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Ely
Ely, Counselor at Law
Category: Real Estate Law
Satisfied Customers: 102342
Experience:  Qualified attorney in private practice including business, family, criminal, and real estate issues.
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My business is in Beaver County, PA. My landlord for the

Customer Question

My business is in Beaver County, PA. My landlord for the real property where the business is located has gotten behind on the property taxes recently. It is scheduled for an upset sale in November if at least $4094.00 is not paid by then.. Can I just pay them and place a lien on the property? I am thinking this is safer than just lending her the money for a promissory note. What are the benefits and what are the risks? Can I ever get the money back?
Submitted: 11 months ago.
Category: Real Estate Law
Expert:  Ely replied 11 months ago.

Hello and welcome to JustAnswer. Please note: This is general information for educational purposes only and is not legal advice. No specific course of action is proposed herein, and no attorney-client relationship or privilege is formed by speaking to an expert on this site. By continuing, you confirm that you understand and agree to these terms.

Are you sure that it is up for sale? Not an property tax auction? Who is selling the property - the landlord, or it is being forced-sold by the county/municipality?

This is not an answer, but an information request. I need this information to answer your question. Please reply, so I can answer your question. Thank you in advance.

Customer: replied 11 months ago.
It is scheduled for an upset sale in November by Beaver County, PA
Customer: replied 11 months ago.
it is an auction
Expert:  Ely replied 11 months ago.
Thank you.
Can I just pay them and place a lien on the property?
Pay who - the landlord? Or the county? Either way, the answer is no. Until/unless the landlord loses the property, the payment goes to him. After the auction, the new owner takes over.
I am thinking this is safer than just lending her the money for a promissory note. What are the benefits and what are the risks? Can I ever get the money back?
If you mean you can WIN the auction, then great. If so, then you become the owner of the property for now. The redemption period is typically one year, where the former owner can still pay back what was owed, plus a hefty percentage and fees. Most never end up doing so. If the owner does not pay back within that year (or however long the period is, I believe it is a year), then someone in your situation would be the free and clear owner of the property. That is the benefit.
Risks are minimal in most cases HOWEVER one wants to ensure that no outstanding liens or other clouds on title will survive the auction sale.
I hope this helps and clarifies. Please use the SEND or REPLY button to keep chatting, or please RATE when finished. You may always ask follow ups at no charge after rating. Kindly rate my answer as one of TOP THREE FACES/STARS and then SUBMIT, as this is how experts get credit for our time. Rating my answer the bottom two faces/stars (or failing to submit the rating) does not give me credit and reflects poorly on me, even if my answer is correct. I work very hard to formulate an informative and honest answer for you; please reciprocate my good faith with a positive rating.
Customer: replied 11 months ago.
I meant just pay the county tax office the taxes and place a lien on the property.
Expert:  Ely replied 11 months ago.
Thank you. By "pay" - you mean win the auction, correct?
Customer: replied 11 months ago.
No. I meant pay the taxes before it goes to auction.
Expert:  Ely replied 11 months ago.
Ah, okay - thank you. Okay, let us start over? Please disregard my answer.
Can I just pay them and place a lien on the property?
You can. However, he would have to sign for any lien on the property.
I am thinking this is safer than just lending her the money for a promissory note. What are the benefits and what are the risks? Can I ever get the money back?
The risks are that he would fall behind AGAIN. If so, and if the county files to auction off again, your lien would likely be WIPED at auction and you would never be paid back fully. So this is a risk.
The benefits - the income from the interest building up on repayment.
Gentle Reminder: Please, use REPLY or SEND button to keep chatting, or RATE POSITIVELY and SUBMIT your rating when we are finished. You may always ask follow ups at no charge after rating.
Customer: replied 11 months ago.
is there interest on these types of liens? If so, what is the interest rate? Is this better than just lending the money to my landlord for a promissory note?
Expert:  Ely replied 11 months ago.
is there interest on these types of liens? If so, what is the interest rate?
This is a private contract between you and the landlord, and there can be an interest rate if you want to, and you control the rate. There is no "standard." However, depending on if the loan is personal or not, it may be subject to limitations:
www.usurylaw.com/state/pennsylvania.php
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Is this better than just lending the money to my landlord for a promissory note?
Well, a promissory note would be PART of the deal, normally. And a lien and/or the property literally being used as a collateral is also highly recommended.
Gentle Reminder: Please, use REPLY or SEND button to keep chatting, or RATE POSITIVELY and SUBMIT your rating when we are finished. You may always ask follow ups at no charge after rating.
Customer: replied 11 months ago.
Is there interest involved? If so what rate?
Expert:  Ely replied 11 months ago.
Just making sure you saw this:
This is a private contract between you and the landlord, and there can be an interest rate if you want to, and you control the rate. There is no "standard." However, depending on if the loan is personal or not, it may be subject to limitations:
www.usurylaw.com/state/pennsylvania.php
Gentle Reminder: Please, use REPLY or SEND button to keep chatting, or RATE POSITIVELY and SUBMIT your rating when we are finished. You may always ask follow ups at no charge after rating.
Expert:  Ely replied 11 months ago.
Hello again. This is a courtesy check in to see if you needed anything else in regards ***** ***** question because you never responded or replied positively. I am simply touching base. Let me know. Thanks!