(Credit: Staff Sgt. Teresa J. Cleveland / U.S. Air Force)
A bill that promises to protect seniors and other vulnerable cash-strapped homeowners from unfair realty practices moved one step closer to the governor’s desk last week.
House Bill 657, the Unfair Real Estate Service Agreements Act, passed out of the Senate Urban Affairs and Housing Committe, and awaits final consideration by the upper chamber. It’s just one of dozens of bills nearing the finish line before the General Assembly finalizes a spending plan and breaks for the summer in July.
As such, the committee spent no time discussing the proposal before sending it to the floor. In a co-sponsorship memo for the bill, Philadelphia Democratic Reps. Donna Bullock and Morgan Cephas said “unsavory” real estate companies “prey on unsuspecting homeowners,” particularly in the state’s most vulnerable neighborhoods.
In some cases, companies pay older homeowners cash to sign agreements that lock them into relationships specific real estate agencies. The contracts can go on for years, and sometimes decades, and come with steep penalties and legal action if owners, or their heirs, use a different agency.
HB 657 would give seniors the ability to fight back, opening the door for them to make civil claims against these deceptive companies. Victims would be eligible to receive either damages or $5,000, whichever is greater. Victims over 60 see this number rise to $15,000, sending a clear warning to would-be scammers against targeting seniors.
The law also comes with a misdemeanor charge for those found engaging in these practices and a guarantee that unfair contracts will be unenforceable throughout the state.
“Pennsylvania homeowners deserve to know their home is protected from those attempting to misappropriate their earned home equity,” say Bullock and Cephas.
The legislation is backed by AARP and mirrors laws passed in dozens of other states. The group worked with the American Land Title Association to draft legislation that would serve as a model for states to adopt.
“For many older adults, their home is their most important asset and the cornerstone of their financial stability,” said Jerry Muhl, AARP Advocacy Director in Louisiana where a similar bill was passed. “They can also be especially vulnerable to unfair and abusive practices."
