Agency and Disclosure
This chapter explains Pennsylvania's specific agency relationships and the disclosures licensees must make to consumers. Pennsylvania law requires clear, timely disclosure so consumers understand whom a licensee represents.
The Consumer Notice
Pennsylvania requires a licensee to provide the Consumer Notice at the first substantive contact, before discussing a consumer's specific needs, motivations, or financial situation. The notice explains the types of business relationships available, such as seller agent, buyer agent, dual agent, and transaction licensee. Providing it early ensures consumers know how their information may be used. Failing to deliver the Consumer Notice on time is a compliance violation.
Types of Agency Relationships
Pennsylvania recognizes several relationships, including seller agent, buyer agent, dual agent, designated agent, and transaction licensee. A transaction licensee provides services without creating an agency relationship or owing fiduciary duties. A dual agent represents both buyer and seller in the same transaction and may act only with the informed written consent of both parties, remaining neutral between them. Each relationship must be disclosed and documented.
Seller Property Disclosure
Pennsylvania's Real Estate Seller Disclosure Law requires most sellers of residential property to complete a Seller's Property Disclosure Statement identifying known material defects. It must be delivered to the buyer before the agreement of sale is signed. Certain transfers, such as some transfers by estates, sheriff's sales, or transfers between co-owners, are exempt. Accurate disclosure reduces disputes and protects both consumers and licensees.