Midstate real estate broker sues Pennsylvania

May 22, 2026 - 03:23

A real estate broker from the Midstate has taken legal action against the state of Pennsylvania, arguing that a decades-old licensing requirement is both financially burdensome and unnecessary. Kevin Gaughen, a Lemoyne resident, claims he is forced to spend tens of thousands of dollars each year just to comply with what he calls an outdated law.

Gaughen's lawsuit challenges the state's mandate that real estate brokers must hold an active license and pay recurring fees, even if they are not actively conducting business. He argues that this system unfairly penalizes professionals who may be between transactions or working in related fields. According to court documents, Gaughen believes the law violates his constitutional rights by imposing a financial barrier to his chosen profession without providing a clear public benefit.

The broker contends that the current regulatory framework is designed more to generate revenue for the state than to protect consumers. He points to other states that have modernized their licensing requirements, allowing brokers to maintain inactive status without steep annual costs. Pennsylvania's approach, he says, forces brokers to either pay up or lose their ability to work entirely.

The lawsuit seeks to have the law declared unconstitutional and to stop the state from enforcing the licensing fees. A spokesperson for the Pennsylvania Attorney General's office has not yet commented on the case. The outcome could have significant implications for thousands of real estate professionals across the state.