Pennsylvania Real Estate Law

Records of broker must include

date and from whom received, deposit date, withdrawal date, name on account, whom the money belongs too, how records are available for inspection by commission,

how records are available immediately after demand

Where does property management broker hold rent?

Rental management account separate from broker's escrow account and general business account

Under what condition may broker deposit additional money into escrow account?

Service charges

What must occur before placing advertisement sign on property?

Written authorization of owner, lessor, or their agent

Who receives copies of any written agreement at time of signing?

All signatories

Where is termination date specified?

on listing agreement, DOES NOT need prior notice

What is the only way of accepting commission or valuable consideration?

Through employing broker

Can a licensee purchase for themselves if property is listed with their office?

Yes, with disclosure either directly or through a third party

Nolo Contendere

plea of no contest

What must be included in a mail or phone offering?

statement of fair market value of prize, clear and common words and language, statement of value and odds printed clearly, substitutions

What must be included if prize is a rebate?

A statement of the fact, any fees clearly disclosed

Prize defined as but not limited to..

money, personal property, vacations, travel, certificates, motor vehicles, appliances

4 characteristics of all real estate licensees

faith, honesty, trustworthiness, competency

Title 9 Pennsylvania Consolidated Statutes

Regarding burial grounds and cemetery real estate

Information given at initial interview

- Disclosure

- Statement of consumer right to enter into negotiated agreement on fee and services

- statement identifying that broker may provide services to multiple consumers

- statement may designate one plus licensees to represent separate parties

- statement of broker's policies about cooperation with other brokers (sharing fees)

- statement that buyer's broker paid in fee that is % of purchase price

- Duration of listing agreement

- any sales agreement must contain zoning classification

- Purpose of Real Estate Recovery Fund and contact of commission

Real Estate economic characteristics (D.U.S.T.S)

Demand, Usability, Scarcity, Transferability, Situs

Real Estate Physical Characteristics

Immobility, Indestructibility, non homogeneity

Bundle of Rights

all legal rights to real property (right to sell, use, lease, encumber, exclude, occupy, share, trade, license, dedicate)

Physical Characteristic rights of Real Property

Subsurface, surface, air, water, natural, crops and plants

Difference between fixture and personal property.

Fixture is affixed (installed appurtenance), once personal property is made into real property

Trade Fixture

property of commercial tenant that is installed but necessary for business

Requirements for Trade Fixture

landlord permission, personal property, removal by end of lease

Real Estate

any interest in land, whether corporeal, incorporeal, freehold or non freehold, whether land is situated in Commonwealth or elsewhere including leasehold interests.

PA Real Estate Commission members

11 members; Commissioner or Professional Occupational Affairs, Director of Bureau of Consumer Protection, 5 brokers, 3 public representatives, cemetery broker

Commissioners appointment and term

appointed by governor, 5 year term

Real Estate Commission duties include

- issue licenses, registration certificates

- approve RE schools

- make provisions for exams of candidates

- issue regulations

- make rules for continuing ed.

- administrate all laws of commonwealth regarding RE, cemetery companies, campground memberships

Who does NOT need a license to sell?

owner, attorney in fact, employee of utility company, oil discovery business, trustee, guardian, administrator acting under court direction, bank officer, auctioneer (under employment), some cemetery employees, some property managers

Who handles real estate complaints?

Complaints Office, division of PA Dept of State on behalf of commission

Order to Show Cause

prosecuting attorney initiates this action is complain shows probable cause

How long does respondent have to file an answer and schedule a hearing after Order to Show Cause?

30 days

Consent Agreement and Order

resolve the issue without a public hearing

What disciplinary actions can the Commission take?

Reprimand, Suspension, Revoke, Fine, Imprisonment (of unlicensed)

The Real Estate Recovery Fund mission

to help consumers who have suffered fraud, misrepresentation, and deceit in a RE transaction.

Aggrieved person

person filing the charge

How much may the Fund pay an aggrieved person?

Aggrieved may be paid between $20,000-$100,000 per licensee

Until when is the licensee suspended in case of Recovery Fund?

until Fund has been reimbursed for amount plus 10% interest

8 licenses issued by Department of State

Salesperson, Rental listing Referral Agent, Builder/Owner Salesperson, Time Share Salesperson, Cemetery Broker, Cemetery Salesperson, Broker, Campground Membership Salesperson

Licenses requiring PSI testing for which roles?

Salesperson, Cemetery broker, broker, Rental listing referral agent, builder/owner salesperson

What is the most important criteria in obtaining PA RE License?

Trustworthiness, Honesty, Integrity, Competence

Salesperson

anyone who serves licensed under direct supervision of broker

Time frame to apply for license after passing PA RE Exam

3 years

Broker

can be either individual or entity (several broker's licenses are held in company)

Registration of Promotional Land Sales

promoter must register with Commission and resubmit statement of record each year (for renewal)

Broker to Associate Broker process

submit original license, receive associate license, applications, fees

Requirements for Broker and Rental Referral Agent

fixed business license, subject to inspection, supervising all associated offices

How many offices may a rental referral agent supervise?

Only 1

Promotional Land Sales rule does NOT apply to

Property within or outside Commonwealth if property is subject to Federal Interstate Land Sales Full Disclosure Act

Promotional Real Estate

interest in property which is part of common promotional plan undertaken by developer

If application for promotional land sales is rejected?

applicant has 20 days to request hearing before commission

Broker of Record

in partnership, they are responsible for employees while broker directly supervises all licenses employed

How often are PA Licensees required to renew licenses?

every 2 years of even numbered years (or else inactive)

Which licensees do NOT need to continue education for renewal?

cemetery brokers/association brokers/multiple license brokers/salespeople, rental listing referral agents, campground membership salespeople, builder/owner salespeople, timeshare salespeople

Continued Education requirements

14 hours of course approved by Commission to benefit public (not office administration courses)

When are continued education requirements waived by Commission?

Applicants in times of hardship

Broker of record death

corporate officer notifies Commission within 15 days of death with statement of new broker of record

Listing regulations for Sole Proprietor broker death

No new listings permitted and all current listings expire after 90 days, no new hires

Who notifies Commission of Sole Proprietor's illness?

Attorney within 15 days

Disclosure recipients

All signatories, timeshare sellers/buyers, commercial tenants

Advertising key points

Nickname only if on license, name of brokerage on all ads, all names and numbers must be of equal size,

Escrow Account

entrusted account solely cared for by Broker

When can a broker waive responsibility of escrow?

never

When a sale is co-brokered, who handles the escrow money?

Listing Broker

When may escrow money be placed in an interest bearing account?

after held for 6 months (broker does not collect interest)

When escrow money is in dispute who handles money?

Broker retains money in account until settled or turn over to county court to interplay case

Fiduciary

accountable to broker (Acting on their behalf)

Law of Agency

body of laws which relate to relationship between agent and principal. Agent has authorization to represent and act on party while principal chooses to be represented by agent.

Consumer Notice

describes various business relationship choices that they may have with a licensee administered by Commission, given at initial interview

sales contract

b/w seller and buyer to buy property, including zoning of property unless dedicated to single family homes, highway occupancy permit

Statement of estimated cost and return

prepped by broker before sales contract is completed for principal with accurate statements

Exclusive Listing agreement

exclusive right to sell or listing agreement

Timeshare and Campground membership cancellations

purchaser has until midnight on the 5th day following the date they executed purchase contract to cancel

Comparative market analysis

homes that compare to seller's home to determine probable asking price for home. Buyer can use this to determine offer.

Rental Listing Referral Agreement

must include statement which says to tenant that this is a service and does not include a guarantee

Exclusive Listing Agreement MAY NOT INCLUDE

listing period longer than a year, auto renewal clause, cancellation notice at end of listing, authority for broker to sign for anyone, authority of broker to confess judgment against owner in event of sale

Pennsylvania Human Relations Act

Administered by Human relations commission to provide direction and prevent discrimination in residential and commercial real estate

Housing for older adults key elements

assist elderly, 62 years old and up, at least one operating person 55 per unit, 80% units occupied by someone 55,

Difference between PA and Federal Acts

1) 'up to four' unites under federal law does not apply unless building has common entrance or is a single sex dorm

2) Commercial real estate is included, there is no exception

3) owning of no more than 3 single family homes in one year exemption is not permitted in PA

PA Transfer Tax

charged on all transfers of property unless noted in exceptions. 1% for county, 1% for municipality where located.

PA Cemetery Statutes

Title 9 Unconsolidated (Burial Grounds and Title Consolidated Statutes (Burial grounds and registration of cemetery companies)

Real Estate Seller Disclosure Act (Title 68 Unconsolidated PA Statutes Real and personal Property Act)

Requires that seller discloses material facts and defects that are known to seller

Qualified Association

Corporation limited liability partnership, limited partnership or limited liability company organized under Commonwealth or another Jurisdiction

Qualified Associations may NOT

possess real estate licenses or hold itself out to public to provide real estate services

Escrow Account 2009 changes

Release of escrow funds for a prior agreement in writing to dispose funds in event of dispute over title OR receipt of instructions in writing signed by all parties at any time for broker to release some or all funds