§ 35.221. General Requirements for Licensure +18Pennsylvania · Real Estate · English

Every applicant for a standard or reciprocal license must submit certain items regardless of the specific license sought, including fee, criminal disclosure, and consent to service of process.

• ✓The applicant must submit the license fee prescribed in § 35.203
• ✓The applicant must disclose complete details of any felony/misdemeanor conviction or guilty/nolo plea and the sentence imposed
• ✓Corporate/partnership criminal disclosure applies to each member/partner and each officer
• ✓The applicant must provide written consent that service of process may be made on the Chairperson and Secretary of the Commonwealth

A provider must have a main location housing administrative offices, records, and an exclusive-use telephone with a listed number. Class locations must be suitable classroom space, comply with building/fire/sanitary codes, and generally not share space with real estate franchises or networks.

• ✓Main location must contain administrative offices, records, and exclusive-use listed telephone
• ✓Class location must be suitable for classroom space
• ✓Class location may not share space with a real estate franchise, network or organization (with exceptions for trade associations and CE arrangements)
• ✓Class location must conform to building, fire safety, and sanitary requirements

A broker, associate broker, or salesperson may not prepare a BPO unless they have completed a Commission-approved initial education course in preparing BPOs. Similarly, a broker or associate broker may not sign a salesperson-prepared BPO unless they have completed a Commission-approved initial BPO education course.

• ✓Preparers must complete a Commission-approved initial BPO education course before preparing a BPO
• ✓Brokers/associate brokers must complete initial BPO education before signing a salesperson-prepared BPO

A licensee may not prepare a BPO unless they have completed at least 3 hours of Commission-approved continuing education in BPO topics during the current or immediately preceding 2-year license period. An approved initial course under subsection (e) satisfies this requirement if completed in that timeframe.

• ✓At least 3 hours of Commission-approved BPO continuing education must be completed within the current or immediately preceding 2-year license period
• ✓An approved subsection (e) course can satisfy the CE requirement if completed within the required timeframe

A broker, associate broker, or salesperson may not prepare a BPO unless they have completed a Commission-approved initial education course in BPO preparation. Likewise, a broker or associate broker may not sign a salesperson-prepared BPO without completing a Commission-approved initial BPO education course.

• ✓Initial Commission-approved BPO education is required before preparing a BPO
• ✓Brokers/associate brokers must complete initial BPO education before signing a salesperson-prepared BPO

A licensee may not prepare a BPO unless they have completed at least 3 hours of Commission-approved continuing education in BPO topics during the current or immediately preceding 2-year license period. An approved initial course under subsection (e) also satisfies this requirement if completed within that timeframe.

• ✓At least 3 hours of Commission-approved BPO continuing education is required
• ✓The CE must be completed during the current or immediately preceding 2-year license period
• ✓An approved initial education course can satisfy the CE requirement if completed within the timeframe

A broker, associate broker, or salesperson must retain the transcript or certificate of instruction for all required BPO courses and provide a copy to the Commission upon request.

• ✓Licensees must retain transcripts/certificates for all required BPO courses
• ✓Copies of BPO education records must be provided to the Commission upon request

The Commission has approved the following broker prelicensure courses to satisfy the initial BPO education requirement: valuation of residential property; valuation of income-producing property; basic appraisal principles; and basic appraisal procedures.

• ✓Approved initial BPO courses include valuation of residential property and income-producing property
• ✓Basic appraisal principles and basic appraisal procedures also satisfy initial BPO education

Courses other than the approved list may satisfy initial or CE BPO requirements if 3+ hours long and covering: valuation definitions (BPO, CMA, AVM per § 35.201); applicability including permitted/non-permitted uses (§ 35.502); qualifications and limitations for BPO preparation including required contents, fee payment, and salesperson limitations (§ 35.501); and basics of BPO preparation including information sources, development steps, legal issues, and liability.

• ✓Alternative BPO courses must be 3 or more hours and cover defined valuation terms (BPO, CMA, AVM), applicability, qualifications, and preparation basics
• ✓Courses must address permitted/non-permitted uses, required BPO contents, fees, salesperson limitations, and liability issues

A broker, associate broker, or salesperson must retain the transcript or certificate of instruction for all required BPO courses and provide a copy to the Commission upon request.

• ✓Licensees must retain transcripts/certificates for all required BPO courses
• ✓Copies must be provided to the Commission upon request

The Commission has approved four broker prelicensure courses to satisfy initial BPO education: valuation of residential property, valuation of income-producing property, basic appraisal principles, and basic appraisal procedures. Other courses may satisfy initial or continuing education if 3+ hours long and covering required topics: valuation definitions (BPO, CMA, AVM), applicability/permitted and non-permitted uses, qualifications/limitations on BPO preparation, and basics of BPO preparation including legal and liability issues.

• ✓Four approved prelicensure courses satisfy initial BPO education (valuation of residential/income property, basic appraisal principles/procedures)
• ✓Alternative courses must be 3+ hours and cover valuation definitions, applicability, qualifications/limitations, and preparation basics
• ✓Required topics include definitions of BPO, CMA, and AVM

A standard salesperson applicant must pass the salesperson's exam within 3 years, submit a sworn statement from the affiliating broker, and provide official transcripts of required education. Applicants licensed in another state within 5 years need only pass the Pennsylvania portion.

• ✓Must pass each part of the salesperson's licensing exam within 3 years prior to a properly completed application
• ✓An applicant actively licensed as a broker or salesperson in another state within 5 years takes only the Pennsylvania portion
• ✓Must submit a sworn statement from the affiliating broker attesting to good reputation and certifying active supervision and training, plus official transcripts under § 35.272(a)(2)

A reciprocal salesperson applicant must hold a current out-of-state broker or salesperson license from a reciprocating state, submit a verified statement, state certification, and a sworn statement from the affiliating broker.

• ✓Must possess a current broker's or salesperson's license from a reciprocating state or with substantially comparable qualifications
• ✓Must submit a verified statement and certification from the other state's licensing authority
• ✓Must submit a sworn statement from a standard/reciprocal broker certifying active supervision and training

Licensees must provide the Consumer Notice at the initial interview and retain the signed/refused acknowledgment. The notice explains available agency relationships so consumers can make informed decisions.

• ✓The Consumer Notice must be provided to the consumer at the initial interview
• ✓Licensees must retain a copy of the signed/refused acknowledgment for 6 months and provide the consumer a copy of the entire disclosure summary
• ✓The disclosure summary must be entitled 'Consumer Notice' and marked 'THIS IS NOT A CONTRACT'
• ✓A business relationship is NOT presumed; before disclosing financial information, the consumer must sign a written agreement or the licensee is NOT representing them

The Consumer Notice describes the agency relationships a licensee may enter: seller agent, buyer agent, dual agent, and designated agent, plus the non-agency transaction licensee role.

• ✓Seller agent works exclusively for the seller/landlord; a subagent has the same duties as the seller agent; must reveal known material defects
• ✓Buyer agent works exclusively for the buyer/tenant even if paid by the seller/landlord
• ✓Dual agent works for both parties, may not act adversely to either, and requires the written consent of both parties
• ✓Designated agent: broker designates different licensees to represent each side and automatically serves as a dual agent, taking reasonable steps to protect confidential information

A transaction licensee provides real estate services without an agency relationship, owing no loyalty or confidentiality but still bound by certain prohibitions and disclosure duties.

• ✓A transaction licensee has no agency relationship and no duty of loyalty or confidentiality
• ✓Prohibited from disclosing that the seller will accept less than asking price, that the buyer will pay more than the written offer, or that either will agree to different financing terms
• ✓Must still disclose known material defects about the property

Regardless of the business relationship, all licensees owe consumers a core set of statutory duties, and certain contractual terms are negotiable and must be addressed in an agreement.

• ✓All licensees must exercise reasonable skill/care, deal honestly and in good faith, present all offers/counteroffers promptly, comply with the Seller Disclosure Law, account for escrow funds, and disclose conflicts of interest
• ✓Must advise consumers to seek expert advice on matters beyond the licensee's expertise and disclose financial interest in recommended services
• ✓Negotiable terms that must be addressed include the duration of employment/listing, fees or commission, scope of activities, and the broker's cooperation and fee-sharing with other brokers
• ✓All sales agreements must contain the property's zoning classification except where zoned solely/primarily for single-family dwellings

A standard broker applicant must pass the broker exam, comply with office requirements, and submit recommendations attesting to good character. Reciprocity may waive part of the exam.

• ✓Must have passed each part of the broker's licensing examination within 3 years prior to submitting a completed application
• ✓An applicant actively licensed as a broker by another state within the last 5 years takes only the Pennsylvania portion of the exam
• ✓Must submit recommendations from one licensed real estate broker and two unrelated property owners in the applicant's county

Reciprocal broker applicants and business entities have distinct requirements, including verified statements of good standing and designation of a broker of record.

• ✓A reciprocal applicant must possess a current out-of-state broker's license and complete equivalent requirements if their state demands more of PA licensees
• ✓A partnership/association/corporation must designate an individual licensed as a broker to serve as broker of record
• ✓Each member/officer engaging in real estate business must hold a current salesperson or broker license from the Commission

Within 15 days following the death of a broker with a sole proprietorship, the deceased broker's estate must notify the Commission that it appointed another licensed broker to supervise termination of the business. The appointment is subject to verification of a current license.

• ✓Estate must notify the Commission within 15 days of appointing another licensed broker to supervise termination
• ✓The appointed broker must have a verified current license

During the termination period the appointed broker: may not enter new listing agreements; may promote unexpired listings unless the seller/lessor cancels (unexpired listings expire automatically 90 days after death and may not be renewed); may proceed to consummation on pending agreements; and may not hire new licensees.

• ✓No new listing agreements may be entered into
• ✓Unexpired listings expire automatically 90 days after the broker dies and may not be renewed
• ✓Pending agreements of sale/lease may proceed to consummation but no new licensees may be hired

Within 15 days following the death of a broker with a sole proprietorship, the estate must notify the Commission that it has appointed another licensed broker to supervise termination of the business. During the termination period, the appointed broker may not enter new listing agreements, may promote unexpired listings (which expire automatically 90 days after the broker dies and cannot be renewed), may proceed with pending agreements of sale or lease to consummation, and may not hire new licensees.

• ✓Estate must notify Commission within 15 days and appoint a licensed broker to supervise termination
• ✓No new listing agreements may be entered during termination
• ✓Unexpired listings expire automatically 90 days after the broker dies and may not be renewed
• ✓Pending agreements of sale/lease may proceed; no new licensees may be hired

A broker whose license is suspended must return the license and post the Commission-provided suspension notice prominently at all offices. Failure to post is grounds for further discipline.

• ✓A suspended broker/cemetery broker must return the license to the Commission
• ✓Must post the Commission-provided notice at main and branch offices near the public entrance
• ✓Failure to post the notice constitutes grounds for further disciplinary action

A provider must employ qualified instructors who either hold a degree in the course subject matter or have 3 years of practical/teaching experience directly related to the subject. The provider must maintain documentation of instructor qualifications.

• ✓Instructors must be qualified to teach their assigned courses
• ✓Qualification via undergraduate, graduate, or postgraduate degree in the subject
• ✓Qualification alternatively via 3 years practical or teaching experience directly related to subject
• ✓Provider must maintain documentation substantiating instructor education and experience

Licensees must provide the consumer with the Consumer Notice at their initial interview, retain a copy of the signed/refused acknowledgment for 6 months, and provide the consumer a copy of the entire disclosure summary. The disclosure must be titled 'Consumer Notice' and state 'THIS IS NOT A CONTRACT.'

• ✓Consumer Notice must be provided at the initial interview
• ✓Licensee must retain the signed/refused acknowledgment for 6 months
• ✓Disclosure summary must be entitled 'Consumer Notice' in the required format

The Consumer Notice explains agency relationships: Seller Agent (works exclusively for seller/landlord); Buyer Agent (works exclusively for buyer/tenant even if paid by seller); Dual Agent (works for both, requires written consent of both parties, cannot act adversely to either); and Designated Agent (broker designates different licensees for each side and automatically serves as dual agent).

• ✓Seller agent works exclusively for seller/landlord; buyer agent works exclusively for buyer/tenant
• ✓Dual agent requires written consent of both parties and may not act adversely to either
• ✓Designated agent structure automatically makes the supervising broker a dual agent
• ✓All agents must disclose known material defects regardless of relationship

A transaction licensee provides real estate services without an agency relationship. Though owing no duty of loyalty or confidentiality, a transaction licensee is prohibited from disclosing that the seller will accept less than asking price, that the buyer will pay more than offered, or that either party will agree to different financing terms. Transaction licensees must disclose known material defects.

• ✓Transaction licensee has no agency relationship and no duty of loyalty or confidentiality
• ✓Prohibited from disclosing seller's willingness to accept less, buyer's willingness to pay more, or alternative financing acceptance
• ✓Must still disclose known material defects about the property

Regardless of relationship selected, all licensees owe consumers duties to: exercise reasonable professional skill/care; deal honestly and in good faith; present all written offers/counteroffers promptly (waivable in writing when property under contract); comply with the Seller Disclosure Law; account for escrow funds; disclose conflicts of interest and financial interests; provide document preparation assistance; advise to seek expert advice; and keep the consumer informed.

• ✓All licensees must exercise reasonable skill/care, deal honestly, and present all offers promptly
• ✓All licensees must account for escrow and deposit funds and disclose conflicts and financial interests
• ✓Duty to present offers may be waived in writing by seller when property is under contract

The Consumer Notice states negotiable terms that must be addressed in an agreement/disclosure: duration of employment/listing, fees/commission, scope of activities, and broker's cooperation and fee-sharing. It warns in bold that unless the consumer signs a written agreement selecting a business relationship, the licensee is NOT representing them and no business relationship is presumed.

• ✓Duration, fees/commission, scope of activities, and fee-sharing are negotiable and must be addressed in an agreement
• ✓Unless a written agreement is signed, the licensee is NOT representing the consumer; no relationship is presumed

Licensees owe every consumer of real estate services a set of core duties that cannot be waived, including honesty, skill, care, and various disclosure and accounting obligations. These form the foundation for all agency relationships.

• ✓Must exercise reasonable professional skill and care and deal honestly and in good faith
• ✓Must present all offers, counteroffers, notices and communications in writing in a reasonably practicable time unless a written waiver applies to an existing contract
• ✓Must comply with 68 Pa.C.S. Chapter 73 (Real Estate Seller Disclosure Law)
• ✓Must account for escrow and deposit funds per section 604(a)(5) and §§ 35.321—35.328
• ✓Must provide consumers section 608 information at the initial interview
• ✓Must disclose all conflicts of interest and financial interests per § 35.283
• ✓Must advise consumers to seek expert advice beyond the licensee's expertise and advise on legal compliance without rendering legal advice

The regulation limits licensee obligations and liability regarding property inspection, verification of consumer representations, and consumer acts.

• ✓A licensee is not required to conduct an independent inspection of the property
• ✓A licensee is not required to independently verify representations reasonably believed accurate and reliable
• ✓A licensee is not liable for consumer acts unless the consumer acted at the licensee's express direction or on the licensee's reasonably relied-upon representation

Licensees owe all consumers nonwaivable duties: exercise reasonable professional skill and care; deal honestly and in good faith; timely present all offers/counteroffers/communications in writing (unless waived); comply with the Seller Disclosure Law; account for escrow; provide section 608 information; disclose conflicts; advise seeking expert advice; provide competent services; keep consumer informed; assist with document preparation; and advise on compliance without giving legal advice.

• ✓Licensees must exercise reasonable professional skill and care and deal honestly and in good faith — these duties may not be waived
• ✓All offers, counteroffers and communications must be presented in writing in a reasonably practicable time unless waived in writing
• ✓Licensees must account for escrow/deposit funds and comply with the Real Estate Seller Disclosure Law
• ✓Licensees must advise consumers to seek expert advice on matters beyond their expertise

A licensee is not required to conduct an independent inspection of the property or to independently verify representations reasonably believed accurate. A licensee is not liable for a consumer's acts unless the consumer acted at the licensee's express direction or in reliance on the licensee's representation.

• ✓A licensee need not conduct an independent property inspection or verify representations reasonably believed accurate
• ✓A licensee is not liable for a consumer's acts unless at the licensee's express direction or reasonable reliance on the licensee's representation

A standard salesperson applicant must pass the exam and submit a sworn broker statement plus transcripts. The employing broker certifies supervision and training.

• ✓Must pass each part of the salesperson's licensing exam within 3 years prior to submitting a completed application
• ✓Must submit a sworn statement from the affiliating broker attesting to good reputation and certifying active supervision and training
• ✓Must submit official transcripts evidencing required degrees or course credits under § 35.272(a)(2)

A reciprocal salesperson must hold an out-of-state license, submit verified statements, provide certification from the licensing authority, and secure a sworn broker statement.

• ✓Must possess a current out-of-state broker's or salesperson's license and complete equivalent requirements if the state demands more of PA licensees
• ✓Must submit a certification confirming active license in good standing and describing any past discipline
• ✓Must submit a sworn statement from the affiliating broker certifying active supervision and training

Within 15 days following the death of a broker of record, a partner or corporate officer must file an application with the Commission designating another individual to serve as broker of record.

• ✓Within 15 days of a broker of record's death, a partner or corporate officer must file an application designating a new broker of record

If a broker with a sole proprietorship or broker of record is unable to act due to illness or injury, the broker's attorney/power of attorney holder, a corporate officer or partner must notify the Commission within 15 days that an interim licensed broker was appointed until the broker can resume responsibilities.

• ✓Notification to the Commission required within 15 days of appointing an interim broker/broker of record due to illness or injury
• ✓The interim appointee must be a licensed broker who serves until the original broker resumes duties

A standard cemetery broker applicant must pass the salesperson's licensing exam within 3 years, comply with office requirements, and submit recommendations of good reputation.

• ✓Must pass each part of the salesperson's licensing exam within 3 years prior to application
• ✓An applicant actively licensed as a cemetery broker in another state within 5 years takes only the Pennsylvania portion
• ✓Must submit recommendations from one Commission-licensed broker and two unrelated property owners

Reciprocal cemetery broker applicants must hold a current out-of-state cemetery broker license and submit verified statements and state certification. Entities must ensure members/officers are licensed and designate a broker of record.

• ✓Reciprocal applicant must possess a current cemetery broker's license from a reciprocating or comparable state
• ✓Entity must ensure each engaging member/officer holds a broker or cemetery broker license and designate a broker/cemetery broker as broker of record
• ✓Must comply with §§ 35.241 and 35.242

Within 15 days following the death of a broker of record, a partner or corporate officer must file an application with the Commission designating another individual to serve as broker of record.

• ✓A partner or corporate officer must act within 15 days of the broker of record's death
• ✓An application designating a new broker of record must be filed with the Commission

Sections 35.337 and 35.338 provide the required Consumer Notice formats when a licensee works on behalf of the owner in leasing or in time-share transactions, requiring the licensee to state their capacity.

• ✓For owner-lease (§ 35.337), the licensee must check whether acting as owner/landlord, a direct employee of the owner/landlord, or an agent under a property management or exclusive leasing agreement
• ✓For time-share estates (§ 35.338), the licensee must check whether acting as owner, direct employee of the owner, or agent under a property management or exclusive leasing/selling agreement
• ✓Both forms are titled 'Consumer Notice / THIS IS NOT A CONTRACT' and require consumer acknowledgment and licensee certification of delivery

A provider may not use unapproved names, falsely claim endorsement, guarantee employment or exam passage, promote a real estate business/franchise, recruit or solicit students for real estate affiliations, advertise in employment columns, or use false/misleading/deceptive advertising.

• ✓May not hold itself out under an unapproved name
• ✓May not claim Commission/Department of Education endorsement (may state Commission approval of courses)
• ✓May not guarantee employment or guarantee passing a licensing exam
• ✓May not promote or recruit for a real estate licensee, organization, franchise or network
• ✓May not engage in false, misleading, deceptive, or degrading advertising

A provider may not allow its locations to be used for solicitation or recruitment of students for real estate employment/affiliation. Students must be informed via a written statement containing prescribed anti-recruiting language and the Commission's phone number.

• ✓Provider locations may not be used for recruiting students for real estate employment/affiliation
• ✓Students must receive a written no-recruiting statement
• ✓The statement must include the State Real Estate Commission number 1-800-822-2113

Cemetery broker applicants take the salesperson's exam, comply with office requirements, and submit recommendations. Entities must designate a qualified broker of record.

• ✓Must pass the salesperson's licensing examination (not the full broker exam) within 3 years prior to a completed application
• ✓An entity must designate an individual licensed as a broker or cemetery broker to serve as broker of record
• ✓Each member/officer engaging in real estate business must hold a standard license as a broker or cemetery broker

Renewal of a reciprocal license requires a certification that the home-state license is current and in good standing. A lapsed reciprocal license may be reactivated without reexamination if the licensee holds a current equivalent standard license in their principal state. A reciprocal licensee who makes Pennsylvania their principal place of business or loses their home-state license must notify the Commission within 30 days and obtain a standard license.

• ✓Renewal requires certification the home-state license is current and in good standing
• ✓Reactivation without reexamination is allowed if the licensee holds a current equivalent standard license in the principal state
• ✓A reciprocal licensee must notify the Commission within 30 days of designating Pennsylvania as principal place of business or failing to maintain a current home-state standard license

For renewal of a reciprocal license, the licensee must complete the application, pay the fee, and provide certification that the license is current and in good standing from the state of the licensee's principal place of business. A licensee who fails to renew may reactivate without reexamination provided they hold the equivalent of a current standard license in their principal place of business state.

• ✓Reciprocal renewal requires certification of current good standing from the principal-place-of-business state
• ✓Reactivation without reexamination requires holding the equivalent of a current standard license in that state

A reciprocal licensee who designates Pennsylvania as their principal place of business, or who fails to maintain a current standard license in the principal-place-of-business state, must notify the Commission within 30 days. To continue practicing at the end of the renewal period, they must obtain a standard license and thereafter comply with standard license requirements, including continuing education.

• ✓Must notify Commission within 30 days of designating PA as principal place of business or losing standard status elsewhere
• ✓Must obtain a standard license to continue practicing and comply with continuing education requirements