In January 2026, the Pennsylvania Supreme Court issued a significant opinion regarding PA upset tax sales. For property owners, this decision reaffirms the Real Estate Tax Sale Law (RETSL) must be followed strictly to withstand constitutional scrutiny and due process challenges, including having the sale set aside by the courts. Let’s break down what happened in In re Upset Sale, Tax Claim Bureau of Tioga County and what this decision means for anyone who owns property in the Commonwealth.
Does Fair Market Value Matter in Upset Tax Sales?
Pennsylvania property owner Martin Ostapowic lost his Tioga County home at an Upset Tax Sale after years of unpaid taxes dating back to 2004.
In In re Upset Sale, Tax Claim Bureau of Tioga County, Ostapowic challenged the sale of his property, claiming it was worth $465,000, while it sold for $83,000, about 18% of its fair market value. Specifically, he argued:
- The Bureau failed to comply with RETSL’s notice requirements
- The sale amounted to an unconstitutional taking
- The notice procedures violated due process
- The government should not be able to sell a property to satisfy a “miniscule” tax debt
The Supreme Court of Pennsylvania ruled that a challenge cannot succeed based solely on an inadequate sale price without proving a procedural irregularity or illegality, which Ostapowicz could not. The sale was upheld.
RETSL Maintains Due Process with Notice Requirements
The Court’s opinion did not turn on the property’s value or the owner’s personal recollection. Instead, it focused on whether the Tax Claim Bureau followed RETSL’s procedural requirements.
As noted in the graphic below, the following notice requirements must take place in order for an upset sale to be upheld:
According to the Court records, RETSL’s notice requirements were followed:
Certified Mail Notices
- March 2020: Notice of Return and Claim sent via restricted certified mail (returned undeliverable).
- July 2021: Notice of Public Tax Sale sent via restricted certified mail (returned unclaimed).
- September 2021: Final Notice mailed; this one was not returned.
First-class mail follow-up – Because the restricted mail receipts were not returned, the Bureau mailed additional notice via first‑class mail, as required under §5860.602(e)(2).
Posting the property – A field agent posted the property conspicuously on June 14, 2021; photographed and documented.
Personal service attempts – Multiple attempts were made to personally serve the owner, with successful service occurring on June 18, 2021.
Additional courtesy notices – The Bureau sent several extra notices not required by statute, demonstrating diligence beyond RETSL’s minimum standards.
Crucially, Ostapowic called the Tax Claim Bureau on September 1, 2021, to ask how much he needed to pay to stop the sale— proof he was aware of the delinquency and impending consequences.
A Losing Defense
Ostapowicz testified that he never saw the posted notice, never received mail, and did not recall personal service. The Court rejected these claims because:
- RETSL requires proper service, not actual receipt
- The Bureau documented compliance with each statutory step
- The owner’s long history of delinquency undermined his credibility
Further, the Court emphasized that Pennsylvania’s tax sale system is designed to balance due process with the government’s need to collect taxes. When the Bureau follows the law, the sale stands, even if the owner claims ignorance.
Five Key Takeaways for Pennsylvania Property Owners
So, what does Ostapowic’s Tioga County case mean for property owners and future upset sales in PA?
- RETSL is strict and enforceable – if the Bureau follows the statute, courts will uphold the sale. Owners cannot rely on “I didn’t see it” or “I didn’t know.”
- Actual notice is not required – the law requires properly sent notice, not proof that the owner opened the envelope.
- Posting and personal service matter – this case highlights how critical physical posting and personal service attempts are. They are often the deciding factor when mail is returned.
- Property value doesn’t protect you – even a $465,000 home can be sold for a fraction of its value if taxes remain unpaid.
- Owners must be proactive – if you receive any tax delinquency notice or suspect you might, take immediate action. Waiting until the day of the sale is too late.
The Supreme Court’s decision reinforces a consistent theme in Pennsylvania tax sale jurisprudence: procedures protect the sale, not the owner. When the Bureau documents compliance, courts will not overturn a sale simply because the outcome is harsh.
If you’re behind on taxes or have questions about an upcoming sale, connect with me to see how I can help. You can also fill out the form below to gain access to my “Comprehensive Guide to Navigating Tax Sale Opportunities, Hardships and Defenses”:
