How to Sell a House by Owner in Pennsylvania

Who runs the closing in Pennsylvania?

Pennsylvania is not an attorney state. A title insurance agent or title company typically conducts the residential settlement: it searches title, issues title insurance, prepares the settlement statement, collects and pays out the money, and sends the deed to the county Recorder of Deeds. Section 739.1 of the Insurance Company Law of 1921 allows a title insurer or title agent to act as the settlement agent, provided it keeps the funds in a separate trust account and keeps separate records of them. A lawyer is not required. You can still hire a real estate attorney to draw up or review your agreement of sale, or to handle a wrinkle such as an inherited property or a title defect.

Before you list, ask your borough, township or city whether it requires a resale inspection or a use and occupancy certificate. Not every municipality does. Where one is required and the inspection finds violations, the Municipal Code and Ordinance Compliance Act says the municipality must still issue a temporary certificate, and the buyer has 12 months to make the repairs. If a violation makes the home unfit to live in, a new occupant may not move in until it is fixed.

What must you disclose when selling a house in Pennsylvania?

The Real Estate Seller Disclosure Law, 68 Pa.C.S. 7301 to 7315, requires a seller of a home with one to four units to disclose known material defects on a property disclosure statement that meets the State Real Estate Commission’s form, and to give the buyer a signed and dated copy before the agreement of sale is signed. The form’s minimum contents are set by 49 Pa. Code 35.335a. Its land section asks whether you know of subsidence or other earth movement, any existing or proposed mining that might affect the property, and any sinkholes, and it adds a note pointing buyers to the Department of Environmental Protection’s Mine Subsidence Insurance Fund.

You do not have to investigate to fill it out, but you may not make statements you know are false or leave out a known material defect. If something you disclosed becomes inaccurate before settlement, you must tell the buyer. A buyer harmed by a willful or negligent violation can sue for actual damages within two years after settlement. Some transfers are exempt, such as sales by an executor or trustee and transfers to a spouse or a child. If you are selling a condominium or co-op unit, the buyer must also receive the association’s resale certificate and can cancel until five days after receiving it or until settlement, whichever comes first.

What transfer taxes do you pay in Pennsylvania?

Pennsylvania charges a state realty transfer tax of 1 percent of the value of the property transferred, collected by the county Recorder of Deeds when the deed is recorded. Most municipalities and school districts add a local realty transfer tax of 1 percent that they share, so a typical sale carries about 2 percent in total. The local rate is higher in some home rule municipalities: Philadelphia’s combined rate is 4.578 percent, and the City of Pittsburgh’s is 5 percent. Some municipalities charge less, and a few charge no local tax at all.

The law holds buyer and seller jointly and severally liable for the tax, so the full amount can be collected from either one. Who pays is set in the agreement of sale. Philadelphia notes that the tax is usually split evenly, but local practice varies, so write the split down.

Can you sell without an agent in Pennsylvania? The bottom line

Selling or buying on your own in Pennsylvania is workable because the title company handles the settlement mechanics for both sides. Your real work is pricing, filling out the disclosure statement honestly, including the subsidence and mining questions, checking whether your municipality requires a resale inspection, and confirming the local transfer tax rate so the combined bill does not surprise you at settlement. This is general information, not legal advice.

Every state's disclosure rule sits side by side, with a CSV, in seller disclosure requirements by state.

What is your home in Pennsylvania worth? Get a free estimate from your ZIP code, with the agent fee on that price. No email, no account.

Where can you list a home for sale by owner in Pennsylvania? See how the US for-sale-by-owner sites compare on cost and MLS access.

Selling by owner in a neighbouring state: Delaware, Maryland, New Jersey, New York, Ohio, West Virginia.