CONSUMER
NOTICE
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:
• 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.
COPIES: GREEN–CONSUMER; WHITE–BROKER 4/02
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.
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