Current through Register Vol. 54, No. 44, November 2, 2024
(a) A written agreement between a broker and
a principal or between a broker and a consumer whereby the consumer is or may
be committed to pay a fee, commission or other valuable consideration shall
contain the following:
(1) Notification that
a Real Estate Recovery Fund exists to reimburse a person who has obtained a
final civil judgment against a Commonwealth 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 legal and equitable
remedies. Details about the Fund may be obtained by calling the Commission at
(717) 783-3658.
(2) Notification
that payments of money received by the broker on account of a sale-regardless
of the form of payment and the person designated as payee (if payment is made
by an instrument)-shall be held by the broker in an escrow account pending
consummation of the sale or a prior termination thereof.
(3) Notification that the broker's commission
and the duration of the agreement have been determined as a result of
negotiations between the broker, or a licensee employed by the broker, and the
seller/landlord or buyer/tenant.
(4) A description of the services to be
provided and the fees to be charged.
(5) Notification about the possibility that
the broker or any licensee employed by the broker may provide services to more
than one party in a single transaction, and an explanation of the duties owed
to the other party and the fees which the broker may receive for those
services.
(6) Notification of the
licensee's continuing duty to disclose in a reasonably practicable period of
time any conflict of interest.
(7)
In an agreement between a broker and a seller/landlord, a statement regarding
cooperation with subagents and buyers agents, a disclosure that a buyer agent,
even if compensated by the listing broker or seller/landlord will represent the
interests of the buyer/tenant and a disclosure of any potential for the broker
to act as a dual agent.
(8) In an
agreement between a broker and a buyer/tenant, an explanation that the broker
may be compensated based upon a percentage of the purchase price, the broker's
policies regarding cooperation with listing brokers willing to pay buyer's
brokers, a disclosure that the broker, even if compensated by the listing
broker or seller/landlord will represent the interests of the buyer/tenant and
a disclosure of any potential for the broker to act as a dual agent.
(b) To the extent that any of the
information required in subsection (a) is set forth in the disclosure summaries
in §§
35.336-35.338 (relating to disclosure
summary for the purchase or sale of residential or commercial real estate or
for the lease of residential or commercial real estate when the licensee is
working on behalf of the tenant; disclosure summary for the lease of
residential or commercial real estate when the licensee is working on behalf of
the owner; and disclosure summary for time-share estates), those provisions
need not be repeated, but may be incorporated by reference.
The provisions of this §35.331 issued under the
Real Estate Licensing and Registration Act (63 P. S. §§
455.101-455.902); amended under sections 404, 606-606.6 and 608-608.3 of the
Real Estate Licensing and Registration Act (63 P. S. §§
455.404, 455.606-455.606f and
455.608-455.608c).
This section cited in 49 Pa. Code §
35.281 (relating to putting
contracts, commitments and agreements in writing); and 49 Pa. Code §
35.332 (relating to exclusive
listing agreements).
