§ 35.383. Waiver of continuing education requirement +3Pennsylvania · Real Estate · English

Certain situations automatically qualify for a full hardship waiver. A license initially issued within 6 months of the biennial period for which renewal is sought qualifies for a full waiver. A license reactivated from noncurrent status within 6 months of the biennial period also qualifies for a full waiver.

• ✓License initially issued within 6 months of the biennial renewal period = full CE waiver on hardship basis
• ✓License reactivated from noncurrent status within 6 months of the biennial period = full CE waiver on hardship basis

Requests to waive the CE requirement must be filed with the Commission on or before March 31 of the renewal year, unless the applicant proves to the Commission's satisfaction that filing by that date was impracticable.

• ✓Waiver requests must be filed on or before March 31 of the renewal year
• ✓Late filing requires proof that timely filing was impracticable

The State Real Estate Commission may waive all or part of the continuing education (CE) requirement under § 35.382 when a standard license holder proves inability to complete the requirement due to illness, emergency, or hardship. The regulation provides specific examples of situations where hardship waivers will be granted.

• ✓The Commission may waive all or part of CE upon proof of illness, emergency, or hardship
• ✓Waivers apply to standard license holders unable to fulfill the CE requirement

A qualified continuing education instructor is eligible for a waiver of 1 hour of CE for each hour of actual classroom instruction given in an approved CE topic the instructor is qualified to teach. Duplicate hours teaching the same topic in the same biennial period do not count toward the waiver.

• ✓Instructors earn 1 hour CE waiver per hour of actual classroom instruction in an approved topic
• ✓Duplicate hours in the same topic during the same biennial period are not counted for waiver purposes

The Commission may waive all or part of the continuing education requirement under § 35.382 upon proof that a standard license holder cannot fulfill the requirement due to illness, emergency, or hardship. The regulation lists specific examples where hardship waivers will be granted.

• ✓Waivers may be granted for illness, emergency, or hardship
• ✓Proof must be submitted showing inability to fulfill the requirement
• ✓The Commission has discretion to waive all or part of the requirement

Certain situations automatically qualify for hardship waivers: a license initially issued within 6 months of the biennial period being renewed (full waiver), a license reactivated from noncurrent status within 6 months of the biennial period (full waiver), and being a qualified CE instructor (1 hour waived per hour of actual classroom instruction in an approved topic).

• ✓License issued within 6 months of biennial period = full CE waiver
• ✓License reactivated within 6 months of biennial period = full CE waiver
• ✓Qualified CE instructors receive 1 hour waiver per hour of actual classroom instruction
• ✓Duplicate hours of instruction in the same topic during the same biennial period are not counted

Requests to waive the continuing education requirement must be filed with the Commission on or before March 31 of the renewal year, unless the applicant proves to the Commission's satisfaction that it was impracticable to do so.

• ✓Waiver requests must be filed on or before March 31 of the renewal year
• ✓Late requests require proof that timely filing was impracticable

A broker is an individual or entity holding either a standard or reciprocal license who, for another and for a fee, commission or other valuable consideration, performs one or more enumerated real estate activities. Understanding the broad scope of broker activities is essential for identifying when licensure is required.

• ✓A broker negotiates with or aids in locating/obtaining real estate for purchase, lease or acquisition of interest
• ✓A broker negotiates listings, sales, purchases, exchanges, leases, time shares, financing or options for real estate
• ✓A broker manages real estate, represents self as consultant/counsellor/house finder, promotes sale/rental, or performs a comparative market analysis
• ✓Attempting to perform any listed broker action also qualifies as broker activity
• ✓The promotion exception does not apply to those whose main business is advertising, promotion or public relations

A salesperson is an individual holding either a standard or reciprocal license who is employed by a broker to perform enumerated real estate activities. Salespersons must always work under the employment of a broker.

• ✓A salesperson is employed by a broker to sell, offer to sell, or list real estate
• ✓A salesperson may buy, negotiate purchase/sale/exchange, negotiate loans, lease/rent real estate, collect rent, assist in managing property, and perform comparative market analysis
• ✓A salesperson must hold a standard or reciprocal license

An agency relationship is a fiduciary relationship between a broker (or licensees employed by the broker) and a consumer who becomes a principal. A principal is a consumer who has entered into an agency relationship.

• ✓An agency relationship is fiduciary in nature
• ✓A principal is a consumer who has entered into an agency relationship with a broker or licensee employed by the broker
• ✓The relationship arises between the broker/licensee and the consumer

The regulations define multiple agent roles based on whom the licensee represents. Understanding these distinctions is critical for agency disclosure and duties.

• ✓Buyer agent: a licensee who enters into an agency relationship with a buyer/tenant
• ✓Seller agent: a licensee who enters into an agency relationship with a seller/landlord
• ✓Dual agent: a licensee who acts as agent for both buyer/tenant and seller/landlord in the same transaction
• ✓Designated agent: licensee(s) designated by the employing broker, with principal's consent, to act exclusively for the principal to the exclusion of all other licensees in the broker's employ
• ✓Subagent: a licensee not in the listing broker's employ who cooperates in selling as seller's/landlord's agent and is deemed to have an agency relationship with the seller

A transaction licensee provides services without entering into an agency relationship with the consumer. This is a key non-agency role in Pennsylvania real estate practice.

• ✓A transaction licensee does NOT enter into an agency relationship with the consumer
• ✓A transaction licensee provides communication or document preparation services or performs other acts listed in the broker or salesperson definitions

These related valuation concepts have distinct definitions and are commonly tested. A CMA and BPO are prepared by licensees, while an AVM is a computerized model.

• ✓Comparative market analysis (CMA): a written analysis, opinion or conclusion by a broker, associate broker or salesperson on probable sale or rental price of a specified parcel at a specified time
• ✓Broker price opinion (BPO): an estimate by a broker, associate broker or salesperson detailing probable selling price with varying detail on condition, market, neighborhood and comparable sales; does NOT include an automated valuation model
• ✓Automated valuation model (AVM): a computerized model used by mortgage originators and secondary market issuers to determine collateral worth of a mortgage secured by a consumer's principal dwelling

Pennsylvania distinguishes between standard licenses earned by meeting PA requirements and reciprocal licenses based on out-of-state licensure. Both types of licenses appear throughout the definitions.

• ✓Standard license: issued to an individual/entity who fulfilled the education/experience and examination requirements of the act
• ✓Reciprocal license: issued to an individual/entity whose principal place of business is outside Pennsylvania and who holds a current license from a state with a reciprocal agreement or substantially comparable qualifications

These foundational definitions establish who is served, who is regulated, and when disclosure obligations begin.

• ✓Consumer: an individual or entity who is the recipient of any real estate service
• ✓Licensee: an individual/entity holding a standard or reciprocal license under the act; for the consumer notice in § 35.336(a), it means a broker or salesperson
• ✓Initial interview: the first substantive discussion between a licensee and a consumer about the consumer's real estate needs

A broker is an individual or entity holding a standard or reciprocal license that, for another and for a fee, commission or other valuable consideration, performs real estate activities. Understanding what constitutes brokerage activity is essential because performing these acts without a license violates the act.

• ✓A broker negotiates or aids in locating, obtaining, listing, selling, purchasing, exchanging, leasing, time share, financing or option for real estate
• ✓A broker manages real estate, represents self as consultant/counsellor/house finder, promotes sale/rental, or performs comparative market analysis
• ✓The advertising/promotion/public relations exemption applies only to those whose main business is advertising, promotion or public relations
• ✓Even attempting to perform any listed broker action requires a license

A salesperson is an individual holding a standard or reciprocal license employed by a broker to perform real estate activities. A salesperson must always work under a broker.

• ✓A salesperson may sell, buy, list, negotiate purchase/sale/exchange, negotiate loans, lease/rent, collect rent, assist in managing property, or perform a comparative market analysis
• ✓A salesperson must be employed by a broker to conduct these activities

A standard license is issued to those who fulfill Pennsylvania education/experience and examination requirements. A reciprocal license is issued to those whose principal place of business is outside Pennsylvania and who hold a current license in a state with a reciprocal agreement or substantially comparable qualifications.

• ✓A standard license requires meeting PA education/experience and examination requirements
• ✓A reciprocal license requires an out-of-state principal place of business and a current out-of-state license from a reciprocal or substantially comparable state

A cemetery broker operates exclusively within the limited field of cemetery lots, plots and mausoleum spaces or openings. A cemetery salesperson is employed by a broker or cemetery broker exclusively to perform cemetery broker duties.

• ✓A cemetery broker is limited exclusively to cemetery lots, plots and mausoleum spaces or openings
• ✓A cemetery salesperson works exclusively performing the duties of a cemetery broker under a broker or cemetery broker
• ✓A cemetery does not include a private family cemetery

An agency relationship is a fiduciary relationship between a broker (or licensees employed by the broker) and a consumer who becomes a principal. A principal is a consumer who has entered into an agency relationship.

• ✓An agency relationship is fiduciary in nature between a broker/licensee and a consumer who becomes a principal
• ✓A principal is a consumer who has entered into an agency relationship with a broker or a licensee employed by the broker

Pennsylvania recognizes multiple agency roles. A seller agent enters an agency relationship with a seller/landlord; a buyer agent with a buyer/tenant. A dual agent acts for both parties in the same transaction. A designated agent is chosen by the employing broker to act exclusively for a principal. A subagent cooperates with the listing broker as the seller's agent.

• ✓A dual agent acts as agent for both buyer/tenant and seller/landlord in the same transaction
• ✓A designated agent is designated by the employing broker, with consent of the principal, to act exclusively for that principal to the exclusion of other licensees in the broker's employ
• ✓A subagent is not in the listing broker's employ but cooperates in selling property as the seller's agent and has an agency relationship with the seller

A transaction licensee provides services without entering an agency relationship with the consumer. This is a non-agency role providing communication or document preparation and other broker/salesperson acts.

• ✓A transaction licensee does NOT enter into an agency relationship with the consumer
• ✓A transaction licensee provides communication/document preparation services or other broker/salesperson acts

A comparative market analysis (CMA) is a written analysis relating to probable sale/rental price of a specified parcel at a specified time. A broker price opinion (BPO) is an estimate of probable selling price with detail about condition, market, neighborhood, and comparable sales, but excludes automated valuation models.

• ✓A CMA is prepared for a seller/buyer/lessor/lessee or a person making due diligence decisions on listing/sale/lease/acquisition price
• ✓A BPO does not include an automated valuation model (a computerized model used by mortgage originators/secondary market issuers)
• ✓A BPO may be prepared by a broker, associate broker or salesperson

The regulations define specific educational measurement units. A credit equals 15 hours of instruction; an hour of instruction is at least 50 minutes. Learning may be independent, instructor-led, or distance education.

• ✓A credit is a period of 15 hours of instruction
• ✓An hour of instruction is a period of at least 50 minutes
• ✓Independent learning provides no instructor contact; instructor-led learning provides significant ongoing instructor contact

A main office is the fixed location other than a branch office devoted to real estate business. A branch office is any fixed PA location other than the main office. A listing broker enters a written agreement with a seller/landlord to market property.

• ✓A branch office is any fixed PA location other than the main office devoted to real estate business
• ✓A listing broker has a written agreement with a seller/landlord to market property as seller's agent, dual agent or transaction licensee
• ✓A principal place of business is the fixed location where the licensee holds the equivalent of a standard license

An associate broker is an individual broker who is employed by another broker. This distinguishes a fully licensed broker who chooses to work under another broker's supervision.

• ✓An associate broker holds an individual broker license
• ✓An associate broker is employed by another broker

A listing broker is a broker who has entered into a written agreement with a seller/landlord to market property. The capacity in which the broker markets may vary.

• ✓A listing broker has a written agreement with a seller/landlord
• ✓The listing broker may market property as a seller's agent, dual agent or transaction licensee

Pennsylvania regulates cemetery real estate through specialized licenses limited to cemetery lots, plots and mausoleum spaces.

• ✓Cemetery broker: holds a standard or reciprocal license, engaged exclusively within the limited field of cemetery lots, plots and mausoleum spaces or openings
• ✓Cemetery associate broker: an individual cemetery broker employed by another cemetery broker or by a broker
• ✓Cemetery salesperson: holds a standard or reciprocal license, employed by a broker or cemetery broker exclusively to perform cemetery broker duties
• ✓Cemetery: a place for disposal/burial of deceased humans, excluding a private family cemetery

A builder-owner salesperson is a specialized license for full-time employees of builder-owners of dwellings, authorized to act only on behalf of that builder-owner.

• ✓Must hold a standard or reciprocal license and be a full-time employee of a builder-owner of single/multi-family dwellings in Pennsylvania
• ✓Authorized to list, sell, offer, negotiate sale/exchange, lease/rent, or collect rent for real estate of the builder-owner
• ✓Acts only for and on behalf of the builder-owner

A broker of record is the individual broker responsible for the real estate transactions of a business entity that holds a broker's license.

• ✓Broker of record is an individual broker
• ✓Responsible for the real estate transactions of a partnership, association or corporation that holds a broker's license

Pennsylvania defines main office, branch office and principal place of business, which are important for licensing and supervision requirements.

• ✓Main office: the fixed location (other than a branch office) of the broker/cemetery broker in PA or another state devoted to transacting real estate business
• ✓Branch office: any fixed location in Pennsylvania, other than the main office, maintained by a broker or cemetery broker for transacting real estate business
• ✓Principal place of business: the fixed location of the broker/cemetery broker in the state where the licensee holds the equivalent of a standard license

The regulations define terms governing real estate education, continuing education credits and delivery formats. These are testable for CE and pre-licensing requirements.

• ✓Credit: a period of 15 hours of instruction
• ✓Hour of instruction: a period of at least 50 minutes
• ✓Distance education: instruction delivered in independent or instructor-led format where student and instruction are separated by distance and sometimes time
• ✓Independent learning: interactive program (including computer-based courses) with NO contact with an instructor
• ✓Instructor-led learning: interactive program with significant ongoing contact from instructor to participant
• ✓Accredited college: recognized by the Council for Higher Education Accreditation or the U.S. Secretary of Education

A short sale occurs when the property sale proceeds are insufficient to pay off all secured liens. This is important for financing and disclosure contexts.

• ✓A short sale is a sale of real property where the seller's proceeds are less than the amount required to pay off all liens secured by the property

Real estate under the act broadly includes various interests in land whether located in Pennsylvania or elsewhere, including leasehold and time share interests.

• ✓Real estate includes an interest or estate in land whether corporeal or incorporeal, freehold or nonfreehold
• ✓Applies whether the land is situated in Pennsylvania or elsewhere
• ✓Includes leasehold interests and time share and similarly designated interests

These agreement types allow consumers to retain multiple brokers, contrasting with exclusive arrangements.

• ✓Open listing agreement: a nonexclusive listing where the seller retains the right to employ multiple brokers to sell or lease
• ✓Nonexclusive buyer agency agreement: a nonexclusive agreement where the buyer retains the right to employ multiple brokers to purchase or lease

These institutional definitions identify the statutory authority and regulatory bodies overseeing Pennsylvania real estate licensing.

• ✓Act: the Real Estate Licensing and Registration Act (63 P.S. §§ 455.101—455.902)
• ✓Commission: the State Real Estate Commission
• ✓Bureau: the Bureau of Professional and Occupational Affairs of the Department
• ✓Department: the Department of State of the Commonwealth
• ✓Real estate education provider: a person/institution offering real estate education, excluding colleges accredited by the Middle States Association of Colleges and Secondary Schools or equivalent

Campground memberships are a distinct interest, and their sale involves a special salesperson category. Certain existing licensees do not need the extra license.

• ✓Campground membership: an interest other than fee simple or lease giving the right to use a unit of real property for locating recreational vehicles/trailers/tents on a periodic basis under a membership contract
• ✓Campground membership salesperson: holds standard/reciprocal license and sells campground memberships under active supervision of a broker
• ✓A licensed broker, salesperson or time-share salesperson does NOT need a campground membership salesperson's license to sell campground memberships

Time share is a right to use or occupy units on a periodic basis. A time-share salesperson sells time shares as an employee or independent contractor.

• ✓Time share: the right to use/occupy one or more units on a periodic basis under an arrangement allocating use/occupancy between similar users
• ✓Time share does NOT include a campground membership
• ✓Time-share salesperson: an individual who, as employee or independent contractor, sells or offers to sell time shares

A rental listing referral agent runs a business collecting rental information to refer prospective tenants. A manager of record is responsible for the entity's rental listing transactions.

• ✓Rental listing referral agent: owns/manages a business collecting rental information to refer prospective tenants to rental units
• ✓Rental listing referral agent does NOT include an official/employee of a public housing authority created under State or Federal law
• ✓Manager of record: the individual rental listing referral agent responsible for the rental listing transactions of a partnership, association or corporation holding a rental listing referral agent's license

An owner of real estate is excluded when dealing with property they own or lease. For corporations and partnerships, this exclusion is limited so it cannot be used to avoid licensure by the whole organization.

• ✓An owner of real estate is excluded with respect to property owned or leased by the owner
• ✓For a corporation or partnership, the exclusion does not extend to more than five partners or officers, nor to other employees

Employees of public utilities acting in the ordinary course of utility business are excluded when negotiating purchase, sale, or lease of real estate. Officers/employees of energy or mineral resource companies are also excluded when real estate transactions are common and necessary to the principal business.

• ✓Public utility employees acting in ordinary utility business under 66 Pa.C.S. §§ 101-3315 are excluded
• ✓Energy/mineral resource company officers/employees are excluded if real estate transactions are common and necessary to the principal business

An attorney in fact acting under a recorded power of attorney is excluded unless the power of attorney is used to circumvent the act. Granting a POA to a property manager solely to avoid using a licensed broker is a circumvention. An attorney-at-law receiving a fee within the attorney-client relationship is excluded if not holding out as a broker.

• ✓An attorney in fact under a recorded POA is excluded unless the POA circumvents the intent of the act
• ✓Granting a POA to a property manager solely to avoid a licensed broker is a circumvention
• ✓An attorney-at-law is excluded if paid within the attorney-client relationship and does not hold out as a real estate broker

Trustees in bankruptcy, administrators, executors, trustees, and guardians acting under court order, will, or trust are excluded. Elected officers/directors of banking institutions are excluded when only the institution's own real estate is involved.

• ✓Trustees in bankruptcy, administrators, executors, trustees, and guardians acting under court order, will, or trust instrument are excluded
• ✓Elected officers/directors of banks, savings institutions, credit unions, or trust companies are excluded when only the institution's own real estate is involved

Cemetery company officers/employees showing family burial lots incidentally without pay are excluded, as are cemetery companies owned by churches or fraternal organizations. Licensed auctioneers at bona fide auctions are excluded. An employee managing multifamily dwellings without leasing authority is excluded but may show apartments and give rental information.

• ✓Licensed auctioneers performing authorized duties at a bona fide auction are excluded
• ✓A multifamily property maintenance employee without authority to enter leases, negotiate terms, or hold tenant money is excluded but may show apartments and provide rental information
• ✓Bank officers/employees performing appraisals in connection with a loan transaction are excluded

A broker or cemetery broker may not open a branch office in Pennsylvania without first obtaining a branch office license for that location from the Commission. The applicant must submit a completed license application with the fee prescribed in § 35.203.

• ✓A broker/cemetery broker cannot open a branch office without a branch office license for that location
• ✓A completed license application plus the § 35.203 fee must be submitted to the Commission

A broker or cemetery broker may not open a branch office in Pennsylvania without first obtaining a branch office license for that location from the Commission. The applicant must submit a completed license application with the prescribed license fee under § 35.203.

• ✓A broker/cemetery broker may not open a branch office without first obtaining a branch office license for that location
• ✓A completed license application with the license fee under § 35.203 must be submitted to the Commission
• ✓The branch office license is issued in the name under which the broker is licensed at the main office

A branch office license terminates automatically with the suspension, revocation or discontinuance, for whatever reason, of the license of the broker or cemetery broker to whom the branch office license was issued.

• ✓Branch office license terminates automatically upon suspension, revocation or discontinuance of the parent broker's license
• ✓Termination occurs 'for whatever reason' the main license ends

A branch office license is issued in the name under which the broker or cemetery broker is licensed at the main office. The branch license terminates automatically upon suspension, revocation, or discontinuance, for any reason, of the broker's or cemetery broker's license.

• ✓A branch office license is issued in the name of the broker's main office business
• ✓A branch office license terminates automatically with suspension, revocation, or discontinuance of the broker's license