HB 600 — An Act providing for regulation of housing wholesalers.

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
 1   Providing for regulation of housing wholesalers.
 2      The General Assembly of the Commonwealth of Pennsylvania
 3   hereby enacts as follows:
 4   Section 1.   Short title.
 5      This act shall be known and may be cited as the Residential
 6   Housing Wholesalers Registration Act.
 7   Section 2.   Definitions.
 8      The following words and phrases when used in this act shall
 9   have the meanings given to them in this section unless the
10   context clearly indicates otherwise:
11      "Applicant."    An individual applying for an initial license.
12      "Commission."    The State Real Estate Commission established
13   under the act of February 19, 1980 (P.L.15, No.9), known as the
14   Real Estate Licensing and Registration Act.
15      "Homeowner."    The record owner or equitable owner of a
16   residential property.
 1      "License."      A residential property wholesaler license
 2   required under section 3.
 3      "List."   The do-not-solicit list created under section 5.
 4      "Renewal."      A renewal of a license that has not lapsed or
 5   expired.
 6      "Residential property."      A property legally used or held out
 7   for individuals to live in, whether the property is occupied by
 8   the owners of the property, rented or vacant.
 9      "Residential property wholesaler."      A person or entity that
10   is in the business of purchasing or soliciting for purchase
11   residential properties not for use as the person or entity's
12   residence. The term does not include:
13          (1)   A public official or employee who acts as a
14      residential property wholesaler in the course of the official
15      or employee's official duties.
16          (2)   A person or entity that purchases residential
17      properties and substantially improves those properties for
18      the purpose of resale.
19          (3)   Any of the following licensed professionals when
20      acting within the scope of a licensed practice area:
21                (i)    An attorney licensed to practice law in this
22          Commonwealth.
23                (ii)    A person licensed by the Pennsylvania Real
24          Estate Commission under the Real Estate Licensing and
25          Registration Act.
26      "Solicit."      To advertise the accomplishments or abilities of
27   a residential property wholesaler, request that a homeowner list
28   the residential property owned by the homeowner for sale or
29   offer to purchase a homeowner's residential property through
30   mail, oral communication or electronic communication.

20250HB0600PN0608                     - 2 -
 1   Section 3.     License required.
 2      (a)   License required.--A person or entity may not act as a
 3   residential property wholesaler unless that person or entity
 4   possesses a valid license.
 5      (b)   License issuance.--The following shall apply to licenses
 6   under this act:
 7            (1)   Applications for licenses and renewals shall be
 8      filed on forms developed and provided by the commission.
 9            (2)   Licenses and renewals shall be issued in accordance
10      with regulations, which shall be promulgated by the
11      commission.
12            (3)   Licenses and renewals shall be valid for one year.
13            (4)   All application and renewal forms must include:
14                  (i)    A nonrefundable application fee of $200.
15                  (ii)    Proof that the applicant possesses insurance,
16            in a type and amount as the commission shall require.
17                  (iii)    The name and address of an applicant or, if
18            the applicant is not a natural person, the name and
19            address of a responsible natural person.
20                  (iv)    Each Pennsylvania corporation, including a
21            limited liability corporation, in which the applicant has
22            an equity interest, regardless of whether the applicant
23            has a direct equity interest or the applicant's equity
24            interest is held through one or more tiers of a corporate
25            structure, including a parent-subsidiary structure.
26      (c)   Criminal history record search required.--An applicant
27   may only be issued a license if, after a criminal history record
28   search of the applicant has been performed by the commission,
29   the commission has determined that the applicant has not, within
30   the past six years, been convicted of a crime of fraud,

20250HB0600PN0608                       - 3 -
 1   dishonesty, breach of trust or deceit or for violating the act
 2   of March 17, 1978 (P.L.15, No.9), known as the Agricultural
 3   Liming Materials Act.
 4      (d)   Changed information.--An applicant or licensee shall
 5   notify the commission in writing within 72 hours of any changes
 6   in the information contained in or submitted with the
 7   application.
 8   Section 4.     Disclosure required.
 9      (a)   Disclosures.--A licensee must provide a homeowner with a
10   disclosure at least three days before presenting an offer to
11   purchase a homeowner's residential property. The disclosure must
12   do all of the following:
13            (1)   Inform the homeowner of how to access resources that
14      assess the fair value of residential properties, including
15      any private real estate assessment tools as may be identified
16      by the commission by regulation.
17            (2)   Inform the homeowner of the seller's ability to do
18      all of the following:
19                  (i)    Hire a real estate agent.
20                  (ii)    Seek legal counsel.
21                  (iii)    Identify any other resources deemed
22            appropriate by the commission.
23      (b)   Signature required.--The residential property wholesaler
24   shall retain copies of each disclosure signed by the homeowner
25   as proof of providing the disclosure to the homeowner.
26   Section 5.     Do-not-solicit list.
27      (a)   Creation.--The commission shall create and maintain a
28   public list of real property owners who have expressed a desire
29   to not be solicited to sell or rent the property owner's real
30   property in accordance with the following:

20250HB0600PN0608                       - 4 -
 1            (1)   A real property owner who appears on the list may
 2      request in writing that the commission remove the real
 3      property owner's name from the list.
 4            (2)   The commission shall remove the real property
 5      owner's name from the list within 30 days of the request.
 6      (b)   Inclusion on list.--The inclusion on the list of any
 7   real property owner shall be deemed a desire not to sell or rent
 8   the homeowner's real property and a desire not to be solicited.
 9   Section 6.     Unlawful actions.
10      (a)   Solicitation.--It shall be unlawful for a licensee to
11   solicit real property from a homeowner on the list.
12      (b)   Statements.--A licensee or applicant may not, in the
13   course of soliciting residential property, do any of the
14   following:
15            (1)   Knowingly make a material misrepresentation, false
16      promise or untruthful advertisement or engage in conduct
17      which demonstrates bad faith, dishonesty, untrustworthiness
18      or incompetency.
19            (2)   Knowingly give false or misleading information when
20      completing a license application or when providing changes of
21      information to the commission.
22      (c)   Refusal or revocation of license.--A history of
23   violation of the prohibited conduct listed in this section shall
24   be cause for refusal or revocation of a license or renewal.
25   Section 7.     Enforcement.
26      (a)   Unlicensed residential property wholesalers.--An
27   agreement of sale entered into by a residential property
28   wholesaler who is unlicensed at the time of the solicitation may
29   be rescinded at any time prior to the transfer of the title to
30   the homeowner's property at the sole option of the homeowner. A

20250HB0600PN0608                       - 5 -
 1   homeowner may bring a civil action in a court with competent
 2   jurisdiction against the residential property wholesaler.
 3      (b)     Other violations.--A violation of any other provision of
 4   this act shall be considered a violation of the act of February
 5   19, 1980 (P.L.15, No.9), known as the Real Estate Licensing and
 6   Registration Act, and shall be subject to any penalty contained
 7   therein.
 8   Section 8.    Applicability.
 9      This act shall not apply to cities of the first class.
10   Section 9.    Effective date.
11      This act shall take effect in 60 days.




20250HB0600PN0608                    - 6 -