Laurel Highlands Today

HARRISBURG – The Senate has approved legislation sponsored by Senators Pat Stefano (R-32) and Greg Rothman (R-34) aimed at protecting homebuyers by requiring individuals involved in residential wholesaling to obtain a real estate salesperson or broker license under the Real Estate Licensing and Registration Act.

“Residential wholesaling” refers to the practice where a wholesaler, acting as an intermediary between the seller and buyer, enters into a purchase contract from a seller and subsequently transfers that contract to a buyer without the seller’s knowledge or consent. This often involves distressed properties sold below fair market value, allowing wholesalers to make substantial profits.

Senator Stefano emphasized the need for proper licensing in these transactions: “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.”

Senate Bill 1173 mandates that consumers be informed if they are participating in a wholesale transaction through appropriate disclosures. It also ensures their right to seek an appraisal and cancel the contract.

“Residential wholesaling of real estate has become prevalent in recent years, often at the expense of the most vulnerable,” Senator Rothman stated. “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