How Gov. Wolf’s New Restrictions Impact Real Estate
Gov. Tom Wolf has begun to roll back certain business opening rules yesterday based on an increase in COVID-19 cases nationally and here in Pennsylvania.
The part of the governor’s order generating the most member questions reads as follows:
“Unless not possible, all businesses are required to conduct their operations in whole or in part remotely through individual teleworking of their employees in the jurisdiction or jurisdictions in which they do business. Where telework is not possible, employees may conduct in-person business operations, provided that the businesses fully comply with all substantive aspects of” the various orders that are already in place.
So what does this mean for Realtors®?
Nothing in the newest orders directly address real estate practice, though the orders and underlying testing trends do suggest some things that Realtors® should keep in mind in your daily practice so real estate avoids the fate of restaurants and bars. Here are some answers to questions we’ve already received:
Q. Has real estate been deemed as essential/life-sustaining?
Honestly, that’s not the right question to ask at this point. While that concept was the starting point for the administration’s original business closure orders, it’s clear that they are taking business categories on a case-by-case at the moment. The most obvious example here is that restaurants are listed as life-sustaining, but their ability to operate is being severely restricted. Real estate and construction are not considered life-sustaining, but are mostly open.
So, to answer directly, no – real estate has not been moved into the category of “life-sustaining” businesses. But the administration is clear that business segments are being handled individually, so real estate practice will rise or fall on how well you are able to protect the health of yourself and your consumers, not that arbitrary categorization.
Q. Are brokers required to close their office and only allow remote work?
If there are activities that must be done in-person, you can keep doing them in-person. And realistically, in-person activities can be maintained for those things that are just waaaay better when they’re in person. But for things that don’t need in-person contact, brokers and agents should go back to remote work.
For example, even though remote notary is legal, we know that many lenders won’t accept electronic notarization, or there are areas where it’s almost impossible to make it happen. So, in-person closings shouldn’t be affected.
Similarly, there is no effective substitute to a prospective buyer actually walking through a property before purchasing it. But while in-person walkthroughs can be maintained because of their transactional value, brokers and agents should tighten down how often they happen and be sure to re-emphasize virtual showings and similar marketing techniques.
Q. Can we still do open houses?
The order does not directly address open houses, but does state that in-person activity should only occur where it is “not possible” to do things remotely. Brokers and agents will have to make their own decisions, but the main question will become whether there are other effective ways to market the property virtually, or simply whether there are less risky ways to conduct in-person walkthroughs (e.g., expanding individual appointments rather than having an open house).
Q. Will there be additional restrictions on real estate?
Well…that depends.
The new rounds of restrictions in Pennsylvania and other states are based on data showing the types of places and behaviors that are generating new infections. The best way to stay off that list is to keep following the rules that are in place. At this point, we’re not aware that real estate has been identified as an major source of infections in Pennsylvania or other states, so let’s just keep it that way.
PAR will be maintaining our best practice recommendations as-is. These mix the minimum state requirements with some next-level precautions that should help minimize infection risks. Keep in-person activities to a minimum. Wear masks. Wipe off the things that get touched. Just generally be a solid citizen and look out for your health and that of your clients.
Of course, if anything changes PAR will let you know. Continue to use our coronavirus resource page to answer your questions, and call the PAR Legal Hotline if you have issues not addressed in our FAQ.
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I appreciate it if I’m kept updated on home rules concerning realestate. Also has the licensing been extended or the schooling been extended? Due to call dead I have not been able to go to continuing cat therefore I have not been able to renew my license please advise
Hi Karen,
Licensing renewal and CE requirements have been extended to Aug. 29, 2020.
Common sense prevails. If we follow the re-opening Guidelines that were in place until we went green, we should have no problem staying open. That is if the Governor uses common sense and a spirit of fairness to businesses. If agents have attitudes of “he cannot tell me what to do” we may end up back in he RED again. At this point it is not whether I agree with the Governor, it is a matter of doing the best to protect me, my family, my clients and anyone else, from the virus. Wearing a mask is not fun, but to MOST people it is merely an inconvenience. I would prefer to be inconvenienced rather than my business closed down and struggling to make a living.
Excellent advice re. Open Houses…..they’re really too risky & not necessary to sell a property (we have great photos & virtual tours to encourage buyers to request an appt).
Thanks for the update Hank.
Thank you so much for the update! Again, we need to use common sense!
PAR has done an excellent job amid all of this confusion. It was a sad day when Wolf “allowed” us to resume business while almost simultaneously vetoing the bill that would have made us essential. Maybe now we can see where we really stand with another looming threat of possible shutdowns. That’s the true takeaway…giving us a nod to move forward (like it was some great honor) but keeping the magic wand to shut us down without warning or input.
I renewed both my PA AND DE licenses with online courses from the CESHOP.com. Excellent courses, reasonably priced.
Hank, thank you as usual you are on top of it and keep us informed
Thanks for the minimal whining. Let’s keep it that way please.
It is my understanding under the current guidance that no more than three people are allowed in a property and social distancing must be practiced. Based upon this, there would be no need to directly address open houses. Did I miss something in the initial guidance?
Open houses are not prohibited in green phase counties, though there are still some issues that have to be worked through. https://www.parealtors.org/coronavirus/#can-i-still-hold-open-house-events
Thanks for the update Hank. Good common sense people!!
Hank & PAR have done a very good job working through the series of issues due to COVID-19. It is not easy dealing with legislative issues, or the Governor.
Be smart from a liability and more import safety standpoint right now. Just avoid ooen houses.
Are agents able to attend settlements?
Only if necessary.
Common sense is the key….wear masks!
If my company requires agents to perform “office/desk duty” at an office location, is this still permitted? Or, is this something we should be doing remotely?
Per the new order, in-person work is allowed where it is “not possible” to do the same work remotely. A broker would have to analyze whether this work can only be done effectively in the office, or if there’s a reasonable way to do it remotely.
Not a problem for me but I have had to really watch my showings as still some Realtors and potential buyers have determined not to follow the rules of myself and my clients which is masks on all parties and no more than 3 in the house.. Also setting aside 45 minutes for a showing an no over lapping of appointments to show. Still, I have had a couple of agents try to beat the system and ask for 15 minute showings just prior to another agents showings and I am disapproving those. Common sense will keep us all open for business.
Thank you Hank
I am still having agents and their clients show up without masks. If they continue to buck the safety requests ,I ‘m certain those will be the same agents who will complain the loudest and blame the governor if a shut down occurs
Thank you, PAR for proactively publishing this guidance.
Thank you!
Thank you so much for being on top of this situation and keeping us up to date on the latest information!