PRINTER'S NO. 511
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 19890S0487B0511 - 67 -
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. A25L68MRD/19890S0487B0511 - 68 -