RULES AND REGULATIONS
Title 49--PROFESSIONAL AND VOCATIONAL STANDARDS
STATE REAL ESTATE COMMISSION
[49 PA. CODE CH. 35]
Education
[34 Pa.B. 6530] The State Real Estate Commission (Commission) amends Chapter 35 (relating to State Real Estate Commission) to read as set forth in Annex A. This final-form rulemaking addresses practice when the broker or broker of record dies or is incapacitated, liberalizes the delivery system for real estate prelicensure and continuing education courses, consolidates duplicative prelicensure and continuing education provisions and revises real estate education provider requirements.
Statutory Authority
This final-form rulemaking is authorized under sections 402, 404, 404.1 and 513 of the Real Estate Licensing and Registration Act (RELRA) (63 P. S. §§ 455.402, 455.404, 455.404a and 455.513).
Response to Public Comments and Regulatory Review and Amendments in the Final-Form Rulemaking
Notice of the proposed rulemaking was published at 33 Pa.B. 4571 (September 13, 2003). Publication was followed by a 30-day public comment period during which the Commission received comments from four real estate education providers. Following the close of the public comment period, the Commission received comments from the House Professional Licensure Committee (HPLC) and the Independent Regulatory Review Commission (IRRC). The Senate Consumer Protection and Professional Licensure Committee (SCP/PLC) did not comment.
Administration of Real Estate Education Providers
The HPLC questioned the mechanism by which the Commission will ensure compliance with the provider requirements by providers outside of this Commonwealth. Real estate education providers outside of this Commonwealth must be approved by the real estate licensing authority from the jurisdiction where the provider is located. The Commission relies upon those licensing authorities to police those real estate education providers. Compliance with Commission regulations concerning schools and continuing education is answered through applications and renewal procedures and processes irrespective of where the provider is located. In addition, the Commission investigates matters when complaints are filed by students and licensees. These investigations are conducted by the Bureau of Enforcement and Investigation in cooperation with the licensing authority of the jurisdiction where the provider does business.
Use of ''real estate education provider'' generally.
IRRC recommended that the Commission use the term ''real estate education provider'' throughout instead of ''real estate education provider'' ''education provider'' or ''provider.'' The Commission believes that this recommendation is reasonable and has changed ''education provider'' or ''provider'' to ''real estate education provider'' throughout the regulations.
Section 35.341. Approval of real estate education provider.
In the proposed rulemaking, the Commission deleted the requirements that someone over the age of 21 own the real estate education provider. The HPLC questioned why the Commission deleted this requirement. In response, the Commission believes that age is not a relevant factor in light of the other requirements, such as having a director of operations with a minimum experience level and a custodian of records, as well as the financial security requirements.
Paragraph (4) requires a real estate education provider to designate a person or entity to serve as custodian of records if the provider were to terminate operations. The HPLC questioned why the Commission has removed the requirement that the custodian be located within the Commonwealth. The Commission understands that applicants and licensees obtain their prelicensure and continuing education from providers within and outside of this Commonwealth. Sections 35.271(b)(3)(iii), 35.272(b)(2)(ii), 35.273(b)(4)(ii), 35.275(b)(3)(ii), 35.388(3) and 35,385(e) specifically allow real estate education providers outside of this Commonwealth to provide education in this Commonwealth provided that the provider is approved by the real estate education licensing in the jurisdiction where the provider is located. Because licensees will be able to obtain their education from providers outside of this Commonwealth, the Commission believes that the custodian of records could be located within or outside of this Commonwealth.
Paragraph (5) directs real estate education providers to post a $10,000 surety bond to the Commonwealth for the protection of the contractual rights of the students. The HPLC and IRRC asked the Commission to explain how the $10,000 would be sufficient in the event a real estate education provider fails to perform. Since the surety bond requirement was placed in the regulations, no real estate education providers have gone bankrupt or closed taking student moneys. Based upon this prior experience combined with the relatively low cost of real estate courses, the Commission believes that the $10,000 bond is sufficient to protect students in the event the provider abruptly terminates its services and does not reimburse students.
Paragraph (6) delineates the documents that must accompany a real estate education provider's application. In proposed form, the Commission deleted the requirement in paragraph (1)(i)(C) that required real estate education providers to provide a notarized pro forma profit and loss statement and balance sheet. The HPLC questioned why this documentation was removed. Pro forma profit and loss statements and balance sheets do not contain actual profit and loss figures. As projections, the Commission believes that these documents are unnecessary--especially in light of the surety bond.
In proposed rulemakaing, the Commission also deleted the requirement in subparagraph (vi) that the real estate education provider provide the Commission with copies of the student enrollment agreement, the school transcript, a statement of the prerequisites for admission, a statement of policy regarding refund of tuition and a sketch or photograph of the sign for each location. A public commentator suggested that the Board continue to require these documents. Additionally, IRRC suggested that the Commission retain the requirement of a student enrollment agreement. The Commission believes that these suggestions are reasonable and has reinserted these requirements on final form.
The Commission also retained subparagraphs (viii)--(ix) in final form. One commentator suggested that this list be retained, even in a separate document, as guidance for inspectors and real estate education providers. Rather than creating another regulatory document, the Commission reinserted these provisions as well.
Section 35.344. Withdrawal of Real Estate Education Provider or Director Approval.
Subsection (b)(5) authorizes the Commission to withdraw a real estate education provider's approval for having been convicted of, pled guilty or nolo contendere to a misdemeanor related to the practice of real estate, forgery, embezzlement, obtaining money under false pretenses, bribery, larceny, extortion, conspiracy to defraud or any similar offense. The HPLC questioned why the Commission replaced ''moral turpitude'' with enumerated offenses. The Commission modified this provision to parallel the language in section 604(a)(14) of the RELRA (63 P. S. § 455.604(a)(14)), regarding convictions.
Section 35.351a. Assistant school director.
The Commission has deleted all references to assistant school directors. One commentator suggested that by removing this provision, a program director would be prohibited from delegating responsibilities to assistant directors. The Commission does not agree that this amendment dilutes the authority of the director. As the Commission explained in the preamble of the proposed rulemaking, the sole reason the Commission has eliminated this provision was because the RELRA does not contain provisions delineating the qualifications or responsibilities for assistant directors. Under the RELRA, the director has the ultimate responsibility for the real estate education provider and has the discretion to delegate responsibilities to an assistant director.
Section 35.352. Location and facilities.
Subsection (b)(2) prohibits a real estate education provider from sharing office space, instruction space or common space with a real estate franchise, network or organization. IRRC and several commentators questioned whether this provision conflicts with the Commission's June 3, 2003, Guideline regarding the relationship between real estate education providers and real estate companies.
In its Guideline, the Commission explained that a real estate company/broker or group of companies/brokers may contract with a real estate education provider to provide an approved continuing education course at the provider's location or any other location that complies with § 35.352. Courses which are not approved for continuing education under § 35.384 (relating to qualifying courses) such as specific company policies or documents, may also be provided but will not receive continuing education credit.
The Commission does believe that the regulation and the Guideline conflict with one another. However, in order to clarify the Commission's position, in final form, the Commission has added another exclusion to subsection (b)(2) that would allow real estate licensees to contract with real estate education providers to provide continuing education courses. As is currently the rule, where an approved course would be presented at a location other than the real estate education provider's main location, the real estate education provider would have to obtain approval for a satellite location.
The Commission has chosen not to eliminate subsection (b)(2) as suggested by one commentator because it believes that the separation between real estate education providers and real estate companies is appropriate. At the same time, the Commission believes that allowing real estate companies to contract with real estate education providers for continuing education courses does not breach that separation.
Current subsection (b)(4)--(6) delineates illumination, floor space and airspace requirements. In proposed form, the Commission recommended removing these provisions. The HPLC requested an explanation for the deletion of these provisions. Paragraph (3) requires conformance with applicable building, fire safety and sanitary standards. The Commission believes that the requirements in subsection (b)(4)--(6) fall within the gamet of paragraph (3) and as such, are redundant.
Current subsection (c) requires that where a real estate education provider rents facilities for a main or satellite location, the lease shall be in effect for the period when the real estate education provider is in session. The Commission has removed this provision. One commentator questioned whether deleting this provision conflicted with the requirement in § 35.360(a)(2)(ii) which requires that the lease be retained. The Commission does not believe that this revision creates a conflict. Former subsection (c) addressed the time frame when the lease was in effect. Section 35.360 (relating to records) addresses what documents a real estate education provider must retain.
Section 35.353. Selection of instructors.
Subsection (a)(2) decreased the number of years of experience an instructor must have from 5 to 3. One commentator suggested that instead of permitting ''practical or teaching'' experience for the reduced number of years, the requirement should be ''practical and teaching experience.'' In addition, the commentator suggested that instructors be required to take a Commission-developed training course each biennium. Another commentator suggested that the Commission should develop additional instructor approval standards for use by directors.
The Commission has declined to implement any of the suggestions. The Commission believes that 3 years of practical and teaching experience is unnecessary to teach real estate courses. Further, decisions regarding instructors' capabilities rest with the director based upon the director's observations and student comments. Because the Commission does not license instructors, the Commission lacks the enforcement mechanism to assure that all instructors attend training. Nonetheless, directors may impose this requirement on their staff.
Section 35.357. Student enrollment agreements.
The Commission recommended eliminating the student enrollment agreement because it wanted to avoid involving itself in contractual matters between real estate education providers and students and because the agreement was exemplary and not mandatory. IRRC agreed that the form agreement should be removed from the regulation; however, it suggested that the requirement for an agreement as well as minimum provisions be added to the regulation. The Commission finds this suggestion warranted and has reinserted these provisions accordingly.
Section 35.358. Administration of curriculum.
Current subsection (a)(3) delineates course hour credit for Real Estate Fundamentals and Real Estate Practice. In the proposed rulemaking, the Commission moved this provision to new subsection (b). One commentator questioned if the Commission was changing its position regarding the course hour credit in the revision. The sole reason for the change was to segregate provisions that apply to prelicensure and continuing education from those that apply only to prelicensure. No other change is contemplated by this revision.
New subsection (a)(4) permits prelicensure and continuing education courses to be taught by distance education. As in 34 other states, the Commission retains authority over course content under § 35.384 (relating to qualifying courses). Distance education courses require additional review and approval of the delivery method by the Association of Real Estate License Law Officials (ARELLO) or another certifying body deemed acceptable to the Commission.
The HPLC and several commentators questioned the mechanics of ARELLO approval. Prior to submitting a prelicensure or continuing education course taught by distance education to the Commission for content approval, either the primary provider (the author of the course) or the secondary provider (the actual provider of the course) must obtain approval of the delivery method for courses from ARELLO.
The provider must provide ARELLO with a detailed description and implementation plan for the course and meet standards set forth in ARELLO's Distance Education Standards Manual. (The ARELLO approval process as well as a list of states requiring ARELLO approval can be obtained from ARELLO's web page at www.arello.org.) The delivery method may be, for example, the Internet, satellite, video, computer disc, audiotape or other remote instruction. Once approved, ARELLO issues an approval number which the provider must report to the Commission.
Several commentators also questioned the cost of ARELLO approval. Because the Commission is not requiring both primary and secondary ARELLO approval, the cost to the real estate education providers will be significantly reduced. Nonetheless, the Commission believes that the cost associated with ARELLO approval is necessary in order to assure that the delivery method is sufficient.
Subsection (b)(2) requires that prelicensure courses be graded by written examination. One commentator suggested that all examinations be proctored. After reviewing the distance examination requirements for other states' prelicensure courses, the Commission believes that this suggestion is worthwhile and has amended this provision to require that the prelicensure examinations be proctored.
Section 35.361. Display of documents and approved name.
Subsections (a) and (c) require that real estate education providers prominently display the certificate of approval and letter of approval at the main location and any satellite locations. One commentator suggested that the Commission eliminate subsection (c) and modify subsection (a) since the Commission acknowledged in the Preamble in proposed form that instruction occurs in multiple locations. The Commission concurs with this suggestion and has deleted subsection (c) and amended subsection (a) to reflect that the certificate of approval only be displayed at the main location. Because real estate education providers will still be required to register satellite locations, investigators will still be able to determine where all of the courses are being taught.
Section 35.381. Purposes and goals.
Section 35.381 sets out the three goals of continuing education. In proposed form, the Commission eliminated this provision. One commentator suggested that these goals be maintained. While the Commission agrees with the commentator that these goals are appropriate, the Commission does not believe that the goals should be placed in regulations. Accordingly, the Commission has not reinserted this provision.
Section 35.383. Waiver of continuing education requirement.
New subsection (b) requires licensees seeking a waiver of the continuing education requirement to file the request by March 31 of the renewal year unless it is impracticable to do. One commentator suggested that the deadline for requests be set back to February 15th to give the Commission additional time to review the requests. For many years, licensees have been advised on the renewal form that waiver requests must be filed by March 31st. During that time, the Commission has not had any difficulty in reviewing these requests as the March 31st deadline gives the Commission two meetings to accomplish this task. The Commission has not amended this provision.
Section 35.384. Qualifying courses.
Subsection (a) instructs licensees that they may complete their 14-hour continuing education requirement in acceptable topics. Rather than referring to ''acceptable courses,'' in proposed form, the Commission referred to ''acceptable topics.'' In final-form, the Commission implemented the suggestion of a commentator who recommended that the word ''courses'' be substituted for ''topics.'' Also in final-form the Commission reduced the minimum hour increment from 3 1/2 to 2 hours. The Commission believes that reducing the numbers of hours for each course will provide licensees with more flexibility in their course selection without eroding the educational content of the courses. Additionally, because 2 hour courses are standard in other states, Pennsylvania licensees will be also able to avail themselves of these courses.
Current subsection (b) requires licensees to complete a required course each biennium. In proposed form, the Commission removed this requirement in all but pre-notified instances. Two commentators suggested that by eliminating the required course, licensees would not receive sufficient training in fair housing.
In determining whether to retain the required course, the Commission considered the frequency of amendments to the RELRA and the regulations as well as the number of fair housing disciplinary cases. The Commission determined that except in cases where the RELRA or regulations are substantially modified or where, in the Commission's view, licensees require specific Commission-guidance, licensees should be able to take continuing education in subjects that directly benefit their practice or interest. As part of its ongoing review of its regulations, however, the Commission intends to monitor trends in disciplinary proceedings. When the Commission finds an increase in specific violations, it will consider reinstituting a required course. As in the past, if a required course becomes necessary, the Commission will notify all licensees and real estate education providers at least 6 months prior to the end of the renewal period.
Subsection (c) lists acceptable topics for continuing education credit. New paragraph (19) adds ''management of real estate brokerage operations.'' The HPLC opined that this paragraph conflicts with subsection (d) which precludes office management courses that do not have a bearing on the public interest. The course contemplated in paragraph (19) tracks the exclusion in section 404.1(c) of the RELRA for a broker's continuing education course involving the deposit and maintenance of escrow accounts, document preparation and retention, recordkeeping, conflicts of interest, disclosures to prospective sellers and buyers and the general ethical responsibilities of licensees.
Section 35.385. Continuing education providers.
Section 35.385 contains a list of providers that may offer continuing education courses: accredited colleges, universities and institutes of higher learning and real estate education providers in this Commonwealth and outside of this Commonwealth. One commentator suggested that this list of real estate education providers should apply to prelicensure as well as continuing education. The definition of ''school'' in section 201 of the RELRA (63 P. S. § 455.201) specifically excludes colleges, universities or institutes of higher learning accredited by the Middle States Association of Colleges and Secondary Schools or equivalent accreditation. As such, the Commission does not have jurisdiction over these prelicensure programs. Conversely, the Commission's authority over continuing education instruction is broad.
The commentator also suggested that in-State and out-of-State providers should be treated the same. The Commission concurs and requires approval for both in-State and out-of-State providers. In both the prelicensure and continuing education realm, all providers, other than those specifically exempted, must be approved either by this Commission or the appropriate licensing/regulatory authority in another jurisdiction where the provider is located. In addition, both must electronically transfer their continuing education rosters to the Commission.
Finally, another commentator questioned whether in-State providers would be given processing preference over out-of-State providers. The Commission does not anticipate that this regulation will cause a backlog in processing. The Commission staff will continue to process applications in the order in which they are received.
Sections 35.386 through 35.392
The Commission proposed to delete §§ 35.386--35.392. One commentator suggested that these provisions should be amended instead of deleted. In the preamble to the proposed rulemaking, the Commission explained that these provisions are being deleted because they mirror existing provisions. Former § 35.387 has been consolidated into § 35.358 (relating to administration of curriculum), former § 35.388 has been consolidated into § 35.352 (relating to location and facilities). Former § 35.390 has been consolidated into §§ 35.354 and 35.355 (relating to prohibited forms of advertising and solicitation; and prospectus material). Former § 35.391 has been consolidated into § 35.359 (relating to course transcripts) and former § 35.392 has been consolidated into § 35.362 (relating to inspection of real estate education providers). Accordingly, the Commission has not amended these provisions.
Fiscal Impact and Paperwork Requirements
This final-form rulemaking should have no fiscal impact on the Commonwealth, its political subdivisions or the public. This final-form rulemaking should have a positive fiscal impact on the regulated community because the amendments reduce the legal, accounting, reporting or other paperwork requirements on the regulated community.
Sunset Date
The Commission continually monitors the effectiveness of its regulations through communication with the regulated population; accordingly, no sunset date has been set.
Regulatory Review
Under section 5(a) of the Regulatory Review Act (71 P. S. § 745.5(a)), on September 13, 2003, the Commission submitted a copy of the notice of proposed rulemaking, published at 33 Pa.B. 4571, to IRRC and the Chairpersons of the HPLC and the SCP/PLC for review and comment.
Under section 5(c) of the Regulatory Review Act, IRRC, the HPLC and the SCP/PLC were provided with copies of the comments received during the public comment period, as well as other documents when requested. In preparing the final-form rulemaking, the Commission has considered all comments from IRRC, the HPLC, the SCP/PLC and the public.
Under section 5.1(j.2) of the Regulatory Review Act (71 P. S. § 745.5a(j.2)), on October 19, 2004, the final-form rulemaking was approved by the HPLC. On November 3, 2004, the final-form rulemaking was deemed approved by the SCP/PLC. Under section 5.1(e) of the Regulatory Review Act, IRRC met on November 4, 2004, and approved the final-form rulemaking.
Contact Person
Further information may be obtained by contacting Deborah Sopko, Administrative Assistant, State Real Estate Commission, P. O. Box 2649, Harrisburg, PA 17105-2649, www.state.pa.us/bpoa/recomm/mainpage.
Findings
The Commission finds that:
(1) Public notice of proposed rulemaking was given under sections 201 and 202 of the act of July 31, 1968 (P. L. 769, No. 240) (45 P. S. §§ 1201 and 1202) and the regulations promulgated thereunder, 1 Pa. Code §§ 7.1 and 7.2.
(2) A public comment period was provided as required by law and all comments were considered.
(3) This final-form rulemaking does not enlarge the purpose of proposed rulemaking published at 33 Pa.B. 4571.
(4) The final-form rulemaking is necessary and appropriate for administering and enforcing the RELRA identified in this preamble.
Order
The Commission, acting under its authorizing statutes, orders that:
(a) The regulations of the Commission, 49 Pa. Code Chapter 35, are amended by amending §§ 35.201, 35.203, 35.228, 35.229, 35.252, 35.271--35.273, 35.275, 35.341--35.344, 35.351, 35.352--35.363, and 35.382--35.385; by adding §§ 35.253 and 35.254; and by deleting §§ 35.351a, 35.381 and 35.386--35.392 to read as set forth in Annex A, with ellipses referring to the existing text of the regulations.
(b) The Commission shall submit this order and Annex A to the Office of General Counsel and the Office of Attorney General as required by law.
(c) The Commission shall certify this order and Annex A and deposit them with the Legislative Reference Bureau as required by law.
(d) This order shall take effect on publication in the Pennsylvania Bulletin.
JOSEPH J. MCGETTIGAN,
Chairperson(Editor's Note: For the text of the order of the Independent Regulatory Review Commission relating to this document, see 34 Pa.B. 6292 (November 20, 2004).)
Fiscal Note: Fiscal Note 16A-561 remains valid for the final adoption of the subject regulations.
Annex A
TITLE 49. PROFESSIONAL AND VOCATIONAL STANDARDS
PART I. DEPARTMENT OF STATE
Subpart A. PROFESSIONAL AND OCCUPATIONAL AFFAIRS
CHAPTER 35. STATE REAL ESTATE COMMISSION
Subchapter B. GENERAL PROVISIONS § 35.201. Definitions.
The following words and terms, when used in this chapter, have the following meanings, unless the context clearly indicates otherwise:
* * * * * Distance education--Real estate instruction delivered in an independent or instructor-led format during which the student and the instruction are separated by distance and sometimes time.
* * * * * Independent learning--An interactive educational program, including computer-based technology courses, that provides no contact with an instructor.
* * * * * Instructor-led learning--An interactive educational program, including a classroom or simulated classroom, that provides significant ongoing contact from the instructor to the participant during the learning process.
* * * * * Real estate education provider--A person or institution who offers real estate education regardless of whether the learning is instructor-led or independent, excluding colleges, universities or institutes of higher learning accredited by the Middle States Association of Colleges and Secondary Schools or equivalent accreditation.
* * * * * § 35.203. Fees.
The following fees are charged by the Commission:
* * * * *
Approval of real estate education provider $120 Reinspection of real estate education provider after first failure $65 Annual renewal of approval of real estate education provider $250 plus $10 for each
satellite location,
course and instructor
* * * * * Change of ownership or directorship of real estate education provider $75 Change of name of real estate education provider $45 Change of location of real estate education provider $70 Addition of satellite location or instructor for real estate education provider $20 Addition of course for real estate education provider $25 * * * * *
Subchapter C. LICENSURE
LICENSURE REQUIREMENTS § 35.228. Licensure as campground membership salesperson.
(a) An individual who wants to obtain a Pennsylvania campground membership salesperson's license shall:
(1) Be 18 years of age or older.
(2) Have successfully completed the one-credit (15 hours), Commission-developed course titled Campground Membership Sales, provided the following conditions are met:
(i) The course was taken prior to onsite training.
(ii) The course was taught at an accredited college, university or institute of higher learning in this Commonwealth or a real estate education provider in this Commonwealth approved by the Commission.
(3) Have successfully completed 30 days of onsite training at a campground membership facility subject to the following conditions:
(i) The 30 days of onsite training shall be completed during a 90-day period within 3 years prior to the submission of a license application.
(ii) The trainee shall be actively supervised and trained by a broker.
(4) Submit a completed license application to the Commission with:
(i) An official transcript evidencing acquisition of the qualifying coursework or degree.
(ii) A sworn statement from the broker under whom the applicant received his onsite training certifying that he actively trained and supervised the applicant and providing other information regarding the onsite training as the Commission may require.
(b) An individual who sells campground memberships without a license may be subject to disciplinary action by the Commission for unlicensed practice as a campground membership salesperson under section 301 of the act (63 P. S. § 455.301).
§ 35.229. Licensure as time-share salesperson.
(a) An individual who wants to obtain a Pennsylvania time-share salesperson's license shall:
(1) Be at least 18 years of age.
(2) Have successfully completed the two-credit (30 hours), Commission-developed course titled Time Share Sales, provided the following conditions are met:
(i) The course was taken prior to onsite training.
(ii) The course was taught at an accredited college, university or institute of higher learning in this Commonwealth or a real estate education provider in this Commonwealth approved by the Commission.
(3) Have successfully completed 30 days of onsite training at a time share facility subject to the following conditions:
(i) The 30 days of onsite training shall be completed during a 90-day period within 3 years prior to the submission of a license application.
(ii) The trainee shall be actively supervised and trained by a broker.
(4) Submit a completed license application to the Commission with:
(i) An official transcript evidencing acquisition of the qualifying coursework or degree.
(ii) A sworn statement from the broker under whom the applicant received his onsite training certifying that he actively trained and supervised the applicant and providing other information regarding the onsite training the Commission may require.
(b) An individual who sells time shares without a license may be subject to disciplinary action by the Commission for unlicensed practice as a time-share salesperson under section 301 of the act (63 P. S. § 455.301).
STATUS OF LICENSURE § 35.252. Termination of business of deceased broker with sole proprietorship.
(a) Within 15 days following the death of a broker with a sole proprietorship, the deceased broker's estate shall notify the Commission that the estate has appointed another licensed broker to supervise the termination of the deceased broker's business. The appointment is subject to verification that the appointed broker has a current license.
(b) The appointed broker shall observe the following rules during the termination period:
(1) New listing agreements may not be entered into.
(2) Unexpired listing agreements may be promoted unless the seller or lessor elects to cancel the agreement. Unexpired listings will expire automatically 90 days after the broker dies and may not be renewed.
(3) Pending agreements of sale or lease may proceed to consummation.
(4) New licensees may not be hired.
§ 35.253. Replacement of broker of record due to death.
Within 15 days following the death of a broker of record, a partner or corporate officer shall file an application with the Commission designating another individual to serve as broker of record.
§ 35.254. Substitution of broker or broker of record due to illness or injury.
If a broker with a sole proprietorship or broker of record is unable to act as a broker/broker of record due to illness or injury, the broker's attorney or another with power of attorney for the broker in a sole proprietorship, a corporate officer or partner shall notify the Commission within 15 days that it has appointed another licensed broker to act as the interim broker/broker of record for the corporation, partnership or sole proprietorship until the broker/broker of record is able to resume his responsibilities.
Subchapter D. LICENSING EXAMINATIONS § 35.271. Examination for broker's license.
(a) An individual who wants to take the broker's examination for a Pennsylvania broker's license shall:
(1) Be 21 years of age or older.
(2) Be a high school graduate or have passed a high school general education equivalency examination.
(3) Have worked at least 3 years as a licensed salesperson, with experience qualifications that the Commission considers adequate for practice as a broker, or possess at least 3 years of other experience, education, or both, that the Commission considers the equivalent of 3 years' experience as a licensed salesperson.
(4) Have acquired 16 credits, or 240 hours of instruction, in professional real estate education as determined by the Commission under subsection (b).
(5) Submit a completed examination application to the Commission or its designee with:
(i) Official transcripts evidencing the acquisition of course credits.
(ii) A detailed resume of real estate activities performed by the candidate while working as a salesperson and a sworn statement from the candidate's employing broker confirming that these activities were performed if the candidate is a licensed salesperson.
(iii) A complete description of work experience and education that the candidate considers relevant to the requirements of paragraph (3) if the candidate is not a licensed salesperson.
(iv) A certification from the real estate licensing authority of the jurisdiction in which the candidate is licensed stating that the candidate had an active license for each year that credits are claimed if the candidate is applying brokerage experience to satisfy the professional education requirement.
(v) The fee for review of the candidate's qualifications to take the examination prescribed in § 35.203 (relating to fees) and the fees for administration of the examination.
(b) The Commission will apply the following standards in determining whether an examination candidate has met the education requirement of subsection (a)(4):
(1) A candidate who has obtained one of the following degrees will be deemed to have met the education requirement and will not be required to show completion of coursework in specific areas of study:
(i) A bachelor's degree with a major in real estate from an accredited college, university or institute of higher learning.
(ii) A bachelor's degree from an accredited college, university or institute of higher learning, having completed coursework equivalent to a major in real estate.
(iii) A juris doctor degree from an accredited law school.
(2) Except as provided in paragraph (6), 2 of the required 16 credits shall be in a Commission-developed or approved real estate office management course and 2 of the required 16 credits shall be in a Commission-developed or approved law course. At least 6 of the remaining 12 credits shall be in 3 or more of the Commission-developed courses listed in this paragraph. The remaining 6 credits shall be in real estate courses but not necessarily those listed in this paragraph. A candidate may not apply credits used to qualify for the salesperson's examination toward fulfillment of the broker education requirement.
(i) Real Estate Law.
(ii) Real Estate Finance.
(iii) Real Estate Investment.
(iv) Residential Property Management.
(v) Nonresidential Property Management.
(vi) Real Estate Sales.
(vii) Residential Construction.
(viii) Valuation of Residential Property.
(ix) Valuation of Income-Producing Property.
(3) To be counted toward the education requirement, a real estate course shall have been offered by:
(i) An accredited college, university or institute of higher learning, whether in this Commonwealth or outside this Commonwealth.
(ii) A real estate education provider in this Commonwealth approved by the Commission.
(iii) A real estate education provider outside this Commonwealth that has been approved by the real estate licensing authority of the jurisdiction where the real estate education provider is located. The course transcript or certificate of completion shall state that the course is approved by the licensing authority of the jurisdiction where the real estate education provider is located.
(iv) A real estate industry organization outside this Commonwealth, if the course is approved by the licensing jurisdiction of another state. The course transcript or certificate of completion shall state that the course is approved by the licensing jurisdiction which has approved it.
(4) A maximum of four credits will be allowed for each real estate course. A maximum of four credits will be allowed for each area of real estate study listed in paragraph (2).
(5) Courses shall have been completed within 10 years prior to the date of successful completion of the licensing examination.
(6) Two credits will be allowed for each year of active practice the candidate has had as a licensed broker in another jurisdiction during the 10-year period immediately preceding the submission of the examination application.
§ 35.272. Examination for salesperson's license.
(a) An individual who wants to take the salesperson's examination for the purpose of obtaining a Pennsylvania salesperson's license shall:
(1) Be 18 years of age or older.
(2) Have successfully completed four credits, or 60 hours of instruction, in basic real estate courses as determined by the Commission under subsection (b).
(3) Submit a completed examination application to the Commission or its designee with the examination fee.
(b) The Commission will apply the following standards in determining whether an examination candidate has met the education requirement of subsection (a)(2):
(1) A candidate who has obtained one of the following degrees will be deemed to have met the education requirement and will not be required to show completion of coursework in specific areas of study:
(i) A bachelor's degree with a major in real estate from an accredited college, university or institute of higher learning.
(ii) A bachelor's degree from an accredited college, university or institute of higher learning, having completed coursework equivalent to a major in real estate.
(iii) A juris doctor degree from an accredited law school.
(2) Credits will be allowed for each of the Commission-developed real estate courses--Real Estate Fundamentals and Real Estate Practice--when offered by:
(i) An accredited college, university or institution of higher learning located outside this Commonwealth.
(ii) A real estate education provider in this Commonwealth approved by the Commission.
(3) Credits will be allowed for acceptable basic real estate courses when offered by:
(i) An accredited college, university or institution of higher learning located outside this Commonwealth.
(ii) A real estate education provider outside this Commonwealth that has been approved by the real estate licensing authority of the jurisdication where the real estate education provider is located.
(4) Courses shall have been completed within 10 years prior to the date of successful completion of the licensing examination.
§ 35.273. Examination for cemetery broker's license.
(a) An individual who wants to take the salesperson's examination for the purpose of obtaining a Pennsylvania cemetery broker's license shall:
(1) Be 21 years of age or older.
(2) Have worked at least 3 years as a licensed salesperson or cemetery salesperson, with experience qualifications that the Commission considers adequate for practice as a cemetery broker, or possess at least 3 years of other experience, education, or both, that the Commission considers the equivalent of 3 years' experience as a licensed salesperson or cemetery salesperson.
(3) Have successfully completed four credits, or 60 hours of instruction, in basic real estate courses as determined by the Commission under subsection (b).
(4) Submit a completed examination application to the Commission or its designee with:
(i) Official transcripts evidencing the acquisition of degrees or course credits.
(ii) A detailed resume of real estate activities performed by the candidate while working as a salesperson or cemetery salesperson, and a sworn statement from the candidate's employing broker confirming that these activities were performed if the candidate is a licensed salesperson or cemetery salesperson.
(iii) A complete description of work experience and education that the candidate considers relevant to the requirements of paragraph (2) if the candidate is not a licensed salesperson or cemetery salesperson.
(iv) The fee for review of the candidate's qualifications to take the examination prescribed in § 35.203 (relating to fees) and the fee for administration of the examination.
(b) The Commission will apply the following standards in determining whether an examination candidate has met the education requirement of subsection (a)(3):
(1) A candidate who has obtained one of the following degrees will be deemed to have met the education requirement and will not be required to show completion of course work in specific areas of study:
(i) A bachelor's degree with a major in real estate from an accredited college, university or institute of higher learning.
(ii) A bachelor's degree from an accredited college, university or institute of higher learning, having completed course work equivalent to a major in real estate.
(iii) A juris doctor degree from an accredited law school.
(2) Credits will be allowed for each of the Commission-developed real estate courses--Real Estate Fundamentals and Real Estate Practice--when offered by:
(i) An accredited college, university or institute of higher learning in this Commonwealth.
(ii) A real estate education provider approved by the Commission in this Commonwealth.
(3) Credits will be allowed for cemetery courses when offered by:
(i) An accredited college, university or institute of higher learning in this Commonwealth.
(ii) A real estate education provider in this Commonwealth approved by the Commission.
(4) Credits will be allowed for acceptable basic real estate courses when offered by:
(i) An accredited college, university or institute of higher learning located outside this Commonwealth.
(ii) A real estate education provider outside this Commonwealth that has been approved by the real estate licensing authority of the jurisdiction where the real estate education provider is located.
(iii) A cemetery association outside this Commonwealth, if the course taught by the cemetery association is equivalent to a course taught by a real estate school in this Commonwealth approved by the Commission.
(5) Courses shall have been completed within 10 years prior to the date of successful completion of the licensing examination.
§ 35.275. Examination for rental listing referral agent's license.
(a) An individual who wants to take the salesperson's examination for the purpose of obtaining a Pennsylvania rental listing referral agent's license shall:
(1) Be 18 years of age or older.
(2) Have successfully completed four credits, or 60 hours of instruction, in basic real estate courses as determined by the Commission under subsection (b).
(3) Submit a completed examination application to the Commission or its designee with the examination fee.
(b) The Commission will apply the following standards in determining whether an examination candidate has met the education requirement of subsection (a)(2):
(1) A candidate who has obtained one of the following degrees will be deemed to have met the education requirement and will not be required to show completion of coursework in specific areas of study:
(i) A bachelor's degree with a major in real estate from an accredited college, university or institute of higher learning.
(ii) A bachelor's degree from an accredited college, university or institute of higher learning, having completed coursework equivalent to a major in real estate.
(iii) A juris doctor degree from an accredited law school.
(2) Credits will be allowed for each of the Commission-developed real estate courses--Real Estate Fundamentals and Real Estate Practice--when offered by:
(i) An accredited college, university or institute of higher learning in this Commonwealth.
(ii) A real estate education provider in this Commonwealth approved by the Commission.
(3) Credits will be allowed for acceptable basic real estate courses when offered by:
(i) An accredited college, university or institute of higher learning in this Commonwealth.
(ii) A real estate education provider outside this Commonwealth that has been approved by the real estate licensing authority of the jurisdiction where the real estate education provider is located.
(4) Courses shall have been completed within 10 years prior to the date of successful completion of the licensing examination.
Subchapter F. REAL ESTATE EDUCATION PROVIDERS
APPROVAL OF REAL ESTATE EDUCATION PROVIDERS § 35.341. Approval of real estate education provider.
A real estate education provider shall obtain the Commission's approval before commencing operations in this Commonwealth. To obtain approval from the Commission, the real estate education provider shall:
(1) Be owned by persons who possess good moral character, or, if the owner is a corporation, have officers and directors who meet this requirement.
(2) Have a name that is acceptable to the Commission.
(3) Have a director of operations who meets the requirements of § 35.342 (relating to approval of director).
(4) Designate a person or entity to serve as custodian of records if the real estate education provider were to terminate operations.
(5) Post a surety bond of $10,000 to the Commonwealth for the protection of the contractual rights of the real estate education provider's students.
(6) Submit a completed real estate education provider approval application to the Commission with:
(i) A completed real estate education provider owner application with:
(A) A resume of the applicant's experience in owning, administrating or teaching in, a college or university or as a real estate education provider.
(B) Two letters of reference from responsible persons relating to the applicant's integrity and to the applicant's previous experience, if any, in the administration of an educational program.
(C) Certified copies of court documents related to a conviction of, or plea of guilty or nolo contendere to, a felony or misdemeanor and the sentence imposed.
(ii) A completed real estate education provider director application with:
(A) Credentials evidencing the qualifications required of the applicant under § 35.342.
(B) Certified copies of court documents related to conviction of, or plea of guilty or nolo contendere to, a felony or misdemeanor and the sentence imposed.
(iii) A fictitious name registration, if the real estate education provider has a fictitious name.
(iv) A certificate of incorporation, if the real estate education provider is a corporation.
(v) A copy of the surety bond required under paragraph (5).
(vi) A statement of policy regarding refund of tuition and other fees.
(vii) A copy of the school transcript.
(viii) A statement of the prerequisites for admission.
(ix) A statement of policy regarding refund of tuition and other fees.
(x) The approval fee prescribed in § 35.203 (relating to fees).
(xi) For the main school location and each proposed satellite location, a sketch or photograph of the real estate education provider's sign.
§ 35.342. Approval of real estate educational director.
(a) A real estate education provider shall obtain the Commission's approval of its director before commencing operations in this Commonwealth. The applicant for director shall have a combination of experience in teaching, supervision and educational administration which, in the opinion of the Commission, will enable the applicant to competently administer a real estate education program in areas that include, but are not limited to, the following: evaluation of instructor performance; evaluation of curriculum and specific course content; analysis of course examinations; and management of records and facilities.
(b) The Commission may provisionally approve an otherwise qualified applicant for director who lacks sufficient background in teaching, supervision or educational administration. A provisionally approved director shall obtain the requisite qualifications in the time and manner prescribed by the Commission.
(c) An approved real estate education provider shall obtain the Commission's approval before changing directors. The prospective director shall submit to the Commission the information required by § 35.341(6)(ii) (relating to approval of real estate education provider).
(d) If the director dies, withdraws or is terminated, an approved real estate education provider will not lose its approved status, nor will it be required to terminate operations within the Commonwealth provided that:
(1) The real estate education provider shall submit the name of an interim director to the Commission within 15 days of the death, withdrawal or termination of the director.
(2) The interim director is authorized to operate for up to 90 days following the death, withdrawal or termination of the director. Thereafter, continued operation is contingent upon approval of a director under subsection (a) or (b).
(3) No changes may be made to the curriculum, testing or facilities until the new director is approved by the Commission.
§ 35.343. Renewal of real estate education provider approval.
An approved real estate education provider shall renew its approval annually. To obtain renewal of approval, a real estate education provider shall submit a completed renewal of approval application to the Commission with:
(1) A notarized certification of compliance with this chapter signed by the director.
(2) A copy of the $10,000 surety bond showing coverage for the upcoming renewal period.
(3) The fee for renewal of approval prescribed in § 35.203 (relating to fees).
§ 35.344. Withdrawal of real estate education provider or director approval.
(a) The Commission may, following notice and hearing under 2 Pa. C.S. §§ 501--508 (relating to practice and procedure of Commonwealth agencies), withdraw the approval of a real estate education provider that it finds guilty of:
(1) Having acquired the Commission's approval by misrepresentation.
(2) Failing to maintain compliance with § 35.341 (relating to approval of real estate education provider).
(3) Violating a requirement of §§ 35.351--35.363 (relating to administration of real estate education providers).
(b) The Commission may, following notice and hearing under 2 Pa.C.S. §§ 501--508, withdraw the approval of a director that it finds guilty of:
(1) Any conduct in connection with the administration of a real estate education provider which demonstrates bad faith, dishonesty, untrustworthiness or incompetency.
(2) Failing to comply with § 35.341 (relating to approval of real estate education provider).
(3) Having had a real estate license revoked or suspended by the Commission or by a real estate licensing authority of another jurisdicition.
(4) Having been convicted of, or having pled guilty or nolo contendere to a felony.
(5) Having been convicted of, or having pled guilty or nolo contendere to a misdemeanor related to the practice of real estate, forgery, embezzlement, obtaining money under false pretenses, bribery, larceny, extortion, conspiracy to defraud, or any similar offense.
ADMINISTRATION OF REAL ESTATE EDUCATION PROVIDERS § 35.351. Duty of director.
The director for a real estate education provider is responsible for day-to-day administration, including evaluation of instructor performance, evaluation of curriculum and specific course content, analysis of course examinations, management of records and facilities and otherwise assuring compliance with §§ 35.352--35.363.
§ 35.351a. (Reserved).
§ 35.352. Location and facilities.
(a) A real estate education provider shall have a main location that contains its administrative offices, its records, and a telephone with a listed number for the real estate education provider's exclusive use.
(b) The location where classes are taught must:
(1) Be suitable for classroom space.
(2) Not share office space, instruction space or a common space with a real estate franchise, network or organization. This paragraph does not apply to a real estate trade association or to a contractual arrangement between a real estate licensee and a real estate education provider to provide continuing education courses.
(3) Be in conformance with applicable building, fire safety and sanitary requirements imposed by State, county and municipal governments.
§ 35.353. Selection of instructors.
(a) Qualified instructors. A real estate education provider shall employ instructors who are qualified to teach the courses for which the instructors have been hired. The real estate education provider may consider an individual qualified to teach a course if the individual satisfies one of the following criteria:
(1) Possesses an undergraduate, graduate or postgraduate degree in the subject matter of the course to be taught.
(2) Has 3 years of practical or teaching experience in a profession, trade or occupation directly related to the subject matter of the course to be taught.
(b) Proof of qualifications. A real estate education provider shall maintain documentation substantiating the instructor's education and experience.
§ 35.354. Prohibited forms of advertising and solicitation.
(a) A real estate education provider may not:
(1) Hold itself out under a name other than the name approved for it by the Commission under § 35.341 (relating to approval of real estate education provider).
(2) Hold itself out as being recommended or endorsed by the Commission, the Department of Education or other agency of the Commonwealth, except that the real estate education provider may advertise that it has been approved by the Commission to provide instruction in real estate courses and that credits earned in certain named courses will be accepted by the Commission toward fulfillment of the professional education prerequisite for taking the Pennsylvania real estate licensing examinations.
(3) Hold itself out to be an educational institution that conforms to the standards and requirements prescribed for colleges and universities by the Department of Education, unless the real estate education provider meets those standards and requirements.
(4) Make a guarantee of employment, conditional or unconditional, to a student or prospective student.
(5) Guarantee that successful completion of its curriculum will result in the student's passing a real estate licensing examination.
(6) Promote the business of a real estate licensee or a real estate organization, franchise or network.
(7) Recruit students for employment or affiliation with a real estate licensee or a real estate organization, franchise or network.
(8) Solicit students for membership in a real estate organization, franchise or network.
(9) Permit an instructor or guest lecturer while on the real estate education provider's premises to wear any identification relating to the name of the real estate licensee or a real estate organization, franchise or network.
(10) Solicit enrollments by means of advertisements in the employment columns of newspapers and other publications.
(11) Engage in advertising that is false, misleading, deceptive or degrading to the dignity of the real estate profession.
(b) A real estate education provider may not allow its main or satellite locations to be used by others for the solicitation or recruitment of students for employment or affiliation with a real estate licensee or a real estate organization, franchise or network. Students shall be informed of this prohibition through a written statement which shall contain the following:
''No recruiting for employment opportunities for any real estate brokerage firm is allowed in this class. Any recruiting should be promptly reported to the State Real Estate Commission by calling this number: 1-800-822-2113.''§ 35.355. Prospectus materials.
(a) A real estate education provider shall provide copies of catalogs, bulletins, pamphlets and other prospectus materials to the Commission upon request. Prospectus materials shall state the following in clear and unambiguous terms:
(1) Admission requirements.
(2) Curriculum, including a specification of courses that meet the Commission's requirements for prelicensure education or continuing education.
(3) Tuition and other fees, and the refund policy in the event of cancellation.
(4) Completion requirements.
(b) Prospectus materials for courses shall be directed towards the general licensee population without regard to the licensees' affiliation with a particular educational institution or a particular real estate organization, franchise or network.
§ 35.356. Tuition and other fees.
A real estate education provider shall charge tuition that bears a reasonable relationship to the quality and quantity of instructional services rendered. If additional fees are charged for books, supplies and other materials needed for coursework, the real estate education provider shall itemize the fees and the books, supplies and materials, upon payment therefor, shall become the property of the student.
§ 35.357. Student enrollment agreements.
A real estate education provider shall require each of its students to enter into a student enrollment agreement. The agreement must:
(1) Itemize the tuition and other fees and the services and materials to be received from them.
(2) State the real estate education provider's policy regarding the refund of tuition and fees if the student were to withdraw or be dismissed or if the school were to terminate operations before the end of the academic year.
(3) Contain the Bureau's toll-free telephone number, (800) 822-2113, that the student may call to obtain information about filing a complaint against the real estate education provider.
§ 35.358. Administration of curriculum.
(a) Real estate education providers shall observe the following standards in the administration of prelicensure and continuing education curriculum:
(1) Instructor-led learning may not exceed 7 1/2 clock hours of instruction per day. For purposes of this section, a clock hour is defined as a 60-minute period comprising 50 minutes of instruction and a 10-minute break. A student may not be required to attend class for more than 90 consecutive minutes without a break.
(2) The substantive content of the course, as evidenced by the course outline, text and other instructional materials, shall adequately reflect the stated purpose of the course, as evidenced by the course title and course description. Instruction in a Commission required course shall conform to the content or the outline developed by the Commission for the course.
(3) Unless the course is taught by means of distance education, a student shall be physically present during at least 80% of the classroom instruction for a prelicensure course and during at least 90% of the classroom instruction for a continuing education course, to receive credit. The real estate education provider shall be responsible for verifying student attendance.
(4) Courses delivered by distance education, in addition to meeting the content requirements in § 35.384 (relating to qualifying courses), must have the delivery method approved by the Association of Real Estate License Law Officials or another certifying body with similar approval standards approved by the Commission.
(b) In addition to the requirements in subsection (a), a real estate education provider shall observe the following standards in the administration of its prelicensure curriculum:
(1) A prelicensure course must be assigned one credit for every 15 clock hours of instruction.
(2) A prelicensure course must be graded by proctored examination, except when a student's handicap or disability would make grading by examination impractical.
§ 35.359. Course transcripts.
(a) Prelicensure. Within 30 days after a course has been taught, a real estate education provider shall provide each student in the course with an official course transcript that contains the information in § 35.360(a)(5) (relating to records) and is signed by the director.
(b) Continuing education. Effective with the renewal period commencing June 1, 2004, within 30 days after a continuing education course has ended, the continuing education provider shall provide the Commission with a roster in a format approved by the Commission, listing each licensee who satisfactorily completed/taught the course. Continuing education providers shall be required to issue course transcripts/certificates of instruction to students only upon request.
§ 35.360. Records.
(a) A real estate education provider shall maintain complete and accurate records in the following areas:
(1) Financial. The real estate education provider's assets and liabilities and the sources and amounts of its income.
(2) Physical plant. For the main location and for each satellite location, the following:
(i) Copies of documentation showing compliance with applicable building, fire safety and sanitary requirements imposed by state, county or municipal governments.
(ii) A copy of the lease or rental agreement, if the real estate education provider does not own the building being used.
(3) Personnel. The qualifications of each instructor and the documentary evidence of those qualifications. See § 35.353 (relating to selection of instructors).
(4) Curriculum. For each course the real estate education provider has offered, the following:
(i) The course title.
(ii) The course prerequisites.
(iii) The course objectives.
(iv) The course outline.
(v) The requirements for successful completion of the course.
(vi) Copies of texts and other instructional materials used in teaching the course.
(vii) The supplies required of students for the course.
(viii) The course schedule.
(ix) Copies of published descriptions of the course.
(x) The course instructor.
(5) Scholastic. An academic transcript for each student which must contain the following:
(i) The real estate education provider's name and Commission approval number.
(ii) The location at which the course was taught.
(iii) The name of the student.
(iv) The course title.
(v) The date that the student completed the course.
(vi) The number of hours of the course.
(vii) The student's final grade in the course, if an examination is required for the course.
(viii) The date that the transcript was issued.
(ix) The fact that the course will be accepted by the Commission towards fulfillment of the education requirement for either the real estate broker's examination or real estate salesperson's examination, as the care may be.
(6) Attendance.
(b) A real estate education provider shall store its records at its main location. Upon termination of operations, a real estate education provider shall transfer its records to the designated custodian of records. The real estate education provider shall notify the Commission whenever it changes the custodian of records.
(c) A real estate education provider shall produce its records for examination by the Commission or its representatives upon written request or pursuant to an inspection under § 35.362 (relating to inspection of real estate education providers).
(d) A real estate education provider shall make copies of a student's scholastic and attendance records available to the student upon request.
(e) A real estate education provider must retain attendance and scholastic records as follows:
(1) Continuing education records must be maintained for 4 years.
(2) All other records must be retained for 10 years.
§ 35.361. Display of documents and approved name.
(a) A real estate education provider's certificate of approval shall be displayed prominently at the real estate education provider's main location.
(b) A real estate education provider's approved name must be displayed prominently at each location where courses are taught.
(c) An alphabetical list of the real estate education provider's satellite locations shall be displayed prominently at the real estate education provider's main location.
§ 35.362. Inspection of real estate education providers.
(a) Routine inspections. No more than four times a year while classes are in session, the Commission or those authorized representatives may conduct a routine inspection of the main location or satellite location of a real estate education provider for the purpose of determining whether the real estate education provider is in compliance with §§ 35.351--35.363 (relating to administration of real estate education providers).
(b) Special inspections. In addition to the routine inspections authorized by subsection (a), the Commission or its authorized representatives may conduct a special inspection of a real estate education provider's main location or satellite location:
(1) Upon a complaint or reasonable belief that the real estate education provider is not in compliance with §§ 35.351--35.363.
(2) As a follow-up to a previous inspection that revealed the real estate education provider's noncompliance with §§ 35.351--35.363.
(c) Scope of inspection. Prior to the start of a routine or special inspection, the Commission or its authorized representatives will advise the real estate education provider, director or other person in charge at the time of the inspection that the inspection is being made under this section and is limited in scope by this section.
(d) During the course of a routine or special inspection or investigation, the Commission or its authorized representatives will be permitted to:
(1) Examine real estate education provider records.
(2) Inspect all areas of the real estate education provider's premises.
(3) Monitor the performance of instructors in classrooms.
(4) Interview the real estate education provider, director and other administrative personnel, instructors and students.
§ 35.363. Termination of operations.
A real estate education provider that desires to terminate operations shall submit to the Commission, within 60 days of the planned termination, a termination plan that includes the following:
(1) The date of termination.
(2) The date that real estate education provider records will be transferred to the designated records custodian.
(3) The procedure for refunding tuition and allocating credits to currently enrolled students.
Subchapter H. CONTINUING EDUCATION § 35.381. (Reserved).
§ 35.382. Requirement.
(a) Condition precedent to renewal of current license. A broker or salesperson who desires to renew a current license shall, as a condition precedent to renewal, complete 14 hours of Commission-approved continuing education during the preceding license period. The continuing education must be completed by the May 31 renewal deadline.
(b) Condition precedent to reactivation and renewal of noncurrent license. A broker or salesperson who desires to reactivate and renew a noncurrent license shall, as a condition precedent to reactivation and renewal, complete 14 hours of Commission-approved continuing education during the 2-year period preceding the date of submission of the reactivation application. A broker or salesperson may not use the same continuing education coursework to satisfy the requirements of this subsection and subsection (a).
(c) Exception. The continuing education requirement does not apply to cemetery brokers, cemetery salespersons, builder-owner salespersons, timeshare salespersons, campground membership salespersons and rental listing referral agents.
(d) Documentation. A licensee shall provide the Commission with information necessary to establish the licensee's compliance with this subchapter.
§ 35.383. Waiver of continuing education requirement.
(a) The Commission may waive all or part of the continuing education requirement of § 35.382 (relating to requirement) upon proof that the licensee seeking the waiver is unable to fulfill the requirement because of illness, emergency or hardship. The following are examples of situations in which hardship waivers will be granted.
(1) A licensee who seeks to renew a current license that was initially issued within 6 months of the biennial license period for which renewal is sought will be deemed eligible, on the basis of hardship, for a full waiver of the continuing education requirement.
(2) A licensee who seeks to renew a current license that was reactivated from noncurrent status within 6 months of the biennial license period for which renewal is sought will be deemed eligible, on the basis of hardship, for a full waiver of the continuing education requirement.
(3) A licensee who is a qualified continuing education instructor will be deemed eligible for the waiver of 1 hour of continuing education for each hour of actual classroom instruction in an approved continuing education topic. Duplicate hours of instruction in the same topic during the same biennial license period will not be considered for waiver purposes.
(b) Requests to waive the continuing education requirement must be filed with the Commission on or before March 31 of the renewal year unless the applicant proves to the satisfaction of the Commission that it was impracticable to do so.
§ 35.384. Qualifying courses.
(a) Except as provided in subsection (b), a licensee shall complete 14 hours of continuing education in acceptable courses in a minimum of 2-hour increments.
(b) The Commission may, for a given biennial license period and with adequate notice to licensees, require that all or part of the 14 hours be completed in required topics.
(c) Acceptable courses include the following:
(1) Real estate ethics.
(2) Laws affecting real estate.
(3) Real estate financing and mathematics.
(4) Real estate valuation and evaluation.
(5) Property management.
(6) Land use and zoning.
(7) Income taxation as applied to real property.
(8) Ad valorem tax assessment and special assessments.
(9) Consumer protection and disclosures.
(10) Agency relationships.
(11) Landlord-tenant laws.
(12) Environmental issues in real estate.
(13) Antitrust issues in real estate.
(14) Current litigation related to real estate.
(15) Legal instruments related to real estate transactions.
(16) Legalities of real estate advertising.
(17) Developments in building construction techniques, materials and mechanical systems.
(18) Real estate investment analysis.
(19) Management of real estate brokerage operations.
(20) Property development.
(21) Real estate securities and syndication.
(22) Real property exchange.
(23) Broker courses encompassing supervisory duties and standards of conduct and practice contained in Subchapter E (relating to standards of conduct and practice).
(24) Marketing promotion and advertising of real estate inventory.
(25) Use of technology in delivering real estate services.
(d) Unacceptable courses include: mechanical office and business skills; for example, typing, speed writing, preparation of advertising copy, development of sales promotional devices, word processing, calculator and computer operation and office management and related internal operations procedures that do not have a bearing on the public interest.
§ 35.385. Continuing education providers.
The following providers may offer instruction for continuing education:
(1) An accredited college, university or institute of higher learning, whether in this Commonwealth or outside this Commonwealth.
(2) A real estate education provider in this Commonwealth approved by the Commission.
(3) A real estate education provider outside this Commonwealth that has been approved by the real estate licensing authority of the jurisdiction where the real estate education provider is located.
§ 35.386. (Reserved).
§ 35.387. (Reserved).
§ 35.388. (Reserved).
§ 35.389. (Reserved).
§ 35.390. (Reserved).
§ 35.391. (Reserved).
§ 35.392. (Reserved).
[Pa.B. Doc. No. 04-2177. Filed for public inspection December 10, 2004, 9:00 a.m.]
No part of the information on this site may be reproduced for profit or sold for profit.This material has been drawn directly from the official Pennsylvania Bulletin full text database. Due to the limitations of HTML or differences in display capabilities of different browsers, this version may differ slightly from the official printed version.
