Common Issues in Pennsylvania Real Estate Transactions: What Buyers and Sellers Need to Know

Buying or selling real estate is one of the most significant financial decisions a person can make. Whether you're a first-time homebuyer, seasoned investor, or selling inherited property, real estate transactions in Pennsylvania come with a host of potential issues that can delay closings, result in litigation, or even derail the deal entirely.

In this post, we explore the most common issues in Pennsylvania real estate transactions and explain how to proactively address them—with guidance from experienced attorneys to ensure a smooth process from offer to closing.

1. Title Defects and Liens

What It Is:

Title defects are issues that affect ownership rights. These may include:

• Old unreleased mortgages

• Judgments or tax liens

• Boundary disputes

• Unknown heirs or prior conveyancing errors

In Pennsylvania, title defects are often discovered during the title search and can complicate or block a sale if not resolved.

How to Avoid It:

Engage a reputable title company early in the process and review the preliminary title report. Sellers should clear known liens or obtain title insurance that covers buyers.

2. Unpermitted Property Improvements

What It Is:

Homeowners sometimes add decks, finish basements, or expand driveways without obtaining proper permits. When unpermitted work is discovered, it can delay closing or require costly remediation.

How to Avoid It:

Sellers should disclose all known improvements and provide documentation. Buyers should conduct thorough inspections and check with local municipalities regarding permits and code compliance.

3. Boundary Line and Easement Disputes

What It Is:

Disputes often arise over fences, driveways, or structures that cross property lines. Easements—legal rights for others to use a portion of your property—can also create conflict if not properly disclosed.

How to Avoid It:

A survey conducted as part of the due diligence process helps confirm boundaries. Buyers should also carefully review the title report for recorded easements or encroachments.

4. Undisclosed Material Defects

What It Is:

Pennsylvania requires sellers to complete a Seller’s Property Disclosure Statement, disclosing known material defects. Failing to disclose water damage, foundation issues, or pest infestations can lead to post-closing lawsuits.

How to Avoid It:

Sellers must be honest and thorough on disclosure forms. Buyers should order home, pest, and radon inspections and consider legal advice before signing waivers.

5. Incomplete or Ambiguous Agreements of Sale

What It Is:

The Agreement of Sale is a legally binding contract in Pennsylvania. If terms such as contingencies, financing, or repairs are vague or incomplete, disputes can arise.

How to Avoid It:

Have an attorney review or draft the Agreement of Sale. Customized clauses can address unique issues like septic inspections, oil rights, or subdivision approval.

6. Septic and Well System Compliance

What It Is:

In rural areas of Pennsylvania, many homes rely on private septic and well systems. Local regulations may require inspection, testing, or certification prior to closing.

How to Avoid It:

Ensure inspection contingencies are included in the agreement. Verify compliance with municipal or county ordinances early to avoid delays.

7. Delays in Mortgage Approval or Financing

What It Is:

Even pre-approved buyers can run into issues with mortgage underwriting. Appraisal shortfalls, credit changes, or employment verification problems can cause deals to fall apart.

How to Avoid It:

Maintain strong communication with your lender and provide requested documentation promptly. Sellers should require buyers to provide a mortgage commitment letter by a set deadline.

8. Zoning and Land Use Restrictions

What It Is:

Zoning laws regulate how a property can be used—residential, commercial, agricultural, etc. Buyers intending to repurpose property must confirm zoning compliance and determine if variances or special exceptions are needed.

How to Avoid It:

Conduct due diligence with the municipal zoning office. Consider hiring a land use attorney to navigate variance applications or land development ordinances.

9. Oil, Gas, and Mineral Rights

What It Is:

In Pennsylvania, especially in Marcellus Shale regions, the surface owner may not own the mineral rights. A third party could have the right to extract oil or gas beneath your land.

How to Avoid It:

Have an attorney review the deed and title for severed mineral rights or active leases. Buyers should weigh the impact on property value and use.

10. Delays in Probate When Selling Inherited Property

What It Is:

When a property is inherited, the estate must often go through probate before the property can legally be sold. Delays in probate can hold up closing.

How to Avoid It:

Engage a probate attorney early to expedite the estate administration process. Consider petitioning the Orphans’ Court for authority to sell real estate if necessary.

11. Problems With Homeowners' Associations (HOAs)

What It Is:

Properties governed by HOAs may have restrictive covenants and mandatory fees. Buyers unaware of these rules can be caught off guard post-closing.

How to Avoid It:

Sellers are required to provide a resale certificate. Buyers should review the governing documents, fee schedules, and minutes from recent HOA meetings.

12. Legal Descriptions That Don’t Match Survey or Deed

What It Is:

The legal description on the deed must match what's physically on the ground. Any discrepancies can prevent the new deed from being recorded.

How to Avoid It:

Verify the legal description during the title search and have a professional survey conducted, especially for acreage or irregular parcels.

13. Municipal Code Violations or Open Permits

What It Is:

Unresolved code violations or open building permits can result in fines or stop-work orders after the sale.

How to Avoid It:

Request a municipal lien letter and verify compliance with local codes before closing. This is a standard part of Pennsylvania real estate transactions, but due diligence is still needed.

14. Deed Preparation Errors

What It Is:

Incorrect names, legal descriptions, or formatting errors on the deed can prevent it from being recorded and could cloud the title.

How to Avoid It:

Deed preparation should be handled by a Pennsylvania-licensed attorney to ensure all statutory requirements are met.

15. Wire Fraud and Cybersecurity Threats

What It Is:

Wire fraud is a growing threat in real estate transactions. Scammers often spoof emails to trick parties into sending funds to fraudulent accounts.

How to Avoid It:

Verify all wire instructions verbally with your closing agent or attorney using known phone numbers. Never trust wiring information sent solely by email.

Real estate transactions in Pennsylvania are governed by a patchwork of common law, statutes, and local ordinances. A misstep at any stage—due diligence, financing, title work, or closing—can result in significant financial loss or litigation. Having an experienced attorney on your side ensures your interests are protected.

At Ament Law Group, we routinely assist:

• Buyers seeking peace of mind in residential transactions

• Sellers navigating inherited property or estate-related sales

• Investors managing complex title, zoning, or lease issues

• Business owners buying commercial real estate

• Families resolving disputes over boundary lines or shared ownership

If you're buying or selling property in Pennsylvania, don’t let avoidable legal issues derail your transaction. The experienced real estate attorneys at Ament Law Group, P.C. can guide you every step of the way—from negotiation to closing.

Call us today at (724) 733-3500 or visit www.ament.law to schedule a consultation and protect your investment with confidence.