Rules Regs and Real Estate Act

How many regularly scheduled meetings of the commission in one year?

3 Total Pittsburgh, Philadelphia Harrisburg.

Acting without a license Exclusions

4. Exclusions. Except as otherwise provided in this act, the provisions of this act shall not apply to the following: (1) An owner of real estate with respect to property owned or leased by such owner. In the case of a partnership or corporation, this exclusion shall not extend to more than five of its partners or officers, respectively, nor to other partnership or corporation personnel or employees. (2) The employees of a public utility acting in the ordinary course of utility-related business under the provisions of Title 66 of the Pennsylvania Consolidated Statutes (relating to public utilities), with respect to negotiating the purchase, sale or lease of property. (3) The officers or employees of a partnership or corporation whose principal business is the discovery, extraction, distribution or transmission of energy or mineral resources, provided that the purchase, sale or lease of real estate is a common and necessary transaction in the conduct of such principal business. (4) The services rendered by an attorney-in-fact under an executed and recorded power of attorney from the owner or lessor (provided such power of attorney is not utilized to circumvent the intent of this act) or by an attorney at law. (5) A person acting as trustee in bankruptcy, administrator, executor, trustee or guardian while acting under a court order or under the authority of a will or of a trust instrument. (6) The elected officer or director of any banking institution, savings institution, savings bank, credit union or trust company operating under applicable Federal or State laws where only the real estate of the banking institution, savings institution, savings bank, credit union or trust company is involved. (7) Any officer or employee of a cemetery company who, as incidental to his principal duties and without remuneration therefor, shows lots in such company's cemetery to persons for their use as a family burial lot and who accepts deposits on such lots for the representatives of the cemetery company legally authorized to sell the same. (8) Cemetery companies and cemeteries owned or controlled by a bona fide church or religious congregation or fraternal organization or by any association created by a bona fide church or religious organization or by a fraternal organization. (9) An auctioneer licensed under the act of September 29, 1961 (P.L.1745, No.708), known as "The Auctioneers' License Act," while performing authorized duties at any bona fide auction. (10) Any person employed by an owner of real estate for the purpose of managing or maintaining multifamily residential property: Provided, however, That such person is not authorized or empowered by such owner to enter into leases on behalf of the owner, to negotiate terms or conditions of occupancy with current or prospective tenants or to hold money belonging to tenants other than on behalf of the owner. So long as the owner retains the authority to make all such decisions, the employees may show apartments and provide information on rental amounts, building rules and regulations and leasing determinations. (11) The elected officer, director or employee of any banking institution, savings institution, savings bank, credit union or trust company operating under applicable Federal or State laws when acting on behalf of the institution in performing appraisals or other evaluations of real estate in connection with a loan

how long is the term for each member of the Real Estate Commission?

5 years

Advertising 11

Advertisements and Relationships with Educational institutions Real Estate companies, franchises or networks may promote, endorse or advertise its association, affiliation or connection to a real estate education provider or a college, university or institute of higher learning so long as: The association, affiliation, or connection (including ownership interests) is disclosed in all promotions, endorsements and advertisements. Ownership means having a proprietary or beneficial interest through which the real estate company earns income or produces a direct or indirect economic benefit. Example: Academy of Real Estate is owned and operated as part of ABC Realty. ABC is its sole owner and receives all profit from the school as well as recruitment of licensees.

"Associate broker."

A broker employed by another broker.

A cemetery broker

A cemetery broker is a person engaging in or carrying on the business in the capacity of a broker within the Commonwealth exclusively within the limited field or branch of business which applies to cemetery lots, plots and mausoleum spaces or openings. (201 Definitions)

Advertising 10

Advertisement of Sales Volume, Market Position and Numbers of Offices When a broker advertises "Sales Volume" or production, it can only mean a closed transaction. That means a closed transaction is either a listing sold or a sale made after a deed is delivered. When the broker advertises about his production or Market Position in the market, he must identify the municipality that the market comprises. When the broker advertises number of branches that he operates, these are only the offices that have been issued branch licenses by the Commission.

time-share does not include

Campground membership

Advertising 3

Harassment: A licensee may not, whether acting on the behalf of another or not, solicit- by personal contact, telephone, mail or advertising- the sale of or other disposition of real estate with such frequency as to amount to clear harassment of the owner or other person who controls the sale or disposition of the real estate.

section 202 State Real Estate Commission the state Real Estate Commission shall consist of Part 1

Real Estate Commission shall consist of the Commissioner of professional and occupational affairs; Director of the Bureau of consumer protection or his designee; 3 members who shall be persons representing the public at large;

The Department Duties

The Department is the Department of State acting through the Commissioner of Professional Occupational Affairs. The Department is the administrative wing to the Commission. It is the duty of the Department to: Arrange for the services of professional testing services to write and administer examinations on behalf of the Commission with Commission guidance and approval. Issue license and registration certificates to any person who complied with the Real Estate Act.

The Director of the Bureau of Consumer Protection represents

The Director of the Bureau of Consumer Protection represents the Bureau of Consumer Protection. The director may appoint a designee to serve for this position on the Real Estate Commission. The Bureau of Consumer Protection is authorized to: Investigate commercial and trade practices affecting consumers; Conduct studies, investigation and research affecting consumers' interests; Advise the legislature on matters of consumer interest; Investigate fraud and deception in the sale, servicing and furnishing of goods and products and strive to eliminate such illegal practices; Promote consumer education on consumer fraud, deception and misrepresentation.

What are the The Responsibilities of the Real Estate Commission

The Responsibilities of the Real Estate Commission Through the assistance of the Department of State, the Pennsylvania Real Estate Commission has the following responsibilities. The Commission: approves schools who seek to teach real estate courses. is empowered to prescribe the subjects to be tested. promulgates rules or regulations in order to administer and make effective the purposes of the Real Estate Act. adopts, promulgates and enforces rules and regulations consistent with the provisions of continuing education. approves courses, materials, locations and instructors for continuing education.. informs licensees of the continuing education requirement prior to renewal time. administers and enforces the laws of Pennsylvania relating to: activities which require licensing and prosecutions for unauthorized or unlawful practices; activities involving cemeteries and cemetery companies and prosecutions for unauthorized or unlawful practices; activities involving campground memberships and prosecutions for unauthorized or unlawful practices. holds hearings to determine if any violation of the Act has occurred. conducts periodic inspections. prosecutes, adjudicates, fines and sanctions violators. The Responsibilities of the Real Estate Commission (cont'd) sets fees as required, subject to review by the BPOA. Fees will be increased if not sufficient to match expenses over a two-year period. submits an annual report to the Professional License Committee of the House and to the Consumer Protection and Professional Licensure Committee of the senate. gives a description of the types of complaints received, a status of cases, actions taken and length of time from initial complaint to final resolution. prepares a budget request for the upcoming fiscal year 15 days after the Governor has submitted his budget to the General Assembly. has the ability to fine a civil penalty of up to $1000 on any current licensee or any person who acts as a licensee without the required license. administers and enforces the state laws relating to cemetery companies, campground memberships, and has the ability to prosecute for unauthorized or unlawful acts. revisits licensing standards in order to keep pace with the changes in the profession and advises the legislature about the proposed changes.

listing broker

a broker engaged as a seller's agent, dual agent or transaction licensee to market sellers/landlord property

subagent

a broker not in the employ of the listing broker who is engaged to act for the listing broker in selling property as an agent of the seller. A subagent is deemed to have a relationship with the seller

principal

a consumer of real estate services who has entered into an agency relationship with a broker

builder-owner salesperson

a full-time employee of the builder owner authorized to list, sell, or negotiate the sale or exchange of real estate, rent, or offer to lease for rent any real estate owned by his employer authorized to collect rent , offer, for employer/owner

transactional licensee

a licensed broker/salesperson who provides communication or document services of a broker or salesperson without being an agent or advocate of the consumer

dual agent

a licensee who acts as an agent for the buyer and seller or licensee and landlord in the same transaction

consumer

a person who is the recipient of any real estate service

comparative market analysis

written in knowledge does, opinion by buyers agent, transactional licensee, or sellers agent relating to sale price of real estate identified specifically

Who must have a license

you must have a license to act directly or indirectly, to advertise or conduct business, or act in the capacity of a broker or salesperson, cemetery broker, cemetery salesperson, campground

who points each member of the Real Estate Commission?

the governor

time-share

the right to use or occupy units on a periodic basis according to an arrangement

Cemetery

A place for disposal or burial of deceased human beings, by cremation or grave, mausoleum, vault, columbarium or other receptacle, but the term does not include a private family cemetery.

"Agency relationship."

A relationship whereby the broker or licensees in the employ of the broker act as fiduciaries for a consumer of real estate services by the express authority of the consumer of real estate services.

Advertising 7

Advertisement of Lotteries, Contests, Prizes, Certificates, Gifts and Lots. Section 604 18 states: (cont'd) Substitutions of prizes of equal or greater fair market value may be used if the offeror complies with the rest of this section. The term prize in this section refers to (but is not limited to) money, personal property, vacations, travel certificates, motor vehicles or appliances.

Advertising 6 Advertisement of Lotteries, Contests, Prizes, Certificates, Gifts and Lots.

Advertisement of Lotteries, Contests, Prizes, Certificates, Gifts and Lots. Section 604 of the Act, Unit 18, specifically refers to the use of advertisements for lotteries and gifts. This section specifically addresses the issue of licensees who use these gifts for the purpose of influencing consumers by deceptive conduct. The Commission is charged with the responsibility to promulgate rules and regulations to provide standards for nondeception conduct under this section. Section 604 18 states: Any offering by mail or phone of any gift in relation to the offering of sale of real property, including time share, must be accompanied by a statement of fair market value, not suggested retail value, of all prizes offered plus the odds of winning such a prize. If the ad is sent by mail, the statement of value and odds must be printed in a CLEAR and CONSPICUOUS manner. If the prize is a rebate, coupon or discount certificate, a statement must be included as well as a statement about any fees and the maximum amount that the prizewinner must pay in order to receive the prize. Fees include, but are not limited to, such items as dealer prep, shipping and handling etc. If the offering is by mail, it must be written clearly using common words and terms. It must include a concise description of the property and if it is a time share. If the prospective prizewinner must personally visit and inspect the property and listen to a sales presentation to win, the offering must state that fact. The ad may contain instructions to contact a certain telephone number within a specified time or by a specified date, if the offeror identifies the business entity and its relationship to the offer complies with the rest of the paragraph.

Advertising 1

Advertising Advertising includes business cards, newspapers, TV ads, lawn signs, billboards, car signs, radio ads or any type of communication that advertises the broker or property for sale, lease etc. by the broker. The broker must: Have the authority of the seller or lessor of the property to advertise the property. Have the authority of the lessor or property manager to advertise the rental. Not publish information as a rental listing referral agent about the rental on a list if the lessor or property manager expressly states that the property is not to be included in lists prepared by rental listing referral agents. Use the brokerage company name, including sole proprietorships, cemetery companies, and rental listing referral companies or brokerages that hold themselves out to the public as real estate companies Include nick names that will be used in advertising (such as Jack instead of John) on licensure applications or biennial renewal applications. Have all associate brokers, salespersons, cemetery associates or cemetery salespersons use the brokerage business name of the employing broker in all advertising. The names and the telephone numbers shall be of equal size.

Advertising 2

Advertising (cont'd) A licensee who sells or leases his own property must disclose that he is a real estate licensee in advertisements for the property. This does not apply if the property is listed with a real estate company.

Advertising 5 Advertising in the Business Name

Advertising in the Business Name The Commission demands that all licensees advertise in the business name selected by the licensee and that the broker's business name is the name that appears in the advertisement. That means if the business name is ABC, INC. on the license, that must be the name shown on any advertisement. The Commission and the public must know who it is that is advertising. Whatever type of brokerage company is advertising, whether sole proprietorships, cemetery companies or rental listing referral agencies as well as corporations, partnerships, or associations must use the name that it listed on the license. Individuals such as brokers of record, salespersons, cemetery associate brokers, cemetery salespersons and rental listing agents who want to use nicknames such as "Jack" instead of John must include the nick name as well as the real name on their license applications and renewal applications. Individuals such as associate brokers, salespersons, cemetery associate brokers or cemetery salespersons who wish to advertise must include the business name and telephone number of the employing broker. The name and telephone numbers must be the same size and must be the phone number used by the broker, not a direct line phone to a specific salesperson or associate broker. This section is designed to promote both broker supervision and must not give the impression that the salesperson or associate broker, both of whom are employed by an employing broker, are self-employed. The Commission and the public must know which broker (including corporation, partnerships or associations) is advertising! The name of the listed on the license must be used!

Campground membership

An employee or an independent contractor sells or offers to sell campground memberships under the active supervision of a broker. A person licensed as a broker, as a salesperson or as a time-share salesperson shall not be required to be licensed as a campground membership salesperson.

Broker Description Part 2

Broker manages any real estate; Broker represents as consultant, counselor or agent Performs comparative market analysis

Department

the Department of State acting through the Commissioner of professional and occupational affairs

Advertising 4 Discriminatory Advertising

Discriminatory Advertising Panic selling, panic peddling or block busting are all names for unscrupulous agents going into neighborhoods, trying to panic sellers into selling. The usual line is that "Someone is moving in, and you had better get out before your house value drops." This is discriminatory advertising used by agents to profit from quick sales. This is expressly forbidden by Fair Housing Acts and the Pennsylvania Human Relations Act as well as Professional and Vocational Standards, Department 35, 303. Discriminatory advertising will be considered by the Commission as bad faith which can lead to the loss of license in addition to Federal charges. Proof of systematic solicitation of sales listings may be considered sufficient, but not conclusive, evidence of an attempt to bring about panic selling.

Advertising 12

Internet Advertising As the world changes, so does the real estate business and now the Internet is a major player in the advertisements of brokers. Here are the recently published directives for Internet Advertising. A licensed firm advertising on the Net must include on EACH PAGE the following information: The company's name as registered with the Real Estate Commission (abbreviations are not permitted); The city, state/province, and *country where the firm's main office is located; The regulatory jurisdiction in which the firm holds a real estate broker's license (*including the license number). A licensee advertising or marketing on a site on the net must include on EACH PAGE the following: The licensee's name; The name of the firm with which the licensee is affiliated; The city, state and *country in which the licensee's office located; The regulatory jurisdiction in which the licensee holds a real estate broker or salesperson license (*including the license number). A licensed firm using any Internet electronic communication for advertising or marketing must include the following data: The name of the firm with which the licensee is affiliated as the firm is registered with the Commission; The city, state/province and *country in which the licensee's office is located; The regulatory jurisdiction in which the licensee holds a broker's license (*including the license number). A licensee using any Internet electronic communication for advertising or marketing must include the following data: The licensee's name; The name of the firm with which the licensee is affiliated as the firm is registered with the Commission; The city, state/province and *country in which the licensee's office is located; The regulatory jurisdiction in which the licensee holds a broker's license (*including the license number). * Although not required, strongly recommended.

What is the Bureau purpose

Its purpose is to provide administrative, logistical and legal support services to the Pennsylvania Real Estate Commission in its function as a licensing board.

Advertising 8

Rules and Regulations Promulgated by the Commission to Regulate Advertisement of Lotteries, Contests, Prizes, Certificates, Gifts and Lots As required by Chapter Six, 604, the Commission has created these rules and regulations regarding the advertisements of lotteries, contests, prizes, certificates, gifts and lots. Each advertisement by a licensee for the solicitation, sale or offering for sale of real estate that uses lotteries, contests, or offers prizes, certificates or free lots must contain: A description of each prize, certificate, gift or lot offered; The requirements for winning these prizes; The limitation on the number of prizes, etc. offered; The Fair Market Value*of each prize, etc. offered and if the advertisement is in print, the statement of Fair Market Value must be in the same size type as the description of the prize, etc.; The odds of winning each prize. If the ad is in print, the statement of odds shall be the same size type as the description of the prize and must appear immediately adjacent to each prize. A licensee who solicits, sells or offers for sale real estate using the mail or by offering prizes must maintain records that contain: The number and description of each prize awarded; The name and address of the person who won the prize; The name and address of each person who responded to the ad but did not win a prize. * Fair market value: the price or value that a prospective buyer would expect to pay or be charged for, for a similar item of like quality and quantity in a retail outlet that offers the item for sale to the general public.

Advertising 9

Rules and Regulations Promulgated by the Commission to Regulate Advertisement of Lotteries, Contests, Prizes, Certificates, Gifts and Lots. (Cont'd) Section 35:306 of the Rules and Regulations continues with behavior that the Commission considers deceptive conduct as related to this section. The Commission considers any licensee who does the following as deceptive conduct in advertising: Any licensee who does not comply with (a) and (b); Any licensee that fails to disclose the possibility that a certain prize, etc. may not be distributed or awarded; Any licensee who gives a misleading description of a prize.

Advertising 13

Summary Advertising is a major part of every broker's real estate life. Advertising includes business cards, newspapers, TV ads, lawn signs, billboards, car signs, and radio ads- any way that a broker chooses to communicate with the public. It accounts for millions of dollars spent each year by brokers. The Commission has specific rules that pertain to advertising to protect the general public. These include: The broker must have the written authority of the seller or lessor to advertise the property; The broker cannot advertise property on a rental list if the lessor or property manager has expressly forbidden such an act; The name of the brokerage company must be used in all ads; Nicknames are permitted only if the nick name appears on the licensee's license; All advertising salespersons, associate brokers, cemetery associates, and cemetery salespersons may advertise but they must use the name of the employing broker. All names and telephone numbers must be of equal size; Licensees selling their own property must disclose that they have a license unless the company lists the property; No harassment or panic peddling is allowed; Special rules apply to advertisement of lotteries, contests, prizes, certificates, gifts and lots; Advertisements of sales volume must include closed transactions only. Advertisements of Market position (market shares) must include the municipality of the market; Advertisements of numbers of branch offices must be branches that are licensed with the Commission as branches; Brokerage companies may have relationships with educational institutions but these must be disclosed to the public in all promotions, endorsements and advertisements. Brokers and licensees who advertise or market on Internet must make it known who the firm is, where it is located and the jurisdiction where the firm is located. This is the last screen for unit 7. To continue with the unit exam you must click on one of the options below.

Broker Description Part 1

Takes a fee A Commission Negotiates and locates the sale, listing, purchase, exchange, lease, timeshare, finance and option for the acquisition of real estate.

Who represents the Bureau

The Commissioner of Professional and Occupational Affairs represents the Bureau of Professional and Occupational Affairs. The Bureau was created as part of the Department of State.

Does the commision buget to the house

The commission shall also submit annually to the House of Representatives and the Senate Appropriations Committees, 15 Assembly, a copy of the budget request for the upcoming fiscal year which the commission previously submitted to the departme

The purpose of the Pennsylvania Real Estate Commission The Commission

The purpose of the Pennsylvania Real Estate Commission's creation is to protect the consumer public from harm. The Commission can do this by requiring all persons who directly or indirectly engage in the real estate business in the capacity of a broker or salesperson be licensed. The Pennsylvania Real Estate Commission is composed of eleven members. Each member has specific qualifications for the job.

real estate service

an act or acts requiring a real estate license

time-share salesperson

an employee or independent contractor sells or offers to sell timeshares under a broker. Licensed brokers or salespersons are not required to be licensed as time-share salespeople.

person

any individual, corporation, corporate fiduciary, partnership Association or other entity formed or domestic

real estate

any interest or as state in the land, whether corporeal.incorporeal freehold or non-freehold,

buyer agent

any licensee who has entered into an agency relationship with a buyer of real estate

seller agent

any licensee who has entered into an agency relationship with the seller of real estate

Cemetery salesperson

any person employed by a broker or cemetery broker to perform the duties of a cemetery broker

salesperson

any person employed by a broker to perform comparative market analysis to list for sale, negotiate or exchange of real estate, or negotiate real estate or to lease or to collect on behalf of the broker.

cemetery broker

any person engaging in or carrying on the businesscemetery lots, plots and mausoleums

school

any person who conducts classes in real estate subjects but is not a college, university or institute of higher learning do we are credited by middle states Association of colleges

rental listing referral agent

any person who owns or manages a business which collects rental information for the purpose of tenants to rental units. Cannot include any public housing authority employee.

cemetery company

any person who sells to the public the ownership or right to use any Cemetery lots

How much notice does the commission have to give for a public meeting?

at least 15 days prior to holding a public meeting

the state Real Estate Commission shall consist of Part 2

five other licensed qualified real estate broker under the existing law of the Commonwealth for at least 10 years and a person who shall have a licensed broker or cemetery broker for at least five as a real estate and at least 10 years as a broker or cemetery broker

unit

is a building or portion thereof permanently affixed to real property and designated for separate occupancy or campground or portion thereof designed for separate occupancy

designated agent

one or more licensees designated by the employing broker with the consent of the principal to act exclusively as an agentto the exclusion of all other licensees within the brokers employment

disclosure

provision of all facts without reservation, ambiguity or distortion to the consumer

the penalty for acting without a license, suspended license y of a broker, salesperson, cemetery broker, cemetery salesperson, campground membership salesperson, time- share salesperson, builder-owner salesperson, r

shall be guilty of a summary offense. First offense to pay a fine not exceeding $500 or so for him prison and not exceeding three months second offense guilty of a felony of the third degree pay a fine not less than $2000 but not more than $5000 or imprisonment for not less than one year but not more than two years or both