The John Schemm Group

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Here you can keep up to date about what is happening in Chester County Real Estate.
Taken from the Phil. Inquirer, Sunday, November 28, 1999.
Pennsylvania's new real estate agency law, Act 112, took effect Thanksgiving Day, one year after it was signed into law by Gov. Ridge.
The law amends the State's real estate licensing act to require, among other things, that real estate agents provide consumers with a disclosure statement that defines agency - the business relationship between the consumer and the agent.
The law also lists the duties of each kind of agency, and details the kinds of things that are negotiable, such as contract duration and fees.
Act 112 also defines the duties of the licensee to the consumer, requiring the written disclosure at initial contact and mandating that the consumer and agent sign a contract establishing their relationship at the start of the transaction process.
It also sets up new limits on liability for the consumer and the agent.
The law establishes a client-agent relationship called "designated agency."
Under designated agency, a buyer comes to a real estate agent looking for a house. The agent has the consumer sign the consumer notice (advising of their rights) and then the consumer determines how they wish to be represented.
Should the consumer choose to view a property that their designated agent has as a listing, the agent informs the buyer of this, then suggests that if the buyer wanted someone else in the office to represent them, another agent could be disignated to do so.
With the written consent of the client, the broker then designates a buyer agent withing the office. Each agent is loyal to the client they represent, buyer or seller.
The broker is responsible to both clients because he is supervising both agents and in charge of the business, but basically stays out of it.
In addition to establishing the designated agency relationship, Act 112 set up the "transaction licensee," which is defined as a broker or salesperson who provides communication, document-preparation services without being an agent or advocate of the consumer.
A homeowner who decides not to use a licensed real estate agent could use the services of a transaction licensee.
However, the homeowner, not the licensee would have to find a buyer.