|Posted:||June 11, 2021 03:53 PM|
|From:||Representative Anthony M. DeLuca|
|To:||All House members|
|Subject:||Protecting Homeowners by Requiring Registration of Housing Wholesalers|
“We Buy Houses” signs are becoming more and more prominent in neighborhoods across Pennsylvania. These signs are often from housing wholesalers, who can take advantage of vulnerable homeowners. These wholesalers are not licensed by the Commonwealth as real estate professionals.
The wholesaler works by essentially contracting with a seller, and then assigning the contract to a buyer prior to the expiration of the contract. For example, the wholesaler contracts with a seller for $100,000, then assigns the contract to a buyer for $150,000. However, the $50,000 profit is not necessarily passed on to the homeowner, meaning the homeowner is often on the losing end of these deals.
Philadelphia recently took action to curb the potential abuses of this industry. The Philadelphia ordinance requires wholesalers to become licensed, to not engage in deceptive conduct, and provide sellers with resources to accurately assess the value of their home. The Philadelphia ordinance also created a Do Not Solicit list to protect homeowners who do not want to sell their home.
I believe we should protect homeowners in Pennsylvania and ensure that they receive fair value for their homes. Accordingly, I will be introducing legislation based off the Philadelphia ordinance. I hope you will join me in protecting homeowners by supporting this legislation.
Introduced as HB1697