Pennsylvania Act 1967-32 — AUTHORIZING SECOND CLASS A CITIES TO SELL REALTY FOR TAXES

Act text

AUTHORIZING SECOND CLASS A CITIES TO SELL REALTY FOR TAXES
                  Act of Jun. 28, 1967, P.L. 122, No. 32              Cl. 11
                                  AN ACT

     Authorizing and empowering city treasurers of cities of the
        second class A to sell at public sale, lands or real estate
        upon which the taxes, assessed and levied by the city, are
        delinquent and unpaid; fixing the interests of all taxing
        authorities where such lands are purchased by the city;
        providing for the distribution of moneys received as income
        from or resale of such lands; and providing for a method of
        reselling such lands purchased, by the city, or by the city
        at any sale for the nonpayment of taxes, free and clear of
        all mortgages, ground rents, interest in or claims against
        said lands; authorizing an agreement between cities of the
        second class A purchasing property at treasurer's sales and
        all other taxing authorities having an interest in such lands
        with respect to the distribution of rents, income and the
        proceeds of the resale of such lands.

        The General Assembly of the Commonwealth of Pennsylvania
     hereby enacts as follows:

        Section 1.  In addition to the remedies now provided by law
     for the collection of delinquent city taxes, the city treasurers
     of cities of the second class A of this Commonwealth are hereby
     authorized and empowered to sell at public sale, in the manner
     hereinafter provided, property upon which the taxes, assessed
     and levied, have not been paid and have become delinquent. Such
     sales shall be made on the first Monday in June in the year
     succeeding the year in which the respective taxes are assessed
     and levied, or on any day to which such sale may be adjourned,
     or on any first Monday of June in any succeeding year.
        Section 2.  Where the respective treasurer has not already in
     his hands, the duplicates of said taxes or certificates or
     schedules thereof, it shall be the duty of any receiver or
     collector of taxes, or other person having such delinquent taxes
     in his hands, to certify to the said city treasurer schedules of
     all unpaid taxes, with description of the property assessed, and
     it shall be the duty of the city treasurer to advertise for sale
     all the lands upon which it appears the taxes have not been paid
     as shown by the duplicates in his hands, or by the returns, or
     schedules certified to him as aforesaid. Said advertisement
     shall be made once a week for three successive weeks prior to
     the day of sale in at least two newspapers of general
     circulation, and in the legal newspaper printed and published in
     the respective city. The treasurer shall also cause to be posted
     or tacked in a conspicuous place on each parcel or lot of land,
     advertised for sale, at least ten days prior to the day of sale,
     a notice stating that said lands will be sold by said treasurer
     for delinquent taxes on a certain day and time and at a certain
     place within the city, for which posting of notice he shall
     receive and tax as costs one dollar ($1). No sale shall be valid
     where the taxes have been paid prior to said advertisement or
     where the taxes and costs have been paid after advertisement and
     before sale.
        Section 3.  The lands sold under this act may be redeemed by
     the owner or by any one interested in said lands, at any time
     within one year after such sale, by the payment to the city
     treasurer of the full amount which the purchaser paid to said
     treasurer for taxes and costs and ten percent in addition
     thereto, and when the sale has been made for less than the taxes
     and costs, the party redeeming shall pay to said treasurer the
     balance of taxes and costs which were not made by the sale of
     the said property. In case there are any city taxes levied,
     either before or after the said sale, which remain unpaid, the
     person redeeming shall pay the same and all penalties, interest
     and lien costs thereon, and in case the purchaser has paid any
     taxes, of any kind whatsoever, assessed and levied against said
     property, the same shall be reimbursed to said purchaser before
     any redemption shall take effect. The said treasurer shall keep
     in his office a book or schedule in which he shall enter all the
     sales made by him, giving a description of each property sold,
     the name of the person as the owner thereof, as the same appears
     upon the duplicate or has been returned to him, the time of sale
     and the price at which sold, together with the cost. Each
     respective city shall have the right to bid at any such sale,
     the amount of taxes and costs and, if necessary, purchase such
     lands.
        Section 4.  It shall be the duty of the purchaser or
     purchasers at said treasurer's sale, as soon as the property is
     struck down, to pay the amount of the purchase money and before
     delivery of deed, all other city taxes, penalties, interest and
     lien costs, if such purchase money is insufficient for the
     payment thereof and also one dollar and fifty cents ($1.50) for
     the use of the prothonotary for entering the report of the
     treasurer and acknowledgment of the treasurer's deed, as
     hereinafter mentioned, and in case said amount is not forthwith
     paid after the property is struck down, the sale may be avoided
     and the property immediately put up again by the said treasurer:
     Provided, however, That this section shall not apply when the
     lands are purchased by said city.
        Section 5.  It shall be the duty of the city treasurer at the
     first term of a court of common pleas of the proper county
     succeeding such sale to make a report and return, wherein he
     shall set forth a brief description of the land or property
     sold, the name of the person (where known) in which the same is
     assessed, the amount of tax and the year for which the same is
     assessed, the time when and the newspapers in which the
     advertisement for sale was made, with a copy of said
     advertisement, the time of sale, the name of the purchaser and
     the price for which each respective property was sold; and upon
     the presentation of said report or return, if it shall appear to
     said court that such sale has been regularly conducted under the
     provisions of this act, the said report and the sale so made
     shall be confirmed nisi, in case no objections or exceptions are
     filed to said sale within ten days, a decree of absolute
     confirmation may be entered, as of course, by the prothonotary.
     In case any objections or exceptions are filed, they shall be
     disposed of according to the practice of said courts, and when
     the same are overruled or set aside, a decree of absolute
     confirmation shall be entered, as aforesaid, but all objections
     or exceptions shall be confined to the regularity of the
     proceedings of said treasurer.
        Section 6.  After any sale of property or lands for
     delinquent taxes has been confirmed by the court, as aforesaid,
     it shall be the duty of the purchaser or purchasers, where the
     bid exceeds the taxes and costs, as aforesaid, to make and
     execute to the said treasurer for the use of the persons
     entitled, a bond for the surplus money that may remain after
     satisfying and paying all the taxes and costs as aforesaid with
     warrant of attorney to confess judgment annexed thereto, and it
     shall be the duty of said treasurer to forthwith file said bond
     in the office of the prothonotary of the proper county at the
     number and term where said report and return is filed and the
     surplus bond filed, as aforesaid, from the time of the date of
     the deed for property thus sold shall bind, as effectually and
     in like manner as judgments, the land by said treasurer sold
     into whose hands or possession soever they may come, and the
     owner of said lands at the time of sale, their heirs or assigns,
     or other legal representatives, may, at any time within five
     years after such sale, cause judgment to be entered in said
     court upon said bond in the name of said treasurer for the use
     of said owners, their heirs, assigns or legal representatives,
     (as the case may be), and in case the moneys mentioned in said
     bonds, with legal interest thereon from the time it is demanded,
     be not paid within three months after such entry, execution may
     forthwith issue for the recovery thereof.
        Section 7.  When the purchaser has paid the amount of his bid
     and all other city taxes, penalties, interest and lien costs, if
     any, and has given the surplus bond, as above required if
     necessary, it shall be the duty of the city treasurer to make
     the said purchaser or purchasers, his or their heirs or assigns,
     a deed in fee simple for the lands sold as aforesaid, and the
     said deed or deeds to duly acknowledge in the court of common
     pleas, and such acknowledgment shall be duly entered and
     recorded by the prothonotary of said court in the treasurer's
     deed book, and for such service and the entry of the report of
     said treasurer, said prothonotary shall receive the sum of one
     dollar and fifty cents ($1.50).
        Section 8.  Where the owner or other person, interested in
     the land thus sold, shall redeem the same, it shall be the duty
     of the city treasurer to acknowledge the receipt of the
     redemption moneys upon the margin of the acknowledgment of the
     treasurer's deed, as the same is entered and recorded in the
     prothonotary's office as aforesaid, and thereafter said deed
     shall be void and of no effect, and thereupon such owner or
     persons, interested as aforesaid, shall be entitled to have the
     treasurer's deed delivered up to him, her or them by the
     purchaser for cancellation. And it shall be the duty of the said
     treasurer to pay to said purchaser all the moneys he had paid at
     the time of sale, together with the ten percent penalty thereon,
     and it shall also be the duty of the said treasurer to enter
     upon the book of sales, kept by him as hereinbefore provided, an
     acknowledgment or receipt showing that the owner or party
     interested redeemed the same therein giving dates of redemption
     and amount of money received.
        Section 9.  After the period for redemption, as provided for
     in this act, has expired and the said lands have not been
     redeemed, it shall be the duty of the city treasurer to certify
     to the board or boards of assessors, or proper assessing
     authorities charged with the duty of assessing such real estate
     for purposes of taxation, that he sold the lands to the grantee
     named in the deed, and that the period for redemption has
     expired, and said lands have not been redeemed, and if the said
     lands have been sold to the city, the aforesaid assessing
     authorities shall not thereafter return said lands for purposes
     of taxation, and no taxes shall be levied thereon as long as the
     property is held and owned by the city. Copies of the aforesaid
     certification may also be furnished to deed registries or other
     interested authorities.
        Section 10.  The interests of all taxing authorities, having
     taxes or claims against any property sold to any city of the
     second class A by the city treasurer under the provisions of
     this act, shall be fixed and determined as of the time of the
     certification by the city treasurer, as provided for in section
     nine, and shall remain fixed without the necessity of filing or
     reviving liens or otherwise preserving such taxes or claims, and
     shall take priority over all mortgages, ground rents or claims
     whatsoever until said taxes or claims are fully paid, or
     otherwise divested by law, and if the said city received income
     from the property, it shall distribute any net income first to
     the cost of the treasurer's sale and the balance to the
     interested taxing authorities in proportion to their taxes and
     claims against the property, until such taxes and claims have
     been liquidated, and thereafter in proportion to their rate of
     tax levy within the city.
        Section 11.  If upon a resale by the city of any property
     purchased by it under this act, either for a sum sufficient to
     pay all taxes and claims, or for a lesser sum as provided
     hereinafter, it should be deemed necessary by said city to
     conduct proceedings, hereinafter set forth, to perfect its tax
     title acquired at the treasurer's sale, it shall be lawful for
     the said city to deduct the costs of said proceedings from the
     sale price, as well as the cost of the original tax sale and the
     usual commission to a real estate broker, if any, before
     distribution of the balance; and if the sale price or balance
     remaining is more than sufficient to pay all taxes and claims,
     then the sum left, after all taxes and municipal claims have
     been satisfied, shall be distributed to the interested taxing
     authorities in proportion to their rate of tax levy upon real
     estate within the city at the time of resale. If, however, such
     sum is less than all taxes and municipal claims, such sum shall
     be distributed to the interested taxing authorities in
     proportion to their total tax claims against the property
     regardless of priority of lien, and such taxes and municipal
     claims shall be considered as fully paid and satisfied.
        Section 12.  (a) In case of resale of such lands, which have
     been purchased by the city under this act, or by the city at any
     sale for the nonpayment of taxes after the period of redemption
     has expired, it may appear that there are mortgages, ground
     rents, rights, title, interest in or claims against such lands,
     which have not been divested by the tax sale, or other defects,
     or objections to a good and marketable title, the city may
     present its petition or complaint, with a search of title
     attached, to the court of common pleas of the county wherein the
     lands are situate, setting forth (1) the location of the lands
     by metes and bounds, or if it be in a recorded plan of lots, the
     plan number of the lot and place of record of the plan, or
     reference to a former deed of record; (2) the name or names of
     the former owner or owners, reputed owners, mortgagees,
     assignees or any other person or persons shown by such title
     search to have any mortgage, ground rent, right, title, interest
     in or claim against such land, if any there be; (3) that upon
     diligent inquiry no person has been found who has or claims to
     have any mortgage, ground rent, right, title, interest in or
     claim against said land, unless it be those named in the
     petition; (4) that the period of redemption has expired and the
     city has agreed to sell said land, setting forth the sum offered
     therefor, which may be less than the sum of all taxes and
     municipal claims against the land; and (5) the sum of all taxes
     and municipal claims due each taxing authority.
        (b)  Thereupon a rule shall be granted upon the persons named
     in the petition, and generally upon all other persons not named
     in the petition who have or claim to have or may appear to have
     any mortgage, ground rent, right, title, interest in or claim
     against said land, to appear within thirty days from service of
     the rule upon them, and show cause why the title of the
     petitioner or complainant to said land should not be adjudicated
     and decreed valid and indefeasible as against all mortgagees,
     assignees or other persons having any right, title, interest in
     or claim against said lands whatsoever, and to further show
     cause why the sale of the said land by the city should not be
     made free and clear of their respective mortgages, ground rents,
     interests or claims whatsoever. The rule may be made returnable
     to such term or return day as may be fixed by the court.
        (c)  As to persons domiciled within the county or in any
     other county of this Commonwealth and whose whereabouts may be
     ascertained, the rule shall be served and returned as writs of
     summons are served and returned. As to those persons whose
     domicile is without the Commonwealth, the petitioner or
     complainant may have any competent adult serve the defendant
     personally and file an affidavit to that effect. If a defendant
     is dead or his identity or whereabouts is unknown and cannot be
     ascertained, the petitioner or complainant shall file an
     affidavit to that effect, wherein the affiant may state that the
     heirs and assigns of a named former owner are unknown, and if
     the court is satisfied that due inquiry has been made, the rule
     shall be served by one advertisement in a newspaper of general
     circulation and the legal newspaper published in the city where
     the land is situate, or as the court may direct, giving notice
     to all persons, including those named in the petition, to appear
     on or before the return day of the rule, and show cause why the
     title of the city should not be adjudicated and decreed valid
     and indefeasible as against all mortgages, ground rents, rights,
     title, interest in or claims against the land whatsoever, and to
     further show cause why the sale of the said land should not be
     made by the city, free and clear of all the aforesaid claims
     whatsoever. Said advertisement shall be made at least thirty
     days before the return day of said rule and shall be deemed a
     good and sufficient service of the rule as to all persons
     whatsoever. Said rule shall also be served personally upon other
     interested taxing authorities.
        Section 13.  In case no person shall appear at or before the
     return day and make answer to said petition and rule, or make
     objection to the sale of the said land by the city, and the
     court is satisfied that the proposed sale is proper and to the
     advantage of all interested taxing authorities, upon affidavit
     filed by petitioner or complainant that the aforesaid rule to
     show cause, properly endorsed with notice to plead, has been
     served, and that the defendant has not filed an answer, and that
     no person has objected to said sale, it shall enter a decree
     making said rule absolute and approving such sale, and direct a
     conveyance of such land to the person or persons to whom the
     city has agreed to sell free and clear of all mortgages, ground
     rents, rights, title, interest in or claims against said land
     whatsoever, and the price received therefor, after deducting all
     costs of this proceeding and of the original tax sale, as well
     as the usual commission to a real estate broker, if any, shall
     be distributed to the respective taxing authorities as
     hereinbefore provided for.
        Section 14.  If any person shall appear and make answer or
     objection to said petition or complaint and rule, and said
     answer or objection shall contest the adequacy of the price for
     which the city has agreed to sell said land, the court shall fix
     a time, within thirty days from the aforesaid return day, for
     all persons to appear before said court and make offers for said
     land, and the court may approve such offer, as in its discretion
     appears to be in the interest of all taxing authorities having
     claims against the land. If, however, such answer or objection
     sets up any claim to a mortgage, ground rent, right, title,
     interest in or claim against said land adverse to the title of
     the city, the court shall order and decree that such person or
     persons shall commence proceedings within thirty days to
     foreclose any mortgage, bring his action in ejectment, or such
     other proceeding as may be necessary to establish his claim, and
     failing therein within the time aforesaid, the court shall make
     said rule absolute, and direct a conveyance of the land as
     provided in section thirteen hereof. If any person or persons
     appear at any stage of the proceedings who may appear to the
     court to have any interest whatsoever in the land and pay all
     taxes, municipal claims, penalties, interest and costs including
     all taxes, which would have been levied against said land, had
     the same not been certified to the assessors and removed from
     the tax rolls, as well as the costs of this proceeding, the
     court may direct a conveyance to said person, but no real estate
     commission shall be paid.
        Section 15.  All lands heretofore or hereafter purchased by
     any city of the second class A at a sheriff's sale, treasurer's
     sale or any sale for the nonpayment of city taxes, and held
     beyond the period of redemption, may be sold to a purchaser
     under the terms of sections eleven, twelve, thirteen and
     fourteen of this act.
        Section 16.  The act, approved March 30, 1903 (P.L.106),
     entitled "An act authorizing and empowering the city treasurers
     of the several cities of second class and third class of this
     Commonwealth to sell at public sale all properties upon which
     the taxes, assessed and levied, are delinquent and remain
     unpaid," and its amendments, are hereby repealed in so far as
     they relate to cities of the second class A.