The Real Estate Tax Receivership Program is an enforcement tool that gives a Court-appointed Receiver the authority to collect rents from a property and manage a tax-delinquent building until the debt is repaid. The delinquent owner will be deprived of any income from the property until the delinquency is resolved. Debtors will be notified by mail of the pending court action.
The City will file a petition with the Court of Common Pleas for the appointment of a Receiver. Once appointed, the Receiver will meet with tenants and building employees, collect rents, make necessary repairs, and pay expenses for the building, including current and back taxes. The Receiver, who is under contract with the City, is paid a management fee out of the rents collected from the building. All back taxes and the Receiver’s management fee must be paid before the management of the building can be returned to the original owner.
To avoid Receivership, pay your delinquent taxes.
Info for Owners of a Property in Receivership
If you fail to resolve your debt to the City and a Receiver is appointed, The Receiver will be authorized by the Court to direct you to turn over the keys, leases and other information about the property. If you do not comply, the Receiver will still take over management of the building and will commence collecting rents and paying expenses. You will not have the right to collect income from the property, or sell, lease or refinance the property while under receivership. The Receivership ends only when all debts to the City and management fees of the Receiver are paid.
Info for Tenants of a Property in Receivership
Tenants (residential and commercial) of properties with a Court-appointed receiver must pay rent to the Receiver and will direct all building management issues to them. The powers of the Receiver are laid out in the City’s contract with the Receiver, which you can request from the Receiver. Failure to pay rent to the Receiver can result in eviction. The Receivers are:
Sherman Toppin Law Firm, LLC
1800 JFK Boulevard, Suite 300
Philadelphia, PA 19103
To verify whether the property is in Receivership and with which Receiver, call the Department of Revenue at 215-686-0528