[32 Pa.B. 1644]
[Continued from previous Web Page]
Subchapter E. STANDARDS OF CONDUCT AND PRACTICE
GENERAL ETHICAL RESPONSIBILITIES § 35.281. Putting contracts, commitments and agreements in writing.
(a) All contracts, commitments and agreements between a broker, or a licensee employed by the broker, and a principal or a consumer who is required to pay a fee, commission or other valuable consideration shall be in writing and contain the information specified in § 35.331 (relating to written agreements generally).
(b) The following are exceptions to subsection (a):
(1) Open listing agreements or nonexclusive buyer agency agreements may be oral if the seller/buyer or landlord/tenant is provided with a written memorandum stating the terms of the agreement.
(2) Transaction licensees or subagents cooperating with listing brokers are not required to obtain a written agreement from the seller/landlord.
(3) Transaction licensees or subagents who provide services to the buyer/tenant but are paid by the seller/landlord or listing broker shall provide, and have signed, a written disclosure statement describing the nature of the services to be performed and containing the information required by section 608 of the act (63 P. S. § 455.608).
(c) A licensee may perform services before an agreement is signed, but the licensee is not entitled to recover a fee, commission or other valuable consideration in the absence of a signed agreement.
§ 35.283. Disclosure of interest.
(a) A licensee may not participate in a real estate transaction involving property in which he has an ownership interest unless he first discloses his interest in writing to all parties concerned.
(b) A licensee may not represent, or purport to represent, more than one party to a real estate transaction without the written consent of all parties concerned.
(c) A broker who manages rental property may not accept a commission, rebate or profit on expenditures made for the lessor without the lessor's written consent.
(d) A licensee who provides financial services, title transfer and preparation, insurance, construction, repair or inspection services, may not require a consumer to use any of these services.
(e) If the consumer chooses to use any of the services in subsection (d), the licensee shall provide the consumer with a written disclosure of any financial interest, including, a referral fee or commission, that the licensee has in the service. This disclosure shall be made at the time the licensee first advises the consumer that an ancillary service is available or when the licensee first learns that the consumer will be using the service.
(f) A licensee has a continuing obligation to disclose to a principal any conflict of interest in a reasonably practicable period of time after the licensee learns or should have learned of the conflict of interest.
§ 35.284. Disclosures of business relationships.
(a) Disclosure to consumers seeking to sell or purchase residential or commercial real estate.
(1) A licensee shall provide the disclosure summary in § 35.336 (relating to disclosure summary for the purchase or sale of residential or commercial real estate or for the lease of residential or commercial real estate when the licensee is working on behalf of the tenant) to consumers seeking to purchase or sell real estate at the initial interview if the interview occurs in person.
(2) If the initial interview does not occur in person, the licensee shall provide the oral disclosure in § 35.339 (relating to the oral disclosure) at the initial interview and the written disclosure statement in § 35.336 no later than the earlier of:
(i) The first meeting that the licensee has in person with the consumer after the initial interview.
(ii) The time the licensee or any person working with the licensee first shows a property to the consumer.
(b) Disclosure to tenants seeking to lease residential or commercial real estate.
(1) A licensee who is working on behalf of the tenant shall provide the disclosure summary in § 35.336 as required in subsection (a).
(2) A licensee who is working on behalf of the owner shall provide the disclosure summary in § 35.337 (relating to disclosure summary for the lease of residential or commercial real estate when the licensee is working on behalf of the owner) to tenants seeking to lease residential or commercial property at the initial interview.
(c) Disclosure to consumers seeking to sell time shares. A licensee shall provide the disclosure summary in § 35.338 (relating to disclosure summary for time-share estates) to consumers seeking to purchase time-share estates at the initial interview.
(d) Signed disclosure. A licensee shall provide a copy of the signed disclosure to the consumers referenced in subsections (a)--(c) and shall retain the signed acknowledgment under § 35.286 (relating to retention and production of records). If a consumer refuses to sign the acknowledgment, the refusal shall be noted on the acknowledgment.
§ 35.286. Retention and production of records.
(a) Retention. A broker or cemetery broker shall retain records pertaining to a real estate transaction for at least 3 years following consummation except for the following which shall be retained for 6 months:
(1) The acknowledgement portion of the consumer notice applicable to the sale or purchase of real estate in § 35.336 (relating to disclosure summary for the purchase or sale of residential or commercial real estate or the lease of residential or commercial real estate or lease of residential or commercial real estate when the licensee is working on behalf of the tenant) when there is not a real estate transaction.
(2) The acknowledgement portion of the consumer notice applicable to time shares in § 35.338 (relating to disclosure summary for time-share estates).
(3) The acknowledgement portion of the consumer notice applicable to leases in § 35.336 and § 35.337 (relating to disclosure summary for the lease of residential or commercial real estate when the licensee is working on behalf of the owner).
(4) The written disclosure statement establishing a subagent or transaction licensee relationship required by § 35.281(b)(3) (relating to putting contracts, commitments and agreements in writing).
(b) Production of documents.
(1) A broker or cemetery broker shall produce the records required in subsection (a) for examination by the Commission or its authorized representatives upon written request or pursuant to an office inspection under § 35.246 (relating to inspection of office).
(2) A corporation, partnership or association that holds a broker's or cemetery broker's license shall produce its corporate, partnership or association records for examination by the Commission or its authorized representatives upon written request or pursuant to an office inspection under § 35.246.
§ 35.287. Supervised property management assistance by salespersons.
A salesperson may assist in property management if the salesperson's work is supervised and controlled by the employing broker. The salesperson may not independently negotiate the terms of a lease nor execute a lease on behalf of the lessor.
§ 35.292. Duties of licensees generally.
(a) The following duties are owed to all consumers of real estate services and may not be waived:
(1) Exercise reasonable professional skill and care.
(2) Deal honestly and in good faith.
(3) Present, in a reasonably practicable period of time, all offers, counteroffers, notices and communications to and from the parties in writing, unless the property is subject to an existing contract and the seller/landlord has agreed in a written waiver.
(4) Comply with the Real Estate Seller Disclosure Act (68 P. S. §§ 1021--1036).
(5) Account for escrow and deposits funds as required by section 604(a)(5) of the act (63 P. S. § 455.604(a)(5)) and §§ 35.321--35.328 (relating to escrow requirements).
(6) Provide consumers with the information in section 608 of the act (63 P. S. § 455.608) at the initial interview.
(7) Disclose, in a reasonably practicable period of time, all conflicts of interest and financial interests as required in § 35.283 (relating to disclosure of interest).
(8) Advise the consumer to seek expert advice on matters about the transaction that are beyond the licensee's expertise.
(9) Ensure that all services are provided in a reasonable, professional and competent manner.
(10) Keep the consumer informed about the transaction and the tasks to be completed.
(11) Provide assistance with document preparation.
(12) Advise the consumer about compliance with laws pertaining to real estate transactions without rendering legal advice.
(b) A licensee is not required to conduct an independent inspection of the property.
(c) A licensee is not required to independently verify the accuracy or completeness of any representation made by the consumer to a transaction which the licensee reasonably believes to be accurate and reliable.
(d) A licensee is not liable for the acts of a consumer unless the consumer is acting at the express direction of the licensee or as a result of a representation by a licensee reasonably relied on by the consumer.
PERMITTED RELATIONSHIPS § 35.311. Generally.
(a) A licensee and a consumer may enter into the relationship specified in sections 606.2--606.4 and 606.6 of the act (63 P.S. §§ 455.606--455.606d and 455.606f).
(b) A broker may not extend or delegate the broker's agency relationship without the written consent of the principal.
(c) Compensation paid by a broker to another broker who assists in the marketing and sale/lease of a consumer's property does not create an agency relationship between the consumer and that other broker.
(d) A licensee in an agency relationship may not knowingly, during or following the termination of an agency relationship, reveal or use confidential information of the principal, except when one or more of the following apply:
(1) The principal consented to the disclosure.
(2) The information is disclosed to another licensee or third party acting solely on behalf of the principal.
(3) The information is required to be disclosed under subpoena or court order.
(4) The disclosure is necessary to prevent the principal from committing a crime.
(5) The information is used by the licensee to defend in a legal proceeding against an accusation of wrongdoing.
§ 35.312. Duties of seller's agent.
(a) In addition to the duties required in § 35.292 (relating to duties of licensees generally), a seller's agent owes the additional duties of:
(1) Loyalty to the seller/landlord by acting in the seller's/landlord's best interest.
(2) Confidentiality, except that a licensee has a duty to reveal known material defects about the property.
(3) Making a continuous and good faith effort to find a buyer/tenant for the property except when the property is subject to an existing agreement of sale/lease.
(4) Disclosure to other parties in the transaction that the licensee has been engaged as a seller's agent.
(b) A licensee does not breach a duty to a seller/landlord by showing alternative properties to a prospective buyer/tenant or listing competing properties.
(c) A seller's agent may compensate other brokers as subagents if the seller/landlord agrees in writing. Subagents have the same duties and obligations to the seller/landlord as the seller's agent.
(d) A seller's agent may also compensate a buyer's agent and a transaction licensee who do not have the same duties and obligations to the seller/landlord as the seller's agent.
(e) Upon entering into a written agreement with the seller/landlord, each licensee employed by the broker will act as a seller's agent unless a licensee has been named, or is thereafter named, a designated agent under § 35.315 (relating to designated agency).
§ 35.313. Duties of buyer's agent.
(a) In addition to the duties required in § 35.292 (relating to duties of licensees generally), a buyer's agent owes the additional duties of:
(1) Loyalty to the buyer/tenant by acting in the buyer's/tenant's best interest.
(2) Confidentiality.
(3) Making a continuous and good faith effort to find a property for the buyer/tenant except when the buyer/tenant is subject to an existing contract for sale/lease.
(4) Disclosure to other parties in the transaction that the licensee has been engaged as a buyer's agent.
(b) A licensee does not breach a duty to a buyer/tenant by showing a property the buyer/tenant is interested in to other buyer/tenants.
(c) A buyer's agent represents the interests of the buyer/tenant even if paid by the seller/landlord.
(d) Upon entering into a written agreement with the buyer/tenant, each licensee employed by the broker will act as a buyer's agent unless a licensee has been named, or is thereafter named, a designated agent under § 35.315 (relating to duties of designated agency).
§ 35.314. Duties of dual agent.
(a) A licensee may act as a dual agent if both parties consent in writing.
(b) In addition to the duties required in § 35.292 (relating to duties of licensees generally), a dual agent owes the additional duties of:
(1) Taking no action that is adverse or detrimental to either party's interest in the transaction.
(2) Unless otherwise agreed in writing, making a continuous and good faith effort to find a buyer/tenant for the property and a property for the buyer/tenant except when the buyer/tenant or seller/landlord is subject to an existing contract.
(3) Confidentiality, except that a licensee is required to disclose known material defects about the property.
(c) A dual agent does not breach a duty to the seller/landlord by showing properties not owned by the seller/landlord to a prospective buyer/tenant or listing competing properties for sale/lease.
(d) A dual agent does not breach a duty to a buyer/tenant by showing a property the buyer/tenant is interested in to other prospective buyer/tenants.
§ 35.315. Duties of designated agent.
(a) A broker, with the written consent of the principal, may designate one or more licensees to act exclusively as the agent of the seller/landlord, and designate one or more licensees to act exclusively as the agent of the buyer/tenant in the same transaction.
(b) Designation may take place at any time. If designation takes place after the initial designation or after a written agreement has been entered into, the broker shall:
(1) Obtain the principal's consent, in writing, to the newly designated licensee.
(2) Obtain, when applicable, the principal's agreement to renounce any previous agency relationship with the other licensees employed by the broker.
(c) Regardless of when the designation takes place, the broker and the designated agents shall use reasonable care to ensure that confidential information is not disclosed or used.
(d) The licensees employed by the broker who are not designated have no agency relationship with either party in the transaction.
(e) Each licensee employed by the same broker who is a designated agent in the same transaction, owes the following additional duties, in addition to those required in § 35.292 (relating to duties of licensees generally):
(1) Loyalty to the principal with whom the designated agent is acting by working in that principal's best interest.
(2) Make a continuous and good faith effort to find a buyer/tenant for a principal who is a seller/landlord or to find a property for a principal who is the buyer/tenant except where the seller/landlord is subject to an existing contract for sale or lease or the buyer/tenant is subject to an existing contract to purchase or lease.
(3) Disclose to the principal prior to writing or presenting an offer to purchase that the other party to the transaction is represented by a designated agent also employed by the broker.
(4) Confirm that the broker is a dual agent in the transaction.
(f) In the transaction specified in subsection (e), the employing broker, as a dual agent, has the additional duties, in addition to those specified in § 35.292 and § 35.314 (relating to duties of dual agents), of:
(1) Taking reasonable care to protect any confidential information that has been disclosed to the designated licensees.
(2) Taking responsibility to direct and supervise the business activities of the designated licensees while taking no action that is adverse or detrimental to either party's interest in the transaction.
§ 35.316. Duties of transaction licensee.
In addition to the duties required in § 35.292 (relating to duties of licensees generally), a transaction licensee shall advise the consumer that the licensee:
(1) Is not acting as an agent or advocate for the consumer and should not be provided with confidential information.
(2) Owes the additional duty of limited confidentiality in that the following information may not be disclosed:
(i) The seller/landlord will accept a price less than the asking/listing price.
(ii) The buyer/tenant will pay a price greater than the price submitted in a written offer.
(iii) The seller/landlord or buyer/tenant will agree to financing terms other than those offered.
REAL ESTATE DOCUMENTS § 35.331. Written agreements generally.
(a) A written agreement between a broker and a principal or between a broker and a consumer whereby the consumer is or may be committed to pay a fee, commission or other valuable consideration shall contain the following:
(1) Notification that a Real Estate Recovery Fund exists to reimburse a person who has obtained a final civil judgment against a Commonwealth 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 legal and equitable remedies. Details about the Fund may be obtained by calling the Commission at (717) 783-3658.
(2) Notification that payments of money received by the broker on account of a sale--regardless of the form of payment and the person designated as payee (if payment is made by an instrument)--shall be held by the broker in an escrow account pending consummation of the sale or a prior termination thereof.
(3) Notification that the broker's commission and the duration of the agreement have been determined as a result of negotiations between the broker, or a licensee employed by the broker, and the seller/landlord or buyer/tenant.
(4) A description of the services to be provided and the fees to be charged.
(5) Notification about the possibility that the broker or any licensee employed by the broker may provide services to more than one party in a single transaction, and an explanation of the duties owed to the other party and the fees which the broker may receive for those services.
(6) Notification of the licensee's continuing duty to disclose in a reasonably practicable period of time any conflict of interest.
(7) In an agreement between a broker and a seller/landlord, a statement regarding cooperation with subagents and buyers agents, a disclosure that a buyer agent, even if compensated by the listing broker or seller/landlord will represent the interests of the buyer/tenant and a disclosure of any potential for the broker to act as a dual agent.
(8) In an agreement between a broker and a buyer/tenant, an explanation that the broker may be compensated based upon a percentage of the purchase price, the broker's policies regarding cooperation with listing brokers willing to pay buyer's brokers, a disclosure that the broker, even if compensated by the listing broker or seller/landlord will represent the interests of the buyer/tenant and a disclosure of any potential for the broker to act as a dual agent.
(b) To the extent that any of the information required in subsection (a) is set forth in the disclosure summaries in §§ 35.336--35.338 (relating to disclosure summary for the purchase or sale of residential or commercial real estate or for the lease of residential or commercial real estate when the licensee is working on behalf of the tenant; disclosure summary for the lease of residential or commercial real estate when the licensee is working on behalf of the owner; and disclosure summary for time-share estates), those provisions need not be repeated, but may be incorporated by reference.
§ 35.332. Exclusive listing agreements.
(a) An exclusive listing agreement may comprise one of the following:
(1) The exclusive agency of the broker.
(2) The exclusive right-to-sell or exclusive right-to-lease.
(b) An exclusive listing agreement shall contain, in addition to the requirements in § 35.331 (relating to written agreements generally), the following:
(1) The sale or lease price.
(2) The commission, fees or other compensation expected on the sale or lease price.
(3) The duration of the agreement.
(4) In the case of an exclusive right-to-sell agreement, a statement in bold face type that the broker earns a commission on the sale of the property during the listing period by whomever made, including the owner.
(5) In the case of an exclusive right-to-lease agreement, a statement in bold print that the broker earns a commission on the lease of the property during the listing period by whomever made, including the lessor.
(c) An exclusive listing agreement may not contain:
(1) A listing period exceeding 1 year.
(2) An automatic renewal clause.
(3) A cancellation notice to terminate the agreement at the end of the listing period set forth in the agreement.
(4) Authority of the broker to execute a signed agreement of sale or lease for the owner or lessor.
(5) An option by the broker to purchase the listed property.
(6) Authority of the broker to confess judgment against the owner or lessor for the Commission in the event of a sale or lease.
§ 35.333. Agreements of sale.
(a) An agreement of sale, other than for a cemetery lot, mausoleum or cremation space or opening, shall contain:
(1) The date of the agreement.
(2) The names of the buyer and seller.
(3) A description of the property and the interest to be conveyed.
(4) The sale price.
(5) The dates for payment and conveyance.
(6) The zoning classification of the property, except if the property (or each parcel thereof, if subdividable) is zoned solely or primarily to permit single-family dwellings, together with a statement that the failure of the agreement of sale to contain the zoning classification of the property shall render the agreement voidable at the option of the buyer and, if voided, deposits tendered by the buyer shall be returned to the buyer without a requirement of court action.
(7) A statement identifying the capacity in which the broker, or a licensee employed by the broker is involved in the transaction and whether services have been provided to another party in the transaction.
(8) A provision that payments of money received by the broker on account of the sale--regardless of the form of payment and the person designated as payee (if payment is made by an instrument)--shall be held by the broker in an escrow account pending consummation of the sale or a prior termination thereof.
(9) The following statement:
''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.''(10) A statement that access to a public road may require issuance of a highway occupancy permit from the Department of Transportation.
(11) In the case of an agreement of sale for the purchase of a time share or campground membership, a statement regarding the purchaser's right of cancellation that is set forth conspicuously in bold face type of at least 10 point size immediately above the signature line for the purchaser and that is in substantially the following form:
''You, the purchaser, may cancel this purchase at any time prior to midnight of the fifth day following the date of this transaction. If you desire to cancel, you are required to notify the seller, in writing, at (insert address). Such notice shall be given by certified return receipt mail or by any other bona fide means of delivery which provides you with a receipt. Such notice shall be effective upon being postmarked by the United States Postal Service or upon deposit of the notice with any bona fide means of delivery which provides you with a receipt.''(b) An agreement of sale that is conditioned upon the ability of the buyer to obtain a mortgage shall contain:
(1) The type of mortgage.
(2) The mortgage principal.
(3) The maximum interest rate of the mortgage.
(4) The minimum term of the mortgage.
(5) The deadline for the buyer to obtain the mortgage.
(6) The nature and extent of assistance that the broker will render to the buyer in obtaining the mortgage.
(c) The following terms shall be printed in bold face if made part of an agreement of sale:
(1) A provision relieving the seller from responsibility for defects involving the sale property, or a provision requiring the buyer to execute a release to that effect at the time of settlement, or a provision of similar import.
(2) A provision reserving to the builder-seller the right to change, or depart from, the building specifications for the sale property.
(d) An agreement of sale for a cemetery lot or plot or a mausoleum space or opening shall contain the requirements in subsection (a)(1)--(5) and (9).
§ 35.336. Disclosure summary for the purchase or sale of residential or commercial real estate or for the lease of residential or commercial real estate when the licensee is working on behalf of the tenant.
The Disclosure Summary shall be entitled ''Consumer Notice'' and shall be in the following format available from the Commission office upon request by phone, fax or internet:
CONSUMER NOTICE
THIS IS NOT A CONTRACTPennsylvania 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:
* Exercise reasonable professional skill and care which meets the practice standards required by the act.
* Deal honestly and in good faith.
* 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.
* Comply with Real Estate Seller Disclosure Act.
* Account for escrow and deposit funds.
* Disclose all conflicts of interest in a reasonably practicable period of time.
* 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 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.
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, except 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 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:
* Taking no action that is adverse or detrimental to either party's interest in the transaction.
* 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 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 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/listing price.
* The buyer/tenant will pay a price greater than 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 TRANSACTIONS 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 activities 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.
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.
__________
ACKNOWLEDGMENT
I ACKNOWLEDGE THAT I HAVE RECEIVED
THIS DISCLOSURE.DATE: ______ ______
PRINT (CONSUMER) PRINT (CONSUMER)
______ ______
SIGNED (CONSUMER) SIGNED (CONSUMER)ADDRESS (OPTIONAL): ADDRESS (OPTIONAL):
PHONE NUMBER PHONE NUMBER
(OPTIONAL): (OPTIONAL):__________
I CERTIFY THAT I HAVE PROVIDED THIS
DOCUMENT TO THE ABOVE CONSUMER.DATE: __________ PRINT LICENSEE
__________ SIGNED LICENSEE
ADOPTED BY THE STATE REAL ESTATE COMMISSION AT 49 PA. CODE § 35.336. § 35.337. Disclosure summary for the lease of residential or commercial real estate when the licensee is working on behalf of the owner.
The disclosure summary for the lease of residential or commercial property shall be in the following format:
CONSUMER NOTICE
THIS IS NOT A CONTRACT(LICENSEE) HEREBY STATES THAT WITH RESPECT TO THIS PROPERTY, (DESCRIBE PROPERTY) I AM ACTING IN THE FOLLOWING CAPACITY: (CHECK ONE)(I) OWNER/LANDLORD OF THE PROPERTY;(II) A DIRECT EMPLOYEE OF THE OWNER/LANDLORD; OR(III) AN AGENT OF THE OWNER/LANDLORD PURSUANT TO A PROPERTY MANAGEMENT OR EXCLUSIVE LEASING AGREEMENT.I ACKNOWLEDGE THAT I HAVE RECEIVED THIS NOTICE:
DATE: ______ ______
PRINT (CONSUMER) PRINT (CONSUMER)
______ ______
SIGNED (CONSUMER) SIGNED (CONSUMER)ADDRESS (OPTIONAL): ADDRESS (OPTIONAL):
PHONE NUMBER PHONE NUMBER
(OPTIONAL): (OPTIONAL):__________
I CERTIFY THAT I HAVE PROVIDED THIS NOTICE:
______ ______
(LICENSEE) (DATE)§ 35.338. Disclosure summary for time-share estates.
The disclosure summary for time-share estates shall be in the following format:
CONSUMER NOTICE
THIS IS NOT A CONTRACT(LICENSEE) HEREBY STATES THAT WITH RESPECT TO THIS PROPERTY, (DESCRIBE PROPERTY) I AM ACTING IN THE FOLLOWING CAPACITY: (CHECK ONE)
(I) OWNER OF THE PROPERTY;
(II) A DIRECT EMPLOYEE OF THE OWNER; OR
(III) AN AGENT OF THE OWNER PURSUANT TO A PROPERTY MANAGEMENT OR EXCLUSIVE LEASING OR SELLING AGREEMENT.
I ACKNOWLEDGE THAT I HAVE RECEIVED THIS NOTICE:
______ ______
(CONSUMER) (DATE)I CERTIFY THAT I HAVE PROVIDED THIS NOTICE:
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(LICENSEE) (DATE)§ 35.339. Oral disclosure.
The disclosure shall be read verbatim:
''THE REAL ESTATE LAW REQUIRES THAT I PROVIDE YOU WITH A WRITTEN CONSUMER NOTICE THAT DESCRIBES THE VARIOUS BUSINESS RELATIONSHIP CHOICES THAT YOU MAY HAVE WITH A REAL ESTATE LICENSEE. SINCE WE ARE DISCUSSING REAL ESTATE WITHOUT YOU HAVING THE BENEFIT OF THE CONSUMER NOTICE, I HAVE THE DUTY TO ADVISE YOU THAT ANY INFORMATION YOU GIVE ME AT THIS TIME IS NOT CONSIDERED TO BE CONFIDENTIAL, AND ANY INFORMATION YOU GIVE ME WILL NOT BE CONSIDERED CONFIDENTIAL UNLESS AND UNTIL YOU AND I ENTER INTO A BUSINESS RELATIONSHIP. AT OUR FIRST MEETING I WILL PROVIDE YOU WITH A WRITTEN CONSUMER NOTICE WHICH EXPLAINS THOSE BUSINESS RELATIONSHIPS AND MY CORRESPONDING DUTIES TO YOU.''
§ 35.340. Comparative market analysis.
A comparative market analysis shall 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 requires 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.
______1 A cross-reference of the statutory provisions, subject matter and amendments are charted in the preamble to the proposed rulemaking at 30 Pa.B. 641.
2 In the proposed rulemaking, this provision included two subsections. Subsection (a) was deleted in the final-form rulemaking at 30 Pa.B. 5954 and is therefore not reflected in Annex A.
[Pa.B. Doc. No. 02-494. Filed for public inspection March 29, 2002, 9:00 a.m.]
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