A new Pennsylvania will protect homeowners from predatory real estate practices that can strip them of their housing wealth. Act 52 of 2024 — formerly Senate Bill 1173 — will regulate third parties in real estate deals called “wholesalers,” who sign agreements of sale with homeowners and then sell those agreements to someone else. Wholesalers solicit homeowners with “We Buy Houses” signs, as well as texts, calls, mailers and visits, and then often use high-pressure tactics to get owners to sign contracts. Act 52 will require wholesalers to have real estate licenses, which means they will be required to follow rules that regulate licensees, and consumers can go to the state Real Estate Commission if they encounter problems. The Pennsylvania Association of Realtors (PAR) pushed for the legislation. “We’re big believers in information and transparency and educating the consumer, and Act 52 does that well,” said incoming PAR president Bill Lublin. Wholesalers also must tell people that they are participating in a wholesale transaction and that they have a right to a property appraisal and legal counsel. The law also will make it easier for homeowners to back out of deals they sign with wholesalers if problems arise. Read more in the Inquirer and on the PAR website.
Source: Inquirer; 7/22/2024