Pennsylvania Tax Lien Certificates

Type of Tax Sales in Pennsylvania Counties

Pennsylvania holds “Public Oral Bid Auctions” when property has been delinquent for a set period of time. The auction is for deed to the property. They may be called “Sheriff’s Sales” as well.

When are the auctions held?

Each county or township may hold auctions throughout the year, but most auctions take place in September.

The Tax Lien Process in Pennsylvania

Once the property taxes become delinquent steps are taken to collect on those taxes. They are sent to the Tax Claim Bureau for the county in which the property is located. The Tax Claim Bureau then takes the required steps to collect on those taxes as provided by Pennsylvania Law. When no action is taken by the owner of the property, the property is sold at an “Open Bid Public Auction.” The minimum bid at the auction will be the sum of taxes owed, interest, other administrative charges, plus all taxes owed (liens) to the state of Pennsylvania, which may be municipal, city, town, or school district taxes. The tax list distributed by the county should list all liens against the property, but you should double check to make sure you are aware of all liens.
Once the property is sold at auction, the former owner has no “Right of Redemption.” This means that you have immediate ownership rights to the property. The last chance the owner has to pay the taxes owed is the day before the auction. Most counties will require you to pay a portion of the bid immediately, with the remaining balance to be paid before you are issued the deed. Once the sum has been paid, the Tax Claim Bureau will issue and record the deed. The Tax Claim Bureau, Sheriff, or a third party may conduct auctions.

Here's an example of how a TLC purchase could work in Pennsylvania:

Property Taxes owed: $4,000.00

State Lien: $1,000.00

City Utility Lien: $500.00

Minimum Bid: $5,500.00

The Auction will start with the $5,500.00 minimum bid. Remember, if you are the winning bidder, there isn’t a redemption period for the former owner. You are deeded the property by the Tax Claims Bureau.