Real Estate Professionals E&O Insurance in Pennsylvania

Pennsylvania at a glance

Primary regulator

Pennsylvania State Real Estate Commission

Enforces the Real Estate Licensing and Registration Act, 63 P.S. §455.101 et seq.

Disclosure form

Consumer Notice delivered at the initial interview

Signed or refused acknowledgment must be retained for six months per 49 Pa. Code §35.336.

Seller disclosure statute

Real Estate Seller Disclosure Law, 68 Pa.C.S. §§7301-7315

Requires a completed or refused disclosure statement before an agreement of sale is signed.

Related law

Home Inspection Law requires inspector liability insurance

Brokers who refer inspectors should confirm the inspector's coverage under 68 Pa.C.S. §7509.

The Consumer Notice at the initial interview

49 Pa. Code §35.336 requires licensees to deliver the Consumer Notice at the initial interview, retain the signed or refused acknowledgment for six months, and provide the consumer a full copy of the disclosure summary describing seller agent, buyer agent, dual agent, and designated agent roles. A firm that treats this as paperwork handled after showings begin, rather than at the true first interview, creates a timing gap that a Commission complaint or a plaintiff's attorney will point to directly.

Seller Disclosure Law duties that run through the licensee

Under 68 Pa.C.S. §7304 and the Commission's regulations at 49 Pa. Code §35.284a, a listing licensee must advise sellers of their duty to complete a property disclosure statement, provide sellers with a compliant disclosure form, and deliver the completed or refused statement to the buyer before an agreement of sale is signed; buyer's agents must confirm the buyer actually received it. Licensees separately must disclose in writing any material defect they actually know about that is not otherwise disclosed, an independent duty that survives even if the seller's own disclosure statement is incomplete or marked refused.

Home Inspection Law liability insurance requirement

Pennsylvania's companion Home Inspection Law, in the same title, requires inspectors to carry liability insurance and imposes its own duty-of-care and consumer-remedy structure, meaning brokers who refer buyers to inspectors should confirm the inspector's compliance rather than treat the referral as risk-free. A referral to an uninsured or noncompliant inspector can loop the referring brokerage back into a claim when a missed defect surfaces after closing.

Business-entity licensing and insurance for LLCs and partnerships

Pennsylvania's licensing framework for business entities under 254 CMR-equivalent Commission rules separately addresses insurance requirements for general and limited partnerships versus corporations and LLCs seeking a broker license, so the entity's chosen structure affects its own compliance obligations. Firms restructuring from a partnership to an LLC, or adding a new branch entity, need to revisit these entity-specific requirements rather than assuming the original license structure still fits.

Who we write this for in Pennsylvania

Real estate E&O FAQs for Pennsylvania