Pennsylvania HB 600: An Act providing for regulation of housing wholesalers.

Bill Text

PRINTER'S NO. 608
THE GENERAL ASSEMBLY OF PENNSYLVANIA
HOUSE BILL
No. 600
Session of
2025
INTRODUCED BY NEILSON, SANCHEZ, PIELLI, HILL-EVANS, GIRAL,
CIRESI, HADDOCK, KHAN, McANDREW, FIEDLER AND GREEN,
FEBRUARY 12, 2025
REFERRED TO COMMITTEE ON PROFESSIONAL LICENSURE,
FEBRUARY 12, 2025
AN ACT
Providing for regulation of housing wholesalers.
The General Assembly of the Commonwealth of Pennsylvania
hereby enacts as follows:
Section 1. Short title.
This act shall be known and may be cited as the Residential
Housing Wholesalers Registration Act.
Section 2. Definitions.
The following words and phrases when used in this act shall
have the meanings given to them in this section unless the
context clearly indicates otherwise:
"Applicant." An individual applying for an initial license.
"Commission." The State Real Estate Commission established
under the act of February 19, 1980 (P.L.15, No.9), known as the
Real Estate Licensing and Registration Act.
"Homeowner." The record owner or equitable owner of a
residential property.
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"License." A residential property wholesaler license
required under section 3.
"List." The do-not-solicit list created under section 5.
"Renewal." A renewal of a license that has not lapsed or
expired.
"Residential property." A property legally used or held out
for individuals to live in, whether the property is occupied by
the owners of the property, rented or vacant.
"Residential property wholesaler." A person or entity that
is in the business of purchasing or soliciting for purchase
residential properties not for use as the person or entity's
residence. The term does not include:
(1) A public official or employee who acts as a
residential property wholesaler in the course of the official
or employee's official duties.
(2) A person or entity that purchases residential
properties and substantially improves those properties for
the purpose of resale.
(3) Any of the following licensed professionals when
acting within the scope of a licensed practice area:
(i) An attorney licensed to practice law in this
Commonwealth.
(ii) A person licensed by the Pennsylvania Real
Estate Commission under the Real Estate Licensing and
Registration Act.
"Solicit." To advertise the accomplishments or abilities of
a residential property wholesaler, request that a homeowner list
the residential property owned by the homeowner for sale or
offer to purchase a homeowner's residential property through
mail, oral communication or electronic communication.
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Section 3. License required.
(a) License required.--A person or entity may not act as a
residential property wholesaler unless that person or entity
possesses a valid license.
(b) License issuance.--The following shall apply to licenses
under this act:
(1) Applications for licenses and renewals shall be
filed on forms developed and provided by the commission.
(2) Licenses and renewals shall be issued in accordance
with regulations, which shall be promulgated by the
commission.
(3) Licenses and renewals shall be valid for one year.
(4) All application and renewal forms must include:
(i) A nonrefundable application fee of $200.
(ii) Proof that the applicant possesses insurance,
in a type and amount as the commission shall require.
(iii) The name and address of an applicant or, if
the applicant is not a natural person, the name and
address of a responsible natural person.
(iv) Each Pennsylvania corporation, including a
limited liability corporation, in which the applicant has
an equity interest, regardless of whether the applicant
has a direct equity interest or the applicant's equity
interest is held through one or more tiers of a corporate
structure, including a parent-subsidiary structure.
(c) Criminal history record search required.--An applicant
may only be issued a license if, after a criminal history record
search of the applicant has been performed by the commission,
the commission has determined that the applicant has not, within
the past six years, been convicted of a crime of fraud,
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dishonesty, breach of trust or deceit or for violating the act
of March 17, 1978 (P.L.15, No.9), known as the Agricultural
Liming Materials Act.
(d) Changed information.--An applicant or licensee shall
notify the commission in writing within 72 hours of any changes
in the information contained in or submitted with the
application.
Section 4. Disclosure required.
(a) Disclosures.--A licensee must provide a homeowner with a
disclosure at least three days before presenting an offer to
purchase a homeowner's residential property. The disclosure must
do all of the following:
(1) Inform the homeowner of how to access resources that
assess the fair value of residential properties, including
any private real estate assessment tools as may be identi