Handling Deceased Tax Sale Property No Heir/Will

[Benjamin Orr]

I recently bought my second property since being on BP. Maybe I should have stuck to simpler routes, but I wanted to do PA Tax Deed sale. I did my homework, worked the numbers, and won the bid. After buying a nice smaller SFH and talking to a neighbor, I found out that the property I bought belonged to a deceased woman (died April 2014 the tax year of sale) with what appears to be no heirs.

There is no mortgage or other liens on the property.  Someone appears to be mowing the lawn sporadically and someone has at least collected the mail at some point (though not recently).  I get my title in 4 months after the waiting period is passed.  My research recommends getting a Quiet Action title, but here are some concerns the experts or Pennsylvania natives could shed some light into:

1. What should/can I do with her personal property? Do tenant laws apply since she isn't a tenant of mine?
2. What can I do to the property? Can I change locks or winterize?
3. Should I be concerned about any inheritance tax?
4. Why was there no estate set up to handle the process of property and taxes?
5. Are there any other areas I should be concerned about?

[David Krulac]

@Benjamin Orr

1. At Tax Sale you do not buy the personal property.

2.  There very well could be heirs, just because there is no will, doesn't mean no heirs.

3.  I wouldn't change the locks until I had the deed.

4.  Find out who's mowing the grass and why.

5.  Yes you will owe the Pa. State Inheritance tax which starts at dollar one and will be in your case 15% of the value of the estate.   

6.  There can be many reasons for no estate, sometimes heirs don't want to spent the money.

7.  There may be UNRECORDED liens, like welfare department, nursing home or mechanics leins, you would be responsible for all of those also.

8.  Did you do a title search?  Did you do a complete 60-100 year search, there could be liens judgments and taxes from prior owners.   One case I'm familiar with there were unpaid taxes from 1919, yes 97 years ago, still due and accruing interest, fortunately the amount was small.

9.  I say that Tax Sales are the most hazardous and dangerous ways to buy real estate, and I mean what I say.

10.  At the SF bay Summit recently held by @J. Martin I spoke on tax sales.