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    A Pennsylvania Law That Required an STR Manager to Get a Real Estate License Is Unconstitutional, Judge Says

    A Pennsylvania judge has ruled that the state's real estate licensing requirements are unconstitutional in the case of a North Jersey woman who operated short-term vacation rental properties in the Poconos. Commonwealth Court Judge Stacy Wallace declared that licensing mandates for real estate salespeople and brokers are “unreasonable,” “unduly oppressive,” and unnecessary when applied to operator Sally Ladd. She called the Real Estate Licensing and Registration Act's licensing requirement an unconstitutional infringement on Ladd's right to pursue her chosen vocation, comprising an unreasonable means of shielding consumers from fraudulent real estate practices. Wallace has banned Pennsylvania from requiring Ladd to obtain a real estate license if she manages rentals of fewer than 30 days. While the order applies solely to Ladd, other people throughout the state run similar short-term vacation rentals, and the judge said it is legislators' job to determine whether and how these rental managers should be regulated. Institute for Justice attorney Josh Windham called the ruling “a victory for entrepreneurs and common sense.”

    Philadelphia Inquirer (11/04/22) Michelle Bond

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