Consumer "Agency" Descriptions

Pennsylvania law requires real estate brokers and salespersons to advise consumers who are seeking to purchase or sell real estate that there are various types of representation for the consumers.  It is important that you know the differences between a professional who represents a seller (the "traditional" role of a sales associate), a professional who represents a buyer, and one who represents both (dual agent). There is also a relatively unknown category called a Transaction Licensee. In Pennsylvania, real estate professionals are now legally obliged to disclose, in writing, information on the various types of real estate agency relationships that exist.

• Seller's Agent- A real estate professional becomes a Seller's Agent by entering into a listing agreement to represent the seller's interests. Seller representation may also be created when a real estate professional shows a property on the Multiple Listing Service and "Buyer Agency" has not been created. The Seller's Agent can provide information to assist the buyer, but they must place the interests of the seller first. A buyer should not disclose anything to the Seller's Agent they do not want the seller to know.
  
  
• Buyer's Agent-A real estate professional becomes the Buyer's Agent by entering into a written agreement to represent the buyer. A Buyer's Agent can assist the seller, but does not represent the seller. The Buyer's Agent must place the interests of the buyer first. A seller should not tell the Buyer's Agent anything they would not want the buyer to know, because the Buyer's Agent must disclose any pertinent information to the buyer.
  
  
• Dual Agent-Dual agency occurs when a real estate professional represents both the seller and the buyer. It can also occur when the Listing or Seller's Agent works for the same real estate firm as the Buyer's Agent. In most states, the buyer, the seller, and the Agent must agree in writing for the creation of dual agency. The Dual Agent is required to treat the buyer and seller honestly and impartially. In dual agency, the professional's duties are more limited and there is potential for conflict of interest.
  
  
• Transaction Licensee-A transaction licensee is a broker or salesperson who provides communication or document preparation services or performs other acts for which a license is required without being the agent or advocate for either the seller or buyer.  This licensee has the additional duty of limited confidentiality meaning that the following information may not be disclosed:

--The seller will accept a price lower than the asking/listing price.

--The buyer will pay a price greater than the price submitted in a written

--The seller or buyer will agree to financing terms other than those offered.