Buyer Agency in Pennsylvania: What It Is and How It Works (2025 Edition)

A Plain-English Guide for First-Time Buyers Navigating the New Rules

Buyer's Agency Protects Pennsylvania Home Buyers

Buyer's Agency

In a nutshell, Buyer's Agency Agreements are a contract you sign with a Real Estate Agent to represent you during the buying process where they have a fiduciary duty to serve your best interests from looking at home through closing. The agreement also outlines how that Agent will be paid for their services and what services you are getting.

These agreements are exclusive and time-based in most cases, meaning you cannot use another agent until that time expires. Most agreement are 6 or 12 months, but some Agent's may do shorter agreements or what it called a Single Property Agreement to tour you one specific home. Because Agent's don't get paid unless you close on a home, you should expect a 6-month commitment which is why before you choose an Agent, you should ensure you interview them thoroughly to make sure they're a good fit, and vice versa. You'll be in the weeds together a lot during the process, and a relationship of mutual trust and respect is critical.

In Pennsylvania, you must have an Agent, which requires a Buyer's Agency Agreement, to even look at homes. Yup. You read that correctly, but it protects you as you'll read more about shortly.

Let’s Clear Up a Common — and Risky — Misunderstanding

You spot your dream home online and click the “Contact Agent” button. An agent calls you back, schedules a showing, and seems happy to help. But here’s what most people don’t know: That agent represents the seller.

Their job is to get the seller the highest price and best terms — not to help you get a better deal. You could unwittingly reveal things like how much you're approved for (and that agent will work to drive up the sales price armed with that info).

If you proceed without hiring your own agent, you could end up in one of two situations:

1. Unrepresented — no one is legally advocating for your interests

2. In a dual agency — where the same agent represents both you and the seller

I personally find it strange that sites like Homes.com, Realtor.com, Zillow, et. al., all direct consumers to the listing agents. If this is your first time buying, you would have no idea that's a problematic situation. Sure, they can answer questions about the property for you, but they're not likely to be telling you anything not already in the listing. As they say in that Galaxy Far, Far Away.... It's a trap!

Wait, What’s Dual Agency?

Dual agency happens when one agent (or sometimes one brokerage) tries to represent both the buyer and the seller in the same transaction. It’s legal in Pennsylvania — but only if both parties consent in writing.

However, many real estate professionals consider dual agency ethically questionable, if not outright unfair. Why?

Because it puts the agent in a situation where they can’t fully advocate for either party. Their ability to:

• Advise you on offer price

• Negotiate terms in your favor

• Disclose everything they know is limited by law. Their duty becomes neutrality — not loyalty. While it can be done ethically, you better really trust your agent or have a set of circumstances where this would make sense which are few. One example: Your parents agree to sell you their house at a fair price and the Agent is just really facilitating the transaction.

That’s why a Buyer Agency Agreement matters: it gives you a dedicated advocate in your corner who works solely for you.

What Is Buyer Agency?

Buyer agency is a legal relationship between you and a real estate agent who agrees to represent your interests in a home purchase. This relationship is formalized in writing, in what’s called a Buyer Agency Agreement.

Real Estate Agent Explains Buyer's Agency To A Prospective Client

Once that agreement is signed, your agent owes you a full range of fiduciary duties, including:

• Loyalty – putting your interests first

• Confidentiality – keeping your personal and financial info private

• Disclosure – pointing out red flags and relevant information

• Diligence – helping you act quickly and correctly

• Obedience – following your lawful instructions

• Accounting – tracking escrow and financial items

Without this agreement, the agent you’re speaking to might legally be unable to give you advice, negotiate for you, or even tell you a home is overpriced.

Representation Options in Pennsylvania

Under state law, there are several types of agency relationships. Let’s break them down:

Buyer Agent

This is the gold standard. A buyer agent works exclusively for you and is obligated to protect your best interests at every step.

Seller Agent (Listing Agent)

They work for the seller and have one job: help the seller get the most money and best terms. They are not obligated to help or advise you.

Dual Agent

This is when one agent represents both the buyer and the seller. It’s legal, but risky. The agent must remain neutral — which means they can’t fully advocate for you. Think of it as having a referee instead of a coach.

Transaction Licensee

Not really an advocate. These agents help facilitate paperwork but don’t represent anyone. They cannot give advice, negotiate, or help you strategize. Think back to that early example where your parent's sell you their house.

Does Buyer Agency Cost Me Money?

Yes — maybe — but it’s more flexible than ever.

Thanks to recent changes following the 2024 NAR settlement, buyers and agents must now agree up front on how the buyer agent will be paid. This is all spelled out in your Buyer Agency Agreement.

Here’s how it typically works in Pennsylvania today:

• You and your agent agree on a compensation rate.

• That commission can be:

  • Paid by you directly (through your closing)

  • Paid by the seller, if they’re offering buyer agent compensation in the listing

  • Negotiated into the purchase offer

In other words:

You are responsible for making sure your agent gets paid — but how it’s paid is flexible and transparent.

Your agent should walk you through these options before you start touring homes. There should be no surprises at closing or during the process.

What’s in a Buyer Agency Agreement?

This isn’t just paperwork. It’s a contract that gives you rights and protections. It outlines:

• How long the agent will represent you

• What services the agent will provide

• The compensation structure

• What happens if you buy a home on your own, or with another agent

• Whether dual agency is permitted (you can say no!)

You can also limit or customize the agreement — for example, to just a few weeks, or just a certain area.

Why You Shouldn’t “Go It Alone”

Buying a home is a major financial and emotional decision. Having your own buyer agent means:

• You get guidance on pricing and market value

• You’ll be alerted to issues with the home or location

• Your offer will be stronger and more strategic

• You’ll have someone navigating inspections, repairs, timelines, and more

• You won’t be alone when things (inevitably) get complicated

Trying to navigate this with a listing agent — or worse, with no one in your corner — puts you at a huge disadvantage.

Can I Work With More Than One Agent?

Not once you sign a Buyer Agency Agreement — at least not without ending the first one which would require mutual agreement. This is why it's so important to take time to interview your Agent before you sign to make sure they're a good fit.

Buyer agency is an exclusive relationship. That means your agent is committing their time and resources to helping you, and in return, you agree to work with them during the term of the agreement. Your Agent receives no compensation for their time if you don't close on a home. No you did not read that wrong. Your Agent gets paid Zero, Zilch, Nadda if you do not close on a home. This is an incentive for your Agent to be working hard for you... though...

If you’re unhappy or your needs change, your agent should be willing to discuss releasing or modifying the agreement — but you can't "shop around" while under contract and could risk having to pay a commission to two different Agent's if you sign a second Agreement. That money would be better served upgrading something in your home, furniture, or dare I say... a trip to HomeGoods? (But only AFTER your closing. No spending before you close or your financing could be yanked. Then HomeGoods... or... Ikea anyone? Peanut likes HomeGoods because they let him shop.)

Keep in mind, if your Agent is not performing, it would be unreasonable to be stuck with them. If you're unsatisfied with the level of service being provided, contact their broker. They may let you out of it or at the very least, get you a different Agent who will perform for you until the contract is up.

Final Thoughts

In today’s real estate market, the rules have changed — but the need for good representation hasn’t.

You don’t want to be on your own in a process filled with negotiations, deadlines, legal documents, and major financial risks. And you don’t want an agent who’s trying to serve two masters.

A dedicated buyer’s agent is your:

• Advocate

• Educator

• Negotiator

• Guide

And that all starts with a Buyer Agency Agreement — which puts your interests first, where they belong.

Still have questions about buyer agency? Want to talk about what it looks like to work together under the new rules? I’m happy to walk you through it, no pressure — just real answers, real transparency, and real support. Plus Peanut.

Craig & Peanut: The Pawperty Pros

We believe everyone deserves a place to call home. That's why for every home we close, we provide funding to rescue an at-risk shelter animal so they can find their furever home through Paws Across Pittsburgh.