Bill > HB986

This bill introduces the Unfair Real Estate Service Agreements Act, which aims to protect consumers from potentially exploitative real estate service agreements. The legislation defines an "unfair real estate service agreement" as a contract that attempts to run with the land, create liens or encumbrances on the property, or be assignable without notifying the property owner. Such agreements are declared void and unenforceable by law. The bill prohibits recording these agreements and imposes criminal penalties for doing so, with a misdemeanor of the third degree. Consumers are granted the right to bring civil actions against real estate service providers, with potential remedies including equitable relief, protection from repayment, and damages. Notably, the damages are set at a minimum of $5,000, or $15,000 for consumers aged 60 and older. The bill also classifies these unfair agreements as deceptive acts under the Unfair Trade Practices and Consumer Protection Law, allowing for additional penalties and legal recourse. Real estate professionals found in violation can face additional damages, including reasonable costs and attorney fees. The act will take effect 60 days after passage, providing a clear timeline for implementation and compliance.

Budget and Finance, Housing and Urban Affairs

https://www.legis.state.pa.us/cfdocs/billinfo/bill_history.cfm?syear=2025&sind=0&body=H&type=B&bn=986