PRINTER'S NO. 13
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 AND KAISER, JANUARY 18, 1989
REFERRED TO COMMITTEE ON PROFESSIONAL LICENSURE,
JANUARY 18, 1989
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," regulating time shares, continuing education and
5 disclosures; and further providing for exclusions.
6 The General Assembly of the Commonwealth of Pennsylvania
7 hereby enacts as follows:
8 Section 1. The definition of "time share" in section 201 of
9 the act of February 19, 1980 (P.L.15, No.9), known as the Real
10 Estate Licensing and Registration Act, amended March 29, 1984
11 (P.L.162, No.32), is amended to read:
12 Section 201. Definitions.
13 The following words and phrases when used in this act shall
14 have, unless the context clearly indicates otherwise, the
15 meanings given to them in this section:
16 * * *
1 "Time share." The right, however evidenced or documented, to
2 use [or occupy a dwelling unit held in fee simple or by lease]
3 and occupy one or more units on a periodic basis according to an
4 arrangement allocating use and occupancy rights of that unit or
5 those units between other similar users. As used in this
6 definition, the term "unit" is a building or portion thereof
7 permanently affixed to real property and designated for separate
8 occupancy or a campground or portion thereof designated for
9 separate occupancy.
10 Section 2. Section 304(6) of the act, amended March 29, 1984
11 (P.L.162, No.32), is amended to read:
12 Section 304. Exclusions.
13 Except as otherwise provided in this act, the provisions of
14 this act shall not apply to the following:
15 * * *
16 (6) The elected officer, director or employee of any
17 banking institution or trust company operating under Federal
18 or State banking laws [where only the real estate] when
19 acting on behalf of the banking institution or trust company
20 [is involved]. The Secretary of Banking may, by regulation,
21 establish professional standards applicable to an elected
22 officer, director or employee when the real estate is not
23 involved in a loan transaction with the banking institution
24 or trust company.
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
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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 606, 607 and 608, added March 29, 1984
26 (P.L.162, No.32), are amended to read:
27 Section 606. Broker's disclosure to seller.
28 In any listing agreement or contract of agency, the broker
29 shall make the following disclosures to any seller of real
30 property:
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1 (1) A statement that the broker's commission and the
2 time period of the listing [are negotiable] have been
3 determined as a result of negotiations between the broker and
4 the seller.
5 (2) A statement describing the purpose of the Real
6 Estate Recovery Fund established under section 801 and the
7 telephone number of the commission at which the seller can
8 receive further information about the fund.
9 Section 607. Broker's disclosure to buyer.
10 In any sales agreement or sales contract, a broker shall make
11 the following disclosures to any prospective buyer of real
12 property:
13 (1) A statement that the broker is the agent of the
14 seller[, not the buyer] or that the broker is the agent of
15 the buyer.
16 (2) A statement describing the purpose of the Real
17 Estate Recovery Fund established under section 801 and the
18 telephone number of the commission at which the purchaser can
19 receive further information about the fund.
20 (3) A statement of the zoning classification of the
21 property [except for single-family dwellings. Failure of any
22 sales agreement or sales contract to contain a statement of
23 the zoning classification of the property] except in cases
24 where the property (or each parcel thereof, if subdividable)
25 is zoned solely or primarily to permit single-family
26 dwellings. Failure to comply with this requirement shall
27 render the sales agreement or sales contract [null and void
28 and] voidable at the option of the buyer; and, if voided, any
29 deposits tendered by the buyer shall be returned to the buyer
30 without any requirement for any court action.
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1 Section 608. Information to be given at initial interview.
2 The commission shall establish rules or regulations which
3 shall set forth the manner and method of disclosure of
4 information to the prospective buyer or seller during the
5 initial interview. Such disclosure shall include, but shall not
6 be limited to:
7 (1) A statement that the broker is the agent of the
8 seller or that the broker is the agent of the buyer.
9 (2) The purpose of the Real Estate Recovery Fund and the
10 telephone number of the commission at which further
11 information about the fund may be obtained.
12 (3) A statement that the duration of the listing
13 agreement or contract and the broker's commission are
14 negotiable.
15 (4) A statement that any sales agreement must contain
16 the zoning classification of a property except in cases where
17 the property (or each parcel thereof, if subdividable) is
18 zoned solely or primarily to permit single-family dwellings.
19 Section 5. The act is amended by adding sections to read:
20 Section 608.1. Limited broker's disclosure.
21 A limited broker shall, prior to the signing of a sales
22 agreement or sales contract, provide a prospective purchaser or
23 seller with a statement describing the purpose of the Real
24 Estate Recovery Fund established under section 801. The
25 statement shall include the telephone number of the commission
26 at which the prospective purchaser or seller can receive further
27 information about the fund. The commission shall establish rules
28 and regulations setting forth the manner and method of
29 disclosure by limited brokers.
30 Section 609. Right to cancel purchase of time share.
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1 (a) A purchaser shall have the right to cancel the purchase
2 of a time share until midnight of the seventh day following the
3 date on which the purchaser executed the purchase contract.
4 (b) The right of cancellation shall be set forth
5 conspicuously in boldface type of at least ten point in size
6 immediately above the signature of the purchaser on the purchase
7 contract in substantially the following form:
8 "You, the purchaser, may cancel this purchase at any time
9 prior to midnight of the seventh day following the date
10 of this transaction. If you desire to cancel, you are
11 required to notify the seller, in writing, at (address).
12 Such notice shall be given by certified return receipt
13 mail or by any other bona fide means of delivery which
14 provides you with a receipt. Such notice shall be
15 effective upon being postmarked by the United States
16 Postal Service or upon deposit of the notice with any
17 bona fide means of delivery which provides you with a
18 receipt."
19 This clause is to be separately initialed by the purchaser.
20 Copies of all documents which place an obligation upon a
21 purchaser shall be given to the purchaser upon execution by the
22 purchaser.
23 (c) Notice of cancellation shall be given by certified
24 return receipt mail or by any other bona fide means of delivery,
25 provided that the purchaser obtains a receipt. A notice of
26 cancellation given by a bona fide means of delivery shall be
27 effective on the date postmarked or on the date of deposit of
28 the notice with any bona fide means of delivery.
29 (d) Within ten business days after the receipt of a notice
30 of cancellation, all payments made under the purchase contract
19890H0011B0013 - 6 -
1 shall be refunded to the purchaser and any documents executed by
2 the purchaser, in connection with the purchase contract, shall
3 be returned to him. In the event of a cancellation pursuant to
4 this section, any promotional prizes, gifts and premiums issued
5 to the purchaser by the seller shall remain the property of the
6 purchaser.
7 (e) The right of cancellation shall not be waivable by any
8 purchaser.
9 (f) A purchaser who exercises the right of cancellation
10 shall not be liable for any damages as a result of the exercise
11 of that right.
12 (g) In addition to constituting a violation of this act, a
13 violation of this section by any individual, corporation,
14 partnership, association or other entity shall also be deemed a
15 violation of the act of December 17, 1968 (P.L.1224, No.387),
16 known as the "Unfair Trade Practices and Consumer Protection
17 Law." The Attorney General is authorized to enforce this
18 section. Any actions brought by the Attorney General to enforce
19 this section shall be in addition to any actions which the
20 commission may bring under this act.
21 (h) The right of the purchaser to bring an action to enforce
22 this section shall be independent of any rights of action which
23 this section confers on the Attorney General and the commission.
24 (i) Nothing in this act shall affect any rights conferred
25 upon the purchaser by 68 Pa.C.S. Pt. II Subpt. B (relating to
26 condominiums).
27 (j) This act shall be applicable to time shares which are
28 located within this Commonwealth and to time shares which are
29 located outside this Commonwealth but for which the purchase
30 contract was executed by the purchaser within this Commonwealth.
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1 Section 6. This act shall take effect in 60 days.
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