Loan Estimate Challenges
Pennsylvania’s Biggest LE Challenges

The Commonwealth of Pennsylvania holds a special place in our hearts, since it’s where LodeStar calls home.

Pennsylvania does offer a handful of challenges for those assembling Loan Estimates for transactions occurring there. 

Statewide Transfer Taxes

Pennsylvania charges a statewide transfer tax of at least one percent from the buyer and an additional one percent from the seller. In some areas, the price is even higher, making Pennsylvania one of the most expensive states in the country in terms of transfer taxes.

Local Transfer Taxes

Counties, townships and municipalities also play a major role when it comes to transfer taxes, and can vary. In many cases, townships within the same county will deviate from the county rate. The greater Pittsburgh are—Allegheny County, in particular—offers  a unique twist in that the school district has the unusual ability to, in essence, dictate the nature of its transfer tax.

Recording Fees May Vary

Each county has its own recording fee schedule, which is subject to change independently from the other counties.

Title Insurance

It’s worth noting that, while many states do not have different policies or surcharges for the use of a short form title policy, Pennsylvania charges $200 (at the time of this writing) for their use.

When it comes to title insurance, Pennsylvania is a state of promulgated title rates. However, it should be noted that the state sometimes uses a different naming convention regarding endorsements than most. For example, the PA 900 and PA 1030 are analogous to the ALTA 8.1 and ALTA 9.1.




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