In a recent decision, our real estate litigation team successfully overturned an upset tax sale Pennsylvania in Scheider v. Fayette Co. Tax Claim Bureau, et al., Fayette Legal Journal, vol. 87, No. 10 (March 9, 2024).
The case involved a family’s recreational second home sold for less than $500 in past due taxes. The issue was the Fayette County Tax Claim Bureau’s defective mailing of statutorily required notices, which prevented the property owners from receiving notice of the sale.
- A Pennsylvania court overturned an upset tax sale after a family lost a second home over less than $500 in taxes.
- The tax bureau reversed the owner’s name on mailed notices and USPS returned them as “insufficient address,” meaning no notice was received.
- The court ruled strict notice rules matter and even small mailing errors can void a sale.
- If you missed notice or received returned mail, this decision shows a sale may be challenged.
What Went Wrong
The Bureau sent the notices, but the envelopes reversed the taxpayer’s name, addressing them as “Doe John” instead of “John Doe.” USPS returned the mail as “insufficient address,” meaning the property owner never received the notices. The Court found that this improper addressing made the notices invalid and the sale could not stand. Key points include:
- The taxpayer never received the mailed notices.
- The record showed USPS “insufficient address” notifications were returned to the Bureau.
- The Court held that the upset tax sale must be overturned.
Statutory Notice Requirements
The Court emphasized that the Bureau must follow the law strictly:
- Each owner must receive notice of sale at least thirty (30) days before the sale via United States certified mail, restricted delivery under 72 P.S. § 5860.602(e)(1).
- If the Bureau does not receive a return receipt from the owner, a similar notice must be sent by first-class mail with proof of mailing to the last known address (72 P.S. § 5860.602(e)(2)).
The Court cited In re Tax Claim Bureau of Lehigh County, 381 A.2d 511, 512 (Pa. Cmwlth. 1978):
“Notice provisions of tax sale statutes must be strictly complied with in order to guard against the deprivation of property without due process of law.”
The Court further explained, quoting LaBracio v. Northumberland County, 467 A.2d 1221, 1224 (Pa. Cmwlth.1983):
“When an individual’s property rights are at stake, due process requires that he or she be identified with clarity and without disguise so that those rights may be asserted and the owners may fully protect his or her interest in the property concerned.”
The Outcome
The Court ultimately set aside the tax sale, allowing the family to keep their recreational second home for future generations. The decision highlights how critical proper notice is under Pennsylvania law, particularly in an upset tax sale Pennsylvania matter where strict compliance with statutory requirements is required.
If you experienced a similar lack of notice or believe required tax sale mailings were improperly addressed or returned as undeliverable, that defect may be relevant to whether an upset tax sale proceeding can be challenged.
Contact Eric B. Smith, Esquire at 215-540-2653 or esmith@timoneyknox.com.
You may also view our prior article Strict Compliance Required: Notice Requirements Before the Tax Sale of Your Home for a more expansive discussion of Pennsylvania’s Tax Sale Law.
