Plain-language, Pennsylvania-specific definitions of the legal and practical concepts that come up in nearly every conversation with a distressed seller. Each entry links to the ABE situation page where the term applies in practice.
External links go directly to the authoritative source (PHFA, PA Dept of Revenue, Wikipedia, etc.). This isn't legal advice — always consult a PA-licensed attorney for your specific situation.
Also known as: InterNACHI
The largest non-profit professional inspector organization in North America. InterNACHI sets training, ethics, and continuing-education standards for home inspectors across the United States and Canada.
Authoritative sources
Also known as: CPI · Certified Professional Inspector
The professional credential awarded by InterNACHI to inspectors who complete the required training, pass the InterNACHI Inspector Examination, perform required mock inspections, and maintain annual continuing-education hours. Holders may include their unique cert ID — Mike Sup of ABE Homes is Cert #21032009 (since 2010).
Authoritative sources
Also known as: Act 91 of 1983 · Pennsylvania Homeowner Emergency Mortgage Assistance Notice
A pre-foreclosure notice required by Pennsylvania law (35 P.S. § 1680.402c) that mortgage lenders must send Pennsylvania homeowners at least 30 days before filing a foreclosure complaint. The notice informs the homeowner of the right to apply for HEMAP (the state's Homeowners' Emergency Mortgage Assistance Program) and pauses the lender's ability to file until the cure window expires.
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Where this applies on ABE Homes
Also known as: HEMAP · PA HEMAP
A Pennsylvania state loan program administered by the Pennsylvania Housing Finance Agency (PHFA) that provides emergency mortgage assistance to homeowners facing foreclosure due to circumstances beyond their control (job loss, medical emergency, etc.). HEMAP funds bring the mortgage current and may continue to pay monthly installments for up to 24 months. Applications are triggered by the Act 91 Notice.
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Where this applies on ABE Homes
Also known as: Foreclosure by court action
Pennsylvania is one of approximately 22 U.S. states that require all residential foreclosures to proceed through the court system rather than via non-judicial trustee sale. The process generally runs 4–7 months from the lender's complaint filing through sheriff sale, with required Act 91 notice and HEMAP-eligibility windows.
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Where this applies on ABE Homes
Also known as: Sheriff's sale · Sheriff's auction
The public auction step at the end of a Pennsylvania judicial foreclosure, conducted by the county sheriff's office at the county courthouse. Lehigh County holds sheriff sales on the second Friday of each month; Northampton County holds them monthly at the Easton courthouse. The property is sold to the highest bidder (which is often the foreclosing lender itself).
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Where this applies on ABE Homes
Also known as: 23 Pa.C.S. § 3502
Pennsylvania's statutory framework (23 Pa.C.S. § 3502) for dividing marital property during divorce. Unlike community-property states that default to 50/50 division, Pennsylvania courts divide marital assets based on what is equitable considering 11 enumerated factors — including the duration of the marriage, contributions to the marriage, and the economic circumstances of each spouse at divorce.
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Where this applies on ABE Homes
Also known as: Pennsylvania Probate, Estates and Fiduciaries Code · Title 20 Pa.C.S.
The court-supervised process in Pennsylvania for administering a decedent's estate, governed by Title 20 of the Pennsylvania Consolidated Statutes (the Probate, Estates and Fiduciaries Code). Each Pennsylvania county has a Register of Wills office that opens probate; full probate typically runs 6–12 months. Real property in the estate may be sold during probate by the executor or administrator without waiting for full estate closure.
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Where this applies on ABE Homes
Also known as: PA inheritance tax
A state tax assessed on transfers of property at death by the Pennsylvania Department of Revenue. Rates are tiered by relationship to the decedent: 0% for surviving spouses and qualifying charities, 4.5% for lineal descendants (children, grandchildren) and lineal heirs, 12% for siblings, and 15% for all other beneficiaries. The tax must be filed and paid before the estate fully closes.
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Where this applies on ABE Homes
Also known as: Cash buyer · We-buy-houses company
A real estate buyer that purchases residential property without mortgage financing, typically paying the full purchase price from existing capital and closing in days rather than weeks. Cash buyers usually purchase as-is (no repair contingencies) and may close before a traditional listing's contingencies could be cleared. Reputable cash buyers do not change the offer between contract and closing; inspector-owned cash buyers (such as ABE Homes) walk the property themselves and avoid the third-party-inspector revision pattern.
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Where this applies on ABE Homes
Also known as: PA RTT · Realty transfer tax · 61 Pa. Code § 91
Pennsylvania assesses a 1% state realty transfer tax on the value of every real estate transfer, collected by the Recorder of Deeds at the time the deed is recorded. Most municipalities and school districts impose an additional 1% local tax — Allentown, Bethlehem, and Easton all run at the full 2% combined rate (1% state + 0.5% city + 0.5% school district), splitting the cost by custom between buyer and seller (often 50/50). The seller's share is settled at closing out of the proceeds.
Authoritative sources
Also known as: Section 121 exclusion · § 121 home sale exclusion
Under IRS Section 121, a homeowner who has owned and used a property as their primary residence for at least 2 of the previous 5 years can exclude up to $250,000 of capital gain ($500,000 if married filing jointly) from federal income tax on sale. Pennsylvania also exempts the same gain from PA personal income tax on real estate sold as a principal residence (61 Pa. Code § 103.13). Distressed-sale sellers frequently qualify — the exclusion is one of the most material financial facts to confirm before closing.
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Where this applies on ABE Homes
Also known as: Quit claim deed · Quit-claim deed
A deed by which the grantor transfers whatever interest they have in a property, without warranting that the interest is valid or that the title is clear. Common in inheritance, divorce, and intra-family transfers where the parties already know the title state. Distinct from a general warranty deed (which guarantees clear title) or special warranty deed (which guarantees only against the grantor's own acts). In Pennsylvania, quitclaim deeds are recorded at the county Recorder of Deeds along with the realty transfer tax payment.
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Where this applies on ABE Homes
Also known as: Notice of pendency · Pending lawsuit notice
A public notice filed in the county property records that a lawsuit affecting the title to a specific piece of real estate is pending. In Pennsylvania, a lis pendens is automatically created when a foreclosure complaint is filed and indexed by the prothonotary against the property. The notice 'clouds' the title — third-party buyers and lenders are deemed to have constructive notice, which usually prevents a clean sale until the underlying action resolves or the lis pendens is discharged. Cash buyers who specialize in distressed property can sometimes close around an active lis pendens by paying off the lender directly at settlement.
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Where this applies on ABE Homes
Also known as: PA municipal claim · Municipal claim lien
Under Pennsylvania's Municipal Claims and Liens Act (53 P.S. § 7101 et seq.), cities can attach a lien to a property for unpaid water/sewer charges, code-enforcement penalties, demolition costs, or other municipal services. The lien travels with the title — a buyer taking the property generally takes it subject to all recorded municipal liens unless they're paid off at settlement. Allentown, Bethlehem, and Easton all actively use municipal liens against vacant or code-cited properties. When ABE Homes purchases a property with open municipal liens, the liens are paid off out of the closing proceeds so the seller walks away clean.
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Where this applies on ABE Homes
Written by
Mike SupInterNACHI Certified Professional Inspector · #21032009 · speaks English & Spanish
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