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Bill

HB 986

An Act providing for transparency in realty agreements; prohibiting unfair real estate service agreements; and imposing penalties.

2025-2026 Regular Session Introduced by Morgan Cephas and 11 co-sponsors

Pennsylvania bill mandates transparent real estate service disclosures and bans unfair agreement practices, with penalties for violations protecting consumer interests in transactions.

Referred to Urban Affairs & Housing
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Bill Summary · HB 986

Legislative bill overview

HB 986 requires real estate service providers in Pennsylvania to disclose terms transparently and prohibits unfair or deceptive practices in realty agreements. The bill establishes penalties for violations and enforcement mechanisms to protect consumers entering real estate transactions.

Why is this important

Real estate transactions represent major financial commitments for households, and information asymmetries between service providers and consumers can lead to hidden fees, unclear terms, or exploitative practices. This bill aims to level the playing field by mandating disclosure standards and creating recourse for consumers harmed by unfair agreements.

Potential points of contention

  • Definition scope: The bill's specific definition of "unfair real estate service agreements" and which service providers are covered (agents, brokers, title companies, lenders) may create ambiguity or unintended exclusions
  • Compliance costs: Real estate industry stakeholders may argue that enhanced disclosure requirements and documentation standards impose administrative burdens and increase transaction costs passed to consumers
  • Penalty enforcement: Questions remain about who enforces violations (state attorney general, consumers through private lawsuits, regulatory boards) and whether penalties are sufficient deterrents or overly punitive

Compiled from official sources — confirm details with the bill’s official record.

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