Legal Column

Mette Evans and Woodside, legal counsel for both the Pennsylvania Association of REALTORS® and the Greater Harrisburg Association of REALTORS®, provides a monthly column to our membership.

Seller Disclosure

The disclosure of a home’s material defects didn’t begin with passage of the Real Estate Seller Disclosure Law (“RESDL”). Pennsylvania common law has long required that sellers disclose latent and material defects. The problem, prior to the use of the mandatory form required the RESDL was that sellers often overlooked problems. In the old days we elicited material defects by asking the seller… Read On

Independent Contractor Agreement

Real estate licensees can be transient. When a sales associate moves on, the broker will likely take one of three paths: 1) congratulate and thank the associate and release her listings and buyer agency contracts; 2) go berserk and escort the associate to the door; or 3) take a path somewhere in between. In general, I am inclined to believe that moves are to be expected and that sales associates will bring and take business and in the long run it all evens out… Read On

The Answer is Simple: It Depends

“It depends” is the right answer to most questions. Here the question is whether it is legal to give thank you gifts to people who refer buyers and sellers to real estate licensees. The reason I can’t give a straight answer to this simple question is because it lacks the details that accompany real life situations… Read On

Magisterial District Justices

The magisterial district courts are the small claims courts of Pennsylvania. The magisterial district justices (“MDJs”) are the small claims judges. It is within their jurisdiction to conduct preliminary hearings in criminal matters where the only issue is whether there is sufficient evidence to send the matter to the common pleas court for trial. Hopefully your interest in this article has nothing to do with the criminal functions of the court! Read On

How Long to Return Deposits?

As a broker holding a deposit, how long should it take you to return it pursuant to the terms of a release signed by both parties or when sufficient time has passed (the 180 days or whatever it has been reduced to) and not litigation/mediation has been initated? I am hearing complaints that listing brokers area taking “too long” to return deposits when buyers are the recipients… Read On

What If?

These two words are the start of many questions by those who draft contracts, including agreements for the sale of real estate. Consider Paragraph 18 of the PAR standard agreement entitled Maintenance and Risk of Loss. This paragraph was borne of the following “what ifs?” What if the HVAC system or other systems fail after signing but before settlement? Read On

Attend Inspections

Who, if anyone, should attend home inspections has been a topic of debate for as long as home inspections have been a standard element in a residential transaction. Year ago when the topic came up at an NAR meeting of attorneys who represented state associations of Realtors, the room was divided, with roughly 50% saying that buyers should attend… Read On

Untimely Repairs

It happens. Sellers agree to make repairs suggested by a home inspection, but fail to complete the job timely. When this happens a buyer is faced, unfairly, with proceeding under a contingent plan (e.g., having repairs made post-settlement or taking cash in lieu of repair) or of delaying settlement. Usually there is little choice. The buyer is packed and ready to move or the mortgage commitment can’t be extended… Read On

Working Outside of the Box

Real estate salespersons often have second jobs. Should a broker care? All in unison: “it depends.” Issues relating to profitability and productivity of a salesperson aside, a broker has reason to be concerned when a salesperson is also employed in a job closely aligned to real estate. There can be unanticipated and negative consequences for the broker and the brokerage… Read On

Working Inside the Box – Establishing the Box

What is your agreement with your broker? A recurring question to the Hotline is “what is my broker’s obligation to pay me when I have pending transactions at the time I affiliate with a new broker?” There are many similar questions relating to fees after termination and whether a salesperson can take her clients and transactions to her new brokerage… Read On