Current through Register Vol. 54, No. 21, May 25, 2024
Section 35.331 - Written agreements generally(a) A written agreement between a broker and a principal or between a broker and a consumer whereby the consumer is or may be committed to pay a fee, commission or other valuable consideration shall contain the following: (1) Notification that a Real Estate Recovery Fund exists to reimburse a person who has obtained a final civil judgment against a Commonwealth 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 legal and equitable remedies. Details about the Fund may be obtained by calling the Commission at (717) 783-3658.(2) Notification that payments of money received by the broker on account of a sale-regardless of the form of payment and the person designated as payee (if payment is made by an instrument)-shall be held by the broker in an escrow account pending consummation of the sale or a prior termination thereof.(3) Notification that the broker's commission and the duration of the agreement have been determined as a result of negotiations between the broker, or a licensee employed by the broker, and the seller/landlord or buyer/tenant.(4) A description of the services to be provided and the fees to be charged.(5) Notification about the possibility that the broker or any licensee employed by the broker may provide services to more than one party in a single transaction, and an explanation of the duties owed to the other party and the fees which the broker may receive for those services.(6) Notification of the licensee's continuing duty to disclose in a reasonably practicable period of time any conflict of interest.(7) In an agreement between a broker and a seller/landlord, a statement regarding cooperation with subagents and buyers agents, a disclosure that a buyer agent, even if compensated by the listing broker or seller/landlord will represent the interests of the buyer/tenant and a disclosure of any potential for the broker to act as a dual agent.(8) In an agreement between a broker and a buyer/tenant, an explanation that the broker may be compensated based upon a percentage of the purchase price, the broker's policies regarding cooperation with listing brokers willing to pay buyer's brokers, a disclosure that the broker, even if compensated by the listing broker or seller/landlord will represent the interests of the buyer/tenant and a disclosure of any potential for the broker to act as a dual agent.(b) To the extent that any of the information required in subsection (a) is set forth in the disclosure summaries in §§ 35.336-35.338 (relating to disclosure summary for the purchase or sale of residential or commercial real estate or for the lease of residential or commercial real estate when the licensee is working on behalf of the tenant; disclosure summary for the lease of residential or commercial real estate when the licensee is working on behalf of the owner; and disclosure summary for time-share estates), those provisions need not be repeated, but may be incorporated by reference.The provisions of this § 35.331 adopted February 24, 1989, effective 2/25/1989, 19 Pa.B. 781; amended June 10, 1994, effective 6/11/1994, 24 Pa.B. 2904; corrected October 14, 1994, effective 6/11/1994, 24 Pa.B. 5229; amended March 29, 2002, effective 3/30/2002, 32 Pa.B. 1644.The provisions of this § 35.331 issued under the Real Estate Licensing and Registration Act (63 P. S. §§ 455.101-455.902); amended under sections 404, 606-606.6 and 608-608.3 of the Real Estate Licensing and Registration Act (63 P. S. §§ 455.404, 455.606-455.606f and 455.608-455.608c).
This section cited in 49 Pa. Code § 35.281 (relating to putting contracts, commitments and agreements in writing); and 49 Pa. Code § 35.332 (relating to exclusive listing agreements).