There are many exempted transfer not subject to Transfer Tax. Transfers between immediate family members parents and grandparents to children and grandchildren, siblings and spouses are all exempt from Transfer Tax. Transfers to a personal sole member LLC is NOT exempt from Transfer Tax. Transfers to a Trust is exempt from Transfer Tax if every possible Beneficiary would be an exempt transfer. There are other exemptions provided in the appropriate Statute.

Transfer Tax usually has a State component and a County component. Pennsylvania assesses a 1% Transfer Tax. Many counties in Pennsylvania charge an additional 1%. So a transfer in Delaware County, PA for example is 2% total. Philadelphia County charges 3.278% so a transfer in Philadelphia is subject to a 4.278% transfer tax. Transfer Tax is calculated as a percentage of either the Assessed Value or the Purchase Price (“Consideration”).

Real Estate Tax is the annual (usually) tax collected by the local government on the assessed value of the property. There can be multiple taxes assessed on the property such as a County Tax, a Municipal (city) tax or a School Tax. Added together these make up your annual tax bill.

To ‘add’ a name to your Title, it is still a transfer of property. We prepare a new Deed to transfer from the current owner (you, Grantor) to the new owners (you and additional owner, Grantees). The transfer to yourself will always be Transfer Tax exempt. The transfer to the additional owner may be subject to Transfer Tax depending on their relationship.

When a property is in the name of a person who has passed away, a Personal Representative (Administrator or Executor) must be appointed by the Register of Wills. Once 'Letters' are issued, the Personal Representative may sign a Deed on behalf of the deceased owner.

Inheritance Tax is a State Tax on the Estate of a deceased person. When a Personal Representative is appointed and Letters of Administration are issued, an Inheritance Tax Return must be filed to report and pay any tax on the assets of the Estate. Inheritance Tax often comes up when a property is being sold by an Estate because Inheritance Tax is a lien against the Property that must be paid and satisfied to pass clear Title.

A Deed does not change any aspect of a Mortgage. There will still be a Mortgage on the Property if a new Deed is recorded. A Mortgage is a lien on the Property that will survive any transfers until it is Satisfied. Provisions of the Mortgage Document may prohibit any transfer of title but it is rare that a Lender would foreclose on a property if payment continue to be received. PhillyDeeds does not get involved with Mortgages or Lenders.

Yes but the transfer is subject to Transfer Tax on the Assessed Value.

Title Insurance protects against loss from a defect in title. There are many examples of defects in title that may arise after a purchase. If there is a claim of a title defect (“cloud”), your Title Insurance Company will engage an Attorney to defend the claim and they will pay (“indemnify”) any damages.

Title searches are conducted by Title Companies to check for liens that could become defects in title. Title search looks for judgments, mortgages, taxes, lienable utilities, fraudulent deeds, etc. A title search is completed before Title Insurance will be issued.