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New RELRA Changes Begin Aug 28

  • 24 July 2018
  • Author: Jeff Zirngibl
  • Number of views: 1211
With the recent passage of Act 75 (formerly House Bill 863), brokers and agents need to be aware of two significant changes to the state’s Real Estate Licensing and Registration Act. The act defines BPOs and how they may be conducted in certain circumstances and it increases pre-license education requirements.  

The act goes into effect on Aug. 28, however, in order to fully implement these changes, the State Real Estate Commission will need to create educational, regulatory and policy criteria. Once criteria is established, real estate schools will need to develop new content and have it approved. 

Even though BPOs will be legal as of Aug. 28, brokers and agents should be aware that any licensee who wants to perform a BPO must complete certain prerequisite education requirements and a BPO may only be performed for certain purposes and can't be used for others.

In addition, a licensee must hold a license for at least three years and have completed at least three hours of continuing education on BPO topics during the current or prior license period. The same requirements must be met by a broker or associate broker before being able to sign off on a BPO performed by a salesperson. 

It’s also important to understand that just because BPOs are legal doesn’t mean all brokers allow them in their practices. Like any other licensed service, the ultimate right to set rules belongs to the broker. Brokers have the authority to prohibit BPO practice within an office, or to establish whatever legal limits they wish. 

Those who work with individuals who want to become licensed real estate agents, should be aware that pre-license education requirements have been increased from 60 to 75 hours and new applicants must have a high school diploma or equivalent.

For a detailed FAQ which outlines the RELRA amendments and implications, please visit PAR’s website. If you have questions, please email PAR.

This article was authored by the Pennsylvania Association of REALTORS.

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