Short answer
No, but the debt has to be dealt with. Philadelphia files liens for unpaid property taxes and water charges. A lien can make a house harder to sell, and a title search will show it. Most liens are paid from the sale proceeds at closing.
What the City files
The City of Philadelphia says it files liens against delinquent properties every year or more often for unpaid property taxes and water charges. A lien is a legal claim against a property because of a debt owed. The City says having a lien can make it more difficult to sell the property in the future or to get a loan. Liens are common, and title companies handle them every day. They do not usually stop a sale. What they do is reduce what you receive. They can also slow a sale if the numbers are unclear or a lienholder is slow to send a payoff letter. If you know you have liens, start the payoff requests early. If you are not sure, order the title search first. It is easier to plan with real numbers than with guesses.
Rent sequestration
The City also describes rent sequestration, in which a court-appointed person called a sequestrator collects rent and pays off delinquent taxes and water charges until all City debts are paid. That is relevant if the house is a rental, because the rent may be redirected.
How it shows up at sale time
A title search or a lien certificate will list recorded claims. The settlement agent pays them from your proceeds so the buyer gets a clean title. If the liens are larger than the price, the sale may not close without help from the lienholder or extra cash. Ask the City for current balances and ask your title company for a payoff list.
Steps before you list
Request current balances from the City for real estate taxes and water charges. Order a title search so you see every recorded claim. Compare the total of all liens and the mortgage to your hoped-for price. If the numbers work, tell your agent or buyer about the liens up front. If the numbers are tight, ask about a payment agreement that could lower what you owe, or ask a housing counselor for options. Be careful with rent: if the house is a rental and the City uses rent sequestration, the sequestrator collects the rent. Ask the title company how that will affect the closing.
Options
Payment agreements exist for owners with delinquent real estate taxes, and the City says enrolling keeps the property safe from sheriff sale. If you want to sell instead, Kaizen Home Buyers buys as-is for cash, with no repairs and no agent commission. We make offers within 24 hours and can close in 14 to 30 days or on your date. Call 267-329-0084. Agents can list a house with liens too, but cleanup may add time.