§ 35.285 & § 35.286. Affiliations and Retention/production of records +23Pennsylvania · Real Estate · English

A broker or cemetery broker must retain records pertaining to a real estate transaction for at least 3 years following consummation, except certain acknowledgment notices and subagent/transaction disclosure statements retained for 6 months. Records must be produced for the Commission upon written request or during an office inspection under § 35.246.

• ✓Transaction records must be retained at least 3 years following consummation
• ✓Certain consumer notice acknowledgments and subagent/transaction disclosure statements are retained for 6 months
• ✓Records (and entity records) must be produced upon written request or office inspection under § 35.246

A licensee must provide the Commission, upon proper demand, information regarding a franchisor, network or other parent real estate company with which the licensee is or may become affiliated.

• ✓Licensee must disclose franchisor/network/parent company affiliation information to the Commission upon proper demand

Instructor-led learning may not exceed 7½ clock hours per day (a clock hour = 60 minutes with 50 minutes instruction and a 10-minute break); students may not be required to attend more than 90 consecutive minutes without a break. Course content must match its stated purpose and follow Commission outlines. Prelicensure attendance requires 80% physical presence and continuing education requires 90%. Prelicensure courses earn 1 credit per 15 clock hours and require a proctored exam.

• ✓Instructor-led learning may not exceed 7½ clock hours per day; no class over 90 consecutive minutes without a break
• ✓Prelicensure requires 80% attendance; continuing education requires 90% attendance
• ✓Prelicensure courses earn 1 credit per 15 clock hours and must be graded by proctored exam

Within 30 days after teaching, the provider must give each prelicensure student an official transcript signed by the director; continuing education licensees must receive unalterable transcripts/certificates within 30 days. Providers must maintain financial, physical plant, personnel, curriculum, scholastic, and attendance records at the main location. Continuing education records must be kept 4 years; all other records 10 years. Licensees must retain CE transcripts for 2 years following the biennial renewal period.

• ✓Transcripts/certificates must be provided within 30 days after the course
• ✓Continuing education records retained 4 years; all other records retained 10 years
• ✓Licensees retain CE transcripts/certificates for 2 years following the biennial renewal period

A nonresident applicant must file an irrevocable consent allowing suits to be commenced by service of process on the Commission in Harrisburg, treated as valid as personal service. Served process must be by duplicate copy, with one forwarded to the applicant by certified mail.

• ✓Nonresident applicant must file irrevocable consent to service of process on the Commission
• ✓Service on the Commission is treated as valid as personal service on the applicant
• ✓Process must be served in duplicate; one copy forwarded to applicant by certified mail

A licensee may act as a dual agent only with both parties' written consent. Beyond § 35.292, dual agents must take no adverse action, make good faith efforts for both parties, and maintain confidentiality except material defects.

• ✓A licensee may act as a dual agent only if both parties consent in writing
• ✓Must take no action adverse or detrimental to either party's interest
• ✓Unless otherwise agreed in writing, must make continuous good faith effort to find a buyer/tenant and a property except when subject to an existing contract
• ✓Owes confidentiality except must disclose known material defects about the property
• ✓Showing non-owned/competing properties or an interested property to other buyers does not breach a duty

A licensee may act as a dual agent only if both parties consent in writing. In addition to § 35.292 duties, a dual agent must take no action adverse or detrimental to either party's interest, make continuous good faith effort for both sides (unless otherwise agreed), and maintain confidentiality except disclosing known material defects.

• ✓A licensee may act as a dual agent only with both parties' written consent
• ✓A dual agent must take no action adverse or detrimental to either party's interest
• ✓A dual agent must disclose known material defects despite confidentiality duties

A salesperson may assist in property management only if the work is supervised and controlled by the employing broker. The salesperson may not independently negotiate lease terms nor execute a lease on behalf of the lessor.

• ✓A salesperson's property management work must be supervised and controlled by the employing broker
• ✓A salesperson may not independently negotiate lease terms or execute a lease on behalf of the lessor

A broker or salesperson selling or leasing his own real estate must comply with the act and this chapter and must disclose his licensed status to a prospective buyer or lessee before they enter into an agreement of sale or lease.

• ✓A licensee selling/leasing own real estate must comply with the act and this chapter
• ✓Licensed status must be disclosed to a prospective buyer/lessee before entering an agreement of sale or lease

A rental listing referral agent's list of rentals given to a prospective tenant must meet the tenant's desired specifications per the rental listing agreement. The agent must verify availability no more than 4 days prior to the date the agent collects a fee.

• ✓The rental list must meet the tenant's specifications set forth in the rental listing agreement
• ✓Availability must be verified no more than 4 days prior to collecting a fee from the prospective tenant

The applicant must prepare and deliver at its own expense an annually revised, Commission-approved offering statement to each prospective purchaser, disclosing price, terms, finances, and detailed property conditions plus a disclaimer that the Commission has not approved the offer.

• ✓Offering statement must be revised annually and Commission-approved
• ✓Must disclose price, terms, financial condition, taxes, utilities, water, roads, improvements, and objectionable conditions
• ✓Front page must state in bold/italics that Commission requirements do not constitute approval of the land

The certificate of approval and satellite location list must be displayed at the main location, and the approved name at each teaching location. The Commission may conduct routine inspections up to four times per year while classes are in session, plus special inspections upon complaint or as follow-up. Inspectors may examine records, inspect premises, monitor instructors, and interview personnel/students. A provider terminating operations must submit a termination plan within 60 days including termination date, records transfer date, and refund/credit procedures.

• ✓Routine inspections may occur no more than four times per year while classes are in session
• ✓Special inspections may occur upon complaint, reasonable belief of noncompliance, or as follow-up
• ✓Termination plan must be submitted within 60 days including termination date, records transfer, and refund procedures

A licensee must notify the Commission within 30 days of being convicted of, or pleading guilty/nolo contendere to, a felony or misdemeanor, and within 30 days of receiving notice of disciplinary action by another jurisdiction's real estate licensing authority.

• ✓Notify the Commission within 30 days of conviction/plea to a felony or misdemeanor
• ✓Notify the Commission within 30 days of receiving notice of out-of-state disciplinary action

A broker/cemetery broker whose license is suspended must return the license to the Commission and post the Commission-provided notice prominently on or near the public entrance of the main and branch offices. Failure to post constitutes grounds for further disciplinary action.

• ✓A suspended broker must return the license and post the Commission's notice at main and branch offices
• ✓The notice must be posted prominently on or near the public entrance to each office
• ✓Failure to post is grounds for further disciplinary action

A broker with written consent may designate separate licensees to exclusively represent seller and buyer in the same transaction, making the broker a dual agent. Designation can occur any time with proper consent, and confidential information must be protected.

• ✓A broker, with written principal consent, may designate licensees to exclusively represent the seller/landlord and the buyer/tenant in the same transaction
• ✓Designation may take place at any time; later designation requires written consent and renunciation of prior agency where applicable
• ✓Non-designated licensees have no agency relationship with either party
• ✓Designated agents owe loyalty to their principal, must make continuous good faith effort, must disclose the other party is represented by a designated agent of the same broker, and confirm the broker is a dual agent
• ✓The employing broker as dual agent must protect confidential information and supervise designated licensees without acting adverse to either party

A broker, with written consent of the principal, may designate one or more licensees to act exclusively as the seller/landlord's agent and others exclusively as the buyer/tenant's agent in the same transaction. The broker and designated agents must use reasonable care to protect confidential information. Non-designated licensees have no agency relationship with either party.

• ✓Designation of exclusive seller and buyer agents in the same transaction requires the principal's written consent
• ✓The broker and designated agents must use reasonable care to protect confidential information
• ✓Non-designated licensees employed by the broker have no agency relationship with either party

Each designated agent owes loyalty to their principal, continuous good faith effort, disclosure that the other party is represented by another designated agent of the same broker, and confirmation that the broker is a dual agent. The employing broker acts as a dual agent, protecting confidential information and supervising designated licensees while taking no adverse action.

• ✓Each designated agent owes loyalty and must disclose the other party is represented by a designated agent of the same broker
• ✓The employing broker acts as a dual agent, protecting confidential information and supervising designated agents without adverse action

A broker, developer, or subdivider ('applicant') proposing promotional sales in Pennsylvania of property located outside the Commonwealth must submit full particulars and proposed terms for Commission approval before doing so, and bear the Commission's investigation/inspection expenses. No one may represent that the property was inspected, approved, or passed upon by the Commission. Applicants must notify the Commission at least 10 days before efforts to sell/advertise through parties or group media.

• ✓Applicant must obtain Commission approval before promotional sales of out-of-state property in Pennsylvania
• ✓No representation may be made that property was inspected or approved by the Commission or a State official
• ✓Applicant must notify the Commission at least 10 days in advance of party/group-media sales efforts

The applicant must prepare and deliver, at its own expense, an annually revised offering statement (Commission-approved) to each prospective purchaser containing a detailed description, price, terms, and financial information, plus disclosures on tax liabilities, guarantees, transportation, terrain, climate, improvements, roads, water, utilities, objectionable conditions, sewage, recreational facilities, and distance to populated areas. It must include a large bold face/italics disclaimer that Commission requirements do not constitute approval of the land and the Commission has not passed on the offer's merits.

• ✓Offering statement must be Commission-approved, revised annually, and delivered to each prospective purchaser at applicant's expense
• ✓Front page must carry a large bold face/italics disclaimer that the Commission has not approved the land or passed on the offer's merits

A nonresident applicant must file an irrevocable consent that suits may be commenced against it in Pennsylvania courts via service on the Commission in Harrisburg, taken as valid as personal service. Served process/pleadings must be in duplicate—one filed with the Commission and one forwarded by certified mail to the applicant's main office. Annually, applicants must furnish extensive documents for review (ownership, financials, property status, improvements, sewage, drainage, zoning, advertising, location, pricing, and financial arrangements).

• ✓Nonresident applicant must file irrevocable consent to service of process on the Commission in Harrisburg
• ✓Served process must be in duplicate: one filed with Commission, one sent by certified mail to applicant's main office
• ✓Extensive ownership, property, and financial documents must be furnished annually for Commission review

A licensee must provide to the Commission or its representatives, upon proper demand, information regarding any franchisor, network, or other parent real estate company with which the licensee is or may become affiliated.

• ✓Licensees must disclose franchisor, network, or parent company affiliation information upon Commission demand
• ✓This applies to current or prospective affiliations

Applicants must annually furnish detailed report information for Commission review, covering ownership, property status, improvements, bonds, sewage, drainage, zoning, advertising, location, comparable prices, and financial arrangements.

• ✓Must furnish annually owner names, officers, and holders of 10% or more of stock
• ✓Must disclose property status, improvements, bonding, sewage, drainage, and zoning details
• ✓Must disclose location details, comparable lot prices, and financial/escrow arrangements

A broker or salesperson holding a standard license must, as a condition precedent to renewing a current license, complete 14 hours of Commission-approved continuing education during the preceding license period, completed by the May 31 renewal deadline. For reactivating and renewing a noncurrent license, 14 hours must be completed in the 2-year period preceding submission, and the same coursework cannot satisfy both the current and reactivation requirements.

• ✓Standard license renewal requires 14 hours of Commission-approved continuing education per license period
• ✓Continuing education must be completed by the May 31 renewal deadline
• ✓Reactivation/renewal of a noncurrent license requires 14 hours within the preceding 2-year period, not reused coursework

The continuing education requirement does not apply to reciprocal license holders, cemetery brokers, cemetery salespersons, builder-owner salespersons, timeshare salespersons, campground membership salespersons, or rental listing referral agents holding standard licenses. Licensees must provide the Commission with information necessary to establish compliance.

• ✓CE requirement does not apply to reciprocal holders, cemetery brokers/salespersons, builder-owner, timeshare, campground membership salespersons, or rental listing referral agents
• ✓Licensees must provide the Commission with information establishing CE compliance

Beyond § 35.292, a transaction licensee is not an agent/advocate and owes only limited confidentiality regarding price and financing willingness of the parties.

• ✓Must advise the consumer that the licensee is not acting as an agent/advocate and should not receive confidential information
• ✓Owes limited confidentiality: may not disclose that the seller/landlord will accept less than asking price
• ✓May not disclose that the buyer/tenant will pay more than the written offer or that a party will agree to different financing terms

In addition to § 35.292 duties, a transaction licensee must advise the consumer that the licensee is not an agent/advocate and should not receive confidential information, and owes limited confidentiality — may not disclose that the seller will accept less than listing price, that the buyer will pay more than a written offer, or that a party will agree to other financing terms.

• ✓A transaction licensee must advise the consumer it is not acting as an agent or advocate and should not receive confidential information
• ✓A transaction licensee may not disclose that the seller will accept less, the buyer will pay more, or a party will accept other financing terms

A broker or cemetery broker must retain records pertaining to a real estate transaction for at least 3 years following consummation, except certain records that must be retained for 6 months.

• ✓Transaction records must be retained for at least 3 years following consummation
• ✓Certain specified records must be retained for 6 months

Section 35.375 provides an exemplary affidavit of consent to service of jurisdiction fulfilling § 35.372 nonresident requirements, executed by corporate officers and notarized.

• ✓Affidavit is exemplary of § 35.372 nonresident consent requirements
• ✓Must be executed by President and Secretary and notarized with corporate seal

A broker must deposit money belonging to another into an insured escrow account, held pending consummation or termination without dispute, then paid to the entitled party. Special rules apply to rents, installment land contracts, cemetery property, and security deposits.

• ✓Money belonging to another must be deposited into an escrow account in a Federally- or State-insured bank pending consummation or termination without dispute
• ✓For entity brokers, the broker of record is responsible for ensuring the escrow duty is performed
• ✓Rents received as property manager are not held in escrow but in a separate rental management account distinct from escrow and general business accounts
• ✓Under installment land purchase agreements, consummation occurs when the buyer can record the agreement; for cemetery property, when the buyer receives a copy of the agreement
• ✓Security deposit payover duty arises when tenancy ends; deposits may transfer to the lessor/lessor's broker upon written notice to tenants of the institution, address, and amount

Case law (Ramalingam) clarifies that where a deposit was never entrusted to the agent and the buyer knowingly paid the builder directly, no escrow duty arises.

• ✓No duty to deposit funds into escrow exists where the deposit was never entrusted to the agent and the buyer knowingly agreed to pay the builder directly (Ramalingam v. Keller Williams)

A broker must deposit money received belonging to another into an escrow account in a Federally or State-insured bank, held pending consummation or prior termination not involving a dispute, then pay over the full amount to the party entitled. If the broker is an entity, the broker of record ensures the escrow duty is performed. Rents received as property manager go into a separate rental management account, not escrow.

• ✓Money belonging to another must be deposited into an insured escrow account and paid over to the party entitled at consummation/termination
• ✓For an entity broker, the broker of record is responsible for ensuring escrow duty is performed
• ✓Rents received as property manager are deposited in a separate rental management account, not escrow

Under an installment land purchase agreement, the transaction is considered consummated when the buyer is afforded the opportunity to record the agreement. For cemetery property agreements, consummation occurs when the buyer receives a copy. A security deposit duty to pay over arises when the tenancy ends; deposits may be transferred to the lessor's/lessor's broker's escrow on written notice to tenants.

• ✓Installment land purchase agreements are consummated when the buyer can record the agreement
• ✓Cemetery property agreements are consummated when the buyer receives a copy of the agreement
• ✓A security deposit duty to pay over arises when the tenancy ends

Brokers and salespersons holding standard licenses must complete 14 hours of Commission-approved continuing education during the preceding license period as a condition of renewal, completed by the May 31 renewal deadline.

• ✓14 hours of Commission-approved CE required per license period for standard broker/salesperson renewal
• ✓CE must be completed by the May 31 renewal deadline
• ✓CE is a condition precedent to renewal of a current standard license

A licensee reactivating and renewing a noncurrent standard license must complete 14 hours of Commission-approved CE within the 2-year period before submitting the reactivation application, and may not reuse the same coursework used for regular renewal.

• ✓14 CE hours required within the 2-year period preceding reactivation application
• ✓Same coursework may not satisfy both reactivation and regular renewal requirements

The CE requirement does not apply to reciprocal license holders or to cemetery brokers/salespersons, builder-owner salespersons, timeshare salespersons, campground membership salespersons, and rental listing referral agents holding standard licenses. Licensees must provide compliance information to the Commission.

• ✓CE requirement excludes reciprocal license holders and certain specialty license categories
• ✓Excluded categories include cemetery, builder-owner, timeshare, campground, and rental listing referral licensees
• ✓Licensee must provide the Commission with information establishing compliance

A licensee may not advertise the sale/lease of real estate or solicit prospective buyers/tenants without the authority of the seller/lessor or their agent. A rental listing referral agent may not publish rental property information if the lessor/property manager expressly states the property is not to be included.

• ✓No advertising/soliciting without the authority of the seller/lessor or their agent
• ✓A rental listing referral agent may not publish property information the lessor expressly excludes

A licensee may not solicit the sale of real estate with such frequency as to amount to clear harassment of the owner. Attempting to bring about panic selling to profit is bad faith under section 604(a)(20); panic selling means frequent efforts to sell in a neighborhood based on fear of declining values not grounded in the intrinsic value of the real estate.

• ✓Solicitation may not rise to the level of clear harassment of the owner/controller of the real estate
• ✓Attempting to bring about panic selling to profit is bad faith under section 604(a)(20)
• ✓Proof of systematic solicitation of listings may be sufficient but not conclusive evidence of panic selling

A broker's escrow duty cannot be waived or altered by any agreement among the parties, the broker, or other brokers involved.

• ✓A broker's escrow duty may not be waived or altered by agreement between the parties
• ✓It may not be waived between the broker and the parties or between the broker and other brokers involved

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

• ✓A licensee must disclose licensee status in advertisements for his own real estate
• ✓The disclosure requirement does not apply if the property is listed with a real estate company

Brokerage companies (including sole proprietorships) must advertise only under the business name on their license. Licensees using a nickname must include it on applications/renewals. Advertisements by an associate broker/salesperson must contain the employing broker's business name and telephone number, of equal size. Case law holds the numbers must match the broker's directory-listed number.

• ✓Companies must advertise only under the business name designated on their license
• ✓Advertisements by salespersons/associate brokers must contain the employing broker's business name and telephone number of equal size
• ✓A phone number purchased by the broker but connecting directly to the salesperson (not matching directory assistance) violates the rule (Campo/D'Alonzo)

The rule assigns escrow responsibility depending on who receives the deposit and whether the buyer had prior notice of delivery to the listing broker.

• ✓If a deposit is tendered to the listing broker rather than the selling broker, the listing broker assumes the escrow duty
• ✓If tendered to the selling broker with prior written buyer notice, the listing broker assumes the duty; the buyer must acknowledge in writing the listing broker's name, subagency, licensed status, and payee designation
• ✓If tendered to the selling broker without prior notice, the selling broker assumes the escrow duty

Advertisements employing lotteries/contests or offering prizes, certificates, gifts or free lots must contain a description, prerequisites, limitations on number, fair market value (same size type in print), and odds of winning (same size type, immediately adjacent). The licensee must maintain records of distributions and recipients. Noncompliance and misleading descriptions are deceptive conduct under section 604(a)(18).

• ✓Prize/gift advertisements must disclose description, prerequisites, quantity limits, fair market value, and odds of winning
• ✓In print, fair market value and odds must be in the same size type as the item description
• ✓Failure to comply, misleading descriptions, or advertising unavailable prizes are deceptive conduct under section 604(a)(18)

A broker's advertisement about 'sales volume' or 'production' must refer only to closed transactions (a listing sold or a sale after a fully executed deed is delivered). Market position advertisements must identify the municipality comprising the market. Advertisements about number of offices must refer only to those with branch office licenses.

• ✓'Sales volume'/'production' advertisements must refer only to closed transactions
• ✓Market position advertisements must identify the municipality that the market comprises
• ✓Advertisements about the number of offices must refer only to offices with issued branch office licenses

A real estate company, franchise or network may promote its association with a real estate education provider or accredited college, but any association including an ownership interest must be disclosed in all promotions. Ownership interest includes any proprietary or beneficial interest producing direct or indirect economic benefit.

• ✓Any association/affiliation with an education provider that includes an ownership interest must be disclosed in all promotions
• ✓Ownership interest includes proprietary or beneficial interests producing direct or indirect economic benefit

A licensee in an agency relationship may not knowingly reveal or use the principal's confidential information during or after termination, except when: the principal consents; disclosure is to another licensee/party acting for the principal; disclosure is required by subpoena/court order; disclosure prevents the principal from committing a crime; or the information is used to defend against an accusation of wrongdoing.

• ✓Confidential information may not be revealed or used during or after termination of the agency relationship, subject to listed exceptions
• ✓Exceptions include principal consent, subpoena/court order, preventing a crime, and self-defense in legal proceedings

A licensee and consumer may enter statutory relationships under sections 606.2-606.4 and 606.6. A broker may not extend or delegate the agency relationship without the principal's written consent. Compensation paid to a cooperating broker does not create an agency relationship with that other broker.

• ✓A broker may not extend or delegate the agency relationship without the principal's written consent
• ✓Compensation to a cooperating broker does not create an agency relationship between the consumer and that broker