PRINTER'S NO. 1461
No. 1279 Session of 1987
INTRODUCED BY RITTER, MURPHY, FLICK, TRELLO, SWEET, KUKOVICH,
CARN, ACOSTA, JOHNSON, LaGROTTA, HARPER, McHALE, MELIO,
CORRIGAN, MORRIS, PRESTON AND FREEMAN, MAY 4, 1987
REFERRED TO COMMITTEE ON PROFESSIONAL LICENSURE, MAY 4, 1987
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 broker's disclosures and
5 rights of buyers.
6 The General Assembly of the Commonwealth of Pennsylvania
7 hereby enacts as follows:
8 Section 1. Sections 606, 607 and 608 of the act of February
9 19, 1980 (P.L.15, No.9), known as the Real Estate Licensing and
10 Registration Act, added March 29, 1984 (P.L.162, No.32), are
11 amended to read:
12 Section 606. Broker's disclosure to seller.
13 In any listing agreement or contract of agency, the broker
14 shall make the following disclosures to any seller of real
15 property:
16 (1) A statement that the broker's commission and the
17 time period of the listing [are negotiable] have been
18 determined as a result of negotiations between the broker and
19 the seller.
1 (2) A statement describing the purpose of the Real
2 Estate Recovery Fund established under section 801 and the
3 telephone number of the commission at which the seller can
4 receive further information about the fund.
5 Section 607. Broker's disclosure to buyer.
6 In any sales agreement or sales contract, a broker shall make
7 the following disclosures to any prospective buyer of real
8 property:
9 (1) A statement [that the broker is the agent of the
10 seller, not the buyer] as to whom the broker represents.
11 (2) A statement describing the purpose of the Real
12 Estate Recovery Fund established under section 801 and the
13 telephone number of the commission at which the purchaser can
14 receive further information about the fund.
15 (3) A statement of the zoning classification of the
16 property except for single-family dwellings. Failure of any
17 sales agreement or sales contract to contain a statement of
18 the zoning classification of the property shall render the
19 sales agreement or sales contract [null and void and]
20 voidable at the option of the buyer and if voided any
21 deposits tendered by the buyer shall be returned to the buyer
22 without any requirement for any court action.
23 Section 608. Information to be given at initial interview.
24 The commission shall establish rules or regulations which
25 shall set forth the manner and method of disclosure of
26 information to the prospective buyer or seller during the
27 initial interview. Such disclosure shall include, but shall not
28 be limited to:
29 (1) A statement [that the broker is the agent of the
30 seller] as to whom the broker represents.
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1 (2) The purpose of the Real Estate Recovery Fund and the
2 telephone number of the commission at which further
3 information about the fund may be obtained.
4 (3) A statement that the duration of the listing
5 agreement or contract and the broker's commission are
6 negotiable.
7 (4) A statement that any sales agreement except for a
8 single-family dwelling must contain the zoning classification
9 of a property.
10 Section 2. This act shall take effect immediately.
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