Key Takeaways
- Pennsylvania recognizes tenancy by the entirety for married couples, providing survivorship and creditor protection
- Joint tenancy with right of survivorship must be expressly stated in the deed
- Pennsylvania is a lien theory state where the borrower retains title and the lender has a lien
- Foreclosures in Pennsylvania are judicial and must go through the court system
- Pennsylvania has specific homestead protections for residential property
Pennsylvania Property Ownership and Rights
Important: This content covers Pennsylvania-specific property law. You should complete the National Real Estate Exam Prep first, as general property concepts are tested on the national portion.
Pennsylvania has specific rules for property ownership, including special protections for married couples.
Types of Ownership
Sole Ownership
One person owns the property:
- Full control
- Passes through probate at death
Tenancy in Common
Multiple owners with:
- Separate, undivided interests
- Can be unequal shares
- No right of survivorship
- Each share passes through owner's estate
Joint Tenancy with Right of Survivorship
Multiple owners with:
- Equal shares
- Right of survivorship
- Must be expressly stated in the deed
- Avoids probate
Pennsylvania Rule: To create joint tenancy with right of survivorship, the deed must expressly state this intent. Otherwise, concurrent ownership is presumed to be tenancy in common.
Tenancy by the Entirety
Special form of ownership for married couples only:
| Feature | Description |
|---|---|
| Ownership | Spouses own as one unit |
| Survivorship | Automatic - surviving spouse gets all |
| Creditor Protection | Creditor of one spouse cannot reach property |
| Termination | Only by death, divorce, or mutual agreement |
Tenancy by the entirety is automatically created when:
- Both spouses take title
- Property is for residential use
Lien Theory State
Pennsylvania is a lien theory state:
| Feature | Description |
|---|---|
| Borrower | Retains title to property |
| Lender | Holds a lien against property |
| Default | Lender must foreclose to acquire title |
Mortgage Documents
| Document | Purpose |
|---|---|
| Promissory Note | Promise to repay the loan |
| Mortgage | Creates lien on property |
Foreclosure in Pennsylvania
Judicial Foreclosure Required
Pennsylvania requires judicial foreclosure:
- Must go through court system
- Longer process than non-judicial states
- Borrower has due process rights
- Court supervises sale
Foreclosure Timeline
| Stage | Typical Timeframe |
|---|---|
| Default notice | After missed payments |
| Filing complaint | Lender files with court |
| Service | Borrower served with complaint |
| Response period | 20 days to respond |
| Judgment | If no defense or after hearing |
| Sheriff's sale | Public auction |
| Redemption period | No statutory right after sale |
Deficiency Judgments
Pennsylvania allows deficiency judgments:
- If sale proceeds don't cover debt
- Lender may pursue borrower for balance
- Fair market value considerations apply
Homestead Protections
Pennsylvania provides some homestead protections:
- Limited exemption in bankruptcy
- Protections vary by circumstance
- Does not provide unlimited homestead protection like some states
What type of ownership provides creditor protection for married couples in Pennsylvania?
Pennsylvania is what type of mortgage state?