IS NOT A CONTRACT
an effort to enable consumers of real estate services to make informed decisions
about the business relationships they may have with real estate brokers and salespersons
(licensees), the Real Estate Licensing and Registration Act (RELRA) requires that
consumers be provided with this Notice at the initial interview.
may enter into the following agency relationships with consumers:
As a seller agent the licensee and the licensee's company works exclusively for
the seller/landlord and must act in the seller's/landlord's best interest, including
making a continuous and good faith effort to find a buyer/tenant except while
the property is subject to an existing agreement. All confidential information
relayed by the seller/landlord must be kept confidential except that a licensee
must reveal known material defects about the property. A subagent has the same
duties and obligations as the seller agent.
As a buyer agent, the licensee and the licensee's company work exclusively for
the buyer/tenant even if paid by the seller/landlord. The buyer agent must act
in the buyer/tenant's best interest, including 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, and must keep all confidential information, other than
known material defect about the property, confidential.
As a dual agent, the licensee works for both the seller/landlord and the
buyer/tenant. A dual agent may not take any action that is adverse or detrimental
to either party but must disclose known material defects about the property. A
licensee must have the written consent of both parties before acting as a dual
As a designated agent, the broker of the selected
real estate company designates certain licensees within the company to act exclusively
as the seller/landlord agent and other licensees within the company to act exclusively
as the buyer/tenant agent in the transaction. Because the broker supervises all
of the licensees, the broker automatically serves as a dual agent. Each of the
designated licensees are required to act in the applicable capacity explained
previously. Additionally, the broker has the duty to take reasonable steps to
assure that confidential information is not disclosed within the company.
addition, a licensee may serve as a Transaction Licensee.
transaction licensee provides real estate services without having any agency relationship
with a consumer. Although a transaction licensee has no duty of loyalty or confidentiality,
a transaction licensee is prohibited from disclosing that:
seller will accept a price less than the asking/listing price,
buyer will pay a price greater than the price submitted in the written offer,
- The seller or buyer
will agree to financing terms other than those offered.
licensees in agency relationships, transaction licensees must disclose known material
defects about the property.
of the business relationship selected, all licensees owe consumers the duty to:
reasonable professional skill and care which meets the practice standards required
by the RELRA.
- Deal honestly
and in good faith.
as soon as practicable, all written offers, counteroffers, notices and communications
to and from the parties. This duty may be waived by the seller where
the seller's property is under contract and the waiver is in writing.
with the Real Estate Seller Disclosure Law.
for escrow and deposit funds.
as soon as practicable, all conflicts of interest and financial interests.
assistance with document preparation and advise the consumer regarding compliance
with laws pertaining to real estate transactions.
the consumer to seek expert advice on matters about the transaction that are beyond
the licensee's expertise.
the consumer informed about the transaction and the tasks to be completed.
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.
following contractual terms are negotiable between the licensee and the consumer
and must be addressed in an agreement/disclosure statement:
duration of the licensee's employment, listing agreement or contract.
licensee's fees or commission.
scope of the licensee's activities or practices.
broker's cooperation with and sharing of fees with other brokers.
sales agreements must contain the property's zoning classification except 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 detail
about the Fund, Call (717)783-3658.
you disclose any financial information to a licensee, be advised that unless you
select a business relationship by signing a written agreement, the licensee is
NOT representing you. A business relationship is NOT presumed.