HB 863 — An Act amending the act of February 19, 1980 (P.L.15, No.9), known as the Real Estate Licensing and Registration Act, in definitions, further providing for definitions; in qualifications and applications for licenses and registration certificates, further providing for qualifications for license; in duties of licensees, further providing for comparative market analysis disclosure and providing for broker price opinion; in Real Estate Recovery Fund, further providing for establishment of the fund; and making related repeals.

PRIOR PRINTER'S NO.

969 PRINTER'STHE NO.GENERAL ASSEMBLY OF PENNSYLVANIA HOUSE BILL Session of No.

1930 THE GENERAL ASSEMBLY OF PENNSYLVANIA HOUSE BILL Session of No.

BROWN, A.DRISCOLL, CARROLL, CUTLER, ROE, GODSHALL, PHILLIPS-HILL,KER, LONGIETTI, MASSER, SAYLOR, KNOWLES, HELM, BRIGGS, DEASY, IRVIN, RYAN, TOEPEL, NEILSON AND MARKOSEK, MARCH 16, 2017 REFERRED TO COMMITTEE ON PROFESSIONAL LICENSURE, MARCH 16, 2017 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," in definitions, further providing for definitions;

HARRIS,in MARSICO,qualifications WATSON,and STEPHENS,applications KORTZ,for QUIGLEY,licenses BAKER,and DRISCOLL,registration CARROLL,certificates, CUTLER,further ROE,providing GODSHALL,for PHILLIPS-HILL,providing LONGIETTI,for MASSER,comparative SAYLOR,market KNOWLES,analysis HELM,disclosure BRIGGS,andher DEASY,providing IRVIN,for RYAN,broker TOEPEL,price NEILSON,opinion; MARKOSEK, RAVENSTAHL, O'BRIEN, AND C.

QUINN, MARCH 16, 2017LEGEL CULVER, WHEELAND, READSHAW AS REPORTED FROM COMMITTEE ON PROFESSIONAL LICENSURE, HOUSE OF REPRESENTATIVES, AS AMENDED, JUNE 7, 2017 AN ACT Amending the act of February 19, 1980 (P.L.15, No.9), entitled "An act establishing the State Real Estate Commission and providingmaking fora therelated licensingrepeal. of real estate brokers and salesmen," in definitions, further providing for definitions;

inThe qualificationsGeneral andAssembly applicationsof forthe licensesCommonwealth andof registrationPennsylvania certificates,hereby furtherenacts providingas forfollows: qualifications for license;

in duties of licensees, further providing for comparative market analysis disclosure and providing for broker price opinion;

IN REAL ESTATE RECOVERY <-- making a related repeal RELATED REPEALS.T OF THE FUND;

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

(1) An existing or potential seller, buyer, lessor or lessee of a THE parcel of real property.

<-- (2) A person making decisions or performing due 20170HB0863PN1930 - 2 - diligence related to the potential listing, offering, sale, option, lease or acquisition price of a THE parcel of real <--20170HB0863PN0969 - 2 - property.

* * * "Short sale." A sale of a house in which the proceeds fall <-- short of the amount the owner owes on the mortgage.

REAL <-- PROPERTY IN WHICH THE SELLER'S PROCEEDS ARE LESS THAN THE AMOUNT REQUIRED TO PAY OFF ALL LIENS SECURED BY THE PROPERTY.

An applicant who has not completed any of the required hours of real estate instruction before the effective date of this subparagraph shall complete 75 20170HB0863PN1930 - 3 - hours of real estate instruction within five years of taking the salesperson license examination.

(3) The applicant shall be a high school graduate or shall produce proof satisfactory to the commission of an 20170HB0863PN0969 - 3 - education equivalent to high school preparation.

This analysis has not been prepared in accordance with 20170HB0863PN1930 - 4 - 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 20170HB0863PN0969 - 4 - interest.

20170HB0863PN1930 - 5 - (6) The effective date of the broker price opinion and the date that the document is signed.

(d) Any fees charged for a broker price opinion shall be 20170HB0863PN0969 - 5 - paid to the broker.

OR <-- (4) an evaluation or monitoring of a portfolio of properties;

or <-- (5) the relocation of an individual who is the owner of a property or a prospective purchaser of a property.

(f) A broker price opinion may not be usedused: PREPARED BY A <-- BROKER, ASSOCIATE BROKER OR SALESPERSON FOR USE:

or <-- (v) any other action or proceeding before a court of 20170HB0863PN1930record. - 6 - record.;

OR <-- (VI) THE DISTRIBUTION OF A DECEDENT'S ESTATE.

(h) A registered appraisal management company may recruit, 20170HB0863PN0969 - 6 - engage and negotiate fees with a broker to prepare broker price opinions and may receive orders for and submit broker price opinions to clients.

(k) In order to facilitate the prompt implementation of this section, regulations promulgated by the commission shall be deemed temporary regulations which shall expire no later than 20170HB0863PN1930 - 7 - three years following the effective date of this section.

20170HB0863PN0969 - 7 - (2) The act of June 25, 1982 (P.L.633, No.181), known as the "Regulatory Review Act." (l) The authority provided to the commission to adopt temporary regulations under subsection (k) shall expire three years from the effective date of this section.

SECTIONSection 5.

SECTION 801(B) OF THE ACT IS AMENDED TO READ:

<-- SECTION 801.

ESTABLISHMENT OF THE FUND.

* * * (B) THE REAL ESTATE RECOVERY FUND SHALL NOT APPLY TO THE FOLLOWING:

(1) THE SALE OF, OR THE OFFER TO SELL, A CAMPGROUND MEMBERSHIP OR TO A CAMPGROUND MEMBERSHIP SALESPERSON.

(2) THE PREPARATION OR ISSUANCE OF A BROKER PRICE OPINION.

Section 5 6.

<-- (1) The General Assembly declares that the repeal under paragraph (2) is PARAGRAPHS (2) AND (3) ARE necessary to <-- effectuate this act.

(3)Section THE6. ACT OF FEBRUARY 2, 2012 (P.L.30, NO.4), KNOWN AS <-- THE APPRAISAL MANAGEMENT COMPANY REGISTRATION ACT, IS 20170HB0863PN1930 - 8 - REPEALED INSOFAR AS IT IS INCONSISTENT WITH THIS ACT.

Section 6 7.

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