Lessors of Real Estate Forms for Philadelphia
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FAQ
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.
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.
Pennsylvania realty transfer tax is imposed at a rate of 1 percent on the value of real estate (including contracted-for improvements to property) transferred by deed, instrument, long-term lease or other writing. Both grantor and grantee are held jointly and severally liable for payment of the tax.
Realty Transfer Tax The Commonwealth of Pennsylvania collects 1% while the City of Philadelphia collects 3.278% for a total of 4.278%. Luckily, it is customary (but not legally required) for the buyer and seller to split the transfer taxes evenly. In most cases, the buyer will pay 2.139% and the seller will pay 2.139%.
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.