Legal Question in Real Estate Law in Pennsylvania

Greetings Counsel: TWO QUESTIONS: 1) I have been in a rent-to-own agreement (appx. 3 years) with a couple who uses tow names--one for the real estate and the other for rental payment toward purchase. Although NOT mentioned in the lease agreement, a missed rental payment is subject to a $50 late fee upon the signing of a "Last Chance Agreement" granting Lessor to evict if both the rent and late fee are not paid within specified time. Having missed one payment in December 2016, I was recently presented with a a bill including $2, 288.00--the result of, in essence, a "revolving late fee". I am nearly convinced--after my research the this practice is in violation of 15 U.S.C. 1601 ss. 808 and other Federal Law regarding disclosure and the application of late fees. PLEASE ADVISE. 2) I am a 100-percent disabled USN (Persian Gulf) vetran who, under PA. law is not required to pay property tax, however, I am in conflict with the landlords and the (Washington) county tax bureau as to who really owns the property. PLEASE ADVISE. P.S.--I have been in litigation with a local auto dealership (negligence ) and a private individual (contract for money) and will, if forced, make a test case in hope of setting a precedent concerning late fees, etcetera, in PA real estate law, as the Commonwealth has no law concerning that issue. If you can offer any thoughts , then please do.. Thank you for your attention to this matter. Respectfully, C.F. M., Jr.


Asked on 5/20/16, 12:45 pm

1 Answer from Attorneys
John Davidson Law Office of John A. Davidson

First, the limits on late fees falls under The Landlord Tenant Act of 1951. Second how that applies to a land contract is complicated, However, the PA Unfair Trade Practices/ Consumer Protection law clearly applies.

As to who is the legal owner of the property should be in the contract. Based on how one-sided this contract is I would guess you don't actually get title till the last payment is made.

Before you signed this agreement you should have had it reviewed by an attorney. It sounds horribly one sided.

{John}

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Answered on 5/20/16, 12:58 pm


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