Best of the Legal Hotline: Junk Drawer Edition

Yesterday’s PAR Legal Hotline webinar focused on helping members navigate common questions about PAR’s “junk drawer” of legal topics that members may need to brush up on as market conditions are shifting. 

Hotline Procedures Refresher 

Chief Legal Officer Hank Lerner began with a review of PAR’s Legal Hotline procedures, reminding members that the hotline is a benefit reserved only for PAR members, and reviewing proper procedures for leaving a question. 

Do Not Call Law Changes 

New PAR Associate Counsel Taylor Baublitz reviewed recent changes to Pennsylvania’s Do Not Call law, effective Oct. 18. Members marketing real estate by phone or text should note that marketing texts are now regulated like calls and may require prior consent. They were also reminded to comply with both state and federal do-not-call rules, each with specific requirements.  

Property Inspection Contingency 

Later, Baublitz discussed the property inspection contingency in the Agreements of Sale. She emphasized that inspections are not automatic under the PAR Agreement of Sale; buyers must choose which inspections to perform or risk losing rights and negotiation power. This section also covered misconceptions about “informational only” inspections, inspection reports, seller disclosure obligations and the difference between inspection contingencies and pre-settlement walkthroughs.  

Leased Items and Personal Property Provisions 

Associate Counsel Kacy Clouser highlighted reviewing leased items and personal property provisions in agreements. Although agents may rely on MLS information, the terms of Agreement of Sale prevail when it comes to questions of what property is included or excluded. Questions about leased or financed items, such as solar panels, should be resolved before signing to clarify their status at settlement.  

Escrow Deposits 

The webinar also discussed escrow deposits, with Clouser explaining the difference between deposits held by brokers, governed by the Real Estate Licensing and Registration Act and those held by third parties, such as title companies or attorneys. Because non-broker escrow holders are not bound by the same laws, parties should consider a separate escrow agreement to clarify when funds can be released. 

Resale Rules for Condominiums and HOAs 

Assistant General Counsel Desirée Brougher examined resale rules for properties located in condominiums and homeowners associations under Pennsylvania law. These laws grant buyers rights they cannot waive, such as access to resale information and, in some cases, the right to cancel the contract after reviewing those documents. 

Mortgage Contingency Provisions 

Brougher also went on to discuss mortgage contingency provisions, including the State Real Estate Commission rules and the interplay between a buyer’s financing obligations and the seller’s rights if financing terms are not met. Members were reminded that buyers should act in good faith during financing, including adherence to contractual interest-rate lock requirements. 

Service, Assistance and Emotional Support Animals 

The webinar concluded with a review of current issues involving service, assistance and emotional support animals. Lerner discussed the interplay among federal, state and local laws, recent changes to agency guidance and the importance of engaging in an appropriate interactive process when accommodation requests arise. Given the evolving nature of this area of law, brokers, landlords and licensees were encouraged to seek legal guidance when questions arise.  

The session reinforced a familiar theme from many PAR Legal Hotline calls: seemingly simple questions often involve multiple layers of law, regulation and practical considerations. Understanding those moving parts can help members identify potential issues early and provide better advice to their clients throughout the transaction process. 

View More Legal Resources 

Learn more about these topics by watching the webinar recording and viewing the referenced resources on PAR’s website.