Pennsylvania Code › Title 49 - PROFESSIONAL AND VOCATIONAL STANDARDS › Part I - DEPARTMENT OF STATE › Subpart A - PROFESSIONAL AND OCCUPATIONAL AFFAIRS › Chapter 35 - STATE REAL ESTATE COMMISSION › Subchapter E - STANDARDS OF CONDUCT AND PRACTICE › REAL ESTATE DOCUMENTS › Section 35.336 - Disclosure summary for the purchase or sale of residential or commercial real estate or for the lease of residential or commercial real estate when the licensee is working on behalf of the tenant

Current through Register Vol. 54, No. 28, July 13, 2024
(a) Licensees shall provide the consumer with
						the Consumer Notice at their initial interview.
(b) Licensees shall retain a copy of the
						signed/refused acknowledgement for 6 months and provide the consumer a copy of
						the entire disclosure summary.
(c)
						The Disclosure Summary must be entitled "Consumer Notice" and must be in the
						following format available from the Commission office upon request by phone,
						fax or internet:
CONSUMER NOTICE
THIS IS NOT A CONTRACT
In an effort to enable consumers of real estate
						  services to make informed decisions about the business relationships they may
						  have with real estate brokers and salespersons (licensees), the Real Estate
						  Licensing and Registration Act (RELRA) requires that consumers be provided with
						  this Notice at the initial interview.
* Licensees may enter into the following agency
						  relationships with consumers:
Seller Agent
As a seller agent, the licensee and the licensee's
						  company works exclusively for the seller/landlord and must act in the
						  seller's/landlord's best interest, including making a continuous and good faith
						  effort to find a buyer/tenant except while the property is subject to an
						  existing agreement. All confidential information relayed by the seller/landlord
						  must be kept confidential except that a licensee must reveal known material
						  defects about the property. A subagent has the same duties and obligations as
						  the seller agent.
Buyer Agent
As a buyer agent, the licensee and the licensee's
						  company work exclusively for the buyer/tenant even if paid by the
						  seller/landlord. The buyer agent must act in the buyer/tenant's best interest,
						  including making a continuous and good faith effort to find a property for the
						  buyer/tenant, except while the buyer is subject to an existing contract, and
						  must keep all confidential information, other than known material defects about
						  the property, confidential.
Dual Agent
As a dual agent, the licensee works for
both
The seller/landlord and the buyer/tenant. A dual agent
						  may not take any action that is adverse or detrimental to either party but must
						  disclose known material defects about the property. A licensee must have the
						  written consent of both parties before acting as a dual agent.
Designated Agent
As a designated agent, the broker of the selected real
						  estate company designates certain licensees within the company to act
						  exclusively as the seller/landlord agent and other licensees within the company
						  to act exclusively as the buyer/tenant agent in the transaction. Because the
						  broker supervises all of the licensees, the broker automatically serves as a
						  dual agent. Each of the designated licensees are required to act in the
						  applicable capacity explained previously. Additionally, the broker has the duty
						  to take reasonable steps to assure that confidential information is not
						  disclosed within the company.
* In addition, a licensee may serve as a Transaction
						  Licensee.
A transaction licensee provides real estate services
						  without having any agency relationship with a consumer. Although a transaction
						  licensee has no duty of loyalty or confidentiality, a transaction licensee is
						  prohibited from disclosing that:
* The seller will accept a price less than the
						  asking/listing price,
* The buyer will pay a price greater than the price
						  submitted in the written offer, and
* The seller or buyer will agree to financing terms
						  other than those offered.
Like licensees in agency relationships, transaction
						  licensees must disclose known material defects about the property.
* Regardless of the business relationship selected, all
						  licensees owe consumers the duty to:
* Exercise reasonable professional skill and care which
						  meets the practice standards required by the RELRA.
* Deal honestly and in good faith.
* Present, as soon as practicable, all written offers,
						  counteroffers, notices and communications to and from the parties. This duty
						  may be waived
by
The seller
where
The
						  seller's property is under contract and the waiver is in writing.
* Comply with the Real Estate Seller Disclosure
						  Law.
* Account for escrow and deposit funds.
* Disclose, as soon as practicable, all conflicts of
						  interest and financial interests.
* Provide assistance with document preparation and
						  advise the consumer regarding compliance with laws pertaining to real estate
						  transactions.
* Advise the consumer to seek expert advice on matters
						  about the transaction that are beyond the licensee's expertise.
* Keep the consumer informed about the transaction and
						  the tasks to be completed.
* Disclose financial interest in a service, such as
						  financial, title transfer and preparation services, insurance, construction,
						  repair or inspection, at the time service is recommended or the first time the
						  licensee learns that the service will be used.
* The following contractual terms are
negotiable
between the licensee and the consumer and must be
						  addressed in an agreement/disclosure statement:
* The duration of the licensee's employment, listing
						  agreement or contract.
* The licensee's fees or commission.
* The scope of the licensee's activities or
						  practices.
* The broker's cooperation with and sharing of fees
						  with other brokers.
* All sales agreements must contain the property's
						  zoning classification except where the property is zoned solely or primarily to
						  permit single family dwellings.
* The Real Estate Recovery Fund exists to reimburse any
						  person who has obtained a final civil judgment against a Pennsylvania real
						  estate licensee owing to fraud, misrepresentation, or deceit in a real estate
						  transaction and who has been unable to collect the judgment after exhausting
						  all legal and equitable remedies. For complete details about the Fund, call
						  (717) 783-3658.
Before you disclose any financial information to
						  a licensee, be advised that unless you select a business relationship by
						  signing a written agreement, the
licensee is NOT representing you.
						  A business relationship is NOT presumed.
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Adopted by the State Real Estate Commission in 49 Pa.
						  Code § 35.336.
The provisions of this §
														35.336 issued under section 608 of
							 the Real Estate Licensing and Registration Act (63 P.S. §
															455.608); amended under sections 404,
							 606-606.6 and 608-608.3 of the Real Estate Licensing and Registration Act
							 (63
							 P.S. §§
															455.404,
							 455.606-455.606f and
							 455.608-455.608c).
This section cited in 49 Pa. Code §
														35.201 (relating to definitions);
							 49 Pa. Code §
														35.284 (relating to disclosures of
							 business relationships); 49 Pa. Code §
														35.286 (relating to retention and
							 production of records); and 49 Pa. Code §
														35.331 (relating to written
							 agreements generally).