Authority
The provisions of this § 35.335a issued under sections 404 and 604(a)(15.1) of the Real Estate Licensing and Registration Act (63 P.S. § § 455.404 and 455.604(a)(15.1)); and amended under section 404 of the Real Estate Licensing and Registration Act (63 P.S. § 455.404).
Source
The provisions of this § 35.335a adopted December 3, 2010, effective December 4, 2010, 40 Pa.B. 6937; amended December 9, 2016, effective December 10, 2016, 46 Pa.B. 7638. Immediately preceding text appears at serial pages (354073) to (354079).
§ 35.336. 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.
(a) Licensees shall provide the consumer with the Consumer Notice at their initial interview.
(b) Licensees shall retain a copy of the signed/refused acknowledgement for 6 months and provide the consumer a copy of the entire disclosure summary.
(c) The Disclosure Summary must be entitled Consumer Notice and must be in the following format available from the Commission office upon request by phone, fax or internet:
CONSUMER NOTICE
THIS IS NOT A CONTRACT
In an effort to enable consumers of real estate services to make informed decisions about the business relationships they may have with real estate brokers and salespersons (licensees), the Real Estate Licensing and Registration Act (RELRA) requires that consumers be provided with this Notice at the initial interview.
Licensees may enter into the following agency relationships with consumers:
Seller Agent
As a seller agent, the licensee and the licensees company works exclusively for the seller/landlord and must act in the sellers/landlords best interest, including making a continuous and good faith effort to find a buyer/tenant except while the property is subject to an existing agreement. All confidential information relayed by the seller/landlord must be kept confidential except that a licensee must reveal known material defects about the property. A subagent has the same duties and obligations as the seller agent.
Buyer Agent
As a buyer agent, the licensee and the licensees company work exclusively for the buyer/tenant even if paid by the seller/landlord. The buyer agent must act in the buyer/tenants best interest, including making a continuous and good faith effort to find a property for the buyer/tenant, except while the buyer is subject to an existing contract, and must keep all confidential information, other than known material defects about the property, confidential.
Dual Agent
As a dual agent, the licensee works for both the seller/landlord and the buyer/tenant. A dual agent may not take any action that is adverse or detrimental to either party but must disclose known material defects about the property. A licensee must have the written consent of both parties before acting as a dual agent.
Designated Agent
As a designated agent, the broker of the selected real estate company designates certain licensees within the company to act exclusively as the seller/landlord agent and other licensees within the company to act exclusively as the buyer/tenant agent in the transaction. Because the broker supervises all of the licensees, the broker automatically serves as a dual agent. Each of the designated licensees are required to act in the applicable capacity explained previously. Additionally, the broker has the duty to take reasonable steps to assure that confidential information is not disclosed within the company.
In addition, a licensee may serve as a Transaction Licensee.
A transaction licensee provides real estate services without having any agency relationship with a consumer. Although a transaction licensee has no duty of loyalty or confidentiality, a transaction licensee is prohibited from disclosing that:
The seller will accept a price less than the asking/listing price,
The buyer will pay a price greater than the price submitted in the written offer, and
The seller or buyer will agree to financing terms other than those offered.
Like licensees in agency relationships, transaction licensees must disclose known material defects about the property.
Regardless of the business relationship selected, all licensees owe consumers the duty to:
Exercise reasonable professional skill and care which meets the practice standards required by the RELRA.
Deal honestly and in good faith.
Present, as soon as practicable, all written offers, counteroffers, notices and communications to and from the parties. This duty may be waived by the seller where the sellers property is under contract and the waiver is in writing.
Comply with the Real Estate Seller Disclosure Law.
Account for escrow and deposit funds.
Disclose, as soon as practicable, all conflicts of interest and financial interests.
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 licensees 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.
The following contractual terms are negotiable between the licensee and the consumer and must be addressed in an agreement/disclosure statement:
The duration of the licensees employment, listing agreement or contract.
The licensees fees or commission.
The scope of the licensees activities or practices.
The brokers cooperation with and sharing of fees with other brokers.
All sales agreements must contain the propertys zoning classification except where the property is zoned solely or primarily to permit single family dwellings.
The 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.
Before you disclose any financial information to a licensee, be advised that unless you select a business relationship by signing a written agreement, the licensee is NOT representing you. A business relationship is NOT presumed.
ACKNOWLEDGMENT
I acknowledge that I have received this disclosure.
Date:
(Consumers printed name) (Consumers signature)
Date:
(Consumers printed name) (Consumers signature)
I certify that I have provided this document to the above consumer during the initial interview.
Date:
(Licensees printed name) (Licensees signature) (License #)
Adopted by the State Real Estate Commission in 49 Pa. Code § 35.336.
Authority
The provisions of this § 35.336 issued under section 608 of the Real Estate Licensing and Registration Act (63 P.S. § 455.608); amended under sections 404, 606606.6 and 608608.3 of the Real Estate Licensing and Registration Act (63 P.S. § § 455.404, 455.606455.606f and 455.608455.608c).
Source
The provisions of this § 35.336 adopted January 7, 2000, effective January 8, 2000, 30 Pa.B. 228; amended March 29, 2002, effective March 30, 2002, 32 Pa.B. 1644; amended November 14, 2008, effective December 15, 2008, however, licensees have until June 15, 2009, to begin using the new Consumer Notice form, 38 Pa.B. 6282. Immediately preceding text appears at serial pages (287915) to (287919).
Cross References
This section cited in 49 Pa. Code § 35.201 (relating to definitions); 49 Pa. Code § 35.284 (relating to disclosures of business relationships); 49 Pa. Code § 35.286 (relating to retention and production of records); and 49 Pa. Code § 35.331 (relating to written agreements generally).
§ 35.337. Disclosure summary for the lease of residential or commercial real estate when the licensee is working on behalf of the owner.
The disclosure summary for the lease of residential or commercial property shall be in the following format:
CONSUMER NOTICE
THIS IS NOT A CONTRACT
(LICENSEE) HEREBY STATES THAT WITH RESPECT TO THIS PROPERTY, (DESCRIBE PROPERTY) I AM ACTING IN THE FOLLOWING CAPACITY: (CHECK ONE)
(I) OWNER/LANDLORD OF THE PROPERTY;
(II) A DIRECT EMPLOYEE OF THE OWNER/LANDLORD; OR
(III) AN AGENT OF THE OWNER/LANDLORD PURSUANT TO A PROPERTY MANAGEMENT OR EXCLUSIVE LEASING AGREEMENT.
I ACKNOWLEDGE THAT I HAVE RECEIVED THIS NOTICE:
DATE:
PRINT (CONSUMER) PRINT (CONSUMER)
SIGNED (CONSUMER) SIGNED (CONSUMER)
ADDRESS (OPTIONAL): ADDRESS (OPTIONAL):
PHONE NUMBER PHONE NUMBER
(OPTIONAL): (OPTIONAL):
I CERTIFY THAT I HAVE PROVIDED THIS NOTICE:
(LICENSEE) (DATE)
Authority
The provisions of this § 35.337 issued under sections 404, 606606.6 and 608608.3 of the Real Estate Licensing and Registration Act (63 P.S. § § 455.404, 455.606455.606f and 455.608455.608c).
Source
The provisions of this § 35.337 adopted March 29, 2002, effective March 30, 2002, 32 Pa.B. 1644.
Cross References
This section cited in 49 Pa. Code § 35.284 (relating to disclosures of business relationships); 49 Pa. Code § 35.286 (relating to retention and production of records); and 49 Pa. Code § 35.331 (relating to written agreements generally).
§ 35.338. Disclosure summary for time-share estates.
The disclosure summary for time-share estates shall be in the following format:
CONSUMER NOTICE
THIS IS NOT A CONTRACT
(LICENSEE) HEREBY STATES THAT WITH RESPECT TO THIS PROPERTY, (DESCRIBE PROPERTY) I AM ACTING IN THE FOLLOWING CAPACITY: (CHECK ONE)
(I) OWNER OF THE PROPERTY;
(II) A DIRECT EMPLOYEE OF THE OWNER; OR
(III) AN AGENT OF THE OWNER PURSUANT TO A PROPERTY MANAGEMENT OR EXCLUSIVE LEASING OR SELLING AGREEMENT.
I ACKNOWLEDGE THAT I HAVE RECEIVED THIS NOTICE:
(CONSUMER) (DATE)
I CERTIFY THAT I HAVE PROVIDED THIS NOTICE:
(LICENSEE) (DATE)
Authority
The provisions of this § 35.338 issued under sections 404, 606606.6 and 608608.3 of the Real Estate Licensing and Registration Act (63 P.S. § § 455.404, 455.606455.606f and 455.608455.608c).
Source
The provisions of this § 35.338 adopted March 29, 2002, effective March 30, 2002, 32 Pa.B. 1644.
Cross References
This section cited in 49 Pa. Code § 35.284 (relating to disclosures of business relationships); 49 Pa. Code § 35.286 (relating to retention and production of records); and 49 Pa. Code § 35.331 (relating to written agreements generally).
§ 35.339. Oral disclosure.
The disclosure shall be read verbatim:
THE REAL ESTATE LAW REQUIRES THAT I PROVIDE YOU WITH A WRITTEN CONSUMER NOTICE THAT DESCRIBES THE VARIOUS BUSINESS RELATIONSHIP CHOICES THAT YOU MAY HAVE WITH A REAL ESTATE LICENSEE. SINCE WE ARE DISCUSSING REAL ESTATE WITHOUT YOU HAVING THE BENEFIT OF THE CONSUMER NOTICE, I HAVE THE DUTY TO ADVISE YOU THAT ANY INFORMATION YOU GIVE ME AT THIS TIME IS NOT CONSIDERED TO BE CONFIDENTIAL, AND ANY INFORMATION YOU GIVE ME WILL NOT BE CONSIDERED CONFIDENTIAL UNLESS AND UNTIL YOU AND I ENTER INTO A BUSINESS RELATIONSHIP. AT OUR FIRST MEETING I WILL PROVIDE YOU WITH A WRITTEN CONSUMER NOTICE WHICH EXPLAINS THOSE BUSINESS RELATIONSHIPS AND MY CORRESPONDING DUTIES TO YOU.
Authority
The provisions of this § 35.339 issued under sections 404, 606606.6 and 608608.3 of the Real Estate Licensing and Registration Act (63 P.S. § § 455.404, 455.606455.606f and 455.608455.608c).
Source
The provisions of this § 35.339 adopted March 29, 2002, effective March 30, 2002, 32 Pa.B. 1644.
Cross References
This section cited in 49 Pa. Code § 35.284 (relating to disclosures of business relationships).
§ 35.340. Comparative market analysis.
A comparative market analysis shall contain the following statement printed conspicuously and without change on the first page:
This analysis has not been performed in accordance with the Uniform Standards of Professional Appraisal Practice which requires valuers to act as unbiased, disinterested third parties with impartiality, objectivity and independence and without accommodation of personal interest. It is not to be construed as an appraisal and may not be used as such for any purpose.
Authority
The provisions of this § 35.340 issued under sections 404, 606606.6 and 608608.3 of the Real Estate Licensing and Registration Act (63 P.S. § § 455.404, 455.606455.606f and 455.608455.608c).
Source
The provisions of this § 35.340 adopted March 29, 2002, effective March 30, 2002, 32 Pa.B. 1644.
Subchapter F. REAL ESTATE EDUCATION PROVIDERS
APPROVAL OF REAL ESTATE EDUCATION PROVIDERS
Sec.
35.341. Approval of real estate education provider.
35.342. Approval of educational director.
35.343. Renewal of education provider approval.
35.344. Withdrawal of education provider or director approval.
ADMINISTRATION OF REAL ESTATE EDUCATION PROVIDERS
35.351. Duty of school director.
35.351a. [Reserved].
35.352. Location and facilities.
35.353. Selection of instructors.
35.354. Prohibited forms of advertising and solicitation.
35.355. Prospectus materials.
35.356. Tuition and other fees.
35.357. Student enrollment agreements.
35.358. Administration of curriculum.
35.359. Course documentation.
35.360. Records.
35.361. Display of documents and approved name.
35.362. Inspection of real estate education provider.
35.363. Termination of operations.
APPROVAL OF REAL ESTATE EDUCATION PROVIDERS
§ 35.341. Approval of real estate education provider.
A real estate education provider shall obtain the Commissions approval before commencing operations in this Commonwealth. To obtain approval from the Commission, the real estate education provider shall:
(1) Be owned by persons who possess good moral character or, if the owner is a corporation, have officers and directors who meet this requirement.
(2) Have a name that is acceptable to the Commission.
(3) Have a director of operations who meets the requirements of § 35.342 (relating to approval of real estate educational director).
(4) Designate a person or entity to serve as custodian of records if the real estate education provider were to terminate operations.
(5) Post a surety bond of $10,000 to the Commonwealth for the protection of the contractual rights of the real estate education providers students.
(6) Submit a completed real estate education provider approval application to the Commission with:
(i) A completed real estate education provider owner application with:
(A) A resume of the applicants experience in owning, administrating or teaching in an accredited college as defined in § 35.201 (relating to definitions) or as a real estate education provider.
(B) Two letters of reference from responsible persons relating to the applicants integrity and to the applicants previous experience, if any, in the administration of an educational program.
(C) Certified copies of court documents related to a conviction of, or plea of guilty or nolo contendere to, a felony or misdemeanor and the sentence imposed.
(ii) A completed real estate education provider director application with:
(A) Credentials evidencing the qualifications required of the applicant under § 35.342.
(B) Certified copies of court documents related to conviction of, or plea of guilty or nolo contendere to, a felony or misdemeanor and the sentence imposed.
(iii) A fictitious name registration, if the real estate education provider has a fictitious name.
(iv) A copy of the registration documentation approved by the Departments Corporation Bureau, if the real estate education provider is a corporation, limited liability partnership, limited partnership or limited liability company.
(v) A copy of the surety bond required under paragraph (5).
(vi) A copy of the student enrollment agreement.
(vii) A copy of the school transcript.
(viii) A statement of the prerequisites for admission.
(ix) A statement of policy regarding refund of tuition and other fees.
(x) The approval fee prescribed in § 35.203 (relating to fees).
(xi) For the main school location and each proposed satellite location, a sketch or photograph of the real estate education providers sign.
Authority
The provisions of this § 35.341 issued under the Real Estate Licensing and Registration Act (63 P. S. § § 455.101455.902); amended under section 404.1 of the Real Estate Licensing and Registration Act (63 P. S. § 455.404a).
Source
The provisions of this § 35.341 adopted February 24, 1989, effective February 25, 1989, 19 Pa.B. 781; amended June 10, 1994, effective June 11, 1994, 24 Pa.B. 2904; amended December 10, 2004, effective December 11, 2004, 34 Pa.B. 6530; corrected March 4, 2005, effective December 11, 2004, 35 Pa.B. 1567; amended December 21, 2012, effective December 22, 2012, 42 Pa.B. 7647. Immediately preceding text appears at serial pages (352067) to (352068).
Cross References
This section cited in 49 Pa. Code § 35.271 (relating to examination for brokers license); 49 Pa. Code § 35.272 (relating to examination for salespersons license); 49 Pa. Code § 35.273 (relating to examination for cemetery brokers license); 49 Pa. Code § 35.275 (relating to examination for rental listing referral agents license); 49 Pa. Code § 35.342 (relating to approval of educational director); 49 Pa. Code § 35.344 (relating to withdrawal of real estate education provider or director approval); 49 Pa. Code § 35.354 (relating to prohibited forms of advertising and solicitation); and 49 Pa. Code § 35.385 (relating to continuing education providers).
§ 35.342. Approval of real estate educational director.
(a) A real estate education provider shall obtain the Commissions approval of its director before commencing operations in this Commonwealth. The applicant for director shall have a combination of experience in teaching, supervision and educational administration which, in the opinion of the Commission, will enable the applicant to competently administer a real estate education program in areas that include, but are not limited to, the following: evaluation of instructor performance; evaluation of curriculum and specific course content; analysis of course examinations; and management of records and facilities.
(b) The Commission may provisionally approve an otherwise qualified applicant for director who lacks sufficient background in teaching, supervision or educational administration. A provisionally approved director shall obtain the requisite qualifications in the time and manner prescribed by the Commission.
(c) An approved real estate education provider shall obtain the Commissions approval before changing directors. The prospective director shall submit to the Commission the information required by § 35.341(6)(ii) (relating to approval of real estate education provider).
(d) If the director dies, withdraws or is terminated, an approved real estate education provider will not lose its approved status, nor will it be required to terminate operations within the Commonwealth provided that:
(1) The real estate education provider shall submit the name of an interim director to the Commission within 15 days of the death, withdrawal or termination of the director.
(2) The interim director is authorized to operate for up to 90 days following the death, withdrawal or termination of the director. Thereafter, continued operation is contingent upon approval of a director under subsection (a) or (b).
(3) No changes may be made to the curriculum, testing or facilities until the new director is approved by the Commission.
Authority
The provisions of this § 35.342 issued under the Real Estate Licensing and Registration Act (63 P. S. § § 455.101455.902).
Source
The provisions of this § 35.342 adopted February 24, 1989, effective February 25, 1989, 19 Pa.B. 781; amended December 10, 2004, effective December 11, 2004, 34 Pa.B. 6530. Immediately preceding text appears at serial page (263899).
Notes of Decisions
Experience
The Commissions conclusion that applicants term as a school board director did not provide applicant with sufficient experience in educational supervision and administration to run a real estate school was not arbitrary and capricious. Black v. Barnes , 776 F. Supp. 1000 (3rd Cir. 1991).
Cross References
This section cited in 49 Pa. Code § 35.341 (relating to approval of real estate education provider); and 49 Pa. Code § 35.351a (relating to assistant school director).
§ 35.343. Renewal of real estate education provider approval.
An approved real estate education provider shall renew its approval annually. To obtain renewal of approval, a real estate education provider shall submit a completed renewal of approval application to the Commission with:
(1) A notarized certification of compliance with this chapter signed by the director.
(2) A copy of the $10,000 surety bond showing coverage for the upcoming renewal period.
(3) The fee for renewal of approval prescribed in § 35.203 (relating to fees).
Authority
The provisions of this § 35.343 issued under the Real Estate Licensing and Registration Act (63 P. S. § § 455.101455.902).
Source
The provisions of this § 35.343 adopted February 24, 1989, effective February 25, 1989, 19 Pa.B. 781; amended June 10, 1994, effective June 11, 1994, 24 Pa.B. 2904; amended December 10, 2004, effective December 11, 2004, 34 Pa.B. 6530. Immediately preceding text appears at serial pages (263899) to (263900).
§ 35.344. Withdrawal of real estate education provider or director approval.
(a) The Commission may, following notice and hearing under 2 Pa.C.S. § § 501508 (relating to practice and procedure of Commonwealth agencies), withdraw the approval of a real estate education provider that it finds guilty of:
(1) Having acquired the Commissions approval by misrepresentation.
(2) Failing to maintain compliance with § 35.341 (relating to approval of real estate education provider).
(3) Violating a requirement of § § 35.35135.363 (relating to administration of real estate education providers).
(b) The Commission may, following notice and hearing under 2 Pa.C.S. § § 501508, withdraw the approval of a director that it finds guilty of:
(1) Any conduct in connection with the administration of a real estate education provider which demonstrates bad faith, dishonesty, untrustworthiness or incompetency.
(2) Failing to comply with § 35.341 (relating to approval of real estate education provider).
(3) Having had a real estate license revoked or suspended by the Commission or by a real estate licensing authority of another jurisdicition.
(4) Having been convicted of, or having pled guilty or nolo contendere to a felony.
(5) Having been convicted of, or having pled guilty or nolo contendere to a misdemeanor related to the practice of real estate, forgery, embezzlement, obtaining money under false pretenses, bribery, larceny, extortion, conspiracy to defraud, or any similar offense.
Authority
The provisions of this § 35.344 issued under the Real Estate Licensing and Registration Act (63 P. S. § § 455.101455.902).
Source
The provisions of this § 35.344 adopted February 24, 1989, effective February 25, 1989, 19 Pa.B. 781; amended December 10, 2004, effective December 11, 2004, 34 Pa.B. 6530. Immediately preceding text appears at serial page (263900).
ADMINISTRATION OF REAL ESTATE EDUCATION PROVIDERS
§ 35.351. Duty of director.
The director for a real estate education provider is responsible for day-to-day administration, including evaluation of instructor performance, evaluation of curriculum and specific course content, analysis of course examinations, management of records and facilities and otherwise assuring compliance with § § 35.35235.363.
Authority
The provisions of this § 35.351 issued under the Real Estate Licensing and Registration Act (63 P. S. § § 455.101455.902).
Source
The provisions of this § 35.351 adopted February 24, 1989, effective February 25, 1989, 19 Pa.B. 781; amended December 10, 2004, effective December 11, 2004, 34 Pa.B. 6530. Immediately preceding text appears at serial pages (263900) and (201887).
Cross References
This section cited in 49 Pa. Code § 35.344 (relating to withdrawal of real estate education provider or director approval); and 49 Pa. Code § 35.362 (relating to inspection of school).
§ 35.351a. [Reserved].
Source
The provisions of this § 35.351a adopted June 10, 1994, effective June 11, 1994, 24 Pa.B. 2904; reserved December 10, 2004, effective December 11, 2004, 34 Pa.B. 6530. Immediately preceding text appears at serial page (201887).
§ 35.352. Location and facilities.
(a) A real estate education provider shall have a main location that contains its administrative offices, its records, and a telephone with a listed number for the real estate education providers exclusive use.
(b) The location where classes are taught must:
(1) Be suitable for classroom space.
(2) Not share office space, instruction space or a common space with a real estate franchise, network or organization. This paragraph does not apply to a real estate trade association or to a contractual arrangement between a real estate licensee and a real estate education provider to provide continuing education courses.
(3) Be in conformance with applicable building, fire safety and sanitary requirements imposed by State, county and municipal governments.
Authority
The provisions of this § 35.352 issued under the Real Estate Licensing and Registration Act (63 P. S. § § 455.101455.902).
Source
The provisions of this § 35.352 adopted February 24, 1989, effective February 25, 1989, 19 Pa.B. 781; amended June 10, 1994, effective June 11, 1994, 24 Pa.B. 2904; amended December 10, 2004, effective December 11, 2004, 34 Pa.B. 6530. Immediately preceding text appears at serial pages (201887) to (201888).
Cross References
This section cited in 49 Pa. Code § 35.344 (relating to withdrawal of real estate education provider or director); 49 Pa. Code § 35.351 (relating to duty of director); 49 Pa. Code § 35.362 (relating to inspection of school); and 49 Pa. Code § 35.385 (relating to continuing education providers).
§ 35.353. Selection of instructors.
(a) Qualified instructors . A real estate education provider shall employ instructors who are qualified to teach the courses for which the instructors have been hired. The real estate education provider may consider an individual qualified to teach a course if the individual satisfies one of the following criteria:
(1) Possesses an undergraduate, graduate or postgraduate degree in the subject matter of the course to be taught.
(2) Has 3 years of practical or teaching experience in a profession, trade or occupation directly related to the subject matter of the course to be taught.
(b) Proof of qualifications . A real estate education provider shall maintain documentation substantiating the instructors education and experience.
Authority
The provisions of this § 35.353 issued under the Real Estate Licensing and Registration Act (63 P. S. § § 455.101455.902).
Source
The provisions of this § 35.353 adopted February 24, 1989, effective February 25, 1989, 19 Pa.B. 781; amended June 10, 1994, effective June 11, 1994, 24 Pa.B. 2904; amended December 10, 2004, effective December 11, 2004, 34 Pa.B. 6530. Immediately preceding text appears at serial pages (201888) to (201890).
Cross References
This section cited in 49 Pa. Code § 35.344 (relating to withdrawal of real estate education provider or director approval); 49 Pa. Code § 35.351 (relating to duty of director); 49 Pa. Code § 35.351a (relating to assistant school director); 49 Pa. Code § 35.360 (relating to records); 49 Pa. Code § 35.362 (relating to inspection of school); and 49 Pa. Code § 35.385 (relating to continuing education providers).
§ 35.354. Prohibited forms of advertising and solicitation.
(a) A real estate education provider may not:
(1) Hold itself out under a name other than the name approved for it by the Commission under § 35.341 (relating to approval of real estate education provider).
(2) Hold itself out as being recommended or endorsed by the Commission, the Department of Education or other agency of the Commonwealth, except that the real estate education provider may advertise that it has been approved by the Commission to provide instruction in real estate courses and that credits earned in certain named courses will be accepted by the Commission toward fulfillment of the professional education prerequisite for taking the Pennsylvania real estate licensing examinations.
(3) Hold itself out to be an educational institution that conforms to the standards and requirements prescribed for accredited colleges as defined in § 35.201 (relating to definitions) unless the real estate education provider meets those standards and requirements.
(4) Make a guarantee of employment, conditional or unconditional, to a student or prospective student.
(5) Guarantee that successful completion of its curriculum will result in the students passing a real estate licensing examination.
(6) Promote the business of a real estate licensee or a real estate organization, franchise or network.
(7) Recruit students for employment or affiliation with a real estate licensee or a real estate organization, franchise or network.
(8) Solicit students for membership in a real estate organization, franchise or network.
(9) Permit an instructor or guest lecturer while on the real estate education providers premises to wear any identification relating to the name of the real estate licensee or a real estate organization, franchise or network.
(10) Solicit enrollments by means of advertisements in the employment columns of newspapers and other publications.
(11) Engage in advertising that is false, misleading, deceptive or degrading to the dignity of the real estate profession.
(b) A real estate education provider may not allow its main or satellite locations to be used by others for the solicitation or recruitment of students for employment or affiliation with a real estate licensee or a real estate organization, franchise or network. Students shall be informed of this prohibition through a written statement which shall contain the following:
No recruiting for employment opportunities for any real estate brokerage firm is allowed in this class. Any recruiting should be promptly reported to the State Real Estate Commission by calling this number: 1-800-822-2113.
Authority
The provisions of this § 35.354 issued under the Real Estate Licensing and Registration Act (63 P. S. § § 455.101455.902); amended under section 404.1 of the Real Estate Licensing and Registration Act (63 P. S. § 455.404a).
Source
The provisions of this § 35.354 adopted February 24, 1989, effective February 25, 1989, 19 Pa.B. 781; amended June 10, 1994, effective June 11, 1994, 24 Pa.B. 2904; amended December 10, 2004, effective December 11, 2004, 34 Pa.B. 6530; amended December 21, 2012, effective December 22, 2012, 42 Pa.B. 7647. Immediately preceding text appears at serial pages (308352) to (308353).
Cross References
This section cited in 49 Pa. Code § 35.344 (relating to withdrawal of real estate education provider or director approval); 49 Pa. Code § 35.351 (relating to duty of director); and 49 Pa. Code § 35.362 (relating to inspection of school).
§ 35.355. Prospectus materials.
(a) A real estate education provider shall provide copies of catalogs, bulletins, pamphlets and other prospectus materials to the Commission upon request. Prospectus materials shall state the following in clear and unambiguous terms:
(1) Admission requirements.
(2) Curriculum, including a specification of courses that meet the Commissions requirements for prelicensure education or continuing education.
(3) Tuition and other fees, and the refund policy in the event of cancellation.
(4) Completion requirements.
(b) Prospectus materials for courses shall be directed towards the general licensee population without regard to the licensees affiliation with a particular educational institution or a particular real estate organization, franchise or network.
Authority
The provisions of this § 35.355 issued under the Real Estate Licensing and Registration Act (63 P. S. § § 455.101455.902).
Source
The provisions of this § 35.355 adopted February 24, 1989, effective February 25, 1989, 19 Pa.B. 781; amended June 10, 1994, effective June 11, 1994, 24 Pa.B. 2904; amended December 10, 2004, effective December 11, 2004, 34 Pa.B. 6530. Immediately preceding text appears at serial page (201891).
Cross References
This section cited in 49 Pa. Code § 35.344 (relating to withdrawal of real estate education provider or director approval); 49 Pa. Code § 35.351 (relating to duty of director); and 49 Pa. Code § 35.362 (relating to inspection of school).
§ 35.356. Tuition and other fees.
A real estate education provider shall charge tuition that bears a reasonable relationship to the quality and quantity of instructional services rendered. If additional fees are charged for books, supplies and other materials needed for coursework, the real estate education provider shall itemize the fees and the books, supplies and materials, upon payment therefor, shall become the property of the student.
Authority
The provisions of this § 35.356 issued under the Real Estate Licensing and Registration Act (63 P. S. § § 455.101455.902).
Source
The provisions of this § 35.356 adopted February 24, 1989, effective February 25, 1989, 19 Pa.B. 781; amended December 10, 2004, effective December 11, 2004, 34 Pa.B. 6530. Immediately preceding text appears at serial page (201892).
Cross References
This section cited in 49 Pa. Code § 35.344 (relating to withdrawal of real estate education provider or director approval); 49 Pa. Code § 35.351 (relating to duty of director); and 49 Pa. Code § 35.362 (relating to inspection of school).
§ 35.357. Student enrollment agreements.
A real estate education provider shall require each of its students to enter into a student enrollment agreement. The agreement must:
(1) Itemize the tuition and other fees and the services and materials to be received from them.
(2) State the real estate education providers policy regarding the refund of tuition and fees if the student were to withdraw or be dismissed or if the school were to terminate operations before the end of the academic year.
(3) Contain the Bureaus toll-free telephone number, (800) 822-2113, that the student may call to obtain information about filing a complaint against the real estate education provider.
Authority
The provisions of this § 35.357 issued under the Real Estate Licensing and Registration Act (63 P. S. § § 455.101455.902).
Source
The provisions of this § 35.357 adopted February 24, 1989, effective February 25, 1989, 19 Pa.B. 781; amended June 10, 1994, effective June 11, 1994, 24 Pa.B. 2904; amended December 10, 2004, effective December 11, 2004, 34 Pa.B. 6530. Immediately preceding text appears at serial pages (201892) to (201894).
Cross References
This section cited in 49 Pa. Code § 35.344 (relating to withdrawal of real estate education or director approval); 49 Pa. Code § 35.351 (relating to duty of director); and 49 Pa. Code § 35.362 (relating to inspection of school).
§ 35.358. Administration of curriculum.
(a) Real estate education providers shall observe the following standards in the administration of prelicensure and continuing education curriculum:
(1) Instructor-led learning may not exceed 7 1/2 clock hours of instruction per day. For purposes of this section, a clock hour is defined as a 60-minute period comprising 50 minutes of instruction and a 10-minute break. A student may not be required to attend class for more than 90 consecutive minutes without a break.
(2) The substantive content of the course, as evidenced by the course outline, text and other instructional materials, shall adequately reflect the stated purpose of the course, as evidenced by the course title and course description. Instruction in a Commission required course shall conform to the content or the outline developed by the Commission for the course.
(3) Unless the course is taught by means of distance education, a student shall be physically present during at least 80% of the classroom instruction for a prelicensure course and during at least 90% of the classroom instruction for a continuing education course, to receive credit. The real estate education provider shall be responsible for verifying student attendance.
(4) Courses delivered by distance education, in addition to meeting the content requirements in § 35.384 (relating to qualifying courses), must have the delivery method approved by the Association of Real Estate License Law Officials or another certifying body with similar approval standards approved by the Commission.
(b) In addition to the requirements in subsection (a), a real estate education provider shall observe the following standards in the administration of its prelicensure curriculum:
(1) A prelicensure course must be assigned one credit for every 15 clock hours of instruction.
(2) A prelicensure course must be graded by proctored examination, except when a students handicap or disability would make grading by examination impractical.
Authority
The provisions of this § 35.358 issued under the Real Estate Licensing and Registration Act (63 P. S. § § 455.101455.902).
Source
The provisions of this § 35.358 adopted February 24, 1989, effective February 25, 1989, 19 Pa.B. 781; amended June 10, 1994, effective June 11, 1994, 24 Pa.B. 2904; amended December 10, 2004, effective December 11, 2004, 34 Pa.B. 6530. Immediately preceding text appears at serial pages (201894) to (201895).
Cross References
This section cited in 49 Pa. Code § 35.344 (relating to withdrawal of real estate education provider or director approval); 49 Pa. Code § 35.351 (relating to duty of director); 49 Pa. Code § 35.362 (relating to inspection of school); and 49 Pa. Code § 35.385 (relating to continuing education providers).
§ 35.359. Course documentation.
(a) Prelicensure. Within 30 days after a course has been taught, a real estate education provider shall provide each student in the course with an official course transcript that contains the information in § 35.360(a)(5) (relating to records) and is signed by the director.
(b) Continuing education. Within 30 days after a continuing education course has ended, the continuing education provider shall provide each licensee who satisfactorily completed/taught the course transcripts/certificates of instruction that contain the information in § 35.360(a)(5)(i)(ix) signed by the provider or the director. The transcript/certificate of instruction must be in a format that cannot be altered.
(1) Licensees shall retain the transcripts/certificates of instruction for 2 years following the biennial renewal period during which the courses were taken to renew the license.
(2) Licensees shall provide a copy of the transcripts/certificates of instruction to the Commission verifying completion of the continuing education requirement upon request.
Authority
The provisions of this § 35.359 issued under the Real Estate Licensing and Registration Act (63 P. S. § § 455.101455.902); amended under section 404.1 of the Real Estate Licensing and Registration Act (63 P. S. § 455.404a).
Source
The provisions of this § 35.359 adopted February 24, 1989, effective February 25, 1989, 19 Pa.B. 781; amended December 10, 2004, effective December 11, 2004, 34 Pa.B. 6530; amended December 21, 2012, effective December 22, 2012, 42 Pa.B. 7647. Immediately preceding text appears at serial page (308356).
Cross References
This section cited in 49 Pa. Code § 35.344 (relating to withdrawal of real estate education provider or director approval); 49 Pa. Code § 35.351 (relating to duty of director); 49 Pa. Code § 35.362 (relating to inspection of school); and 49 Pa. Code § 35.385 (relating to continuing education providers).
§ 35.360. Records.
(a) A real estate education provider shall maintain complete and accurate records in the following areas:
(1) Financial . The real estate education providers assets and liabilities and the sources and amounts of its income.
(2) Physical plant . For the main location and for each satellite location, the following:
(i) Copies of documentation showing compliance with applicable building, fire safety and sanitary requirements imposed by state, county or municipal governments.
(ii) A copy of the lease or rental agreement, if the real estate education provider does not own the building being used.
(3) Personnel . The qualifications of each instructor and the documentary evidence of those qualifications. See § 35.353 (relating to selection of instructors).
(4) Curriculum . For each course the real estate education provider has offered, the following:
(i) The course title.
(ii) The course prerequisites.
(iii) The course objectives.
(iv) The course outline.
(v) The requirements for successful completion of the course.
(vi) Copies of texts and other instructional materials used in teaching the course.
(vii) The supplies required of students for the course.
(viii) The course schedule.
(ix) Copies of published descriptions of the course.
(x) The course instructor.
(5) Scholastic . An academic transcript for each student which must contain the following:
(i) The real estate education providers name and Commission approval number.
(ii) The location at which the course was taught.
(iii) The name of the student.
(iv) The course title.
(v) The date that the student completed the course.
(vi) The number of hours of the course.
(vii) The students final grade in the course, if an examination is required for the course.
(viii) The date that the transcript was issued.
(ix) The fact that the course will be accepted by the Commission towards fulfillment of the education requirement for either the real estate brokers examination or real estate salespersons examination, as the care may be.
(6) Attendance .
(b) A real estate education provider shall store its records at its main location. Upon termination of operations, a real estate education provider shall transfer its records to the designated custodian of records. The real estate education provider shall notify the Commission whenever it changes the custodian of records.
(c) A real estate education provider shall produce its records for examination by the Commission or its representatives upon written request or pursuant to an inspection under § 35.362 (relating to inspection of real estate education providers).
(d) A real estate education provider shall make copies of a students scholastic and attendance records available to the student upon request.
(e) A real estate education provider must retain attendance and scholastic records as follows:
(1) Continuing education records must be maintained for 4 years.
(2) All other records must be retained for 10 years.
Authority
The provisions of this § 35.360 issued under the Real Estate Licensing and Registration Act (63 P. S. § § 455.101455.902).
Source
The provisions of this § 35.360 adopted February 24, 1989, effective February 25, 1989, 19 Pa.B. 781; amended June 10, 1994, effective June 11, 1994, 24 Pa.B. 2904; amended December 10, 2004, effective December 11, 2004, 34 Pa.B. 6530. Immediately preceding text appears at serial pages (201895) to (201897).
Cross References
This section cited in 49 Pa. Code § 35.344 (relating to withdrawal of real estate education provider or director approval); 49 Pa. Code § 35.351 (relating to duty of director); 49 Pa. Code § 35.359 (relating to course documentation); and 49 Pa. Code § 35.362 (relating to inspection of school).
§ 35.361. Display of documents and approved name.
(a) A real estate education providers certificate of approval shall be displayed prominently at the real estate education providers main location.
(b) A real estate education providers approved name must be displayed prominently at each location where courses are taught.
(c) An alphabetical list of the real estate education providers satellite locations shall be displayed prominently at the real estate education providers main location.
Authority
The provisions of this § 35.361 issued under the Real Estate Licensing and Registration Act (63 P. S. § § 455.101455.902).
Source
The provisions of this § 35.361 adopted February 24, 1989, effective February 25, 1989, 19 Pa.B. 781; amended June 10, 1994, effective June 11, 1994, 24 Pa.B. 2904; amended December 10, 2004, effective December 11, 2004, 34 Pa.B. 6530. Immediately preceding text appears at serial pages (201897) to (201898).
Cross References
This section cited in 49 Pa. Code § 35.344 (relating to withdrawal of real estate education provider or director approval); 49 Pa. Code § 35.351 (relating to duty of director); 49 Pa. Code § 35.362 (relating to inspection of school); and 49 Pa. Code § 43b.8 (relating to schedule of civil penaltiesreal estate and cemetery brokers, real estate schools).
§ 35.362. Inspection of real estate education providers.
(a) Routine inspections . No more than four times a year while classes are in session, the Commission or those authorized representatives may conduct a routine inspection of the main location or satellite location of a real estate education provider for the purpose of determining whether the real estate education provider is in compliance with § § 35.35135.363 (relating to administration of real estate education providers).
(b) Special inspections . In addition to the routine inspections authorized by subsection (a), the Commission or its authorized representatives may conduct a special inspection of a real estate education providers main location or satellite location:
(1) Upon a complaint or reasonable belief that the real estate education provider is not in compliance with § § 35.35135.363.
(2) As a follow-up to a previous inspection that revealed the real estate education providers noncompliance with § § 35.35135.363.
(c) Scope of inspection . Prior to the start of a routine or special inspection, the Commission or its authorized representatives will advise the real estate education provider, director or other person in charge at the time of the inspection that the inspection is being made under this section and is limited in scope by this section.
(d) During the course of a routine or special inspection or investigation, the Commission or its authorized representatives will be permitted to:
(1) Examine real estate education provider records.
(2) Inspect all areas of the real estate education providers premises.
(3) Monitor the performance of instructors in classrooms.
(4) Interview the real estate education provider, director and other administrative personnel, instructors and students.
Authority
The provisions of this § 35.362 issued under the Real Estate Licensing and Registration Act (63 P. S. § § 455.101455.902).
Source
The provisions of this § 35.362 adopted February 24, 1989, effective February 25, 1989, 19 Pa.B. 781; amended December 10, 2004, effective December 11, 2004, 34 Pa.B.6530. Immediately preceding text appears at serial page (201898).
Cross References
This section cited in 49 Pa. Code § 35.344 (relating to withdrawal of real estate provider or director approval); 49 Pa. Code § 35.351 (relating to duty of director); and 49 Pa. Code § 35.360 (relating to records).
§ 35.363. Termination of operations.
A real estate education provider that desires to terminate operations shall submit to the Commission, within 60 days of the planned termination, a termination plan that includes the following:
(1) The date of termination.
(2) The date that real estate education provider records will be transferred to the designated records custodian.
(3) The procedure for refunding tuition and allocating credits to currently enrolled students.
Authority
The provisions of this § 35.363 issued under the Real Estate Licensing and Registration Act (63 P. S. § § 455.101455.902).
Source
The provisions of this § 35.363 adopted February 24, 1989, effective February 25, 1989, 19 Pa.B. 781; amended June 10, 1994, effective June 11, 1994, 24 Pa.B. 2904; amended December 10, 2004, effective December 11, 2004, 34 Pa.B. 6530. Immediately preceding text appears at serial page (201899).
Cross References
This section cited in 49 Pa. Code § 35.344 (relating to withdrawal of school or director approval); 49 Pa. Code § 35.351 (relating to duty of director); and 49 Pa. Code § 35.362 (relating to inspection of school).
Subchapter G. PROMOTIONAL LAND SALES
Sec.
35.371. General requirements.
35.372. Nonresident requirements.
35.373. Offering statements.
35.374. Review and approval of documents.
35.375. Affidavit of consent to service of jurisdiction.
§ 35.371. General requirements.
(a) A broker, developer or subdivider referred to in this subchapter as applicant, who proposes to engage in sales of a promotional nature in this Commonwealth of property located outside of this Commonwealth shall submit to the Commission, for its approval before doing so, full particulars regarding the property and proposed terms of sale, and they and their salesmen shall comply with rules and regulations, restrictions and conditions pertaining thereto as the Commission may impose. Expenses reasonably incurred by the Commission in investigating and inspecting the property and proposed sale thereof in this Commonwealth shall be borne by the applicant. No broker, developer or salesman may refer to the Commission or to an official or employe of the Commission in selling, offering for sale or advertising, or otherwise promoting the sale, mortgage or lease of the property, nor make representation that the property has been inspected or approved or otherwise passed upon by the Commission, or by a State official, department or employe.
(b) An applicant approved to engage in sales set forth in this chapter shall notify the Commission at least 10 days in advance of the date, time and place of efforts to sell or advertise through parties or reception or other group media.
Authority
The provisions of this § 35.371 issued under the Real Estate Licensing and Registration Act (63 P. S. § § 455.101455.902).
Source
The provisions of this § 35.371 adopted February 24, 1989, effective February 25, 1989, 19 Pa.B. 781.
Notes of Decisions
The possession of a salespersons license for 3 or more years does not automatically qualify a person to sit for a brokers examination. Bhala v. State Real Estate Commission , 617 A.2d 841 (Pa. Cmwlth. 1992).
§ 35.372. Nonresident requirements.
(a) A nonresident applicant shall also file an irrevocable consent that suits and actions may be commenced against the applicant in the proper court of a county of this Commonwealth in which a cause of action may arise, or in which plaintiff may reside, by the service of a process or pleadings authorized by the laws of the Commonwealth on the Commission in Harrisburg, Pennsylvania. The consent shall stipulate and agree that the service of process or pleadings on the Commission shall be taken and held in all courts to be as valid and binding as if service had been made upon the applicant personally within this Commonwealth.
(b) If process or pleadings are served upon the Commission, they shall be by duplicate copy, one of which shall be filed in the office of the Commission and the other immediately forwarded by certified mail to the main office of the applicant against which the process or pleadings are directed.
Authority
The provisions of this § 35.372 issued under the Real Estate Licensing and Registration Act (63 P. S. § § 455.101455.902).
Source
The provisions of this § 35.372 adopted February 24, 1989, effective February 25, 1989, 19 Pa.B. 781.
Cross References
This section cited in 49 Pa. Code § 35.375 (relating to affidavit of consent to service of jurisdiction).
§ 35.373. Offering statements.
(a) The Commission also requires the applicant to prepare and deliver at its own expense, to each prospective purchaser in this Commonwealth an offering statement which shall be revised annually. The offering statement shall be approved by the Commission and shall contain a detailed description, price and terms of the offer as well as financial information disclosing assets and liabilities of the applicant. The offering statement shall also inform prospective purchasers of the following:
(1) Tax liabilities.
(2) Basis for guarantees.
(3) Public transportation facilities.
(4) Terrain details.
(5) Climate.
(6) Proposed and existing improvements.
(7) Roads.
(8) Water supply.
(9) Public utilities.
(10) An objectionable condition of air, sight or terrain.
(11) Sewage disposal facilities.
(12) Recreational and community facilities.
(13) The distances to a nearby populated area.
(b) The offering statement shall also set forth on the front page in large bold face type or italics, the following statement:
The State Real Estate Commissions requirements of this broker, developer or subdivider does not constitute approval of the land being offered for sale or lease. The State Real Estate Commission has not in any way passed upon the merits of such offer.
Authority
The provisions of this § 35.373 issued under the Real Estate Licensing and Registration Act (63 P. S. § § 455.101455.902).
Source
The provisions of this § 35.373 adopted February 24, 1989, effective February 25, 1989, 19 Pa.B. 781.
§ 35.374. Review and approval of documents.
The following information and documents shall be furnished annually to the Commission in report form for its review and approval:
(1) Name of owner, including the following:
(i) Names and addresses of the owners or partners.
(ii) Lists of the officers and holders of 10% or more of total subscribed or issued stock of the corporation.
(iii) Copy of most recent certified audit of records including financial statements.
(2) Names of subsidiary organizations or companies.
(3) Name of development.
(4) Address of development.
(5) Addresses of administrative offices.
(6) Representative of the Commonwealth, including a list of the sales offices and personnel in this Commonwealth.
(7) Status of property, including the following:
(i) Owner of the land.
(ii) Whether land is free and clear.
(iii) If land is mortgaged, whether the mortgage is assignable, including the following:
(A) Whether individual lots can be released.
(B) Cost per lot.
(iv) Whether there are judgments against or unpaid taxes due on the land.
(v) Whether abstracts or title policies will be furnished.
(vi) Copy of type of deed used.
(vii) Whether deeds are issued in fee simple.
(viii) Whether there is additional charge for issuing a deed.
(8) Improvements completed, including the following:
(i) Paved streets.
(ii) Sidewalks.
(iii) Street lights.
(iv) Public utilities.
(v) Whether improvements are paid for.
(vi) Tax rates.
(vii) If no improvements, plans for completion.
(viii) If FHA approved, copy of approval.
(9) Whether bond has been posted with a governmental authority to guarantee completion of promised improvements, including the following:
(i) Specification for what purpose.
(ii) Amount.
(iii) Name of bonding company.
(iv) How this bond will protect the purchasers from the Commonwealth.
(v) Certified copy of the bonds used.
(10) Sewage, including the following:
(i) Sanitary sewers.
(ii) Storm sewers.
(iii) Whether water mains or individual wells are necessary.
(iv) Whether septic tanks are necessary.
(v) If septic tanks are necessary, whether they are authorized by appropriate government authorities.
(vi) Whether level of land and type of soil is suitable for septic tanks.
(11) Drainage, including the following:
(i) Whether land is dry.
(ii) Copy of the drainage plan of the engineer.
(iii) Depth of water table.
(iv) Depth of average well.
(12) Zoning restrictions, including the following:
(i) Copy of topographical map.
(ii) Copy of State Board of Health Percolation Test one hole per 5 acres where septic tanks are used.
(13) Advertising, including the following:
(i) Size of lots offered.
(ii) Price and terms of sale.
(iii) Whether these lots are large enough for building purposes that would comply with zoning requirements.
(iv) If and where plot is recorded.
(14) Location, including the following:
(i) Aerial photo showing exact area with at least 1 mile of bordering properties.
(ii) How far property is presently from the following:
(A) Highway.
(B) Incorporated town.
(C) Major shopping center.
(D) Industrial area including type and size.
(E) Transportation including bus and train.
(F) Schoolspublic, trade, parochial or private.
(G) Lighted streets.
(H) Type of pavement and curbs.
(I) Fire protection.
(J) Garbage and trash removal.
(K) Police protection.
(L) Airport and airlines operated therefrom.
(15) Current selling price of lots in adjoining area and owners of these lots.
(16) Financial arrangements, including the following:
(i) Whether the down payment will be placed in escrow and terms of release of the down payment.
(ii) Type of financing obtainable and percent of interest charged.
(iii) Closing costs, specifying for what.
(iv) Specific listing of carrying charges.
(v) Types of contracts used.
Authority
The provisions of this § 35.374 issued under the Real Estate Licensing and Registration Act (63 P. S. § § 455.101455.902).
Source
The provisions of this § 35.374 adopted February 24, 1989, effective February 25, 1989, 19 Pa.B. 781.
§ 35.375. Affidavit of consent to service of jurisdiction.
The following affidavit of consent to service of jurisdiction is exemplary of the requirements of § 35.372 (relating to nonresident requirements):
AFFIDAVIT OF CONSENT TO SERVICE OF
JURISDICTION
That the undersigned (give legal designation of applicant, individual, partnership, corporation) does hereby irrevocably consent that any action brought against the above named applicant in the proper court of any county of the State of Pennsylvania or in which the plaintiff in such action may reside and that in the event proper service of process cannot be had upon such applicant in any such proceeding in such county, service of any process may be made therein by the sheriff of such county by the service of any process or pleadings authorized by the Laws of Pennsylvania on the Real Estate Commission, hereby stipulating and agreeing that such service of such process or pleadings on said Chairman shall be taken and held in all courts to be valid and binding as if due process had been made upon said applicant in the State of Pennsylvania. President Secretary Corporate Seal Witness
Personally appeared before me the undersigned notary public in and for the above named county and state, the day and date above named, and acknowledged the execution of the foregoing instrument to be the voluntary act and deed of such applicant for the purpose therein set forth (if applicant is an individual, strike out the following) and that they are the President and Secretary, respectively, of such corporation and are duly authorized to execute the foregoing instrument. (Seal)State of SS COUNTY OF
Authority
The provisions of this § 35.375 issued under the Real Estate Licensing and Registration Act (63 P. S. § § 455.101455.902).
Source
The provisions of this § 35.375 adopted February 24, 1989, effective February 25, 1989, 19 Pa.B. 781.
Subchapter H. CONTINUING EDUCATION
Sec.
35.381. [Reserved].
35.382. Requirement.
35.383. Waiver of continuing education requirement.
35.384. Qualifying courses.
35.385. Continuing education providers.
35.38635.392. [Reserved].
§ 35.381. [Reserved].
Source
The provisions of this § 35.381 adopted July 31, 1992, effective August 1, 1992, 22 Pa.B. 3980; reserved December 10, 2004, effective December 11, 2004, 34 Pa.B. 6530. Immediately preceding text appears at serial page (201905).
§ 35.382. Requirement.
(a) Condition precedent to renewal of current standard license . A broker or salesperson holding a standard license who desires to renew a current license shall, as a condition precedent to renewal, complete 14 hours of Commission-approved continuing education during the preceding license period. The continuing education shall be completed by the May 31 renewal deadline.
(b) Condition precedent to reactivation and renewal of noncurrent standard license . A broker or salesperson holding a standard license who desires to reactivate and renew a noncurrent license shall, as a condition precedent to reactivation and renewal, complete 14 hours of Commission-approved continuing education during the 2-year period preceding the date of submission of the reactivation application. A broker or salesperson holding a standard license may not use the same continuing education coursework to satisfy the requirements of this subsection and subsection (a).
(c) Exception . The continuing education requirement does not apply to reciprocal license holders or cemetery brokers, cemetery salespersons, builder-owner salespersons, timeshare salespersons, campground membership salespersons and rental listing referral agents who hold standard licenses.
(d) Documentation . A licensee shall provide the Commission with information necessary to establish the licensees compliance with this subchapter.
Authority
The provisions of this § 35.382 issued under sections 402, 404, 404.1 and 513 of the Real Estate Licensing and Registration Act (63 P. S. § § 455.402, 455.404, 455.404a and 455.513); amended under sections 201, 501, 601, 602 and 604 of the Real Estate Licensing and Registration Act (63 P. S. § § 455.201, 455.501, 455.601, 455.602 and 455.604).
Source
The provisions of this § 35.382 adopted July 31, 1992, effective August 1, 1992, 22 Pa.B. 3980; amended December 10, 2004, effective December 11, 2004, 34 Pa.B. 6530; amended August 19, 2005, effective August 20, 2005, 35 Pa.B. 4711. Immediately preceding text appears at serial pages (308365) to (308366).
Cross References
This section cited in 49 Pa. Code § 35.383 (relating to waiver of continuing education requirement).
§ 35.383. Waiver of continuing education requirement.
(a) The Commission may waive all or part of the continuing education requirement of § 35.382 (relating to requirement) upon proof that the standard license holder seeking the waiver is unable to fulfill the requirement because of illness, emergency or hardship. The following are examples of situations in which hardship waivers will be granted.
(1) A standard license holder who seeks to renew a current license that was initially issued within 6 months of the biennial license period for which renewal is sought will be deemed eligible, on the basis of hardship, for a full waiver of the continuing education requirement.
(2) A standard license holder who seeks to renew a current license that was reactivated from noncurrent status within 6 months of the biennial license period for which renewal is sought will be deemed eligible, on the basis of hardship, for a full waiver of the continuing education requirement.
(3) A standard license holder who is a qualified continuing education instructor will be deemed eligible, for the waiver of 1 hour of continuing education for each hour of actual classroom instruction in an approved continuing education topic that the instructor is qualified to teach. Duplicate hours of instruction in the same topic during the same biennial license period will not be considered for waiver purposes.
(b) 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 satisfaction of the Commission that it was impracticable to do so.
Authority
The provisions of this § 35.383 issued under sections 402, 404, 404.1 and 513 of the Real Estate Licensing and Registration Act (63 P. S. § § 455.402, 455.404, 455.404a and 455.513); amended under sections 201, 501, 601, 602 and 604 of the Real Estate Licensing and Registration Act (63 P. S. § § 455.201, 455.501, 455.601, 455.602 and 455.604).
Source
The provisions of this § 35.383 adopted July 31, 1992, effective August 1, 1992, 22 Pa.B. 3980; amended December 10, 2004, effective December 11, 2004, 34 Pa.B. 6530; amended August 19, 2005, effective August 20, 2005, 35 Pa.B. 4711. Immediately preceding text appears at serial pages (308366) to (308367).
§ 35.384. Qualifying courses.
(a) Except as provided in subsection (b), a licensee shall complete 14 hours of continuing education in acceptable courses in a minimum of 2-hour increments.
(b) The Commission may, for a given biennial license period and with adequate notice to standard license holders, require that all or part of the 14 hours be completed in required topics. In addition, during the first biennial period that continuing education is required, a new licensee shall complete the Commission-developed 14-hour required course for new licensees in satisfaction of the continuing education requirement.
(c) Acceptable courses include the following:
(1) Real estate ethics.
(2) Laws affecting real estate.
(3) Real estate financing and mathematics.
(4) Real estate valuation and evaluation.
(5) Property management.
(6) Land use and zoning.
(7) Income taxation as applied to real property.
(8) Ad valorem tax assessment and special assessments.
(9) Consumer protection and disclosures.
(10) Agency relationships.
(11) Landlord-tenant laws.
(12) Environmental issues in real estate.
(13) Antitrust issues in real estate.
(14) Current litigation related to real estate.
(15) Legal instruments related to real estate transactions.
(16) Legalities of real estate advertising.
(17) Developments in building construction techniques, materials and mechanical systems.
(18) Real estate investment analysis.
(19) Management of real estate brokerage operations.
(20) Property development.
(21) Real estate securities and syndication.
(22) Real property exchange.
(23) Broker courses encompassing supervisory duties and standards of conduct and practice contained in Subchapter E (relating to standards of conduct and practice).
(24) Marketing promotion and advertising of real estate inventory.
(25) Use of technology in delivering real estate services.
(d) Unacceptable courses include: mechanical office and business skills; for example, typing, speed writing, preparation of advertising copy, development of sales promotional devices, word processing, calculator and computer operation and office management and related internal operations procedures that do not have a bearing on the public interest.
Authority
The provisions of this § 35.384 issued under sections 402, 404, 404.1 and 513 of the Real Estate Licensing and Registration Act (63 P. S. § § 455.402, 455.404, 455.404a and 455.513); amended under sections 201, 404.1, 501, 601, 602 and 604 of the Real Estate Licensing and Registration Act (63 P. S. § § 455.201, 455.404a, 455.501, 455.601, 455.602 and 455.604).
Source
The provisions of this § 35.384 adopted July 31, 1992, effective August 1, 1992, 22 Pa.B. 3980; amended December 10, 2004, effective December 11, 2004, 34 Pa.B. 6530; amended August 19, 2005, effective August 20, 2005, 35 Pa.B. 4711; amended December 21, 2012, effective December 22, 2012, 42 Pa.B. 7647. Immediately preceding text appears at serial pages (312851) to (312852).
§ 35.385. Continuing education providers.
(a) The following providers may offer instruction for continuing education:
(1) An accredited college as defined in § 35.201 (relating to definitions).
(2) A real estate education provider who has met the approval requirements in § 35.341 (relating to approval of real estate education provider).
(3) A real estate education provider outside this Commonwealth that has been approved by the real estate licensing authority of the jurisdiction where the real estate education provider is located.
(b) Continuing education providers shall comply with the standards for real estate education providers in § § 35.352(b), 35.353(a), 35.358(a) and 35.359(b).
Authority
The provisions of this § 35.385 issued under sections 402, 404, 404.1 and 513 of the Real Estate Licensing and Registration Act (63 P.S. § § 455.402, 455.404, 455.404a and 455.513); amended under section 404.1 of the Real Estate Licensing and Registration Act (63 P.S. § 455.404a).
Source
The provisions of this § 35.385 adopted July 31, 1992, effective August 1, 1992, 22 Pa.B. 3980; amended December 10, 2004, effective December 11, 2004, 34 Pa.B. 6530; amended December 21, 2012, effective December 22, 2012, 42 Pa.B. 7647. Immediately preceding text appears at serial page (312852).
§ § 35.38635.392. [Reserved].
Source
The provisions of these § § 35.38635.392 adopted July 31, 1992, effective August 1, 1992, 22 Pa.B. 3980; reserved December 10, 2004, effective December 11, 2004, 34 Pa.B. 6530. Immediately preceding text appears at serial pages (201909) to (201911).
Subchapter I. BROKER PRICE OPINIONS
TEMPORARY REGULATIONS
Sec.
35.401. Definitions.
35.402. Broker price opinion.
35.403. Use of broker price opinion.
35.404. Broker price opinion education.
Authority
The temporary provisions of this Subchapter I issued under the act of June 29, 2018 (P.L. 500, No. 75) that amended the Real Estate Licensing and Registration Act (63 P.S. § § 455.101455.902), unless otherwise noted.
Source
The temporary provisions of this Subchapter I adopted March 27, 2020, effective March 28, 2020, expire August 28, 2021, 50 Pa.B. 1838, unless otherwise noted.
§ 35.401. Definitions.
The following words and terms, when used in this subchapter, have the following meanings, unless the context clearly indicates otherwise:
Automated valuation model Any computerized model used by mortgage originators and secondary market issuers to determine the collateral worth of a mortgage secured by a consumers principal dwelling.
Broker price opinion An estimate prepared by a broker, associate broker or salesperson that details the probable selling price of a particular parcel of real property and provides a varying level of detail about the propertys condition, market and neighborhood, and information on comparable sales, but does not include an automated valuation model.
Short sale A sale of real property in which the sellers proceeds are less than the amount required to pay off all liens secured by the property.
§ 35.402. Broker price opinion.
(a) A broker price opinion must contain the following statement displayed conspicuously and without change:
This analysis has not been prepared in accordance with the Uniform Standards of Professional Appraisal Practice which require valuers to act as unbiased, disinterested third parties with impartiality, objectivity and independence and without accommodation of personal interest. It is not to be construed as an appraisal and may not be used as such for any purpose.
(b) A broker price opinion must be signed manually or electronically by the person who prepared it and must contain all of the following information:
(1) An identification of the intended users and intended uses of the broker price opinion, if known.
(2) A brief description of the subject property.
(3) A brief description of the property interest to be priced.
(4) The basis for the conclusion as to the price, including applicable market data, cost data or capitalization computation.
(5) Any assumption or limiting condition.
(6) Any existing or contemplated interest of the licensee who prepared the broker price opinion.
(7) The effective date of the broker price opinion.
(8) The date that the document is signed.
(9) The real estate license number of the preparer and, if applicable, the reviewing broker or associate broker.
(c) A fee or valuable consideration for a broker price opinion shall be paid directly to the employing broker.
(d) A salesperson may not prepare a broker price opinion unless the salesperson has held an active license for the 3 years immediately preceding the effective date of the broker price opinion and has satisfied the educational requirements in § 35.404 (relating to broker price opinion education).
(e) A broker price opinion prepared by a salesperson must be signed by the salesperson and reviewed and signed by the employing broker or a designated associate broker.
§ 35.403. Use of broker price opinion.
(a) A broker price opinion may be prepared by a broker, associate broker or salesperson only for use in conjunction with any of the following:
(1) A property owned by a lender after an unsuccessful sale at a foreclosure auction.
(2) A modification of a first or junior mortgage or equity line of credit.
(3) A short sale of a property.
(4) An evaluation or monitoring of a portfolio of properties.
(b) A broker price opinion may not be prepared by a broker, associate broker or salesperson for use:
(1) As the basis to determine the value of a parcel of real property for a mortgage loan origination, including a first or junior mortgage, refinancing or equity line of credit.
(2) In connection with any of the following:
(i) An eminent domain proceeding.
(ii) A Federal, State or local tax appeal.
(iii) A bankruptcy or insolvency proceeding.
(iv) An action or proceeding involving divorce or equitable distribution of property.
(v) Any other action or proceeding before a court of record.
(vi) The distribution of a decedents estate.
§ 35.404. Broker price opinion education.
(a) A broker, associate broker or salesperson may not prepare a broker price opinion unless the broker, associate broker or salesperson has completed a Commission-approved initial education course in the preparation of broker price opinions.
(b) A broker or associate broker may not sign a broker price opinion prepared by a salesperson unless the broker or associate broker has completed a Commission-approved initial education course in the preparation of broker price opinions.
(c) A broker, associate broker or salesperson may not prepare a broker price opinion unless the broker, associate broker or salesperson has completed at least 3 hours of Commission-approved continuing education in broker price opinion topics during the current or immediately preceding 2-year license period.
(d) A broker, associate broker or salesperson who has completed a Commission-approved initial education course, a broker prelicensure course listed in subsection (e) or continuing education referenced in subsection (c) shall retain the transcript or certificate of instruction and provide a copy to the Commission upon request.
(e) The following broker prelicensure courses have been approved to satisfy the initial education requirement in subsections (a) and (b):
(1) Valuation of residential property.
(2) Valuation of income-producing property.
(3) Basic appraisal principles.
(4) Basic appraisal procedures.
Cross References
This section cited in 49 Pa. Code § 35.402 (relating to broker price opinion).
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