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                                                       PRINTER'S NO. 511

THE GENERAL ASSEMBLY OF PENNSYLVANIA


SENATE BILL

No. 487 Session of 1989


        INTRODUCED BY SHUMAKER, SCANLON, SALVATORE AND LYNCH,
           FEBRUARY 9, 1989

        REFERRED TO JUDICIARY, FEBRUARY 9, 1989

                                     AN ACT

     1  Amending Title 68 (Real and Personal Property) of the
     2     Pennsylvania Consolidated Statutes, adding provisions
     3     relating to transactions and other matters affecting land;
     4     and making repeals.

     5                         TABLE OF CONTENTS
     6                              TITLE 68
     7                     REAL AND PERSONAL PROPERTY
     8                      PART II.  REAL PROPERTY
     9                     SUBPART D.  LAND TRANSFERS
    10  Chapter 51.  General Provisions
    11     Subchapter A.  Short Title, Construction, Application and
    12                     Subject Matter of Subpart
    13  § 5101.  Short title of subpart.
    14  § 5102.  Purposes and rules of construction.
    15  § 5103.  Supplementary general principles of law applicable.
    16  § 5104.  Construction against implied repeal.
    17  § 5105.  Purposes of definitions.
    18     Subchapter B.  General Definitions


     1  § 5111.  General definitions.
     2  § 5112.  Notice; knowledge; giving notice; receipt of notice.
     3     Subchapter C.  General Provisions
     4  § 5121.  Obligation of good faith.
     5  Chapter 52.  Conveyancing and Recording
     6     Subchapter A.  Scope and Definitions
     7  § 5201.  Scope of chapter.
     8  § 5202.  Definitions.
     9     Subchapter B.  Conveyancing
    10  § 5211.  Formal requisites of conveyance.
    11  § 5212.  Delivery.
    12  § 5213.  Transfer to organization or officer.
    13  § 5214.  Conveyance in which grantor is also grantee;
    14             reservation or exception.
    15  § 5215.  Sale of real estate affected with future interest.
    16     Subchapter C.  Recording
    17  § 5231.  Formal requisites for recording.
    18  § 5232.  Indexing information and consequences of information.
    19  § 5233.  Separate indexing instructions.
    20  § 5234.  Effect of indexing information.
    21  § 5235.  Evidentiary effect of recorded signed document.
    22  § 5236.  Certified copy of record.
    23  § 5237.  Affidavits.
    24  § 5238.  Notice of intent to preserve interest.
    25  § 5239.  Incorporation of master form.
    26  § 5240.  Memorandum of lease.
    27  § 5241.  Reference by record location.
    28  § 5242.  Reference to legal description.
    29  Chapter 53.  Priorities, Marketable Record Title and
    30                 Extinguishment of Claims
    19890S0487B0511                  - 2 -

     1     Subchapter A.  Scope and Definitions
     2  § 5301.  Scope of chapter.
     3  § 5302.  Definitions.
     4     Subchapter B.  Priority of Claims
     5  § 5311.  Effect of conveyance.
     6  § 5312.  Title acquired by purchaser for value who has recorded.
     7  § 5313.  Additional rules concerning priorities.
     8  § 5314.  Claims relating back to time before recording.
     9  § 5315.  Effect of knowledge.
    10  § 5316.  Lapse of effect of recording option or contract for
    11             conveyance.
    12  § 5317.  Effect of indefinite reference in recorded instrument.
    13  § 5318.  Effect of restrictions on power of disposition.
    14  § 5319.  Priority of advances under a recorded security
    15             interest.
    16  § 5320.  General liens.
    17  § 5321.  Priority of specific liens.
    18  § 5322.  Real estate tax and other liens.
    19  § 5323.  Priority of judgment liens.
    20     Subchapter C.  Marketable Record Title
    21  § 5331.  Definitions.
    22  § 5332.  Marketable record title.
    23  § 5333.  Matters to which marketable record title is subject.
    24  § 5334.  Interests extinguished by marketable record title.
    25  § 5335.  Effect upon marketable record title of recording notice
    26             of intent to preserve an interest.
    27  § 5336.  Interests not barred by subchapter.
    28  § 5337.  Effect of contractual liability as to interests
    29             antedating root of title.
    30  § 5338.  Limitations of actions.
    19890S0487B0511                  - 3 -

     1  § 5339.  Abandonment in fact.
     2     Subchapter D.  Curative Provisions and Limitations
     3  § 5351.  Minor defects cured by two-year lapse.
     4  § 5352.  Six-year period of limitation on certain proceedings.
     5  § 5353.  Accrual of claim.
     6  § 5354.  Periods of limitation on proceedings to recover or
     7             obtain possession.
     8  § 5355.  Extent of adverse possession.
     9  § 5356.  Evidence of adverse possession.
    10  § 5357.  Expiration of recorded security interests; ten years
    11             after maturity; extension.
    12  § 5358.  Extinguishing possibility of reverter and right of
    13             entry for condition broken.
    14  § 5359.  Extinguishment of claims by limitations.
    15  § 5360.  Effect upon statute of limitations.
    16  Chapter 54.  Liens and Encumbrances
    17     Subchapter A.  Scope and Definitions
    18  § 5401.  Scope and applicability of subpart to liens and
    19             encumbrances.
    20  § 5402.  Definitions.
    21     Subchapter B.  Liens
    22  § 5411.  Proceedings in aid of establishing specific lien.
    23  § 5412.  Changing general lien into specific lien.
    24  § 5413.  Discharge of invalid lien.
    25  § 5414.  Federal tax and judgment liens.
    26     Subchapter C.  Notice of Pending Proceedings
    27  § 5431.  Rights of purchasers against pending proceedings.
    28  § 5432.  Recording of notice of pending proceedings.
    29  § 5433.  Effect of amendment of pleadings.
    30  § 5434.  Form and contents of notice.
    19890S0487B0511                  - 4 -

     1  § 5435.  Voluntary and involuntary cancellation.
     2  § 5436.  Security for cancellation or noncancellation.
     3  Chapter 55.  Construction Liens (Reserved)
     4  Chapter 56.  Land Records
     5     Subchapter A.  Scope and Definitions
     6  § 5601.  Scope of chapter.
     7  § 5602.  Definitions.
     8  § 5603.  Other definitions.
     9     Subchapter B.  Recording Officer
    10  § 5611.  Duty to maintain public land records.
    11  § 5612.  Method of recording and indexing.
    12  § 5613.  Duty to record.
    13  § 5614.  Recording.
    14  § 5615.  Duty to index.
    15  § 5616.  Recording officer's maps.
    16  § 5617.  Geographic index.
    17  § 5618.  General lien and other indexes.
    18  § 5619.  Fees of recording officer.
    19  § 5620.  Action to compel recording and indexing.
    20     The General Assembly of the Commonwealth of Pennsylvania
    21  hereby enacts as follows:
    22     Section 1.  Part II of Title 68 of the Pennsylvania
    23  Consolidated Statutes is amended by adding a subpart to read:
    24                              TITLE 68
    25                     REAL AND PERSONAL PROPERTY
    26                              PART II
    27                           REAL PROPERTY
    28                               * * *
    29                             SUBPART D
    30                           LAND TRANSFERS
    19890S0487B0511                  - 5 -

     1  Chapter
     2    51.  General Provisions
     3    52.  Conveyancing and Recording
     4    53.  Priorities, Marketable Record Title and Extinguishment
     5         of Claims
     6    54.  Liens and Encumbrances
     7    55.  Construction Liens (Reserved)
     8    56.  Land Records
     9                             CHAPTER 51
    10                         GENERAL PROVISIONS
    11  Subchapter
    12     A.  Short Title, Construction, Application and Subject Matter
    13         of Subpart
    14     B.  General Definitions
    15     C.  General Provisions
    16                            SUBCHAPTER A
    17             SHORT TITLE, CONSTRUCTION, APPLICATION AND
    18                     SUBJECT MATTER OF SUBPART
    19  Sec.
    20  5101.  Short title of subpart.
    21  5102.  Purposes and rules of construction.
    22  5103.  Supplementary general principles of law applicable.
    23  5104.  Construction against implied repeal.
    24  5105.  Purposes of definitions.
    25  § 5101.  Short title of subpart.
    26     This subpart shall be known and may be cited as the Uniform
    27  Simplification of Land Transfers Act.
    28  § 5102.  Purposes and rules of construction.
    29     This subpart shall be liberally construed and applied to
    30  promote its underlying purposes and policies, which are to:
    19890S0487B0511                  - 6 -

     1         (1)  Simplify, clarify and modernize the law governing
     2     land transfers.
     3         (2)  Further the security and certainty of land titles.
     4         (3)  Promote the interstate flow of funds for real estate
     5     transactions.
     6         (4)  Protect consumer buyers and borrowers against
     7     practices that may cause unreasonable risk and loss to them.
     8         (5)  Make uniform the law with respect to the subject of
     9     this subpart among states enacting it.
    10  § 5103.  Supplementary general principles of law applicable.
    11     The principles of law and equity, including the law relative
    12  to capacity to contract, principal and agent, laches, marshaling
    13  of assets, subrogation, estoppel, fraud, misrepresentation,
    14  duress, coercion, mistake, bankruptcy or other validating or
    15  invalidating cause supplement this subpart unless displaced by
    16  particular provisions of it.
    17  § 5104.  Construction against implied repeal.
    18     This subpart is intended as a unified coverage of its subject
    19  matter. No part may be construed to be impliedly repealed by
    20  subsequent legislation if that construction reasonably can be
    21  avoided.
    22  § 5105.  Purposes of definitions.
    23     All definitions in this subpart are solely for the purposes
    24  of giving effect to this subpart.
    25                            SUBCHAPTER B
    26                        GENERAL DEFINITIONS
    27  Sec.
    28  5111.  General definitions.
    29  5112.  Notice; knowledge; giving notice; receipt of notice.
    30  § 5111.  General definitions.
    19890S0487B0511                  - 7 -

     1     Subject to additional definitions contained in subsequent
     2  provisions of this subpart which are applicable to specific
     3  provisions of this subpart, the following words and phrases when
     4  used in this subpart shall have the meanings given to them in
     5  this section unless the context clearly indicates otherwise:
     6     "Construction security interest."  A security interest
     7  created by a security agreement that contains a legend on the
     8  first page clearly stating that it is a "Construction Security
     9  Agreement" and secures an obligation which the debtor incurred
    10  for the purpose of making an improvement of the real estate in
    11  which the security interest is given.
    12     "Conveyance."  A transfer of real estate other than by will
    13  or operation of law. A financing statement under Title 13
    14  (relating to commercial code) is not a conveyance.
    15     "Delivery."  In relation to a conveyance, an act manifesting
    16  an intent to make a present transfer of real estate.
    17     "Document."  A writing, plat or map. The term includes
    18  information in a form (such as electronic, mechanical or
    19  magnetic storage; microfilm; or electronic data transmission
    20  signals) which can be converted into legible writing, plat or
    21  map form by a machine or device.
    22     "General lien."  A lien that attaches to all of the lien
    23  debtor's real estate in the recording district at any time
    24  during the period of its effectiveness, including a lien that
    25  attaches to all of a taxpayer's real estate in the recording
    26  district as provided by law for unpaid taxes, fees, assessments
    27  or other charges, regardless of the relationship of any
    28  particular real estate to the tax.
    29     "Good faith."  Honesty in fact and the observance of
    30  reasonable standards of fair dealing in the conduct or
    19890S0487B0511                  - 8 -

     1  transaction involved.
     2     "Judicial proceeding."  An action at law or suit in equity
     3  and any other proceeding in which rights are judicially
     4  determined.
     5     "Law."  Includes statute law, case law, administrative
     6  actions and legislative acts of local governments.
     7     "Lien."  Does not include a security interest.
     8     "Organization."  A corporation, government, governmental
     9  subdivision or agency, business trust, estate, trust,
    10  partnership, association, joint venture or any other legal or
    11  commercial entity.
    12     "Party."  As distinguished from "third party," a party means
    13  a person who engages in a transaction or makes an agreement
    14  under this subpart.
    15     "Person."  Includes an individual or an organization.
    16     "Presumption" or "presumed."  That the party against whom the
    17  presumption is directed has the burden of going forward with
    18  evidence to rebut or meet the presumption, but the burden of
    19  proof, in the sense of the risk of nonpersuasion, does not shift
    20  to that party.
    21     "Pursuant to commitment."  An advance is made "pursuant to
    22  commitment" if the obligor has bound obligor to make it, whether
    23  or not a default or other event not within obligor's control has
    24  relieved or may relieve obligor from obligor's obligation.
    25     "Real estate."  Any estate or interest in, over or under
    26  land, including minerals, structures, fixtures and other things
    27  which by custom, usage or law pass with a conveyance of land
    28  though not described or mentioned in the contract of sale or
    29  instrument of conveyance; and, if appropriate to the context,
    30  the land in which the interest is claimed. "Real estate"
    19890S0487B0511                  - 9 -

     1  includes rents, the interest of a landlord or tenant and
     2  interests in a condominium unit.
     3     "Real estate tax lien."  A lien created by law on particular
     4  real estate of the taxpayer for the amount of unpaid taxes,
     5  fees, assessments or other charges.
     6     "To record."  To present to the recording officer for the
     7  place in which the land is situated a document which is not
     8  patently deficient with respect to the requirements for
     9  recording and which the officer accepts and enters in a daily
    10  log and notes thereon an identifying number, regardless of
    11  whether under applicable law the recording officer is directed
    12  to file the document or otherwise to maintain a record of it.
    13  However, a document is not recorded for purposes of imparting
    14  constructive notice until properly indexed. "Recorded" and
    15  "recording" have corresponding meanings.
    16     "Record chain of title."  The series of recorded documents
    17  creating or evidencing rights of the successive holders of title
    18  to real estate.
    19     "Record location."  The location (book and page, document
    20  number, electronic retrieval code or other specific place) of a
    21  document in the public records accessible in the same recording
    22  office where the document containing the reference to the
    23  location is found.
    24     "Recording office."  The office of the recorder of deeds or
    25  office of the commissioner of records.
    26     "Recording officer."  The recorder of deeds or commissioner
    27  of records.
    28     "Representative."  A person empowered to act for another. The
    29  term includes an agent, a government official, an officer of a
    30  corporation or association, a trustee and a personal
    19890S0487B0511                 - 10 -

     1  representative of a decedent.
     2     "Restriction."  A covenant, condition, easement or other
     3  limitation or affirmative obligation created by agreement, grant
     4  or implication affecting the use or enjoyment of, and intended
     5  to run with, the real estate. The term does not include a
     6  security interest or lien.
     7     "Security interest."  A consensual interest in real estate
     8  which secures payment or performance of an obligation. If a
     9  lease is intended as security to the lessor, the lessor's
    10  interest is a security interest. If a seller's retention of
    11  legal title to real estate after the buyer enters into
    12  possession is intended as security, the seller's interest is a
    13  security interest. Whether a transaction is intended as security
    14  is to be determined by the facts of each case; however:
    15         (1)  The inclusion in a lease of an option to purchase at
    16     a price not unreasonable in the circumstances at the time of
    17     contracting does not of itself indicate the lease is intended
    18     for security.
    19         (2)  Retention of the title to real estate by a seller
    20     under a contract right to retain title for not more than one
    21     year after the buyer enters into possession of the real
    22     estate is not a retention for security.
    23     "Signed."  Includes any symbol executed or adopted by a party
    24  with present intention to authenticate a writing.
    25     "Specific lien."  A lien that has attached to real estate
    26  specifically described in a recorded document evidencing the
    27  lien.
    28     "Title."  The right to an interest in real estate, including
    29  the interest of an owner, a lessee, a possessor, a lienor, a
    30  holder of a security interest and a beneficiary of a restriction
    19890S0487B0511                 - 11 -

     1  including an owner of an easement.
     2     "Utility easement."  A right-of-way easement, other than over
     3  the streets, highways, waters and other public ways and public
     4  places, for a railroad, subway, street railway or trolley bus or
     5  for the transmission of electricity, electronic communications
     6  such as telecommunications by telephone or telegraph for the
     7  public, or goods (including water, oil and gas) or for the
     8  provision of sewer or drainage service or similar utility-type
     9  uses.
    10     "Value."  A person gives "value" for rights if that person
    11  acquires the rights:
    12         (1)  pursuant to a commitment to extend credit or for the
    13     extention of credit;
    14         (2)  as security for, or in total or partial satisfaction
    15     of, a preexisting claim;
    16         (3)  under a preexisting contract; or
    17         (4)  generally, in return for any consideration
    18     sufficient to support a simple contract.
    19     "Written" or "writing."  Includes printing, typewriting or
    20  any other intentional reduction of language to tangible form or
    21  to a form (such as electronic, mechanical or magnetic storage;
    22  microfilm; or electronic data transmission signals) which can be
    23  converted into legible form by a machine or device.
    24  § 5112.  Notice; knowledge; giving notice; receipt of notice.
    25     (a)  Notice.--A person has "notice" of a fact if that person:
    26         (1)  has actual knowledge of it;
    27         (2)  has received a notice of it; or
    28         (3)  from all the facts and circumstances known to that
    29     person at the time in question, has reason to know it exists.
    30     (b)  Knowledge.--Except as provided in subsection (e), a
    19890S0487B0511                 - 12 -

     1  person has "knowledge" or "learns" of a fact or "knows" or
     2  "discovers" a fact only when that person has actual knowledge of
     3  it.
     4     (c)  Giving notice.--A person "notifies" or "gives" or
     5  "sends" notice to another, whether or not the other person
     6  actually comes to know of it, by taking steps reasonably
     7  required to inform the other in ordinary course, but, where this
     8  act specifies particular steps to be taken to notify, or give or
     9  send notice, those steps must be taken.
    10     (d)  Receipt of notice.--A person "receives" a notice, if
    11  otherwise valid, at the time it:
    12         (1)  comes to that person's attention; or
    13         (2)  is delivered at the place of business through which
    14     the person conducted the transaction with respect to which
    15     the notice is given or at any other place held out by that
    16     person as the place for receipt of the communication.
    17     (e)  Time notice or knowledge effective.--Notice or knowledge
    18  of a notice received by a person is effective for a particular
    19  transaction at the earlier of the time it comes to the attention
    20  of the individual conducting the transaction or the time it
    21  would have come to the individual's attention had the person
    22  maintained reasonable routines for communicating significant
    23  information to the individual conducting the transaction and
    24  there had been reasonable compliance with the routines.
    25  Reasonable compliance does not require an individual acting for
    26  the person to communicate information unless the communication
    27  is part of the individual's regular duties or the individual has
    28  reason to know of the transaction and that the transaction would
    29  be materially affected by the information.
    30                            SUBCHAPTER C
    19890S0487B0511                 - 13 -

     1                         GENERAL PROVISIONS
     2  Sec.
     3  5121.  Obligation of good faith.
     4  § 5121.  Obligation of good faith.
     5     Every contract or duty governed by this subpart imposes an
     6  obligation of good faith in its performance or enforcement.
     7                             CHAPTER 52
     8                     CONVEYANCING AND RECORDING
     9  Subchapter
    10     A.  Scope and Definitions
    11     B.  Conveyancing
    12     C.  Recording
    13                            SUBCHAPTER A
    14                       SCOPE AND DEFINITIONS
    15  Sec.
    16  5201.  Scope of chapter.
    17  5202.  Definitions.
    18  § 5201.  Scope of chapter.
    19     This chapter applies to title transactions concerning and
    20  possessory rights in real estate located in this Commonwealth.
    21  § 5202.  Definitions.
    22     Chapter 51 (relating to general provisions) contains general
    23  definitions and principles of construction and interpretation
    24  applicable throughout this chapter.
    25                            SUBCHAPTER B
    26                            CONVEYANCING
    27  Sec.
    28  5211.  Formal requisites of conveyance.
    29  5212.  Delivery.
    30  5213.  Transfer to organization or officer.
    19890S0487B0511                 - 14 -

     1  5214.  Conveyance in which grantor is also grantee; reservation
     2         or exception.
     3  5215.  Sale of real estate affected with future interest.
     4  § 5211.  Formal requisites of conveyance.
     5     (a)  General rule.--Except for a lease for one year or less,
     6  a conveyance must:
     7         (1)  Reasonably identify the grantor, the grantee and the
     8     real estate.
     9         (2)  Manifest an intent to make a present transfer of an
    10     interest in the real estate.
    11         (3)  Be in writing and signed by the grantor or the
    12     grantor's representative.
    13     (b)  Lease not exceeding one year.--A lease for one year or
    14  less must satisfy the requirements of subsection (a)(1) and (2).
    15     (c)  Acknowledgment, seal or witness not required.--A
    16  conveyance does not require an acknowledgment, seal or witness.
    17  For the form of an acknowledgment, see section 7 of the act of
    18  July 24, 1941 (P.L.490, No.188), known as the Uniform
    19  Acknowledgment Act.
    20  § 5212.  Delivery.
    21     As between the parties, a conveyance takes effect upon
    22  delivery. A claim based upon nondelivery or conditional,
    23  revocable or wrongful delivery is valid against a third party
    24  only as provided in the provisions on priority of claims
    25  (Subchapter B of Chapter 53).
    26  § 5213.  Transfer to organization or officer.
    27     A transfer may be made to, and title taken in, the name of an
    28  organization or of an office, in which case the title vests in
    29  the organization or the person from time to time holding the
    30  office. Unless otherwise provided by statute, a defunct or
    19890S0487B0511                 - 15 -

     1  dissolved organization continues in existence for the purpose of
     2  transferring real estate.
     3  § 5214.  Conveyance in which grantor is also grantee;
     4             reservation or exception.
     5     (a)  Conveyance in which grantor is also grantee.--A
     6  conveyance in which a grantor is also a grantee is as effective
     7  as one executed by a grantor not a grantee.
     8     (b)  Exception or reservation in favor of third party.--An
     9  exception or reservation of an interest in real estate may be
    10  made in favor of a person not a party to the conveyance or who
    11  has no other interest in the real estate.
    12  § 5215.  Sale of real estate affected with future interest.
    13     (a)  Appointment of trustee.--If real estate not held in
    14  trust is subject to a future interest or power of appointment
    15  outstanding or vested in a person who is not sui juris, who is
    16  not in being or whose identity is not ascertainable, a court of
    17  competent jurisdiction, upon the petition of a person having an
    18  interest therein, either present or future, vested or
    19  contingent, and after notice as required in subsection (b), may
    20  appoint a trustee and authorize the trustee to sell, grant a
    21  security interest in or lease the real estate, or a part of it,
    22  if the sale, grant of a security interest or lease appears to
    23  the court to be in the interest of the parties; and the sale,
    24  grant of a security interest or lease is effective against all
    25  the parties who are or may become interested in the real estate,
    26  whether living or unborn or whether their identities are
    27  ascertained or unascertained.
    28     (b)  Notice of petition and appointment of guardian.--Notice
    29  of the petition under subsection (a) must be given in a manner
    30  the court directs to all persons interested in the real estate,
    19890S0487B0511                 - 16 -

     1  and to all persons whose issue, not in being, may become
     2  interested in it. The court of its own motion shall appoint a
     3  guardian for the proceeding to represent all minors not
     4  otherwise represented, all persons whose identities are not
     5  ascertained and all persons not in being, who are or may become
     6  interested in the real estate.
     7     (c)  Powers of trustee and court.--A trustee appointed under
     8  subsection (a) must receive and hold, invest, distribute or
     9  apply the proceeds of a sale, grant of a security interest or
    10  lease to or for the benefit, and according to the respective
    11  rights and interests, of the persons who would have been
    12  entitled to the land if the sale, grant of a security interest
    13  or lease had not been made. Upon request of an interested party,
    14  the court may require the trustee to provide a bond. The court
    15  in which the petition is filed in accordance with this section
    16  has jurisdiction of all matters thereafter arising relative to
    17  the trust unless the administration of the trust is transferred
    18  to the jurisdiction of another court.
    19                            SUBCHAPTER C
    20                             RECORDING
    21  Sec.
    22  5231.  Formal requisites for recording.
    23  5232.  Indexing information and consequences of information.
    24  5233.  Separate indexing instructions.
    25  5234.  Effect of indexing information.
    26  5235.  Evidentiary effect of recorded signed document.
    27  5236.  Certified copy of record.
    28  5237.  Affidavits.
    29  5238.  Notice of intent to preserve interest.
    30  5239.  Incorporation of master form.
    19890S0487B0511                 - 17 -

     1  5240.  Memorandum of lease.
     2  5241.  Reference by record location.
     3  5242.  Reference to legal description.
     4  § 5231.  Formal requisites for recording.
     5     (a)  Eligibility.--To be eligible for recording a document
     6  must:
     7         (1)  Be legible or capable of being converted into
     8     legible form by a machine or device used in the recording
     9     office.
    10         (2)  Be capable of being copied or filed by the method
    11     used in the recording office.
    12         (3)  Be accompanied by the proper fee for recording
    13     (section 5619) and include or be accompanied by information,
    14     a notation, a stamp, a certificate or a fee that under other
    15     law is necessary to qualify the document for recording.
    16         (4)  Include information necessary to enable the document
    17     to be indexed as provided in section 5232 (relating to
    18     indexing information and consequences of information) or have
    19     appended separate indexing instructions (section 5233) also
    20     presented for recording containing this information.
    21         (5)  If a conveyance:
    22             (i)  Be signed and acknowledged by the party making
    23         the conveyance. In lieu of an acknowledgment, proof of
    24         execution and delivery may be supplied by the affidavit
    25         of a subscribing witness.
    26             (ii)  Contain substantially the following notice: "By
    27         law title may be lost unless a notice of intent to
    28         preserve as provided in the Uniform Simplification of
    29         Land Transfers Act (68 Pa.C.S. § 5101 et seq.) is
    30         recorded within 40 years."
    19890S0487B0511                 - 18 -

     1     (b)  Signature, acknowledgment, seal or witness.--No
     2  signature, acknowledgment, seal or witness is required for a
     3  document other than a conveyance to be eligible for recording.
     4  However, a document must be acknowledged to raise the
     5  presumption of section 5235(a) (relating to evidentiary effect
     6  of recorded signed document).
     7  § 5232.  Indexing information and consequences of information.
     8     (a)  Form and content.--Indexing information must be printed,
     9  typed or capable of being converted into legible form by a
    10  machine or device used in the recording office. The indexing
    11  information must include:
    12         (1)  The name of each grantor and each person against
    13     whom a lien or claim is asserted, including the name of the
    14     record owner of title to the interest affected thereby if
    15     other than the foregoing and if reasonably ascertainable.
    16         (2)  In the case of a conveyance executed by one person
    17     on behalf of another with or without consent of the other
    18     person, the name of the other person or, if that name is
    19     unknown or unascertained, the name of the person from whom
    20     the interest arises.
    21         (3)  The name of each person named in the document as
    22     grantee or of each person by whom a claim or lien is
    23     asserted.
    24         (4)  If the recording officer maintains a geographic
    25     index and the document affects specific real estate,
    26     information fixing the location sufficiently to enable the
    27     recording officer to determine where in the geographic index
    28     the document is to be indexed.
    29     (b)  Notice of intent to preserve interest.--For a notice of
    30  an intent to preserve an interest (section 5238), the indexing
    19890S0487B0511                 - 19 -

     1  information also must include the name of the record owner of
     2  the real estate.
     3     (c)  Utility easements recorded on maps.--Notwithstanding the
     4  provisions of subsections (a) and (b), the indexing information
     5  for a notice of intent to preserve an interest (section 5238)
     6  recorded to preserve utility easements, the general location of
     7  which is shown on a previously recorded map or a map included in
     8  the notice, need include only:
     9         (1)  The name of the person claimed to be the owner of
    10     the utility easement.
    11         (2)  The record location of the previously recorded map.
    12     (d)  Restrictions recorded on maps or plans.--Notwithstanding
    13  the provisions of subsections (a) and (b), the indexing
    14  information for a notice of intent to preserve an interest
    15  (section 5238) recorded to preserve rights to enforce
    16  restrictions established pursuant to a common scheme of
    17  development of land, including condominiums, if the entire
    18  development, whether existing, proposed or mixed at the time,
    19  has been the subject of a recorded map or plan or a recorded
    20  coordinated set of maps or plans, or a copy of which maps or
    21  plans have been included in the notice, need include only:
    22         (1)  The name of the person claimed to be the owner of
    23     the interest to be preserved.
    24         (2)  The record location of the previously recorded maps
    25     or plans.
    26     (e)  Master forms.--Indexing information for a master form
    27  may include the name of a person and a designation for the form.
    28     (f)  Indicating placement of indexing information.--Indexing
    29  information for a document to be entered in the general lien,
    30  utility easement notice, recorded maps or plans or master form
    19890S0487B0511                 - 20 -

     1  index (section 5618) must include an indication to that effect.
     2  § 5233.  Separate indexing instructions.
     3     Separate indexing instructions for the making of index
     4  entries in accordance with the provisions on duty to index
     5  (section 5615) must meet all the requirements of eligibility for
     6  recording (section 5231) and in addition must:
     7         (1)  Be printed, typed or capable of being converted into
     8     legible form by a machine or a device used in the recording
     9     office.
    10         (2)  Be signed by the person taking responsibility for
    11     the indexing information with that person's name printed or
    12     typed below the signature.
    13         (3)  Unless appended to the document to which they
    14     relate, state either of the following:
    15             (i)  The record location of that document.
    16             (ii)  The location of the document in the daily log
    17         if it has not yet been copied into the record.
    18  § 5234.  Effect of indexing information.
    19     (a)  Priorities.--With respect to priorities, the indexing
    20  information has the effect given in the provisions on the effect
    21  of indexing information on priorities (section 5312).
    22     (b)  Boundaries.--Even though the indexing information
    23  supplied contains precise details such as dimensions, courses
    24  and distances, the indexing information does not by itself
    25  establish the boundaries or create a presumption that the
    26  boundaries are as described in the indexing information. The
    27  indexing information shall be regarded only as a representation
    28  as to the general location of the real estate for purposes of
    29  proper indexing.
    30  § 5235.  Evidentiary effect of recorded signed document.
    19890S0487B0511                 - 21 -

     1     (a)  General rule.--A recorded signed and acknowledged
     2  document relating to title to real estate creates a presumption
     3  with respect to the title that:
     4         (1)  The document is genuine and was executed as the
     5     voluntary act of the person purporting to execute it.
     6         (2)  The person executing the document and the person on
     7     whose behalf it is executed are the persons they are
     8     purported to be and the person executing it was neither
     9     incompetent nor a minor at any relevant time.
    10         (3)  Delivery occurred notwithstanding a lapse of time
    11     between dates on the document and the date of recording.
    12         (4)  Any necessary consideration was given.
    13         (5)  The grantee, transferee or beneficiary of an
    14     interest created or claimed by the document acted in good
    15     faith at all relevant times up to and including the time of
    16     the recording.
    17         (6)  A person purporting to act as an agent, attorney-in-
    18     fact pursuant to a recorded power of attorney or authority,
    19     officer of an organization, or in a fiduciary or official
    20     capacity, held the position purported to be held, acted
    21     within the scope of authority, and in the case of an
    22     organization, the authorization satisfied all requirements of
    23     law; in the case of an agent, the principal was neither
    24     incompetent nor a minor at any relevant time and the agency
    25     was not revoked.
    26         (7)  If the document purports to be executed pursuant to
    27     or to be a final determination in a judicial or
    28     administrative proceeding, or to be executed pursuant to a
    29     power of eminent domain, the court, official body or
    30     condemnor was acting within its jurisdiction and all steps
    19890S0487B0511                 - 22 -

     1     required for the execution of the title document were taken.
     2         (8)  Persons named in, signing or acknowledging the
     3     document and persons named in, signing or acknowledging
     4     another related document in a chain of title are identical,
     5     if the persons appear in those conveyances under identical
     6     names or under variants thereof, including inclusion,
     7     exclusion or use of:
     8             (i)  commonly recognized abbreviations, contractions,
     9         initials or colloquial or other equivalents;
    10             (ii)  first or middle names or initials;
    11             (iii)  simple transpositions that produce
    12         substantially similar pronunciations;
    13             (iv)  articles or prepositions in names or titles;
    14             (v)  descriptions of entities as corporations,
    15         companies or abbreviations or contractions of either; or
    16             (vi)  name suffixes, such as Senior or Junior;
    17     unless other information appears of record indicating that
    18     they are different persons.
    19         (9)  All other requirements for its execution, delivery
    20     and validity have been satisfied.
    21         (10)  Any other presumption existing under law.
    22     (b)  Presumption unaffected by certain matters.--The
    23  presumptions stated in subsection (a) arise even if the document
    24  purports only to release a claim or convey any right, title or
    25  interest of the person executing it or the person on whose
    26  behalf it is executed.
    27     (c)  Effect of inconsistent presumptions.--If presumptions
    28  created by subsection (a) are inconsistent, the presumption
    29  applies that is founded upon weightier considerations of policy.
    30  If considerations of policy are of equal weight, neither
    19890S0487B0511                 - 23 -

     1  presumption applies.
     2     (d)  Unacknowledged documents.--Unacknowledged documents
     3  shall not be deprived of any presumptions in their favor
     4  presently existing in the law.
     5  § 5236.  Certified copy of record.
     6     A copy of a recorded document certified by the recording
     7  officer is presumed to be a correct copy of the recorded
     8  document and of the original document. The certified copy may
     9  not be excluded from evidence under the best evidence rule, even
    10  if the recorded document is not signed, witnessed or
    11  acknowledged and the recorded or the original document is
    12  available.
    13  § 5237.  Affidavits.
    14     (a)  Evidentiary effect.--An affidavit, stating facts
    15  relating to the matters named in subsection (b), which may
    16  affect the title to real estate in this Commonwealth, made by
    17  any person having personal knowledge of the facts and competent
    18  to testify concerning them in open court, may be recorded (even
    19  though not acknowledged) in the recording office in the county
    20  in which the real estate is situated. When so recorded, the
    21  affidavit, or a certified copy thereof, shall be admissible
    22  evidence of the facts therein stated, insofar as those facts
    23  affect title to real estate, if a member of the Bar of the
    24  Supreme Court of Pennsylvania signs a certification, appended
    25  thereto, that the member relied upon the affidavit in passing on
    26  the title to the real estate.
    27     (b)  Matters covered by affidavit.--The affidavit may relate
    28  to the following matters: age, sex, birth, death, capacity,
    29  relationship, family history, heirship, names, identity of
    30  parties, marital status, possession or adverse possession,
    19890S0487B0511                 - 24 -

     1  residence, service in the armed forces, conflicts or ambiguities
     2  in descriptions of land in recorded instruments and the
     3  happening of any condition or event which may terminate an
     4  estate or interest.
     5     (c)  Requirements of affidavit and recording.--Every
     6  affidavit shall include the name, age and residence of the
     7  affiant, a description of the real estate title to which may be
     8  affected by facts stated in the affidavit, facts showing that
     9  the affiant has personal knowledge of the facts stated and the
    10  name of the person appearing by the record to be the owner of
    11  the real estate at the time the affidavit is recorded. The
    12  official taking the affidavit shall certify that the affiant is
    13  personally known to the official or satisfactorily proven to be
    14  the person named as affiant. The recording officer shall index
    15  the affidavit in the name of the record owner in both grantor
    16  and grantee indexes and, if possible, shall note the recording
    17  thereof in the margin of the record of any instrument referred
    18  to in the affidavit.
    19  § 5238.  Notice of intent to preserve interest.
    20     (a)  Effect of recording.--A recorded notice of intent to
    21  preserve an interest, in the form provided in subsection (b),
    22  tolls the passage of time on a recorded interest as provided in
    23  the provisions on effect upon marketable record title of
    24  recording notice of intent to preserve an interest (section
    25  5335) and in the provisions for preserving possibilities of
    26  reverter, rights of entry and resulting trusts (section 5358).
    27     (b)  Form and content.--The notice must:
    28         (1)  State the name and address, if known, of the person
    29     claimed to be the owner of the interest to be preserved or a
    30     definition of the class when filing is made pursuant to
    19890S0487B0511                 - 25 -

     1     section 5335(3) (relating to effect upon marketable record
     2     title of recording notice of intent to preserve an interest).
     3         (2)  Contain a reference by record location to a recorded
     4     document creating, reserving or evidencing the interest to be
     5     preserved or a judgment confirming the interest.
     6         (3)  Be signed by or on behalf of the person claimed to
     7     be the owner of the interest.
     8         (4)  State whether the person signing claims to be the
     9     owner or to be acting on behalf of the owner.
    10     (c)  Inclusion of map.--A notice recorded to preserve rights
    11  established pursuant to a common scheme of development, a
    12  utility easement or other restrictions claimed in the real
    13  estate of another may include a map incorporating the claim.
    14     (d)  Reference to recorded map.--A notice recorded to
    15  preserve rights established pursuant to a common scheme of
    16  development, a utility easement or other restrictions which
    17  refers to a previously recorded map that identifies the
    18  properties claimed to be affected is sufficient to show the area
    19  to be affected.
    20     (e)  New interest not created.--The recording of a notice of
    21  intent to preserve an interest does not create a new interest.
    22  § 5239.  Incorporation of master form.
    23     A recorded master form, or a numbered paragraph thereof, may
    24  be incorporated by reference in a recorded document by referring
    25  to the form by its record location or to the form and the
    26  paragraph by the record location of the form and the number of
    27  the paragraph to be incorporated. The reference has the same
    28  effect as if the master form or the numbered paragraph were
    29  reproduced in full in the record at the place where the
    30  reference to the form or paragraph is made. This section does
    19890S0487B0511                 - 26 -

     1  not affect contractual relations of parties to a title
     2  transaction.
     3  § 5240.  Memorandum of lease.
     4     (a)  Effect of recording.--The recording of a memorandum of
     5  lease substantially complying with subsection (b) has the same
     6  effect as if the lease were reproduced in full in the record.
     7     (b)  Form and content.--A memorandum of lease is a document
     8  signed by the lessor and lessee and containing a reference to an
     9  unrecorded lease, sublease or agreement to lease or sublease and
    10  supplying at least the following information:
    11         (1)  The name of the lessor.
    12         (2)  The name of the lessee.
    13         (3)  Any addresses set forth therein as those of the
    14     parties.
    15         (4)  A reference to the date thereof.
    16         (5)  A description of the real estate.
    17         (6)  The commencement and termination dates of the term
    18     of the lease if fixed, and if not fixed, the method by which
    19     the dates are to be fixed.
    20         (7)  A statement of the conditions upon which any right
    21     of the lessee to extension or renewal of the lease or to the
    22     purchase or refusal of the real estate or a part of it may be
    23     exercised.
    24  § 5241.  Reference by record location.
    25     (a)  General rule.--Except as provided in subsection (b), a
    26  reference in a recorded document to another recorded document by
    27  its record location has the same effect as if the document were
    28  reproduced in full in the record where reference to it is made.
    29     (b)  Limitation.--Except as provided in the provisions on
    30  incorporation of master form (section 5239), the reference does
    19890S0487B0511                 - 27 -

     1  not have the effect provided in subsection (a) unless it is in
     2  language manifesting an intent that the real estate is to be
     3  subject to, controlled by or otherwise affected by one or more
     4  terms of the reference document. A reference to one term
     5  incorporates only that term.
     6  § 5242.  Reference to legal description.
     7     After a description made by means of a plat, metes and bounds
     8  or otherwise sufficient to determine the physical location of
     9  the real estate has been recorded, a reference by record
    10  location to it is a sufficient description of the real estate.
    11                             CHAPTER 53
    12              PRIORITIES, MARKETABLE RECORD TITLE AND
    13                      EXTINGUISHMENT OF CLAIMS
    14  Subchapter
    15     A.  Scope and Definitions
    16     B.  Priority of Claims
    17     C.  Marketable Record Title
    18     D.  Curative Provisions and Limitations
    19                            SUBCHAPTER A
    20                       SCOPE AND DEFINITIONS
    21  Sec.
    22  5301.  Scope of chapter.
    23  5302.  Definitions.
    24  § 5301.  Scope of chapter.
    25     This chapter applies to title transactions concerning, and
    26  possessory rights in, real estate located in this Commonwealth.
    27  § 5302.  Definitions.
    28     (a)  Applicability.--Chapter 51 (relating to general
    29  provisions) contains general definitions and principles of
    30  construction and interpretation applicable throughout this
    19890S0487B0511                 - 28 -

     1  chapter. Section 5315 (relating to effect of knowledge) contains
     2  a definition of "knowledge" applicable to Subchapter B (relating
     3  to priority of claims). Section 5331 (relating to definitions)
     4  contains definitions applicable to Subchapter C (relating to
     5  marketable record title).
     6     (b)  Meaning of "related to".--For purposes of giving meaning
     7  to the expressions "individual related to" and "person related
     8  to," a person is related to:
     9         (1)  An individual if that person is any of the
    10     following:
    11             (i)  An organization directly or indirectly
    12         controlled by the individual, spouse of the individual or
    13         a relative by blood or marriage who shares the same
    14         residence with the individual.
    15             (ii)  The spouse of the individual.
    16             (iii)  A sibling or the spouse of a sibling of the
    17         individual.
    18             (iv)  An ancestor or descendant of the individual or
    19         of spouse of the individual.
    20             (v)  Any other relative by blood or by marriage of
    21         the individual or spouse of the individual if the
    22         relative shares the same residence with the individual.
    23         (2)  An organization if that person is any of the
    24     following:
    25             (i)  Any other organization controlling, controlled
    26         by or under common control with the organization.
    27             (ii)  A person related to the person controlling the
    28         organization.
    29                            SUBCHAPTER B
    30                         PRIORITY OF CLAIMS
    19890S0487B0511                 - 29 -

     1  Sec.
     2  5311.  Effect of conveyance.
     3  5312.  Title acquired by purchaser for value who has recorded.
     4  5313.  Additional rules concerning priorities.
     5  5314.  Claims relating back to time before recording.
     6  5315.  Effect of knowledge.
     7  5316.  Lapse of effect of recording option or contract for
     8         conveyance.
     9  5317.  Effect of indefinite reference in recorded instrument.
    10  5318.  Effect of restrictions on power of disposition.
    11  5319.  Priority of advances under a recorded security interest.
    12  5320.  General liens.
    13  5321.  Priority of specific liens.
    14  5322.  Real estate tax and other liens.
    15  5323.  Priority of judgment liens.
    16  § 5311.  Effect of conveyance.
    17     A conveyance is effective to transfer all interests in the
    18  described land and interests appurtenant thereto which the
    19  grantor had or had actual authority to convey, but:
    20         (1)  A transferee of a limited interest acquires rights
    21     only to the extent of the interest conveyed.
    22         (2)  Except as against a subsequent purchaser for value
    23     who has recorded (section 5312), a conveyance and its
    24     recording is subject in an appropriate case to being set
    25     aside, canceled, rescinded, reformed or subjected to a
    26     constructive or resulting trust or to any other remedy
    27     provided by law.
    28  § 5312.  Title acquired by purchaser for value who has recorded.
    29     (a)  General rule.--Except as provided by this chapter, in
    30  addition to the interests a purchaser acquires under section
    19890S0487B0511                 - 30 -

     1  5311 (relating to effect of conveyance), a purchaser for value
     2  who has recorded a conveyance also acquires the real estate free
     3  of any subsisting adverse claim, whether or not the transferor
     4  had actual authority to convey, unless the adverse claim is any
     5  of the following:
     6         (1)  Created or evidenced by a document recorded before
     7     the conveyance to the purchaser is recorded.
     8         (2)  A use or occupancy inconsistent with the record
     9     title to the extent the use or occupancy would be revealed by
    10     reasonable inspection or inquiry.
    11         (3)  One of which the purchaser had knowledge at the time
    12     purchaser's interest was created as provided in section 5315
    13     (relating to effect of knowledge).
    14         (4)  Created by law in favor of one spouse, as spouse, in
    15     real estate in the name of the other spouse.
    16         (5)  Based on a transfer that is ineffective because of
    17     any of the following:
    18             (i)  Forgery, alteration, unauthorized signature or
    19         lack of signature of a document.
    20             (ii)  Infancy, duress or illegality in a transaction
    21         if, under other law, the transaction is regarded as void
    22         or voidable.
    23             (iii)  Fraud in the execution of a document.
    24         (6)  Of the United States unless by Federal law the claim
    25     of the United States has been made subject to the recording
    26     or priority laws of this Commonwealth.
    27         (7)  Created by a transaction occurring before recording
    28     of the purchaser's interest but recorded thereafter and
    29     relating back as provided in section 5314 (relating to claims
    30     relating back to time before recording) for certain claims
    19890S0487B0511                 - 31 -

     1     effective despite later recording.
     2         (8)  Based on an advance made under a recorded security
     3     interest securing future advances as provided in section 5319
     4     (relating to priority of advances under a recorded security
     5     interest).
     6         (9)  Based on a general lien as provided in section 5320
     7     (relating to general liens).
     8         (10)  Based on real estate or other tax lien as provided
     9     in section 5322 (relating to real estate tax and other
    10     liens).
    11     (b)  Time recording effective.--The recording of a document
    12  imparts constructive notice only from the time indexing
    13  information is accepted by the recording officer sufficient to
    14  permit indexing and is properly indexed:
    15         (1)  in the record chain of title;
    16         (2)  in the correct geographical index unless the
    17     document evidences a general lien or the document is recorded
    18     in compliance with section 5232(c) (relating to indexing
    19     information and consequences of information) to preserve
    20     utility easements;
    21         (3)  in the general lien index if the document evidences
    22     a general lien;
    23         (4)  in the utility easement notice index if the document
    24     is recorded in compliance with section 5232(c) to preserve
    25     utility easements; and
    26         (5)  in a manner which would allow a later searcher to
    27     find the document without consulting a document relating to
    28     an interest not yet transferred of record to the person
    29     indicated in the document or which has already been
    30     transferred of record to another, unless the document was
    19890S0487B0511                 - 32 -

     1     recorded after the creation of a system of geographic
     2     indexing by parcels (section 5602 "geographic index system"
     3     (1))
     4  § 5313.  Additional rules concerning priorities.
     5     (a)  Marketable title and time limitations.--Notwithstanding
     6  sections 5311 (relating to effect of conveyance) and 5312
     7  (relating to title acquired by purchaser for value who has
     8  recorded), the priority of a claim under this chapter is subject
     9  to:
    10         (1)  The provisions on marketable record title
    11     (Subchapter C) or of any marketable record title statute it
    12     replaces.
    13         (2)  Extinguishment or unenforceability of the claim
    14     because of passage of time under Subchapter D (relating to
    15     curative provisions and limitations) or any other applicable
    16     provision of this or other law providing time limitations.
    17     (b)  Adverse claims.--Each of the provisions of this chapter
    18  prescribing when a purchaser is subject to an adverse claim
    19  states an independent reason for the survival of the adverse
    20  claim so that, even if an adverse claimant is precluded by one
    21  provision from asserting the claimant's claim, another provision
    22  may entitle claimant to assert claimant's claim but only to the
    23  extent provided in this chapter.
    24     (c)  Form of conveyance.--The provisions of this chapter
    25  stating priorities for "conveyances," "purchaser for value" and
    26  like terms apply even if the conveyance to the claimant or any
    27  earlier conveyance of the real estate is in the form of a
    28  quitclaim deed or other deed purporting to convey only the
    29  right, title and interest of the transferor.
    30     (d)  Power to transfer free of interest.--Any interest that
    19890S0487B0511                 - 33 -

     1  has been recorded may nevertheless be cut off by exercise of a
     2  power to transfer free of the interest which is contained in a
     3  document to which the interest is subject or is contained in
     4  other sections of this subpart or in any other applicable law.
     5     (e)  Determination of priority.--If other priority rules
     6  stated in this chapter do not determine the priority of two or
     7  more claims among themselves, priority is determined in the
     8  order of recording.
     9  § 5314.  Claims relating back to time before recording.
    10     Under the following provisions the priority of a claim
    11  relates back to a time specified that is in fact before the time
    12  it was recorded or filed, as appropriate:
    13         (1)  Provisions giving a specific lien priority as of the
    14     time of recording a general lien (section 5321).
    15         (2)  Provisions giving a judgment lien priority as of the
    16     time of recording a security agreement or perfecting an
    17     attachment securing the same debt (section 5323).
    18         (3)  Provisions giving a priority from the time a notice
    19     of pending action is filed (section 5431).
    20         (4)  Provisions of law giving a construction lien
    21     priority as of the date of visible commencement of
    22     construction or the recording of a notice of commencement of
    23     construction.
    24  § 5315.  Effect of knowledge.
    25     (a)  General rule.--Subject to the provisions on lapse of
    26  effect of recording of an option or a contract for conveyance
    27  (section 5316), a purchaser takes subject to an adverse claim of
    28  which purchaser has knowledge or concerning which purchaser is
    29  charged with knowledge under subsection (b).
    30     (b)  Knowledge of agent.--For the purposes of this
    19890S0487B0511                 - 34 -

     1  subchapter, a purchaser is charged with knowledge of a matter or
     2  a document from the time the matter or document comes to the
     3  attention of purchaser's counsel or agent, whether or not an
     4  employee, while acting in the scope of employment for the
     5  purchaser in the transaction with respect to which a question of
     6  purchaser's knowledge arises. A real estate broker who also acts
     7  on behalf of a seller or who receives a commission from a seller
     8  or a seller's agent is not an agent of the purchaser for the
     9  purposes of this subsection.
    10  § 5316.  Lapse of effect of recording option or contract for
    11             conveyance.
    12     If six months have elapsed after the recorded expiration date
    13  (or, if there is no recorded expiration date, the date of
    14  recording) of a recorded option or right of refusal or after the
    15  date for performance of a recorded contract to convey (or, if
    16  there is no recorded date for performance, the date of
    17  recording), or of any recorded agreement extending the
    18  expiration or performance date, a purchaser for value who has
    19  recorded purchaser's conveyance takes free of any claim based
    20  upon the recorded option or right of refusal or contract, except
    21  as preserved by the recording of a notice of pending proceedings
    22  (section 5431).
    23  § 5317.  Effect of indefinite reference in recorded instrument.
    24     (a)  General rule.--Unless a reference in a document is a
    25  reference to another document by its record location, a person
    26  is not charged by reason of the reference with knowledge of the
    27  document or an adverse claim founded thereon, and the document
    28  is not in the record chain of title solely by reason of the
    29  reference to it.
    30     (b)  Examples of indefinite references.--Examples of
    19890S0487B0511                 - 35 -

     1  references that are not to a record location and are too
     2  indefinite to charge a person with knowledge of an interest or
     3  to bring the document within the record chain of title are:
     4         (1)  "Subject to the terms of a deed dated July 4, 1976,
     5     from A to B."
     6         (2)  "Subject to a mortgage from A to B."
     7         (3)  "Subject to existing encumbrances."
     8         (4)  "Subject to easements of record."
     9         (5)  "Subject to mortgages of record."
    10         (6)  "Excepting so much of the described premises as I
    11     have heretofore conveyed."
    12     (c)  Effect of indefinite references.--This section does not
    13  prevent an indefinite reference from constituting a waiver or
    14  exception or from being taken into account in determining the
    15  existence of:
    16         (1)  A contractual obligation or condition between the
    17     immediate parties to the document in which the reference
    18     occurs.
    19         (2)  Any negation of a warranty of title.
    20     (d)  Recording memorandum of document.--This section does not
    21  limit the effect of recording a memorandum of lease (section
    22  5239) or memorandum of any other document, the recording of
    23  which is permitted by law.
    24  § 5318.  Effect of restrictions on power of disposition.
    25     (a)  General rule.--Except as provided in subsection (b), if
    26  a person who has a power of disposition conferred upon that
    27  person by an instrument, this subpart or other law makes a
    28  conveyance purporting to exercise the power, the title of the
    29  purchaser is not subject to attack because of any of the
    30  following infirmities which are not disclosed by a recorded
    19890S0487B0511                 - 36 -

     1  document:
     2         (1)  The state of facts necessary to authorize the
     3     exercise does not exist.
     4         (2)  Notices required for exercise of the power were not
     5     sent or received.
     6         (3)  The power otherwise was exercised improperly or
     7     irregularly.
     8     (b)  Limitation on rights of purchaser.--A purchaser may not
     9  claim any of the benefits of subsection (a) if:
    10         (1)  the purchaser is the person exercising the power of
    11     disposition or is related to that person (section 5302(b));
    12     or
    13         (2)  at the time of the transfer to the purchaser, the
    14     purchaser had knowledge of any infirmity stated in subsection
    15     (a).
    16     (c)  Right to recover damages unaffected.--This section does
    17  not affect any right of a person injured by any unauthorized,
    18  improper or irregular exercise of the power of disposition to
    19  recover damages from the person exercising the power.
    20  § 5319.  Priority of advances under a recorded security
    21             interest.
    22     Notwithstanding sections 5311 (relating to effect of
    23  conveyance) and 5312 (relating to title acquired by purchaser
    24  for value who has recorded), but subject to the law on priority
    25  of construction liens, a recorded security interest takes
    26  priority as of the date of its recording as to advances or
    27  obligations thereafter made or incurred under the security
    28  agreement:
    29         (1)  If made pursuant to a commitment entered into before
    30     the secured party had knowledge of an intervening interest,
    19890S0487B0511                 - 37 -

     1     to the extent of the outstanding advances or obligations that
     2     do not exceed the maximum amount stated in the record.
     3         (2)  If not made pursuant to a commitment made before the
     4     secured party had knowledge of an intervening interest, to
     5     the extent of advances or obligations outstanding when the
     6     secured party obtained knowledge of the intervening interest
     7     and that do not exceed the maximum amount stated in the
     8     record.
     9         (3)  If made or incurred for the reasonable protection of
    10     the security interest in the real estate, such as payment for
    11     real property taxes, hazard insurance premiums or maintenance
    12     charges imposed under a condominium declaration or a
    13     restrictive covenant, whether or not the advances or
    14     obligations exceed the maximum amount stated in the
    15     instrument and although the secured creditor had knowledge of
    16     the intervening interest.
    17         (4)  If made under a construction security interest to
    18     enable completion of the agreed improvement of the real
    19     estate, whether or not the advances or obligations exceed the
    20     secured maximum amount stated in the instrument or the
    21     secured creditor had knowledge of the intervening interest.
    22  § 5320.  General liens.
    23     A purchaser for value who has recorded takes free of a
    24  general lien unless either of the following circumstances
    25  exists:
    26         (1)  Before the recording of the purchaser's interest the
    27     lien has been recorded as a specific lien.
    28         (2)  The purchaser's interest was created five years or
    29     less after the general lien was most recently recorded or, if
    30     the United States is the claimant, the minimum time permitted
    19890S0487B0511                 - 38 -

     1     under Federal law if five years is shorter than that minimum.
     2     The period may be extended one or more times by rerecording
     3     the general lien before the expiration of the period,
     4     referring to the record location of its last prior recording.
     5     Recording or rerecording does not extend a general lien
     6     beyond the time it expires under other law.
     7  § 5321.  Priority of specific liens.
     8     If a notice of a specific lien is recorded to convert a
     9  general lien to a specific lien (section 5412) during the time a
    10  purchaser who has recorded is subject to the general lien under
    11  section 5320 (relating to general liens), the priority of the
    12  specific lien dates from the time of recording the information
    13  required to make the general lien attach. The priority of other
    14  specific liens dates from recording. Recording or rerecording an
    15  instrument does not extend a specific lien beyond the time it
    16  expires under other law. By virtue of this subpart, no new rule
    17  of divestiture is created for specific liens.
    18  § 5322.  Real estate tax and other liens.
    19     Nothing in this subpart is intended to affect the priority of
    20  real estate tax liens or municipal liens or of liens to secure
    21  the payment of obligations imposed pursuant to a statute
    22  relating to a common scheme of development of land, including
    23  condominiums.
    24  § 5323.  Priority of judgment liens.
    25     (a)  General rule.--If a secured creditor reduces a claim to
    26  judgment before foreclosing, the judgment lien takes priority as
    27  a general or specific lien on the real estate, unless the
    28  judgment specifies that the obligation was secured by real
    29  estate under a recorded security agreement identified in the
    30  judgment by reference to the record location and an appropriate
    19890S0487B0511                 - 39 -

     1  notation to that effect is made on each docket entry of the
     2  judgment in which case the lien of the judgment relates back to
     3  and takes the priority of the security interest.
     4     (b)  Prior attachment of real estate.--If a judgment was
     5  preceded by an attachment of real estate, it relates back to and
     6  takes the priority of the attachment, if the judgment so
     7  provides.
     8                            SUBCHAPTER C
     9                      MARKETABLE RECORD TITLE
    10  Sec.
    11  5331.  Definitions.
    12  5332.  Marketable record title.
    13  5333.  Matters to which marketable record title is subject.
    14  5334.  Interests extinguished by marketable record title.
    15  5335.  Effect upon marketable record title of recording notice
    16         of intent to preserve an interest.
    17  5336.  Interests not barred by subchapter.
    18  5337.  Effect of contractual liability as to interests
    19         antedating root of title.
    20  5338.  Limitations of actions.
    21  5339.  Abandonment in fact.
    22  § 5331.  Definitions.
    23     The following words and phrases when used in this subchapter
    24  shall have the meanings given to them in this section unless the
    25  context clearly indicates otherwise:
    26     "Marketable record title."  A title of record, as indicated
    27  in section 5332 (relating to marketable record title), which
    28  operates to extinguish interests and claims existing before the
    29  effective date of the root of title, as stated in section 5334
    30  (relating to interests extinguished by marketable record title).
    19890S0487B0511                 - 40 -

     1     "Person dealing with real estate."  Includes a purchaser of
     2  real estate, the taker of a security interest, a levying or
     3  attaching creditor, a real estate contract vendee or another
     4  person seeking to acquire an estate or interest therein or
     5  impose a lien thereon.
     6     "Records."  Includes probate and other official records
     7  available in the recording office, offices of the register of
     8  wills and prothonotary and any other place or places where
     9  records affecting title may be found.
    10     "Root of title."  A conveyance or other title transaction,
    11  whether or not it is a nullity, in the record chain of title of
    12  a person purporting to create or containing language sufficient
    13  to transfer the interest claimed by that person upon which that
    14  person relied as a basis for the marketability of the title and
    15  which was the most recent to be recorded as of a date 40 years
    16  before the time marketability is being determined. The effective
    17  date of the "root of title" is the date on which it is recorded.
    18     "Title transaction."  Any transaction purporting to affect
    19  title to real estate, including, but not limited to, title by
    20  will or descent, title by tax deed or by trustee's, referee's,
    21  guardian's, executor's, administrator's, master's or sheriff's
    22  deed or decree of a court as well as warranty deed, quitclaim
    23  deed or security interest.
    24  § 5332.  Marketable record title.
    25     A person who has an unbroken chain of title of record to real
    26  estate for 40 years or more has a marketable record title to the
    27  real estate subject only to the matters stated in section 5333
    28  (relating to matters to which marketable record title is
    29  subject). A person has an unbroken chain of title when the
    30  official public records disclose a conveyance or other title
    19890S0487B0511                 - 41 -

     1  transaction of record not less than 40 years at the time the
     2  marketability is to be determined and the conveyance or other
     3  title transaction, whether or not it was void or voidable,
     4  purports to create the interest in or contains language
     5  sufficient to transfer the interest to either:
     6         (1)  the person claiming the interest; or
     7         (2)  some other person from whom, by one or more
     8     conveyances or other title transactions of record, the
     9     purported interest has become vested in the person claiming
    10     the interest with nothing appearing of record, in either
    11     case, purporting to divest the claimant of the purported
    12     interest.
    13  § 5333.  Matters to which marketable record title is subject.
    14     The marketable record title is subject to:
    15         (1)  All interests and defects which are apparent in the
    16     root of title or inherent in the other muniments of which the
    17     chain of record title subsequent to the root of title is
    18     formed. However, general reference in a muniment to
    19     easements, use restrictions, encumbrances or other interests
    20     created prior to the root of title is not sufficient to
    21     preserve them (section 5317) unless a reference by record
    22     location is made therein to a recorded title transaction
    23     which creates the easement, use, restriction, encumbrance or
    24     other interests.
    25         (2)  All interests preserved by the recording of proper
    26     notice of intent to preserve an interest (section 5335).
    27         (3)  An interest arising out of a title transaction
    28     recorded after the root of title, but recording does not
    29     revive an interest previously extinguished (section 5334).
    30         (4)  The exceptions stated in section 5336 (relating to
    19890S0487B0511                 - 42 -

     1     interests not barred by subchapter).
     2  § 5334.  Interests extinguished by marketable record title.
     3     Subject to the matters stated in section 5333 (relating to
     4  matters to which marketable record title is subject), the
     5  marketable record title is held by its owner and is taken by a
     6  person dealing with the real estate free and clear of all
     7  interests, claims or charges whatsoever, the existence of which
     8  depends upon an act, transaction, event or omission that
     9  occurred before the effective date of the root of title. All
    10  interests, claims or charges, however denominated, whether legal
    11  or equitable, present or future, whether the interests, claims
    12  or charges are asserted by a person who is or is not under a
    13  disability, whether the person is within or without this
    14  Commonwealth or whether the person is an individual or an
    15  organization or is private or governmental, are void.
    16  § 5335.  Effect upon marketable record title of recording notice
    17             of intent to preserve an interest.
    18     A person claiming an interest in real estate may preserve and
    19  keep the interest, if any, effective as to any and all rights
    20  accruing as a result of the recordation of the interest by
    21  recording, during the 40-year period immediately following the
    22  effective date of the root of title of the person who would
    23  otherwise obtain marketable record title, a notice of intent to
    24  preserve the interest (section 5238). No disability or lack of
    25  knowledge of any kind on the part of anyone suspends the running
    26  of the 40-year period. The notice may be recorded by the
    27  claimant or by another person acting on behalf of a claimant who
    28  is:
    29         (1)  under a disability;
    30         (2)  unable to assert a claim on claimant's own behalf;
    19890S0487B0511                 - 43 -

     1     or
     2         (3)  one of a class, but whose identity cannot be
     3     established or is uncertain at the time of recording the
     4     notice of intent to preserve the interest.
     5  § 5336.  Interests not barred by subchapter.
     6     This subchapter does not bar:
     7         (1)  A restriction, the existence of which is clearly
     8     observable by physical evidence of its use.
     9         (2)  Interest of a person using or occupying the real
    10     estate whose use or occupancy is inconsistent with the
    11     marketable record title to the extent that the use or
    12     occupancy would have been revealed by reasonable inspection
    13     or inquiry.
    14         (3)  Rights of a person in whose name the real estate or
    15     an interest therein was carried on the real property tax
    16     rolls within three years of the time when marketability is to
    17     be determined if the relevant tax rolls are accessible to the
    18     public at the time marketability is to be determined.
    19         (4)  A claim of the United States not subjected by
    20     Federal law to the recording requirements of this
    21     Commonwealth and which has not terminated under Federal law.
    22         (5)  Mineral interests, including oil, gas, sulphur, coal
    23     and all other mineral interests of any kind, whether similar
    24     or dissimilar to those minerals specifically named.
    25  § 5337.  Effect of contractual liability as to interests
    26             antedating root of title.
    27     This subchapter does not free a person from contractual
    28  liability with respect to an interest antedating that person's
    29  root of title to which the person has agreed to be subject by
    30  reason of the provision of a deed or contract to which the
    19890S0487B0511                 - 44 -

     1  person is a party, but a person under contractual liability has
     2  power to create a marketable record title in a transferee not
     3  otherwise subjected to the interest antedating root of title by
     4  the provisions of this subchapter.
     5  § 5338.  Limitations of actions.
     6     This subchapter shall not be construed to extend the period
     7  for the bringing of an action or for the doing of any other
     8  required act under a statute of limitations.
     9  § 5339.  Abandonment in fact.
    10     This subchapter does not preclude a court from determining
    11  that a restriction has been abandoned in fact, whether before or
    12  after a notice of intent to preserve the restriction has been
    13  recorded.
    14                            SUBCHAPTER D
    15                CURATIVE PROVISIONS AND LIMITATIONS
    16  Sec.
    17  5351.  Minor defects cured by two-year lapse.
    18  5352.  Six-year period of limitation on certain proceedings.
    19  5353.  Accrual of claim.
    20  5354.  Periods of limitation on proceedings to recover or obtain
    21         possession.
    22  5355.  Extent of adverse possession.
    23  5356.  Evidence of adverse possession.
    24  5357.  Expiration of recorded security interests; ten years
    25         after maturity; extension.
    26  5358.  Extinguishing possibility of reverter and right of entry
    27         for condition broken.
    28  5359.  Extinguishment of claims by limitations.
    29  5360.  Effect upon statute of limitations.
    30  § 5351.  Minor defects cured by two-year lapse.
    19890S0487B0511                 - 45 -

     1     (a)  Effect of recording.--If a document purporting to
     2  transfer or affect, or to authorize action affecting, title to
     3  real estate has been signed by the owner of the real estate, or
     4  by a person acting in a representative, fiduciary or official
     5  capacity, and has been accepted for record, rightfully or
     6  wrongfully, and properly indexed, after the lapse of two years
     7  after the acceptance, the document and the record thereof are
     8  effective, notwithstanding any one or more of the defects or
     9  omissions described in subsection (b), for all purposes as
    10  though the document or the record thereof had not been subject
    11  to the defects or omissions, unless a proceeding is commenced on
    12  account of the defects or omissions and a notice of the pending
    13  proceeding is recorded within the two-year period.
    14     (b)  Defects and omissions.--This section applies to the
    15  following defects and omissions under prior law or this subpart:
    16         (1)  A failure or omission of a document to comply with a
    17     requirement of law relating to execution, acknowledgment or
    18     recording, including a requirement relating to a corporate or
    19     individual seal or to witnesses, attestation, proof of
    20     execution, certificate, or recording of acknowledgment, proof
    21     of notarial authority, time and dates of execution or
    22     acknowledgment, certificate of recording, recitals of
    23     consideration, indications of residence or addresses, or
    24     statements of payment of tax or documentary stamps.
    25         (2)  A failure or omission of an instrument signed by an
    26     attorney-in-fact, trustee, personal representative, executor,
    27     administrator, guardian, corporate officer, sheriff, official
    28     of any governmental unit or public agency, authority or
    29     corporation, or another person acting in a representative,
    30     fiduciary or official capacity, to state or indicate that the
    19890S0487B0511                 - 46 -

     1     signature, acknowledgment or another act is on behalf of the
     2     owner or is in the signer's representative, fiduciary or
     3     official capacity.
     4         (3)  In the case of a transfer by an executor, personal
     5     representative or administrator of the real estate of a
     6     decedent, by a trustee of the real estate held in a
     7     testamentary trust or by a guardian of a ward's real estate,
     8     a defect, irregularity or omission in the probate or other
     9     judicial proceedings if the conveyance has been confirmed by
    10     order of the court or administrative body having jurisdiction
    11     over the estate.
    12         (4)  In the case of a sale of real estate on execution or
    13     pursuant to the terms of an order or decree of a court or on
    14     foreclosure of a tax lien or after a forfeiture, a defect,
    15     irregularity or omission in the proceedings pertaining
    16     thereto if the sale or forfeiture has been confirmed by the
    17     court or administrative body having jurisdiction.
    18  § 5352.  Six-year period of limitation on certain proceedings.
    19     (a)  General rule.--If a document purports to affect title to
    20  real estate and has been of record for six years and the
    21  document purports to be executed by a personal representative,
    22  executor, administrator, guardian, testamentary trustee,
    23  sheriff, master, commissioner, referee, receiver, liquidator,
    24  trustee in bankruptcy or other representative, no action or
    25  proceeding may be commenced to invalidate or strike from the
    26  record the document based upon a claim of lack of jurisdiction,
    27  lack of appointment, defect in the appointment or qualification
    28  of the signer or lack of approval of the transfer,
    29  notwithstanding a defect in or absence of record of steps in the
    30  probate, judicial or administrative proceeding for the approval
    19890S0487B0511                 - 47 -

     1  and the confirmation of the action evidenced by the document.
     2     (b)  Breach of restrictive covenant.--An action or proceeding
     3  for breach of a covenant restricting the use of land, including
     4  a proceeding to compel the removal, change or relocation of
     5  structures by reason of a violation of the covenant, must be
     6  commenced within six years after either:
     7         (1)  the date of the first violation; or
     8         (2)  the date of the commencement of construction of the
     9     violating structure;
    10  whichever is earlier, if the violation is apparent from the
    11  location, size or advertised purpose of the structure.
    12  § 5353.  Accrual of claim.
    13     (a)  Wrongful dispossession.--If a cause of action is for
    14  wrongful dispossession, it accrues on the date of dispossession
    15  except as provided in this section.
    16     (b)  Failure to surrender possession.--If the cause of action
    17  is against a tenant for failure to surrender possession upon the
    18  termination of a lease, it accrues at the latest of the
    19  following:
    20         (1)  The termination of the tenancy.
    21         (2)  The end of the last period for which rent was paid
    22     and accepted.
    23         (3)  The expiration of a period of occupancy to which the
    24     tenant is entitled by law.
    25     (c)  Future rights.--Except as provided by subsection (b), if
    26  the interest claimed is a right of entry, remainder, executory
    27  interest or possibility of reverter based upon a document
    28  affecting title, the cause of action accrues on the date the
    29  right of enforcement first arose.
    30     (d)  Breach of condition or covenant.--If the interest
    19890S0487B0511                 - 48 -

     1  claimed arises by reason of breach of a condition subsequent or
     2  a covenant restricting the use of real estate, the cause of
     3  action accrues on the date the condition or covenant is first
     4  broken. No new cause of action arises by reason of continuing or
     5  subsequent breaches, unless prior breaches have been cured.
     6  § 5354.  Periods of limitation on proceedings to recover or
     7             obtain possession.
     8     (a)  General rule.--A proceeding to obtain or recover
     9  possession of real estate or to establish title thereto must be
    10  commenced within the following periods after the cause of action
    11  accrues:
    12         (1)  Six years (subject to the provisions on tolling
    13     (section 5357)) if the proceeding is brought by a person
    14     other than the Commonwealth or the United States and is
    15     against a person in adverse possession and that person or one
    16     through whom that person claims:
    17             (i)  has been and is in possession under a recorded
    18         conveyance (including a quitclaim deed or other deed
    19         which purports to convey only the right, title and
    20         interest, if any, of the grantor) or under a probated
    21         will; and
    22             (ii)  has paid taxes before delinquency in four of
    23         the six years preceding the commencement of the
    24         proceeding.
    25         (2)  Twenty years if the proceeding is brought to obtain
    26     or recover possession of real estate or establish title
    27     thereto for the Commonwealth or the United States except as
    28     provided by law.
    29         (3)  Ten years in all other cases.
    30     (b)  Adverse possession against government unit.--This
    19890S0487B0511                 - 49 -

     1  subpart shall not be construed to change the law of adverse
     2  possession relating to the lands of the United States, the
     3  Commonwealth and its political subdivisions and their agencies
     4  and instrumentalities.
     5  § 5355.  Extent of adverse possession.
     6     Adverse possession extends to the area actually possessed. In
     7  addition, adverse possession of a significant portion of a
     8  parcel of real estate extends to the whole parcel if the
     9  following criteria are met:
    10         (1)  The whole parcel is recognized in the community as a
    11     defined parcel under single ownership.
    12         (2)  Possession is under a recorded conveyance (including
    13     a quitclaim deed or other deed which purports to convey only
    14     any right, title and interest of the grantor) or under a
    15     probated will.
    16         (3)  The conveyance or will purports to give title to the
    17     whole parcel.
    18         (4)  The possessor or those through whom the possessor
    19     claims have paid taxes on the whole parcel before delinquency
    20     in four of the six preceding years.
    21         (5)  No other person is in possession adverse to the
    22     claimant of any other portion of the whole parcel.
    23  § 5356.  Evidence of adverse possession.
    24     (a)  Recorded document.--If a person is in possession of real
    25  estate under a recorded document, the record of the document and
    26  the fact of present possession creates a presumption of adverse
    27  possession from the time of recording of the document.
    28     (b)  Payment of taxes.--If the real estate is not in the
    29  adverse possession of another, payment before delinquency by a
    30  person or one through whom that person claims of all taxes
    19890S0487B0511                 - 50 -

     1  assessed against the property for a period of time creates a
     2  presumption of adverse possession for that period of time.
     3     (c)  Cotenants.--Possession of real estate by a cotenant for
     4  a period of 20 years during which another cotenant was not in
     5  possession and did not share in the rents or profits of the real
     6  estate creates a presumption of possession adverse to the claim
     7  of the other cotenant.
     8     (d)  Exceptions.--The presumptions in this section do not
     9  apply in the case of one tenant by the entireties against the
    10  other or in the case of other persons with a right of possession
    11  under a written agreement.
    12  § 5357.  Expiration of recorded security interests; ten years
    13             after maturity; extension.
    14     (a)  General rule.--If the final maturity date of a secured
    15  indebtedness or the last date fixed for the performance of a
    16  secured obligation is ascertainable from the record of the
    17  security interest, the security interest expires ten years after
    18  that date. If it appears from the record of the security
    19  interest that the final maturity date or last date fixed for
    20  performance is variable, depending upon facts not in that
    21  record, the security interest expires 40 years from the date it
    22  was most recently recorded. In all other cases the security
    23  interest expires ten years from the date of recording. Unless a
    24  will specifies some other date or time, a security interest
    25  created or imposed by will is considered due, for the purpose of
    26  this section, on the date the will is admitted to probate. A
    27  secured obligation or performance which is stated in a security
    28  interest to continue throughout the lives of any persons is
    29  considered to mature, for the purpose of this section, on the
    30  death of the last survivor of the persons. Expiration as
    19890S0487B0511                 - 51 -

     1  provided in this subsection does not occur if an instrument
     2  which expressly extends the final maturity or time for
     3  performance is recorded before the expiration of the security
     4  interest; if the final maturity date or last date fixed for
     5  performance is ascertainable from the record of the supplemental
     6  instrument, the security interest expires ten years from that
     7  date; if that date is not so ascertainable, the security
     8  interest expires ten years after the date the agreement or
     9  instrument is recorded.
    10     (b)  Effect of expiration.--Expiration of a security interest
    11  under this section is equivalent for all purposes to a proper
    12  discharge of record, and execution or recording of a release or
    13  discharge is not necessary to terminate or evidence the
    14  termination of an interest which has so expired. However, a
    15  release or discharge may be recorded at any time.
    16     (c)  Inapplicability to prior interests.--This section does
    17  not apply to any security interest created prior to the
    18  effective date of this subpart.
    19  § 5358.  Extinguishing possibility of reverter and right of
    20             entry for condition broken.
    21     A possibility of reverter, a right of entry for condition
    22  broken (power of termination) or a resulting trust that
    23  restricts a fee simple estate in land is extinguished by the
    24  passage of 40 years after it or a notice of intent to preserve
    25  the interest was most recently recorded.
    26  § 5359.  Extinguishment of claims by limitations.
    27     Limitations prescribed by this subpart may be asserted by way
    28  of defense or affirmatively and may be used in an action or
    29  proceeding as a source of or as a means to establish title or a
    30  right of possession or as an aid or explanation of title in an
    19890S0487B0511                 - 52 -

     1  appropriate proceeding.
     2  § 5360.  Effect upon statute of limitations.
     3     This subchapter shall not be construed to extend the period
     4  for the bringing of an action or for the doing of any other
     5  required act under a statute of limitations except as stated in
     6  section 5353 (relating to accrual of claim).
     7                             CHAPTER 54
     8                       LIENS AND ENCUMBRANCES
     9  Subchapter
    10     A.  Scope and Definitions
    11     B.  Liens
    12     C.  Notice of Pending Proceedings
    13                            SUBCHAPTER A
    14                       SCOPE AND DEFINITIONS
    15  Sec.
    16  5401.  Scope and applicability of subpart to liens and
    17         encumbrances.
    18  5402.  Definitions.
    19  § 5401.  Scope and applicability of subpart to liens and
    20             encumbrances.
    21     (a)  General rule.--A lien or encumbrance created or
    22  recognized by this subpart or by any other law is subject to the
    23  provisions on conveyancing and recording (Chapter 52) and the
    24  provisions on priorities, marketable record title and
    25  extinguishment of claims (Chapter 53). Except as provided by the
    26  act of August 24, 1963 (P.L.1175, No.497), known as the
    27  Mechanics' Lien Law of 1963, it is also subject to this chapter.
    28     (b)  Expiration.--A lien or encumbrance created or recognized
    29  by this subpart or by any other law expires and becomes
    30  unenforceable against the real estate at the times specified in
    19890S0487B0511                 - 53 -

     1  Chapter 53 (relating to priorities, marketable record title and
     2  extinguishment of claims) on limitations and marketable record
     3  title unless the law creating or recognizing the lien has
     4  specified a shorter time.
     5     (c)  Foreclosure.--A lien created or recognized by law other
     6  than this subpart may be foreclosed under the procedures for
     7  foreclosure of a real estate security interest if the court so
     8  orders unless other law provides an exclusive method of
     9  foreclosure or collection of the obligation secured.
    10  § 5402.  Definitions.
    11     Chapter 51 (relating to general provisions) contains general
    12  definitions and principles of construction and interpretation
    13  applicable to this chapter.
    14                            SUBCHAPTER B
    15                               LIENS
    16  Sec.
    17  5411.  Proceedings in aid of establishing specific lien.
    18  5412.  Changing general lien into specific lien.
    19  5413.  Discharge of invalid lien.
    20  5414.  Federal tax and judgment liens.
    21  § 5411.  Proceedings in aid of establishing specific lien.
    22     A lien creditor is entitled to aid from courts of appropriate
    23  jurisdiction by discovery or by other appropriate proceedings to
    24  discover and identify particular parcels of real estate against
    25  which the lien may be asserted or to identify the judgment
    26  debtor or person against whom the lien may be asserted.
    27  § 5412.  Changing general lien into specific lien.
    28     A person having a general lien may make it also a specific
    29  lien by recording a notice of specific lien identifying the date
    30  of recording and record location of the general lien on which it
    19890S0487B0511                 - 54 -

     1  is based, the names and addresses of the lien claimant and the
     2  debtor, the date of recording and record location of any notice
     3  of pending proceeding to which the lien relates and a
     4  description of the real estate on which the specific lien is
     5  claimed.
     6  § 5413.  Discharge of invalid lien.
     7     The owner of real estate against which a lien has been
     8  recorded may give written notice to the lien claimant to
     9  discharge the lien of record on the ground that the lien is
    10  improperly recorded or that the obligation is satisfied but not
    11  discharged of record. If the lien is a mortgage and is not
    12  discharged of record within 45 days or if it is a judgment and
    13  is not discharged of record within 30 days, the owner may
    14  initiate a proceeding to discharge the lien. Upon proof that the
    15  lien is invalid or that the lien has been discharged, an order
    16  shall be issued canceling the notice of lien and, unless the
    17  lien claimant justifies the failure to discharge the lien, also
    18  awarding to the owner the damages suffered or $250, whichever is
    19  the greater, together with reasonable attorney fees incurred by
    20  the owner.
    21  § 5414.  Federal tax and judgment liens.
    22     (a)  Tax liens.--Notices of liens upon real estate for taxes
    23  payable to the United States and certificates and notices
    24  affecting the liens shall be filed in the office of the
    25  prothonotary of the county in which the real estate subject to a
    26  Federal tax lien is situated and indexed against the name of
    27  each tax debtor.
    28     (b)  Judgment liens.--A lien based upon a judgment of a court
    29  of the United States shall be filed and indexed in conformity
    30  with the rules and requirements of statutes relating to liens
    19890S0487B0511                 - 55 -

     1  based upon judgments of courts of this Commonwealth.
     2                            SUBCHAPTER C
     3                   NOTICE OF PENDING PROCEEDINGS
     4  Sec.
     5  5431.  Rights of purchasers against pending proceedings.
     6  5432.  Recording of notice of pending proceedings.
     7  5433.  Effect of amendment of pleadings.
     8  5434.  Form and contents of notice.
     9  5435.  Voluntary and involuntary cancellation.
    10  5436.  Security for cancellation or noncancellation.
    11  § 5431.  Rights of purchasers against pending proceedings.
    12     (a)  Prior to notice.--A pending proceeding, including a
    13  proceeding pending in a court of the United States, affecting
    14  the use or enjoyment of or title to real estate does not affect
    15  the title or rights acquired by a purchaser of record without
    16  knowledge thereof before notice of the pendency of the
    17  proceeding is filed in the office of the prothonotary of the
    18  county in which the real estate is situated.
    19     (b)  Subsequent to notice.--If a notice of a pending
    20  proceeding has been filed, a final determination in favor of the
    21  party to an action is effective as of the date of filing the
    22  notice if the final determination is rendered within five years
    23  after the filing of the notice; otherwise, the effective date of
    24  the final determination against purchasers is the date the
    25  determination is filed. The period may be extended one or more
    26  times by filing before its expiration a notice of pending
    27  proceeding referring by docket location to the notice whose
    28  effect is to be extended. In this case the period expires five
    29  years after the filing of the new notice.
    30  § 5432.  Recording of notice of pending proceedings.
    19890S0487B0511                 - 56 -

     1     After filing the complaint or an agreement for an amicable
     2  action in a proceeding in which the relief sought, if granted,
     3  will affect the use or enjoyment of or title to particular real
     4  estate, the person claiming relief may file a notice of pending
     5  proceedings in the form and with the content provided in section
     6  5434 (relating to form and contents of notice). A judgment for
     7  money is not an interest in real estate within the meaning of
     8  this section.
     9  § 5433.  Effect of amendment of pleadings.
    10     If the pleadings in a proceeding as to which a notice of
    11  pending proceeding has been filed are amended to affect
    12  additional or different real estate, modify the claim asserted
    13  or change the parties whose interest in real estate will be
    14  affected, an amended notice of pending proceeding may be filed
    15  to affect the different real estate and interests in the amended
    16  pleadings under section 5431 (relating to rights of purchasers
    17  against pending proceedings). The amended notice as to added
    18  real estate or modified claim is effective only from the date of
    19  its filing. As to a reduction in the real estate affected,
    20  diminution of claim or parties dropped from the proceeding, the
    21  amended notice is effective from the date of the original
    22  filing.
    23  § 5434.  Form and contents of notice.
    24     A notice of pending proceeding must be signed by the party or
    25  the party's attorney and state the names of all parties, a
    26  description of the real estate to be affected, an identification
    27  of the interest claimed, the court before which the proceedings
    28  are pending and the file or docket number, if available, or, if
    29  not available, the date the proceeding was filed.
    30  § 5435.  Voluntary and involuntary cancellation.
    19890S0487B0511                 - 57 -

     1     (a)  General rule.--A notice of pending proceeding may be
     2  canceled by filing a written cancellation signed by or on behalf
     3  of the party in whose name the notice was filed or the party's
     4  successor in interest and containing a reference by docket
     5  location to the notice being canceled.
     6     (b)  Order of court.--The court, upon any notice it directs,
     7  shall enter an order canceling the notice of pending proceeding
     8  if it finds any of the following:
     9         (1)  The proceeding will not affect the use or enjoyment
    10     of or title to real estate.
    11         (2)  Service of process in the proceeding has not been
    12     made timely as to a necessary party.
    13         (3)  The proceeding is not being prosecuted both in good
    14     faith and with due diligence.
    15         (4)  The plaintiff's claim is barred under the provisions
    16     on marketable record title (Subchapter C of Chapter 53) or by
    17     limitations or laches.
    18         (5)  The proceeding has been finally determined adversely
    19     to the party filing the notice of pending proceeding.
    20         (6)  Other good cause has been shown.
    21  § 5436.  Security for cancellation or noncancellation.
    22     (a)  Cancellation.--If the court determines that adequate
    23  relief can be afforded to the party filing the notice of pending
    24  proceeding by a deposit of money or the giving of a bond or
    25  other undertaking in a sum deemed adequate by the court, the
    26  court may condition its order of cancellation upon the giving of
    27  security or the giving of a bond or other undertaking.
    28     (b)  Noncancellation.--If the court finds that cancellation
    29  may not be granted due to disputed issues of fact or law or that
    30  noncancellation will cause substantial damage if the act is not
    19890S0487B0511                 - 58 -

     1  ultimately successful, the court may require a deposit of money
     2  or the giving of a bond or other undertaking to indemnify
     3  against the damage in a sum found adequate by the court.
     4                             CHAPTER 55
     5                         CONSTRUCTION LIENS
     6                             (Reserved)
     7                             CHAPTER 56
     8                            LAND RECORDS
     9  Subchapter
    10     A.  Scope and Definitions
    11     B.  Recording Officer
    12                            SUBCHAPTER A
    13                       SCOPE AND DEFINITIONS
    14  Sec.
    15  5601.  Scope of chapter.
    16  5602.  Definitions.
    17  5603.  Other definitions.
    18  § 5601.  Scope of chapter.
    19     This chapter applies to land records and the duties of
    20  recording officers.
    21  § 5602.  Definitions.
    22     The following words and phrases when used in this subchapter
    23  shall have the meanings given to them in this section unless the
    24  context clearly indicates otherwise:
    25     "Geographic index system."  An index system in which the
    26  recording district is divided into appropriate geographic index
    27  areas. An index system is a geographic index system if it has:
    28         (1)  a separate index for each parcel in the recording
    29     district;
    30         (2)  a separate index for each block and entries for each
    19890S0487B0511                 - 59 -

     1     parcel in the block are arranged under the block
     2     identification; or
     3         (3)  any other geographic or survey system that
     4     reasonably separates the documents entered from time to time
     5     concerning parcels in the recording district into manageable
     6     geographic portions of the recording district.
     7     "Index."  A system that enables a person to find documents
     8  using appropriate entry information.
     9     "Land records."  Documents and indexes maintained by the
    10  recording officer as provided in this subchapter.
    11  § 5603.  Other definitions.
    12     Chapter 51 (relating to general provisions) contains general
    13  definitions and principles of construction applicable throughout
    14  this chapter.
    15                            SUBCHAPTER B
    16                         RECORDING OFFICER
    17  Sec.
    18  5611.  Duty to maintain public land records.
    19  5612.  Method of recording and indexing.
    20  5613.  Duty to record.
    21  5614.  Recording.
    22  5615.  Duty to index.
    23  5616.  Recording officer's maps.
    24  5617.  Geographic index.
    25  5618.  General lien and other indexes.
    26  5619.  Fees of recording officer.
    27  5620.  Action to compel recording and indexing.
    28  § 5611.  Duty to maintain public land records.
    29     (a)  General rule.--The recording officer shall maintain land
    30  records and indexes as provided in this subchapter and allow
    19890S0487B0511                 - 60 -

     1  public access to the records and indexes during business hours.
     2     (b)  Certified copies.--The recording officer shall provide a
     3  certified copy of a recorded document to any person who tenders
     4  the proper fee.
     5  § 5612.  Method of recording and indexing.
     6     The recording officer shall accept, record and index
     7  documents in accordance with this subpart.
     8  § 5613.  Duty to record.
     9     The recording officer must accept without delay, record and
    10  index promptly each document presented in compliance with
    11  section 5231 (relating to formal requisites for recording).
    12  § 5614.  Recording.
    13     (a)  General rule.--The recording officer shall indicate upon
    14  or append to each document accepted for recording the date, hour
    15  and minute of acceptance, make an entry thereof in a daily log
    16  and note an identifying number on the document. The time of
    17  recording is the date and time of acceptance.
    18     (b)  Daily log.--The recording officer shall maintain a daily
    19  log in which the date, hour and minute of acceptance and the
    20  identifying number of each document accepted for recording shall
    21  be entered immediately upon acceptance and in the order in which
    22  they are received. The recording officer may note at each log
    23  entry the indexing information supplied in the document or in
    24  separate indexing instructions (section 5233) appended to the
    25  document.
    26     (c)  Permanent records.--The recording officer promptly shall
    27  copy or file accepted documents into permanent records by hand,
    28  typewriting, photocopying, xerographic copying, microfilming or
    29  microfiching or by placing the information in the documents in
    30  an electronic, electromechanical or other storage system.
    19890S0487B0511                 - 61 -

     1     (d)  Matter not recorded.--The recording officer shall not
     2  copy into the record any part of a document if the part is
     3  preceded by the words "From Previously Recorded Master Form - Do
     4  Not Record" if the part of the document preceding those words:
     5         (1)  is entitled to be recorded under section 5231
     6     (relating to formal requisites for recording); and
     7         (2)  contains a reference by record location to a master
     8     form or to a numbered paragraph of a master form.
     9  § 5615.  Duty to index.
    10     (a)  General rule.--Promptly after the acceptance of a
    11  document, the recording officer shall make the index entries
    12  provided in this chapter. Each entry shall contain:
    13         (1)  The record location of the document.
    14         (2)  The date, hour and minute of recording.
    15         (3)  The names and identifying information given in the
    16     indexing information of the document.
    17     (b)  Reliance on information supplied.--The recording officer
    18  may rely on the indexing information supplied.
    19     (c)  Additional index entries.--Upon recording separate
    20  indexing instructions (section 5233) not appended to the
    21  document to which they relate, the recording officer shall on
    22  request, or may on the recording officer's own initiative, make
    23  additional index entries for a document. Each additional entry
    24  in the index not made as a part of the initial indexing process
    25  shall indicate the date, hour and minute it was made and the
    26  reason it was made (initiative of the recording officer or
    27  receipt of indexing instructions not appended to the document to
    28  which they relate).
    29     (d)  Return of document recorded.--If a document is recorded
    30  by copying, upon completion of recording and indexing, the
    19890S0487B0511                 - 62 -

     1  document shall be returned to the person who presented it, or a
     2  person designated by the presenter, with an indication that it
     3  has been recorded and indexed and a statement of its record
     4  location and the geographic location under which it has been
     5  indexed.
     6  § 5616.  Recording officer's maps.
     7     Each recording officer shall maintain a series of maps that
     8  indicate location in a manner enabling public users to find the
     9  proper location or locations in each geographic index, if any,
    10  for every land parcel. If practicable, the recording officer
    11  shall use duplicates of existing tax assessment maps of all or
    12  part of the county.
    13  § 5617.  Geographic index.
    14     (a)  Duty to keep.--The recording officer shall keep a
    15  geographic index if required by law. If practicable, the index
    16  shall be based upon the system of parcels used for tax
    17  assessment.
    18     (b)  Arrangement of index.--If more than one parcel is
    19  included in a geographic index, the index shall be arranged to
    20  permit convenient search by name.
    21     (c)  Entries.--The recording officer shall cause one or more
    22  entries to be made in the geographic index in accordance with
    23  the information given in the indexing information of each
    24  document accepted for recording.
    25  § 5618.  General lien and other indexes.
    26     (a)  General lien index.--The prothonotary shall keep for the
    27  county a general lien index which shall be arranged to permit
    28  convenient search by name.
    29     (b)  Other indexes.--The recording officer shall keep for the
    30  county a utility easement notice index, a master forms index and
    19890S0487B0511                 - 63 -

     1  an index of recorded maps and plans.
     2     (c)  Following indexing instructions.--The recording officer
     3  shall cause an entry to be made in the index for each document
     4  that has indexing instructions containing, or has appended
     5  separate indexing instructions containing, an indication that it
     6  should be indexed in one of these indexes.
     7  § 5619.  Fees of recording officer.
     8     The recording officer shall charge fees as determined by law.
     9  § 5620.  Action to compel recording and indexing.
    10     A recording officer who fails to record and index a document
    11  properly or to comply with indexing instructions under section
    12  5615 (relating to duty to index) is subject to a judicial
    13  proceeding to compel recording and indexing. A notice of pending
    14  proceeding may be filed in connection with the proceeding.
    15  Section 2.  Notice of intent to preserve interest.
    16     (a)  Preservation of claims.--A person who claims an interest
    17  which would be extinguished by the provisions on priority of
    18  claims (68 Pa.C.S. Ch. 53 Subch. B) may preserve the interest by
    19  recording a notice of intent to preserve the interest within
    20  three years after the effective date of this subpart.
    21     (b)  Marketable title and future interests.--A person who
    22  claims an interest that would be extinguished under the
    23  provisions on marketable record title (68 Pa.C.S. Ch. 53 Subch.
    24  C) or the provisions on extinguishing possibilities of reverter,
    25  right of entry and resulting trusts (68 Pa.C.S. § 5358) by the
    26  coming into effect of this act may preserve the interest by
    27  recording a notice of intent to preserve the interest no later
    28  than 40 years after the effective date of this act but in all
    29  events within three months after the recording of the first
    30  conveyance, which occurs at least three years after the
    19890S0487B0511                 - 64 -

     1  effective date of this act. The notice has the effect provided
     2  in 68 Pa.C.S. §§ 5335 (relating to effect upon marketable record
     3  title of recording notice of intent to preserve an interest) and
     4  5358 (relating to extinguishing possibility of reverter and
     5  right of entry for condition broken).
     6  Section 3.  Limitation of actions.
     7     If a period of limitation and time of accrual specified in
     8  this act would result in prohibiting commencement of a judicial
     9  proceeding before the effective date of this act or within three
    10  years after its effective date, the period during which the
    11  proceeding may be brought is extended until three years have
    12  expired after the effective date, but only if the period would
    13  not have run under the prior law until after the effective date.
    14  In all other cases the time of accrual and the period of
    15  limitation is that specified in this act.
    16  Section 4.  Delay in geographic indexing.
    17     The provisions of 68 Pa.C.S. §§ 5312(b)(2) (relating to title
    18  acquired by purchaser for value who has recorded), 5616
    19  (relating to recording officer's maps) and 5617 (relating to
    20  geographic index) shall take effect on the later of three years
    21  after the effective date of this act or the date on which
    22  geographic indexing is otherwise authorized or required by law.
    23  Until those provisions take effect, the recording officer shall
    24  maintain geographic indexes only to the extent otherwise
    25  provided by law and index all documents as otherwise provided by
    26  law, except as otherwise provided by 68 Pa.C.S. § 5618 (relating
    27  to general lien and other indexes).
    28  Section 5.  Notice of enactment.
    29     (a)  General rule.--To accomplish the broadest and most
    30  effective notice of the enactment of this act and any pertinent
    19890S0487B0511                 - 65 -

     1  comments constituting part of the legislative history of this
     2  act:
     3         (1)  This act and the comments shall be published by the
     4     Department of Community Affairs in the Pennsylvania Bulletin
     5     immediately following the date of final enactment, and once
     6     each year thereafter a summary notice thereof shall be
     7     published therein for three years on or about the date of
     8     final enactment.
     9         (2)  The recording officer in each county shall maintain
    10     in the office, and make available to the public during
    11     regular business hours, a copy of this act and all amendments
    12     and comments thereto and shall post and maintain in a
    13     conspicuous place in the office a notice of the availability
    14     of this act and all amendments thereto for public
    15     examination.
    16         (3)  The recording officer may adopt such other
    17     reasonable measures and media of publicity to bring about
    18     public awareness of this act.
    19     (b)  Effect of noncompliance.--The failure of the recording
    20  officer to comply with the provisions of subsection (a) shall
    21  not render this act ineffective.
    22  Section 6.  Severability.
    23     (a)  General rule.--The provisions of this act are severable.
    24  If any provision of this act or its application to any person or
    25  circumstance is held invalid, the invalidity shall not affect
    26  other provisions or applications of this act which can be given
    27  effect without the invalid provision or application.
    28     (b)  Effect of invalidity of prior interests.--Should any
    29  provision of this act be declared invalid as to any interest
    30  created prior to the effective date of this act, this act shall
    19890S0487B0511                 - 66 -

     1  nevertheless be applicable to interests created after the
     2  effective date of this act.
     3  Section 7.  Repeals.
     4     (a)  Absolute repeals.--The following acts and parts of acts
     5  are repealed:
     6     Sections 2 and 8 of the act of May 28, 1715 (1 Sm.L.94, Ch.
     7  208), entitled "An Act for acknowledging and recording of
     8  deeds."
     9     Section 1 of the act of March 21, 1772 (1 Sm.L. 389, Ch.
    10  669), entitled "An Act for prevention of frauds and perjuries."
    11     Section 2 of the act of March 18, 1775 (1 Sm.L. 422, Ch.
    12  704), entitled "A Supplement to the act, entitled An Act for
    13  acknowledging and recording of deeds."
    14     Act of May 31, 1901 (P.L.352, No.217), entitled "An act to
    15  provide for the recording, in certain instances, of titles to
    16  real estate acquired by twenty-one years' adverse possession."
    17     Act of May 12, 1925 (P.L.613, No.327), entitled "An act
    18  regulating the recording of certain deeds, conveyances, and
    19  other instruments of writing, and fixing the effect thereof as
    20  to subsequent purchasers, mortgagees, and judgment creditors."
    21     (b)  Inconsistent repeals.--The following acts and parts of
    22  acts are repealed insofar as they are inconsistent with this
    23  act:
    24     Section 3 of the act of May 28, 1715 (1 Sm.L. 94, Ch. 208),
    25  entitled "An Act for acknowledging and recording of deeds."
    26     Section 1 of the act of March 18, 1775 (1 Sm.L. 422, Ch.
    27  704), entitled "A Supplement to the act, entitled An Act for
    28  acknowledging and recording of deeds."
    29     Act of April 15, 1828 (P.L.490, No.212), entitled "A further
    30  Supplement to the act entitled 'An act for acknowledging and
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     1  recording of deeds.'"
     2     Section 3 of the act of May 22, 1895 (P.L.113, No.87),
     3  entitled "An act to provide for the making, acknowledging and
     4  recording of deeds, conveyances and contracts for the sale and
     5  conveyance of standing or growing timber or bark thereon, and
     6  defining the interest vested by such deeds, conveyances and
     7  contracts, and making valid the record of deeds, conveyances and
     8  contracts therefor."
     9     Act of April 24, 1931 (P.L.48, No.40), entitled "An act
    10  requiring the recording of certain written agreements pertaining
    11  to real property, and prescribing the effect thereof as to
    12  subsequent purchasers, mortgagees, and judgment creditors of the
    13  parties thereto."
    14     (c)  Saved from repeal.--The following acts are preserved in
    15  full even though they may be affected by this act:
    16     Act of January 26, 1870 (P.L.13, No.2), entitled "An act to
    17  aid in perfecting titles to lands."
    18     Act of May 25, 1878 (P.L.155, No.201), entitled "An act to
    19  authorize the probate and recording of deeds, conveyances and
    20  other instruments of writing, where there are no subscribing
    21  witnesses."
    22  Section 8.  Effective date.
    23     This act shall take effect in 90 days.





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