Pennsylvania Act 2007-65 — REAL ESTATE LICENSING AND REGISTRATION ACT - PROHIBITING CERTAIN ACTS

Act text

REAL ESTATE LICENSING AND REGISTRATION ACT - PROHIBITING CERTAIN ACTS
                  Act of Dec. 4, 2007, P.L. 431, No. 65               Cl. 63
                             Session of 2007
                               No. 2007-65

     SB 886

                                  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 prohibiting certain acts.

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

        Section 1.  Section 604(a)(18) of the act of February 19,
     1980 (P.L.15, No.9), known as the Real Estate Licensing and
     Registration Act, amended July 1, 1990 (P.L.304, No.69), is
     amended 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:
            * * *
            (18)  Soliciting, selling or offering for sale real
        property by offering free lots, or conducting lotteries or
        contests or offering prizes for the purpose of influencing by
        deceptive conduct any purchaser or prospective purchaser of
        real property. The commission shall promulgate necessary
        rules and regulations to provide standards for nondeception
        conduct under this paragraph.
                (i)  Any offering by mail or by telephone of any
            prize, gift, award or bonus in relation to the offering
            of sale of real property, including time sharing, shall
            be accompanied by a statement of the fair market value,
            not suggested retail price, of all prizes offered, plus a
            statement of the odds of receiving any such prize. If the
            offering is by mail the statement of value and odds shall
            be printed in a clear and conspicuous manner.
                (ii)  If a prize is to be awarded as a rebate, coupon
            or discount certificate, a statement of that fact shall
            be included. An offering by mail shall include a
            statement of any fees and the maximum amount of each
            which the prizewinner must pay in order to receive the
            prize. Such fees shall include, but not be limited to,
            dealer preparation, shipping, handling, redemption and
            shipping insurance. Each fee associated with a prize and
            the odds of receiving the prize shall appear in a clear
            and conspicuous manner on any offering by mail.
                (iii)  An offering by mail shall be written in a
            clear and coherent manner, using common usages of words
            and terms. A concise description of the real property or
            interest being promoted shall appear in any offering and
            shall include a statement that the interest is a time
            share, where applicable. If the prospective prizewinner
            must personally visit and inspect the real property or
            interest being promoted and listen to a sales
            presentation in order to win a prize, the offering shall
            include a statement of that fact. An offering may include
            instructions for a recipient to contact a certain
            telephone number within a specified time period or by a
            specified date, if the offeror identifies the business
            entity and its relationship to the offeror and complies
            with this paragraph.
                (iv)  Substitutions of prizes having equal or greater
            fair market value may be made if the offeror complies
            with this paragraph.
                (v)  (A)  If a prospective purchaser must attend a
                time share sales presentation as a condition of the
                offering, the required disclosures for the offering
                shall:
                        (I)  Be provided in writing or
                    electronically, not orally.
                        (II)  Be stated in a clear, coherent and
                    conspicuous manner.
                        (III)  For the disclosure regarding the
                    scheduled sales presentation, appear in boldface
                    type.
                    (B)  The disclosures shall be provided at least
                once before the scheduled sales presentation and in a
                reasonable period of time before the scheduled sales
                presentation to ensure that the prospective purchaser
                receives the disclosures before departure to attend
                the sales presentation. If the initial invitation to
                the sales presentation is made to a prospective
                purchaser while the purchaser is on the premises, the
                disclosures may be provided directly to the
                prospective purchaser prior to the sales
                presentation.
                    (C)  The required disclosures need not be in
                every advertisement or other written, oral or
                electronic communication provided or made to a
                prospective purchaser before a scheduled sales
                presentation.
                [(v)] (vi)  As used in this paragraph, the term
            "prize" includes, but is not limited to, money, personal
            property, vacations, travel certificates, motor vehicles
            and appliances.
            * * *
        Section 2.  This act shall take effect in 60 days.

     APPROVED--The 4th day of December, A. D. 2007.

     EDWARD G. RENDELL