Pennsylvania Act 2003-58 — REAL ESTATE LICENSING AND REGISTRATION ACT - LICENSING REQUIREMENTS AND PENALTIES

Act text

REAL ESTATE LICENSING AND REGISTRATION ACT - LICENSING REQUIREMENTS AND
                                PENALTIES
                  Act of Dec. 30, 2003, P.L. 418, No. 58              Cl. 63
                             Session of 2003
                               No. 2003-58

     HB 1000

                                  AN ACT

     Amending the act of February 19, 1980 (P.L.15, No.9), entitled
        "An act establishing the State Real Estate Commission and
        providing for the licensing of real estate brokers and
        salesmen," further providing for licensing requirements and
        penalties.

        The General Assembly of the Commonwealth of Pennsylvania
     hereby enacts as follows:

        Section 1.  Section 201 of the act of February 19, 1980
     (P.L.15, No.9), known as the Real Estate Licensing and
     Registration Act, is amended by adding definitions to read:
      Section 201.  Definitions.
        The following words and phrases when used in this act shall
     have, unless the context clearly indicates otherwise, the
     meanings given to them in this section:
        * * *
        "License."  The term includes both a standard license and a
     reciprocal license.
        "Licensee."  A person who holds a standard license or a
     reciprocal license.
        * * *
        "Reciprocal license."  A license issued under section 602(a)
     through (e).
        * * *
        "Standard license."  Any license issued under this act that
     is not a reciprocal license.
        * * *
        Section 1.1.  Section 501(a) of the act, amended July 1, 1990
     (P.L.304, No.69), is amended to read:
      Section 501.  Reputation; inactive licensee; revoked license.
        (a)  Licenses shall be granted only to and renewed only for
     persons who bear a good reputation for honesty, trustworthiness,
     integrity and competence to transact the business of broker,
     salesperson, cemetery broker, cemetery salesperson, campground
     membership salesperson, time-share salesperson, builder-owner
     salesperson or rental listing referral agent, in such manner as
     to safeguard the interest of the public, and only after
     satisfactory proof of such qualifications has been presented to
     the commission as it shall by regulation require. An applicant
     for renewal of a reciprocal license shall provide evidence that
     the applicant continues to hold a current license in the state
     where the applicant's principal place of business is located.
        * * *
        Section 2.  Section 601 of the act, amended June 29, 1990
     (P.L.246, No.58), is amended to read:
      Section 601.  Duty of brokers, cemetery brokers and rental
                    listing referral agents to maintain office.
        (a)  Each [resident licensed] broker (which term in this
     section shall include cemetery broker) and rental listing
     referral agent who holds a standard license shall maintain a
     fixed office within this Commonwealth. The current license of
     such a rental listing referral agent or broker and of each
     licensee employed by such broker or rental listing referral
     agent shall be prominently displayed in an office of the broker
     or rental listing referral agent. The address of the office
     shall be designated on the current license. In case of removal
     of a broker's office from the designated location, all licensees
     registered at that location shall make application to the
     commission before such removal or within ten days thereafter,
     designating the new location of the office, and shall pay the
     required fees, whereupon the commission shall issue a current
     license at the new location for the unexpired period, if the new
     location complies with the terms of this act. Each [licensed]
     broker who holds a standard license shall maintain a sign on the
     outside of his office indicating the proper licensed brokerage
     name.
        (b)  If the applicant for a standard broker's license intends
     to maintain more than one place of business within the
     Commonwealth, he shall apply for and obtain an additional
     license in his name at each office. Every such application shall
     state the location of such office. Each office shall be under
     the direction and supervision of a manager who is either the
     broker or an associate broker: Provided, however, That such
     broker or an associate broker may direct and supervise more than
     one office.
        Section 3.  Section 602 of the act, amended March 29, 1984
     (P.L.162, No.32), is amended to read:
      Section 602.  [Nonresident licensees.] Reciprocal licenses.
        [Any nonresident of this Commonwealth who meets the
     equivalent experience requirements and other standards and
     qualifications, as the commission shall by rule provide, shall
     qualify for a license under this act.]
        (a)  Any person who holds a current license to provide real
     estate services issued by another state and whose principal
     place of business for the provision of those services is outside
     of this Commonwealth may be issued a reciprocal license under
     this act in accordance with this section. The reciprocal license
     shall be the type of license that the commission determines is
     most similar to the type of license issued by the other state.
        (b)  Obtaining a reciprocal license shall constitute
     sufficient contact with this Commonwealth for the exercise of
     personal jurisdiction by the commission and the courts of this
     Commonwealth over the licensee in any action or proceeding
     arising out of acts or omissions by the licensee:
            (1)  in this Commonwealth; or
            (2)  relating to an actual or proposed transaction
        involving real property located in this Commonwealth.
        (c)  The commission shall issue a reciprocal license upon the
     filing with the commission of an application and the receipt of:
            (1)  a duly certified copy of a current license issued to
        the applicant by the state in which the principal place of
        business of the applicant is located or a certified statement
        that the applicant holds a current license in that state, in
        either case sent to the commission by the appropriate
        licensing body in that state;
            (2)  a certified statement sent to the commission by that
        licensing body as to whether the applicant has been the
        subject of any disciplinary proceeding and the details of
        those proceedings; and
            (3)  a verified statement from the applicant that:
                (i)  to the knowledge of the applicant, the applicant
            is not the subject of discipline or a current
            investigation or proceeding alleging misconduct under a
            licensing law or criminal law of either this Commonwealth
            or another jurisdiction;
                (ii)  the applicant has reviewed and is familiar with
            this act and the rules and regulations of the commission
            and that the applicant agrees to be bound by this act and
            those rules and regulations; and
                (iii)  the applicant agrees to permit the disclosure
            to the commission of the record in any disciplinary
            proceeding involving alleged misconduct by the applicant
            from any jurisdiction in which the applicant is or has
            been licensed.
            (4)  payment of a fee in the same amount as the fee
        required to be paid in connection with the issuance of a
        standard license of the same type; and
            (5)  a consent to service of process in a form prescribed
        by the rules and regulations of the commission.
        (d)  This section may be implemented by written reciprocal
     licensing agreements with the real estate licensing authorities
     of other states as follows:
            (1)  The commission may enter into such an agreement
        whenever the commission in its discretion determines that
        such an agreement is necessary or desirable to provide
        residents of this Commonwealth with the opportunity to secure
        a license in the other state substantially comparable to the
        opportunity afforded to residents of the other state by this
        section.
            (2)  It shall not be necessary for the commission to have
        entered into an agreement with a particular state in order
        for the commission to issue a reciprocal license under this
        section to an applicant from that state, subject to the
        restrictions in subsection (e).
        (e)  Whenever the commission determines that another state
     does not offer reciprocal licensure opportunities to residents
     of this Commonwealth that are substantially comparable to those
     afforded to residents of that state by this section, the
     commission shall require applicants from that state who apply
     for a reciprocal license to meet education, experience and
     examination requirements substantially comparable to those
     required by that state with respect to residents of this
     Commonwealth who seek reciprocal licensure in that state, except
     that any requirements imposed under this subsection shall not
     exceed the requirements for obtaining a license under this act
     imposed on residents of this Commonwealth.
        (f)  The commission shall publish annually in the
     Pennsylvania Bulletin and make available both on request and via
     the Internet:
            (1)  a list of those states with which the commission has
        signed agreements under subsection (d) and a summary of the
        terms of each agreement; and
            (2)  a list of those states that the commission has
        identified under subsection (e) as not offering substantially
        comparable reciprocal licensure opportunities and a
        description of the additional requirements the commission has
        determined are necessary to comply with that subsection.
        (g)  A person who holds a reciprocal license shall promptly
     notify the commission if the person's principal place of
     business for the provision of real estate services becomes
     located in this Commonwealth. Upon receipt of the notice by the
     commission, the person's reciprocal license shall not be renewed
     and the person shall be required to obtain a standard license.
        (h)  A reciprocal licensee shall have the same rights and
     responsibilities as if the person held a standard license,
     except that a person holding a reciprocal license:
            (1)  shall not be eligible to be a member of the
        commission;
            (2)  shall be exempt from the requirements of sections
        404.1, 501(b), 513 and 533; and
            (3)  shall be exempt from taking and passing the
        examination required for standard licenses.
        (i)  An associate broker, salesperson, campground membership
     salesperson or time-share salesperson holding a reciprocal
     license shall not conduct business in this Commonwealth except
     in affiliation with a broker holding either a standard or a
     reciprocal license.
        (j)  If the applicant for a reciprocal broker's license is a
     corporation, partnership or association, the applicant must
     designate in its application a broker of record who is an
     individual holding a current reciprocal or standard broker's
     license.
        Section 4.  Section 604(a) of the act is amended by adding
     paragraphs to read:
      Section 604.  Prohibited acts.
        (a)  The commission may upon its own motion, and shall
     promptly upon the verified complaint in writing of any person
     setting forth a complaint under this section, ascertain the
     facts and, if warranted, hold a hearing for the suspension or
     revocation of a license or registration certificate or for the
     imposition of fines not exceeding $1,000, or both. The
     commission shall have power to refuse a license or registration
     certificate for cause or to suspend or revoke a license or
     registration certificate or to levy fines up to $1,000, or both,
     where the said license has been obtained by false
     representation, or by fraudulent act or conduct, or where a
     licensee or registrant, in performing or attempting to perform
     any of the acts mentioned herein, is found guilty of:
            * * *
            (29)  Violating section 602.
            (30)  Having been disciplined under a real estate
        licensing law of another jurisdiction, including, but not
        limited to, having a license suspended or revoked, a fine or
        penalty imposed or being censured or reprimanded publicly or
        privately, except that the commission shall not have the
        authority to levy a fine solely on the basis of this
        paragraph.
        * * *
        Section 5.  This act shall take effect in 60 days.

     APPROVED--The 30th day of December, A. D. 2003.

     EDWARD G. RENDELL