Lessors of Other Real Estate Property Forms for Philadelphia

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FAQ

Wholesaling real estate is a viable investment strategy and legal in Pennsylvania without a license (outside of Philadelphia) if the wholesaler stays within the legal lanes and guidelines established by Pennsylvania lawmakers.

Philly Rules As of January 19th of this year, Philadelphia will require a residential property wholesaler license in an effort to crack down on wholesalers who the city believes are taking advantage of naive property owners in up-and-coming neighborhoods.

Other transactions which are excluded from tax include: (1) A transfer to the United States or the Commonwealth or to an instrumentality, agency or governmental body of either if the transfer is: (i) In lieu or confirmation of a taking by eminent domain.

The tax is usually split evenly between the buyer and the seller, but this is not a legal requirement. The City has the right to collect 100% of the tax from either party, so it's in the best interest of the buyer to make sure the tax is paid in full at the closing of the sale.

To transfer property in Pennsylvania, you'll need to prepare and execute a deed and record it in the county where the property is located. If the transfer was in exchange for money, you'll have to pay transfer tax.

Pennsylvania issues both Sales Tax Licenses and Wholesaler's Certificates. Those who make taxable sales to the ultimate consumer are required to have a Sales Tax License. Those who only sell to retailers can apply for a Wholesaler's Certificate.