Inheritance Tax on purchased property

[Joe P.]

I purchased a vacant land property in PA for cash from someone who inherited the property from her parents.  I used a title company to close and purchased an owners policy title insurance.  I am reselling the property for almost double what I paid and the buyer chose to use a different title company.

The new title company recently contacted me and the title company I used to purchase to ask for proof that the full PA inheritance tax was paid and if not they need a letter of indemnity.  What is going on here and how can I get this property sold?  Am I going to be responsible for inheritance tax on a property that I didn't inherit?