Pennsylvania Real Estate Law: Deeds, Disclosures & Landlord Rules

Pennsylvania real estate law is a mix of state statutes and federal rules that govern how deeds are recorded, what sellers must disclose, how transfer taxes are calculated, what landlords and tenants owe each other, and how foreclosures, liens, and boundary disputes are handled. Each of the Commonwealth’s 67 counties runs its own recorder of deeds office and sets its own local tax add-ons, so filing costs and paperwork vary by location even when the underlying rules do not.

Recording a Deed Controls Ownership

Every deed transferring an interest in Pennsylvania real estate has to be recorded in the recorder of deeds office in the county where the property sits. Until a deed is recorded, it is void against any later buyer, mortgage holder, or judgment creditor who acts without knowledge of the earlier transfer.¹ You could hold a perfectly valid signed deed and still lose the property if someone else records a competing deed first and had no reason to know about yours.

Before recording, the signer must acknowledge the deed before a notary or other authorized official. Recording fees and the realty transfer tax are collected at the recorder’s office when you file. Most buyers also purchase title insurance. Pennsylvania does not require it by statute, but almost every mortgage lender demands a lender’s policy as a condition of the loan.

What Sellers Must Disclose

Pennsylvania’s Real Estate Seller Disclosure Law requires anyone selling residential property to complete a written disclosure form identifying all known problems with the home before the buyer signs an agreement of sale.² The statute defines a “material defect” as a condition that would significantly reduce the property’s value or create an unreasonable safety risk. A system being old or near the end of its useful life does not by itself make it defective.³

The form covers structural components, water intrusion, heating and electrical systems, and hazardous substances on the property. A seller who learns of a new defect after filling out the form has to update it before closing. If a seller intentionally or carelessly hides a known problem, the buyer can sue for actual damages within two years of final settlement, and courts can add punitive damages or other remedies.⁴

Some transfers are exempt from the disclosure requirement. Fiduciaries handling an estate, guardianship, or trust do not have to provide the form. Neither do court-ordered transfers, sales between spouses, or conveyances to direct family members.³ New construction is exempt when the buyer receives a written warranty of at least one year, the home passes a code inspection, and a certificate of occupancy has been issued.²

Lead Paint on Homes Built Before 1978

Federal law adds a disclosure layer for any home built before 1978. Sellers and landlords must tell buyers or tenants about known lead-based paint hazards and hand over the EPA pamphlet on lead safety. The Consumer Product Safety Commission banned lead-based paint for residential use in 1978, so older homes may still contain it.⁵ Buyers of pre-1978 housing also get a 10-day window to conduct a lead inspection before the sale becomes binding.

Renovation work on pre-1978 homes triggers additional federal rules. Contractors who disturb painted surfaces must be EPA lead-safe certified and follow specific containment practices. Homeowners renovating their own homes are generally exempt, but anyone hiring the work out or flipping houses for profit must use certified professionals.⁶

How Agents Represent You

The Real Estate Licensing and Registration Act governs how Pennsylvania-licensed brokers and agents work with buyers and sellers. At your first meeting to discuss real estate needs, the licensee has to give you a Consumer Notice explaining the types of representation available.⁷ An agency relationship is never presumed and only exists once you sign a written agreement with the broker.

Pennsylvania recognizes several forms of representation:

A seller’s agent works exclusively for the homeowner listing the property.
A buyer’s agent represents only the purchaser’s interests, even if the listing broker pays the commission.
A dual agent represents both sides and needs written consent from buyer and seller, because dual agency limits the fiduciary duties owed to each.
A designated agent arrangement lets a broker assign separate individual licensees within the same firm to represent buyer and seller independently.
A transaction licensee facilitates the deal without representing either party.

The Consumer Notice also has to state that commission rates and the length of a listing agreement are always negotiable. Each relationship carries duties of loyalty, confidentiality, and accountability for funds.⁸ Agents who fall short face civil penalties or license suspension from the State Real Estate Commission.

Realty Transfer Tax and Other Taxes at Sale

Pennsylvania charges a 1% state realty transfer tax on the value of property conveyed by deed or equivalent document.⁹ Local municipalities and school districts add their own percentage, commonly bringing the combined rate to about 2%.¹⁰ Some jurisdictions charge more. Buyer and seller are jointly responsible for the full amount, though the parties often split it by agreement.

When the deed does not state the full purchase price, when the transfer is a gift, or when an exemption is claimed, the parties have to file a Statement of Value (form REV-183) with the recorder of deeds. Failing to complete this form properly can result in the recorder refusing to record the deed.¹¹

Common Transfer Tax Exemptions

Not every deed triggers the tax. Pennsylvania regulations exclude several categories, including:

Conveyances between spouses, parents and children, grandparents and grandchildren, and siblings. If the recipient turns around and sells to a non-family member within one year, the tax applies as if the original owner had made the sale directly.
Transactions valued at $100 or less.
Transfers to government entities made as gifts, dedications, or in lieu of eminent domain.
Deeds in lieu of foreclosure where the mortgage holder receives the property.
Agricultural family farm transfers to a family farm corporation when the family directly owns at least 75% of the stock.

The full list of exclusions appears in the Pennsylvania regulations.¹²

Federal Capital Gains Exclusion

Separate from the transfer tax, federal tax law lets you exclude a large share of profit when you sell your primary residence. Individual filers can exclude up to $250,000 in capital gain, and married couples filing jointly can exclude up to $500,000, provided you owned and lived in the home for at least two of the five years before the sale.¹³ The exclusion applies on top of any Pennsylvania-level tax obligations.

FIRPTA Withholding for Foreign Sellers

When a foreign person sells Pennsylvania real estate, the buyer generally has to withhold 15% of the gross sales price under the Foreign Investment in Real Property Tax Act and send it to the IRS.¹⁴ An exception eliminates the withholding entirely when the price is $300,000 or less and the buyer plans to use the property as a personal residence for at least half the time during each of the first two years after purchase. Foreign sellers who expect to owe less than the withheld amount can apply for a withholding certificate from the IRS to reduce or eliminate the upfront hit.

Mortgage Disclosures and Servicing Transfers

Federal lending rules apply to every Pennsylvania mortgage. Under the TILA-RESPA Integrated Disclosure rules, your lender must provide a Loan Estimate within three business days of receiving your mortgage application and a Closing Disclosure at least three business days before closing.¹⁵ The Loan Estimate breaks down projected interest rates, monthly payments, and closing costs. The Closing Disclosure provides final numbers, and if certain key figures change after delivery, the lender may have to issue a corrected version and restart the three-day waiting period.

If your mortgage is later sold to a different servicer, both the old and new servicers must notify you. The current servicer must send notice at least 15 days before the transfer takes effect, and the new servicer must follow up within 15 days after.¹⁶ During the 60-day window around the transfer, you cannot be charged a late fee if you accidentally send your payment to the wrong servicer.

Buying in a Condo or Planned Community

If the property sits in a condominium or planned community governed by an owners’ association, you are entitled to a resale certificate before closing. Pennsylvania’s Uniform Condominium Act and Uniform Planned Community Act both require the association to furnish this certificate within 10 days of a unit owner’s request.¹⁷¹⁸

The certificate packs a lot of financial detail into one document. It covers monthly assessments, any unpaid dues or special assessments owed by the seller, the association’s capital reserves, its operating budget, insurance coverage, pending lawsuits, and whether the board knows of any code violations or hazardous conditions on the property. As a buyer, you are not liable for unpaid assessments beyond the amounts disclosed in the certificate, which protects you from inheriting hidden community debt.

If the seller never provides the certificate, the purchase contract is voidable by the buyer until the certificate is delivered and for five days afterward, or until the deed is actually conveyed, whichever comes first.¹⁷ This is one of the few situations in Pennsylvania real estate where a buyer can walk away from a signed contract with a statutory escape hatch.

Landlord and Tenant Rules

The Landlord and Tenant Act of 1951 provides the framework for residential leasing across all 67 counties. The same rules on security deposits, evictions, and notice apply whether you rent an apartment in Philadelphia or a house in rural Tioga County.

Security Deposits

During the first year of a lease, a landlord cannot require more than two months’ rent as a security deposit. After the first year, the cap drops to one month’s rent for the remainder of the tenancy.¹⁹ Any deposit exceeding $100 must sit in an escrow account at a bank or savings institution regulated by the Federal Reserve Board, FDIC, or the Pennsylvania Department of Banking, and the landlord has to tell the tenant in writing which bank holds the money.²⁰

After two years, escrowed deposits must move to an interest-bearing account, with the tenant receiving the interest minus a 1% annual administrative fee the landlord keeps. When the lease ends, the landlord has 30 days to either return the full deposit or send a written list of damages showing the deducted amounts and the remaining balance. A landlord who misses this 30-day deadline is liable for double the amount by which the deposit exceeds the actual damages.²¹ Proving actual damages falls entirely on the landlord.

Eviction Notice and Procedure

When a tenant falls behind on rent, the landlord has to serve a 10-day notice to quit before filing for eviction.²² The eviction case itself begins with a filing at the local Magisterial District Court. Self-help tactics like changing the locks or shutting off utilities are illegal and expose the landlord to liability. Even after a court grants a judgment for possession, only a constable or sheriff can carry out the physical removal.

Implied Warranty of Habitability

Pennsylvania courts recognize an implied warranty of habitability in every residential lease. The landlord must keep the rental unit safe and livable, and no lease provision can waive this duty. A lack of heat in winter, rodent infestations, a leaking roof, unsafe floors, and broken locks on doors and windows all fall below the habitability standard.²³ When a landlord fails to address serious habitability problems, tenants may have remedies including rent withholding or lease termination, depending on the circumstances.

Tenant Screening and Adverse Action Notices

Landlords who check a prospective tenant’s credit report have to follow the federal Fair Credit Reporting Act. If you deny an applicant, charge a higher deposit, or impose other unfavorable terms based on information in a credit report, you must send a written adverse action notice. That notice has to identify the credit reporting agency used, explain that the agency did not make the decision, and inform the applicant of their right to obtain a free copy of the report and dispute inaccurate information.²⁴ Landlords who skip this step face liability for actual damages or statutory damages up to $1,000 per violation if the failure was willful.

Fair Housing

The federal Fair Housing Act prohibits discrimination in housing based on seven protected classes: race, color, national origin, religion, sex, familial status, and disability.²⁵ These protections apply to sales, rentals, lending, advertising, and virtually every other part of a housing transaction. Pennsylvania’s own Human Relations Act adds further protections at the state level.

The disability provisions have practical implications for animal policies. As of mid-2026, HUD evaluates assistance animal requests under the same standard used by the Americans with Disabilities Act, meaning the animal must be individually trained to perform a specific task related to the person’s disability. Simply providing comfort or companionship no longer qualifies under HUD’s current enforcement policy. Unlike the ADA, HUD will still consider animals other than dogs as long as they meet the training requirement. This policy applies to Fair Housing Act complaints and does not override any separate state-level protections that may be broader.

Mechanic’s Liens

If you hire a contractor to build, renovate, or repair your property and do not pay, the contractor can file a mechanic’s lien against your real estate. Pennsylvania’s Mechanics’ Lien Law of 1963 gives contractors six months after completing their work to file a claim with the county prothonotary, as long as the unpaid amount exceeds $500.²⁶ Once filed, the lien attaches to the property itself and can block a sale or refinance until resolved.

Subcontractors face an added step. Before filing a lien, a subcontractor must give the property owner at least 30 days’ written notice of intent to file. That notice requirement exists because homeowners often have no direct relationship with the subcontractor and may not know the general contractor failed to pass along payment. After filing, the claimant must serve the owner with written notice of the filing within one month and file proof of service within 20 days. Missing any of these deadlines is grounds for the court to strike the lien.²⁶

Mortgage Foreclosure

Pennsylvania is a judicial foreclosure state, meaning a lender cannot take your home without going through the court system. Before filing suit on a residential mortgage, the lender must send either an Act 6 notice (giving 30 days to cure the default) or an Act 91 notice directing the borrower to a housing counseling agency. The complaint has to be filed in the county where the property sits and must itemize the amount owed.

If the borrower does not respond, or the lender wins at trial or on summary judgment, the court enters a judgment allowing a sheriff’s sale. The sheriff must post public notice at the property and the sheriff’s office at least 30 days before the sale, and publish notice in a local newspaper for three consecutive weeks starting at least 21 days in advance. After the auction, the sheriff files a distribution schedule and delivers a deed to the buyer within about 40 days. The full sequence from first missed payment to completed sheriff’s sale often takes well over a year, and borrowers can negotiate a loan modification or short sale at any point before the hammer falls.

Adverse Possession

Under Pennsylvania law, a person can acquire title to someone else’s land by occupying it openly and continuously for at least 21 years. The possession must be actual, exclusive, visible, notorious, and distinct from any rights the true owner may exercise.²⁷ A shorter 10-year period applies when the person claiming the land can show they entered under a written document or record that appeared to give them title, even if that document was legally defective. These claims most often arise along disputed boundary lines or on rural parcels used by a neighbor for decades without objection from the actual owner.

Flood Insurance

Pennsylvania’s geography makes flood risk a real concern in many river valleys and low-lying areas. If the property you are buying sits in a high-risk flood zone and you are financing it with a federally backed mortgage, your lender will require you to carry flood insurance through the National Flood Insurance Program or a private insurer.²⁸ The usual 30-day waiting period before a new NFIP policy takes effect does not apply when coverage is purchased to satisfy a lender’s requirement at closing or in response to a flood map change. Sellers are not required by Pennsylvania law to disclose flood zone status, but any history of flooding or water damage falls squarely within the seller disclosure form’s coverage of material defects.

1
Pennsylvania General Assembly. Pennsylvania Code 21 P.S. 351 – Recording of Deeds
2
Pennsylvania General Assembly. Pennsylvania Code 68 Pa.C.S. Chapter 73 – Seller Disclosures
3
Pennsylvania Department of State. Pennsylvania Code 68 – Residential Real Estate Transfers Law
4
Pennsylvania General Assembly. Pennsylvania Consolidated Statutes 68-7311 – Failure to Disclose
5
United States Environmental Protection Agency. Lead-Based Paint Disclosure Rule – Section 1018 of Title X
6
United States Environmental Protection Agency. Lead Renovation, Repair and Painting Program
7
Pennsylvania General Assembly. Pennsylvania Code 63 P.S. 455.608 – Information to Be Given at Initial Interview
8
Pennsylvania General Assembly. Pennsylvania Code – Real Estate Licensing and Registration Act
9
Pennsylvania Department of Revenue. Realty Transfer Tax
10
Bucks County, PA. Transfer Tax
11
Pennsylvania Department of Revenue. Realty Transfer Tax Statement of Value – REV-183
12
Legal Information Institute. Pennsylvania Code 61 Pa. Code 91.193 – Excluded Transactions
13
Internal Revenue Service. Sale of Your Home
14
Internal Revenue Service. FIRPTA Withholding
15
Consumer Financial Protection Bureau. TILA-RESPA Integrated Disclosures
16
Consumer Financial Protection Bureau. Mortgage Servicing Transfers
17
Pennsylvania General Assembly. Pennsylvania Consolidated Statutes 68-3407 – Resales of Units
18
Pennsylvania General Assembly. Pennsylvania Consolidated Statutes 68-5407 – Resales of Units
19
Pennsylvania General Assembly. Pennsylvania Code 68 P.S. 250.511a – Escrow Funds Limited
20
Pennsylvania General Assembly. Pennsylvania Code 68 P.S. 250.511b – Escrow Funds Required
21
Pennsylvania General Assembly. Pennsylvania Code 68 P.S. 250.512 – Recovery of Improperly Held Deposits
22
New York Codes, Rules and Regulations. Pennsylvania Code 68 P.S. 250.501 – Notice to Quit
23
Pennsylvania Office of Attorney General. Consumer Guide to Tenant and Landlord Rights
24
Office of the Law Revision Counsel. United States Code 15 USC 1681m – Duties of Users Taking Adverse Actions
25
U.S. Department of Housing and Urban Development. Housing Discrimination Under the Fair Housing Act
26
Pennsylvania General Assembly. Pennsylvania Code – Mechanics Lien Law of 1963
27
Pennsylvania General Assembly. Pennsylvania Code 42 Pa.C.S. 5527.1 – Adverse Possession
28
FEMA. Flood Insurance