On Monday, Gov. Edward Rendell signed Senate Bill 241 into law. The legislation, now known as Act 14 of 2009, will allow parties in a real estate transaction to reach an agreement in writing in advance as to how escrow money will be distributed in the event a dispute occurs.
The Act also provides that associate brokers and salespersons may set up entities such as S corporations or limited liability companies (LLCs) to conduct their real estate business and receive commissions. The Act will require that only a licensee may own an entity that is paid a commission by the broker.
The provisions in Act 14 will become effective on September 3. Nothing in the Act requires real estate licensees to make any changes in their day-to-day practice; PAR will provide additional information prior to its effective date.