Pennsylvania Bill Would Amend State Licensing Law
Proposed changes to the state Real Estate Licensing and Registration Act will enhance the level of service for consumers. House Bill 863 was recently introduced by Rep. Greg Rothman, who is also a Realtor®. The recommendations are the result of a Pennsylvania Association of Realtors® task force.
House Bill 863 will require an additional 15 hours for salesperson pre-licensure education, allowing for a grandfathering process for those already enrolled in classes, and a high school diploma or equivalent. “PAR believes increasing the pre-licensure education requirement will help raise the level of competency of new licensees, helping them to better serve their clients and giving them a greater understanding of real estate transactions,” said PAR President Kathy McQuilkin.
The additional 15 hours will raise the required education from 60 hours to 75 hours. Throughout the U.S., the average pre-licensure requirement is 79 hours and 26 states already require more than 60 hours of pre-licensure education.
The legislation will require all courses for salesperson licenses be completed within 5 years prior to the date of taking and passing the exam, allowing for a grandfathering process for those already enrolled in classes.
“Due to the increasingly challenging and changing real estate market, PAR believes it would be more advantageous for both the new real estate licensee and the consumer if courses were required to be completed in a shorter period of time,” McQuilkin added.
In addition, the bill will allow licensees to conduct Broker Price Opinions with requirements. PAR recommends amending RELRA to allow BPOs to help the real estate market react quickly and in a cost-effective manner. BPOs provide critical information for decision-making and have been widely adopted as a tool in the asset management industry due to their timeliness, cost effectiveness and accuracy. According to industry estimates, more than 10 million BPOs are performed annually across the country and are endorsed by the FDIC and the Federal Reserve Board.