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THIS IS NOT A CONTRACT
Pennsylvania Law requires real estate brokers and
salespersons (licensees) to advise consumers who are seeking to sell or
purchase residential or commercial real estate or tenants who are seeking to
lease residential or commercial real estate where the licensee is working on
behalf of the tenant of the business relationships permitted by the Real
Estate Licensing and Registration Act. This notice must be provided to
the consumer at the first contact where a substantive discussion about real
estate occurs unless an oral disclosure has been previously provided. If
the oral disclosure was provided, this notice must be provided at the
first meeting or the first time a property is shown to the consumer by the
broker or salesperson.
Before
you disclose any information to a licensee, be advised that unless you
select an agency relationship the licensee is NOT REPRESENTING YOU. A
business relationship of any kind will NOT be presumed but must be
established between the consumer and the licensee.
Any licensee who provides you with
real estate services owes you the following duties:
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Exercise reasonable professional
skill and care which meets the practice standards required by the Act.
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Deal honestly and in good faith.
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Present, in a reasonably practicable
period of time, all offers, counteroffers, notices, and communications to
and from the parties in writing. The duty to present written offers and
counteroffers may be waived if the waiver is in writing.
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Comply with Real Estate Seller
Disclosure Act.
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Account for escrow and deposit
funds.
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Disclose all conflicts of interest
in a reasonably practicable period of time.
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Provide assistance with document
preparation and advise the consumer regarding compliance with laws
pertaining to real estate transactions.
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Advise the consumer to seek expert
advice on matters about the transaction that are beyond the licensee’s
expertise.
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Keep the consumer informed about the
transaction and the tasks to be completed.
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Disclose financial interest in a
service, such as financial, title transfer and preparation services,
insurance, construction, repair or inspection, at the time service is
recommended or the first time the licensee learns that the service will be
used.
A licensee may have the following
business relationships with the consumer:
Seller Agency:
Seller agency is a relationship where the
licensee, upon entering into a written agreement, works only for a
seller/landlord. Seller’s agents owe the additional duties of:
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Loyalty to the
seller/landlord by acting in the seller’s/landlord’s best interest.
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Confidentiality, except that
a licensee has a duty to reveal known material defects about the property.
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Making a continuous and good
faith effort to find a buyer for the property, except while the
property is subject to an existing agreement.
Disclosure to
other parties in the transaction that the licensee has been engaged as a
seller’s agent.
A seller’s agent may compensate other
brokers as subagents if the seller/landlord agrees in writing.
Subagents have the same duties and obligations as the seller’s agent.
Seller’s agents may also compensate buyer’s agents and transaction licensees
who do not have the same duties and obligations as seller’s agents. If
you enter into a written agreement, the licensees in the real estate company
owe you the additional duties identified above under seller agency. The
exception is designated agency. See the designated agency section in this
notice for more information.
Buyer Agency:
Buyer agency is a relationship where the
licensee, upon entering into a written agreement, works only for the
buyer/tenant. Buyer’s agents owe the additional duties of:
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Loyalty to the buyer/tenant
by acting in the buyer’s/tenant’s best interest.
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Confidentiality, except that
a licensee is required to disclose known material defects about the
property.
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Making a continuous and good
faith effort to find a property for the buyer/tenant, except while the
buyer 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:
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:
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Taking reasonable care to protect
any confidential information disclosed to the licensee.
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Taking responsibility to direct and
supervise the business activities of the licensees who represent the
seller and buyer while taking no action that is adverse or detrimental to
either party’s interest in the transaction.
The designation may take place at the
time that the parties enter into a written agreement, but may occur at a
later time. Regardless of when the designation takes place, the
employing broker is responsible for ensuring that confidential information
is not disclosed.
Transaction Licensee:
A transaction licensee is a broker or
salesperson who provides communication or document preparation services or
performs other acts for which a license is required WITHOUT being the
agent or advocate for either the seller/landlord or the buyer/tenant.
Upon signing a written agreement or disclosure statement, a transaction
licensee has the additional duty of limited confidentiality in that the
following information may not be disclosed:
Other
information deemed confidential by the consumer shall not be provided to the
transaction licensee.
OTHER INFORMATION ABOUT REAL ESTATE TRANSACTIONS
The following are negotiable and shall be addressed in an
agreement/disclosure statement with the licensee:
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The duration of the employment,
listing agreement or contract.
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The fees or commissions.
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The scope of the activities or
practices.
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The broker’s cooperation with other
brokers, including the sharing of fees.
Any sales agreement must contain the
zoning classification of a property except in cases where the property is
zoned solely or primarily to permit single family dwellings. A Real Estate
Recovery Fund exists to reimburse any person who has obtained a final civil
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. |
Brad
Tinkham