PRINTER'S NO. 1918
THE GENERAL ASSEMBLY OF PENNSYLVANIA
HOUSE BILL
No.
1697
Session of
2021
INTRODUCED BY DeLUCA, MILLARD, NEILSON AND SIMS, JUNE 24, 2021
REFERRED TO COMMITTEE ON PROFESSIONAL LICENSURE, JUNE 24, 2021
AN ACT
Providing for regulation of housing wholesalers.
The General Assembly of the Commonwealth of Pennsylvania
hereby enacts as follows:
Section 1. Short title.
This act shall be known and may be cited as the Residential
Housing Wholesalers Registration Act.
Section 2. Definitions.
The following words and phrases when used in this act shall
have the meanings given to them in this section unless the
context clearly indicates otherwise:
"Applicant." An individual applying for an initial license.
"Commission." The State Real Estate Commission established
under the act of February 19, 1980 (P.L.15, No.9), known as the
Real Estate Licensing and Registration Act.
"Homeowner." The record owner or equitable owner of a
residential property.
"License." The Residential Property Wholesaler License
established under section 3.
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"List." The Do-Not-Solicit List created under section 5.
"Renewal." A renewal of a license that has not lapsed or
expired.
"Residential property." Each property legally used or held
out for individuals to live in, whether the property is occupied
by the owners of the property, rented or vacant.
"Residential property wholesaler." A person or entity who is
in the business of purchasing or soliciting for purchase
residential properties not to use as the person or entity's
residence. The term does not include any of the following:
(1) A public official or employee who acts as a
residential property wholesaler in the course of the official
or employee's official duties.
(2) A person or entity who purchases residential
properties and substantially improves those properties for
the purpose of resale.
(3) Any of the following licensed professionals when
acting within the scope of a licensed practice area:
(i) An attorney licensed to practice law in this
Commonwealth.
(ii) A person licensed by the Pennsylvania Real
Estate Commission under the Real Estate Licensing and
Registration Act.
"Solicit." To advertise the accomplishments or abilities of
a residential property wholesaler, request that a homeowner list
the residential property owned by the homeowner for sale or
offer to purchase a homeowner's residential property through
mail, oral communication or electronic communication.
Section 3. License required.
(a) License required.--A person or entity may not act as a
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residential property wholesaler unless that person or entity
possesses a valid license.
(b) License issuance.--The following shall apply:
(1) Applications for licenses and renewals shall be
filed on forms developed and provided by the commission.
(2) Licenses and renewals shall be issued in accordance
with rules established by the commission.
(3) Licenses and renewals shall be valid for one year.
(4) All application and renewal forms must include:
(i) A nonrefundable application fee of $200.
(ii) Proof that the applicant possesses insurance,
in a type and amount as the commission shall require.
(iii) The name and address of an applicant or, if
the applicant is not a natural person, the name and
address of a responsible natural person.
(iv) Each Pennsylvania corporation, including a
limited liability corporation, in which the applicant has
an equity interest, regardless of whether the applicant
has a direct equity interest or the applicant's equity
interest is held through one or more tiers of a corporate
structure, including a parent-subsidiary structure.
(c) Criminal history record search required.--An applicant
may only be issued a license if, after a criminal history
records search of the applicant has been performed by the
commission, the commission has determined that the applicant has
not, within the past six years, been convicted of a crime of
fraud, dishonesty, breach of trust or deceit or has been
convicted for violating the act of March 17, 1978 (P.L.15,
No.9), known as the Agricultural Liming Materials Act.
(d) Changed information.--An applicant or licensee shall
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notify the commission, in writing, within 72 hours of any
changes in the information contained in or submitted with the
application.
Section 4. Disclosure required.
(a) Disclosures.--A licensee must provide a homeowner with a
disclosure at least three days before presenting an offer to
purchase a homeowner's residential property. The disclosure must
do all the following:
(1) Inform the homeowner of how to access resources that
assess the fair value of residential properties, including
any private real estate assessment tools as may be identified
by the commission by regulation.
(2) Inform the homeowner of the seller's ability to do
all the following:
(i) Hire a real estate agent.
(ii) Seek legal counsel.
(iii) Identify any other resources deemed
appropriate by the commission.
(b) Signature required.--The residential property wholesaler
shall retain copies of each disclosure signed by the homeowner
as proof of providing the disclosure to the homeowner.
Section 5. Do-Not-Solicit List.
(a) Creation.--The commission shall create and maintain a
public list of real property owners who have expressed a desire
to not be solicited to sell or rent the property owner's real
property in accordance with the following:
(1) This list shall be known as the "Do-Not-Solicit
List."
(2) A real property owner who appears on the list may
request in writing that the commission remove the real
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property owner's name from the Do-Not-Solicit List.
(3) The commission shall remove the real property
owner's name from the list within 30 days of the request.
(b) Inclusion on list.--The inclusion on the list of any
real property owner shall be deemed a desire not to sell or rent
the homeowner's real property and a desire not to be solicited.
Section 6. Unlawful actions.
(a) Solicitation.--It shall be unlawful for a licensee to
solicit a real property from a homeowner on the list.
(b) Statements.--A licensee or applicant may not, in the
course of soliciting residential property, do any of the
following:
(1) Knowingly make a material misrepresentation, a false
promise, untruthful advertisement or engage in any conduct
which demonstrates bad faith, dishonesty, untrustworthiness
or incompetency.
(2) Knowingly give false or misleading information when
completing a license application or when providing changes of
information to the commission.
(c) Refusal or revocation of license.--A history of
violation of the prohibited conduct listed in this section will
be cause for refusal or revocation of a license or renewal.
Section 7. Enforcement.
(a) Unlicensed residential property wholesalers.--An
agreement of sale entered into by a residential property
wholesaler who is unlicensed at the time of the solicitation may
be rescinded at any time prior to the transfer of the title to
the homeowner's property at the sole option of the homeowner. A
homeowner may bring a civil action in court against the
residential property wholesaler.
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(b) Other violations.--A violation of any other provision of
this act shall be considered a violation of the act of February
19, 1980 (P.L.15, No.9), known as the Real Estate Licensing and
Registration Act, and shall be subject to any penalty contained
therein.
Section 8. Inapplicability.
This act does not apply in cities of the first class.
Section 9. Effective date.
This act shall take effect in 60 days.
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