Act 112 Amended—Consumer Notice

Disclaimer:  The information on this page is not to be construed as legal advice by the State Real Estate Commission, the Bureau of Professional and Occupational Affairs, the Department of State or the Office of General Counsel.  Rather, it is being listed for informational purposes only.  For responses to any factual situations, contact your attorney.

Questions & Answers

The following are the most commonly asked questions and answers about recent amendments to the Real Estate Licensing and Registration Act.

DISCLOSURE REQUIREMENT

• How can licensees satisfy the disclosure requirements in Section 608 of the Real Estate Licensing and Registration Act?
• If the consumer is seeking to purchase commercial or residential real estate what disclosure is required?
• If the consumer is seeking to lease or rent commercial or residential real estate, what disclosure needs to be provided to those individuals?
• Does this same rule apply for the use of time-shares?
• What is an initial interview?

WRITTEN CONSUMER NOTICE

• Where do I get the written Consumer Notice?
• Who must provide the written Consumer Notice?
• When must the written Consumer Notice be provided?
• Must I use the written Consumer Notice form that appears in Section 336 of the regulations?
• Must the consumer be provided with a copy of the written Consumer Notice?
• May the written Consumer Notice be mailed, faxed or e-mailed to the consumer?

• Who is required to provide the oral disclosure in Section 608 of the Act?
• What is the text of oral disclosure?
• Must it be provided verbatim?

WRITTEN STATEMENTS

• Who is required to provide a written statement?
• Is there a form written statement that must be used?
• When is the written statement required to be provided for lease/rental of commercial or residential real estate?
• When is the written statement required to be provided for time-shares?

• Must the written Consumer Notice or the written statements applicable to lease/rentals or time-shares be signed by the consumer?
• What if the consumer refuses to sign the written Consumer Notice or the written statements?
• How long must the acknowledgments be retained?

RELATIONSHIP AGREEMENTS

• Must the consumer immediately enter into a business relationship immediately after acknowledging the written Consumer Notice?
• If the consumer refuses to enter into a business relationship agreement, what should the licensee do?
• What if the consumer does not desire either of these options?  May the licensee “show” properties to the consumer?

CMAs

• What is a comparative market analysis (CMA)?
• Is a CMA an appraisal?
• Who may perform a CMA?
• May brokers and salespersons be paid for performing a CMA?
• Must the CMA include a disclosure?
• May a real estate broker or salesperson perform an appraisal under the Real Estate Licensing and Registration Act?