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Pennsylvania House of Representatives
https://www.legis.state.pa.us/cfdocs/Legis/CSM/showMemoPublic.cfm?chamber=H&SPick=20190&cosponId=29641
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House of Representatives
Session of 2019 - 2020 Regular Session

MEMORANDUM

Posted: May 22, 2019 04:08 PM
From: Representative F. Todd Polinchock
To: All House members
Subject: Real Estate Teams
 
In the near future, I plan on introducing legislation to amend the Real Estate Licensing and Registration Act (RELRA) (Act 9 of 1980) to recognize and regulate the practice of real estate teams. Team practice is when two or more licensees, employed by the same broker, work together to provide real estate services and advertise as a team.

Currently, the RELRA does not address teams and this is problematic as this method of practice is becoming more commonplace, both nationally and in Pennsylvania. In 2005, the State Real Estate Commission first issued a guideline outlining its position on how teams may lawfully advertise within the current regulatory requirements, and in 2015 it began the process of developing those advertising standards into formal regulation. However, the Commission’s efforts have only been directed at advertising and have not included other issues related to team practice such as broker supervision of employees and agency relationships.

Over the past several years, the PA Association of Realtors (PAR) has been working on this issue with its members and local real estate associations. My legislation is based on the results of this effort, and requires that a team may only be established with permission of the broker who remains responsible for supervision; it must have a team administrator who is the principal point of contact between the team and the broker and any agreement between a broker and a consumer must identify whether services are being provided by a team and the names of each team member.

I believe my legislation is a reasonable and practical response to the concerns surrounding the operation of real estate teams, and it has the support of PAR.

Please consider joining me in this important legislation.



Introduced as HB1572