Module 11 of 13 / Pennsylvania rules

Pennsylvania agency and consumer disclosures

Know when to give the Consumer Notice, what creates representation and what each relationship permits.

Outline allocation: 10 of 40 scored questions. Reviewed October 15, 2026.

What you will learn

Distinguish notice from a representation agreement.
Compare seller, buyer, dual, designated and transaction roles.
Apply compensation and confidentiality rules.

The Consumer Notice comes early

For covered sale or purchase interviews in person, provide the required Consumer Notice at the initial interview. If the initial interview is remote, provide the required oral disclosure then and the written notice no later than the earlier of the first in-person meeting or first property showing. Explain the available business relationships before assuming confidentiality or representation. The notice acknowledges disclosure; it is not a contract creating agency. If a consumer refuses to sign the acknowledgment, document the refusal as the rule requires.

Work through an example

A buyer who signs only the Consumer Notice has not thereby signed an exclusive buyer representation agreement.

Remember: Notice explains choices; an agreement establishes the selected business relationship.

Duties to everyone and duties to clients

Pennsylvania licensees owe nonwaivable duties to all consumers, including reasonable professional skill and care, honesty and good faith, timely presentation of documents, and disclosure of known material defects as required. Client relationships add duties specified by law and agreement. Do not confuse confidential negotiating information with a material property defect that must be disclosed. A licensee must disclose conflicts of interest in a timely manner. The source of compensation alone does not establish whom the licensee represents.

Work through an example

A buyer agent paid through a seller-funded arrangement still represents the buyer under the buyer agency agreement.

Remember: Who pays and whom you represent are different questions.

Dual and designated agency

Dual agency involves representing both sides and requires written consent from both principals under Pennsylvania rules. A dual agent cannot favor one principal over the other and must follow confidentiality limits. Designated agency assigns different affiliated licensees to represent different principals under the required arrangement; the employing broker retains the role prescribed by the rules. Do not assume that separate desks or separate teams remove a conflict. Explain the relationship and obtain required consent before relying on it.

Work through an example

If a brokerage represents both buyer and seller, the agents must identify the authorized arrangement instead of silently treating the situation as single agency.

Remember: Written consent is central; disclosure after a conflict has already been concealed is not a cure-all.

Transaction licensees and written compensation

A transaction licensee provides services without an agency relationship to either party, but still owes statutory duties. Pennsylvania restricts disclosure that a seller will take less, a buyer will pay more or a party will accept different financing terms unless the applicable permission or exception exists. Agreements obligating a consumer to pay a broker must satisfy writing and disclosure requirements, including services and fees. Fee and contract duration are negotiable. Agency does not arise solely because a cooperating broker receives compensation. An oral open listing or nonexclusive buyer agreement has a specific statutory written-memorandum exception; do not generalize it to other fee agreements.

Work through an example

A neutral transaction role does not authorize revealing the buyer’s maximum price to improve the chance of closing.

Remember: No agency does not mean no duties.

Check your understanding

Close your notes and explain the rule in your own words. Change one fact in an example: does the answer change? Use topic practice in the study room, then return to any rule you missed.

Practice in the study room →Next unit →

Sources and further reading

Supplemental study only. State rules and transaction details matter; consult the linked official sources for the complete requirements. This lesson provides no prelicensing credit.