Understanding Upset Tax Sales in Pennsylvania

Property Tax Sales are a significant concern for Pennsylvanians due to the state’s second-highest property tax rates in the United States. When property owners fall behind on their real estate taxes, the state may initiate a tax sale. Many counties utilize what is referred to as an Upset Tax Sale. This legal process allows counties to sell properties with delinquent tax payments to recover owed taxes.

What is an Upset Tax Sale in Pennsylvania?

An Upset Tax Sale is a procedure used by many counties in Pennsylvania to sell properties that have unpaid real estate taxes. These tax sales typically occur every September and are governed by 72 P.S. § 5860.601-609.

It is important to note that Allegheny County and Philadelphia County do not utilize the Upset Sale process. Instead, these counties use a different tax sale method. However, the remaining 65 of Pennsylvania’s 67 counties rely on the Upset Tax Sale process.

How a Property Qualifies for an Upset Tax Sale in Pennsylvania

For a property to be eligible for an Upset Tax Sale, the following conditions must be met:

• The property must have delinquent taxes for at least two years.
• The county tax claim bureau must follow the strict notification procedures proscribed by the law.

To proceed with an Upset Tax Sale, the taxing authority must provide the owner with all three of the following forms of notice:

1. Published Notice in two newspapers with general circulation in the county.
2. Certified Mail Notice with a return receipt requested.
3. Posted Notice directly on the property.

Each of these forms of notice must be strictly adhered to for the Upset Sale to be valid. If the certified mail is not properly received, the county tax claim bureau must make additional efforts to ensure the owner is notified.

What Happens at an Upset Tax Sale?

During the Upset Tax Sale, potential buyers bid on properties. The highest bidder wins the property. The buyer must pay the full purchase price on the day of the sale. If the property sells for more than the delinquent taxes owed, the original property owner may be entitled to the excess funds.

Confirming the Sale and Property Transfer

After the Upset Tax Sale, the county tax claim bureau must file a petition to the Court to confirm the sale. Once the sale is confirmed, the buyer may proceed to have the deed transferred into their name. However, the property owner has the right to challenge the sale.

How to Challenge an Upset Tax Sale: Petition to Set Aside

Unlike tax sales in Allegheny County and Philadelphia County, there is no automatic right of redemption for property owners in an Upset Sale. To overturn the sale, the owner must show that there was defective notice.

If you are the property owner and believe that the notice requirements were not met, you may file a Petition to Set Aside Tax Sale. This legal action must be filed within 30 days after the sale confirmation.

The good news for property owners is that the notice requirements for Upset Sales are strictly enforced. The burden is on the county tax claim bureau to prove that they provided the proper notice in the correct manner. If they fail to meet these requirements, it’s possible for the sale to be overturned.

What Buyers Should Know About Upset Tax Sales

If you’re considering purchasing a property at an Upset Tax Sale, it’s crucial to understand the legal intricacies. The tax claim bureau may not oppose a Petition to Set Aside. It is up to the buyer to intervene in court to protect their rights if the sale is challenged.

Why Consult a Pennsylvania Real Estate Lawyer?

Whether you are trying to overturn an Upset Tax Sale or looking to purchase a property at one, it’s essential to seek the guidance of an experienced real estate attorney. The process can be complicated. A knowledgeable lawyer can help you navigate the steps involved.

Contact Stoner Law Offices, LLC for Help with Upset Tax Sales in Pennsylvania

At Stoner Law Offices, LLC, our experienced real estate attorneys have helped numerous clients throughout Pennsylvania with Upset Tax Sale matters. If you are facing issues related to a tax sale in Pennsylvania, don’t hesitate to contact us for a free consultation at 412-515-0939.