Adopted by the State Real Estate Commission at 49 Pa. Code 35.336.
THIS IS NOT A CONTRACT
In an effort to enable consumers of real estate services to make informed decisions about the business relationships they may have with real estate brokers and salespersons (licensees), the Real Estate Licensing and Registration Act (RELRA) requires that consumers be provided with this notice.
Licensees may enter into the following agency relationships with consumers:
As a seller agent the licensee's company works exclusively for the seller/landlord and must act in the seller's/landlord's best interest, including making a continuous and good faith effort to find a buyer/tenant except while property is subject to an existing agreement. All confidential information relayed by seller/landlord must be kept confidential except that a licensee must reveal known material defects about property. A subagent has the sane duties and obligations as the seller agent.
As a buyer agent, the licensee and the licensee's company work exclusively for the buyer/tenant even if paid by the seller/landlord. The buyer agent must act in the best interest, including making a continuous and good faith effort to find property for the buyer/tenant, except while buyer is subject to an existing contract, and must keep all confidential information, other than known defects about the property confidential.
As a dual agent, the licensee works for both the seller/landlord and the buyer/tenant. A dual agent may not take any action that is adverse or detrimental to either part but must disclose known material defects about the property. A licensee must have written consent of both parties before acting as a dual agent.
As a designated agent, the broker of the selected real estate company designates certain licensees within the company to act exclusively as the seller/landlord agent and other licensees within the company to act exclusively as the buyer/tenant agent in a transaction. Because the broker supervises all licensees,, the broker automatically serves as a dual agent. Each of the designated licensees are required to act in the applicable capacity explained previously. Additionally, the broker has the duty to take reasonable steps to assure that confidential information is not disclosed within the company.
In addition, a licensee may serve as a Transaction Licensee.
A transaction licensee provides real estate services without having any agency relationship with consumer. Although a transaction licensee has no duty of loyalty or confidentiality, transaction licensee is prohibited from disclosing that:
The seller will accept a price less than the asking/listing price.
The buyer will pay a price greater than the submitted in written offer, and
The seller buyer will agree to financing terms other than those offered.
Like licensees in agency relationships selected, all licensees must disclose known material defects about the property.
Regardless of the business relationship, all licensees owe consumer the duty to:
Exercise reasonable professional skill and care which meets the practice standards required by the RELRA.
Deal honestly and in good faith.
Present, as soon as practicable, all written offers, counteroffers, notices and communications to and from the parties. This duty mat be waived by the seller's property is under contract and waiver in writing.
Comply with the Real Estate Seller Disclosure Law.
Account for escrow and deposit funds.
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 abouy the transaction that are beyond the licensee's expertise.
Keep the consumer informed about the transaction and the tasks to be completed.
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.
The following contractual terms ar negotiable between the licensee and the consumer and must be addressed in an agreement/disclosure statement:
The duration of the licensee's employment, listing agreement or contract.
The licensee's fees or commission.
The scope of the licensee's activities or practices.
The broker's cooperation with and sharing of fees with other brokers.
All sales agreements must contain the property's zoning classifications except where the property is zoned solely or primarily to permit single family dwellings.
The 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.
Before you disclose any financial information to a licensee, be advised that unless you select a business relationship by signing a written agreement, the licensee is NOT representing you. A business relationship is NOT presumed.