Regular Session 2017-2018 House Bill 2548 P.N. 3854

PRINTER'S NO. 3854

THE GENERAL ASSEMBLY OF PENNSYLVANIA

HOUSE BILL

No.

2548

Session of

2018

INTRODUCED BY RYAN, SANKEY, VAZQUEZ AND ZIMMERMAN, JULY 5, 2018

REFERRED TO COMMITTEE ON URBAN AFFAIRS, JULY 5, 2018

AN ACT

Amending the act of July 7, 1947 (P.L.1368, No.542), entitled

"An act amending, revising and consolidating the laws

relating to delinquent county, city, except of the first and

second class and second class A, borough, town, township,

school district, except of the first class and school

districts within cities of the second class A, and

institution district taxes, providing when, how and upon what

property, and to what extent liens shall be allowed for such

taxes, the return and entering of claims therefor; the

collection and adjudication of such claims, sales of real

property, including seated and unseated lands, subject to the

lien of such tax claims; the disposition of the proceeds

thereof, including State taxes and municipal claims recovered

and the redemption of property; providing for the discharge

and divestiture by certain tax sales of all estates in

property and of mortgages and liens on such property, and the

proceedings therefor; creating a Tax Claim Bureau in each

county, except counties of the first and second class, to act

as agent for taxing districts; defining its powers and

duties, including sales of property, the management of

property taken in sequestration, and the management, sale and

disposition of property heretofore sold to the county

commissioners, taxing districts and trustees at tax sales;

providing a method for the service of process and notices;

imposing duties on taxing districts and their officers and on

tax collectors, and certain expenses on counties and for

their reimbursement by taxing districts; and repealing

existing laws," in short title and definitions, further

providing for definitions; and, in sale of property, further

providing for upset sale price and for hearing and order for

judicial sale and providing for sale of residential property.

The General Assembly of the Commonwealth of Pennsylvania

hereby enacts as follows:

Section 1. Section 102 of the act of July 7, 1947 (P.L.1368,

No.542), known as the Real Estate Tax Sale Law, is amended by

adding a definition to read:

Section 102. Definitions.--As used in this act, the

following words shall be construed as herein defined, unless the

context clearly indicates otherwise:

* * *

"Minimum value," the following:

(1) (i) eighty percent of the value of a residential

property as determined by a real estate appraiser licensed or

certified by the State Board of Certified Real Estate Appraisers

for the year in which notice of sale is given under section 602

or during the prior three years; or

(ii) if there has been more than one appraisal during that

period, the value as determined by the most recent appraisal; or

(2) a value jointly stipulated by the bureau and the owner

of the residential property.

* * *

Section 2. Section 605 of the act is amended to read:

Section 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

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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[.], provided that, for the

sale of owner-occupied residential real estate, the upset price

shall not be less than the minimum value of the property unless

the property is purchased by the holder of an obligation secured

by a mortgage on the property.

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 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.

Section 3. Section 612(a) of the act is amended and the

section is amended by adding a subsection to read:

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Section 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] the

property be sold at a subsequent day to be fixed by the court or

in the manner provided under subsection (e), freed and cleared

of all tax and municipal claims, mortgages, liens, charges and

estates, except separately taxed ground rents, to the highest

bidder or the purchaser for a sale as provided under subsection

(e), 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 and any broker's commission under

subsection (e). 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. After the purchaser shall have paid over the purchase

price, the bureau shall make and deliver a deed in the manner

hereinbefore provided.

* * *

(e) Except for the sale of property to the holder of an

obligation secured by a mortgage on the property, a judicial

sale of a residential property shall be made by listing the

property for sale by a real estate broker licensed by the State

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Real Estate Commission and selected in an open and competitive

manner by the bureau. In selecting a broker, the bureau may

contract to retain for use by the bureau, the county or any

taxing district, a portion of the commission payable upon the

sale of the property. The broker shall offer the property for

sale in a commercially reasonable manner at a price no lower

than the minimum value and on the terms and conditions

established by the bureau. If the broker does not obtain an

offer to purchase the property for at least the minimum value

within a reasonable time, the court, after hearing, may:

(1) approve the highest outstanding offer, if any;

(2) reduce the minimum value of the property to a

commercially reasonable amount and order that the property

continue to be offered for an additional time; or

(3) order that the property be sold as otherwise provided

under this act.

Section 4. The act is amended by adding a section to read:

Section 620. Sale of Residential Property.--The requirements

under sections 605 and 612 relating to the minimum sale price

and procedures for the sale of residential property shall apply

to a sale of residential property to satisfy municipal claims or

delinquent taxes under the act of May 16, 1923 (P.L.207,

No.153), referred to as the Municipal Claim and Tax Lien Law,

and the act of October 11, 1984 (P.L.876, No.171), known as the

Second Class City Treasurer's Sale and Collection Act, except

that the authority granted to the bureau under sections 605 and

612 shall be granted to the claimant under the Municipal Claim

and Tax Lien Law or to the city treasurer under the Second Class

City Treasurer's Sale and Collection Act.

Section 5. This act shall take effect in 120 days.

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