“Bidder Beware: Act 33's New Rules for Tax Sales”

Article by Jennifer Karpchuk on “Bidder Beware: Act 33's New Rules for Tax Sales”

In an article published in The Legal Intelligencer on August 5, 2021, Philadelphia-based Shareholder Jennifer Karpchuk discusses the Pennsylvania legislature’s new bill, which goes into effect on August 29, that creates some changes to the current tax sale process for upset sales and judicial sales of property in certain jurisdictions. She explains that this change applies to any county, city, municipality, school district or other general-purpose government unit in the commonwealth, with the exception of the cities of Philadelphia, Pittsburgh, Scranton, and the county of Allegheny.

“Pursuant to the Real Estate Tax Sale Law (RETSL), county tax claim bureaus are generally responsible for the collection of delinquent real estate taxes,” explains Karpchuk. “The initial attempt to sell a property is known as an upset sale. The tax claim bureau is required to provide an owner with notice and opportunity to cure before the property is offered for sale. If a tax claim bureau conducts an upset sale and no sufficient bid is received, then the bureau may (under certain situations must) file a petition with the Common Pleas Court to hold a judicial sale.”

Karpchuk outlines the new rules established by Act 33 and explains that since it made some important changes to the bidding process at upset sales and judicial sales, potential bidders should take note and ensure compliance by August. 29.

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