actual cost of improvements to the property or not in excess of the maximum cost per unit established by the local taxing authority. § 6.  Procedure for obtaining an exemption (a)  Notification.—Any person desiring tax exemption, pursuant to ordinances or resolutions adopted pursuant to this act, shall notify each local taxing authority granting the exemption on a form provided by the local taxing authority. The form shall be submitted between the time the person desiring tax exemption secures the building permit and when the occupancy permit is issued, or if no building permit or other notification of improvement is required, prior to the time the structure is assessed for tax purposes. A copy of the exemption request shall be forwarded to the Board of Assessment and Revision of Taxes or other appropriate assessment agency. The assessment agency shall not be required to reassess that portion of the property which has been exempted by the municipality for taxation purposes until the exemption period has expired. Appeals from any reassessment and the amounts eligible for the exemption may be taken by the taxpayer or the local taxing authorities as provided by law. (b)   Application of changes.—Except as may be authorized in section 4(c),11 the cost of improvements to be exempted and the schedule of taxes exempted existing at the time of the submission of the form as provided in subsection (a) shall be applicable to that exemption request.

11. 72 P.S. § 4754-4(c).

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Table of Contents

CHAPTER 55

Chapter

Part III Ch. 23–35 Mortgages Part IV Ch. 36–40 Insurance

CHAPTER 55.1 IMPROVEMENT OF DETERIORATING REAL PROPERTY OR AREAS TAX EXEMPTION ACT 72 P.S. § 4711-101 to 72 P.S. § 4711-305

Sec.

4711-101. Short title 4711-102. Construction 4711-103. Definitions 4711-201. Definitions 4711-202. Deteriorated neighborhoods; procedures 4711-203. Exemption schedules; maximum exemption 4711-204. Nonrecognition for other purposes of increased assessed valuation 4711-205. Procedure for obtaining exemption 4711-301. Definitions 4711-302. Deteriorating areas; procedures 4711-303. Exemption schedule; maximum exemption 4711-304. Nonrecognition for other purposes of increased valuation 4711-305. Procedure for obtaining exemption

Part V Ch. 41–48A Zoning, etc. Part VI Ch. 49–56 Taxation

§ § § § § § § § § § § § §

Part IX Ch. 68–72 Condos, etc. Index

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Part VIII Ch. 64–67 L/T

§ 4711-101.  Short title This act shall be known and may be cited as the “Improvement of Deteriorating Real Property or Areas Tax Exemption Act.” § 4711-102.  Construction (a)   This act shall be construed to authorize local taxing authorities to exempt improvements to certain deteriorated residential property and areas thereby implementing clause (iii) of subsection (b) of section 2 of Article VIII of the Constitution of Pennsylvania. (b)   The exemptions granted under this act shall not be so considered by the State Tax Equalization Board in arriving at the market value of school district real property as to reduce the subsidy of any school district. § 4711-103.  Definitions As used in this act: “Local taxing authority” means a county, city, borough, incorporated town, township or school district having authority to levy real property taxes.

Part VII Ch. 57–63 Litigation

Article 1

943

Part II Ch. 15–22 Deeds

55.1  Improvement of Deteriorating Real Property or Areas Tax Exemption Act    72 P.S. § 4711-101 to 72 P.S. § 4711-305 55.2   Local Economic Revitalization Tax Assistance Act    72 P.S. § 4722 to 72 P.S. § 4731 55.3   Tax Exemption and Mixed-Use Incentive Program Act    72 P.S. § 4712-101 to 72 P.S. § 4712-108 55.4   First and Second Class County Property Tax Relief Act    72 P.S. § 4749.1 to 72 P.S. § 4749.6

Part I Ch. 1–14 Brokers

REVITALIZATION EXEMPTIONS FROM TAXATION

12/22/21 10:45 AM

§ 4711-201 REVITALIZATION EXEMPTIONS Article 2 § 4711-201.  Definitions As used in this article: (1)  “Deteriorated property” means a dwelling unit located in a deteriorated neighborhood, as hereinafter provided, or a dwelling unit which has been or upon request is certified by a health, housing or building inspection agency as unfit for human habitation for rent withholding, or other health or welfare purposes, or has been the subject of an order by such an agency requiring the unit to be vacated, condemned or demolished by reason of noncompliance with laws, ordinances or regulations. (2)  “Dwelling unit” means, unless otherwise defined in the ordinance or resolution providing for tax exemption, a house, apartment, or group of rooms intended for occupancy as separate living quarters by family or other groups or a person living alone, containing a kitchen or cooking equipment for the exclusive use of the occupants. (3)  “Improvement” means repair, construction or reconstruction, including alterations and additions, having the effect of rehabilitating a structure so that it becomes habitable or attains higher standards of housing safety, health or amenity, or is brought into compliance with laws, ordinances or regulations governing housing standards; ordinary upkeep and maintenance shall not be deemed an improvement. § 4711-202.  Deteriorated neighborhoods; procedures (a)   Each local taxing authority may by ordinance or resolution exempt from real property taxation the assessed valuation of improvements to deteriorated properties in the amounts and in accordance with the schedules and limitations hereinafter provided. Prior to the adoption of the ordinance or resolution authorizing the granting of tax exemptions, the local taxing authority shall affix the boundaries of a deteriorated neighborhood or neighborhoods, wholly or partially located within its jurisdiction, if any. At least one public hearing shall be held by the local taxing authority for the purpose of determining said boundaries. At the public hearing the planning commission or redevelopment authority and other public and private agencies and individuals, knowledgeable and interested in the improvement of deteriorated neighborhoods, shall present their recommendations concerning the location of boundaries of a deteriorated neighborhood or neighborhoods for the guidance of the local taxing authorities, such recommendations taking into account the criteria set forth in the act of May 24, 1945 (P.L. 991, No. 385), known as the “Urban Redevelopment Law,”1 for the determination of “blighted areas,” and the criteria set forth in the act of November 29, 1967 (P.L. 636, No. 292), known as the “Neighborhood Assistance Act,”2 for the determination of “impoverished areas,” and the following criteria: unsafe, unsanitary and overcrowded buildings; vacant, overgrown and unsightly lots of ground; a disproportionate number of tax delinquent properties; excessive land coverage, defective design or arrangement of buildings, street or lot layouts; economically and socially undesirable land uses. The ordinance shall specify a description of each such neighborhood as determined by the local taxing authority, as well as the cost of improvements per dwelling unit to be exempted, and the schedule of taxes exempted as hereinafter provided. (b)   Two or more local taxing authorities may join together for the purpose of determining the boundaries of a deteriorated neighborhood, and such local taxing authorities shall cooperate fully with each other for the purposes of implementing 1. 35 P.S. § 1701 et seq. 2. 62 P.S. § 2081 et seq.

944

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REAL ESTATE TAXATION

Ch. 55.1

§ 4711-203.  Exemption Schedules; Maximum Exemption

§ 4711-204.   Nonrecognition for other purposes of increased assessed valuation If a deteriorated property is granted tax exemption pursuant to this article, the improvement shall not during the exemption period be considered as a factor in assessing other properties.

gtb-parealestate22-all.indb 945

Index

945

Part IX Ch. 68–72 Condos, etc.

(c)  The exemption from taxes authorized by this article shall be upon the property exempted and shall not terminate upon the sale or exchange of the property, unless otherwise provided in this article.

Part VIII Ch. 64–67 L/T

(b)   The exemption from taxes shall be limited to the additional assessment valuation attributable to the actual costs of improvements to deteriorated property. The date of the construction shall be the date of issuance of the building permit, improvement record or other required notification of construction. No tax exemption shall be granted under the provisions of this article for any improvements to any dwelling unit in excess of limitation set forth in this subsection.

Part VII Ch. 57–63 Litigation

(5)   A local taxing authority may provide for tax exemption on the assessment attributable to the actual cost of construction of the dwelling unit in accordance with a schedule established by the taxing authority, provided that the exemption schedule does not exceed a period of ten years.

Part VI Ch. 49–56 Taxation

(4)   For the first, second, third, fourth, fifth, sixth, seventh, eighth, ninth and tenth year for which improvements would otherwise be taxable, one hundred per cent of the eligible assessment shall be exempted; after the tenth year the exemption shall terminate.

Part V Ch. 41–48A Zoning, etc.

(3)  For the first, second and third year for which improvements would otherwise be taxable, one hundred per cent of the eligible assessment shall be exempted; after the third year the exemption shall terminate; or

Part IV Ch. 36–40 Insurance

(2)   For the first year for which improvements would otherwise be taxable, one hundred per cent of the eligible assessment shall be exempted; for the second year, eighty per cent of the eligible assessment shall be exempted; for the third through fifth years, sixty, forty, and twenty per cent, respectively, of the eligible assessment shall be exempted; after the fifth year, the exemption shall terminate;

Part III Ch. 23–35 Mortgages

(1)   For the first year for which improvements would otherwise be taxable, one hundred per cent of the eligible assessment shall be exempted; for the second year, ninety per cent of the eligible assessment shall be exempted; for the third through tenth years, eighty, seventy, sixty, fifty, forty, thirty, twenty, and ten per cent, respectively, of the eligible assessment shall be exempted; after the tenth year, the exemption shall terminate;

Part II Ch. 15–22 Deeds

(a)   A local taxing authority granting a tax exemption pursuant to the provisions of this article may provide for tax exemption on the assessment attributable to the actual cost of improvements up to the maximum cost per dwelling unit herein specified or up to any lesser multiple of one thousand dollars ($1,000). If a local taxing authority by ordinance or resolution specifies a lesser cost than the maximum provided by this act, such amount shall not be increased by any subsequent ordinance or resolution for a period of two years, nor shall the schedule of taxes exempted be changed for such period. Whether or not the assessment eligible for exemption is based upon a maximum cost or a lesser cost, the actual amount of taxes exempted shall be in accordance with one of the following schedules:

Part I Ch. 1–14 Brokers

this act. The local taxing authorities may by implementing ordinance or resolution agree to adopt tax exemptions contingent upon the similar adoption by an adjacent or coterminous local taxing authority, within the limitations provided herein.

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12/22/21 10:45 AM

§ 4711-205 REVITALIZATION EXEMPTIONS § 4711-205.  Procedure for obtaining exemption Any person desiring tax exemption pursuant to ordinances or resolutions adopted pursuant to this article, shall notify each local taxing authority granting such exemption in writing on a form provided by it submitted at the time he secures the building permit, or if no building permit or other notification of improvement is required, at the time he commences construction. A copy of the exemption request shall be forwarded to the board of assessment and revision of taxes or other appropriate assessment agency. The assessment agency shall, after completion of the improvement, assess separately the improvement and calculate the amounts of the assessment eligible for tax exemption in accordance with the limits established by the local taxing authorities and notify the taxpayer and the taxing authorities of the reassessment and amounts of the assessment eligible for exemption. Appeals from the reassessment and the amounts eligible for the exemption may be taken by the taxpayer or the local taxing authorities as provided by law. The cost of improvements per dwelling unit to be exempted and the schedule of taxes exempted existing at the time of the initial request for tax exemption shall be applicable to that exemption request, and subsequent amendments to the ordinance, if any, shall not apply to requests initiated prior to their adoption.

Article 3 § 4711-301.  Definitions As used in this article: “Deteriorating area” means that portion of the municipality which the municipal governing body determines to be physically blighted on the basis of one or more of the following standards: (1)  The residential buildings, by reason of age, obsolescence, inadequate or outmoded design or physical deterioration have become economic and/or social liabilities. (2)  The residential buildings are substandard or unsanitary for healthful and safe living purposes. (3)   The residential buildings are overcrowded, poorly spaced, or are so lacking in light, space and air as to be conducive to unwholesome living. (4)  The residential buildings are faultily arranged, cover the land to an excessive extent or show a deleterious use of land, or exhibit any combination of the above which is detrimental to health, safety or welfare. (5)  A significant percentage of buildings used for residential purposes is more than 20 years of age. (6)   A substantial amount of unimproved, overgrown and unsightly vacant land exists which has remained so for a period of five years or more indicating a growing or total lack of utilization of land for residential purposes. (7)   A disproportionate number of tax exempt or delinquent properties exists in the area. “Dwelling unit” means, unless otherwise defined in the ordinance or resolution providing for tax exemption, a house, double house or duplex, townhouse or row house, apartment, or any building intended for occupancy as living quarters by an individual, a family or families or other groups of persons, which living quarters contain a kitchen or cooking equipment for the exclusive use of the occupant or occupants.

946

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REAL ESTATE TAXATION

Ch. 55.1

Part IV Ch. 36–40 Insurance Part V Ch. 41–48A Zoning, etc. Part VI Ch. 49–56 Taxation Part VII Ch. 57–63 Litigation Part VIII Ch. 64–67 L/T Part IX Ch. 68–72 Condos, etc. Index

gtb-parealestate22-all.indb 947

Part III Ch. 23–35 Mortgages

947

Part II Ch. 15–22 Deeds

3. 35 P.S. § 1701 et seq. 4. 62 P.S. § 2081 et seq.

Part I Ch. 1–14 Brokers

“Municipal governing body” means a city, borough, incorporated town or township. “Residential construction” means the building or erection of dwelling units, as defined above, upon vacant land or land specifically prepared to receive such structures. § 4711-302.  Deteriorating areas; procedures (a)   Each local taxing authority may, by ordinance or resolution, exempt from all real property taxation the assessed valuation of any residential construction built in a deteriorating area from and after the effective date of this article in the amounts and in accordance with the schedule and limitations hereinafter provided. Prior to the adoption of the ordinance or resolution authorizing the granting of such exemptions from taxation, an interested municipal governing body shall determine the boundaries of deteriorating areas, wholly or partially located within its jurisdiction. At least one public hearing shall be held by the municipal governing body for the purposes of delineating said boundaries. At the public hearings any local taxing authority, planning commission or redevelopment authority and other public and private agencies and individuals, knowledgeable and interested in the improvement of deteriorating areas, shall present their recommendations concerning the location of boundaries of a deteriorating area or areas for the guidance of the municipal governing bodies, such recommendations to take into account not only the standards set forth in section 301, but also those set forth in the act of May 24, 1945 (P.L. 991, No. 385), known as the “Urban Redevelopment Law,”3 for the determination of “blighted areas,” and the act of November 29, 1967 (P.L. 636, No. 292), known as the “Neighborhood Assistance Act,”4 for the determination of “impoverished areas.” The ordinance or resolution shall specify a description of each such areas as determined by the municipal governing body, the maximum assessment per dwelling unit which may be exempted, and the schedule of taxes exempted as hereinafter provided. (b)   Two or more municipal governing bodies may join for the purpose of determining the boundaries of a deteriorating area and to establish the maximum cost per dwelling unit, and such municipal governing bodies shall cooperate fully with each other for the purpose of implementing this article. The local taxing authorities may, by implementing ordinance or resolution, agree to adopt tax exemptions contingent upon the similar adoption by an adjacent or coterminous local taxing authority, within the limitations provided herein. (c)   An area can be established as being deteriorating and decayed even though the area so designated is not a slum consisting exclusively of tangible physical blight. Any such deteriorating area may include buildings or improvements not in themselves blighted or dilapidated. § 4711-303.  Exemption schedule; maximum exemption (a)   A local taxing authority granting a tax exemption pursuant to the provisions of this article may provide for tax exemption on the assessment attributable to the actual cost of construction of the new dwelling unit in accordance with one of the following schedules: (1)  For the first, second and third year for which said newly-constructed dwelling unit or units would otherwise be taxable, one hundred per cent of the eligible assessment shall be exempted; after the third year the exemption shall terminate;

Table of Contents

PART VI

12/22/21 10:45 AM

§ 4711-304 REVITALIZATION EXEMPTIONS (2)   For the first year for which said newly-constructed dwelling unit or units would otherwise be taxable, one hundred per cent of the eligible assessment shall be exempted; for the second year, ninety per cent of the eligible assessment shall be exempted; for the third through tenth years, eighty, seventy, sixty, fifty, forty, thirty, twenty, and ten per cent, respectively, of the eligible assessment shall be exempted; after the tenth year, the exemption shall terminate; or (3)  For the first, second, third, fourth, fifth, sixth, seventh, eighth, ninth and tenth year for which said newly-constructed dwelling unit or units would otherwise be taxable, one hundred per cent of the eligible assessment shall be exempted; after the tenth year the exemption shall terminate. (4)   A local taxing authority may provide for tax exemption on the assessment attributable to the actual cost of construction of the new dwelling unit in accordance with a schedule established by the taxing authority, provided that the exemption schedule does not exceed a period of ten years. (b)   The exemption from taxes shall be limited to the assessment valuation attributable to the cost of construction of the new dwelling unit not in excess of the uniform maximum cost per dwelling unit specified by the municipal governing body. The exemption shall commence in the tax year immediately following the year in which the building permit is issued. No tax exemption shall be granted under the provisions of this article for the construction of any dwelling unit in excess of the uniform maximum cost specified by the municipal governing body. (c)  The exemption from taxes authorized by this article shall be upon the newly-constructed dwelling unit or units exempted and shall not terminate upon the sale or exchange of the property, unless otherwise provided in this article. § 4711-304.  Nonrecognition for other purposes of increased valuation If a property containing new residential construction is granted tax exemption pursuant to this article, the property shall not during the exemption period be considered as a factor in assessing the value of other properties in the same area. § 4711-305.  Procedure for obtaining exemption (a)  Any taxpayer desiring tax exemption pursuant to ordinances or resolutions adopted under authority of this article shall apply in writing to each local taxing authority granting such exemption on a form provided by said local taxing authority at the time he secures the building permit, or, if no building permit or other notification is required, at the time he commences construction. A copy of the exemption request shall be forwarded to the board of assessment and revision of taxes or other local assessment agency. The assessment agency shall, after completion of the construction, assess separately the dwelling unit and the land upon which the new residential construction stands; calculate the amounts of the assessment eligible for tax exemption in accordance with the limits established by the local taxing authorities; and notify the taxpayer and the local taxing authorities of the amounts of the assessment eligible for exemption. Appeals from the assessment and/or the amounts eligible for exemption may be taken by the taxpayer as heretofore provided by law. (b)   The cost of construction per dwelling unit to be exempted and the schedules of taxes exempted existing at the time of the initial request for tax exemption shall be applicable to that exemption request, and subsequent amendments to the ordinance, if any, shall not apply to requests initiated prior to their adoption.

948

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Ch. 55.2

Part I Ch. 1–14 Brokers

CHAPTER 55.2 LOCAL ECONOMIC REVITALIZATION TAX ASSISTANCE ACT

Table of Contents

PART VI

72 P.S. § 4722 to 72 P.S. § 4731

Sec.

Part II Ch. 15–22 Deeds

§ 4722. Short title § 4723. Construction § 4724. Definitions § 4725. Deteriorated areas § 4726. Exemption schedule § 4727. Procedure for obtaining exemption §§ 4729-1 to Repealed  4729-5. § 4731. Mortgages, judgments, etc., to be exempt from local taxation, in certain counties

Part III Ch. 23–35 Mortgages

§ 4722.  Short title

§ 4723.  Construction

§ 4724.  Definitions

§ 4725.  Deteriorated areas (a)   Each local taxing authority may by ordinance or resolution exempt from real property taxation the assessed valuation of improvements to deteriorated properties and the assessed valuation of new construction within the respec-

gtb-parealestate22-all.indb 949

Index

949

Part IX Ch. 68–72 Condos, etc.

“Local taxing authority.” A county, city, borough, incorporated town, township, institution district or school district having authority to levy real property taxes. “Municipal governing body.” A city, borough, incorporated town or township.

Part VIII Ch. 64–67 L/T

“Improvement.” Repair, construction or reconstruction, including alterations and additions, having the effect of rehabilitating a deteriorated property so that it becomes habitable or attains higher standards of safety, health, economic use or amenity, or is brought into compliance with laws, ordinances or regulations governing such standards. Ordinary upkeep and maintenance shall not be deemed an improvement.

Part VII Ch. 57–63 Litigation

“Deteriorated property.” Any industrial, commercial or other business property owned by an individual, association or corporation, and located in a deteriorating area, as hereinafter provided, or any such property which has been the subject of an order by a government agency requiring the unit to be vacated, condemned or demolished by reason of noncompliance with laws, ordinance or regulations.

Part VI Ch. 49–56 Taxation

The following words and phrases when used in this act shall have, unless the context clearly indicates otherwise, the meanings given to them in this section:

Part V Ch. 41–48A Zoning, etc.

This act shall be construed to authorize local taxing authorities to exempt new construction in deteriorated areas of economically depressed communities and improvements to certain deteriorated industrial, commercial and other business property thereby implementing Article VIII, section 2(b)(iii) of the Constitution of Pennsylvania.

Part IV Ch. 36–40 Insurance

This act shall be known and may be cited as the “Local Economic Revitalization Tax Assistance Act.”

12/22/21 10:45 AM

§ 4726

REVITALIZATION EXEMPTIONS

tive municipal governing bodies designated deteriorated areas of economically depressed communities in the amounts and in accordance with the provisions and limitations hereinafter set forth. Prior to the adoption of the ordinance or resolution authorizing the granting of tax exemptions, the municipal governing body shall affix the boundaries of a deteriorated area or areas, wholly or partially located within its jurisdiction, if any. At least one public hearing shall be held by the municipal governing body for the purpose of determining said boundaries. At the public hearing the local taxing authorities, planning commission or redevelopment authority and other public and private agencies and individuals, knowledgeable and interested in the improvement of deteriorated areas, shall present their recommendations concerning the location of boundaries of a deteriorated area or areas for the guidance of the municipal governing bodies, such recommendations taking into account the criteria set forth in the act of May 24, 1945 (P.L. 991, No. 385), known as the “Urban Redevelopment Law,”5 for the determination of “blighted areas,” and the criteria set forth in the act of November 29, 1967 (P.L. 636, No. 292), known as the “Neighborhood Assistance Act,”6 for the determination of “impoverished areas,” and the following criteria: unsafe, unsanitary and overcrowded buildings; vacant, overgrown and unsightly lots of ground; a disproportionate number of tax delinquent properties, excessive land coverage, defective design or arrangement of buildings, street or lot layouts; economically and socially undesirable land uses. Property adjacent to areas meeting the criteria of this section, but which would not otherwise qualify, may be included within the deteriorated area designated if the local taxing authority determines that new construction on such property would encourage, enhance or accelerate improvement of the deteriorated properties within economically depressed communities. The ordinance or resolution shall specify a description of each such area as determined by the municipal governing body, as well as the cost of improvements per unit to be exempted, and the schedule of taxes exempted as hereinafter provided. (b)   Two or more municipal governing bodies may join together for the purpose of determining the boundaries of a deteriorated area and to establish the uniform maximum cost per unit, and such municipal governing bodies shall cooperate fully with each other for the purposes of implementing this act. The local taxing authorities may by implementing ordinance or resolution agree to adopt tax exemptions contingent upon the similar adoption by an adjacent local taxing authority or by a local taxing authority with mutual jurisdiction, within the limitations provided herein. § 4726.  Exemption schedule (a)   A local taxing authority granting a tax exemption pursuant to the provisions of this act may provide for tax exemption on the assessment attributable to the actual cost of new construction or improvements or up to any maximum cost uniformly established by the municipal governing body. Such maximum cost shall uniformly apply to all eligible deteriorated property within the local taxing authority jurisdiction. (b)   Whether or not the assessment eligible for exemption is based upon actual cost or a maximum cost, the actual amount of taxes exempted shall be in accordance with the schedule of taxes exempted established by a local taxing authority subject to the following limitations: (1)   The length of the schedule of taxes exempted shall not exceed ten years.

5. 35 P.S. § 1701 et seq. 6. 62 P.S. § 2081 et seq.

950

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REAL ESTATE TAXATION

Ch. 55.2

(3)   The exemption from taxes shall be limited to the additional assessment valuation attributable to the actual costs of new construction or improvements to deteriorated property or not in excess of the maximum cost per unit established by a municipal governing body.

Part II Ch. 15–22 Deeds

(c)  The exemption from taxes authorized by this act shall be upon the property exempted and shall not terminate upon the sale or exchange of the property.

Part I Ch. 1–14 Brokers

(2)   The schedule of taxes exempted shall stipulate the portion of new construction or improvements to be exempted each year.

Table of Contents

PART VI

§ 4727.  Procedure for obtaining exemption

Part IX Ch. 68–72 Condos, etc. Index

gtb-parealestate22-all.indb 951

Part VIII Ch. 64–67 L/T

951

Part VII Ch. 57–63 Litigation

All mortgages, judgments, recognizances and moneys owing upon articles of agreement for the sale of real estate made and executed after the passage of this act, shall be exempt from all taxation except for state purposes; and from and after the first day of December next no taxes of any description shall be assessed or collected except for state purposes, on or from mortgages, judgments, recognizances or moneys owing upon articles of agreement for the sale of real estate, whether made and executed before or after the passage of this act: Provided, That nothing in this act shall be construed to apply to mortgages, judgments or articles of agreement given by corporations: Providing, That this act shall only apply to the counties of Berks, Schuylkill, Luzerne, Clearfield, Allegheny, York, Delaware, Montgomery, Chester, Lancaster, Huntingdon, Fulton, Bedford, Blair, Lebanon, Clinton, Carbon, Monroe, Lehigh, Mifflin, Westmoreland, Northampton, Juniata, Somerset, Indiana, Greene, Elk, Forest, Franklin, Perry, Cumberland, Dauphin, Lawrence, Lycoming, Union, Snyder, Erie, Crawford, Bucks, M’Kean, Fayette, Philadelphia and Mercer.

Part VI Ch. 49–56 Taxation

§ 4731.  Mortgages, judgments, etc., to be exempt from local taxation, in certain counties

Part V Ch. 41–48A Zoning, etc.

§§ 4729-1 to 4729-5.  Repealed. 1998, April 23, P.L. 239, No. 45, § 18(4), effective July 1, 1998

Part IV Ch. 36–40 Insurance

(b)  The cost of new construction or improvements to be exempted and the schedule of taxes exempted existing at the time of the initial request for tax exemption shall be applicable to that exemption request, and subsequent amendment to the ordinance, if any, shall not apply to requests initiated prior to their adoption.

Part III Ch. 23–35 Mortgages

(a)   Any person desiring tax exemption pursuant to ordinances or resolutions adopted pursuant to this act, shall notify each local taxing authority granting such exemption in writing on a form provided by it submitted at the time he secures the building permit, or if no building permit or other notification of new construction or improvement is required, at the time he commences construction. A copy of the exemption request shall be forwarded to the board of assessment and revision of taxes or other appropriate assessment agency. The assessment agency shall, after completion of the new construction or improvement, assess separately the new construction or improvement and calculate the amounts of the assessment eligible for tax exemption in accordance with the limits established by the local taxing authorities and notify the taxpayer and the local taxing authorities of the reassessment and amounts of the assessment eligible for exemption. Appeals from the reassessment and the amounts eligible for the exemption may be taken by the taxpayer or the local taxing authorities as provided by law.

12/22/21 10:45 AM

§ 4712-101 REVITALIZATION EXEMPTIONS

CHAPTER 55.3 TAX EXEMPTION AND MIXED-USE INCENTIVE PROGRAM ACT 72 P.S. § 4712-101 to § 4712-108

Sec. § § § § § § § §

4712-101. 4712-102. 4712-103. 4712-104. 4712-105. 4712-106. 4712-107. 4712-108.

Short title Construction Definitions Deteriorated areas Exemption schedule Procedure for obtaining exemption incentives Eligibility requirements Effective date

§ 4712-101.  Short title. This act shall be known and may be cited as the Tax Exemption and MixedUse Incentive Program Act. § 4712-102.  Construction. This act shall be construed to authorize local taxing authorities to provide for tax exemption incentives for new construction in deteriorated areas of communities and improvements to certain deteriorated industrial, commercial, business and residential property. In addition, this act shall be construed to allow for mixed-use housing and development in accordance with zoning ordinances within designated areas. This act supplements the act of July 9, 1971 (P.L.206, No.34), known as the Improvement of Deteriorating Real Property or Areas Tax Exemption Act,7 and the act of December 1, 1977 (P.L.237, No.76), known as the Local Economic Revitalization Tax Assistance Act,8 which implement section 2(b)(iii) of Article VIII of the Constitution of Pennsylvania. § 4712-103.  Definitions. The following words and phrases when used in this act shall have the meanings given to them in this section unless the context clearly indicates otherwise: “Adult entertainment.” As defined in 68 Pa.C.S. § 5502 (relating to definitions). “Blighted property.” The term includes: (1)  A premises: (i)   ascertained to be a public nuisance due to physical condition or use, regarded as a public nuisance at common law and deemed to be a danger to public health, safety and welfare or public nuisance as regulated by a locally adopted property maintenance code or, if no such code exists, any compatible code enacted by the act of November 10, 1999 (P.L.491, No.45), known as the Pennsylvania Construction Code Act; or (ii)  the condition of which contains an attractive nuisance created by physical condition, use or occupancy, including abandoned water wells, shafts, basements, excavations and unsafe fences or other structures, or which contains an unauthorized entry, unsafe equipment or other safety risk. 7. 72 P.S. § 4711-101 et seq. 8. 72 P.S. § 4722 et seq.

952

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REAL ESTATE TAXATION

Ch. 55.3

Part IV Ch. 36–40 Insurance Part V Ch. 41–48A Zoning, etc. Part VI Ch. 49–56 Taxation Part VII Ch. 57–63 Litigation Part VIII Ch. 64–67 L/T Part IX Ch. 68–72 Condos, etc. Index

gtb-parealestate22-all.indb 953

Part III Ch. 23–35 Mortgages

953

Part II Ch. 15–22 Deeds

9. 35 P.S. § 7210.101 et seq.

Part I Ch. 1–14 Brokers

(2)   A dwelling that has been condemned or otherwise deemed unfit for occupancy or use by the local authority having jurisdiction due to dilapidated, unsanitary, unsafe or vermin-infested condition or that is lacking in the facilities and equipment as required by the Pennsylvania Construction Code Act.9 (3)  A structure determined by the local authority having jurisdiction to be a fire hazard or otherwise that could easily catch fire or cause a fire and endanger public health, safety and welfare. (4)  A vacant or unimproved lot or parcel of ground located in a predominantly developed neighborhood that has become a place for the accumulation of trash and debris or haven for rodents and other vermin by reason of neglect or lack of maintenance. (5)   A property that is vacant and has not been rehabilitated within one year from receipt of notice for corrective action as issued by the local authority having jurisdiction, except a property where a valid construction permit is in place. (6)   A vacant or unimproved lot or parcel of ground that is subject to a municipal lien for the cost of demolition of a structure previously located on the property and for which no payments on the lien have been made for a period of 12 months. (7)   A vacant or unimproved lot or parcel of ground on which the total municipal liens for delinquent real estate and property tax or any other type of municipal claim are greater than 150% of the fair market value of the property as established by the board of assessment appeals or other body with legal authority to determine the taxable value of the property. (8)   A property that has been declared abandoned in writing by the owner, including an estate that is in possession of the property. “Deteriorated area.”   An area designated by a municipal corporation to consist of blighted property. The term includes an impoverished area. “Exemption schedule.”   The tax exemption schedule under section 5. “Impoverished area.”   Any area in this Commonwealth which is certified as an impoverished area by the Department of Community and Economic Development and the certification of which is approved by the Governor. Certification shall be made on the basis of Federal census studies and current indices of social and economic conditions. “Improvement.”  Repair, construction or reconstruction, including alterations and additions, having the effect of rehabilitating a blighted property so that it becomes habitable or attains higher standards of safety, health, economic use or amenity, or is brought into compliance with laws, ordinances or regulations governing such standards. Ordinary upkeep and maintenance shall not be deemed an improvement. “Local taxing authority.”   A county, city, borough, incorporated town, township, institution district or school district having authority to levy real property taxes. “Mixed-use housing and development.”  Any urban, suburban, village development or single building that combines residential, commercial, cultural, institutional or industrial uses to provide more efficiency for the community in terms of space, transportation and economic development. “Municipal corporation.”   A city, borough, incorporated town or township. “Property maintenance code.”   A municipal ordinance which regulates the maintenance or development of real property. The term includes a building code, housing code and public safety code. “Serious violation.”  A violation of a State law or a property maintenance code that poses an immediate imminent threat to the health and safety of a dwelling occupant, occupants in surrounding structures or passersby.

Table of Contents

PART VI

12/22/21 10:45 AM

§ 4712-104

EXEMPTIONS FROM TAXATION

§ 4712-104.   Deteriorated areas. (a)   Real property tax exemption.— (1)   A local taxing authority may by ordinance or resolution exempt from real property taxation the assessed valuation of improvements to blighted properties and the assessed valuation of new construction within a deteriorated area in the amounts and in accordance with the provisions and limitations specified in this act. (2)   If a deteriorated area is zoned for mixed-use housing and development, improvements shall incorporate mixed-use housing and development that benefit the efficiency and economy of the community. (3)   The ordinance or resolution shall specify a description of each deteriorated area, as well as the cost of improvements per unit to be exempted, and the schedule or taxes exempted as provided in this act. (b)  Boundaries.—Prior to the adoption of the ordinance or resolution authorizing the granting of tax exemptions, the municipal corporation must affix the boundaries of the deteriorated area, wholly or partially located within its jurisdiction, if any. (c)  Public hearing.— (1)   At least one public hearing shall be held by the municipal corporation for the purpose of determining the boundaries of a deteriorated area. (2)  At the public hearing the local taxing authorities, planning commission or redevelopment authority and other public and private agencies and individuals, knowledgeable and interested in the improvement of deteriorated areas, shall present their recommendations concerning the location of boundaries of a deteriorated area for the guidance of the municipal corporation. The recommendations shall take into account the criteria required to establish an impoverished area or blighted property. (3)  The public hearing shall be held in accordance with 65 Pa.C.S. Ch. 7 (relating to open meetings). (d)  Adjacent property inclusions.—Property adjacent to a deteriorated area may be included within the deteriorated area if the local taxing authority determines that new construction on the property would encourage, enhance or accelerate improvement of the blighted properties within the deteriorated area. (e)  Municipal cooperation.— (1)   Two or more municipal corporations may join together for the purpose of determining the boundaries of a deteriorated area and establishing the uniform maximum cost per unit, and the municipal corporations shall cooperate fully with each other for the purpose of implementing this act. (2)   The local taxing authorities may, by implementing ordinances or resolutions, agree to adopt tax-exemption schedules contingent upon the similar adoption by an adjacent local taxing authority or by a local taxing authority with mutual jurisdiction, within the limitations provided under this act. (f)   Rescinding blighted area designation.—A local taxing authority may rescind an ordinance or resolution adopted under subsection (a) if the local taxing authority determines that the tax exemption in the deteriorated area within the boundaries established under subsection (b) has accomplished the goal of revitalizing the deteriorated area. Property granted tax exemption within the boundaries of the deteriorated area prior to the ordinance or resolution being rescinded shall continue to receive the tax exemption granted until the tax exemption is terminated under section 5(b).

954

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REAL ESTATE TAXATION

Ch. 55.3

Part III Ch. 23–35 Mortgages Part IV Ch. 36–40 Insurance Part V Ch. 41–48A Zoning, etc. Part VI Ch. 49–56 Taxation Part VII Ch. 57–63 Litigation Part VIII Ch. 64–67 L/T Part IX Ch. 68–72 Condos, etc. Index

gtb-parealestate22-all.indb 955

Part II Ch. 15–22 Deeds

955

Part I Ch. 1–14 Brokers

§ 4712-105.   Exemption schedule. (a)  General rule.—A local taxing authority granting a tax exemption under this act may provide for tax exemption on the assessment attributable to the actual cost of new construction or improvements or up to any maximum cost uniformly established by the municipal corporation. The maximum cost shall uniformly apply to all eligible blighted property in the deteriorated area within the local taxing authority’s jurisdiction. (b)  Schedule.—Whether or not the assessment eligible for exemption is based upon actual cost or a maximum cost, the actual amount of taxes exempted shall be in accordance with the following: (1)  For the first, second and third years for which new construction or improvements would otherwise be taxable, 100% of the eligible assessment shall be exempted. (2)   For the fourth year for which new construction or improvements would otherwise be taxable, 90% of the eligible assessment shall be exempted. (3)  For the fifth year for which new construction or improvements would otherwise be taxable, 75% of the eligible assessment shall be exempted. (4)   For the sixth year for which new construction or improvements would otherwise be taxable, 60% of the eligible assessment shall be exempted. (5)   For the seventh year for which new construction or improvements would otherwise be taxable, 45% of the eligible assessment shall be exempted. (6)   For the eighth year for which new construction or improvements would otherwise be taxable, 30% of the eligible assessment shall be exempted. (7)   For the ninth year for which new construction or improvements would otherwise be taxable, 15% of the eligible assessment shall be exempted. (8)   For the tenth year for which new construction or improvements would otherwise be taxable, 10% of the eligible assessment shall be exempted. (9)   After the tenth year, the exemption shall terminate. (c)  Limitation.—The exemption from taxes shall be limited to the additional assessment valuation attributable to the actual costs of new construction or improvements to blighted property or not in excess of the maximum cost per unit established by a municipal corporation. (d)   Sale or exchange.—The exemption from taxes shall be upon the property exempted and shall not terminate upon the sale or exchange of the property. (e)  Estimate.—A local taxing authority shall provide upon request an estimate of the amount of assessment exempted for each eligible property based on the exemption schedule under subsection (b). (f)  Repayment.— (1)   A local taxing authority shall be entitled to a return of its proportional share of taxes exempted under the provisions of this act if, within five years following completion of the new construction or improvements, there exists on the property a serious violation of a State law or a property maintenance code and the owner has taken no substantial steps to correct the violation within six months following notification of the violation and for which fines or other penalties or a judgment to abate or correct were imposed by a magisterial district judge or municipal court, or a judgment at law or in equity was imposed by a court of common pleas. (2)  At the time the agreement is entered into between a local taxing authority and the person who desires tax exemption, if the person has completed all requirements under section 6, the local taxing authorities shall file a lien against the tax-exempt properties at the rate of the estimated amount of assessment under subsection (b). The lien shall be forgiven by the local taxing authority at the end of the fifth year following the completion of the new con-

Table of Contents

PART VI

12/22/21 10:45 AM

§ 4712-106

EXEMPTIONS FROM TAXATION

struction or improvements if there have been no serious violations against the property that have not been corrected. The lien on the property shall transfer under subsection (d) in cases of sale or exchange of the property. § 4712-106.   Procedure for obtaining exemption incentives. (a)  Notification.—A person desiring tax exemption authorized by an ordinance or resolution adopted under this act shall notify the local taxing authority granting the exemption in writing on an application form provided by the local taxing authority, submitted at the time the person secures the building permit or, if no building permit or other notification of new construction or improvement is required, at the time the person commences construction. The application shall include the following information: (1)   Statement of tax obligations, signed by the applicant and the local taxing authority and notarized. (2)   Outline of specifications for the new construction or improvement, indicating with as much specificity as practicable the materials to be used for exterior and interior finishes. (3)  An itemized cost estimate for the new construction or improvement. The itemization must: (i)   Be on contractor letterhead. (ii)   Indicate the property address of the project. (iii)   Be signed by the applicant. (4)   Preliminary architectural drawings or blueprints for the new construction or improvement. (5)   A recent appraisal of the property, if available. (6)   An applicable building permit application or building permit. (7)   An income and expense report for the property, which income and expense report should be submitted directly to the county assessment office in order to protect the confidentiality of the information. (8)  The final decision of the zoning authority or other regulatory agency granting relief, if applicable. (9)   The signature of the applicant and the date of signing. (b)  Estimate.—The amount of assessment deemed eligible for tax exemption under subsection (c) shall be available for public inspection and copying so that any subsequent purchaser is informed of the amount of taxes to be paid after the 10-year exemption period. (c)   County assessment office.— (1)  A copy of the exemption request shall be forwarded to the county assessment office. The county assessment office shall, after completion of the new construction or improvement, assess separately the new construction or improvement and calculate the amounts of the assessment eligible for tax exemption in accordance with the limits established by the local taxing authorities and notify the taxpayer and the local taxing authorities of the reassessment and amounts of the assessment eligible for exemption. (2)   Appeals from the reassessment and the amounts eligible for the exemption may be taken by the taxpayer or the local taxing authorities as provided by law. (d)   Amendment of ordinance.—The cost of new construction or improvements to be exempted and the schedule of taxes exempted existing at the time of the initial request for tax exemption shall be applicable to that exemption request, and subsequent amendment to the ordinance, if any, shall not apply to requests initiated prior to adoption of the amendment.

956

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12/22/21 10:45 AM

REAL ESTATE TAXATION

Ch. 55.3

Part IV Ch. 36–40 Insurance Part V Ch. 41–48A Zoning, etc. Part VI Ch. 49–56 Taxation Part VII Ch. 57–63 Litigation Part VIII Ch. 64–67 L/T Part IX Ch. 68–72 Condos, etc. Index

gtb-parealestate22-all.indb 957

Part III Ch. 23–35 Mortgages

957

Part II Ch. 15–22 Deeds

10. 53 P.S. § 6926.101.

Part I Ch. 1–14 Brokers

§ 4712-107.   Eligibility requirements. (a)  General rule.—The completed new construction or improvement must: (1)   Conform to zoning ordinance requirements. However, if mixed-use development is permitted in a designated deteriorated area, any improvement must meet any applicable mixed-use housing and development standards. (2)   Increase the value of the property by at least 25%. (3)   Correct all code violations, if applicable. (b)  Ineligibility.—A property is ineligible for tax exemption under section 5(a) if: (1)   The property receives other property tax abatement or exemption incentives for new construction or improvement. (2)  The property receives tax relief through a State program, except as provided in subsection (d). (3)   The property owner or developer is delinquent on property taxes related to the subject property, unless the delinquent taxes are paid prior to construction or payment of delinquent taxes has been arranged with the local taxing authority in accordance with an installment plan. (4)   The property owner has a legal or equitable interest in other property for which property taxes are delinquent, unless the delinquent taxes are paid prior to construction or payment of delinquent taxes has been arranged with the local taxing authority in accordance with an installment plan. (5)  New construction or improvement has commenced prior to filing an application under section 6. (6)   The property includes an improvement under subsection (c) that poses a health or safety risk to an individual residing above the first floor. (c)  Restriction.—For an improvement under this act that involves mixeduse housing and development, certain establishments may not be sited on the first floor for health and safety reasons. The establishments include, but are not limited to, the following: (1)   Gas stations or automobile service stations. (2)  Drive-through establishments. (3)   Adult entertainment establishments. (4)   Storage trailers and outdoor storage of goods associated with commercial use unless use of the structure is necessary during construction. (5)  Junkyards. (6)   Recycling service centers. (7)   Animal hospitals and animal sales. (8)  Heavy manufacturing. (9)   Establishments that utilize biohazards. (10)  Establishments that sell firearms and other weapons, unless the occupant is the owner of the establishment. (d)  Exception.—The amount of assessment eligible for exemption under this act shall be offset by the amount of property tax rebate received under Chapter 13 of the act of June 27, 2006 (1st Sp.Sess., P.L.1873, No.1), known as the Taxpayer Relief Act.10 (e)  Limitations.—The property qualifying for and receiving a tax exemption under the program shall be ineligible for or receive an additional tax exemption under this program for a minimum of 15 years from the date the property received a tax exemption under the program. (f)  Prohibitions.—For the period of time that a property receives a tax exemption under the program, no purchase or sale of the property or any portion

Table of Contents

PART VI

12/22/21 10:45 AM

§ 4712-108

EXEMPTIONS FROM TAXATION

thereof shall be structured in a manner that excludes or exempts the transaction from a realty transfer tax due to a taxing authority that would otherwise not be excluded or exempt, except in the following cases: (1)   a sheriff sale or tax claim bureau sale; (2)   a corrective deed; (3)  a transfer by the mortgagor to the holder of a bona fide mortgage in default in lieu of a foreclosure; (4)   a transfer to a judicial sale in which the successful bidder is the bona fide holder of a mortgage; or (5)   any other transaction excluded from the realty transfer tax under Article XI-C of the act of March 4, 1971 (P.L.6, No.2),11 known as the Tax Reform Code of 1971. § 4712-108.   Effective date. This act shall take effect in 60 days.12

CHAPTER 55.4 FIRST AND SECOND CLASS COUNTY PROPERTY TAX RELIEF ACT 72 P.S. § 4749.1 to 72 P.S. § 4749.6

Sec. § § § § § §

4749.1. Short title 4749.2. Declaration of policy and legislative intent 4749.3. Definitions 4749.4. Deferral or exemption authority 4749.5. Conditions of deferral or exemption 4749.6. Retroactive application

§ 4749.1.  Short title This act shall be known and may be cited as the First and Second Class County Property Tax Relief Act. § 4749.2.  Declaration of policy and legislative intent In recognition of the severe economic circumstances of certain longtime owneroccupants of residences who are faced with rising living costs and constantly increasing tax burdens in areas where real property values have risen markedly as a consequence of the renovation of other deteriorating residences or the construction of new residences, the General Assembly, pursuant to section 2(b)(v) of Article VIII of the Constitution of Pennsylvania, considers it to be a matter of sound public policy for counties of the first and second class to adopt uniform special real property tax relief provisions in order to allow longtime owner-occupants of residences to remain in peaceful possession of their homes. § 4749.3.  Definitions The following words and phrases when used in this act shall have the meanings given to them in this section unless the context clearly indicates otherwise: 11. 72 P.S. § 8101-C et seq. 12. Effective September 14, 2020.

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REAL ESTATE TAXATION

Ch. 55.4

§ 4749.5.  Conditions of deferral or exemption (a)  General rule.—Any deferral or exemption of payment of an increase in real property taxes granted pursuant to this act shall be limited to real property which meets all of the following conditions: (2)  The property is the principal residence and domicile of the longtime owner-occupant. (b)   Penalties and interest.—No penalties and interest shall accrue on the portion of the deferral pursuant to this act. (1)   Neither financial need nor age of the longtime owner-occupant shall be a determinant of eligibility in a county of the first class.

§ 4749.6.  Retroactive application Data used by the governing body of a county of the first and second class to determine if the principal residence of a longtime owner-occupant is eligible for either a tax deferral or exemption under the provisions of this act may be applied retroactively to November 6, 1984.

gtb-parealestate22-all.indb 959

Index

959

Part IX Ch. 68–72 Condos, etc.

(2)   School districts and municipalities within a county of the second class may determine whether financial need, age, or both, of the longtime owneroccupant shall be used to determine eligibility.

Part VIII Ch. 64–67 L/T

(c)   Financial need or age.—

Part VII Ch. 57–63 Litigation

(1)   The property is owned and occupied by a longtime owner-occupant.

Part VI Ch. 49–56 Taxation

(c)  Second class county school districts and municipalities.—School districts and municipalities within second class counties shall have authority to determine their participation in this program within their taxing jurisdiction.

Part V Ch. 41–48A Zoning, etc.

(b)   Designation of areas.—The governing body of a county of the first and second class is authorized to enact ordinances or resolutions which provide for the designation of areas eligible for the special real property tax provisions pursuant to this act. Before enacting an ordinance or resolution which proposes designating such an area, the governing body shall conduct a public hearing on the proposed ordinance or resolution.

Part IV Ch. 36–40 Insurance

(a)   Adoption of uniform provisions.—The governing body of a county of the first and second class shall have the power to provide, by ordinance or resolution, for uniform special real property tax provisions granting longtime owner-occupants a deferral or exemption or combination thereof, in the payment of that portion of an increase of real property taxes which is due to an increase in the market value of the real property as a consequence of the refurbishing or renovating of other residences or the construction of new residences in long-established residential areas or areas of deteriorated, vacant or abandoned homes and properties.

Part III Ch. 23–35 Mortgages

§ 4749.4.  Deferral or exemption authority

Part II Ch. 15–22 Deeds

“Principal residence.” The dwelling place of a person, including the principal house and lot, and such lots as are used in connection therewith which contribute to its enjoyment, comfort and convenience. For purposes of this act, the term may also include a building with a maximum of one commercial establishment and a maximum of three residential units of which one residential unit must be the principal residence of the longtime owner-occupant.

Part I Ch. 1–14 Brokers

“Longtime owner-occupant.” Any person who for at least ten continuous years has owned and has occupied the same dwelling place as a principal residence and domicile, or any person who for at least five years has owned and occupied the same dwelling as a principal residence and domicile if that person received assistance in the acquisition of the property as part of a government or nonprofit housing program.

Table of Contents

PART VI

12/22/21 10:45 AM

CHAPTER 56 INTERNAL REVENUE CODE 26 U.S.C. §1031

Sec.

§ 1031. Exchange of real property held for productive use or investment

§ 1031.  Exchange of real property held for productive use or investment (a)   Nonrecognition of gain or loss from exchanges solely in kind (1)  In general No gain or loss shall be recognized on the exchange of real property held for productive use in a trade or business or for investment if such real property is exchanged solely for real property of like kind which is to be held either for productive use in a trade or business or for investment. (2)   Exception for real property held for sale This subsection shall not apply to any exchange of real property held primarily for sale. (3)   Requirement that property be identified and that exchange be completed not more than 180 days after transfer of exchanged property For purposes of this subsection, any property received by the taxpayer shall be treated as property which is not like-kind property if— (A)   such property is not identified as property to be received in the exchange on or before the day which is 45 days after the date on which the taxpayer transfers the property relinquished in the exchange, or (B)   such property is received after the earlier of— (i)  the day which is 180 days after the date on which the taxpayer transfers the property relinquished in the exchange, or (ii)   the due date (determined with regard to extension) for the transferor’s return of the tax imposed by this chapter for the taxable year in which the transfer of the relinquished property occurs. (b)   Gain from exchanges not solely in kind If an exchange would be within the provisions of subsection (a), of section 1035(a), of section 1036(a), or of section 1037(a), if it were not for the fact that the property received in exchange consists not only of property permitted by such provisions to be received without the recognition of gain, but also of other property or money, then the gain, if any, to the recipient shall be recognized, but in an amount not in excess of the sum of such money and the fair market value of such other property. (c)   Loss from exchanges not solely in kind If an exchange would be within the provisions of subsection (a), of section 1035(a), of section 1036(a), or of section 1037(a), if it were not for the fact that the property received in exchange consists not only of property permitted by such provisions to be received without the recognition of gain or loss, but also of other property or money, then no loss from the exchange shall be recognized. (d)  Basis If property was acquired on an exchange described in this section, section 1035(a), section 1036(a), or section 1037(a), then the basis shall be the same as

960

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REAL ESTATE TAXATION

Ch. 56

Part III Ch. 23–35 Mortgages Part IV Ch. 36–40 Insurance Part V Ch. 41–48A Zoning, etc. Part VI Ch. 49–56 Taxation Part VII Ch. 57–63 Litigation Part VIII Ch. 64–67 L/T Part IX Ch. 68–72 Condos, etc. Index

gtb-parealestate22-all.indb 961

Part II Ch. 15–22 Deeds

961

Part I Ch. 1–14 Brokers

that of the property exchanged, decreased in the amount of any money received by the taxpayer and increased in the amount of gain or decreased in the amount of loss to the taxpayer that was recognized on such exchange. If the property so acquired consisted in part of the type of property permitted by this section, section 1035(a), section 1036(a), or section 1037(a), to be received without the recognition of gain or loss, and in part of other property, the basis provided in this subsection shall be allocated between the properties (other than money) received, and for the purpose of the allocation there shall be assigned to such other property an amount equivalent to its fair market value at the date of the exchange. For purposes of this section, section 1035(a), and section 1036(a), where as part of the consideration to the taxpayer another party to the exchange assumed (as determined under section 357(d)) a liability of the taxpayer, such assumption shall be considered as money received by the taxpayer on the exchange. (e)   Application to certain partnerships For purposes of this section, an interest in a partnership which has in effect a valid election under section 761(a) to be excluded from the application of all of subchapter K shall be treated as an interest in each of the assets of such partnership and not as an interest in a partnership. (f)   Special rules for exchanges between related persons (1)  In general If— (A)   a taxpayer exchanges property with a related person, (B)  there is nonrecognition of gain or loss to the taxpayer under this section with respect to the exchange of such property (determined without regard to this subsection), and (C)   before the date 2 years after the date of the last transfer which was part of such exchange— (i)   the related person disposes of such property, or (ii)   the taxpayer disposes of the property received in the exchange from the related person which was of like kind to the property transferred by the taxpayer, there shall be no nonrecognition of gain or loss under this section to the taxpayer with respect to such exchange; except that any gain or loss recognized by the taxpayer by reason of this subsection shall be taken into account as of the date on which the disposition referred to in subparagraph (C) occurs. (2)   Certain dispositions not taken into account For purposes of paragraph (1)(C), there shall not be taken into account any disposition— (A)  after the earlier of the death of the taxpayer or the death of the related person, (B)  in a compulsory or involuntary conversion (within the meaning of section 1033) if the exchange occurred before the threat or imminence of such conversion, or (C)   with respect to which it is established to the satisfaction of the Secretary that neither the exchange nor such disposition had as one of its principal purposes the avoidance of Federal income tax. (3)  Related person For purposes of this subsection, the term “related person” means any person bearing a relationship to the taxpayer described in section 267(b) or 707(b)(1). (4)   Treatment of certain transactions This section shall not apply to any exchange which is part of a transaction (or series of transactions) structured to avoid the purposes of this subsection.

Table of Contents

PART VI

12/22/21 10:45 AM

§ 1031

INTERNAL REVENUE CODE

(g)   Special rule where substantial diminution of risk (1)  In general If paragraph (2) applies to any property for any period, the running of the period set forth in subsection (f)(1)(C) with respect to such property shall be suspended during such period. (2)   Property to which subsection applies This paragraph shall apply to any property for any period during which the holder’s risk of loss with respect to the property is substantially diminished by— (A)   the holding of a put with respect to such property, (B)   the holding by another person of a right to acquire such property, or (C)   a short sale or any other transaction. (h)   Special rules for foreign real property Real property located in the United States and real property located outside the United States are not property of a like kind.

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Table of Contents

PART VII Part I Ch. 1–14 Brokers

REAL ESTATE LITIGATION

Part II Ch. 15–22 Deeds

Chapter 57. Selected Pennsylvania Rules of Civil Procedure Applying to Real Estate Chapter 58. Statutes of Limitation Chapter 59. Claim by Adverse Possession Chapter 60. Attachment of Property Prior to Judgment Chapter 61. Declaratory Relief Chapter 62. Pennsylvania Uniform Voidable Transactions Act Chapter 63. Deficiency Judgments

Part III Ch. 23–35 Mortgages

CHAPTER 57

Chapter

Part VII Ch. 57–63 Litigation Part VIII Ch. 64–67 L/T

Rule 410

RULE 410.  REAL PROPERTY ACTIONS

Part IX Ch. 68–72 Condos, etc.

(a)   In actions involving title to, interest in, possession of, or charges or liens upon real property, original process shall be served upon the defendant in the manner provided by Rule 400 et seq. (b)(1)   If in an action involving an interest in real property the relief sought is possession or mortgage foreclosure, original process also shall be served upon any person not named as a party who is found in possession of the property. The sheriff shall note the service in the return.

Index

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Part VI Ch. 49–56 Taxation

CHAPTER 57.1 SERVICE IN REAL PROPERTY ACTIONS

963

Part V Ch. 41–48A Zoning, etc.

57.1   Service in Real Property Actions.   Rule 410 57.2   Action in Ejectment.   Rules 1051 to 1058 57.3   Action to Quiet Title.   Rules 1061 to 1068 57.4   Action of Mortgage Foreclosure.   Rules 1141 to 1150 57.5   Actions Upon Ground Rent.   Rules 1161 to 1164 57.6   Partition of Real Property.   Rules 1551 to 1574 57.7   Actions Upon Mechanics’ Liens.   Rules 1651 to 1661 57.8  Confession of Judgment for Possession of Real Property.   Rules 2970 to 2976 57.9  Statutory Action to Conform Confessed Judgment.   Rules 2981 to 2986 57.10  Enforcement of Money Judgments for the Payment of Money.   Rules 3101 to 3159 57.11  Enforcement of Judgment in Action of Ejectment.   Rules 3160 to 3165 57.12  Enforcement of Judgment in Action of Mortgage Foreclosure.   Rules 3180 to 3183 57.13  Enforcement of Judgment: Action Upon Mechanics Liens, Municipal Claims, Tax Claims, & Charges of Land.   Rules 3190 to 3191 57.14   Forms.  Rules 3251 to 3260 57.15  Deficiency Judgments.   Rules 3276 to 3291 57.16  Attachment of Wages Landlord/Tenant.   Rules 3301 to 3313 57.17  Discovery: Entry Upon Property for Inspection.   Rules 4009.31 to 4009.33

Part IV Ch. 36–40 Insurance

SELECTED PENNSYLVANIA RULES OF CIVIL PROCEDURE APPLYING TO REAL ESTATE

12/22/21 10:45 AM

RULE 1051

RULES OF CIVIL PROCEDURE

(2)   If the relief sought is possession, the person so served shall thereupon become a defendant in the action. Upon praecipe of the plaintiff the prothonotary shall index the name of the person found in possession as a party to the action. (3)   If the relief sought is mortgage foreclosure, the person so served shall not thereby become a party to the action. (c)  If service is made pursuant to an order of court under Rule 430(a), the court shall direct one or more of the following methods of service: (1)   publication as provided by Rule 430(b), (2)  posting a copy of the original process on the most public part of the property, (3)   registered mail to the defendant’s last known address, and (4)   such other methods, if any, as the court deems appropriate to give notice to the defendant.

CHAPTER 57.2 ACTION IN EJECTMENT Rules 1051 to 1058

Rule

   1051.   1052.   1053.    1054.    1055.    1056.   1057.    1058.

Conformity to Civil Action Venue Rescinded Specific Averments. Abstract of Title Pleading More Than One Cause of Action Counterclaim. Conditional Verdict Judgment. Execution Trial Without Jury

RULE 1051.  CONFORMITY TO CIVIL ACTION Except as otherwise provided in this chapter, the procedure in the action of ejectment shall be in accordance with the rules relating to a civil action.

RULE 1052.  VENUE The action may be brought in and only in a county in which the land or a part of the land is located.

RULE 1053.  RESCINDED JUNE 20, 1985, EFFECTIVE JAN. 1, 1986 Note: For service of original process, see Rule 410 governing service in actions involving real property.

RULE 1054.  SPECIFIC AVERMENTS. ABSTRACT OF TITLE (a)   The plaintiff shall describe the land in the complaint. (b)   A party shall set forth in the complaint or answer an abstract of the title upon which the party relies at least from the common source of the adverse titles of the parties.

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REAL ESTATE LITIGATION

Ch. 57.3

The plaintiff may state in the complaint any cause of action for rents, profits or any other damages which arise from the defendant’s possession of the land.

RULE 1056.  COUNTERCLAIM. CONDITIONAL VERDICT

Part II Ch. 15–22 Deeds

(a)  The defendant may plead a counterclaim which arises from the same transaction or occurrence or series of transactions or occurrences from which the cause of action arose. (b)   A conditional verdict may be entered in an appropriate case.

Part I Ch. 1–14 Brokers

RULE 1055.  PLEADING MORE THAN ONE CAUSE OF ACTION

Table of Contents

PART VII

RULE 1057.  JUDGMENT. EXECUTION

RULE 1058.  TRIAL WITHOUT JURY The trial of actions in ejectment by a judge sitting without a jury shall be in accordance with Rule 1038.

Part III Ch. 23–35 Mortgages

Judgment in the action shall be enforced as provided by Rules 3160 to 3165, inclusive.

Part IV Ch. 36–40 Insurance Part V Ch. 41–48A Zoning, etc.

CHAPTER 57.3 ACTION TO QUIET TITLE Rules 1061 to 1068

Rule

Conformity to Civil Action. Scope Venue Commencement of Action Service. Specific Averments Notice. Claim for Adverse Possession Form of Judgment or Order Trial Without Jury Acts of Assembly

Part VI Ch. 49–56 Taxation

   1061.   1062.    1063.   1064.   1065.    1065.1.    1066.    1067.    1068.

(a)   Except as otherwise provided in this chapter, the procedure in the action to quiet title from the commencement to the entry of judgment shall be in accordance with the rules relating to a civil action.

Index

gtb-parealestate22-all.indb 965

Part IX Ch. 68–72 Condos, etc.

965

Part VIII Ch. 64–67 L/T

Note: No right to trial by jury is conferred by this rule. See Rule 128(f).

(b)   The action may be brought (1)   to compel an adverse party to commence an action of ejectment; (2)   where an action of ejectment will not lie, to determine any right, lien, title or interest in the land or determine the validity or discharge of any document, obligation or deed affecting any right, lien, title or interest in land; (3)   to compel an adverse party to file, record, cancel, surrender or satisfy of record, or admit the validity, invalidity or discharge of, any document, obligation or deed affecting any right, lien, title or interest in land; or (4)   to obtain possession of land sold at a judicial or tax sale.

Part VII Ch. 57–63 Litigation

RULE 1061.   CONFORMITY TO CIVIL ACTION. SCOPE

12/22/21 10:45 AM

RULE 1062

RULES OF CIVIL PROCEDURE

RULE 1062.  VENUE The action may be brought in and only in a county in which the land or a part of the land is located.

RULE 1063.  COMMENCEMENT OF ACTION The action shall be commenced by filing a complaint with the prothonotary.

RULE 1064.  SERVICE In actions involving subsurface mineral, oil, or natural gas rights, if the plaintiff seeks to serve original process by publication pursuant to Rule 430 and obtains actual knowledge of a last known address of the defendant outside the county in which the property is located, the plaintiff shall explain in the affidavit required by Rule 430(a) the search for the defendant in that locale. Note: For service of original process, see Rule 410 governing service in actions involving real property. See Rule 430 for additional requirements for service of original process by publication.

RULE 1065.  SPECIFIC AVERMENTS (a)   Except as provided in subdivision (b), the plaintiff shall describe the land in the complaint. (b)   In an action to quiet title involving subsurface mineral, oil, or natural gas rights, the complaint shall describe the land by attaching: (1)  a summary of the abstract of the mineral, oil, or natural gas title, or the full abstract of the mineral, oil, or natural gas title if the title documents are not available in the courthouse records, and (2)   a statement of acreage involved that includes a metes and bounds description, if available, or other description sufficient to identify the subject land.

RULE 1065.1.  NOTICE. CLAIM FOR ADVERSE POSSESSION. (a)   This rule governs an action to quiet title of property pursuant to Section 5527.1 of the Judicial Code, 42 Pa.C.S. § 5527.1. Note: Section 5527.1 of the Judicial Code permits a party to seek to acquire title to real property by commencing an action to quiet title if the party has adversely possessed the real property for a period of not less than ten years.

(b)   As used in this rule, ‘‘plaintiff’’ means the possessor of real property who is seeking to quiet title to real property that he or she has adversely possessed for a period of not less than ten years. ‘‘defendant’’ means the owner, the owner’s heirs, successors, and assigns, of the real property as recorded in the most recent deed filed in the Recorder of Deeds Office at the courthouse in the county in which the real property is located. (c)   Upon satisfying the requirements of Section 5527.1(a)-(b) of the Judicial Code and commencing an action to quiet title, the plaintiff shall provide to the defendant the notice set forth in subdivision (d) of this rule. (d)   The notice shall be substantially in the following form: (CAPTION) Notice Required by Section 5527.1 of the Judicial Code To the above-named defendant:

966

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REAL ESTATE LITIGATION

Ch. 57.3

______________________________________ Street Address

Part II Ch. 15–22 Deeds

______________________________________ City, State, Postal Zip Code

Part I Ch. 1–14 Brokers

The plaintiff in the above-captioned matter has filed an action to quiet title pursuant to Section 5527.1 of the Judicial Code, 42 Pa.C.S. § 5527.1, seeking to acquire title by adverse possession of real property described as follows:

Table of Contents

PART VII

______________________________________ Deed Reference

Part III Ch. 23–35 Mortgages

______________________________________ Uniform Parcel Identifier or Tax Parcel Number ________________________________________________ ________________________________________________

Part IV Ch. 36–40 Insurance

________________________________________________ ________________________________________________ Metes and Bounds Description

RULE 1066.  FORM OF JUDGMENT OR ORDER

(b)   Upon granting relief to the plaintiff, the court

Note: See Rule 248, authorizing the modification of any time period prescribed by the rules on written agreement or order of court.

Part IX Ch. 68–72 Condos, etc.

(3)   shall enter a final judgment ordering the defendant, the prothonotary, or the recorder of deeds to file, record, cancel, surrender or satisfy of record, as the case may be, any plan, document, obligation or deed determined to be valid, invalid, satisfied or discharged, and to execute and deliver any document, obli­gation or deed necessary to make the order effective; or

Part VIII Ch. 64–67 L/T

(2)   shall enter a final judgment that a document, obligation or deed affecting a right, lien, title or interest in the land is cancelled or is valid, invalid or discharged or that a copy of a lost plan, document, obligation or deed is an authentic copy;

Part VII Ch. 57–63 Litigation

(1)  shall order that the defendant be forever barred from asserting any right, lien, title or interest in the land inconsistent with the interest or claim of the plaintiff set forth in the complaint, unless the defendant takes such action as the order directs within thirty days thereafter. If such action is not taken within the thirty-day period, the prothonotary on praecipe of the plaintiff shall enter final judgment;

Part VI Ch. 49–56 Taxation

(a)  The court shall grant appropriate relief upon affidavit that a complaint containing a notice to defend has been served and that the defendant has not filed an answer, or after a hearing or trial on the pleadings or merits.

Part V Ch. 41–48A Zoning, etc.

If you wish to challenge the claim of adverse possession, you must respond to the action to quiet title within one year after this complaint and notice are served by commencing an action in ejectment against the plaintiff.

(4)   shall enter any other order necessary for the granting of proper relief.

gtb-parealestate22-all.indb 967

Index

967

12/22/21 10:45 AM

RULE 1067

RULES OF CIVIL PROCEDURE

RULE 1067.  TRIAL WITHOUT JURY The trial of actions to quiet title by a judge sitting without a jury shall be in accordance with Rule 1038.

RULE 1068.  ACTS OF ASSEMBLY (a)   The rules of civil procedure shall not be deemed to suspend or affect: (1)  the Act of May 28, 1895, P.L. 124, No. 92, as amended by the Act of April 28, 1899, P.L. 123, No. 101, 21 P.S. §§ 399, 497 to 499; Note: This Act provides for the recording of subdivision plans.

(2)   Section 506 of the Act of August 24, 1963, P.L. 1175, No. 497, 49 P.S. § 1506. Note: This Act authorizes the entry of a rule to file a mechanics’ lien or be barred.

(b)  The Act approved June 10, 1881, P.L. 97, No. 105, as amended by the Act approved April 27, 1927, P.L. 461, No. 295, 21 P.S. § 688 is suspended absolutely, in accordance with the provisions of the Constitution of 1968, Article V, Section 10(c). Note: This Act authorizes a rule to foreclose a mortgage or be barred.

CHAPTER 57.4 ACTION OF MORTGAGE FORECLOSURE Rules 1141 to 1150

Rule

   1141.   1142.    1143.    1144.   1145.    1146.   1147.   1148.   1149.    1150.

Definition. Conformity to Civil Action Venue Commencement of Action Parties. Release of Liability Rescinded Pleading More Than One Cause of Action The Complaint Counterclaim Judgment. Execution Trial Without Jury

RULE 1141.   DEFINITION. CONFORMITY TO CIVIL ACTION (a)   As used in this chapter, “action” means an action to foreclose a mortgage upon any estate, leasehold or interest in land, or upon both personal property and an estate, leasehold or interest in land pursuant to Section 9604(a) of the Uniform Commercial Code, but shall not include an action to enforce a personal liability. Note: Section 9604(a) of the Uniform Commercial Code, 13 Pa.C.S. ß 9604(a), provides that if a security agreement covers both personal and real property, the secured party may elect to proceed as to both the real property and the personal property in accordance with its rights with respect to the real property, in which case the other provisions of Article 9 of the Uniform Commercial Code do not apply.

(b)   Except as otherwise provided in this chapter, the procedure in the action shall be in accordance with the rules relating to a civil action.

968

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REAL ESTATE LITIGATION

Ch. 57.4

Table of Contents

PART VII

RULE 1142.  VENUE

RULE 1143.  COMMENCEMENT OF ACTION

Part II Ch. 15–22 Deeds

An action shall be commenced by filing a complaint with the prothonotary.

Part I Ch. 1–14 Brokers

The action may be brought in and only in a county in which the land or a part of the land is located.

RULE 1144.  PARTIES. RELEASE OF LIABILITY (a)   The plaintiff shall name as defendants (1)  the mortgagor;

(3)  the real owner of the property, or if the real owner is unknown, the grantee in the last recorded deed.

RULE 1145.  RESCINDED JUNE 20, 1985, EFFECTIVE JAN. 1, 1986

RULE 1146.  PLEADING MORE THAN ONE CAUSE OF ACTION The plaintiff may state in the complaint two or more grounds for foreclosure but may not state more than one cause of action.

(a)   The plaintiff shall set forth in the complaint: (1)  the parties to and the date of the mortgage, and of any assignments, and a statement of the place of record of the mortgage and assignments; (3)   the names, addresses and interest of the defendants in the action and that the present real owner is unknown if the real owner is not made a party; (4)   a specific averment of default;

Part VII Ch. 57–63 Litigation

(2)   a description of the land subject to the mortgage;

Part VI Ch. 49–56 Taxation

RULE 1147.   THE COMPLAINT

Part V Ch. 41–48A Zoning, etc.

Note: For service of original process, see Rule 410 governing service in actions involving real property.

Part IV Ch. 36–40 Insurance

(b)   Unless named as real owner, neither the mortgagor nor the personal representative, heir or devisee of the mortgagor, need be joined as defendant if the plaintiff sets forth in the complaint that the plaintiff releases such person from liability for the debt secured by the mortgage.

Part III Ch. 23–35 Mortgages

(2)  the personal representative, heir or devisee of a deceased mortgagor, if known; and

(5)   an itemized statement of the amount due; and Note: The plaintiff may also set forth in the complaint a release of the mortgagor and the mortgagor’s successors in interest. See Rule 1144(b).

(b)   If the plaintiff is proceeding against both personal and real property covered by a mortgage as provided by Section 9604(a) of the Uniform Commercial Code, the plaintiff shall set forth in the complaint (1)   the matters required by subdivision (a), and

gtb-parealestate22-all.indb 969

Index

969

Part IX Ch. 68–72 Condos, etc.

If the mortgage is a residential mortgage under Act No. 6 of 1974, 41 P.S. § 101, the complaint should set forth an averment of compliance with the provisions of Section 403 of Act No. 6, 41 P.S. § 403.

Part VIII Ch. 64–67 L/T

(6)   a demand for judgment for the amount due.

12/22/21 10:45 AM

RULE 1148

RULES OF CIVIL PROCEDURE

(2)   a description of the personal property subject to the mortgage. Note: Section 9604(a) of the Uniform Commercial Code, 13 Pa.C.S. § 9604(a), relates to the rights of a secured party when the agreement covers real and personal property. Compliance with subdivision (b) of this rule is a prerequisite to executing in one proceeding pursuant to Rule 3180(b) against both the real and personal property secured by the mortgage.

RULE 1148.  COUNTERCLAIM A defendant may plead a counterclaim which arises from the same transaction or occurrence or series of transactions or occurrences from which the plaintiff’s cause of action arose.

RULE 1149.   JUDGMENT. EXECUTION Judgment in the action shall be enforced as provided by Rules 3180 to 3183, inclusive. Note: Rule 3180 et seq. govern the enforcement of a judgment whether against an estate, leasehold or interest in land or against both personal property and an estate, leasehold or interest in land if the plaintiff has elected to proceed as to both pursuant to Section 9604(a) of the Uniform Commercial Code.

RULE 1150.  TRIAL WITHOUT JURY The trial of actions to foreclose a mortgage by a judge sitting without a jury shall be in accordance with Rule 1038.

CHAPTER 57.5 ACTION UPON GROUND RENT Rules 1161 to 1164

Rule

   1161.    1162.   1163.    1164.

Enforcement of Personal Liability. Conformity to Civil Action Enforcement in Rem. Conformity to Mortgage Foreclosure Other Remedies Trial Without Jury

RULE 1161.  ENFORCEMENT OF PERSONAL LIABILITY. CONFORMITY TO CIVIL ACTION (a)   An action in personam to recover any amount due on a ground rent shall be in accordance with the rules governing a civil action. (b)   Execution upon a judgment in such action shall be in accordance with the rules governing the enforcement of judgments for the payment of money. Note: See Execution Rules 3101 to 3149, 3231, 3241, 3249, 3250, 3251 to 3253.

RULE 1162.  ENFORCEMENT IN REM. CONFORMITY TO MORTGAGE FORECLOSURE (a)  An action in rem to enforce a ground rent shall be in accordance with the rules governing the action of mortgage foreclosure, except that for the purposes of this chapter the terms “ground rent”, “covenantor” and “covenantee”

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(b)   Enforcement of a judgment in such action shall be in accordance with the rules governing enforcement of judgment in an action of mortgage foreclosure. Note: See Rule 3180 et seq.

The procedures set forth in Rules Nos. 1161 and 1162 shall be in addition to any right to distrain for rent due, the right of entry or any other remedy provided by law.

The trial of actions to enforce a ground rent by a judge sitting without a jury shall be in accordance with Rule 1038.

CHAPTER 57.6 PARTITION OF REAL PROPERTY

Part IV Ch. 36–40 Insurance

Rules 1551 to 1574

Rule

Part V Ch. 41–48A Zoning, etc.

   1551. Form of Action   1552. Venue   1553. Parties   1554. Specific Averments    1555. Pleading More than One Cause of Action   1556. Counterclaim    1557. Order Directing Partition. Post-Trial Relief    1558. Preliminary Conference. Appointment of Master   1559. Master. Hearing    1560. Property Capable of Division without Prejudice    1561. Property Capable of Proportionate Division. Award    1562. Property not Capable of Proportionate Division. Award    1563. Property not Capable of Division without Prejudice. Sale. Objections   1564. Life Estates    1565. Retention of Undivided Interests. Election. Parties not Appearing    1566. Preliminary Determination. Notice to Accept or Reject. Private Sale Confied to the Parties    1567. Private Sale Confined to Parties. Conduct. Confirmation   1568. Public Sale    1569. Master’s Report. Exceptions    1570. Decision and Order    1571. Trustees to Satisfy Liens and Charges    1572. Sale not Confined to Parties    1573. Return of Sale and Schedule of Distribution    1574. Costs and Counsel Fees    1590. Partition of Real Property. Acts of Assembly Not Suspended

Part VI Ch. 49–56 Taxation Part VII Ch. 57–63 Litigation Index

gtb-parealestate22-all.indb 971

Part IX Ch. 68–72 Condos, etc.

Except as otherwise provided in this chapter, the procedure in an action for the partition of real estate shall be in accordance with the rules relating to the civil action.

Part VIII Ch. 64–67 L/T

RULE 1551.  FORM OF ACTION

971

Part III Ch. 23–35 Mortgages

RULE 1164.  TRIAL WITHOUT JURY

Part II Ch. 15–22 Deeds

RULE 1163.  OTHER REMEDIES

Part I Ch. 1–14 Brokers

shall be substituted for the words “mortgage”, “mortgagor” and “mortgagee” in those rules.

Table of Contents

PART VII

12/22/21 10:45 AM

RULE 1552

RULES OF CIVIL PROCEDURE

RULE 1552.  VENUE An action for the partition of real property, including an action in which the Commonwealth is a party, may be brought in and only in a county in which all or any part of any property which is the subject matter of the action is located.

RULE 1553.  PARTIES An action for partition may be brought by any one or more co-tenants. All other co-tenants shall be joined as defendants.

RULE 1554.  SPECIFIC AVERMENTS The complaint shall include (a)   a description of the property and (b)   a statement of the nature and extent of the interest of each party in the property.

RULE 1555.  PLEADING MORE THAN ONE CAUSE OF ACTION (a)   The plaintiff may state in the complaint causes of action for the partition of all or any part of any properties in which the plaintiff and the defendants are co-tenants, irrespective of their location in the Commonwealth or of the proportion of the plaintiff’s interest in the several properties. (b)   If the rights of all the parties are derived from a common source of title, causes of action may be joined even though one or more of the defendants are co-tenants of less than all the properties.

RULE 1556.  COUNTERCLAIM A defendant may counterclaim for the partition of any or all property which the plaintiff might have included in the complaint.

RULE 1557.  ORDER DIRECTING PARTITION. POST-TRIAL RELIEF If the court determines that there shall be partition because of a default or ad-mission or after a hearing or trial, the court shall enter an order directing par-tition which shall set forth the names of all the co-tenants and the nature and extent of their interests in the property. No exceptions may be filed to an order directing partition. Note: Pennsylvania Rule of Appellate Procedure 311(a)(7) provides that an appeal may be taken as of right from an order directing partition.

However, a motion for post-trial relief must be filed following trial to an order which does not direct partition or which disposes of a claim other than a claim for partition.

RULE 1558.  PRELIMINARY CONFERENCE. APPOINTMENT OF MASTER (a)  The court, after the entry of the order directing partition, shall direct the parties or their attorneys to appear for a preliminary conference to consider (1)   whether the parties can agree upon a plan of partition or sale; (2)   the simplification of the issues; (3)   whether any issues or matters relating to the carrying out of the order of partition shall be referred to a master; and (4)   such other matters as may aid in the disposition of the action.

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RULE 1559.  MASTER. HEARING

If division can be made without prejudice to or spoiling the whole, the property shall be divided as follows: (a)   into as many purparts as there are parties entitled thereto, the purparts being proportionate in value to the interests of the parties;

(c)  if it cannot be divided as provided in Subdivisions (a) or (b), then into such number of purparts as shall be most advantageous and convenient without regard to the number of parties.

Property divided under Rule 1560(a) shall be awarded to the parties according to their respective interests.

RULE 1563.  PROPERTY NOT CAPABLE OF DIVISION WITHOUT PREJUDICE. SALE. OBJECTIONS

gtb-parealestate22-all.indb 973

Index

973

Part IX Ch. 68–72 Condos, etc.

(b)   Parties defendant owning a majority in value of the property may object in writing to any sale, requesting that the property be awarded to them at its valuation fixed by the court and that their interests in the same remain undivided. Upon such request the entire property shall be awarded to the parties objecting to sale, as tenants in common, subject to the payment to the parties desiring partition and sale of the amounts of their respective interests based upon the valuation. The amounts due the parties shall be charged as liens upon the property, to be paid in such manner and time as the court shall direct.

Part VIII Ch. 64–67 L/T

(a)   Except as otherwise provided in Subdivision (b), property not capable of division without prejudice to or spoiling the whole shall be offered for private sale confined to the parties.

Part VII Ch. 57–63 Litigation

Subject to acceptance or refusal and private sale among the parties as hereinafter provided, property not capable of division under Rule 1560(a) but capable of division under Rule 1560(b) or (c), shall be awarded equitably among the parties with appropriate provisions for owelty. Sums payable as owelty shall be secured and paid in such manner and time as the court shall direct.

Part VI Ch. 49–56 Taxation

RULE 1562.  PROPERTY NOT CAPABLE OF PROPORTIONATE DIVISION. AWARD

Part V Ch. 41–48A Zoning, etc.

RULE 1561.  PROPERTY CAPABLE OF PROPORTIONATE DIVISION. AWARD

Part IV Ch. 36–40 Insurance

(b)   if it cannot be divided as provided in Subdivision (a), then into as many purparts as there are parties entitled thereto, without regard to proportionate value;

Part III Ch. 23–35 Mortgages

RULE 1560.  PROPERTY CAPABLE OF DIVISION WITHOUT PREJUDICE

Part II Ch. 15–22 Deeds

A master who is appointed by the court shall make such examinations and hold such hearings as may be necessary, giving reasonable notice thereof. The master may employ appraisers and, with the authorization of the court, such other experts as are necessary to enable the master to perform his or her duties.

Part I Ch. 1–14 Brokers

(b)   The court, at any time after the preliminary conference, may appoint a master to hear the entire matter or to conduct any sale, or to act upon only specified issues or matters relating to the carrying out of the order of partition.

Table of Contents

PART VII

12/22/21 10:45 AM

RULE 1564

RULES OF CIVIL PROCEDURE

RULE 1564.  LIFE ESTATES Property subject to a life estate may be partitioned upon the entry of security as the court may direct conditioned upon the payment of annual rental value, interest or income of such property to the life tenant. If a life tenant is entitled to exclusive possession of any part of the premises subject to partition, the court may deny partition of that part or may direct partition subject to such exclusive right of possession.

RULE 1565.  RETENTION OF UNDIVIDED INTERESTS. ELECTION. PARTIES NOT APPEARING (a)   The court shall permit the shares of any two or more co-tenants to remain undivided between them if they so elect by writing filed within such time as the court or master shall direct. (b)   The court may permit the shares of any two or more co-tenants who do not appear in the action to remain undivided between them.

RULE 1566.  PRELIMINARY DETERMINATION. NOTICE TO ACCEPT OR REJECT. PRIVATE SALE CONFINED TO THE PARTIES (a)  Preliminary notice of the proposed partition and allotment of purparts under Rule 1560(b) or (c) or the inability to partition the property as provided under Rule 1563 shall be given to the parties in such manner as the court by local rule or special order shall direct. (b)(1)  The notice in the case of proposed partition under Rule 1560(b) or (c) shall require the parties within twenty days after service thereof to accept or reject the proposed plan of allocation. The notice in the case of inability to partition shall state that the property will be sold unless objection is made as provided in Rule 1563(b). (2)   The notice shall include a description of the property and the proposed partition, the valuation of the property as a whole and of the purparts, if any, into which it is proposed to be divided, the mortgages, liens, encumbrances or charges which affect the whole or any part of the property and the amounts due thereon. A plan or map of the proposed division of the property may be attached to the notice. (3)   In lieu of the detailed information set forth in Subdivision (2), the notice may specify a place within the county where the proposed plan and information may be examined. (c)   If any party rejects the proposed allotment of the purparts or if no objection is made to a sale under Rule 1563, the property shall be offered for private sale by open bidding confined to the parties to be held upon not less than twenty days’ notice.

RULE 1567.  PRIVATE SALE CONFINED TO PARTIES. CONDUCT. CONFIRMATION In any private sale confined to the parties, the property, if divided into purparts, shall be offered for sale both in purparts and as a whole to determine which will bring the greater price. No sale of the whole shall be confirmed unless the amount bid equals or exceeds the valuation of the whole fixed by the court. No sale of any purpart shall be confirmed unless the amount bid for such purpart equals or exceeds its valuation as fixed by the court. The award and allocation to the successful bidder shall be made subject to the payment of owelty where required.

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Ch. 57.6

Table of Contents

PART VII

RULE 1568.  PUBLIC SALE

RULE 1569.  MASTER’S REPORT. EXCEPTIONS

RULE 1570.  DECISION AND ORDER (a)   The decision shall include findings of fact as follows:

(2)  the number of purparts into which the property can be most advantageously divided, if partition proportionate in value to the interests of the parties cannot be made; (4)  the mortgages, liens and other encumbrances or charges which affect the whole or any part of the property and the amount due thereon;

(6)   whether the interests of persons who have not appeared in the action, or of defendants who have elected to retain their shares together shall remain undivided;

(8)   whether a sale of the property or any purpart not confined to the parties is required and if so, whether a private or public sale will in its opinion yield the better price. (1)   an appropriate award of the property or purparts to the parties subject to owelty where required; (2)   if owelty is required, the amount of the awards and charges which shall be necessary to preserve the respective interests of the parties, the purparts

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Index

975

Part IX Ch. 68–72 Condos, etc.

(b)   The order shall include:

Part VIII Ch. 64–67 L/T

(7)   whether the parties have accepted or rejected the allocation of the purparts or bid therefor at private sale confined to the parties; and

Part VII Ch. 57–63 Litigation

(5)   the credit which should be allowed or the charge which should be made, in favor of or against any party because of use and occupancy of the property, taxes, rents or other amounts paid, services rendered, liabilities incurred or benefits derived in connection therewith or therefrom;

Part VI Ch. 49–56 Taxation

(3)   the value of the entire property and of the purparts;

Part V Ch. 41–48A Zoning, etc.

(1)  whether the property is capable of division, without prejudice to or spoiling the whole, into purparts proportionate in value to the interests of the co-tenants;

Part IV Ch. 36–40 Insurance

(c)   Within ten days after notice of the filing of the report exceptions may be filed by any party to rulings on evidence, to findings of fact, to conclusions of law and to the proposed order. The court may, with or without taking testimony, remand the report or enter a decision in accordance with Rule 1570 which may incorporate by reference the findings and conclusions of the master in whole or in part.

Part III Ch. 23–35 Mortgages

(b)   The master shall give all persons in interest written notice of the date on which he or she intends to file the report and proposed order and shall specify an address within the county where they may be examined. The master may change the report and proposed order as he or she deems proper before filing them, but if any changes are made written notice thereof shall be given to all parties.

Part II Ch. 15–22 Deeds

(a)   A master who is appointed by the court shall file a report with respect to the matters submitted. The report shall follow the form of decision in Rule 1570, insofar as the scope of the reference to the master permits.

Part I Ch. 1–14 Brokers

If a private sale of the property or of any purpart is not confirmed under Rule 1567, the property or purpart shall be sold at public sale or at private sale not confined to the parties, as the court may direct.

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RULE 1571

RULES OF CIVIL PROCEDURE

and parties for or against which the same shall be charged, the time of payment and the manner of securing the payments; (3)   the protection required for life tenants, unborn and unascertained remaindermen, persons whose whereabouts are unknown or other persons in interest with respect to the receipt of any interest; and (4)   a public or private sale of the property or part thereof where required.

RULE 1571.  TRUSTEES TO SATISFY LIENS AND CHARGES (a)   The court, upon motion of any party or person in interest, or upon recommendation of the master, may appoint a trustee to receive payment of (1)   any sum due any party or person in whose favor a lien exists and who is unknown or cannot be found; (2)   a principal sum necessary to secure the payment of any amount charged upon property to be partitioned; (3)   the purchase price of any property sold in partition which is subject to a life estate and remainder. (b)   The trustee shall, upon entry of such security as the court shall direct and upon payment of the sums decreed, be authorized to satisfy of record any lien, whereupon the property shall be freed and discharged from such lien.

RULE 1572.  SALE NOT CONFINED TO PARTIES (a)   A sale not confined to the parties shall be conducted in such manner and upon such terms as the court shall direct by local rule or in the order of sale. It shall be subject to the power of the court to order a resale because of inadequacy of price. (b)   A public sale shall be held at such time and place as the court may direct. It shall be advertised in each county where any part of the property lies. (c)   A purchaser who is a party or a lien holder whose lien is discharged by the sale shall be allowed a credit equal to the amount of his or her distributive interest in the purchase price, less any charges assessed against him or her. The excess of the bid shall be paid in cash. (d)  If the court directs a master to conduct the sale, the master before accepting payment for the property shall file a bond in double the amount of the payment or in such lesser amount as shall be fixed by the court.

RULE 1573.  RETURN OF SALE AND SCHEDULE OF DISTRIBUTION (a)   Where the sale has been conducted by a master, the master shall promptly file with the prothonotary a return of sale together with a proposed order which shall (1)   confirm the sale; (2)   authorize the master to execute and deliver to the purchaser all necessary deeds and other instruments of title; (3)   contain appropriate provisions for the protection of life tenants, unborn and unascertained remaindermen, persons whose whereabouts are unknown, or other persons in interest and for the release or discharge of such interests; (4)   direct distribution of the proceeds to the persons or parties entitled; and (5)   provide for the payment of costs. (b)   The master shall give all persons in interest written notice of the date on which he or she intends to file the return of sale and proposed order and shall

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Ch. 57.7

RULE 1590.  PARTITION OF REAL PROPERTY. ACTS OF ASSEMBLY NOT SUSPENDED

(1)   Section 1 of the Act approved June 24, 1895, P.L. 237, 68 P.S. § 101. Explanatory Note: 68 P.S. § 101 provides that tenants in possession must deduct from their distributive share in partition that portion of the rental value to which co-tenants not in possession are entitled.

Explanatory Note: 16 P.S. §§ 9905, 9906 relate to registration of partition titles with Registry Survey Bureaus of counties having such bureaus.

Part VI Ch. 49–56 Taxation

CHAPTER 57.7 ACTIONS UPON MECHANICS’ LIENS

Part V Ch. 41–48A Zoning, etc.

(2)  Sections 5 and 6 of the Act approved April 22, 1943, P.L. 68, 16 P.S. §§ 9905, 9906.

Part IV Ch. 36–40 Insurance

The rules governing partition of real property shall not be deemed to suspend or affect

Part III Ch. 23–35 Mortgages

Costs shall be paid by the parties in proportion to their interests in the property. The compensation of appraisers, the master’s fee and compensation of experts authorized by the court shall be taxed as part of the costs. Reasonable counsel fees may be charged against the property or fund resulting therefrom, and apportioned among the parties and their counsel in such amount and manner as the court shall deem equitable.

Part II Ch. 15–22 Deeds

RULE 1574.  COSTS AND COUNSEL FEES

Part I Ch. 1–14 Brokers

specify an address within the county where they may be examined. The master may change the return of sale and proposed order as he or she deems proper before filing them, but if any changes are made written notice thereof shall be given to all parties. (c)   If the court approves the return of sale in whole or in part, the court shall enter an appropriate order. Any part of the order as to which a motion for posttrial relief is not filed within ten days shall become final.

Table of Contents

PART VII

Rules 1651 to 1661 Definitions. Conformity to Civil Action Venue Commencement of Action Defendant Rescinded The Complaint Joinder of Causes of Action Prohibited Set-Off. Counterclaim Compelling Commencement of Action Judgment. Execution Trial Without Jury

(a)   As used in this chapter “claim” means a mechanics’ lien claim which has been filed; “action” means an action to obtain judgment upon a claim.

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Index

977

Part IX Ch. 68–72 Condos, etc.

RULE 1651.  DEFINITIONS. CONFORMITY TO CIVIL ACTION

Part VIII Ch. 64–67 L/T

   1651.   1652.    1653.   1654.   1655.   1656.    1657.   1658.    1659.   1660.    1661.

Part VII Ch. 57–63 Litigation

Rule

12/22/21 10:45 AM

RULE 1652

RULES OF CIVIL PROCEDURE

(b)   Except as otherwise provided in this chapter, the procedure to obtain judgment upon a claim shall be in accordance with the rules relating to a civil action. Note: The procedure governing the filing of a claim is provided by the Mechanics’ Lien Law of 1963, 49 P.S. § 1101 et seq. These rules relate to the procedure between the filing of the lien and reduction of the claim to judgment.

RULE 1652.  VENUE (a)  The action shall be commenced in and only in the county in which the claim has been filed. (b)   Where the property liened is located in more than one county and claims have been filed in more than one county, the action may be brought in any such county. Note: Subdivision (b) parallels Section 701(c) of the Mechanics’ Lien Law of 1963, 49 P.S. § 1701(c).

RULE 1653.  COMMENCEMENT OF ACTION An action shall be commenced by filing a complaint with the prothonotary. The complaint shall be filed under the same docket number as the claim for the mechanics’ lien. Note: To file a claim for a mechanics› lien, see the Mechanics’ Lien Law of 1963, 49 P.S. §§ 1101-1902, as amended.

RULE 1654.  DEFENDANT (a)   The plaintiff shall name as defendant the owner named in the claim and the owner, if known, at the time the action is commenced. (b)   If the last owner of record prior to the commencement of the action has died, the plaintiff shall name as a defendant the personal representative, heir or devisee of such owner, if known. Note: For definition of owner see Section 201(3) of Mechanics’ Lien Law of 1963, 49 P.S. § 1201(3).

RULE 1655.  RESCINDED JUNE 20, 1985, EFFECTIVE JAN. 1, 1986 Note: For service of original process, see Rule 400 et seq.

RULE 1656.  THE COMPLAINT (a)   The plaintiff shall set forth in the complaint (1)   the name and address of each party to the action and, if the action is commenced by a subcontractor, the name and address of the contractor; (2)   the date of the filing of the claim; and (3)  a demand for judgment. (b)   The plaintiff shall attach a copy of the claim to the complaint as an exhibit. Note: A claim for a mechanics’ lien and the complaint to obtain judgment on the mechanics’ lien shall be filed under the same docket number. See Rule 1653.

RULE 1657.  JOINDER OF CAUSES OF ACTION PROHIBITED No other cause of action may be joined with an action to obtain judgment on a claim except that where the improvement is located in more than one county and claims have been filed in more than one of said counties the plaintiff may join the claims in a single action. Note: Under Section 306(a) of the Mechanics’ Lien Law of 1963, 49 P.S. § 1306(a), the claimant may join in one mechanics’ lien claims against the same property arising from work

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Table of Contents

PART VII

done under separate contracts or against more than one structure if intended to form part of the same plant.

A set-off arising from the same transaction or occurrence upon which the claim is based may be pleaded as new matter. No counterclaim may be asserted.

Note: See Rule 440 as to method of service of rule and Rule 405(b) as to form of affidavit.

RULE 1660.  JUDGMENT. EXECUTION Judgment in the action shall be enforced as provided by Rule 3190.

RULE 1661.  TRIAL WITHOUT JURY The trial of actions upon mechanics’ liens by a judge sitting without a jury shall be in accordance with Rule 1038.

Part V Ch. 41–48A Zoning, etc. Part VI Ch. 49–56 Taxation

CHAPTER 57.8 CONFESSION OF JUDGMENT FOR POSSESSION OF REAL PROPERTY Rules 2970 to 2976

Rule

Part VII Ch. 57–63 Litigation

  2970.  Conformity. Scope    2971. Commencement of Action   2972.  Successive Actions   2973.  Rescinded   2973.1.  Execution    2973.2. Notice Served Prior to Execution    2973.3. Notice Served With Writ of Possession. Prompt Hearing Limited to Issue of Waiver of Due Process Rights    2973.4. Choice of Procedure. Notice Upon Subsequent Executions    2974. Confession of Judgment. Form    2974.1. Praecipe for Writ of Possession    2974.2. Notice of Judgment and Execution Required by Rule 2973.2. Form    2974.3. Notice of Judgment and Execution Required by Rule 2973.3. Form    2975. Application of Amendments to Pending Actions    2976. Suspension of Acts of Assembly. Abolition of Practice and Procedure under Repealed Statutes

Part VIII Ch. 64–67 L/T

Except as otherwise provided in this chapter, the procedure in an action to enter a judgment in ejectment for possession of real property by confession pursuant to an instrument, other than a residential lease executed by a natural person,

Index

gtb-parealestate22-all.indb 979

Part IX Ch. 68–72 Condos, etc.

RULE 2970.  CONFORMITY. SCOPE

979

Part IV Ch. 36–40 Insurance

Note: See Section 706(c) of the Mechanics’ Lien Law of 1963, 49 P.S. § 1706(c) for special execution provisions where only part of a single tract is subject to the lien.

Part III Ch. 23–35 Mortgages

If a claimant has filed a claim and does not file a complaint, the prothonotary, upon praecipe of an owner, shall enter a rule as of course upon the claimant to file a complaint within twenty days after service of the rule, or be forever barred from so doing. If the claimant fails to do so, the prothonotary, upon praecipe of the owner and proof of service, shall enter judgment for the defendant.

Part II Ch. 15–22 Deeds

RULE 1659.  COMPELLING COMMENCEMENT OF ACTION

Part I Ch. 1–14 Brokers

RULE 1658.  SET-OFF. COUNTERCLAIM

12/22/21 10:45 AM

RULE 2971

RULES OF CIVIL PROCEDURE

authorizing such confession shall be in accordance with the rules relating to confession of judgment for money. Note: Confession of judgment in ejectment is abolished with respect to a residential lease executed by a natural person.

RULE 2971.  COMMENCEMENT OF ACTION (a)   An action shall be commenced by filing with the prothonotary a complaint substantially in the form provided by Rule 2952. The complaint shall also contain (1)  an averment, in place of that required by Rule 2952(a)(3), that the judgment is not being entered against a natural person in connection with a residential lease, and (2)   a description of the property and (3)   a demand for judgment in ejectment. (b)   The plaintiff shall file with the complaint a confession of judgment substantially in the form provided by Rule 2974. Note: If the plaintiff seeks mesne profits in ejectment a separate action must be brought for the mesne profits.

RULE 2972.  SUCCESSIVE ACTIONS If an instrument authorizes judgment to be entered in ejectment and for money, the entry of judgment for money shall not prevent the entry of judgment in ejectment. Note: The limits within which the plaintiff may have satisfaction under one or both of these judgments is a matter of substantive law.

RULE 2973.  RESCINDED APRIL 1, 1996, EFFECTIVE JULY 1, 1996 RULE 2973.1.  EXECUTION (a)   Except as otherwise provided by subdivisions (b) and (c), a judgment in ejectment entered by confession shall be enforced in the manner provided by Rule 3160 et seq. governing the enforcement of a judgment in an action of ejectment. Note: The form of praecipe required by subdivision (b) is in place of the form of praecipe prescribed by Rule 3254. The notice required by subdivision (c) is in addition to the procedural requirements of Rule 3160 et seq.

(b)   Execution shall be commenced by filing a praecipe for a writ of possession in the form prescribed by Rule 2974.1. (c)   If no petition to open or strike the judgment has been filed, written notice shall be served upon the defendant in the judgment either (1)   prior to execution as provided by Rule 2973.2, or (2)   with the writ of possession as provided by Rule 2973.3. Note: The written notice provided by this rule is required only in connection with execution proceedings. The notice is in addition to the notice of the entry of judgment required by Rule 236.

RULE 2973.2.  NOTICE SERVED PRIOR TO EXECUTION (a)   A written notice in the form prescribed by Rule 2974.2 shall be served on the defendant at least thirty days prior to the filing of the praecipe for a writ of possession. Note: If notice is served under this rule at least thirty days prior to the filing of the praecipe, notice need not be given under Rule 2973.3. Conversely, if notice is served under Rule 2973.3, notice need not be given under this rule. Rule 2974.1 governing the form of the praecipe for the writ of possession requires a certification that notice has been given as provided by this rule. Rule 2959(a)(3) requires a petition for relief from a confessed judgment to be filed within thirty days after service of notice pursuant to this rule.

980

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REAL ESTATE LITIGATION

Ch. 57.8

Note: See Rule 76 for the definition of “competent adult”.

Index

gtb-parealestate22-all.indb 981

Part IX Ch. 68–72 Condos, etc.

981

Part VIII Ch. 64–67 L/T

(a)   A plaintiff who has given notice pursuant to Rule 2973.2 may not proceed thereafter under Rule 2973.3.

Part VII Ch. 57–63 Litigation

RULE 2973.4.  CHOICE OF PROCEDURE. NOTICE UPON SUBSEQUENT EXECUTIONS

Part VI Ch. 49–56 Taxation

(b)   A defendant who has been given notice pursuant to Rule 2973(a) may file with the sheriff a petition to strike the judgment in the form provided by Rule 2967. The petition shall be limited to the issue whether the defendant voluntarily, intelligently and knowingly waived the right to notice and hearing prior to the entry of the judgment. The defendant may include in the claim a demand for a prompt hearing. The sheriff shall immediately notify the plaintiff of the filing of the petition. (c)   The sheriff shall immediately present the matter to the court. The court shall hear the claim within three business days thereafter upon such notice to the parties as the court shall direct and shall promptly dispose of the matter on the testimony, admissions or other evidence. (1)   If the court finds that the plaintiff has shown by a preponderance of the evidence that the defendant voluntarily, intelligently and knowingly waived the right to notice and hearing prior to the entry of judgment, it shall enter an order so determining and the stay of the execution proceedings under subdivision (d) shall terminate automatically. (2)  If the court finds that the plaintiff has not made the required showing, it shall enter an order vacating the writ of possession and striking the judgment. Upon entry of the order, any property from which the defendant has been evicted pursuant to the writ of possession shall be returned to the defendant’s possession. (d)   Execution proceedings shall be stayed during the period from the time the defendant files the hearing request form with the sheriff to the time the court makes the determination on the petition.

Part V Ch. 41–48A Zoning, etc.

Note: If notice is served under this rule with the writ of possession, notice need not be given under Rule 2973.2. Rule 2974.1 governing the form of the praecipe for the writ of possession requires a certification that notice will be given as provided by this rule. See Rule 2959(a)(3) which requires a petition for relief from a confessed judgment to be filed within thirty days after service of notice pursuant to this rule.

Part IV Ch. 36–40 Insurance

(a)   A written notice in the form prescribed by Rule 2974.3 and a form of petition to strike the judgment and request for prompt hearing prescribed by Rule 2967 shall be served upon the defendant with the writ of possession.

Part III Ch. 23–35 Mortgages

RULE 2973.3.  NOTICE SERVED WITH WRIT OF POSSESSION. PROMPT HEARING LIMITED TO ISSUE OF WAIVER OF DUE PROCESS RIGHTS

Part II Ch. 15–22 Deeds

(ii)  by the plaintiff mailing a copy in the manner prescribed by Rule 403, or (iii)   pursuant to special order of court as prescribed by Rule 430 if service cannot be made as provided in subparagraphs (i) or (ii), or (2)   upon a defendant in the judgment who has entered an appearance, by the plaintiff in the manner provided by Rule 440. (c)   The person serving the notice shall file a return of service as provided by Rule 405.

Part I Ch. 1–14 Brokers

(b)   The notice shall be served (1)   upon a defendant in the judgment who has not entered an appearance (i)  by the sheriff or by a competent adult in the manner prescribed by Rule 402(a) for the service of original process upon a defendant, or

Table of Contents

PART VII

12/22/21 10:45 AM

RULE 2974

RULES OF CIVIL PROCEDURE

(b)   The notice required by Rules 2973.2 and 2973.3 need not be given upon subsequent executions on a judgment if the notice was given prior to or upon a previous execution on that judgment and either (1)   the defendant filed a petition for relief from the judgment and the court denied the relief, or (2)   the defendant failed to file a petition for relief from the judgment within thirty days after service of the notice as required by Rule 2959(a)(3).

RULE 2974.  CONFESSION OF JUDGMENT. FORM The confession of judgment required by Rule 2971(b) shall be substantially in the following form: (Caption) Pursuant to the authority contained in the warrant of attorney, the original or a copy of which is attached to the complaint filed in this action, I appear for the defendant(s) and confess judgment in ejectment in favor of the plaintiff(s) and against the defendant(s) for possession of the real property described as follows: ___________________________________________________________________________ ___________________________________________________________________________ ___________________________________________________________________________. Description _________________________ Attorney for Defendant(s) Note: On the judgment a writ of possession may issue in the form provided by Rule 3255.

RULE 2974.1.  PRAECIPE FOR WRIT OF POSSESSION The praecipe for a writ of possession shall be substantially in the following form: [Caption] PRAECIPE FOR WRIT OF POSSESSION UPON A CONFESSED JUDGMENT To the Prothonotary: Issue writ of possession upon the judgment in ejectment entered by confession in the above matter. Certification I certify that (1)   This praecipe is based upon a judgment entered by confession, and (Delete three of the following paragraphs which are inapplicable.) (2)   Notice pursuant to Rule 2973.2 has been served at least thirty days prior to the filing of this praecipe as evidenced by a return of service filed of record. (3)   Notice pursuant to Rule 2973.3 will be served with the writ of possession. (4)  Notice was served in connection with a prior execution on this judgment and, pursuant to Rule 2973.4(b), no further notice is required. (5)  Notice is not required under Rule 2973.1(c) because a petition to open or strike the judgment was previously filed. _____________________________________________________ ___________________________________ Attorney for

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REAL ESTATE LITIGATION

Ch. 57.8

The notice required by Rule 2973.2 shall be substantially in the following form:

Part II Ch. 15–22 Deeds

(Caption) Notice under Rule 2973.2 of Judgment and Execution _______________ Notice of Defendant’s Rights To: ______________________________ Defendant(s)

IF YOU CANNOT AFFORD TO HIRE A LAWYER, THIS OFFICE MAY BE ABLE TO PROVIDE YOU WITH INFORMATION ABOUT AGENCIES THAT MAY OFFER LEGAL SERVICES TO ELIGIBLE PERSONS AT A REDUCED FEE OR NO FEE.

Part VI Ch. 49–56 Taxation

__________________________ (Name) __________________________ (Address) __________________________ (Telephone Number) ____________________________________ Attorney for Plaintiff ____________________________________ Address ____________________________________ Telephone Number

Part VII Ch. 57–63 Litigation Part VIII Ch. 64–67 L/T

The notice required by Rule 2973.3 shall be substantially in the following form:

Index

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Part IX Ch. 68–72 Condos, etc.

RULE 2974.3.  NOTICE OF JUDGMENT AND EXECUTION REQUIRED BY RULE 2973.3. FORM

983

Part V Ch. 41–48A Zoning, etc.

YOU SHOULD TAKE THIS PAPER TO YOUR LAWYER AT ONCE. IF YOU DO NOT HAVE A LAWYER, GO TO OR TELEPHONE THE OFFICE SET FORTH BELOW. THIS OFFICE CAN PROVIDE YOU WITH INFORMATION ABOUT HIRING A LAWYER.

Part IV Ch. 36–40 Insurance

You may have legal rights to defeat the judgment or to prevent your being removed from the property. ANY PETITION SEEKING RELIEF FROM THE JUDGMENT MUST BE FILED WITHIN THIRTY (30) DAYS AFTER THE DATE ON WHICH THIS NOTICE IS SERVED ON YOU OR YOU MAY LOSE YOUR RIGHTS.

Part III Ch. 23–35 Mortgages

A judgment for possession of real property has been entered against you and in favor of the plaintiff without prior notice and hearing based on a confession of judgment contained in a promissory note or other document allegedly executed by you. The sheriff may remove you from the property at any time after thirty days after the date on which this notice is served on you.

(Caption) Notice under Rule 2973.3 of Judgment and Execution Thereon

Part I Ch. 1–14 Brokers

RULE 2974.2.  NOTICE OF JUDGMENT AND EXECUTION REQUIRED BY RULE 2973.2. FORM

Table of Contents

PART VII

12/22/21 10:45 AM

RULE 2975

RULES OF CIVIL PROCEDURE

_______________ Notice of Defendant’s Rights To: ______________________________ Defendant(s) A judgment for possession of real property has been entered against you and in favor of the plaintiff without prior notice and hearing based on a confession of judgment contained in a promissory note or other document allegedly executed by you. The court has issued and the sheriff has served a writ of possession which directs the sheriff to remove you from possession of the real property. You may have legal rights to defeat the judgment or to prevent your being removed from the property or to regain possession of the property if you have been removed, if you did not voluntarily, intelligently and knowingly give up your constitutional right to notice and hearing prior to the entry of judgment or if you have defenses or other valid objections to the judgment. ANY PETITION SEEKING RELIEF FROM THE JUDGMENT AND TO REGAIN POSSESSION MUST BE FILED WITHIN THIRTY (30) DAYS AFTER THE DATE ON WHICH THIS NOTICE IS SERVED ON YOU OR YOU MAY LOSE YOUR RIGHTS. If you have been removed from the property without notice or the opportunity for a hearing, you have a right to a prompt court hearing if you claim that you did not voluntarily, intelligently and knowingly give up your rights to notice and hearing prior to the entry of the judgment. If you wish to exercise this right, you must immediately fill out and sign the request for hearing which accompanies the writ of possession and deliver it to the Sheriff of _______________ County at ________________________________________. YOU SHOULD TAKE THIS PAPER TO YOUR LAWYER AT ONCE. IF YOU DO NOT HAVE A LAWYER, GO TO OR TELEPHONE THE OFFICE SET FORTH BELOW. THIS OFFICE CAN PROVIDE YOU WITH INFORMATION ABOUT HIRING A LAWYER. IF YOU CANNOT AFFORD TO HIRE A LAWYER, THIS OFFICE MAY BE ABLE TO PROVIDE YOU WITH INFORMATION ABOUT AGENCIES THAT MAY OFFER LEGAL SERVICES TO ELIGIBLE PERSONS AT A REDUCED FEE OR NO FEE. __________________________ (Name) __________________________ (Address) __________________________ (Telephone Number) ____________________________________ Attorney for Plaintiff ____________________________________ Address ____________________________________ Telephone Number Note: See Rule 2967 for the form of the Request for Hearing.

RULE 2975.  APPLICATION OF AMENDMENTS TO PENDING ACTIONS (a)   The amendments promulgated in 1996 to the rules of civil procedure prohibiting the entry of a judgment by confession for possession in connection with

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REAL ESTATE LITIGATION

Ch. 57.9

Note: The amendments to Rules 2970 and 2971 relate to the prohibition against the entry of a judgment by confession arising from a consumer credit transaction.

Note: The amendments to Rules 2973.1 through 2973.3 and 2974.1 through 2974.3 relate to execution upon a judgment entered by confession and relief from the judgment.

The practice and procedure provided in all former Acts of Assembly governing confession of judgment, which have been repealed by the Judiciary Act Repealer Act (JARA), Act of April 28, 1978, No. 53, and which are now part of the common law of the Commonwealth by virtue of Section 3(b) of JARA, are hereby abolished and shall not continue as part of the common law of the Commonwealth

Part V Ch. 41–48A Zoning, etc.

Rules 2981 to 2986

Rule

RULE 2981.  DEFINITIONS. CONFORMITY TO CIVIL ACTION

Note: Act No. 6 is known as the Loan Interest and Protection Law. Act No. 7 is known as the Goods and Services Installment Sales Act.

Note: The action is required by section 407 of Act No. 6 of 1974, 41 P.S. § 407, and by section 605 of Act No. 7 of 1966 (Special Session No. 1), as amended, 69 P.S. § 1605.

RULE 2982.  VENUE

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Index

(a)   The action required by Act No. 6 of 1974 shall be commenced only in the county in which the confessed judgment, whether entered originally or by transfer, constitutes a lien upon residential real estate of the defendant. (b)   The action required by Act No. 7 of 1966 (Special Session No. 1) shall be commenced in the county in which the contract was in fact signed by the buyer,

Part IX Ch. 68–72 Condos, etc.

(b)  Except as otherwise provided in this chapter, the procedure shall be in accordance with the rules relating to a civil action.

Part VIII Ch. 64–67 L/T

“Action” means an action required by the Act as a prerequisite to the issuance of execution upon certain judgments entered by confession. It shall not include an action of mortgage foreclosure.

Part VII Ch. 57–63 Litigation

(a)   As used in this chapter “Act” means Act No. 6 of 1974, approved January 30, 1974, 41 P.S. § 101 et seq. or Act No. 7, approved October 28, 1966 (Special Session No. 1), as amended by the Act of March 25, 1982, No. 68, 69 P.S. § 1101 et seq.

Part VI Ch. 49–56 Taxation

   2981. Definitions. Conformity to Civil Action   2982.  Venue    2983. Commencement of Action   2984.  Complaint   2985.  Rescinded    2986. Judgment. Conforming the Confessed Judgment

985

Part IV Ch. 36–40 Insurance

CHAPTER 57.9 STATUTORY ACTION TO CONFORM CONFESSED JUDGMENT

Part III Ch. 23–35 Mortgages

RULE 2976.  SUSPENSION OF ACTS OF ASSEMBLY. ABOLITION OF PRACTICE AND PROCEDURE UNDER REPEALED STATUTES

Part II Ch. 15–22 Deeds

(b)   The amendments promulgated in 1996 to the rules governing execution on a judgment entered by confession for possession shall apply to executions commenced after the effective date set forth in the Order of the Supreme Court.

Part I Ch. 1–14 Brokers

a residential lease shall apply to actions commenced after the effective date set forth in the Order of the Supreme Court.

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RULE 2983

RULES OF CIVIL PROCEDURE

in the county in which the buyer resided at the time the contract was entered into, in the county in which the buyer resides at the commencement of the action, or in the county in which the goods purchased pursuant to such contract have been so affixed to real property as to become a part of such real property.

RULE 2983.  COMMENCEMENT OF ACTION The action shall be commenced by filing a complaint with the prothonotary.

RULE 2984.  COMPLAINT The complaint shall include: (1)  the names of the parties to the confessed judgment which is the subject matter of the action and the court and number, and the date and amount thereof; (2)   a copy of the notice required by the Act and the date it was sent; Note: The notice required by section 403 of Act No. 6 of 1974, 41 P.S. § 403, or by section 1102 of Act No. 7 of 1966 (Special Session No. 1), 69 P.S. § 2102, replaces the notice required under Rule 2958.

(3)   an itemization of the amount claimed to be due; (4)   a demand for the judgment required by the Act. Note: See section 407 of Act No. 6 of 1974, 41 P.S. § 407, and section 605 of Act No. 7 of 1966 (Special Session No. 1), 69 P.S. § 1605.

RULE 2985.  RESCINDED JUNE 20, 1985, EFFECTIVE JAN. 1, 1986 Note: For service of original process, see Rule 400 et seq.

RULE 2986.  JUDGMENT. CONFORMING THE CONFESSED JUDGMENT (a)   Judgment shall be entered in the action for the amount, if any, due the plaintiff from the defendant or the amount, if any, due the defendant from the plaintiff. That judgment shall merge with the confessed judgment. The court shall enter an appropriate order conforming the confessed judgment to the judgment in the action. Note: Under Rule 214(g) trial of the action may be advanced by the court for good cause. Once the judgment is conformed, it is enforced in the same manner as other money judgments pursuant to Rule 3101 et seq. Notice under Rule 2956.1(c) is not required when a confessed judgment has been conformed pursuant to this rule. (b)   If the confessed judgment was entered in any county other than the county in which the action was brought, no execution may issue on the confessed judgment in that other county until after a certified copy of the order conforming the confessed judgment has been filed therein.

CHAPTER 57.10 ENFORCEMENT OF MONEY JUDGMENTS FOR THE PAYMENT OF MONEY Rules 3101 to 3159

Rule

   3101. Definitions. Garnishee. Scope.    3101.1. Property Subject to Execution. Execution Within and After Five Years.    3101.2. Obligation Secured by Real and Personal Property. Plaintiff’s Election to Proceed against Both in Accordance with Its Rights against the Real Property.    3102. Writ of execution.

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REAL ESTATE LITIGATION

Ch. 57.10

Part I Ch. 1–14 Brokers

  3103. Commencement; issuance.    3104. Writ of Execution. Entry. Lien.    3105. Writ; notation of time of receipt.    3106. Substitution, reissuance and expiration of writ.    3107. Order of levy and attachment.    3108. Service of Writ, Notice of Execution.    3109. Manual possession; retention of possession.    3110. Execution against contents of safe deposit box.    3111. Service of the Writ on Garnishee. Effect.    3111.1. Exemptions from levy and attachment.    3112. Service of the writ upon garnishee; real property of defendant in name of third party.    3113. Service upon garnishee; execution against mortgages, judgments or other liens on real property.    3114. Sequestration of rents, principal, interest, income, etc.    3115. Writs of several plaintiffs; notation of levy.    3116. Security for sheriff.    3117. Discovery in aid of execution.    3118. Supplementary relief in aid of execution.    3119. Release of property from levy.    3120. Abandonment of levy.    3121. Stay of execution; setting aside execution.    3122. Venue of stay and other proceedings.   3123. Debtor’s exemption.    3123.1. Claim for exemption or immunity of property; prompt hearing.    3124. Order of sale.    3125. Perishable property; sale, preservation, or other disposition.    3126. Sale of inventory in course of trade.    3127. Right of sheriff to break and enter.    3128. Notice of sale; personal property.    3129. Notice of sale; real property.    3129.1. Sale of Real Property. Notice. Affidavit.    3129.2. Notice of sale; handbills; written notice; publication.    3129.3. Postponement of Sale. New Notice. Failure of Plaintiff to Attend Sale.    3130. Sale of securities.    3131. Sale of real property located in more than one county.    3132. Setting aside sale.    3133. Lien creditor as purchaser.    3134. Transfer of personal property to purchaser.    3135. Sheriff’s Deed to Real Property. Correction of Deed.    3136. Distribution of proceeds.    3137. Priority of distribution as between competing plaintiffs.    3138. Sheriff’s expenses and fees; recovery as costs; abandonment of writ for nonpayment.   3139. Sheriff’s return.    3140. Notice by garnishee.    3141. Garnishee’s duty to defend; venue of proceedings.   3142. Preliminary objections.    3143. Dissolution of attachment; release of property; bond.    3144. Interrogatories to garnishee.   3145. Interrogatories; procedure.    3146. Judgment against garnishee upon default or admission in answer to interrogatories.    3147. Judgment against garnishee on pleadings or after trial.    3148. Content of judgment against garnishee; execution.    3149. Objection to security.    3159. Acts of Assembly not suspended.

Part II Ch. 15–22 Deeds Part III Ch. 23–35 Mortgages Part IV Ch. 36–40 Insurance Part V Ch. 41–48A Zoning, etc. Part VI Ch. 49–56 Taxation Part VII Ch. 57–63 Litigation Part VIII Ch. 64–67 L/T

(a)   As used in this chapter “judgment” means a judgment or order requiring the payment of money entered in any court which is subject to these rules, including a final or interlocu-

Index

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Part IX Ch. 68–72 Condos, etc.

RULE 3101.  DEFINITIONS. GARNISHEE. SCOPE.

987

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PART VII

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RULE 3101.1 RULES OF CIVIL PROCEDURE tory order for payment of costs, except a judgment against the Commonwealth or a political subdivision; Official Note: The enforcement of judgments in special actions of ejectment, replevin and mortgage foreclosure is governed by Rules of Civil Procedure 3160 et seq. Political subdivision includes a municipal or other local authority. See Definition Rule 76.

“plaintiff” means the holder of a judgment; “political subdivision” means a municipal or other local authority. See Definition Rule 76. “defendant” means any party against whom a judgment has been entered; “security” means a security as defined by the Uniform Commercial Code; “document of title” means a negotiable document of title as defined in the Uniform Commercial Code. (b)   Any person may be a garnishee and shall be deemed to have possession of property of the defendant if the person (1)   owes a debt to the defendant; (2)   has property of the defendant in his or her custody, possession or control; Official Note: For limitation on the power to attach tangible personal property see Rule 3108(a).

(3)   holds as fiduciary property in which the defendant has an interest; (4)   holds the legal title to property of the defendant whether or not in fraud of creditors; or (5)   owns or possesses real property subject to a mortgage, judgment or other lien in which defendant has an interest. Official Note: Judgments against the Commonwealth, political subdivisions and public authorities constituting bodies corporate and politic, shall be enforced in accord with the appropriate Acts of Assembly which remain unsuspended. As to first class townships, see The First Class Township Code of June 24, 1931, P. L. 1206, § 1711, as amended, 53 P. S. § 56711. As to second class townships, see Second Class Township Code of May 1, 1933, P. L. 103, No. 69, § 3205, as amended, 53 P. S. § 68205. As to boroughs, see the Borough Code of February 1, 1966, P. L. (1965) 1656 , No. 581, § 1303, as amended, 53 P. S. § 46303. As to school districts, see the Act of March 10, 1949, P. L. 30, § 611, as amended, 24 P. S. § 6-611. As to municipal authorities, state highway authorities, bridge authorities, parking authorities, public housing authorities, General State Authority, and other like public corporations, see the various applicable acts creating them, limiting the remedies of both bondholders and creditors. The following Acts of Assembly were repealed by the Judiciary Act Repealer Act (JARA). Pursuant to Section (3)(b) of that Act, 42 Pa.C.S. § 20003(b), these statutes remain part of the common law of the Commonwealth. For an example of the application of Section 3(b) of the Act, see Ricci v. Cuisine Management Services, 423 Pa. Super Ct. 371, 621 A.2d 163, 165 (1993). The County Code of August 9, 1955, P. L. 323, § 2804, 16 P. S. § 2804, as amended. The Act of July 28, 1953, P. L. 723, § 3204, 16 P. S. § 6204 pertaining to second class counties.

(c)  The rules of this chapter shall not apply to the attachment of wages, salary or commissions to satisfy a money judgment arising from a residential lease pursuant to Section 8127(a)(3.1) of the Judicial Code. Official Note: For the attachment of wages under Section 8127(a)(3.1) of the Judicial Code, see Rule 3301 et seq.

RULE 3101.1.  PROPERTY SUBJECT TO EXECUTION. EXECUTION WITHIN AND AFTER FIVE YEARS. (a)(1)  Execution may issue within five years after entry of the judgment sought to be enforced or any judgment of revival or agreement to revive, against

988

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REAL ESTATE LITIGATION

Ch. 57.10

Table of Contents

PART VII

(i)   real property which is subject to the lien of the judgment, and

Official Note: Subdivisions (a)(1) and (2) continue the practice under Section 7 of the Act of July 3, 1947, P. L. 1234, 12 P. S. § 883 (repealed) relating to property subject to execution and execution after five years. For the applicable law under subdivision (b), see Section 5529(a) of the Judicial Code, 42 Pa.C.S. § 5529(a) (twenty-year limitation to issue execution upon personal property). See also Shearer v. Naftzinger, 747 A.2d 859 (Pa. 2000).

(2)  A claim that any tangible personal property levied upon pursuant to a writ of execution is the property of a person other than the defendant in the execution shall proceed in accordance with Rule 3201 et seq. governing sheriff’s interpleader.

(1)   the mortgage covers both the real property and the personal property against which the plaintiff seeks execution, and

(c)   If plaintiff elects to proceed as provided by this rule, the term “real property” as used in this chapter shall be deemed to include the personal property. Official Note: Subdivision (c) is not applicable to a proceeding in sheriff’s interpleader under Rule 3201 et seq. in which tangible personal property levied upon is claimed to be the property of a person other than the defendant in the execution.

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Index

989

Part IX Ch. 68–72 Condos, etc.

(2)   the plaintiff intends to proceed against both in accordance with its rights against the real property pursuant to Section 9604 of the Uniform Commercial Code and this rule.

Part VIII Ch. 64–67 L/T

(b)   The plaintiff shall make the election to proceed under subdivision (a) by filing an affidavit setting forth the place of record of the mortgage and stating that

Part VII Ch. 57–63 Litigation

Official Note: The rules of this chapter governing execution on personal property do not apply to an execution on personal property if an election has been made to proceed under this rule. However, Rule 3201 et seq. governing sheriff’s interpleader does apply when tangible personal property levied upon is claimed to be the property of a person other than the defendant in the execution. For a similar provision applicable to the enforcement of a judgment of mortgage foreclosure, see Rule 3180(b).

Part VI Ch. 49–56 Taxation

(a)(1)   A money judgment on an obligation secured by a mortgage which grants a mortgage lien on an estate, leasehold or interest in land and also a security interest in personal property, at the election of the plaintiff, may be enforced against both in one proceeding pursuant to the rules of this chapter governing execution against real property.

Part V Ch. 41–48A Zoning, etc.

RULE 3101.2.  OBLIGATION SECURED BY REAL AND PERSONAL PROPERTY. PLAINTIFF’S ELECTION TO PROCEED AGAINST BOTH IN ACCORDANCE WITH ITS RIGHTS AGAINST THE REAL PROPERTY.

Part IV Ch. 36–40 Insurance

A proceeding to revive a judgment lien is not relevant to an execution upon personal property.

Part III Ch. 23–35 Mortgages

(b)  Execution may issue against personal property within the time allowed by law.

Part II Ch. 15–22 Deeds

(2)   If more than five years have expired since the entry of the judgment or of the last preceding judgment of revival or agreement to revive, no execution against real property may issue until a writ of revival shall have issued and been reduced to judgment or an agreement to revive entered. The execution shall issue on the judgment or agreement so entered and not on the original judgment.

Part I Ch. 1–14 Brokers

(ii)  real property, title to which at the time of the entry of the writ of execution in the judgment index is recorded in the name of the person against whom the judgment is entered.

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RULE 3102

RULES OF CIVIL PROCEDURE

RULE 3102.  WRIT OF EXECUTION. Except as provided in Rule 3250, a judgment shall be enforced by a writ of execution substantially in the form provided by Rule 3252. Official Note: Adopted March 30, 1960, effective November 1, 1960. Civil arrest has been abolished except as provided by Section 5108(b) of the Judicial Code, 42 Pa.C.S. § 5108(b). Writs of fieri facias, attachment execution, vendex, liberari facias and all other forms of execution writs on money judgments against property of the defendant are supplanted by the writ of execution provided by these rules. Exemption and immunity of property from execution remain as heretofore. For limitations as to execution against partners or association members on judgments against partnerships or unincorporated associations, see Rules 2132 and 2155.

RULE 3103.  COMMENCEMENT; ISSUANCE. (a)   Execution shall be commenced by filing a praecipe for a writ of execution with the prothonotary of any county in which judgment has been entered. Except as otherwise prescribed by Rule 2963 governing a judgment entered by confession, the praecipe shall be in the form prescribed by Rule 3251. Official Note: The following Acts of Assembly contain special procedures in connection with the issuance of the writ: Section 428 of the Act approved June 2, 1915, P. L. 736, as amended, 77 P. S. § 951, providing for filing with the prothonotary an affidavit of default in payments before execution may issue on workmen’s compensation judgments. Section 712 of the Act approved May 15, 1933, P. L. 565, as amended, 71 P. S. § 733-712 requiring leave of court for execution against a financial institution of which the Secretary of Banking is in possession as receiver. Section 3377 of the Probate, Estates and Fiduciaries Code, 20 Pa.C.S. § 3377, providing that execution may not issue on judgments against decedents other than on mortgages, ground rents or conditional sales of real or personal property without agreement in writing of the personal representative or approval of the Orphans’ Court. The Soldier’s and Sailor’s Civil Relief Act, 50 U.S.C.A. Appendix 520.

(b)   A writ issued by the prothonotary of the county in which judgment was entered originally or by transfer or certification from another court in the same county may be directed to the sheriff of any county within the Commonwealth. Official Note: Rule 2959(a)(1) authorizes the defendant in a confessed judgment to move to open judgment either in the county of entry or of execution.

(c)   When a judgment is transferred to another county, a writ issued by the prothonotary of the transferee county may be directed only to the sheriff of his county. (d)   Writs may be issued at the same or different times or to the sheriffs of different counties without a prior return of any outstanding writ. (e)   Upon issuance of the writ the prothonotary shall transmit it directly to the sheriff to whom it is directed or upon plaintiff’s request deliver it to the plaintiff or the plaintiff’s representative for transmittal.

RULE 3104.  WRIT OF EXECUTION. ENTRY. LIEN. (a)(1)  When issuing the writ, the prothonotary shall enter it against the defendant in the judgment index. The writ, when entered, shall (i)   continue the lien upon real property which is then subject to the lien of the judgment, and (ii)   create a lien on real property acquired by the defendant subsequent to the entry of the judgment, located in the county, title to which at the time of entry of the writ is recorded in the name of the defendant. Official Note: As to the effect of entry of the writ, Rule 3104 continues the practice under the Judgment Lien Law of 1947, 12 P. S. § 883 (repealed). See also Section 4303 of the Judicial Code, 42 Pa.C.S. § 4303.

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PART VII

The praecipe for the writ of execution contains a direction to the prothonotary to enter the writ in the judgment index. See Rule 3251.

The sheriff shall note on the writ the date and time when it is received.

RULE 3106.  SUBSTITUTION, REISSUANCE AND EXPIRATION OF WRIT.

Official Note: Adopted March 30, 1960, effective November 1, 1960.

RULE 3108.  SERVICE OF WRIT, NOTICE OF EXECUTION.

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Index

(2)   a lien upon real property created under a mortgage, judgment or otherwise, by serving as garnishee the mortgagor, judgment or lien debtor, and the

Part IX Ch. 68–72 Condos, etc.

Official Note: The following Acts of Assembly remain unsuspended: The Uniform Commercial Code, 13 Pa.C.S. § 7602, requiring seizure, surrender or injunction against negotiation of negotiable documents of title covering goods in the possession of a bailee. The Uniform Commercial Code, 13 Pa.C.S. § 8112, providing for the legal process by a creditor to reach a certificated security, an uncertificated security and a security entitlement. The Pawn Brokerage Act of April 6, 1937, P. L. 200, § 21 63 P. S. § 281–21, providing that pawnbrokers shall not be required by legal process to deliver a pledge without surrender of the pawn ticket unless the pawn ticket has been impounded or its negotiation enjoined. For special provisions relating to access to safe deposit boxes see Rule 3110.

Part VIII Ch. 64–67 L/T

(a)   Service of the writ shall be made by the sheriff in the case of (1)   tangible personal property, by levy thereon or, if the property is in possession of a third person who prevents a levy or fails to make the property of the defendant available to the sheriff for levy, by serving the third person as garnishee;

Part VII Ch. 57–63 Litigation

Real or personal property of the defendant may be levied upon or attached in any order or simultaneously, as the plaintiff may direct.

Part VI Ch. 49–56 Taxation

RULE 3107.  ORDER OF LEVY AND ATTACHMENT.

Part V Ch. 41–48A Zoning, etc.

(a)   Upon praecipe stating that a writ has been lost or destroyed a substituted writ may be issued. (b)  A writ may be reissued at any time, and any number of times, by endorsement thereon by the prothonotary of the word “reissued”. (c)   A reissued writ may name a garnishee not originally named. (d)   A writ shall not be served nor shall a levy or attachment be made thereunder after the expiration of ninety days from the date of issuance or reissuance. After levy or attachment has been made under the writ within the ninety day period it shall remain valid without further reissuance for the purpose of completing the pending execution proceedings under the levy or attachment.

Part IV Ch. 36–40 Insurance

RULE 3105.  WRIT; NOTATION OF TIME OF RECEIPT.

Part III Ch. 23–35 Mortgages

(b)   Upon receiving a writ from another county, the sheriff shall deliver it to the prothonotary of his or her county who shall thereupon enter it in the judgment index and return it to the sheriff for execution. Such entry shall have the same effect as the entry of a judgment against the defendant. (c)  When the writ directs attachment of real property of the defendant in the name of a garnishee, the prothonotary of the county in which the writ is to be executed, upon praecipe of the plaintiff so directing and describing the real property in that county, shall enter the writ against the garnishee in the judgment index as a lis pendens. Entry against the garnishee shall constitute a lis pendens against the described property only in the county where the writ is entered and not against any other property of the garnishee.

Part II Ch. 15–22 Deeds

Official Note: The lien of a writ of execution is not subject to revival under Rule 3025 et seq. governing revival of the lien of a judgment.

Part I Ch. 1–14 Brokers

(2)   A lien created or continued solely by the entry of a writ of execution in the judgment index shall continue for a period of five years from the date the writ was entered.

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RULE 3109

RULES OF CIVIL PROCEDURE

real owner of the real property upon which the mortgage, judgment or other lien is secured, as provided in Rule 3113; Official Note: Only personal service upon the mortgagor or judgment debtor in the same manner as a writ of summons in a civil action will attach the personal liability of the mortgagor on the bond or the personal liability of the judgment debtor on the judgment.

(3)   the interest of the defendant in a partnership, by serving the partnership as garnishee; (4)   other intangible personal property and rents, by serving a garnishee; Official Note: Rents may also be ordered sequestered under Rule 3114 relating to execution against real property or a mortgage or lien thereon.

(5)   real property of the defendant, title to which is recorded in the name of a third party, by levy and attachment as provided by Rule 3112; (6)  all other real property in the county, by noting upon the writ a brief description of the real property levied upon and a statement that the sheriff has levied upon the defendant’s interest therein. (b)   Upon levy or attachment, the sheriff shall mail a copy of the writ to the execution defendant at the last known address. The plaintiff shall provide the sheriff with copies of the writ and envelopes for mailing properly stamped and addressed. The sheriff shall note in the return the mailing of the writ and the date thereof.

RULE 3109.  MANUAL POSSESSION; RETENTION OF POSSESSION. (a)  The sheriff may, or at the direction of the plaintiff shall, take manual possession or custody of any tangible personal property of the defendant upon which the sheriff has made a levy. (b)  The sheriff shall thereafter hold the property until termination of the proceedings, unless (1)   otherwise authorized in writing by the plaintiff; (2)   the levy is abandoned, set aside or withdrawn; (3)   the property is released from the levy; or (4)   the plaintiff fails to give bond or security required by these rules. (c)   If the sheriff does not retain possession of the property taken, it shall be returned to the person from whom it was taken. (d)   The sheriff may require bond or security for the actual or estimated cost of retaining possession of and preserving property levied upon.

RULE 3110.  EXECUTION AGAINST CONTENTS OF SAFE DEPOSIT BOX. (a)   The sheriff shall levy upon property of the defendant in a safe deposit box by serving the depository or custodian of the box. (b)   Service of the writ shall enjoin the depository or custodian from opening or permitting the opening of the box except as directed by the court. (c)   The court, on petition of the plaintiff, shall grant a rule on the defendant, the depository or custodian, and any person who has the right to open the box, to show cause why the box should not be opened in the presence of the sheriff, by force if necessary, and the property of the defendant found therein delivered to the sheriff. If the defendant, the depository or custodian, or a person who has the right to open the box cannot be served personally with the petition and rule, that person shall be served by sending a copy of the petition and rule by registered mail directed to his or her last known address or, if no address is known and an affidavit to that effect is filed, by publication in such manner as the court by local rule or special order shall direct. Official Note: “Registered mail” includes certified mail. See Definition Rule No. 76.

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RULE 3111.  SERVICE OF THE WRIT ON GARNISHEE. EFFECT.

Official Note: For limitations on the power to attach tangible personal property see Rule 3108(a).

(3)   If no response to the petition is filed, upon praecipe, the writ of garnishment shall be terminated. Official Note: If a response is filed to the petition to terminate the garnishment, it shall be resolved pursuant to motion and answer practice. See Rule 208.1 et seq.

RULE 3111.1.  EXEMPTIONS FROM LEVY AND ATTACHMENT.

(1)   the first $10,000 of each account of the defendant containing any funds which are deposited electronically on a recurring basis and are identified as being funds that upon deposit are exempt from execution, levy or attachment under Pennsylvania or Federal law,

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Official Note: See Rule 3146(b)(2) governing judgment against a bank or other financial institution as garnishee upon admission in answer to interrogatory.

Part IX Ch. 68–72 Condos, etc.

In the absence of a court order, service of the writ upon a bank or other financial institution as garnishee shall not attach

Part VIII Ch. 64–67 L/T

(e)   Violation of the mandate and injunctive orders of the writ may be punished as a contempt.

Part VII Ch. 57–63 Litigation

(d)  Service of the writ upon the garnishee shall also subject the garnishee to the mandate and injunctive orders of the writ restraining the garnishee from paying any debt to or for the account of the defendant and from delivering any property of the defendant which may be attached under these rules to anyone except the sheriff or otherwise disposing thereof until further order of the court or discontinuance or termination of the attachment.

Part VI Ch. 49–56 Taxation

(2)  Any response to the petition shall be filed within twenty days of the filing of the petition and set forth the reasons not to terminate the garnishment.

Part V Ch. 41–48A Zoning, etc.

(c)(1)   If a garnishment has not been acted upon within one year of the filing of the garnishment, the garnishee or the defendant may file a petition to terminate the garnishment. The petition shall include a notice that the plaintiff has twenty days to respond to the filing of the petition and that upon failure to do so, the garnishment may be terminated.

Part IV Ch. 36–40 Insurance

See Rule 3111.1 providing that service of the writ does not attach the first $10,000 of each account of the defendant in which any funds are deposited electronically on a recurring basis and are identified as funds that upon deposit are exempt from attachment, or each account of the defendant in which funds on deposit exceed $10,000 at any time, if all funds are deposited electronically on a recurring basis and are identified as being funds that upon deposit are exempt from attachment.

Part III Ch. 23–35 Mortgages

(b)  Service of the writ upon the garnishee shall attach all property of the defendant which may be attached under these rules which is in the possession of the garnishee. It shall also attach all property of the defendant which may be attached under these rules and which comes into the garnishee’s possession thereafter until judgment against the garnishee even though no such property of the defendant was in the garnishee’s possession at the time of service.

Part II Ch. 15–22 Deeds

(a)   The writ shall be served by the sheriff upon the garnishee in the manner prescribed by Rule 402(a) except as otherwise provided by Rules 3112 and 3113. The sheriff shall furnish the garnishee with an additional copy of the writ for each defendant. If the garnishee served was not named in the writ he shall be added as a garnishee and return made accordingly.

Part I Ch. 1–14 Brokers

(d)   The court shall not order the opening of a box by force unless the plaintiff furnishes bond or security deemed sufficient by the court to indemnify the depository or custodian against loss caused by the opening of the box.

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RULE 3112

RULES OF CIVIL PROCEDURE

(2)   each account in which funds on deposit exceed $10,000 at any time if all funds are deposited electronically on a recurring basis and are identified as being funds that upon deposit are ecempt from execution, levy or attachment under Pennsylvania or Federal law, and (3)  the funds on deposit, not including any otherwise exempt funds, that do not exceed the amount of the general monetary exemption under 42 Pa.C.S. § 8123. The plaintiff shall have the right to file an objection if the plaintiff believes that the defendant has exhausted the statutory exemption.

RULE 3112.  SERVICE OF THE WRIT UPON GARNISHEE; REAL PROPERTY OF DEFENDANT IN NAME OF THIRD PARTY. (a)   The sheriff shall execute the writ against real property of the defendant, title to which is recorded in the name of a third party, by serving the third party as garnishee and noting upon the writ a description of the real property and a statement that the sheriff has levied upon defendant’s interest therein. (b)   The plaintiff shall have the right of service upon the garnishee (1)   in any other county by having the sheriff of the county in which the writ is issued deputize the sheriff of the other county where service may be had, or (2)  outside the state by having any competent adult serve the garnishee personally and file an affidavit thereof in the action. (c)   A garnishee who cannot be served as provided in Rules 3111(a) or 3112(b) shall be served by (1) posting a copy of the writ on a public part of the property and (2) handing a copy of the writ to the person in actual possession of the property or, if no one is in actual possession, by sending the garnishee a copy of the writ together with an inventory of the property attached, by registered mail directed to the garnishee’s last known address or, if no address is known and an affidavit to that effect is filed, by publication in such manner as the court by special order shall direct. Official Note: Registered mail includes certified mail. See Definition Rule 76. The remedies available under the Pennsylvania Uniform Fraudulent Transfer Act, 12 Pa.C.S. § 5107, are not suspended by these rules.

RULE 3113.  SERVICE UPON GARNISHEE; EXECUTION AGAINST MORTGAGES, JUDGMENTS OR OTHER LIENS ON REAL PROPERTY. In execution against a lien upon real property created under a mortgage, judgment or otherwise, if the garnishee cannot be served as provided in Rule 3111(a), service shall be made in the manner provided by Rule 3112. Official Note: The real owner of the property which is subject to the mortgage, judgment or other lien is considered a garnishee. See rule 3101(b)(5).

RULE 3114.  SEQUESTRATION OF RENTS, PRINCIPAL, INTEREST, INCOME, ETC. Upon execution against any interest in real property, or a mortgage or lien thereon the court on petition of the plaintiff, may order the sheriff, or a sequestrator appointed by the court, to collect any rent, interest, principal or other sum becoming due to the defendant, to exercise any powers possessed by the defendant as landlord, mortgagee, life tenant, judgment creditor, lien holder, vendor or otherwise, and to account to the court. The court may require a sequestrator’s bond in such amount and upon such terms as it deems proper.

RULE 3115.  WRITS OF SEVERAL PLAINTIFFS; NOTATION OF LEVY. (a)  A levy upon tangible personal property under any valid writ shall be a levy upon said property under every valid writ of any plaintiff against the same defendant then in the hands of the sheriff. The levy shall be noted on each writ.

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Official Note: See Rule 3109(d) authorizing bond or security for the cost of retaining or preserving property levied upon and Rule 3110(d) authorizing bond to indemnify depository upon the forcible opening of a safe deposit box.

RULE 3117.  DISCOVERY IN AID OF EXECUTION.

Official Note: The immunity provisions of Section 5941(b) of the Judicial Code, 42 Pa.C.S. § 5941(b), relating to the judgment debtor remain unsuspended by these rules.

Part IX Ch. 68–72 Condos, etc. Index

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Part VIII Ch. 64–67 L/T

995

Part VII Ch. 57–63 Litigation

(a)   On petition of the plaintiff, after notice and hearing, the court in which a judgment has been entered may, before or after the issuance of a writ of execution, enter an order against any party or person (1)  enjoining the negotiation, transfer, assignment or other disposition of any security, document of title, pawn ticket, instrument, mortgage, or document representing any property interest of the defendant subject to execution; (2)   enjoining the transfer, removal, conveyance, assignment or other disposition of property of the defendant subject to execution; (3)  directing the defendant or any other party or person to take such action as the court may direct to preserve collateral security for property of the defendant levied upon or attached, or any security interest levied upon or attached; (4)   directing the disclosure to the sheriff of the whereabouts of property of the defendant; (5)   directing that property of the defendant which has been removed from the county or concealed for the purpose of avoiding execution shall be delivered to the sheriff or made available for execution; and (6)   granting such other relief as may be deemed necessary and appropriate. (b)  The petition and notice of the hearing shall be served only within the Commonwealth in the manner prescribed by Rule 440 for the service of legal papers other than original process.

Part VI Ch. 49–56 Taxation

RULE 3118.  SUPPLEMENTARY RELIEF IN AID OF EXECUTION.

Part V Ch. 41–48A Zoning, etc.

(b)  All reasonable expenses in connection with the discovery may be taxed against the defendant as costs if it is ascertained by the discovery proceedings that the defendant has property liable to execution.

Part IV Ch. 36–40 Insurance

(a)  Plaintiff at any time after judgment, before or after the issuance of a writ of execution, may, for the purpose of discovery of assets of the defendant, take the testimony of any person, including a defendant or a garnishee, upon oral examination or written interrogatories as provided by the rules relating to Depositions and Discovery. The prothonotary of the county in which judgment has been entered or of the county within this Commonwealth where the deposition is to be taken, shall issue a subpoena to testify.

Part III Ch. 23–35 Mortgages

No bond or security shall be required by the sheriff except as provided by these rules.

Part II Ch. 15–22 Deeds

RULE 3116.  SECURITY FOR SHERIFF.

Part I Ch. 1–14 Brokers

(b)   When tangible personal property has been levied upon and the property remains subject to the levy or the proceeds of the sheriff’s sale thereof remain in the hands of the sheriff, a levy upon the property or proceeds under a later writ against the same defendant may be made by notation of levy upon the later writ. The sheriff shall also make an actual levy if the plaintiff so directs. (c)   The stay of a writ, abandonment of a writ or a levy thereunder, release of property from levy or setting aside of a writ or levy, shall not affect any levy made or proceeding taken under any other writ prior to such action, unless the court otherwise directs.

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PART VII

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RULE 3119

RULES OF CIVIL PROCEDURE

(c)  Violation of the mandate or injunction of the court may be punished as a contempt. Official Note: Service of a writ of execution against a garnishee enjoins the garnishee as provided in Rule 3111 but supplementary aid may be obtained under this rule against any party or person without the necessity of separate proceedings in equity in aid of execution.

RULE 3119.  RELEASE OF PROPERTY FROM LEVY. Upon cause shown, on petition of any person or party in interest, the court may (1)   release specific property from a levy upon the filing of a bond or security approved by the court in an amount based upon the value of the property, or the amount of the judgment, interest, and probable costs, whichever is less, or (2)   release part of the property, if the value of the property levied upon is excessive compared to the amount of the judgment, interest, and probable costs.

RULE 3120.  ABANDONMENT OF LEVY. The sheriff may abandon the levy if (1)   the plaintiff fails to make payment promptly upon demand of the sheriff’s proper fees and costs, or (2)   sale of the property levied upon is not held within six (6) months after levy, unless the proceedings are stayed or the time for sale is extended by the court.

RULE 3121.  STAY OF EXECUTION; SETTING ASIDE EXECUTION. (a)  Execution shall be stayed as to all or any part of the property of the defendant. (1)   upon written direction of the plaintiff to the sheriff: (2)   upon the entry of bond with the prothonotary, by any person or party in interest, with security approved by the prothonotary, in the amount of plaintiff’s judgment, including probable interest and costs, or in such lesser amount as the court may direct, naming the Commonwealth of Pennsylvania as obligee, and conditioned to pay the amount due within ninety (90) days of the entry of bond, unless the time for payment be further extended by the court; (3)   pending disposition of a property claim filed by a third party; (4)   upon a showing of exemption or immunity of property from execution; (5)  upon a showing of a right to a stay under the provisions of an Act of Congress or any Act of Assembly. (b)   Execution may be stayed by the court as to all or any part of the property of the defendant upon its own motion or application of any party in interest showing (1)   a defect in the writ, levy or service; or (2)   any other legal or equitable ground therefor. (c)  In an order staying execution the court may impose such terms and conditions or limit the stay to such reasonable time as it may deem appropriate. Official Note: The defendant may under these rules obtain a stay upon a showing that the net rents or income can satisfy the judgment, interest and costs within a reasonable time, that a stay will not imperil the ultimate collection of the judgment and that in balancing the equities no undue hardship will be inflicted on the plaintiff. The court may in granting stay provide for payment to the plaintiff or may order sequestration of the rents or income.

(d)   The court may on application of any party in interest set aside the writ, service or levy (1)   for a defect therein; (2)   upon a showing of exemption or immunity of property from execution, or (3)   upon any other legal or equitable ground therefor.

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(e)   All objections by the defendant shall be raised at one time.

(f)  After the termination of a stay, sale may be had without reissuance of the writ. When the writ is issued to another county, proceedings for stay shall, at the option of the defendant, be taken in the county from which the writ issued or to which it is directed. Interpleader proceedings and all other proceedings relating to the levy shall be carried on only in the county where the levy is made.

Rule 2959(a)(i) authorizes the defendant in a confessed judgment to petition to open the judgment in the county in which the judgment is entered or in the county of execution.

Part III Ch. 23–35 Mortgages

Official Note: By Rule 3141(b) the garnishee is given a similar option as to the venue of the proceedings.

Part II Ch. 15–22 Deeds

RULE 3122.  VENUE OF STAY AND OTHER PROCEEDINGS.

Part I Ch. 1–14 Brokers

Official Note: The garnishee may however raise the defenses of exemption or immunity of property from execution by preliminary objection or in answers to interrogatories. See Rules 3142(a) and (c) and 3145(b).

RULE 3123.  DEBTOR’S EXEMPTION. Part IV Ch. 36–40 Insurance

(a)   A defendant entitled to a statutory exemption may claim it in kind or in cash at any time before the date of sale by notifying the sheriff of his or her claim and, if the exemption is claimed in kind, by designating the property which he or she elects to retain as exempt. Failure of the defendant to claim the statutory exemption shall not constitute a waiver thereof. Official Note: See Mayhugh v. Coon, 460 Pa. 128, 331 A.2d 452 (1975).

Index

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Part IX Ch. 68–72 Condos, etc.

997

Part VIII Ch. 64–67 L/T

(a)   A defendant may claim exemption or immunity of property from levy or attachment by filing with the sheriff a claim substantially in the form provided by Rule 3252(a). The defendant may include in the claim a demand for a prompt hearing. The sheriff shall immediately notify the plaintiff and garnishee of the filing of the claim. (b)   The sheriff shall immediately present the matter to the court. The court shall hear the claim within five business days thereafter upon such notice to the parties as the court shall direct and shall promptly dispose of the matter on the testimony, admissions or other evidence. (c)  Judgment may not be entered against the garnishee pursuant to Rule 3146(b) until the expiration of twenty days from the date of service of the writ

Part VII Ch. 57–63 Litigation

RULE 3123.1.  CLAIM FOR EXEMPTION OR IMMUNITY OF PROPERTY; PROMPT HEARING.

Part VI Ch. 49–56 Taxation

Official Note: See Rule 3123.1 for the requirement of a prompt court hearing upon a claim for exemption of property from execution.

Part V Ch. 41–48A Zoning, etc.

(b)   Upon receipt of a claim for exemption in kind the sheriff shall set aside, from the designated property, enough thereof as appraised by the sheriff, to equal the value of the exemption, unless the property is incapable of division. In the event of failure of the defendant to claim the statutory exemption, the sheriff shall similarly choose, appraise, and set aside property in kind. Real property claimed shall be described by metes and bounds and the description shall be included in the sheriff’s return. (c)   If the property held by the sheriff in kind cannot be set aside because it is not capable of appropriate division, the sheriff shall set aside from the proceeds of the sale and pay to the defendant in cash the amount of the statutory exemption. (d)   Any party in interest may, within forty-eight hours, appeal to the court from the sheriff’s appraisal or designation of property. The sheriff shall proceed with the sale as to the remainder of the property levied upon unless the sale shall be postponed by order of the court or written direction of the plaintiff.

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RULE 3124

RULES OF CIVIL PROCEDURE

of execution upon the garnishee. If a claim for exemption is pending, judgment pursuant to Rule 3146(b) may be entered only by agreement of the parties or by leave of court. Official Note: Pennsylvania and Federal law provide numerous exemptions of property from execution, including the following: Exemptions under Pennsylvania Law 1. General $300 statutory exemption, 42 Pa.C.S. § 8123. 2. Particular personal property exemption—wearing apparel, bibles and school books, sewing machines, uniforms and equipment, 42 Pa.C.S. § 8124(a). 3. Certain retirement funds and accounts, 42 Pa.C.S. § 8124(b): Public School Employes’ Retirement Fund, 24 Pa.C.S. § 8533 and 42 Pa.C.S. § 8124(b)(1)(i). State Employes’ Retirement Fund, 42 Pa.C.S. § 8124(b)(1)(ii) and 71 Pa.C.S. § 5953. Police Pension Funds, 42 Pa.C.S. § 8124(b)(1)(iii). Philadelphia Pension Fund, 42 Pa.C.S. § 8124(b)(1)(iv). Pittsburgh Pension Fund, 42 Pa.C.S. § 8124(b)(1)(v). Pennsylvania Municipal Retirement Fund, 42 Pa.C.S. § 8124(b)(1)(vi). Private employes’ pensions or annuity funds, 42 Pa.C.S. § 8124(b)(1)(vii). Self-employed retirement or annuity funds, 42 Pa.C.S. § 8124(b)(1)(viii). Retirement or annuity funds provided for under the Internal Revenue Code, 42 Pa.C.S. § 8124(b)(1)(ix). 4. Certain insurance proceeds, 42 Pa.C.S. § 8124(c). Fraternal society benefits, 42 Pa.C.S. § 8124(c)(1),(8). Workmen’s compensation, 42 Pa.C.S. § 8124(c)(2). Group insurance, 42 Pa.C.S. § 8124(c)(5). Life insurance and annuities, 42 Pa.C.S. § 8124(c)(3), (4), (6). Accident and disability insurance, 42 Pa.C.S. § 8124(c)(7). No-fault motor vehicle accident benefits, 42 Pa.C.S. § 8124(c)(9). 5. Personal earnings, subject to the exceptions under 23 Pa.C.S. Pt. IV relating to divorce and for support, board, certain damages arising from a residential lease, and student loan obligations, 42 Pa.C.S. § 8127. 6. Tangible personal property on international exhibition, 42 Pa.C.S. § 8125. 7. Common carrier, property in interstate transit, 42 Pa.C.S. § 8126. 8. Certain veteran benefits. Veterans’ litigation awards (Vietnam herbicide), 51 Pa.C.S. § 7902(a) Sums payable under: the Veterans’ Compensation Act, 51 P. S. § 20012. the World War II Veterans Compensation Act, 51 P. S. § 20048. the Korean Conflict Veterans Compensation Act, 51 P. S. § 20098. the Vietnam Conflict Veterans’ Compensation Act, 51 P. S. § 20127. Exemptions under Federal Law 1. Certain wages and compensation: Longshoremen’s and harborworkers’ compensation, 33 U.S.C. § 916. Injury or death resulting from war-risk hazard, 42 U.S.C. § 1717. 2. Social Security benefits, 42 U.S.C. § 407. 3. Certain retirement funds and accounts: Civil Service, 5 U.S.C. § 8346(a). Foreign Service, 22 U.S.C. § 4060(c). Railroad Retirement, 45 U.S.C. § 231m. Judges’ widows’ annuities, 28 U.S.C. § 376(n). 4. Certain veteran and armed forces benefits: Laws administered by the Veterans Administration, 38 U.S.C. § § 1970 and 5301. Armed Forces Survivor Benefit Plan, 10 U.S.C. § 1450(i). Savings deposited with armed forces, 10 U.S.C. § 1035(d). Medal of Honor Roll Special Pension, 38 U.S.C. § 1562(c). 5. Miscellaneous: Property of a foreign state, 28 U.S.C. § § 1609, 1611. Rail Fund, 45 U.S.C. § 822(e).

RULE 3124.  ORDER OF SALE. Real or personal property sufficient in amount to satisfy the judgment, interest and probable costs, may be sold in any order or simultaneously as the plaintiff may direct.

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Ch. 57.10

When perishable property is levied upon or attached, the court may make such order relating to its preservation, sale or disposition as it shall deem proper.

RULE 3126.  SALE OF INVENTORY IN COURSE OF TRADE.

RULE 3128.  NOTICE OF SALE; PERSONAL PROPERTY.

[Rescinded].

RULE 3129.1.  SALE OF REAL PROPERTY. NOTICE. AFFIDAVIT. (a)   No sale of real property upon a writ of execution shall be held until the plaintiff has filed with the sheriff the affidavit required by subdivision (b) and the notice required by Rule 3129.2 has been served.

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Index

999

Part IX Ch. 68–72 Condos, etc.

Official Note: Notice of the execution sale of real property is governed by Rules 3129.1, 3129.2 and 3129.3.

Part VIII Ch. 64–67 L/T

RULE 3129.  NOTICE OF SALE; REAL PROPERTY.

Part VII Ch. 57–63 Litigation

(c)   If the sale is stayed, or continued or adjourned generally, new notice shall be given as provided by Subdivisions (a) and (b). If the sale is continued or adjourned at the direction of the plaintiff to a date certain within thirty (30) days, and public announcement of the adjournment and new date is made to the bidders assembled at the time and place originally fixed for the sale, no new notice shall be required, but there may be only one such continuance or adjournment to a date certain without new notice. (d)   The court may by local rule or special order require additional notice to the defendant.

Part VI Ch. 49–56 Taxation

Official Note: The time of sale, terms and conditions as to amount of deposit, time for payment of balance, forfeiture of deposit, resales or forfeiture and similar matters are not regulated by these rules and will be governed by local practice in order to permit greater adaptability to the wide variety of local conditions and customs.

Part V Ch. 41–48A Zoning, etc.

(a)   Notice of sale of personal property shall be given by the sheriff at least six (6) days prior to sale by handbills posted at the sheriff’s office, the place of sale and the place of levy, if different from the place of sale. (b)  The notice of sale shall include a notice that all claims to the property must be filed with the sheriff before sale and all claims to the proceeds before distribution; that a sheriff’s schedule of distribution will be filed in the sheriff’s office on a date specified by the sheriff, not later than five days after sale; and that distribution will be made in accordance with the schedule unless exceptions are filed within ten days thereafter. No further notice of the filing of the schedule of distribution need be given.

Part IV Ch. 36–40 Insurance

The sheriff, after having levied upon or attached any personal property, may enter the place or building in which the goods are contained either peaceably or by breaking in by force, for the purpose of taking manual possession of or selling the property levied upon or attached. No bond shall be required of the plaintiff by the sheriff.

Part III Ch. 23–35 Mortgages

RULE 3127.  RIGHT OF SHERIFF TO BREAK AND ENTER.

Part II Ch. 15–22 Deeds

Merchandise, inventory, or stock in trade of a defendant engaged in trade or business may, after levy, be sold by the defendant for cash in the ordinary course of trade or business if the plaintiff shall consent by writing directed to the sheriff. If the sheriff holds writs of more than one plaintiff against the defendant, all the plaintiffs must consent in writing to the sale. The sale shall be under the supervision of the sheriff. The proceeds of sale shall be immediately collected by or delivered to the sheriff until all writs held by the sheriff against the defendant are satisfied. Any plaintiff may withdraw his or her consent at any time.

Part I Ch. 1–14 Brokers

RULE 3125.  PERISHABLE PROPERTY; SALE, PRESERVATION, OR OTHER DISPOSITION.

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RULE 3129.1 RULES OF CIVIL PROCEDURE (b)  The affidavit shall set forth to the best of the affiant’s knowledge or information and belief as of the date the praecipe for the writ of execution was filed the name and address or whereabouts of (1)   the owner or reputed owner of the real property and of the defendant in the judgment; and (2)   every other person who has any record lien on that property; and (3)   every other person who has any record interest in that property which may be affected by the sale; and (4)   every other person who has any interest in that property not of record which may be affected by the sale and of which the plaintiff has knowledge. If the name and address or whereabouts of the persons in subparagraphs (1) through (4) cannot be reasonably ascertained, the affidavit shall so state. (c)  The affidavit required by subdivision (b) shall be substantially in the following form: (Caption) AFFIDAVIT PURSUANT TO RULE 3129.1 __________, plaintiff in the above action, sets forth as of the date the praecipe for the writ of execution was filed the following information concerning the real property located at __________: (Describe the real property to be sold or attach a description as an exhibit) 1. Name and address of owner(s) or reputed owner(s): Name Address (if address cannot be reasonably ascertained, please so indicate) ____________________________________ ____________________________________ ____________________________________ ____________________________________ ____________________________________ ____________________________________ 2. Name and address of defendant(s) in the judgment: Name Address (if address cannot be reasonably ascertained, please so indicate) ____________________________________ ____________________________________ ____________________________________ ____________________________________ ____________________________________ ____________________________________ 3. N  ame and address of every judgment creditor whose judgment is a record lien on the real property to be sold: Name Address (if address cannot be reasonably ascertained, please so indicate) ____________________________________ ____________________________________ ____________________________________ ____________________________________ ____________________________________ ____________________________________ 4. Name and address of the last recorded holder of every mortgage of record: Name Address (if address cannot be reasonably ascertained, please so indicate) ____________________________________ ____________________________________ ____________________________________ ____________________________________ ____________________________________ ____________________________________

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Index

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Part IX Ch. 68–72 Condos, etc.

1001

Part VIII Ch. 64–67 L/T

(b)   The handbills shall be posted by the sheriff in the sheriff’s office and upon the property at least thirty days before the sale, and shall include (1)   a brief description of the property to be sold, its location, any improvements, the judgment of the court on which the sale is being held, the name of the owner or reputed owner, and the time and place of sale, and (2)   a notice directed to all parties in interest and claimants that a schedule of distribution will be filed by the sheriff on a date specified by the sheriff not later than thirty days after the sale and that distribution will be made in accordance with the schedule unless exceptions are filed thereto within ten days after the filing of the schedule.

Part VII Ch. 57–63 Litigation

Official Note: Where real estate subject to federal liens is sold in execution under a judgment by confession, see the provisions of the Federal Tax Lien Act of 1966 adding sec. 7425(c) to the Internal Revenue Code, 26 U.S.C.A. § 7425(c), providing for notice to the United States. As to judgments entered after December 1, 1973, see Rule 236 requiring notice of entry by the prothonotary.

Part VI Ch. 49–56 Taxation

(a)   Notice of the sale of real property shall be given by handbills as provided by subdivision (b), by written notice as provided by subdivision (c) to all persons whose names and addresses are set forth in the affidavit required by Rule 3129.1, and by publication as provided by subdivision (d).

Part V Ch. 41–48A Zoning, etc.

RULE 3129.2.  NOTICE OF SALE; HANDBILLS; WRITTEN NOTICE; PUBLICATION.

Part IV Ch. 36–40 Insurance

(Attach separate sheet if more space is needed) I verify that the statements made in this affidavit are true and correct to the best of my personal knowledge or information and belief. I understand that false statements herein are made subject to the penalties of 18 Pa.C.S. § 4904 relating to unsworn falsification to authorities. ____________________ Date __________________________________________________________ ___________________________ plaintiff

Part III Ch. 23–35 Mortgages

7. Name and address of every other person of whom the plaintiff has knowledge who has any interest in the property which may be affected by the sale: Name Address (if address cannot be reasonably ascertained, please so indicate) ____________________________________ ____________________________________ ____________________________________ ____________________________________ ____________________________________ ____________________________________

Part II Ch. 15–22 Deeds

6. N  ame and address of every other person who has any record interest in the property and whose interest may be affected by the sale: Name Address (if address cannot be reasonably ascertained, please so indicate) ____________________________________ ____________________________________ ____________________________________ ____________________________________ ____________________________________ ____________________________________

Part I Ch. 1–14 Brokers

5. N  ame and address of every other person who has any record lien on their property: Name Address (if address cannot be reasonably ascertained, please so indicate) ____________________________________ ____________________________________ ____________________________________ ____________________________________ ____________________________________ ____________________________________

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RULE 3129.3 RULES OF CIVIL PROCEDURE (c)   The written notice shall be prepared by the plaintiff, shall contain the same information as the handbills or may consist of the handbill and shall be served at least thirty days before the sale on all persons whose names and addresses are set forth in the affidavit required by Rule 3129.1. (1)   Service of the notice shall be made (i)   upon a defendant in the judgment who has not entered an appearance and upon the owner of the property. (A)   by the sheriff or by a competent adult in the manner prescribed by Rule 402(a) for the service of original process upon a defendant, or Note: See Rule 76 for the definition of “competent adult.”

(B)   by the plaintiff mailing a copy in the manner prescribed by Rule 403 to the addresses set forth in the affidavit; or (C)   of service cannot be made as provided in subparagraph (A) or (B), the notice shall be served pursuant to special order of court as prescribed by Rule 430, except that if original process was served pursuant to a special order of court under Rule 430 upon the defendant in the judgment, the notice may be served upon that defendant in the manner provided by the order for service of original process without further application to the court; and (ii)   upon the defendant in the judgment who has entered an appearance, by the plaintiff in the manner provided by Rule 440, and (iii)  upon each other person named in the affidavit by the plaintiff by ordinary mail at the address set forth in the affidavit with the return address of the plaintiff appearing thereon. The plaintiff shall obtain from the U.S. Postal Service a Form 3817 Certificate of Mailing. Service shall be complete upon mailing. If the mail is returned the validity of the service shall not be impaired and the sale shall proceed at the time fixed in the notice. (2)   The person serving the notice shall file a return of service as provided by Rule 405. If service is made by mail pursuant to subdivision (c)(1)(iii), the return shall include the certificate of mailing and the letter, if returned. (3)  If service on any person is not made at least thirty days prior to the date of the sale stated in the notice, such notice shall be deemed timely if the sale is stayed, continued, postponed or adjourned in accordance with Rule 3129.3 to a date certain which is at least thirty days after the date of the last required service. Official Note: This rule does not state the effect of a failure to give the required notice. See In re Tax Claim Bureau of Lehigh County 1981 Upset Tax Sale Properties: Appeal of Dian K. Hass, 96 Pa. Commw. 452, 507 A.2d 1294 (1986), involving the failure to give notice of a tax sale.

(d)  Notice containing the information required by subdivision (b) shall also be given by publication by the sheriff once a week for three successive weeks in one newspaper of general circulation in the county and in the legal publication, if any, designated by rule of court for publication of notices, the first publication to be made not less than twenty-one days before the date of sale. No additional publication shall be required. Official Note: See Note to Rule 3128 as to time, terms and conditions of sale. See also Rule 3131 as to advertisement where a parcel of real property extends across county lines.

RULE 3129.3.  POSTPONEMENT OF SALE. NEW NOTICE. FAILURE OF PLAINTIFF TO ATTEND SALE. (a)   Except as provided by subdivision (b) or special order of court, new notice shall be given as provided by Rule 3129.2 if a sale of real property is stayed, continued, postponed or adjourned. (b)(1)   If the sale is stayed, continued, postponed or adjourned to a date certain within one hundred thirty days of the scheduled sale, notice of which sale was

1002

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Part IX Ch. 68–72 Condos, etc. Index

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Part VIII Ch. 64–67 L/T

1003

Part VII Ch. 57–63 Litigation

On this date, I filed with the Prothonotary of _________________________ County a copy of the Notice of the Date of Continued Sheriff’s Sale in the above-captioned matter. Date: __________ By ________________________________ (Attorney for Plaintiff) _______________________________ (Address) _______________________________ (Phone) (c)  If the plaintiff or a representative of the plaintiff is not present at the sale, the real property shall not be sold. The sheriff shall return the writ of execution to the prothonotary and file a return pursuant to Rule 3139 indicating that the real property was not sold because the plaintiff or a representative of

Part VI Ch. 49–56 Taxation

(Caption) CERTIFICATE OF FILING

Part V Ch. 41–48A Zoning, etc.

The Sheriff’s Sale scheduled for ______________________________, _____________ at ____:____ M. in the above-captioned matter has been continued until __________, at ____:____ M. Date: __________ By ________________________________ (Attorney for Plaintiff) _______________________________ (Address) _______________________________ (Phone) (ii)   The certificate of filing required by subdivision (b)(2) shall be in substantially the following form:

Part IV Ch. 36–40 Insurance

(Caption) NOTICE OF THE DATE OF CONTINUED SHERIFF’S SALE

Part III Ch. 23–35 Mortgages

(3)(i)   The notice required by subdivision (b)(2) shall be substantially in the following form:

Part II Ch. 15–22 Deeds

Official Note: This subdivision supersedes other provisions of these rules limiting the number of times a sale may be continued, including the provisions of subdivision (b)(1).

Part I Ch. 1–14 Brokers

given as provided by Rule 3129.2, and public announcement thereof, including the new date, is made to the bidders assembled at the time and place fixed for the sale, no new notice as provided by Rule 3129.2 shall be required, but there may be only two such stays, continuances, postponements or adjournments within the one hundred thirty day period without new notice. (2)(i)  When the sale is stayed, continued, postponed or adjourned as provided by subdivision (b)(1), the plaintiff shall file (A)   a notice of the date of continued sheriff’s sale with the prothonotary at least fifteen days before the continued sale date, and (B)  a certificate of filing with the sheriff confirming the filing of the notice of the date of continued sheriff’s sale with the prothonotary. The sheriff shall continue the sale to the next available sale date if the notice of the date of continued sheriff’s sale has not been timely filed. This continuance imposes a new obligation on the plaintiff to meet the requirements described in (b)(2)(i)(A) and (B). (ii)   Non-compliance with this subdivision is not a basis for setting aside the sheriff’s sale unless raised prior to the delivery of the sheriff’s deed. The sale shall be set aside only upon a showing of prejudice.

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RULE 3130

RULES OF CIVIL PROCEDURE

the plaintiff was not present at the sale. Thereafter, the writ may be reissued pursuant to Rule 3106.

RULE 3130.  SALE OF SECURITIES. A security listed on any recognized stock exchange or negotiable document of title regularly traded on any recognized commodity exchange may be sold by the sheriff at regular sheriff’s sale or on said stock or commodity exchange through any broker authorized to deal therein. Securities and negotiable documents of title not listed on any recognized stock or commodity exchange but regularly traded over-the-counter by brokers authorized to deal therein, may be sold by the sheriff at regular sheriff’s sale or, after notice to the defendant as the court by local rule or special order may prescribe, through any broker authorized to deal therein, upon such terms and conditions as the court may direct.

RULE 3131.  SALE OF REAL PROPERTY LOCATED IN MORE THAN ONE COUNTY. (a)  Where real property to be sold in execution consists of an interest in a single tract of land which lies in more than one county, the writ shall be directed to the sheriff of one of those counties and the plaintiff shall file a petition with the court of that county for leave to sell the same at execution. (b)   The petition shall set forth (1)   a description of the real property; (2)   whether the property is severable and whether the portion within either county can be sold separately without prejudice to the remainder; and (3)   the estimated value of the property within each county and if the value in any county is insufficient to satisfy the judgment, a statement of how much of the property in adjoining counties is required to be included in the order of sale. (c)  The court may enter judgment upon the pleadings or take evidence by deposition or otherwise, shall order the extent of the real property which shall be subjected to execution, describing it by metes and bounds, shall designate the place of sale, and shall control the distribution of the proceeds of sale. The court may apportion the proceeds so as to satisfy prior lienors, including those having a lien upon a portion of a single tract which lay in a different county and which was not sold on execution. (d)   If the order of the court directs a sale to include land in another county, a copy of the pleadings and the order of the court shall be filed by the plaintiff in the office of the prothonotary of such other county and indexed therein. Notice of the sale shall be advertised in each county.

RULE 3132.  SETTING ASIDE SALE. Upon petition of any party in interest before delivery of the personal property or of the sheriff’s deed to real property, the court may, upon proper cause shown, set aside the sale and order a resale or enter any other order which may be just and proper under the circumstances.

RULE 3133.  LIEN CREDITOR AS PURCHASER. Whenever real or personal property sold on execution is purchased by the plaintiff or any other lien creditor entitled to receive all or part of the proceeds of the sale, the sheriff upon proof of that fact shall accept on account of the purchase price the receipt of the purchaser up to the amount of the proceeds to which the purchaser is entitled. The sheriff may require payment in cash of all legal costs distributable from the proceeds of the sale.

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REAL ESTATE LITIGATION

Ch. 57.10

RULE 3135.  SHERIFF’S DEED TO REAL PROPERTY. CORRECTION OF DEED.

Official Note: See Rule 3136(a) governing the filing of the schedule of distribution.

Part IX Ch. 68–72 Condos, etc. Index

gtb-parealestate22-all.indb 1005

Part VIII Ch. 64–67 L/T

1005

Part VII Ch. 57–63 Litigation

(a)  Not later than thirty days after the sale of real property and not later than five days after the sale of personal property, the sheriff shall prepare a schedule of proposed distribution of the proceeds of sale which shall be filed in the prothonotary’s office. No schedule of distribution or list of liens need be filed when the property is sold to the plaintiff for costs only. (b)   When a receipt of the plaintiff or other lien creditor has been accepted on account of the purchase price the schedule shall set forth the name and address of the plaintiff or lien creditor, the amount of the judgment or lien, identifying it, and the amount of credit claimed and allowed upon the purchase price. (c)   In sales of real property the sheriff shall attach to the schedule a list of liens upon the property sold as certified from the record by the proper officers or a guaranteed search from any title company authorized to do business within the county. The cost of certifying the list of liens or the title search, the

Part VI Ch. 49–56 Taxation

RULE 3136.  DISTRIBUTION OF PROCEEDS.

Part V Ch. 41–48A Zoning, etc.

(b)   If the sheriff has made a defective return of the execution proceeding or has executed a defective deed, including the erroneous description of the real estate, the court upon petition of the purchaser or the purchaser’s successors in title may correct the return or deed or order that a new return or deed be executed. (c)  If the plaintiff has failed to give notice to a lienholder, junior in lien priority to the mortgage being foreclosed upon or the judgment being executed, the plaintiff, or its assigns, or the purchaser at the sheriff’s sale may file a petition with rule to show cause requesting that: (1)   the lien held by the junior lienholder be divested, or (2)  if the plaintiff, or its assigns, is the purchaser at the sheriff’s sale, another sheriff’s sale be held in which only the junior lienholder specified in the petition may be the only bidder allowed other than the senior lienholder who acquired the property at the sheriff’s sale, or (3)   such relief as may be approved by order of court.

Part IV Ch. 36–40 Insurance

(a)   When real property is sold in execution and no petition to set aside the sale has been filed, the sheriff, at the expiration of twenty days but no later than 40 days after either the filing of the schedule of distribution or the execution sale if no schedule of distribution need be filed, shall execute and acknowledge before the prothonotary a deed to the property sold. The sheriff shall forthwith deliver the deed to the appropriate officers for recording and for registry if required. Confirmation of the sale by the court shall not be required.

Part III Ch. 23–35 Mortgages

Official Note: Sections 1114 and 1116 of the Vehicle Code, 75 Pa.C.S. §§ 1114, 1116, relating to transfer of vehicle by operation of law and prescribing the procedure, remain unsuspended by these rules.

Part II Ch. 15–22 Deeds

When selling personal property in execution the sheriff shall, upon request of the purchaser, execute and deliver to the purchaser a sheriff’s bill of sale setting forth the caption of the case and a description of the property. When selling securities or documents of title, the sheriff shall, upon request, endorse said document in the name of the defendant as follows: “Defendant _______________(Name of Defendant) by _______________, Sheriff of _______ County, pursuant to execution upon a judgment against the above named in the Court of _______ County, at Number _______”

Part I Ch. 1–14 Brokers

RULE 3134.  TRANSFER OF PERSONAL PROPERTY TO PURCHASER

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PART VII

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RULE 3137

RULES OF CIVIL PROCEDURE

acknowledgment, recording and registry of the deed and transfer or documentary stamps shall be charged as an expense of distribution. (d)  The sheriff shall distribute the proceeds of sale in accordance with the proposed schedule of distribution, unless written exceptions are filed with the sheriff not later than ten (10) days after the filing of the proposed schedule. (e)  Upon the filing of exceptions, the sheriff shall transmit them to the prothonotary together with a copy of the proposed schedule of distribution. (f)   The court shall determine the exceptions, and for this purpose may receive evidence by deposition or otherwise, or may appoint an auditor to hear the evidence and report to the court. (g)   The proceeds of sale need not be paid into court by the sheriff but upon petition of the sheriff or any party in interest, the court may order the proceeds to be paid into court to await distribution or may order the sheriff to invest the fund for distribution pending final disposition of the exceptions or an appeal therefrom. (h)   If the sheriff receives any money for costs or in connection with a stay, adjournment or postponement of sale or otherwise, the sheriff shall account for it on returning the writ.

RULE 3137.  PRIORITY OF DISTRIBUTION AS BETWEEN COMPETING PLAINTIFFS. (a)   When levies are made against the same personal property under two or more writs of separate plaintiffs, priority of distribution between them of the proceeds of a sheriff’s sale thereof shall be determined by the time of delivery of their respective writs to the sheriff for execution. (b)  When property is attached by service upon the garnishee of two or more writs of separate plaintiffs priority of distribution between them shall be determined by the date of service of their respective writs upon the garnishee as to all property then in the hands of the garnishee or coming into the garnishee’s possession up to time of judgment against the garnishee. (c)   When tangible personal property is both levied upon and attached under two or more writs of separate plaintiffs, priority of distribution as between the levying and attaching plaintiffs shall be determined by the time of delivery of the writ to the sheriff in the case of levy, and from the date of service of the writ upon the garnishee in the case of attachment. Official Note: Under Rule 3115(a), a levy under any valid writ constitutes a levy by endorsement under every other valid writ then in the sheriff’s hands. For limitations on attachment of tangible personal property see Rule 3108(a).

RULE 3138.  SHERIFF’S EXPENSES AND FEES; RECOVERY AS COSTS; ABANDONMENT OF WRIT FOR NONPAYMENT. (a)  The plaintiff shall pay to the sheriff all costs, charges, and expenses incident to the execution, the maintenance of the lien of the execution and the pres-ervation of the property. These items shall be deemed taxable costs for refund to the plaintiff from the proceeds of any sale, except that the plaintiff shall not be entitled to recover the costs in connection with writs determined by the court to be unnecessary and oppressive. (b)  If the plaintiff fails to make payment promptly upon demand of the sheriff’s proper fees and costs, the sheriff shall be relieved of liability for loss, removal or distribution of the property and may return the writ as abandoned.

RULE 3139.  SHERIFF’S RETURN. (a)   The sheriff shall make a return (1)   upon the completion or abandonment of the execution proceedings or if no sale is effected for want of buyers; or

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REAL ESTATE LITIGATION

Ch. 57.10

RULE 3140.  NOTICE BY GARNISHEE.

Part IV Ch. 36–40 Insurance

(a)   Upon being served with the writ, the garnishee shall promptly forward a copy to the defendant. (b)  Upon filing his answers to interrogatories the garnishee shall promptly forward a copy to the defendant. (c)   A copy is forwarded within the requirement of this rule when it is delivered to the defendant by an adult at any place within or without the Commonwealth in the manner prescribed by Rule 402(a) for service of original process or when it is mailed to the defendant by registered mail directed to his last known address.

Part III Ch. 23–35 Mortgages

(c)   The return of the sheriff shall be made to the prothonotary of the county in which the writ issued and shall include any schedule of distribution required under these rules. (d)   If real property is sold by the sheriff under a writ of execution from another county, a copy of the sheriff’s return shall also be filed by the sheriff with the prothonotary of the county in which the real property is located.

Part II Ch. 15–22 Deeds

Official Note: If service or levy has been made within the 90 day period allowed by Rule 3106(d), the writ remains valid for all subsequent proceedings thereafter without further reissuance.

Part I Ch. 1–14 Brokers

(2)   upon the expiration of the period allowed for service or levy, if service upon a garnishee or levy has not been made and the writ has not been reissued. (b)  The sheriff shall make an immediate return of service upon serving a garnishee, but may retain the writ for further proceedings.

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PART VII

Official Note: Registered mail includes certified mail. See Definition Rule 76.

Official Note: See Rule 3142 authorizing preliminary objections; Rule 3121 as to stay; Rule 3143(f), (g), (h), as to non pros; Rule 3145 as to defenses. Failure to answer interrogatories or to file a sufficient answer may result in judgment against the garnishee. See Rules 3146 and 3147.

(a)  The defenses of immunity or exemption of property from attachment or a question of jurisdiction over the garnishee may be raised by preliminary objections filed by the defendant or the garnishee.

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Index

1007

Part IX Ch. 68–72 Condos, etc.

RULE 3142.  PRELIMINARY OBJECTIONS.

Part VIII Ch. 64–67 L/T

(b)  When the writ is issued to another county, preliminary objections, proceedings for stay, or release of property from attachment, answers to interrogatories, or other matters relating to the attachment, may at the option of the garnishee be filed or taken by the garnishee in the county to which the writ is directed or from which it issued. If filed or taken in the county to which the writ is directed, copies thereof and any order of the court thereon shall also be forwarded to the prothonotary of the county in which the writ issued, and to the plaintiff and the defendant or their attorneys, and shall contain or have attached an election of optional venue in the garnishee county. A copy is forwarded within the meaning of this rule if it is sent in the manner provided by Rule 3140(c).

Part VII Ch. 57–63 Litigation

(a)   Except as provided in Rule 3111.1 a garnishee who forwards copies of the writ and answers to interrogatories to the defendant shall thereafter be under no duty to resist the attachment or defend the action against the defendant in any manner but may do so as provided by these rules.

Part VI Ch. 49–56 Taxation

RULE 3141.  GARNISHEE’S DUTY TO DEFEND; VENUE OF PROCEEDINGS.

Part V Ch. 41–48A Zoning, etc.

Attachment of wages, salary and commissions to satisfy a money judgment arising from a residential lease pursuant to Section 8127(a)(3.1) of the Judicial Code is governed by Rule 3301 et seq. (d)   Where funds in an account are not attached as a result of Rule 3111.1, the garnishee shall not assess any fee against exempt funds contained in any account held by the garnishee.

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RULE 3143

RULES OF CIVIL PROCEDURE

Official Note: See also Rule 3145(b) authorizing the garnishee to raise the defenses of immunity or exemption by answer to interrogatories and Rule 3121(d) authorizing the court, on application of any party in interest, to set aside the writ, service or levy upon a showing of exemption or immunity of property from execution or upon any other legal or equitable grounds therefor.

(b)  Preliminary objections shall state specifically the grounds relied upon. All preliminary objections shall be raised at one time. They may be inconsistent. (c)  A question of jurisdiction may be raised only by preliminary objections which shall be filed before the garnishee enters an appearance or files an answer to interrogatories. Exemption or immunity of property from execution may be raised at any time.

RULE 3143.  DISSOLUTION OF ATTACHMENT; RELEASE OF PROPERTY; BOND. (a)   An attachment is not dissolved by the death or dissolution of a defendant or garnishee. (b)(1)   An attachment is dissolved when any person or party (i)  files with the prothonotary a bond, with security approved by the prothonotary, in the amount of plaintiff’s judgment, including probable interest and costs, or in such lesser amount as the court may direct, naming the Commonwealth of Pennsylvania as obligee, conditioned to pay the plaintiff the amount finally determined to be due by the garnishee or the value of the property whichever is less, or (ii)   deposits with the prothonotary, or with the sheriff for the prothonotary, to be held by the prothonotary or the sheriff upon the same condition as the bond, security in the form of legal tender of the United States in an amount equal to the plaintiff’s judgment, including probable interest and costs, or in such lesser amount as the court may direct. (2)  Upon the filing of the bond or security, the garnishee shall be discharged from further liability for payment under the attachment, but the attachment shall be prosecuted to final judgment for the purpose of determining the amount, if any, due by the garnishee to the defendant or the value of the property attached. (c)   Specific property is released without dissolving the attachment when any person or party gives bond or security, as provided by Subdivision (b) of this rule, in an amount based upon the value of the property to be determined by the court, and conditioned to pay the plaintiff the amount of the final judgment against the defendant or the value of the property released, whichever is less. Official Note: For further remedies available to a third person claiming attached property, see Rules on Intervention, 2326 et seq.; Rules on Interpleader, 2301 et seq., and Rules on Sheriff’s Interpleader, 3201 et seq.

(d)  The court on petition of any party may, at any time after notice and hearing, release part of the attached property if the value of the property attached is excessive compared to the amount in controversy. (e)   If the attachment is dissolved or property is released, the property shall be returned to the person from whom it was taken. (f)   The prothonotary, on praecipe of the garnishee or defendant, shall enter a rule on the plaintiff to file interrogatories. If the plaintiff fails to comply with the rule within twenty days after service, the prothonotary, upon praecipe of the garnishee, shall enter judgment of non pros against the plaintiff and in favor of the garnishee, which shall dissolve the attachment as to the garnishee. (g)   At any time after the filing of answers to the interrogatories and service of a copy upon the plaintiff, the prothonotary, on praecipe of the garnishee, shall enter a rule on the plaintiff to (1) seek judgment against the garnishee under

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Ch. 57.10

Official Note: See Rule 3101 defining property in possession of garnishee.

(b)   The interrogatories shall contain a notice to answer within twenty days after service.

RULE 3145.  INTERROGATORIES; PROCEDURE.

(3)   any claim which the garnishee could assert against the plaintiff if sued by the plaintiff.

Index

gtb-parealestate22-all.indb 1009

Part IX Ch. 68–72 Condos, etc.

1009

Part VIII Ch. 64–67 L/T

(a)(1)   If the garnishee within the time allowed by these rules fails to file an answer to interrogatories containing a notice to answer, the prothonotary on praecipe of the plaintiff shall enter judgment unliquidated in amount, in favor of the plaintiff and against the garnishee. The amount of the judgment shall thereafter be assessed by the court on motion, notice to the garnishee with a copy to the defendant in the form provided by subdivision (a)(2), and hearing. At the hearing the garnishee may raise defenses against the judgment debtor available under Rule 3145, provided that written notice thereof has been given to all parties not less than ten days prior to the hearing. If the garnishee appears, the court shall determine and enter judgment for the value of the property of the defendant in the hands of the garnishee but shall not enter judgment in excess of the judgment of the plaintiff against the defendant together with interest and costs. If the garnishee fails to appear, or if appearing offers no evidence, the amount of the judgment shall thereupon be entered in the amount of the plaintiff’s judgment against the defendant together with interest and costs, and the court may also award to the plaintiff reasonable expenses including attorney’s fees.

Part VII Ch. 57–63 Litigation

RULE 3146.  JUDGMENT AGAINST GARNISHEE UPON DEFAULT OR ADMISSION IN ANSWER TO INTERROGATORIES.

Part VI Ch. 49–56 Taxation

Official Note: Objections to the attachment, other than the defenses of immunity or exemption, must be raised preliminarily. See Rule 3142.

Part V Ch. 41–48A Zoning, etc.

(a)  The procedure between the plaintiff and the garnishee shall, as far as practicable, be the same as though the interrogatories were a complaint and the answer of the garnishee were an answer in a civil action. (b)   The garnishee in the answer under “new matter” may include (1)   the defenses of the immunity or exemption of property; (2)   any defense or counterclaim which the garnishee could assert against the defendant if sued by the defendant but the garnishee may not assert any defense on behalf of the defendant against the plaintiff or otherwise attack the validity of the attachment;

Part IV Ch. 36–40 Insurance

Official Note: For form of interrogatories, see Rule 3253 infra.

Part III Ch. 23–35 Mortgages

(a)  The plaintiff may, at the time of issuance of the writ or thereafter, file and serve interrogatories directed to the garnishee respecting property of the defendant in the garnishee’s possession. The plaintiff in the interrogatories may require the garnishee to include in the answer, so far as relevant, the names and addresses of persons taking part in any transaction, the specific amount of any debt, the value and location of any property and the nature and amount of consideration given for any transfer of property.

Part II Ch. 15–22 Deeds

RULE 3144.  INTERROGATORIES TO GARNISHEE.

Part I Ch. 1–14 Brokers

Rule 3146(b) or (2) place the issue between the plaintiff and garnishee upon the list for trial. If the plaintiff fails to comply with the rule within twenty days after service, the prothonotary, on praecipe of the garnishee, shall enter judgment of non pros against the plaintiff in favor of the garnishee, which shall dissolve the attachment as to the garnishee. (h)   The court on petition of any party may, at any time after notice and hearing, dissolve the attachment if the plaintiff has not prosecuted it with diligence.

Table of Contents

PART VII

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RULE 3147

RULES OF CIVIL PROCEDURE

(2)  The notice required by subdivision (a)(1) shall be in substantially the following form: NOTICE OF ASSESSMENT OF DAMAGES To ________________________, Garnishee: On ____________________, you were served with a writ of execution as a garnishee and were notified of your duties under it. Judgment has been entered against you because you have failed to answer the interrogatories served with the writ. The court will assess the amount of the judgment at a hearing to be held on ____________________, at ______, ___.M., in Courtroom ______, ____________ County Courthouse, ____________, Pa. If you fail to appear, damages will be assessed against you in the amount of the judgment of the plaintiff against the defendant, $__________, together with interest, costs and reasonable expenses including attorney’s fees, whether or not you may owe anything to the defendant or hold any of the defendant’s property. YOU SHOULD TAKE THIS PAPER TO YOUR LAWYER AT ONCE. IF YOU DO NOT HAVE A LAWYER, GO TO OR TELEPHONE THE OFFICE SET FORTH BELOW. THIS OFFICE CAN PROVIDE YOU WITH INFORMATION ABOUT HIRING A LAWYER. IF YOU CANNOT AFFORD TO HIRE A LAWYER, THIS OFFICE MAY BE ABLE TO PROVIDE YOU WITH INFORMATION ABOUT AGENCIES THAT MAY OFFER LEGAL SERVICES TO ELIGIBLE PERSONS AT A REDUCED FEE OR NO FEE. ____________________________ (Name) ____________________________ (Address) ____________________________ (Telephone Number) (b)(1)   Subject to paragraph (2) of this subdivision, the prothonotary, on praecipe of the plaintiff, shall enter judgment against the garnishee for the property of the defendant admitted in the answer to interrogatories to be in the garnishee’s possession, subject to any right therein claimed by the garnishee, but no money judgment entered against the garnishee shall exceed the amount of the judgment of the plaintiff against the defendant together with interest and costs. The entry of judgment shall not bar the right of the plaintiff to proceed against the garnishee as to any further property or to contest any right in the property claimed by the garnishee. (2)   If the garnishee is a bank or other financial institution, the prothonotary, in the absence of an order of court, shall not enter judgment pursuant to paragraph (1) of this subdivision as to funds of any account of the defendant that is identified in the garnishee’s answer to interrogatory no. 7 or 8.

RULE 3147.  JUDGMENT AGAINST GARNISHEE ON PLEADINGS OR AFTER TRIAL. If the court enters judgment for the plaintiff and against the garnishee upon pleadings or after trial, the judgment shall be for the property of the defendant found to be in the garnishee’s possession, but no money judgment entered against the garnishee shall exceed the amount of the judgment of the plaintiff against the defendant together with interest and costs.

RULE 3148.  CONTENT OF JUDGMENT AGAINST GARNISHEE; EXECUTION. (a)   A judgment entered against the garnishee under Rules 3146(b) or 3147, shall (1)   be in the form of a money judgment if the garnishee owes a debt to the defendant;

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Ch. 57.10

Official Note: This Act provides for landlord’s priority for rent under execution sale against tenant.

Official Note: This section of the First Class Township Code provides for a special levy to pay debts.

(4)   Section 3205 of the Act of May 1, 1933, P.L. 103, No. 69, as amended, 53 P.S. § 68205.

(5)   Section 712 of the Act of May 15, 1933, P.L. 565, as amended, 71 P.S. § 733-712. Official Note: This section requires leave of court for execution against a financial institution of which the Secretary of Banking is in possession as receiver.

Part IX Ch. 68–72 Condos, etc.

Official Note: Subdivision (b) of this section of the Second Class Township Code provides for a special levy to pay debts.

Part VIII Ch. 64–67 L/T

(3)  Section 1711 of the Act of June 24, 1931, P.L. 1206, as amended, 53 P.S. § 56711.

Part VII Ch. 57–63 Litigation

(2)   Section 1 of the Act approved May 7, 1929, P.L. 1589, as amended, 68 P.S. § 322.

Part VI Ch. 49–56 Taxation

Official Note: This Section of the Workmen’s Compensation Act provides that execution may issue on a workmen’s compensation judgment upon first filing with the prothonotary an affidavit of default in payments.

Part V Ch. 41–48A Zoning, etc.

(a)   The following Acts of Assembly shall not be deemed suspended or affected: (1)  Section 428 of the Act approved June 2, 1915, P.L. 736, as amended, 77 P.S. § 951.

Part IV Ch. 36–40 Insurance

RULE 3159.  ACTS OF ASSEMBLY NOT SUSPENDED

Part III Ch. 23–35 Mortgages

The court on the petition of any person or party may at any time after notice and hearing (1)   review the action of the prothonotary or sheriff in approving or rejecting any bond or security offered; (2)   increase or decrease the amount of any bond or security; (3)   strike off a bond improperly filed; or (4)   permit the substitution of a bond or security and enter exoneration of a prior bond.

Part II Ch. 15–22 Deeds

RULE 3149.  OBJECTION TO SECURITY.

Part I Ch. 1–14 Brokers

(2)  specify any other property of the defendant in the possession of the garnishee; and (3)   be in the form of a charging order in the case of attachment against a partnership interest. (b)   If a money judgment is entered against the garnishee the plaintiff may have execution against the garnishee generally for the amount of the judgment. (c)   If judgment is entered against the garnishee for specific property of the defendant determined to be in the possession of the garnishee, the plaintiff may have execution against the property. If the garnishee fails to make the property available to the sheriff for execution, the plaintiff upon leave of court may have execution against the garnishee generally for the amount of the plaintiff’s judgment against the defendant, together with interest and costs, unless the garnishee shows good cause for nonproduction of the property, or that its value is less than the amount of plaintiff’s judgment, interest and costs, in which event judgment shall be entered for the lesser amount. (d)   If the garnishee is found to have a lien upon the property, the rights of all parties may be enforced by a conditional verdict or order.

Table of Contents

PART VII

(6)   Section 1 of the Act approved May 24, 1933, P.L. 987, 40 P.S. § 117.

gtb-parealestate22-all.indb 1011

Index

1011

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RULE 3159

RULES OF CIVIL PROCEDURE

Official Note: This Section relates to the right of plaintiff to maintain an action against an indemnity insurer upon return of execution unsatisfied against insured.

(7)   Section 21 of the Act approved April 6, 1937, P.L. 200, 63 P.S. § 281-21. Note: This section relates to pawnbrokers’ liens on pledged goods and the prohibition against legal process requiring a pawnbroker to deliver a pledge without surrender of the ticket unless the ticket has been impounded or its negotiation enjoined.

(8)   Section 611 of the Act of March 10, 1949, P.L. 30, as amended, 24 P.S. § 6-611. Official Note: This section of the Public School Code of 1949 provides for the enforcement of judgments against school districts.

(9)   As to boroughs, see the Borough Code of February 1, 1966, P.L. (1965) 1656, No. 581, as amended, 53 P.S. § 46303. Note: This section of the Borough Code provides for a special levy to pay debts.

(10)  Any Act of Assembly providing immunity or exemption of property from execution. Official Note: This Section is intended to preserve the numerous Acts of Assembly providing for immunity or exemption of particular types or classes of property from execution. The practice and procedure as to claiming or waiving exemption or immunity is governed by these rules.

(b)   The following provisions of the Consolidated Statutes shall not be deemed suspended or affected: (1)   Section 5107 of the Pennsylvania Uniform Fraudulent Transfer Act, 12 Pa.C.S. § 5107. Official Note: This section of the Pennsylvania Uniform Fraudulent Transfer Act relates to remedies of creditors.

(2)   The Uniform Commercial Code, 13 Pa.C.S. § 1101 et seq. (3)   Section 8345 of Associations Code, 15 Pa.C.S. § 8345. Official Note: This Section of the Uniform Partnership Act relates to charging orders in execution against partnership interests.

(4)   Section 8563 of the Associations Code, 15 Pa.C.S. § 8563. Official Note: This Section of the Pennsylvania Revised Limited Partnership Act relates to charging orders in execution against limited partnership interests.

(5)   Section 3377 of the Probate, Estates and Fiduciaries Code, 20 Pa.C.S. § 3377. Official Note: This section of the Probate, Estates and Fiduciaries Code provides that execution shall not issue against property of the estate of a decedent upon judgment, other than mortgages, ground rents, pledges or conditional sales of real or personal property, without agreement in writing of the personal representative or approval of the Orphans’ Court.

(6)   Section 2503(2) and (3) of the Judicial Code, 42 Pa.C.S. § 2503(2) and (3). Official Note: These sections relate to the right of a garnishee to receive counsel fees.

(7)   Section 5105(f) of the Judicial Code, 42 Pa.C.S. § 5105(f). Official Note: This Section provides that the reversal or modification of any order of a court in a matter in which the court has jurisdiction of the sale, mortgage, exchange or conveyance of real or personal property shall not impair or divest any estate or interest acquired thereunder by a person not a party to the appeal.

(8)   Section 8151 of the Judicial Code, 42 Pa.C.S. § 8151. Official Note: This section requires officers conducting judicial sales of property to give twenty days notice in writing to the Pennsylvania Department of Revenue.

(9)   Sections 8123(b)(3) and (4) of the Judicial Code, 42 Pa.C.S. §§ 8123(b) (3) and (4). Official Note: These Sections provide that there shall be no exemption of property in executions upon judgments for board for four weeks or less or for wages of $100 or less for manual labor.

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Ch. 57.11

Table of Contents

PART VII

(10)   Section 8127(b) of the Judicial Code, 42 Pa.C.S. § 8127(b).

(11)   Sections 1114 and 1116 of the Vehicle Code, 75 Pa.C.S. §§ 1114, 1116. Official Note: These sections relate to change of ownership by operation of law and the issuance of certificates of title.

Part II Ch. 15–22 Deeds

CHAPTER 57.11 ENFORCEMENT OF JUDGMENT IN ACTION OF EJECTMENT

Part I Ch. 1–14 Brokers

Official Note: This Section prohibits the commencement of actions or transfer of claims for collection outside of the Commonwealth to defeat a claim for exemption.

Part III Ch. 23–35 Mortgages

Rules 3160 to 3165

Rule

Part IV Ch. 36–40 Insurance

  3160.  Judgment. Execution    3161. Conformity to Rules Governing Enforcement of Judgments for Payment of Money   3161.1. Commencement    3162. Stay of Execution. Setting Aside Execution    3163. Possession of Real Property Located in More than One County   3164.  Sheriff’s Return    3165. Reentry by Defendant. New Writ of Possession

RULE 3160.  JUDGMENT. EXECUTION

RULE 3162.  STAY OF EXECUTION. SETTING ASIDE EXECUTION

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Index

(a)  Execution shall be stayed as to all or any part of the property of the defendant

Part IX Ch. 68–72 Condos, etc.

Execution shall be commenced by filing a praecipe for a writ of execution with the prothonotary of any county in which judgment has been entered. Except as otherwise prescribed by Rule 2974.1 governing a judgment entered by confession, the praecipe shall be in the form prescribed by Rule 3254.

Part VIII Ch. 64–67 L/T

RULE 3161.1.  COMMENCEMENT

Part VII Ch. 57–63 Litigation

The procedure for the enforcement of a judgment for possession shall be in accordance with the rules governing the enforcement of judgments for the payment of money with respect to the following: (a)   Commencement and Issuance of Writ:—Rules 3103(e) and 3105. (b)   Substitution, Reissuance and Expiration of Writ:—Rule 3106(a), 3106(b) and 3106(d). (c)   Security for Sheriff:—Rule 3116. (d)   Supplementary Relief in Aid of Execution:—Rule 3118, insofar as applicable. (e)   Sheriff’s Expenses and Fees, Recovery as Costs, Abandonment of Writ for Nonpayment:—Rule 3138.

Part VI Ch. 49–56 Taxation

RULE 3161.  CONFORMITY TO RULES GOVERNING ENFORCEMENT OF JUDGMENTS FOR PAYMENT OF MONEY

Part V Ch. 41–48A Zoning, etc.

A judgment for possession shall be enforced by a writ of possession substantially in the form provided by Rule 3254. If the judgment includes rents, profits or damages, execution for such rents, profits or damages shall be in accordance with the rules governing the enforcement of judgments for the payment of money.

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RULE 3163

RULES OF CIVIL PROCEDURE

(1)   upon written direction of the plaintiff to the sheriff; (2)   upon a showing of exemption or immunity of property from execution; (3)  upon a showing of a right to a stay under the provisions of an Act of Congress or an Act of Assembly. (b)   Execution may be stayed by the court as to all or any part of the property of the defendant upon its own motion or application of any party in interest showing (1)   a defect in the writ or service; or (2)   any other legal or equitable ground. (c)   In an order staying execution the court may impose such terms and conditions or limit the stay to such reasonable time as it may deem appropriate. (d)   The court may on application of any party in interest set aside the writ or service (1)   for a defect therein; or (2)   upon a showing of exemption or immunity of property from execution; or (3)   upon any other legal or equitable ground. (e)   All objections by the defendant shall be raised at one time. (f)   After the termination of a stay, execution may proceed without reissuance of the writ.

RULE 3163.  POSSESSION OF REAL PROPERTY LOCATED IN MORE THAN ONE COUNTY Where the real property consists of a single tract of land which lies in more than one county, the sheriff of the county in which the writ of possession issues may execute the writ in all counties in which the land lies. Deputization of the sheriff of another county shall not be required.

RULE 3164.  SHERIFF’S RETURN The sheriff shall make a return upon completion or abandonment of the execution proceedings.

RULE 3165.  REENTRY BY DEFENDANT. NEW WRIT OF POSSESSION After execution and return of the writ, if the defendant shall reenter into possession, the prothonotary, upon praecipe and affidavit setting forth the facts, filed within three years after the return of the writ on which execution was completed, shall issue a new writ of possession.

CHAPTER 57.12 ENFORCEMENT OF JUDGMENT IN ACTION OF MORTGAGE FORECLOSURE Rules 3180 to 3183

Rule

  3180.  Judgment. Execution    3181. Conformity to Rules Governing Enforcement of Judgments for Payment of Money    3182. Service of Writ. Levy    3183. Stay of Execution. Setting Aside Execution

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Ch. 57.12

Table of Contents

PART VII

RULE 3180.   JUDGMENT. EXECUTION

Note: Where judgment is entered on the obligation secured by the mortgage, execution shall be in accordance with the rules governing the enforcement of judgments for the payment of money.

Part I Ch. 1–14 Brokers

(a)  Judgment shall be enforced by a writ of execution substantially in the form provided by Rule 3257.

(b)   If the plaintiff is proceeding against both personal and real property covered by a mortgage as provided by Section 9604(a) of the Uniform Commercial Code and has complied with the pleading requirements of Rule 1147(b), the judgment may be enforced in one execution proceeding against both the personal and real property pursuant to the rules of this chapter governing execution on real property.

Part II Ch. 15–22 Deeds

Note: Compliance with Rule 1147(b) governing the complaint in mortgage foreclosure is a prerequisite to executing in one proceeding pursuant to Rule 3180(b) against both the real and personal property secured by the mortgage.

Part III Ch. 23–35 Mortgages

The rules governing execution on personal property do not apply to an execution on personal property under subdivision (b).

RULE 3181.  CONFORMITY TO RULES GOVERNING ENFORCEMENT OF JUDGMENTS FOR PAYMENT OF MONEY

(5)   Abandonment of Levy:—Rule 3120. (6)   Notice of Sale, Stay, Continuance:—Rule 3129.1 through .3.

(8)   Setting Aside Sale:—Rule 3132. (9)   Lien Creditors as Purchasers:—Rule 3133. (10)   Sheriff’s Deed, Distribution of Proceeds:—Rules 3135 and 3136.

(12)   Sheriff’s Return:—Rules 3139(a)(1), 3139(c) and 3139(d). (b)  The procedure for the enforcement of a judgment against both personal and real property as provided by Rule 3180(b) shall be in accordance with

(2)   Rule 3201 et seq. governing sheriff’s interpleader. Note: Rule 3201 et seq. govern the procedure when tangible personal property levied upon is claimed to be the property of a person other than the defendant in the execution.

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Index

1015

Part IX Ch. 68–72 Condos, etc.

(1)  the rules governing the enforcement of judgments for the payment of money as provided by subdivision (a) and

Part VIII Ch. 64–67 L/T

(11)   Sheriff’s Expenses and Fees, Recovery as Costs, Abandonment of Writ for Nonpayment:—Rule 3138.

Part VII Ch. 57–63 Litigation

(7)   Sale of Mortgaged Property Located in More than One County:—Rule 3131.

Part VI Ch. 49–56 Taxation

(4)  Supplementary Relief in Aid of Execution:—Rule 3118, insofar as applicable.

Part V Ch. 41–48A Zoning, etc.

(a)  The procedure for the enforcement of a judgment against real property shall be in accordance with the rules governing the enforcement of judgments for the payment of money with respect to the following: (1)   Commencement and Issuance of Writ:—Rules 3103(a), 3103(e) and 3105. (2)  Substitution, Reissuance and Expiration of Writ:—Rules 3106(a), 3106(b) and 3106(d). (3)   Security for Sheriff:—Rule 3116.

Part IV Ch. 36–40 Insurance

For a similar provision applicable to the enforcement of a judgment entered on the obligation secured by the mortgage, see Rule 3101.2.

12/22/21 10:45 AM

RULE 3182

RULES OF CIVIL PROCEDURE

RULE 3182.  SERVICE OF WRIT. LEVY Service of the writ shall be made by the sheriff noting upon the writ a brief description of the mortgaged property and a statement that the sheriff has levied upon defendant’s interest therein. Note: Service of the writ upon the mortgagor or real owner is not required but notice of the sale is required by Rule 3129.1.

RULE 3183.  STAY OF EXECUTION. SETTING ASIDE EXECUTION (a)  Execution shall be stayed as to all or any part of the property of the defendant (1)   upon written direction of the plaintiff to the sheriff; (2)   upon a showing of exemption or immunity of property from execution; (3)  upon a showing of a right to a stay under the provisions of an Act of Congress or an Act of Assembly. (b)   Execution may be stayed by the court as to all or any part of the property of the defendant upon its own motion or application of any party in interest showing (1)   a defect in the writ or service; or (2)   any other legal or equitable ground. (c)   In an order staying execution the court may impose such terms and conditions or limit the stay to such reasonable time as it may deem appropriate. (d)   The court may on application of any party in interest set aside the writ or service (1)   for a defect therein; or (2)   upon a showing of exemption or immunity of property from execution; or (3)   upon any other legal or equitable ground. (e)   All objections by the defendant shall be raised at one time. (f)   After the termination of a stay, execution may proceed without reissuance of the writ.

CHAPTER 57.13 ENFORCEMENT OF JUDGMENT IN ACTION UPON MECHANICS LIENS, MUNICIPAL CLAIMS, TAX CLAIMS, & CHARGES OF LAND Rules 3190 and 3191

Rule

  3190.   Judgment. Execution   3191.   Acts of Assembly

RULE 3190.  JUDGMENT. EXECUTION A judgment in rem in an action or proceeding upon a mechanics lien, municipal claim, tax claim or a charge on land shall be enforced against the real property

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Ch. 57.13

RULE 3191.  ACTS OF ASSEMBLY

(1)  Mechanics’ Liens. (i)   Sections 303(c) and 508 of the Act of August 24, 1963, P.L. 1175, No. 497, 49 P.S. §§ 1303(c) and 1508.

(2)   Municipal and Tax Claims. (i)   Section 24 of the Act of May 16, 1923, P.L. 207, as amended, 53 P.S. § 7275. (ii)   Section 27 of the Act of May 16, 1923, P.L. 207, 53 P.S. § 7277. Note: This Section relates to stay upon entry of security and admission of validity of claim.

(iii)   Section 29 of the Act of May 16, 1923, P.L. 207, as amended, 53 P.S. § 7279. (iv)   Section 30 of the Act of May 16, 1923, P.L. 207, 53 P.S. § 7280. Note: This Section relates to execution against quasi public corporations and preference of claims.

(v)   Section 31 of the Act of May 16, 1923, P.L. 207, 53 P.S. § 7281. (vi)  Sections 31.1, 31.2 of the Act of May 16, 1923, P.L. 207, as added and amended, 53 P.S. §§ 7282, 7283. Note: These Sections relate to procedure for selling free and clear of all claims in first class counties and cities.

Note: This Section relates to right of redemption after sale.

(ix)  Sections 4 to 9, inclusive, of the Act of March 1, 1956, P.L. (1955) 1196, 53 P.S. §§ 7287 to 7292, except insofar as § 7 relates to execution, acknowledgement and delivery of sheriff’s deed. Note: These Sections relate to sale of vacant lots in “conservation areas” free and clear of all liens and without any right of redemption.

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Index

1017

Part IX Ch. 68–72 Condos, etc.

(viii)  The Real Estate Tax Sale Law approved July 7, 1947, P.L. 1368, as amended, 72 P.S. § 5860.101 and all other acts authorizing Tax Bureau or Treasurer’s sale on tax liens.

Part VIII Ch. 64–67 L/T

(vii)   Section 32 of the Act of May 16, 1923, P.L. 207, 53 P.S. § 7293, as added and amended.

Part VII Ch. 57–63 Litigation

Note: This Section relates to procedure for selling free and clear of all liens.

Part VI Ch. 49–56 Taxation

Note: This Section relates to upset sale price and discharge of liens.

Part V Ch. 41–48A Zoning, etc.

Note: This Section relates to sequestration of rents.

Part IV Ch. 36–40 Insurance

Note: These sections provide for the loss of the lien when property is conveyed in good faith prior to the filing of a claim and for the priority of a lien.

Part III Ch. 23–35 Mortgages

(a)   The rules governing the enforcement of a judgment in rem in an action or proceeding upon a mechanics’ lien, municipal claim, tax claim or charge on land shall not be deemed to suspend or affect:

Part II Ch. 15–22 Deeds

Note: Statutory procedures relating to enforcement of tax liens by sale under the Real Estate Tax Law of July 7, 1947, P.L. 1368, as amended, 72 P.S. § 5860.101 et seq., and other acts authorizing Treasurer’s sale remain unsuspended. See Rule 3191(a)(2)(viii). Statutory provisions relating to municipal claims and liens remain unsuspended. See Rule 3191(a)(2)(i) through (viii) for provisions including special stay provisions, sequestration of rents, upset price, sale clear of lien and preferences. See Rule 3191(b) for Acts of Assembly suspended insofar as they provide for writs of levari facias and scire facias.

Part I Ch. 1–14 Brokers

subject to the lien, claim or charge in accordance with Rules 3180 to 3183 governing the enforcement of judgments in mortgage foreclosure.

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PART VII

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RULE 3251

RULES OF CIVIL PROCEDURE

(b)  The following Acts of Assembly are suspended in accordance with the provisions of the Constitution of 1968, Article V, Section 10(c): (1)   Section 28 of the Act approved May 16, 1923, P.L. 207, 53 P.S. § 7278. Note: This Section provides for execution upon a judgment by writ of levari facias and specifies the form of the writ and procedure thereon.

(2)   Section 1404 of the Fiscal Code of April 9, 1929, P.L. 343, Art. XIV, 72 P.S. § 1404, only insofar as it may authorize sale of real estate subject to tax liens on writ of scire facias. Note: This Section authorizes writs of scire facias to issue and be prosecuted to judgment and execution on Commonwealth tax liens.

(3)   Section 7 of the Act approved March 1, 1956, P.L. (1955) 1196, 53 P.S. § 7290, insofar as it relates to acknowledgment and delivery of sheriff’s deed. Note: This Section relates to the execution, acknowledgment and delivery of deeds in sale of tax delinquent vacant lots located in blighted “conservation areas”.

CHAPTER 57.14 FORMS Rules 3251 to 3260

Rule

   3251. Praecipe for Writ of Execution. Money Judgments    3252. Writ of Execution—Money Judgments    3253. Interrogatories in Attachment    3254. Praecipe for Writ of Possession    3255. Writ of Possession    3256. Praecipe for Writ. Mortgage Foreclosure    3257. Writ of Execution. Mortgage Foreclosure   3258.  Property Claim   3259.  Sheriff’s Notice    3260. Objection to Sheriff’s Determination

RULE 3251.  PRAECIPE FOR WRIT OF EXECUTION. MONEY JUDGMENTS Except as provided by Rule 2963 governing execution upon a judgment entered by confession, the praecipe for a writ of execution shall be substantially in the following form: (Caption) PRAECIPE FOR WRIT OF EXECUTION To the Prothonotary: Issue writ of execution in the above matter, (1) directed to the sheriff of ________________________ County; (2) against ____________________________________, defendant; and (Name of Defendant) (3) against ____________________________________, garnishee; (Name of Garnishee)

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Part VII Ch. 57–63 Litigation Part VIII Ch. 64–67 L/T Part IX Ch. 68–72 Condos, etc. Index

gtb-parealestate22-all.indb 1019

Part VI Ch. 49–56 Taxation

1019

Part V Ch. 41–48A Zoning, etc.

(Caption) WRIT OF EXECUTION NOTICE This paper is a Writ of Execution. It has been issued because there is a judgment against you. It may cause your property to be held or taken to pay the judgment. You may have legal rights to prevent your property from being taken. A lawyer can advise you more specifically of these rights. If you wish to exercise your rights, you must act promptly. The law provides that certain property cannot be taken. Such property is said to be exempt. There is a debtor’s exemption of $300. There are other exemptions which may be applicable to you. Attached is a summary of some of the major exemptions. You may have other exemptions or other rights. If you have an exemption, you should do the following promptly: (1)   Fill out the attached claim form and demand for a prompt hearing.

Part IV Ch. 36–40 Insurance

(a)   The writ of execution shall include a notice to the defendant, a summary of major exemptions, and a claim for exemption, and shall be substantially in the following form:

Part III Ch. 23–35 Mortgages

RULE 3252.  WRIT OF EXECUTION; MONEY JUDGMENTS.

Part II Ch. 15–22 Deeds

Note: Under paragraph (1) when the writ is directed to the sheriff of another county as authorized by Rule 3103(b), the county should be indicated. Under Rule 3103(c) a writ issued on a transferred judgment may be directed only to the sheriff of the county in which issued. Paragraph (3) above should be completed only if a named garnishee is to be included in the writ. Paragraph (4)(a) should be completed only if entry of the execution in the county of issuance is desired as authorized by Rule 3104(a)(1). When the writ issues to another county entry is required as of course in that county by the prothonotary. See Rule 3104(b). Paragraph (4)(b) should be completed only if real property in the name of a garnishee is attached and entry as a lis pendens is desired. See Rule 3104(c). Certification as to waiver of exemption may be included in the praecipe. Specific directions to the sheriff as to property to be levied upon may be included in the praecipe or by separate direction at the option of plaintiff.

Part I Ch. 1–14 Brokers

(4) and enter this writ in the judgment index (a) against ____________________________________, defendant, and (Name of Defendant) (b) against ____________________________________, as garnishee, as (Name of Garnishee) a lis pendens against real property of the defendant in name of garnishee as follows: _________________________________________________________________ (Specifically describe property) _________________________________________________________________ _________________________________________________________________ (If space insufficient attach extra sheets) (5) Amount due $ __________ Interest from __________ $ __________ Costs to be added $ __________ ___________________________________ Attorney for Plaintiff

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PART VII

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RULE 3252

RULES OF CIVIL PROCEDURE

(2)   Deliver the form or mail it to the Sheriff’s Office at the address noted. You should come to court ready to explain your exemption. If you do not come to court and prove your exemption, you may lose some of your property. YOU SHOULD TAKE THIS PAPER TO YOUR LAWYER AT ONCE. IF YOU DO NOT HAVE A LAWYER, GO TO OR TELEPHONE THE OFFICE SET FORTH BELOW. THIS OFFICE CAN PROVIDE YOU WITH INFORMATION ABOUT HIRING A LAWYER. IF YOU CANNOT AFFORD TO HIRE A LAWYER, THIS OFFICE MAY BE ABLE TO PROVIDE YOU WITH INFORMATION ABOUT AGENCIES THAT MAY OFFER LEGAL SERVICES TO ELIGIBLE PERSONS AT A REDUCED FEE OR NO FEE. ______________________________________ (Name) ______________________________________ (Address) ______________________________________ (Telephone Number) WRIT OF EXECUTION Commonwealth of Pennsylvania County of __________________ To the Sheriff of ____________ County: To satisfy the judgment, interest and costs against __________________________, defendant. (Name of Defendant) (1)   you are directed to levy upon the property of the defendant and to sell the defendant’s interest therein; (2)  you are also directed to attach the property of the defendant not levied upon in the possession of _____________________________________, (Name of Garnishee) as garnishee, ____________________________________, and to notify the garnishee that (Specifically describe property) (a)   an attachment has been issued; (b)   except as provided in paragraph (c), the garnishee is enjoined from paying any debt to or for the account of the defendant and from delivering any property of the defendant or otherwise disposing thereof; (c)   the attachment shall not include (i)  the first $10,000 of each account of the defendant with a bank or other financial institution containing any funds which are deposited electronically on a recurring basis and are identified as being funds that upon deposit are exempt from execution, levy or attachment under Pennsylvania or federal law. (ii)  each account of the defendant with a bank or other financial institution in which funds on deposit exceed $10,000 at any time if all funds are deposited electronically on a recurring basis and are identified as being funds that upon deposit are exempt from execution, levy or attachment under Pennsylvania or federal law. (iii)  any funds in an account of the defendant with a bank or other financial institution that total $300 or less. If multiple accounts are attached, a total of $300 in all accounts shall not be subject to levy and attachment as determined by the executing officer. The funds shall be set aside pursuant to the defendant’s general exemption provided in 42 Pa.C.S. §  8123. (3)  if property of the defendant not levied upon and subject to attachment is found in the possession of anyone other than a named garnishee, you are directed to notify such other person that he or she has been added as a garnishee and is enjoined as above stated.

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Ch. 57.14

$____________ $____________ $____________

Part I Ch. 1–14 Brokers

Amount due Interest from ________ Costs to be added

REAL ESTATE LITIGATION

Part II Ch. 15–22 Deeds

______________________________________ (Name of Prothonotary (Clerk)) Seal of the Court By ___________________________________ (Deputy) MAJOR EXEMPTIONS UNDER PENNSYLVANIA AND FEDERAL LAW $300 statutory exemption. Bibles, school books, sewing machines, uniforms and equipment. Most wages and unemployment compensation. Social Security benefits. Certain retirement funds and accounts. Certain veteran and armed forces benefits. Certain insurance proceeds. Such other exemptions as may be provided by law.

Part III Ch. 23–35 Mortgages Part IV Ch. 36–40 Insurance

1. 2. 3. 4. 5. 6. 7. 8.

Part VII Ch. 57–63 Litigation Part VIII Ch. 64–67 L/T Part IX Ch. 68–72 Condos, etc. Index

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Part VI Ch. 49–56 Taxation

To the Sheriff: I, the above-named defendant, claim exemption of property from levy or attachment: (1)   From my personal property in my possession which has been levied upon, (a)   I desire that my $300 statutory exemption be [ ] (i) set aside in kind (specify property to be set aside in kind): __________________________________________________; [ ] (ii) paid in cash following the sale of the property levied upon; or (b)   I claim the following exemption (specify property and basis of exemption): __________________________________________________________________________. (2)   From my property which is in the possession of a third party, I claim the following exemptions: (a)   my $300 statutory exemption: [ ] in cash; [ ] in kind (specify property): ____ ______________________________________________________________________; (b)   other (specify amount and basis of exemption): ____________________ ______ ____________________________________________________________________. I request a prompt court hearing to determine the exemption. Notice of the hearing should be given to me at ________________________________________________ ________________________________________________, (Address) ____________________________. (Telephone Number) I verify that the statements made in this Claim for Exemption are true and correct. I understand that false statements herein are made subject to the penalties of 18 Pa.C.S. § 4904 relating to unsworn falsification to authorities. Date: ________________ ___________________________________ (Defendant)

Part V Ch. 41–48A Zoning, etc.

(Caption) CLAIM FOR EXEMPTION

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RULE 3253

RULES OF CIVIL PROCEDURE

THIS CLAIM TO BE FILED WITH THE OFFICE OF THE SHERIFF OF _________________ COUNTY: ______________________________________ (Address) ______________________________________ (Telephone Number) Official Note: Under paragraphs (1) and (2) of the writ, a description of specific property to be levied upon or attached may be set forth in the writ or included in a separate direction to the sheriff. Under paragraph (2) of the writ, if attachment of a named garnishee is desired, the garnishee’s name should be set forth in the space provided. Under paragraph (3) of the writ, the sheriff may add as a garnishee any person not named in this writ who may be found in possession of property of the defendant. See Rule 3111(a). For limitations on the power to attach tangible personal property, see Rule 3108(a).

(b)   Each court shall by local rule designate the officer, organization or person to be named in the notice.

RULE 3253.  INTERROGATORIES IN ATTACHMENT Interrogatories of the plaintiff to the garnishee shall be substantially in the following form: (Caption) INTERROGATORIES TO CARNISHEE To ____________________: (Garnishee) You are required to file answers to the following interrogatories within twenty (20) days after service upon you. Failure to do so may result in judgment against you: 1.   At the time you were served or at any subsequent time did you owe the defendant any money or were you liable to the defendant on any negotiable or other written instrument, or did the defendant claim that you owed the defendant any money or were liable to the defendant for any reason? 2.  At the time you were served or at any subsequent time was there in your possession, custody or control or in the joint possession, custody or control of yourself and one or more other persons any property of any nature owned solely or in part by the defendant? 3.  At the time you were served or at any subsequent time did you hold legal title to any property of any nature owned solely or in part by the defendant or in which the defendant held or claimed any interest? 4.   At the time you were served or at any subsequent time did you hold as fiduciary any property in which the defendant had an interest? 5.  At any time before or after you were served did the defendant transfer or deliver any property to you or to any person or place pursuant to your direction or consent and if so what was the consideration therefore? 6.   At any time after you were served did you pay, transfer or deliver any money or property to the defendant or to any person or place pursuant to the defendant’s direction or otherwise discharge any claim of the defendant against you? 7.   If you are a bank or other financial institution, at the time you were served or at any subsequent time did the defendant have funds on deposit in an account in which funds are deposited electronically on a recurring basis and which are identified as being funds that upon deposit are exempt from execution, levy or attachment under Pennsylvania or Federal law? If so, identify each account and

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Part IV Ch. 36–40 Insurance

[Caption] PRAECIPE FOR WRIT OF POSSESSION “To the Prothonotary: “Issue writ of possession in the above matter. “_________________(Attorney for ”)

Part III Ch. 23–35 Mortgages

Except as provided by Rule 2974.1 governing execution upon a judgment in ejectment entered by confession, the praecipe for a writ of possession shall be substantially in the following form:

Part II Ch. 15–22 Deeds

RULE 3254.  PRAECIPE FOR WRIT OF POSSESSION

Part I Ch. 1–14 Brokers

state the amount of funds in each account, and the entity electronically depositing those funds on a recurring basis. 8.   If you are a bank or other financial institution, at the time you were served or at any subsequent time did the defendant have funds on deposit in an account in which the funds on deposit, not including any otherwise exempt funds, did not exceed the amount of the general monetary exemption under 42 Pa.C.S. §  8123? If so, identify each account. (The plaintiff may set forth additional appropriate interrogatories.)

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RULE 3255.  WRIT OF POSSESSION The writ of possession shall be substantially in the following form:

Part V Ch. 41–48A Zoning, etc.

“(1)   To satisfy the judgment for possession in the above matter you are directed to deliver possession of the following described property to ______________: _____ _______________________________ _______(Specifically describe property)

Part VI Ch. 49–56 Taxation

(Caption) WRIT OF POSSESSION Commonwealth of Pennsylvania ) ) County of ) To the Sheriff of _______________ County:

Note: Description of property may be included in, or attached to, the writ.

“__________________________________ (Name of Prothonotary (Clerk)) “__________________________________ (Deputy)” Date ________ Note: If the judgment includes profits or damages, or if attachment execution for costs is desired, the plaintiff may issue a separate writ of execution under Rule 3102.

The praecipe for a writ of execution in an action of mortgage foreclosure shall be substantially in the following form:

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Index

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Part IX Ch. 68–72 Condos, etc.

RULE 3256.  PRAECIPE FOR WRIT. MORTGAGE FORECLOSURE

Part VIII Ch. 64–67 L/T

Seal of the Court

Part VII Ch. 57–63 Litigation

(2)   To satisfy the costs against _______ you are directed to levy upon any property of _______ and sell his or her interest therein.

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RULE 3257

RULES OF CIVIL PROCEDURE [Caption] PRAECIPE FOR WRIT OF EXECUTION (Mortgage Foreclosure)

To the Prothonotary: “Issue writ of execution in the above matter: Amount due

$________

Interest from

$________

[Costs to be added]

$________

“_________________________ Attorney for Plaintiff” Note: Local practice may require that a description of the property be included in the praecipe.

RULE 3257.  WRIT OF EXECUTION. MORTGAGE FORECLOSURE The writ of execution in an action of mortgage foreclosure shall be substantially in the following form: (Caption) WRIT OF EXECUTION Commonwealth of Pennsylvania County of _____________________ To the Sheriff of __________ County: To satisfy the judgment, interest and costs in the above matter you are directed to levy upon and sell the following described property: (1) ______________________________ (Specifically describe real property) (2) ______________________________ (Specifically describe personal property when judgment results from a mortgage covering both personal and real property pursuant to Section 9604(a) of the Uniform Commercial Code) NOTE: Description of property may be included in, or attached to, the writ. Amount due $___ Interest from __________ $___ [Costs to be added] $___ _____________________________ (Name of Prothonotary (Clerk)) _____________________________ (Deputy) Seal of the Court Date __________

RULE 3258.  PROPERTY CLAIM [Caption] To the Sheriff: 1.  The property listed below and levied upon in this case is not the property of the defendant but is the property of the undersigned. A list of the claimed property and the values thereof are:

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List of Property Value Part I Ch. 1–14 Brokers

__________________________________________________________________________ __________________________________________________________________________ 2. The claimant obtained title to the property as follows: __________________________________________________________________________

Part II Ch. 15–22 Deeds

__________________________________________________________________________ Date: _____________________________ ___________________________________ (Claimant)

[Caption] To the Defendant and all other parties in interest:

Date: __________ ___________________________________ By ________________________________ (Deputy)

RULE 3260.  OBJECTION TO SHERIFF’S DETERMINATION

Enter objection to the sheriff’s determination of ownership of the property. Date: _____________________________ ___________________________________

Part VI Ch. 49–56 Taxation

[Caption] TO THE PROTHONOTARY:

Part V Ch. 41–48A Zoning, etc.

(Sheriff of __________ County)

Part IV Ch. 36–40 Insurance

You are hereby notified that a property claim, a copy of which is attached hereto, has been filed by _______(Name) claiming property listed therein. Unless an appraisal of the property is requested within ten (10) days from the date of this notice, the sheriff without making an appraisal will accept the value of the property set forth in the claim.

Part III Ch. 23–35 Mortgages

RULE 3259.  SHERIFF’S NOTICE

(Objector, Attorney or Agent)

Rules 3276 to 3291

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Index

1025

Part IX Ch. 68–72 Condos, etc.

  3276.  Scope   3277.  Definitions    3278. Venue. Supplementary Proceeding   3279.  Commencement. Petition   3280.  Answer   3281.  Parties    3282. Petition. Averments. Notice to Defend   3283.  Service    3284. Order Upon Default or Admission   3285.  Trial   3286.  Rescinded

Part VIII Ch. 64–67 L/T

Rule

Part VII Ch. 57–63 Litigation

CHAPTER 57.15 DEFICIENCY JUDGMENTS

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RULE 3276

RULES OF CIVIL PROCEDURE

  3287.  Parties    3288. Petition. Averments. Notice to Defend   3289.  Service    3290. Order Upon Default or Admission   3291.  Trial

RULE 3276.  SCOPE The rules of this chapter govern proceedings pursuant to Section 8103 of the Judicial Code, 42 Pa.C.S. § 8103, relating to deficiency judgments. Note: Section 8103(a) of the Judicial Code provides for a petition to fix the fair market value of real property sold in execution proceedings where the price for the property sold is not sufficient to satisfy the amount of the judgment, interest and costs and the judgment creditor seeks to collect the balance due. Section 8103(d) provides for a petition to have the judgment marked satisfied, released and discharged when the judgment creditor has not initiated a timely proceeding under Section 8103(a). Rules 3276-3280 are general provisions applicable to both types of petitions. Rules 3281-3286 are special rules applicable to petitions under Section 8103(a) while Rules 3287-3291 apply to petitions under Section 8103(d).

RULE 3277.  DEFINITIONS As used in this chapter, (1)  “prior lien amounts” means the amounts of any prior liens, costs, taxes and municipal claims not discharged by the sale, and the amounts of any such items paid at distribution on the sale; (2)  “special allocations” means the special allocations required by Section 8103(f) of the Judicial Code; Note: Section 8103(f) of the Judicial Code provides for certain special allocations when judgment has been entered with respect to a partial recourse obligation or an obligation of which only a portion is guaranteed.

(3)   the following words shall have the meanings set forth in Section 8103(g) of the Judicial Code: “judgment”, “judgment creditor”, and “nonconsumer judgment creditor”. Note: Section 8103(g) of the Judicial Code contains several definitions relating to deficiency judgments. The words set forth in paragraph (3) are common to both the rules and the Code. “Judgment” is defined by Section 8103(g) as “[t]he judgment which was enforced by the execution proceedings referred to in subsection (a), whether that judgment is a judgment in personam such as a judgment requiring the payment of money or a judgment de terris or in rem such as a judgment entered in an action of mortgage foreclosure or a judgment entered in an action or proceeding upon a mechanic’s lien, a municipal claim, a tax lien or a charge on land.” “Judgment creditor” is defined by Section 8103(g) as “[t]he holder of the judgment which was enforced by the execution proceedings.” “Nonconsumer judgment creditor” is defined by Section 8103(g) as “[a]ny judgment creditor except a judgment creditor whose judgment was entered with respect to a consumer credit transaction.”

RULE 3278.  VENUE. SUPPLEMENTARY PROCEEDING The proceeding shall be brought in the county in which the real property which is sold is located as a supplemental proceeding in the execution proceeding in that county.

RULE 3279.  COMMENCEMENT. PETITION (a)   The proceeding shall be commenced by filing a petition which shall begin with the notice to defend and set forth the averments required by Rule 3282 or Rule 3288. (b)   The petition shall contain a caption setting forth (1)   the docket number of the execution proceedings in which the real property was sold, and

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PART VII

(2)   the names of all petitioners and respondents.

RULE 3281.  PARTIES

RULE 3282.  PETITION. AVERMENTS. NOTICE TO DEFEND

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Index

You have been sued in court. The petition set forth in the following pages requests the court to determine the amount which should be credited against any liability you may have to the petitioner as a result of the purchase by the

Part IX Ch. 68–72 Condos, etc.

To the Respondent(s):

Part VIII Ch. 64–67 L/T

(CAPTION) NOTICE TO DEFEND

Part VII Ch. 57–63 Litigation

(9)   if the petition requests a special allocation, a statement that the judgment creditor is a nonconsumer judgment creditor; (10)   any special allocation required by Section 8103(f) of the Judicial Code, and (11)   a request that the court fix the fair market value of the real property at the value set forth in the petition and that the court determine any prior lien amounts and any special allocation as set forth in the petition. (b)   The petition shall begin with a notice to defend substantially in the following form:

Part VI Ch. 49–56 Taxation

Note: For the definition of prior lien amounts, see Rule 3277.

Part V Ch. 41–48A Zoning, etc.

(a)   The petition shall set forth: (1)   the name and address of the judgment creditor, (2)   the name and last known address of each respondent, (3)   a statement that the petition is filed pursuant to Section 8103(a) of the Judicial Code, (4)   the court and number of the execution proceedings, the original judgment and any judgment obtained by transfer, (5)   the date the property was struck down to the successful bidder and the date the sheriff’s deed was delivered, (6)   a description of the real property and its location, (7)   the fair market value of the real property, (8)  a description of all prior lien amounts if the petitioner desires credit for such amounts,

Part IV Ch. 36–40 Insurance

(a)   The petition shall name the judgment creditor as petitioner. (b)   The petition shall name as respondent any debtor, obligor, guarantor, mortgagor, and any other person directly or indirectly liable to the judgment creditor for the payment of the debt, and any owner of the property affected thereby.

Part III Ch. 23–35 Mortgages

(a)   Except as provided by subdivision (b), an answer to a petition which contains a notice to defend shall be filed within twenty days after service of the petition. (b)   A respondent served outside the United States shall have sixty days from service of the petition within which to file an answer. (c)   The answer to a petition shall be divided into paragraphs, numbered consecutively, corresponding to the numbered paragraphs of the petition.

Part II Ch. 15–22 Deeds

RULE 3280.  ANSWER

Part I Ch. 1–14 Brokers

Note: See Rules 3281 and 3287 governing parties to the proceeding.

(c)   The petition shall be verified and divided into paragraphs numbered consecutively. Each paragraph shall contain as far as practicable only one material allegation.

12/22/21 10:45 AM

RULE 3283

RULES OF CIVIL PROCEDURE

petitioner at an execution sale of the real property described in the petition. If you wish to defend against the petition, you must take action within twenty (20) days after this petition and notice are served upon you, by entering a written appearance personally or by attorney and filing in writing with the court your defenses or objections to the matters set forth in the petition. You are warned that if you fail to do so, the case may proceed without you and a judgment may be entered against you by the court without further notice for any claim or relief requested by the petitioner. You may lose money or property or other rights important to you. YOU SHOULD TAKE THIS PAPER TO YOUR LAWYER AT ONCE. IF YOU DO NOT HAVE A LAWYER, GO TO OR TELEPHONE THE OFFICE SET FORTH BELOW. THIS OFFICE CAN PROVIDE YOU WITH INFORMATION ABOUT HIRING A LAWYER. IF YOU CANNOT AFFORD TO HIRE A LAWYER, THIS OFFICE MAY BE ABLE TO PROVIDE YOU WITH INFORMATION ABOUT AGENCIES THAT MAY OFFER LEGAL SERVICES TO ELIGIBLE PERSONS AT A REDUCED FEE OR NO FEE. ______________________________ (Name) ______________________________ (Address) ______________________________ (Telephone Number) Note: The office shall be designated by the court under Rule 1018.1(c).

RULE 3283.  SERVICE. (a)(1)   If there is an attorney of record, service shall be made upon the respondent’s attorney of record pursuant to Rule 440(a)(1)(i) or (ii). (2)   If there is no attorney of record, service shall be made (i)   by the sheriff or a competent adult in the manner prescribed by Rule 402(a) for service of original process, or Official Note: See Rule 76 for the definition of ‘‘competent adult.’’

(ii)  by the petitioner mailing a copy in the manner prescribed by Rule 403, or (iii)  if service cannot be made as provided in subparagraphs (i) or (ii), pursuant to special order of court as prescribed by Rule 430. (b)   The person serving the petition shall file a return of service as provided by Rule 405.

RULE 3284.  ORDER UPON DEFAULT OR ADMISSION. The prothonotary, on praecipe of the petitioner, shall, without further notice or hearing, enter an order determining the fair market value of the real property to be the value alleged in the petition, determining the prior lien amounts to be in the amounts alleged in the petition and making any special allocation requested by the petition if (1)  no answer is filed within the required time to a petition which was served pursuant to the requirements of Rule 3283 and contains a notice to defend required by Rule 3282(b), and notice has been given as provided by Rule 237.1 et seq., or (2)   an answer is filed which does not deny the allegations in the petition as to the fair market value, the prior lien amounts or any special allocation.

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RULE 3285.  TRIAL

RULE 3286.  RESCINDED AUG. 7, 2001, EFFECTIVE SEPT. 4, 2001 The petition shall name the judgment creditor as a respondent.

RULE 3288.  PETITION. AVERMENTS. NOTICE TO DEFEND

Part VIII Ch. 64–67 L/T Part IX Ch. 68–72 Condos, etc. Index

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Part VII Ch. 57–63 Litigation

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Part VI Ch. 49–56 Taxation

To the Respondent(s): You have been sued in court. The petition set forth in the following pages requests the court to direct the prothonotary to mark the judgment held by you against the petitioner satisfied, released and discharged as a result of your alleged failure to file a timely petition to fix the fair market value of real property purchased directly or indirectly by you at an execution sale. If you wish to defend against the petition, you must take action within twenty (20) days after this petition and notice are served upon you, by entering a written appearance personally or by attorney and filing in writing with the court your defenses or objections to the matters set forth in the petition. You are warned that if you fail to do so, the case may proceed without you and a judgment may be entered against you by the court without further notice for any claim or relief requested by the petitioner. You may lose money or property or other rights important to you. YOU SHOULD TAKE THIS PAPER TO YOUR LAWYER AT ONCE. IF YOU DO NOT HAVE A LAWYER, GO TO OR TELEPHONE THE OFFICE SET FORTH BELOW. THIS OFFICE CAN PROVIDE YOU WITH INFORMATION ABOUT HIRING A LAWYER.

Part V Ch. 41–48A Zoning, etc.

(CAPTION) NOTICE TO DEFEND

Part IV Ch. 36–40 Insurance

(a)   The petition shall set forth: (1)   the name and address of the petitioner, (2)   the name and last known address of each respondent, (3)   a statement that the petition is filed pursuant to Section 8103(d) of the Judicial Code, (4)   the court and number of the execution proceedings, the original judgment and any judgment obtained by transfer, (5)  a statement that the real property was sold, directly or indirectly, to the judgment creditor in the execution proceedings, (6)   the date that the property was sold by the sheriff and the date that the sheriff’s deed was executed and acknowledged, (7)   a statement that no petition under Section 8103(a) of the Judicial Code has been filed within six months after the sale, and (8)   a request that the court direct the prothonotary to mark the judgment satisfied, released and discharged. (b)   The petition shall begin with a notice to defend substantially in the following form:

Part III Ch. 23–35 Mortgages

RULE 3287.  PARTIES

Part II Ch. 15–22 Deeds

Note: Rules 206.4 through 206.7 governing petitions and answers do not apply to a petition subject to these rules.

Part I Ch. 1–14 Brokers

If an answer is filed which denies the allegations in the petition as to the fair market value, the prior lien amounts or the entitlement of the petitioner to any special allocation, the trial shall be limited to such of those issues as are raised by the answer, which shall be heard by a judge sitting without a jury in accordance with Rule 1038.

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RULE 3289

RULES OF CIVIL PROCEDURE

IF YOU CANNOT AFFORD TO HIRE A LAWYER, THIS OFFICE MAY BE ABLE TO PROVIDE YOU WITH INFORMATION ABOUT AGENCIES THAT MAY OFFER LEGAL SERVICES TO ELIGIBLE PERSONS AT A REDUCED FEE OR NO FEE. ______________________________ (Name) ______________________________ (Address) ______________________________ (Telephone Number) Note: The office shall be designated by the court under Rule 1018.1(c).

RULE 3289.  SERVICE (a)   The petition shall be served in the manner provided by Rule 440. (b)   Proof of service shall be as provided by Rule 405.

RULE 3290.  ORDER UPON DEFAULT OR ADMISSION The court shall, without further notice or hearing, enter an order directing the prothonotary to mark the judgment satisfied, released and discharged if (1)   no answer is filed within the required time to a petition which contains a notice to defend and notice has been given as provided by Rule 237.1 et seq., or (2)   an answer is filed which does not deny the allegations in the petition that the judgment creditor has purchased, directly or indirectly, the real property sold in an execution sale on the judgment creditor’s judgment and has failed to file a timely petition to fix the fair market value of the real property under Section 8103(a) of the Judicial Code.

RULE 3291.  TRIAL If an answer is filed which denies the allegations in the petition, the trial shall be by a judge sitting without a jury in accordance with Rule 1038. Note: Rules 206.4 through 206.7 governing petitions and answers do not apply to a petition subject to these rules.

CHAPTER 57.16 ATTACHMENT OF WAGES, SALARY AND COMMISSIONS UNDER SECTION 8127(A)(3.1) OF THE JUDICIAL CODE (Landlord/Tenant) See Chapter 67 Rules 3301 to 3313

Rule

  3301.  Scope. Definitions   3302.  Commencement. Notice    3303. Exemption from Attachment. Procedure    3304. Writ for the Attachment of Wages. Issuance. Service    3311. Praecipe for Notice of Intent to Attach Wages. Form    3312. Notice of Intent to Attach Wages. Claim for Exemption from Wage Attachment. Notice of Claim for Exemption of Wages from Attachment. Forms    3313. Writ of Attachment of Wages. Form

RULE 3301.  SCOPE. DEFINITIONS (a)   The rules of this chapter govern an attachment of wages to satisfy a judgment pursuant to Section 8127(a)(3.1) of the Judicial Code.

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Index

1031

Part IX Ch. 68–72 Condos, etc.

(a)  A defendant claiming an exemption from attachment based upon the federal poverty income guidelines shall file the claim for exemption with the prothonotary within thirty days of service of the Notice of Intent to Attach Wages.

Part VIII Ch. 64–67 L/T

RULE 3303.  EXEMPTION FROM ATTACHMENT. PROCEDURE.

Part VII Ch. 57–63 Litigation

Note: The notice shall be served (1)  by the sheriff in the manner prescribed by Rule 402(a) for the service of original process upon a defendant, or (2)  pursuant to special order of court as prescribed by Rule 430 if service cannot be made as provided in paragraph (1) of this note.

Part VI Ch. 49–56 Taxation

(c)   The Notice of Intent to Attach Wages shall be served upon the defendant in the manner provided by Rule 400 et seq. for service of original process in a civil action.

Part V Ch. 41–48A Zoning, etc.

Note: The web site of the Civil Procedural Rules Committee is part of the home page of the Administrative Office of Pennsylvania Courts at www.pacourts.org. The poverty income guidelines set forth on the Committee web site which are to be attached to the Notice of Intent to Attach Wages are stated in monthly amounts.

Part IV Ch. 36–40 Insurance

(a)  The plaintiff shall commence an execution to attach wages by filing a praecipe with the prothonotary of a county in which judgment has been entered and in which the defendant resides, the defendant works or the residential real property which is the subject of the action is located. The praecipe shall be filed within five years of the date of the original judgment. The praecipe shall be in the form prescribed by Rule 3311. (b)  Upon the filing of the praecipe, the prothonotary shall issue a Notice of Intent to Attach Wages in the form prescribed by Rule 3312(a). The prothonotary shall attach to the notice a copy of both (1) the praecipe filed with the prothonotary for issuance of the Notice of Intent to Attach Wages and (2) the most recent poverty income guidelines issued by the Federal Department of Health and Human Services as they appear on the web site of the Civil Procedural Rules Committee.

Part III Ch. 23–35 Mortgages

RULE 3302.  COMMENCEMENT. NOTICE.

Part II Ch. 15–22 Deeds

(b)   As used in this chapter, “defendant” means a judgment debtor-tenant, “garnishee” means the employer of the defendant, “judgment” means a judgment for amounts awarded to a plaintiff arising out of a residential lease, which has been entered in the court of common pleas or the Philadelphia Municipal Court and which shall have been entered originally in (1)   any civil action brought in the court of common pleas, (2)   the following actions brought before a magisterial district judge: (i)   a civil action pursuant to Pa.R.C.P.M.D.J. 301 et seq., or (ii)   an action for the recovery of possession of real property pursuant to Pa.R.C.P.M.D.J. 501 et seq. in which the defendant appeared or filed papers or in which the complaint was served by handing a copy to the defendant. (3)   the following actions brought in the Philadelphia Municipal Court: (i)  a civil action in which the defendant was served pursuant to Phila.M.C.R.Civ.P. No. 111(A) or (C), or (ii)  an action in which the defendant was served pursuant to Phila. M.C.R.Civ.P. No. 111(B) and in which the defendant appeared or filed papers, “plaintiff” means a judgment creditor-landlord, and “wages” includes salary and commissions.

Part I Ch. 1–14 Brokers

Note: Section 8127(a)(3.1) of the Judicial Code provides for the attachment of wages for amounts awarded to a judgment creditor-landlord arising out of a residential lease upon which the court has rendered judgment which is final. See subdivision (b) for the definition of “judgment.” Rule 3101 et seq. governing the enforcement of money judgments is not applicable to the attachment of wages under this chapter.

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RULE 3304

RULES OF CIVIL PROCEDURE

Note: For the form of the claim for exemption, see Rule 3312(b).

(b)(1)   If the defendant files a claim for exemption of wages from attachment either within thirty days as required by subdivision (a) of this rule or prior to the issuance of the writ of attachment, the prothonotary shall not issue the writ of attachment and shall send a notice of the claim for exemption of wages from attachment to the plaintiff or, if represented, to the plaintiff’s attorney. The prothonotary shall attach a copy of the claim to the notice. Note: For the form of the notice for exemption, see Rule 3312(c).

(2)   If the defendant files a claim for exemption after the writ of attachment has been issued, the attachment of the defendant’s wages shall continue unless the defendant obtains a court order staying or vacating the attachment. (c)   A plaintiff who wishes to challenge the claim of exemption shall file a motion requesting the court to direct the prothonotary to issue a writ for the attachment of wages. The motion shall set forth facts which establish that the plaintiff is entitled to attach wages pursuant to Section 8127(a)(3.1) of the Judicial Code. If the motion on its face sets forth such facts, the court shall set a hearing date or set forth another procedure provided by Rule 208.4 as may be appropriate.

RULE 3304.  WRIT FOR THE ATTACHMENT OF WAGES. ISSUANCE. SERVICE (a)   The prothonotary shall issue a writ for the attachment of wages upon (1)   praecipe of the plaintiff where the defendant has not timely filed a claim for exemption of wages from attachment, or (2)   order of the court entered upon motion pursuant to Rule 3303(c). (b)   The prothonotary shall by ordinary mail send the writ to the garnishee and to the defendant. (c)  The writ of attachment of wages shall be substantially in the form provided by Rule 3313. Note: Section 8127(c)(1) of the Judicial Code provides that the employer shall send the attached wages to the prothonotary of the court of common pleas within 15 days from the close of the last pay period in each month. Upon receipt of the attached wages, the prothonotary of the court of common pleas shall record and send said wages to the judgment creditor-landlord.

RULE 3311.  PRAECIPE FOR NOTICE OF INTENT TO ATTACH WAGES. FORM The Praecipe for Notice of Intent to Attach Wages shall be substantially in the following form: (CAPTION) PRAECIPE FOR NOTICE OF INTENT TO ATTACH WAGES To the Prothonotary: Issue a Notice of Intent to Attach Wages in the above matter (1)   against ________________, defendant, (2)   against ________________, employer of the defendant. Date: _____________ ___________________________________ Attorney for Judgment Creditor-Landlord or Judgment Creditor-Landlord if unrepresented _________________________________ Address __________________________________ Telephone number

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Part I Ch. 1–14 Brokers

Certification by Judgment Creditor—Landlord I certify that 1. The plaintiff judgment-creditor is ___________________________ Name ___________________________ Address 2. The defendant judgment-debtor is ___________________________ Name ___________________________ Address 3. The employer garnishee is _______________________________ Name _______________________________ Address

Part II Ch. 15–22 Deeds Part III Ch. 23–35 Mortgages

4. The judgment arises out of a residential lease for the premises at ______________________________________________ (address).

Part V Ch. 41–48A Zoning, etc. Part VI Ch. 49–56 Taxation Part VII Ch. 57–63 Litigation Part VIII Ch. 64–67 L/T Part IX Ch. 68–72 Condos, etc. Index

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Part IV Ch. 36–40 Insurance

5. (a) The amount of the judgment is $ _____________. (b)   A security deposit in the amount of $ ___________ is being held by the judgment creditor-landlord. This security deposit ___ has been applied ___ has not been applied to payment of rent due on the same premises for which the judgment has been entered. (Any security deposit that has not already been applied to rent will be deducted by the Prothonotary from the amount of the judgment in determining the amount to be attached.) (c)   The amount of $________ has been paid toward satisfaction of the judgment. (Do not include the security deposit.) 6. This praecipe is filed within five years of the date of the original judgment upon which execution is sought. 7. The judgment was entered (check one): _____ in a civil action commenced in the court of common pleas. _____ in an action brought before a magisterial district judge. _____ in an action commenced in the Philadelphia Municipal Court. 8. Check the appropriate paragraph and attach the required documents: ___ (a) If the judgment was entered in a civil action (Pa.R.C.P.M.D.J. 301 et seq.) before a magisterial district judge, a copy of the complaint filed with the magisterial district judge is attached to this Notice, showing that the action arose from a residential lease. ___ (b) If the judgment was entered in an action for the recovery of possession of real property (Pa.R.C.P.M.D.J. 501 et seq.) before a magisterial district judge, copies of the appropriate magisterial district judge records are attached showing that the action arose from a residential lease and that the defendant appeared or filed papers in the action or that the complaint was served by handing a copy to the defendant. ___ (c) If the judgment was entered in an action in the Philadelphia Municipal Court in which the defendant was served pursuant to Phila.M.C.R.Civ.P. No. 111(A) or (C), a copy of the complaint filed with the Philadelphia Municipal Court is attached to this Notice, showing that the action arose from a residential lease. ___ (d) If the judgment was entered in an action in the Philadelphia Municipal Court in which the defendant was served pursuant to Phila.M.C.R.Civ.P. No.

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RULE 3312

RULES OF CIVIL PROCEDURE

111(B), copies of the appropriate Philadelphia Municipal Court records are attached showing that the action arose from a residential lease and that the defendant appeared or filed papers in the action. I certify that the statements made in this Certification are true and correct. I understand that false statements herein are made subject to the penalties of 18 Pa.C.S. § 4904 relating to unsworn falsification to authorities. Date: _____________ ___________________________ Judgment Creditor-Landlord

RULE 3312.  NOTICE OF INTENT TO ATTACH WAGES. CLAIM FOR EXEMPTION FROM WAGE ATTACHMENT. NOTICE OF CLAIM FOR EXEMPTION OF WAGES FROM ATTACHMENT. FORMS (a)   The notice of attachment of wages required by Rule 3302(b) shall be substantially in the following form: (CAPTION) NOTICE OF INTENT TO ATTACH WAGES, SALARY OR COMMISSIONS Date of service of this Notice: ______________ (Date to be inserted by the Sheriff) A judgment has been entered against you in court for nonpayment of rent for, or damage to, residential property that you rented. The judgment creditor-landlord has begun proceedings to attach 10% of your net wages, salary or commissions for each pay period until the judgment is satisfied. The following exception will prevent your wages from being attached: Poverty Guidelines — Your wages may not be attached if your net income is below the poverty income guidelines as provided annually by the Federal Department of Health and Human Services or if the amount of the attachment would cause your net income to fall below the poverty income guidelines. A copy of the guidelines is attached to this notice. If this exemption is applicable to you, you must return the claim for exemption of wages which is attached to the prothonotary within 30 days of the date of service of this notice upon you. The date of service of this notice is set forth above. If you return the form claiming this exemption within 30 days, your wages will not be attached without subsequent court proceedings. There may be other legal grounds for opposing the wage attachment that you may be able to raise by filing a motion with the court. For example, your wages may not be attached if you are an abused person or victim as set forth in Section 8127(f) of the Judicial Code when the attachment is to satisfy a judgment for physical damages to the leased premises. YOU SHOULD TAKE THIS PAPER TO YOUR LAWYER AT ONCE. IF YOU DO NOT HAVE A LAWYER, GO TO OR TELEPHONE THE OFFICE SET FORTH BELOW. THIS OFFICE CAN PROVIDE YOU WITH INFORMATION ABOUT HIRING A LAWYER. IF YOU CANNOT AFFORD TO HIRE A LAWYER, THIS OFFICE MAY BE ABLE TO PROVIDE YOU WITH INFORMATION ABOUT AGENCIES THAT MAY OFFER LEGAL SERVICES TO ELIGIBLE PERSONS AT A REDUCED FEE OR NO FEE. ___________________________ (Name) ___________________________ (Address) ___________________________ (Telephone Number) (b)  The claim for exemption from wage attachment shall be substantially in the following form:

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Index

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Part IX Ch. 68–72 Condos, etc.

1035

Part VIII Ch. 64–67 L/T

__________________________ Prothonotary

Part VII Ch. 57–63 Litigation

Date: _____________

Part VI Ch. 49–56 Taxation

To the above-named plaintiff: The defendant in the above-captioned matter has filed a claim for exemption from attachment of his or her wages, salary or commissions. A copy of the claim is attached. If you wish to challenge the claim for exemption, you should file with the court a motion setting forth facts which show that the defendant’s net income is not below the Federal Department of Health and Human Services poverty income guidelines or that the attachment will not cause the defendant’s net income to fall below those poverty income guidelines.

Part V Ch. 41–48A Zoning, etc.

(CAPTION) NOTICE OF CLAIM OF EXEMPTION OF WAGES FROM ATTACHMENT

Part IV Ch. 36–40 Insurance

___________________________ Telephone Number (c)   The notice of claim of exemption required by Rule 3303(b) shall be substantially in the following form:

Part III Ch. 23–35 Mortgages

___________________________ Address

Part II Ch. 15–22 Deeds

Notice This Claim for Exemption must be filed with the Prothonotary of the Court within 30 days of service upon you of the Notice of Intent to Attach Wages. To the Prothonotary: I, the above-named defendant, claim exemption of my wages, salary or commissions from attachment on the following ground: ___ My net monthly income is below the poverty income guidelines as provided by the Federal Department of Health and Human Services. OR ___ The amount of wages to be attached would place my net income below the poverty income guidelines as provided annually by the Federal Department of Health and Human Services. I have _________dependents. (Number) My net monthly income is $ ___________. (Net monthly income is your total monthly wages less (1) any support payments made to the court, (2) federal, state and local income taxes, (3) F.I.C.A. payments and nonvoluntary retirement payments (4) union dues and (5) health insurance premiums.) I certify that the statements made in this Claim for Exemption are true and correct. I understand that false statements herein are made subject to the penalties of 18 Pa.C.S. § 4904 relating to unsworn falsification to authorities. Date: _____________ _____________________________ Defendant This claim shall be delivered or mailed to Office of the Prothonotary Court of Common Pleas

Part I Ch. 1–14 Brokers

(CAPTION) CLAIM FOR EXEMPTION FROM WAGE ATTACHMENT

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RULE 3313

RULES OF CIVIL PROCEDURE

RULE 3313.  WRIT OF ATTACHMENT OF WAGES. FORM The writ of attachment of wages shall be substantially in the following form: (CAPTION) WRIT OF ATTACHMENT OF WAGES, SALARY OR COMMISSIONS Commonwealth of Pennsylvania : County of ___________________ : To _____________________________________ Employer of Defendant ________________ (Name) You have been identified as the employer of the above-named defendant. You are directed to withhold the wages, salary and commissions of the defendant in your possession to satisfy the judgment against the defendant. You are notified that 1. an attachment of wages, salary and commissions has been issued; 2. you are ordered to withhold from the wages, salary and commissions of the defendant an amount per pay period which does not exceed ten (10) percent of the defendant’s net wages, salary and commissions; Net wages are all wages paid less only the following items: (1) any support payments made to the court, (2) federal, state and local income taxes, (3) F.I.C.A. payments and nonvoluntary retirement payments, (4) union dues and (5) health insurance premiums. 3. the total amount attached is $ _______________ and the withholding must continue until the amount of the attachment is satisfied; 4. the attached wages shall be sent to the prothonotary of the court of common pleas within 15 days from the close of the last pay period in each month. The check must a. contain the name of the employee whose wages are being withheld, b. b. be made payable to the Prothonotary, and c. c. be sent to Prothonotary Court of Common Pleas Wage Attachment Remittance ___________________________ Address ___________________________ Telephone Number 5. you are entitled to deduct each pay period from the money collected from the defendant employee the costs incurred from the extra bookkeeping necessary to record the transaction, not exceeding $5.00 of the amount of money so collected. 6. by law, you may not take any adverse action against the defendant because his or her wages, salary or commissions have been attached. 7. you shall send the following notice to the prothonotary if the defendant has never been or is no longer an employee: I have received a Writ of Attachment in the following case: _____________ v. ______________, No. _____ of ______. Plaintiff Defendant Year The following person, ____________, has never been (__) or Name is no longer an employee (__).

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* * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * *

By ___________________________ Deputy

Part VIII Ch. 64–67 L/T Part IX Ch. 68–72 Condos, etc. Index

gtb-parealestate22-all.indb 1037

Part VII Ch. 57–63 Litigation

1037

Part VI Ch. 49–56 Taxation

Prohibition against Discharge.— Section 8127(e) provides that the “employer shall not take any adverse action against any individual solely because his wages, salaries or commissions have been attached.” The form of the writ of attachment advises the employer of this obligation as well.

Part V Ch. 41–48A Zoning, etc.

Withholding of Wages.— Section 8127(c) sets forth duties of the employer-garnishee with respect to the withholding of wages. The form of the writ of attachment set forth in Rule 3313 advises the employer of these statutory duties.

Part IV Ch. 36–40 Insurance

Security Deposit.— Section 8127(a)(3.1) provides for the deduction of a security deposit from the attachment under circumstances set forth in the Code. Rule 3311 prescribes a form of Praecipe for Notice of Intent to Attach Wages which requires the plaintiff (judgment creditor-landlord) to execute a Certification as to the status of the security deposit. Exemptions from Attachment.— 1. Poverty Guidelines. Section 8127(a)(3.1) requires that the “sum attached shall be no more than 10% of the net wages per pay period of the judgment debtor-tenant or a sum not to place the debtor’s net income below the poverty income guidelines as provided annually by the Federal Office of Management and Budget, whichever is less.” First, the employer-garnishee will determine the ten percent limit of the net wages to be attached. Second, since the defendant (judgment debtor-tenant) is the only person who has knowledge whether the attachment will bring his or her net income below the poverty level, the rules require the defendant to assert this objection to the attachment by filing a claim for exemption which is attached to the Notice of Intent to Attach Wages served upon the defendant. Third, Rule 3302(b) requires the prothonotary to attach to the Notice a copy of the most recent federal poverty income guidelines of the Federal Department of Health and Human Services as set forth on the web site of the Civil Procedural Rules Committee. 2. Other Exemptions. The Notice of Intent to Attach Wages advises the defendant that there may be other exemptions available, giving the example of an abused person or victim, and that these exemptions are to be claimed by filing a motion with the court.

Part III Ch. 23–35 Mortgages

Explanatory Comment The Supreme Court of Pennsylvania has promulgated a new chapter of rules, Rule 3301 et seq., to govern the attachment of wages, salary and commissions pursuant to Section 8127(a) (3.1) of the Judicial Code in actions or proceedings for “amounts awarded to a judgment creditor-landlord arising out of a residential lease.” Rule 3101 et seq. governing the enforcement of judgments for the payment of money will not apply to a wage attachment under this provision of the Judicial Code. Pursuant to the definition of the term “judgment” in Rule 3301(b), wages may be attached to satisfy a judgment for rent or physical damage to a leased premises entered in a “civil action” whether in a court of common pleas or before a magisterial district judge or in the Philadelphia Municipal Court. However, if the money judgment sought to be enforced is entered in an action for recovery of possession of real property before a magisterial district judge pursuant to Pa.R.C.P.M.D.J. 501 et seq. or in an action in the Philadelphia Municipal Court in which service is made pursuant to Phila.M.C.R.Civ.P. 111(B), a writ of attachment of wages may issue only if the defendant appeared or filed papers in the action or if the complaint was handed to the defendant (judgment debtor-tenant). In addition, the courts of common pleas and the Philadelphia Municipal Court may issue a writ of attachment of wages to enforce a judgment entered in those courts. However, a judgment entered by a magisterial district judge must be entered in the court of common pleas for the writ of attachment to issue on that judgment. Section 8127 of the Judicial Code imposes certain requirements upon the attachment of wages.

Part II Ch. 15–22 Deeds

Seal of the Court ___________________________ Prothonotary

Part I Ch. 1–14 Brokers

Date: ____________ ___________________________ Employer

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RULE 4009.31   RULES OF CIVIL PROCEDURE The new rules require the intervention of the court in two circumstances. First, if the defendant files a claim for exemption on the ground that his or her income is below the federal poverty income guidelines or that the attachment will bring his or her income below the federal poverty income guidelines, the plaintiff may dispute the claim by filing a motion requesting the court to direct the prothonotary to issue a writ of attachment of wages. The motion must set forth facts which establish that the plaintiff is entitled to attach wages pursuant to Section 8127(a)(3.1) of the Judicial Code. Second, the defendant may file a motion to stay or vacate the attachment on other grounds of exemption from attachment, including the ground of being an abused person or victim.

CHAPTER 57.17 DISCOVERY: ENTRY UPON PROPERTY FOR INSPECTION Rules 4009.31 to 4009.33

Rule

   4009.31. Entry Upon Property for Inspection and Other Activities. General Provisions    4009.32. Request for Entry Upon Property of a Party    4009.33. Motion for Entry Upon Property of a Person Not a Party

RULE 4009.31.  ENTRY UPON PROPERTY FOR INSPECTION AND OTHER ACTIVITIES. GENERAL PROVISIONS Any party may serve a request upon a party pursuant to Rule 4009.32 or a motion upon a person not a party pursuant to Rule 4009.33 to permit entry upon designated property in the possession or control of the party or person upon whom the request is served for the purpose of inspecting and measuring, surveying, photographing, testing, or sampling the property or any designated object or operation thereon, within the scope of Rules 4003.1 through 4003.6 inclusive. Note: These rules do not prevent a court from entering an order under its common law power preserving or protecting property. Parties to an action and persons not parties but served with a subpoena or request pursuant to these rules have the protective and enforcement provisions of the discovery rules available to them. See Rule 4012 governing protective orders and Rule 4019 governing enforcement and sanctions for failure to make discovery. These rules do not preclude an independent action against a person not a party for permission to enter upon property.

RULE 4009.32.  REQUEST FOR ENTRY UPON PROPERTY OF A PARTY (a)   The request may, without leave of court, be served upon the plaintiff after commencement of the action and upon any other party with or after service of the original process upon that party. The request shall describe with reasonable particularity the property to be entered and the activities to be performed. (b)   The party upon whom the request is served shall allow the requested entry unless the request is objected to within thirty days after service of the request, in which event the reasons for objection shall be stated. If objection is made to part of a request, the part shall be specified. The party submitting the request may move for an order under Rule 4019(a) with respect to any objection to or failure to respond to the request or any part thereof, or any failure to permit entry as requested. (c)  A party may enter upon property one or more times to accomplish the activities set forth in the request. Note: The remedy of a protective order is available to the party to whom the request is directed to prevent abuse.

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Note: For general provisions governing entry upon property, see Rule 4009.31.

Part IV Ch. 36–40 Insurance Part V Ch. 41–48A Zoning, etc. Part VI Ch. 49–56 Taxation Part VII Ch. 57–63 Litigation Part VIII Ch. 64–67 L/T Part IX Ch. 68–72 Condos, etc.

(CAPTION) IMPORTANT NOTICE YOU HAVE PROPERTY WHICH THE PARTIES TO THE ABOVE LAWSUIT WISH TO ENTER FOR INSPECTION OR OTHER ACTIVITIES. THE MOTION ATTACHED TO THIS NOTICE ASKS THE COURT FOR AN ORDER ALLOWING THE ENTRY INTO YOUR PROPERTY. IF YOU CONSENT TO THIS ENTRY PLEASE FILL IN THE ATTACHED FORM. PLEASE CONTACT THE ATTORNEY LISTED BELOW: ________________________________ (Attorney filing the motion) ________________________________ (Address) ________________________________ (Telephone Number) IF YOU DO NOT CONSENT TO THE ENTRY, YOU HAVE A RIGHT TO A HEARING ON THE MATTER. A DATE FOR PRESENTATION OF THE MOTION TO THE COURT WILL BE SET AND THE PARTY FILING THE MOTION WILL GIVE YOU FIFTEEN DAYS NOTICE OF ITS PRESENTATION. IF YOU DO NOT APPEAR AT THE PRESENTATION OF THE MOTION, THE COURT MAY ENTER AN ORDER ALLOWING ENTRY. YOU MAY WISH TO TAKE THIS NOTICE TO A LAWYER WHO CAN ADVISE YOU. IF YOU DO NOT HAVE A LAWYER AND WISH TO OBTAIN ONE, CONTACT THE OFFICE SET FORTH BELOW. THIS OFFICE CAN PROVIDE YOU WITH INFORMATION ABOUT HIRING A LAWYER ________________________________ (Name of Office) ________________________________ (Address of Office) ________________________________ (Telephone Number)

Part III Ch. 23–35 Mortgages

(b)   If the person served does not affirmatively consent to the entry, the motion may be presented to the court. The moving party shall give the person served not less than fifteen days notice of the presentation of the motion. Upon proof of service of the notice of the presentation, the court, as it deems appropriate, may enter an order permitting or denying the entry or set a date for a hearing. The order permitting entry shall specify a reasonable time, manner or other condition of entry and of making the inspection and performing any related acts. (c)  The notice required by subdivision (a) shall be substantially in the following form:

Part II Ch. 15–22 Deeds

(a)   A motion to permit entry upon property of a person not a party shall begin with the notice prescribed by subdivision (c) and shall describe with reasonable particularity the property to be entered and the activities to be performed. The motion shall be served personally by an adult in the same manner as original process. A copy of the motion shall also be served upon all other parties to the action pursuant to Rule 440.

Part I Ch. 1–14 Brokers

RULE 4009.33.  MOTION FOR ENTRY UPON PROPERTY OF A PERSON NOT A PARTY

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Note: The office shall be designated by the court under Rule 1018.1(c).

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CHAPTER 58 STATUTES OF LIMITATION 42 Pa. C.S. § 5522 to 42 Pa. C.S. § 5538

Sec. § § § § § § § § § § § § § § § § § § § § §

5522. Six months limitation 5523. One year limitation 5524. Two year limitation 5524.1. Limitation and application for asbestos claims 5525. Four year limitation 5526. Five year limitation 5527. Six year limitation 5527.1. Ten year limitation. [Effective June 19, 2019] 5527.2. Mesne profits [Effective June 19, 2019]] 5527.3. Reimbursement. 5528. Fifteen year limitation 5529. Twenty year limitation 5530. Twenty-one year limitation 5531. No limitation 5532. Absence or concealment 5533. Infancy, insanity or imprisonment 5534. War 5535. Effect of other actions and proceedings 5536. Construction projects 5537. Land surveying 5538. Landscape architecture

§ 5522.  Six months limitation (a)   Notice prerequisite to action against government unit.— (1)   Within six months from the date that any injury was sustained or any cause of action accrued, any person who is about to commence any civil action or proceeding within this Commonwealth or elsewhere against a government unit for damages on account of any injury to his person or property under Chapter 85 (relating to matters affecting government units) or otherwise shall file in the office of the government unit, and if the action is against a Commonwealth agency for damages, then also file in the office of the Attorney General, a statement in writing, signed by or in his behalf, setting forth: (i)   The name and residence address of the person to whom the cause of action has accrued. (ii)   The name and residence address of the person injured. (iii)   The date and hour of the accident. (iv)   The approximate location where the accident occurred. (v)   The name and residence or office address of any attending physician. (2)  If the statement provided for by this subsection is not filed, any civil action or proceeding commenced against the government unit more than six months after the date of injury to person or property shall be dismissed and the person to whom any such cause of action accrued for any injury to person or property shall be forever barred from proceeding further thereon within this Commonwealth or elsewhere. The court shall excuse failure to comply with this requirement upon a showing of reasonable excuse for failure to file such statement. (3)  In the case of a civil action or proceeding against a government unit other than the Commonwealth government:

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Part III Ch. 23–35 Mortgages Part IV Ch. 36–40 Insurance Part V Ch. 41–48A Zoning, etc. Part VI Ch. 49–56 Taxation Part VII Ch. 57–63 Litigation Part VIII Ch. 64–67 L/T Part IX Ch. 68–72 Condos, etc. Index

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Part II Ch. 15–22 Deeds

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(i)   The time for giving such written notice does not include the time during which an individual injured is unable, due to incapacitation or disability from the injury, to give notice, not exceeding 90 days of incapacity. (ii)  If the injuries to an individual result in death, the time for giving notice shall commence with such death. (iii)   Failure to comply with this subsection shall not be a bar if the government unit had actual or constructive notice of the incident or condition giving rise to the claim of a person. (b)   Commencement of action required.—The following actions and proceedings must be commenced within six months: (1)   An action against any officer of any government unit for anything done in the execution of his office, except an action subject to another limitation specified in this subchapter. (2)  A petition for the establishment of a deficiency judgment following execution and delivery of the sheriff’s deed for the property sold in connection with the execution proceedings referenced in the provisions of section 8103(a) (relating to deficiency judgments). (3)   Repealed. 1992, July 9, P.L. 507, No. 97, § 31, effective in one year. (4)   An action under section 4563(c) (relating to civil remedy available). (5)   An action or proceeding to set aside a judicial sale of property. (6)  A petition for redetermination of fair market value pursuant to section 8103(f.1)(4) following execution and delivery of the sheriff’s deed for the property sold in connection with the execution proceedings referenced under section 8103. (c)  Exception.—This section shall not apply to any civil action or proceeding brought under section 8522(b)(10) (relating to exceptions to sovereign immunity) or 8542(b)(9) (relating to exceptions to governmental immunity). § 5523.   One year limitation The following actions and proceedings must be commenced within one year: (1)   An action for libel, slander or invasion of privacy. (2)   An action upon a bond given as security by a party in any matter, except a bond given by a condemnor in an eminent domain proceeding. (3)   An action upon any payment or performance bond. § 5524.  Two year limitation The following actions and proceedings must be commenced within two years: (1)  An action for assault, battery, false imprisonment, false arrest, malicious prosecution or malicious abuse of process. (2)   An action to recover damages for injuries to the person or for the death of an individual caused by the wrongful act or neglect or unlawful violence or negligence of another. (3)   An action for taking, detaining or injuring personal property, including actions for specific recovery thereof. (4)   An action for waste or trespass of real property. (5)   An action upon a statute for a civil penalty or forfeiture. (6)  An action against any officer of any government unit for the nonpayment of money or the nondelivery of property collected upon on execution or otherwise in his possession. (7)   Any other action or proceeding to recover damages for injury to person or property which is founded on negligent, intentional, or otherwise tortious conduct or any other action or proceeding sounding in trespass, including deceit or fraud, except an action or proceeding subject to another limitation specified in this subchapter.

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§ 5524.1

STATUTES OF LIMITATION

§ 5524.1.  Limitation and application for asbestos claims (a)  General rule.—An action to recover damages for injury to a person or for the death of a person caused by exposure to asbestos shall be commenced within two years from the date on which the person is informed by a licensed physician that the person has been injured by such exposure or upon the date on which the person knew or in the exercise of reasonable diligence should have known that the person had an injury which was caused by such exposure, whichever date occurs first. (b)  Applicability.—The limitations set forth in 15 Pa.C.S. § 1929.1(a) and (b) (relating to limitations on asbestos-related liabilities relating to certain mergers or consolidations) shall not apply to an asbestos claim for which the applicable period of limitation commenced on or before December 17, 2001. (c)  Definition.—As used in this section, the term “asbestos claim” shall have the meaning as set forth in 15 Pa.C.S. § 1929.1(e). § 5525.  Four year limitation (a)  General rule. Except as provided for in subsection (b), the following actions and proceedings must be commenced within four years: (1)   An action upon a contract, under seal or otherwise, for the sale, construction or furnishing of tangible personal property or fixtures. (2)   Any action subject to 13 Pa.C.S. § 2725 (relating to statute of limitations in contracts for sale). (3)  An action upon an express contract not founded upon an instrument in writing. (4)  An action upon a contract implied in law, except an action subject to another limitation specified in this subchapter. (5)   An action upon a judgment or decree of any court of the United States or of any state. (6)   An action upon any official bond of a public official, officer or employee. (7)  An action upon a negotiable or nonnegotiable bond, note or other similar instrument in writing. Where such an instrument is payable upon demand, the time within which an action on it must be commenced shall be computed from the later of either demand or any payment of principal of or interest on the instrument. (8)   An action upon a contract, obligation or liability founded upon a writing not specified in paragraph (7), under seal or otherwise, except an action subject to another limitation specified in this subchapter. (b)  Special provisions. An action subject to section 8315 (relating to damages in actions for identity theft) must be commenced within four years of the date of the offense or four years from the date of the discovery of the identity theft by the plaintiff. § 5526.  Five year limitation The following actions and proceedings must be commenced within five years: (1)   An action for revival of a judgment lien on real property. (2)   An action for specific performance of a contract for sale of real property or for damages for noncompliance therewith. (3)   An action to enforce any equity of redemption or any implied or resulting trust as to real property. (4)  A proceeding in inverse condemnation, if property has been injured but no part thereof has been taken, or if the condemnor has made payment in accordance with section 407(a) or (b) (relating to possession and payment of compensation) of the Act of June 22, 1964 (Sp.Sess., P.L. 84, No. 6), known as the “Eminent Domain Code.”

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(b)  Contiguous lots.—

(2)   In order to acquire title to the contiguous lot, the possessor must show that:

(ii)   The possessor has made actual, continuous, exclusive, visible, notorious, distinct and hostile possession of the contiguous lot for a period of not less than 10 years.

Part IV Ch. 36–40 Insurance

(i)   The area of the contiguous lot as described by the metes and bounds does not exceed a total area of one-half acre when combined with the real property.

Part III Ch. 23–35 Mortgages

(1)   Where an additional lot abuts and is contiguous to real property and has been regularly used as part of and incident to the real property, a possessor who seeks to acquire title to real property under this section may also include the contiguous lot in the action to quiet title under subsection (c).

Part II Ch. 15–22 Deeds

§ 5527.1.   Ten year limitation. [Effective June 19, 2019] (a)  Adverse possession.—Title to real property may be acquired after no less than 10 years of actual, continuous, exclusive, visible, notorious, distinct and hostile possession of the real property.

Part I Ch. 1–14 Brokers

§ 5527.  Six year limitation Any civil action or proceeding which is neither subject to another limitation specified in this subchapter nor excluded from the application of a period of limitation by section 5531 (relating to no limitation) must be commenced within six years.

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PART VII

(c)   Quiet title action required.—

(3)   Notice shall be provided in a form approved by rule of the Pennsylvania Supreme Court, which form shall include the metes and bounds description, deed reference, street address, postal zip code, uniform parcel identifier or tax parcel number and the notices of the one-year period to cure as stated in subsection (d). (1)   The record owners or their heirs, successors and assigns shall have one year in which to respond by commencing an action in ejectment against the possessor, which action disputes the claim of adverse possession.

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Index

(3)  If no action in ejectment is so filed and served within the one-year period, then judgment may be entered by the court granting title to the real

Part IX Ch. 68–72 Condos, etc.

(ii)   The period for running the statute of limitations for any subsequent claim seeking title by adverse possession under this section or section 5530 shall commence at a date not earlier than the date of the judgment granting the relief requested in the ejectment action.

Part VIII Ch. 64–67 L/T

(2)(i)   If an action in ejectment is so filed and served in accordance with the requirements of this section and the verdict and judgment in the ejectment action are rendered in favor of the record owners, or their heirs, successors and assigns, then both the 10-year statute of limitations set forth in this section and the 21-year statute of limitations set forth in section 5530 (relating to twenty-one year limitation) are tolled, and the court shall render a judgment in favor of the record owners, or their heirs, successors and assigns, disposing of the quiet title action.

Part VII Ch. 57–63 Litigation

(d)  One-year notice.—

Part VI Ch. 49–56 Taxation

(2)  Notice of the action shall include information relating to the respondent’s opportunity to cure as specified in subsection (d) and shall be provided to the record owners, their heirs, successors and assigns.

Part V Ch. 41–48A Zoning, etc.

(1)   A possessor who seeks to acquire title to real property under this section must, after meeting the requirements of subsections (a) and (b), commence a quiet title action and provide notice as required in this section.

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§ 5527.2

STATUTES OF LIMITATION

property by adverse possession under this section and the Pennsylvania Rules of Civil Procedure. (4)   A judgment granting title by adverse possession under this section shall not, in and of itself: (i)  discharge, terminate or give rise to a presumption of satisfaction or release of any interest in the property that runs with title to the property, including, but not limited to, easements, profits, covenants, mortgages, liens, judgments and leases; (ii)   otherwise extend or limit the period of time in which claims relating to the property may be asserted against a possessor granted title by a judgment of adverse possession; or (iii)   supersede any applicable provision of law, including, but not limited to, the act of July 31, 1968 (P.L.805, No.247), known as the Pennsylvania Municipalities Planning Code, or a zoning code of a city of the first class or city of the second class as the case may be, and any subdivision or land use ordinance, to the extent applicable, then in effect in the jurisdiction where the subject property is located. Nothing contained in this section shall limit the otherwise applicable jurisdiction of any zoning officer, zoning hearing board, zoning board of adjustment or governing body with respect to the subject property. (e)  Limitations.—This section shall not apply to real property that is part of a common interest ownership community established under 68 Pa.C.S. Pt. II Subpts. B (relating to condominiums), C (relating to cooperatives) and D (relating to planned communities). (f)  Nonapplicability.—This section shall not apply to real property that is: (1)   part of a common interest ownership community established under 68 Pa.C.S. Pt. II Subpt. B, C or D; or (2)   owned by the United States, the Commonwealth, a local government, or any agency, authority or other unit of the United States, the Commonwealth or local government, including, but not limited to, a redevelopment authority, municipal authority and school district or joint agency or authority of the United States, the Commonwealth or local government unit. (g)  Nonexclusive remedy.—The relief available under this section is intended to be cumulative and not exclusive of any other rights or remedies that may be available under law or equity, including, but not limited to, the determination of title to a decedent’s interest in real estate under 20 Pa.C.S. § 3546 (relating to determination of title to decedent’s interest in real estate). (h)  Definitions.—As used in this section, the following words and phrases shall have the meanings given to them in this subsection unless the context clearly indicates otherwise: “Real property.”   Real estate not exceeding one-half acre in area that is: (1)   Improved by a single-family dwelling that is and has been occupied by a possessor seeking title under this section for the full 10 years. (2)   Identified as a separate lot in a recorded conveyance, recorded subdivision plan or recorded official map or plan of a municipality. “Single-family dwelling.”  A residence designed for occupancy by one household, whether detached from or attached to other structures. § 5527.2.   Mesne profits. [Effective June 19, 2019] (a)  General rule.—Record owners, their heirs, successors and assigns shall have the right to seek any mesne profits in an action in ejectment filed in response to the notice served under section 5527.1 (relating to ten year limitation) or waive the right to such recovery.

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(b)   Instruments under seal.—

(1)   An action for the possession of real property. (1) Except as provided in section 5527.1 (relating to ten year limitation), an action for the possession of real property. [Effective June 19, 2019]

1. 27 P.S. § 1-1 et seq. (repealed); see now, 72 P.S. § 1301-16. 2. 26 P.S. § 1-407.

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Part IX Ch. 68–72 Condos, etc.

(b)   Entry upon land.—No entry upon real property shall toll the running of the period of limitation specified in subsection (a)(1), unless a possessory action shall be commenced therefor within one year after entry. Such an entry and commencement of a possessory action, without recovery therein, shall not toll the running of such period of limitation in respect of another possessory action, unless such other possessory action is commenced within one year after the termination of the first.

Part VIII Ch. 64–67 L/T

(3)  A proceeding in inverse condemnation, if property has been taken and the condemnor has not made payment in accordance with section 407(a) or (b) (relating to possession and payment of compensation) of the act of June 22, 1964 (Sp.Sess., P.L. 84, No. 6), known as the “Eminent Domain Code.”2

Part VII Ch. 57–63 Litigation

(2)  An action for the payment of any ground rent, annuity or other charge upon real property, or any part or portion thereof. If this paragraph shall operate to bar any payment of such a rent, annuity or charge, the rent, annuity or charge to which the payment relates shall be extinguished and no further action may be commenced with respect to subsequent payments.

Part VI Ch. 49–56 Taxation

§ 5530.  Twenty-one year limitation (a)  General rule.—The following actions and proceedings must be commenced within 21 years:

Part V Ch. 41–48A Zoning, etc.

(1)  Notwithstanding section 5525(7) (relating to four year limitation), an action upon an instrument in writing under seal must be commenced within 20 years.

Part IV Ch. 36–40 Insurance

§ 5529.  Twenty year limitation (a)   Execution against personal property.—An execution against personal property must be issued within 20 years after the entry of the judgment upon which the execution is to be issued.

Part III Ch. 23–35 Mortgages

§ 5528.  Fifteen year limitation Except as otherwise provided by section 17 (relating to periods of limitation) of the act of August 9, 1971 (P.L. 286, No. 74), known as the “Disposition of Abandoned and Unclaimed Property Act,”1 an action for escheat, or for payment into the State Treasury without escheat, must be commenced within 15 years after the property sought in such action shall have first escheated or become escheatable or payable into the State Treasury under any statute.

Part II Ch. 15–22 Deeds

§ 5527.3.  Reimbursement The defendant in the ejectment action under section 5527.1 (relating to ten year limitation) shall have the right to recover such costs for maintenance, improvements, repairs, renovations, taxes or other such expenses to benefit the real property as the defendant can prove by a preponderance of the evidence that were or should have been the responsibility of the record owners, their heirs, successors and assigns.

Part I Ch. 1–14 Brokers

(b)   Limitation on recovery.—Recovery shall be limited to the mesne profits applicable to the six-year period ending with the commencement of the action in ejectment under section 5527(b) (relating to six year limitation).

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§ 5531

STATUTES OF LIMITATION

§ 5531.  No limitation The following actions and proceedings may be commenced at any time notwithstanding any other provision of this subchapter except section 5521 (relating to limitations on foreign claims): (1)   An action against an attorney at law by or on behalf of a client to enforce any implied or resulting trust as to real property. (2)  An action by the Commonwealth, a county or an institution district against the real or personal property of persons who were public charges, including mental patients, to recover the cost of their maintenance and support. (3)  An action by the Commonwealth, a county or an institution district against the real or personal property of persons who were legally liable to pay for the maintenance and support of persons who were public charges, including mental patients, to recover the cost of their maintenance and support. § 5532.  Absence or concealment (a)  General rule.—If, when a cause of action accrues against a person, he is without this Commonwealth, the time within which the action or proceeding must be commenced shall be computed from the time he comes into or returns to this Commonwealth. If, after a cause of action has accrued against a person, he departs from this Commonwealth and remains continuously absent therefrom for four months or more, or he resides within this Commonwealth under a false name which is unknown to the person entitled to commence the action or proceeding, the time of his absence or residence within this Commonwealth under such a false name is not a part of the time within which the action or proceeding must be commenced. (b)  Exception.—Subsection (a) does not apply in any of the following cases: (1)   While there is in force a designation, voluntary or involuntary, made pursuant to law, of a person to whom process may be delivered within this Commonwealth with the same effect as if served personally within this Commonwealth. (2)   While a foreign corporation has one or more officers or other persons in this Commonwealth on whom process against such corporation may be served. (3)  While jurisdiction over the person of the defendant can be obtained without personal delivery of process to him within this Commonwealth. (c)  Fraudulent concealment.—In the case of a civil action or proceeding against the trustee of an express or implied trust, the time within which such an action or proceeding by or on behalf of a beneficiary on account of fraud must be commenced shall be computed from the discovery of the fraud, or when, by reasonable diligence, the person defrauded might have discovered the fraud. This subsection shall not prevent a bona fide purchaser for value from pleading the applicable statute of limitations. § 5533.  Infancy, insanity or imprisonment (a)  General rule.—Except as otherwise provided by statute, insanity or imprisonment does not extend the time limited by this subchapter for the commencement of a matter. (b)  Infancy.— (1)  (i)   If an individual entitled to bring a civil action is an unemancipated minor at the time the cause of action accrues, the period of minority shall not be deemed a portion of the time period within which the action must be commenced. Such person shall have the same time for commencing an action after attaining majority as is allowed to others by the provisions of this subchapter.

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Part III Ch. 23–35 Mortgages

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§ 5534.  War (a)   Cause of action accruing in foreign county.—Where a cause of action, whether originally accrued in favor of a resident or nonresident of this Commonwealth, accrued in a foreign country with which the United States or any of its allies were then or subsequently at war, or territory then or subsequently occupied by the government of such foreign country, the time which elapsed between the commencement of the war, or of such occupation, and the termination of hostilities with such country, or of such occupation, is not a part of the time within which the civil action or proceeding must be commenced, notwithstanding any other provision of this subchapter. (b)  Alien a party.—Where a person is unable to commence an action or proceeding within this Commonwealth because any party is an alien subject or citizen of a foreign country at war with the United States or any of its allies, whether the cause of action accrued during or prior to the war, the time which elapsed between the commencement of the war and the termination of hostilities with such country is not a part of the time within which the civil action or proceeding must be commenced, notwithstanding any other provision of this subchapter. (c)   Nonenemy in enemy country or enemy-occupied territory.—Where a person entitled to commence an action or proceeding, other than a person entitled to the benefits of subsection (b), is a resident of, or a sojourner in, a foreign country with which the United States or any of its allies are at war, or territory occupied by the government of such foreign county, the period of such residence or sojourn during which the war continues or the territory is so occupied is not a part of the time within which the civil action or proceeding must be commenced, notwithstanding any other provision of this subchapter.

Part I Ch. 1–14 Brokers

(ii)   As used in this paragraph, the term “minor” shall mean any individual who has not yet attained 18 years of age. (2)  (i)   If an individual entitled to bring a civil action arising from sexual abuse is under 18 years of age at the time the cause of action accrues, the individual shall have a period of 37 years after attaining 18 years of age in which to commence an action for damages regardless of whether the individual files a criminal complaint regarding the sexual abuse. (i.1)   If an individual entitled to bring a civil action arising from sexual abuse is at least 18 and less than 24 years of age at the time the cause of action occurs, the individual shall have until attaining 30 years of age to commence an action for damages regardless of whether the individual files a criminal complaint regarding the sexual abuse. (ii)   For the purposes of this paragraph, the term “sexual abuse” shall include, but not be limited to, the following sexual activities between an individual who is 23 years of age or younger and an adult, provided that the individual bringing the civil action engaged in such activities as a result of forcible compulsion or by threat of forcible compulsion which would prevent resistance by a person of reasonable resolution: (A)  sexual intercourse, which includes penetration, however slight, of any body part or object into the sex organ of another; (B)   deviate sexual intercourse, which includes sexual intercourse per os or per anus; and (C)  indecent contact, which includes any touching of the sexual or other intimate parts of the person for the purpose of arousing or gratifying sexual desire in either person. (iii)   For purposes of this paragraph, “forcible compulsion” shall have the meaning given to it in 18 Pa.C.S. § 3101 (relating to definitions).

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§ 5535

STATUTES OF LIMITATION

§ 5535.  Effect of other actions and proceedings (a)   Termination of prior matter.— (1)   If a civil action or proceeding is timely commenced and is terminated, a party, or his successor in interest, may, notwithstanding any other provision of this subchapter, commence a new action or proceeding upon the same cause of action within one year after the termination and any other party may interpose any defense or claim which might have been interposed in the original action or proceeding. (2)   Paragraph (1) does not apply to: (i)   An action to recover damages for injury to the person or for the death of an individual caused by the wrongful act or neglect or unlawful violence or negligence of another. (ii)   An action or proceeding terminated by a voluntary nonsuit, a discontinuance, a dismissal for neglect to prosecute the action or proceeding, or a final judgment upon the merits. (b)   Stay of matter.—Where the commencement of a civil action or proceeding has been stayed by a court or by statutory prohibition, the duration of the stay is not a part of the time within which the action or proceeding must be commenced. (c)  Arbitration.—Where it shall have been finally determined by a court that a party is not obligated to submit a claim to arbitration, the time which elapsed between the demand for arbitration and the final determination by a court that there is no obligation to arbitrate is not a part of the time within which a civil action or proceeding upon such claim must be commenced. The time within which the action or proceeding must be commenced shall not be extended by this subsection beyond one year after such final determination by a court. § 5536.  Construction projects (a)  General rule.—Except as provided in subsection (b), a civil action or proceeding brought against any person lawfully performing or furnishing the design, planning, supervision or observation of construction, or construction of any improvement to real property must be commenced within 12 years after completion of construction of such improvement to recover damages for: (1)  Any deficiency in the design, planning, supervision or observation of construction or construction of the improvement. (2)   Injury to property, real or personal, arising out of any such deficiency. (3)   Injury to the person or for wrongful death arising out of any such deficiency. (4)  Contribution or indemnity for damages sustained on account of any injury mentioned in paragraph (2) or (3). (b)  Exceptions.— (1)   If an injury or wrongful death shall occur more than ten and within 12 years after completion of the improvement a civil action or proceeding within the scope of subsection (a) may be commenced within the time otherwise limited by this subchapter, but not later than 14 years after completion of construction of such improvement. (2)  The limitation prescribed by subsection (a) shall not be asserted by way of defense by any person in actual possession or control, as owner, tenant or otherwise, of such an improvement at the time any deficiency in such an improvement constitutes the proximate cause of the injury or wrongful death for which it is proposed to commence an action or proceeding.

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Part I Ch. 1–14 Brokers Part II Ch. 15–22 Deeds Part III Ch. 23–35 Mortgages Part IV Ch. 36–40 Insurance Part V Ch. 41–48A Zoning, etc. Part VI Ch. 49–56 Taxation

(c)   No extension of limitations.—This section shall not extend the period within which any civil action or proceeding may be commenced under any provision of law. § 5537.   Land surveying All actions to recover any or all damages against any person engaged in the practice of land surveying occurring as the result of any deficiency, defect, omission, error or miscalculation shall be commenced within 12 years from the time the services are performed. Any such action not commenced within this 12- year period shall be forever barred. The cause of action in such cases shall accrue when the services are performed. Furthermore, any action shall be commenced within four years from the time that such cause of action was discovered, but no later than during this 12-year limitation period. In any event, no action shall be commenced after the 12 years from the time that the services are performed. The term “practice of land surveying” shall be the same as defined under the act of May 23, 1945 (P.L. 913, No. 367, 43 P.S. 148 et seq.) known as the Engineer, Land Surveyor and Geologist Registration Law. § 5538.  Landscape architecture (a)  General rule.—All actions to recover any or all damages against any person engaged in the practice of landscape architecture occurring as the result of any deficiency defect, omission, error or miscalculation shall be commenced within 12 years from the time the services are performed. Any such action not commenced within this 12-year period shall be forever barred. The cause of action shall accrue upon substantial completion of the project. Nothing in this section shall be construed as extending the period prescribed by the laws of this Commonwealth for the bringing of any action. The term “practice of landscape architecture” shall be the same as defined in the act of January 24, 1966 (1965 P.L. 1527, No. 535), known as the Landscape Architects’ Registration Law.3 (b)  Exception.—The limitation prescribed by subsection (a) shall not be asserted by way of defense by any person in actual possession or control, as owner, tenant or otherwise, of such an improvement at the time any deficiency in such an improvement constitutes the proximate cause of the injury or wrongful death for which it is proposed to commence an action or proceeding.

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Part VII Ch. 57–63 Litigation Part VIII Ch. 64–67 L/T Part IX Ch. 68–72 Condos, etc.

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3. 63 P.S. § 901 et seq.

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CHAPTER 59 CLAIM BY ADVERSE POSSESSION 68 P.S. § 81 to 68 P.S. § 88

Sec. § § § § § § § §

81. Statement of claim under statute of limitations, by claimant out of possession 82. Form of statement 83. Executor, trustee, guardian, etc., may make statement; effect 84. Statement must be subscribed and sworn to; form of oath 85. Statement to be recorded same as deeds; effect 86. Claim invalid as against purchaser without notice if not recorded 87. Act to apply to existing claims 88. Act not to apply to claims adverse to the Commonwealth

§ 81.  Statement of claim under statute of limitations, by claimant out of possession Every person who now has or shall hereafter acquire, or does or shall claim to have acquired, title to any real estate by twenty-one years’ adverse possession, under the provisions of the act of twenty-sixth March, one thousand seven hundred and eighty-five,1 and the several supplements thereto, and shall not be in the possession of the said real estate, shall, within six months from the time of withdrawing from or being out of the said possession, file in the recorder’s office of the county where the said real estate is situate a written statement of his claim, by him subscribed and sworn to, in substance as follows, viz.: § 82.  Form of statement I, _________ (the name of the party claimant), of _______, in the county of _______ and state of _______, (or as the case may be) do hereby affirm and declare that I have acquired title in fee, by twenty-one years’ adverse possession, to the following described land, situate in _______, in the county of _______, and state of Pennsylvania, viz.: (Here insert a full and complete description of the land claimed, by metes and bounds, or other sufficient designation). Adverse entry was made upon the said land by me on or about the _______ day of _______, Anno Domini _______, and continued until about the _______ day of _______, Anno Domini _______, (or, where the possession of the claimant is tacked on to that of others who have preceded him, it should be stated as follows: Adverse entry was made upon said lands by _______ on or about the _______ day of _______, Anno Domini _______, who continued in possession until about the _______ day of _______, Anno Domini _______, and was succeeded therein by _______, who continued in possession until about the _______ day of _______ Anno Domini _______, and was succeeded therein by me, who continued in possession until about the _______ day of _______, Anno Domini _______). At the time of the said entry C.D. (naming some person or persons in the line of the existing paper or legal title, as nearly as may be the real owner of said lands at the time of such entry), was the owner or reputed owner of the said land, and I claim adversely to him (or them). Witness my hand, this _______ day of _______, Anno Domini _______. (Signed) ____________ (Claimant)

1. Act 1785, March 26, 2 Sm.L. 299, § 2 (repealed; see, now, 42 Pa.C.S. § 5530.)

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REAL ESTATE LITIGATION

Ch. 59

Part I Ch. 1–14 Brokers Part II Ch. 15–22 Deeds Part III Ch. 23–35 Mortgages Part IV Ch. 36–40 Insurance Part V Ch. 41–48A Zoning, etc. Part VI Ch. 49–56 Taxation Part VII Ch. 57–63 Litigation Part VIII Ch. 64–67 L/T

§ 83.  Executor, trustee, guardian, etc., may make statement; effect The said statement of claim shall be made by an executor, invested with the title or charged with the care and management of real estate for the estate which he represents; by a trustee, for his cestuis que trustent; for an infant, by his guardian or next friend; and for a lunatic or inebriate, by his committee. It may also be made by one heir, or devisee, for himself and his co-heirs or co-devisees; and by one joint tenant or tenant in common, for himself and his co-tenants; and, being so made, shall operate in favor of each of the said heirs, devisees, joint tenants, or tenants in common; but no such statement shall preclude any other of such heirs, devisees or co-tenants from making and recording a statement on his own behalf, according to the facts as he claims them to be. § 84.  Statement must be subscribed and sworn to; form of oath The said statement shall be subscribed and sworn to before some officer competent to administer oaths and affirmations, who shall attest the same substantially as follows, viz.: County of _______, state of _______ss. Be it remembered, that on the _______, day of _______, Anno Domini _______, before me, the subscriber, (here designate the title of the attesting officer) personally appeared A. B. (naming the claimant), who, having been duly sworn, (or affirmed) did declare and say that the facts set forth in his foregoing statement of claim are true, as he verily believes. Witness my hand and official seal, the day and year aforesaid. X. Y., Notary Public (or as the case may be). (L.S.) § 85.  Statement to be recorded same as deeds; effect The said statement of claim, on being filed in the recorder’s office of the proper county, shall be recorded and indexed as though it were a deed or conveyance from the person named therein as the owner or reputed owner at the time of the adverse entry, as grantor, to the claimant or claimants, as grantees; and when so entered for record and indexed it shall be constructive notice of the said claim. § 86.  Claim invalid as against purchaser without notice if not recorded Unless a statement of claim be made and recorded as herein provided, no title to lands by twenty-one years’ adverse possession, as aforesaid, shall avail against any purchaser, mortgagee, or judgment creditor for value, without notice, his heirs and assigns, except the claimant be in possession of such lands at the time of such purchase. § 87.  Act to apply to existing claims Any person claiming to have heretofore acquired title to lands by twenty-one years’ adverse possession, under the statute, and not now being in possession of the same, shall record his claim, in the manner hereinbefore provided, within six months after the passage of this act, or be barred as aforesaid thereby. § 88.  Act not to apply to claims adverse to the Commonwealth Nothing contained in this act shall be construed to give any title to any lands by a claim of title adverse to that of the Commonwealth of Pennsylvania, and no claim of title adverse to the Commonwealth of Pennsylvania shall be made or recorded under the provisions of this act.

Table of Contents

PART VII

Part IX Ch. 68–72 Condos, etc.

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Index

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CHAPTER 60 ATTACHMENT OF PROPERTY PRIOR TO JUDGMENT 42 P.S. § 7501

§ 7501.  Attachment of property prior to judgment (a)  General rule.—Except as otherwise provided in subsection (b) property may be attached prior to judgment in the manner and to the extent prescribed by general rule. (b)  Exemptions.—Any property exempt under Subchapter B of Chapter 81 (relating to exemptions from execution) from attachment or execution upon a judgment shall be exempt from attachment under this section. (c)  Effect of dissolution.—If an attachment is dissolved after sale of the property attached, such dissolution shall not have the effect of divesting any estate or interest acquired by virtue of such sale by a person not a party to the attachment. 1978, April 28, P.L. 202, No. 53, § 10(90), effective June 27, 1978

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Table of Contents

CHAPTER 61 42 P.S. § 7533

Part II Ch. 15–22 Deeds

§ 7533.  Construction of documents Any person interested under a deed, will, written contract, or other writings constituting a contract, or whose rights, status, or other legal relations are affected by a statute, municipal ordinance, contract, or franchise, may have determined any question of construction or validity arising under the instrument, statute, ordinance, contract, or franchise, and obtain a declaration of rights, status, or other legal relations thereunder.

Part I Ch. 1–14 Brokers

DECLARATORY RELIEF

Part III Ch. 23–35 Mortgages Part IV Ch. 36–40 Insurance Part V Ch. 41–48A Zoning, etc. Part VI Ch. 49–56 Taxation Part VII Ch. 57–63 Litigation Part VIII Ch. 64–67 L/T Part IX Ch. 68–72 Condos, etc.

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Index

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CHAPTER 62 PENNSYLVANIA UNIFORM VOIDABLE TRANSACTIONS ACT (Formerly Pennsylvania Uniform Fraudulent Transfer Act) 12 Pa.C.S. § 5101 to 12 Pa.C.S. § 51141

Sec. § § § § § § § § § § § § § §

5101. 5102. 5103. 5104. 5105. 5106. 5107. 5108. 5109. 5110. 5111. 5112. 5113. 5114.

Short title of chapter and definitions. Insolvency. Value. Transfer or obligation voidable as to present or future creditor. Transfer or obligation voidable as to present creditor. When transfer is made or obligation is incurred. Remedies of creditor. Defenses, liability and protection of transferee or obligee. Extinguishment of claim for relief. Governing law. Application to series organization. Supplementary provisions. Uniformity of application and construction. Relation to Electronic Signatures in Global and National Commerce Act.

§ 5101.  Short title of chapter and definitions (a)  Short title of chapter.—This chapter, that was formerly cited as the Pennsylvania Uniform Fraudulent Transfer Act, shall be known and may be cited as the Pennsylvania Uniform Voidable Transactions Act. (b)  Definitions.—The following words and phrases when used in this chapter shall have the meanings given to them in this subsection unless the context clearly indicates otherwise: “Asset.” Property of a debtor. The term does not include: (1)   property to the extent it is encumbered by a valid lien; (2)   property to the extent it is generally exempt under nonbankruptcy law; or (3)   an interest in property held in tenancy by the entireties to the extent it is not subject to process by a creditor holding a claim against only one tenant. “Claim.” Except as used in “claim for relief,” a right to payment, whether or not the right is reduced to judgment, liquidated, unliquidated, fixed, contingent, matured, unmatured, disputed, undisputed, legal, equitable, secured or unsecured. “Creditor.” A person that has a claim. “Debt.” Liability on a claim. “Debtor.” A person that is liable on a claim. “Electronic.” Relating to technology having electrical, digital, magnetic, wireless, optical, electromagnetic or similar capabilities. “Lien.” A charge against or an interest in property to secure payment of a debt or performance of an obligation. The term includes a security interest created by agreement, a judicial lien obtained by legal or equitable process or proceedings, a common law lien or a statutory lien. “Organization.” A person other than an individual.

1. Note: See Section 7 of Act of Dec. 22, 2017, P.L. 1249, No. 78 for special provisions relating to applicability.

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REAL ESTATE LITIGATION

Ch. 62

Part VI Ch. 49–56 Taxation Part VII Ch. 57–63 Litigation Part VIII Ch. 64–67 L/T Part IX Ch. 68–72 Condos, etc. Index

gtb-parealestate22-all.indb 1055

Part V Ch. 41–48A Zoning, etc.

1055

Part IV Ch. 36–40 Insurance

§ 5104.   Transfer or obligation voidable as to present or future creditor. (a)  General rule.—A transfer made or obligation incurred by a debtor is voidable as to a creditor, whether the creditor’s claim arose before or after the transfer was made or the obligation was incurred, if the debtor made the transfer or incurred the obligation:

Part III Ch. 23–35 Mortgages

§ 5103.  Value. (a)  General rule.—Value is given for a transfer or an obligation if, in exchange for the transfer or obligation, property is transferred or an antecedent debt is secured or satisfied, but value does not include an unperformed promise made otherwise than in the ordinary course of the promisor’s business to furnish support to the debtor or another person. (b)   Reasonably equivalent value.—For the purposes of sections 5104(a)(2) (relating to transfer or obligation voidable as to present or future creditor) and 5105 (relating to transfer or obligation voidable as to present creditor), a person gives reasonably equivalent value if the person acquires an interest of the debtor in an asset pursuant to a regularly conducted, noncollusive foreclosure sale or the exercise of a power of sale for the acquisition or disposition of the interest of the debtor upon default under a mortgage, deed of trust or security agreement or pursuant to a regularly conducted, noncollusive execution sale.

Part II Ch. 15–22 Deeds

§ 5102.  Insolvency. (a)  General rule.—A debtor is insolvent if, at fair valuation, the sum of the debtor’s debts is greater than the sum of the debtor’s assets. (b)   Presumption of insolvency.—A debtor that is generally not paying the debtor’s debts as they become due other than as a result of a bona fide dispute is presumed to be insolvent. The presumption imposes on the party against which the presumption is directed the burden of proving that the nonexistence of insolvency is more probable than its existence. (c)   Exclusion of certain assets.—Assets under this section do not include property that has been transferred, concealed or removed with intent to hinder, delay or defraud creditors or that has been transferred in a manner making the transfer voidable under this chapter. (d)  Exclusion of certain debts.—Debts under this section do not include an obligation to the extent it is secured by a valid lien on property of the debtor not included as an asset. (e)   Exclusion of certain debts.—((e) relettered to (d)).

Part I Ch. 1–14 Brokers

“Person.” An individual, partnership, estate, business or nonprofit entity, public corporation, government or governmental subdivision, agency, trust or instrumentality or other legal entity. “Property.” Anything that may be the subject of ownership. “Record.” Information that is inscribed on a tangible medium or that is stored in an electronic or other medium and is retrievable in perceivable form. “Sign.” With present intent to authenticate or adopt a record: (1)   to execute or adopt a tangible symbol; or (2)   to attach to or logically associate with the record an electronic symbol, sound or process. “Transfer.” Every mode, direct or indirect, absolute or conditional, voluntary or involuntary, of disposing of or parting with an asset or an interest in an asset. The term includes payment of money, release, lease, license and creation of a lien or other encumbrance. “Valid lien.” A lien that is effective against the holder of a judicial lien subsequently obtained by legal or equitable process or proceedings.

Table of Contents

PART VII

12/22/21 10:45 AM

§ 5105 or

UNIFORM VOIDABLE TRANSACTIONS ACT

(1)   with actual intent to hinder, delay or defraud any creditor of the debtor;

(2)  without receiving a reasonably equivalent value in exchange for the transfer or obligation, and the debtor: (i)   was engaged or was about to engage in a business or a transaction for which the remaining assets of the debtor were unreasonably small in relation to the business or transaction; or (ii)  intended to incur, or believed or reasonably should have believed that the debtor would incur, debts beyond the debtor’s ability to pay as they became due. (b)  Certain factors.—In determining actual intent under subsection (a)(1), consideration may be given, among other factors, to whether: (1)   the transfer or obligation was to an insider; (2)  the debtor retained possession or control of the property transferred after the transfer; (3)   the transfer or obligation was disclosed or concealed; (4)   before the transfer was made or obligation was incurred, the debtor had been sued or threatened with suit; (5)   the transfer was of substantially all the debtor’s assets; (6)   the debtor absconded; (7)   the debtor removed or concealed assets; (8)  the value of the consideration received by the debtor was reasonably equivalent to the value of the asset transferred or the amount of the obligation incurred; (9)   the debtor was insolvent or became insolvent shortly after the transfer was made or the obligation was incurred; (10)   the transfer occurred shortly before or shortly after a substantial debt was incurred; and (11)   the debtor transferred the essential assets of the business to a lienor who transferred the assets to an insider of the debtor. (c)   Burden of proof.—A creditor making a claim for relief under subsection (a) has the burden of proving the elements of the claim for relief by a preponderance of the evidence. § 5105.   Transfer or obligation voidable as to present creditor. (a)  General rule.—A transfer made or obligation incurred by a debtor is voidable as to a creditor whose claim arose before the transfer was made or the obligation was incurred if the debtor made the transfer or incurred the obligation without receiving a reasonably equivalent value in exchange for the transfer or obligation and the debtor was insolvent at that time or the debtor became insolvent as a result of the transfer or obligation. (b)   Burden of proof.—Subject to section 5102(b) (relating to insolvency), a creditor making a claim for relief under subsection (a) has the burden of proving the elements of the claim for relief by a preponderance of the evidence. § 5106.   When transfer is made or obligation is incurred. For the purposes of this chapter: (1)   A transfer is made: (i)   with respect to an asset that is real property other than a fixture, but including the interest of a seller or purchaser under a contract for the sale of the asset, when the transfer is so far perfected that a good faith purchaser of the asset from the debtor against which applicable law permits the transfer

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REAL ESTATE LITIGATION

Ch. 62

Part III Ch. 23–35 Mortgages Part IV Ch. 36–40 Insurance Part V Ch. 41–48A Zoning, etc. Part VI Ch. 49–56 Taxation Part VII Ch. 57–63 Litigation Part VIII Ch. 64–67 L/T Part IX Ch. 68–72 Condos, etc. Index

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Part II Ch. 15–22 Deeds

1057

Part I Ch. 1–14 Brokers

to be perfected cannot acquire an interest in the asset that is superior to the interest of the transferee; and (ii)   with respect to an asset that is not real property or that is a fixture, when the transfer is so far perfected that a creditor on a simple contract cannot acquire a judicial lien otherwise than under this chapter that is superior to the interest of the transferee. (2)  If applicable law permits the transfer to be perfected as provided in paragraph (1) and the transfer is not so perfected before the commencement of an action for relief under this chapter, the transfer is made immediately before the commencement of the action. (3)   If applicable law does not permit the transfer to be perfected as provided in paragraph (1), the transfer is made when it becomes effective between the debtor and the transferee. (4)   A transfer is not made until the debtor has acquired rights in the asset transferred. (5)   An obligation is incurred: (i)   if oral, when it becomes effective between the parties; or (ii)  if evidenced by a record, when the record signed by the obligor is delivered to or for the benefit of the obligee. § 5107.   Remedies of creditor. (a)  Available remedies.—In an action for relief against a transfer or obligation under this chapter, a creditor, subject to the limitations in sections 5108 (relating to defenses, liability and protection of transferee or obligee) and 5109 (relating to extinguishment of claim for relief), may obtain: (1)   Avoidance of the transfer or obligation to the extent necessary to satisfy the creditor’s claim. (2)   An attachment or other provisional remedy against the asset transferred or other property of the transferee if available under applicable law. (3)  Subject to applicable principles of equity and in accordance with applicable rules of civil procedure: (i)   an injunction against further disposition by the debtor or a transferee, or both, of the asset transferred or of other property; (ii)   appointment of a receiver to take charge of the asset transferred or of other property of the transferee; or (iii)   any other relief the circumstances may require. (b)  Execution.—If a creditor has obtained a judgment on a claim against the debtor, the creditor, if the court so orders, subject to the limitations of sections 5108 and 5109, may levy execution on the asset transferred or its proceeds. § 5108.   Defenses, liability and protection of transferee or obligee. (a)   Certain transfers or obligations not voidable.—A transfer or obligation is not voidable under section 5104(a)(1) (relating to transfer or obligation voidable as to present or future creditor) against a person that took in good faith and for a reasonably equivalent value given the debtor or against any subsequent transferee or obligee. (b)   Judgment for certain voidable transfers.—To the extent a transfer is avoidable in an action by a creditor under section 5107(a)(1) (relating to remedies of creditor), the following rules apply: (1)   Except as otherwise provided in this section, the creditor may recover judgment for the value of the asset transferred, as adjusted under subsection (c), or the amount necessary to satisfy the creditor’s claim, whichever is less. The judgment may be entered against:

Table of Contents

PART VII

12/22/21 10:45 AM

§ 5109

UNIFORM VOIDABLE TRANSACTIONS ACT

(i)  the first transferee of the asset or the person for whose benefit the transfer was made; or (ii)   an immediate or mediate transferee of the first transferee, other than: (A)   a good faith transferee that took for value; or (B)   an immediate or mediate good faith transferee of a person described in clause (A). (2)   Recovery under section 5107(a)(1) or (b) of or from the asset transferred or its proceeds, by levy or otherwise, is available only against a person described in paragraph (1). (c)  Measure of recovery.—If the judgment under subsection (b) is based upon the value of the asset transferred, the judgment must be for an amount equal to the value of the asset at the time of the transfer, subject to adjustment as the equities may require. (d)  Rights of good faith transferee or obligee.—Notwithstanding voidability of a transfer or an obligation under this chapter, a good faith transferee or obligee is entitled, to the extent of the value given the debtor for the transfer or obligation, to: (1)   a lien on or a right to retain an interest in the asset transferred; (2)   enforcement of an obligation incurred; or (3)   a reduction in the amount of the liability on the judgment. (e)   Certain transfers not voidable.—A transfer is not voidable under section 5104(a)(2) or 5105 (relating to transfer or obligation voidable as to present creditor) if the transfer results from: (1)   termination of a lease upon default by the debtor when the termination is pursuant to the lease and applicable law; or (2)  enforcement of a security interest in compliance with 13 Pa.C.S. Div. 9 (relating to secured transactions), other than an acceptance of collateral in full or partial satisfaction of the obligations it secures under 13 Pa.C.S. § 9620 (relating to acceptance of collateral in full or partial satisfaction of obligation; compulsory disposition of collateral). The references to 13 Pa.C.S. Div. 9 and 13 Pa.C.S. § 9620 in paragraph (2) shall also be deemed to refer to the corresponding provisions of the Uniform Commercial Code as in effect in any other jurisdiction. (f)   Burden of proof.—The following rules determine the burden of proving matters referred to in this section: (1)   A party that seeks to invoke subsection (a), (d) or (e) has the burden of proving the applicability of that subsection. (2)   Except as otherwise provided in paragraphs (3) and (4), the creditor has the burden of proving each applicable element of subsection (b) or (c). (3)   The transferee has the burden of proving the applicability to the transferee of subsection (b)(1)(ii)(A) or (B). (4)   A party that seeks adjustment under subsection (c) has the burden of proving the adjustment. (g)   Standard of proof.—The standard of proof required to establish matters referred to in this section is preponderance of the evidence. § 5109.   Extinguishment of claim for relief. A claim for relief with respect to a transfer or obligation under this chapter is extinguished unless action is brought: (1)   under section 5104(a)(1) (relating to transfer or obligation voidable as to present or future creditor), not later than four years after the transfer was

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REAL ESTATE LITIGATION

Ch. 62

(2)  under section 5104(a)(2) or 5105(a) (relating to transfer or obligation voidable as to present creditor), not later than four years after the transfer was made or the obligation was incurred.

(1)  A debtor who is an individual is located at the individual’s principal residence.

(3)   A debtor that is an organization and has more than one place of business is located at the organization’s chief executive office.

(b)  Definitions.—As used in this section, the following words and phrases shall have the meanings given to them in this subsection unless the context clearly indicates otherwise:

“Series organization.” An organization that, pursuant to the law under which the organization is organized, has the following characteristics:

§ 5112.   Supplementary provisions. Unless displaced by the provisions of this chapter, the principles of law and equity, including the law merchant and the law relating to principal and agent, estoppel, laches, fraud, misrepresentation, duress, coercion, mistake, insolvency or other validating or invalidating cause, supplement its provisions.

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Index

1059

Part IX Ch. 68–72 Condos, etc.

(3)  Debt incurred or existing with respect to the activities or property of the organization is enforceable against the property of the organization only and not against the property of or associated with a protected series of the organization.

Part VIII Ch. 64–67 L/T

(2)   Debt incurred or existing with respect to the activities of, or property of or associated with, a particular protected series is enforceable against the property of or associated with the protected series only, and not against the property of or associated with the organization or other protected series of the organization.

Part VII Ch. 57–63 Litigation

(1)   The organic record of the organization provides for creation by the organization of one or more protected series, however denominated, with respect to specified property of the organization, and for records to be maintained for each protected series that identifies the property of or associated with the protected series.

Part VI Ch. 49–56 Taxation

“Protected series.” An arrangement, however denominated, created by a series organization that, pursuant to the law under which the series organization is organized, has the characteristics specified for a series organization.

Part V Ch. 41–48A Zoning, etc.

§ 5111.   Application to series organization. (a)  Separate person.—A series organization and a protected series of the series organization is a separate person for purposes of this chapter, even if for other purposes a protected series is not a person separate from the series organization or other protected series of the series organization.

Part IV Ch. 36–40 Insurance

(b)  Governing law.—A claim for relief in the nature of a claim for relief under this chapter is governed by the local law of the jurisdiction in which the debtor is located when the transfer is made or the obligation is incurred.

Part III Ch. 23–35 Mortgages

(2)   A debtor that is an organization and has only one place of business is located at the organization’s place of business.

Part II Ch. 15–22 Deeds

§ 5110.   Governing law. (a)  Location of debtor.—In this section, the following rules determine a debtor’s location:

Part I Ch. 1–14 Brokers

made or the obligation was incurred or, if later, not later than one year after the transfer or obligation was or could reasonably have been discovered by the claimant; or

Table of Contents

PART VII

12/22/21 10:45 AM

§ 5113

UNIFORM VOIDABLE TRANSACTIONS ACT

§ 5113.   Uniformity of application and construction. This chapter shall be applied and construed to effectuate its general purpose to make uniform the law with respect to the subject of this chapter among states enacting it. § 5114.   Relation to Electronic Signatures in Global and National Commerce Act. This chapter modifies, limits or supersedes the Electronic Signatures in Global and National Commerce Act (Public Law 106-229, 15 U.S.C. § 7001 et seq.), but does not modify, limit or supersede section 101(c) of the Electronic Signatures in Global and National Commerce Act or authorize electronic delivery of a notice described in section 103(b) of the Electronic Signatures in Global and National Commerce Act.

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Table of Contents

CHAPTER 63 42 Pa. C.S. § 8103

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Index

1061

Part IX Ch. 68–72 Condos, etc.

(5)  After the hearing, if any, and the determination by the court under paragraph (1), (2) or (4) of the fair market value of the property sold, then, except as otherwise provided in subsection (f), the debtor shall be released and discharged of such liability to the judgment creditor to the extent of the fair market value of said property determined by the court, less the amount of all prior liens, costs, taxes and municipal claims not discharged by the sale,

Part VIII Ch. 64–67 L/T

(4)   If an answer is filed and testimony produced setting forth that the fair market value of the property is more than the value stated in the petition, the court shall hear evidence of and determine and fix the fair market value of the property sold.

Part VII Ch. 57–63 Litigation

(3)  If an answer is filed alleging as the fair market value an amount in excess of the fair market value of the property as averred in the petition, the judgment creditor may agree to accept as the fair market value of the property the value set up in the answer and in such case may file a stipulation releasing the debtors and the owners of the property affected thereby, from personal liability to the judgment creditor to the extent of the fair market value as averred in the answer, less the amount of any prior liens, costs, taxes and municipal claims not discharged by the sale, and also less the amount of any such items paid at distribution on the sale.

Part VI Ch. 49–56 Taxation

(2)   If an answer is filed controverting the averment in the petition as to the fair market value of the property, but no testimony is produced at the hearing supporting such denial of the fair market value, the court shall determine and fix as the fair market value of the property sold the amount thereof alleged in the petition to be the fair market value.

Part V Ch. 41–48A Zoning, etc.

(1)  If no answer is filed within the time prescribed by general rule, or if an answer is filed which does not controvert the allegation of the fair market value of the property as averred in the petition, the court shall determine and fix as the fair market value of the property sold the amount thereof alleged in the petition to be the fair market value.

Part IV Ch. 36–40 Insurance

(c)   Action on petition.—

Part III Ch. 23–35 Mortgages

(b)  Effect of failure to give notice.—Any debtor and any owner of the property affected thereby, who is neither named in the petition nor served with a copy thereof or notice of the filing thereof as prescribed by general rule, shall be deemed to be discharged from all personal liability to the judgment creditor on the debt, interest and costs, but any such failure to name such person in the petition or to serve the petition or notice of the filing thereof shall not prevent proceedings against any respondent named and served.

Part II Ch. 15–22 Deeds

§ 8103.  Deficiency judgments (a)  General rule.—Whenever any real property is sold, directly or indirectly, to the judgment creditor in execution proceedings and the price for which such property has been sold is not sufficient to satisfy the amount of the judgment, interest and costs and the judgment creditor seeks to collect the balance due on said judgment, interest and costs, the judgment creditor shall petition the court to fix the fair market value of the real property sold. The petition shall be filed as a supplementary proceeding in the matter in which the judgment was entered. If the judgment was transferred from the county in which it was entered to the county where the execution sale was held, the judgment shall be deemed entered in the county in which the sale took place.

Part I Ch. 1–14 Brokers

DEFICIENCY JUDGMENTS

12/22/21 10:45 AM

§ 8103

DEFICIENCY JUDGMENTS

and also less the amount of any such items paid at the distribution on the sale, and shall also be released and discharged of such liability to the extent of any amount by which the sale price, less such prior liens, costs, taxes and municipal claims, exceeds the fair market value as agreed to by the judgment creditor or fixed and determined by the court as provided in this subsection, and thereupon the judgment creditor may proceed by appropriate proceedings to collect the balance of the debt. (d)  Action in absence of petition.—If the judgment creditor shall fail to present a petition to fix the fair market value of the real property sold within the time after the sale of such real property provided by section 5522 (relating to six months limitation), the debtor, obligor, guarantor or any other person liable directly or indirectly to the judgment creditor for the payment of the debt, or any person interested in any real estate which would, except for the provisions of this section, be bound by the judgment, may file a petition, as a supplementary proceeding in the matter in which the judgment was entered, in the court having jurisdiction, setting forth the fact of the sale, and that no petition has been filed within the time limited by section 5522 to fix the fair market value of the property sold, whereupon the court, after notice as prescribed by general rule, and being satisfied of such facts, shall direct the clerk to mark the judgment satisfied, released and discharged. (e)  Waiver of benefit of section prohibited.—Any agreement made by any debtor at any time, either before or after or at the time of incurring any obligation, to waive the benefits of this section or to release any obligee from compliance with the provisions hereof shall be void. (f)  Certain special allocations.—Notwithstanding the provisions of subsection (c)(5), if the judgment creditor is a nonconsumer judgment creditor and: (1)  if the judgment has been entered with respect to a partial recourse obligation, the fair market value of the property, determined as provided in subsection (c) will be applied first to discharge, as provided in subsection (c) (5), all liability for the nonrecourse portion of the obligation before any portion of such value is applied to discharge any liability for the recourse portion of the obligation; and (2)   if the judgment has been entered with respect to an obligation of which only a portion is guaranteed, the fair market value of the property determined as provided in subsection (c) will be applied first to discharge, as provided in subsection (c), all liability for the portion of the obligation which is not guaranteed before any portion of such value is applied to discharge any liability for the portion of such obligation which is guaranteed. (f.1)   Collateral located in more than one county.— (1)   If the real property collateral is located in more than one county in this Commonwealth, a judgment creditor may elect not to file a valuation petition in the court in each of such counties as provided under subsection (a) and shall not be subject to the penalties for failure to file the petition under subsection (d) if the judgment creditor is a nonconsumer judgment creditor and the provisions of paragraphs (2) and (3) are satisfied. (2)   The judgment creditor shall petition the deficiency court to determine and fix the fair market value of all of the real property collateral as provided under subsection (c)(1), (2), (3) and (4). The value shall be determined on a parcel-by-parcel basis, and the amount so fixed for each parcel comprising the real property collateral shall be the fair market value for the parcel for all purposes under this subsection unless redetermined as provided in paragraph (4).

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REAL ESTATE LITIGATION

Ch. 63

Part III Ch. 23–35 Mortgages Part IV Ch. 36–40 Insurance Part V Ch. 41–48A Zoning, etc. Part VI Ch. 49–56 Taxation Part VII Ch. 57–63 Litigation Part VIII Ch. 64–67 L/T Part IX Ch. 68–72 Condos, etc. Index

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Part II Ch. 15–22 Deeds

1063

Part I Ch. 1–14 Brokers

(3)   The determination of the fair market value of the real property collateral by the deficiency court as provided in paragraph (2) shall be made before an execution sale is held with respect to any of the real property collateral. (4)(i)   If the execution sale of a parcel of real property is concluded and the judgment creditor is the purchaser of the parcel at the sale, then either the judgment creditor or the debtor may file a petition with the deficiency court seeking a redetermination of the fair market value of the parcel provided the petition is filed within the six-month period established under section 5522(b)(6). (ii)   If the petition is filed in a timely manner, the deficiency court shall redetermine the fair market value of the parcel in the manner provided in subsection (c)(1), (2), (3) and (4). The redetermined value shall be the fair market value of the parcel for all purposes under this subsection. (iii)   The filing of the petition for the redetermination shall not limit or affect the judgment creditor’s ability to execute on the real property collateral unless and until the value is redetermined by the court. However, where the debtor alleges in its petition that an appropriate redetermination of value by the court with respect to property that has already been sold to the judgment creditor at an execution sale would be sufficient to satisfy the judgment in full, the deficiency court may issue a stay of further execution proceedings pending the court’s ruling on the petition for redetermination of value. (5)  In cases subject to this subsection, the debtor shall be released and discharged from liability for the payment of the debt in the manner provided in subsection (c)(5) to the extent of: (i)  the fair market value determined by the deficiency court of all real property collateral purchased by the judgment creditor in execution proceedings on the judgment less the deductible items described in subsection (c) (5); and (ii)   the amount distributed to the judgment creditor as a result of the sale of the real property collateral purchased in the proceedings by third parties. (f.2)  Foreign collateral.— (1)  No deficiency court shall have the power to fix the fair market value of real property located outside this Commonwealth and may not take into account the value of that property in considering whether or not a deficiency exists under this section. (2)  This section shall not apply to the sale of any real property located outside this Commonwealth. (g)  Definitions.—As used in this section, the following words and phrases shall have the meanings given to them in this subsection: “Adjusted value.” The assessed value of a parcel of real property collateral determined for real estate tax purposes times the applicable common level ratio factor published by the State Tax Equalization Board. “Consumer credit transaction.” A credit transaction in which the party to whom credit is offered or extended is a natural person and the money, property or services which are the subject of the transaction are primarily for personal, family or household purposes. “Debtor.” A debtor, obligor, guarantor, surety and any other person liable directly or indirectly to a judgment creditor for the payment of a debt. “Deficiency court.” With respect to cases covered by subsection (f.1), the court of common pleas located in the county where the highest adjusted value land is located. “Highest adjusted value land.” The real property collateral located in a county that has a higher aggregate adjusted value than real property collateral located in any other county.

Table of Contents

PART VII

12/22/21 10:45 AM

§ 8103

DEFICIENCY JUDGMENTS

“Judgment.” The judgment which was enforced by the execution proceedings referred to in subsection (a), whether that judgment is a judgment in personam such as a judgment requiring the payment of money or a judgment de terris or in rem such as a judgment entered in an action of mortgage foreclosure or a judgment entered in an action or proceeding upon a mechanic’s lien, a municipal claim, a tax lien or a charge on land. “Judgment creditor.” The holder of the judgment which was enforced by the execution proceedings. “Nonconsumer judgment creditor.” Any judgment creditor except a judgment creditor whose judgment was entered with respect to a consumer credit transaction. “Nonrecourse portion of the obligation.” The portion as to which the judgment creditor’s recourse is limited to the mortgaged property or other specified assets of the debtor which are less than all of such assets. “Partial recourse obligation.” An obligation which includes both a nonrecourse portion and a recourse portion. “Real property collateral.” All of the real property subject to a lien securing the obligation evidenced by the judgment and located within this Commonwealth. “Recourse portion of the obligation.” All of the obligation except the nonrecourse portion thereof. “Valuation petition.” A petition to fix the fair market value of real property sold as required by subsection (a).

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Table of Contents

PART VIII

64.  Landlord and Tenant Act of 1951 65. Philadelphia Municipal Court Rules of Civil Practice 66. Rules of Civil Procedure for Magisterial District Judges 67.  Attachment of Wages, Salary and Commissions under Section 8127(a)(3.1) of the Judicial Code (Landlord/Tenant)

CHAPTER 64

Part III Ch. 23–35 Mortgages

LANDLORD AND TENANT ACT OF 1951 68 P.S. § 250.101 to 68 P.S. § 250.602

Article I Preliminary Provisions

Part IV Ch. 36–40 Insurance

Sec. § § § § §

101. Short title 102. Definitions 103. Provisions excluded from act 104. Rights of persons acquiring title by descent or purchase 105. Sublessees

This act shall be known and may be cited as “The Landlord and Tenant Act of 1951.” As used in this act— “Justice of the peace” means district justices, aldermen, magistrates or any other court having jurisdiction over landlord and tenant matters, excluding a court of common pleas.

“Mobile home space” means a plot of ground within a mobile home park designed for the accommodation of one mobile home.

“Personal property” means goods and chattels, including fixtures and buildings erected by the tenant and which he has the right to remove, agricultural crops, whether harvested or growing, and livestock and poultry.

Index

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Part IX Ch. 68–72 Condos, etc.

“Person” means natural persons, copartnerships, associations, private and public corporations, authorities, fiduciaries, the United States and any other country and their respective governmental agencies, this Commonwealth and any other state and their respective political subdivisions and agencies.

Part VIII Ch. 64–67 L/T

“Mobile home resident” or “resident” means an owner of a mobile home who leases or rents space in a mobile home park. The term does not include a person who rents or leases a mobile home.

Part VII Ch. 57–63 Litigation

“Mobile home park” means any site, lot, field or tract of land, privately or publicly owned or operated, upon which three or more mobile homes occupied for dwelling or sleeping purposes are or are intended to be located, regardless of whether or not a charge is made for such accommodation.

Part VI Ch. 49–56 Taxation

§ 102.  Definitions

Part V Ch. 41–48A Zoning, etc.

§ 101.  Short title

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Part II Ch. 15–22 Deeds

Chapter Chapter Chapter Chapter



Part I Ch. 1–14 Brokers

LANDLORD AND TENANT

12/22/21 10:45 AM

§ 103

LANDLORD AND TENANT ACT OF 1951

“Real property” means messuages, lands, tenements, real estate, buildings, parts thereof or any estate or interest therein and shall include any personalty on real property which is demised with the real property. “Tenants” organization or association” means a group of tenants organized for any purpose directly related to their rights or duties as tenants. § 103.  Provisions excluded from act Nothing contained in this act shall be construed to include or in any manner repeal or modify any existing law— (1)   Providing for preference of rent in case personal property liable to distress is taken and sold by virtue of any execution and providing for the payment of such rent from the proceeds of such execution; (2)   Denying to a plaintiff the right to stay an execution without the consent of the landlord having a preference for rent due payable from the proceeds of such execution; (3)  Providing that a sale on distress shall be stayed where the personal property distrained upon is levied upon by a sheriff or where a receiver or a trustee or receiver in bankruptcy is appointed for the person whose property was distrained, and providing for a lien for the rent or the proceeds of the sale of such personal property by such officer and the payment of such rent, together with the costs of executing the landlord’s warrant, from the proceeds of such sale; (4)   Providing for preference of rent in cases of insolvency and assignment for the benefit of creditors and in bankruptcy proceedings; (5)   Providing for preference of rent in the settlement of estates of decedents; (6)  Fixing the liability of the tenant to pay taxes assessed against real property occupied by him and permitting the tenant to recover the amount of the tax so paid from the landlord or to defalcate such amount against rent due or becoming due; (7)   Providing for the issuing of writs of estrepement to stay waste committed by a tenant or by others allowed by a tenant to commit waste and for the procedure in such cases; (8)   Fixing the duties and liabilities of tenants and the rights of landlords in connection with actions of ejectment brought by third parties; (9)  Prescribing special proceedings for the obtaining of possession of real property purchased at tax or judicial sales and providing for and defining the rights, remedies, duties and liabilities of such purchasers and tenants affected thereby; (10)   Except as herein specially provided, fixing fees of justices of the peace, aldermen, magistrates, sheriffs or constables in any proceedings affecting the relationship of landlord and tenant. § 104.  Rights of persons acquiring title by descent or purchase Any person who acquires title to real property by descent or purchase shall be liable to the same duties and shall have the same rights, powers and remedies in relation to the property as the person from whom title was acquired. § 105.  Sublessees Any person who is a sublessee shall be subject to the provisions of the lease between the lessor and the lessee.

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LANDLORD AND TENANT

Ch. 64

Part I Ch. 1–14 Brokers

Article II Creation of Leases; Statute of Frauds; Mortgaging of Leaseholds Sec.

201.  Leases for not more than three years 202.  Leases for more than three years 203.  Assignment, grant and surrender of leases to be in writing; exception 204.  Mortgaging of leaseholds 205.  Participation in Tenants’ Association 206.  Statement of Escrowed Funds

Part II Ch. 15–22 Deeds

§ § § § § §

§ 201.  Leases for not more than three years

§ 202.  Leases for more than three years

§ 204.  Mortgaging of leaseholds

Any such mortgaging of the tenant’s interest and title shall have the same effect with respect to lien, notice, evidence and priority of payment as is provided by law in the case of the mortgaging of a freehold interest and title.

Index

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Part IX Ch. 68–72 Condos, etc.

Any such mortgage of a tenant’s interest and title may be enforced in the same

Part VIII Ch. 64–67 L/T

Any such mortgage shall be acknowledged and placed on record in the proper county, together with the lease or a memorandum thereof complying with the provisions of the act of June 2, 1959 (P.L. 454),1 as in the case of mortgages on freehold interests. If the lease or such a memorandum thereof shall have been recorded in the office of the recorder of deeds of the proper county before the time of the recording of the mortgage in lieu of being recorded together with the mortgage, such recording of the lease or memorandum shall be deemed sufficient compliance with this section if full and distinct reference is made in said mortgage to (a) the book and page where the lease or such memorandum is recorded, or (b) the date of recording and instrument number or other identifying number with respect to the recording of such lease or memorandum.

Part VII Ch. 57–63 Litigation

Every tenant of real property may mortgage his lease or term in the demised premises, together with all buildings, fixtures and machinery thereon and appurtenant thereto belonging to the tenant, except as otherwise limited or prohibited by the terms of his lease.

Part VI Ch. 49–56 Taxation

No lease of any real property made or created for a term of more than three years shall be assigned, granted or surrendered except in writing signed by the party assigning, granting or surrendering the same or his agent, unless such assigning, granting or surrendering shall result from operation of law.

Part V Ch. 41–48A Zoning, etc.

§ 203.  Assignment, grant and surrender of leases to be in writing; exception

Part IV Ch. 36–40 Insurance

Real property, including any personal property thereon, may be leased for a term of more than three years by a landlord to a tenant or by their respective agents lawfully authorized in writing. Any such lease must be in writing and signed by the parties making or creating the same, otherwise it shall have the force and effect of a lease at will only and shall not be given any greater force or effect either in law or equity, notwithstanding any consideration therefor, unless the tenancy has continued for more than one year and the landlord and tenant have recognized its rightful existence by claiming and admitting liability for the rent, in which case the tenancy shall become one from year to year.

Part III Ch. 23–35 Mortgages

Real property, including any personal property thereon, may be leased for a term of not more than three years by a landlord or his agent to a tenant or his agent, by oral or written contract or agreement.

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Table of Contents

PART VIII

12/22/21 10:45 AM

§ 205

LANDLORD AND TENANT ACT OF 1951

manner as mortgages on freehold interests. No such mortgage shall in any wise interfere with the landlord’s rights, priority or remedies for rent. As used in this section, the word “tenant” shall include a subtenant holding under a sublease from a tenant under a prime lease from the owner or from a subtenant under a sublease provided that the prime lease and the intervening subleases, if any, or memoranda thereof complying with the provisions of the act of June 2, 19591 shall have been recorded in the office of the recorder of deeds of the proper county at or before the time of recording of the sublease to such subtenant. As applied to a mortgage made by a subtenant, the word “lease” wherever used in this section shall mean sublease. § 205.  Participation in Tenants’ Association No individual unit lease on residential property shall be terminated or nonrenewed on the basis of the participation of any tenant or member of the tenant’s family in a tenants’ organization or association. § 206.  Statement of Escrowed Funds Whenever an agency or department certifies that a dwelling is uninhabitable and a tenant elects to pay rent into an escrow account established under the act of January 24, 1966 (1965 P.L. 1534, No. 536), referred to as the City Rent Withholding Act,2 it shall be the duty of the certifying agency or department to submit a monthly statement of escrowed funds to the landlord affected by first class mail.

Article III Recovery of Rent By Assumpsit and Distress Sec. § § § § § § § § § § § § §

301.  Recovery of rent by assumpsit 302.  Power to distrain for rent; notice 303.  Collection of rent in special cases 304.  Collection of rent by purchasers at sheriff’s and judicial sales 305.  Distress of property fraudulently removed 306.  Replevin by tenant or owner 307.  Proceeding by tenant to determine set-off 308.  Appraisement of property levied upon 309.  Sale and notice thereof; distribution of proceeds 310.  Rights of purchasers of growing agricultural crops 311.  Damages for removal of property distrained on 312.  Remedy in cases of improper distress 313.  Remedy where distress and sale made and no rent due

§ 301.  Recovery of rent by assumpsit Any landlord may recover from a tenant rent in arrears in an action of assumpsit as debts of similar amount are by law recoverable. In any such action, interest at the legal rate on the amount of rent due may be allowed if deemed equitable under the circumstances of the particular case. § 302.  Power to distrain for rent; notice Personal property located upon premises occupied by a tenant shall, unless exempted by article four of this act,3 be subject to distress for any rent reserved and due. Such distress may be made by the landlord or by his agent duly authorized thereto in writing. Such distress may be made on any day, except Sunday, 1. 21 P.S. § 404 et seq. 2. 35 P.S. § 1700-1. 3. 68 P.S. § 250.401 et seq.

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LANDLORD AND TENANT

Ch. 64

Part V Ch. 41–48A Zoning, etc. Part VI Ch. 49–56 Taxation Part VII Ch. 57–63 Litigation Part VIII Ch. 64–67 L/T Part IX Ch. 68–72 Condos, etc. Index

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Part IV Ch. 36–40 Insurance

1069

Part III Ch. 23–35 Mortgages

§ 304.  Collection of rent by purchasers at sheriff’s and judicial sales In the case of a tenant whose right of possession is not paramount to that of the purchaser at a sheriff’s or other judicial sale, the latter shall have the right as a landlord to collect by assumpsit or to distrain for rent from the date of the acknowledgment of his deed, except for such fractional part of a quarter as the tenant, if a farmer or one engaged in raising crops or produce, or such fractional part of a month in other cases, as the tenant may, in accordance with the terms of his letting, have paid as an advance payment prior to the date of the acknowledgment of said deed. In the case of a tenant whose right of possession is paramount to that of such purchaser, advance rent paid prior to the date of acknowledgment of the purchaser’s deed shall be deemed properly paid though paid prior to its due date, unless it is so paid with the actual notice of the pendency of the proceedings resulting in the sale or with intent to defeat the rights of a purchaser thereat. The right of possession of a tenant for years shall not be deemed paramount to that of a purchaser at a tax sale. The right of possession of a tenant shall be deemed paramount to that of a purchaser at a judicial sale if and only if the letting to him shall precede in point of date the entry of the judgment, order or decree on which such sale was

Part II Ch. 15–22 Deeds

§ 303.  Collection of rent in special cases (a)  The following persons shall have the right to collect all rent due by assumpsit or by distraint on personal property located on the real property subject to such rent: (1)   The owner of a ground rent; (2)   The personal representative of a deceased landlord or deceased tenant for life who has demised the real property subject to his estate, or a deceased landlord whose real property has escheated to the Commonwealth, whether such rent accrued prior to or after the death of the decedent and until the termination of the administration of the estate; (3)   The escheator appointed for the purpose of collecting rents; (4)   The spouse of a deceased landlord to whom real property has been set aside as his or her allowance by law; and, (5)  A widow who is the party named in a deed, agreement or decree of court under which a charge is made upon such real estate for the payment of instalments of dower. (b)   Any person given the right by this section to collect and distrain for rent shall be deemed for the purposes of this article to be a landlord.

Part I Ch. 1–14 Brokers

between the hours of seven ante meridian and seven post meridian and not at any other time, except where the tenant through his act prevents the execution of the warrant during such hours. Notice in writing of such distress, stating the cause of such taking, specifying the date of levy and the personal property distrained sufficiently to inform the tenant or owner what personal property is distrained and the amount of rent in arrears, shall be given, within five days after making the distress, to the tenant and any other owner known to the landlord, personally, or by mailing the same to the tenant or any other owner at the premises, or by posting the same conspicuously on the premises charged with the rent. A landlord or such agent may also, in the manner above provided, distrain personal property located on the premises but only that belonging to the tenant, for arrears of rent due on any lease which has ended and terminated, if such distress is made during the continuance of the landlord’s title or interest in the property.

Table of Contents

PART VIII

12/22/21 10:45 AM

§ 305

LANDLORD AND TENANT ACT OF 1951

had and also shall precede the recording or registering of the mortgage, deed or will, if any, through which by legal proceedings the purchaser derives title, and shall not be paramount if the letting is made with actual notice to such tenant of the contemplated entry of such judgment, order or decree or of the fact of the execution of such mortgage, deed or other instrument of writing and with intent to avoid the effect thereof. § 305.  Distress of property fraudulently removed In case any tenant of any real property shall fraudulently or clandestinely remove from the demised premises his personal property with intent to prevent the landlord from distraining the same for arrears of rent, it shall be lawful for the landlord or his agent, within the space of thirty days next ensuing such removal, to take and seize such personal property, wherever the same may be found, in distress for said arrears of rent and to proceed to sell the same, as hereinafter provided, as if the personal property had actually been distrained upon on the demised premises. § 306.  Replevin by tenant or owner The tenant or owner of any personal property distrained on may, within five days next after notice of such distress, replevy the same. All proceedings in replevin shall be conducted in accordance with general law and applicable rules of procedure governing actions of replevin. § 307.  Proceeding by tenant to determine set-off Any court of record or court not of record having jurisdiction in civil actions at law may entertain an action to defalcate by a tenant against a landlord where the landlord has distrained for arrears of rent, to compel the landlord to set-off any account which the tenant may have against the landlord. No such court shall entertain any such action where the rent or set-off claimed is in excess of its civil jurisdiction. Proceedings in such actions shall be the same as in actions of assumpsit. The court shall determine the amount of rent in arrears and the amount of the set-off, if any, and enter judgment in favor of the proper party for the balance due. If such judgment is in favor of the landlord he may, in lieu of issuing execution thereon, proceed with his distress for the amount of such judgment. If the landlord shall sell more personal property than necessary to satisfy such judgment and costs and fail to pay the overplus to the tenant, he shall be liable in trespass to double the amount of the sum so detained, together with the costs of suit. If the landlord shall proceed to sell any personal property after notice of any such proceeding to defalcate and before judgment in his favor thereon, he shall be liable in trespass to double the amount by which the sum realized from such sale exceeds the sum to which he shall be found to be entitled by the final judgment in the defalcation proceeding, together with the costs of suit in the defalcation proceeding, if such judgment be in his favor. If the landlord proceeds with the distress, he shall satisfy the judgment to the extent of the amount realized on the sale, less the costs of the distress, or on his failure to do so, the tenant may proceed by rule to have such satisfaction entered. § 308.  Appraisement of property levied upon If the tenant or owner of the personal property distrained upon fails to replevy the same within said five days next after distress and notice thereof, the person distraining may, with the sheriff or his deputy or any constable or his deputy, which officer upon demand of the landlord shall aid and assist, cause the personal property so distrained to be appraised by two disinterested and competent persons appointed by said officer. The appraisers shall each take the following oath or affirmation to be admin-

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LANDLORD AND TENANT

Ch. 64

Part III Ch. 23–35 Mortgages Part IV Ch. 36–40 Insurance Part V Ch. 41–48A Zoning, etc. Part VI Ch. 49–56 Taxation Part VII Ch. 57–63 Litigation Part VIII Ch. 64–67 L/T Part IX Ch. 68–72 Condos, etc. Index

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Part II Ch. 15–22 Deeds

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Part I Ch. 1–14 Brokers

istered by the assisting officer: “I __________, do solemnly swear (or affirm) that I will well and truly, according to my understanding, appraise the personal property of __________, distrained on for rent by __________” Each appraiser shall receive two dollars ($2) per diem for his services in making the appraisement, to be paid out of the proceeds of the sale. § 309.  Sale and notice thereof; distribution of proceeds After the appraisement has been completed, the sheriff, deputy sheriff, constable or deputy constable shall fix a day, time and place of sale, of which at least six days public notice in writing shall be given by handbills. The notice of sale shall specify the personal property to be sold sufficiently to inform the tenant or owner and to induce bidders to attend the sale. On the day and at the time fixed for the sale or on any day and time to which said sale may be adjourned, the sheriff, deputy sheriff, constable or deputy constable shall publicly sell the personal property so distrained for the best price that can be obtained for the same. The proceeds of the sale shall be paid out in the following order: First, for the payment of any wages due by the tenant which by law are given preference and to the same extent and upon the same conditions of notice being given as required by the wage preference law and notice of the claim to the officer executing the landlord’s warrant; second, for the payment of the charges and costs for making the distress, appraisement and sale; third, for the satisfaction of the rent for which the personal property was distrained; fourth, any overplus for the use of the owner. § 310.  Rights of purchasers of growing agricultural crops The purchaser of any growing agricultural crops at a sale on distress for rent shall at all times have free ingress and egress to and from the premises where the same may be growing and the right to repair fences. He shall have the right to dig, cut, gather, lay up and thresh the same in the same manner as the tenant might legally have done and thereafter to carry the same away from the premises. § 311.  Damages for removal of property distrained on Any landlord having distrained upon personal property for rent due who is aggrieved by the unlawful removal thereof shall, in an action of trespass, recover treble damages, together with the costs of suit, against the offender or against the owner, if it be afterwards found that the personal property has come into his use or possession. § 312.  Remedy in cases of improper distress The landlord and his agent shall be liable to the tenant or the owner of the personal property distrained on in an action of trespass, (1) if the distress is for more rent than is due, (2) or if the amount of personal property distrained is unreasonably great, (3) or if made after a proper tender of the rent due was rejected, (4) or if the distress is conducted irregularly or oppressively, (5) or if any personal property taken in distress was, to the knowledge of the landlord or his agent, not distrainable, (6) or if the distress is made at an improper time, (7) or if the landlord or his agent receives notice, after the distress, from the owner or his agent or from the tenant having possession of the property that the personal property distrained on was not subject to distress and nevertheless proceeds with the sale without affording the owner a five day period after such notice to replevy such personal property. § 313.  Remedy where distress and sale made and no rent due In case any distress and sale of personal property shall be made for rent when no rent is due to the person distraining or to the person in whose name the distress has been taken, then the owner of the personal property shall, by action of

Table of Contents

PART VIII

12/22/21 10:45 AM

§ 401

LANDLORD AND TENANT ACT OF 1951

trespass brought against the person distraining, recover double the value of the personal property so distrained and sold, together with the costs of suit.

Article IV Exemptions From Distress and Sale Sec.

§ 401.  Tenant’s exemption; appraisement § 402.  Wearing apparel; Bibles; school books; sewing machines and military accoutrements to be exempt § 403.  Exemption of property on premises under lease or conditional sale contract subject to a security interest § 404.  Exemption of other property located on premises

§ 401.  Tenant’s exemption; appraisement Unless the right of exemption has been waived by the tenant in writing, personal property to the value of three hundred dollars ($300), in addition to any other personal property specifically exempted by this article, shall be exempt from levy and sale by distress for rent. The officer charged with the execution of any landlord’s warrant shall, if requested by the tenant, summon two disinterested and competent persons, who shall be sworn or affirmed by such officer to appraise personal property, including bank notes, money, stocks, judgments or other indebtedness due the tenant, to the value of three hundred dollars ($300), which the tenant may elect to retain, and the property so elected and appraised shall be exempt from levy and sale in such distress proceedings. Each appraiser shall be entitled to receive two dollars ($2.00) for his services. § 402.   Wearing apparel; Bibles; school books; sewing machines and military accoutrements to be exempt All wearing apparel of the tenant and his family, all Bibles and school books in use in the tenant’s family, all sewing machines and other tools of trade used and owned by private families, and all uniforms, arms, ammunition and accoutrements of any commissioned officer or enlisted personnel of the National Guard or of the armed forces of the United States, shall be exempt from levy and sale on any landlord’s warrant. Nothing contained in this section shall be construed to exempt sewing machines kept for sale or hire. § 403.  Exemption of property on premises under lease or conditional sale contract subject to a security interest The following personal property loaned to or leased or hired by any person, or sold in any transaction in which a purchase money security interest is taken or retained shall be exempt from levy and sale on distress for rent so long as the security interest or title thereto remains in the secured party, owner, lender, or lessor if written notice, specifically describing the personal property loaned, leased, hired, or made subject to a security interest, shall be given to the landlord or his agent at the time the said personal property is placed upon the demised premises or within ten days thereafter, which notice shall contain a statement of the respective amounts due on each article named in the notice, and when so given, shall be effective as to such landlord and any future owner or owners of said premises, that is to say— (1)   All pianos, melodeons and organs; (2)   All soda water apparatus and the appurtenances thereto; (3)  All sewing machines and typewriting machines; and all accounting,

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(4)   All electric motors, electric fans, electric air conditioners and dynamos; (5)   All ice cream cabinets and ice cream containers and the appurtenances thereto; (7)   All patented shoe repairing machinery and tools; (8)   All beauty and barber shop furniture and equipment; (9)   All cigarette, candy, chewing gum, soft drink, milk, food and all other types of automatic merchandising service or amusement vending machines; (11)   All meat market and grocery store equipment; (12)   All industrial, mining and construction machinery and equipment not attached to the realty.

Any landlord may levy upon and sell on distress for rent any right or interest of the tenant in any personal property mentioned in this section, subject to the rights therein of the owner, lender, lessor or conditional vendor. The following personal property located on premises occupied by a tenant shall be exempt from levy and sale on distress for rent, i.e., personal property—

(2)   Actually held by the tenant for someone else in the course of trade, as agent or as consignee; (3)  Sold for a valuable consideration by the tenant before distress to any bona fide purchase not privy to any fraud;

Part VII Ch. 57–63 Litigation

(1)  Necessarily put in possession of the tenant in the course of his business by those with whom the tenant deals or by those who employ the tenant;

Part VI Ch. 49–56 Taxation

§ 404.  Exemption of other property located on premises

Part V Ch. 41–48A Zoning, etc.

Upon request at any reasonable time the owner, lender, lessor or conditional vendor of any personal property enumerated in this section shall advise the landlord or his agent as to the status of his account with the tenant. In default of such advice, it shall be conclusively presumed no balance is due on said account.

Part IV Ch. 36–40 Insurance

In the case of personal property enumerated in clauses (2), (3), (5), (7), (8), (9), (10), (11) and (12) of this section, notice may be given in the manner above provided or, in lieu thereof, the name and address of the owner, lender, lessor or conditional vendor may be marked on or attached to said property on a visible part thereof.

Part III Ch. 23–35 Mortgages

(10)   All restaurant and bar furniture and equipment;

Part II Ch. 15–22 Deeds

(6)   All household furniture and household goods;

Part I Ch. 1–14 Brokers

tabulating, computing, bookkeeping, photocopying and other office equipment and machinery;

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PART VIII

(4)   Section (4) repealed; see now 48 Pa.C.S. Ch. 13. (6)   Of the United States and its governmental agencies, or of the Commonwealth of Pennsylvania or of any political subdivision thereof;

(8)   Cattle or stock taken by the tenant to be fed or cared for on the leased premises for a consideration to be paid by the owner.

Part IX Ch. 68–72 Condos, etc.

(7)   Of any public service company, essential to the performance of its public functions; or,

Part VIII Ch. 64–67 L/T

(5)   Of a decedent;

Article V Recovery of Possession

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§ 501

LANDLORD AND TENANT ACT OF 1951

Sec.

§ 501. Notice to quit § 502. Summons and service § 503. Hearing; judgment; writ of possession; payment of rent by tenant § 504. Return by constable or sheriff § 505. Abandoned mobile homes § 505a. Disposition of abandoned personal property §§ 506 to 510. Repealed § 511. Remedy to recover possession by ejectment preserved § 511.1. Escrow funds limited § 511.2. Interest on escrow funds held more than two years § 511.3. Bond in lieu of escrowing § 512. Recovery of improperly held escrow funds § 513. Appeal by tenant to common pleas court § 514. Death of Tenant

§ 501.  Notice to quit (a)  A landlord desirous of repossessing real property from a tenant except real property which is a mobile home space as defined in the act of November 24, 1976 (P.L. 1176, No. 261),4 known as the “Mobile Home Park Rights Act,” may notify, in writing, the tenant to remove from the same at the expiration of the time specified in the notice under the following circumstances, namely, (1) Upon the termination of a term of the tenant, (2) or upon forfeiture of the lease for breach of its conditions, (3) or upon the failure of the tenant, upon demand, to satisfy any rent reserved and due. (b)   Except as provided for in subsection (c), in case of the expiration of a term or of a forfeiture for breach of the conditions of the lease where the lease is for any term of one year or less or for an indeterminate time, the notice shall specify that the tenant shall remove within fifteen days from the date of service thereof, and when the lease is for more than one year, then within thirty days from the date of service thereof. In case of failure of the tenant, upon demand, to satisfy any rent reserved and due, the notice shall specify that the tenant shall remove within ten days from the date of the service thereof. (c)   In case of the expiration of a term or of a forfeiture for breach of the conditions of the lease involving a tenant of a mobile home park as defined in the “Mobile Home Park Rights Act,”4 where the lease is for any term of less than one year or for an indeterminate time, the notice shall specify that the tenant shall remove within thirty days from the date of service thereof, and when the lease is for one year or more, then within three months from the date of service thereof. In case of failure of the tenant, upon demand, to satisfy any rent reserved and due, the notice, if given on or after April first and before September first, shall specify that the tenant shall remove within fifteen days from the date of the service thereof, and if given on or after September first and before April first, then within thirty days from the date of the service thereof. (c.1)   The owner of a mobile home park shall not be entitled to recovery of the mobile home space upon the termination of a lease with a resident regardless of the term of the lease if the resident: (1)   is complying with the rules of the mobile home park; and (2)   is paying the rent due; and

4. 68 P.S. § 398.1 et seq.

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PART VIII

(3)   desires to continue living in the mobile home park.

(3)   At the expiration of a lease, if the resident determines that he no longer desires to reside in the park and so notifies the owner in writing.

(e)   The notice above provided for may be for a lesser time or may be waived by the tenant if the lease so provides. (f)  The notice provided for in this section may be served personally on the tenant, or by leaving the same at the principal building upon the premises, or by posting the same conspicuously on the leased premises.

(b)   The summons may be served personally on the tenant, by mail or by posting the summons conspicuously on the leased premises. § 503.  Hearing; judgment; writ of possession; payment of rent by tenant

(1)   that the real property be delivered up to the landlord;

(3)   for the amount of rent, if any, which remains due and unpaid.

5. 68 P.S. § 250.505-A.

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Part IX Ch. 68–72 Condos, etc.

(c)   At any time before any writ of possession is actually executed, the tenant

Part VIII Ch. 64–67 L/T

(b)   At the request of the landlord, the justice of the peace shall, after the fifth day after the rendition of the judgment, issue a writ of possession directed to the writ server, constable or sheriff, commanding him to deliver forthwith actual possession of the real property to the landlord and to levy the costs and amount of judgment for damages and rent, if any, on the tenant, in the same manner as judgments and costs are levied and collected on writs of execution. This writ is to be served within no later than forty-eight hours and executed on the eleventh day following service upon the tenant of the leased premises. Service of the writ of possession shall be served personally on the tenant by personal service or by posting the writ conspicuously on the leased premises.

Part VII Ch. 57–63 Litigation

(2)   for damages, if any, for the unjust detention of the demised premises; and

Part VI Ch. 49–56 Taxation

(a)   On the day and at the time appointed or on a day to which the case may be adjourned, the justice of the peace shall proceed to hear the case. If it appears that the complaint has been sufficiently proven, the justice of the peace shall enter judgment against the tenant:

Part V Ch. 41–48A Zoning, etc.

(a)   Upon the filing of the complaint, the justice of the peace shall issue a summons which recites substantially the complaint, is directed to any writ server, constable or the sheriff of the county and commands that writ server, constable or sheriff to summon the tenant to appear before the justice of the peace to answer the complaint on a date not less than seven nor more than ten days from the date of the summons.

Part IV Ch. 36–40 Insurance

§ 502.  Summons and service

Part III Ch. 23–35 Mortgages

(d)   In case of termination due to the provisions of section 505-A,5 the notice shall specify that the tenant shall remove within ten days from the date of service thereof.

Part II Ch. 15–22 Deeds

(2)   When the owner and resident mutually agree in writing to the termination of a lease.

Part I Ch. 1–14 Brokers

(c.2)   The only basis for the recovery of a mobile home space by an owner of a mobile home park shall be: (1)  When a resident is legally evicted as provided under section 3 of the “Mobile Home Park Rights Act.”

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§ 504

LANDLORD AND TENANT ACT OF 1951

may, in any case for the recovery of possession solely because of failure to pay rent due, supersede and render the writ of no effect by paying to the writ server, constable or sheriff the rent actually in arrears and the costs. § 504.  Return by constable or sheriff The writ server, constable or sheriff shall make return of the writ of possession to the justice of the peace within ten days after receiving the writ. The return shall show: (1) the date, time, place and manner of service of the writ; (2) if the writ was satisfied by the payment of rent due or in arrears and costs by or on behalf of the tenant, the amount of that payment and its distribution; (3) the time and date of any forcible entry and ejectment, or that no entry for the purpose of ejectment had been made; and (4) his expenses and fees, which expenses and fees shall have been paid by the tenant or, if paid by the landlord, reimbursed to the landlord by the tenant in order to satisfy the writ. § 505.   Abandoned mobile homes. Repealed 2012 § 505a.   Disposition of abandoned personal property (a)  Upon the termination of a lease or relinquishment of possession of real property, a tenant shall remove all personal property from the leased or formerly leased premises. Abandoned personal property remaining on the premises may be disposed of at the discretion of the landlord, subject to the provisions of this section. (b)   Personal property remaining on the premises may be deemed abandoned if any of the following apply: (1)   The tenant has vacated the unit following the termination of a written lease. (2)  An eviction order or order for possession in favor of the landlord has been entered and the tenant has vacated the unit and removed substantially all personal property. (3)  An eviction order or order for possession in favor of the landlord has been executed. (4)   The tenant has provided the landlord with written notice of a forwarding address and has vacated the unit and removed substantially all personal property. (5)  The tenant has vacated the unit without communicating an intent to return, the rent is more than fifteen days past due and, subsequent to those events, the landlord has posted notice of the tenant’s rights regarding the property. (c)   Where the tenant is deceased and leaves personal property remaining in the demised premises, the provisions of this act shall not apply. The disposition of personal property in the case of a decedent shall be governed by the provisions of 20 Pa.C.S. §§ 711(1) (relating to mandatory exercise of jurisdiction through orphans’ court division in general) and 3392 (relating to classification and order of payment) and other relevant provisions of 20 Pa.C.S. (relating to decedents, estates and fiduciaries). (d)   Prior to removing or disposing of abandoned property, the landlord must provide written notice of the tenant’s rights regarding the property. The tenant shall have ten days from the postmark date of the notice to retrieve the property or to request that the property be stored for an additional period not exceeding thirty days from the date of the notice. If the tenant so requests, the landlord must retain or store the property for up to thirty days from the date of the notice. Storage will be provided at a place of the landlord’s choosing and the tenant

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Part III Ch. 23–35 Mortgages

(g)   Except with respect to the provisions of subsection (h), in the event of a conflict between the provisions of this section and the terms of a written lease, the terms of the lease shall control.

Part IV Ch. 36–40 Insurance

(h)   Notwithstanding any provision of this section to the contrary, if a landlord proceeding under the provisions of subsection (b)(3) has actual knowledge or is notified of a protection from abuse order entered for the protection of the tenant or a member of the tenant’s immediate family, the landlord shall refrain from disposing of or otherwise exercising control over the personal property of the tenant for thirty days from the date of the notice. If requested, storage shall be provided for up to thirty days from the date of the request.

Part V Ch. 41–48A Zoning, etc.

(f)   Under no circumstances may a landlord dispose of or otherwise exercise control over personal property remaining upon inhabited premises without the express permission of the tenant. If the conditions under which personal property may be deemed abandoned no longer exist, the landlord shall have no right to dispose of or otherwise exercise control over the property.

Part II Ch. 15–22 Deeds

Personal property remaining at (address) is now considered to have been abandoned. Within ten days of the postmark date of this notice, you must retrieve any items you wish to keep or contact your landlord at (telephone number and address) to request that the property be retained or stored. If requested, storage will be provided for up to thirty days from the postmark date of this notice at a place of your landlord’s choosing, and you will be responsible for costs of storage.

Part I Ch. 1–14 Brokers

shall be responsible for costs. At all times, the landlord shall exercise ordinary care in handling and securing the tenant’s property and shall make the property reasonably available for purposes of retrieval. (e)   Notice shall be sent by first class mail to the tenant at the address of the leased premises and to any forwarding address provided by the tenant, including any address provided for emergency purposes. The notice shall be in substantially the following form:

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PART VIII

§§ 506 to 510.  Repealed by 1978, April 28, P.L. 202, No. 53, § 2(a) [1271], effective June 27, 1980

Part VI Ch. 49–56 Taxation

(i)   A landlord that violates the provisions of this section shall be subject to treble damages, reasonable attorney fees and court costs.

§ 511.  Remedy to recover possession by ejectment preserved Part VII Ch. 57–63 Litigation

Nothing contained in this article shall be construed as abolishing the right of any landlord to recover possession of any real property from a tenant by action of ejectment, or from instituting any amicable action of ejectment to recover possession of any real property by confessing judgment in accordance with the terms of any written contract or agreement. § 511.1.6  Escrow funds limited

(c)   If, during the third or subsequent year of a lease, or during any renewal 6. 68 P.S. § 250.511a.

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Part IX Ch. 68–72 Condos, etc.

(b)  During the second and subsequent years of the lease or during any renewal of the original lease the amount required to be deposited may not exceed one month’s rent.

Part VIII Ch. 64–67 L/T

(a)  No landlord may require a sum in excess of two months’ rent to be deposited in escrow for the payment of damages to the leasehold premises and/or default in rent thereof during the first year of any lease.

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§ 511.2

LANDLORD AND TENANT ACT OF 1951

after the expiration of two years of tenancy, the landlord requires the one month’s rent escrow provided herein, upon termination of the lease, or on surrender and acceptance of the leasehold premises, the escrow funds together with interest shall be returned to the tenant in accordance with sections 511.2 and 512.7 (d)   Whenever a tenant has been in possession of premises for a period of five years or greater, any increase or increases in rent shall not require a concomitant increase in any security deposit. (e)   This section applies only to the rental of residential property. (f)   Any attempted waiver of this section by a tenant by contract or otherwise shall be void and unenforceable. § 511.2.8  Interest on escrow funds held more than two years (a)   Except as otherwise provided in this section, all funds over one hundred dollars ($100) deposited with a lessor to secure the execution of a rental agreement on residential property in accordance with section 511.1 and pursuant to any lease newly executed or reexecuted after the effective date of this act shall be deposited in an escrow account of an institution regulated by the Federal Reserve Board, the Federal Home Loan Bank Board, Comptroller of the Currency, or the Pennsylvania Department of Banking. When any funds are deposited in any escrow account, interest-bearing or noninterest-bearing, the lessor shall thereupon notify in writing each of the tenants making any such deposit, giving the name and address of the banking institution in which such deposits are held, and the amount of such deposits. (b)   Whenever any money is required to be deposited in an interest-bearing escrow savings account, in accordance with section 511.1,9 then the lessor shall be entitled to receive as administrative expenses, a sum equivalent to one per cent per annum upon the security money so deposited, which shall be in lieu of all other administrative and custodial expenses. The balance of the interest paid shall be the money of the tenant making the deposit and will be paid to said tenant annually upon the anniversary date of the commencement of his lease. (c)   The provisions of this section shall apply only after the second anniversary of the deposit of escrow funds. § 511.3.10  Bond in lieu of escrowing Every landlord subject to the provisions of this act may, in lieu of depositing escrow funds, guarantee that any escrow funds, less cost of necessary repairs, including interest thereon, shall be returned to the tenant upon termination of the lease, or on surrender and acceptance of the leasehold premises. The guarantee of repayment of said escrow funds shall be secured by a good and sufficient guarantee bond issued by a bonding company authorized to do business in Pennsylvania. § 512.  Recovery of improperly held escrow funds (a)   Every landlord shall within thirty days of termination of a lease or upon surrender and acceptance of the leasehold premises, whichever first occurs, provide a tenant with a written list of any damages to the leasehold premises for which the landlord claims the tenant is liable. Delivery of the list shall be accompanied by payment of the difference between any sum deposited in es7. 68 P.S. §§ 250.511b and 250.512. 8. 68 P.S. § 250.511b. 9. 68 P.S. § 250.511a. 10. 68 P.S. § 250.511c.

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(f)  This section shall apply only to residential leaseholds and not to commercial leaseholds. § 513.  Appeal by tenant to common pleas court

Index

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Part IX Ch. 68–72 Condos, etc.

1079

Part VIII Ch. 64–67 L/T

(c)   Upon application by the landlord, the court shall release appropriate sums from the escrow account on a continuing basis while the appeal is pending to compensate the landlord for the tenant’s actual possession and use of the premises during the pendency of the appeal. (d)   Upon application by the tenant, the court shall release appropriate sums from the escrow account on a continuing basis while the appeal is pending to

Part VII Ch. 57–63 Litigation

(b)   Within ten days after the rendition of judgment by a lower court arising out of residential lease or within thirty days after a judgment by a lower court arising out of a nonresidential lease or a residential lease involving a victim of domestic violence, either party may appeal to the court of common pleas, and the appeal by the tenant shall operate as a supersedeas only if the tenant pays in cash or bond the amount of any judgment rendered by the lower court or is a victim of domestic violence and pays in cash any rent which becomes due during the court of common pleas proceedings within ten days after the date each payment is due into an escrow account with the prothonotary or the supersedeas shall be summarily terminated.

Part VI Ch. 49–56 Taxation

(a)  Every tenant who files an appeal to a court of common pleas of a judgment of the lower court involving an action under this act for the recovery of possession of real property or for rent due shall deposit with the prothonotary a sum equal to the amount of rent due as determined by the lower court. This sum representing the rent due or in question shall be placed in a special escrow account by the prothonotary. The prothonotary shall only dispose of these funds by order of court.

Part V Ch. 41–48A Zoning, etc.

(e)  Failure of the tenant to provide the landlord with his new address in writing upon termination of the lease or upon surrender and acceptance of the leasehold premises shall relieve the landlord from any liability under this section.

Part IV Ch. 36–40 Insurance

(d)   Any attempted waiver of this section by a tenant by contract or otherwise shall be void and unenforceable.

Part III Ch. 23–35 Mortgages

(c)  If the landlord fails to pay the tenant the difference between the sum deposited, including any unpaid interest thereon, and the actual damages to the leasehold premises caused by the tenant within thirty days after termination of the lease or surrender and acceptance of the leasehold premises, the landlord shall be liable in assumpsit to double the amount by which the sum deposited in escrow, including any unpaid interest thereon, exceeds the actual damages to the leasehold premises caused by the tenant as determined by any court of record or court not of record having jurisdiction in civil actions at law. The burden of proof of actual damages caused by the tenant to the leasehold premises shall be on the landlord.

Part II Ch. 15–22 Deeds

(b)  Any landlord who fails to provide a written list within thirty days as required in subsection (a), above, shall forfeit all rights to withhold any portion of sums held in escrow, including any unpaid interest thereon, or to bring suit against the tenant for damages to the leasehold premises.

Part I Ch. 1–14 Brokers

crow, including any unpaid interest thereon, for the payment of damages to the leasehold premises and the actual amount of damages to the leasehold premises caused by the tenant. Nothing in this section shall preclude the landlord from refusing to return the escrow fund, including any unpaid interest thereon, for nonpayment of rent or for the breach of any other condition in the lease by the tenant.

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§ 514

LANDLORD AND TENANT ACT OF 1951

directly compensate those providers of habitable services which the landlord is required to provide under law or under the lease. (e)  As used in this section, the following words and phrases shall have the meanings given to them in this subsection: “Lower court.” District justice, magistrate or any other court having jurisdiction over landlord and tenant matters, excluding a court of common pleas. “Victim of domestic violence.” A person who has obtained a protection from abuse order against another individual or can provide other suitable evidence as the court shall direct. § 514.  Death of Tenant (a)   Notwithstanding any other provision of this act or law, and if the deceased tenant is the sole tenant of the residential unit, the executor or administrator of the estate of a tenant who dies during the term of a residential lease shall have the option to terminate the lease upon fourteen days’ written notoce to the landlord on the later of: (1)  the last day of the second calendar month that follows the calendar month in which the tenant died; or (2)  upon surrender of the rental unit and removal of all of the tenant’s personal property. (b)   Nothing under this section shall be construed to relieve the tenant’s estate of libility for rent money or any other debt incurred prior to the date of termination of the lease, including damages to the premises and any expenses the landlord may incur as a direct result of the tenant’s death, except that the tenant’s estate shall not be liable for damages or any other penalty for breach or inadequate notice as a result of terminating a lease under subsection (a).

Article V-A Tenement Buildings and Multiple Dwelling Premises Sec. § § § § § § § § § § § § § § §

501-A.   Definitions 502-A.  Landlord’s duties 503-A.  Tenant’s duties 504-A.  Tenant’s rights 505-A.  Use of illegal drugs 501-B.   Definitions 502-B.  Tenants protected 503-B.  Tenants’ rights 504-B.  Right to render services; notice 505-B.  Compensation for physical damage 506-B.  Compensation for loss of value 507-B.   Venue 508-B.  Alternative service 509-B.  Compliance with requirements for historical buildings 510-B.  Existing CATV services protected

§ 501-A.  Definitions As used in this article, the following terms shall have the meanings ascribed to them in this section unless the context otherwise indicates: (1)  “Tenement building” any house or building, or portion thereof, which is intended or designed to be occupied or leased for occupation, or actually oc-

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Part III Ch. 23–35 Mortgages Part IV Ch. 36–40 Insurance Part V Ch. 41–48A Zoning, etc. Part VI Ch. 49–56 Taxation Part VII Ch. 57–63 Litigation Part VIII Ch. 64–67 L/T Part IX Ch. 68–72 Condos, etc. Index

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Part I Ch. 1–14 Brokers

cupied, as a home or residence for three or more households living in separate apartments, and doing their cooking upon the premises. (2)  “Apartment” a room or suite of two or more rooms, occupied or leased for occupation, or intended or designed to be occupied, as a domicile. (3)  “Multiple dwelling premises” any area occupied by dwelling units, appurtenances thereto, grounds and facilities which dwelling units are intended or designed to be occupied or leased for occupation, or actually occupied, as individual homes or residences for three or more households. “Multiple dwelling premises” shall include, inter alia, mobile home parks. § 502-A.  Landlord’s duties The retention of control of the stairways, passages, roadways and other common facilities of a tenement building or multiple dwelling premises places upon the landlord, or other possessor, the duty of reasonable care for safety in use. This responsibility of the landlord extends not alone to the individual tenant, but also to his family, servants and employees, business visitors, social guests, and the like. Those who enter in the right of the tenant, even though under his mere license, make a permissible use of the premises for which the common ways and facilities are provided. § 503-A.  Tenant’s duties The tenant shall comply with all obligations imposed upon tenants by applicable provisions of all municipal, county and Commonwealth codes, regulations, ordinances, and statutes, and in particular, shall: (1)   Not permit any person on the premises with his permission to wilfully or wantonly destroy, deface, damage, impair, or remove any part of the structure or dwelling unit, or the facilities, equipment, or appurtenances thereto or used in common, nor himself do any such thing. (2)   Not permit any person on the premises with his permission to wilfully or wantonly disturb the peaceful enjoyment of the premises by other tenants and neighbors. § 504-A.  Tenant’s rights The tenant shall have a right to invite to his apartment or dwelling unit such employees, business visitors, tradesmen, deliverymen, suppliers of goods and services, and the like as he wishes so long as his obligations as a tenant under this article are observed. The tenant also shall have right to invite to his apartment or dwelling unit, for a reasonable period of time, such social guest, family or visitors as he wishes so long as his obligations as a tenant under this article are observed. These rights may not be waived by any provisions of a written rental agreement and the landlord and/or owner may not charge any fee, service charge or additional rent to the tenant for exercising his rights under this act. It is the intent of this article to insure that the landlord may in no way restrict the tenant’s right to purchase goods, services and the like from a source of the tenant’s choosing and as a consequence any provision in a written agreement attempting to limit this right shall be void and unenforceable in the courts of this Commonwealth. § 505-A.  Use of illegal drugs (a)   The following acts relating to illegal drugs shall be a breach of condition of the lease and shall be grounds for removal of the tenant from a single-family dwelling, apartment, multiple dwelling premises or tenement building: (1)  The first conviction for an illegal sale, manufacture or distribution of any drug in violation of the act of April 14, 1972 (P.L. 233, No. 64), known as “The Controlled Substance, Drug, Device and Cosmetic Act,”11 on a singlefamily dwelling or any portion of the multiple dwelling premises or tenement;

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PART VIII

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§ 501-B

LANDLORD AND TENANT ACT OF 1951

(2)  The second violation of any of the provisions of “The Controlled Substance, Drug, Device and Cosmetic Act” on a single-family dwelling or any portion of the multiple dwelling premises or tenement; (3)  The seizure by law enforcement officials of any illegal drugs on the leased premises in the single-family dwelling or multiple dwelling premises or tenement. (b)   Failure to remove any tenant for violation of any of the provisions of subsection (a) shall not act as a waiver of the landlord’s rights with regard to the same or any other tenant relating to any subsequent acts. § 501-B.  Definitions As used in this article— (1)  “CATV system” or “cable television system” shall include a system or facility or part thereof which consists of a set of transmission paths and associated signal generation, reception, amplification and control equipment which is operated or intended to be operated to perform the service of receiving and amplifying and distributing and redistributing signals broadcast or transmitted by one or more television or radio stations or information distribution service companies, including, but not limited to, the cable communications system owner, operator or manager itself, to subscribers. The term shall include the service of distributing any video, audio, digital, light or audio-video signals whether broadcast or otherwise. (2)  “Holding a franchise” shall include obtaining municipal consent to or approval of the construction or operation of a CATV system and the rendering of CATV services whether granted by resolution, ordinance or written agreement. The term shall include a person who has constructed and is operating a CATV system within the public right-of-way of a municipality which, at the time of construction and initial operation of such CATV system, did not require that municipal consent be obtained. (3)  “Landlord” shall include an individual or entity owning, controlling, leasing, operating or managing multiple dwelling premises. (4)  “Multiple dwelling premises” shall include any area occupied by dwelling units, appurtenances thereto, grounds and facilities, which dwelling units are intended or designed to be occupied or leased for occupation, or actually occupied, as individual homes or residences for three or more households. The term shall include mobile home parks. (5)  “Operator” shall include the operator of a CATV system holding a franchise granted by the municipality or municipalities in which the multiple dwelling premises to be served is located. § 502-B.  Tenants protected A landlord may not discriminate in rental or other charges between tenants who subscribe to the services of a CATV system and those who do not. The landlord may, however, require reasonable compensation in exchange for a permanent taking of his property resulting from the installation of CATV system facilities within and upon his multiple dwelling premises, to be paid by an operator. The compensation shall be determined in accordance with this article. § 503-B.  Tenants’ rights The tenant has the right to request and receive CATV services from an operator or a landlord provided that there has been an agreement between a landlord 11. 35 P.S. § 780-101 et seq.

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LANDLORD AND TENANT

Ch. 64

Part III Ch. 23–35 Mortgages Part IV Ch. 36–40 Insurance Part V Ch. 41–48A Zoning, etc. Part VI Ch. 49–56 Taxation Part VII Ch. 57–63 Litigation Part VIII Ch. 64–67 L/T Part IX Ch. 68–72 Condos, etc.

12. 68 P.S. § 250.504-B. 13. 68 P.S. § 250.101 et seq. 14. 68 P.S. § 250.505-B.

Index

1083

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Part II Ch. 15–22 Deeds

§ 504-B.  Right to render services; notice If a tenant of a multiple dwelling premises requests an operator to provide CATV services and if the operator decides that it will provide such services, the operator shall so notify the landlord in writing within ten days after the operator decides to provide such service. If the operator fails to provide such notice, then the tenant’s request shall be terminated. If the operator agrees to provide said CATV services, then a forty-five day period of negotiation between the landlord and the operator shall be commenced. This original notice shall state as follows: “The landlord, tenants and operators have rights granted under Article V-B of the act of April 6, 1951 (P.L. 69, No. 20), known as ‘The Landlord and Tenant Act of 1951.’ ”13 The original notice shall be accompanied by a proposal outlining the nature of the work to be performed and including an offer of compensation for loss in value of property given in exchange for the permanent installation of CATV system facilities. The proposal also shall include a statement that the operator is liable to the landlord for any physical damage, shall set forth the means by which the operator will comply with the installation requirements of the landlord pursuant to section 505-B14 and shall state the time period for installation and security to be provided. The landlord may waive his right to security at any time in the negotiation process. During the forty-five day period, the landlord and the operator will attempt to reach an agreement concerning the terms upon which CATV services shall be provided. If, within the forty-five day period or at any time thereafter, the proposal results in an agreement between the landlord and the operator, CATV services shall be provided in accordance with the agreement. If, at the end of the forty-five day period, the proposal does not result in an agreement between the landlord and the operator, then this article shall apply. The right of a tenant to receive CATV service from an operator of his choice may not be delayed beyond the forty-five day period contained in the original notice or otherwise impaired unless the matter proceeds to arbitration or court as provided in this article. An operator may bring a civil action to enforce the right of CATV services installation given under this article. § 505-B.  Compensation for physical damage An operator shall be liable to the landlord for any physical damage caused

Part I Ch. 1–14 Brokers

and an operator through the negotiation process outlined in section 504-B12 or through a ruling of an arbitrator as provided for in this article. A landlord may not prohibit or otherwise prevent a tenant from requesting or acquiring CATV services from an operator of the tenant’s choice provided that there has been an agreement between a landlord and an operator through the negotiation process outlined in section 504-B or through a ruling of an arbitrator as provided for in this article. A landlord may not prevent an operator from entering such premises for the purposes of constructing, reconstructing, installing, servicing or repairing CATV system facilities or maintaining CATV services if a tenant of a multiple dwelling premises has requested such CATV services and if the operator complies with this article. The operator shall retain ownership of all wiring and equipment used in any installation or upgrade of a CATV system in multiple dwelling premises. An operator shall not provide CATV service to an individual dwelling unit unless permission has been given by or received from the tenant occupying the unit.

Table of Contents

PART VIII

12/22/21 10:45 AM

§ 505-B

LANDLORD AND TENANT ACT OF 1951

by the installation, operation or removal of CATV system facilities. A landlord may require that the installation of cable television facilities conform to such reasonable conditions as are necessary to protect the safety, functioning and appearance of the premises and the convenience and well-being of tenants. A landlord may also require that the installation of cable television facilities conforms to reasonable requirements as to the location of main cable connections to the premises, the routing of cable lines through the premises and the overall appearance of the finished installation. To the extent possible, the location of the entry of a main cable connection to the premises shall be made at the same location as the entry into the premises of public utility connections. A second or subsequent installation of cable television facilities, if any, shall conform to such reasonable requirements in such a way as to minimize further physical intrusion to or through the premises. § 506-B.  Compensation for loss of value (a)   A landlord shall be entitled to just compensation from the operator resulting from loss in value of property resulting from the permanent installation of CATV system facilities on the premises. (b)   If a landlord believes that the loss in value of the property exceeds the compensation contained in the proposal accompanying the original notice or believes that the terms involving the work to be performed contained in the proposal are unreasonable, or both, the issue of just compensation or reasonableness of terms shall be determined in accordance with the following procedure: (1)   At any time prior to the end of the forty-five day period from the date when the landlord receives the original notice that the operator intends to construct or install a CATV system facility in multiple dwelling premises, the landlord shall serve upon the operator written notice that the landlord demands a greater amount of compensation or believes that the terms involving the work to be performed are unreasonable. (2)   If the operator is dissatisfied with the result of the negotiations at the conclusion of the forty-five day negotiation period, then he shall notify the landlord of the terms which the operator believes to be unreasonable and shall accompany this notice with a formal request for arbitration. (3)   Arbitration proceedings shall be conducted in accordance with the procedures of the American Arbitration Association or any successor thereto. The proceedings shall be held in the county in which the multiple dwelling premises or part thereof are located. Requirements of this act relating to time, presumptions and compensation for loss of value shall apply in the proceedings. The cost of the proceedings shall be shared equally by the landlord and the operator. The arbitration proceedings, once commenced, shall be concluded and a written decision by the arbitrator shall be rendered within fourteen days of commencement. Judgment upon any award may be entered in any court having jurisdiction. (4)   Within thirty days of the date of the notice of the decision of the arbitrators, either party may appeal the decision of the arbitrators in a court of common pleas, regarding the amount awarded as compensation for loss of value or for physical damages to the property. During the pendency of an appeal, the operator may not enter the multiple dwelling premises to provide CATV services, except as to those units that have existing CATV services. The court shall order each party to pay one-half of the arbitration costs. (c)   In determining reasonable compensation, evidence that a landlord has a specific alternative use for the space occupied or to be occupied by CATV system facilities, the loss of which will result in a monetary loss to the owner, or that installation of CATV system facilities upon such multiple dwelling premises will otherwise substantially interfere with the use and occupancy of such premises to

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LANDLORD AND TENANT

Ch. 64

Part III Ch. 23–35 Mortgages Part IV Ch. 36–40 Insurance Part V Ch. 41–48A Zoning, etc.

Sec.

§ 601. Specific repeals § 602. General repeal

Part VI Ch. 49–56 Taxation Part VII Ch. 57–63 Litigation Part VIII Ch. 64–67 L/T Part IX Ch. 68–72 Condos, etc.

§ 601.  Specific repeals The following acts and parts of acts are hereby repealed as respectively indicated: Repealed absolutely: 1772, March 21, 1 Sm.L. 370, §§ 1 to 7, 10 to 14. 1810, March 20, P.L. 208, § 20. 1814, March 22, P.L. 179. 1830, April 3, P.L. 187, §§ 1, 2. 1836, June 16, P.L. 755, §§ 119, 120. 1849, April 9, P.L. 524, § 6. 1855, April 27, P.L. 368, § 8. 1861, March 22, P.L. 181. 1863, Dec. 14, 1864, P.L. 1125. 1866, April 11, P.L. 97. 1867, Feb. 20, P.L. 30, No. 10. 1868, April 3, P.L. 57, No. 25. 1872, March 6, P.L. 22, No. 9. 1876, May 13, P.L. 160. 1905, March 31, P.L. 87.

Index

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Part II Ch. 15–22 Deeds

Article VI Repeals

1085

Part I Ch. 1–14 Brokers

an extent which causes a decrease in the resale or rental value thereof shall be considered. In determining the damages to any landlord in an action under this section, compensation shall be measured by the loss in value of the landlord’s property. An amount representing increase in value of the property occurring by reason of the installation of CATV system facilities shall be deducted from the compensation. (d)  The time periods set forth in this section may be extended by mutual agreement between the landlord and the operator. § 507-B.  Venue The court of common pleas of the county in which the multiple dwelling premises or part thereof is located shall have venue of all actions to enforce the provisions of this article or to hear any appeal from the award of arbitrators or any dispute between the parties. § 508-B.  Alternative service Nothing in this act shall preclude a landlord from offering alternative CATV services to tenants provided that the provisions of this article are not violated. § 509-B.  Compliance with requirements for historical buildings The operator shall comply with all Federal, State or local statutes, rules, regulations or ordinances with respect to buildings located in historical districts. § 510-B.  Existing CATV services protected CATV services being provided to tenants in multiple dwelling premises on the effective date of this act may not be prohibited or otherwise prevented so long as the tenant in an individual dwelling unit continues to request such services.

Table of Contents

PART VIII

12/22/21 10:45 AM

§ 602

LANDLORD AND TENANT ACT OF 1951

1905, April 10, P.L. 135. 1909, April 27, P.L. 197. 1913, May 20, P.L. 238. Repealed in so far as applicable to distress for rent: 1849, April 9, P.L. 533, §§ 1, 2. 1857, April 8, P.L. 170. 1859, April 8, P.L. 425. 1869, April 17, P.L. 69, No. 44. 1870, March 4, P.L. 35, No. 13. 1876, May 13, P.L. 171, No. 134. 1895, June 25, P.L. 282. 1899, April 28, P.L. 117, No. 94. 1909, May 3, P.L. 407. 1909, May 3, P.L. 423. 1927, April 22, P.L. 351. 1933, June 2, P.L. 1417. 1933, June 2, P.L. 1419, No. 304. 1943, May 26, P.L. 634. 1947, July 5, P.L. 1355. Repealed in so far as applicable to leases: 1772, March 21, 1 Sm.L. 389, § 1. § 602.  General repeal All other acts and parts of acts, general, local and special, inconsistent with or supplied by this act, are hereby repealed. It is intended that this act shall furnish a complete and exclusive system in itself.

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Table of Contents

CHAPTER 65

Rule

Part VIII Ch. 64–67 L/T Part IX Ch. 68–72 Condos, etc. Index

gtb-parealestate22-all.indb 1087

Part VII Ch. 57–63 Litigation

1087

Part VI Ch. 49–56 Taxation

When used in these Rules, the following words and phrases shall have the meanings set forth in this section, unless the context clearly indicates otherwise: Administrative Regulation—Instructions from the President Judge of the Municipal Court to the judicial complement and to the Court Administrator and staff. This includes new Court programs.

Part V Ch. 41–48A Zoning, etc.

RULE 102.  DEFINITIONS

Part IV Ch. 36–40 Insurance

These Rules shall be known as the Philadelphia Municipal Court Rules of Civil Practice and may be cited as “Phila. M.C.R. Civ.P.No. ___”.

Part III Ch. 23–35 Mortgages

RULE 101.  TITLE AND CITATION OF RULES

Part II Ch. 15–22 Deeds

   101. Title and Citation of Rules   102. Definitions    103. Principles of Interpretation and Construction of Rules   104. Agreements    105. Filing of Papers    106. Commencement of Actions: Pleadings Allowed    107. Waiver of Portion of Claim   108. Venue    109. Contents of Complaints    110. Claim Fact Sheet for Personal Injury and Property Damage Actions    111. Service of Complaints, Non-Execution Process, Petitions and Other Documents    112. Returns and Affidavits of Service   113. Trial Assignment    114. Notice of Defense    115. Counterclaims, Cross Claims, Additional Claims    116. Notification of Trial and Continuances   117. Applications   118. Reserved    119. Voluntary Termination of Actions—Withdrawals and Settlements    120. Dismissals—Failure to Appear    121. Conduct of Trial: Evidence    122. Notice of Entry of Judgment and Orders    123. Payment of Judgment in Installments    124. Time and Method of Appeal and Stay of Execution Pending Appeal    125. Transfer of Domestic Judgments    126. Execution and Revival of Judgments: Sheriff’s Interpleader    127. Actions in Which any Party is a Minor   128. Fees   129. Subpoena    130. Bill of Costs   131. Self-Representation   132. Reserved   133. Discontinuance    134. Fair Housing Commission   135. Nuisance Complaints    136. Forfeiture of Confiscated Firearms and Weapons    137. Court Access for Persons with Disabilities   138-142. Reserved   143. Recision   144. Effective Date    205.4. Mandatory Electronic Filing

Part I Ch. 1–14 Brokers

PHILADELPHIA MUNICIPAL COURT RULES OF CIVIL PRACTICE

12/22/21 10:45 AM

RULE 103

MUNICIPAL COURT RULES

Authorized Representative—An authorized representative is an individual who is an agent of a party, has personal knowledge of the subject matter of litigation, and files a written authorization with the Court prior to the commencement of trial. A written authorization shall be signed by a party and the party’s authorized representative. It shall specify the nature and extent of the authority that the party has given to the authorized representative. A valid written authorization must be filed with the Court before an authorized representative may take any actions on behalf of a party. An approved written authorization form is attached to these rules. Affidavit—A statement in writing of a fact or facts, signed by the person making it, that either (1) is sworn to or affirmed before an officer authorized by law to administer oaths, or before a particular officer or individual designated by law as one before whom it may be taken, and officially certified to in the case of an officer certified to in the case of an officer under his seal of office, (2) is unsworn and contains a statement that it is made subject to the penalties of 18 Pa.C.S. §4904 relating to unsworn falsification to authorities. Application—Shall include all petitions and motions. Claimant—The first filing of a claimant instituting a claim as set forth in Section 106. Court—The Philadelphia Municipal Court existing pursuant to Section 6(c) of Article V of the Constitution of the Commonwealth of Pennsylvania and as implemented by Subchapter B of Chapter 11 (relating to Philadelphia Municipal Court) of 42 Pennsylvania Consolidated Statutes. The Board of Judges of the Philadelphia Municipal Court shall have the exclusive authority to promulgate local Rules governing practice and procedure as provided in 42 Pa.C.S. §323. Defendant—The responding party on a complaint, counterclaim, additional claim, or cross claim. Guardian—The party representing the interest of a minor party in any action whether he is (1) the guardian of a minor appointed by any court of competent jurisdiction, or (2) a parent of the any competent adult person. Guardian ad litem—One specially appointed by the court to represent a minor party in a pending action. Landlord—Tenant Officer—Personnel appointed to this office in accordance with Act of July 9, 1976 P.L. 586 No. 142 Section 17. 42 Pa. C.S. §2301. Minor—An individual under the age of eighteen (18) years. Municipal Court—See Court, supra. Municipal Court Administrator—The chief administrative officer of the Municipal Court. Persons With Disabilities—Individuals who are disabled as defined in the Americans With Disabilities Act, 42 U.S.C. §12131(2). Prothonotary—The Prothonotary of Philadelphia as defined in 42 Pa.C.S. §2731(c). Sworn—Includes affirmed. Verified—When used in reference to a written statement of fact by the signer, means supported by oath or affirmation or made subject to the penalties of 18 Pa.C.S. §4904 relating to unsworn falsification to authorities. Writ Servers—Personnel of the Municipal Court appointed in accordance with the Act July of 9, 1976, P.L. 586 No. 142 Section 17. 42 Pa.C.S. §2301.

RULE 103.  PRINCIPLES OF INTERPRETATION AND CONSTRUCTION OF RULES a.   The object of all interpretation and construction of the Rules is to ascertain and effectuate the intention of the Municipal Court.

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Ch. 65

Part I Ch. 1–14 Brokers Part II Ch. 15–22 Deeds Part III Ch. 23–35 Mortgages

b.   Every Rule shall be constructed, if possible, to give effect to all its provisions. When the words of a Rule are clear and free from ambiguity, the letter of it is not to be disregarded under the pretext of pursuing its spirit. c.   When the words of a Rule are not explicit, the intention of the Municipal Court may be ascertained by considering, among other matters (1) the occasion and necessity for the Rule; (2) the circumstances under which it was promulgated; (3) the mischief to be remedied; (4) the object to be attained; (5) the prior practice, if any, including other Rules and Acts of Assembly upon the same or similar subjects; (6) the consequences of a particular interpretation; (7) the history of the Rule; and (8) the practice followed under the Rule. d.   The Rules shall be liberally construed to secure the just, speedy and economical determination of every action or proceeding to which they are applicable. The court may disregard any error or defect of procedure which does not effect the substantive rights of any party. e.   So far as not inconsistent with any express provision of these Rules, the interpretation shall be governed by 1 Pa.C.S. § 1901-1971 (relating to Rules of Construction).

Table of Contents

PART VIII

RULE 104.  AGREEMENTS

b.  Agreements between attorney and client relating to wholly or partially contingent compensation shall be in writing.

RULE 105.  FILING OF PAPERS

(b)   Claims for payment of rent due and unpaid may be included in any action for the recovery of possession, and the judgment of possession shall set

gtb-parealestate22-all.indb 1089

Index

1089

Part IX Ch. 68–72 Condos, etc.

(a)  The filing of a complaint shall constitute a waiver and release by the claimant of any portion of his claim, arising from the transaction or occurrence from which the claim arose, which exceeds the jurisdictional limit of the Court; provided, however, that in the event an appeal is taken or the claim is transferred to a Court of Common Pleas, such waiver and release shall not bar the claimant from asserting the full amount of his claim.

Part VIII Ch. 64–67 L/T

RULE 107.  WAIVER OF PORTION OF CLAIM

Part VII Ch. 57–63 Litigation

(a)   All civil actions shall be commenced by filing a complaint with the Court on printed forms approved by the Municipal Court Administrator and provided by the Court. (b)  Initiating pleadings shall be limited to a complaint, counterclaim, additional claim and/or cross claim.

Part VI Ch. 49–56 Taxation

RULE 106.  COMMENCEMENT OF ACTIONS: PLEADINGS ALLOWED

Part V Ch. 41–48A Zoning, etc.

Any filing with the Court, by an attorney admitted to practice in the courts of the Commonwealth of Pennsylvania, not requiring the signature of, or action by a judge prior to filing may be delivered or mailed to the Municipal Court Administrator or other appropriate officer designated by the court administrator, accompanied by the filing fee and if mailed, shall contain a stamped, selfaddressed envelope. The party’s attorney need not appear personally and present such paper to the officer. The signature of an attorney on a filing constitutes a certification of authorization to file it. The endorsement of an address where papers may be served shall constitute a sufficient registration of address. The notation on the filing of the attorney’s current certificate number issued by the Court Administrator of Pennsylvania shall constitute proof of right to practice before this court. A paper sent by mail shall not be deemed filed until received by the appropriate officer.

Part IV Ch. 36–40 Insurance

a.   Agreements of adverse parties and attorneys relating to the business of the court shall be in writing unless recorded before a judge of the Court.

12/22/21 10:45 AM

RULE 108

MUNICIPAL COURT RULES

forth the total rent owed, regardless of the amount. A judgment for rent owed may be entered in the same action. Such money judgment may not exceed the jurisdictional limit of the Court, but shall not constitute a waiver or release by the claimant of any portion of the claim which exceed such jurisdictional limit.

RULE 108.  VENUE (a)   Except as otherwise provided by this Rule, the Rules governing venue in the Court of Common Pleas shall apply to claims filed in the Court. (b)   Objection to venue may be made in writing at any time or orally at the time of trial. Provided that objection to venue is properly served on all parties at least 10 days prior to the first trial listing and appropriate verification of service is filed with the court, then the objecting party need not appear for trial at that time. (c)  If objection to venue is sustained and there is a court of proper venue within Pennsylvania, the action shall not be dismissed but shall be transferred to the appropriate District Justice Court or Court of Common Pleas. The costs and fees for transfer and removal from the record shall be paid for by applying party. (d)   If the objection to venue is denied, the matter shall be continued to a date certain for trial unless all parties agree to proceed immediately to trial.

RULE 109.  CONTENTS OF COMPLAINTS a.  The complaint, except Code Enforcement and Landlord/Tenant Claims which are covered in subsections b. and c. shall set forth: 1.   The full names and street addresses of the parties. (a)   where full names are not available upon reasonable investigation the plaintiff may affirm that the name given is the only one known. (b)   if the address is a post office box in Philadelphia then it must be affirmed that no valid street address is known for the defendant. 2.   Itemization of the sums claimed with attached copy of an invoice or statement of account. If such is not available, plaintiff shall so affirm. 3.  A brief, concise statement of the relevant and admissible facts, occurrences and transactions upon which the claim is based and damages sustained, including relevant times, dates and places. 4.   Where the claim is based upon a writing, a copy of the writing or pertinent portions thereof shall be attached. If the writing is not available, it is sufficient to so state, together with the reasons, and to set forth the substance of the writing. 5.   If the claim involves repairs, an estimate to repair or a repair bill shall be attached. If such is not attached at time of filing, plaintiff shall state in the complaint the reasons the estimate or bill is not provided 6.   If fees other than court costs are requested, then a copy of the contract or pertinent provision of the law authorizing the fee shall be attached. b.   Code or statute enforcement claims shall set forth: 1.   The defendant’s name. 2.   The defendant’s residence or place of employment. 3.   Citation of the section or sections of the statute, code, or ordinance alleged to have been violated. 4.   A brief description of the facts of the violation. 5.   A request for the imposition of penalty and fine as provided by law. 6.   The name of the tax, the year or years of the alleged delinquency, and the amount(s) of such delinquency in actions to impose fines for failure to pay taxes due under any ordinance of the City of Philadelphia. 7.   Averments of prior convictions, where an enhanced penalty is requested.

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LANDLORD AND TENANT

Ch. 65

Part III Ch. 23–35 Mortgages Part IV Ch. 36–40 Insurance Part V Ch. 41–48A Zoning, etc. Part VI Ch. 49–56 Taxation Part VII Ch. 57–63 Litigation Part VIII Ch. 64–67 L/T Part IX Ch. 68–72 Condos, etc. Index

gtb-parealestate22-all.indb 1091

Part II Ch. 15–22 Deeds

1091

Part I Ch. 1–14 Brokers

c.  Landlord/Tenant Complaint. 1.   An action by a landlord against a tenant for the recovery of possession of the leased property, unpaid money due under the lease, and/ or as a result of alleged damage to the leased property shall be made in writing on a form complaint approved by the court. 2.   The plaintiff or the plaintiff’s agent, power of attorney, authorized representative or attorney shall sign and verify the complaint as follows: The facts set forth in this complaint are true and correct to the best of my knowledge, information and belief. This statement is made subject to the penalties of 18 Pa. C.S. § 4904 relating to unsworn falsification to authorities. 3.   The complaint shall set forth: (a)  The names, street and email addresses of the parties and of any counsel representing the parties; (b)  The location and the address of the leased property, possession of which the plaintiff is seeking; (c)   That the plaintiff is the owner of the leased property; (d)   That the plaintiff leased the property for a specified term to the defendant or to some other person under whom the defendant claims a leasehold interest; (e)   That notice to vacate was provided to the defendant in accordance with law or that no notice was required under the terms of the lease; (f)   That rent reserved and due, upon demand, remains unsatisfied, that the term for which the property was leased has been terminated by the plaintiff or ended, that a forfeiture has resulted by reason of a breach of a condition of the lease other than nonpayment of rent, and/or that the defendant is responsible for damages to the leased property or the plaintiff’s personal property; (g)   That the defendant retains possession of the leased property and refuses to surrender possession of the leased property; (h)   The amount of rent, if any, which remains due and unpaid on the date the complaint is filed, whatever additional rent remains due and unpaid on the date of the trial, and/or the amount, if any, claimed for damages to the leased property and/or the plaintiff’s personal property; (i)   That, if applicable, the case involves a subsidized lease or a Low Income Tax Credit unit; (j)   That, if applicable, the landlord is in compliance with the requirements of those sections of the Philadelphia Code that relate to Certificates of Rental Suitability, the City of Philadelphia Partners for Good Housing Handbook and Rental Licenses; (k)   Pertinent information relating to the City of Philadelphia’s Lead Paint Disclosure Law; and (l)  Pertinent information relating to the fitness of the leased property for its intended purpose and to any notices of Philadelphia Code violations issued by the Department of Licenses and Inspections. 4.   Attached to the complaint shall be: (a)   A copy of any written lease or a statement as to why a written lease is unavailable; (b)   A copy of the Rental License which was in force during any time that the plaintiff is seeking to collect rent and is in force at the time of filing; (c)  A copy of the Certificate of Rental Suitability that was provided to the defendant; (d)   A copy of any notice to vacate that was provided to the defendant;

Table of Contents

PART VIII

12/22/21 10:45 AM

RULE 110

MUNICIPAL COURT RULES

(e)  A copy, if applicable, of any relevant power of attorney, authorized representative form or other document showing that the person who verifies the complaint is authorized by the plaintiff to do so.

RULE 110.  CLAIM FACT SHEET FOR PERSONAL INJURY AND PROPERTY DAMAGE ACTIONS a.  Complaints for damages as a result of injuries to persons or property, if in excess of $2,000, shall have annexed thereto a completed Claim Fact Sheet, verified by the claimant. b.   Any party may supplement the same twenty (20) days or more prior to trial. c.   The Court may permit amendment or supplementation of the Claim Fact Sheet at any time for good cause shown. d.   Information not included in the Claim Fact Sheet shall not be admissible at trial. e.   The Claim Fact Sheet shall be substantially in the following form: THE PHILADELPHIA MUNICIPAL COURT (CAPTION) CLAIM FACT SHEET BODILY INJURY/PROPERTY DAMAGE TO THE CLAIMANT: All questions must be answered. Information not supplied may not be introduced at the time of the trial. Note: The contents of this fact sheet and attachments may not be admissible at trial, if prohibited by the Rules of Evidence.

1.   List the names and addresses of all witnesses to this accident and/or event. 2.   List and attach copies of all medical bills, narrative reports, discharge summaries, property damage and loss of earning documents and claims. 3.   Attach copies of all estimates, obtained from any source for damage to property. 4.   If bodily injury is being claimed, list the date, place and any other parties involved in any earlier or later bodily injuries and the same part(s) of your body that were injured in this claim. 5.   Regarding your insurance, if known, state: a.   name of company: __________________________________________________________________________ b.  address: __________________________________________________________________________ c.  policy number: __________________________________________________________________________ d.  claim number: __________________________________________________________________________ e.   claim adjuster handling file: __________. 6.   List and describe photos and/or exhibits that you may introduce at the time of trial. Understanding the false statements herein are subject to the penalties of 18 Pa.C.S. Section 4904 (relating to unsworn falsification to authorities), I certify that the above answers are true and correct to the best of my knowledge, information and belief.

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Ch. 65

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Index

1093

Part IX Ch. 68–72 Condos, etc.

E.  All petitions filed in the Philadelphia Municipal Court, except in cases captioned “CE,” shall be served in the same manner as service of an original process under subsections (A) and (C) of this rule.

Part VIII Ch. 64–67 L/T

2.   by leaving or mailing a copy at/to the party’s residence, place of business or place of last service of the complaint or other filing.

Part VII Ch. 57–63 Litigation

1.   leaving or mailing a copy at/to the address endorsed on the last filing of a party or the party’s attorney of record, but if there is no such endorsement; then,

Part VI Ch. 49–56 Taxation

D.   Except as provided in Section E below, other filings, except writs of execution, shall be served promptly upon every other party by

Part V Ch. 41–48A Zoning, etc.

(3)  A return of service by mail shall be by affidavit in accordance with Pa.R.C.P. 405.

Part IV Ch. 36–40 Insurance

(2)  If the certified mail is returned with notation by the postal authorities that it was refused or unclaimed, the plaintiff shall have the right of service by mailing a copy to the defendant at the same address by first class mail with the return address of sender appearing thereon. Service by ordinary mail is complete if the mail is not returned to sender within 15 days after mailing, or by the date of trial, whichever is later. Service by certified mail and first class mail may be made at the same time.

Part III Ch. 23–35 Mortgages

A.  Except as provided in below, complaints and writs of revival shall be served in the same manner as original process filed in the Court of Common Pleas and may be served in Philadelphia by writ servers appointed by the President Judge of the Municipal Court and in counties outside Philadelphia by said writ servers or by Pennsylvania constables. The provisions of Temporary Pa.R.C.P. 400.1 permitting a competent adult who is not a party to the action to serve original process shall not apply to service of original process in Municipal Court actions. B.   Landlord/tenant complaints for rent or possession may be served by posting the same upon the leased premises by an authorized writ server and mailing a copy to the tenant by first class mail. C. (1)   A complaint may be served by certified mail if defendant’s last known address is a post office box, or outside the County of Philadelphia, or if a writ server has returned the complaint without being able to serve the same. The return receipt card for certified mail shall be marked to show to whom and when delivered and shall show the signature of the defendant or an agent of the defendant authorized to receive the certified mail of defendant. If the signature on the return receipt is that of a person other than the defendant, it shall be presumed, unless the contrary is shown, that the signer was an agent of the defendant authorized to receive the certified mail of defendant.

Part II Ch. 15–22 Deeds

RULE 111.  SERVICE OF COMPLAINTS, NON-EXECUTION PROCESS, PETITIONS AND OTHER DOCUMENTS

Part I Ch. 1–14 Brokers

I hereby authorize the other parties to this action or their representative(s) to obtain my medical reports, employment attendance and compensation records, pertaining to this specific claim, to the extent not privileged. ________________________________________ Claimant (Instructions: This completed form should be attached to your complaint. Use additional sheets of paper if necessary. If the claimant is a corporation, it should execute this form in accordance with the following example: XYZ Corporation by John Jones, President. If you obtain additional information requested by this Claim Fact Sheet, you should immediately send the defendant(s) a supplementary Claim Fact Sheet and file a copy with the court with an affidavit of service twenty (20) days or more prior to trial. Failure to do so may result in the exclusion of this information at trial.)

Table of Contents

PART VIII

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RULE 112

MUNICIPAL COURT RULES

RULE 112.  RETURNS AND AFFIDAVITS OF SERVICE a.   Writ servers shall make returns of service on the forms approved by the Municipal Court. b.   Sheriffs and constables shall make returns of service upon the forms and in the manner customary in their locality. c.   Affidavits of service shall state the time, place and manner of service with sufficient particularity to enable the court to determine whether or not proper service has been made.

RULE 113.  TRIAL ASSIGNMENT Upon commencement of the action, the Municipal Court Administrator shall set the time and place for the trial and shall note the same upon the complaint. Said trial shall be scheduled not more than ninety (90) days from the date the action is commenced, except that trials in landlord-tenant cases shall be scheduled not more than 30 days from the date the action is commenced.

RULE 114.  NOTICE OF DEFENSE a.  A claimant may require defendants who intended to present a defense to notify claimant of the same in writing at least five (5) days before trial by including with a copy of the complaint, a “Notice of Defense” and an envelope bearing first class postage pre-addressed to claimant or claimant’s attorney. If the claimant does not furnish a “Notice of Defense” the complaint should be noted “Notice of Defense Waived”. b.   The Notice of Defense shall be in substantially the following form: PHILADELPHIA MUNICIPAL COURT (CAPTION) NOTICE OF DEFENSE TO THE DEFENDANT(S): If you wish to defend this claim, you must complete and mail this form to the claimant or attorney not less than five (5) days before trial. If you fail to do so, and you choose to appear to defend the above matter, the Court may grant a continuance and require you to return to court on another day. _________________________________ (or) _________________________________ Defendant’s signature Attorney’s signature _________________________________ _________________________________ Print Name Print Name _________________________________ _________________________________ Address Address _________________________________ _________________________________ _________________________________ _________________________________ Telephone Number Client _________________________________ _________________________________ Date Telephone Number ______________________________ Date The defendant or counsel for the defendant hereby gives notice of intention to defend the above matter and verifies under penalties of 18 Pa.C. S. Section 4904

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RULE 115.  COUNTERCLAIMS, CROSS CLAIMS, ADDITIONAL CLAIMS

1.   The continuance notice is made jointly by all parties or a bona fide attempt was made to have the request made jointly; or, 2.   Prejudice for specific reasons will result to the notifying party absent continuance; and b.   Any objection to such request must be received by the Court Administrator not later than five (5) days prior to the scheduled trial and must certify that the objection had been served on all parties.

d.   If a defendant appears without having given notice of intention to defend, where required, claimant shall be granted a continuance, if requested. e.   Applications for continuance made at the time of trial may be granted only for good cause shown.

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Index

1095

Part IX Ch. 68–72 Condos, etc.

c.   The Municipal Court Administrator shall, after the time for response has expired, forward notice of the decision to all parties.

Part VIII Ch. 64–67 L/T

3.   Notice of the request has been served on all parties.

Part VII Ch. 57–63 Litigation

a.   A continuance may be granted, or appropriate administrative action taken in the event of filing of a claim in excess of the Court’s jurisdiction, provided written notice of the request for continuance is submitted to the Municipal Court Administrator or his designee and all other parties at least ten (10) days prior to the scheduled trial. Such notice shall certify that:

Part VI Ch. 49–56 Taxation

RULE 116.  NOTIFICATION OF TRIAL AND CONTINUANCES

Part V Ch. 41–48A Zoning, etc.

d.   In Landlord/Tenant claims, a counterclaim in excess of the Court’s jurisdiction shall follow the procedures set forth in subsections a. and b., supra.; however, the issue of possession shall be retained by the Court.

Part IV Ch. 36–40 Insurance

c.   If the counterclaim, cross claim or additional claim alleges damages exceeding the jurisdiction of the Court, upon receipt of a letter from the party so claiming to the Court Administrator, the matter will be continued to a date certain and the court shall rant leave to the claiming party to commence an action by filing a complaint in the Philadelphia Court of Common Pleas within thirty (30) days and submit verification thereof to the Municipal Court Administrator. If the action is not commenced in the Court of Common Pleas, the failure shall constitute a waiver and release of so much of the claim as exceeds the Jurisdiction of the Philadelphia Municipal Court; provided, however, that in the event of appeal, the waiver and release shall not bar the claiming party from asserting the full amount of the claim.

Part III Ch. 23–35 Mortgages

b.   All claims filed under this Rule shall be served in the manner required for service of the complaint on an original defendant. The cost of filing to be paid by the defendant shall be the same as an initial filing for commencement of actions. A plaintiff joining a co-defendant after the initial filing shall pay for service and the indexing of the co-defendant filing.

Part II Ch. 15–22 Deeds

a.   Counterclaims, cross claims and additional claims shall be filed no less than ten (10) days prior to trial upon the complaint forms approved by the Municipal Court Administrator and provided by the Court, unless the counterclaim, cross claim or additional claim is in the amount of $2000 or less. When such claim is for personal injury or property damage and is in excess of $2000 a completed Claim Fact Sheet shall be annexed and verified.

Part I Ch. 1–14 Brokers

(relating to unsworn falsification to authorities) that this notice was mailed to claimant or claimant’s attorney in the envelope provided on the date noted hereon.

Table of Contents

PART VIII

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RULE 117

MUNICIPAL COURT RULES

f.   The Court may grant continuances when applied for by defendants, served with complaints less than twenty (20) days before trial if the interest of justice requires additional time to prepare a defense.

RULE 117.  APPLICATIONS a.  Applications, including amendments of a complaint, may be made orally or in writing at the time of trial. Applications, including amendments of a complaint, may be made without the presence of all parties, provided that notice of the same was served upon all parties no less than ten (10) days prior to trial. b.   Written applications alleging facts not of record shall be verified by affidavit. c.   All applications after trial or other disposition shall be in writing. d.   No written answer need to be made to any application. e.   Annexed to every written application shall be proposed order for relief. f.  Following the opening of judgment upon written application, trial shall immediately proceed. Notice of this procedure shall appear conspicuously on the Rule to Show Cause in the upper left hand corner, in the following form: “Pursuant to Local Rule 117(f), trial shall immediately proceed if the judgment is opened.”

RULE 118.  RESERVED RULE 119.  VOLUNTARY TERMINATION OF ACTIONS— WITHDRAWALS AND SETTLEMENTS a.   Actions may be voluntarily terminated only upon claimant’s written order that the cause be marked “Withdrawn” or “Settled, Discontinued and Ended.” Approval by the Court shall not be required. b.   A case may not be voluntarily terminated before trial as to less than all defendants without leave of Court after notice to all parties. c.   Upon application and after notice and hearing the Court make strike off a withdrawal or settlement, if appropriate; to protect the rights of any party. d.   Upon application and after notice and hearing the Court may enter judgment for the defaulted balance due in any matter previously marked settled. e.   After “Withdrawal Without Prejudice”, the claimant may order the claim reinstated upon the trial list. A claim so reinstated may not thereafter be marked “Withdrawn” without consent of all the parties or leave of court. f.   All withdrawals shall be deemed to be without prejudice unless otherwise requested by a party or ordered by the Court.

RULE 120.  DISMISSALS—FAILURE TO APPEAR a.   The Court shall mark the claim “No Service—Dismissed without Prejudice” against any defendant who is not served. b.   If the claimant appears and defendant does not, and damages are proven in accordance with Rule 121, judgment by default shall be entered for claimant, provided service was made at least seven (7) days prior to trial, otherwise, the claim shall be continued to a date certain. c.  If the defendant appears and the plaintiff does not, judgment by default shall be entered for defendant, unless the defendant asserts a counterclaim, in which event the claim shall be continued to a date certain. d.  Where none of the parties appear, the claim(s) shall be marked “Withdrawn Without Prejudice” and such claims may be reinstated upon the trial list by request of claimant.

RULE 121.  CONDUCT OF TRIAL: EVIDENCE a.   Except as prescribed by this Rule, the Rules of Evidence shall be applied in all trials.

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Part IX Ch. 68–72 Condos, etc. Index

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Part VIII Ch. 64–67 L/T

1097

Part VII Ch. 57–63 Litigation

a.   A party aggrieved by a judgment for money, or a judgment for possession of real property arising out of a nonresidential lease, may appeal therefrom within 30 days after the date of the entry of the judgment by filing with the prothonotary of the Court of Common Pleas a notice of appeal together with a copy of the Municipal Court disposition sheet. The prothonotary shall not accept an appeal from an aggrieved party which is presented for filing more than 30 days after the date of judgment without leave of the Court of Common Pleas and upon good cause shown.

Part VI Ch. 49–56 Taxation

RULE 124.  TIME AND METHOD OF APPEAL AND STAY OF EXECUTION PENDING APPEAL

Part V Ch. 41–48A Zoning, etc.

a.   Upon application, the Court may order payment of a judgment is installments, over a period not to exceed twelve (12) months. b.   The parties may stipulate in writing to installment payments over any period. c.   Execution shall not issue in either a or b until at least ten (10) days after the filing of affidavits of default and service of the same. A Writ of execution may be filed with the Affidavit of Default. If defendant files a counter affidavit denying default, within five (5) days of service of the affidavit of default, the Municipal Court Administrator shall schedule a hearing before the Court within ten (10) days for adjudication of default and notify the parties of the scheduling of the hearing.

Part IV Ch. 36–40 Insurance

RULE 123.  PAYMENT OF JUDGMENT IN INSTALLMENTS

Part III Ch. 23–35 Mortgages

a.   Written notice of the entry of judgment shall be mailed promptly, by regular mail, by the Municipal Court Administrator to any person who failed to appear at the trial in person or by counsel, but the failure of any party to receive such notice shall not constitute around for relief from judgment. b.   Written notice of continuance, dismissal, or the entry of any other order in a claim shall be mailed promptly, by regular mail, by the Municipal Court Administrator to all parties, but the failure to receive the same shall not constitute around for relief from said order. c.  Judgments shall be deemed entered on the date on which the Judge announces a decision from the bench, or, when taken under advisement, the date of the decision sent by the Judge.

Part II Ch. 15–22 Deeds

RULE 122.  NOTICE OF ENTRY OF JUDGMENT AND ORDERS

Part I Ch. 1–14 Brokers

b.  If at least ten (10) days written notice of intention to offer the following documents in evidence was given to every other party, accompanied by a copy of the document, a party may offer in evidence without further proof the following: 1.   bills, records and reports of hospitals, doctors, dentists, registered nurses, licensed practical nurses and physical therapists, or other licensed health care providers, 2.   bills for drugs, medical appliances, and prostheses, 3.   affidavit of repair, estimate of value, bills for damage to, cost of repair or loss of property, 4.   a report of the rate of earnings and time lost from work or lost compensation prepared by an employer, 5.   an official weather or traffic signal report or standard U.S. government life expectancy table (without the certification required by 42 Pa.C.S. § 5328, 6102), 6.   any other official record kept within Commonwealth or written statement that after examination of the records of the government unit, no record or entry of specified tenor is found to exist in the records designated by the statement, 7.   a bill, estimate, receipt, statement of account or other records which appear to have been made in the regular course of business. c.   Any other party may subpoena a person whose testimony is waived by this Rule to appear at the trial and may cross-examine him as to the documents as if he were a witness for the party offering the document.

Table of Contents

PART VIII

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RULE 125

MUNICIPAL COURT RULES

b.   A party aggrieved by a judgment for possession of real property arising out of a residential lease, may appeal therefrom within 10 days after the date of the entry of the judgment by filing with the prothonotary of the Court of Common Pleas a notice of appeal together with a copy of the Municipal Court disposition sheet. The prothonotary shall not accept an appeal from an aggrieved party which is presented for filing more than 10 days after the date of judgment without leave of the Court of Common Pleas and upon good cause shown. c.   (1) Except as provided in subsection (c)(2), appeals to the Court of Common Pleas shall be governed by Rule 300 et seq. of the Philadelphia Court of Common Pleas Rules (Civil Division). (2)   When an appeal is from a judgment on the merits for the possession of real property, receipt by the Municipal Court Administrator of a copy of the notice of appeal shall operate as a supersedeas only if the tenant/appellant, at the time of filing the appeal, deposits with the prothonotary of the Court of Common Pleas of Philadelphia County a sum of money equal to the lesser of three months’ rent or the rent actually in arrears on the date of the filing of the appeal, based upon the Municipal Court judgment, and thereafter deposits cash with the prothonotary in a sum equal to the monthly rent which becomes due during the period of time the proceedings on appeal are pending in the Court of Common Pleas, such additional deposits to be made within 30 days following the date of the appeal, and each successive 30 day period thereafter. Upon application by the landlord/appellee and approval by the Court of Common Pleas, the Court of Common Pleas shall release appropriate sums from the escrow account on a continuing basis while the appeal is pending to compensate the landlord/appellee for the tenant/appellant’s actual possession and use of the premises during the pendency of the appeal. In the event the appellant fails to deposit the sums of money required by this rule when such deposits are due, the prothonotary of the Court of Common Pleas, upon praecipe filed by the landlord/appellee, shall terminate the supersedeas. Notice of the termination of the supersedeas shall be forwarded via first class mail to all parties and to the Municipal Court Administrator, but if any party has an attorney of record named in filings with the court, notice shall be given to the attorney instead of to the party. Notice to a party that does not have an attorney of record is sufficient if mailed to the party’s last known address of record. Where the deposit of money is made pursuant to this subsection at the time of filing the appeal, the prothonotary of the Court of Common Pleas shall make upon the notice of appeal and its copies a notation that it will operate as a supersedeas when received by the Municipal Court Administrator. If an appeal is stricken or voluntarily terminated, any supersedeas based on it shall terminate. The prothonotary, upon order of the Court of Common Pleas, shall pay the deposits of rental to the party who sought possession of the real property. Note: On March 28, 1996, the Pennsylvania Supreme Court promulgated amendments to the Pennsylvania District Justice Rules of Civil Procedure and instructed the Philadelphia Municipal Court to promulgate rules consistent with the amendments to the District Justice Rules. The amendments to the Philadelphia Municipal Court Rule of Civil Procedure 124 are consistent with the Supreme Court’s amendments within Pennsylvania District Justice Rule of Civil Procedure 1002 and 1008. In view of the Supreme Court’s directive, these rules shall supersede any local rule of the Court of Common Pleas to the extent that said local rules are inconsistent with this rule.

RULE 125.  TRANSFER OF DOMESTIC JUDGMENTS a.  Judgments of other Pennsylvania jurisdictions within the jurisdictional amount of this court may be transferred to this court by filing a certified copy of all the docket entries in the action and a certification of the amount of judgment or a certified copy of the transcript of judgment. Claimant may file, together with the same, a praecipe assessing damages for accrued interest which praecipe shall give credit for payments received, if any. b.   Said judgment shall be docketed and indexed against the defendant forthwith.

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RULE 126.  EXECUTION AND REVIVAL OF JUDGMENTS: SHERIFF’S INTERPLEADER

Part VII Ch. 57–63 Litigation Part VIII Ch. 64–67 L/T Part IX Ch. 68–72 Condos, etc. Index

gtb-parealestate22-all.indb 1099

Part VI Ch. 49–56 Taxation

1099

Part V Ch. 41–48A Zoning, etc.

a.   Claims by and against minors— 1.   Where the claimant is a minor, the action shall be captioned accordingly, e.g. “A, a minor, by B, his guardian” v. defendant. 2.   Where the minority of a defendant is ascertained at the time of filing of the claim his minority shall be designated in the caption accordingly, e.g., “A v. B, a minor”. b.  Service— 1.   Where the defendant is designated a minor in the original caption of the action, also accompanying the service copy of the complaint will be a “Designation of Guardian Notice” in the form approved by the Municipal Court and provided by the Municipal Court Administrator. The “Designation of Guardian Notice” shall be filed with the Court and served upon every other party. 2.   When so filed, the caption will be amended accordingly. 3.   If a guardian of a minor is already designated as such in the initial complaint filed, service shall be made upon such guardian and defendant. c.  Counterclaims— 1.   In any claim brought by a minor designated as such, the defendant may assert any counterclaim which he has against the minor, and the guardian named in the complaint shall continue as the guardian on the counterclaim. d.   Selection and Appointment of Guardian— 1.   If the minority of a party is not determined until the trial date, or a previously designated minor has appeared but has not filed a designation of guardian form, the Court shall appoint a guardian for the minor and may grant a continuance in order to prepare the case. 2.   If the minority of a party against whom any judgment has been rendered is not ascertained until after such entry of judgment, but before the party reaches

Part IV Ch. 36–40 Insurance

RULE 127.  ACTIONS IN WHICH ANY PARTY IS A MINOR

Part III Ch. 23–35 Mortgages

Note: On March 28, 1996, the Pennsylvania Supreme Court promulgated amendments to the Pennsylvania District Justice Rules of Civil Procedure and instructed the Philadelphia Municipal Court to promulgate rules consistent with the amendments to the District Justice Rules. The amendments to Philadelphia Municipal Court Rule of Civil Procedure 126 are consistent with the Supreme Court’s amendments within Pennsylvania District Justice Rules of Civil Procedure 515 and 519.

Part II Ch. 15–22 Deeds

a.   Except as provided below, execution shall not issue until the time for appeal which could be filed with the Court of Common Pleas has expired. b.   Subsequent to entry of judgment of possession of real property arising out of a nonresidential lease, the writ of possession may issue on or after 15 days after judgment, and the alias writ of possession may issue on or after 16 days after issuance of the writ of possession. Subsequent to entry of judgment of possession of real property arising out of a residential lease, the writ of possession may issue on or after 10 days after judgment, and the alias writ of possession may issue on or after 11 days after issuance of the writ of possession. c.   Enforcement and revival of judgments shall be in the same manner as if commenced in the Court of Common Pleas, except that authorized Landlord-Tenant Officers may serve and enforce all writs of possession and alias writs of possession. d.  Sheriff’s interpleader proceedings shall be in accordance with the Rules governing actions in the Court of Common Pleas. e.  An alias writ of possession may not be issued after six months from the date of the judgment for possession without leave of court.

Part I Ch. 1–14 Brokers

c.   A final judgment for a defendant on an appeal from this Court may be satisfied by filing with the Municipal Court Administrator a copy of the Philadelphia Court of Common Pleas docket entries.

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PART VIII

12/22/21 10:45 AM

RULE 128

MUNICIPAL COURT RULES

majority, upon application the court shall then appoint a guardian for said minor and shall vacate any judgment and place the matter upon the trial list. e.  Affidavit— 1.   A minor is competent for purposes of these Rules to execute any affidavit required to be made by any party to an action. f.   Judgments, Costs, Settlement and Discontinuances— 1.   Any judgment entered in an action against a party who is a minor shall be the obligation of the minor only. 2.   No action in which a minor is claimant shall be marked “Withdrawn” unless both the minor and his guardian execute the order for the same.

RULE 128.  FEES1 FILING a.   Commencement of civil actions $0 to $500 . . . . . . . . . . . . . . . . . . . . . $6.00 b.   Commencement of civil actions over $500 to $2,000 . . . . . . . . . . . . .$12.00 c.   Commencement of civil actions $2,000 to $10,000 . . . . . . . . . . . . . . $32.00 d.   Indexing additional names . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $5.00 e.   Orders to satisfy . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $5.00 f.   Writ of Possession . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $4.00 g.  Motions (Petitions—Relistments) . . . . . . . . . . . . . . . . . . . . . . . . . . . . $10.00 h.   Additional defendant filing . . . . . . . . . . . . . . . . . . . . . same as initial filing i.  Co-defendant filing . . . . . . . . . . . . . . (index charge $5.00 only and service) j.  Counterclaim . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . same as initial filing k.  Cross-claims . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . same as initial filing l.  Set-Offs . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . same as initial filing m.   Writ of Revival . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $6.00 The foregoing fee schedule does not cover any costs for service of process. Service of initial process shall be $15.00. All other fees shall be in accordance with the sheriff’s fee bill applicable to Philadelphia County. The commencement of any action or proceeding as well as claims and writs shall be exempt from any library fee or taxes.

RULE 129.  SUBPOENA A subpoena to testify or for the production of documents or things shall be in substantially the same form as in the Court of Common Pleas. Pretrial discovery is not available in the Philadelphia Municipal Court.

RULE 130.  BILL OF COSTS The procedure for filing and taxation of costs shall be the same as in the Court of Common Pleas of Philadelphia County.

RULE 131.  SELF-REPRESENTATION a.   An individual or sole proprietor may be represented by himself or herself, by an attorney at law, or by an authorized representative. b.  A corporation as defined in Part II of Title 15 of Pennsylvania Consolidated Statutes may be represented by an officer, an attorney at law, or by an authorized representative. c.  A general partnership as defined in Part III of Title 15 of Pennsylvania Consolidated Statutes may be represented by a partner, an attorney at law, or by an authorized representative. A limited partnership as defined in Part III of Title 15 of Pennsylvania Consolidated Statutes may be represented by a gen1. Author’s Note: See Administrative Order No. 01 of 2018, In re: Rescission of Municipal Court Civil Rule 128. Fees, rescinding Rule 128.

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Index

gtb-parealestate22-all.indb 1101

Part IX Ch. 68–72 Condos, etc.

1101

Part VIII Ch. 64–67 L/T

2. For an Appointment of Authorized Representative Form (Rules 102 and 131), see http://www. courts.phila.gov/pdf/rules/MC-Civil-Division-Compiled-rules.pdf.

Part VII Ch. 57–63 Litigation

If a tenant has filed a complaint which has been accepted by the Fair Housing Commission prior to the date a complaint in eviction is filed by the landlord, the Court shall continue the case for a sufficient period to enable the Commission to hold its hearings. In those cases where the Landlord has filed his complaint in Municipal Court for eviction, the Fair Housing Commission will not accept a complaint from a tenant prior to the date of the eviction hearing. The judge hearing Landlord and Tenant cases will make the initial determination as to whether a matter should be sent to Fair Housing. Those cases (1) where the tenant can prove that there

Part VI Ch. 49–56 Taxation

RULE 134.  FAIR HOUSING COMMISSION

Part V Ch. 41–48A Zoning, etc.

a.   In claims exceeding $2,000, exclusive of costs and interest, a party may file a written application for discontinuance no less than twenty (20) days prior to trial. b.   Such application shall set forth the reasons why the matter cannot be tried expeditiously or without extensive discovery in this Court. c.  If the application is granted, the claim shall be marked “Discontinued without Prejudice” and the claimant may file a complaint in the Court of Common Pleas.

Part IV Ch. 36–40 Insurance

RULE 133.  DISCONTINUANCE

Part III Ch. 23–35 Mortgages

RULE 132.  RESERVED

Part II Ch. 15–22 Deeds

Official Note: An authorized representative is defined in Rule 102. The addition of an authorized representative as a person who may be a representative of a party is intended to permit a party to select and appoint an individual who has knowledge of the facts and circumstances of the litigation to appear for that party up through the completion of trial in the Philadelphia Municipal Court. As noted in the definition of an authorized representative, an individual must file an appropriate authorization form prior to the commencement of trial in order to act as an authorized representative.2 Additionally, the phrase “personal knowledge” is to be interpreted in conformity with the use of that term in Pa.R.E. 602. This rule is not intended to allow a non-lawyer to establish a business for the purpose of representing others in Court proceedings. The designation of an authorized representative must be made in each case. The Philadelphia Municipal Court will not accept for filing a blanket authorization by which a party seeks to empower an authorized representative to act for the party in all cases that the party may have pending in the Philadelphia Municipal Court.

Part I Ch. 1–14 Brokers

eral partner, an attorney at law, or by an authorized representative. A limited liability company as defined in Part III of Title 15 of Pennsylvania Consolidated Statutes may be represented by a manager, an attorney at law, or by an authorized representative. d.   A professional association as defined in Part IV of Title 15 of Pennsylvania Consolidated Statutes may be represented by an officer of its board of governors, an attorney at law, or by an authorized representative. e.   A business trust as defined in Part V of Title 15 of Pennsylvania Consolidated Statutes may be represented by a trustee, an attorney at law, or by an authorized representative f.   If appointed by a party, an authorized representative may take any action up to and until the conclusion of a trial in the Philadelphia Municipal Court that a party may take, including, but not limited to, filing a statement of claim, filing a landlord tenant complaint, testifying, and submitting documents into evidence. A party shall always have the right to file a document limiting or rescinding a person’s right to act as an authorized representative. g.   Notwithstanding the above, a party may not use an authorized representative in any action in which the City of Philadelphia is seeking fines, penalties, unpaid taxes, or unpaid water/sewer charges.

Table of Contents

PART VIII

12/22/21 10:45 AM

RULE 135

MUNICIPAL COURT RULES

is no rent delinquency and proof is presented of outstanding L & I violations (a copy of the L & I Report or an affidavit from Tenant’s counsel will be sufficient), or (2) those cases where there is no rent delinquency and the tenant claims retaliatory eviction shall be continued for at least sixty (60) days to a date certain and the tenant instructed to file a complaint with the Fair Housing Commission.

RULE 135.  NUISANCE COMPLAINTS The Philadelphia Municipal Court Rules of Civil Procedure shall apply to Nuisance Complaints commenced pursuant to Act #147, enacted November 29, 1990, except as otherwise provided herein. a.   Nuisance Complaints shall be made upon printed forms approved by the Municipal Court Administrator, be verified by the plaintiff and shall set forth: 1.   the names and addresses of the parties, including whether plaintiff resides or operates a business within 500’ of defendant 2.   a brief, concise statement of the relevant and admissible facts, occurrences and transactions upon which the claim is based and damages sustained, including relevant times, dates and places 3.   whether plaintiff personality witnessed the conduct complained of 4.   whether any governmental agencies have been contacted about the conduct complained of 5.   a request for the issuance of an Order restraining the conduct complained of or other appropriate relief 6.   such other information as is required by the Court b.  Nuisance Complaints shall have annexed thereto a completed Nuisance Complaint Fact Sheet, verified by the Plaintiff, and containing such information as required by the Court. c.   A Rule to Show Cause-Summons and proposed Order shall be annexed to every Nuisance Complaint. If the Rule to Show Cause-Summons is denied, the reason for the denial shall be stated by the Court. d.   Nuisance Complaints and any subsequent Petitions and Orders issued by the Court shall be served in the same manner as provided in the Court of Common Pleas Rules of Civil Procedure for Equity Actions, except that service shall be made by Writ Servers in Philadelphia or by Pennsylvania constables on a county outside of Philadelphia. If the Court is not satisfied that a named defendant has received notice of the proceedings or order, the matter shall be continued by the Court for service. e.   If a Nuisance Complaint alleges facts which may constitute a violation of Statute or City Ordinance, the appropriate governmental agencies shall be notified of the filing of the Nuisance Complaint. Government agencies shall have the right to intervene in the proceedings. f.   Proceedings to enforce compliance with a Court Order or to adjudge a party guilty of contempt shall be initiated by the filing of a Rule to Show Cause, Petition and proposed Order. Enforcement of Orders shall be in the same manner as provided in the Court of Common Pleas Rules of Civil Procedure for Equity Actions. g.   Continuances may be granted only for good cause shown and only by the Court at the scheduled hearing listing of the case. Continuance requests must be submitted to the Court at least 10 days before the scheduled hearing and served upon all parties. The request must show good cause for the continuance. Note: Rule 135 Nuisance Complaints has been stayed by the Court until further notice.

RULE 136.  FORFEITURE OF CONFISCATED FIREARMS AND WEAPONS A.   Any firearms, including, but not limited to, rifles, shotguns, pistols, revolvers, machine guns, zip guns, or any type of prohibited offensive weapon, as that term is defined in 18 Pa.C.S.—(relating to crimes and offenses), or any instrument

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Ch. 65

Part V Ch. 41–48A Zoning, etc. Part VI Ch. 49–56 Taxation Part VII Ch. 57–63 Litigation Part VIII Ch. 64–67 L/T Part IX Ch. 68–72 Condos, etc. Index

gtb-parealestate22-all.indb 1103

Part IV Ch. 36–40 Insurance

1103

Part III Ch. 23–35 Mortgages

a.  General Rule. The Municipal Court shall comply with Title II of the Americans With Disabilities Act, 42 U.S.C. § 12131 et seq. b.  Accommodations Generally. The Court shall make reasonable accommodations to allow people with disabilities to participate in Court business as parties or witnesses. c.   Accommodations for Persons Unable to Travel to Court. The Court shall offer reasonable accommodations to parties or witnesses who, as a result of disability, are unable to travel to Court or attend regularly scheduled Court proceedings without such accommodations. The Court shall reasonable offer accommodations including, but not limited to, the following: 1.   Services by telephone (unable to leave home) —hearing by telephone —mediation by telephone —assistance in preparing or filing court papers

Part II Ch. 15–22 Deeds

RULE 137.  COURT ACCESS FOR PERSONS WITH DISABILITIES

Part I Ch. 1–14 Brokers

the possession of which is prohibited upon public streets or public property under Title 10 of the Philadelphia Code, or any other instrument capable of inflicting bodily harm, shall be confiscated and subject to forfeiture if they are carried, controlled or otherwise possessed by any person within any building in which Philadelphia Municipal Courtrooms are situated. B.   The proceedings for the forfeiture of property confiscated under section A of this rule shall be in rem. A claimant of property shall file a Petition For Return of Confiscated Property containing the following: 1.   A description of the property confiscated. 2.   A statement of the time and place where confiscated. 3.   The owner, if known. 4.   The person or persons in possession at the time of confiscation, if known. 5.   The cost of the property. 6.   The reason(s) why the property was carried or possessed within a building where Municipal Court courtrooms are situated. 7.   Documentation, if any, that the person(s) in possession of the property at the time of confiscation was licensed or otherwise permitted to carry or possess such property within a building where Municipal courtrooms are situated. 8.   Signature and verification of the claimant. C.   If no Petition For Return Of Confiscated Property is Filed within ten (10) days from the date of confiscation, the property shall summarily forfeit to the Philadelphia Municipal Court. D.   The President Judge of the Philadelphia Municipal Court or his designee shall review a Petition For Return Of Confiscated Property and may, in his discretion, hold a hearing relating to said petition. The President Judge of his designee shall deny the Petition For Return Of Confiscated Property unless the claimant establishes by a preponderance of the evidence that the person or persons in possession of the property at the time of confiscation (1) were entitled to be in possession under both 18 Pa.C.S. and Title 10 of the Philadelphia Code, and (2) had a lawful reason for possessing such property within a building where Municipal Court courtrooms are situated. E.   A claimant shall have thirty (30) days from the date of the denial of the Petition For Return Of Confiscated Property to file an appeal with the Court of Common Pleas. If the Municipal Court Prothonotary does not receive a Notice of Appeal within thirty (30) days of the denial of said petition, the property shall summarily forfeit to the Philadelphia Municipal Court.

Table of Contents

PART VIII

12/22/21 10:45 AM

RULE 138.-142 MUNICIPAL COURT RULES 2.   Filing by Mail 3.  Modified Scheduling/Locations —special listings (for parties or witnesses who can appear only on certain days, at certain times, or who are unable to stay in Court for a long time) —flexible listing (for parties or witnesses who may arrive late because of special transportation needs) —remote location hearings or mediations (for parties or witnesses able to travel short distances but not to the courthouse) d.  Procedure 1.  At least three business days prior to a court proceeding, or within three business days after service of the complaint, whichever is later, parties or witnesses with disabilities may request reasonable accommodations by telephone, by letter or in person. 2.   The Court shall provide to each applicant a verification form to document the requested accommodations and the disability involved, together with a copy of this rule. The Court shall offer and provide assistance in completing the form, if necessary. 3.  Within one week of receipt of a completed verification form, the Court Administrator or his or her designee shall notify the applicant orally and in writing as to what accommodations will be provided. The Court may in its discretion require the applicant to provide proof of the disability, such as a doctor’s letter or other medical documentation. 4.   Any applicant shall have the right to appeal the Administrator’s decision relating to accommodations on a form provided by the Court with the Administrator’s decision. The appeal shall be decided by a Municipal Court judge in a recorded proceeding. 5.   Following receipt of a timely request for accommodation from a party, the Court shall not take any action in the case that is adverse to that party pending notice of its decision under Rule 137(d)(3).

RULES 138.-142.  RESERVED RULE 143.  RECISION Existing Rules 101 to 121 (Small Claims), 201 to 205 (Landlord/Tenant), and 301 to 304 (Code Enforcements) are rescinded together with every other Rule, regulation, directive, or order of general application, however labeled or promulgated, which has been heretofore enforced by this court to govern civil practice and procedure, and which is inconsistent herewith.

RULE 144.  EFFECTIVE DATE These Rules shall be effective December 11, 1984, and shall apply to all claims or actions filed in or transferred to the Court on or after December 11, 1984. These Rules shall not apply to claims or actions filed in or transferred to the Court prior to December 11, 1984, unless such claims or actions are dismissed or withdrawn without prejudice and reinstated on or after December 11, 1984.

RULE 205.4.   MANDATORY ELECTRONIC FILING. a.   All legal papers filed in the Civil Division of the Philadelphia Municipal Court shall be electronically recorded in the CLAIMS System. b.   Legal papers that are presented in hard-copy format for recording in the CLAIMS System must conform to the following requirements: 1)   Legal papers must not be stapled or permanently bound. 2)   Legal papers must be secured by binder clips or other fasteners that do not puncture the paper or otherwise interfere with scanning.

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Ch. 65

Part V Ch. 41–48A Zoning, etc. Part VI Ch. 49–56 Taxation Part VII Ch. 57–63 Litigation Part VIII Ch. 64–67 L/T Part IX Ch. 68–72 Condos, etc. Index

gtb-parealestate22-all.indb 1105

Part IV Ch. 36–40 Insurance

1105

Part III Ch. 23–35 Mortgages

Author’s Note: For Joint General Court Regulation No. 2015-01, In re: Administrative Search Warrants—Right of Entry—Residential and Commercial Properties, see https://www.courts. phila.gov/pdf/rules/MC-Civil-Division-Compiled-rules.pdf, pages 23-25.

Part II Ch. 15–22 Deeds

Note: In accordance with Pa.R.C.P. 205.4(a)(1) and 239, this Rule sets forth the requirements for electronic filing in the Philadelphia Municipal Court. Rule 205.4(a)(2) provides definitions of “electronic filing,” “filing party” and “legal paper.” Those terms are used in the above local rule and the definitions of those terms found in Rule 205.4(a)(2) are incorporated herein by reference. Additionally, the CLAIMS System is the electronic program designed and developed for the Philadelphia Municipal Court.

Part I Ch. 1–14 Brokers

3)   The court will ordinarily scan legal papers in the form that they are presented. The filer of legal papers is responsible for the redaction of any personal information that is not intended to be scanned and available for review by the public. 4)   To avoid scanning errors, exhibit separator pages must be used instead of exhibit tabs. c.   Legal papers presented electronically for recording in the CLAIMS System, must conform to the following requirements: 1)   All legal papers must be in PDF or a compatible format. 2)   All legal papers must be 8 1/2 inches in width. 3)   No security devices, passwords or other restrictions may be used. d.  After legal papers are filed with the court, a filing party seeking to make any changes or amendments to those legal papers must file a Petition to Amend seeking leave of the court to make such changes or amendments. A copy of the amended legal paper shall be attached to the Petition to Amend. e.   CLAIMS System registration 1)   Persons licensed to practice law in the Commonwealth of Pennsylvania who are not registered on the CLAIMS System shall file legal papers in the First Filing Office. At the time of that initial filing, they shall register to be a user of the CLAIMS System and shall obtain a password. The court reserves the right not to accept at the First Filing Office the filing of legal papers after the initial filing of legal papers if a person licensed to practice law in the Commonwealth of Pennsylvania fails to register on the CLAIMS System. 2) Attorneys registered on the CLAIMS System shall file all legal papers from their remote location in the manner set forth in the CLAIMS System Manual, which is available on the court’s web site (http:// courts.phila. gov). 3)   Persons not licensed to practice law in the Commonwealth of Pennsylvania are not permitted to register as a user of the CLAIMS System and are limited to filing four (4) cases per day through the Court’s on-site interviewers in the First Filing Office. They may access docket information through the CLAIMS System’s public portal. The portal may be found at http://fjd.phila.gov. Once on the site, dockets may be accessed by clicking the “Online Services” link and then “MC Civil Docket Search” on the drop-down menu. f.   Payment of costs 1)   Attorneys registered on the CLAIMS System shall pay costs by using a VISA, American Express, Master Card and Discover credit card through the fee administrator at the time of filing. 2)   Persons filing legal papers in the First Filing Office shall pay costs to the Cashier using cash, a VISA, American Express, Master Card and Discover credit card, or a business check at the time of filing. 3)   Payment by advance deposit is not permissible. g.   Service of legal papers shall be the responsibility of the filing party in accordance with the Rules of Civil Procedure and the court’s local rules.

Table of Contents

PART VIII

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CHAPTER 66 RULES OF CIVIL PROCEDURE FOR MAGISTERIAL DISTRICT JUDGES Pa.R.Civ.P.M.D.J. Nos. 201-1082

Rule

   201.   202.    203.    204.    205.   206.    207.    207.1.    208.    209.   210.    211.    212.    213.    214.    215.   216.    217.   301.   302.    303.    304.    305.    306.    307.    308.    309.    310.    311.    312.    313.    314.    315.    316.   317.    318.    319.   320.    320.    321.   322.    323.    324.   325.   401.    401.1.    402.    403.    404.    405.    406.    407.    408.    409.    410.

Citation of Rules. Definitions. Computation of Time. Purpose and Intent of Rules. Record of Proceedings. Transcript of Record. Costs; Proceedings In Forma Pauperis. Representation in Magisterial District Court Proceedings. Attorney of Record; Notices. Repealed Acts of Assembly not to Continue as Part of the Common Law. Continuances and Stays. Practices Prohibited. Abolished, Consolidated, or Changed Magisterial Districts; Subsequent Filings. Design of Forms. Subpoena to Attend and Testify. Subpoena; Issuance; Service. Advanced Communication Technology. Local Rules. Confidential Information and Confidential Documents. Certification. Definition. Scope. Venue. Commencement of the Action. Form of Complaint. Setting the Date for Hearing; Delivery for Service. Numbering and Filing of Complaints. Service of the Complaint. Service Upon Individuals. Service Upon Partnerships. Service Upon Corporations. Service Upon Unincorporated Associations. Service on a Political Subdivision. Service Outside the Commonwealth. Return, Waiver and Failure of Service; Reinstatement. Claim by Defendant. Amendment to Complaint. [Rescinded]. Informing Plaintiff of Notice of Intention to Defend. Failure of a Party to Appear at the Hearing. [Rescinded]. Request to Withdraw Complaint; Settlement. Hearings and Evidence. Judgment. Judgment—Payment in Installments. Notice of Judgment or Dismissal and the Right to Appeal. [Renumbered]. Definitions. Assignment of Judgment; Parties. Request for Order of Execution. Entry of Judgment in Court of Common Pleas. Issuance and Reissuance of Order of Execution. Notation of Time of Receipt. Service of Order of Execution. Property Subject to Levy. General Monetary Exemption. Setting Aside Exempt Property. Notice Accompanying Order of Execution. Stay of Execution Generally.

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Part II Ch. 15–22 Deeds Part III Ch. 23–35 Mortgages Part IV Ch. 36–40 Insurance Part V Ch. 41–48A Zoning, etc. Part VI Ch. 49–56 Taxation Part VII Ch. 57–63 Litigation Part VIII Ch. 64–67 L/T Part IX Ch. 68–72 Condos, etc.

Right of Executing Officer to Break and Enter. Notice of Sale. Objections to Levy and Property Claims. Plaintiff as Purchaser. Transfer of Property to Purchaser. Distribution of Proceeds. Priorities. Officer’s Expenses and Fees. Abandonment of Levy for Inability to Hold Sale. Officer’s Return. Determination of Property Claims and Disputes. Time for Hearing and Determination; Effective Date of Orders and Determination. Acts of Assembly Suspended. Acts of Assembly Not Suspended. Definition. Venue. Commencement of the Action. Form of Complaint. Setting the Date for Hearing; Delivery for Service. Numbering and Filing of Complaints. Service of Complaint. Notation and Return of Service; Waiver of Service. Claim by Defendant. Amendments to Complaint. [Rescinded]. Continuances. Hearings and Evidence. Disputes Concerning Title. Judgment; Notice of Judgment or Dismissal and the Right to Appeal. Domestic Violence Affidavit. Request for Order for Possession. Issuance and Reissuance of Order for Possession. Notation of Time of Receipt; Service of Order for Possession. Satisfaction of Order by Payment of Rent and Costs. Forcible Entry and Delivery of Possession. Request for Determination of Abandoned Manufactured Home. Officer’s Return. Execution by Levy. Acts of Assembly Suspended. Acts of Assembly Not Suspended. Definitions. Minor May Be Party to Action. Entitlement of Complaint. Service of the Complaint. Representation of Minor by Guardian. Guardian to Supervise Action. Judgment. Costs. Compromise, Settlement, Discontinuance and Payment. Incapacitated Person May Be Party To Action. Entitlement of Complaint. Service of the Complaint. Guardian to Represent Incapacitated Person and Supervise Action. Procedure When Incapacitated Person Not Designated as Such. Judgment and Costs. Judgment—Unrepresented Incapacitated Person. Compromise, Settlement, Discontinuance and Payment. [Rescinded]. Representation in Rule 420 and 519.1 Matters. Magisterial District Judge May Not Appoint Guardian. Appellate Proceedings. Acts of Assembly Suspended. Definitions. Time and Method of Appeal. Bond for Appeal. Filing Complaint or Praecipe on Appeal. Appeals Involving Cross-Complaints.

Index

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Ch. 66

Part I Ch. 1–14 Brokers

   411.    412.    413.    414.    415.    416.    417.    418.   419.    420.    421.    481.    482.   501.    502.    503.    504.    505.    506.    507.    508.    509.   510.   511.    512.    513.    514.    514.1.    515.    516.    517.    518.    519.    519.1.   520.    521.    581.    582.   801.    802.    803.    804.    805.    806.   807.    808.    809.    810.    811.    812.    813.    814.    815.    816.   817.    818.    819.   820.    881.   1001.    1002.    1003.    1004.

LANDLORD AND TENANT

Table of Contents

PART VIII

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RULE 201    1005.   1006.    1007.    1008.    1009.    1010.    1011.    1012.    1013.    1014.    1015.    1016.    1017.    1018.    1019.    1020.    1081.    1082.

DISTRICT JUDGE RULES

Service of Notice of Appeal and Other Papers. Striking Appeal. Procedure on Appeal. Appeal as Supersedeas. Praecipe for Writ of Certiorari. Bond for Writ of Certiorari. Issuance and Service of Writ of Certiorari. Return by Magisterial District Judge. Writ of Certiorari as Supersedeas. Orders of Court in Certiorari Proceedings. Certiorari and Appeal Not Permitted. Statement of Objection. Form and Content of Statement of Objection. Duties of Magisterial District Judge Upon Receipt of Statement of Objection. Consideration of Statement of Objection by Court of Common Pleas. Statement of Objection to Operate as Stay. Acts of Assembly Suspended. Acts of Assembly Not Suspended.

RULE 201.   CITATION OF RULES. These rules shall be known as the Pennsylvania Rules of Civil Procedure Governing Actions and Proceedings Before Magisterial District Judges and may be cited as “Pa.R.Civ.P.M.D.J. ______.”

RULE 202.  DEFINITIONS. As used in these rules, the following words and phrases shall have the following meanings unless the context clearly indicates otherwise or the particular word or phrase is expressly defined in the chapter in which the particular rule is included: “adult” means an individual eighteen years of age or older; “advanced communication technology” is any communication equipment that is used as a link between parties in physically separate locations. “attorney at law” means an individual admitted to practice law by the Supreme Court of Pennsylvania; “attorney of record” means an attorney at law who has filed a written document in accordance with Rule 207.1 as appearing for and representing a party in a legal proceeding; “competent adult” means an individual eighteen years of age or older who is (1) not an incapacitated person, (2) not a party to the action, and (3) not an employee or a relative of a party; “constable” means a certified constable or a certified deputy constable; “magisterial district judge” means the magisterial district judge before whom the action or proceeding is pending; “incapacitated person” means an incapacitated person as that term is defined under 20 Pa.C.S. § 5501 (relating to meaning of incapacitated person); “prothonotary” includes any officer exercising the powers and performing the duties of the office of prothonotary as set forth in the Judicial Code, and includes the analogous officer in those counties which do not have a prothonotary; “sheriff” includes a deputy sheriff; “subpoena” means an order of the magisterial district judge commanding a person to attend and testify at a particular time and place; it may also require the person to produce documents or things which are under the possession, custody, or control of that person; “verified,” when used in reference to a written statement of fact by the signer, means supported by oath or affirmation or made subject to the penalties of 18 Pa.C.S. § 4904 relating to unsworn falsification to authorities.

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Ch. 66

Part I Ch. 1–14 Brokers

Official Note: Justices of the peace are now statutorily known as “magisterial district judges.” See 42 Pa.C.S. § 102 and 42 P.S. § 20003(d). As to magisterial district judges’ civil jurisdiction, see 42 Pa.C.S. § 1515(a). The definitions of “sheriff” and “constable” include their deputies. As to deputy sheriffs, see 16 P.S. §§ 1202 and 4202. As to deputy constables, see 13 P.S. §§ 21–23. As to certification of constables and deputy constables, see 42 Pa.C.S. § 2942.

Table of Contents

PART VIII

RULE 203.   COMPUTATION OF TIME.

The purpose and intent of these rules is to provide a complete and exclusive procedure for every action or proceeding to which they are applicable.

RULE 205.  RECORD OF PROCEEDINGS. TRANSCRIPT OF RECORD.

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Index

1109

Part IX Ch. 68–72 Condos, etc.

A.   Except as otherwise provided by law, the costs for filing and service of the complaint shall be paid at the time of filing. B.   Except as otherwise provided by paragraph C of this rule, the prevailing party in magisterial district court proceedings shall be entitled to recover taxable costs from the unsuccessful party. Such costs shall consist of all filing, personal service, witness, and execution costs authorized by Act of Assembly or general rule and paid by the prevailing party. C.   Taxable costs on appeal or certiorari shall be paid by the unsuccessful party, and a plaintiff who appeals shall be considered an unsuccessful party if he or

Part VIII Ch. 64–67 L/T

RULE 206.   COSTS; PROCEEDINGS IN FORMA PAUPERIS.

Part VII Ch. 57–63 Litigation

Official Note: Subdivision A defines the contents of records of proceedings before magisterial district judges, which makes use of prescribed forms. Subdivision B provides that certified true copies of these records are sufficient “transcripts,” for whatever purpose the transcript is to be used. Subdivision C suspends inconsistent Acts of Assembly to the extent of their inconsistency.

Part VI Ch. 49–56 Taxation

A.   A record of any proceedings before a magisterial district judge, including proof of service, returns, entry of judgment and other matters, appearing on a form prescribed by the State Court Administrator shall for all purposes be considered to be a sufficient record of those proceedings. B.   A copy of any such record appearing on such a form, certified to be a true copy by the magisterial district judge in whose office the record is on file or by any other official custodian of the record, shall for all purposes be considered to be a sufficient transcript of the record, including any judgment, order or other disposition contained therein. C.  Any Act of Assembly or part thereof inconsistent with this rule is suspended, to the extent of such inconsistency.

Part V Ch. 41–48A Zoning, etc.

Official Note: This rule sets forth the general purpose and intent to make mandatory the use of the procedures prescribed in these rules.

Part IV Ch. 36–40 Insurance

RULE 204.   PURPOSE AND INTENT OF RULES.

Part III Ch. 23–35 Mortgages

Official Note: This rule is derived from Pa.R.C.P. Nos. 106 and 108.

Part II Ch. 15–22 Deeds

A.   When any period of time is referred to in any rule, such period in all cases, except as otherwise provided in subdivision B of this rule, shall be so computed as to exclude the first and include the last day of such period. Whenever the last day of any such period shall fall on Saturday or Sunday, or on any day made a legal holiday by the laws of this Commonwealth or of the United States, such day shall be omitted from the computation. B.   Whenever in any rule the lapse of a number of months after a certain day is required, such number of months shall be computed by counting the months from such day, excluding the calendar month in which such day occurs, and shall include the day of the month in the last month so counted having the same numerical order as the day of the month from which the computation is made, unless there are not so many days in the last month so counted, in which case the period computed shall expire with the last day of such month.

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RULE 206

DISTRICT JUDGE RULES

she does not obtain on appeal a judgment more favorable than that obtained in the magisterial district court proceeding. A defendant who prevails on certiorari proceedings brought by the defendant or who obtains a favorable judgment upon appeal by either party shall not be liable for costs incurred by the plaintiff in the preceding magisterial district court proceeding and may recover taxable costs in that proceeding from the plaintiff. A plaintiff who is unsuccessful in the magisterial district court proceeding may recover taxable costs in that proceeding from the defendant if the plaintiff is successful on appeal, and in that event the defendant may not recover costs in the magisterial district court proceeding from the plaintiff. D.  This rule shall apply to all civil actions and proceedings except actions pursuant to the Protection From Abuse Act or 42 Pa.C.S. §§ 62A01–62A20. Official Note: “Execution” costs include those for executing an order for possession. The items constituting taxable costs in appeal or certiorari proceedings will be governed by law or general rule applicable in the court of common pleas. Under paragraph B, «personal service. . .costs» refers only to personal service since mail costs are to be borne by the plaintiff in all cases in accordance with Section 1725.1 of the Judicial Code, 42 Pa.C.S. § 1725.1. This rule does not provide for the assessment of filing costs against an unsuccessful plaintiff who has been permitted to proceed in forma pauperis and who remains indigent. See Brady v. Ford, 679 A.2d 837 (Pa. Super. 1996). For special provisions governing actions pursuant to the Protection From Abuse Act, see Sections 6106(b) and (c) of the Domestic Relations Code, 23 Pa.C.S. §§ 6106(b) and (c). For special provisions governing actions seeking relief for victims of sexual violence or intimidation, see 42 Pa.C.S. §§ 62A01–62A20.

E.  Proceedings in forma pauperis (1)  A party who is without financial resources to pay the costs of litigation shall be entitled to proceed in forma pauperis. (2)  Except as provided by subparagraph (3), the party shall file a petition and affidavit in the form prescribed by subparagraph (6). The petition may not be filed prior to the commencement of the action, which action shall be accepted in the first instance, without the payment of filing costs. Except as prescribed by subparagraph (3), the magisterial district judge shall act promptly upon the petition and shall enter a determination within five days from the date of the filing of the petition. If the petition is denied, in whole or in part, the magisterial district judge shall briefly state the reasons therefor. The unsuccessful petitioner may proceed no further so long as such costs remain unpaid. (3)   If the party is represented by an attorney, the magisterial district judge shall allow the party to proceed in forma pauperis upon the filing of a praecipe that contains a certification by the attorney that the attorney is providing free legal service to the party and believes the party is unable to pay the costs. (4)   A party permitted to proceed in forma pauperis shall not be required to pay any costs imposed or authorized by Act of Assembly or general rule which are payable to any court or any public officer or employee. The magisterial district judge shall inform a party permitted to proceed in forma pauperis of the option to serve the complaint by mail in the manner permitted by these rules. A party permitted to proceed in forma pauperis has a continuing obligation to inform the court of improvement in the party’s financial circumstances which will enable the party to pay costs. (5)  If there is a monetary recovery by judgment or settlement in favor of the party permitted to proceed in forma pauperis, the exonerated costs shall be taxed as costs and paid to the magisterial district judge by the party paying the monetary recovery. In no event shall the exonerated costs be paid to the indigent party.

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LANDLORD AND TENANT

Ch. 66

Part IV Ch. 36–40 Insurance Part V Ch. 41–48A Zoning, etc. Part VI Ch. 49–56 Taxation Part VII Ch. 57–63 Litigation Part VIII Ch. 64–67 L/T Part IX Ch. 68–72 Condos, etc. Index

gtb-parealestate22-all.indb 1111

Part III Ch. 23–35 Mortgages

1111

Part II Ch. 15–22 Deeds

[Caption] Petition I hereby request that I be permitted to proceed in forma pauperis (without payment of the filing and service costs). In support of this I state the following: 1. I am the plaintiff in the above matter and because of my financial condition am unable to pay the costs for filing and service of this action. 2. I am unable to obtain funds from anyone, including my family and associates, to pay the costs of litigation. 3. I represent that the information below relating to my ability to pay the costs is true and correct: (a)  Name: _______________________________________________________________ (a)  Address: _____________________________________________________________ (b)  Employment (b)  If you are presently employed, state (b)  Employer: ____________________________________________________________ (b)  Address: _____________________________________________________________ (b)  Salary or wages per month: ___________________________________________ (b)  Type of work: _________________________________________________________; (b)  If you are presently unemployed, state (b)  The date of my last employment was: __________________________________ (b)  Salary or wages per month: ___________________________________________ (b)  Type of work: _________________________________________________________ (c)   Other income that I have received within the past twelve months ________ (c)  Business or profession: ________________________________________________ (c)  Other self-employment: ________________________________________________ (c)  Interest: ______________________________________________________________ (c)  Dividends: ____________________________________________________________ (c)  Pension and annuities: ________________________________________________ (c)  Social security benefits: _______________________________________________ (c)  Support payments: ____________________________________________________ (c)  Disability payments: __________________________________________________ (c)  Unemployment compensation and supplemental benefits: ________________ (c)  Workers’ compensation: _______________________________________________ (c)  Public assistance: _____________________________________________________ (c)  Other: ________________________________________________________________ (d)   Other contributions to household support (d)  Spouse Name: ________________________________________________________ (d)  My Spouse is employed: _______________________________________________ (d)  Employer: ____________________________________________________________ (d)  Salary or wages per month: ___________________________________________ (d)  Type of work: _________________________________________________________ (d)  Contributions from children: ___________________________________________ (d)  Contributions from parents: ___________________________________________ (d)  Other contributions: __________________________________________________

Part I Ch. 1–14 Brokers

(6)   The petition for leave to proceed in forma pauperis and affidavit shall be substantially in the following form:

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PART VIII

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RULE 207

DISTRICT JUDGE RULES

(e)  Property owned (e)  Cash: ________________________________________________________________ (e)  Checking account: ____________________________________________________ (e)  Saving account: _______________________________________________________ (e)  Certificates of deposit: ________________________________________________ (e)  Real estate (including home): __________________________________________ (e)  Motor vehicle: Make _________________________, Year ___________________ (e)  Cost __________, Amount owed $ _______________________________________ (e)  Stocks; bonds: ________________________________________________________ (e)  Other: _______________________________________________________________ (f)   Debts and obligations (f)  Mortgage: ____________________________________________________________ (f)  Rent: _________________________________________________________________ (f)  Loans: ________________________________________________________________ (f)  Other: ________________________________________________________________ (g)   Persons dependent upon me for support (g)  Spouse Name: ________________________________________________________ (g)  Ages of Minor Children, if any: (g)  Name: _____________________________________________Age ______________ (g)  Name: _____________________________________________Age ______________ (g)  Name: _____________________________________________Age ______________ (g)  Other persons: (g)  Name: _______________________________________________________________ (g)  Relationship: _________________________________________________________ 4. I understand that I have a continuing obligation to inform the Court of improvement in my financial circumstances which would permit me to pay the costs incurred herein. 5. I verify that the statements made in this petition are true and correct. I understand that false statements herein are made subject to the penalties of 18 Pa.C.S. § 4904, relating to unsworn falsification to authorities. Date: ____________________ _____________________________________________________________________ Petitioner Action by the Magisterial District Judge: _____________________________________ Date: ________________________ ______________________________ Magisterial District Judge Official Note: This Rule substantially follows Pa.R.C.P. No. 240. Under subparagraph E(4), “any costs” includes all filing, service, witness, and execution costs.

RULE 207.  REPRESENTATION IN MAGISTERIAL DISTRICT COURT PROCEEDINGS. (A)   In magisterial district court proceedings: (1)   Individuals may be represented by themselves, by an attorney at law, or by a representative with personal knowledge of the subject matter of the litigation and written authorization from the individual to appear as the individual’s representative. (2)   Partnerships may be represented by an attorney at law, a partner, or by

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Ch. 66

Part IV Ch. 36–40 Insurance Part V Ch. 41–48A Zoning, etc. Part VI Ch. 49–56 Taxation Part VII Ch. 57–63 Litigation Part VIII Ch. 64–67 L/T Part IX Ch. 68–72 Condos, etc.

(A)   An attorney at law shall be deemed the attorney of record for a party if and only if the attorney files with the magisterial district court a written statement acknowledging that he or she represents the party in the proceeding. The written statement must include the attorney’s name, mailing address, and Supreme Court of Pennsylvania attorney identification number. (B)   An attorney of record for a party shall remain the attorney of record for that party until: (1)  the attorney of record gives written notice to the magisterial district court and the party that he or she is withdrawing as the attorney of record for the party, or; (2)  another attorney becomes the attorney of record for the party in accordance with paragraph (A). (C)   Except as otherwise provided in these rules, when a party has an attorney of record or is represented by a non-lawyer representative under Rule 207, and when a rule specifies that a notice is to be given or mailed to the party, a copy of the notice shall also be given or mailed to the attorney of record or the non-lawyer representative.

Part III Ch. 23–35 Mortgages

RULE 207.1.   ATTORNEY OF RECORD; NOTICES.

Part II Ch. 15–22 Deeds

Official Note: This rule is intended to permit a non-lawyer representative, employee, or authorized agent to appear on behalf of an individual, partnership, corporation or similar entity, or unincorporated association, but not to allow a non-lawyer to establish a business for the purpose of representing others in magisterial district court proceedings. It is intended that the designation of a non-lawyer representative, employee, or authorized agent to represent a party is to apply only on a case-by-case basis. A party may not give blanket authorization for a non-lawyer representative, employee, or authorized agent to represent the party in all cases involving the party. As to “personal knowledge of the subject matter of the litigation” see Pa.R.E. 602 and Comment. A business organized as a sole proprietorship may be represented in the same manner as an individual under paragraph (A)(1). See rules in Chapter 800 as to representation of minors and incapacitated persons by guardians. To gain admission pro hac vice pursuant to Pa.B.A.R. 301, the applicant must seek administrative approval by the IOlTA Board prior to the sponsor’s request for the applicant’s admission before the magisterial district court. The disposition and content of the request is governed by Pa.R.C.P. No. 1012.1.

Part I Ch. 1–14 Brokers

an employee or authorized agent of the partnership with personal knowledge of the subject matter of the litigation and written authorization from a partner to appear as the partnership’s representative. (3)   Corporations or similar entities and unincorporated associations may be represented by an attorney at law, by an officer of the corporation, entity, or association, or by an employee or authorized agent of the corporation, entity, or association with personal knowledge of the subject matter of the litigation and written authorization from an officer of the corporation, entity, or association to appear as its representative. (B)   A representative, employee, or authorized agent: (1)   must provide written verification of personal knowledge of the subject matter of the litigation, and (2)   may take no action on behalf of a party until the written authorization required under paragraph (A)(1), (2), or (3) is filed with the court. (C)  Admission pro hac vice in accordance with Pennsylvania Bar Admission Rule 301 shall proceed by request, the disposition and content of which shall conform with the requirements of Pennsylvania Rule of Civil Procedure 1012.1.

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PART VIII

Official Note: Paragraph (B) provides for the withdrawal of an attorney of record. Nothing

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Index

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RULE 208

DISTRICT JUDGE RULES

in this rule requires leave of court or that another attorney become the attorney of record before an attorney may withdraw. But compare Pa.R.C.P. No. 1012(b). Nothing in paragraph (B) is intended to affect an attorney’s ethical duty to his or her client. See Pennsylvania Rules of Professional Conduct Rule 1.16. Paragraph (C) makes clear that copies of all notices must be given or mailed to all parties of record as well as to all attorneys of record and non-lawyer representatives. See Rule 207 regarding the designation and authorization of a non-lawyer representative.

RULE 208.  REPEALED ACTS OF ASSEMBLY NOT TO CONTINUE AS PART OF THE COMMON LAW. No Act of Assembly pertaining to civil practice and procedure before magisterial district judges or to appellate proceedings with respect to judgments and decisions of magisterial district judges in civil matters which was repealed by § 2 of the Judiciary Act Repealer Act, Act of April 28, 1978, P. L. 202, No. 53, shall continue as part of the common law of Pennsylvania under § 3(b) of that Act.

RULE 209.   CONTINUANCES AND STAYS. A.   Continuances may be granted for cause or by agreement. B.   Continuances shall be to a specific time and date. The magisterial district judge shall note continuances on the docket and shall promptly give or mail to the parties written notice of continuances. C.   Except for good cause shown, (1)   not more than one continuance shall be granted to each party, and (2)   the aggregate of all continuances shall not extend the date of the hearing: (a)  beyond 90 days from the date of filing the plaintiff’s complaint in proceedings commenced pursuant to Rule 303, or (b)  beyond 30 days from the date of filing the plaintiff’s complaint in proceedings commenced pursuant to Rule 502. D.   In all proceedings governed by these rules, the following shall constitute cause for granting a continuance: (1)   the scheduling of a party’s attorney of record to appear at any proceeding under the Pennsylvania Rules of Disciplinary Enforcement, whether (a)   as counsel for a respondent-attorney before a hearing committee, special master, the Disciplinary Board or the Supreme Court; (b)   as a special master or member of a hearing committee; or (c)   as a member of the Disciplinary Board. (2)   the scheduling of a party’s attorney of record to appear at any proceeding involving the discipline of a justice, judge or magisterial district judge under Section 18 of Article V of the Constitution of Pennsylvania, whether (a)   as counsel for a justice, judge or magisterial district judge before the special tribunal provided for in 42 Pa.C.S. § 727, the Court of Judicial Discipline, the Judicial Conduct Board or any hearing committee or other arm of the Judicial Conduct Board; or (b)   as a member of the Court of Judicial Discipline, the Judicial Conduct Board or any hearing committee or other arm of the Judicial Conduct Board. E.   Continuances and stays shall be granted in compliance with federal or state law, such as the Servicemembers Civil Relief Act, 50 U.S.C. § § 3901 et seq. Official Note: This rule was amended in 2005 to consolidate the provisions of former Rules 320 (relating to continuances in civil actions) and 511 (relating to continuances in possessory actions) into one general rule governing continuances. The limitations set forth in subdivision C are intended to ensure that these cases proceed expeditiously. The grounds set forth in subdivisions D and E, of course, are not intended to be the only grounds on which a continuance

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Ch. 66

Table of Contents

PART VIII will be granted.

RULE 211.  ABOLISHED, CONSOLIDATED, OR CHANGED MAGISTERIAL DISTRICTS; SUBSEQUENT FILINGS.

The Court Administrator of Pennsylvania, in consultation with the Minor Court Rules Committee, shall design and publish forms necessary to implement these rules.

Official Note: See Rule 202 for definition of “subpoena.” Compare Pa.R.C.P. No. 234.1. The magisterial district judge has discretion to limit the scope of subpoenas to persons, documents, or things that are relevant to the cause of action before the magisterial district judge. As to Subdivision B, see Rule 210.

A.   Magisterial district judges may issue subpoenas throughout the Commonwealth. Magisterial district judges shall not issue subpoenas in blank. B.   Upon the request of a party proceeding pro se, the authorized representative of a party, or an attorney of record, the magisterial district judge may is-

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Index

1115

Part IX Ch. 68–72 Condos, etc.

RULE 214.   SUBPOENA; ISSUANCE; SERVICE.

Part VIII Ch. 64–67 L/T

A.   A subpoena may be used to command a person to attend and to produce documents or things only at a trial or hearing in an action or proceeding pending before the magisterial district judge. B.   A subpoena may not be used to compel a person to appear or to produce documents or things ex parte before an attorney, a party, or a representative of the party.

Part VII Ch. 57–63 Litigation

RULE 213.   SUBPOENA TO ATTEND AND TESTIFY.

Part VI Ch. 49–56 Taxation

RULE 212.   DESIGN OF FORMS.

Part V Ch. 41–48A Zoning, etc.

Official Note: This rule provides a procedure for filing or serving an ancillary or supplementary action, when the action should be filed or served in the magisterial district court which rendered the judgment or issued other process, but that court has been abolished, consolidated or otherwise changed. Such actions may include a request for order of execution or a request for a certified copy of a judgment (see Rule 402), an objection to levy or other property claim (see Rule 413), a request for order of possession (see Rule 515), or a request for entry of satisfaction (see Rule 341), among others. The rule provides that, under these circumstances, the action may be filed or served only in the magisterial district court that has become the official custodian of the original record, even though that court did not render the judgment.

Part IV Ch. 36–40 Insurance

When these rules specify that a party is to file or serve an ancillary or supplementary action in the magisterial district court which rendered a judgment or issued other process, but that court no longer exists or its magisterial district boundaries have been changed, the party may file or serve the ancillary or supplementary action only in the magisterial district court in which the original record of the proceedings containing the judgment is filed.

Part III Ch. 23–35 Mortgages

Official Note: In keeping with the policy of making the procedures in actions before magisterial district judges as simple and nontechnical as possible and in view of the time limitations imposed elsewhere in these rules, it was thought desirable to prohibit specifically the practices mentioned in the four subdivisions of this rule. See also Rules 204 and 381.

Part II Ch. 15–22 Deeds

The following practices are specifically prohibited: (1)   The use of depositions or interrogatories for discovery or use at a hearing. (2)   Adding parties after the previous judgment. (3)   Attachment proceedings previous to judgment. (4)   Entry of a judgment by warrant of attorney or by confession of judgment.

Part I Ch. 1–14 Brokers

RULE 210.   PRACTICES PROHIBITED.

12/22/21 10:45 AM

RULE 215

DISTRICT JUDGE RULES

sue a subpoena signed and under the seal of the magisterial district judge. The magisterial district judge shall specify in the subpoena the name and address for service of the person subpoenaed; the name of the party on whose behalf the person is being ordered to testify; the date, time, and place at which the person is to appear; and a description of the documents or things that the person is to produce, if any. (1)   The party, authorized representative, or attorney of record requesting the subpoena shall provide the magisterial district court with the information required in paragraph (B). (2)   If the subpoena is to be issued, the magisterial district court shall fill in the information provided and return it to the requestor for service. C.  A subpoena may be served upon any person within the Commonwealth by a competent adult (1)   by handing a copy to the person; or (2)   by handing a copy (a)   at the residence of the person to an adult member of the family with whom the person resides; but if no adult member of the family is found, then to an adult in charge of such residence; or (b)  at the residence of the person to the clerk or manager of the hotel, inn, apartment house, boarding house, or other place of lodging at which the person resides; or (c)   at any office or usual place of business of the person to the person’s agent or other person for the time being in charge thereof. (D)  The person making service of a subpoena must file a return of service form in the magisterial district court in which the hearing is pending within 48 hours of service, and in no event later than the commencement of the hearing. Filing under this paragraph may be accomplished by sending a copy by facsimile transmission. (E)   If a subpoenaed witness is under the age of 18, the parent or guardian of the witness shall be served with a copy of the subpoena in the same manner as prescribed in paragraph (C). Official Note: When issuing a subpoena, the magisterial district judge has discretion to limit the scope of the subpoena to persons, documents, or things that are relevant to the cause of action before the magisterial district judge. Paragraph (D) provides for filing by facsimile transmission. It is the intent of these rules that filing documents by facsimile transmission is permitted only when expressly provided for in the rules. Paragraph (D) also provides for use of a form promulgated by the Court Administrator of Pennsylvania. Paragraph (E) provided that parties choosing to subpoena witnesses under the age of 18 must alert the magisterial district court of the witness’ age and are responsible for any additional service costs. See Rule 202 for definitions of “subpoena” and “attorney of record.” Compare Pa.R.C.P. Nos. 234.2 and 402(a) and Pa.R.Crim.P. 107. See also Rule 207 regarding representation by an authorized representative. For the scope of the contempt powers of magisterial district judges, see 42 Pa.C.S. § 4137. See also Pa.R.Crim.P. 140-142.

RULE 215.   ADVANCED COMMUNICATION TECHNOLOGY. Magisterial district judges may authorize the use of advanced communication technology during any civil proceeding or action governed by the Rules of Civil Procedure for Magisterial District Judges. Official Note: This rule was adopted in 2008 to specify that magisterial district judges may use advanced communication technology in their courtrooms during adversarial proceedings. In an ex parte proceeding, such as an action pursuant to the Protection From Abuse Act, 23 Pa.C.S. §§ 6101–6122, or 42 Pa.C.S. §§ 62A01–62A20 (providing for protection of victims of sexual violence or intimidation), magisterial district judges also may permit the use of ad-

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Ch. 66

RULE 216.   LOCAL RULES.

Official Note: Effective August 1, 2016, Pennsylvania Rule of Judicial Administration 103 was amended to consolidate and include all local rulemaking requirements, including local rules applying to proceedings under the Rules of Civil Procedure before Magisterial District Judges. All local rules previously promulgated remain effective upon compilation and publication pursuant to Pa.R.J.A. No. 103(d)(7).

I certify that this filing complies with the provisions of the Case Records Public Access Policy of the Unified Judicial System of Pennsylvania that require filing confidential information and documents differently than non-confidential information and documents.

RULE 301.   DEFINITION. SCOPE.

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Index

A.   An action against an individual may be brought in and only in a magisterial district where:

Part IX Ch. 68–72 Condos, etc.

RULE 302.  VENUE.

Part VIII Ch. 64–67 L/T

Official Note: Civil action includes actions formerly denominated “assumpsit” or “trespass” and civil claims for fines and penalties. See Section 1515(a)(3) of the Judicial Code, 42 Pa.C.S. § 1515(a)(3) prescribing the jurisdiction of magisterial district judges. The rules in this chapter will apply to all civil actions before magisterial district judges except an action by a landlord against a tenant for the recovery of possession of real property which are governed by Chapter 500 of these rules. Statutes authorizing a civil fine or penalty include the following: (1) Section 10.1 of the Act of April 27, 1927, P. L. 465, No. 299, added by section 2 of the Act of December 21, 1988, P. L. 1315, No. 168, 35 P. S. § 1230.1 relating to clean indoor air; and Sections 617.1 and 817-A of the Act of July 31, 1968, P. L. 805, No. 247, as added by sections 62 and 77 of the Act of December 21, 1988, P. L. 1329, No. 170, 53 P. S. §§ 10617.1, 10817-A relating to violation of zoning and joint municipal zoning ordinances.

Part VII Ch. 57–63 Litigation

A.  As used in this chapter, “action” means a civil action brought before a magisterial district judge. B.  Civil action includes any action within the jurisdiction of a magisterial district judge except an action by a landlord against a tenant for the recovery of the possession of real property. C.   As used in this chapter, “complaint” or Civil Action shall include, where applicable, the attached and completed Civil Action Hearing Notice form.

Part VI Ch. 49–56 Taxation

The Confidential Information Form and the Confidential Document Form can be found at http://www.pacourts.us/public-records.

Part V Ch. 41–48A Zoning, etc.

Official Note: Applicable authority includes but is not limited to statute, procedural rule or court order. The Case Records Public Access Policy of the Unified Judicial System of Pennsylvania (Policy) can be found on the website of the Supreme Court of Pennsylvania at http://www. pacourts.us/public-records. Sections 7.0(D) and 8.0(D) of the Policy provide that the certification shall be in substantially the following form:

Part IV Ch. 36–40 Insurance

Unless public access is otherwise constrained by applicable authority, any attorney, or any party if unrepresented, who files a document pursuant to these rules with a magisterial district court shall comply with the requirements of Sections 7.0 and 8.0 of the Case Records Public Access Policy of the Unified Judicial System of Pennsylvania (Policy) including a certification of compliance with the Policy and, as necessary, a Confidential Information Form, unless otherwise specified by rule or order of court, or a Confidential Document Form in accordance with the Policy.

Part III Ch. 23–35 Mortgages

RULE 217.  CONFIDENTIAL INFORMATION AND CONFIDENTIAL DOCUMENTS. CERTIFICATION.

Part II Ch. 15–22 Deeds

The requirements for the promulgation and amendment of local procedural rules for proceedings in magisterial district courts subject to these rules are set forth in Pennsylvania Rule of Judicial Administration 103(d).

Part I Ch. 1–14 Brokers

vanced communication technology. Limited technology available in some magisterial district courts may preclude the use of certain advanced communication technology options. Compare Pa.R.Crim.P. 119.

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PART VIII

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RULE 302

DISTRICT JUDGE RULES

(1)   the individual may be served, or (2)   the cause of action arose, or (3)   a transaction or occurrence took place out of which the cause of action arose. B.   An action against a partnership may be brought in and only in a magisterial district where: (1)   the partnership regularly conducts business, or (2)   the cause of action arose, or (3)   a transaction or occurrence took place out of which the cause of action arose. C.   Except as otherwise provided by an Act of Assembly or by subdivision D of this rule, an action against a corporation or similar entity may be brought in and only in a magisterial district where: (1)   its registered office or principal place of business is located, or (2)   it regularly conducts business, or (3)   the cause of action arose, or (4)   a transaction or occurrence took place out of which the cause of action arose. D.   An action upon a policy of insurance against an insurance company, association or exchange, either incorporated or organized in Pennsylvania or doing business in this Commonwealth, may be brought in a magisterial district: (1)   designated in subdivision C of this rule, or (2)   where the insured property is located, or (3)  where the plaintiff resides, in actions upon policies of life, accident, health, disability, and live stock insurance or fraternal benefit certificates. E.  An action against an unincorporated association may be brought in and only in a magisterial district where: (1)   the association regularly conducts business or any association activity, or (2)   the cause of action arose, or (3)   a transaction or occurrence took place out of which the cause of action arose. F.   An action against a political subdivision may be brought in and only in a magisterial district the whole or part of which is located in the political subdivision. G.   A transaction or occurrence which took place on a roadway, highway, railway or body of water designated as a boundary between magisterial districts shall be considered to have taken place in any of the magisterial districts so bounded. H.   The magisterial district judge or the defendant may raise improper venue at any time prior to the conclusion of the hearing. If the magisterial district judge finds that venue is improper and there is a court of proper venue within Pennsylvania, the complaint shall not be dismissed but may be transferred to the court having proper venue. Official Note: This rule replaces the temporary venue provisions of § 14 of the Schedule to Article V, Pennsylvania Constitution, 1968. It combines, with some minor changes, the Pennsylvania Rules of Civil Procedure relating to venue. See: (1)   Individuals: Pa. R.C.P. No. 1006(a). (2)   Partnerships: Pa. R.C.P. No. 2130(a). (3)   Corporations: Pa. R.C.P. No. 2179(a). (4)   Insurance Policies: Pa. R.C.P.No. 2179(b). (5)   Unincorporated Associations: Pa. R.C.P. No. 2156(a). (6)   Political Subdivisions: Pa. R.C.P. No. 2103(b).

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Ch. 66

Part IX Ch. 68–72 Condos, etc. Index

gtb-parealestate22-all.indb 1119

Part VIII Ch. 64–67 L/T

1119

Part VII Ch. 57–63 Litigation

Official Note: Rule 304 is designed to promote uniformity, simplification of procedure, and better access by the public to the judicial services of magisterial district judges. The use of

Part VI Ch. 49–56 Taxation

A.   The complaint shall be made in writing on a form prescribed by the State Court Administrator. B.   The complaint shall set forth: (1)   The names and addresses of the parties. (2)   The amount claimed. (3)   A brief and concise statement of the facts upon which the claim is based including: (a)   the date, time and place of the occurrence and a brief description of the damages sustained when the claim alleges tortious conduct; or (b)   the date of the transaction and a brief description of the subject matter when the claim is contractual; (c)  the date and description of the occurrence when the claim is for a civil fine or penalty and the citation to the statute authorizing the claim. (4)   Such other information as shall be required on the complaint form. C.  The complaint shall be signed by the plaintiff or plaintiff’s agent and verified as follows: The facts set forth in this complaint are true and correct to the best of my knowledge, information and belief. This statement is made subject to the penalties of 18 Pa.C.S. § 4904 relating to unsworn falsification to authorities. ___________________________________ Signature D.   For every individual defendant, the plaintiff or plaintiff’s agent shall attach an affidavit to the complaint indicating that the defendant is in the military service, that the defendant is not in the service, or that the plaintiff is unable to determine whether or not the defendant is in the service.

Part V Ch. 41–48A Zoning, etc.

RULE 304.   FORM OF COMPLAINT.

Part IV Ch. 36–40 Insurance

Official Note: This rule does not permit the commencement of an action by summons.

Part III Ch. 23–35 Mortgages

An action shall be commenced by the filing of a complaint.

Part II Ch. 15–22 Deeds

RULE 303.   COMMENCEMENT OF THE ACTION.

Part I Ch. 1–14 Brokers

This rule is not intended to repeal special statutory venue provisions not included therein (see Rule 382(2)), such as the venue provisions of the Goods and Services Installment Sales Act, Act of October 28, 1966, P. L. 7, Art. XII, § 1205, 69 P. S. § 2205, nor is it intended to contravene the special venue provisions of § 811 of the Fair Debt Collection Practices Act, 15 U.S.C. 1692i, pertaining to actions brought by debt collectors against consumers. For a definition of “transaction or occurrence” see Craig v. W. J. Thiele & Sons, Inc., 395 Pa. 129, 149 A.2d 35 (1959). Subdivision G is intended to take care of indistinct, “center line” or other confusing boundaries in the respects mentioned. When a complaint is transferred under subdivision H, it is treated as if originally filed in the transferee court on the date first filed in a court. If service of the complaint has already been made, no new service may be necessary, but the transferee court must set a new date, time and place for the new hearing and notify the parties thereof. It is the intent of this rule that cases may be transferred to any Pennsylvania court with appropriate jurisdiction and venue, including the Philadelphia Municipal Court. Likewise, nothing in this rule prohibits a court other than a magisterial district court from transferring a case to a magisterial district court with proper jurisdiction and venue, in accordance with the procedural rules of the transferring court. The jurisdictional limits of the magisterial district courts and the Philadelphia Municipal Court are governed by Sections 1515 and 1123 of the Judicial Code, respectively. 42 Pa.C.S. §§ 1515 and 1123. There are no costs for transfer of the complaint and no additional filing costs when a case is transferred from one magisterial district court to another magisterial district court. There are no additional filing costs when a case is transferred from the Philadelphia Municipal Court to a magisterial district court. There may be additional service costs when a case is transferred.

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PART VIII

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RULE 305

DISTRICT JUDGE RULES

a form will help to accomplish this purpose and will also provide easier statistical and other administrative control by the Supreme Court. The filings required by this rule are subject to the Case Records Public Access Policy of the Unified Judicial System of Pennsylvania. See Rule 217. A civil action that alleges tortious conduct was formerly called an action in trespass. A civil action in which the claim is contractual was formerly called an action in assumpsit. Subdivision D requires the plaintiff to affirm if the defendant is or is not in the military service, or if the defendant’s military service status is unknown. This information is required to ensure that an eligible defendant receives the protections afforded by the Servicemembers Civil Relief Act, 50 U.S.C. § § 3901 et seq. The affidavit shall be made in writing on a form prescribed by the State Court Administrator.

RULE 305.  SETTING THE DATE FOR HEARING; DELIVERY FOR SERVICE. The magisterial district judge, at the time the complaint is filed, shall: (1)   Set a hearing date which shall be not less than 12 or more than 60 days from the date the complaint is filed. (2)  Insert the hearing time and date and the address of the magisterial district court in the complaint form. (3)   Deliver a copy of the complaint form with hearing time and date thereon to the plaintiff. (4)   Deliver a copy of the complaint form with hearing time and date thereon for service on the defendant as hereinafter set forth, which copy shall contain the following notice: (a)   If you intend to enter a defense to this complaint you should so notify this office immediately. (b)   If you have a claim against the plaintiff which is within magisterial district court jurisdiction and which you intend to assert at the hearing, you must file it on a complaint form at this office at least five days before the date set for the hearing. (c)  YOU MUST APPEAR AT THE HEARING AND PRESENT YOUR DEFENSE. UNLESS YOU DO, JUDGMENT MAY BE ENTERED AGAINST YOU BY DEFAULT. Official Note: The 60 day limitation in subdivision (1) of this rule was considered to provide sufficient time in which to effect service under requirement of Rule 307 that service be made at least ten days before the hearing. See Rule 314E as to reinstatement of complaints dismissed because of lack of service. The copies required in subdivisions (3) and (4) are provided by the Magisterial District Judge Automated System. Giving the notice mentioned in subdivision (4) (a) is necessary if the defendant is to obtain judgment under Rule 319A because of the plaintiff’s failure to appear. Subdivision (4)(b) gives notice of the right to file a cross-claim within magisterial district court jurisdiction. The procedure for filing such a claim is set forth in Rule 315, and the Note to that rule indicates possible procedures as to counterclaims not within magisterial district court jurisdiction. Subdivision (4)(c) provides for a warning concerning a default judgment, which may be rendered under Rule 319B.

RULE 306.   NUMBERING AND FILING OF COMPLAINTS. The magisterial district judge shall retain the original of the complaint. Complaints shall be numbered consecutively in order of filing, annually, and shall be filed as prescribed by the Court Administrator of Pennsylvania. Complaints filed in the case by a defendant shall take the same number as the plaintiff’s complaint. Official Note: It was felt that this rule contained all the provisions concerning office procedures that should be required by rule. The Court Administrator of Pennsylvania publishes the Magisterial District Judge Automated Office Clerical Procedures Manual that prescribes uniform filing, record keeping and other office procedures. The phrase “[c]omplaints filed in the case by a defendant” includes cross-complaints filed pursuant to Rule 315 and supplementary actions filed pursuant to Rule 342.

RULE 307.   SERVICE OF THE COMPLAINT. Service shall be made at least ten days before the hearing, in the following manner:

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Official Note: Compare Pa.R.C.P. Nos. 402–403. Subdivisions (1), (2) and (3) are not intended to be preferential in the order of their numbering.

Part IV Ch. 36–40 Insurance

Service of the complaint upon an individual defendant shall be made: (1)   by handing a copy to the defendant, or (2)   by handing a copy: (a)   to an adult member of the defendant’s family at his residence, but if no adult member of the family is found, then to an adult person in charge of such residence, or (b)  to the clerk or manager of a hotel, inn, apartment house, boarding house or other place of lodging at which the defendant resides, or (c)   at any office or usual place of business of the defendant to his agent or to the person for the time being in charge thereof, or (3)   by mailing a copy to the defendant by certified mail or comparable delivery method resulting in a return receipt in paper or electronic form. The return receipt shall show the signature of the defendant or those persons designated in subdivision (2) of this rule. If the signature on the return receipt is that of any persons designated in subdivision (2) of this rule, it shall be presumed, unless the contrary is shown, that the signer was an agent of the defendant.

Part III Ch. 23–35 Mortgages

RULE 308.   SERVICE UPON INDIVIDUALS.

Part II Ch. 15–22 Deeds

Official Note: This rule provides a number of alternative methods of serving the complaint. Subdivision (1) permits a certified constable to serve the complaint anywhere in the Commonwealth and authorizes deputized service by sheriffs. Subparagraph (2)(a) permits service out of the county through magisterial district judges in the county in which service is to be made, a method of service which might be preferable to service under subdivision (1) by a certified constable of the county where the complaint was filed when that county is a considerable distance from the county of service. Subparagraph (2)(b) provides for service in Philadelphia by writ servers of the Philadelphia Municipal Court or by the sheriff of Philadelphia, although service may still be made in accordance with subdivision (1) if the magisterial district judge so desires. Subdivision (3) makes service by mail, when permitted, at the option of the plaintiff. This was done because service by mail will ordinarily reduce costs.

Part I Ch. 1–14 Brokers

(1)   A copy of the complaint for each defendant shall be delivered by the magisterial district judge for service to the sheriff of, or any certified constable in, the county in which the magisterial district of the magisterial district judge is situated. If this service is not available to the magisterial district judge, service may be made by any certified constable of the Commonwealth. If the complaint is delivered for service to the sheriff and service is to be made in a county other than the one in which the magisterial district of the magisterial district judge is situated, the sheriff shall deputize the sheriff of the county in which service is to be made. A certified constable may serve the complaint anywhere in the Commonwealth. (2)   If service is to be made in a county other than the one in which the magisterial district judge’s magisterial district is situated, the magisterial district judge, instead of acting in accordance with subdivision (1), may: (a)  send the copy of the complaint for service to a magisterial district judge in the county in which service is to be made who shall deliver it for service to the sheriff of, or any certified constable in, that county. If this service is not available to the magisterial district judge, service may be made by any certified constable of the Commonwealth, or (b)   if service is to be made in Philadelphia, send the copy of the complaint for service to the Court Administrator of the Philadelphia Municipal Court who shall deliver it for service to a writ server of that court or to the sheriff of Philadelphia. (3)   When service by mail is permitted by the rules in this chapter, it shall be at the option of the plaintiff and shall be made by the magisterial district judge by certified mail or comparable delivery method resulting in a return receipt in paper or electronic form. Such service may be made to any place in or outside the Commonwealth.

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RULE 309

DISTRICT JUDGE RULES

RULE 309.   SERVICE UPON PARTNERSHIPS. Service of the complaint upon a partnership shall be made: (1)   by handing a copy to a partner, manager, clerk or other person for the time being in charge, at any regular place of business of the partnership, or (2)   on a partner in the same manner as an individual if there is no regular place of business, or (3)   by mailing, via certified mail or comparable delivery method resulting in a return receipt in paper or electronic form, a copy to the regular place of business of the partnership. The return receipt shall show that the complaint was received by the partnership. Official Note: Compare Pa.R.C.P. No. 423.

RULE 310.   SERVICE UPON CORPORATIONS. Service of the complaint upon a corporation or similar entity shall be made: (1)   on an executive officer, partner or trustee of the corporation, or (2)   on an agent or person for the time being in charge of, and only at, any office or usual place of business of the corporation, or (3)   on an agent authorized by appointment to receive service of process, or (4)   by mailing, via certified mail or comparable delivery method resulting in a return receipt in paper or electronic form, a copy to the regular place of business of the corporation. The return receipt shall show that the complaint was received by the corporation or similar entity. Official Note: Compare Pa.R.C.P. No. 424.

RULE 311.  SERVICE UPON UNINCORPORATED ASSOCIATIONS. Service of the complaint upon an unincorporated association shall be made upon the manager, clerk or other person for the time being in charge of any place where such association regularly conducts any business or association activity, provided the person served is not a plaintiff in the action. Official Note: Compare Pa. R.C.P. No. 2157(a). Service by mail is not allowed under this rule because of the irregularity of operation of many unincorporated associations.

RULE 312.  SERVICE ON A POLITICAL SUBDIVISION. As used in this rule, “political subdivision” means any county, city, borough, incorporated town, township, school district, vocational school district, county institution district or municipal or other local authority. Service of the complaint upon a political subdivision shall be made: (1)   by handing a copy to an agent duly authorized by the political subdivision to receive service of process, or to the mayor, or to the president, chairman, secretary or clerk of the tax levying body thereof, or (2)   in counties where there is no tax levying body by handing a copy to the chairman or clerk of the board of county commissioners, or (3)   by mailing, via certified mail or comparable delivery method resulting in a return receipt in paper or electronic form, a copy to the office of the political subdivision. The return receipt shall show that the complaint was received by the political subdivision. Official Note: Compare Pa.R.C.P. No. 422. The definition of “political subdivision” is derived from Pa.R.C.P. No. 76.

RULE 313.   SERVICE OUTSIDE THE COMMONWEALTH. When service of the complaint is to be made upon a defendant outside the Commonwealth, it shall be made:

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A.   The person serving the complaint shall, at or before the time of the hearing, make proof of service which shall show (1) the manner of service, (2) the date, time, and place of service and, (3) the name and relationship or title, if any, of the person on whom the complaint was served. The proof of service shall be filed with the original complaint. B.  When service is made by certified mail or comparable delivery method resulting in a return receipt in paper or electronic form, the return receipt shall be filed with the original complaint. C.   The appearance of a defendant in person or by representative or the filing by a defendant of a claim in the case shall be deemed a waiver of any defect in service but not a waiver of a defect in venue. D.   If the complaint is not served on the defendant in time to permit holding a hearing within 60 days of the filing of the complaint, the magisterial district judge shall dismiss the complaint without prejudice.

Part III Ch. 23–35 Mortgages

RULE 314.  RETURN, WAIVER AND FAILURE OF SERVICE; REINSTATEMENT.

Part II Ch. 15–22 Deeds

Official Note: See the Judicial Code, § 5322, 42 Pa.C.S. § 5322 (as amended by § 10(61) of the Judiciary Act Repealer Act, Act of April 28, 1978, P. L. 202, No. 53) and § 5329(1), 42 Pa.C.S. § 5329(1), as to the basis of personal jurisdiction over persons outside the Commonwealth. The magisterial district judge may designate any Pennsylvania sheriff or constable to make service under subdivision (1), but such service should not be attempted if it would be offensive to the jurisdiction in which service is to be made. See Uniform Interstate and International Procedures Act, § 2.02, Commissioners’ Comment, 13 Uniform Laws Annotated 297. Alternatively, the magisterial district judge may designate any adult other than the plaintiff to make service under subdivision (1). Although the magisterial district judge may not designate the plaintiff as the person to make such service, the plaintiff may suggest to the magisterial district judge the name of a person to make service. If service is made by ordinary mail under subdivision (2), the magisterial district judge shall note that fact on the docket with the remark that a sufficient time having elapsed the ordinary mail was not returned. The magisterial district judge shall attach to the original complaint form the returned certified or comparable delivery method resulting in a return receipt in paper or electronic form with the notation by the postal authorities or commercial carrier that the defendant refused to accept it. If service is to be made under subdivision (3), the magisterial district judge may send the service copy of the complaint to an appropriate official of the jurisdiction in which service is to be made. If service is made under subdivisions (1) or (3), proof of service may be made on the form provided under Rule 314A with such alterations as may be necessary or in any manner provided by the law of the jurisdiction in which the service is made for proof of service in an action in any of its courts of general jurisdiction. Compare Pa.R.C.P. No. 404.

Part I Ch. 1–14 Brokers

(1)   by delivery in the manner prescribed by Rule 308, 309, 310 or 311, whichever is applicable, by a Pennsylvania sheriff or constable or by any adult, other than the plaintiff designated by the magisterial district judge or (2)   by certified mail or comparable delivery method resulting in a return receipt in paper or electronic form as provided by Rule 308, 309 or 310, whichever is applicable; (a)  if the mail is returned with a notation by the postal authorities or commercial carrier that receipt was refused, then the magisterial district judge may serve the complaint by sending a copy of the complaint by ordinary mail to the same address with the return address on the envelope. Service by ordinary mail is complete if the mail is not returned to the sender within fifteen days after the mailing; or (b)  if the mail is returned with a notation by the postal authorities or commercial carrier that it was unclaimed, the plaintiff shall make service by another means pursuant to these rules, or (3)  in the manner provided or prescribed by the law of the place in which service is to be made for service in that place in an action in any of its courts of general jurisdiction.

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RULE 315

DISTRICT JUDGE RULES

E.(1)   When the complaint is dismissed without prejudice for failure to make service pursuant to paragraph D of this rule as to all defendants, upon written request of the plaintiff the complaint may be reinstated at any time and any number of times. The date of reinstatement shall be the date upon which the request for reinstatement is filed. (2)   When the complaint has been filed against multiple defendants and subsequently dismissed without prejudice for failure to make service pursuant to paragraph D of this rule as to less than all defendants, any further action against an unserved defendant after a hearing on the merits or the entry of a default judgment must be initiated by the filing of a new complaint. Official Note: The provision concerning appearance not being a waiver of venue was inserted in paragraph C of this rule to prevent the concentration of business in the office of a favorable magisterial district judge. Also, the public cannot generally be expected to be aware of venue provisions. See Rule 302H regarding improper venue. Paragraph D is intended to prevent the accumulation of stale claims in the office of the magisterial district judge. Subparagraph E(1) provides for the reinstatement, upon written request of the plaintiff, of a complaint that has been dismissed without prejudice for failure to make service under paragraph D against all defendants. Compare Pa.R.C.P. No. 401(b). The written request for reinstatement may be in any form and may consist of a notation on the permanent copy of the complaint form, «Reinstatement of complaint requested,» subscribed by the plaintiff. The magisterial district judge shall mark all copies of the reinstated complaint, «Complaint reinstated. Request for reinstatement filed on ____ (date).» If it is necessary to use a new form for the reinstated complaint, the reinstated complaint, except for service portions thereof, shall be an exact copy of the original complaint, although signatures may be typed or printed with the mark «/s/» indicating an actual signature. The language in subparagraph E(1) that a complaint may be reinstated «at any time» will permit reinstatement after a faulty service without waiting for further proceedings in the case. Reinstatement must occur within the period of the statute of limitations from the date of the last filing or reinstatement. The cost for reinstating a complaint is specified in Section 1725.1 of the Judicial Code, 42 Pa.C.S. § 1725.1. In addition, there may be additional server costs for service of the reinstated complaint. Subparagraph E(2) addresses the scenario involving multiple defendants when timely service is not made upon all defendants, resulting in a dismissal without prejudice as to some defendants. Subparagraph E(2) clarifies that the plaintiff may not reinstate the complaint after the hearing or entry of a default judgment in this circumstance, but must initiate an entirely new action by filing a new complaint, subject to the applicable fees and costs for a new filing.

RULE 315.   CLAIM BY DEFENDANT. A.  The defendant, by filing a complaint at least five days before the date set for the hearing, may assert in the case any claim against the plantiff that is within the jurisdiction of a magisterial district judge. Such a claim need not arise from the same transaction or occurrence from which the plaintiff’s claim arose, nor need it be the same type of claim. B.   The rules governing the form, processing, and service of a plaintiff’s complaint shall apply also to the defendant’s complaint. The magisterial district judge shall set a date and time for the consolidated hearing of both complaints that shall not be less than 12 or more than 30 days from the filing of the defendant’s complaint. The magisterial district court shall promptly notify the parties of the date and time set for the consolidated hearing of both complaints. C.   A money judgment for the plaintiff or for the defendant, but not for both, shall be entered with respect to such cross-complaints, any lesser amount found due on the claim asserted in one being deducted from the greater amount found due on the claim asserted in the other. D.  Rescinded. Official Note: Paragraph A of this rule permits the defendant to file a cross-complaint against the plaintiff at least five days before the date originally set for the hearing, if it is for a claim cognizable by a magisterial district judge. See Section 1515(a)(3) of the Judicial Code, 42 Pa.C.S. § 1515(a)(3), as to waiver of jurisdictional limits, a defendant filing a cross-complaint

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RULE 317.  [RESCINDED].

Part IV Ch. 36–40 Insurance

Official Note: It was felt that the usual notice requirements involved with respect to amendments made prior to the hearing are too difficult and burdensome to be made applicable to magisterial district court proceedings. Consequently, this rule forbids amendments other than those made at the hearing in the presence of the adverse party.

Part III Ch. 23–35 Mortgages

Amendments to the complaint may be made only at the hearing in the presence of the adverse party or his representative. Amendments other than those made as to form shall constitute grounds for continuance.

Part II Ch. 15–22 Deeds

RULE 316.   AMENDMENT TO COMPLAINT.

Part I Ch. 1–14 Brokers

being considered a “plaintiff” as to the cross-complaint within the meaning of this statute. The requirement that a cross-complaint be filed at least five days before the hearing is intended to give the magisterial district judge time to notify the parties of any new hearing date and time. Notice under paragraph B is not a substitute for proper service. If the defendant does not file an action at least five days before the hearing, the defendant may still file a complaint against the plaintiff but it will not be processed as a cross-complaint. No provision has been made for a stay of the magisterial district court proceedings upon notice by the defendant of intention to commence an action in the court of common pleas on a claim against the plaintiff not within magisterial district judge jurisdiction. It was thought that no such provision was necessary, for if the plaintiff prevails in the magisterial district court action the defendant may appeal, the appeal operates as an automatic supersedeas of the money judgment, the case is heard de novo, and the defendant may assert a claim in the court of common pleas, possibly as a counterclaim. See Rules 1002, 1007, and 1008. Since a cross-complaint is in the nature of a responsive pleading, there is no fee for filing it. No cross-complaint may be filed in a supplementary action filed under Rule 342. See Rule 342 and Note.

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Official Note: See Rule 213 governing subpoenas.

If the defendant gives the magisterial district court notice of intention to defend in accordance with Rule 305(4)(a), the magisterial district court shall promptly give the plaintiff written notice that the defendant intends to enter a defense.

RULE 319.  FAILURE OF A PARTY TO APPEAR AT THE HEARING.

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Official Note: The first sentence of subdivision A of this rule provides for a judgment for the defendant rather than merely a dismissal of the plaintiff’s complaint. This provision is intended to prevent the plaintiff from bringing the action again before a magisterial district judge, although he can appeal. The continuance called for in the second sentence of subdivision A will constitute a form of notice to defend and if the plaintiff does not appear at the second

Part VII Ch. 57–63 Litigation

A.  If a plaintiff who has been given notice of the defendant’s intention to defend does not appear at the hearing, but the defendant does appear, the magisterial district judge shall enter judgment for the defendant or continue the case for cause. If the plaintiff does not appear at the hearing and the defendant does, but the plaintiff has not been given notice of the defendant’s intention to defend, the case shall be continued. B.   If the defendant does not appear at the hearing, the magisterial district judge shall, whether or not the plaintiff appears, enter judgment for the plaintiff or continue the case for cause. If judgment is entered for the plaintiff, the magisterial district judge shall assess damages for the amount to which the plaintiff is entitled if it is for a sum certain or which can be made certain by computation, but if it is not, the damages shall be assessed by the magisterial district judge at a hearing at which the issues shall be limited to the amount of the damages. If such a hearing is to be held, the magisterial district judge shall give the defendant written notice of the time and date of the hearing, which shall be not less than ten (10) days from the date of the notice.

Part VI Ch. 49–56 Taxation

Official Note: No specific form of notification from the defendant to the magisterial district court is required by this rule, but entries on the docket will show that the defendant gave notice of intention to defend and that the magisterial district court gave written notice to the plaintiff.

Part V Ch. 41–48A Zoning, etc.

RULE 318.  INFORMING PLAINTIFF OF NOTICE OF INTENTION TO DEFEND.

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RULE 320

DISTRICT JUDGE RULES

hearing judgment will be entered against him. As to the provisions concerning assessment of damages in subdivision B, compare Pa. R.C.P. Nos. 1037(b) and 1047(b).

RULE 320.  [RESCINDED]. Official Note: See Rule 209 governing continuances.

RULE 320.  REQUEST TO WITHDRAW COMPLAINT; SETTLEMENT. A(1)   A plaintiff may withdraw the complaint prior to the commencement of the hearing by filing a written notice of withdrawal with the magisterial district court. Upon receipt of such notice, the magisterial district court shall note the withdrawal of the complaint on the docket, cancel any scheduled hearing (except for a consolidated hearing on a cross-complaint pursuant to Rule 315B), and notify the parties in writing that the complaint has been withdrawn. (2)  A withdrawal of the complaint filed prior to the commencement of the hearing shall be deemed to be without prejudice. The plaintiff may file a new complaint on the same cause of action upon payment of all applicable fees and costs. B(1)   The parties may file a written notice of settlement of the complaint with the magisterial district court at any time prior to the entry of judgment. Upon receipt of such notice, the magisterial district court shall note the case settled on the docket, cancel any scheduled hearing (except for a consolidated hearing on a cross-complaint pursuant to Rule 315B), and notify the parties in writing that the complaint has been marked settled. (2)   Where the parties have filed a notice of settlement with the magisterial district court and a subsequent breach of the settlement agreement occurs, a party may file a new complaint citing breach of the settlement agreement as the cause of action. C(1)  The withdrawal or settlement of the plaintiff’s complaint shall not affect the right of the defendant to proceed with a cross-complaint filed pursuant to Rule 315A. (2)  The defendant may file a written notice of withdrawal of the crosscomplaint in the manner set forth in subdivision A. (3)   The parties may file a written notice of settlement of the cross-complaint in the manner set forth in subdivision B. Official Note: A complaint filed pursuant to subparagraph A(2) or B(2) shall not be treated as a “reinstatement” of the underlying action, and is subject to all prescribed fees and costs for filing and service of a complaint. Compare with Rule 314E, which provides for reinstatement of the complaint under the limited circumstance of failure to make timely service. This rule also applies to the withdrawal or settlement of a cross-complaint. Moreover, a cross-complaint will survive the withdrawal or settlement of the corresponding complaint. Prior Rule 320, addressing continuances, was rescinded by Order of December 16, 2004, effective July 1, 2005, and its provisions were added to Rule 209.

RULE 321.   HEARINGS AND EVIDENCE. The magisterial district judge shall be bound by the rules of evidence, except that a bill, estimate, receipt or statement of account which appears to have been made in the regular course of business may be introduced in evidence by any party without affidavit or other evidence of its truth, accuracy or authenticity. Official Note: The exception to the rules of evidence provided by this rule was inserted because the Pennsylvania statutes making certain business entries admissible in evidence (see the Judicial Code, § 6108, 42 Pa.C.S. § 6108) apparently do not apply to bills, receipts and the like which are made in the regular course of business but are not made as “records.” The fact that this exception permits the introduction of these items of evidence without affidavit or other evidence of their truth, accuracy or authenticity does not, of course, preclude the introduction of evidence contradicting them. The exception was deemed necessary because the items of evidence made admissible thereby are probably the proofs most commonly used in minor judiciary proceedings.

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PART VIII

RULE 322.  JUDGMENT.

RULE 323.   JUDGMENT—PAYMENT IN INSTALLMENTS. The magisterial district judge may in the entry of judgment order the payment of the same in periodic installments that shall not extend beyond 12 months from the date of judgment.

RULE 324.  NOTICE OF JUDGMENT OR DISMISSAL AND THE RIGHT TO APPEAL.

Part V Ch. 41–48A Zoning, etc. Part VI Ch. 49–56 Taxation

Official Note: As to paragraph B(2), see Rule 402D and Note. As to paragraph B(3), see Rule 341.

Part IV Ch. 36–40 Insurance

A.  Upon the entry of the judgment, the magisterial district court shall promptly give or mail to the parties written notice of judgment or dismissal. B.   The written notice of judgment or dismissal shall contain: (1)   notice of the right of the parties to appeal, the time within which the appeal must be taken, and that the appeal is to the court of common pleas, (2)   notice that, except as otherwise provided in the rules, if the judgment holder elects to enter the judgment in the court of common pleas, all further process must come from the court of common pleas and no further process may be issued by the magisterial district judge, and (3)   notice that unless the judgment is entered in the court of common pleas anyone interested in the judgment may file a request for entry of satisfaction with the magisterial district judge if the judgment debtor pays in full, settles, or otherwise complies with the judgment.

Part III Ch. 23–35 Mortgages

Official Note: Since many of the defendants coming before magisterial district judges are apt to be in financial difficulties, it was thought advisable to provide for payment in installments. The payments are to be made to the plaintiff and not to the magisterial district judge. See Rule 3.10 of the Rules Governing Standards of Conduct of Magisterial District Judges.

Part II Ch. 15–22 Deeds

Official Note: The five day provision of this rule is in keeping with the general principle of insuring the expeditious handling of these actions. A general provision for costs has also been included.

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Judgment shall be given at the conclusion of the hearing or within five (5) days thereafter and shall be entered on the complaint form. The judgment shall include a separate entry for costs in favor of the party entitled thereto.

RULE 325.  [RENUMBERED].

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Official Note: Subdivision A provides a mechanism for a judgment debtor, or anyone interested in the judgment, to file a written request for entry of satisfaction in the office of the magisterial district judge who rendered the judgment. See Section 8104(a) of the Judicial Code, 42 Pa.C.S. § 8104(a). Subdivision B is intended to provide a number of alternative methods of service. See Rules 307, 308, 309, 310, 311, 312 and 313. When permitted, service by mail should be at the option of the person filing the request for entry of satisfaction. The requester shall be required to pay

Part VIII Ch. 64–67 L/T

A.   If a judgment debtor has paid in full, settled, or otherwise complied with a judgment rendered in a magisterial district court, anyone interested in the judgment may request the entry of satisfaction of the judgment by filing a written request in the office of the magisterial district judge who rendered the judgment. B.  A request for entry of satisfaction by anyone other than the judgment creditor must be served upon the judgment creditor in accordance with the rules in the 300 Series regarding service of the complaint. C.   Within 90 days from the date of service of the request for entry of satisfaction, the judgment creditor shall enter satisfaction in the office of the magisterial district judge in which the request for entry of satisfaction was filed.

Part VII Ch. 57–63 Litigation

RULE 341.  REQUEST FOR ENTRY OF SATISFACTION; SERVICE; ENTRY OF SATISFACTION.

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RULE 342

DISTRICT JUDGE RULES

for all costs associated with initiating entry of satisfaction. If the requester is unable to locate or otherwise serve the request upon the judgment creditor, the requester may need to enter the judgment in the court of common pleas, and seek alternative service pursuant to Pa.R.C.P. 430. Upon the entry of satisfaction, the judgment debtor may file a true copy of the entry of satisfaction in any other magisterial district court in which the judgment may have been entered pursuant to Rule 402. Nothing in this rule is intended to suggest that it is the obligation of the judgment creditor to enter satisfaction in any court other than the court specified in subdivision C. These procedures also apply to satisfaction of money judgments rendered in actions for the recovery of possession of real property (landlord/tenant actions). See Rules 514 and 518. If a judgment creditor does not comply with the provisions of this rule, the judgment debtor may proceed under Rule 342. A party may contest the entry of satisfaction by filing a petition to strike the entry of satisfaction with the court of common pleas.

RULE 342.  FAILURE OF JUDGMENT CREDITOR TO ENTER SATISFACTION; SUPPLEMENTARY ACTION. A.   If the judgment creditor does not enter satisfaction within the 90 day period after service of the request as specified in Rule 341C, the judgment debtor may commence a supplementary action for damages by filing a civil complaint in the office of the magisterial district judge in which the request for entry of satisfaction was filed. B.(1)   Except as provided in subparagraph B(2), upon the filing of a complaint as provided in subdivision A, the action shall proceed as a civil action in accordance with the rules of the 300 Series. (2)   No claim under Rule 315 will be permitted in a supplementary action filed pursuant to this Rule. Official Note: A judgment debtor may seek damages pursuant to Section 8104(b) of the Judicial Code, 42 Pa.C.S. § 8104(b). The action commenced under subdivision A of this Rule is a supplementary proceeding in the matter in which the judgment was entered. As such, it must be filed in the office of the magisterial district judge in which the request for entry of satisfaction was filed. Also, it must be indexed to the same docket number as, and made a part of the record of, the underlying action. See Rule 306 and Note. Because the supplementary action is merely a continuation of the underlying action, there are no filing costs for it, however there may be costs for service of the action. The requester shall be required to pay for all costs associated with initiating entry of satisfaction. Subdivision B provides that, once a supplementary action is filed under subdivision A, the proceedings in the action, including the form of the complaint, setting the hearing date, service, and hearing, should proceed as if a regular civil action, except that no cross-complaints under Rule 315 will be permitted. See Rules 304 through 381. While it is not the intent of this rule to limit defenses that may be raised in a supplementary action, only those issues arising from the Rule 342 supplementary action are to be considered at the hearing. Therefore, subparagraph B(2) makes clear that no cross-complaints are permitted to be filed. When rendering judgment in an action filed pursuant to this rule, the magisterial district judge may determine if the judgment debtor is entitled to damages under Section 8104(b) of the Judicial Code, 42 Pa.C.S. § 8104(b), and whether satisfaction should be entered on the underlying judgment. A party may appeal from a judgment in an action filed pursuant to this rule, but issues on appeal are limited to those raised in the action filed under this rule. See Rule 1007.

RULE 381.   ACTS OF ASSEMBLY SUSPENDED. All Acts of Assembly or parts thereof inconsistent with the rules governing the civil action are suspended to the extent of such inconsistency.

RULE 382.   ACTS OF ASSEMBLY NOT SUSPENDED. The following Acts of Assembly shall not be deemed suspended or affected: (1)  Any Act of Assembly providing for special venue in certain types of cases, except that with respect to actions before magisterial district judges “magisterial district” shall be substituted for “county” when the latter word is used in such an act designating venue. Official Note: See, for example, the special venue provisions in the Acts mentioned in the next to the last paragraph of the note to Rule 302. This subdivision is intended to preserve the substance

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of unusual statutory venue provisions which reflect public policy rather than mere procedure.

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(2)   Any Act of Assembly providing for service upon a statutory agent. (3)   Any Act of Assembly creating or defining a right of action in trespass or assumpsit, whether or not described in those terms, or dealing with damages therefor, except insofar as such an act may provide for procedure. Official Note: See, for example, the actions mentioned in the notes to Rules 301 and 501.

As used in this chapter: (1)  Plaintiff—The holder of the judgment. (2)  Defendant—A party against whom the judgment has been rendered.

RULE 401.1.   ASSIGNMENT OF JUDGMENT; PARTIES.

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A.(1)   Execution of a judgment for the payment of money rendered by a magisterial district judge may be ordered by a magisterial district judge in whose office the judgment was rendered or entered, provided the plaintiff files in that office (a)  not before the expiration of 30 days from the date the judgment is entered by the magisterial district judge, and (b)   within five years of that date, a request for an order of execution. (2)  The magisterial district judge in whose office the judgment was rendered or entered shall accept all timely requests for an order of execution on that judgment, including when the location of the property to be levied upon is located outside the county of the magisterial district where the judgment was rendered or entered. B.   The request form shall be attached to the order, return and other matters required by these rules. C.  The plaintiff may enter the judgment, for the purpose of requesting an order of execution thereon, in an office of a magisterial district judge other than that in which it was rendered only if levy is to be made outside the county in which the judgment was rendered and the office in which the judgment is entered for execution is that of the magisterial district judge whose magisterial district is situated in the county in which levy is to be made. The plaintiff may enter the judgment in such other office by filing therein a

Part VI Ch. 49–56 Taxation

RULE 402.  REQUEST FOR ORDER OF EXECUTION. ENTRY OF JUDGMENT IN COURT OF COMMON PLEAS OR PHILADELPHIA MUNICIPAL COURT.

Part V Ch. 41–48A Zoning, etc.

Official Note: The real party in interest (assignee) must produce an assignment of judgment on a form prescribed in accordance with Rule 212, properly executed by the original plaintiff (assignor), before the magisterial district judge notes the assignment on the docket or issues an amended notice of judgment. When an assignment is entered on the docket pursuant to this rule, the real party in interest becomes the plaintiff as defined in Rule 401, and the original plaintiff shall have no further rights with respect to the judgment. If the judgment is assigned while there is an outstanding order of execution, the real party in interest should notify the executing officer who is holding the order to assure that any proceeds are distributed properly. If the judgment has been entered in the court of common pleas the magisterial district judge may not take any action pursuant to this rule. See Rule 402D(4).

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If the judgment has been assigned, upon request of the real party in interest the magisterial district judge shall: (1)  Cause a docket entry to be made indicating the assignment and the name of the original plaintiff and the name of the real party in interest. (2)  Issue an amended notice of judgment indicating the assignment and the name of the original plaintiff and the name of the real party in interest.

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Official Note: The definitions in this rule are derived from Pa. R.C.P. No. 3101(a).

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RULE 401.  DEFINITIONS.

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RULE 402

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copy of the record of the proceedings containing the judgment, certified to be a true copy by the magisterial district judge in whose existing office the judgment was rendered or by any other official custodian of the record. D.(1)   The plaintiff may enter the judgment in the court of common pleas in any county or the Philadelphia Municipal Court. When so entered, the indexing, revival and execution of the judgment shall be in accordance with procedures applicable in the court of common pleas or the Philadelphia Municipal Court. (2)  The judgment may be entered in the court of common pleas or the Philadelphia Municipal Court by filing with the prothonotary or Philadelphia Municipal Court Administrator a copy of the record of the proceedings containing the judgment, certified to be a true copy by the magisterial district judge in whose office the judgment was rendered or by any other official custodian of the record. (3)  The judgment may be entered in the court of common pleas or the Philadelphia Municipal Court after 30 days from the date the judgment is entered by the magisterial district judge. The judgment may not be entered in the court of common pleas or the Philadelphia Municipal Court after five years from the date the judgment is entered by the magisterial district judge. (4)(a)   Within 14 days of entering the judgment in the court of common pleas or the Philadelphia Municipal Court, the plaintiff shall file satisfactory proof of the entry of judgment with the magisterial district court that entered the judgment, and the magisterial district court shall vacate the judgment from its docket. (b)  If after 14 days of entering the judgment in the court of common pleas or the Philadelphia Municipal Court, the plaintiff fails to comply with subparagraph 4(a) of this rule, the defendant may file such proof with the magisterial district court that entered the judgment, and the magisterial district court shall vacate the judgment from its docket. (5)  Except as provided in subparagraphs D(4) and D(6) of this rule, once the judgment is entered in the court of common pleas or the Philadelphia Municipal Court all further process must come from that court and no further process may be issued by the magisterial district judge. (6)  The magisterial district judge shall enter satisfaction on the docket of the magisterial district court proceedings upon the filing by any party in interest of a certified copy of the docket entries of the court of common pleas or the Philadelphia Municipal Court showing the judgment and satisfaction have been entered in that court. E.(1)   As used in this rule, a judgment marked “expired” is a judgment that cannot be satisfied, revived, or vacated because the five-year period designated in Rule 402 has elapsed. (2)   If the plaintiff does not request an order of execution in a magisterial district court or enter the judgment in a court of common pleas or the Philadelphia Municipal Court within five years of the date the judgment was entered by the magisterial district judge, then the judgment shall be marked expired. Official Note: The discretionary language used throughout paragraphs A(1), C, and D is intended to reflect the various options available to the plaintiff for executing upon a judgment rendered by a magisterial district judge. Under paragraph A(1) of this rule, the execution proceedings are commenced by requesting an “order of execution.” The request may not be filed before the expiration of 30 days after the date the judgment is entered by the magisterial district judge. This will give the defendant an opportunity to obtain a supersedeas within the appeal period. The request must be filed within five years of the date the judgment is entered by the magisterial district judge. No provision has been made for revival of a judgment in magisterial district court proceedings. Under paragraph A(2), if the plaintiff requests an order of execution in the magisterial district court where the judgment was entered and the property to be levied upon is outside the county of that magisterial district, then the magisterial district judge shall accept the request and use the available automated system to facilitate the transfer of the request to the magisterial district court in the magisterial district where the property is located. The magisterial district judge who receives a request to levy upon property located outside the county of the magisterial

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Official Note: Under subdivision A, the order may be executed by the sheriff of the county

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A.   Upon the filing of the request form, the magisterial district judge shall note on the form the time and date of its filing and shall issue the order of execution thereon. The magisterial district judge shall deliver the order of execution for service and execution to the sheriff of, or any certified constable in, the county in which the office of the magisterial district judge issuing the order is situated. If this service is not available to the magisterial district judge, service may be made by any certified constable of the Commonwealth. B.(1)  Upon written request filed by the plaintiff within five years from the date of entry of the judgment, an order of execution shall be reissued at any time, and any number of times. (2)   If an order of execution is superseded by an appeal, writ of certiorari, supersedeas, or a stay pursuant to a bankruptcy proceeding or other federal or state law, and (a)  the appeal, writ of certiorari, or supersedeas is stricken, dismissed, or otherwise terminated; or (b)   the bankruptcy or other stay is lifted; and (c)   the plaintiff wishes to proceed with the order of execution, the plaintiff must file with the magisterial district judge a written request for reissuance of the order of execution in accordance with subparagraph (1). C.   A written request for reissuance of the order of execution filed pursuant to subparagraph B(2) must be accompanied by a copy of the court order or other documentation striking, dismissing, or terminating the appeal, writ of certiorari, or supersedeas, or lifting the bankruptcy or other stay.

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RULE 403.  ISSUANCE AND REISSUANCE OF ORDER OF EXECUTION.

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district shall neither reject it solely on this basis nor direct the plaintiff to file it with the other court. This requirement is consistent with Rule 403A, which provides that “[u]pon the filing of the request form, the magisterial district judge . . . shall issue the order of execution thereon.” Paragraph C provides for entering the judgment, for the purpose of requesting an order of execution, in an office of a magisterial district judge other than that in which the judgment was rendered when levy is to be made outside the county in which the judgment was rendered. Compare Pa.R.C.P. No. 3002. As to paragraph D, see Section 1516 of the Judicial Code, 42 Pa.C.S. § 1516. The 30-day limitation in the rule appears to be required by this Section. Certification by the magisterial district judge should not be done before the expiration of 30 days after the date of entry of the judgment. The only method available to renew a judgment would be to record the judgment in the prothonotary’s or Philadelphia Municipal Court Administrator’s office prior to the expiration of the five-year period and then follow the applicable Rules of Civil Procedure for the revival of judgments. See Pa.R.C.P. No. 3025 et seq.; see also Phila. M.C.R. Civ.P. No. 126c. Also, paragraph D makes clear that when the judgment is entered in the court of common pleas or the Philadelphia Municipal Court, all further process shall come from that court and that no further process shall be issued by the magisterial district judge except that the magisterial district judge shall enter on the magisterial district court docket vacating of the judgment due to its entry at the court of common pleas or the Philadelphia Municipal Court, or proof of satisfaction of a judgment that had been entered in the court of common pleas or the Philadelphia Municipal Court and subsequently satisfied in that court. This exception is necessary so that procedures exist for entering satisfaction of all judgments with the magisterial district court, regardless of whether the judgment has been certified to and satisfied in the court of common pleas or the Philadelphia Municipal Court. A plaintiff filing a judgment in the court of common pleas or the Philadelphia Municipal Court is required to file satisfactory proof of the entry of judgment with the magisterial district court that entered the judgment, and the magisterial district court will then vacate its judgment. This step ensures that only the enforceable common pleas or Philadelphia Municipal Court judgment will be reportable as an outstanding liability of the defendant. Paragraph E provides that a judgment shall be marked expired if the plaintiff does not request an order of execution in a magisterial district court or enter the judgment in a court of common pleas or the Philadelphia Municipal Court within five years of the date the judgment was entered by the magisterial district judge. Limiting the time period for entry of the judgment to five years will give a plaintiff sufficient time to act without indefinitely penalizing a defendant.

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RULE 404

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in which the office of the issuing magisterial district judge is situated, as well as by any certified constable in that county. If payment of the judgment was ordered to be made in installments under Rule 323, the magisterial district judge should not issue an order of execution on the judgment unless it appears that there was a default in the installment payments. Subdivision B will permit the reissuance of an order of execution upon a timely-filed written request of the plaintiff. Compare Pa.R.C.P. No. 3106(b). The written request for reissuance may be in any form and may consist of a notation on the permanent copy of the request for order of execution form, “Reissuance of order of execution requested,” subscribed by the plaintiff. The magisterial district judge shall mark all copies of the reissued order of execution, “Reissued. Request for reissuance filed ______ (time and date).” A new form may be used upon reissuance, those portions retained from the original being exact copies although signatures may be typed or printed with the mark “/s/.” There are no filing costs for reissuing an order of execution, for the reissuance is merely a continuation of the original proceeding. However, there may be additional server costs for service of the reissued order of execution. The magisterial district court shall enter stays in compliance with federal or state law, such as the Servicemembers Civil Relief Act, 50 U.S.C. § § 3901 et seq.

RULE 404.   NOTATION OF TIME OF RECEIPT. The sheriff or certified constable receiving the order shall note upon the form the date and time that it was received. Official Note: Compare Pa. R.C.P. No. 3105.

RULE 405.   SERVICE OF ORDER OF EXECUTION. A.  Service of the order of execution shall be made by the sheriff of, or any certified constable in, the county in which the office of the magisterial district judge is situated by levy within 60 days of the issuance or reissuance of the order. If this service is not available to the magisterial district judge, service may be made by any certified constable of the Commonwealth. B.   At the time of the levy, the officer executing the order of execution shall give the defendant a copy of the order or leave it at the place of levy, but if the place of levy is not the defendant’s residence or usual place of business and the defendant has not been given a copy of the order the copy shall be mailed to the last known address of the defendant. If the levy is made upon property of the defendant in the possession of another person, a copy of the order shall similarly be made available to that person as well as to the defendant. Official Note: The 60 day limitation in subdivision A was considered to allow the executing officer sufficient time in which to make the levy. The executing officer may make as many levies as necessary within the 60 day limitation under an order of execution.

RULE 406.   PROPERTY SUBJECT TO LEVY. The levy pursuant to the order of execution issued by the magisterial district judge shall be made only upon tangible, nonperishable personal property of the defendant. The levy may be made upon any such property within the county wherein the order is issued. Official Note: The first sentence in this rule restricts levy pursuant to an order of execution issued by a magisterial district judge to levy upon tangible, nonperishable personal property of the defendant. It was thought that the various intricacies applying to levy or attachment execution upon other types of property, particularly when garnishees are involved (see Pa. R.C.P. Nos. 3140–3148) were too technical and certainly too time consuming for magisterial district court execution proceedings.

RULE 407.   GENERAL MONETARY EXEMPTION. A defendant may claim his statutory exemption in kind or in cash at any time before the date of the sale by notifying the officer executing the order of his claim and, if the exemption is claimed in kind, by designating the specific items of property which he elects to remain as exempt. Failure of the defendant to claim his statutory exemption shall not constitute a waiver thereof. Official Note: Compare Pa. R.C.P. No. 3123(a). The general monetary exemption referred to in this rule is contained in the Judicial Code, § 8123, 42 Pa.C.S. § 8123, as amended by § 10(93) of the Judiciary Act Repealer Act, Act of April 28, 1978, P. L. 202, No. 53. The debtor

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RULE 408.   SETTING ASIDE EXEMPT PROPERTY.

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The copy of the order of execution given or made available to the defendant under Rule 405B shall contain the following notice: NOTICE TO DEFENDANT (1)   This Order of Execution has been issued because there is a judgment against you which remains unpaid. It may cause your tangible personal property to be taken and sold to pay the judgment. (2)   The law provides that certain property cannot be taken on this order of execution. Your real estate cannot be taken on this execution, nor can perishable personal property or personal property which is intangible such as your bank accounts. There are some other types of property which are exempt from execution under State and Federal Law, such as wearing apparel, bibles, school books, sewing machines, military uniforms and equipment, most wages and unemployment compensation, social security benefits, certain retirement funds and accounts, certain veteran and armed forces benefits, certain insurance proceeds and such other exemptions as may be provided by law. (3)   In addition, there is a general monetary exemption of $300. However, this exemption may be reduced or extinguished by the value of property you own which could be taken on a writ of execution issued by a court of common pleas but which cannot be taken on this order of execution which is issued by a magisterial district judge. For example, the $300 exemption may be reduced or extinguished by the value of your equity in real estate or by money you have in a bank account, except money in your bank account which is itself generally exempt from execution, such as social security payments. Also, the $300 exemption does not apply to a judgment for support, a judgment against a debtor who is not an individual, a judgment obtained for board for four weeks or less or a judgment for $100 or less obtained for wages for manual labor. (4)   If you are entitled to all or part of the $300 exemption, you may claim it at any time before the execution sale by notifying the officer (constable or sheriff) executing this order of your claim. You should tell the officer whether you want this exemption to be taken out of the property levied upon or out of

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RULE 409.  NOTICE ACCOMPANYING ORDER OF EXECUTION.

Part III Ch. 23–35 Mortgages

Official Note: Compare Pa. R.C.P. No. 3123(b), (c), (d). The provision for the plaintiff seems necessary because of the limited nature of the levy under Rule 406 and because he may not be aware, within two days, of a setting aside similar to the right of the defendant, under Rule 420A(2), to contest a levy claimed to be excessive or illegal.

Part II Ch. 15–22 Deeds

A.  Upon receipt of a claim for exemption in kind, the officer executing the order shall set aside from the designated property enough thereof as appraised by him to equal the value of the exemption unless the property is incapable of division. In the event of failure of the defendant to claim his statutory exemption, the executing officer shall similarly choose, appraise and set aside property in kind. B.   If the executing officer cannot set aside property in kind because the property in his hands is not capable of appropriate division, he shall set aside from the proceeds of the sale and pay to the defendant in cash the amount of his statutory exemption. C.  The defendant, or any party in interest, may appeal to the magisterial district judge who issued the order of execution from any appraisal or designation of property made by the executing officer, provided the appeal is made within two (2) days after the appraisal or designation; but the plaintiff may appeal at any time before the sale from a setting aside of property by the executing officer on the ground that it is excessive or illegal.

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may not, either by express or implied contract, waive exemptions from executions granted by statute. See the Judicial Code, § 8122, 42 Pa.C.S. § 8122, as amended by § 10(92) of the Judiciary Act Repealer Act, Act of April 28, 1978, P. L. 202, No. 53.

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RULE 409

DISTRICT JUDGE RULES

cash from the proceeds of the sale and, if the exemption is claimed in property, you should designate the property which you choose to retain as exempt. If you claim this exemption in property, the officer executing this order will set aside, from the property designated by you, property as appraised by the officer up to the value of your exemption. If you do not claim this exemption, the officer will choose, appraise and set aside property up to the value of your exemption for you. If the property cannot be so divided, the officer will set aside from the proceeds of the sale and pay to you in cash the amount of your exemption or whatever lesser amount is received as proceeds of the sale. (5)   You may appeal to the magisterial district judge who issued this order from any appraisal or designation of property made by the officer executing this order, provided the appeal is made within two days after the appraisal or designation. Also, at any time before the sale, you may file with the magisterial district judge who issued this order an objection to the levy on the ground that it is illegal or is excessive compared to the amount of the judgment, interest and probable costs. Upon such an appeal or objection, the magisterial district judge will notify you of the date and time of the hearing on the appeal or objection. You must be prepared at the hearing to present your side of the case. An appeal from an appraisal or designation of property made by the officer executing this order may simply state, “I appeal from the (appraisal) (designation) made by the officer executing the order of execution against me (name).” An objection to the levy on the ground that it is illegal or is excessive compared to the amount of the judgment, interest and probable costs may simply state, “I object to the levy against me (name) on the ground that it is (illegal) (excessive).” Appeals and objections should be made in writing. (6)   YOU MAY FEEL THAT YOU NEED THE ADVICE OF A LAWYER IN THIS MATTER. IF YOU DO NOT HAVE A LAWYER OR CANNOT AFFORD ONE, GO TO OR TELEPHONE THE OFFICE SET FORTH BELOW TO FIND WHERE YOU CAN GET LEGAL HELP. ________________________________________________________________________ Name ________________________________________________________________________ Address ________________________________________________________________________ Telephone Number Official Note: This rule requires that the defendant be given notice of certain rights and exemptions relative to orders of execution issued by magisterial district judges. Subdivision (2) of the rule first sets forth the limitations upon execution in these cases contained in Rule 406. It then gives some general information concerning State and Federal exemption. More specifically, these are as follows: EXEMPTIONS UNDER PENNSYLVANIA LAW 1.   General $300 statutory exemption, Judicial Code, § 8123, 42 Pa.C.S. § 8123. 2.   Particular personal property exemption—wearing apparel, bibles and school books, sewing machines, military uniforms and equipment, Judicial Code, § 8124(a), 42 Pa.C.S. § 8124(a). 3.   Certain retirement funds and accounts, Judicial Code, § 8124(b), 42 Pa.C.S. § 8124(b): Public School Employees, 24 P. S. § 8533. State Employees, 71 P. S. § 5953. Police Pension Funds, 53 P. S. § 761. Philadelphia Pension Fund, 53 P. S. § 13431. Pittsburgh Pension Fund, 53 P. S. § 23561. Pennsylvania Municipal Employees, 53 P. S. § 881.101 et seq. Private employees’ pensions or annuity funds, Judicial Code, § 8124(b)(7), 42 Pa.C.S. § 8124(b)(1)(vii). Self-employed retirement or annuity funds, Judicial Code, § 8124(b)(8), 42 Pa.C.S. § 8124(b)(1)(viii). 4.   Certain insurance proceeds, Judicial Code, § 8124(c), 42 Pa.C.S. § 8124(c): Fraternal society benefits, Judicial Code, § 8124(c)(1), (8), 42 Pa.C.S. § 8124(c)(1), (8). Workmen’s Compensation, Judicial Code, § 8124(c)(2), 42 Pa.C.S. § 8124(c)(2).

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(A)  Execution shall be stayed as to the property of the defendant upon the occurrence of any of the following: (1)   Upon written request of the plaintiff to the magisterial district court. (2)  Upon the entry of a bond with the magisterial district court by any person or party in interest, with security approved by the magisterial district judge, in the amount of the plaintiff’s judgment, including probable interest and costs, or in such lesser amount as the magisterial district judge may direct, naming the Commonwealth of Pennsylvania as the obligee, and conditioned to pay the amount due within 90 days of the entry of the bond, unless the time for payment is extended by the magisterial district judge. (3)  Upon request of the defendant or party in interest to the magisterial district court made in compliance with federal or state law. (B)   When execution is stayed pursuant to this rule, the stay may not be lifted without written order of the magisterial district judge.

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RULE 410.   STAY OF EXECUTION GENERALLY.

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EXEMPTIONS UNDER FEDERAL LAW 1.   Certain wages and compensation:    Longshoremen’s and harbor workers’ compensation, 33 U.S.C. § 916.    Merchant seamen’s wages, 46 U.S.C. § 601.    Injury or death resulting from war-risk hazard, 42 U.S.C. § 1717. 2.   Social Security benefits, 42 U.S.C. § 407. 3.   Certain retirement funds and accounts:    Civil Service, 5 U.S.C. § 8346(a).    Foreign Service, 22 U.S.C. § 1104.    Railroad Retirement, 45 U.S.C. §§ 228L, 231m.    Judges’ annuities, 28 U.S.C. § 376(n). 4.   Certain veteran and armed forces benefits:    Laws administered by the Veterans Administration, 38 U.S.C. § 3101.    Armed Forces Survivor Benefit Plan, 10 U.S.C. § 1450(i).    Savings deposited with armed forces, 10 U.S.C. § 1035.    Medal of Honor Roll Special Pension, 38 U.S.C. § 562(c). 5.   Miscellaneous: Property of a foreign state, 28 U.S.C. §§ 1609, 1611.    Homestead Land, 43 U.S.C. § 175.    Rail Fund, 45 U.S.C. § 822(e). Subdivision (3) deals with the reduction or extinguishment of the $300 general monetary exemption when the defendant owns property generally subject to execution but not subject thereto under the limitations applying to orders of execution issued by magisterial district judges. See the Judicial Code, § 8123(c), 42 Pa.C.S. § 8123(c). The subdivision then sets forth other statutory exclusions from the $300 general monetary exemption. See the Judicial Code, § 8123(b), 42 Pa.C.S. § 8123(b). Subdivision (4) informs the defendant of the procedures for claiming the $300 monetary exemption. See Rules 407 and 408A and B. Subdivision (5) informs the defendant of the right to appeal from appraisals or designations of property (see Rule 408C) and of the right to file an objection to the levy on the ground that it is illegal or excessive (see Rule 413). The defendant is also informed under subdivision (5) that he/she will be given a hearing on these matters (see Rules 420 and 421). Subdivision (6) contains advice as to obtaining the help of a lawyer.

Part I Ch. 1–14 Brokers

Group Insurance, Judicial Code, § 8124(c)(5), 42 Pa.C.S. § 8124(c)(5). Life insurance and annuities, Judicial Code, § 8124(c)(3), (4), (6), 42 Pa.C.S. § 8124(c) (3), (4), (6). Accident and disability, Judicial Code, § 8124(c)(7), 42 Pa.C.S. § 8124(c)(7). No-fault motor vehicle accident benefits, 40 P. S. § 1009.106(f). 5.   Personal earnings, subject to the exceptions for support, board, student loan obligations, Judicial Code, § 8127, 42 Pa.C.S. § 8127. Unemployment Compensation, 43 P. S. § 863. 6.   Tangible personal property on international exhibition, Judicial Code, § 8125, 42 Pa.C.S. § 8125. 7.   Common carrier, property in interstate transit, Judicial Code, § 8126, 42 Pa.C.S. § 8126. 8.   See also Judicial Code, Section 8121, 42 Pa.C.S. Section 8121.

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PART VIII

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RULE 411

DISTRICT JUDGE RULES

(C)  After a stay is lifted, execution may proceed without reissuance of the order of execution. Official Note: Compare Pa.R.C.P. No. 3121(a). Other rules in this chapter may also provide for a stay in specific circumstances covered by those rules. The magisterial district court shall enter stays in compliance with federal or state law, such as the Servicemembers Civil Relief Act, 50 U.S.C. § § 3901 et seq.

RULE 411.  RIGHT OF EXECUTING OFFICER TO BREAK AND ENTER. The officer executing the order, after having made a levy upon any personal property, may enter the place or building in which the goods are contained either peaceably or by breaking in by force for the purpose of taking manual possession of or selling the property levied upon. No bond shall be required of the plaintiff by the executing officer. Official Note: Compare Pa. R.C.P. No. 3127.

RULE 412.   NOTICE OF SALE. (A)(1)   The executing officer shall give notice of the sale of personal property at least six days prior to the sale. (2)   The executing officer shall give notice of the sale in the following manner: (a)  By handbill posted in the magisterial district court from which the order of execution issued and, if different from the court from which the order issued, in the magisterial district court in the magisterial district in which the place of the sale is located. (b)   By handbill posted at the place of sale and, if different from the place of sale, at the place of levy. (c)   By mailing a copy of the handbill to the plaintiff and to the defendant at his or her last known address. (B)  The notice of sale shall include a notice that all claims to the property must be filed before sale in the magisterial district court from which the order of execution issued and that all claims to the proceeds must be filed in that court before distribution; that a proposed schedule of distribution will be filed in that court on a date specified not later than five days after the sale; and that distribution will be made in accordance with the proposed schedule unless exceptions are filed in that court within ten days thereafter. No further notice of the filing of the schedule of distribution need be given. (C)  If a new date for sale is set, new notice shall be given as prescribed in paragraphs (A) and (B) of this rule. Official Note: Compare Pa.R.C.P. No. 3128. See Section 8151 of the Judicial Code, 42 Pa.C.S. § 8151, as to giving notice to the Department of Revenue.

RULE 413.   OBJECTIONS TO LEVY AND PROPERTY CLAIMS. If before the sale: (1)  the defendant files in the office of the magisterial district judge from whose office the order of execution issued an objection to the levy on the ground that it is illegal or is excessive compared to the amount of the judgment, interest and probable costs, or (2)   a third party files in the office of the magisterial district judge a claim to all or part of the property levied upon the magisterial district judge shall stay the sale of property affected by the objection or claim pending a determination under Rule 420. Official Note: This rule provides for a stay of sale pending determination under Rule 420 of the matters mentioned. As to the defendant’s objections, see generally Pa. R.C.P. No. 3121. As to a stay because of property claims, see Pa. R.C.P. No. 3121(a)(3).

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RULE 414.   PLAINTIFF AS PURCHASER.

Official Note: Compare Pa. R.C.P. No. 3133. Since only tangible, personal property is involved, lien creditors are not included in this provision as they are in the cited rule.

When the officer executing the order sells personal property in execution, he shall upon request of the purchaser execute and deliver to the purchaser a bill of sale setting forth the caption of the case and a description of the property.

Part II Ch. 15–22 Deeds

RULE 415.   TRANSFER OF PROPERTY TO PURCHASER.

Part I Ch. 1–14 Brokers

Whenever personal property sold on execution is purchased by a plaintiff entitled to receive all or part of the proceeds of the sale, the officer executing the order, upon proof of that fact, shall accept on account of the purchase price the receipt of the plaintiff up to the amount of the proceeds to which he is entitled.

Official Note: Compare Pa. R.C.P. No. 3134.

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(A)   Except as otherwise provided in paragraph (B), the officer executing the order shall abandon the levy if sale of the property levied upon is not held within three months after the levy.

Part IX Ch. 68–72 Condos, etc.

RULE 418.  ABANDONMENT OF LEVY FOR INABILITY TO HOLD SALE.

Part VIII Ch. 64–67 L/T

Official Note: This rule will restrict requiring advance payments before service of the order of execution to payments for expenses and fees, including mileage, incident to levy. Compare Pa. R.C.P. No. 3138. See also Rule 419(7). Amended June 1, 1971, effective immediately.

Part VII Ch. 57–63 Litigation

The plaintiff shall pay expenses and fees of execution promptly upon demand of the executing officer, but before service of the order of execution the executing officer may require the plaintiff to pay in advance only expenses and fees incident to levy. Expenses and fees of execution paid by the plaintiff shall be deemed taxable costs for refund to him from the proceeds of any sale.

Part VI Ch. 49–56 Taxation

RULE 417.   OFFICER’S EXPENSES AND FEES.

Part V Ch. 41–48A Zoning, etc.

Official Note: Subdivision C makes clear that it is the responsibility of the executing officer to distribute the proceeds of the sale directly to the party or parties entitled to receive the proceeds. The executing officer should segregate from personal funds, hold in escrow, and ensure the safekeeping of any proceeds held prior to distribution. Compare Pa. R.C.P. No. 3136(a), (b), (d), and 3137(a). Subdivision D of this rule bases the determination of priorities on the diligence of the plaintiffs and recognizes that there may be more than one executing officer in some instances. It differs from Rule 3137(a) under which priorities are based on the time of delivery of the writs of execution to the sheriff, since it was thought that priorities should not depend upon the time of transmission of the order of execution from the magisterial district judge to the executing officer.

Part IV Ch. 36–40 Insurance

A.   Not later than five days after the sale of personal property the officer executing the order shall prepare a proposed schedule of distribution of the proceeds of sale which shall be kept on file in the office of the magisterial district judge from which the order issued and shall be available for inspection. No schedule of distribution need be filed when the property is sold to the plaintiff for costs only. B.   When a receipt of the plaintiff has been accepted on account of the purchase price, the schedule shall set forth the plaintiff’s name and address, the amount of the judgment and the amount of credit claimed or allowed upon the purchase price. C.   Unless written exceptions are filed in the office of the magisterial district judge from which the order issued not later than ten days after the filing of the proposed schedule of distribution, the officer executing the order shall distribute the proceeds of the sale directly to the party or parties entitled to receive the proceeds in accordance with the proposed schedule. D.   When levies are made against the same property by one or more executing officers under orders of execution issued at the request of separate plaintiffs, priority of distribution of the proceeds of the sale as between such plaintiffs shall be determined by the time their respective requests for orders of execution or reissuance thereof were filed in the office of the issuing magisterial district judge.

Part III Ch. 23–35 Mortgages

RULE 416.   DISTRIBUTION OF PROCEEDS. PRIORITIES.

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RULE 419

DISTRICT JUDGE RULES

(B)  Periods during which sale is stayed under any provision of these rules shall be excluded in computing the three month period provided in paragraph (A), but in all cases the officer executing the order shall abandon the levy if sale of the property levied upon is not held within six months. Official Note: Compare Pa.R.C.P. No. 3120(2). This rule requires the executing officer to abandon the levy if sale is not held within three months, excluding time periods when the execution may be stayed, but in all cases the levy must be abandoned if the sale is not held within six months of the levy. It was considered that the particular execution proceedings should terminate under these circumstances.

RULE 419.   OFFICER’S RETURN. The officer executing the order shall make a return on the order of execution form. The return shall show: (1)   The date, time and place of any levy. (2)   His appraisal of the value of any property set aside as exempt property. (3)   The date, time and place of any sale. (4)   The proceeds received from any sale, specifying any sale on receipt to the plaintiff. (5)   His expenses and fees. (6)   Any distribution made by him. (7)   If no levy upon property of the defendant could be made, or if the levy was abandoned, the reasons therefor; or that the order was returned unexecuted for nonpayment of expenses and fees. Official Note: Compare Pa. R.C.P. No. 3139. The return required by this rule is quite detailed in view of the fact that executing officers will often be constables.

RULE 420.  DETERMINATION OF PROPERTY CLAIMS AND DISPUTES. A.  The magisterial district judge from whose office the order of execution issued shall hear and determine the following matters: (1)   An appeal made in accordance with Rule 408C from an appraisal, designation or setting aside of property by the officer executing the order. (2)   Any objection by the defendant to the levy on the ground that it is illegal or excessive which was filed in accordance with Rule 413. (3)   Claims of third parties to the property levied upon which were filed in accordance with Rule 413. (4)  Exceptions to the proposed distribution filed in accordance with Rule 416C. B.   In acting under subdivision A of this rule, the magisterial district judge may: (1)   Reappraise or redesignate property appraised or designated by the executing officer, or order inclusion in the levy of property set aside by that officer. (2)   Order the abandonment of the levy in whole or part, or release property from the levy. (3)   Stay or prohibit a sale of all or part of the property levied upon. (4)   Order that property levied upon be released to a third party who has a valid claim thereto. (5)  Stay the distribution, or order a distribution different than that proposed by the executing officer. C.   The magisterial district judge from whose office the order of execution issued may, upon written request of any party in interest made before delivery of property sold pursuant to the order and upon proper cause shown, set aside the sale of that property and order a resale or enter any other order which may be just and proper under the circumstances.

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Part VIII Ch. 64–67 L/T Part IX Ch. 68–72 Condos, etc.

This is to notify you that in the above case:

Part VII Ch. 57–63 Litigation

PLAINTIFF __________ v. DEFENDANT __________

Part VI Ch. 49–56 Taxation

Notice

Part V Ch. 41–48A Zoning, etc.

Official Note: Paragraph A of this rule provides a time schedule within which the matters mentioned in Rule 420 must be heard and determined. These matters should be dealt with expeditiously. Paragraph D provides that, except for stays, determinations and orders of the magisterial district judge concerning the execution proceedings shall not take effect until after the expiration of ten days from the date of entry of the determination or order. This will give any aggrieved party in interest a chance to obtain a stay by filing a statement of objection in the court of common pleas during that period of time. See Rule 1016. The form to be used for the Notice required by Rule 421 shall be in substantially the following form:

Part IV Ch. 36–40 Insurance

A.   The magisterial district judge shall hold hearings on matters to be determined under Rule 420 not later than five days after they are filed, and shall notify all parties in interest of the date and time of the hearing by telephone or other timely means of communication. The magisterial district judge shall enter a determination not later than three days after the hearing. B.  The magisterial district court shall promptly give or mail to the parties written notice of the determination. Notice of the determination shall contain advice as to the right of the parties to file a Statement of Objection, the time within which the statement must be filed, and that the statement is to be filed with the court of common pleas. C.  Rescinded. D.   Any stay of the whole or part of the execution proceedings ordered by the magisterial district judge shall be effective immediately. All other orders and determinations with respect to the whole or part of the execution proceedings shall not take effect until after the expiration of ten days from the date of entry of the order or determination.

Part III Ch. 23–35 Mortgages

RULE 421.  TIME FOR HEARING AND DETERMINATION; EFFECTIVE DATE OF ORDERS AND DETERMINATION.

Part II Ch. 15–22 Deeds

A(1)—See Pa. R.C.P. No. 3123(d) A(2)—See Pa. R.C.P. Nos. 3119(2) and 3121 A(3)—See Pa. R.C.P. Nos. 3121(a) and 3202 A(4)—See Pa.R.C.P. No. 3136(f) B(1)—See Pa. R.C.P. No. 3123(d) B(2)—See Pa. R.C.P. Nos. 3119(2) and 3121 B(3)—See Pa. R.C.P. No. 3121 B(4)—See Pa. R.C.P. Nos. 3201-3213 B(5)—See Pa. R.C.P. Nos. 3136 and 3213 This rule does not provide for a preliminary determination by the executing officer as to the merits of a property claim by a third party (see Pa. R.C.P. Nos. 3206, 3207), for it was considered that the magisterial district judge should be readily available for this purpose and that it would not be desirable to allow constables to make any such determination. Also, it was thought to be permissible to require the magisterial district judge to make the determinations and to take the actions mentioned in this rule as an exercise of power ancillary to the magisterial district judges general power to order execution of the judgment. Subdivision C of the rule is based on Pa. R.C.P. No. 3132.

Part I Ch. 1–14 Brokers

Official Note: Subdivision A of this rule sets forth the various disputes concerning the execution that, along with property claims, may be brought before the magisterial district judge. Subdivision B sets forth the relief that the magisterial district judge may grant in connection with these disputes. The provisions of this rule can be compared with the Pennsylvania Rules of Civil Procedure as follows:

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PART VIII

Docket No. __________ the following decision was made: You have the right to file a Statement of Objection within ten (10) days from __________

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RULE 481

DISTRICT JUDGE RULES

The Statement of Objection must be filed with the Court of Common Pleas of __________ County on a form available at any Magisterial District Judge Court or from the Prothonotary at: _______________________________________________________________________________ Courthouse Address ____________________ _________________________ Date of Decision Magisterial District Judge

RULE 481.   ACTS OF ASSEMBLY SUSPENDED. All Acts of Assembly or parts thereof inconsistent with the execution rules in this chapter are suspended to the extent of such inconsistency.

RULE 482.   ACTS OF ASSEMBLY NOT SUSPENDED. The following Acts of Assembly shall not be deemed suspended or affected: (1)   The Uniform Commercial Code, as revised and reenacted by the Act of October 2, 1959, P. L. 1023, 13 Pa.C.S. § 1101 et seq. (2)   Section 9 of the Act of June 7, 1887, P. L. 365, 15 P. S. § 12009. Official Note: This Section provides that members of cooperative associations shall be individually liable but that no execution can be issued against any member individually until execution on a judgment against the association is returned unsatisfied in whole or in part.

(3)   Section 3377 of the Probate, Estates and Fiduciaries Code, 20 Pa.C.S. § 3377. Official Note: This Section of the Probate, Estates and Fiduciaries Code provides that execution shall not issue upon property of the estate of a decedent except upon certain conditions.

(4)   Sections 9 and 10 of the Act of May 21, 1921, P. L. 1045, No. 379, 39 P. S. §§ 359, 360. Official Note: These Sections of the Fraudulent Conveyance Act relate to equitable remedies of creditors.

(5)   Section 1 of the Act of May 24, 1933, P. L. 987, 40 P. S. § 117. Official Note: This Section relates to the right of a plaintiff to maintain an action against an indemnity insurer upon return of execution unsatisfied against the insured.

(6)   Section 1516 of the Judicial Code, 42 Pa.C.S. § 1516. Official Note: This Section pertains to lien of judgment when the judgment is entered in the court of common pleas.

(7)   Section 8151 of the Judicial Code, 42 Pa.C.S. § 8151, added by § 10(96) of the Judiciary Act Repealer Act, Act of April 28, 1978, P. L. No. 53. Official Note: This Section requires a report or return concerning property to be sold on execution to be given to the Department of Revenue, unless exempted by regulation of that Department.

(8)   Section 21 of the Act of April 6, 1937, P. L. 200, 63 P. S. § 281-21. Official Note: This Section provides that, with certain exceptions, a pawnbroker shall have first lien on all pledges and shall not be required by legal process to deliver a pledge without surrender of the pawn ticket.

(9)   Section 83 of the Act of June 16, 1936, P. L. 755, 68 P. S. § 321; Section 1 of the Act of May 7, 1929, P. L. 1589, as amended by § 1 of the Act of June 22, 1931, P. L. 889, 68 P. S. § 322. Official Note: These Sections provide for landlord’s priority for rent on execution sale against his tenant.

(10)  Sections 1114 and 1116(b) of the Vehicle Code, 75 Pa.C.S. §§ 1114 and 1116(b). Official Note: These Sections of the Vehicle Code relate to change of ownership by operation of law or judicial sale and to certificates of title.

(11)  Any Act of Assembly providing immunity or exemption of property from execution. Official Note: See, for example, the exemptions from execution contained in Subchapter B

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PART VIII

of Chapter 81 of the Judicial Code, 42 Pa.C.S. § 8121, et seq.

Part IV Ch. 36–40 Insurance

The definition of a victim of domestic violence is derived from 68 P.S. § 250.513.

Part III Ch. 23–35 Mortgages

Official Note: Distress for rent will not be covered in rules of civil procedure for magisterial district judges, for it is not an action or proceeding before a magisterial district judge and any constable carrying out the “landlord’s warrant” is acting as an agent of the landlord and not as an officer serving process of a magisterial district judge. See Section 302 of the Landlord and Tenant Act of 1951, 68 P.S. § 250.302. Actions for rent (§ 301 of the Act, 68 P.S. § 250.301) and to defalcate (§ 307 of the Act, 68 P.S. § 250.307) are not included in this chapter, for these are actions of assumpsit. See also § 572 of the Act, added by Act of May 3, 1968, P.L. 107, No. 56, § 1, 68 P.S. § 250.512. A number of trespass actions are also detailed in the Landlord and Tenant Act of 1951 (see § § 311—313, 68 P.S. § § 250.311—250.313), and these would be brought under the rules pertaining to trespass actions. Consequently, this chapter will be concerned only with the action for the recovery of possession of real property. But see Rules 503C(8) and 508 as to joinder of actions and cross-complaints.

Part II Ch. 15–22 Deeds

As used in this chapter: (1)   “Action” means an action by a landlord against a tenant for the recovery of possession of real property brought before a magisterial district judge. (2)   “Complaint” shall include, where applicable, the attached and completed Recovery of Real Property Hearing Notice form. (3)   “Victim of domestic violence” means a person who has obtained a protection from abuse order against another individual or can provide other evidence of abuse.

Part I Ch. 1–14 Brokers

RULE 501.  DEFINITIONS.

RULE 502.   VENUE; COMMENCEMENT OF THE ACTION.

RULE 503.   FORM OF COMPLAINT.

Part IX Ch. 68–72 Condos, etc. Index

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Part VII Ch. 57–63 Litigation

A.   The complaint shall be made in writing on a form prescribed by the State Court Administrator. B.   The complaint shall set forth: (1)   The names and addresses of the parties. (2)   The location and the address, if any, of the real property possession of which is sought to be recovered. (3)   That the landlord of that property is the plaintiff in the action. (4)   That the landlord leased or rented the property to the tenant or to some other person under whom the tenant claims. (5)   That notice to remove was given to the tenant in accordance with law, or that no notice was required under the terms of the lease. (6)  That— (a)   the term for which the property was leased or rented is fully ended, or (b)  a forfeiture has resulted by reason of a breach of the conditions of the lease, or (c)   rent reserved and due has, upon demand, remained unsatisfied. (7)  That the tenant retains the real property and refuses to give up possession of the property.

Part VI Ch. 49–56 Taxation

Official Note: Since only recovery of possession of real property and incidental matters are involved, the reason for the restriction on venue in subdivision A is obvious. Compare Pa. R.C.P. No. 1052.

Part V Ch. 41–48A Zoning, etc.

A.   The action may be brought in and only in the magisterial district where the whole or part of the real property possession of which is sought to be recovered is located. B.   The action shall be commenced by the filing of a complaint.

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RULE 504

DISTRICT JUDGE RULES

(8)  The amount of rent, if any, that remains due and unpaid on the date the complaint is filed and whatever additional rent shall remain due and unpaid at the date of the hearing, and the amount of damages, if any, claimed for injury to or unjust detention of the real property. C.  The complaint shall be signed by the landlord or landlord’s agent and verified as follows: The facts set forth in this complaint are true and correct to the best of my knowledge, information and belief. This statement is made subject to the penalties of 18 Pa.C.S. § 4904 relating to unsworn falsification to authorities. ___________________________________ Signature D.   For every individual tenant, the landlord or landlord’s agent shall attach an affidavit to the complaint indicating that the tenant is in the military service, that the tenant is not in the service, or that the landlord is unable to determine whether or not the tenant is in the service. Official Note: As in the other rules of civil procedure for magisterial district judges, the complaint will be on a printed form. The filings required by this rule are subject to the Case Records Public Access Policy of the Unified Judicial System of Pennsylvania. See Rule 217. As to notice to remove, the form will simply state that such a notice, when required, was given to the tenant in accordance with law. See § 501 of the Landlord and Tenant Act, 68 P.S. § 250.501, as amended by § 2(a) of the Judiciary Act Repealer Act, Act of April 28, 1978, P.L. 202, No. 53, 42 P.S. § 20002(a). In subdivision B(8) the landlord is permitted to claim, in addition to the specific amount of rent due and unpaid at the date of filing, whatever unspecified amount of rent will remain due and unpaid at the date of the hearing. As to claiming damages for injury to property, compare Pa.R.C.P. No. 1055. Subdivision D requires the landlord to affirm if the tenant is or is not in the military service, or if the tenant’s military service status is unknown. This information is required to ensure that an eligible tenant receives the protections afforded by the Servicemembers Civil Relief Act, 50 U.S.C. § § 3901 et seq. The affidavit shall be made in writing on a form prescribed by the State Court Administrator. See Act of January 24, 1966, P.L. (1965) 1534, § 1, as amended by Act of August 11, 1967, P.L. 204, No. 68, § 1, Act of June 11, 1968, P.L. 159, No. 89, § 2, 35 P.S. § 1700-1, which states that “[n]o tenant shall be evicted for any reason whatsoever while rent is deposited in escrow” because the dwelling in question has been certified as unfit for human habitation by the appropriate city or county agency. It seems appropriate to leave the matter of evidencing or pleading such a certification or lack thereof to local court of common pleas rules. Explanatory Note The amendment to subdivision c(6)(c) of Rule 503 and the note to the rule deletes the former requirement of pleading, when the action is based on failure to pay rent, that there is not on the premises property subject to distress adequate to satisfy rent in arrears. See also the amendment to Rule 582(1).

RULE 504.  SETTING THE DATE FOR HEARING; DELIVERY FOR SERVICE. The magisterial district judge, at the time the complaint is filed, shall: (1)   Set a hearing date that shall be not less than seven or more than fifteen days from the date the complaint is filed. (2)  Insert the hearing time and date and the address of the magisterial district judge’s magisterial district in the complaint form. (3)   Deliver a copy of the complaint form with hearing time and date thereon to the landlord or the landlord’s agent. (4)   Deliver a copy of the complaint form with hearing time and date thereon for service as hereinafter set forth, which copy shall contain the following notice: (a)   If you have a defense to this complaint, you may present it at the hearing.

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Part II Ch. 15–22 Deeds Part III Ch. 23–35 Mortgages

Official Note: The hearing date in subdivision (1) of this rule is required to be set not less than seven days from the filing of the complaint because of the requirement in Rule 506(B) that service be made at least five days before the hearing. It was thought that the requirement that the hearing be held not more than 15 days from the filing of the complaint should provide ample time to make the type of service required in these cases. The notice for the tenant set forth in subdivision (4) of this rule varies somewhat from the notice required in civil actions under Rule 305. There are a number of reasons for this. First, there can be no default judgment in these possessory actions and, secondly, it was thought that cross-complaints of tenants in these cases should be limited to those arising out of the occupancy of the premises.

Part I Ch. 1–14 Brokers

(b)   If you have a claim against the landlord arising out of the occupancy of the premises, which is within magisterial district court jurisdiction and which you intend to assert at the hearing, you must file it on a complaint form at this office before the time set for the hearing. (c)  IF YOU DO NOT APPEAR AT THE HEARING, a judgment for possession and costs, and for damages and rent if claimed, may nevertheless be entered against you. A judgment against you for possession may result in YOUR EVICTION from the premises.

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PART VIII

RULE 505.  NUMBERING AND FILING OF COMPLAINTS. Official Note: This rule simply refers to Rule 306 of the trespass and assumpsit rules so that it will not be necessary to set up a separate numbering system for possessory actions.

RULE 506.  SERVICE OF COMPLAINT.

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Part IX Ch. 68–72 Condos, etc.

Official Note: This rule parallels the provisions of Rule 314A and C.

Part VIII Ch. 64–67 L/T

A.  The magisterial district judge shall note on the docket the date that a service copy of the complaint was mailed to the tenant, and the sheriff or constable serving a copy of the complaint shall, at or before the time of the hearing, make proof of service on the form provided, which shall show the manner of service and the day, hour, and place thereof. B.   The appearance of a tenant in person or by representative or the filing of a claim in the case shall be deemed a waiver of any defect in service but not a waiver of a defect in venue.

Part VII Ch. 57–63 Litigation

RULE 507.  NOTATION AND RETURN OF SERVICE; WAIVER OF SERVICE.

Part VI Ch. 49–56 Taxation

Official Note: Under subdivision A of this rule, service must be made both by first class mail and delivery for service in the manner prescribed. In actions where wage garnishment may be sought under Pa.R.C.P. No. 3311, the landlord may authorize the sheriff or constable to make personal service upon the tenant. If the tenant is not present at the property the sheriff or constable is authorized to post the complaint so that the underlying landlord-tenant action may proceed. The landlord may authorize the sheriff or constable to make additional attempts to effectuate personal service upon the tenant so the landlord can later prove such service if attempting to garnish wages under Pa.R.C.P. No. 3311. Additional service attempts by the sheriff or constable may result in additional fees.

Part V Ch. 41–48A Zoning, etc.

A.   The magisterial district judge shall serve the complaint by mailing a copy of it to the tenant’s last known address by first class mail and noting on the docket the date of such mailing, and by delivering a copy of it for service to the sheriff of, or any certified constable in, the county in which the office of the magisterial district judge is situated. If this service is not available to the magisterial district judge, service may be made by any certified constable of the Commonwealth. The officer receiving the copy shall serve it by handing it to the tenant or to an adult person in charge for the time being of the premises possession of which is sought to be recovered or, if none of the above is found, by posting it conspicuously on those premises. B.   The copy shall be served at least five days before the hearing.

Part IV Ch. 36–40 Insurance

The numbering and filing of complaints shall be in accordance with Rule 306.

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RULE 508

DISTRICT JUDGE RULES

RULE 508.  CLAIM BY TENANT. A.   At any time before the hearing, the tenant may file a cross-complaint on the form prescribed for civil complaints, asserting any claim against the landlord that arises out of the occupancy of the premises and that is within the jurisdiction of the magisterial district judge. B.   If the tenant files such a cross-complaint, the magisterial district judge shall set a time and date for the hearing of both complaints together, which shall not be less than seven or more than fifteen days from the filing of the tenant’s complaint. C.   The tenant’s cross-complaint shall be served on the landlord at least five days before the hearing. At the option of the tenant, the magisterial district judge shall serve the cross-complaint by mailing a copy of it to the landlord. If the tenant does not request service by mail, the magisterial district judge shall deliver a copy of the cross-complaint for service to the sheriff of, or any certified constable in, the county in which the office of the magisterial district judge is located. If this service is not available to the magisterial district judge, service may be made by any certified constable of the Commonwealth. The officer receiving the copy shall serve it by handing it to the landlord or to an adult person in charge for the time being of the landlord’s residence or usual place of business. Official Note: As to subdivision A of this rule, see Rule 504, Note. See also 42 Pa.C.S. § 1515(a)(3), as to waiver of jurisdictional limits, the tenant filing a cross-complaint being considered a “plaintiff” as to the cross-complaint within the meaning of this statute. Subdivision B sets forth the time limits for setting hearings when a cross-complaint is filed. These limits recognize the need for reasonable expedition in these cases. Subdivision C contains provisions for service of the cross-complaint. Mail service need not be by certified or registered mail. Since a cross-complaint is in the nature of a responsive pleading there is no fee for filing it.

RULE 509.  AMENDMENTS TO COMPLAINT. Amendments to the complaint may be made only at the hearing in the presence of the adverse party or his representative. Amendments other than those as to form shall constitute grounds for a continuance. Official Note: This rule is the same as Rule 316 of the civil rules.

RULE 510.  [RESCINDED]. Official Note: See Rule 213 governing subpoenas.

RULE 511.  [RESCINDED]. Official Note: See Rule 209 governing continuances.

RULE 512.  HEARINGS AND EVIDENCE. A.   The landlord shall appear at the hearing and present testimony in an action for the recovery of possession of real property. B.   The magisterial district judge shall be bound by the rules of evidence, except that a bill, estimate, receipt, or statement of account that appears to have been made in the regular course of business may be introduced in evidence by any party without affidavit or other evidence of its truth, accuracy, or authenticity. Official Note: Subdivision A of this rule is intended to make clear that the magisterial district judge shall not enter a default judgment in a possessory action, including a judgment for money only. The landlord shall appear and give testimony to prove the complaint even when the tenant fails to appear for the hearing. See Rule 514A and Note. See also Section 503(a) of the Landlord and Tenant Act of 1951, 68 P.S. § 250.503(a). When the landlord fails to appear at the hearing, the magisterial district judge may continue the hearing for cause or dismiss the complaint without prejudice. Subdivision B of this rule is the same as Rule 321 of the civil action rules.

RULE 513.  DISPUTES CONCERNING TITLE. A.   If the tenant declares in writing, on oath or affirmation, that the title to the real property is disputed and claimed by some named person other than the landlord by virtue of a right or title accruing by descent from or deed or will of

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A.   If it appears at the hearing that the complaint has been proven, the magisterial district judge shall enter judgment against the tenant that the real property be delivered up to the landlord and shall enter judgment by separate entries: (1)   for the amount of rent, if any, which remains due, (2)   for the amount of damages, if any, for unjust detention, (3)   for the physical damages, if any, to the leasehold premises, and 4)   for the costs of the proceeding; less any amount found due the tenant on any cross-complaint filed by the tenant. In addition, the magisterial district judge shall make an entry identifying the sum of money found by the magisterial district judge to constitute the monthly rental for the leasehold premises. B.   A money judgment may be rendered for the tenant on a cross-complaint filed by the tenant if the amount found due thereon exceeds any amount found due the landlord on the landlord’s complaint. C.(1)   Judgment shall be given at the conclusion of the hearing or within three days thereafter. (2)  Upon the entry of the judgment, the magisterial district court shall promptly give or mail to the parties written notice of judgment or dismissal. D.   The written notice of judgment or dismissal shall contain: (1)   notice of the right of the parties to appeal, the time within which the appeal must be taken, and that the appeal is to the court of common pleas; (2)   notice that a tenant in a residential lease action who is a victim of domestic violence may appeal the judgment within 30 days of the date of entry of judgment, as well as filing instructions for asserting such an appeal; (3)   notice that, except as otherwise provided in the rules, if the judgment holder elects to enter the judgment in the court of common pleas, all further process must come from the court of common pleas and no further process may be issued by the magisterial district judge; and (4) notice that unless the judgment is entered in the court of common pleas anyone interested in the judgment may file a request for entry of satisfaction

Part III Ch. 23–35 Mortgages

RULE 514.  JUDGMENT; NOTICE OF JUDGMENT OR DISMISSAL AND THE RIGHT TO APPEAL.

Part II Ch. 15–22 Deeds

Official Note: This rule sets forth the procedures when there is a dispute concerning title.

Part I Ch. 1–14 Brokers

the landlord since the commencement of the lease, and if that person, whether or not appearing before the magisterial district judge, also declares in writing, on oath or affirmation, a true belief of entitlement to the real property, the magisterial district judge shall stay the proceedings, provided the person claiming title files in the court of common pleas of the county in which the real property is located a bond, satisfactory to that court, conditioned upon prosecuting the claim in the court of common pleas. If the claim is not prosecuted in accordance with the conditions of the bond, the bond shall be forfeited to the landlord and the magisterial district judge shall proceed to judgment. B.   If the tenant declares in writing, on oath or affirmation, that the real property is held and claimed by the tenant as a joint tenant or tenant in common with the landlord and that the tenant truly believes that the real property so held does not exceed in quantity or value the just proportion of the tenant’s share as a joint tenant or tenant in common, the magisterial district judge shall stay the proceedings, provided the tenant files in the court of common pleas of the county in which the real property is located a bond, satisfactory to that court, conditioned upon prosecuting the claim in the court of common pleas. If the claim is not prosecuted in accordance with the conditions of the bond, the bond shall be forfeited to the landlord and the magisterial district judge shall proceed to judgment.

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PART VIII

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RULE 514.1

DISTRICT JUDGE RULES

with the magisterial district judge if the debtor pays in full, settles, or otherwise complies with the judgment. Official Note: Subdivision A of this rule requires that the landlord appear and give testimony to prove the complaint before the magisterial district judge can enter judgment against the tenant, even when the tenant fails to appear for the hearing. The magisterial district judge shall not enter a default judgment in a possessory action, including a judgment for money only. See Rule 512A and Note. The various issues that the magisterial district judge must determine at the hearing include: whether notice to quit was given to the tenant in accordance with law or that no notice was required under the terms of the lease; the amount or rent due, if any; damages to the leasehold premises, if any; the amount found to constitute the monthly rental; and, the amount of the security deposit held by the landlord, if any. As to the notice to quit requirement, see Section 501 of the Landlord and Tenant Act of 1951, 68 P.S. § 250.501. See also Patrycia Bros., Inc. v. McKeefrey, 38 Pa. D. & C.2d 149 (Delaware County C.P. 1966). The separate entries provided in subdivision A are made necessary as a result of the rental deposit provisions for appeal or certiorari contained in Rules 1008B and 1013B, as well as the wage attachment provisions contained in Section 8127 of the Judicial Code, 42 Pa.C.S. § 8127. Subdivision B of this rule makes provision for a money judgment for the tenant if the tenant prevails in a greater amount on the tenant’s cross-complaint. Subdivision D of this rule provides for certain notices the magisterial district court shall include in the written notice of judgment or dismissal. Subdivision D(2) reflects that the appeal period for a victim of domestic violence in a case arising out of a residential lease is 30 days. See Rule 1002B(2); see also 68 P.S. § 250.513. A tenant who is a victim of domestic violence may file a domestic violence affidavit with the magisterial district court to stay the execution of an order for possession until 30 days after the date of entry of the judgment, the filing of an appeal with the court of common pleas pursuant to Rule 1002, or by order of the court of common pleas, whichever is earlier. See Rule 514.1. As to subdivision D(3), see Rule 402D and Note. As to subdivision D(4), see Rule 341.

RULE 514.1.  DOMESTIC VIOLENCE AFFIDAVIT. A.   A tenant in a residential lease action who is a victim of domestic violence may file a domestic violence affidavit with the magisterial district court in order to stay the execution of an order for possession. B.   The domestic violence affidavit shall be on a form prescribed by the State Court Administrator and shall require the tenant to affirm that he or she is a victim of domestic violence. C.   The filing of the domestic violence affidavit with the magisterial district court shall stay the execution of an order for possession. The stay will terminate as of the filing of an appeal with the prothonotary pursuant to Rule 1002, 30 days after the date of entry of the judgment, or by order of the court of common pleas, whichever is earlier. D.   The magisterial district court shall enter the domestic violence affidavit on the docket of the residential lease action. E.   The magisterial district court shall serve a copy of the domestic violence affidavit on the landlord by mailing it to the landlord at the address as listed on the complaint form filed in the magisterial district court or as otherwise appearing in the records of that office, or the attorney of record, if any, of the landlord. F.   The tenant shall attach a copy of the domestic violence affidavit to an appeal filing made pursuant to Rule 1002. G.   The domestic violence affidavit is not a public record and it shall not be publically accessible. Official Note: The appeal period for a victim of domestic violence in a case arising out of a residential lease is 30 days. See Rule 1002B(2); see also 68 P.S. § 250.513. A tenant who is a victim of domestic violence may file a domestic violence affidavit with the magisterial district court to prevent the execution of an order for possession prior to filing an appeal. The filing of the affidavit will prohibit the execution of an order for possession until after the 30th day following the date of entry of judgment, giving the tenant time to make the necessary appeal filing with the prothonotary pursuant to Rule 1002. If the tenant does not file a domestic

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Part I Ch. 1–14 Brokers Part II Ch. 15–22 Deeds Part III Ch. 23–35 Mortgages

violence affidavit with the magisterial district court within 21 days following the date of entry of judgment, the tenant is at risk of eviction. The domestic violence affidavit set forth in subdivision B shall contain the name of the tenant who is a victim of domestic violence, the name of the perpetrator, the perpetrator’s relationship to the tenant who is a victim of domestic violence, and the docket number for any protection from abuse case involving the tenant who is a victim of domestic violence and the perpetrator. The affidavit shall contain the tenant’s verification that the statements made in the affidavit are true and correct to the best of the tenant’s knowledge, information and belief, and that any false statements are made subject to the penalties of 18 Pa.C.S. § 4904, relating to unsworn falsification to authorities. No posting of money or bond is required to obtain a stay with the filing of a domestic violence affidavit. However, upon the filing of an appeal pursuant to Rule 1002, the stay is lifted, and the supersedeas requirements of Rule 1008 shall apply. If the landlord wishes to challenge the affidavit of domestic violence, the landlord shall only do so by filing an appropriate motion in the court of common pleas. No action challenging the domestic violence affidavit on any grounds shall be filed in the magisterial district court. This rule establishes that the domestic violence affidavit is not a public record and shall not be publically accessible. See Case Records Public Access Policy of the Unified Judicial System of Pennsylvania, Section 9.0F.

Table of Contents

PART VIII

RULE 515.  REQUEST FOR ORDER FOR POSSESSION.

Part VII Ch. 57–63 Litigation Part VIII Ch. 64–67 L/T Part IX Ch. 68–72 Condos, etc. Index

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Part VI Ch. 49–56 Taxation

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Official Note: The 15 days in subdivision A of this rule, when added to the 16-day period provided for in Rule 519A, will give the tenant time to obtain a supersedeas within the appeal period. See Rules 1002, 1008, 1009, and 1013. The 1995 amendment to section 513 of The Landlord and Tenant Act of 1951, 68 P.S. § 250.513, established a 10-day appeal period from a judgment for possession of real estate arising out of a residential lease. See also Rule 1002B(1). Rule 1002B(2)(a) provides for a 30day appeal period for tenants who are victims of domestic violence. In most cases, the filing of the request for an order for possession in subdivision B(1) is not permitted until after the appeal period has expired. In cases arising out of a residential lease, the request for an order for possession generally must be filed within 180 days of the date of the entry of the judgment. If the tenant is a victim of domestic violence, he or she may file a domestic violence affidavit to stay the execution of the order for possession until the tenant files an appeal with the prothonotary pursuant to Rule 1002, 30 days after the date of entry of the judgment, or by order of the court of common pleas, whichever is earlier. See Rule 514.1C. No posting of money

Part IV Ch. 36–40 Insurance

A.   If the magisterial district judge has rendered a judgment arising out of a non-residential lease that the real property be delivered up to the landlord, the landlord may, after the 15th day following the date of the entry of the judgment, file with the magisterial district judge a request for an order for possession. The request shall include a statement of the judgment amount, return, and all other matters required by these rules. B.(1)   Except as otherwise provided in subdivision B(2), if the magisterial district judge has rendered a judgment arising out of a residential lease that the real property be delivered up to the landlord, the landlord may after the 10th day but within 180 days following the date of the entry of the judgment, file with the magisterial district judge a request for an order for possession. The request shall include a statement of the judgment amount, return, and all other matters required by these rules. (2)   In a case arising out of a residential lease, if before the landlord requests an order for possession, (a)   an appeal or writ of certiorari operates as a supersedeas; or (b)   proceedings in the matter are stayed pursuant to a bankruptcy proceeding or other federal or state law; and (c)  the supersedeas or the bankruptcy or other stay is subsequently stricken, dismissed, lifted, or otherwise terminated so as to allow the landlord to proceed to request an order for possession, the landlord may request an order for possession only within 180 days of the date the supersedeas or the bankruptcy or other stay is stricken, dismissed, lifted, or otherwise terminated.

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RULE 516

DISTRICT JUDGE RULES

or bond is required to obtain a stay with the filing of a domestic violence affidavit; however, upon the filing of an appeal pursuant to Rule 1002, the stay is lifted, and the supersedeas requirements of Rule 1008 shall apply. The magisterial district court shall enter stays in compliance with federal or state law, such as the Servicemembers Civil Relief Act, 50 U.S.C. § § 3901 et seq. Subdivision B(2) provides that in a case arising out of a residential lease, if a supersedeas (resulting from an appeal or writ of certiorari) or bankruptcy or other stay is stricken, dismissed, lifted, or otherwise terminated, thus allowing the landlord to proceed with requesting an order for possession, the request may be filed only within 180 days of the date the supersedeas or the bankruptcy or other stay is stricken, dismissed, lifted, or otherwise terminated. In many judicial districts, appeals of magisterial district court judgments are submitted to compulsory arbitration pursuant to Pa.R.C.P. Nos. 1301—1314. If, after the arbitration, the prothonotary enters an award for possession on the docket in favor of the landlord and the tenant fails to maintain the supersedeas required by Rule 1008 prior to the prothonotary entering judgment on the award, then the landlord may terminate the supersedeas pursuant to Rule 1008B and request an order of possession from the magisterial district judge pursuant to Rule 515. If the prothonotary enters an award on the docket in favor of the tenant and the tenant fails to maintain the supersedeas prior to the prothonotary entering judgment on the award, the landlord may not obtain an order of possession between the time that the prothonotary enters the arbitration award on the docket and the time that the landlord files a notice of appeal. The time limits in which the landlord must request an order for possession imposed in subdivision B apply only in cases arising out of residential leases and in no way affect the landlord’s ability to execute on the money judgment. See Rule 516, Note, and Rule 521A. At the time the landlord files the request for an order for possession, the magisterial district court should collect server fees for all actions through delivery of possession. Thereafter, if the order for possession is satisfied 48 hours or more prior to a scheduled delivery of possession, a portion of the server costs may be refundable. See Rules 516 through 520 and 44 Pa.C.S. § 7161(d).

RULE 516.  ISSUANCE AND REISSUANCE OF ORDER FOR POSSESSION. A.   Upon the timely filing of the request form, the magisterial district judge shall issue the order for possession and shall deliver it for service and execution to the sheriff of, or any certified constable in, the county in which the office of the magisterial district judge is situated. If this service is not available to the magisterial district judge, service may be made by any certified constable of the Commonwealth. The order shall direct the officer executing it to deliver actual possession of the real property to the landlord. The magisterial district judge shall attach a copy of the request form to the order for possession. B.(1)   Except as otherwise provided in subdivision C, upon written request of the landlord the magisterial district judge shall reissue an order for possession for one additional 60-day period. (2)  If an order for possession is issued and subsequently superseded by an appeal, writ of certiorari, supersedeas, or a stay pursuant to a bankruptcy proceeding or other federal or state law or Rule 514.1C, and (a)   the appeal, writ of certiorari, or supersedeas is stricken, dismissed, or otherwise terminated; or (b)   the bankruptcy or other stay is lifted; and (c)  the landlord wishes to proceed with the order for possession, the landlord must file with the magisterial district judge a written request for reissuance of the order for possession in accordance with subdivision B(1). C.   In a case arising out of a residential lease and upon written request of the landlord, the magisterial district judge shall reissue an order for possession for no more than two additional 60-day periods. A request for reissuance of an order for possession may be filed only within 180 days of the date of the entry of the judgment or, in a case in which the order for possession is issued and subsequently superseded by an appeal, writ of certiorari, supersedeas, or a stay pursuant to a bankruptcy proceeding or other federal or state law or Rule 514.1C, only within 180 days of the date the appeal, writ of certiorari, or supersedeas is stricken, dismissed, or otherwise terminated or the bankruptcy or other stay is lifted.

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Part VI Ch. 49–56 Taxation Part VII Ch. 57–63 Litigation Part VIII Ch. 64–67 L/T Part IX Ch. 68–72 Condos, etc. Index

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The magisterial district judge shall mail a copy of the order for possession to the tenant by first class mail and shall deliver a copy of it for service to the sheriff of, or any certified constable in, the county in which the office of the magisterial district judge is situated. If this service is not available to the magisterial district judge, service may be made by any certified constable of the Commonwealth. The officer receiving the order for possession shall note upon the form the time and date that it was received, and shall serve the order within 48 hours by handing a copy of it to the tenant or to an adult person in charge for the time being of the premises possession of which is to be delivered or, if none of the above is found, by posting it conspicuously on those premises. The service copy of the order shall contain the following notice: (1)   For nonresidential leases: If you, and all occupants of this property not authorized by the owner to be present thereon, do not vacate this property within 15 days after the date of this notice, the law authorizes me to use such force as may be necessary to

Part III Ch. 23–35 Mortgages

RULE 517.  NOTATION OF TIME OF RECEIPT; SERVICE OF ORDER FOR POSSESSION.

Part II Ch. 15–22 Deeds

Official Note: The order for possession deals only with delivery of possession of real property and not with a levy for money damages. A landlord who seeks execution of the money judgment part of the judgment must proceed under Rule 521A, using the forms and procedure there prescribed. The reason for making this distinction is that the printed notice requirements on the two forms, and the procedures involved in the two matters, differ widely. Subdivision B provides for reissuance of the order for possession for one additional 60-day period. However, pursuant to subdivision C, in cases arising out of a residential lease, the request for reissuance of the order for possession must be filed within 180 days of the date of the entry of the judgment or, in a case in which the order for possession is issued and subsequently superseded by an appeal, writ of certiorari, supersedeas or a stay pursuant to a bankruptcy proceeding or other federal or state law or Rule 514.1C, only within 180 days of the date the appeal, writ of certiorari, or supersedeas is stricken, dismissed, or otherwise terminated, or the bankruptcy or other stay is lifted. In a case arising out of a residential lease, the magisterial district judge may reissue the order for possession for no more than two additional 60-day periods. The additional 60-day period need not necessarily immediately follow the original 60-day period of issuance. The written request for reissuance may be in any form and may consist of a notation on the permanent copy of the request for order for possession form, “Reissuance of order for possession requested,” subscribed by the landlord. The magisterial district judge shall mark all copies of the reissued order for possession, “Reissued. Request for reissuance filed ________ (time and date).” A new form may be used upon reissuance, those portions retained from the original being exact copies although signatures may be typed or printed with the mark “/s/.” There are no filing costs for reissuing an order for possession, for the reissuance is merely a continuation of the original proceeding. However, there may be additional server costs for service of the reissued order for possession. The magisterial district court shall enter stays in compliance with federal or state law, such as the Servicemembers Civil Relief Act, 50 U.S.C. § § 3901 et seq. In many judicial districts, appeals of magisterial district court judgments are submitted to compulsory arbitration pursuant to Pa.R.C.P. Nos. 1301—1314. If, after the arbitration, the prothonotary enters an award for possession on the docket in favor of the landlord and the tenant fails to maintain the supersedeas required by Rule 1008 prior to the prothonotary entering judgment on the award, then the landlord may terminate the supersedeas pursuant to Rule 1008B and request an order of possession from the magisterial district judge pursuant to Rule 515. If the prothonotary enters an award on the docket in favor of the tenant and the tenant fails to maintain the supersedeas prior to the prothonotary entering judgment on the award, the landlord may not obtain an order of possession between the time that the prothonotary enters the arbitration award on the docket and the time that the landlord files a notice of appeal. The time limits in which the landlord must request reissuance of an order for possession imposed in subdivision C apply only in cases arising out of residential leases and in no way affect the landlord’s ability to execute on the money judgment. See Rule 521A.

Part I Ch. 1–14 Brokers

D.   A written request for reissuance of the order for possession, filed after an appeal, writ of certiorari, or supersedeas is stricken, dismissed, or otherwise terminated, or a bankruptcy or other stay is lifted, must be accompanied by a copy of the court order or other documentation striking, dismissing, or terminating the appeal, writ of certiorari, or supersedeas, or lifting the bankruptcy or other stay.

Table of Contents

PART VIII

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RULE 518

DISTRICT JUDGE RULES

enter upon the property, by the breaking in of any door or otherwise, and to eject you and all unauthorized occupants. (2)   For residential leases: If you, and all occupants of this property not authorized by the owner to be present thereon, do not vacate this property within 10 days after the date of this notice, the law authorizes me to use such force as may be necessary to enter upon the property by the breaking in of any door or otherwise, and to eject you and all unauthorized occupants. The date of the notice shall be the same as the date of the service. Official Note: Under this rule, service must be made both by first class mail and delivery for service in the manner prescribed. The differing lengths of notices set forth for nonresidential leases and residential leases are made necessary by reason of the 1995 amendment to Section 513 of the Landlord and Tenant Act of 1951, 68 P.S. § 250.513. See Rule 515, Note.

RULE 518.  SATISFACTION OF ORDER BY PAYMENT OF RENT AND COSTS. At any time before actual delivery of the real property is made in execution of the order for possession, the tenant may, in a case for the recovery of possession solely because of failure to pay rent, satisfy the order for possession by paying to the executing officer the rent actually in arrears and the costs of the proceedings. The executing officer shall give the tenant a signed receipt for any such payment. Official Note: “Rent actually in arrears” means the sum set forth on the order for possession. For procedure for entry of satisfaction of money judgments, see Rule 341.

RULE 519.  FORCIBLE ENTRY AND DELIVERY OF POSSESSION. A.   If, on or after the 16th day following the service of the order for possession arising out of a nonresidential lease, the tenant or any unauthorized occupant remains on the real property, the officer executing the order for possession shall use such force as may be necessary to enter upon the property, by the breaking in of any door or otherwise, and to eject the tenant and any unauthorized occupant and shall deliver possession of the real property to the landlord or the landlord’s agent. B.   If, on or after the 11th day following the service of the order for possession in cases arising out of a residential lease, the tenant or any unauthorized occupant remains on the real property, the officer executing the order for possession shall use such force as may be necessary to enter upon the property, by the breaking in of any door or otherwise, and to eject the tenant and any unauthorized occupant and shall deliver possession of the real property to the landlord or the landlord’s agent. C.   No order for possession may be executed after 60 days following its issuance or reissuance. Official Note: The differing lengths of notices set for nonresidential leases and residential leases are made necessary by reason of the 1995 amendment to Section 513 of the Landlord and Tenant Act of 1951, 68 P.S. § 250.513. See Rule 515, Note.

RULE 519.1.  REQUEST FOR DETERMINATION OF ABANDONED MANUFACTURED HOME. A.  A landlord may request a determination that a manufactured home is abandoned by filing the request on a form prescribed by the State Court Administrator with the magisterial district court in the magisterial district where the manufactured home is located. B.   If the determination is not or cannot be made during a hearing for recovery of possession pursuant to this chapter, the magisterial district court shall set a hearing date that shall be not less than seven or more than fifteen days from the date the request is filed.

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RULE 521.  EXECUTION BY LEVY.

Part VIII Ch. 64–67 L/T Part IX Ch. 68–72 Condos, etc.

A.   If the landlord in an action for recovery of possession of real property obtains a judgment for damages for injury to or unjust detention of the premises, for rent remaining due and for the costs of the proceeding, or for any of these, the landlord may obtain execution of that judgment by levy upon personal property of the tenant in accordance with the rules for the Execution of Judgments for the Payment of Money Rendered by Magisterial District Judges, and the form for a request for an order of execution there prescribed shall be used for this purpose. B.   If the tenant in an action for recovery of possession of real property obtains a money judgment on a cross-complaint against the landlord, the tenant may obtain execution of the judgment by levy upon personal property of the landlord in accordance with the rules for the Execution of Judgments for the Payment of Money Rendered by Magisterial District Judges.

Part VII Ch. 57–63 Litigation

Amended July 30, 1982, effective 30 days after July 17, 1982; March 28, 1996, effective March 29, 1996.

Part VI Ch. 49–56 Taxation

Within five business days following delivery of possession to the landlord or satisfaction by payment of rent in arrears and costs, the officer executing the order for possession shall make a return on the order for possession form. The return shall show: (1)   The date, time, place, and manner of service of the order. (2)   If the order was satisfied by the payment of rent in arrears and costs by or on behalf of the tenant, the amount of that payment, and its distribution. (3)   The time and date of any forcible entry and ejectment, or that no entry for the purpose of ejectment had to be made. (4)   The officer’s expenses and fees.

Part V Ch. 41–48A Zoning, etc.

RULE 520.  OFFICER’S RETURN.

Part IV Ch. 36–40 Insurance

Rules 1016—1020, providing for the filing and consideration of a statement of objection to an order or determination made by a magisterial district judge under Rule 420, also apply to determinations made under this rule. A party seeking reconsideration of a determination of abandonment made concurrent with a judgment for possession must file the statement of objection in addition to the notice of appeal. Rule 1016B requires that the statement of objection must be filed with the prothonotary and the magisterial district judge within 10 days after the date of the determination to which objection is made. Both appeals from judgments for possession under residential leases and statements of objections to determinations of abandonment must be made within 10 days after the date of entry.

Part III Ch. 23–35 Mortgages

The landlord must pay any fees or costs at the time of filing the request.

Part II Ch. 15–22 Deeds

Official Note: This rule was adopted in 2013 to accommodate the provisions of Section 10.1 of the Act of November 24, 1976, P.L. 1176, No. 261, added by Section 2 of the Act of October 24, 2012, P.L. 156, § 2, 68 P.S. § 398.10.1, which provides for a magisterial district judge to hold a hearing and make a determination that a manufactured home is abandoned.

Part I Ch. 1–14 Brokers

C.  The magisterial district court shall serve a copy of the request and the hearing notice on the tenant in the manner set forth in Rule 506. D.   The magisterial district judge shall promptly give or mail written notice of the determination to the parties in interest. Notice of the determination shall contain advice as to the right of the parties to file a Statement of Objection, the time within which the statement must be filed, and that the statement is to be filed with the court of common pleas. E.  Any party aggrieved by a determination made by a magisterial district judge under this rule may obtain a reconsideration thereof in the court of common pleas by filing a statement of objection to the determination pursuant to Rule 1016 with the prothonotary and with the magisterial district judge in whose office the determination was made.

Table of Contents

PART VIII

Official Note: See Rule 516, Note.

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Index

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RULE 581

DISTRICT JUDGE RULES

RULE 581.  ACTS OF ASSEMBLY SUSPENDED. All Acts of Assembly or parts thereof inconsistent with the rules governing practice and procedure in actions before magisterial district judges for the recovery of possession of real property are suspended to the extent of such inconsistency. The following Acts of Assembly are suspended insofar as they are inconsistent with the foregoing rules: (1)  Act of July 6, 1995, amending the Act of April 6, 1951, (P. L. 69, No. 20), known as Act 33 of 1995; (2)  Act of July 6, 1995, amending the Act of April 6, 1951, (P. L. 69, No. 20), known as Act 36 of 1995. Amended June 30, 1982, effective 30 days after July 17, 1982; amended March 28, 1996, effective March 29, 1996.

RULE 582.  ACTS OF ASSEMBLY NOT SUSPENDED. The following Acts of Assembly shall not be deemed suspended or affected: Section 1 of the Act of January 24, 1966, P. L. (1965) 1534, as last amended by § 2, Act of June 11, 1968, P. L. 159, No. 89, 35 P. S. § 1700—1. Official Note: This Section provides, inter alia, that no tenant shall be evicted for any reason while rent is deposited in escrow because the dwelling in question has been certified as unfit for human habitation. See the note to Rule 503.

RULE 801.  DEFINITIONS. As used in this chapter: (1)  ”Action” includes a civil action as defined by Rule 301 and an action by a landlord against a tenant for the recovery of possession of real p