Understanding Real Estate Law in Pennsylvania: title issues, record discipline, and next steps

Pennsylvania's residential mortgage foreclosure process is, in practice, judicial — governed by the Pennsylvania Rules of Civil Procedure and requiring court action — despite Pennsylvania technically being a non-judicial foreclosure state for some mortgage types. Pennsylvania's Act 91 of 1983 (35 P.S. § 1680.401 et seq.) created a specific notice and conciliation requirement before residential foreclosure filings that gives borrowers meaningful opportunity to seek assistance. Philadelphia has a separately funded Mortgage Foreclosure Diversion Program with mandatory conciliation conferences for Philadelphia residential foreclosures.

Pennsylvania Foreclosure: Act 91 Notice Requirement

Before filing a residential mortgage foreclosure, lenders must send the borrower an Act 91 Notice — a written notice advising the borrower of their right to apply for assistance through the Pennsylvania Homeowners' Emergency Mortgage Assistance Program (HEMAP) and providing 30 days to do so. If the borrower applies for HEMAP within 30 days, the lender must stay the foreclosure while HEMAP evaluates the application. After the 30-day Act 91 notice period, the lender can file a foreclosure complaint. The Act 91 notice is a pre-foreclosure protection unique to Pennsylvania — it creates a real opportunity for eligible homeowners to avoid foreclosure through state assistance before the lawsuit begins.

Pennsylvania Foreclosure Timeline

Pennsylvania residential foreclosure proceeds through circuit court. After the Act 91 notice period, the lender files a Complaint in Mortgage Foreclosure. The borrower has 20 days to file a preliminary objection or 30 days to respond. If uncontested, the lender moves for default judgment; a writ of execution is issued; the property is scheduled for sheriff's sale. Typical uncontested timeline: 6–12 months. Philadelphia's Residential Mortgage Foreclosure Diversion Program requires mandatory conciliation conferences — adding time but creating additional settlement opportunities. A contested foreclosure with active defense can take significantly longer. Pennsylvania law provides a right of redemption up until the time of the sheriff's sale — the borrower can pay the debt and stop the sale at any point before the gavel falls.

Pennsylvania Realty Transfer Tax

Pennsylvania imposes a realty transfer tax of 1% of the total consideration on most deed transfers (72 P.S. § 8102-C). Most localities (municipalities and school districts) impose an additional 1% local transfer tax, for a total typical rate of 2%. Exception: Philadelphia imposes a local transfer tax of 3.278% (city 3% + school district 0.278%), making total transfer tax on a Philadelphia purchase 4.278%. On a $300,000 Philadelphia purchase, the total transfer tax is approximately $12,834. Outside Philadelphia, total transfer tax is typically $6,000 on a $300,000 purchase. By custom in Pennsylvania, the seller and buyer split the transfer tax equally — each paying half — though this is negotiable. Some transfers (family transfers within certain relationship categories, certain refinances) may be exempt or receive reduced transfer tax rates.

Pennsylvania Landlord-Tenant: Security Deposits

Pennsylvania's Landlord and Tenant Act (68 P.S. § 250.511a) limits security deposits to 2 months' rent in the first year of the lease and 1 month's rent in subsequent years. Landlords must return the deposit (or the remaining balance) within 30 days of the tenant vacating, along with an itemized list of damages deducted. If the landlord fails to return the deposit within 30 days, the tenant can sue for double the deposit amount plus court costs. Pennsylvania does not require landlords to hold deposits in escrow or pay interest (unlike Chicago under the RLTO), but the 30-day return requirement is strict.