Pennsylvania real estate: buy or sell with a local AXEN agent
Pennsylvania makes the seller hand you a state disclosure form before you sign, charges a transfer tax that starts at 2% and runs higher in Philadelphia, and sets title insurance prices for every company at once. Here is what is the same everywhere in Pennsylvania, and where to search homes.
Pennsylvania: search homes by city
Tap a city to see the newest homes for sale there.
What every Pennsylvania buyer and seller should know
The seller gives you the state form before you sign
Pennsylvania's Real Estate Seller Disclosure Law says the seller must fill out, sign and date the State Real Estate Commission's disclosure form and get it to you before the agreement of sale is signed (68 Pa.C.S. 7303). It covers the roof, basement, water and sewer, structure, heating, electric, soils and drainage, hazardous substances and any condo or HOA.
Some sales do not need the form
The law skips court-ordered sales, foreclosures and deeds in place of foreclosure, sales between co-owners, gifts to a spouse or children, divorce transfers, estate and trust sales by a fiduciary, and vacant land (68 Pa.C.S. 7103 and 7302). A brand-new home is exempt only if it has a one-year written warranty, passed code inspection and has a certificate of occupancy.
A late form does not let you walk away
If the seller skips the form, the sale is not cancelled because of it (68 Pa.C.S. 7311). A seller who willfully or carelessly breaks the law owes you your actual damages, and you have two years from settlement to sue. The seller also does not have to go looking for problems, only tell you what they know. Your real way out is the inspection period in your contract.
The transfer tax starts at 2%
The state charges 1% of the price. Local taxing bodies, usually the town and school district, add their own, most often another 1% (72 P.S. 8101-C and on). Some places charge more. Philadelphia adds 3.278%, so a Philadelphia sale carries 4.278% in total. Check the rate for the exact town before you write the offer.
Title insurance costs the same everywhere
Title insurers in Pennsylvania use one rate manual filed by the Title Insurance Rating Bureau of Pennsylvania and approved by the state Insurance Department. So the premium for the same coverage is the same no matter which title company you pick, unless a company has an approved exception. You can still compare the other fees they charge.
Condos and HOAs owe you a resale certificate, with a 5-day exit
When a condo or planned-community home is resold, the association must hand the seller a resale certificate within 10 days of being asked. It lists the budget, reserves, fees, lawsuits and violations. You can cancel the deal until you get it and for 5 days after, or until settlement, whichever comes first (68 Pa.C.S. 3407 and 5407).
No public sewer? The contract has to say so
If the lot has no community sewer, Pennsylvania's Sewage Facilities Act makes the sales contract state that plainly, and tell you to contact the local sewage agency before you sign to find out how to get a septic permit (Act 537, section 7.1). Do that before you commit, not after.
Coal can sit under the house
In parts of Pennsylvania the coal under a home, and the right to support from it, was sold off long ago. When that has happened, state law makes the agreement of sale and the deed carry a notice in capital letters warning that the coal owner may have the right to mine it (52 P.S. 1551). If you see it, ask about mine subsidence insurance.
Closing costs in Pennsylvania: who pays what
Who pays what in Pennsylvania. The transfer tax and title insurance rates are set by law. Who pays them is custom and can be negotiated.
| Buyer pays | How it works |
|---|---|
| Half the transfer tax | By custom, half of the state and local tax. The agreement of sale decides. |
| Owner's title policy | By custom the buyer buys it. The premium is set by the state-approved rate manual. |
| Lender's title policy | Based on your loan amount, from the same rate manual. |
| Settlement or closing fee | A flat fee set by the title or settlement company. |
| Recording the deed and mortgage | County recorder of deeds fees. |
| Home inspection and radon test | Flat fees. Radon testers must be DEP certified. |
| Well and septic tests | Only where there is no public water or sewer. |
| Tax proration | You repay the seller for taxes they already paid that cover time after settlement. |
| Seller pays | How it works |
|---|---|
| Half the transfer tax | By custom, half of the state and local tax. |
| Deed preparation | A flat fee from the title company or a lawyer. |
| Mortgage payoff and release | Your lender's payoff plus the county fee to record the release. |
| Condo or HOA resale certificate | Whatever the association charges. The seller has to order it. |
| Municipal resale inspection | Only in towns that require one, plus any repairs they order. |
| Listing agent's commission | Set in your listing agreement. Always negotiable. |
| Tax proration | Your share of taxes for the time you owned the home. |
| Your own lawyer | Optional. Only if you hire one. |
Fees change. The state sets its 1% transfer tax, each local taxing body sets its own share, and each county sets its recording fees. Philadelphia's city share is 3.278%. Confirm current numbers with your title company.
How a Pennsylvania home purchase runs
The order most Pennsylvania purchases follow. Your agreement of sale sets the exact deadlines, so read it and keep a calendar.
Get pre-approved →-
Get pre-approved. Know your budget and your monthly payment before you tour.
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Read the seller's disclosure. You should have it before you sign anything.
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Sign the agreement of sale. Your deposit is held in escrow, usually by the listing broker.
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Inspect. Use the inspection period in your contract. Add radon, well and septic tests if they apply.
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Condo or HOA? Read the certificate. You have 5 days after you get it to back out.
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Appraisal and loan approval. The lender orders the appraisal and finishes underwriting.
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Title search and town certificates. The title company clears the title. Some towns require a resale inspection.
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Final walk-through. Check that the home is in the condition you agreed to.
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Settle. Sign at the title company. The deed is recorded with the county.
Pennsylvania by region
Pennsylvania is a big state with very different markets. Tap a city to see the newest homes for sale there.
Philadelphia and the southeast
The city plus Bucks, Chester, Delaware and Montgomery counties. Philadelphia carries the highest transfer tax in the state.
Lehigh Valley and the Poconos
Three small cities close to both New Jersey and New York, and the lake and mountain homes to the north.
Central Pennsylvania
The state capital, Amish country and the home of Penn State.
Pittsburgh and the west
Pittsburgh's neighborhoods and suburbs, north to Lake Erie.
AXEN Realty in Pennsylvania
Every AXEN agent in Pennsylvania works under a licensed managing broker: Tiffanie Bailey-Romey (AXEN Realty, LLC, firm license RB070335). See every state on the state brokers page.
Buying? Start with the home buying guide and get pre-approved.
Selling? Read the home selling guide and get your home value.
Moving here? Read buying in a new state.
Pennsylvania real estate questions
Do I need a lawyer to buy or sell a home in Pennsylvania?
State law does not require one. Most sales settle at a title or settlement company, which runs the closing and records the deed. You can hire a lawyer at any point, and many people do for estates, divorces or unusual titles.
Who pays the transfer tax?
The law sets the tax, not who pays it. In most of Pennsylvania the buyer and seller split it evenly by custom, and the agreement of sale says who pays what. It is negotiable, so read that line before you sign.
What if the seller never gives me the disclosure form?
The sale does not get cancelled because of it. If the seller willfully or carelessly broke the law, you can recover your actual damages, and you have two years from settlement to file. Your contract's inspection period is the better protection, so use it.
How long do I have to back out of a condo or HOA purchase?
Until the association's resale certificate is delivered, and then 5 more days, or until settlement if that comes first. Read the certificate the day you get it. It shows the budget, reserves, fees and any lawsuits.
Is a home inspection required in Pennsylvania?
No law makes you get one. If your agreement lets you inspect, state law says the inspector must be a full member of a national home inspection association, a licensed engineer or architect, or be supervised and signed off by a full member (68 Pa.C.S. 7506).
What is the homestead exclusion?
It lowers the school property tax on the home you live in. You apply once to your county assessment office. To count for the next tax year, the application is due by March 1. It only applies to your main home.
Do some towns inspect before a sale can close?
Yes, some Pennsylvania townships and boroughs require a resale inspection or a use and occupancy certificate before a home can change hands. It is a local rule and it can take weeks. Call the municipality in the first week.
Do I have to test for radon?
No law requires a radon test to sell. The seller disclosure form asks about hazardous substances, so known results should be on it. Anyone you pay to test for radon or fix it has to be certified by the Pennsylvania Department of Environmental Protection.