§ 35.281. Putting contracts, commitments and agreements in writing.

 (a)  All contracts, commitments and agreements between a broker, or a licensee employed by the broker, and a principal or a consumer who is required to pay a fee, commission or other valuable consideration shall be in writing and contain the information specified in §  35.331 (relating to written agreements generally).

 (b)  The following are exceptions to subsection (a):

   (1)  Open listing agreements or nonexclusive buyer agency agreements may be oral if the seller/buyer or landlord/tenant is provided with a written memorandum stating the terms of the agreement.

   (2)  Transaction licensees or subagents cooperating with listing brokers are not required to obtain a written agreement from the seller/landlord.

   (3)  Transaction licensees or subagents who provide services to the buyer/tenant but are paid by the seller/landlord or listing broker shall provide, and have signed, a written disclosure statement describing the nature of the services to be performed and containing the information required by section 608 of the act (63 P. S. §  455.608).

 (c)  A licensee may perform services before an agreement is signed, but the licensee is not entitled to recover a fee, commission or other valuable consideration in the absence of a signed agreement.

   The provisions of this §  35.281 issued under the Real Estate Licensing and Registration Act (63 P. S. § §  455.101—455.902); amended under sections 404, 602, 606—606.6 and 608—608.3 of the Real Estate Licensing Registration Act (63 P. S. § §  455.404, 455.602, 455.606—455.606f and 455.608—455.608c).

   The provisions of this §  35.281 adopted February 24, 1989, effective February 25, 1989, 19 Pa.B. 781; amended November 17, 2000, effective November 18, 2000, 30 Pa.B. 5954; amended March 29, 2002, effective March 30, 2002, 32 Pa.B. 1644. Immediately preceding text appears at serial page (271735).

 (a)  A licensee may not give assurances or advice concerning an aspect of a real estate transaction that he knows, or reasonably should be expected to know, is incorrect, inaccurate or improbable.

 (b)  A licensee may not knowingly be a party to a material false or inaccurate representation in a writing regarding a real estate transaction in which he is acting in a representative capacity.

   The provisions of this §  35.282 issued under the Real Estate Licensing and Registration Act (63 P. S. § §  455.101—455.902).

 (a)  A licensee may not participate in a real estate transaction involving property in which he has an ownership interest unless he first discloses his interest in writing to all parties concerned.

 (b)  A licensee may not represent, or purport to represent, more than one party to a real estate transaction without the written consent of all parties concerned.

 (c)  A broker who manages rental property may not accept a commission, rebate or profit on expenditures made for the lessor without the lessor’s written consent.

 (d)  A licensee who provides financial services, title transfer and preparation, insurance, construction, repair or inspection services, may not require a consumer to use any of these services.

 (e)  If the consumer chooses to use any of the services in subsection (d), the licensee shall provide the consumer with a written disclosure of any financial interest, including, a referral fee or commission, that the licensee has in the service. This disclosure shall be made at the time the licensee first advises the consumer that an ancillary service is available or when the licensee first learns that the consumer will be using the service.

 (f)  A licensee has a continuing obligation to disclose to a principal any conflict of interest in a reasonably practicable period of time after the licensee learns or should have learned of the conflict of interest.

   The provisions of this §  35.283 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).

   The provisions of this §  35.283 adopted February 24, 1989, effective February 25, 1989, 19 Pa.B. 781; amended March 29, 2002, effective March 30, 2002, 32 Pa.B. 1644. Immediately preceding text appears at serial page (271736).

 (a)  Disclosure to consumers seeking to sell or purchase residential or commercial real estate.

   (1)  Except as provided in subsection (e), a licensee shall provide the disclosure summary in §  35.336 (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) to consumers seeking to purchase or sell real estate at the initial interview if the interview occurs in person.

   (2)  If the initial interview does not occur in person, the licensee shall provide the oral disclosure in §  35.339 (relating to the oral disclosure) at the initial interview and the written disclosure statement in §  35.336 no later than the earlier of:

     (i)   The first meeting that the licensee has in person with the consumer after the initial interview.

     (ii)   The time the licensee or any person working with the licensee first shows a property to the consumer.

 (b)  Disclosure to tenants seeking to lease residential or commercial real estate.

   (1)  Except as provided in subsection (e), a licensee who is working on behalf of the tenant shall provide the disclosure summary in §  35.336 as required in subsection (a).

   (2)  Except as provided in subsection (e), a licensee who is working on behalf of the owner shall provide the disclosure summary in §  35.337 (relating to disclosure summary for the lease of residential or commercial real estate when the licensee is working on behalf of the owner) to tenants seeking to lease residential or commercial property at the initial interview.

 (c)  Disclosure to consumers seeking to sell time shares. A licensee shall provide the disclosure summary in §  35.338 (relating to disclosure summary for time-share estates) to consumers seeking to purchase time-share estates at the initial interview.

 (d)  Signed disclosure. A licensee shall provide a copy of the signed disclosure to the consumers referenced in subsections (a)—(c) and retain the signed acknowledgment under §  35.286 (relating to retention and production of records). If a consumer refuses to sign the acknowledgment, the refusal shall be noted on the acknowledgment.

 (e)  Exception. The disclosures required under subsections (a) and (b) do not apply to transactions involving the sale or lease of commercial property, as defined in section 201 of the act (63 P. S. §  455.201), to consumers who are not individuals.

   The provisions of this §  35.284 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).

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

   The provisions of this §  35.285 issued under the Real Estate Licensing and Registration Act (63 P. S. § §  455.101—455.902).

   The provisions of this §  35.285 adopted February 24, 1989, effective February 25, 1989, 19 Pa.B. 781.

 (a)  Retention. A broker or cemetery broker shall retain records pertaining to a real estate transaction for at least 3 years following consummation except for the following which shall be retained for 6 months:

   (1)  The acknowledgement portion of the consumer notice applicable to the sale or purchase of real estate in §  35.336 (relating to disclosure summary for the purchase or sale of residential or commercial real estate or the lease of residential or commercial real estate or lease of residential or commercial real estate when the licensee is working on behalf of the tenant) when there is not a real estate transaction.

   (2)  The acknowledgement portion of the consumer notice applicable to time shares in §  35.338 (relating to disclosure summary for time-share estates).

   (3)  The acknowledgement portion of the consumer notice applicable to leases in §  35.336 and §  35.337 (relating to disclosure summary for the lease of residential or commercial real estate when the licensee is working on behalf of the owner).

   (4)  The written disclosure statement establishing a subagent or transaction licensee relationship required by §  35.281(b)(3) (relating to putting contracts, commitments and agreements in writing).

 (b)  Production of documents.

   (1)  A broker or cemetery broker shall produce the records required in subsection (a) for examination by the Commission or its authorized representatives upon written request or pursuant to an office inspection under §  35.246 (relating to inspection of office).

   (2)  A corporation, partnership or association that holds a broker’s or cemetery broker’s license shall produce its corporate, partnership or association records for examination by the Commission or its authorized representatives upon written request or pursuant to an office inspection under §  35.246.

   The provisions of this §  35.286 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).

   The provisions of this §  35.286 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 March 29, 2002, effective March 30, 2002, 32 Pa.B. 1644. Immediately preceding text appears at serial pages (271737) to (271738).

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

   The provisions of this §  35.287 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).

 (a)  A broker or salesperson who sells or leases his own real estate shall comply with the requirements of the act and this chapter.

 (b)  A broker or salesperson who is selling or leasing his own real estate shall disclose his licensed status to a prospective buyer or lessee before the buyer or lessee enters into an agreement of sale or lease. See §  35.304 (relating to disclosure of licensure when advertising own real estate).

   The provisions of this §  35.288 issued under the Real Estate Licensing and Registration Act (63 P. S. § §  455.101—455.902).

 The list of rental units that a rental listing referral agent gives to a prospective tenant shall meet the desired specifications sought by the prospective tenant as set forth in the rental listing agreement. The rental listing referral agent shall verify the availability of the rental units no more than 4 days prior to the date the agent collects a fee from the prospective tenant.

   The provisions of this §  35.289 issued under the Real Estate Licensing and Registration Act (63 P. S. § §  455.101—455.902).

 (a)  A licensee shall notify the Commission of being convicted of, or pleading guilty or nolo contendere to, a felony or misdemeanor, within 30 days of the verdict or plea.

 (b)  A licensee shall notify the Commission of disciplinary action taken against him by the real estate licensing authority of another jurisdiction within 30 days of receiving notice of the disciplinary action.

   The provisions of this §  35.290 issued under the Real Estate Licensing and Registration Act (63 P. S. § §  455.101—455.902).

   The provisions of this §  35.290 adopted February 24, 1989, effective February 25, 1989, 19 Pa.B. 781.

 A broker or cemetery broker whose license is suspended by the Commission shall return his license to the Commission and shall post a notice of the Commission’s action at the main office and at branch offices. The notice, which will be provided by the Commission, shall be posted prominently on or near the public entrance to each office. Failure to post the notice constitutes grounds for further disciplinary action by the Commission.

   The provisions of this §  35.291 issued under the Real Estate Licensing and Registration Act (63 P. S. § §  455.101—455.902).

 (a)  The following duties are owed to all consumers of real estate services and may not be waived:

   (1)  Exercise reasonable professional skill and care.

   (2)  Deal honestly and in good faith.

   (3)  Present, in a reasonably practicable period of time, all offers, counteroffers, notices and communications to and from the parties in writing, unless the property is subject to an existing contract and the seller/landlord has agreed in a written waiver.

   (4)  Comply with 68 Pa.C.S. Chapter 73 (relating to Real Estate Seller Disclosure Law).

   (5)  Account for escrow and deposits funds as required by section 604(a)(5) of the act (63 P. S. §  455.604(a)(5)) and § §  35.321—35.328 (relating to escrow requirements).

   (6)  Provide consumers with the information in section 608 of the act (63 P. S. §  455.608) at the initial interview.

   (7)  Disclose, in a reasonably practicable period of time, all conflicts of interest and financial interests as required in §  35.283 (relating to disclosure of interest).

   (8)  Advise the consumer to seek expert advice on matters about the transaction that are beyond the licensee’s expertise.

   (9)  Ensure that all services are provided in a reasonable, professional and competent manner.

   (10)  Keep the consumer informed about the transaction and the tasks to be completed.

   (11)  Provide assistance with document preparation.

   (12)  Advise the consumer about compliance with laws pertaining to real estate transactions without rendering legal advice.

 (b)  A licensee is not required to conduct an independent inspection of the property.

 (c)  A licensee is not required to independently verify the accuracy or completeness of any representation made by the consumer to a transaction which the licensee reasonably believes to be accurate and reliable.

 (d)  A licensee is not liable for the acts of a consumer unless the consumer is acting at the express direction of the licensee or as a result of a representation by a licensee reasonably relied on by the consumer.

   The provisions of this §  35.292 issued 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).

   The provisions of this §  35.292 adopted March 29, 2002, effective March 30, 2002, 32 Pa.B. 1644.

   This section cited in 49 Pa. Code §  35.311 (relating to generally); 49 Pa. Code §  35.313 (relating to duties of buyer’s agent); 49 Pa. Code §  35.315 (relating to duties of designated agent); 49 Pa. Code §  35.316 (relating to duties of transaction licensee); and 49 Pa. Code §  43b.8 (relating to schedule of civil penalties—real estate and cemetery brokers, real estate schools).

ADVERTISING AND SOLICITATION

§ 35.301. Unauthorized advertising and solicitation.

 (a)  A licensee may not advertise the sale or lease of real estate, or otherwise solicit prospective buyers or tenants for the real estate, without the authority of the seller or lessor or of the agent of the seller or lessor.

 (b)  A rental listing referral agent may not publish information about a rental property if the lessor or property manager expressly states that the property is not to be included in lists prepared by rental listing referral agents.

   The provisions of this §  35.301 issued under the Real Estate Licensing and Registration Act (63 P. S. § §  455.101—455.902).

   The provisions of this §  35.301 adopted February 24, 1989, effective February 25, 1989, 19 Pa.B. 781.

 A licensee, whether acting on behalf of a prospective buyer or not, may not solicit—by personal contact, telephone, mail or advertising—the sale or other disposition of real estate with such frequency as to amount to clear harassment of the owner or other person who controls the sale or disposition of the real estate.

   The provisions of this §  35.302 issued under the Real Estate Licensing and Registration Act (63 P. S. § §  455.101—455.902).

 (a)  The Commission will regard an attempt by a licensee to bring about panic selling in order to profit from it as bad faith under section 604(a)(20) of the act (63 P. S. §  455.604(a)(20)). For purposes of this section, ‘‘panic selling’’ is frequent efforts to sell residential real estate in a particular neighborhood because of fear of declining real estate values when the fear is not based on facts relating to the intrinsic value of the real estate itself.

 (b)  Proof of systematic solicitation of sales listings may be considered sufficient, but not conclusive, evidence of an attempt to bring about panic selling.

   The provisions of this §  35.303 issued under the Real Estate Licensing and Registration Act (63 P. S. § §  455.101—455.902).

 A licensee who sells or leases his own real estate shall 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.

   The provisions of this §  35.304 issued under the Real Estate Licensing and Registration Act (63 P. S. § §  455.101—455.902); amended under sections 404 and 602 of the Real Estate Licensing Registration Act (63 P. S. § §  455.404 and 455.602).

   The provisions of this §  35.304 adopted February 24, 1989, effective February 25, 1989, 19 Pa.B. 781; amended November 17, 2000, effective November 18, 2000, 30 Pa.B. 5954. Immediately preceding text appears at serial page (256781).

 (a)  Brokerage companies, including sole proprietorships, cemetery companies and rental listing referral agencies shall advertise or otherwise hold themselves out to the public only under the business name designated on their license.

 (b)  Licensees who wish to use and advertise a nickname for their first names shall include the nickname on their licensure applications or biennial renewal applications.

 (c)  An advertisement by an associate broker, salesperson, cemetery associate broker or cemetery salesperson shall contain the business name and telephone number of the employing broker. The names and telephone numbers shall be of equal size.

   The provisions of this §  35.305 issued under the Real Estate Licensing and Registration Act (63 P. S. § §  455.101—455.902); amended under sections 201, 404, 501, 601, 602 and 604 of the Real Estate Licensing Registration Act (63 P. S. § §  455.201, 455.404, 455.501, 455.601, 455.602 and 455.604).

   The provisions of this §  35.305 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 November 17, 2000, effective November 18, 2000, 30 Pa.B. 5954; amended August 19, 2005, effective August 20, 2005, 35 Pa.B. 4711. Immediately preceding text appears at serial pages (287896) to (287897).

   Employing Broker Information

   Several real estate salespersons and associate brokers violated the regulation requiring them to list the business name and telephone number of their employing broker in advertisements, where the advertisements each contained the name of the employing broker and one telephone number, which, although purchased by the employing broker, provides a direct connection to the salesperson or associate broker featured in the advertisement, and where directory assistance provides a different number appearing in none of the advertisements for the employing broker. Campo v. State Real Estate Commission, 723 A.2d 260 (Pa. Cmwlth. 1998).

   An advertisement failed to meet the requirements of subsection (b) where telephone numbers, owned and maintained by the employing broker but assigned to various salespeople to answer, were displayed in the advertisement, and the numbers provided in the advertisements did not match the telephone numbers given by directory assistance for the employing broker. D’Alonzo v. State Real Estate Commission, 702 A.2d 1102 (Pa. Cmwlth. 1997).

   Validity

   The court found ample authority in the Real Estate Licensing and Regulation Act for the State Real Estate Commission’s promulgation of a regulation requiring the employing broker’s telephone number in advertisements, where employing brokers are required to supervise employed salespersons and associate brokers, and misleading advertisements are forbidden; the regulation advances the twin aims of employe supervision and prevention of public misconception by providing the public with unfettered access to the employe’s supervisor, and it also prevents the public from mistakenly believing that the salesperson or associate broker is self-employed. Campo v. State Real Estate Commission, 723 A.2d 260 (Pa. Cmwlth. 1998).

 (a)  An advertisement by a licensee for the solicitation, sale or offering for sale of real estate that employs lotteries or contests or that offers prizes, certificates, gifts or free lots shall contain:

   (1)  A description of each prize, certificate, gift or lot offered.

   (2)  The prerequisites for receiving each prize, certificate, gift or lot offered.

   (3)  Limitation on the number of prizes, certificates, gifts or lots offered.

   (4)  The fair market value of each prize, certificate, gift or lot offered. If the advertisement is in a print medium, the statement of fair market value shall be in the same size type as the description of the prize, certificate, gift or lot offered. For purposes of this paragraph, ‘‘fair market value’’ is the price or value that a prospective buyer would expect to pay, or be charged for, if he were to acquire a similar item of like quality and quantity in a retail outlet that offers the item for sale to the general public.

   (5)  The odds of winning or receiving each prize, certificate, gift or lot offered. If the advertisement is in a print medium, the statement of odds shall be the same size type as the description of the prize, certificate, gift or lot, and shall appear immediately adjacent to the description.

 (b)  A licensee who solicits, sells or offers for sale real estate by using the mails or by offering prizes, certificates, gifts or lots shall maintain records that contain:

   (1)  The number and description of each prize, certificate, gift or lot distributed or awarded.

   (2)  The name and address of each person who received a prize, certificate, gift or lot.

   (3)  The name and address of each person who responded to the advertisement or solicitation but did not receive a prize, certificate, gift or lot.

 (c)  The Commission will regard the following as deceptive conduct within the meaning of section 604(a)(18) of the act (63 P. S. §  455.604(a)(18)):

   (1)  Failure to comply with subsection (a) or (b).

   (2)  Failure to disclose the possibility that a particular prize, certificate, gift or lot may not be distributed or awarded.

   (3)  Advertising the availability of a prize, certificate, gift or lot when it is not available for distribution or awarding.

   (4)  Giving a misleading description of a prize, certificate, gift or lot.

   The provisions of this §  35.306 issued under the Real Estate Licensing and Registration Act (63 P. S. § §  455.101—455.902).

 (a)  An advertisement by a broker about ‘‘sales volume’’ or ‘‘production’’ shall refer only to closed transactions. For purpose of this subsection, a ‘‘closed transaction’’ is either a listing sold or a sale made after a fully executed deed is delivered.

 (b)  An advertisement by a broker about his production or position in the ‘‘market’’ shall identify the municipality that the market comprises.

 (c)  An advertisement by a broker about the number of offices that he operates shall refer only to those offices that have been issued branch office licenses by the Commission.

   The provisions of this §  35.307 issued under the Real Estate Licensing and Registration Act (63 P. S. § §  455.101—455.902).

 A real estate company, franchise or network may promote, endorse, or advertise its association, affiliation or connection with a real estate school or with a college, university or institute of higher learning regarding its offering of real estate instruction. An association, affiliation or connection which includes an ownership interest shall be disclosed in all promotions, endorsements or advertisements. For purposes of this section, an ownership interest will be considered by the Commission to include proprietary or beneficial interests through which the real estate company, franchise or network earns or has the potential to earn income, or which produces a direct or indirect economic benefit.

   The provisions of this §  35.308 issued under the Real Estate Licensing and Registration Act (63 P. S. § §  455.101—455.902); amended under sections 404 and 602 of the Real Estate Licensing Registration Act (63 P. S. § §  455.404 and 455.602).

   The provisions of this §  35.308 adopted June 10, 1994, effective June 11, 1994, 24 Pa.B. 2904; amended November 17, 2000, effective November 18, 2000, 30 Pa.B. 5954. Immediately preceding text appears at serial page (201871).

PERMITTED RELATIONSHIPS

§ 35.311. Generally.

 (a)  A licensee and a consumer may enter into the relationship specified in sections 606.2—606.4 and 606.6 of the act (63 P.S. § §  455.606—455.606d and 455.606f).

 (b)  A broker may not extend or delegate the broker’s agency relationship without the written consent of the principal.

 (c)  Compensation paid by a broker to another broker who assists in the marketing and sale/lease of a consumer’s property does not create an agency relationship between the consumer and that other broker.

 (d)  A licensee in an agency relationship may not knowingly, during or following the termination of an agency relationship, reveal or use confidential information of the principal, except when one or more of the following apply:

   (1)  The principal consented to the disclosure.

   (2)  The information is disclosed to another licensee or third party acting solely on behalf of the principal.

   (3)  The information is required to be disclosed under subpoena or court order.

   (4)  The disclosure is necessary to prevent the principal from committing a crime.

   (5)  The information is used by the licensee to defend in a legal proceeding against an accusation of wrongdoing.

   The provisions of this §  35.311 issued 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).

 (a)  In addition to the duties required in §  35.292 (relating to duties of licensees generally), a seller’s agent owes the additional duties of:

   (1)  Loyalty to the seller/landlord by acting in the seller’s/landlord’s best interest.

   (2)  Confidentiality, except that a licensee has a duty to reveal known material defects about the property.

   (3)  Making a continuous and good faith effort to find a buyer/tenant for the property except when the property is subject to an existing agreement of sale/lease.

   (4)  Disclosure to other parties in the transaction that the licensee has been engaged as a seller’s agent.

 (b)  A licensee does not breach a duty to a seller/landlord by showing alternative properties to a prospective buyer/tenant or listing competing properties.

 (c)  A seller’s agent may compensate other brokers as subagents if the seller/landlord agrees in writing. Subagents have the same duties and obligations to the seller/landlord as the seller’s agent.

 (d)  A seller’s agent may also compensate a buyer’s agent and a transaction licensee who do not have the same duties and obligations to the seller/landlord as the seller’s agent.

 (e)  Upon entering into a written agreement with the seller/landlord, each licensee employed by the broker will act as a seller’s agent unless a licensee has been named, or is thereafter named, a designated agent under §  35.315 (relating to designated agency).

   The provisions of this §  35.312 issued 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).

 (a)  In addition to the duties required in §  35.292 (relating to duties of licensees generally), a buyer’s agent owes the additional duties of:

   (1)  Loyalty to the buyer/tenant by acting in the buyer’s/tenant’s best interest.

   (2)  Confidentiality.

   (3)  Making a continuous and good faith effort to find a property for the buyer/tenant except when the buyer/tenant is subject to an existing contract for sale/lease.

   (4)  Disclosure to other parties in the transaction that the licensee has been engaged as a buyer’s agent.

 (b)  A licensee does not breach a duty to a buyer/tenant by showing a property the buyer/tenant is interested in to other buyer/tenants.

 (c)  A buyer’s agent represents the interests of the buyer/tenant even if paid by the seller/landlord.

 (d)  Upon entering into a written agreement with the buyer/tenant, each licensee employed by the broker will act as a buyer’s agent unless a licensee has been named, or is thereafter named, a designated agent under §  35.315 (relating to duties of designated agency).

   The provisions of this §  35.313 issued 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).

 (a)  A licensee may act as a dual agent if both parties consent in writing.

 (b)  In addition to the duties required in §  35.292 (relating to duties of licensees generally), a dual agent owes the additional duties of:

   (1)  Taking no action that is adverse or detrimental to either party’s interest in the transaction.

   (2)  Unless otherwise agreed in writing, making a continuous and good faith effort to find a buyer/tenant for the property and a property for the buyer/tenant except when the buyer/tenant or seller/landlord is subject to an existing contract.

   (3)  Confidentiality, except that a licensee is required to disclose known material defects about the property.

 (c)  A dual agent does not breach a duty to the seller/landlord by showing properties not owned by the seller/landlord to a prospective buyer/tenant or listing competing properties for sale/lease.

 (d)  A dual agent does not breach a duty to a buyer/tenant by showing a property the buyer/tenant is interested in to other prospective buyer/tenants.

   The provisions of this §  35.314 issued 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).

   The provisions of this §  35.314 adopted March 29, 2002, effective March 30, 2002, 32 Pa.B. 1644.

 (a)  A broker, with the written consent of the principal, may designate one or more licensees to act exclusively as the agent of the seller/landlord, and designate one or more licensees to act exclusively as the agent of the buyer/tenant in the same transaction.

 (b)  Designation may take place at any time. If designation takes place after the initial designation or after a written agreement has been entered into, the broker shall:

   (1)  Obtain the principal’s consent, in writing, to the newly designated licensee.

   (2)  Obtain, when applicable, the principal’s agreement to renounce any previous agency relationship with the other licensees employed by the broker.

 (c)  Regardless of when the designation takes place, the broker and the designated agents shall use reasonable care to ensure that confidential information is not disclosed or used.

 (d)  The licensees employed by the broker who are not designated have no agency relationship with either party in the transaction.

 (e)  Each licensee employed by the same broker who is a designated agent in the same transaction, owes the following additional duties, in addition to those required in §  35.292 (relating to duties of licensees generally):

   (1)  Loyalty to the principal with whom the designated agent is acting by working in that principal’s best interest.

   (2)  Make a continuous and good faith effort to find a buyer/tenant for a principal who is a seller/landlord or to find a property for a principal who is the buyer/tenant except where the seller/landlord is subject to an existing contract for sale or lease or the buyer/tenant is subject to an existing contract to purchase or lease.

   (3)  Disclose to the principal prior to writing or presenting an offer to purchase that the other party to the transaction is represented by a designated agent also employed by the broker.

   (4)  Confirm that the broker is a dual agent in the transaction.

 (f)  In the transaction specified in subsection (e), the employing broker, as a dual agent, has the additional duties, in addition to those specified in §  35.292 and §  35.314 (relating to duties of dual agents), of:

   (1)  Taking reasonable care to protect any confidential information that has been disclosed to the designated licensees.

   (2)  Taking responsibility to direct and supervise the business activities of the designated licensees while taking no action that is adverse or detrimental to either party’s interest in the transaction.

   The provisions of this §  35.315 issued 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).

   The provisions of this §  35.315 adopted March 29, 2002, effective March 30, 2002, 32 Pa.B. 1644.

 In addition to the duties required in §  35.292 (relating to duties of licensees generally), a transaction licensee shall advise the consumer that the licensee:

   (1)  Is not acting as an agent or advocate for the consumer and should not be provided with confidential information.

   (2)  Owes the additional duty of limited confidentiality in that the following information may not be disclosed:

     (i)   The seller/landlord will accept a price less than the asking/listing price.

     (ii)   The buyer/tenant will pay a price greater than the price submitted in a written offer.

     (iii)   The seller/landlord or buyer/tenant will agree to financing terms other than those offered.

   The provisions of this §  35.316 issued 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).

   The provisions of this §  35.316 adopted March 29, 2002, effective March 30, 2002, 32 Pa.B. 1644.

ESCROW REQUIREMENTS

§ 35.321. Duty to deposit money belonging to another into escrow account.

 (a)  Except as provided in subsection (b), a broker shall deposit money that the broker receives belonging to another into an escrow account in a Federally or State-insured bank or depository to be held pending consummation of the transaction or a prior termination thereof that does not involve a dispute between the parties to the transaction, at which time the broker shall pay over the full amount to the party entitled to receive it. If a broker is a partnership, association or corporation, its broker of record shall be responsible for ensuring that the escrow duty is performed.

 (b)  A broker is not required to hold in escrow rents that he receives as a property manager for a lessor. A broker shall deposit rents received into a rental management account that is separate from the broker’s escrow and general business accounts.

 (c)  If a broker receives money belonging to another under an installment land purchase agreement, the transaction shall be considered consummated, for purposes of subsection (a), when the buyer has been afforded the opportunity, by means of the seller’s written acknowledgement on or affixed to the agreement, to record the agreement, unless the agreement specifies otherwise.

 (d)  If a broker receives money belonging to another under an agreement of sale involving cemetary property, the transaction shall be considered consummated, for purposes of subsection (a), when the buyer receives a copy of the agreement of sale.

 (e)  If a broker receives a security deposit belonging to another under a lease agreement, the broker’s duty to pay over the deposit for purposes of subsection (a), shall arise when the tenancy ends. If a sale of the leased premises or a change in a property management contract occurs during the term of the tenancy, the broker may transfer the security deposit from the broker’s escrow account to the escrow account of the lessor or the lessor’s broker upon notification in writing to each tenant from whom the broker received a deposit of the name and address of the banking institution in which the deposits will be held, and the amount of the deposits.

   The provisions of this §  35.321 issued under the Real Estate Licensing and Registration Act (63 P. S. § §  455.101—455.902); amended under sections 404 and 602 of the Real Estate Licensing Registration Act (63 P. S. § §  455.404 and 455.602).

 A broker’s escrow duty may not be waived or altered by an agreement between the parties to the transaction, between the broker and the parties, or between the broker and other brokers who may be involved in the transaction.

   The provisions of this §  35.322 issued under the Real Estate Licensing and Registration Act (63 P. S. § §  455.101—455.902).

 (a)  If a sales deposit is tendered by a buyer to the listing broker rather than to the selling broker, the listing broker shall assume the escrow duty.

 (b)  If a sales deposit is tendered by a buyer to the selling broker with the buyer having prior notice that the selling broker intends to deliver the deposit to the listing broker, the listing broker shall assume the escrow duty. The selling broker shall require the buyer to acknowledge in writing, prior to his signing the agreement of sale, that the prior notice contained the following information:

   (1)  The name of the listing broker.

   (2)  That the selling broker’s acceptance of the buyer’s deposit is on behalf of the listing broker as subagent for the listing broker.

   (3)  That the listing broker is a licensed real estate broker who is required to hold the deposit in escrow.

   (4)  That the listing broker be designated as payee, if the buyer’s deposit is in the form of a check.

 (c)  If a sales deposit is tendered by a buyer to the selling broker without the buyer having the prior notice in subsection (b), the selling broker shall assume the escrow duty.

   The provisions of this §  35.323 issued under the Real Estate Licensing and Registration Act (63 P. S. § §  455.101—455.902).

 (a)  Except as provided in subsection (b), a broker shall deposit money belonging to another into an escrow account by the end of the next business day following its receipt in the real estate office where the escrow records are maintained.

 (b)  If the money of another has been tendered to the broker in the form of a check under an offer to purchase or lease real estate, the broker may, with the written permission of both the buyer and the seller or the lessee and the lessor, refrain from depositing the money into an escrow account by the deadline in subsection (a) pending the seller’s or lessor’s acceptance of the offer. The broker shall deposit the check into an escrow account within 1 business day of the seller’s or lessor’s acceptance of the offer.

   The provisions of this §  35.324 issued under the Real Estate Licensing and Registration Act (63 P. S. § §  455.101—455.902).

 (a)  An escrow account shall:

   (1)  Be maintained in a Federally- or State-insured bank or recognized depository.

   (2)  Designate the broker as trustee.

   (3)  Provide for the withdrawal of funds without prior notice.

   (4)  Be used exclusively for escrow purposes.

 (b)  A broker who is a sole proprietor or broker of record may give an employee written authority to deposit money into an escrow account and may give a licensed employee written authority to withdraw funds from the escrow account for payments that are properly chargeable to the account.

 (c)  If money is expected to be held in escrow for more than 6 months, the broker is encouraged to deposit the money into an interest-bearing escrow account. Interest earned on an escrow account shall be held and disbursed, pro rata, in the same manner as the principal amount, unless the parties to the transaction direct otherwise by agreement. A broker may not claim the interest earned on an escrow account, unless the broker is a lessor as provided in section 511.2 of the Landlord and Tenant Act (68 P. S. §  250.511b).

 (d)  A broker shall provide the Commission or its authorized representatives, upon written request or under an office inspection under §  35.246 (relating to inspection of office), a letter addressed to the bank or depository where the escrow account is maintained authorizing the release of records pertaining to the account.

   The provisions of this §  35.325 issued under the Real Estate Licensing and Registration Act (63 P. S. § §  455.101—455.902); 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).

 (a)  Except as provided in subsection (b), a broker may not commingle money that is required to be held in escrow—or interest earned on an escrow account—with business, personal or other funds.

 (b)  A broker may deposit business or personal funds into an escrow account to cover service charges assessed to the account by the bank or depository where the account is located or to maintain a minimum balance in the account as required by the regulations of the bank or depository.

 (c)  A broker may not misappropriate money that is required to be held in escrow—or interest earned on an escrow account—for business, personal or other purposes.

   The provisions of this §  35.326 issued under the Real Estate Licensing and Registration Act (63 P. S. § §  455.101—455.902).

 If a dispute arises between the parties to a real estate transaction over entitlement to money that is being held in escrow by a broker, the broker shall retain the money in escrow until the dispute is resolved. If resolution of the dispute appears remote without legal action, the broker may, following 30 days’ notice to the parties, petition the county court having jurisdiction in the matter to interplead the rival claimants.

   The provisions of this §  35.327 issued under the Real Estate Licensing and Registration Act (63 P. S. § §  455.101—455.902).

 A broker shall keep records of monies received by him that are required to be held in escrow and shall produce the records for examination by the Commission or its authorized representatives upon written request or pursuant to an office inspection under §  35.246 (relating to inspection of office). The records shall contain:

   (1)  The name of the party from whom the broker received the money.

   (2)  The name of the party to whom the money belongs.

   (3)  The name of the party for whose account the money is deposited.

   (4)  The date the broker received the money.

   (5)  The date the broker deposited the money into the escrow account.

   (6)  The date the broker withdrew the money from the escrow account.

   The provisions of this §  35.328 issued under the Real Estate Licensing and Registration Act (63 P. S. § §  455.101—455.902).

   The provisions of this §  35.328 adopted February 24, 1989, effective February 25, 1989, 19 Pa.B. 781.

REAL ESTATE DOCUMENTS

§ 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 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).

   The provisions of this §  35.331 adopted February 24, 1989, effective February 25, 1989, 19 Pa.B. 781; amended June 10, 1994, effective June 11, 1994, 24 Pa.B. 2904; corrected October 14, 1994, effective June 11, 1994, 24 Pa.B. 5229; amended March 29, 2002, effective March 30, 2002, 32 Pa.B. 1644. Immediately preceding text appears at serial page (201876).

 (a)  An exclusive listing agreement may comprise one of the following:

   (1)  The exclusive agency of the broker.

   (2)  The exclusive right-to-sell or exclusive right-to-lease.

 (b)  An exclusive listing agreement shall contain, in addition to the requirements in §  35.331 (relating to written agreements generally), the following:

   (1)  The sale or lease price.

   (2)  The commission, fees or other compensation expected on the sale or lease price.

   (3)  The duration of the agreement.

   (4)  In the case of an exclusive right-to-sell agreement, a statement in bold face type that the broker earns a commission on the sale of the property during the listing period by whomever made, including the owner.

   (5)  In the case of an exclusive right-to-lease agreement, a statement in bold print that the broker earns a commission on the lease of the property during the listing period by whomever made, including the lessor.

 (c)  An exclusive listing agreement may not contain:

   (1)  A listing period exceeding 1 year.

   (2)  An automatic renewal clause.

   (3)  A cancellation notice to terminate the agreement at the end of the listing period set forth in the agreement.

   (4)  Authority of the broker to execute a signed agreement of sale or lease for the owner or lessor.

   (5)  An option by the broker to purchase the listed property.

   (6)  Authority of the broker to confess judgment against the owner or lessor for the Commission in the event of a sale or lease.

   The provisions of this §  35.332 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).

 (a)  An agreement of sale, other than for a cemetery lot, mausoleum or cremation space or opening, shall contain:

   (1)  The date of the agreement.

   (2)  The names of the buyer and seller.

   (3)  A description of the property and the interest to be conveyed.

   (4)  The sale price.

   (5)  The dates for payment and conveyance.

   (6)  The zoning classification of the property, except if the property (or each parcel thereof, if subdividable) is zoned solely or primarily to permit single-family dwellings, together with a statement that the failure of the agreement of sale to contain the zoning classification of the property shall render the agreement voidable at the option of the buyer and, if voided, deposits tendered by the buyer shall be returned to the buyer without a requirement of court action.

   (7)  A statement identifying the capacity in which the broker, or a licensee employed by the broker is involved in the transaction and whether services have been provided to another party in the transaction.

   (8)  A provision that payments of money received by the broker on account of the 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.

   (9)  The following statement:

  “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.”

   (10)  A statement that access to a public road may require issuance of a highway occupancy permit from the Department of Transportation.

   (11)  In the case of an agreement of sale for the purchase of a time share or campground membership, a statement regarding the purchaser’s right of cancellation that is set forth conspicuously in bold face type of at least 10 point size immediately above the signature line for the purchaser and that is in substantially the following form:

   “You, the purchaser, may cancel this purchase at any time prior to midnight of the fifth day following the date of this transaction. If you desire to cancel, you are required to notify the seller, in writing, at (insert address). Such notice shall be given by certified return receipt mail or by any other bona fide means of delivery which provides you with a receipt. Such notice shall be effective upon being postmarked by the United States Postal Service or upon deposit of the notice with any bona fide means of delivery which provides you with a receipt.”

 (b)  An agreement of sale that is conditioned upon the ability of the buyer to obtain a mortgage shall contain:

   (1)  The type of mortgage.

   (2)  The mortgage principal.

   (3)  The maximum interest rate of the mortgage.

   (4)  The minimum term of the mortgage.

   (5)  The deadline for the buyer to obtain the mortgage.

   (6)  The nature and extent of assistance that the broker will render to the buyer in obtaining the mortgage.

 (c)  The following terms shall be printed in bold face if made part of an agreement of sale:

   (1)  A provision relieving the seller from responsibility for defects involving the sale property, or a provision requiring the buyer to execute a release to that effect at the time of settlement, or a provision of similar import.

   (2)  A provision reserving to the builder-seller the right to change, or depart from, the building specifications for the sale property.

 (d)  An agreement of sale for a cemetery lot or plot or a mausoleum space or opening shall contain the requirements in subsection (a)(1)—(5) and (9).

   The provisions of this §  35.333 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).

 (a)  Before an agreement of sale is executed, the brokers involved in the transaction shall provide each party with a written estimate of reasonably foreseeable expenses associated with the sale that the party may be expected to pay, including, but not limited to:

   (1)  The broker’s commission.

   (2)  The mortgage payments and financing costs.

   (3)  Taxes and assessments.

   (4)  Settlement expenses.

 (b)  The estimates of costs required under subsection (a) shall be as accurate as may be reasonably expected of a person having knowledge of, and experience in, real estate sales.

 (c)  The following statement of estimated costs to the buyer at settlement is exemplary of the requirements of subsection (a):

STATEMENT OF ESTIMATED COSTS TO BUYER AT SETTLEMENT

   Estimated Settlement Date

 I/we have read and received a copy of the estimated settlement costs and estimated monthly carrying charges prior to the signing of an agreement of sale to purchase the property noted above.

 I/we understand that the above costs are estimated and based on the best information available at this date and that they are subject to change, particularly in the case of the escrow charges such as taxes, water and sewage, rent and insurance.

 WITNESS:

 (d)  The following statement of estimated costs to the seller at settlement is exemplary of the requirements of subsection (a):

 WITNESS:

   The provisions of this §  35.334 issued under the Real Estate Licensing and Registration Act (63 P. S. § §  455.101—455.902).

   The provisions of this §  35.334 adopted February 24, 1989, effective February 25, 1989, 19 Pa.B. 781.

 The agreement between a rental listing referral agent and a prospective tenant shall contain:

   (1)  The rental specifications desired by the prospective tenant, such as location and rent.

   (2)  The following statement in bold print:

     ‘‘We are a referral service only. We are not acting as real estate salespersons or brokers. We do not guarantee that the purchaser will find a satisfac-tory rental unit through our service. Our only purpose is to furnish the purchaser with lists of available rental units.’’

   The provisions of this §  35.335 issued under the Real Estate Licensing and Registration Act (63 P. S. § §  455.101—455.902).

 (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 licensee’s company works exclusively for the seller/landlord and must act in the seller’s/landlord’s 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 licensee’s company work exclusively for the buyer/tenant even if paid by the seller/landlord. The buyer agent must act in the buyer/tenant’s 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 seller’s 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 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.

 • 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 licensee’s employment, listing agreement or contract.

 • The licensee’s fees or commission.

 • The scope of the licensee’s activities or practices.

 • The broker’s cooperation with and sharing of fees with other brokers.

 • All sales agreements must contain the property’s 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:

 (Consumer’s printed name) (Consumer’s signature)

 Date:

 (Consumer’s printed name) (Consumer’s signature)

 I certify that I have provided this document to the above consumer during the initial interview.

 Date:

 (Licensee’s printed name)   (Licensee’s signature)     (License #)

Adopted by the State Real Estate Commission in 49 Pa. Code §  35.336.

   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, 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).

   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).

 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: 

 I CERTIFY THAT I HAVE PROVIDED THIS NOTICE:

   The provisions of this §  35.337 issued 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).

   The provisions of this §  35.337 adopted March 29, 2002, effective March 30, 2002, 32 Pa.B. 1644.

 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:

 I CERTIFY THAT I HAVE PROVIDED THIS NOTICE:

   The provisions of this §  35.338 issued 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).

   The provisions of this §  35.338 adopted March 29, 2002, effective March 30, 2002, 32 Pa.B. 1644.

 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.”

   The provisions of this §  35.339 issued 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).

   The provisions of this §  35.339 adopted March 29, 2002, effective March 30, 2002, 32 Pa.B. 1644.

 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.

   The provisions of this §  35.340 issued 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).

   The provisions of this §  35.340 adopted March 29, 2002, effective March 30, 2002, 32 Pa.B. 1644.