Consumer Notice
Consumer Notice --Print this, sign and fax to us at 570-254-6728
Business Relationship Agreement --- Unless you want your Agent to represent the interests of the seller only, this form should be signed. The relationship can be for 1 day to 1 year. You decide.
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New Law Impacts Practice of Real Estate in PA
HARRISBURG, PA, November 16, 1999-A new law goes into effect November
25, 1999 that will affect the way real estate is practiced in Pennsylvania. The
"Agency Disclosure" law helps consumers by clarifying up front and in writing
who works for whom in a real estate transaction and letting consumers know
what options for service are available. Pennsylvania joins 47 other states in
clarifying agency relationships between consumers and real estate
practitioners.
The new law is beneficial in that it requires clear and timely disclosure in the
form of a written notice that a consumer is to receive at initial contact. This
notice will enable buyers, sellers, lessors and lessees to make informed
decisions.
Under the new law, all licensed real estate professionals (licensees) may
serve consumers in the following relationships:
Seller Agency-in this relationship, the licensee works only for the seller,
owing the seller client loyalty, confidentiality and a good faith effort to find a
buyer for the property.
Buyer Agency-in this relationship, the licensee works only for the buyer,
owing the buyer client loyalty, confidentiality and a good faith effort to find a
property for the buyer.
Dual Agency-in this relationship, the licensee acts as the agent for both the
seller and the buyer in the same transaction, with the consent of all parties.
Real estate companies have buyer and seller clients; it is not always
possible to predict when a buyer client will choose to buy a property from a
seller client. While this may put the agent in the middle, it does assure that
sellers have the greatest exposure for their properties and that buyers can
make selections from the entire market. A dual agent must provide services
fairly without promoting either party's interests over the other.
Designated Agency-created for the in-house transaction where both buyer
and seller are represented by individual agents in the same company. It
allows the agent selected by the buyer to continue representing the buyer's
interest while the agent selected by the seller continues to represent the
seller's interests. This allows the consumers to retain the services they
sought when choosing real estate agents to advocate for them.
Transaction Licensee-in this relationship, the licensee provides
communication or document preparation services, or similar real estate
related services without being an agent or advocate for either the seller or the
buyer. A transaction licensee could not disclose the fact that the seller will
accept a price less than the asking price, or any other information deemed
confidential by the consumer.
If you are a consumer seeking real estate services, what does this mean to
you? First, you can expect to sign the Consumer
Notice form, which outlines
your options for representation. In requesting the signed form, licensed real
estate professionals are doing their job and fulfilling the requirements of the
law. Even if you are attending open houses, you will be asked to sign the
form.
The form is not a contract and does not commit the consumer to any
relationship. Once you select the relationship you need or desire, you will
sign another form indicating your permission for
such a relationship and the
duties owed to you.
Consumers can direct questions to their real estate agent. More information
is also available on PAR's website: www.parealtor.org.
The Pennsylvania Association of REALTORSŪ (PAR) supported the Agency
Disclosure Bill, which passed unanimously in both the Pennsylvania House
and Senate before becoming a law. PAR is a 26,000-member professional
association serving the Pennsylvania real estate industry. Members of the
REALTORŪ organization at the local, state, and national levels are privileged
to use the REALTORŪ designation, which distinguishes them from
non-member brokers and salespersons and indicates that they subscribe to a
strict Code of Ethics.