Bill Certification And Payoff Request Form

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TITLE ALERT
Title Alert 2009-03A
August 27, 2013
Philadelphia Nuisance Liens (Updated)
Ah Philadelphia, the City of Brotherly Love…but not loved by property owners receiving collection letters from a company
hired by the City to collect unpaid nuisance liens. Be advised that the collection company is issuing these letters by the
dozens, and that the lien “violation date” may predate our policy, although the search done at the time of closing had not
revealed any such nuisance lien in the City’s “Agency Receivables” system.
These liens represent fines for boarding up, removing rubbish, cutting high grass or similar work done by the City. The lien
exists from the date of the violation, and exists without the need for a separate filing in municipal court. To determine
whether liens are indexed against a property, the property address must be checked in both the “old nuisance system”
and the “new nuisance system.” Dual systems searching is required because the systems contain different data. These
searches may only be performed on a computer in City Hall, not online or in any other database. There are two separate
logins and the searches are free, but there is a cost to print the results when liens are found. A search which results in
“nothing found” cannot be printed: our only record of no liens will be the searcher’s notes that “both the old and new
systems searched: nothing found.” A lien which has been paid will still appear in the search results, but will have a $0.00
balance.
NOTE: The City is not promptly entering the liens in these systems but you can order a certification from the Department
of Revenue which will identify any “bills” in their system which have not yet been entered into the two public searchable
systems, and will also provide you with payoff amounts for known liens.
Effective immediately, please institute the following practices:
1. Instruct searchers to perform the lien search in both the old and new nuisance systems, provide printed results
when liens are found, and require a notation in the search when both systems were checked but results were
“nothing found”. Report liens on your application for title insurance, and check for additional liens on bringdowns
prior to closing and upon recording.
2. For ALL Philadelphia property transactions, regardless of any found liens,
Send updated Certification and Payoff Request Form to the updated number(s) below:
Philadelphia Dept of Revenue, Agency Receivables Fax: 215-686-7871 Tel: 215-686-2670
3. Foreclosure in chain or a pre-foreclosure search, when liens are found: these liens arise under the Municipal Lien
Act meaning they are a first lien from the date of assessment and as such, are not divested by giving the City
notice of the Sheriff’s Sale - these liens are divested in a Sheriff’s Sale only to the extent they are actually
paid. If the liens are not paid at the time of the Sheriff’s Distribution, open liens must be paid at the time of your
transaction.
For ALL Philadelphia property transactions, regardless of any found liens:
The following will appear on Schedule B of all Commitments and Policies:
“Possible outstanding City of Philadelphia Municipal Charges.”
If you have any questions, please contact us.
Note: Under the Approved Attorney system, the scope of our relationship is limited to the functions of underwriting and the issuance of title insurance
policies on your behalf and does not include closing or escrow services. We sometimes provide information and recommendations with regard to your
closing or escrow business as a courtesy to you. Moreover, some communications, depending on whether noncompliance could impact on liability
under our policies or closing protection letters, should be considered directives. This Advisory is being provided to you with those considerations in mind.
WARNING: This Underwriting Communication is intended solely for the employees of Penn Attorneys/Ohio Bar Title Insurance Company and its
Approved Attorneys, and is not to be distributed to third parties, and any reliance by any other person or entity is unauthorized. This Underwriting
Communication is intended solely for the purpose of underwriting policies of Ohio Bar Title Insurance Company.
***
900 State Street, Suite 320, Erie, PA 16501
(800) 352-2216 FAX (800) 234-2352

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