H1795B3513A05771 AJB:CDM 10/21/22 #90 A05771
AMENDMENTS TO HOUSE BILL NO. 1795
Sponsor: SENATOR FONTANA
Printer's No. 3513
Amend Bill, page 1, line 2, by inserting after "Statutes,"
providing for municipal claim and tax lien law;
Amend Bill, page 1, line 14, by striking out "and,"
Amend Bill, page 1, line 16, by inserting after "PROXIES"
; and making a related repeal
Amend Bill, page 1, lines 19 and 20, by striking out all of
said lines and inserting
Section 1. Title 68 of the Pennsylvania Consolidated
Statutes is amended by adding a chapter to read:
CHAPTER 25
MUNICIPAL CLAIM AND TAX LIEN LAW
Sec.
2501. Short title.
2502. Definitions.
2503. Local taxes, a first lien and date.
2504. Claims assessment.
2505. Liens.
2506. Real estate subject to tax and municipal claims.
2507. Donation of property.
2508. Multiple owners.
2509. Highway footways.
2510. Written notice.
2511. Time and place for filing, liability, interest, form,
contents, appeals from assessments, indexing, revival
and order fixing amount.
2512. Contents of claim, signature, county taxes, levies or
assessments and affidavits of use-plaintiff.
2513. Property included in claims and payment of portion.
2514. Intervening or substituted defendants.
2515. Separate and distinct properties and apportionment of
charge.
2516. Petition of defendant, payment into court, affidavit,
rule, decree and jury trial.
2517. Time of lien.
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2518. Scire facias.
2519. Form of scire facias.
2520. Duties of sheriff.
2521. Judgment for want of affidavit of defense, assessment of
damages, rule for judgment and reply.
2522. Evidence, compulsory nonsuit, verdict and attorney fee.
2523. Scire facias to revive judgment, form and fee for
additional names.
2524. Service of scire facias to revive judgment and procedure.
2525. Judgment for plaintiff and costs.
2526. Sequestrator and supersedeas.
2527. Dockets.
2528. Locality index, unpaid tax list and consumer reporting
agencies.
2529. Stay of proceedings.
2530. Execution of judgment.
2531. Price and requirements of sale.
2532. Property of quasi-public corporations.
2533. Sale of property subject to lien of tax or municipal
claims.
2534. Counties of the first class, recovery of judgment and
sale free from claims.
2535. Cities of the first class, recovery of judgment and sale
free from claims.
2536. Joining, service and sale.
2537. Redemption.
2538. Assignment and payment.
2539. Amendments and timing.
2540. General conduct.
2541. Service of notice.
2542. Security.
2543. Use-plaintiffs.
2544. Notice of interest, registration and service.
2545. Rule to show cause, decree, service and notice.
2546. Validity of sale and time for filing contest.
2547. Cities of first class, time for proceeding on claims and
preclusion of sale for undue hardship.
2548. Procedures available to tax claim bureaus.
2549. Disposition of property acquired by cities of the second
class.
§ 2501. Short title.
This chapter shall be known and may be cited as the Municipal
Claim and Tax Lien Law.
§ 2502. Definitions.
The following words and phrases when used in this chapter
shall have the meanings given to them in this section unless the
context clearly indicates otherwise:
"Charges, expenses and fees." Includes, but is not limited
to, the following:
(1) Sums paid or incurred by a municipality to file,
preserve and collect unpaid taxes, tax claims, tax liens,
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municipal claims and municipal liens, including, but not
limited to, prothonotary and sheriff fees, postage expenses
and title search expenses.
(2) Charges, expenses, commissions and fees of third-
party collectors retained by a county, city, borough,
incorporated town, township, school district or municipal
authority when attempted to be recovered by the county, city,
borough, incorporated town, township, school district or
municipal authority that retained the third-party collector.
The charges, expenses, commissions and fees of the third-
party collectors must have been approved by legislative
action of the county, city, borough, incorporated town,
township, school district or municipal authority that levies
the unpaid taxes, tax claims, tax liens, municipal claims and
municipal liens.
"Claimant." The plaintiff or use-plaintiff in whose favor a
claim is filed as a lien.
"Contractor." An individual who, under contract with a
plaintiff, performed the work for which a lien is given.
"Highway." The whole or any part of a public street, road,
lane or alley or other public highway.
"Municipal claim." Any of the following:
(1) A claim resulting from a tax assessed, service
supplied, work done or improvement authorized and undertaken
by a municipality. It is not required for the amount of the
claim to be definitively ascertained, nor have a lien filed,
at the time of filing the claim. A lien shall be filed within
the period of time and in the manner provided under this
chapter.
(2) A claim filed to recover for any of the following:
(i) Grading, guttering, macadamizing or otherwise
improving the cartways of a highway.
(ii) Grading, curbing, recurbing, paving, repaving,
constructing or repairing the footways of any highway.
(iii) Laying water pipes, gas pipes, culverts,
sewers, branch sewers or sewer connections in a highway.
(iv) Assessments for benefits in the opening,
widening or vacation of a highway.
(v) Changing of watercourses or the construction of
sewers through private lands.
(vi) Highways of townships of the first class.
(vii) Acquisition of sewers and drains constructed
and owned by individuals or corporations, and the rights
in and to use the sewers and drains.
(viii) Removal of nuisances.
(ix) Water rates, lighting rates or sewer rates.
(3) A claim filed to recover for work, material or
services rendered or furnished in the construction,
improvement, maintenance or operation of a project undertaken
by a municipality. The municipal claim shall include all
penalties, interest, costs, fines, charges, expenses and
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fees, including reasonable attorney fees, as allowed under
this chapter and all other applicable laws.
"Municipality." A county, city, borough, incorporated town,
township, school district or body politic and corporate, or an
assignee, created as a municipal authority pursuant to law.
"Owner." The individual in whose name property is
registered, if registered according to law. If not registered
according to law, an individual in open, peaceable and notorious
possession of the property, as apparent owner of the property,
if any, or the reputed owner of the property in the neighborhood
in which property is located.
"Property." The real estate subject to a lien and against
which a claim is filed as a lien.
"Tax claim." A claim filed to recover taxes.
"Taxes." A tax imposed by or assessed for any of the
following, including any penalty, interest, cost, charge,
expense or fee, including reasonable attorney fees, connected to
the tax:
(1) County of any class.
(2) City of any class.
(3) Borough of any class.
(4) Incorporated town.
(5) Township.
(6) School district.
(7) Bridge.
(8) Road.
(9) Poor taxes.
§ 2503. Local taxes, a first lien and date.
(a) General rule.--All taxes imposed or assessed on any
property in this Commonwealth are declared to be a first lien on
the property, together with all charges, expenses and fees added
for failure to pay promptly.
(b) Priority of lien.--A first lien under subsection (a)
shall have priority to and be fully paid and satisfied out of
the proceeds of any judicial sale of the property before any
other obligation, judgment, claim, lien or estate with which the
property may become charged or for which it may become liable,
save and except only the costs of the sale and of the writ upon
which the sale is made.
§ 2504. Claims assessment.
(a) Lien declaration.--
(1) All municipal claims, municipal liens, taxes, tax
claims and tax liens imposed or assessed on a property in
this Commonwealth, and all prior claims imposed or assessed
within six months before the passage of this chapter and not
yet liened, shall be declared to be a lien on the property,
together with all charges, expenses and fees incurred in the
collection of any delinquent account, including reasonable
attorney fees under subsection (a.1), added for failure to
pay promptly. All municipal claims and municipal liens shall
arise when lawfully imposed and assessed and shall have
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priority to and be fully paid and satisfied out of the
proceeds of a judicial sale of the property, before any other
obligation, judgment, claim, lien or estate with which the
property may become charged, or for which it may become
liable, save and except only the costs of the sale and of the
writ upon which it is made, and the taxes, tax claims and tax
liens imposed or assessed upon the property.
(2) A claim for property taxes that has been reduced to
judgment shall be enforceable as a lien against real property
in the same manner and to the same extent as a judgment for
money under the generally applicable laws of this
Commonwealth. For purposes of this paragraph, "reduced to
judgment" means a claim rendered absolute under section 311
of the act of July 7, 1947 (P.L.1368, No.542), known as the
Real Estate Tax Sale Law, and those given the effect of a
judgment in accordance with this chapter.
(3) Notwithstanding any other provision of law, when a
judgment or lien under this section is reduced or satisfied
by payment or a sale of the property, the judgment creditor
shall notify the tax claim bureau or prothonotary where the
original tax claim is docketed and shall enter the
satisfaction in the office of the clerk of the court in the
county where the judgment is outstanding. No tax claim shall
be subject to additional interest as a result of enforcement
as a judgment lien under paragraph (2).
(4) A judgment lien under this subsection shall exist
separate and apart from the tax lien.
(5) Nothing in this subsection shall be construed as
affecting other remedies available to a municipality for
collection of a tax or the priority or amount of a tax lien.
(a.1) Attorney fees.--It is not the intent of this section
to require owners to pay, or municipalities to sanction ,
inappropriate or unreasonable attorney fees, charges or expenses
for routine functions. Attorney fees incurred in the collection
of a delinquent account, including a municipal claim, municipal
lien, tax, tax claim and tax lien, shall be in an amount
sufficient to compensate attorneys undertaking collection and
representation of a municipality or its assignee in any actions
in law or equity involving claims arising under this chapter. A
municipality by ordinance, or by resolution if the municipality
is of a class that does not have the power to enact an
ordinance, shall adopt the schedule of attorney fees. Where
attorney fees are sought to be collected in connection with the
collection of a delinquent account, including a municipal claim,
municipal lien, tax, tax claim and tax lien, the owner may
petition the court of common pleas in the county where the
property subject to the municipal claim and lien, tax claim and
lien or tax is located to adjudicate the reasonableness of the
attorney fees imposed. In the event that there is a challenge to
the reasonableness of the attorney fees imposed in accordance
with this section, the court shall consider, but not be limited
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to, the following:
(1) The time and labor required, the novelty and
difficulty of the questions involved and the skill requisite
to properly undertake collection and representation of a
municipality.
(2) The customary charges of the members of the bar for
similar services.
(3) The amount of the delinquent account collected and
the benefit to the municipality from the services.
(4) The contingency or the certainty of the
compensation.
(a.2) Duplication of attorney fees.--If attorney fees are
awarded under any provision of law, the municipality shall not
be entitled to duplicate recovery of attorney fees under this
section.
(a.3) Notice.--The notice shall be as follows:
(1) At least 30 days prior to assessing or imposing
attorney fees in connection with the collection of a
delinquent account, including a municipal claim, municipal
lien, tax, tax claim and tax lien, a municipality shall, by
United States certified mail, return receipt requested,
postage prepaid, mail to the owner the notice required by
this subsection.
(2) If, within 30 days of mailing the notice in
accordance with paragraph (1), the certified mail is refused
or unclaimed or the return receipt is not received, then at
least 10 days prior to assessing or imposing attorney fees in
connection with the collection of a delinquent account, a
municipality shall, by United States first class mail, mail
to the owner the notice required by this subsection.
(3) The notice required by this subsection shall be
mailed to the owner's last known post office address by
virtue of the knowledge and information possessed by the
municipality and by the county office responsible for
assessments and revisions of taxes. The municipality shall
determine the owner's last post office address known to the
collector and county assessment office.
(4) The notice to the owner shall include the following:
(i) A statement of the municipality's intent to
impose or assess attorney fees within 30 days of mailing
the notice under paragraph (1) or within 10 days of the
mailing of the notice under paragraph (2).
(ii) The manner in which the imposition or
assessment of attorney fees may be avoided by payment of
the delinquent account.
(b) City of first class provision.--With the exception of
those claims that have been assigned, a municipal claim,
municipal lien, tax, tax claim or tax lien, including interest,
penalty and costs, imposed by a city of the first or second
class or by a county of the second class or by a municipality
within a county of the second class, shall be a judgment only
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against the property when the lien has been docketed by the
prothonotary. The docketing of the lien shall be given the
effect of a judgment against the property only with respect to
which the claim is filed as a lien. The prothonotary shall
maintain an in rem index, the form and location of which shall
be within the prothonotary's discretion. All tax claims, water
rents or rates, lighting rates, power rates and sewer rates
filed prior are ratified, confirmed and made valid subsisting
liens as of the date of their original filing.
(c) Writ of execution.--A writ of execution may issue
directly without prosecution to judgment of a writ of scire
facias. Any property sold in execution shall be sold in
compliance with the provisions of section 2535 (relating to
cities of the first class, recovery of judgment and sale free
from claims).
(d) Filing date provision.--Attorney fees may be imposed and
collected in accordance with this section upon all taxes, tax
claims, tax liens, municipal claims, municipal liens, writs of
scire facias, judgments or executions filed on or after December
19, 1990.
§ 2505. Liens.
The following shall apply:
(1) The lien for taxes shall exist in favor of, and the
claim may be filed against the property taxed by, a
municipality to which the tax is payable.
(2) The lien for the removal of nuisances shall exist in
favor of, and the claim may be filed against the property
from which the nuisance is removed, or by which the nuisance
is caused, by a municipality by or for which the nuisance is
removed.
(3) The lien for the following:
(i) grading, guttering, paving, macadamizing or
otherwise improving the cartways of any highways;
(ii) grading, curbing, recurbing, paving, repaving,
constructing or repairing footways;
(iii) laying water pipes, gas pipes, culverts,
sewers, branch sewers or sewer connections in a highway;
(iv) assessments for benefits in the opening,
widening or vacation of a highway ;
(v) changing of watercourses or construction of
sewers through private lands;
(vi) highways of townships of the first class;
(vii) acquisition of sewers and drains constructed
and owned by individuals or corporations, and of rights
in and to use the sewers and drains; and
(viii) water rates, lighting rates, sewer rates or
rates for any other service furnished by a municipality;
shall exist in favor of, and the claim may be filed against
the property benefited by, the municipality extending the
benefit or the city, borough or township in which the
property is located, if the work, material or service forming
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the basis of the lien was supplied by a municipal authority
organized by a city of the second class, by a county of the
second class or by a city of the third class and the liens or
the claim has been assigned to it.
(4) Municipal authorities organized by cities of the
second class, by counties of the second class or by cities of
the third class are authorized to assign municipal claims and
liens to the city, borough or township in which the property
subject to the lien is located, and cities, boroughs and
townships in which the property is located are authorized to
purchase the lien. Upon the assignment or purchase, the city,
borough or township acquiring the municipal claim or lien
shall have the same rights as if it had supplied the work,
material or service upon which the municipal claim or lien is
based.
(5) When the contractor performing the work is to be
paid by assessment bills, the lien shall exist for, and the
claim shall be filed to, the contractor's use, and the
contractor shall under no circumstances have recourse to the
municipality authorizing the work.
§ 2506. Real estate subject to tax and municipal claims.
(a) Rule.--Except as provided under subsection (b), real
estate shall be subject to tax and municipal claims as provided
under this chapter.
(b) Exceptions.--
(1) Subsection (a) shall not apply to property owned by
the United States or the Commonwealth.
(2) Except for the removal of nuisances, for sewer
claims and sewer connections or for the curbing, recurbing,
paving, repaving or repairing of footways in front of
nuisances, sewer claims and sewer connections, subsection (a)
shall not apply to the following property, if exempt from
taxation:
(i) Property owned by a county, city or other
municipality or municipal division.
(ii) Ac tual places of religious worship.
(iii) Places of burial not held or used for private
or corporate profit.
(iv) Institutions of purely public charity.
(3) Nothing under this chapter shall prohibit a
municipality from providing that municipal work may be done
at the expense of the public generally and be paid out of the
general funds of the municipality.
§ 2507. Donation of property.
(a) Acceptance.--
(1) A county, city, borough, incorporated town,
township, home rule municipality, optional plan municipality
or optional charter municipality may accept the donation of
property that is subject to a claim for taxes. A municipal
authority, other than a redevelopment authority, or a school
district may participate in a donation under subsection (g).
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(2) A municipality shall provide written notice to local
municipalities or the municipality's designees under
subsection (f) of a donation proposed by the owner of the
property. A donation under this subsection may not be
accepted less than 30 days after notice to each other
municipality which has a claim for taxes on the subject
property under this chapter. A donation under this subsection
shall divest each lien against the property possessed by the
municipality accepting the donation and each local tax lien
recorded prior to the date of donation, except as otherwise
provided under this section and except for a mortgage
recorded prior to the tax liens.
(b) Participation.--
(1) A municipality that receives a notice of proposed
donation may request to participate in negotiations with
regard to the donation and extinguishment of all or part of
the municipality's liens and with regard to proposals to
return the property to the tax rolls or to productive public
use. A municipality that does not respond in writing to the
notice within 30 days of the municipality's receipt of the
notice waives the municipality's right to participate in the
donation negotiations and the municipality's lien shall be
extinguished.
(2) A municipality participating in donation
negotiations may agree to extinguish each existing lien
against the property in exchange for full or partial
satisfaction of the municipality's claims upon future sale of
the property by the municipality accepting the donation.
(3) Each negotiation must consider the structure and
condition of the property, the market value of the property
in its current condition, the best use of the property given
the neighborhood and local ordinances and the costs to cure
defects, including defects in title.
(c) Deed.--
(1) A donation under this subsection shall be by deed
recorded, and registered where required with the county
recorder of deeds. The deed shall be accompanied by recorded
satisfactions of each claim for taxes which are extinguished
by virtue of the donation.
(2) The satisfaction from the municipality which is
accepting ownership of the property pursuant to the donation
shall provide for full extinguishment of each claim
possessed by the municipality under this chapter. A
satisfaction of liens shall provide that each claim of each
municipality in which the property is located is discharged
and extinguished, unless different terms are agreed upon
between the owner and the municipalities participating in the
donation negotiations.
(d) Exemption.--Property that has been donated under this
section shall be exempt from claims for taxes from each
municipality in which the property is located during the time
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that the property remains in the ownership of the county, city,
borough, incorporated town, township, home rule municipality,
optional plan municipality, optional charter municipality,
redevelopment authority or school district to which the property
was donated.
(e) Nonliability.--Notwithstanding any other provision of
law, an owner who donates property under this section shall not
be personally liable for the amount of claims for taxes exempted
or extinguished as a result of the donation.
(f) Agent.--
(1) A county, city, borough, incorporated town,
township, home rule municipality, optional plan municipality
or optional charter municipality in which the property is
located may designate another municipality, or a
redevelopment authority in which the property is located to
act as its agent with regard to a donation under this
section.
(2) A single municipality or the redevelopment authority
may be selected as the agent for all municipalities holding a
tax claim or lien. In returning the property to the tax rolls
or to productive public use, a municipality or a
redevelopment authority may seek the assistance of a
community development corporation serving the area where the
property is located.
(g) School district or municipal authority.--A school
district or municipal authority, other than a redevelopment
authority, may participate in the provisions of this section
only if the school district or municipal authority has
designated an agent in accordance with subsection (f). Nothing
under this subsection shall prevent a school district or
municipal authority from taking title to a donated property if
it is determined during negotiations that the best manner to
return the property to productive use is to allow a school
district or municipal authority to use the property for purposes
directly related to the mission of the district or authority.
§ 2508. Multiple owners.
(a) Proportionate share of tax.--If real estate in this
Commonwealth is owned by joint tenants, tenants in common or
coparceners and a joint tenant, tenant in common or coparcener
has paid their proportionate amount of the taxes due on the real
estate, a municipality may file a claim for the unpaid taxes
against the estate, title and interest of each owner who has not
paid their proportionate share of the tax.
(b) Release of proportionate share of tax.--If a claim for
taxes has been filed against real estate owned by joint tenants,
tenants in common or coparceners, the claimant shall release the
estate, title and interest of each joint tenant, tenant in
common or coparcener from the tax claim, upon payment by the
joint tenant, tenant in common or coparcener of their
proportionate share of the taxes, with proportionate interest
and costs.
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(c) Exempt property.--If property in this Commonwealth is
owned by more than one owner or part owner and the estate and
title of an owner or part owner is exempt from or has not been
subjected to taxation or municipal claims, the estate and title
of each owner or part owner which is not exempt from or which
has been subjected to taxation or municipal claims shall be
subject to the tax and municipal claims provided for under this
chapter. Property subject to tax and municipal claims under this
subsection shall be subject as any other real property liable to
assessment for taxes and municipal claims, by filing a lien
against the estate, title and interest of each owner subject to
the claim.
§ 2509. Highway footways.
(a) Claim prohibited.--Except as provided under subsection
(b), a claim may not be filed for curbing, recurbing, paving,
repaving or repairing the footway of a highway.
(b) Exception.--A claim may be filed under subsection (a) if
the owner of the property has, after notice served on the owner,
the owner's known agent or the occupant of the property, not
done the work described under subsection (a) within the period
of time as may be described by ordinance. If no agent or
occupant is known by the claimant, the notice may be posted on
the most public part of the property. This subsection shall not
apply if the curbing, recurbing or repaving of the footway forms
part of an improvement resulting in the paving, macadamizing or
improving the cartway of the highway.
§ 2510. Written notice.
(a) Service.--If claims are to be filed to use, a claimant,
at least one month before the claim is filed, shall serve a
written notice of the claimant's intention to file the claim
unless the amount due is paid. Service may be made personally on
the owner, except that if the owner cannot be served in the
county where the property is situated, notice may be served on
the owner's agent or the party in possession of the property. If
an agent or party in possession does not exist, service may be
posted on the most public part of the property.
(b) Nonapplicability.--Subsection (a) shall not apply if:
(1) the use-plaintiff is a city, borough or township to
which a municipal claim of a municipal authority organized by
a city of the second class, a county of the second class or a
city of the third class has been assigned or sold, as
provided under section 2505 (relating to liens); and
(2) the procedure for filing, reviving and enforcing a
lien for the assigned claim is the same as provided under
this chapter for filing, reviving and enforcing liens based
on the use-plaintiff's own municipal claims.
§ 2511. Time and place for filing, liability, interest, form,
contents, appeals from assessments, indexing, revival
and order fixing amount.
(a) Time and place for filing.--
(1) Except as provided under paragraph (2), a claim for
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taxes, water rents or rates, lighting rates, power rates and
sewer rates shall be filed in the court of common pleas of
the county in which the property is situated.
(2) If the property is situate in the City of
Philadelphia and the taxes or rates do not exceed the maximum
amount over which the Municipal Court of Philadelphia has
original jurisdiction, a claim shall be filed in the
Municipal Court of Philadelphia.
(3) Except as provided under paragraph (4), a claim
shall be filed on or before the last day of the third
calendar year after the date in which the taxes or rates are
first payable.
(4) In city or school district of the first class, a
claim, which has become a lien under this chapter and has
been entered on the record as a lien or has been liened and
revived, shall continue and remain as a lien for a period of
20 years from date of the revival, entry or lien by operation
of law, whichever occurs last. Any other municipal claim
shall be filed in the court of common pleas or the Municipal
Court of Philadelphia within six months from the date when
any of the following occurred:
(i) The work was done in front of the property.
(ii) The charge against the property is assessed or
made at the time the work is authorized.
(iii) The completion of the improvement on the
property. The certificate of a surveyor, engineer or
other officer supervising the improvement, filed in the
proper office, may be used to determine the time of the
completion of the improvement on the property. The
surveyor, engineer or other officer shall be personally
liable to any individual injured by a false statement
regarding the completion of the improvement on the
property.
(iv) The assessment is made by the municipality upon
the property after the completion of the improvement on
the property.
(v) The confirmation by the court if confirmation is
required.
(b) Liability.--If a borough is located in more than one
county, a claim may be filed by the borough in each county where
the borough is located. In the case of real estate benefited by
an improvement that is sold before the municipal claim is filed,
the date of completion in the certificate shall determine the
liability for the payment of the claim between the buyer and
seller, unless otherwise agreed upon or as specified under
subsection (a).
(c) Interest.--
(1) The number of years' taxes or rates of different
kinds, if payable to the same plaintiff, may be included in
one claim. Interest as determined by the municipality at a
rate not to exceed 10% each year shall be collectible on a
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municipal claim from the date of the completion of the work
after the claim is filed as a lien and on a claim for taxes,
water rents or rates, lighting rates or sewer rates from the
date of the filing of the lien. After December 28, 1981 , in
the case of a municipal claim filed for a municipal project
which required the municipality to issue bonds to finance the
project, interest shall be collectible on the claim at the
rate of interest of the bond issue or 12% per year, whichever
rate is less.
(2) Except as provided under paragraph (3), the
provisions of any other act relating to claims for taxes,
water rents or rates, lighting rates, power rates, sewer
rents or rates or for any other type of municipal claim or
lien utilizes the procedures provided under this chapter and
the provisions of the other act establish a different rate of
interest for a claim or lien under this chapter, the maximum
rate of interest of 10% per year as provided under this
subsection shall apply to the claim or lien provided under
the other act.
(3) After December 28, 1981 , in the case of municipal
claim filed for a municipal project which required the
municipality to issue bonds to finance the project, interest
shall be collectible on the claim at the rate of interest of
the bond issue or 12% per year, whichever rate is less.
(d) Form.--
(1) Claims for taxes, water rents or rates, lighting
rates, power rates and sewer rates may be in the form of
written or typewritten lists showing the names of the
taxables, including all of the following:
(i) The name and last known address with the zip
code of the owner of each property against which a claim
is being filed.
(ii) The descriptions of the properties against
which the claims are filed, including the amount of the
taxes due to the municipality.
(2) The lists under paragraph (1) may be filed on behalf
of a single municipality or cover the unpaid taxes due to two
or more municipalities which have taxes collected by the same
tax collector if amounts due to each municipality are
separately shown.
(3) Tax claims, water rents or rates, lighting rates,
power rates and sewer rates filed in the form specified under
this subsection shall be considered ratified, confirmed and
valid subsisting liens as of the date of the original filing.
(e) Contents.--A number of years' taxes or rates of
different kinds, if payable to the same plaintiff, may be
included in one claim. A municipal claim shall be filed in the
same manner within the required period if an appeal is taken
from the assessment for the recovery for which the municipal
claim is filed.
(f) Appeals from assessments.--If a municipal claim is filed
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for an appeal taken from the assessment for the recovery, the
lien claim shall be in the form provided under this section,
except that the claim shall specify the amount of the claim as
an undetermined amount to be determined by the appeal taken from
the assessment upon which the municipal claim is based, pending
in the court when the appeals proceeding will occur.
(g) Indexing.--Upon the filing of a municipal claim for an
appeal taken from the assessment for the recovery, the claim
shall be indexed by the prothonotary on the judgment index and
and the locality index of the court and the amount of the claim
shall be stated as an undetermined amount.
(h) Revival.--
(1) If the final judgment of a municipal claim for an
appeal taken from the assessment for the recovery is not
obtained within 20 years from the filing of the municipal
claim, the claimant in the lien shall, within the period of
20 years, file a suggestion of nonpayment in the form
specified under this subsection. Except as provided under
paragraph (2), a suggestion of nonpayment shall have the
effect of continuing the lien for an additional period of 20
years from the date of the filing of the suggestion of
nonpayment.
(2) Regarding a claim for taxes or any other municipal
claim in a city or school district of the first class, if
final judgment is not obtained for the appeal within 20 years
from the filing of the municipal claim, the claimant in the
lien shall, within the period of 20 years, file a suggestion
of nonpayment in the prescribed form. The suggestion of
nonpayment shall have the effect of continuing the lien for
an additional period of 20 years from the date of filing the
suggestion of nonpayment.
(3) Except as provided under paragraph (4), a municipal
claim shall be revived in the similar manner provided under
this subsection during each recurring period of 20 years
until final judgment is entered upon the appeal and the
undetermined amount of the municipal claim is fixed as
specified under subsection (i).
(4) Regarding a claim for taxes or any other municipal
claim in a city or school district of the first class, a
municipal claim shall be revived in a similar manner provided
under this subsection during each recurring period of 20
years until final judgment is entered upon the appeal and the
undetermined amount of the municipal claim is fixed as
specified under subsection (i).
(i) Order fixing amount.--
(1) When the final judgment is obtained upon an appeal
filed under subsection (h), the court in which the municipal
claim is pending shall, upon the petition of any interested
party, make an order fixing the undetermined amount claimed
in the claim at the amount determined by the final judgment
upon the appeal. The amount of the municipal claim shall bear
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interest from the date of when final judgment was entered and
shall remain at that fixed sum. Proceedings upon the
municipal claim after the date of the order shall be
conducted in the same manner as in other cases.
(2) If, during the final judgment upon an appeal filed
under subsection (h), no amount is due upon the assessment
for the recovery of which the municipal claim is filed, the
court in which the claim is pending shall, upon the petition
of any interested party, make an order striking the claim
from the record and charge the cost incurred from the claim
to the plaintiff.
(3) If the appeal filed under subsection (h) is
discontinued, the court in which the municipal claim is
pending shall, upon the petition of any interested party,
make an order fixing the undetermined amount claimed at the
amount of the original assessment. The amount shall bear
interest from the date the assessment was originally payable
and shall remain at that fixed sum.
(4) In a county of the second class and municipalities
located within the county of the second class, interest at
the applicable annual rate shall accrue monthly on all taxes,
tax claims and municipal claims on the first day of the month
for the entire month, or part of the month, when the taxes,
tax claims or municipal claims are paid. Interest shall not
be paid on a per diem basis. In a county of the second class,
all unpaid county taxes shall become delinquent as provided
by the laws of this Commonwealth shall include a penalty of
5% for the delinquency.
(5) In a county of the second class, collected taxes and
tax claims shall be paid into the county treasury for the use
of the county unless the taxes and tax claims are assigned.
If the taxes and tax claims are assigned, there shall be no
requirement that the taxes and tax claims collected by the
assignee be paid into the county treasury.
(6) In a county of the second class, the county shall
not be required to advance or pay any fee to the prothonotary
for the filing of paper, an electronic filing or performing
any services for the county of the second class relating to
the filing, satisfaction, assignment, transfer, revival,
amendment, enforcement and collection of taxes, tax claims or
tax liens. The prothonotary shall accept filings by or on
behalf of a county of the second class relating to the taxes,
tax claims or tax liens and document the cost for providing
the service performed on the docket. After the prothonotary
documents the costs of providing the service performed on the
docket, the county of the second class and its employees,
representatives, agents or assignees shall collect the fee as
part of the taxes, tax claims or tax liens.
§ 2512. Contents of claim, signature, county taxes, levies or
assessments and affidavits of use-plaintiff.
(a) Contents of claim.--A claim must specify all of the
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following:
(1) The name of the municipality that filed the claim.
(2) The name and last known address, including the zip
code, of the owner of the property against which the claim is
filed.
(3) A description of the property against which the
claim is filed.
(4) The authority under or by virtue of which the tax
was levied or the work was done.
(5) Any of the following:
(i) The time for which the tax was levied.
(ii) The date on which the work was completed in
front of the particular property against which the claim
is filed.
(iii) The date of completion of the improvement
where the assessment is made after completion.
(iv) The date of confirmation by the court where
confirmation is required to be done.
(6) If filed to the use of a contractor, the date of and
parties to the contract for doing the work.
(7) In other than tax claims, the kind and character of
the work done for which the claim is filed and, if the work
requires previous notice to the owner to do the work, when
and how the notice was given.
(b) Signature and affidavit.--
(1) Except as provided in paragraph (2), a claim shall
be signed by or have stamped on the claim a facsimile
signature of the solicitor or chief executive officer of the
claimant or the chief of the claimant's delinquent tax
bureau.
(2) In counties of the second class, a claim for county
taxes, levies or assessments shall be signed by or have
stamped on the claim a facsimile signature of the county
controller.
(3) In the case of a use-plaintiff, a claim must be
accompanied by an affidavit that the facts specified in the
claim are true to the best of the use-plaintiff's knowledge,
information and belief.
§ 2513. Property included in claims and payment of portion.
(a) Tax claim.--The property described in a tax claim shall
include the whole property against which the tax is levied.
(b) Municipal claim.--The property described in a municipal
claim may include the whole contiguous property or only the lot
in front of or upon which the work is done, or to which service
is supplied, of a depth as is usual in properties of the same
kind or character in the particular neighborhood.
(c) Property depth.--A municipal claim or tax claim shall
not be invalid by reason of including in the claim property to a
greater depth than specified in subsection (b). The court in
which the claim is filed may, at any time prior to judgment on
the claim, but not afterwards, upon it appearing that the claim
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includes property to a greater depth than is made subject to the
claim, limit the lien of the claim to the proper depth.
(d) Narrow strip.--If an owner of property abutting a
highway conveys or at any time has conveyed a strip of land
abutting the highway that is too narrow to be used as a site for
the smallest width dwelling allowed by law to be erected on the
strip, the conveyance shall be deemed to be made for the purpose
of evading liability for the municipal improvements made or to
be made in the highway and:
(1) the assessment may be made, at the option of the
municipality, against the lot as it existed before the
division; and
(2) the lien may be filed against the entire lot as
assessed, joining the owners of both the rear lot and the
strip in the claim.
(e) Separate and distinct properties.--If a tax is levied on
or filed against separate and distinct properties in one amount
covering all the properties, the proper public authority shall,
if tendered with all costs, if any, accept payment of the
portion of the whole amount of the tax chargeable upon each or
any of the separate and distinct properties charged together,
according to the tax rate and assessed valuation of the
properties. The payment and satisfaction of any one portion may
be made without prejudice to the claim against the remainder.
§ 2514. Intervening or substituted defendants.
(a) Intervention.--An individual having an interest in the
property, whenever acquired, may, after 10 days' prior notice in
writing, by leave of court, intervene as a party defendant and
make defense to a claim, with the same effect as if the
individual had been originally named as a defendant in the claim
filed.
(b) Substitution.--A claimant may, by writing filed at the
claimant's costs, strike off the name of a defendant in the
claim and may substitute as a defendant, and issue a scire
facias against an individual who may have an interest in the
claim as owner or an individual who is the personal
representative of an owner who has died either before or after
filing the claim. The substitution shall be without prejudice to
any intervening rights.
§ 2515. Separate and distinct properties and apportionment of
charge.
(a) Authorization of proper public authority.--If a tax
claim or municipal claim is levied on or filed against separate
and distinct properties as one estate, the proper public
authority, either before or after filing the claim, may
apportion the claim ratably upon the separate and distinct
properties that are assessed together.
(b) Court authorization.--The court in which the claim under
this section is filed, on proof that the properties were
separate and distinct at the time the tax was levied or the work
was done, shall, at any stage of the proceedings, apportion the
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charge against the properties.
(c) Effect of apportionment.--When apportioned, the claim
shall be treated and considered in all respects as if separate
and distinct claims had been filed. Payment and satisfaction of
a portion may be made without prejudice to the claim as against
the rest.
§ 2516. Petition of defendant, payment into court, affidavit,
rule, decree and jury trial.
(a) Petition.--A defendant named in a claim, or an
individual allowed to intervene and defend against the claim,
may, at any stage of the proceedings, present a petition, under
oath or affirmation:
(1) specifying that the defendant has a defense in whole
or in part to the claim and what constitutes the defense;
(2) requesting that a rule be granted upon the claimant
to file an affidavit of the amount claimed and to show cause
why the petitioner should not have leave to pay money into
court; and
(3) in the case of a municipal claim, to enter security
in lieu of the claim.
(b) Grant of rule.--Upon the presentation of the petition
under subsection (a), the court shall grant the rule as
requested.
(c) Payment and decree.--Upon the pleadings filed, or from
the claim and the affidavit of defense, and without a petition
if an affidavit of defense has been filed, the court shall:
(1) Determine how much of the claim is admitted or not
sufficiently denied.
(2) Enter a decree that the claim shall be wholly
discharged as a lien against the property described in the
claim and shall be stricken from the judgment index upon:
(i) Payment by the petitioner to the claimant of the
amount found to be due, with interest and costs on the
amount found to be due, or payment into court if the
claimant refuses to accept the payment by the petitioner.
(ii) Payment into court of a sum sufficient to cover
the balance claimed, with interest and costs, or the
entry of approved security in the case of a municipal
claim.
(d) Jury trial.--After the proceedings specified under
subsection (c), the material disputed facts, if any, shall be
tried by a jury, without further pleadings, with the same effect
as if a writ of scire facias had duly issued upon the claim, to
recover the balance of the claim. The following shall apply:
(1) The jury shall be sworn to try the issues between
the claimant and the parties who paid the money into court or
entered security.
(2) The verdict, judgment and payment or execution shall
follow as in other cases.
(3) The same course may be pursued, at the instance of
an owner, if the claim has not been filed and the petitioner
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complies with the decree made. The following shall apply:
(i) The money paid into court or security entered
shall stand in lieu of the claim.
(ii) Security entered shall not be filed, but if
filed, shall be stricken off upon motion.
§ 2517. Time of lien.
(a) General rule.--
(1) A tax, municipal or other claim, if filed within the
period specified in this chapter, shall remain a lien upon
the properties until fully paid and satisfied if either a
suggestion of nonpayment and an averment of default, in the
form provided in this section is filed, either before or
after judgment on the scire facias, or a writ of scire
facias, in the form provided in this chapter, is issued to
revive the claim, within each period of 20 years following:
(i) the date on which the claim was filed;
(ii) the date on which a writ of scire facias was
issued on the claim;
(iii) the date on which a judgment was entered on
the claim;
(iv) the date on which a previous suggestion of
nonpayment and default was filed on the claim; or
(v) the date on which a judgment of revival was
obtained on the claim.
(2) In a city and school district of the first class
with respect to taxes and other municipal claims, the period
within which the liens may be revived shall be 20 years.
(b) Form of suggestion and averment.--The suggestion and
averment shall be in the following form, under the caption of
the claim:
And now , the claimant,
by , its solicitor, or by the chief
of its delinquent tax bureau, or, in counties of the second
class, by the county controller, suggests of record that the
above claim is still due and owing to the claimant, and avers
that the owner is still in default for nonpayment thereof. The
prothonotary is directed to enter this suggestion and averment
on the municipal lien or the proper docket of the claim, and
also to index it upon the judgment index and on the locality
index of the court, for the purpose of continuing the lien of
the claim.
(c) Signature required on suggestion and averment.--
(1) Except as provided in paragraph (2), the suggestion
and averment shall be signed by or have stamped on its face a
facsimile signature of the solicitor or chief executive
officer of the claimant or the chief of the claimant's
delinquent tax bureau.
(2) In a county of the second class, the suggestion and
averment shall be signed by, or have stamped on its face a
facsimile signature of, the county controller.
(3) The prothonotary shall docket and index the
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suggestion and averments as directed.
(d) Legal effect of filing and indexing.--
(1) The filing and indexing of the suggestion and
averment within 20 years or, in a city or school district of
the first class within 20 years of filing the claim or the
issuing of a writ of scire facias on the claim, or of any
judgment on the claim, or of the filing of a prior suggestion
and averment of default, shall have the same force and
effect, for the purposes of continuing and preserving the
lien of the claim, as if a writ of scire facias had been
issued or a judgment or judgment of revival had been obtained
within the period.
(2) No writ of levari facias shall be issued on a claim
for the purpose of exposing the property liened to sheriff's
sale, except after a judgment has been duly obtained on the
claim, as provided in this section, and the judgment has been
obtained within 20 years or, in a city or school district of
the first class, within 20 years of the issuance of the
levari facias.
(3) When the lien of a claim has been revived and
continued by the filing and indexing of a suggestion and
averment of default, the claimant may, at any time within 20
years from the indexing or, in a city or school district of
the first class within 20 years, issue a writ of scire facias
on the claim reciting all suggestion and averment of default
filed since the filing of the claim, and shall proceed on the
lien, in the manner provided in this chapter, subject to the
right of the owner to raise a defense arising since the last
judgment.
(e) Loss of lien.--If a claim is not filed within the time
required by this chapter or the claim is not prosecuted in the
manner and at the time required by this chapter, the lien on
real estate shall be wholly lost.
(f) Costs of filing claim.--The charge for filing the claim
of a municipality or municipal authority shall include the cost
of marking the record paid and satisfied. When the claim and
costs are paid, the municipality or municipal authority shall
notify the prothonotary.
(g) Revival of self-assessed tax liens.--Notwithstanding any
other provision of this or any other act to the contrary, all
judgments in favor of cities, counties and school districts of
the first class relating to self-assessed taxes as defined in
section 2 of the act of December 1, 1959 (P.L.1673, No.616),
known as the Self-Assessed Tax Lien Act, may be revived in the
manner provided for in this section.
§ 2518. Scire facias.
(a) Notice to file.--A party named as defendant in the claim
filed, or admitted to defend the claim, may file and serve a
notice on the claimant or counsel of record to issue a scire
facias on the claim within 15 days after the notice.
(b) Striking of claim.--If no scire facias is issued within
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15 days after the affidavit of service of notice is filed of
record, the claim shall be stricken off by the court, upon
motion.
(c) Compulsory nonsuit.--If a scire facias is issued in
accordance with the notice, the claimant may not discontinue the
claim or suffer a nonsuit on the trial of the claim, but a
compulsory nonsuit shall be entered by the court if the claimant
does not appear or withdraws or for any reason fails to maintain
the claim.
§ 2519. Form of scire facias.
(a) General rule.--The claim shall be sued by writ of scire
facias, and the form thereof shall be substantially as follows:
The Commonwealth of Pennsylvania to (names of the parties
defendant), Greeting:
Whereas, The (city, borough, or other municipality, as the
case may be,) on the day of , A.D. 2 , filed
its claim in our court of common pleas of
County; at No. , Term, 1 , M.L.D., for
the sum of $ , with interest from the day of
, 2 , for (give the improvement, or that for which the claim
is filed), against the following property situate in (give
location and brief description of the property), owned or
reputed to be owned by you.
And whereas, We have been given to understand that said claim
is still due and unpaid, and remains a lien against the said
property;
Now, you are hereby notified to file your affidavit of
defense to said claim, if defense you have thereto, in the
office of the prothonotary of our said court, within 15 days
after the service of this writ upon you. If no affidavit of
defense be filed within said time, judgment may be entered
against you for the whole claim, and the property described in
the claim be sold to recover the amount thereof.
Witness the Honorable , President Judge
of our said court, this day of ,
A.D. 2 .
Prothonotary.
(Seal.)
(b) Addition of parties and amicable scire facias.--
(1) When the claimant files a praecipe for the writ of
scire facias, the claimant may direct the prothonotary to add
and insert the names of any individual whom the claimant may
know to have an interest in the premises, and the scire
facias shall be issued containing the additional names.
(2) The parties to the claim may agree on an amicable
scire facias, upon terms as may be agreed to, with the same
effect as if a scire facias, in the form under subsection
(a), had been duly issued, served and returned; or the
defendants, or any of them, may waive the issue of a scire
facias and appear with like effect as if the scire facias had
been issued and served.
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§ 2520. Duties of sheriff.
(a) Addition of parties.--The sheriff to whom the scire
facias is given for service shall add to the writ, as parties
defendant, all individuals, other than those named in the writ,
who may be found in possession of the property described, or any
part of the property. In case no one is found in possession by
the sheriff, the sheriff shall post a true copy of the writ on
the most public part of the property. The sheriff shall add to
the writ the names of any individual, not already named in the
writ, who the sheriff ascertains to have an interest in the
property described, or any part of the property, which writ
shall then be further served as follows:
(1) By serving, as in the case of a summons, the
individuals named in or added to the writ as may be found in
the county in which the writ issued.
(2) Where the sheriff has information that the
individuals named in or added to the writ, or any of them,
may be found in any other county of this Commonwealth, the
individual shall be served, as in the case of a summons, by
the sheriff of the county in which the individual may reside,
and the sheriff shall be deputized for that purpose by the
sheriff of the county in which the writ issues.
(3) If the individuals named in or added to the writ
cannot be found by the sheriff, their residences within this
Commonwealth are unknown to the sheriff or they reside
outside this Commonwealth, then the writ may be served by
advertising a copy or a brief notice of the contents of the
writ once a week for three successive weeks in one newspaper
of general circulation in the county and in the legal
periodical, if any, designated by the court for that purpose.
Any individual may accept service of the writ, in person or
by counsel, with the same effect as if duly served by the
sheriff.
(b) Legal effect of advertised writ; service, posting and
return.--
(1) Where the writ or the brief notice of the contents
of the writ have been advertised as provided in this chapter,
it shall have the same effect as if the writ had been
personally served.
(2) All individuals named in or added to the writ, as to
whom publication has been made, shall file an affidavit of
defense, as required by the writ, within 15 days after the
date of the last weekly advertisement of the writ.
(3) All individuals named in or added to the writ who
have been served as in case of a summons shall file an
affidavit of defense, as required by the writ, within 15 days
after service. Service of the writ may be made at any time
within three months from the date on which the writ was
issued, but the writ shall be served and returned at the
earliest date possible, and the plaintiff may require return
of the writ at any time, whether or not the writ was actually
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served.
§ 2521. Judgment for want of affidavit of defense, assessment
of damages, rule for judgment and reply.
(a) Failure to file affidavit or defense.--If a defendant
fails to file an affidavit of defense within the time
designated, a default judgment may be entered and damages
assessment by the prothonotary of the court in which the claim
was filed. The damages assessment shall include a fee for
collection to plaintiff's attorney in accordance with section
2504 (relating to claims assessment).
(b) Insufficient affidavit of defense.--A rule may be taken
for judgment if a defendant files an insufficient affidavit of
defense against a claim, or for so much of the claim as is
insufficiently denied, with leave to proceed for the remainder
of the claim.
(c) Oath of plaintiff.--A defendant may, by rule, require
the plaintiff to reply, under oath or affirmation, to the
statements in the affidavit of defense, and, after the reply has
been filed, may move for judgment on the whole record.
§ 2522. Evidence, compulsory nonsuit, verdict and attorney fee.
The following shall apply:
(1) Tax claims and municipal claims shall be prima facie
evidence of the facts averred in all cases.
(2) Averments in both tax and municipal claims shall be
conclusive evidence of the facts averred, except in the
particulars in which those averments shall be specifically
denied by the affidavit of defense, or amendment to the
averment duly allowed.
(3) A compulsory nonsuit, upon trial, shall be
equivalent to a verdict for the defendant, whether the
plaintiff appeared or not.
(4) If a plaintiff recovers a verdict, upon trial, in
excess of the amount admitted by the defendant in the
defendant's affidavit of defense or pleadings, the plaintiff
shall be entitled to reasonable attorney fees in accordance
with section 2504 (relating to claims assessment) .
§ 2523. Scire facias to revive judgment, form and fee for
additional names.
The following shall apply to the revival of judgment:
(1) The judgment upon a claim may be revived by writ of
scire facias in the following form:
The Commonwealth of Pennsylvania, to C.D. and E.F., Greeting:
Whereas, A.B., claimant, on the day of ,
A.D. 2 , recovered judgment in the sum of dollars
against you, that the following described property be sold to
satisfy the same:
(Here describe property in full.)
And whereas, We have been given to understand that though
judgment, as aforesaid, was rendered, yet the amount thereof is
still due and unpaid, and remains as a lien against said
property. Now, you are hereby notified to file your affidavit of
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defense to A.B.'s claim upon said judgment, if any defense you
have, in the office of the prothonotary of our said court,
within 15 days after service of this writ upon you. If no
affidavit of defense be filed within that time, said judgment
may be revived against you for the amount set forth, with
interest from the time of its recovery, and said property to be
sold to recover the whole thereof.
Witness the Hon , President Judge of our said
court, this day of , A.D. 2 .
Prothonotary.
(Seal.)
(2) The parties to a judgment may agree upon an amicable
scire facias to revive or to an amicable judgment of revival
upon agreed upon terms, with the same effect as if a scire
facias in the form under paragraph (1) had been duly issued,
served and returned.
(3) Where the name of more than one defendant is
included in the scire facias described in this section, the
prothonotary shall be entitled to an additional fee of 25¢
for each extra name.
§ 2524. Service of scire facias to revive judgment and
procedure.
A writ of scire facias for revival under section 2523
(relating to scire facias to revive judgment, form and fee for
additional names) shall be served, and the proceedings
conducted, to individuals found by the sheriff and in the manner
provided under this chapter for the original scire facias sur
claim. A return of nihil habet to the writs to revive shall be
equivalent to personal service upon the defendants. The practice
and procedure following the scire facias to revive, so far as
applicable, shall be the same as in the case of the original
scire facias to collect the claim.
§ 2525. Judgment for plaintiff and costs.
All judgments for the plaintiff, whether on the original
scire facias or a scire facias to revive, shall be de terris
and shall be recovered out of the property bound by lien. The
costs, whether as against the plaintiff or the defendant
defending against the claim, may be recovered by execution as in
personal actions.
§ 2526. Sequestrator and supersedeas.
(a) General rule.--Upon the expiration of 20 days from the
recovery of judgment, whether on the original scire or a scire
facias to revive, the court shall, upon the petition of the
plaintiff, appoint a sequestrator of the rents, issues and
profits of the property bound by the judgment, unless in the
meantime an appeal be taken, and approved security given to
operate as supersedeas.
(b) Essential property limitation.--Subsection (a) shall not
apply to property essential to the business of a quasi-public
corporation.
(c) Rule for delivery.--The following shall apply:
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(1) If the owner against whom a judgment is entered
retains possession of the sequestered property, or the party
in possession refuse to pay a fair rent, the court shall,
upon petition filed and served, grant a rule awarding a writ
in the nature of a writ of habere facias possessionem
directed to the owner or the party in possession commanding
delivery of the possession to the sequestrator within 15
days.
(2) Paragraph (1) shall not apply to property occupied
by the owner and the owner's family as a home. The owner
shall be entitled to retain possession for a period of one
month from the time the petition was served upon the owner.
(d) Sequestrator.--The following shall apply to a
sequestrator:
(1) A sequestrator, once appointed, shall have power to
perform the following:
(i) Retain possession as sequestrator until all the
taxes owing at the time of appointment shall have been
collected or paid.
(ii) Lease retained property for a period not
exceeding one year with the usual privilege of renewal or
termination thereof upon three months notice.
(2) The sequestrator may:
(i) Make reasonably necessary repairs to the
property to restore or maintain the property in a
tenantable condition.
(ii) Advertise for tenants and collect the costs of
repairs and advertising from rentals collected or from a
redeeming owner.
(iii) Appoint an agent to collect the rentals of the
property and pay the agent commissions for rent
collections.
(e) Deduction of costs.--All commissions, costs and
necessary expenses shall be deducted from the rents collected
before paying the net balance towards the taxes.
(f) Redemption of property.--An owner of the property may
redeem the property from the sequestrator and be entitled to
possession upon payment of the net amount of taxes then owing
upon the property after payment of the commissions, costs and
expenses of the sequestration proceedings.
(g) Payment of all taxes.--Upon payment of all taxes owing,
either by a redeeming owner or by collection of rentals, the
sequestrator shall transfer the possession of the property to
the owner, subject to any existing lease or leases given or
executed by the sequestrator. A lease or leases executed by the
sequestrator shall be assigned to the owner.
(h) Power of sequestrator.--Sequestrators appointed under
this chapter shall exercise all powers and use all remedies
conferred by the laws of this Commonwealth upon sequestrators in
other proceedings, as applicable.
§ 2527. Dockets.
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The following shall apply:
(1) Every claim filed, scire facias issued, verdict
recovered and judgment entered in accordance with this
chapter shall be docketed in the appropriate docket, and,
except as provided under paragraphs (2) and (3), shall be
entered upon the judgment index of the court.
(2) A note shall be made on the docket when a claim is
stricken off or satisfied, the name of a defendant stricken
out, a scire facias discontinued or quashed or a verdict or
judgment stricken off or satisfied.
(3) In counties in which the filing of liens for county
taxes was authorized by law prior to June 4, 1901, the method
of filing, entering, docketing and indexing liens for county,
road, poor, school, borough, school building, township and
other taxes assessed in boroughs and townships in the
counties shall remain and be continued in the same manner and
form as in use prior June 4, 1901, notwithstanding the
passage of the same.
§ 2528. Locality index, unpaid tax list and consumer reporting
agencies.
(a) Prothonotaries.--Each prothonotary of the courts of
common pleas shall keep a locality index containing all tax or
municipal claims filed. Upon a written order for the index, the
prothonotary shall give a certificate of search, showing all the
claims filed against any property. The prothonotary shall be
reimbursed the sum of 25¢, and 5¢ additional for each claim
certified, for keeping the locality index.
(b) Public record.--In addition to the requirements of
subsection (a), the following shall apply:
(1) The department or public official responsible for
collection of delinquent taxes in a municipality that
collects delinquent taxes under this chapter and the county
treasurer in a county of the second class shall maintain as a
public record a list of all properties against which taxes
levied in a prior taxable year remain unpaid and the
following shall apply:
(i) The list shall include the following
information:
(A) A description of the property.
(B) The property's location.
(C) The name and last known address, including
the zip code, of the owner of the property.
(D) The amount of unpaid taxes, penalties and
interest due for all years other than the current tax
year.
(ii) It shall be noted on the list if taxes on the
list are paid, another settlement had been agreed to or
if a tax sale of the property is held.
(2) The department or public official responsible for
collection of delinquent taxes may report any nonpayment of
taxes, including liens, to one or more consumer reporting
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agencies, as defined by the Fair Credit Reporting Act (Public
Law 91-508, 15 U.S.C. § 1681 et seq.).
§ 2529. Stay of proceedings.
(a) General rule.--At any time before the property is sold,
approved security may be entered for a stay of proceedings until
the expiration of one year after the date of filing the claim.
(b) Admission by owner.--The entry of approved security by
the owner, before the entry of judgment on the claim, shall be
equivalent to an admission by the owner that the property is
liable for the claim.
(c) Expiration of stay.--After the stay has expired, the
claimant may proceed upon the claim and the bond given,
separately or simultaneously.
§ 2530. Execution of judgment.
(a) Writ of levari facias.--Execution upon a judgment
recovered upon a claim, except where the property named is
essential to the business of a quasi-public corporation, shall
be by writ of levari facias in the following form:
The Commonwealth of Pennsylvania:
To the sheriff of County, Greeting:
Whereas, A.B., claimant, on the day of , Anno
Domini 2 , recovered judgment in the sum of dollars,
with interest from the day of , Anno Domini 2 ,
and the costs amounting to dollars, in our court of
common pleas of said county, of Term , No.
, M.L.D. against C.D. and E.F., that the following described
property in your bailiwick be sold to satisfy the same, viz.:
(Here describe the property in full.)
Now, this is to command you that you expose the said property
to sale by public vendue and outcry, after due advertisement
according to law, and that return of the sale, with the moneys
realized thereby and this writ, you make to our said court on
the day of , Anno Domini 2 .
Witness the Honorable , President Judge
of our said court, this day of , Anno Domini
2 .
(b) Sale of property.--Advertisement of a sale shall be
made, and the deed to the purchaser shall be executed,
acknowledged and delivered, as in other real estate sales by the
sheriff.
§ 2531. Price and requirements of sale.
(a) Upset price.--The plaintiff in a judgment recovered on a
tax or municipal claim may, upon paying the sheriff's costs, fix
an upset price to be realized at a sale under the judgment
sufficient to pay all taxes and municipal claims and all accrued
but unfiled taxes and claims in full.
(b) Requirements.--No sale shall be made on a judgment
recovered on a tax or municipal claim except for a sum
sufficient to pay all taxes and municipal claims in full, except
as provided under this section, and the plaintiff in the
judgment may purchase the property at the sale, for that sum, if
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no one bids a higher price on the property, except when a
municipality is the real plaintiff in the judgment, and no one
else bids a sum sufficient to pay the sheriff's costs and all
taxes and municipal claims in full, the municipality may
purchase the property for the sheriff's costs on the property,
subject to the lien of all taxes and municipal claims and liens
not otherwise discharged by the sale under existing law.
(c) Purchase by municipality.--Upon a purchase by a
municipality for the sheriff's costs, any income received from
the property by the municipality in excess of that necessary for
the upkeep of the property, the payment of insurance premiums on
the property and the cost of improvements to the property, shall
be applied to the payment of the costs of the sale, then to
payment of all taxes liened and unliened, in the order of their
priority, the oldest being paid first, and then to municipal
claims in the same order.
§ 2532. Property of quasi-public corporations.
(a) General rule.--Where judgment is recovered upon a claim
on property named that is essential to the business of a quasi-
public corporation, the claimant shall have execution on the
claim as in other cases of judgments against quasi-public
corporations.
(b) Determination of value.--Upon the distribution of funds
realized by a sale of the franchises and the whole or any part
of the assets of the quasi-public corporation, the court shall
determine the actual value of the property bound by the lien,
and the claim shall be preferred, with the other claims, to the
extent of the value determined.
§ 2533. Sale of property subject to lien of tax or municipal
claims.
(a) Divestment by judicial sale.--The lien of a tax or a
municipal claim:
(1) Shall not be divested by a judicial sale of the
property liened where the amount due is indefinite or
undetermined or where the amount is not due and payable.
(2) Shall not be divested by a judicial sale of the
property liened if the proceeds of the sale may be
insufficient to discharge the lien of a tax or municipal
claim.
(b) Other tax and municipal claims.--Except as otherwise
provided, shall a judicial sale of the property liened, under a
judgment obtained on a tax or municipal claim, discharge the
lien of a tax or municipal claim other than that upon which the
sale is had, except to the extent that the proceeds realized are
sufficient for its payment after paying the costs, charges and
fees, including reasonable attorney fees, expenses of the sale
and of the writ upon which it was made, and any other prior tax
or municipal claims to which the funds may first be applicable.
(c) Priority.--The following shall apply:
(1) On any sale being made, all tax claims shall be paid
out of the proceeds as follows:
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(i) First, the oldest tax having priority.
(ii) Second, municipal claims, the oldest in point
of lien having priority.
(2) Mortgages, ground rents and other charges on or
estates in the property which were recorded, or created where
recording is not required, before any tax other than for the
current year accrue, or before the actual doing of the work
in front of or upon the particular property for which the
municipal claim is filed, shall not be disturbed by the sale
unless a prior lien is also discharged by the sale.
(d) Right of plaintiff to postpone sale.--The following
shall apply:
(1) In case the property is not sold for a sum
sufficient to pay all taxes and municipal claims, together
with the costs of the taxes and municipal claims, the
plaintiff may postpone the sale, without payment of costs,
and file a petition stating:
(i) That more than one year has elapsed since the
filing of the claim.
(ii) That the plaintiff has exposed the property to
sheriff's sale under the claim and was unable to obtain a
bid sufficient to pay the upset price in full.
(iii) If the plaintiff is not a municipality, that
the plaintiff will bid sufficient to pay the upset price,
and upon the production of searches or a title insurance
policy showing the state of the record and the ownership
of the property, and of all tax and municipal claims,
mortgages, ground rents or other charges on or estates in
the land, the court shall grant a rule upon all parties
shown to be interested to appear and show cause why a
decree should not be made that the property be sold,
freed and cleared of the property's respective claims,
mortgages, charges and estates of any kind.
(2) If, upon a hearing, the court is satisfied that
service has been made of the rule upon the parties respondent
in the manner provided in section 2545 (relating to rule to
show cause, decree, service and notice), and that the facts
stated in the petition are true, the court shall order and
decree that the property be sold at a subsequent sheriff's
sale day to be fixed by the court without further
advertisement, and the court may fix a common date and place
of sale for more than one property if the court deems a joint
sale to be advantageous.
(e) Sheriff's sale.--All property at sheriff's sale shall be
sold, clear of all claims, liens, mortgages, charges and estates
of any kind, to the highest bidder at the sale, and the proceeds
realized from the sheriff's sale shall be distributed in
accordance with the priority of claims.
(f) Purchaser.--The purchaser at a sheriff's sale shall take
an absolute title to the property sold, free and discharged of
all tax and municipal claims, liens, mortgages, charges and
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estates of any kind, and subject only to the right of redemption
as provided by law.
(g) Counties of the second class.--In counties of the second
class, upon return of the writ upon which the sale was made,
upon the expiration of the statutory right of redemption and if
no petition to set aside the sale is pending, the prothonotary
shall satisfy all tax claims and municipal claims divested by
the judicial sale in accordance with the order of court
authorizing the sale.
(h) Interested individuals.--An individual interested may,
at any time before the sale, pay the petitioner the whole of the
petitioner's claim, with interest, costs, charges, expenses,
fees and attorney fees, whereupon the proceedings on the
petition shall at once determine.
(i) Testimony.--For the purpose of enabling the petitioner
in a proceeding to give the notice required, the petitioner may
take the testimony of the defendant in the claim, or of any
other individual whom the petitioner may have reason to believe
has knowledge of the whereabouts of any of the parties
respondent, either by deposition, commission or rogatory
letters.
(j) Purchase by municipality.--The following shall apply:
(1) A municipality, being a claimant, shall have the
right to bid and become the purchaser of the property at a
sale and, while the property purchased is held and owned by a
county, city, borough, incorporated town, township, school
district or a body politic and corporate created as a
municipal authority under law, the property shall not be
subject to tax claims, unless the property is redeemed by the
former owner or other individual having the right to redeem,
as provided by law.
(2) If a municipality becomes the purchaser at sale, the
former owner or other individual desiring to redeem shall pay
all taxes and municipal claims accrued and chargeable against
the property prior to the sale of the property, together with
the costs and interest on the claims, and also all taxes and
claims, whether filed or not, which would have accrued and
become chargeable against the property had the property been
purchased at the sale by a party other than the municipality.
(k) Final judgment.--Upon the delivery by the sheriff of a
deed for a property sold under a tax or municipal claim, the
judgment upon which the sale was had shall be final and
conclusive as to all matters of defense which could have been
raised in the proceeding, including payment, and no error or
irregularity in obtaining or entering of the judgment shall
affect the validity the judgment.
§ 2534. Counties of the first class, recovery of judgment and
sale free from claims.
(a) Additional remedy.--In addition to the remedy under
sections 2530 (relating to execution of judgment) and 2533
(relating to sale of property subject to lien of tax or
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municipal claims), if a claimant in a county of the first class
has obtained a judgment on a tax or municipal claim, the
claimant may file a petition in the court in which the
proceeding is pending. The petition shall state the facts
necessary to show the right to sell, together with searches or a
title insurance policy, showing the state of the record,
ownership of the property and of all tax and municipal claims,
mortgages, ground rents or other charges on, or estates in, the
land, as shown by the official records of the county or the
political subdivision in which the real estate is located.
(b) Hearing.--Upon showing the facts and records under this
section, the court shall conduct a hearing with all interested
parties to appear and show cause why a decree should not be made
that the property be sold, freed and cleared of the respective
claims, mortgages, ground rents, charges and estates and without
any right of redemption after the sale. If upon a hearing, the
court is satisfied that service has been made under this
subsection upon all interested parties in accordance with
section 2545 (relating to rule to show cause, decree, service
and notice) and that the facts stated in the petition are true,
the court shall order and decree that the property be sold at a
subsequent sheriff's sale at a time to be fixed by the claimant,
at least one year after the date of the decree, clear of all
claims, liens, mortgages, ground rents, charges and estates of
any kind, to the highest bidder at the sale.
(c) Proceeds of the sale and final discharge of claims.--
Proceeds of the sale shall be distributed in accordance with the
priority of the claims, liens, mortgages, ground rents, charges
and estates, and the purchaser at the sale shall take and
forever thereafter have an absolute title to the property sold,
free and discharged of all tax and municipal claims, liens,
mortgages, ground rents, charges and estates of any kind and not
subject to any right of redemption.
(d) Advertisement.--Advertisement of the sale shall be made
and the deed to the purchaser shall be executed, acknowledged
and delivered as in other real estate sales by the sheriff,
provided that any individual interested may at any time prior to
the proposed sale pay all the costs of the proceedings,
including a reasonable fee for the necessary title search or
title insurance policy, to be fixed by the court and all tax and
municipal claims, penalties and interest charged against the
property. If an interested individual pays all costs under this
subsection prior to the sale, notice of this provision shall be
included with each service and publication of the rule.
(e) County of second class.--In addition to the remedy
prescribed in section 2530, whenever a municipality in a county
of the second class has obtained a judgment on a tax or
municipal claim, the county may file a petition in the court in
which the proceeding is pending. The petition shall state the
facts necessary to show the right to sell, a title search or a
title insurance policy showing the state of the record and the
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ownership of the property and all tax and municipal claims,
mortgages, ground rents or other charges on, or estates in, the
land as shown by the official records of the county or the
political subdivision in which the real estate is located.
(f) Hearing.--The court shall conduct a hearing with all
parties named in the petition to appear and show cause why a
decree shall not be made to sell the property free and clear of
all claims, mortgages, ground rents, charges and estates of any
kind and without any right of redemption after the sale. If,
upon a hearing, the court is satisfied that proper service has
been made on all interested parties in accordance with section
2545 and that the facts stated in the petition are true, the
court shall order and decree that the property be sold at a
subsequent sheriff's sale at a time fixed by the claimant, clear
of all claims, liens, mortgages, ground rents, charges and
estates of any kind, to the highest bidder at the sale.
(g) Proceeds of sale.--Proceeds realized from the sale shall
be distributed in accordance with the priority of claims, liens,
mortgages, ground rents, charges and estates and the purchaser
shall take and forever thereafter have an absolute title to the
property sold, free and discharged of all tax and municipal
claims, liens, mortgages, ground rents, charges and estates of
any kind and not subject to any right of redemption.
(h) Advertisement.--Advertisement of the sale shall be made
and the deed to the purchaser shall be executed, acknowledged
and delivered as in other real estate sales by the sheriff. An
interested individual may, at any time prior to the proposed
sale, pay all the costs, charges, expenses and fees and attorney
fees of the proceedings, including the cost for the title search
or title insurance policy, and all tax and municipal claims
charged against the property, whereupon the sale proceedings
shall at once terminate. Notice of this provision shall be
included with each service of the rule. In counties of the
second class, upon return of the writ on which the sale was made
and if no petition to set aside the sale is pending, the
prothonotary shall satisfy all tax claims and municipal claims
divested by the judicial sale.
(i) Deposition, commission or letter permitted.--For the
purpose of enabling the petitioner in a proceeding to give the
notice required, the court may take the testimony of the
defendant in the claim, or of any other individual whom the
court may have reason to believe has knowledge of the
whereabouts of any of the parties respondent, either by
deposition, commission or rogatory letters.
(j) Claimant permitted to bid.--A claimant shall have the
right to bid and become the purchaser of the property at a sale.
If the purchaser is a taxing authority within the county, the
property, while held and owned by the authority, shall not be
subject to tax claims.
(k) Deed delivery.--Upon the delivery by the sheriff of a
deed for a property sold under the provisions of this section,
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the judgment upon which the sale was had shall be final and
conclusive.
§ 2535. Cities of the first class, recovery of judgment and
sale free from claims.
(a) Additional remedies.--In addition to the remedies
prescribed in sections 2530 (relating to execution of judgment),
2533 (relating to sale of property subject to lien of tax or
municipal claims) and 2534 (relating to counties of the first
class, recovery of judgment and sale free from claims), in
cities of the first or second class and counties of the second
class and municipalities located within counties of the second
class, if a claimant has filed a tax or municipal claim in
accordance with the requirements of this chapter, the claimant
may file a petition in the court in which the proceeding is
pending, stating the facts necessary to show the right to sell,
together with searches or a title insurance policy, showing the
state of record and the ownership of the property and of all tax
and municipal claims, liens, mortgages, ground rents or other
charges on, or estates in, the land, as shown by the official
records of the city, county or political subdivision in which
the real estate is located.
(b) Hearing.--Upon a showing under this section, the court
shall conduct a hearing with all interested parties appearing to
show cause why a decree should not be made that the property be
sold, freed and cleared of the respective claims, liens,
mortgages, ground rents, charges and estates of any kind.
(c) Sale.--If, upon a hearing, the court is satisfied that
the facts stated in the petition are true and service has been
properly made in accordance with section 2545 (relating to rule
to show cause, decree, service and notice) , the court shall
order and decree that the property be sold at a subsequent
sheriff's sale at a time to be fixed by the claimant, clear of
all claims, liens, mortgages, ground rents, charges and estates
of any kind, to the highest bidder at the sale.
(d) Proceeds of sale.--After payment of the tax or municipal
lien, any remaining proceeds shall be distributed in accordance
with the priority of the remaining claims, liens, mortgages,
ground rents, charges and estates and the purchaser at the sale
shall take and forever thereafter have an absolute title to the
property sold, free and discharged of all tax and municipal
claims, liens, mortgages, ground rents, charges and estates of
any kind, subject only to the right of redemption as provided by
law. The date of the sale shall be advertised in at least one
newspaper of general circulation in the county in which the
property is located and in a legal periodical published therein,
if any.
(e) Deed.--The deed to the purchaser shall be executed,
acknowledged and delivered as in other real estate sales by the
sheriff. Deeds for property exposed for a sale under this
section shall not be executed, acknowledged and delivered any
sooner than 30 days nor later than 120 days after the purchaser
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pays the balance due to the sheriff for a sale held under this
section. A individual interested may, at any time prior to the
proposed sale, pay all the costs of the proceedings, including
the cost for the title search or title insurance policy, and all
tax and municipal claims, penalties and interest thereon,
charged against the property, and the proceedings on the
petition shall at once determine.
(f) Petition to prohibit transfer.--A city of the first or
second class may, within 30 days of a sale held under this
section, petition the court of common pleas to prohibit the
transfer of a deed for any property exposed for any sale under
this chapter that is located in that city to any purchaser who
is proven to meet any of the criteria specified in subsection
(g).
(g) Contents of petition.--The following shall apply:
(1) The petition of a city of the first or second class
shall allege that the purchaser has, over the three years
preceding the filing of the petition, exhibited a course of
conduct which demonstrates that a purchaser permitted an
uncorrected housing code violation to continue unabated after
being convicted of the violation and:
(i) failed to maintain property owned by the
purchaser in a reasonable manner such that the property
posed a threat to health, safety or property; or
(ii) permitted the use of property in an unsafe,
illegal or unsanitary manner such that the property posed
a threat to health, safety or property.
(2) An individual who acts as an agent for a purchaser
who sought to avoid the limitations placed on the purchase of
property by this section shall be subject to the restrictions
imposed by this section.
(3) Allegations under this subsection shall be proved by
a preponderance of the evidence. In ruling on the petition, a
court shall consider whether violations were caused by
malicious acts of a current nonowner occupant and the control
exercised by a purchaser in regard to the ownership interest
or rights with other properties.
(h) Name change.--A change of name or business status shall
not defeat the purpose of this section.
(i) Deposition, commission or letters permitted.--For the
purpose of enabling the petitioner in a proceeding to give the
notice required, the court may take the testimony of the
defendant in the claim, or of any other individual whom the
court may have reason to believe has knowledge of the
whereabouts of any of the parties respondent, either by
deposition, commission or rogatory letters.
(j) Claimant permitted to bid.--A claimant may bid and
become the purchaser of the property at a sale, and if the
purchaser is a taxing authority within the city or county, the
property, while held and owned by the taxing authority, shall
not be subject to tax claims unless the property is redeemed by
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the former owner or other individual having the right to redeem,
as provided by law. If a city, county or a taxing authority
within the city or county becomes the purchaser at the sale, the
former owner or other individuals, desiring to redeem, shall pay
all taxes and municipal claims accrued and chargeable against
the property prior to the sale, together with costs and
interest, and also all taxes and claims, whether filed or not,
which would have accrued and become chargeable against the
property had the same been purchased at the sale by some party
other than the city, county or a taxing authority within the
city or county.
(k) Final judgment.--Upon the delivery by the sheriff of a
deed for any property sold under this section, the judgment upon
which the sale was had shall thereupon and forever thereafter be
final and conclusive, and the validity of the judgment shall not
be questioned for any cause.
(l) Definitions.--As used in this section, the following
words and phrases shall have the meanings given to them in this
subsection unless the context clearly indicates otherwise:
"Purchaser." An individual, partner, limited or general
partner, shareholder, trustee, beneficiary any other individual
with an ownership interest or right in a business association,
sole proprietorship, partnership, limited partnership, S
corporation, C corporation, limited liability company or
corporation, trust, business trust or any other business
association.
"Uncorrected housing code violation." A conviction of a
violation of a building, housing, property maintenance or fire
code which is not remedied within six months of conviction.
"Violation." A conviction under a building, housing,
property maintenance or fire code which posed a threat to
health, safety or property, but not a conviction deemed by a
court to be de minimis.
§ 2536. Joining, service and sale.
(a) Joining properties.--If, with regard to two or more
properties, a municipality is authorized under section 2533
(relating to sale of property subject to lien of tax or
municipal claims), 2534 (relating to counties of the first
class, recovery of judgment and sale free from claims) or 2535
(relating to cities of the first class, recovery of judgment and
sale free from claims) to petition the court for the individual
sale of each property, free and clear of the property's
respective claims, liens, mortgages, charges and estates of any
kind, the municipality may join any number of the properties in
a single petition. The court may grant a rule upon all parties
shown to be interested in any of the properties to appear and
show cause why a decree should not be made that the properties
be sold together in one sale, free and clear of the properties'
respective claims, mortgages, charges and estates of any kind.
(b) Service and sale.--If, upon a hearing, the court is
satisfied that service has been made of the rule upon the
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parties in the manner provided in section 2545 (relating to rule
to show cause, decree, service and notice) and that the facts
stated in the petition are true, the court shall order and
decree, subject to applicable restrictions and limitations in
section 2533, 2534 or 2535, that the properties be sold together
at one sale at a subsequent sheriff's sale day, to be fixed by
the court without further advertisement, clear of all claims,
liens, mortgages, charges and estates of any kind, to the
highest bidder at the sale. The following shall apply:
(1) If a judicial sale of multiple properties is
ordered, any party shown to be interested in a particular
property may, at any time before the sale, pay the
municipality the whole of the claim relating to the
particular property, with interest, costs, charges, expenses,
fees and attorney fees, whereupon the proceedings on petition
with regard to that property shall at once determine.
(2) A judicial sale of multiple properties may not
diminish the right of redemption with regard to any
particular property that is a part of the sale.
§ 2537. Redemption.
(a) Process.--Except as provided under subsection (c), the
owner of a property sold under a tax or municipal claim, the
owner's assignees or any party whose lien or estate has been
discharged may redeem the property if the property is not
located in a city of the second class or a county of the second
class or a municipality located within the county of the second
class at any time within nine months from the date of the
acknowledgment of the sheriff's deed and if the property is
located in a city of the second class or a county of the second
class or a municipality located within the county of the second
class at any time within three months from the date of the
acknowledgment of the sheriff's deed, in accordance with the
following:
(1) The owner, assignee or a party whose lien or estate
been discharged shall pay all the following:
(i) The amount bid at the sale.
(ii) The cost of drawing, acknowledging and
recording the sheriff's deed.
(iii) The amount of all taxes and municipal claims,
whether not entered as liens, if actually paid.
(iv) The principal and interest of estates and
encumbrances not discharged by the sale and actually
paid.
(v) The insurance upon the property.
(vi) Other charges and necessary expenses of the
property, actually paid, less rents or other income from
the property.
(vii) A sum equal to interest at the rate of 10% per
annum from the time of each of the payments.
(2) If both owner and creditor desire to redeem, the
owner shall have the right to do so if the owner pays the
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creditor's claim in full.
(3) If more than one creditor desires to redeem, the
creditor who was lowest in lien at the time of sale shall
have the prior right, upon payment in full of the claim of a
creditor higher in lien.
(4) Within nine months if the property is not located in
a city of the second class or a county of the second class or
a municipality located within the county of the second class
or within three months if the property is located in a city
of the second class or a county of the second class or a
municipality located within the county of the second class,
the creditor who was lower in lien may redeem from a creditor
higher in lien who has already redeemed and the owner may
redeem from the higher and so on throughout, in each case by
paying the claim of the creditor whose right was higher.
(5) The creditor higher in lien may redeem from a
creditor lower in lien, unless the claim is paid. In each
case, the right must be exercised within the time specified
under this section .
(b) Redemption.--An individual entitled to redeem may
present a petition to the proper court in accordance with the
following:
(1) The petition shall state the facts and readiness to
pay the redemption money.
(2) The court shall grant a rule to show cause why the
purchaser should not reconvey to the individual the premises
sold.
(3) If, upon hearing, the court is satisfied of the
facts, the court shall make the rule absolute, and, upon
payment being made or tendered, shall enforce it by
attachment.
(c) Vacant property.--Notwithstanding any other provision of
law to the contrary, in a city, township, borough or
incorporated town, there shall be no redemption of vacant
property by an individual after the date of the acknowledgment
of the sheriff's deed. For the purposes of this subsection,
property shall be deemed to be "vacant property" unless the
property was continuously occupied by the same individual or
basic family unit as a residence for at least 90 days prior to
the date of the sale and continues to be occupied on the date of
the acknowledgment of the sheriff's deed.
§ 2538. Assignment and payment.
(a) Assignment.--A tax or municipal claim filed or to be
filed under this chapter and any judgment recovered may be
assigned or transferred to a third party, either absolutely or
as collateral security, for an amount to be determined by the
municipality or other assignor in accordance with the following:
(1) The lien of the tax or municipal claim assigned
shall continue as a tax or municipal claim in favor of the
assignee.
(2) An assignee, upon assignment or reassignment of the
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tax or municipal claim not originating as a use-plaintiff
claim of a nonmunicipality, shall have and enjoy the same
rights, privileges and remedies as were held by the assigning
municipality to enforce and collect the assigned tax or
municipal claim under this chapter or any other laws
applicable to the collection and enforcement of tax or
municipal claims.
(3) A third party, upon assignment or reassignment of a
use-plaintiff municipal claim originating with a
nonmunicipality, shall have and enjoy the same rights,
privileges and remedies as the original holder thereof to
enforce and collect the assigned use-plaintiff municipal
claim under the provisions of this chapter and any other laws
applicable to the collection and enforcement of use-plaintiff
municipal claims.
(4) A defendant, upon the assignment or reassignment of
the tax, municipal claim or use-plaintiff municipal claim to
a third party, shall have and enjoy the same rights and
defenses under the provisions of this chapter and any other
laws applicable to the collection and enforcement of taxes,
tax claims, municipal claims and use-plaintiff municipal
claims against the assignee that the defendant held against
the assignor.
(b) Payment.--If the tax or municipal claim has been paid in
full by one of several defendants, whether originally named as a
defendant or allowed to intervene and defend, the claim shall be
satisfied of record as to that defendant, and marked to that
defendant's use as against the other defendants, pro rata,
according to their respective interests in the property bound by
the claim.
§ 2539. Amendments and timing.
(a) Amendment.--A claim, petition, answer, replication,
scire facias, affidavit of defense or other paper filed of
record may be amended, by agreement of the parties or by leave
of the court upon petition for that purpose, under oath or
affirmation specifying the amendment desired, that the averments
are true in fact and that by mistake they were omitted from or
wrongfully stated in the particulars as to which amendment is
desired. The following shall apply:
(1) The amendment shall be of right, saving intervening
rights.
(2) No amendment of the claim shall be allowed after the
time for the amendment's filing has expired, if the amendment
undertakes to substitute an entirely different property from
that originally described in the claim.
(3) The description of the property may be amended so as
to be made more accurate, as in other cases of amendment.
(b) Timing.--The court may, for cause shown and filed of
record, enlarge the time for filing the affidavit of defense,
answer or replication, for issuing a scire facias or for
entering security, by rule or special or standing order. The
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following shall apply:
(1) A judgment by default may be opened by the court,
upon cause shown by intervenors or other defendants, as in
other cases.
(2) No enlargement of the time for issuing a scire
facias shall extend beyond the time provided for preserving
or retaining the lien.
§ 2540. General conduct.
The following shall apply to proceedings under this chapter:
(1) A rule granted under this chapter may be made
returnable when directed, either therein or by rule of court,
or by special or standing order.
(2) Each petition, answer or replication shall be under
oath or affirmation.
(3) Answers must be filed and served within 15 days
after service of the petition.
(4) Rules and replications must be filed within 15 days
after service of the last of the answers.
(5) Replications must be confined to a reply to new
matters stated in the answers.
(6) The facts averred by either party, and not denied in
the answer or replication of the other, shall be taken as
true in all subsequent proceedings in the cause, without the
necessity for proof, unless amended under this chapter.
(7) Any fact necessarily found by the court in finally
determining a rule shall also be taken as true in all
subsequent proceedings in the cause, without the necessity
for proof, unless either party, by writing filed and served
at least 10 days prior to the time fixed for trial, requires
that it be submitted to the jury.
§ 2541. Service of notice.
Unless otherwise provided under this chapter, each notice,
petition or rule shall be served in one of the following
methods:
(1) Upon counsel for the parties interested or upon the
parties themselves in the manner bills in equity are served.
(2) Upon the owner by leaving a copy with the party in
possession of the real estate.
(3) In a manner as the court shall direct.
§ 2542. Security.
If security is required to be given under this chapter, the
following shall apply:
(1) The security may be approved by the prothonotary,
subject to an appeal to the court.
(2) If the security is found to be insufficient, the
following shall apply:
(i) New security may be required within a given
time. If the security is not provided, the cause may
proceed with the same effect as if no security had been
given and the sureties shall remain liable.
(ii) By agreement of the parties, or upon approval
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by the court after notice, new security may be entered in
lieu of that originally taken and an exonerator entered
on the first bond.
(iii) The security given may be limited to a
particular property if clear of incumbrances, and the
security be entered as a lien upon the property.
§ 2543. Use-plaintiffs.
(a) Satisfaction.--In cases where there is a use-plaintiff,
if the claim is paid or otherwise satisfied or discharged before
or after filing, the use-plaintiff, or the use-plaintiff's legal
representatives, shall enter satisfaction if t he owner or any
other interested individual requests satisfaction. The request
shall be in accordance with the following:
(1) The owner or any other individual interested shall
make the request.
(2) The request shall be made by a written statement
showing how the claim was paid, satisfied or discharged, and
on the payment of costs, if any are due, to enter
satisfaction on the record of the claim.
(b) Refusal.--Refusal to satisfy the claim for a period of
60 days after notice served upon the use-plaintiff or the use-
plaintiff's agent or attorney shall subject the use-plaintiff to
a suit for penalty at the hands of the party aggrieved. A jury
shall determine a just sum not to exceed the amount of the
claim.
§ 2544. Notice of interest, registration and service.
(a) Notice of interest.--The following shall apply:
(1) An owner of real property located within a city of
the first class, a mortgagee of the property or an individual
having a lien or claim on or interest in the property shall
register a notice of interest with the department of the city
of the first class responsible for collection of tax and
municipal claims stating:
(i) the individual's name, residence and mailing
address; and
(ii) a description of the real property in which the
individual has an interest.
(2) A notice of interest shall not be required for a
mortgage or interest otherwise properly recorded in the
Office of the Recorder of Deeds, provided the document
contains a current address sufficient to satisfy the notice
requirements of this section. The interested party shall file
an amended registration as needed.
(b) Service.--After the completion and filing of a notice of
interest, a city of the first class shall serve all petitions,
rules and other notices required by this chapter on the
interested parties at the registered address.
(c) Regulations.--A city of the first class may promulgate
regulations for the bulk registration of notices of interest.
§ 2545. Rule to show cause, decree, service and notice.
(a) General Rule.--The following shall apply:
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(1) In cities of the first or second class and counties
of the second class and municipalities located within
counties of the second class, notice of a rule to show cause
why a property should not be sold free and clear of all
encumbrances issued by a court under a petition filed by a
claimant under section 2535 (relating to cities of the first
class, recovery of judgment and sale free from claims) shall
be served by the claimant upon owners, mortgagees, holders of
ground rents, liens and charges or estates of any kind as
follows:
(i) By posting a true and correct copy of the
petition and rule on the most public part of the
property.
(ii) By mailing by first class mail, to the address
registered by an interested party under section 2544
(relating to notice of interest, registration and
service), a true and correct copy of the petition and
rule.
(iii) By reviewing a title search, title insurance
policy or tax information certificate that identifies
interested parties of record who have not registered
their addresses under section 2544, the claimant shall
mail by first class mail and either by certified mail,
return receipt requested, or by registered mail to the
addresses that appear on the respective records relating
to the premises a true and correct copy of the petition
and rule.
(2) Service of notice under this section shall be deemed
accomplished on the date of mailing. The claimant shall file
an affidavit of service with the court prior to seeking a
decree ordering the sale of the premises.
(a.1) Counties of the second class.--In counties of the
second class and municipalities within the county of the second
class, notice of a rule to show cause why a property should not
be sold free and clear of all liens and encumbrances issued by a
court under a petition filed by a claimant under sections 2533
(relating to sale of property subject to lien of tax or
municipal claims) and 2534 (relating to counties of the first
class, recovery of judgment and sale free from claims) shall be
served by the claimant upon owners, mortgagees, holders of
ground rents, liens and charges or estates of any kind as
follows:
(1) By posting a true and correct copy of the petition
and rule on the most public part of the property.
(2) By reviewing a title search, title insurance policy
or tax information certificate that identifies interested
parties of record, the county or municipality shall mail by
first class mail and either by certified mail, return receipt
requested, or by certificate of mailing to the addresses that
appear on the respective records relating to the premises a
true and correct copy of the petition and rule. Notice under
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this section shall be deemed accomplished on the date of
mailing. The claimant shall file an affidavit of service with
the court prior to seeking a decree ordering the sale of the
premises.
(b) Notice.--The following shall apply:
(1) A party whose interest did not appear on a title
search, title insurance policy or tax information certificate
or who failed to accurately register the party's interest and
address under section 2544 shall not have standing to
complain of improper notice if the claimant complied with
subsection (a). This provision shall not apply if the
mortgage or interest was otherwise properly recorded in the
Office of the Recorder of Deeds or the Department of Real
Estate, as applicable, and the document contains a current
address sufficient to satisfy the notice requirements of this
section. Notwithstanding any other requirement under this
chapter or any other law to the contrary, the notice required
by subsection (a) shall constitute the only notice required
before a court may enter a decree ordering a tax sale.
(2) A party whose interest did not appear on a title
search or title insurance policy, because of the party's
failure to record or properly record its interest, shall not
have standing to complain of improper notice if the county or
municipality shall have complied with subsection (a.1). This
provision shall not apply if the mortgage or interest was
otherwise properly recorded in the Office of the Recorder of
Deeds or the Department of Real Estate, as applicable, and
the document contains a current address sufficient to satisfy
the notice requirements of this section. Notwithstanding any
other requirement under subsection (a.1), notice under this
section shall constitute the only notice required before a
court may enter a decree ordering a tax sale free and clear
of liens.
(c) Service.--The following shall apply:
(1) Notice of the court's decree ordering a tax sale,
together with the time, place and date of the sale, shall be
served by first class mail on all parties served with the
petition and rule, on any parties whose interest appeared of
record after the filing of the petition but before the
court's decree and on any creditor who has obtained judgment
against the owner of the premises prior to the date of the
decree. The claimant shall file an affidavit of service of
these notices prior to the date of the sale.
(2) Except in cities of the first class, in sales
pursuant to a petition filed by a claimant under section
2535, notice of the court's decree ordering a tax sale,
together with the time, place and date of the sale, shall be
served with the notice of sheriff's sale and shall be
provided to all parties entitled to receive notice under
Pa.R.C.P. No. 3129.1 (relating to sale of real property,
notice and affidavit).
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(3) Except in cities of the first class, in sales
pursuant to a petition filed by a claimant under section 2530
(relating to execution of judgment) , notice of the court's
decree ordering a sale, together with the time, place and
date of the sale, shall be served by first class mail upon
all parties who receive notice under Pa.R.C.P. No. 3129.1
prior to the initial sale. Notice under this paragraph shall
be provided no later than seven days prior to the continued
sale.
§ 2546. Validity of sale and time for filing contest.
All parties wishing to contest the validity of a sale
conducted under section 2535 (relating to cities of the first
class, recovery of judgment and sale free from claims),
including the sufficiency of a notice, and any party claiming to
have an interest in the premises which was not discharged by the
sale, must file a petition seeking to overturn the sale or to
establish the interest within three months of the acknowledgment
of the deed to the premises by the sheriff.
§ 2547. Cities of first class, time for proceeding on claims
and preclusion of sale for undue hardship.
Cities of the first class shall proceed on tax claims after
one year of delinquency, unless the owner or an interested party
enters into a payment agreement suitable to the claimant. The
finance director of the city may preclude the sale of a property
on a case-by-case basis if the sale would create an undue
hardship on the property owner or occupant.
§ 2548. Procedures available to tax claim bureaus.
The tax claim bureaus of the several counties may adopt and
use the procedures in this chapter in addition to the procedures
specified in the act of July 7, 1947 (P.L.1368, No.542), known
as the Real Estate Tax Sale Law.
§ 2549. Disposition of property acquired by cities of the
second class.
The mayor of a city of the second class may designate an
agency for the acquisition, administration, maintenance
and disposition of property acquired by the city of the second
class at a sheriff's sale. The city of the second class or its
agent may act as an agent for a taxing authority having a claim
against property under this section, pursuant to a locally
negotiated agreement that positively affirms the consent by each
taxing authority to allow the city of a second class to act as
an agent on each taxing authority's behalf. A city of the second
class acting as an agent for a taxing authority under this
section may take any actions necessary to protect and defend a
taxing authority's rights and obligations under this chapter.
Section 2. Section 3103 of Title 68 is amended by adding
definitions to read:
Amend Bill, page 2, line 26, by striking out "2" and
inserting
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Amend Bill, page 5, line 28, by striking out "3" where it
occurs the first time and inserting
4
Amend Bill, page 8, line 29, by striking out "4" and
inserting
5
Amend Bill, page 8, line 29, by striking out "THE ACT" and
inserting
Title 68
Amend Bill, page 10, line 8, by striking out "5" and
inserting
6
Amend Bill, page 11, line 12, by striking out "6" and
inserting
7
Amend Bill, page 12, line 18, by striking out "7" and
inserting
8
Amend Bill, page 16, line 2, by striking out "8" and
inserting
9
Amend Bill, page 16, line 2, by striking out "THE ACT" and
inserting
Title 68
Amend Bill, page 17, line 11, by striking out "9" and
inserting
10
Amend Bill, page 18, line 14, by striking out "10" and
inserting
11
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Amend Bill, page 19, line 20, by striking out "11" and
inserting
12
Amend Bill, page 22, line 22, by striking out "12" and
inserting
13
Amend Bill, page 22, line 22, by striking out "THE ACT" and
inserting
Title 68
Amend Bill, page 23, by inserting after line 30
Section 14. The addition of 68 Pa.C.S. § 2537(a)
introductory paragraph, (4) and (5) shall apply to a sheriff's
sale conducted on or after the effective date of this section.
Section 15. Repeals are as follows:
(1) The General Assembly declares that the repeal under
paragraph (2) is necessary to effectuate the addition of 68
Pa.C.S. Ch. 25.
(2) The act of May 16, 1923 (P.L.207, No.153), known as
the Municipal Claim and Tax Lien Law, is repealed.
Section 16. The addition of 68 Pa.C.S. Ch. 25 is a
continuation of the act of May 16, 1923 (P.L.207, No.153), known
as the Municipal Claim and Tax Lien Law. The following shall
apply:
(1) Except as otherwise provided in 68 Pa.C.S. Ch. 25,
all activities initiated under the Municipal Claim and Tax
Lien Law shall continue and remain in full force and effect
and may be completed under 68 Pa.C.S. Ch. 25. Orders,
regulations, rules and decisions which were made under the
Municipal Claim and Tax Lien Law and which are in effect on
the effective date of this section shall remain in full force
and effect until revoked, vacated or modified under 68
Pa.C.S. Ch. 25. Contracts, obligations and collective
bargaining agreements entered into under the Municipal Claim
and Tax Lien Law are not affected nor impaired by the repeal
of the Municipal Claim and Tax Lien Law.
(2) Except as provided under paragraph (3), any
difference in language between 68 Pa.C.S. Ch. 25 and the
Municipal Claim and Tax Lien Law is intended only to conform
to the style of the Pennsylvania Consolidated Statutes and is
not intended to change or affect the legislative intent,
judicial construction or administration and implementation of
the Municipal Claim and Tax Lien Law.
(3) Paragraph (2) does not apply to the addition of the
following provisions:
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(i) 68 Pa.C.S. § 2504(b).
(ii) 68 Pa.C.S. § 2535(a), (b), (c), (d), (f) and
(g).
(iii) 68 Pa.C.S. § 2537(a) introductory paragraph,
(4) and (5).
(iv) 68 Pa.C.S. § 2545(a)(1) introductory paragraph
and (iii) and (2), (a.1) introductory paragraph and (2),
(b) and (c)(1).
(v) 68 Pa.C.S. § 2549.
Amend Bill, page 24, line 1, by striking out "13" and
inserting
17
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See A05771 in
the context
of HB1795