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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 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:
Sellers 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/landlords 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. Seller's agents may also
compensate buyer's agents and transactions licensees who do not 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 the
buyer/tenant. Buyer's agents owe the additional duties of:
- Loyalty to the buyer/tenant by acting in the buyer's/tenant 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 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.
- Confidentially, 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 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 the 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.
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