New consumer protection law increases damages for real estate violations

Pennsylvania's House Bill 986 aims to bolster consumer protections in real estate transactions, particularly for vulnerable populations. Introduced on March 20, 2025, the bill proposes significant changes to how damages are calculated for consumers who suffer losses due to unfair practices in realty agreements.

At the heart of the bill is a provision that sets a minimum damage threshold of $5,000 for consumers, escalating to $15,000 for those aged 60 and older. This move is designed to provide greater financial recourse for older adults, who may be more susceptible to exploitation in real estate dealings. Additionally, the bill mandates that reasonable attorney fees and litigation costs incurred by consumers be covered, ensuring that legal representation is accessible.

The legislation also emphasizes the unenforceability of realty agreements that violate its provisions, categorizing such violations as unfair competition and deceptive practices under existing consumer protection laws. This dual approach not only seeks to deter unethical behavior among real estate professionals but also reinforces the rights of consumers to seek redress.

Debate surrounding House Bill 986 has highlighted concerns from real estate professionals about the potential for increased litigation and the financial burden it may impose on the industry. Critics argue that the bill could lead to frivolous lawsuits, while supporters maintain that it is a necessary step to protect consumers from predatory practices.

As the bill moves through the legislative process, its implications could reshape the landscape of real estate transactions in Pennsylvania, particularly for older adults. With an effective date set for 60 days post-passage, stakeholders are closely monitoring developments, anticipating both challenges and opportunities as the bill seeks to enhance consumer rights in the real estate market.