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Property Tax Certificates in PA: Risks Title Companies Must Address

Picture of Paul Soucek

When clearing title in Pennsylvania, relying solely on a standard property tax certificate can leave dangerous gaps. While most title professionals know about decentralized taxing and interim bills, there are critical issues that often go unnoticed—and they can derail closings or create post-policy claims.

1. Municipal & Utility Liens Beyond County Tax Certificates

County-issued tax certificates only cover property taxes. But municipalities often impose separate charges for trash, sewer, stormwater, and other services. These liens:

  • Don’t appear on standard tax certificates
  • Can escalate quickly and cloud title after closing

Failing to check these systems means exposing your client—and your title policy—to unnecessary risk.

2. Tax Claim Bureau Sales and Redemption Rights

Pennsylvania’s Tax Claim Bureau enforces delinquent taxes through:

  • Upset Sales: Buyer takes title subject to liens and mortgages.
  • Judicial Sales: Property sold “free and clear” except ground rents.

Title companies must confirm:

  • Sale type and compliance with statutory notice requirements
  • Whether redemption rights still apply—especially after Upset Sales

Ignoring these details can lead to defective title claims.

3. Interim Tax Bills from Property Improvements

Renovations like additions or decks often trigger reassessments and interim tax bills. These bills:

  • Are issued after the tax certificate but before closing
  • Rarely show up in standard searches

Without checking assessor and permit records, these liabilities can blindside your closing.

4. Fragmented Systems and Title Insurance Gaps

Pennsylvania’s decentralized tax structure means:

  • School taxes may be collected by third-party agencies
  • Municipal liens may not be recorded consistently

Title insurance often excludes issues not discoverable from public records, leaving your client exposed.

Best Practices for Title Companies

  • Go beyond county certificates—check municipal and utility billing systems
  • Review assessor and permitting data for pending reassessments
  • Validate Tax Claim Bureau sale type and redemption rights
  • Investigate third-party school tax collectors

Why Partner with COCRS?

COCRS provides comprehensive tax research that standard certificates miss:

  • Municipal and utility lien checks
  • Assessor and permit review for interim bills
  • Tax Claim Bureau compliance and redemption analysis
  • Verification of all taxing bodies, including third-party collectors

Call to Action

Don’t let hidden liens or tax sale complications jeopardize your closing.
Contact COCRS today for a complete, reliable tax profile that protects your clients and your reputation.