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 timely manner.
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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:
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Loyalty to the buyer/tenant by acting in the buyer’s/tenant’s best
interest.
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Confidentiality, except that a licensee is required to disclose known material
defects about the property.
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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.
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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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Unless otherwise agreed to in writing, 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 and existing contract.
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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 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 judgment after exhausting all legal and equitable remedies. For complete
details about the Fund, call (717) 783-3658.
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ACKNOWLEDGMENT |
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I acknowledge that I
have received this disclosure.
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Date: _________
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Print (Consumer) |
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Print (Consumer) |
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___________________________________
Signed (Consumer) |
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Signed (Consumer)
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____________________________________
Address (Optional)
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____________________________________
Address (Optional)
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____________________________________
Phone Number (Optional) |
____________________________________
Phone Number (Optional) |
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______________________________________________________________________________________________________
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I certify that I
have provided this document to the above consumer during the initial interview.
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Date: _________
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______________________________________________________________________________
Print (Licensee) |
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______________________________________________________________________________
Signed (Licensee) |
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Adopted
by the State Real Estate Commission at 49 Pa. Code § 35.336. |
