Pennsylvania does not require an attorney at closing. The PAR Standard Agreement for the Sale of Real Estate is the contract that starts most residential transactions in the state, and PAR's September 2025 mortgage contingency update changed how financing is structured on every financed deal. Understanding the PAR form, how Philadelphia differs from the rest of the state, and where transfer tax applies will help you avoid the common errors that delay PA closings.
This guide covers the PAR agreement, the 2025 mortgage contingency revision, the Philadelphia vs rest-of-PA closing split, transfer tax, earnest money, and how a TC coordinates your file. Written for Pennsylvania agents, their TCs, and out-of-state agents taking PA referrals.
Key takeaways
- Pennsylvania is a Category D title-company state. No attorney is required at closing.
- The PAR Standard Agreement for the Sale of Real Estate is the dominant contract, updated September 2025 with a new mortgage contingency structure.
- Philadelphia commonly involves attorneys by custom; Pittsburgh and western PA are title-company-driven.
- Pennsylvania transfer tax is 2 percent of the sale price (1 percent state, 1 percent local), split between buyer and seller.
- A TC manages the full file from contract to close, coordinating with title and (in Philadelphia) with the attorney's office.
What is the PAR Standard Agreement for the Sale of Real Estate?
The PAR Standard Agreement for the Sale of Real Estate is the primary residential contract used across Pennsylvania. Published by the Pennsylvania Association of REALTORS (PAR), it covers purchase price, financing, earnest money, inspection and financing contingencies, seller disclosures, closing date, and property condition.
PAR also publishes related forms for specific scenarios:
- Consumer Guide to the Agreement of Sale
- Broker's Disclosure Addendum
- Agreement for Sale of New Construction
- Agreement for Sale of Vacant Land
PA's 42,000 to 48,000 REALTOR members across regional boards (Philadelphia Association of REALTORS, Pittsburgh Board of REALTORS, Lancaster County, and others) all use the PAR form as their default. For agents coordinating across multiple PA boards, the consistency of a single standard form is a significant advantage.
What changed in the September 2025 mortgage contingency update?
PAR released a major revision to the mortgage contingency section effective September 1, 2025. This is the most significant contract update in the current cycle and changes how every financed transaction is structured.
The update created three distinct financing options:
| Option | Description | Buyer Obligation |
|---|---|---|
| Option 1 | Cash sale | No financing intent. No mortgage application required. |
| Option 2 | New 2025 middle option | Intermediate financing pathway (specific terms per PAR release). |
| Option 3 | Sale contingent on financing | Buyer must obtain financing per Paragraph 8(H). Deposit protections apply if buyer makes good-faith lending effort. |
Before this update, the financing section created ambiguity about whether a buyer intended to pay cash or was simply not making the sale contingent on obtaining a mortgage. The three-option structure eliminates that gray area.
For TCs, this means confirming which option the buyer selected on intake and tracking the corresponding obligations. Option 1 files need no lender coordination. Option 3 files need weekly lender check-ins and a commitment letter deadline. Getting the option wrong at intake cascades into missed deadlines and mismatched expectations.
In our PA TC work, we've seen agents miss the new Option 2 entirely because they were using older form versions. If you're writing offers in 2026, verify you're working from the September 2025 revision.
How does Philadelphia differ from the rest of Pennsylvania?
Pennsylvania's closing practices split along regional lines:
Philadelphia metro (eastern PA). Attorneys are commonly involved in title review, document preparation, and sometimes closing conduct. This is local custom, not state law. The buyer typically retains an attorney for title review. Earnest money is often held in attorney escrow or broker escrow.
Pittsburgh and western PA. Title company closings are the dominant model. Attorney involvement is available but less standard. Title companies handle the full process: title search, escrow, document prep, closing table, disbursement, and recording. Earnest money goes to title company escrow or broker escrow.
Rural and central PA. Practice varies by county. Title company closings are common. Some counties have stronger attorney customs, particularly in counties adjacent to New York.
| Characteristic | Philadelphia Metro | Pittsburgh/Western PA | Rural/Central PA |
|---|---|---|---|
| Attorney involvement | Common (custom, not law) | Uncommon | Varies by county |
| Typical escrow holder | Attorney or broker | Title company or broker | Title company or broker |
| Closing conducted by | Attorney or title company | Title company | Title company |
| Typical time to close | 35 to 45 days | 30 to 40 days | 30 to 45 days |
For agents who work across PA regions, the TC's role adjusts accordingly. Philadelphia files require attorney coordination (similar to how we work in actual attorney-mandatory states). Pittsburgh files run through the title company with no attorney touchpoint. The TC manages both workflows.
How does earnest money work in Pennsylvania?
Standard earnest money deposits in Pennsylvania range from 2 to 5 percent of the purchase price, with 2 to 3 percent as the statewide norm. At the state median of $293,200, that's roughly $5,864 to $8,796.
The PAR contract specifies the escrow holder at offer. Three common options:
- Broker escrow. The listing broker or buyer's broker holds the deposit per the Pennsylvania Real Estate Commission's trust account rules under 49 Pa. Code Chapter 35.
- Attorney escrow. Common in Philadelphia. The buyer's attorney holds the deposit in a trust account.
- Title company escrow. The title company holds the deposit until closing. This is common in Pittsburgh and western PA.
Earnest money is credited toward the purchase price at closing. The TC confirms deposit delivery, receipt, and holder on intake, then tracks it through to credit on the closing disclosure.
Pennsylvania does not have a streamlined statutory release procedure for deposit disputes. When disputes arise, resolution happens through negotiation, mediation, or court action. Clear documentation of contingency notices and deadline compliance prevents most disputes.
What is Pennsylvania's transfer tax?
Pennsylvania imposes a 2 percent transfer tax on real estate sales: 1 percent state tax and 1 percent local tax. The standard custom is for buyer and seller to split the tax, with each paying 1 percent. On a $293,200 sale, total transfer tax is $5,864.
Some Philadelphia transactions carry an additional city transfer tax, pushing the combined rate higher. Agents should verify the local rate for the specific municipality.
Transfer tax exemptions exist for certain family transfers and other qualifying transactions. The title company or settlement agent handles the calculation and collection at closing. The TC's role is confirming the transfer tax amount on the closing disclosure matches the contract terms and flagging discrepancies before closing day.
Transfer tax is one of the larger closing-cost items in Pennsylvania and regularly surprises first-time buyers. Clear communication about the tax at contract stage, tracked by the TC, reduces closing-table objections.
What are the key contingency deadlines on a PA file?
The PAR Standard Agreement contains several contingency windows with hard deadlines:
Inspection contingency. The buyer has a negotiated window (commonly 10 to 15 days) to conduct inspections and deliver a written response. Options include accepting the property as-is, requesting repairs, requesting credits, or terminating the contract. The TC schedules inspections, tracks report delivery, and ensures the response is submitted on time.
Financing contingency (Option 3 files). The buyer must pursue financing in good faith and secure a commitment letter by the deadline. Weekly TC check-ins with the lender keep this on track. The September 2025 update's three-option structure makes it critical to confirm the correct option at intake.
Title contingency. The title company or attorney examines title and issues a commitment. Title exceptions must be resolved before closing. The TC tracks title order, commitment delivery, and exception resolution.
Seller disclosure review. Pennsylvania sellers must provide a property condition disclosure. The buyer has a review period after receipt. The TC tracks disclosure delivery and the buyer's review window.
In our PA TC work, the inspection contingency is the most deadline-sensitive section. Missing the response window on a hot-market file can waive the buyer's inspection rights entirely.
How does a TC coordinate a Pennsylvania file?
Pennsylvania's Category D title-company classification means no attorney is legally required, giving the TC the broadest possible scope. Here's the standard workflow:
Contract intake. The TC builds the timeline from the PAR agreement: closing date, inspection window, financing commitment deadline, title order, and all contingency dates. Financing option (1, 2, or 3) is confirmed on day one.
Earnest money. Deposit delivery, receipt, and escrow holder confirmation within 24 to 48 hours of contract execution.
Inspection coordination. Scheduling inspectors, routing reports to the buyer's agent, tracking the response deadline, and managing any repair negotiations.
Lender coordination. Weekly check-ins on loan progress, appraisal scheduling, commitment letter status, and underwriting conditions. This is the most time-intensive TC function on PA files.
Title coordination. Title order, commitment review, exception flagging, and resolution tracking. In Philadelphia, this includes attorney coordination.
Closing prep. Pre-closing walkthrough scheduling, closing disclosure review, transfer tax confirmation, and document collection for the settlement agent.
Broker-file assembly. Ensuring all required documents are in the broker file per Pennsylvania Real Estate Commission standards.
What should PA agents know about the current market?
Pennsylvania's real estate market in 2025 to 2026 carries several factors that affect TC coordination:
Median price variation. The state median of $293,200 masks significant market differences. Philadelphia runs $385,000 and above. Pittsburgh sits at $220,000 to $250,000. Rural areas trend lower. The TC adjusts coordination intensity based on transaction complexity, not just price.
Post-NAR settlement changes. Buyer broker agreements are now required before showing property. Compensation must be negotiated separately from MLS. The TC tracks execution of these agreements and confirms compensation terms match across all transaction documents.
Population stability. Pennsylvania's 0.4 percent growth since 2020 supports steady transaction volume without the overheated conditions seen in faster-growing states. The state processes an estimated 80,000 to 100,000 residential transactions annually.
Diverse market segments. From Philadelphia row homes to Pittsburgh riverfront condos to Lancaster County farmland, PA files vary enormously. The PAR form provides consistency across these segments, but local title company practices and closing customs differ.
How Quill coordinates Pennsylvania files
Quill is an outsourced transaction coordination firm that manages PA files from contract to close. In Pittsburgh and western PA, we coordinate with the title company end to end. In Philadelphia, we coordinate with both the title company and the attorney's office.
Every PA file includes: PAR timeline build (with 2025 mortgage contingency option verification), earnest money tracking, inspection coordination, weekly lender check-ins, title company coordination, closing disclosure review, transfer tax confirmation, and broker-file assembly.
Flat fee of $350 per file, billed at close. First file free.
For more on the closing process, see The Real Estate Closing Process: Step by Step. For Pennsylvania state-specific TC services, see the Pennsylvania hub page.