PRINTER'S NO. 1542
THE GENERAL ASSEMBLY OF PENNSYLVANIA
SENATE BILL
No.
1173
Session of
2024
INTRODUCED BY STEFANO, ROTHMAN, BOSCOLA, BAKER, FONTANA, MILLER,
BREWSTER, CULVER AND VOGEL, APRIL 22, 2024
REFERRED TO CONSUMER PROTECTION AND PROFESSIONAL LICENSURE,
APRIL 22, 2024
AN ACT
Amending the act of February 19, 1980 (P.L.15, No.9), entitled
"An act establishing the State Real Estate Commission and
providing for the licensing of real estate brokers and
salesmen," in definitions, further providing for definitions;
in application of the act and penalties, further providing
for exclusions; and, in duties of licensees, providing for
right to cancel sales agreements or sales contracts for
wholesale transactions.
The General Assembly of the Commonwealth of Pennsylvania
hereby enacts as follows:
Section 1. The definitions of "broker" and "salesperson" in
section 201 of the act of February 19, 1980 (P.L.15, No.9),
known as the Real Estate Licensing and Registration Act, are
amended and the section is amended by adding definitions to
read:
Section 201. Definitions.
The following words and phrases when used in this act shall
have, unless the context clearly indicates otherwise, the
meanings given to them in this section:
* * *
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
"Broker." Any of the following:
(1) Any person who, for another and for a fee,
commission or other valuable consideration:
[(1)] (i) negotiates with or aids any person in
locating or obtaining for purchase, lease or an
acquisition of interest in any real estate;
[(2)] (ii) negotiates the listing, sale, purchase,
exchange, lease, time share and similarly designated
interests, financing or option for any real estate;
[(3)] (iii) manages any real estate;
[(4)] (iv) represents himself to be a real estate
consultant, counsellor, agent or finder;
[(5)] (v) undertakes to promote the sale, exchange,
purchase or rental of real estate: Provided, however,
That this provision shall not include any person whose
main business is that of advertising, promotion or public
relations;
[(5.1] (vi) undertakes to perform a comparative
market analysis; or
[(6)] (vii) attempts to perform any of the above
acts.
(2) Any person who, whether for the person or for
another engages or attempts to engage in a wholesale
transaction.
* * *
"Residential property." Real property located within this
Commonwealth that consists of not less than one and not more
than four residential dwelling units.
"Salesperson." Any person employed by a licensed real estate
broker to perform comparative market analyses or to list for
20240SB1173PN1542 - 2 -
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
29
30
sale, sell or offer for sale, to buy or offer to buy or to
negotiate the purchase or sale or exchange of real estate or to
negotiate a loan on real estate or to lease or rent or offer to
lease, rent or place for rent any real estate or collect or
offer or attempt to collect rent for the use of real estate or
engage or attempt to engage in a wholesale transaction for or in
behalf of such real estate broker. No person employed by a
broker to perform duties other than those activities as defined
herein under "broker" shall be required to be licensed as a
salesperson.
* * *
"Wholesale transaction." The purchase of an equitable
interest or other interest in residential property with the
intent to assign, sell or otherwise transfer the interest for a
fee, commission or other valuable consideration without having
taken title as the owner of record of the interest.
Section 2. Section 304(1) of the act is amended to read:
Section 304. Exclusions.
Except as otherwise provided in this act, the provisions of
this act shall not apply to the following:
(1) An owner of real estate with respect to property
owned or leased by such owner. In the case of a partnership
or corporation, this exclusion shall not extend to more than
five of its partners or officers, respectively, nor to other
partnership or corporation personnel or employees. This
exclusion shall not apply to a wholesale transaction.
* * *
Section 3. The act is amended by adding a section to read:
Section 610. Right to cancel sales agreements or sales
contracts for wholesale transactions.
20240SB1173PN1542 - 3 -
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
29
30
(a) A consumer who is party to a wholesale transaction shall
have the right to cancel a sales agreement or sales contract
that contains the information required under subsection (e)
until midnight of the 30th day after the date when the consumer
executed the agreement or contract, or until conveyance,
whichever occurs first. A sales agreement or sales contract for
a wholesale transaction that does not contain the information
required under subsection (e) may be canceled at any time prior
to conveyance. The right of cancellation shall not be waivable.
(b) Notice of cancellation shall be given by certified
return receipt mail or by any other bona fide means of delivery,
including electronic delivery or personal delivery, provided
that the consumer obtains a receipt. A notice of cancellation
given by a bona fide means of delivery shall be effective on the
date postmarked or on the date of deposit of the notice with any
bona fide means of delivery.
(c) Within ten business days after the receipt of a notice
of cancellation, all payments of any kind made by the consumer
shall be refunded to the consumer and an acknowledgment that the
sales agreement or sales contract is void shall be sent to the
consumer. In the event of a cancellation under this section, any
promotional prizes, gifts and premiums issued to the consumer
shall remain the property of the consumer.
(d) A consumer who exercises the right of cancellation shall
not be liable for any damages as a result of the exercise of
that right.
(e) A sales agreement or sales contract for a wholesale
transaction shall prominently include the following information
which shall be disclosed in the manner and method that the
commission shall establish by regulation:
20240SB1173PN1542 - 4 -
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
29
30
(1) A statement that the agreement or contract is for a
wholesale transaction in which the licensee intends to
assign, sell or otherwise transfer the interest for a fee,
commission or other valuable consideration without having
taken title as the owner of record of the interest.
(2) A statement that the consumer has the right to
obtain an appraisal of the property from a real estate
appraiser certified under section 3 of the act of July 10,
1990 (P.L.404, No.98), known as the "Real Estate Appraisers
Certification Act," to consult with a licensee not affiliated
with the licensee's broker or to seek legal counsel before or
after entering into the agreement or contract.
(3) A statement that the consumer has the right to
cancel the agreement or contract until midnight of the 30th
day after the date when the consumer executed the agreement
or contract, or until conveyance, whichever occurs first, by
certified return receipt mail or by any other bona fide means
of delivery, including electronic delivery or personal
delivery, provided that the consumer obtains a receipt.
(4) A statement that within ten business days after the
receipt of a notice of cancellation, all payments of any kind
made by the consumer shall be refunded to the consumer.
Section 4. This act shall take effect in 180 days.
20240SB1173PN1542 - 5 -
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23