Ownership Interest by Paying Property Taxes in Pennsylvania
Detailed Answer
In Pennsylvania, simply paying a property’s real estate taxes does not grant you an ownership interest in the property. Title to real estate arises through a deed, will, court order or statutory transfer—not by covering tax bills for the owner.
The municipality enforces unpaid taxes via a lien under the Real Estate Tax Sale Law (72 P.S. §§ 5860.101–5860.1003). This lien ensures the tax claim and allows the government to sell the lien at a tax sale, but it does not change the property’s record owner. You only gain legal title if you purchase the tax claim or bid successfully at the tax sale and satisfy all redemption and notice requirements (72 P.S. § 5860.201 et seq.).
Under certain circumstances, paying another party’s taxes can create an equitable lien or constructive trust. Courts will look at whether parties agreed that tax payments would earn an interest in the property, and they will examine any written agreements, the relationship between the parties and their conduct. Without clear evidence of agreement or intent, a court is unlikely to convert tax payments into ownership rights.
If your goal is to secure an interest when paying property taxes for someone else, record a written agreement detailing repayment terms or equity shares. Alternatively, consider purchasing the tax claim certificate after the tax sale or redeeming the property within the statutory redemption period. Each step has strict deadlines and procedural requirements.
Disclaimer
This article provides general legal information and does not constitute legal advice. Consult a qualified attorney to address your specific situation.
Helpful Hints
- Review your county’s Tax Claim Bureau website for sale calendars and redemption deadlines.
- Study the Real Estate Tax Sale Law (72 P.S. §§ 5860.101–5860.1003) to understand lien mechanics.
- Document any arrangement to pay another party’s taxes in a written contract.
- Keep all receipts and official notices related to tax payments and liens.
- Seek legal guidance before bidding at a tax sale or asserting an equitable lien.