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Updated over 5 years ago on .

User Stats

1,158
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876
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James Mc Ree
  • Rental Property Investor
  • Malvern, PA
876
Votes |
1,158
Posts

PA real estate business shut down

James Mc Ree
  • Rental Property Investor
  • Malvern, PA
Posted

Gov Wolfe of PA issued an order today to shut down all business physical locations that do something other than offer life-sustaining products or services.  It may shut down the entire PA real estate industry.  It says the following types of businesses must close all of their physical locations.  "No" means "close."

https://www.scribd.com/document/452416026/20200319-Life-Sustaining-Business

It appears that "work from home" by phone/computer is OK as the physical business is closed, unless "home" is where the business is located.  That may save the transaction part of the industry.  Some specific types of shut downs related to our interests include:

Construction - Residential & non-residential, finishing contractors and specialty trades (does this mean rehabs can't happen and must stop?)

Real Estate - Offices of real estate brokers/agents, lessors and activities related to real estate (does this stop sales?).

Professional services - Legal services (title/settlement), accounting (taxes, bookkeeping, payroll), architects, services to buildings & dwellings

For some reason, building material supply dealers are allowed to remain open.  I guess the rationale is a homeowner can buy products as they won't convey a virus, but can't hire someone to install the products (maybe?).  It is unclear from the order if the installer is blocked from working anywhere in PA or just has to shut down a central business location.  Just shutting down central locations is impactful, but shutting down all real estate-related work seems beyond draconian to me.  It appears to mean a homeowner can't hire a lawn guy! (service to dwelling)

My experience is PA still requires wet signatures for residential transactions.  It looks like settlement would violate the order as it has to be done in a business' physical location.  Maybe it can be done inside the actual property being transacted if that is allowed.

You might want to reconsider your plans if you are buying/selling real estate in PA in the near future.  It's closed for business and literally just running "life support."  Enforcement begins Saturday.