Pennsylvania License Law

A Pennsylvania real estate licensee is also a licensed mortgage loan originator. What disclosure must they make when providing both services to the same client?

ANo disclosure is required if both services are offered through the same company
BThey must disclose the dual role and any affiliated business arrangement, and provide an Affiliated Business Arrangement disclosure✓ Correct
CThey must obtain PREC's approval for providing dual services
DThey must disclose only if they earn a commission on both the real estate and mortgage transactions

Explanation

When a licensee provides both real estate and mortgage services, or when a real estate brokerage has an affiliated mortgage company, RESPA requires disclosure of the affiliated business arrangement (AfBA) and estimated charges. Pennsylvania licensees must also comply with RELRA provisions on undisclosed compensation.

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