PRINTER'S NO. 1948
No. 1474 Session of 1990
INTRODUCED BY SHAFFER, SALVATORE, PECORA, PORTERFIELD, REIBMAN,
HELFRICK, AFFLERBACH AND PUNT, FEBRUARY 13, 1990
REFERRED TO CONSUMER PROTECTION AND PROFESSIONAL LICENSURE,
FEBRUARY 13, 1990
AN ACT
1 Amending the act of February 19, 1980 (P.L.15, No.9), entitled
2 "An act establishing the State Real Estate Commission and
3 providing for the licensing of real estate brokers and
4 salesmen," further providing for the application of the act
5 to persons employed by an owner of real estate for the
6 purpose of managing or maintaining multifamily residential
7 property.
8 The General Assembly of the Commonwealth of Pennsylvania
9 hereby enacts as follows:
10 Section 1. The definition of "builder-owner salesperson" in
11 section 201 and section 304 of the act of February 19, 1980
12 (P.L.15, No.9), known as the Real Estate Licensing and
13 Registration Act, amended March 29, 1984 (P.L.162, No.32), are
14 amended to read:
15 Section 201. Definitions.
16 The following words and phrases when used in this act shall
17 have, unless the context clearly indicates otherwise, the
18 meanings given to them in this section:
19 * * *
20 "Builder-owner salesperson." Any person who is a full-time
1 employee of a builder-owner of single and multifamily dwellings
2 located within the Commonwealth and as such employee shall be
3 authorized and empowered to list for sale, sell or offer for
4 sale, or to negotiate the sale or exchange of real estate, or to
5 lease or rent, or offer to lease, rent or place for rent, any
6 real estate owned by his builder-owner employer, or collect or
7 offer, or attempt to collect, rent for the use of real estate
8 owned by his builder-owner employer, for and on behalf of such
9 builder-owner employer. [The term does not include any person
10 employed by an owner of real estate for the purpose of managing
11 or maintaining multifamily residential property: Provided,
12 however, That such person is not authorized or empowered by such
13 owner to enter into leases on behalf of the owner, to negotiate
14 terms or conditions of occupancy with current or prospective
15 tenants, or to hold money belonging to tenants other than on
16 behalf of the owner. The term "negotiate," as used in this
17 definition does not mean the transmission of information between
18 the owner and current or prospective tenants, such as rental
19 amounts, building rules and regulations or leasing
20 determinations, so long as the owner retains the authority to
21 make all such decisions.]
22 * * *
23 Section 304. Exclusions.
24 Except as otherwise provided in this act, the provisions of
25 this act shall not apply to the following:
26 (1) An owner of real estate with respect to property
27 owned or leased by such owner. In the case of a partnership
28 or corporation, this exclusion shall not extend to more than
29 five of its partners or officers, respectively, nor to other
30 partnership or corporation personnel or employees.
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1 (2) The employees of a public utility acting in the
2 ordinary course of utility-related business under the
3 provisions of Title 66 of the Pennsylvania Consolidated
4 Statutes (relating to public utilities), with respect to
5 negotiating the purchase, sale or lease of property.
6 (3) The officers or employees of a partnership or
7 corporation whose principal business is the discovery,
8 extraction, distribution or transmission of energy or mineral
9 resources, provided that the purchase, sale or lease of real
10 estate is a common and necessary transaction in the conduct
11 of such principal business.
12 (4) The services rendered by an attorney-in-fact under
13 an executed and recorded power of attorney from the owner or
14 lessor (provided such power of attorney is not utilized to
15 circumvent the intent of this act) or by an attorney at law.
16 (5) A person acting as trustee in bankruptcy,
17 administrator, executor, trustee or guardian while acting
18 under a court order or under the authority of a will or of a
19 trust instrument.
20 (6) The elected officer of any banking institution or
21 trust company operating under Federal or State banking laws
22 where only the real estate of the banking institution or
23 trust company is involved.
24 (7) Any officer or employee of a cemetery company who,
25 as incidental to his principal duties and without
26 remuneration therefor, shows lots in such company's cemetery
27 to persons for their use as a family burial lot and who
28 accepts deposits on such lots for the representatives of the
29 cemetery company legally authorized to sell the same.
30 (8) Cemetery companies and cemeteries owned or
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1 controlled by a bona fide church or religious congregation or
2 fraternal organization or by any association created by a
3 bona fide church or religious organization or by a fraternal
4 organization.
5 (9) An auctioneer licensed under the act of September
6 29, 1961 (P.L.1745, No.708), known as "The Auctioneers'
7 License Act," while performing authorized duties at any bona
8 fide auction.
9 (10) Any person employed by an owner of real estate for
10 the purpose of managing or maintaining multifamily
11 residential property: Provided, however, That such person is
12 not authorized or empowered by such owner to enter into
13 leases on behalf of the owner, to negotiate terms or
14 conditions of occupancy with current or prospective tenants,
15 or to hold money belonging to tenants other than on behalf of
16 the owner. So long as the owner retains the authority to make
17 all such decisions, the employees may show apartments, and
18 provide information on rental amounts, building rules and
19 regulations and leasing determinations.
20 Section 2. This act shall take effect in 60 days.
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