Agents insuring transactions in Philadelphia need to be aware that the City has contracted with a company to collect on unpaid nuisance liens. As a result, the company is issuing letters attempting to collect for service performed for which nuisance liens were not properly filed.  These letters often indicate a violation date that predates policies issued by your agency, even though a search was done prior to closing disclosing no outstanding liens.

Searchers are required to check both the old nuisance lien system and the new nuisance lien system.  These systems can only be accessed in City Hall and are not available online.  If liens are discovered, require your searcher to send you a print out of the applicable lien(s).  However, if no liens are found, the searcher will have to indicate on the abstract that both systems were searched and no liens were found; he/she is unable to print anything from either system indicating that.

If your searcher is unable to perform searches on both lien systems, you must include the following requirement on the Schedule B Section I of the commitment:

Possible outstanding City of Philadelphia Municipal Charges to be removed upon submission and completion of a "Bill Certification and Payoff Request Form" by the City of Philadelphia.

 Click here to obtain a copy of the above referenced form.

Should you have any questions, please contact our underwriting counsel: Paula Mack, Steve Gratman, Sue Swick, or Dwight Edwards.