Megan's Law: What has to be disclosed?

Hotline callers ask if they have to disclose to a buyer that someone in the neighborhood is “on Megan’s list.” 

• Under the Real Estate Seller’s Disclosure Law, a seller “shall disclose to the buyer any material defects with the property known to the seller. . . .” That and an adjudicated sexual predator lives in the vicinity of the property is not, in and of itself, a defect or condition “of the property.” It does not have to be disclosed.
• Under Megan’s Law, there is a specific section that provides that real estate licensees have no obligation under that Law to report the presence of an adjudicated sexual predator.
• No Pennsylvania law imposes an affirmative obligation on a real estate licensee to determine the presence of an adjudicated sexual predator in a neighborhood. 
• A real estate licensee and a consumer can enter into a contract that creates an obligation on the licensee to determine the presence of an adjudicated sexual predator. 
• A buyer agent may be negligent in failing to tell a buyer to check the Megan’s Law website to determine if there are any adjudicated sexual predators in the surrounding properties. While there is no case law in Pennsylvania, it is conceivable that a buyer agent would include in his/her duties offering this advice to buyers. A real estate licensee is negligent when failing to conform to the standards of a reasonably prudent real estate licensee. Would the reasonably prudent buyer agent offer clients the means by which they could determine whether a predator lives nearby?

Buyer’s agents should be aware of the notice on the back of page one of the Agreement of Sale. There is a Notice Regarding Convicted Sex Offenders (“Megan’s Law”) that recommends buyers contact the local or State Police if they are interested in learning if there are any registered sex offenders in the neighborhood. When in doubt about what to do, check with your broker or the PAR Legal Hotline.