CHAPTER 1. GENERAL PROVISIONS
CHAPTER 2. DEFINITIONS
CHAPTER 3. APPLICATION OF THE ACT AND PENALTIES
CHAPTER 4. POWERS AND DUTIES OF THE STATE REAL ESTATE COMMISSION-GENERAL
CHAPTER 5. QUALIFICATIONS AND APPLICATIONS FOR LICENSES AND REGISTRATION CERTIFICATES
CHAPTER 6. DUTIES OF LICENSEES
CHAPTER 7. PROCEEDINGS BEFORE THE COMMISSION
CHAPTER 8. REAL ESTATE RECOVERY FUND
CHAPTER 9. REPEALER AND EFFECTIVE DATE
This act shall be known and may be cited as the "Real Estate Licensing and Registration Act."
The following words and phrases when used in this act shall have the meanings given to them in this section unless the context clearly indicates otherwise:
(1) negotiates with or aids any person in locating or obtaining for purchase, lease or acquisition of interest in any real estate;
(2) negotiates the listing, sale, purchase, exchange, lease, time share and similarly designated interests, financing or option for any real estate;
(3) manages any real estate;
(4) represents himself as a real estate consultant, counsellor, house finder;
(5) undertakes to promote the sale, exchange, purchase or rental of real estate: Provided, however, That this provision shall not include any person whose main business is that of advertising, promotion or public relations;
(5.1) undertakes to perform a comparative market analysis; or
(6) attempts to perform any of the above acts.
(a) The State Real Estate Commission is hereby created and shall consist of the Commissioner of Professional and Occupational Affairs, the Director of the Bureau of Consumer Protection, or his designee; three members who shall be persons representing the public at large; five other persons, each of whom shall at the time of his appointment be a licensed and qualified real estate broker under the existing law of this Commonwealth, and shall have been engaged in the real estate business in this Commonwealth for a period of not less than ten years immediately prior to his appointment; and one other person who shall have been licensed as a real estate broker, or cemetery broker, for a period of at least five years and shall have been engaged in selling cemetery lots for at least ten years immediately prior to his appointment. Each of said members of the commission shall be appointed by the Governor.
(b) The term of office of each of said members shall be five years from his appointment, or until his successor has been appointed and qualified but not longer than six months beyond the five-year period. In the event that any of said members shall die or resign during his term of office, his successor shall be appointed in the same way and with the same qualifications as above set forth and shall hold office for the unexpired term.
(c) A majority of the members currently serving on the commission shall constitute a quorum. The commission shall elect a chairman, vice-chairman and secretary from among its members. A commission member who fails to attend three consecutive meetings shall forfeit his seat unless the Commissioner of Professional and Occupational Affairs, upon written request from the member, finds that the member should be excused from a meeting because of illness or the death of a family member.
(d) Each member of the commission other than the Commissioner of Professional and Occupational Affairs shall receive reimbursement for reasonable expenses in accordance with Commonwealth regulations and per diem compensation at the rate of $60 per day for the time actually devoted to the business of the commission.
(e) In addition to regularly scheduled meetings of the commission, there shall be at least one public meeting each year in Pittsburgh, one public meeting each year in Philadelphia and one public meeting each year in Harrisburg. At least 15 days prior to the holding of any public meeting pursuant to this subsection, the commission shall give public notice of the meeting in a newspaper of general circulation in each of the areas where the public meeting is to be held. The purpose of these special meetings shall be to solicit from members of the public, suggestions, comments and objections about real estate practice in this Commonwealth.
It shall be unlawful for any person, directly or indirectly, to engage in or conduct, or to advertise or hold himself out as engaging in or conducting the business, or acting in the capacity of a broker or salesperson, cemetery broker, cemetery salesperson, campground membership salesperson, time-share salesperson, builder-owner salesperson, rental listing referral agent or cemetery company within this Commonwealth without first being licensed or registered as provided in this act, unless he is exempted from obtaining a license or registration certificate under the provisions of section 304.
No action or suit shall be instituted, nor recovery be had, in any court of this Commonwealth by any person for compensation for any act done or service rendered, the doing or rendering of which is prohibited under the provisioins of this act by a person other than a licensed broker, salesperson, cemetery broker, cemetery salesperson, campground membership salesperson, time-share salesperson, builder-owner salesperson or rental listing referral agent, unless such person was duly licensed and registered hereunder as broker or salesperson at the time of offering to perform any such act or service or procuring any promise or contract for the payment of compensation for any such contemplated act or service.
Any person who shall engage in or carry on the business, or act in the capacity of a broker, salesperson, cemetery broker, cemetery salesperson, campground membership salesperson, time-share salesperson, builder-owner salesperson, rental listing referral agent or cemetery company, within this Commonwealth, without a license or registration certificate issued to him, or shall employ any person as a salesperson or cemetery salesperson to whom a license has not been issued, or whose license or registration certificate as such shall have been revoked or suspended, shall be guilty of a summary offense and upon conviction thereof for a first offense shall be sentenced to pay a fine not exceeding $500 or suffer imprisonment, not exceeding three months, or both and for a second or subsequent offense shall be guilty of a felony of the third degree and upon conviction thereof, shall be sentenced to pay a fine of not less than $2,000 but not more than $5,000 or to imprisonment for not less than one year but not more than two years, or both.
Except as otherwise provided in this act, the provisions of this act shall not apply to the following:
In addition to any other civil remedy or criminal penalty provided for in this act, the commission, by a vote of the majority of the maximum number of the authorized membership of the commission as provided by law, or by a vote of the majority of the duly qualified and confirmed membership or a minimum of five members, whichever is greater, may levy a civil penalty of us to $1,000 on any current licensee who violates any provision of this act or on any person who practices real estate without being properly licensed to do so under this act. The commission shall levy this penalty only after affording the accused party the opportunity for a hearing, as provided in Title 2 of the Pennsylvania Consolidated Statutes (relating to administrative law and procedure.
It shall be the duty of the department to issue licenses and registration certificates to any person who shall comply with the provisions of this act.
Any school which shall offer or conduct any course or courses of study in real estate shall first obtain approval from, and thereafter abide by the rules and regulations of the commission covering such schools.
The commission is empowered to prescribe the subjects to be tested. The department shall arrange for the services of professional testing services to write and administer examinations on behalf of the commission in accordance with commission guidance and approval.
The commission shall have the power to promulgate rules or regulations in order to administer and effectuate the purposes of this act. All existing rules or regulations shall remain in full force and effect until modified by the commission.
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(c) All courses, materials, locations and instructors shall be approved by the commission. No credit shall be given for any course in office management, except for courses offered to brokers that are intended to promote knowledge of the supervisory duties imposed upon brokers by this act and by the rules and regulations promulgated by the commission having to do with document preparation and retention, recordkeeping, deposit and maintenance of escrow accounts, advertising and solicitation limitations and requirements, conflicts of interest, disclosures to prospective sellers and buyers and the general ethical responsibilities of licensees.
(d) The commission shall initiate the promulgation of regulations to carry out the provisions of this section within six months of the effective date of this section.
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(a) Licenses shall be granted only to and renewed only for persons who bear a good reputation for honesty, trustworthiness, integrity and competence to transact the business of broker, salesperson, cemetery broker, cemetery salesperson, campground membership salesperson, time-share salesperson, builder-owner salesperson or rental listing referral agent, in such manner as to safeguard the interest of the public, and only after satisfactory proof of such qualifications has been presented to the commission as it shall by regulation require.
(b) Any person who remains inactive for a period of five years without renewing his license shall, prior to having a license reissued to him, submit to and pass the examination pertinent to the license for which the person is reapplying.
(c) Unless ordered to do so by Commonwealth Court, the commission shall not reinstate the license, within five years of the date of revocation, of any person whose license has been revoked under this act. Any person whose license has been revoked may reapply for a license at the end of the five-year period but must meet all of the licensing qualifications of this act for the license applied for, to include the examination requirement.
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If the applicant for a broker's license is a corporation, partnership or association, then the provisions of sections 511 and 512 shall apply to the individual designated as broker of record. The employees of said corporation, partnership or associations actually engaging in or intending to engage in the real estate business shall meet the provisions of section 521 and 522.
Each applicant shall as a condition precedent to obtaining a license, take the salesperson license examination and score a passing grade. Prior to taking the examination:
(a) An application for a license as salesperson shall be made, in writing to the department, upon a form provided for the purpose by the department, and shall contain such information as to the applicant, as the commission shall require.
(b) The applicant shall submit a sworn statement by the broker with whom he desires to be affiliated certifying that the broker will actively supervise and train the applicant.
(c) The application shall be received by the commission within three years of the date upon which the applicant passed the examination.
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§ 455.601. Duty of brokers, cemetery brokers and rental listing referral agents to maintain office.
§ 455.602. Nonresident licensees.
§ 455.603. Employment of associate brokers, salesperson.
§ 455.604. Prohibited acts.
§ 455.605. Promotional land sales; approval.
§ 455.606. Broker's disclosure to seller.
§ 455.606a. Duties of licensee generally.
§ 455.606b. Duties of seller's agent.
§ 455.606c. Duties of buyer's broker.
§ 455.606d. Duties of dual agent.
§ 455.606e. Duties of designated agent.
§ 455.606f. Duties of transaction licensee.
§ 455.607. [Deleted.]
§ 455.608. Information to be given at initial interview.
§ 455.608a. Written agreement with broker.
§ 455.608b. Mandatory provisions of sales contract.
§ 455.608c. Comparative Market Analysis Disclosure.
§ 455.608d. Cemetery broker's disclosure.
§ 455.609. Right to cancel purchase of time share and campground membership.
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(a) The commission may upon its own motion, and shall promptly upon the verified complaint in writing of any person setting forth a complaint under this section, ascertain the facts and, if warranted, hold a hearing for the suspension or revocation of a license or registration certificate or for the imposition of fines not exceeding $1,000, or both. The commission shall have power to refuse a license or registration certificate for cause or to suspend or revoke a license or registration certificate or to levy fines up to $1,000, or both, where the said license has been obtained by false representation, or by fraudulent act or conduct, or where a licensee or registrant, in performing or attempting to perform any of the acts mentioned herein, is found guilty of:
(1) Making any substantial misrepresentation.
(2)
(3)
(4)
(5)
(6)
(7) Acting for more than one party in a transaction without the knowledge and consent in writing of all parties for whom he acts.
(8) Placing a "for sale" or "for rent" sign on or advertising any property without the writtne consent of the owner, or his authorized agent.
(9) Failing to voluntarily furnish a copy of any listing, sale, lease, or other contract relevant to a real estate transaction to all signatories thereof at the time of execution.
(10) Failing to specify a definite termination date that is not subject to prior notice, in any listing contract.
(11)
(12)
(12.1)
(13)
(14)
(15)
(15.1) Failing to provide a disclosure required by this act or any other federal or state law imposing a disclosure obligation on licensees in connection with real estate transactions. (16)
(17)
(18)
(19)
(20)
(21)
(22)
(23)
(24)
(25)
(26)
(27)
(28)
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A broker may act in a real estate transaction, subject to the provisions of this act, as a seller/landlord agent, buyer/tenant agent, as a dual agent for seller/landlord and buyer/tenant, or as a transaction licensee. Licensees employed by a broker shall bear the same relationship to the consumer as the broker, except that a broker serving as a dual agent may designate a licensee to act exclusively as agent of the seller/landlord, and designate another licensee to act exclusively as agent of the buyer/tenant.
(a) Regardless of whether a licensee is acting within the scope of an agency relationship with a consumer, a licensee owes to all consumers to whom the licensee renders real estate services the following duties, which may not be waived:
- to exercise reasonable professional skill and care which meets the practice standards required by this act;
- to deal honestly and in good faith;
- to present all written offers, written notices and other written communications to and from parties to a real estate transaction in a timely manner, regardless of whether the property is subject to an existing contract for sale or the buyer is already party to an existing contract to purchase; except that the duty of a licensee under this paragraph to present written offers may be waived by a seller of a property that is subject to an existing contract for sale if:
- the waiver is in writing; and
- the waiver is in the manner prescribed by the commission by regulation;
- to comply with those obligations imposed upon a licensee by the act of July 2, 1996 (P.L.500, No.84), known as the "Real Estate Seller Disclosure Act";
- to account in a timely manner for all money and property received from or on behalf of any consumer to a transaction consistent with the provisions of section 604(a)(5);
- to provide the consumer with information at the initial interview pursuant to section 608;
- to timely disclose to the consumer any conflicts of interest;
- to advise the consumer to seek expert advice on matters relating to the transaction that are beyond the licensee's expertise;
- to ensure that all services that are to be provided to the consumer are provided in a reasonable, professional and competent manner in accordance with the practice standards of this act;
- to advise the consumer regarding the status of the transaction;
- to advise the consumer of tasks that must be completed to satisfy an agreement or condition for settlement, provide assistance with document preparation and advise the consumer regarding compliance with laws pertaining to real estate transactions;
- to present all offers and counter offers in a timely manner, unless a party has directed the licensee otherwise in writing; and
- to provide disclosure to the consumer regarding any financial interest, including, but not limited to, a referral fee or commission, which a licensee has in any services to be provided to the consumer by any other person, including, but not limited to, financial services, title transfer and preparation services, insurance, construction, repair or inspection services. The licensee shall also provide disclosure regarding any financial interest which an affiliated licensee may have in any services to be provided to the consumer by any other person. The disclosures required by this paragraph shall be made at the time the licensee first recommends that the consumer purchase a service in which the licensee or an affiliated licensee has a financial interest or when the licensee first learns that the consumer will be purchasing a service in which the licensee or an affiliated licensee has a financial interest.
(b)
- A licensee may not perform a service for a consumer of real estate services for a fee, commission or other valuable consideration paid by or on behalf of the consumer, unless the nature of the service and the fee to be charged are set forth in a written agreement between the broker and the consumer that is signed by the consumer.
- Notwithstanding clause (1), an open listing agreement may be oral if the seller is provided with a written memorandum stating the terms of the agreement.
- Nothing in this subsection shall require a transaction licensee or subagent who is cooperating with the listing broker to obtain a written agreement from the seller.
- A subagent or transaction licensee who is cooperating with the listing broker for a fee paid by the listing broker or seller shall provide the buyer, prior to performing any services, with a written disclosure statement, signed by the buyer, describing the nature of the services to be performed by the subagent or transaction licensee and containing the information required by section 608.
(c) A broker may not extend or delegate the broker's agency relationship with a principal to another broker without the written consent of the principal.
(d) A broker may compensate another broker who assists in the marketing and sale/lease of a consumer's property. Payment of compensation alone does not create an agency relationship between the consumer and the other broker.
(e) The fact that a licensee representing a seller/landlord also presents alternative properties to prospective buyer/tenants does not in itself constitute a breach of a duty or obligation owed by the licensee to the seller/landlord.
(f) The fact that a licensee representing a buyer/tenant also presents alternative properties in which that buyer/tenant is interested to other prospective buyer/tenants does not in itself constitute a breach of a duty or obligation owed by the licensee to that buyer/tenant.
(g) A licensee may not knowingly, during or following the termination of an agency relationship reveal confidential information of the principal, or use confidential information of the principal to the advantage of the licensee or a third party, except when:
- disclosure is made with the consent of the principal;
- the information is disclosed to another licensee or third party acting solely on the principal's behalf and not for any other party;
- the information is required to be disclosed under subpoena or court order;
- it is the intention of the principal to commit a crime and the disclosure of information is believed necessary to prevent the crime; or
- the information is used to defend the licensee in a legal proceeding against an accusation of wrongful conduct.
(h) A consumer of real estate services shall not be liable for the acts of a licensee unless the licensee is acting pursuant to the express direction of the consumer or the licensee is acting based upon a representation of the consumer reasonably relied upon by the licensee. A licensee shall not be liable for acts of a consumer of real estate services unless the consumer is acting at the express direction of the licensee or the consumer is acting as a result of a representation by a licensee reasonably relied on by the consumer.
(i) Unless otherwise agreed, a licensee owes no duty to conduct an independent inspection of the property and owes no duty to independently verify the accuracy or completeness of any representation made by a consumer to a transaction reasonably believed by the licensee to be accurate and reliable.
(j) Nothing in this section shall be construed to relieve a licensee of any duty imposed by another provision of this act.
In addition to the duties generally required of a licensee as set forth in section 606.1, the duties of the broker acting as an agent for the seller include the following:
In addition to the duties generally required of a licensee as set forth in section 606.1, the duties of the broker acting as an agent of the buyer include the following:
(a) A licensee may act as a dual agent only with the written consent of both parties to the transaction following the disclosures given at the initial interview required by section 608. The consent must include a statement of the terms of compensation.
(b) In addition to the duties generally required of a licensee as set forth in section 606.1, the duties of a dual agent include the following:
- to take no action that is adverse or detrimental to either party's interest in a transaction;
- unless otherwise agreed to in writing, to make a continuous and good faith effort to find a buyer for the property, except that a dual agent is not obligated to seek additional offers to purchase the property while it is subject to an existing contract for sale; and
- unless otherwise agreed to in writing, to make a continuous and good faith effort to find a property for the buyer, except that a dual agent is not obligated to seek additional properties to purchase while the buyer is a party to an existing contract to purchase.
(c) A dual agent may show alternative properties not owned by the seller to prospective buyers and may list competing properties for sale without breaching any duty to the seller. A dual agent may show properties in which the buyer is interested to other prospective buyers without breaching any duty to the buyer.
(a)
(b) In addition to the duties generally required of a licensee as set forth in section 606.1, where principals to a transaction are represented by designated agents employed by the same broker, the duties of a designated agent include the following:
In addition to the duties generally required of a licensee as set forth in section 606.1, the duties of a transaction licensee include the following:
The commission shall establish rules or regulations which shall set forth the manner and method of disclosure of information to the prospective buyer/tenant or seller/landlord during the initial interview. For the purposes of this section, the initial interview is the first contact between a licensee and a consumer of real estate-related services where a substantive discussion about real estate needs occurs. Such disclosure shall be provided on a form adopted by the commission by regulation and shall include, but shall not be limited to:
An agreement between a broker and a principal, or any agreement between a broker and a consumer whereby the consumer is or may be committed to pay a fee, commission or other valuable consideration, that is required to be in writing by section 606.1, shall be signed by the consumer and shall identify the services to be provided and the fee to be paid, if any. The agreement shall also contain the following information which shall be disclosed in the manner and method the commission shall establish by regulation:
In a sales agreement or sales contract, a broker shall disclose the following information which shall be disclosed in the manner and method the commission shall establish by regulation:
A comparative market analysis must contain the following statement printed conspicuously and without change on the first page:
This analysis has not been performed in accordance with the uniform standards of professional appraisal practice which require valuers to act as unbiased, disinterested third parties with impartiality, objectivity and independence and without accommodation of personal interest. It is not to be construed as an appraisal and may not be used as such for any purpose.
A comparative market analysis prepared in accordance with this act shall not be deemed to be an appraisal within the scope of the Act of July 10, 1990 (P.L.404, No.98), known as the Real Estate Appraisers Certification Act.
In any sales agreement or sales contract, a cemetery broker shall be subject to the requirements of section 608.2(2) as it relates to the Real Estate Recovery Fund and the disclosure of information.
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The complete Pennsylvania Statutes are not yet available on the web. However, selected portions have been made available and can be accessed by CLICKING HERE. These statutes, though available instantaneously over the web, may not be the current law. Court decisions overturning them, later statutes amending them, and a host of other factors come into play when interpreting them. They are provided here as a resource. They should provide some information about the state of the law. However, a competent lawyer, who from other sources will research the law to insure what is current, should always be employed in matters of importance.