PRIOR PRINTER'S NO. 581 PRINTER'S NO. 1175
No. 552 Session of 1991
INTRODUCED BY SALVATORE, FEBRUARY 20, 1991
AS AMENDED ON SECOND CONSIDERATION, MAY 14, 1991
AN ACT
1 Amending the act of May 16, 1923 (P.L.207, No.153), entitled "An
2 act providing when, how, upon what property, and to what
3 extent, liens shall be allowed for taxes and for municipal
4 improvements, for the removal of nuisances, and for water
5 rents or rates, sewer rates, and lighting rates; for the
6 procedure upon claims filed therefor; the methods for
7 preserving such liens and enforcing payment of such claims;
8 the effect of judicial sales of the properties liened; the
9 distribution of the proceeds of such sales, and the
10 redemption of the property therefrom; for the lien and
11 collection of certain taxes heretofore assessed, and of
12 claims for municipal improvements made and nuisances removed,
13 within six months before the passage of this act; and for the
14 procedure on tax and municipal claims filed under other and
15 prior acts of Assembly," further providing for sale upon
16 judgment in cities of the first class; and providing for
17 registration of interested parties, service of notice and
18 statute of limitations in cities of the first class.
19 The General Assembly of the Commonwealth of Pennsylvania
20 hereby enacts as follows:
21 Section 1. Section 31.2(a) of the act of May 16, 1923
22 (P.L.207, No.153), referred to as the Municipal Claim and Tax
23 Lien Law, added March 15, 1956 (1955 P.L.1274, No.388), is
24 amended to read:
25 Section 31.2. (a) In addition to the remedies prescribed in
1 sections 28, 31 and 31.1 of this act, in cities of the first
2 class, whenever a claimant has [obtained a judgment upon] filed
3 its tax or municipal claim in accordance with the requirements
4 of this act, it may file its petition in the court in which the
5 proceeding is pending, setting forth the facts necessary to show
6 the right to sell, together with searches or a title insurance
7 policy, showing the state of record and the ownership of the
8 property, and of all tax and municipal claims, mortgages, ground
9 rents or other charges on, or estates in, the land, as shown by
10 the official records of the city or county, or the political
11 subdivision in which the real estate is situate, and thereupon
12 the court shall grant a rule upon all parties thus shown to be
13 interested, to appear and show cause why a decree should not be
14 made that the property be sold, freed and cleared of their
15 respective claims, mortgages, ground rents, charges and estates.
16 If upon a hearing, the court is satisfied that service had been
17 made of the rule upon the parties respondent in the manner
18 provided in this act for the service of writs of scire facias to
19 obtain judgments upon tax and municipal claims, and that
20 contemporaneously with the service of the rule on the parties
21 respondent notice of the rule has been published by the claimant
22 in at least one newspaper of general circulation in the county,
23 and in a legal periodical published therein, if any, and that
24 the facts stated in the petition be true, it shall order and
25 decree that the property be sold at a subsequent sheriff's sale
26 at a time to be fixed thereafter by the claimant, clear of all
27 claims, liens, mortgages, ground rents, charges and estates, to
28 the highest bidder at such sale and after payment of the tax or
29 municipal lien the balance of the proceeds realized therefrom,
30 shall be distributed in accordance with the priority of the
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1 remaining claims, liens, mortgages, ground rents, charges and
2 estates, and the purchaser at such sale shall take and forever
3 thereafter have, an absolute title to the property sold, free
4 and discharged of all tax and municipal claims, liens,
5 mortgages, ground rents, charges and estates of whatsoever kind,
6 subject only to the right of redemption as provided by law. The
7 date of the sale shall be advertised in at least one newspaper
8 of general circulation in the county and in the legal periodical
9 published therein.
10 (b) The deed to the purchaser shall be executed,
11 acknowledged and delivered as in other real estate sales by the
12 sheriff. Any person interested may at any time prior to the
13 proposed sale pay all the costs of the proceedings, including
14 the cost for the title search or title insurance policy, and all
15 tax and municipal claims, penalties and interest thereon,
16 charged against the property whereupon the proceedings on
17 petition shall at once determine.
18 (c) For the purpose of enabling the petitioner in any
19 proceedings to give the notice required, it may take the
20 testimony of the defendant in the claim, or of any other person
21 whom it may have reason to believe has knowledge of the
22 whereabouts of any of the parties respondent, either by
23 deposition, commission or letters rogatory.
24 (d) Any claimant may bid and become the purchaser of the
25 property at such sale, and if such purchaser shall be a taxing
26 authority within the city or county, such property while held
27 and owned by such taxing authority, shall not be subject to tax
28 claims, unless it be redeemed by the former owner or other
29 person having the right to redeem, as provided by law. If,
30 however, a city or county, or a taxing authority within the city
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1 or county, shall become the purchaser at said sale, the former
2 owner or other persons, desiring to redeem, shall pay all taxes
3 and municipal claims accrued and chargeable against the property
4 prior to the sale thereof, together with the costs and interest
5 thereon, and also all taxes and claims, whether filed or not,
6 which would have accrued and become chargeable against the
7 property had the same been purchased at the sale by some party
8 other than the city or county, or a taxing authority within the
9 city or county.
10 (e) Upon the delivery by the sheriff of a deed for any
11 property sold under the provisions of this section, the judgment
12 upon which such sale was had shall thereupon and forever
13 thereafter be final and conclusive, and the validity thereof
14 shall not be questioned for any cause whatsoever.
15 Section 2. The act is amended by adding sections to read:
16 Section 39.1. (a) Any owner of real property located within
17 a city of the first class, any mortgagee thereof, or any person
18 having a lien or claim thereon or interest therein, shall
19 register a notice of interest with the department of the city of
20 the first class responsible for collection of tax and municipal
21 claims, stating his name, residence and mailing address and a
22 description of the real property in which the person has an
23 interest. The interested party shall file an amended
24 registration as needed.
25 (b) After the completion and filing of a notice of interest,
26 a city of the first class shall serve all petitions, rules and
27 other notices required by this act on those interested parties
28 at the registered address.
29 Section 39.2. (a) In cities of the first class, notice of a
30 rule to show cause why a property should not be sold free and
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1 clear of all encumbrances issued by a court pursuant to a
2 petition filed by a claimant under section 31.2 of this act
3 shall be served by the claimant upon owners, mortgagees, holders
4 of ground rents, liens and charges or estates of whatsoever kind
5 as follows:
6 (1) By posting a true and correct copy of the petition and
7 rule on the most public part of the property;
8 (2) By mailing by first class mail to the address registered
9 by any interested party pursuant to section 39.1 of this act a
10 true and correct copy of the petition and rule; and
11 (3) In the event a title search, title insurance policy or
12 tax information certificate identifies interested parties of
13 record who have not registered their addresses pursuant to
14 section 39.1 of this act, the city shall mail by first class
15 mail and by registered mail to such addresses as appear on the
16 respective records relating to the premises a true and correct
17 copy of the petition and rule.
18 The city shall file an affidavit of service with the court prior
19 to seeking a decree ordering the sale of the premises.
20 (b) No party whose interest did not appear on a title
21 search, title insurance policy or tax information certificate or
22 who failed to accurately register his interest and address
23 pursuant to section 39.1 of this act shall have standing to
24 complain of improper notice if the city shall have complied with
25 subsection (a) of this section.
26 (c) Notice of the court's decree ordering a tax sale,
27 together with the time, place and date of the sale, shall be
28 served by first class mail on all parties served with the
29 petition and rule on any parties whose interest appeared of
30 record after the filing of the petition but before the court's
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1 decree and on any creditor who has obtained judgment against the
2 owner of the premises prior to the date of the decree. The city
3 shall file an affidavit of service of these notices prior to the
4 date of the sale.
5 Section 39.3. All parties wishing to contest the validity of
6 any sale conducted pursuant to section 31.2 of this act,
7 including the sufficiency of any notice, and any party claiming
8 to have an interest in the premises which was not discharged by
9 the sale, must file a petition seeking to overturn the sale or
10 to establish the interest within six months of the
11 acknowledgment of the deed to the premises by the sheriff.
12 Section 39.4. Cities of the first class shall proceed on tax
13 claims after one year of delinquency, unless the owner or an
14 interested party enters into a payment agreement suitable to the
15 claimant. THE FINANCE DIRECTOR OF THE CITY MAY PRECLUDE THE SALE <--
16 OF A PROPERTY ON A CASE-BY-CASE BASIS IF THE SALE WOULD CREATE
17 AN UNDUE HARDSHIP ON THE PROPERTY OWNER OR OCCUPANT.
18 Section 3. This act shall take effect in 60 days.
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