Real Estate in the Poconos

Pennsylvania Law requires real estate brokers and salespersons (licensees) 
to advise consumers of the business relationships permitted by the Real 
Estate Licensing and Registration Act. This notice must be provided to the 
consumer at the first contact where a substantive discussion about real 
estate occurs.  
Before you disclose any information to a licensee, be advised that unless 
you select an agency relationship by signing a written agreement providing 
for such a relationship, the licensee is NOT REPRESENTING YOU. A business 
relationship of any kind will NOT be presumed but must be established 
between the consumer and the licensee.  

Any licensee who provides you with real estate services owes you the 
following duties:  

.   Exercise reasonable professional skill and care which meets the 
practice standards required by the Act.  
.   Deal honestly and in good faith.  
.   Present, in a timely manner, all offers, counteroffers, notices, and 
communications to and from the parties in writing.  
     The duty to present written offers and counteroffers may be waived if 
the waiver is in writing.  
.   Comply with Real Estate Seller Disclosure Act.  
.   Account for escrow and deposit funds.  
.   Disclose all conflicts of interest in a timely manner.  
.   Provide assistance with document preparation and advise the consumer 
regarding compliance with laws pertaining to  
     real estate transactions.  
.   Advise the consumer to seek expert advice on matters about the 
transaction that are beyond the licensee's expertise.  
.   Keep the consumer informed about the transaction and the tasks to be 
completed.  
.   Disclose financial interest in a service, such as financial, title 
transfer and preparation services, insurance,  
     construction, repair or inspection, at the time service is 
recommended or the first time the licensee learns that the  
     service will be used.  
  
A licensee may have the following business relationships with the 
consumer:  
  
Seller Agency:  
Seller agency is a relationship where the licensee, upon entering into a 
written agreement, works only for a seller/landlord. Seller's agents owe 
the additional duties of:  

.   Loyalty to the seller/landlord by acting in the seller's landlord's 
best interest.  
.   Confidentiality, except that a licensee has a duty to reveal known 
material defects about the property.  
.   Making a continuous and good faith effort to find a buyer for the 
property, except while the property is subject to  
     an existing agreement.  
.   Disclosure to other parties in the transaction that the licensee has 
been engaged as a seller's agent.  
  
A seller's agent may compensate other brokers as subagents if the 
seller/landlord agrees in writing. Subagents have the same duties and 
obligations as the seller's agent. Seller's agents may also compensate 
buyer's agents and transaction licensees who do not have the same duties 
and obligations as seller's agents.  
  
If you enter into a written agreement, the licensees in the real estate 
company owe you the additional duties identified above under seller 
agency. The exception is designated agency. See the designated agency 
section in this notice for more information.  
  
Buyer Agency:  
Buyer agency is a relationship where the licensee, upon entering into a 
written agreement, works only for the buyer/tenant. Buyer's agents owe the 
additional duties of:  

.   Loyalty to the buyer/tenant by acting in the buyer's/tenant's best 
interest.  
.   Confidentiality, except that a licensee is required to disclose known 
material defects about the property.  
.   Making a continuous and good faith effort to find a property for the 
buyer/tenant, except while the buyer/tenant is  
     subject to an existing contract.  
.   Disclosure to other parties in the transaction that the licensee has 
been engaged as a buyer's agent.  
  
A buyer's agent may be paid fees, which may include a precentage of the 
purchase price, and, even if paid by the  
seller/landlord, will represent the interests of the buyer/tenant.  
  
If you enter into a written agreement, the licensees in the real estate 
company owe you the additional duties identified above under buyer agency. 
The exception is designated agency. See the designated agency section in 
this notice for more information.  
  
Dual Agency:  
Dual agency is a relationship where the licensee acts as the agent for 
both the seller/landlord and the buyer/tenant in the  
same transaction with the written consent of all parties. Dual agents owe 
the additional duties of:  

.   Taking no action that is adverse or detrimental to either party's 
interest in the transaction.  
.   Making a continuous and good faith effort to find a buyer for the 
property and a property for the buyer, unless either  
     are subject to an existing contract.  
.   Confidentiality, except that a licensee is required to disclose known 
material defects about the property.  
  
Designated Agency:   
In designated agency, the employing broker may, with your consent, 
designate one or more licensees from the real estate company to represent 
you. Other licensees in the company may represent another party and shall 
not be provided with any confidential information. The designated agent(s) 
shall have the duties as listed above under seller agency and buyer 
agency.  
  
In designated agency, the employing broker will be a dual agent and have 
the additional duties of:  

.   Taking reasonable care to protect any confidential information 
disclosed to the licensee.  
.   Taking responsibility to direct and supervise the business activities 
of the licensees who represent the seller and buyer  
     while taking no action that is adverse or detrimental to either 
party's interest in the transaction.  
  
The designation may take place at the time that the parties enter into a 
written agreement, but may occur at a later time.  
Regardless of when the designation takes place, the employing broker is 
responsible for ensuring that confidential  
information is not disclosed.  
  
Transaction Licensee:   
A transaction licensee is a broker or salesperson who provides 
communication or document preparation services or performs other acts for 
which a license is required WITHOUT being the agent or advocate for either 
the seller/landlord or the buyer/tenant. Upon signing a written agreement 
or disclosure statement, a transaction licensee has the additional duty of 
limited confidentiality in that the following information may not be 
disclosed:  

.   The seller/landlord will accept a price less than the asking/listing 
price.  
.   The buyer/tenant will pay a price less than the asking/listing price.  
.   The seller/landlord or buyer/tenant will agree to financing terms 
other than those offered.  
  
Other information deemed confidential by the consumer shall not be 
provided to the transaction licensee.  
  
OTHER INFORMATION ABOUT REAL ESTATE TRANSACTIONS  

The following are negotiable and shall be addressed in an 
agreement/disclosure statement with the licensee:  
.   The duration of the employment, listing agreement or contract.  
.   The fees or commissions.  
.   The scope of the activities or practices.  
.   The broker's cooperation with other brokers, including the sharing of 
fees.  
  
Any sales agreement must contain the zoning classification of a property 
except in cases where the property is zoned solely or primarily to permit 
single family dwellings.  
  
A Real Estate Recovery Fund exists to reimburse any person who has 
obtained a final civil judgment against a Pennsylvania real estate 
licensee owing to fraud, misrepresentation, or deceit in a real estate 
transaction and who has been unable to collect the judgment after 
exhausting all legal and equitable remedies. For complete details about 
the Fund, call (717) 783-3658.