Pennsylvania Act 1939-386 — AUTHORIZING SALE OF REALTY FOR TAX CLAIM JUDGMENT

Act text

AUTHORIZING SALE OF REALTY FOR TAX CLAIM JUDGMENT
                 Act of Jun. 26, 1939, P.L. 1100, No. 386             Cl. 53
                                  AN ACT

     Authorizing the sale of real estate under a judgment obtained on
        a tax claim or claims to be made, by the sheriff, free and
        clear of tax and municipal claims, for a sum less than the
        total amount of delinquent tax and municipal claims, under
        certain conditions, and providing for the distribution of the
        sum realized upon such sales, and for the procedure in such
        cases.

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

        Section 1.  Whenever in any proceeding a judgment has been
     obtained on a tax claim, and the market value of the real estate
     or its market value above the amount of mortgages, ground rents,
     and other encumbrances, if any, which would not be discharged at
     a sheriff's sale for such taxes, is less than the total amount
     of all delinquent taxes and municipal claims against such
     property, the Board of Revision of Taxes or other authority
     empowered by law to fix the value of such property for taxation,
     acting as a board, may file in the proper court, to the term and
     number of the proceeding in which such judgment has been
     obtained, a certificate setting forth the fair market value of
     such real estate as determined by said board and the amount of
     liens and encumbrances, if any, except tax and municipal claims,
     which would not be discharged by such sale. Such valuation shall
     appraise the real estate as subject to the liens or
     encumbrances, or if there be no liens or encumbrances which
     would not be discharged by the sale, at the fair market value of
     the real estate free and clear of encumbrances. Such certificate
     may be executed by any member of the board designated by it and
     having the approval of the board.
        Section 2.  The plaintiff in any judgment recovered on a tax
     claim, in which proceeding the certificate provided for in
     section one of has been filed, may, with consent, filed of
     record in such proceedings, of the holder or holders of
     municipal claims, if there be any against the property involved,
     fix, as the upset price to be realized at the sheriff's sale
     under such judgment, the market value of the property as set
     forth in the said certificate, or such higher upset price, not
     exceeding the total amount of delinquent taxes due, as it may
     determine. In such cases, no sale shall be made except for a sum
     not less than the upset price so fixed, and the plaintiff may
     purchase the property at such sale for that sum, if no higher
     price is bid therefor.
        Section 3.  The purchaser at such sale shall take the real
     estate free and discharged of all delinquent taxes and municipal
     claims existing at the time of the sale, subject, however, to
     the right of redemption as provided by law. Nothing in this act
     shall be construed to divest the lien of any mortgage which
     shall be prior in time to the liens of taxes.
        Section 4.  On any such sale, the cost and expenses of the
     sale shall first be paid out of the proceeds. The balance
     thereof shall be applied, first, to the payment of tax claims,
     the oldest thereof having priority; municipal claims shall be
     paid next, the oldest in point of lien having priority; and any
     surplus shall be distributed in accordance with law.
        Section 5.  All acts or parts of acts inconsistent herewith
     be and the same are hereby repealed to the extent of such
     inconsistency.
        Section 6.  This act shall become effective immediately upon
     final enactment.