Instructions and Procedures for Upset Sale

BACKGROUND

The information provided below is of a general nature, and it is intended to give prospective purchasers of tax delinquent properties some understanding of how the purchase process for upset sales works, and what a purchaser may expect to occur if a property is purchased. This information is not be be construed as an exhaustive treatment of all intricacies of the tax sale law, nor should it be taken as an answer to any question which a prospective purchaser may have. Hopefully, those who read this information will have a better idea of how the purchase process works; however, it is strongly recommended that if the reader should have any questions not sufficiently answered by the information provided, they should consult an attorney.

Tax delinquent properties are advertised for sale in newspapers, and the sale is conducted by the Delaware County Tax Claim Bureau ("the Bureau") pursuant to the Real Estate Tax Sale Law and any conditions of sale set by the Bureau.

For the Upset Sale, the minimum bid must be enough to cover all unpaid taxes, costs and municipal liens and claims. If you buy a property in the upset sale, mortgages and liens on the property remain in effect, even though you have paid all taxes that were due.

There are a few situations that prospective purchasers should be aware of:

The fact that a property is advertised for sale in the newspaper does not mean that the property will be exposed for sale on the day of sale. Many delinquent owners pay their back taxes before the sale date, at which point their properties are taken off the sale list. In addition, delinquent owners sometimes secure court orders to stay the sale. Those properties are also removed from the sale list. The sale of these properties may be continued to a later date.

Even if a property is purchased at the sale, the delinquent owner still has the right to go to court to contest the sale of their property. Frequently, delinquent owners claim that they failed to receive proper notice of the sale. If the court finds this is true, the sale is set aside, and the purchaser gets their money back.

Prospective purchasers at tax sales should be aware that they could consult with an attorney prior to the sale to get more detailed information concerning what they may expect in purchasing properties. Of key importance is to learn the rights of tax delinquents to challenge the sales in court.

PROCEDURE

If you are interested in bidding on a property at the Upset Sale, please do the following:

1. Obtain a list of properties scheduled for the Upset Sale published in The Philadelphia Inquirer, The Spirit, and The Delaware County Legal Journal. Registration information, including dates of registration, is also published along with the list. The lists are published at least 30 days before the sale. The Bureau also maintains a desk copy of the list that will be available to view.
2. For the Continued Upset Sale, a desk copy of properties is generally available 30 days before the continued sale date.
3. The Upset Sale usually occurs in early September and the continued upset sale in early December. The exact time and date of sale will be published on the County website, or you can telephone the Bureau at (610) 891-4284 to get this information.
4. Registration will generally take place three weeks prior to the scheduled sale dates. The exact time and date of registration will be published on the County website, or you can telephone the Bureau at (610) 891-4284 to get this information.
5. You MUST print out and complete the Bidder Application, Bidder Affidavit which must be notarized, and Conditions of Sale (links below) prior to registration. If these forms are not complete at the time of registration, you will not be permitted to register. Only the Bidder Affidavit needs to be notarized. A non-refundable application fee of $25.00 is due at time of registration. Application fee must be paid by certified check, money order or cash. We additionally accept Visa, MasterCard or Visa and are subject to a 3% convenience fee.
6. The registration fee is $1,000.00 and must be paid with a certified check or money order. In order to register to bid, you may not have delinquent taxes in any taxing district in the Commonwealth of Pennsylvania. Current photo ID required at time of registration.
7. Know the address and folio number of all properties in which you have an interest. You are free to bid on more than one property if you so desire. The Bureau will sell the property as described by the Board of Assessment Office and makes no representation or warranty as to description, condition of the property, accuracy of ownership, size, boundaries, locations, existence of structures or lack thereof, title, occupancy or any other matter pertaining to said premises, recorded or unrecorded. Please make sure you have checked with the Assessment office and GIS (Geographic Information System) aka mapping. You must not rely on any Google type searches for accuracy of location of property or any structure that may or may not be there.
8. The bidding begins when each property is called and identified by the auctioneer on the date of sale.
9. If you are successful in your bid, employees of the Bureau will assist you in following through with the purchase process. Paperwork must be picked up from the Tax Claim Bureau prior to leaving the Courthouse after the sale. This paperwork will contain exact amounts needed to obtain certified checks to finalize your purchase. Payment in full is due by noon the day after the sale for all sales. You must finalize on all sales or you do not get to finalize on any. Failure to finalize on a sale will result in forfeiting your $1,000.00 registration fee and being debarred from future sales for five years.
10. You are free to bid on more than one property if you so desire.
11. Print out a sample copy of the conditions of sale (link below) for the Upset Sale to give you more information about upset sales. Please be aware that these conditions of sale are subject to change at any time by the Tax Claim Bureau.

Bidder Application

Bidder Affidavit

Conditions of Sale