§ 35.336. Disclosure
summary.
(a) The Disclosure Summary shall be entitled ''Consumer
Notice'' and shall be in the following format available from the Commission office upon
request by phone, fax or internet:
CONSUMER NOTICE
THIS IS NOT A CONTRACT
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 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 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/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 isdesignated 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 an
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.
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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ACKNOWLEDGMENT
I acknowledge that I have received this disclosure.
