Please wait while the document is loaded.

A01527
THE GENERAL ASSEMBLY OF PENNSYLVANIA
HOUSE BILL
No.
863
Session of
2017
INTRODUCED BY ROTHMAN, KINSEY, SANTORA, DAVIS, R. BROWN,
A. HARRIS, MARSICO, WATSON, STEPHENS, KORTZ, QUIGLEY, BAKER,
DRISCOLL, CARROLL, CUTLER, ROE, GODSHALL, PHILLIPS-HILL,
LONGIETTI, MASSER, SAYLOR, KNOWLES, HELM, BRIGGS, DEASY,
IRVIN, RYAN, TOEPEL, NEILSON AND MARKOSEK, MARCH 16, 2017
REFERRED TO COMMITTEE ON PROFESSIONAL LICENSURE, MARCH 16, 2017
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 qualifications and applications for licenses and
registration certificates, further providing for
qualifications for license; in duties of licensees, further
providing for comparative market analysis disclosure and
providing for broker price opinion; in Real Estate Recovery
Fund, further providing for establishment of the fund; and
making a related repeal related repeals.
The General Assembly of the Commonwealth of Pennsylvania
hereby enacts as follows:
Section 1. The definition of "comparative market analysis"
in section 201 of the act of February 19, 1980 (P.L.15, No.9),
known as the Real Estate Licensing and Registration Act, is
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
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
meanings given to them in this section:
* * *
"Broker price opinion." An estimate prepared by a broker,
associate broker or salesperson that details the probable
selling price of a particular parcel of real property and
provides a varying level of detail about the property's
condition, market and neighborhood, and information on
comparable sales, but does not include an automated valuation
model as defined in section 1125(d) of the Financial
Institutions Reform, Recovery, and Enforcement Act of 1989
(Public Law 101-73, 12 U.S.C. 3354(d)).
* * *
"Comparative market analysis." [A written analysis, opinion
or conclusion by a contracted buyer's agent, transactional
licensee or an actual or potential seller's agent relating to
the probable sale price of a specified piece of real estate in
an identified real estate market at a specified time, offered
either for the purpose of determining the asking/offering price
for the property by a specific actual or potential consumer or
for the purpose of securing a listing agreement with a seller.]
A written analysis, opinion or conclusion by a broker, associate
broker or salesperson relating to the probable sale or rental
price of a specified parcel of real property in an identified
real estate market at a specified time, which is prepared for
any of the following:
(1) An existing or potential seller, buyer, lessor or
lessee of a the parcel of real property.
(2) A person making decisions or performing due
diligence related to the potential listing, offering, sale,
option, lease or acquisition price of a the parcel of real
A01527 - 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
property.
* * *
"Short sale." A sale of a house in which the proceeds fall
short of the amount the owner owes on the mortgage. real
property in which the seller's proceeds are less than the amount
required to pay off all liens secured by the property.
* * *
Section 2. Section 521 of the act is amended and the section
is amended by adding a paragraph to read:
Section 521. Qualifications for license.
Each applicant shall as a condition precedent to obtaining a
license, take the salesperson license examination and score a
passing grade. Prior to taking the examination:
(1) The applicant shall be at least 18 years of age.
(2) [The] The following apply:
(i) Except as provided under subparagraph (ii), the
applicant shall have completed [60] 75 hours in real
estate instruction in areas of study prescribed by the
rules of the commission, which rules shall require
instruction in the areas of fair housing and professional
ethics.
(ii) An applicant shall be required to complete 60
hours of real estate instruction as prescribed under
subparagraph (i) if the applicant has completed a portion
of the hours before the effective date of this
subparagraph. An applicant who has not completed any of
the required hours of real estate instruction before the
effective date of this subparagraph shall complete 75
hours of real estate instruction within five years of
taking the salesperson license examination.
A01527 - 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
(3) The applicant shall be a high school graduate or
shall produce proof satisfactory to the commission of an
education equivalent to high school preparation. This
paragraph shall not apply to a person licensed before the
effective date of this paragraph.
Section 3. Section 608.3 of the act is amended to read:
Section 608.3. Comparative market analysis disclosure.
(a) A comparative market analysis must contain the following
statement printed conspicuously and without change on the first
page:
This analysis has not been performed in accordance with
the Uniform Standards of Professional Appraisal Practice
which require valuers to act as unbiased, disinterested
third parties with impartiality, objectivity and
independence and without accommodation of personal
interest. It is not to be construed as an appraisal and
may not be used as such for any purpose.
(b) A comparative market analysis prepared in accordance
with this act shall not be deemed to be an appraisal within the
scope of the act of July 10, 1990 (P.L.404, No.98), known as the
"Real Estate Appraisers Certification Act."
(c) Any fees charged for a comparative market analysis shall
be paid to the broker.
Section 4. The act is amended by adding a section to read:
Section 608.6. Broker price opinion.
(a) A broker price opinion must contain the following
statement displayed conspicuously and without change:
This analysis has not been prepared in accordance with
the Uniform Standards of Professional Appraisal Practice
which require valuers to act as unbiased, disinterested
A01527 - 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
third parties with impartiality, objectivity and
independence and without accommodation of personal
interest. It is not to be construed as an appraisal and
may not be used as such for any purpose.
(b) A broker price opinion prepared in accordance with this
act shall:
(1) Not be deemed to be an appraisal within the scope of
the act of July 10, 1990 (P.L.404, No.98), known as the "Real
Estate Appraisers Certification Act," or a valuation of real
estate for purposes of section 8(b)(1) of the act of February
2, 2012 (P.L.30, No.4), known as the "Appraisal Management
Company Registration Act."
(2) Be deemed to be a comparative market analysis for
the purposes of the "Appraisal Management Company
Registration Act."
(c) A broker price opinion must be signed manually or
electronically by the person who prepared it and must contain
all of the following information:
(1) An identification of the intended users and intended
uses of the broker price opinion, if known.
(2) A brief description of the subject property and the
property interest to be priced.
(3) The basis for the conclusion as to the price,
including applicable market data or capitalization
computation.
(4) Any assumption or limiting condition.
(5) Any existing or contemplated interest of the
licensee who prepared the broker price opinion.
(6) The effective date of the broker price opinion and
the date that the document is signed.
A01527 - 5 -
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
(7) The real estate license number of the preparer.
(d) Any fees charged for a broker price opinion shall be
paid to the broker.
(e) A broker price opinion may be prepared by a broker,
associate broker or salesperson only for use in conjunction
with:
(1) a property owned by a lender after an unsuccessful
sale at a foreclosure auction;
(2) a modification of a first or junior mortgage or
equity line of credit;
(3) a short sale of a property; or
(4) an evaluation or monitoring of a portfolio of
properties ; or
(5) the relocation of an individual who is the owner of
a property or a prospective purchaser of a property. .
(f) A broker price opinion may not be used prepared by a
broker, associate broker or salesperson for use :
(1) as the basis to determine the value of a parcel of
real property for a mortgage loan origination, including a
first or junior mortgage, refinancing or equity line of
credit; or
(2) in connection with:
(i) an eminent domain proceeding;
(ii) a Federal, State or local tax appeal;
(iii) a bankruptcy or insolvency proceeding;
(iv) an action or proceeding involving divorce or
equitable distribution of property; or
(v) any other action or proceeding before a court of
record . ; or
(vi) the distribution of a decedent's estate.
A01527 - 6 -
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
(g) The provisions of this section shall not preclude the
preparation of a broker price opinion to be used in conjunction
with or in addition to an appraisal.
(h) A registered appraisal management company may recruit,
engage and negotiate fees with a broker to prepare broker price
opinions and may receive orders for and submit broker price
opinions to clients.
(i) A broker, associate broker or salesperson may not
prepare a broker price opinion, and a broker or associate broker
may not sign a broker price opinion under subsection (j), unless
the broker, associate broker or salesperson:
(1) has satisfied the requirements prescribed by the
rules of the commission to obtain education in the
preparation of broker price opinions; and
(2) has completed at least three hours of continuing
education during the current or immediately preceding
two-year license period in broker price opinion topics
prescribed by the rules of the commission.
(j) In addition to the requirements under subsection (i), a
salesperson may not prepare a broker price opinion unless the
salesperson has held an active license for the three years
immediately preceding the effective date of the broker price
opinion. A broker price opinion prepared by a salesperson must
be signed by the broker or an associate broker designated by the
broker in addition to the salesperson.
(k) In order to facilitate the prompt implementation of this
section, regulations promulgated by the commission shall be
deemed temporary regulations which shall expire no later than
three years following the effective date of this section. The
commission may promulgate temporary regulations which shall not
A01527 - 7 -
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
be subject to:
(1) Sections 201, 202 and 203 of the act of July 31,
1968 (P.L.769, No.240), referred to as the Commonwealth
Documents Law.
(2) The act of June 25, 1982 (P.L.633, No.181), known as
the "Regulatory Review Act."
(l) The authority provided to the commission to adopt
temporary regulations under subsection (k) shall expire three
years from the effective date of this section. Regulations
adopted after that date shall be promulgated as provided by law.
Section 5. Section 801(b) of the act is amended to read:
Section 801. Establishment of the fund.
* * *
(b) The Real Estate Recovery Fund shall not apply to the
following:
(1) The sale of, or the offer to sell, a campground
membership or to a campground membership salesperson.
(2) The preparation or issuance of a broker price
opinion.
Section 5 6. Repeals are as follows:
(1) The General Assembly declares that the repeal under
paragraph (2) is paragraphs (2) and (3) are necessary to
effectuate this act.
(2) The act of July 10, 1990 (P.L.404, No.98), known as
the Real Estate Appraisers Certification Act, is repealed
insofar as it is inconsistent with this act.
(3) The act of February 2, 2012 (P.L.30, No.4), known as
the Appraisal Management Company Registration Act, is
repealed insofar as it is inconsistent with this act.
Section 6 7. This act shall take effect in 60 days.
A01527 - 8 -
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