The Senate has passed legislation aimed at protecting homebuyers and increasing transparency in real estate transactions. Sponsored by Senators Pat Stefano (R-32) and Greg Rothman (R-34), the bill requires individuals conducting residential wholesaling in Pennsylvania to obtain a real estate salesperson or broker license under the Real Estate Licensing and Registration Act.
Residential wholesaling involves intermediaries who enter into purchase contracts with sellers and then transfer those contracts to buyers, often without the seller’s knowledge or consent. This practice typically targets distressed properties sold at prices significantly below market value, allowing wholesalers to make substantial profits.
“Other real estate transactions require the agent to have proper licensing, which safeguards all parties involved. Currently, buyers – who may not even know they’re in a wholesale transaction – don’t have those protections. Real estate is typically the biggest asset in a person’s life and Pennsylvanians deserve to have all relevant information rather than be tricked into a sale,” Stefano stated.
Senate Bill 1173 also mandates that consumers be informed when they are part of a wholesale transaction through proper disclosures. Additionally, it grants them the right to seek an appraisal and cancel the contract if necessary.
“Residential wholesaling of real estate has become prevalent in recent years, often at the expense of the most vulnerable,” Rothman commented. “Senate Bill 1173 would ensure that both homeowners and homebuyers are fully informed of their rights and are equipped to make well-educated decisions.”
The bill will now proceed to the House of Representatives for consideration.
Contact:
Amanda Cuteri, (Stefano’s office), 717-787-7175
Morgan Wagner, (Rothman’s office), 717-773-3266
