SENATE AMENDED
PRIOR PRINTER'S NOS. 13, 412, 3193 PRINTER'S NO. 3640
No. 11 Session of 1989
INTRODUCED BY LLOYD, RITTER, GRUITZA, VROON, FOX, GEIST, COHEN,
WILLIAMS, MICHLOVIC, D. W. SNYDER, MELIO, KUKOVICH, WOZNIAK,
THOMAS, DeLUCA, BELFANTI, MOEHLMANN, TIGUE, LINTON, RAYMOND,
BOYES, NOYE, PRESTON, YANDRISEVITS, CAWLEY, STUBAN, DISTLER,
VAN HORNE, ITKIN, COLAIZZO, FREEMAN, BOWLEY, MORRIS,
GIGLIOTTI, HALUSKA, VEON, CORRIGAN, SCHULER, STABACK,
KOSINSKI, E. Z. TAYLOR, DEMPSEY, KAISER, BORTNER,
CAPPABIANCA, FLICK, BELARDI AND ROBBINS, JANUARY 18, 1989
AS AMENDED ON THIRD CONSIDERATION, IN SENATE, JUNE 4, 1990
AN ACT
1 Amending the act of February 19, 1980 (P.L.15, No.9), entitled
2 "An act establishing the State Real Estate Commission and
3 providing for the licensing of real estate brokers and
4 salesmen," FURTHER PROVIDING FOR THE APPLICATION OF THE ACT <--
5 TO PERSONS EMPLOYED BY AN OWNER OF REAL ESTATE FOR THE
6 PURPOSE OF MANAGING OR MAINTAINING MULTIFAMILY RESIDENTIAL
7 PROPERTY; regulating time shares, continuing education <--
8 CAMPGROUND MEMBERSHIPS and disclosures; and further providing <--
9 for exclusions and for prohibited acts. ADDING AND AMENDING <--
10 CERTAIN DEFINITIONS; FURTHER PROVIDING FOR THE COMMISSION,
11 FOR TIME SHARING, FOR CAMPGROUND MEMBERSHIPS, FOR CERTAIN
12 EXCLUSIONS, FOR LICENSES, FOR OFFICES OF CERTAIN BROKERS AND
13 AGENTS, FOR CERTAIN PROHIBITIONS AND FOR CERTAIN DISCLOSURES;
14 AND FURTHER PROVIDING FOR PENALTIES.
15 The General Assembly of the Commonwealth of Pennsylvania
16 hereby enacts as follows:
17 Section 1. The definition of DEFINITIONS OF "BUILDER-OWNER <--
18 SALESPERSON" SALESPERSON," "LIMITED BROKER," "LIMITED <--
19 SALESPERSON," "PERSON" AND "time share" in section 201 of the
20 act of February 19, 1980 (P.L.15, No.9), known as the Real
1 Estate Licensing and Registration Act, amended March 29, 1984
2 (P.L.162, No.32), is ARE amended AND THE SECTION IS AMENDED BY <--
3 ADDING A DEFINITION DEFINITIONS to read: <--
4 Section 201. Definitions.
5 The following words and phrases when used in this act shall
6 have, unless the context clearly indicates otherwise, the
7 meanings given to them in this section:
8 * * *
9 "BUILDER-OWNER SALESPERSON." ANY PERSON WHO IS A FULL-TIME <--
10 EMPLOYEE OF A BUILDER-OWNER OF SINGLE AND MULTIFAMILY DWELLINGS
11 LOCATED WITHIN THE COMMONWEALTH AND AS SUCH EMPLOYEE SHALL BE
12 AUTHORIZED AND EMPOWERED TO LIST FOR SALE, SELL OR OFFER FOR
13 SALE, OR TO NEGOTIATE THE SALE OR EXCHANGE OF REAL ESTATE, OR TO
14 LEASE OR RENT, OR OFFER TO LEASE, RENT OR PLACE FOR RENT, ANY
15 REAL ESTATE OWNED BY HIS BUILDER-OWNER EMPLOYER, OR COLLECT OR
16 OFFER, OR ATTEMPT TO COLLECT, RENT FOR THE USE OF REAL ESTATE
17 OWNED BY HIS BUILDER-OWNER EMPLOYER, FOR AND ON BEHALF OF SUCH
18 BUILDER-OWNER EMPLOYER. [THE TERM DOES NOT INCLUDE ANY PERSON
19 EMPLOYED BY AN OWNER OF REAL ESTATE FOR THE PURPOSE OF MANAGING
20 OR MAINTAINING MULTIFAMILY RESIDENTIAL PROPERTY: PROVIDED,
21 HOWEVER, THAT SUCH PERSON IS NOT AUTHORIZED OR EMPOWERED BY SUCH
22 OWNER TO ENTER INTO LEASES ON BEHALF OF THE OWNER, TO NEGOTIATE
23 TERMS OR CONDITIONS OF OCCUPANCY WITH CURRENT OR PROSPECTIVE
24 TENANTS, OR TO HOLD MONEY BELONGING TO TENANTS OTHER THAN ON
25 BEHALF OF THE OWNER. THE TERM "NEGOTIATE," AS USED IN THIS
26 DEFINITION DOES NOT MEAN THE TRANSMISSION OF INFORMATION BETWEEN
27 THE OWNER AND CURRENT OR PROSPECTIVE TENANTS, SUCH AS RENTAL
28 AMOUNTS, BUILDING RULES AND REGULATIONS OR LEASING
29 DETERMINATIONS, SO LONG AS THE OWNER RETAINS THE AUTHORITY TO
30 MAKE ALL SUCH DECISIONS.]
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1 "CAMPGROUND MEMBERSHIP." AN INTEREST, OTHER THAN IN FEE
2 SIMPLE OR BY LEASE, WHICH GIVES THE PURCHASER THE RIGHT TO USE A
3 UNIT OF REAL PROPERTY FOR THE PURPOSE OF LOCATING A RECREATIONAL
4 VEHICLE, TRAILER, TENT, TENT TRAILER, PICKUP CAMPER OR OTHER
5 SIMILAR DEVICE ON A PERIODIC BASIS PURSUANT TO A MEMBERSHIP
6 CONTRACT ALLOCATING USE AND OCCUPANCY RIGHTS BETWEEN OTHER
7 SIMILAR USERS.
8 * * *
9 "CEMETERY BROKER." ANY PERSON ENGAGING IN OR CARRYING ON THE <--
10 BUSINESS OR ACTING IN THE CAPACITY OF A BROKER WITHIN THIS
11 COMMONWEALTH EXCLUSIVELY WITHIN THE LIMITED FIELD OR BRANCH OF
12 BUSINESS WHICH APPLIES TO CEMETERY LOTS, PLOTS AND MAUSOLEUM
13 SPACES OR OPENINGS.
14 * * *
15 "CEMETERY SALESPERSON." ANY PERSON EMPLOYED BY A BROKER OR
16 CEMETERY BROKER TO PERFORM DUTIES AS DEFINED HEREIN UNDER
17 "CEMETERY BROKER."
18 * * *
19 ["LIMITED BROKER." ANY PERSON ENGAGING IN OR CARRYING ON THE
20 BUSINESS OR ACT IN THE CAPACITY OF A BROKER WITHIN THE
21 COMMONWEALTH EXCLUSIVELY WITHIN THE LIMITED FIELD OR BRANCH OF
22 BUSINESS WHICH APPLIES TO CEMETERY LOTS, PLOTS AND MAUSOLEUM
23 SPACES OR OPENINGS.
24 "LIMITED SALESPERSON." ANY PERSON EMPLOYED BY A BROKER OR
25 LIMITED BROKER TO PERFORM DUTIES AS DEFINED HEREIN UNDER
26 "LIMITED BROKER". NO PERSON EMPLOYED BY A BROKER TO PERFORM
27 DUTIES OTHER THAN THOSE ACTIVITIES AS DEFINED HEREIN UNDER
28 "LIMITED BROKER" SHALL BE REQUIRED TO BE LICENSED AS A LIMITED
29 SALESPERSON.]
30 "PERSON." ANY INDIVIDUAL, CORPORATION, CORPORATE FIDUCIARY,
19890H0011B3640 - 3 -
1 PARTNERSHIP, ASSOCIATION OR OTHER ENTITY, FOREIGN OR DOMESTIC.
2 * * *
3 "Time share." The right, however evidenced or documented, to
4 use [or occupy [a dwelling unit held in fee simple or by lease] <--
5 and occupy one or more units on a periodic basis according to an <--
6 arrangement allocating use and occupancy rights of that unit or
7 those units between other similar users. As used in this
8 definition, the term "unit" is a building or portion thereof
9 permanently affixed to real property and designated for separate
10 occupancy or a campground or portion thereof designated for
11 separate occupancy. THE PHRASE "TIME SHARE" DOES NOT INCLUDE <--
12 CAMPGROUND MEMBERSHIP.
13 Section 2. Section 304(6) 304 of the act, amended March 29, <--
14 1984 (P.L.162, No.32), is amended to read:
15 Section 304. Exclusions.
16 Except as otherwise provided in this act, the provisions of
17 this act shall not apply to the following:
18 * * * <--
19 (6) The elected officer, director or employee of any
20 banking institution or trust company operating under Federal
21 or State banking laws [where only the real estate] when
22 acting on behalf of the banking institution or trust company
23 [is involved]. The Secretary of Banking may, by regulation,
24 establish professional standards applicable to an elected
25 officer, director or employee when the real estate is not
26 involved in a loan transaction with the banking institution
27 or trust company.
28 SECTION 2. SECTIONS 202(A) AND (C) AND 301 OF THE ACT, <--
29 AMENDED OR ADDED MARCH 29, 1984 (P.L.162, NO.32), ARE AMENDED TO
30 READ:
19890H0011B3640 - 4 -
1 SECTION 202. STATE REAL ESTATE COMMISSION.
2 (A) THE STATE REAL ESTATE COMMISSION IS HEREBY CREATED AND
3 SHALL CONSIST OF THE COMMISSIONER OF PROFESSIONAL AND
4 OCCUPATIONAL AFFAIRS; THE DIRECTOR OF THE BUREAU OF CONSUMER
5 PROTECTION, OR HIS DESIGNEE; THREE MEMBERS WHO SHALL BE PERSONS
6 REPRESENTING THE PUBLIC AT LARGE; FIVE OTHER PERSONS, EACH OF
7 WHOM SHALL AT THE TIME OF HIS APPOINTMENT BE A LICENSED AND
8 QUALIFIED REAL ESTATE BROKER UNDER THE EXISTING LAW OF THIS
9 COMMONWEALTH, AND SHALL HAVE BEEN ENGAGED IN THE REAL ESTATE
10 BUSINESS IN THIS COMMONWEALTH FOR A PERIOD OF NOT LESS THAN TEN
11 YEARS IMMEDIATELY PRIOR TO HIS APPOINTMENT; AND ONE OTHER PERSON
12 WHO SHALL HAVE BEEN LICENSED AS A REAL ESTATE BROKER, OR
13 [LIMITED REAL ESTATE] CEMETERY BROKER, FOR A PERIOD OF AT LEAST
14 FIVE YEARS AND SHALL HAVE BEEN ENGAGED IN SELLING CEMETERY LOTS
15 FOR AT LEAST TEN YEARS IMMEDIATELY PRIOR TO HIS APPOINTMENT.
16 EACH OF SAID MEMBERS OF THE COMMISSION SHALL BE APPOINTED BY THE
17 GOVERNOR.
18 * * *
19 (C) [SIX MEMBERS OF THE COMMISSION] A MAJORITY OF THE
20 MEMBERS CURRENTLY SERVING ON THE COMMISSION SHALL CONSTITUTE A
21 QUORUM. THE COMMISSION SHALL ELECT A CHAIRMAN, VICE-CHAIRMAN AND
22 SECRETARY FROM AMONG ITS MEMBERS. A COMMISSION MEMBER WHO FAILS
23 TO ATTEND THREE CONSECUTIVE MEETINGS SHALL FORFEIT HIS SEAT
24 UNLESS THE COMMISSIONER OF PROFESSIONAL AND OCCUPATIONAL
25 AFFAIRS, UPON WRITTEN REQUEST FROM THE MEMBER, FINDS THAT THE
26 MEMBER SHOULD BE EXCUSED FROM A MEETING BECAUSE OF ILLNESS OR
27 THE DEATH OF A FAMILY MEMBER.
28 * * *
29 SECTION 301. UNLAWFUL TO CONDUCT BUSINESS WITHOUT LICENSE OR
30 REGISTRATION CERTIFICATE.
19890H0011B3640 - 5 -
1 IT SHALL BE UNLAWFUL FOR ANY PERSON, DIRECTLY OR INDIRECTLY,
2 TO ENGAGE IN OR CONDUCT, OR TO ADVERTISE OR HOLD HIMSELF OUT AS
3 ENGAGING IN OR CONDUCTING THE BUSINESS, OR ACTING IN THE
4 CAPACITY OF A BROKER OR SALESPERSON, [LIMITED] CEMETERY BROKER,
5 [LIMITED] CEMETERY SALESPERSON, BUILDER-OWNER SALESPERSON,
6 RENTAL LISTING REFERRAL AGENT OR CEMETERY COMPANY WITHIN THIS
7 COMMONWEALTH WITHOUT FIRST BEING LICENSED OR REGISTERED AS
8 PROVIDED IN THIS ACT, UNLESS HE IS EXEMPTED FROM OBTAINING A
9 LICENSE OR REGISTRATION CERTIFICATE UNDER THE PROVISIONS OF
10 SECTION 304.
11 SECTION 3. SECTION 302 OF THE ACT IS AMENDED TO READ:
12 SECTION 302. CIVIL SUITS.
13 NO ACTION OR SUIT SHALL BE INSTITUTED, NOR RECOVERY BE HAD,
14 IN ANY COURT OF THIS COMMONWEALTH BY ANY PERSON FOR COMPENSATION
15 FOR ANY ACT DONE OR SERVICE RENDERED, THE DOING OR RENDERING OF
16 WHICH IS PROHIBITED UNDER THE PROVISIONS OF THIS ACT BY A PERSON
17 OTHER THAN A LICENSED BROKER, SALESPERSON, [LIMITED] CEMETERY
18 BROKER, [LIMITED] CEMETERY SALESPERSON, BUILDER-OWNER
19 SALESPERSON OR RENTAL LISTING REFERRAL AGENT, UNLESS SUCH PERSON
20 WAS DULY LICENSED AND REGISTERED HEREUNDER AS BROKER OR
21 SALESPERSON AT THE TIME OF OFFERING TO PERFORM ANY SUCH ACT OR
22 SERVICE OR PROCURING ANY PROMISE OR CONTRACT FOR THE PAYMENT OF
23 COMPENSATION FOR ANY SUCH CONTEMPLATED ACT OR SERVICE.
24 SECTION 4. SECTIONS 303 AND 304 OF THE ACT, AMENDED MARCH
25 29, 1984 (P.L.162, NO.32), ARE AMENDED TO READ:
26 SECTION 303. CRIMINAL PENALTIES.
27 ANY PERSON WHO SHALL ENGAGE IN OR CARRY ON THE BUSINESS, OR
28 ACT IN THE CAPACITY OF A BROKER, SALESPERSON, [LIMITED] CEMETERY
29 BROKER, [LIMITED] CEMETERY SALESPERSON, BUILDER-OWNER
30 SALESPERSON, RENTAL LISTING REFERRAL AGENT OR CEMETERY COMPANY,
19890H0011B3640 - 6 -
1 WITHIN THIS COMMONWEALTH, WITHOUT A LICENSE OR REGISTRATION
2 CERTIFICATE, OR SHALL CARRY ON OR CONTINUE BUSINESS AFTER THE
3 SUSPENSION OR REVOCATION OF ANY SUCH LICENSE OR REGISTRATION
4 CERTIFICATE ISSUED TO HIM, OR SHALL EMPLOY ANY PERSON AS A
5 SALESPERSON OR [LIMITED] CEMETERY SALESPERSON TO WHOM A LICENSE
6 HAS NOT BEEN ISSUED, OR WHOSE LICENSE OR REGISTRATION
7 CERTIFICATE AS SUCH SHALL HAVE BEEN REVOKED OR SUSPENDED, SHALL
8 BE GUILTY OF A SUMMARY OFFENSE AND UPON CONVICTION THEREOF FOR A
9 FIRST OFFENSE SHALL BE SENTENCED TO PAY A FINE NOT EXCEEDING
10 $500 OR SUFFER IMPRISONMENT, NOT EXCEEDING THREE MONTHS, OR BOTH
11 AND FOR A SECOND OR SUBSEQUENT OFFENSE SHALL BE GUILTY OF A
12 FELONY OF THE THIRD DEGREE AND UPON CONVICTION THEREOF, SHALL BE
13 SENTENCED TO PAY A FINE OF NOT LESS THAN $2,000 BUT NOT MORE
14 THAN $5,000 OR TO IMPRISONMENT FOR NOT LESS THAN ONE YEAR BUT
15 NOT MORE THAN TWO YEARS, OR BOTH.
16 SECTION 304. EXCLUSIONS.
17 EXCEPT AS OTHERWISE PROVIDED IN THIS ACT, THE PROVISIONS OF
18 THIS ACT SHALL NOT APPLY TO THE FOLLOWING:
19 (1) AN OWNER OF REAL ESTATE WITH RESPECT TO PROPERTY
20 OWNED OR LEASED BY SUCH OWNER. IN THE CASE OF A PARTNERSHIP
21 OR CORPORATION, THIS EXCLUSION SHALL NOT EXTEND TO MORE THAN
22 FIVE OF ITS PARTNERS OR OFFICERS, RESPECTIVELY, NOR TO OTHER
23 PARTNERSHIP OR CORPORATION PERSONNEL OR EMPLOYEES.
24 (2) THE EMPLOYEES OF A PUBLIC UTILITY ACTING IN THE
25 ORDINARY COURSE OF UTILITY-RELATED BUSINESS UNDER THE
26 PROVISIONS OF TITLE 66 OF THE PENNSYLVANIA CONSOLIDATED
27 STATUTES (RELATING TO PUBLIC UTILITIES), WITH RESPECT TO
28 NEGOTIATING THE PURCHASE, SALE OR LEASE OF PROPERTY.
29 (3) THE OFFICERS OR EMPLOYEES OF A PARTNERSHIP OR
30 CORPORATION WHOSE PRINCIPAL BUSINESS IS THE DISCOVERY,
19890H0011B3640 - 7 -
1 EXTRACTION, DISTRIBUTION OR TRANSMISSION OF ENERGY OR MINERAL
2 RESOURCES, PROVIDED THAT THE PURCHASE, SALE OR LEASE OF REAL
3 ESTATE IS A COMMON AND NECESSARY TRANSACTION IN THE CONDUCT
4 OF SUCH PRINCIPAL BUSINESS.
5 (4) THE SERVICES RENDERED BY AN ATTORNEY-IN-FACT UNDER
6 AN EXECUTED AND RECORDED POWER OF ATTORNEY FROM THE OWNER OR
7 LESSOR (PROVIDED SUCH POWER OF ATTORNEY IS NOT UTILIZED TO
8 CIRCUMVENT THE INTENT OF THIS ACT) OR BY AN ATTORNEY AT LAW.
9 (5) A PERSON ACTING AS TRUSTEE IN BANKRUPTCY,
10 ADMINISTRATOR, EXECUTOR, TRUSTEE OR GUARDIAN WHILE ACTING
11 UNDER A COURT ORDER OR UNDER THE AUTHORITY OF A WILL OR OF A
12 TRUST INSTRUMENT.
13 (6) THE ELECTED OFFICER OF ANY BANKING INSTITUTION OR <--
14 TRUST COMPANY OPERATING UNDER FEDERAL OR STATE BANKING LAWS
15 WHERE ONLY THE REAL ESTATE OF THE BANKING INSTITUTION OR
16 TRUST COMPANY IS INVOLVED.
17 (6) THE ELECTED OFFICER OR DIRECTOR OF ANY BANKING <--
18 INSTITUTION, SAVINGS INSTITUTION, SAVINGS BANK, CREDIT UNION
19 OR TRUST COMPANY OPERATING UNDER APPLICABLE FEDERAL OR STATE
20 [BANKING] LAWS WHERE ONLY THE REAL ESTATE OF THE BANKING
21 INSTITUTION, SAVINGS INSTITUTION, SAVINGS BANK, CREDIT UNION
22 OR TRUST COMPANY IS INVOLVED.
23 (7) ANY OFFICER OR EMPLOYEE OF A CEMETERY COMPANY WHO,
24 AS INCIDENTAL TO HIS PRINCIPAL DUTIES AND WITHOUT
25 REMUNERATION THEREFOR, SHOWS LOTS IN SUCH COMPANY'S CEMETERY
26 TO PERSONS FOR THEIR USE AS A FAMILY BURIAL LOT AND WHO
27 ACCEPTS DEPOSITS ON SUCH LOTS FOR THE REPRESENTATIVES OF THE
28 CEMETERY COMPANY LEGALLY AUTHORIZED TO SELL THE SAME.
29 (8) CEMETERY COMPANIES AND CEMETERIES OWNED OR
30 CONTROLLED BY A BONA FIDE CHURCH OR RELIGIOUS CONGREGATION OR
19890H0011B3640 - 8 -
1 FRATERNAL ORGANIZATION OR BY ANY ASSOCIATION CREATED BY A
2 BONA FIDE CHURCH OR RELIGIOUS ORGANIZATION OR BY A FRATERNAL
3 ORGANIZATION.
4 (9) AN AUCTIONEER LICENSED UNDER THE ACT OF SEPTEMBER
5 29, 1961 (P.L.1745, NO.708), KNOWN AS "THE AUCTIONEERS'
6 LICENSE ACT," WHILE PERFORMING AUTHORIZED DUTIES AT ANY BONA
7 FIDE AUCTION.
8 (10) ANY PERSON EMPLOYED BY AN OWNER OF REAL ESTATE FOR
9 THE PURPOSE OF MANAGING OR MAINTAINING MULTIFAMILY
10 RESIDENTIAL PROPERTY: PROVIDED, HOWEVER, THAT SUCH PERSON IS
11 NOT AUTHORIZED OR EMPOWERED BY SUCH OWNER TO ENTER INTO
12 LEASES ON BEHALF OF THE OWNER, TO NEGOTIATE TERMS OR
13 CONDITIONS OF OCCUPANCY WITH CURRENT OR PROSPECTIVE TENANTS,
14 OR TO HOLD MONEY BELONGING TO TENANTS OTHER THAN ON BEHALF OF
15 THE OWNER. SO LONG AS THE OWNER RETAINS THE AUTHORITY TO MAKE
16 ALL SUCH DECISIONS, THE EMPLOYEES MAY SHOW APARTMENTS, AND
17 PROVIDE INFORMATION ON RENTAL AMOUNTS, BUILDING RULES AND
18 REGULATIONS AND LEASING DETERMINATIONS.
19 (11) THE ELECTED OFFICER, DIRECTOR OR EMPLOYEE OF ANY <--
20 BANKING INSTITUTION, SAVINGS INSTITUTION, SAVINGS BANK,
21 CREDIT UNION OR TRUST COMPANY OPERATING UNDER APPLICABLE
22 FEDERAL OR STATE LAWS WHEN ACTING ON BEHALF OF THE
23 INSTITUTION IN PERFORMING APPRAISALS OR OTHER EVALUATIONS OF
24 REAL ESTATE IN CONNECTION WITH A LOAN TRANSACTION.
25 Section 3. The act is amended by adding a section to read: <--
26 Section 404.1. Continuing education.
27 (a) The commission shall adopt, promulgate and enforce rules
28 and regulations consistent with the provisions of this act
29 establishing requirements of continuing education to be met by
30 individuals licensed as real estate brokers and real estate
19890H0011B3640 - 9 -
1 salespersons under this act as a condition for renewal of their
2 licenses. The commission may waive all or part of the continuing
3 education requirement for a salesperson or broker who shows
4 evidence, to the commission's satisfaction, that he was unable
5 to complete the requirement due to illness, emergency or
6 hardship. Such regulations shall include any fees necessary for
7 the commission to carry out its responsibilities under this
8 section.
9 (b) Beginning with the license period designated by
10 regulation, each person licensed pursuant to this act shall be
11 required to obtain 14 hours of mandatory continuing education
12 during each two-year license period. A licensed broker or
13 salesperson who wishes to activate a license which has been
14 placed on inactive status shall be required to document no more
15 than 14 hours of continuing education. Upon renewal of the
16 license, the commission shall waive all or part of the 14 hours,
17 on a prorated basis, if one year or less remains before the next
18 renewal at the time such license is activated.
19 (c) All courses, materials, locations and instructors shall
20 be approved by the commission. No credit shall be given for any
21 course in office management.
22 (d) The commission shall initiate the promulgation of
23 regulations to carry out the provisions of this section within
24 six months of the effective date of this section.
25 Section 4. Sections 604(a)(18), 606, 607 and 608, amended or
26 added March 29, 1984 (P.L.162, No.32), are amended to read:
27 SECTION 3. SECTION 604(A) OF THE ACT IS AMENDED BY ADDING A <--
28 PARAGRAPH TO READ:
29 SECTION 5. SECTIONS 501 AND 512(C) OF THE ACT, AMENDED MARCH <--
30 29, 1984 (P.L.162, NO.32), ARE AMENDED TO READ:
19890H0011B3640 - 10 -
1 SECTION 501. REPUTATION; INACTIVE LICENSEE; REVOKED LICENSE.
2 (A) LICENSES SHALL BE GRANTED ONLY TO AND RENEWED ONLY FOR
3 PERSONS WHO BEAR A GOOD REPUTATION FOR HONESTY, TRUSTWORTHINESS,
4 INTEGRITY AND COMPETENCE TO TRANSACT THE BUSINESS OF BROKER,
5 SALESPERSON, [LIMITED] CEMETERY BROKER, [LIMITED] CEMETERY
6 SALESPERSON, BUILDER-OWNER SALESPERSON OR RENTAL LISTING
7 REFERRAL AGENT, IN SUCH MANNER AS TO SAFEGUARD THE INTEREST OF
8 THE PUBLIC, AND ONLY AFTER SATISFACTORY PROOF OF SUCH
9 QUALIFICATIONS HAS BEEN PRESENTED TO THE COMMISSION AS IT SHALL
10 BY REGULATION REQUIRE.
11 (B) ANY PERSON WHO REMAINS INACTIVE FOR A PERIOD OF FIVE
12 YEARS WITHOUT RENEWING HIS LICENSE SHALL, PRIOR TO HAVING A
13 LICENSE REISSUED TO HIM, SUBMIT TO AND PASS THE EXAMINATION
14 PERTINENT TO THE LICENSE FOR WHICH THE PERSON IS REAPPLYING.
15 (C) UNLESS ORDERED TO DO SO BY COMMONWEALTH COURT, THE
16 COMMISSION SHALL NOT REINSTATE THE LICENSE, WITHIN FIVE YEARS OF
17 THE DATE OF REVOCATION, OF ANY PERSON WHOSE LICENSE HAS BEEN
18 REVOKED UNDER THIS ACT. ANY PERSON WHOSE LICENSE HAS BEEN
19 REVOKED MAY REAPPLY FOR A LICENSE AT THE END OF THE FIVE-YEAR
20 PERIOD BUT MUST MEET ALL OF THE LICENSING QUALIFICATIONS OF THIS
21 ACT FOR THE LICENSE APPLIED FOR, TO INCLUDE THE EXAMINATION
22 REQUIREMENT.
23 SECTION 512. APPLICATION FOR LICENSE.
24 * * *
25 (C) THE APPLICATION SHALL BE RECEIVED BY THE COMMISSION
26 WITHIN THREE YEARS OF THE DATE UPON WHICH THE APPLICANT [TOOK]
27 PASSED THE EXAMINATION.
28 SECTION 6. SECTION 522(C), THE SUBCHAPTER HEADING OF
29 SUBCHAPTER D AND SECTION 531 OF THE ACT ARE AMENDED TO READ:
30 SECTION 522. APPLICATION FOR LICENSE.
19890H0011B3640 - 11 -
1 * * *
2 (C) THE APPLICATION SHALL BE RECEIVED BY THE COMMISSION
3 WITHIN THREE YEARS OF THE DATE UPON WHICH THE APPLICANT [TOOK]
4 PASSED THE EXAMINATION.
5 SUBCHAPTER D
6 [LIMITED] CEMETERY BROKER'S LICENSE
7 SECTION 531. QUALIFICATIONS FOR LICENSE.
8 EACH APPLICANT FOR A [LIMITED] CEMETERY BROKER'S LICENSE
9 SHALL AS A CONDITION TO OBTAINING A LICENSE TAKE THE [LIMITED]
10 CEMETERY BROKER'S LICENSE EXAMINATION AND SCORE A PASSING GRADE.
11 PRIOR TO TAKING THE EXAMINATION:
12 (1) THE APPLICANT SHALL BE AT LEAST 21 YEARS OF AGE.
13 (2) THE APPLICANT SHALL HAVE BEEN ENGAGED FULL TIME AS A
14 SALES PERSON OR [LIMITED] CEMETERY SALESPERSON FOR AT LEAST
15 THREE YEARS OR POSSESS EDUCATIONAL OR EXPERIENCE
16 QUALIFICATIONS WHICH THE COMMISSION DEEMS TO BE THE
17 EQUIVALENT THEREOF.
18 SECTION 7. SECTION 532 OF THE ACT, AMENDED MARCH 29, 1984
19 (P.L.162, NO.32), IS AMENDED TO READ:
20 SECTION 532. APPLICATION FOR LICENSE.
21 (A) AN APPLICATION FOR A LICENSE AS A [LIMITED] CEMETERY
22 BROKER SHALL BE MADE, IN WRITING, TO THE DEPARTMENT, UPON A FORM
23 PROVIDED FOR THE PURPOSE BY THE DEPARTMENT AND SHALL CONTAIN
24 SUCH INFORMATION AS TO THE APPLICANT, AS THE COMMISSION SHALL
25 REQUIRE.
26 (B) THE APPLICANT SHALL HAVE COMPLETED 60 HOURS IN REAL
27 ESTATE INSTRUCTION IN AREAS OF STUDY PRESCRIBED BY THE RULES OF
28 THE COMMISSION, WHICH RULES SHALL REQUIRE INSTRUCTION IN THE
29 AREA OF PROFESSIONAL ETHICS.
30 (C) THE APPLICATION SHALL BE RECEIVED BY THE COMMISSION
19890H0011B3640 - 12 -
1 WITHIN THREE YEARS OF THE DATE UPON WHICH THE APPLICANT [TOOK]
2 PASSED THE EXAMINATION.
3 SECTION 8. SECTION 533, THE SUBCHAPTER HEADING OF SUBCHAPTER
4 E AND SECTIONS 541, 542 AND 552(C) OF THE ACT ARE AMENDED TO
5 READ:
6 SECTION 533. CORPORATIONS, PARTNERSHIPS, ASSOCIATIONS
7 OR OTHER ENTITIES.
8 IF THE APPLICANT FOR A [LIMITED] CEMETERY BROKER'S LICENSE IS
9 A CORPORATION, PARTNERSHIP, ASSOCIATION, OR OTHER ENTITY,
10 FOREIGN OR DOMESTIC, THEN THE PROVISIONS OF SECTIONS 531 AND 532
11 SHALL APPLY TO THE INDIVIDUAL DESIGNATED AS BROKER OF RECORD, AS
12 WELL AS THOSE MEMBERS ACTUALLY ENGAGING IN OR INTENDING TO
13 ENGAGE IN THE REAL ESTATE BUSINESS.
14 SUBCHAPTER E
15 [LIMITED] CEMETERY SALESPERSON'S LICENSE
16 SECTION 541. QUALIFICATIONS FOR LICENSE.
17 THE APPLICANT FOR A [LIMITED] CEMETERY SALESPERSON'S LICENSE
18 SHALL BE AT LEAST 18 YEARS OF AGE.
19 SECTION 542. APPLICATION FOR LICENSE.
20 (A) AN APPLICATION FOR A LICENSE AS A [LIMITED] CEMETERY
21 SALESPERSON SHALL BE MADE, IN WRITING, TO THE DEPARTMENT, UPON A
22 FORM PROVIDED FOR THE PURPOSE BY THE DEPARTMENT, AND SHALL
23 CONTAIN SUCH INFORMATION AS TO THE APPLICANT, AS THE COMMISSION
24 SHALL REQUIRE.
25 (B) THE APPLICANT FOR A LICENSE SHALL SUBMIT A SWORN
26 AFFIDAVIT BY THE BROKER OR [LIMITED] CEMETERY BROKER WITH WHOM
27 HE DESIRES TO BE AFFILIATED CERTIFYING THAT THE BROKER WILL
28 ACTIVELY SUPERVISE AND TRAIN THE APPLICANT AND CERTIFYING THE
29 TRUTH AND ACCURACY OF THE CERTIFICATION OF THE APPLICANT.
30 SECTION 552. APPLICATION FOR LICENSE.
19890H0011B3640 - 13 -
1 * * *
2 (C) THE APPLICATION SHALL BE RECEIVED BY THE COMMISSION
3 WITHIN THREE YEARS OF THE DATE UPON WHICH THE APPLICANT [TOOK]
4 PASSED THE EXAMINATION.
5 SECTION 9. SECTIONS 601 AND 603 OF THE ACT, AMENDED MARCH
6 29, 1984 (P.L.162, NO.32), ARE AMENDED TO READ:
7 SECTION 601. DUTY OF BROKERS [AND LIMITED], CEMETERY BROKERS
8 AND RENTAL LISTING REFERRAL AGENTS TO MAINTAIN
9 OFFICE.
10 (A) EACH RESIDENT LICENSED BROKER (WHICH TERM IN THIS
11 SECTION SHALL INCLUDE [LIMITED] CEMETERY BROKER) AND RENTAL
12 LISTING REFERRAL AGENT SHALL MAINTAIN A FIXED OFFICE WITHIN THIS
13 COMMONWEALTH. THE CURRENT LICENSE OF A RENTAL LISTING REFERRAL
14 AGENT OR BROKER AND OF EACH LICENSEE EMPLOYED BY SUCH BROKER
15 SHALL BE PROMINENTLY DISPLAYED IN AN OFFICE OF THE BROKER OR
16 RENTAL LISTING REFERRAL AGENT. THE ADDRESS OF THE OFFICE SHALL
17 BE DESIGNATED ON THE CURRENT LICENSE. IN CASE OF REMOVAL OF A
18 BROKER'S OFFICE FROM THE DESIGNATED LOCATION, ALL LICENSEES
19 REGISTERED AT THAT LOCATION SHALL MAKE APPLICATION TO THE
20 COMMISSION BEFORE SUCH REMOVAL OR WITHIN TEN DAYS THEREAFTER,
21 DESIGNATING THE NEW LOCATION OF THE OFFICE, AND SHALL PAY THE
22 REQUIRED FEES, WHEREUPON THE COMMISSION SHALL ISSUE A CURRENT
23 LICENSE AT THE NEW LOCATION FOR THE UNEXPIRED PERIOD, IF THE NEW
24 LOCATION COMPLIES WITH THE TERMS OF THIS ACT. EACH LICENSED
25 BROKER SHALL MAINTAIN A SIGN ON THE OUTSIDE OF HIS OFFICE
26 INDICATING THE PROPER LICENSED BROKERAGE NAME.
27 (B) IF THE APPLICANT FOR A BROKER'S LICENSE INTENDS TO
28 MAINTAIN MORE THAN ONE PLACE OF BUSINESS WITHIN THE
29 COMMONWEALTH, HE SHALL APPLY FOR AND OBTAIN AN ADDITIONAL
30 LICENSE IN HIS NAME AT EACH OFFICE. EVERY SUCH APPLICATION SHALL
19890H0011B3640 - 14 -
1 STATE THE LOCATION OF SUCH OFFICE. [EFFECTIVE 24 MONTHS AFTER
2 THE EFFECTIVE DATE OF THIS ACT, EACH] EACH OFFICE SHALL BE UNDER
3 THE DIRECTION AND SUPERVISION OF A MANAGER WHO IS EITHER THE
4 BROKER OR AN ASSOCIATE BROKER: PROVIDED, HOWEVER, THAT SUCH
5 BROKER OR AN ASSOCIATE BROKER MAY DIRECT AND SUPERVISE MORE THAN
6 ONE OFFICE.
7 SECTION 603. EMPLOYMENT OF ASSOCIATE BROKERS, SALESPERSON.
8 NO ASSOCIATE BROKER OR SALESPERSON (WHICH TERM IN THIS
9 SECTION SHALL INCLUDE [LIMITED] CEMETERY SALESPERSON) SHALL BE
10 EMPLOYED BY ANY OTHER BROKER THAN IS DESIGNATED UPON THE CURRENT
11 LICENSE ISSUED TO SAID ASSOCIATE BROKER OR SAID SALESPERSON.
12 WHENEVER A LICENSED SALESPERSON OR ASSOCIATE BROKER DESIRES TO
13 CHANGE HIS EMPLOYMENT FROM ONE LICENSED BROKER TO ANOTHER, HE
14 SHALL NOTIFY THE COMMISSION IN WRITING NO LATER THAN TEN DAYS
15 AFTER THE INTENDED DATE OF CHANGE, PAY THE REQUIRED FEE, AND
16 RETURN HIS CURRENT LICENSE. THE COMMISSION, SHALL, UPON RECEIPT
17 OF ACKNOWLEDGMENT FROM THE NEW BROKER OF THE CHANGE OF
18 EMPLOYMENT ISSUE A NEW LICENSE. IN THE INTERIM AT SUCH TIME AS
19 THE CHANGE IN AFFILIATION OF THE SALESPERSON OR ASSOCIATE BROKER
20 OCCURS, HE SHALL MAINTAIN A COPY OF THE NOTIFICATION SENT TO THE
21 COMMISSION AS HIS TEMPORARY LICENSE PENDING RECEIPT OF HIS NEW
22 CURRENT LICENSE. IT SHALL BE THE DUTY OF THE APPLICANT TO NOTIFY
23 THE COMMISSION IF A NEW LICENSE OR OTHER PERTINENT COMMUNICATION
24 IS NOT RECEIVED FROM THE COMMISSION WITHIN 30 DAYS.
25 SECTION 10. SECTION 604(A)(5) AND (8) OF THE ACT, AMENDED
26 MARCH 29, 1984 (P.L.162, NO.32), ARE AMENDED AND THE SUBSECTION
27 IS AMENDED BY ADDING PARAGRAPHS TO READ:
28 Section 604. Prohibited acts.
29 (a) The commission may upon its own motion, and shall
30 promptly upon the verified complaint in writing of any person
19890H0011B3640 - 15 -
1 setting forth a complaint under this section, ascertain the
2 facts and, if warranted, hold a hearing for the suspension or
3 revocation of a license or registration certificate or for the
4 imposition of fines not exceeding $1,000, or both. The
5 commission shall have power to refuse a license or registration
6 certificate for cause or to suspend or revoke a license or
7 registration certificate or to levy fines up to $1,000, or both,
8 where the said license has been obtained by false
9 representation, or by fraudulent act or conduct, or where a
10 licensee or registrant, in performing or attempting to perform
11 any of the acts mentioned herein, is found guilty of:
12 * * *
13 (18) Soliciting, selling or offering for sale real <--
14 property by offering free lots, or conducting lotteries or
15 contests or offering prizes for the purpose of influencing by
16 deceptive conduct any purchaser or prospective purchaser of
17 real property. The commission shall promulgate necessary
18 rules and regulations to provide standards for nondeception
19 conduct under this paragraph.
20 (i) Any offering by mail or by telephone of any
21 prize, gift, award or bonus in relation to the offering
22 of sale of real property, including time sharing, shall
23 be accompanied by a statement of the fair market value,
24 not suggested retail price, of all prizes offered, plus a
25 statement of the odds of receiving any such prize. If the
26 offering is by mail the statement of value and odds shall
27 be printed in the same size type as the prize description
28 and shall appear immediately adjacent to said
29 description.
30 (ii) If a prize is to be awarded as a rebate, coupon
19890H0011B3640 - 16 -
1 or discount certificate, a statement of that fact shall
2 be included in the same paragraph as the prize
3 description. An offering by mail shall include a
4 statement immediately following the prize description of
5 any fees and the maximum amount of each which the
6 prizewinner must pay in order to receive the prize. Such
7 fees shall include, but not be limited to, dealer
8 preparation, shipping, handling, redemption and shipping
9 insurance. Each fee associated with a prize, and the odds
10 of receiving the prize, shall appear immediately below
11 any photograph of the prize which appears on any offering
12 by mail.
13 (iii) An offering by mail shall be written in a
14 clear and coherent manner, using common usages of words
15 and terms. A concise description of the real property or
16 interest being promoted shall appear in any offering and
17 shall include a statement that the interest is a time
18 share, where applicable. If the prospective prizewinner
19 must personally visit and inspect the real property or
20 interest being promoted and listen to a sales
21 presentation in order to win a prize, the offering shall
22 include a statement of that fact. An offering may include
23 instructions for a recipient to contact a certain
24 telephone number within a specified time period or by a
25 specified date, if the offeror identifies the business
26 entity and its relationship to the offeror and complies
27 with this paragraph.
28 (iv) Substitutions of prizes having equal or greater
29 fair market value may be made if the offeror complies
30 with this paragraph.
19890H0011B3640 - 17 -
1 (v) As used in this paragraph, the term "prize"
2 includes, but is not limited to, money, personal
3 property, vacations, travel certificates, motor vehicles
4 and appliances.
5 * * *
6 Section 606. Broker's disclosure to seller.
7 In any listing agreement or contract of agency, the broker
8 shall make the following disclosures to any seller of real
9 property:
10 (1) A statement that the broker's commission and the
11 time period of the listing [are negotiable] have been
12 determined as a result of negotiations between the broker and
13 the seller.
14 (2) A statement describing the purpose of the Real
15 Estate Recovery Fund established under section 801 and the
16 telephone number of the commission at which the seller can
17 receive further information about the fund.
18 Section 607. Broker's disclosure to buyer.
19 In any sales agreement or sales contract, a broker shall make
20 the following disclosures to any prospective buyer of real
21 property:
22 (1) A statement that the broker is the agent of the
23 seller[, not the buyer] or that the broker is the agent of
24 the buyer.
25 (2) A statement describing the purpose of the Real
26 Estate Recovery Fund established under section 801 and the
27 telephone number of the commission at which the purchaser can
28 receive further information about the fund.
29 (3) A statement of the zoning classification of the
30 property [except for single-family dwellings. Failure of any
19890H0011B3640 - 18 -
1 sales agreement or sales contract to contain a statement of
2 the zoning classification of the property] except in cases
3 where the property (or each parcel thereof, if subdividable)
4 is zoned solely or primarily to permit single-family
5 dwellings. Failure to comply with this requirement shall
6 render the sales agreement or sales contract [null and void
7 and] voidable at the option of the buyer; and, if voided, any
8 deposits tendered by the buyer shall be returned to the buyer
9 without any requirement for any court action.
10 Section 608. Information to be given at initial interview.
11 The commission shall establish rules or regulations which
12 shall set forth the manner and method of disclosure of
13 information to the prospective buyer or seller during the
14 initial interview. Such disclosure shall include, but shall not
15 be limited to:
16 (1) A statement that the broker is the agent of the
17 seller or that the broker is the agent of the buyer.
18 (2) The purpose of the Real Estate Recovery Fund and the
19 telephone number of the commission at which further
20 information about the fund may be obtained.
21 (3) A statement that the duration of the listing
22 agreement or contract and the broker's commission are
23 negotiable.
24 (4) A statement that any sales agreement must contain
25 the zoning classification of a property except in cases where
26 the property (or each parcel thereof, if subdividable) is
27 zoned solely or primarily to permit single-family dwellings.
28 (26) VIOLATING SECTION 609. <--
29 (5) FAILURE TO COMPLY WITH THE FOLLOWING REQUIREMENTS: <--
30 (I) ALL DEPOSITS OR OTHER MONEYS ACCEPTED BY EVERY
19890H0011B3640 - 19 -
1 PERSON, HOLDING A REAL ESTATE BROKER LICENSE UNDER THE
2 PROVISIONS OF THIS ACT, SHALL BE RETAINED BY SUCH REAL
3 ESTATE BROKER PENDING CONSUMMATION OR TERMINATION OF THE
4 TRANSACTION INVOLVED, AND SHALL BE ACCOUNTED FOR IN THE
5 FULL AMOUNT THEREOF AT THE TIME OF THE CONSUMMATION OR
6 TERMINATION;
7 (II) EVERY SALESPERSON AND ASSOCIATE BROKER PROMPTLY
8 ON RECEIPT BY HIM OF A DEPOSIT OR OTHER MONEYS ON ANY
9 TRANSACTION IN WHICH HE IS ENGAGED ON BEHALF OF HIS
10 BROKER-EMPLOYER, SHALL PAY OVER THE DEPOSIT TO THE
11 BROKER;
12 (III) A BROKER SHALL NOT COMMINGLE THE MONEY OR
13 OTHER PROPERTY OF HIS PRINCIPAL WITH HIS OWN;
14 (IV) EVERY BROKER SHALL IMMEDIATELY DEPOSIT SUCH
15 MONEYS, OF WHATEVER KIND OR NATURE, BELONGING TO OTHERS,
16 IN A SEPARATE CUSTODIAL OR TRUST FUND ACCOUNT MAINTAINED
17 BY THE BROKER WITH SOME BANK OR RECOGNIZED DEPOSITORY
18 UNTIL THE TRANSACTION INVOLVED IS CONSUMMATED OR
19 TERMINATED, AT WHICH TIME THE BROKER SHALL ACCOUNT FOR
20 THE FULL AMOUNT RECEIVED. UNDER NO CIRCUMSTANCES SHALL A
21 BROKER PERMIT ANY ADVANCE PAYMENT OF FUNDS BELONGING TO
22 OTHERS TO BE DEPOSITED IN THE BROKER'S BUSINESS OR
23 PERSONAL ACCOUNT, OR TO BE COMMINGLED WITH ANY FUNDS HE
24 MAY HAVE ON DEPOSIT; [OR]
25 (V) EVERY BROKER SHALL KEEP RECORDS OF ALL FUNDS
26 DEPOSITED THEREIN, WHICH RECORDS SHALL INDICATE CLEARLY
27 THE DATE AND FROM WHOM HE RECEIVED MONEY, THE DATE
28 DEPOSITED, THE DATES OF WITHDRAWALS, AND OTHER PERTINENT
29 INFORMATION CONCERNING THE TRANSACTION, AND SHALL SHOW
30 CLEARLY FOR WHOSE ACCOUNT THE MONEY IS DEPOSITED AND TO
19890H0011B3640 - 20 -
1 WHOM THE MONEY BELONGS. ALL SUCH RECORDS AND FUNDS SHALL
2 BE SUBJECT TO INSPECTION BY THE COMMISSION. SUCH SEPARATE
3 CUSTODIAL OR TRUST FUND ACCOUNT SHALL DESIGNATE THE
4 BROKER, AS TRUSTEE, AND SUCH ACCOUNT MUST PROVIDE FOR
5 WITHDRAWAL OF FUNDS WITHOUT PREVIOUS NOTICE. ALL SUCH
6 RECORDS SHALL BE AVAILABLE TO THE COMMISSION, OR ITS
7 REPRESENTATIVES, IMMEDIATELY AFTER PROPER DEMAND OR AFTER
8 WRITTEN NOTICE GIVEN, OR UPON WRITTEN NOTICE GIVEN TO THE
9 DEPOSITORY[.];
10 (VI) A BROKER IS NOT REQUIRED TO HOLD IN ESCROW
11 RENTS THAT HE RECEIVES FOR PROPERTY MANAGEMENT FOR A
12 LESSOR. A BROKER SHALL DEPOSIT RENTS RECEIVED INTO A
13 RENTAL MANAGEMENT ACCOUNT THAT IS SEPARATE FROM THE
14 BROKER'S ESCROW ACCOUNT AND GENERAL BUSINESS ACCOUNTS; OR
15 (VII) A BROKER SHALL BE PERMITTED TO DEPOSIT MONEYS
16 INTO HIS ESCROW ACCOUNT TO COVER SERVICE CHARGES TO THIS
17 ACCOUNT ASSESSED BY THE BANKING INSTITUTION.
18 * * *
19 (8) PLACING A "FOR SALE" OR "FOR RENT" SIGN ON OR
20 ADVERTISING ANY PROPERTY WITHOUT THE WRITTEN CONSENT OF THE
21 OWNER, OR HIS AUTHORIZED AGENT.
22 * * *
23 (12.1) PAYING OF A COMMISSION OR ANY VALUABLE
24 CONSIDERATION BY A BROKER TO ANYONE OTHER THAN HIS LICENSED
25 EMPLOYEES OR ANOTHER REAL ESTATE BROKER FOR THE PERFORMANCE
26 OF ANY ACTS SPECIFIED IN THIS ACT.
27 * * *
28 (26) VIOLATING SECTION 609.
29 Section 5 4 11. The act is amended by adding sections to <--
30 read:
19890H0011B3640 - 21 -
1 Section 608.1. Limited broker's disclosure. <--
2 A limited broker shall, prior to the signing of a sales
3 agreement or sales contract, provide a prospective purchaser or
4 seller with a statement describing the purpose of the Real
5 Estate Recovery Fund established under section 801. The
6 statement shall include the telephone number of the commission
7 at which the prospective purchaser or seller can receive further
8 information about the fund. The commission shall establish rules
9 and regulations setting forth the manner and method of
10 disclosure by limited brokers.
11 SECTION 608.1. CEMETERY BROKER'S DISCLOSURE. <--
12 IN ANY SALES AGREEMENT OR SALES CONTRACT, A CEMETERY BROKER
13 SHALL BE SUBJECT TO THE REQUIREMENTS OF SECTION 607(2) AS IT
14 RELATES TO THE REAL ESTATE RECOVERY FUND AND THE DISCLOSURE OF
15 INFORMATION.
16 Section 609. Right to cancel purchase of time share AND <--
17 CAMPGROUND MEMBERSHIP.
18 (a) A purchaser shall have the right to cancel the purchase
19 of a time share OR A CAMPGROUND MEMBERSHIP until midnight of the <--
20 seventh FIFTH day following the date on which the purchaser <--
21 executed the purchase contract.
22 (b) The right of cancellation shall be set forth
23 conspicuously in boldface type of at least ten point in size
24 immediately above the signature of the purchaser on the purchase
25 contract in substantially the following form:
26 "You, the purchaser, may cancel this purchase at any time
27 prior to midnight of the seventh FIFTH day following the <--
28 date of this transaction. If you desire to cancel, you
29 are required to notify the seller, in writing, at
30 (address). Such notice shall be given by certified return
19890H0011B3640 - 22 -
1 receipt mail or by any other bona fide means of delivery
2 which provides you with a receipt. Such notice shall be
3 effective upon being postmarked by the United States
4 Postal Service or upon deposit of the notice with any
5 bona fide means of delivery which provides you with a
6 receipt."
7 This clause is to be separately initialed by the purchaser.
8 Copies of all documents which place an obligation upon a
9 purchaser shall be given to the purchaser upon execution by the
10 purchaser.
11 (c) Notice of cancellation shall be given by certified
12 return receipt mail or by any other bona fide means of delivery,
13 provided that the purchaser obtains a receipt. A notice of
14 cancellation given by a bona fide means of delivery shall be
15 effective on the date postmarked or on the date of deposit of
16 the notice with any bona fide means of delivery.
17 (d) Within ten business days after the receipt of a notice
18 of cancellation, all payments made under the purchase contract
19 shall be refunded to the purchaser and any documents executed by <--
20 the purchaser, in connection with the purchase contract, shall
21 be returned to him. AN ACKNOWLEDGMENT THAT THE CONTRACT IS VOID <--
22 SHALL BE SENT TO THE PURCHASER. In the event of a cancellation
23 pursuant to this section, any promotional prizes, gifts and
24 premiums issued to the purchaser by the seller shall remain the
25 property of the purchaser.
26 (e) The right of cancellation shall not be waivable by any
27 purchaser.
28 (f) A purchaser who exercises the right of cancellation
29 shall not be liable for any damages as a result of the exercise
30 of that right.
19890H0011B3640 - 23 -
1 (g) In addition to constituting a violation of this act, a
2 violation of this section by any individual, corporation,
3 partnership, association or other entity shall also be deemed a
4 violation of the act of December 17, 1968 (P.L.1224, No.387),
5 known as the "Unfair Trade Practices and Consumer Protection
6 Law." The Attorney General is authorized to enforce this
7 section. Any actions brought by the Attorney General to enforce
8 this section shall be in addition to any actions which the
9 commission may bring under this act.
10 (h) The right of the purchaser to bring an action to enforce
11 this section shall be independent of any rights of action which
12 this section confers on the Attorney General and the commission.
13 (i) Nothing in this act shall affect any rights conferred
14 upon the purchaser by 68 Pa.C.S. Pt. II Subpt. B (relating to
15 condominiums).
16 (j) This act shall be applicable to time shares AND <--
17 CAMPGROUND MEMBERSHIPS which are located within this
18 Commonwealth and to time shares AND CAMPGROUND MEMBERSHIPS which <--
19 are located outside this Commonwealth but for which the purchase
20 contract was executed by the purchaser within this Commonwealth.
21 Section 6 5. This act shall take effect in 60 days. <--
22 SECTION 12. SECTION 702(B) OF THE ACT, AMENDED MARCH 7, 1982 <--
23 (P.L.158, NO.50), IS AMENDED TO READ:
24 SECTION 702. IMPUTED KNOWLEDGE, LIMITATIONS.
25 * * *
26 (B) NO VIOLATION OF ANY OF THE PROVISIONS OF THIS ACT ON THE
27 PART OF ANY [LIMITED] CEMETERY BROKER OR [LIMITED] CEMETERY
28 SALESPERSON OR OTHER EMPLOYEE OF ANY REGISTERED CEMETERY
29 COMPANY, SHALL BE GROUNDS FOR THE REVOCATION OR SUSPENSION OF
30 THE REGISTRATION CERTIFICATE OF THE CEMETERY COMPANY, UNLESS IT
19890H0011B3640 - 24 -
1 SHALL APPEAR THAT SUCH CEMETERY COMPANY HAD ACTUAL KNOWLEDGE OF
2 SUCH VIOLATION.
3 * * *
4 SECTION 13. SECTION 4 (SECTION 304(6) AND (11)) SHALL APPLY
5 TO THE FOLLOWING:
6 (1) ACTIONS PENDING BEFORE THE STATE REAL ESTATE
7 COMMISSION AS OF THE EFFECTIVE DATE OF THIS ACT UNDER SECTION
8 14(1).
9 (2) APPEALS FROM DECISIONS OF THE COMMISSION PENDING AS
10 OF THE EFFECTIVE DATE OF THIS ACT UNDER SECTION 14(1).
11 (3) ACTIONS BEFORE THE COMMISSION WHERE APPEAL IS STILL
12 TIMELY AS OF THE EFFECTIVE DATE OF THIS ACT UNDER SECTION
13 14(1).
14 (4) ACTIONS BEFORE THE COMMISSION COMMENCED ON OR AFTER
15 THE EFFECTIVE DATE OF THIS ACT UNDER SECTION 14(1) WHICH ARE
16 BASED ON ACTS WHICH TOOK PLACE PRIOR TO THE EFFECTIVE DATE OF
17 THIS ACT UNDER SECTION 14(1).
18 SECTION 14. THIS ACT SHALL TAKE EFFECT AS FOLLOWS:
19 (1) SECTION 4 (SECTION 304(6) AND (11)) AND THIS SECTION
20 SHALL TAKE EFFECT IMMEDIATELY.
21 (2) THE REMAINDER OF THIS ACT SHALL TAKE EFFECT IN 60
22 DAYS.
L28L63JRW/19890H0011B3640 - 25 -