What to check before you close a Pennsylvania property deal in 2026

Pennsylvania commercial property has two environmental checks that define its brownfield and contaminated site market: Act 2 (Pennsylvania Land Recycling Program), which provides statutory liability relief for contaminated site buyers who complete cleanup to DEP-approved standards, and the Horsham/Willow Grove PFAS contamination plume in Montgomery County - one of the most significant military PFAS groundwater events in the Northeast, affecting municipal water supplies for over 25,000 residents.

Pennsylvania's Realty Transfer Tax runs 2% of purchase price on most commercial real estate transactions: 1% to the Commonwealth plus 1% to the local municipality. Philadelphia is the major exception: Philadelphia's local rate is 3.278% (city plus school district), making the total Philadelphia RTT 4.278%. The RTT is typically split between buyer and seller (each paying 1% in most PA locations; in Philadelphia, buyer conventionally pays 1% and seller pays 3.278%, though this is negotiable).

Pennsylvania Act 2 (Land Recycling and Environmental Remediation Standards Act, 35 P.S. § 6026.101 et seq.) is the brownfield liability protection mechanism every commercial buyer should understand before bidding on any PA industrial or contaminated site. Under Act 2, a buyer who completes cleanup to one of three standards (Background, Statewide Health, or Site-Specific) and receives PA DEP approval of a Final Report gets a release of liability from the Commonwealth for the remediated contamination. That release is the standard PA brownfield clearance document required by institutional lenders.

Marcellus Shale gas production covers a large swath of Pennsylvania; commercial properties in the Marcellus Shale footprint (SW and NE PA primarily) may have pipeline easements, well pad setbacks, and produced water concerns. Pennsylvania has no transfer tax exemption for Marcellus Shale-related conveyances.

Set up an Ellty real estate data room before diligence opens. Load ALTA title, PA DEP Act 2 records, Phase I ESA, PFAS screening, and lease files before advisors arrive.

Where Pennsylvania property deals go wrong

Not every check carries the same weight. The table below sorts risks by deal impact - dealbreakers first, then what moves the price, then basic hygiene - so your PA attorney and environmental consultant know what to clear first.

Pennsylvania CRE checklist

The table ranked risks by severity. This is the full list to work through, grouped by area.

Title - county recorder of deeds

• Order the ALTA owner's title commitment from a PA-licensed title insurer on day one
• PA property records are maintained at the county recorder of deeds; title searches run against the county grantor-grantee index; PA county recorder offices have varying levels of online access
• PA does not legally require an attorney for commercial real estate closings; title companies can close PA commercial transactions; however, attorneys are commonly involved in significant PA commercial deals
• Pennsylvania municipal lien priority: PA municipalities have statutory priority lien rights for unpaid water, sewer, and certain municipal service charges; these municipal liens can take priority over first mortgages; the title search must specifically check for municipal claims
• PA tax claims: in PA, unpaid real property taxes can result in a tax claim filed at the county tax claim bureau; a tax claim that is not redeemed can result in judicial sale; confirm no outstanding PA tax claims against the property
• UCC fixture filings: search PA Department of State UCC database for fixture filings against the commercial parcel
• Commission ALTA/NSPS survey for all significant PA commercial acquisitions

PA Act 2 - Land Recycling Program brownfield clearance

• Search PA DEP's eSite Tracker database for any Act 2 or pre-Act 2 environmental remediation records for the property address
• Pennsylvania Act 2 (Land Recycling and Environmental Remediation Standards Act, 35 P.S. § 6026.101 et seq.): Act 2 provides a statutory liability relief mechanism for buyers of contaminated PA commercial property who complete cleanup to one of three standards:

1. Background Standard: cleanup to naturally occurring concentrations 2. Statewide Health Standard (SHS): cleanup to PA DEP statewide numeric cleanup standards for soil and groundwater 3. Site-Specific Standard (SSS): cleanup to site-specific risk-based standards developed by the buyer's licensed environmental professional - Act 2 clearance document: upon DEP approval of a Final Report (which documents cleanup completion), DEP issues an acknowledgment letter that includes a statutory release of liability from the Commonwealth for the remediated contamination; this is the standard PA brownfield clearance required by institutional lenders - For any PA commercial property with industrial history or documented contamination: check eSite Tracker; if no Act 2 case exists, the buyer starting the process from scratch must budget 6-24 months for Act 2 completion depending on contamination extent - Act 2 cleanup standards run with the land and impose ongoing land use restrictions (through Act 2 covenants recorded in the deed chain) if the cleanup was completed under the Statewide Health Standard with residual contamination

Set up each advisor's access in Ellty. PA attorney sees title chain and municipal lien records. Environmental consultant sees DEP eSite Tracker and Phase I/II. Act 2-specialized environmental professional sees Final Report and DEP acknowledgment. Lender sees Act 2 clearance and valuation.

PFAS - Horsham/Willow Grove NAS Montgomery County

• Search PA DEP's PFAS database and EPA's PFAS contamination site locator for the property location
• NAS Willow Grove/Horsham PFAS contamination: Naval Air Station Willow Grove (Horsham Township, Montgomery County) and the adjacent Horsham Air Guard Station were closed in 2011; prior to closure, AFFF containing PFAS compounds was used extensively at the flight line; PFAS contamination of groundwater and municipal water supply wells in Horsham, Hatboro, Warminster, and surrounding communities affected over 25,000 residents
• PA DEP PFAS response: PA DEP has been monitoring and responding to the Horsham PFAS plume; several municipal water authorities in Montgomery County installed treatment systems; some areas continue to have PFAS-affected groundwater
• For any commercial property in Horsham, Hatboro, Warminster, Horsham Township, or surrounding Montgomery County municipalities: commission Phase I ESA with PFAS addendum; for private-well dependent sites: commission PFAS well water testing
• Other PA PFAS sites: PA DEP maps PFAS contamination at multiple locations statewide beyond Horsham; search PA DEP's PFAS database for any PA property before finalizing the Phase I scope

Environmental - Pittsburgh, Philadelphia, and statewide

• Commission Phase I ESA meeting ASTM E1527-21 from a PA DEP-familiar environmental professional
• PA DEP eSite Tracker: publicly searchable database of PA contaminated sites under Act 2, HSCA, and pre-Act 2 remediation programs
• Pittsburgh brownfield: Allegheny County has significant steel industry contamination legacy; the Pittsburgh metro brownfield opportunity is substantial (Hazelwood Green on the former LTV Steel Hazelwood site is a 178-acre brownfield redevelopment), but brownfield Phase II is effectively the expected deliverable for PA institutional lenders before loan commitment on former mill sites
• Acid mine drainage (AMD): PA has more miles of AMD-impacted streams than any other state; central and western PA commercial properties near stream corridors affected by AMD should be assessed for stream water quality and any commercial water use impacts
• Philadelphia industrial corridor: Kensington, Port Richmond, South Philadelphia, and the Delaware River waterfront have documented industrial contamination from decades of manufacturing, tanning, and petroleum operations

Track advisor document access in Ellty. If the environmental consultant accesses the DEP eSite Tracker records and the Act 2 case files repeatedly, they're building the Phase II and Act 2 timeline picture. Know before the formal report.

Marcellus Shale - pipeline easements and well setbacks

• Search PA DEP oil and gas well records for any active or plugged Marcellus Shale wells on or near the commercial parcel; PA DEP maintains a publicly searchable well records database
• Pipeline easements: Marcellus Shale production requires extensive gathering pipeline infrastructure; pipeline easements recorded at the county recorder can significantly affect commercial development plans; search county recorder records for any recorded pipeline easements or ROW deeds
• PA Act 13 setbacks: Act 13 (58 Pa.C.S. Chapter 32) established minimum setbacks for oil and gas well operations from buildings and occupied structures; the setbacks may affect commercial development planning near active gas wells
• Legacy gas wells: western PA has thousands of legacy oil and gas wells from 19th and early 20th century production; many are unplugged or inadequately plugged; methane migration from legacy wells into commercial building foundations is a documented risk in western PA
• For any commercial property in Greene, Washington, Westmoreland, Fayette, Armstrong, Lawrence, or Butler counties (SW PA) or Bradford, Lycoming, Tioga, Sullivan, or Susquehanna counties (NE PA): check for active or abandoned oil and gas wells in the PA DEP database

Coal mine subsidence - central and western PA

• Check the PA DEP Bureau of Mining Programs mine map database for any underground mine workings beneath or near the commercial parcel; mine maps are publicly available through PA DEP
• Pennsylvania mine subsidence: PA has more surface land underlain by abandoned underground mines than any other state; commercial buildings constructed over shallow mine workings can experience subsidence (surface collapse or settlement) as mine pillars and roofs deteriorate over time
• Affected counties: Lackawanna and Luzerne counties (Scranton/Wilkes-Barre anthracite region); Schuylkill and Carbon counties (southern anthracite); Allegheny, Washington, Greene, Westmoreland, Fayette, Somerset, Cambria, and Clearfield counties (bituminous SW PA)
• PA Mine Subsidence Insurance Fund: PA maintains a state Mine Subsidence Insurance Fund (MSIF) for residential properties in designated mine subsidence areas; commercial properties in mine subsidence areas typically need to obtain commercial mine subsidence coverage (available through the MSIF for commercial properties meeting eligibility requirements or through specialty carriers)
• Structural assessment: for older commercial buildings in PA mine subsidence counties, commission a structural engineering assessment specifically addressing mine subsidence risk

Compare New Jersey's commercial property diligence process when running mid-Atlantic corridor acquisitions. PA and NJ are often in the same deal portfolio (I-95, I-78 logistics corridor). Key PA differences: PA Act 2 (brownfield liability relief) is conceptually similar to NJ's ISRA/LSRP mechanism but different in execution - Act 2 is opt-in and applies to any property, while ISRA is mandatory and triggered by industrial establishment transfer; PA has coal mine subsidence risk with no NJ equivalent; PA RTT at 2% (4.278% in Philadelphia) is comparable to NJ's combined RTF of ~2%.

Realty Transfer Tax - Philadelphia vs. rest of PA

• Calculate PA RTT at 1% (state) plus the applicable local municipal rate for the county and municipality where the property is located
• Most PA municipalities: 1% local (in addition to 1% state) = 2% total RTT; typically split 1% buyer and 1% seller
• Philadelphia: 3.278% local (city + school district) + 1% state = 4.278% total RTT; convention is buyer pays 1% state, seller pays 3.278% local, but this is negotiable in commercial transactions
• Pittsburgh (City of Pittsburgh): city transfer tax rate is higher than surrounding Allegheny County municipalities; confirm the specific Pittsburgh transfer tax rate at time of closing
• RTT is paid to the county recorder of deeds at recording; separate checks or wires to Commonwealth and local tax authorities
• Certain PA RTT exemptions exist for transfers between parent companies and wholly-owned subsidiaries, certain family transfers, and specific corporate reorganizations; confirm exemption eligibility with PA tax counsel before assuming a transfer is exempt

Flood risk - Delaware, Schuylkill, and Susquehanna Rivers

• Pull FEMA FIRMs for the property's flood zone; PA commercial properties along major river systems have documented flood risk
• Hurricane Ida (September 2021): remnants of Hurricane Ida caused catastrophic flash flooding and river flooding across SE Pennsylvania and NJ; Schuylkill River commercial in Manayunk (Philadelphia) and suburban Philadelphia flooded significantly; Delaware River commercial in Bucks County, Bristol, and downstream PA communities flooded; Ida updated the flood risk understanding for many SE PA commercial areas
• Delaware River: commercial properties in Bucks County, Lower Bucks, and Philadelphia's Delaware River waterfront area face Delaware River flood risk; the Delaware River Joint Toll Bridge Commission and Army Corps have ongoing flood risk studies
• Susquehanna River: Harrisburg and surrounding Dauphin County commercial have Susquehanna River flood risk; 2011 flood from Hurricane Lee inundated portions of Harrisburg's commercial district
• Monongahela and Allegheny Rivers (Pittsburgh): Pittsburgh commercial in the Strip District and along the Mon and Allegheny River corridors has documented flood risk; confirm FEMA zone and post-event flood records

Zoning - PA municipalities planning code

• Confirm the zoning designation from the applicable city, township, borough, or county planning department
• PA Municipalities Planning Code (MPC, 53 P.S. § 10101 et seq.): all PA municipalities administer local zoning under MPC authority; PA second class townships (most suburban PA) and boroughs have separate planning and zoning boards
• Lehigh Valley logistics zoning: the I-78/I-81 interchange area in Lehigh Valley (Northampton and Lehigh counties) has been significantly developed for logistics; confirm current commercial and industrial zoning in specific municipalities along the I-78 corridor before assuming zoning matches the Lehigh Valley logistics profile
• Philadelphia's zoning code: Philadelphia adopted a revised zoning code (2012, subsequently amended); Philadelphia's commercial zoning has multiple overlay districts and historic district designations that can constrain development

How due diligence works in Pennsylvania

Step 1 - Title and Act 2 status

Day one: order ALTA title commitment and simultaneously search PA DEP eSite Tracker for any Act 2 or remediation records at the property address. Both are fast checks; eSite Tracker is publicly available online.

If eSite Tracker shows an active or completed Act 2 case: obtain the Act 2 Final Report and DEP acknowledgment letter. If the case is completed with DEP approval, confirm the Act 2 clearance is current and any recorded Act 2 covenants (land use restrictions) are reviewed for commercial use impact.

If no Act 2 case exists but industrial history is evident from Phase I: the brownfield buyer starts from scratch under Act 2; timeline for Act 2 completion runs 6-24+ months depending on contamination extent.

Step 2 - PFAS, environmental, and mine subsidence

For Montgomery County commercial: commission PFAS addendum to Phase I and private well testing if applicable.

For Pittsburgh metro or SW/central PA: check PA DEP mine map database for underground mine workings. Commission Phase I ESA with PA-specific databases (eSite Tracker, PA DEP UST, AMD stream database). For Allegheny County industrial-legacy brownfield: Phase II is the expected commercial lender diligence baseline.

For Marcellus Shale counties: search PA DEP oil and gas well records and county recorder for pipeline easements as part of Phase I.

Step 3 - Flood, zoning, and Marcellus

Pull FEMA FIRMs and post-Ida (2021) flood records for SE PA commercial. Confirm zoning from the applicable municipality under MPC.

Load all Phase I, Act 2 records, DEP eSite Tracker records, PFAS data, mine map data, and flood maps into Ellty. Environmental consultant, Act 2 specialist, and PA attorney each get a scoped, tracked link. Monitor document access; if the Act 2 environmental professional accesses DEP eSite Tracker repeatedly alongside the Phase II reports, they're building the cleanup cost estimate.

Step 4 - Leases, RTT calculation, and closing

Abstract all leases. Calculate RTT for the specific municipality and model buyer vs. seller allocation. Philadelphia RTT of 4.278% is a material transaction cost; model it explicitly in deal economics.

PA commercial closings are handled by title companies or attorneys; no attorney requirement. Budget 45-60 days for standard PA commercial; Act 2 brownfield deals require significantly longer timelines.

What makes Pennsylvania different

Act 2 is the Pennsylvania brownfield mechanism that out-of-state buyers consistently underestimate in complexity and timeline. Unlike NJ's ISRA (which is mandatory for industrial establishment transfers), PA Act 2 is an opt-in program that any buyer can initiate. But to get the statutory liability relief - the DEP acknowledgment letter that institutional PA lenders require before funding brownfield acquisitions - the cleanup must be completed and DEP-approved. An Act 2 Final Report takes months to prepare, DEP review takes additional months, and if the cleanup requires active remediation, the timeline extends further. Confirm Act 2 status in eSite Tracker before bidding; a brownfield with no Act 2 case and significant contamination is a 12-24 month diligence project, not a 60-day transaction.

Horsham/Willow Grove PFAS is Philadelphia's most significant military environmental contamination event, and it's ongoing. Over 25,000 residents in Montgomery County had their municipal water supplies affected by PFAS from NAS Willow Grove and the adjacent Horsham Air Guard Station. Treatment systems have been installed at affected water systems, but the underlying groundwater plume remains. Commercial properties in Horsham, Hatboro, Warminster, and surrounding municipalities that rely on private wells or are near the groundwater plume require PFAS investigation as a standard part of diligence. PA DEP PFAS MCL standards are among the more stringent on the East Coast.

Pennsylvania mine subsidence is not a legacy concern - it's an active commercial real estate hazard. PA has more surface land over abandoned underground mines than any other state, concentrated in the anthracite coal counties (Lackawanna, Luzerne, Schuylkill, Carbon) and bituminous coal counties (Allegheny, Washington, Greene, Westmoreland). Mine voids collapse unpredictably as roof support pillars deteriorate; commercial building foundations can experience significant settlement. PA's Mine Subsidence Insurance Fund exists because the risk is real and insurable. For any commercial property in a PA mine subsidence county: PA DEP mine map database check is mandatory diligence, not optional.

Philadelphia's 4.278% total Realty Transfer Tax is one of the highest commercial transfer tax rates in the US. On a $20M Philadelphia commercial deal, the combined RTT runs approximately $855,600 - a material transaction cost. Philadelphia commercial buyers conventionally pay 1% (state) and sellers pay 3.278% (city/school district), but this is negotiable. Model the RTT explicitly in Philadelphia deal economics and confirm allocation in the purchase agreement.

Timeline and cost in Pennsylvania

Weeks 1-2 cover kickoff: ALTA title commitment order, PA DEP eSite Tracker Act 2 status search, PA DEP PFAS database search, Phase I ESA commission (with PA-specific databases), PA DEP mine map check (for coal counties), Marcellus Shale well and pipeline records search (for Marcellus counties), PFAS screening assessment (for Montgomery County), FEMA flood zone check, zoning confirmation, and lease abstraction initiation. Legal fees in this phase run USD 5,000-15,000.

Load all files into Ellty before advisors engage. Standard PA commercial deals run 45-60 days; Act 2 brownfield deals require 6-24+ months for full clearance.

Weeks 2-5 cover deep review: Phase I ESA delivery, Act 2 status confirmation and clearance strategy, mine subsidence engineering assessment (if in coal counties), PFAS results (if commissioned), Marcellus pipeline easement review, flood risk analysis, zoning compliance, lease abstraction, and PLL insurance quotes (for brownfield assets). Costs in this phase: USD 12,000-35,000.

Weeks 5-10+ handle resolution: Phase II ESA (if triggered), Act 2 Final Report preparation and DEP submission (for brownfield), mine subsidence insurance binding, RTT calculation and closing preparation, title exception clearance.

Pennsylvania total acquisition costs for buyers: RTT (1-4.278% split between buyer and seller depending on location) + ALTA title insurance + legal/advisory + environmental (Phase I/II + Act 2 specialist). Philadelphia buyers carry 1% of the 4.278% RTT; suburban PA buyers carry 1% of the 2% RTT. Total buyer acquisition cost runs approximately 1.5-2.5% in most PA markets and 1.5-3% in Philadelphia.