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Philadelphia Streets Department Lien

As constantly mentioned issuing Philadelphia Title Insurance can be tricky, there are so many pitfalls and areas of risk.  It is always vital for a buyer to utilize the services of a Philadelphia Title Insurance company that knows the landscape of the city, the ever changing rules and regulations and quite simply knows how to get things done.

A few investors in the past few weeks have gotten caught up with why we were collecting a fee for the City of Philadelphia Streets Department.  If you didn’t know already Philadelphia enacted new regulations a couple years ago (authorized under Bill 090780-amending Chapter 10-700 “Refuse and Littering” attached) setting a $150 annual fee for municipal collection of trash against all commercial properties and multi-dwellings of 2-6 units. The bills typically come out mid summer to early fall.  Unpaid liabilities will result in a fine of $500 and will be filed against the property as a lien. Because the charge is for municipal service, the priority of such lien may predate the banks title insurance policy in a refinance or the owners title insurance in a purchase transaction.

It is imperative that the Philadelphia Title Company that you work with checks with the Streets Department prior to settlement to verify that such obligations have been paid. Otherwise you can get stuck with the sellers bill and be left chasing down the Title Company that you used in order to pay the fines…

City of Philadelphia Bill 090780 (Click to View)

 

Other Posts You May Find Helpful:

Philadelphia Landlord Co-op Program

Philadelphia Settlement Checklist

 

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