Pennsylvania · contract for deed
Pennsylvania contract for deed, explained.
A plain-English guide to contract for deed (also called land contract) in Pennsylvania — statute, recording, default remedies, interest caps, and where deals actually happen.
Installment Land Contract Law, 68 P.S. §§ 901–910 (applies to Philadelphia and Allegheny counties for residential properties under specified threshold)
Recording permitted with county Recorder of Deeds under 21 P.S. § 351; not statutorily mandated. Realty transfer tax may apply on execution.
Hybrid. Under 68 P.S. § 905, in covered counties, seller must give 30-day notice and chance to cure; if buyer has paid 25% or more, seller must foreclose like a mortgage. Outside covered counties, common-law forfeiture is permitted but courts often invoke equity.
Is contract for deed legal in Pennsylvania?
Pennsylvania recognizes 'installment land contracts' (also called 'articles of agreement'). The Installment Land Contract Law applies only to residential transactions in Philadelphia and Allegheny counties; elsewhere governed by common law.
How do you record a contract for deed agreement in Pennsylvania?
Recording permitted with county Recorder of Deeds under 21 P.S. § 351; not statutorily mandated. Realty transfer tax may apply on execution.
What happens if the buyer defaults?
Hybrid. Under 68 P.S. § 905, in covered counties, seller must give 30-day notice and chance to cure; if buyer has paid 25% or more, seller must foreclose like a mortgage. Outside covered counties, common-law forfeiture is permitted but courts often invoke equity.
What is the maximum interest rate?
6% legal rate under 41 P.S. § 202; higher rates for residential mortgages over $50,000 or commercial loans under Act 6.
What disclosures are required?
Seller's Property Disclosure under 68 Pa.C.S. § 7301 et seq. for residential; lead-based paint (federal); Act 6 disclosures may apply if treated as residential mortgage.
Who's protected — buyer vs. seller
Buyer protections
In Philadelphia/Allegheny: foreclosure required after 25% paid, cure rights, statutory notice. Statewide: equitable conversion doctrine; courts reluctant to enforce harsh forfeitures.
Seller protections
Common-law forfeiture remedies outside covered counties; ability to confess judgment if contractually authorized; ejectment proceedings.
Where in the state do these deals happen?
Inner-city Philadelphia and Pittsburgh row-home sales; rural Central PA land; Amish-area farm transfers; small commercial.
Pennsylvania cities
Per-city market notes for contract for deed buyers and sellers.
Notable case law
Anderson Contracting Co. v. Daugherty, 274 Pa. Super. 13 (1979); Kaiser v. Old Republic Ins. Co., 741 A.2d 748 (Pa. Super. 1999).
Looking at a Pennsylvania deal?
Send the parcel and the terms — we'll walk through whether contract for deed fits, how to record it, and what the cure period looks like if things go sideways.
Talk to WyattEducational content only. Statute citations are public-record research, not legal advice. Pennsylvania contracts and remedies are fact-specific — consult a licensed Pennsylvania real-estate attorney before signing anything.