Pennsylvania Commercial Lease Review
Pennsylvania remains one of the few states where a commercial lease can let a landlord obtain judgment, for money or for possession, without a trial. Confession of judgment for possession is abolished for residential leases signed by individuals, but these clauses survive in business leases. In Philadelphia, tenants also usually bear the city’s Use and Occupancy Tax. A Pennsylvania review starts by finding both.
What does a confession of judgment clause let a Pennsylvania landlord do?
Court rules starting at Pa.R.C.P. 2950 set out how a landlord enters judgment by confession for money, and Rule 2970 extends the procedure to possession of real property for any instrument other than a residential lease executed by a natural person. In practice, a landlord holding a signed warrant of attorney can file a complaint and obtain judgment without the hearing you would normally have before an eviction or a money award. Your remedy is a petition to open or strike after the fact. Ask to delete the clause, or at least limit it to sums actually due after written notice and a cure period. Check the guaranty as well, since landlords often place a separate warrant of attorney there so they can reach the guarantor directly.
Who pays the Philadelphia Use and Occupancy Tax?
The City of Philadelphia charges the tax at 1.21% of the property’s assessed value for business use. The owner or landlord files and remits it but collects the tax from tenants. The $2,000 annual exemption expired on December 31, 2025, and the tax is now filed monthly. A reassessment can increase what you owe, so check how your lease allocates the charge and whether it is inside or outside any operating expense cap. Ask for the assessed value used and the monthly calculation before you sign, so you are comparing the true occupancy cost of competing spaces.
Pennsylvania sources checked 2026-10-09: Pa.R.C.P. 2970 · Pa.R.C.P. 2951 · City of Philadelphia: Use and Occupancy Tax. Laws change; confirm the current rule before relying on it.
Frequently asked questions
Is a confession of judgment clause in my Pennsylvania lease enforceable?
For a commercial lease, generally yes, if it follows the court rules and appears in the signed instrument. Rule 2951 requires leave of court in limited cases, such as where the instrument is over 20 years old or no signed copy is attached. Courts can open a judgment where a real defense exists, but deleting the clause before signing is far cheaper.
Should my Philadelphia lease mention the Use and Occupancy Tax?
It should. Because the landlord collects the tax from tenants and remits it to the city, the lease should say how your share is calculated, how often it is billed now that filing is monthly, and that you receive the supporting figures. Otherwise it tends to appear as an unexplained line on the rent invoice.
Signing a commercial lease in Pennsylvania?
Upload the lease and any guaranty. Every page is read, rent and escalations are totalled over the term, and each risky clause is explained in plain English with what to ask the landlord for.
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General information, not legal advice, and not reviewed by an attorney. Confirm with a Pennsylvania attorney before relying on it.