49 Pa. Code § 35.281. Putting contracts, commitments and agreements in writing.

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.

Authority

   The provisions of this §  35.281 issued under the Real Estate Licensing and Registration Act (63 P. S. § §  455.101—455.902); amended under sections 404, 602, 606—606.6 and 608—608.3 of the Real Estate Licensing Registration Act (63 P. S. § §  455.404, 455.602, 455.606—455.606f and 455.608—455.608c).

Source

   The provisions of this §  35.281 adopted February 24, 1989, effective February 25, 1989, 19 Pa.B. 781; amended November 17, 2000, effective November 18, 2000, 30 Pa.B. 5954; amended March 29, 2002, effective March 30, 2002, 32 Pa.B. 1644. Immediately preceding text appears at serial page (271735).

Cross References

   This section cited in 49 Pa. Code §  35.286 (relating to retention and production of records).

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