How Do I Transfer a Property Title in PA?

A Step-by-Step Guide to Property Transfer in Pennsylvania

Transferring property in Pennsylvania is a significant undertaking that involves several legal and administrative steps. Whether you’re buying or selling property, gifting it to a family member, or transferring it for any other reason, understanding the process is crucial.

In this comprehensive guide, we will walk you through the steps to transfer a property in Pennsylvania successfully.

Step 1: Determine the Type of Property Transfer

Before diving into the specifics, it’s important to identify the type of property transfer you are undertaking. Common scenarios include:

Sale: When you are selling a property to a new owner.

Gift: Transferring property to a family member or friend without monetary exchange.

Inheritance: Property transfer upon the owner’s death, usually through a will or intestate succession.

Divorce: Transferring property as part of a divorce settlement.

Business Transfer: Transferring property for business purposes, such as changing ownership or forming a partnership.

Trust: Placing property into a trust, which may involve transferring it out of your name.

Each type of transfer may have specific requirements, so understanding your situation is essential.

Step 2: Title Search and Insurance

Regardless of the transfer type, it’s critical to perform a title search. This step helps uncover any outstanding liens, encumbrances, or disputes related to the property’s title.

The most common liens are mortgages, lines of credit, IRS liens, and property taxes in PA.  Purchasing title insurance is also advisable to protect against unforeseen issues.

Mortgage lenders will require title insurance in almost every case.

Adding a spouse to deed or property title in Pennsylvania?  This is typically a much simpler process with low costs and risks.

Step 3: Draft and Sign a Deed

The heart of any property transfer is the deed. The deed is a legal document that conveys ownership from the current owner (grantor) to the new owner (grantee).

Different deed types may be used, including warranty deeds, quitclaim deeds, and special warranty deeds. Consult an attorney to determine the most appropriate deed for your situation.

Both parties must sign the deed in the presence of a notary public. The deed should include a legal description of the property, the names of the grantor and grantee, and any relevant encumbrances.

Step 4: Pay Transfer Taxes

Pennsylvania imposes a real estate transfer tax on most property transfers. The rate varies by county, so check with your local tax authority for the specific amount. This tax is typically split by the buyer and seller, but it’s essential to clarify who will bear this cost during negotiations.

Cost:  2% of sale price. Transfer tax in most areas of Pennsylvania such as Lancaster County, Cumberland County, and Centre County is 2% and is commonly split 1% buyer and 1% seller.

* Some areas such as Philadelphia can be as high as 4.278%.

Step 5: Recording the Deed

Once the deed is signed and transfer taxes are paid, it must be recorded with the county recorder of deeds where the property is located. Recording the deed officially establishes the new owner’s title.

Cost:  $50 – $150. Recording fees vary by county and a good budget number is $75

Step 6: Notify Relevant Parties

Depending on the nature of the transfer, you may need to notify various entities, including mortgage lenders, local tax authorities, and homeowners’ associations. Inform them of the property transfer to ensure a smooth transition.

In Pennsylvania, the title company will typically handle all payoffs and communication regarding property taxes, public utilities such as water, sewer, trash, and Home Owner Associations/Condo Associations.  Because of possible liens, the title company will need to verify there are no balances at closing in order to insure the title. 

Step 7: Update Property Records

Make sure to update property records with the tax assessor’s office. This step ensures that future tax bills are sent to the correct owner. 

The title company will also update the tax assessor and tax collector as part of the deed recording process in Pennsylvania.

Step 8: Consult Legal and Financial Professionals

Property transfers can be complex, and legal, financial, or tax implications may arise. It’s advisable to consult with professionals such as real estate attorneys, accountants, or financial advisors to navigate any potential issues.

Capstone Land Transfer is here to help with your Pennsylvania deed transfer. Call us now at 717-857-7772 or CONTACT US.

Conclusion

Transferring a property in Pennsylvania is a multifaceted process that requires careful planning and adherence to legal requirements. Each property transfer is unique, so it’s crucial to consult with professionals who can guide you through the specific details of your situation.

By following these steps and seeking expert advice, you can ensure a smooth and legally sound property transfer in the Keystone State.