PRINTER'S NO. 2937
No. 2220 Session of 2000
INTRODUCED BY MARKOSEK AND CIVERA, FEBRUARY 8, 2000
REFERRED TO COMMITTEE ON PROFESSIONAL LICENSURE,
FEBRUARY 8, 2000
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 disclosure at initial
5 interviews.
6 The General Assembly of the Commonwealth of Pennsylvania
7 hereby enacts as follows:
8 Section 1. Section 608 of the act of February 19, 1980
9 (P.L.15, No.9), known as the Real Estate Licensing and
10 Registration Act, amended November 25, 1998 (P.L.908, No.112),
11 is amended to read:
12 Section 608. Information to be given at initial interview.
13 [The] (a) Except as set forth in subsection (b), the
14 commission shall establish rules or regulations which shall set
15 forth the manner and method of disclosure of information to the
16 prospective buyer/tenant or seller/landlord during the initial
17 interview. For the purposes of this section, the initial
18 interview is the first contact between a licensee and a consumer
19 of real estate-related services where a substantive discussion
1 about real estate needs occurs. Such disclosure shall be
2 provided on a form adopted by the commission by regulation and
3 shall include, but shall not be limited to:
4 (1) A disclosure of the relationships in which the
5 broker may engage with the consumer. The disclosure shall
6 describe the duties that the broker owes in each relationship
7 provided for in this act.
8 (2) A statement informing sellers and buyers of their
9 option to have an agency relationship with a broker, that an
10 agency relationship is not to be presumed and that it will
11 exist only as set forth in a written agreement between the
12 broker and consumer of real estate service acknowledged by
13 the consumer.
14 (3) A statement that a real estate consumer has the
15 right to enter into a negotiated agreement with the broker
16 limiting the activities or practices that the broker will
17 provide for on behalf of the consumer and that the fee and
18 services to be provided are to be determined by negotiations
19 between the consumer and the broker.
20 (4) A statement identifying any possibility that the
21 broker may provide services to another consumer who may be
22 party to the transaction and, if so, an explanation of the
23 duties the broker may owe the other party and whether the
24 broker may accept a fee for those services.
25 (5) A statement identifying any possibility that the
26 broker may designate one or more licensees affiliated with
27 the broker to represent the separate interest of the parties
28 to the transaction.
29 (6) A statement of the broker's policies regarding
30 cooperation with other brokers, including the sharing of
20000H2220B2937 - 2 -
1 fees.
2 (7) A statement that a buyer's broker may be paid a fee
3 that is a percentage of the purchase price and the buyer's
4 broker, even if compensated by the listing broker, will
5 represent the interests of the buyer.
6 (8) A statement that the duration of the broker's
7 employment and the broker's fees are negotiable.
8 (9) The purpose of the Real Estate Recovery Fund and the
9 telephone number of the commission at which further
10 information about the fund may be obtained.
11 (10) A statement that the duration of the listing
12 agreement or contract and the broker's commission are
13 negotiable.
14 (11) A statement that any sales agreement must contain
15 the zoning classification of a property except in cases where
16 the property (or each parcel thereof, if subdividable) is
17 zoned solely or primarily to permit single-family dwellings.
18 (b) The following apply:
19 (1) Subsection (a) shall not apply and disclosure shall
20 be in accordance with paragraph (2) if the licensee is
21 showing a residential rental unit to a prospective tenant for
22 the purpose of rental only and if the licensee is:
23 (i) the actual owner/landlord of the real property;
24 (ii) the direct employee of the owner/landlord of
25 the real property;
26 (iii) leasing the real property pursuant to a
27 property management agreement or an exclusive leasing
28 agreement with the owner/landlord of the real property.
29 (2) In cases under paragraph (1), the licensee shall
30 provide to the prospective tenant a written acknowledgment
20000H2220B2937 - 3 -
1 indicating the capacity in which the licensee is acting. The
2 licensee shall retain a copy of the written acknowledgment.
3 The written acknowledgment shall be provided at the time that
4 a rental application is taken or, if no rental application is
5 taken, at the time of the initial interview. The written
6 acknowledgment must be signed by the parties and must be in
7 the following form:
8 CONSUMER NOTICE
9 THIS IS NOT A CONTRACT
10 ______________________ hereby acknowledges that with respect to
11 (licensee)
12 this residential rental unit(s), I am acting in the following
13 capacity: (check one)
14 ______ owner/landlord of this property
15 ______ a direct employee of the owner/landlord
16 ______ an agent of the owner/landlord pursuant to a property
17 management or exclusive leasing agreement.
18 I certify that I have received
19 this acknowledgment: ________________ ___________
20 (consumer) (date)
21 I certify that I have provided this
22 document: ________________ ___________
23 (licensee) (date)
24 Section 2. This act shall take effect in 60 days.
B4L63VDL/20000H2220B2937 - 4 -