SENATE AMENDED
PRIOR PRINTER'S NO. 75 PRINTER'S NO. 4346
No. 68 Session of 1989
INTRODUCED BY WILLIAMS, KOSINSKI, ROBINSON, TRELLO, DALEY,
EVANS, HARPER AND JAMES, JANUARY 23, 1989
AS AMENDED ON THIRD CONSIDERATION, IN SENATE,
NOVEMBER 20, 1990
AN ACT
1 Amending the act of May 16, 1923 (P.L.207, No.153), entitled "An
2 act providing when, how, upon what property, and to what
3 extent, liens shall be allowed for taxes and for municipal
4 improvements, for the removal of nuisances, and for water
5 rents or rates, sewer rates, and lighting rates; for the
6 procedure upon claims filed therefor; the methods for
7 preserving such liens and enforcing payment of such claims;
8 the effect of judicial sales of the properties liened; the
9 distribution of the proceeds of such sales, and the
10 redemption of the property therefrom; for the lien and
11 collection of certain taxes heretofore assessed, and of
12 claims for municipal improvements made and nuisances removed,
13 within six months before the passage of this act; and for the
14 procedure on tax and municipal claims filed under other and
15 prior acts of Assembly," restricting redemption of property
16 after sale pursuant to a tax or municipal claim in cities of
17 the first class REGULATING MUNICIPAL CLAIMS AND LIENS. <--
18 The General Assembly of the Commonwealth of Pennsylvania
19 hereby enacts as follows:
20 Section 1. Section 32 of the act of May 16, 1923 (P.L.207, <--
21 No.153), referred to as the Municipal Claim and Tax Lien Law,
22 SECTION 1. SECTION 3 OF THE ACT OF MAY 16, 1923 (P.L.207, <--
23 NO.153), REFERRED TO AS THE MUNICIPAL CLAIM AND TAX LIEN LAW,
24 AMENDED AUGUST 1, 1963 (P.L.439, NO.231), IS AMENDED TO READ:
1 SECTION 3. (A) ALL MUNICIPAL CLAIMS WHICH MAY HEREAFTER BE
2 LAWFULLY IMPOSED OR ASSESSED ON ANY PROPERTY IN THIS
3 COMMONWEALTH, AND ALL SUCH CLAIMS HERETOFORE LAWFULLY IMPOSED OR
4 ASSESSED WITHIN SIX MONTHS BEFORE THE PASSAGE OF THIS ACT AND
5 NOT YET LIENED, IN THE MANNER AND TO THE EXTENT HEREINAFTER SET
6 FORTH, SHALL BE AND THEY ARE HEREBY DECLARED TO BE A LIEN ON
7 SAID PROPERTY, TOGETHER WITH ALL CHARGES, EXPENSES, AND FEES
8 ADDED THERETO FOR FAILURE TO PAY PROMPTLY; AND SAID LIENS SHALL
9 ARISE WHEN LAWFULLY IMPOSED AND ASSESSED AND SHALL HAVE PRIORITY
10 TO AND BE FULLY PAID AND SATISFIED OUT OF THE PROCEEDS OF ANY
11 JUDICIAL SALE OF SAID PROPERTY, BEFORE ANY OTHER OBLIGATION,
12 JUDGMENT, CLAIM, LIEN, OR ESTATE WITH WHICH THE SAID PROPERTY
13 MAY BECOME CHARGED, OR FOR WHICH IT MAY BECOME LIABLE, SAVE AND
14 EXCEPT ONLY THE COSTS OF THE SALE AND OF THE WRIT UPON WHICH IT
15 IS MADE, AND THE TAXES IMPOSED OR ASSESSED UPON SAID PROPERTY.
16 (B) WITH THE EXCEPTION OF THOSE CLAIMS WHICH HAVE BEEN
17 ASSIGNED, ANY MUNICIPAL CLAIM, INCLUDING INTEREST, PENALTY AND
18 COSTS, IMPOSED BY A CITY OF THE FIRST CLASS, SHALL BE A [LIEN]
19 JUDGMENT ONLY AGAINST THE SAID PROPERTY [AFTER] WHEN THE LIEN
20 HAS BEEN DOCKETED BY THE PROTHONOTARY. THE DOCKETING OF THE LIEN
21 SHALL BE GIVEN THE EFFECT OF A JUDGMENT AGAINST THE SAID
22 PROPERTY ONLY WITH RESPECT TO WHICH THE CLAIM IS FILED AS A
23 LIEN. THE PROTHONOTARY SHALL [ENTER THE CLAIM IN THE JUDGMENT
24 INDEX.] MAINTAIN AN IN REM INDEX, THE FORM AND LOCATION OF WHICH
25 SHALL BE WITHIN THE PROTHONOTARY'S DISCRETION. ALL TAX CLAIMS,
26 WATER RENTS OR RATES, LIGHTING RATES, POWER RATES AND SEWER
27 RATES HERETOFORE FILED ARE HEREBY RATIFIED, CONFIRMED AND MADE
28 VALID SUBSISTING LIENS AS OF THE DATE OF THEIR ORIGINAL FILING.
29 (C) A WRIT OF EXECUTION MAY ISSUE DIRECTLY WITHOUT
30 PROSECUTION TO JUDGMENT OF A WRIT OF SCIRE FACIAS. ANY PROPERTY
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1 SOLD IN EXECUTION SHALL BE SOLD IN COMPLIANCE WITH THE
2 PROVISIONS OF SECTION 31.2.
3 SECTION 2. SECTION 32 OF THE ACT, amended or added August
4 26, 1965 (P.L.383, No.199) and July 10, 1986 (P.L.1236, No.113),
5 is amended to read:
6 Section 32. (a) The owner of any property sold under a tax
7 or municipal claim, or his assignees, or any party whose lien or
8 estate has been discharged thereby, may, except as provided in
9 [subsection (c)] subsections (c) and (d) of this section, redeem
10 the same at any time within one year from the date of the
11 acknowledgment of the sheriff's deed therefor, upon payment of
12 the amount bid at such sale; the cost of drawing, acknowledging,
13 and recording the sheriff's deed; the amount of all taxes and
14 municipal claims, whether not entered as liens, if actually
15 paid; the principal and interest of estates and encumbrances,
16 not discharged by the sale and actually paid; the insurance upon
17 the property, and other charges and necessary expenses of the
18 property, actually paid, less rents or other income therefrom,
19 and a sum equal to interest at the rate of ten per centum per
20 annum thereon, from the time of each of such payments. If both
21 owner and creditor desire to redeem, the owner shall have the
22 right so to do only in case he pays the creditor's claim in
23 full. If more than one creditor desires to redeem, the one who
24 was lowest in lien at the time of sale shall have the prior
25 right, upon payment in full of the claim of the one higher in
26 lien. Within the year, one who was lower in lien may redeem from
27 one higher in lien who has already redeemed, and the owner may
28 redeem from him; and so on throughout, in each case by paying
29 the claim of the one whose right was higher; and one higher in
30 lien may redeem from one lower in lien, unless his claim is
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1 paid; but in each case the right must be exercised within the
2 year.
3 (b) Any person entitled to redeem may present his petition
4 to the proper court, setting forth the facts, and his readiness
5 to pay the redemption money; whereupon the court shall grant a
6 rule to show cause why the purchaser should not reconvey to him
7 the premises sold; and if, upon hearing, the court shall be
8 satisfied of the facts, it shall make the rule absolute, and
9 upon payment being made or tendered, shall enforce it by
10 attachment.
11 (c) [Uninhabited residential property sold to a city of the
12 first class at a sale under a tax or a municipal claim may be
13 redeemed within three months from the date of the acknowledgment
14 of the sheriff's deed therefor subject to compliance with the
15 other requirements of this act with respect to redemption.]
16 Notwithstanding any other provision of law to the contrary, in
17 cities of the first class only, there shall be no redemption of
18 uninhabited residential property by any person after the date of
19 the acknowledgment of the sheriff's deed therefor. For the
20 purposes of this subsection, property shall be deemed to be
21 "uninhabited residential property" unless it was continuously
22 occupied by the same individual or basic family unit for at
23 least ninety days prior to the date of the sale and continues to
24 be so occupied on the date of the acknowledgment of the
25 sheriff's deed therefor.
26 (d) Notwithstanding any other provision of law to the
27 contrary, in counties of the second class only, the owner of any
28 property sold under a tax or municipal claim, or his assignees,
29 or any party whose lien or estate has been discharged thereby,
30 may[, except as provided in subsection (c) of this section,]
19890H0068B4346 - 4 -
1 redeem the same at any time within three months from the date of
2 the acknowledgment of the sheriff's deed therefor, upon payment
3 of the amount bid at such sale; the cost of drawing,
4 acknowledging and recording the sheriff's deed; the amount of
5 all taxes and municipal claims, whether not entered as liens, if
6 actually paid; the principal and interest of estates and
7 encumbrances, not discharged by the sale and actually paid; the
8 insurance upon the property and other charges and necessary
9 expenses of the property, actually paid, less rents or other
10 income therefrom; and a sum equal to interest at the rate of ten
11 per centum per annum thereon, from the time of each of such
12 payments. If both owner and creditor desire to redeem, the owner
13 shall have the right so to do only in case he pays the
14 creditor's claim in full. If more than one creditor desires to
15 redeem, the one who was lowest in lien at the time of sale shall
16 have the prior right, upon payment in full of the claim of the
17 one higher in lien. Within the three-month period, one who was
18 lower in lien may redeem from one higher in lien who has already
19 redeemed, and the owner may redeem from him; and so on
20 throughout, in each case by paying the claim of the one whose
21 right was higher; and one higher in lien may redeem from one
22 lower in lien, unless his claim is paid; but in each case the
23 right must be exercised within the three-month period.
24 Section 2 3. All acts and parts of acts inconsistent with <--
25 the provisions of this act are repealed.
26 Section 3. This 4. SECTION 2 (SECTION 32) OF THIS act shall <--
27 apply to all sheriff's sales conducted on or after the effective
28 date of this act.
29 Section 4 5. This act shall take effect immediately. <--
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