PA tax on Sheriff Sale and Funds for Pmt

[Jennifer Porterfield]

Looking to buy at Sheriff's Sale in Lancaster county PA (for the first time). Found a property I'm interested in... have done title search etc. I have a few questions regarding this...

"All applicable realty transfer taxes will be fully paid from the sale proceeds by the Sheriff's Office. If the proceeds are insufficient to pay all the sale costs, realty transfer taxes, and priority liens, then the buyer shall pay the balance of such amounts to the Sheriff's Office within 30 days after the sale date."

1) If the upset price is 100k and I pay 101k for example, should I plan on paying the 2% transfer tax and county fees? Obviously 1k is not enough to cover the transfer tax and Sheriff's fees... 

2) I thought Sheriff's sales were exempt from transfer tax in PA? The above statement makes me believe its not. 

"Payment for properties must be in the form of lawful money of the United States, a certified or cashier's check from a Pennsylvania Bank"

3) How the heck am I supposed to know the amount to have my cashiers or certified check for if I dont know the final sale price ahead of time? "Lawful money" meaning cash? Really dont want to walk around with 10s of thousands in cash... 

4) Does anyone know what type of deeds Lancaster County PA releases after the sale/payment in full? It does not specify anywhere.

I have tried calling multiple times with no answer, may have to just drive up there. 

Thank all for the support and advice.

[Steve Babiak]

Quote from @Chad U.:

Quote from @Jennifer Porterfield:

Looking to buy at Sheriff's Sale in Lancaster county PA (for the first time). Found a property I'm interested in... have done title search etc. I have a few questions regarding this...

"All applicable realty transfer taxes will be fully paid from the sale proceeds by the Sheriff's Office. If the proceeds are insufficient to pay all the sale costs, realty transfer taxes, and priority liens, then the buyer shall pay the balance of such amounts to the Sheriff's Office within 30 days after the sale date."

1) If the upset price is 100k and I pay 101k for example, should I plan on paying the 2% transfer tax and county fees? Obviously 1k is not enough to cover the transfer tax and Sheriff's fees... 

2) I thought Sheriff's sales were exempt from transfer tax in PA? The above statement makes me believe its not. 

"Payment for properties must be in the form of lawful money of the United States, a certified or cashier's check from a Pennsylvania Bank"

3) How the heck am I supposed to know the amount to have my cashiers or certified check for if I dont know the final sale price ahead of time? "Lawful money" meaning cash? Really dont want to walk around with 10s of thousands in cash... 

4) Does anyone know what type of deeds Lancaster County PA releases after the sale/payment in full? It does not specify anywhere.

I have tried calling multiple times with no answer, may have to just drive up there. 

Thank all for the support and advice.

 Yes transfer taxes are owed, as well as a poundage to the sheriff which can amount from 2 to 3% of your bid price.  So plan on paying 4 to 5% on top of your bid.

There will be transfer taxes and poundage, but they must be taken from the amount paid per a court ruling. Only if the amount paid is insufficient to cover those costs will the buyer have to pay up more.