Consumer Notice
Pennsylvania Law requires real estate brokers and
salespersons (licensees) to advise consumers who are seeking to sell or
purchase residential or commercial real estate or tenants who are
seeking to lease residential or commercial real estate where the
licensee is working on behalf of the tenant of the business
relationships permitted by the Real Estate Licensing and Registration
Act. This notice must be provided to the consumer at the first contact
where a substantive discussion about real estate occurs unless an oral
disclosure has been previously provided. If the oral disclosure was
provided, this notice must be provided at the first meeting or the
first time a property is shown to the consumer by the broker or salesperson. Before
you disclose any information to a licensee, be advised that unless you
select an agency relationship the licensee is NOT REPRESENTING YOU. A
business relationship of any kind will NOT be presumed but must be
established between the consumer and the licensee.
Any licensee who provides you with real estate services owes you the
following duties:
• 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.
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.
