Pennsylvania real estate law combines state statutes governing seller disclosures, deeds, transfer taxes, and the landlord-tenant relationship with federal rules on lead paint, fair housing, and capital gains. If you are buying, selling, owning, or renting property in the Commonwealth, the rules below are the ones that will actually show up in your transaction or your lease.
What Sellers Must Disclose
Pennsylvania’s Real Estate Seller Disclosure Law requires anyone selling residential property to give the buyer a written disclosure of known material defects before the buyer signs an agreement of sale.1Pennsylvania General Assembly. Pennsylvania Code 68 – Real Estate Seller Disclosure Law The key word is “known.” You are not required to hire an inspector or go looking for problems, but you cannot stay silent about ones you already know about.
The disclosure form runs through the foundation and basement, roof and attic, plumbing and sewage, heating and cooling, electrical wiring, and environmental concerns such as soil stability and drainage. It also asks specifically about radon test results and lead-based paint. Legal issues attached to the property belong on the form too, including easements, boundary disputes, and zoning violations. The obligation falls on the seller personally, so a real estate agent is not liable for defects the seller concealed from them.
Not every sale triggers the disclosure. Transfers handled by a fiduciary during estate administration, guardianship, or trust management are exempt. New construction that has never been occupied is also exempt as long as the buyer receives a written warranty of at least one year, the home passed a building code inspection, and a certificate of occupancy was issued.2Pennsylvania Department of State. Residential Real Estate Transfers Law
A seller who willfully or negligently fails to disclose a known defect can be sued for actual damages, and courts can add punitive damages in egregious cases.3Pennsylvania General Assembly. Pennsylvania Code 68 – Real Estate Seller Disclosure Law – Section: Failure to Comply But buyers cannot sue over defects that were properly disclosed before signing, defects that developed after the agreement was signed, or problems that first appeared after settlement. In practice, the form protects a careful seller almost as much as it protects the buyer.
Lead Paint Disclosure for Pre-1978 Homes
If the house was built before 1978, a separate federal rule applies no matter what the Pennsylvania form says. Before any contract is signed, the seller must give the buyer the EPA pamphlet “Protect Your Family from Lead in Your Home,” disclose any known lead paint hazards and where they are, and turn over any existing test reports or inspection records.4United States Environmental Protection Agency. Lead-Based Paint Disclosure Rule Fact Sheet
Buyers then get a 10-day window to arrange a lead paint inspection or risk assessment at their own expense.5U.S. Environmental Protection Agency. Real Estate Disclosures about Potential Lead Hazards The two sides can agree in writing to extend or shorten that period, and the buyer can waive the inspection. Sellers and agents must keep signed copies of the disclosure for three years after the sale closes.
Realty Transfer Tax at Closing
Pennsylvania charges a 1% state realty transfer tax on the value of property conveyed by deed.6Commonwealth of Pennsylvania. Realty Transfer Tax Local municipalities and school districts stack their own transfer taxes on top. In most counties the local portion is also 1%, which brings the combined rate to about 2%. Philadelphia is the outlier at a combined 4.578%, with the city alone accounting for 3.578%.7City of Philadelphia. Philly’s Realty Transfer Tax Rate Is Now 4.578% On a $400,000 home that gap means roughly $8,000 in a typical county versus more than $18,000 in Philadelphia.
The tax is paid to the county Recorder of Deeds when the deed is filed. State law does not say who pays. Custom in most of Pennsylvania is a 50/50 split, but this is a negotiable contract term.
Common Exemptions
Several categories of transfers escape the tax:
- Transfers between spouses, parent and child (or child’s spouse), siblings (or sibling’s spouse), stepparent and stepchild, and grandparent and grandchild. If the recipient then sells to an outsider within one year, the tax applies as if the original owner had made the sale.
- Transfers between former spouses as part of a divorce settlement, when the property was acquired before the divorce decree.
- Moving property into a living trust from the trust’s creator, or back out to the creator.
- Property passing through a will or intestate succession.
The Recorder of Deeds will ask for documentation to verify any claimed exemption, such as a copy of the trust or proof of the family relationship.8Pennsylvania General Assembly. Pennsylvania Statutes Title 72 PS Taxation and Fiscal Affairs 8102-C.3
Choosing and Recording the Deed
Pennsylvania uses four main deed types, and the one your sale uses determines how much legal protection you walk away with.
- A general warranty deed is the strongest. The seller guarantees clear title and promises to defend against any claims, including ones that predate their ownership. This is standard for most residential sales.
- A special warranty deed covers only the seller’s own period of ownership. Anything earlier is your risk.
- A bargain and sale deed transfers whatever title the seller holds with no guarantees about liens or encumbrances. Common in foreclosure sales.
- A quitclaim deed transfers whatever interest the seller may have, with no promise they have any interest at all. Typical between family members or to clear title defects, not for arm’s-length sales.
Recording and Title Insurance
After closing, the signed and notarized deed has to be filed with the county Recorder of Deeds. Recording fees vary by county, and the deed must come in with a Statement of Value form unless the full purchase price is written on the deed itself.
Recording is not just paperwork. Once indexed, the deed gives constructive notice to the world that you own the property. An unrecorded deed can leave you fighting someone else who claims an interest in the same property, and it causes problems when you later try to sell, refinance, or take out a home equity loan.
Title insurance comes in two forms. A lender’s policy is required by nearly every mortgage company and protects the lender if a title defect surfaces later. An owner’s policy is optional and protects you directly. If an old lien or boundary dispute emerges after closing, the owner’s policy pays to clear it or compensates you for the loss. Without one, those costs fall on you.
Landlord and Tenant Rules
Security Deposits
Pennsylvania’s Landlord and Tenant Act caps the security deposit at two months’ rent during the first year of a lease and one month’s rent after that. Any deposit over $100 must be held in an escrow account at a federally or state-regulated financial institution, and the landlord has to give written notice of the bank’s name, address, and the amount held. After the first two years of the tenancy, the escrow account must be interest-bearing, and the tenant receives the accrued interest annually on the lease anniversary, minus a 1% administrative fee the landlord may keep.
When a lease ends or the tenant surrenders the unit, the landlord has 30 days to return the full deposit (plus any unpaid interest) or send a written list of damages along with the balance owed.9Pennsylvania General Assembly. Pennsylvania Statutes Title 68 PS Real and Personal Property 250.512 Missing the 30-day deadline costs the landlord the right to withhold anything for damages. If the landlord keeps more than the actual damages justify and does not return the excess within 30 days, the tenant can sue for double the amount wrongfully withheld. The burden of proving the damages rests on the landlord.
Notice to Quit Before Eviction
A landlord cannot file for eviction without first serving a written notice to quit. The required notice period depends on the reason and the lease length:
- Unpaid rent: 10 days from the date the notice is served.10Pennsylvania General Assembly. Pennsylvania Code 68 PS 250.501 – The Landlord and Tenant Act of 1951
- Lease expiration or other breach on a lease of one year or less, or month-to-month: 15 days.
- Lease expiration or other breach on a lease longer than one year: 30 days.
These are minimums before the landlord can file a complaint with the local magisterial district judge. The notice itself does not end the tenancy. The landlord still needs a court order to remove a tenant who refuses to leave, and self-help evictions such as changing locks or shutting off utilities are illegal.
Implied Warranty of Habitability
Every residential lease in Pennsylvania carries an implied warranty of habitability that the lease cannot waive.11Pennsylvania Office of Attorney General. Consumer Guide to Tenant and Landlord Rights The landlord has an ongoing duty to keep the unit safe and livable. Breaches include lack of heat in winter, no hot or cold running water, rodent infestations, leaking roofs, unsafe floors or stairs, and broken locks. Tenants facing these conditions should document them and notify the landlord in writing. If the landlord does nothing, remedies can include rent withholding, repair-and-deduct, or lease termination depending on severity.
Fair Housing Protections
The federal Fair Housing Act prohibits discrimination in the sale, rental, and financing of housing based on seven protected characteristics: race, color, religion, sex, familial status, national origin, and disability.12Office of the Law Revision Counsel. 42 USC 3604 – Discrimination in the Sale or Rental of Housing These protections apply to nearly every stage of a transaction, from advertising and showings to rental terms and mortgage approvals.
Pennsylvania’s Human Relations Act adds two more protected classes: age, and use of a guide or support animal (including handlers and trainers of those animals).13Pennsylvania General Assembly. Pennsylvania Human Relations Act The state law also lists ancestry separately from national origin. A landlord who imposes pet fees or breed restrictions on a service animal or emotional support animal violates both federal and state law, because those policies do not apply to assistance animals. Landlords can request documentation from a treatment provider when the disability or need is not apparent, but they cannot demand specific diagnostic details.
Tax Benefits When You Sell or Own
Capital Gains Exclusion on Your Primary Home
When you sell your primary residence at a profit, federal law lets you exclude up to $250,000 of the gain from income tax, or up to $500,000 if you file jointly.14Office of the Law Revision Counsel. 26 USC 121 – Exclusion of Gain from Sale of Principal Residence You must have owned and used the home as your principal residence for at least two of the five years before the sale. For married couples claiming the full $500,000, at least one spouse must meet the ownership test, both must meet the use test, and neither can have claimed the exclusion on another home in the prior two years. A surviving spouse keeps the full $500,000 exclusion if the sale happens within two years of the other spouse’s death, even when filing as single.
Section 1031 Like-Kind Exchanges
Investors selling rental or commercial real estate can defer capital gains tax by rolling the proceeds into a replacement property through a Section 1031 exchange. The timelines are strict: identify replacement properties within 45 days of selling the original, and close on the replacement within 180 days.15Office of the Law Revision Counsel. 26 USC 1031 – Exchange of Real Property Held for Productive Use or Investment Miss either deadline and the exchange is disqualified, which means capital gains tax on the full profit from the original sale. Section 1031 does not apply to primary residences or to properties flipped for quick resale.
Mortgage Interest Deduction
If you itemize, you can deduct interest on up to $750,000 of mortgage debt used to buy, build, or substantially improve your home ($375,000 if married filing separately).16Internal Revenue Service. Publication 936 – Home Mortgage Interest Deduction Mortgages taken out before December 16, 2017 are grandfathered at the older $1 million limit. The deduction only helps if your total itemized deductions exceed the standard deduction.
Pennsylvania’s Property Tax/Rent Rebate
Pennsylvania runs a Property Tax/Rent Rebate Program for homeowners and renters age 65 or older, widows and widowers age 50 or older, and people with disabilities age 18 or older. Household income must be $48,110 or less, with only half of Social Security income counted toward that threshold. Rebate amounts depend on income. The application deadline for the current cycle is June 30, 2026.
The Closing Timeline
Pennsylvania does not require an attorney at closing. Many buyers hire one anyway, particularly for complex transactions or when title issues surface. Attorney or not, federal lending rules set the rhythm of the final days.
Your lender must deliver the Closing Disclosure at least three business days before closing.17Consumer Financial Protection Bureau. TILA-RESPA Integrated Disclosure FAQs This document breaks down every cost, from loan terms and monthly payment to transfer taxes and recording fees. If significant changes happen after you receive it (a change in the annual percentage rate, or a prepayment penalty added, for example) the lender must issue a corrected version and restart the three-day clock. Reviewing the Closing Disclosure against your earlier Loan Estimate is the best way to catch surprise charges before you sign.
After closing, the settlement agent or title company files the deed with the county Recorder of Deeds, pays the transfer taxes, and reports the transaction to the IRS on Form 1099-S.18Internal Revenue Service. Instructions for Form 1099-S The 1099-S reports gross proceeds. Even when your profit falls inside the Section 121 exclusion and you owe no tax, the sale is still reported, so keep your closing documents organized for your return and for any later questions from the IRS.