CONSUMER NOTICE CN
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.