Consumer Notice:
THIS IS NOT A CONTRACT
Pennsylvania Law requires real estate brokers and
salespersons (licensees) to advise consumers who are seeking to sell or purchase
residential or commercial real estate or tenants who are seeking to lease
residential or commercial real estate where the licensee is working on behalf of
the tenant of the business relationships permitted by the Real Estate Licensing
and Registration Act.
This notice must be provided to the consumer at the first
contact where a substantive discussion about real estate occurs unless an oral
disclosure has been previously provided. If the oral disclosure was provided,
this notice must be provided at the first meeting or the first time a property
is shown to the consumer by the broker or salesperson.
Before you disclose any information to a licensee, be
advised that unless you select an agency relationship the licensee is NOT
REPRESENTING YOU. A business relationship of any kind will NOT be presumed but
must be established between the consumer and the licensee.
Any licensee who provides you with real estate services
owes you the following duties:
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Exercise reasonable professional skill and care which
meets the practice standards required by the Act.
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Deal honestly and in good faith.
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Present, in a reasonably practicable period of time,
all offers, counteroffers, notices, and communications to and from the parties
in writing. The duty to present written offers and counteroffers may be waived
if the waiver is in writing.
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Comply with Real Estate Seller Disclosure Act.
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Account for escrow and deposit funds.
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Disclose all conflicts of interest in a reasonably
practicable period of time.
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Provide assistance with document preparation and advise
the consumer regarding compliance with laws pertaining to real estate
transactions.
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Advise the consumer to seek expert advice on matters
about the transaction that are beyond the licensee’s expertise.
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Keep the consumer informed about the transaction and
the tasks to be completed.
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Disclose financial interest in a service, such as
financial, title transfer and preparation services, insurance, construction,
repair or inspection, at the time service is recommended or the first time the
licensee learns that the service will be used. A licensee may have the
following business relationships with the consumer:
Seller Agency:
Seller agency is a relationship where the licensee, upon
entering into a written agreement, works only for a seller/landlord.
Seller’s agents owe the additional duties of:
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Loyalty to the seller/landlord by acting in the
seller’s/landlord’s best interest.
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Confidentiality, except that a licensee has a
duty to reveal known material defects about the property.
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Making a continuous and good faith effort
to
find a buyer for the property, except while the property is subject to an
existing agreement.
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Disclosure to other parties in the transaction that the
licensee has been engaged as a seller’s agent. A seller’s agent may
compensate other brokers as subagents if the seller/landlord agrees in
writing. Subagents have the same duties and obligations as the seller’s agent.
Seller’s agents may also compensate buyer’s agents and transaction licensees
who do not have the same duties and obligations as seller’s agents. If you
enter into a written agreement, the licensees in the real estate company owe
you the additional duties identified above under seller agency. The exception
is designated agency. See the designated agency section in this notice for
more information.
Buyer Agency:
Buyer agency is a relationship where the licensee, upon
entering into a written agreement, works only for the buyer/tenant.
Buyer’s agents owe the additional duties of:
-
Loyalty to the buyer/tenant by acting in the
buyer’s/tenant’s best interest.
-
Confidentiality, except that a licensee is
required to disclose known material defects about the property.
-
Making a continuous and good faith effort to
find a property for the buyer/tenant, except while the buyer is subject to an
existing contract.
-
Disclosure to other parties in the transaction that the
licensee has been engaged as a buyer’s agent.
A buyer’s agent may be paid fees, which may include a
percentage of the purchase price, and, even if paid by the seller/landlord, will
represent the interests of the buyer/tenant. If you enter into a written
agreement, the licensees in the real estate company owe you the additional
duties identified above under buyer agency. The exception is designated agency.
See the designated agency section in this notice for more information.
Dual Agency:
Dual agency is a relationship where the licensee acts as
the agent for both the seller/landlord and the buyer/tenant in the same
transaction with the written consent of all parties. Dual agents owe the
additional duties of:
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Taking no action that is adverse or detrimental
to either party’s interest in the transaction.
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Making a
continuous and good faith effort
to find a buyer for the property and a
property for the buyer, unless either are subject to an existing contract,
unless otherwise agreed to in writing.
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Confidentiality, except that a licensee is
required to disclose known material defects about the property.
Designated Agency:
In designated agency, the employing broker may, with your
consent, designate one or more licensees from the real estate company to
represent you. Other licensees in the company may represent another party and
shall not be provided with any confidential information. The designated agent(s)
shall have the duties as listed above under seller agency and buyer agency. In
designated agency, the employing broker will be a dual agent and have the
additional duties of:
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Taking reasonable care to protect any confidential
information disclosed to the licensee.
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Taking responsibility to direct and supervise the
business activities of the licensees who represent the seller and buyer while
taking no action that is adverse or detrimental to either party’s interest in
the transaction. The designation may take place at the time that the parties
enter into a written agreement, but may occur at a later time. Regardless of
when the designation takes place, the employing broker is responsible for
ensuring that confidential information is not disclosed.
Transaction Licensee:
A transaction licensee is a broker or salesperson who
provides communication or document preparation services or performs other acts
for which a license is required WITHOUT being the agent or advocate for either
the seller/landlord or the buyer/ tenant. Upon signing a written agreement or
disclosure statement, a transaction licensee has the additional duty of limited
confidentiality in that the following information may not be disclosed:
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The seller/landlord will accept a price less than the
asking/listing price.
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The buyer/tenant will pay a price greater than the
price submitted in a written offer.
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The seller/landlord or buyer/tenant will agree to
financing terms other than those offered.
Other information deemed confidential by the consumer shall
not be provided to the transaction licensee.
OTHER INFORMATION ABOUT REAL ESTATE TRANSACTIONS
The following are negotiable and shall be addressed in an
agreement/disclosure statement with the licensee:
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The duration of the employment, listing agreement or
contract.
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The fees or commissions.
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The scope of the activities or practices.
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The broker’s cooperation with other brokers, including
the sharing of fees.
Any sales agreement must contain the zoning classification
of a property except in cases where the property is zoned solely or primarily to
permit single family dwellings. A Real Estate Recovery Fund exists to reimburse
any person who has obtained a final civil judgment against a Pennsylvania real
estate licensee owing to fraud, misrepresentation, or deceit in a real estate
transaction and who has been unable to collect the judgment after exhausting all
legal and equitable remedies. For complete details about the Fund, call (717)
783-3658.
Adopted by the State Real Estate Commission at 49 Pa. Code §35.336
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