Pennsylvania Consumer
Notice
Consumer Notice
This Is Not a Contract.
Pennsylvania Law requires
real estate brokers and salespersons (licensees) to advise consumers 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.
Before you disclose any
information to a licensee, be advised that unless you select an agency
relationship by signing a written agreement providing for such a
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:
- Exercise reasonable
professional skill and care which meets the practice standards
required by the Act.
- Deal honestly and
in good faith.
- Present, in a
timely manner, 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.
- Comply with Real
Estate Seller Disclosure Act.
- Account for escrow
and deposit funds.
- Disclose all
conflicts of interest in a timely manner.
- Provide assistance
with document preparation and advise the consumer regarding
compliance with laws pertaining to real estate transactions.
- Advise the consumer
to seek expert advice on matters about the transactions that are
beyond the licensee's expertise.
- Keep the consumer
informed about the transaction and the tasks to be completed.
- Disclosure
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:
- Loyalty to the
seller/landlord by acting in the seller's/landlord's best interest.
- Confidentiality,
expect that a licensee has a duty to reveal known material defects
about the property.
- Making a continuous
and good faith effort to find a buyer for the property, except while
the property is subject to an existing agreement.
- 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 agent may also compensate buyer's agent and transaction
licensees who do not have the same duties and obligation 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/tenant 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:
- Taking no action
that is adverse or detrimental to either party's interest in the
transaction.
- 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.
- 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 to 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: Taking reasonable care to protect any confidential
information disclosed to the licensee. 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:
- The seller/landlord
will accept a price less than the asking/list price.
- The buyer/tenant
will pay a price greater that the price submitted in a written
offer.
- 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 Transaction:
The following are negotiable
and shall be addressed in an agreement/disclosure statement with the
licensee:
- The duration of the
employment, listing agreement or contract.
- The fees or
commissions.
- The scope of the
actives or practices.
- 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 judgement
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 judgement after exhausting all legal and
equitable remedies. For complete details about the Fund, call
(717)783-3658.
I have received, have read, and understand the
terms set forth in the above Consumer Notice.
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