| Pennsylvania Law requires real estate
brokers and salespersons (licensees) to advise consumers 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.
Before you disclose any information to a licensee,
be advised that unless you select an agency relationship by signing a
written agreement providing for such a 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 timely manner, 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 the Real Estate Seller Disclosure Act. |
| Account for escrow and deposit funds. |
| Disclose all conflicts of interest in a timely
manner. |
| Provide assistance with document preparation and
advise the consumer regarding compliance with laws pertaining to
real estate transactions. |
| Advise the consumer to seek expert advise 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 licencee 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 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 a 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/tenant
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. |
| 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 licensee 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 of performs other act 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 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.
I acknowledge that I have
received the Consumer Notice:
______________________________________________
Signature
______________________________________________
Name and Date
Please print, sign
and fax to: 215-576-8677
Adopted by the State Real Estate
Commission at 49 Pa. Code §35.336.
Consumer Notice, 10/27/99
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