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The answers given in the Ask the Real Estate Guru Column are Pennsylvania state specific.
These are answers of a general nature, based on the information provided to me.
This is not legal advice, nor should it be construed as legal advice. In other states, real estate laws, particularly agency laws will vary. Consumers living in a state other than Pennsylvania should not rely on this advice for use in their state.
Do NOT substitute any answers in this column for legal advice that is specific
to your situation.
Dear Real Estate Guru,
I'm from New York State but I have a reciprocal license in Pennsylvania. I brought an offer in on a listing in Pennsylvania, and the agent told me she was not going to present it because the property was under contract. That's illegal! And, it's a violation of the Code of Ethics! I'm really steamed; what should I do first, go to court or file an Ethics Complaint?
Dear Steamed:
Take a deep breath. It's illegal in your state, New York, it's not illegal in our state of Pennsylvania. New York law requires all offers be presented, in the words of my colleague from New York, Roseann Farrow, whether "too little or too late'. By law in your state, offers must be presented up to closing. Not so in Pennsylvania. In Pennsylvania, by law and agreement, the seller can instruct the agent that her responsibility to present additional offers terminates with the seller's written acceptance of an offer. In the Code of Ethics, SOP 1-6, it says that REALTORS® shall present offers objectively and as quickly as possible. SOP 1-7 says that as listing brokers, REALTORS® shall continue to submit offers and counter-offers until closing ….unless the seller has waived this obligation in writing. So, the Pennsylvania agent did not violate either license law or the Code of Ethics.
This brings up one of the most interesting distinctions between our two states. My colleague, Roseann Farrow and I just team taught a course we helped PRI develop called: "Crossing State Lines and Keeping It Legal". We will be presenting this course at the Triple Play Convention this year. It is very important, when acting as a reciprocal licensee, to verify what the laws are in the neighboring state. Additionally, although Pennsylvania law allows the seller to agree that subsequent offers do not have to be presented, the seller and agent can also agree that subsequent offers will be presented. This is my personal practice, based on the philosophy we promote in the SRS (Seller Representation Specialist) course, which is: "What I know, my principal knows."
For the next time, you may want to ask the agent what the seller and agent, in Pennsylvania, have agreed to with respect to the presentation of offers after the seller has accepted a written offer.
Answers to previous questions, click here
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