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Pa Agency Consumer NoticeDesignated_agency_paMEDIUM

A Pennsylvania buyer signs a buyer agency agreement with a large brokerage. Later, the buyer becomes interested in a property listed by another agent in the same brokerage. Before showing the property, what must happen under Pennsylvania law?

Correct Answer

A) The broker of record must inform both parties about the in-house situation and obtain consent for designated agency or dual agency

When both buyer and seller are represented by agents within the same Pennsylvania brokerage, the broker of record must disclose the situation and obtain informed consent from both parties. The parties can agree to designated agency (where each keeps their own agent) or dual agency, both requiring written consent.

Answer Options
A
The broker of record must inform both parties about the in-house situation and obtain consent for designated agency or dual agency
B
The buyer must terminate the buyer agency agreement and find an agent at a different brokerage
C
The listing agent must automatically become the buyer's agent as well since the buyer initiated contact
D
The brokerage must refer the listing to an outside brokerage to avoid any conflict of interest

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Related Topics & Key Terms

Key Terms:

designated_agencyin_house_transactioninformed_consentdisclosure

Related Concepts

The fiduciary obligations owed by a listing agent to the seller, including marketing the property, presenting all offers, and protecting the seller's confidential information.

A practice where the agent or brokerage represents only one party in a transaction — either the buyer or the seller, but never both.

A relationship where a listing broker authorizes other brokers to act as agents of the seller, extending the seller's agency relationship to cooperating brokers.

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