Buyers Agency Agreement in Pennsylvania — What It Is, What It Means, and What to Expect
If you are buying a home in Pennsylvania in 2024 or later, you will be asked to sign a Buyers Agency Agreement — formally called the Exclusive Buyer Agency Contract, or BAC — before your agent shows you a single property. This is now a legal requirement for REALTORS® operating under Bright MLS, effective August 17, 2024, as part of the NAR settlement. This page explains exactly what the Pennsylvania Buyers Agency Agreement covers, what you are agreeing to, what changed after the NAR settlement, and what questions to ask before you sign.
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What Changed After the NAR Settlement — The Short Version
Before August 17, 2024, buyer agents in Pennsylvania were typically compensated through a commission split that the listing broker published in the MLS. Sellers effectively paid both the listing agent and the buyer's agent out of sale proceeds, and buyers rarely saw or discussed how their agent was paid. The NAR settlement changed three things. First, listing brokers can no longer advertise buyer agent compensation in the MLS. Second, any compensation offered to a buyer's agent must be negotiated and documented outside the MLS. Third, and most importantly for buyers, a written Buyers Agency Agreement must be signed before a buyer tours any property — in person or virtually.
This does not mean buyers automatically pay their agent out of pocket. It means the compensation arrangement must be discussed, agreed to in writing, and transparent before the relationship begins. In practice, sellers in the Bucks County and Montgomery County market continue to offer buyer agent compensation outside the MLS — but the amount and structure must now be memorialized in writing rather than assumed.
The Pennsylvania Exclusive Buyer Agency Contract — What It Actually Says
The Pennsylvania Association of Realtors® Exclusive Buyer Agency Contract (PAR Form BAC, revised August 2024) is the standard form used across the Philadelphia suburban market. Here is what each section covers in plain language.
Paragraph 1 — Term
The contract has a starting date and an ending date. No law sets how long it must be — the term is negotiated between you and the agent. It can be as short as a single day for one showing or as long as six to twelve months for a full buyer search. The ending date cannot be extended without your written consent. If you are under an Agreement of Sale when the contract ends, the contract continues until settlement.
Paragraph 2 — Broker's Fee
This is the most important paragraph and the one that changed most significantly after the NAR settlement. The fee is negotiated between you and the broker — no law sets it. The form specifies the fee separately for transactions involving a represented seller versus an unrepresented seller. A critical provision added by the NAR settlement: the broker cannot retain any amount greater than the fee agreed to in this paragraph, regardless of the source. If the seller offers cooperating compensation that exceeds your agreed fee, the broker must credit the difference back or apply it to your costs — not pocket it.
The fee structure options are: a percentage of purchase price, a flat dollar amount, or a combination. There is also a provision for an advance fee or retainer earned at signing, which is credited against the full fee at closing. If seller compensation falls short of the agreed fee, you are responsible for paying the difference at settlement. This is the key provision buyers need to understand — it is not automatic that a seller will cover the full amount.
Paragraph 3 — Dual Agency
By signing the BAC, you acknowledge that your broker may also represent the seller of a property you want to buy. When the same broker represents both sides, that is dual agency. In dual agency the broker cannot fully advocate for either party — they are a neutral facilitator. You have the right to decline dual agency. If you want to avoid it entirely, ask about single agency or designated agency before signing. If you do not understand these agency concepts, it may be because you were not presented with the requisite Consumer Notice at your first substantial meeting with your agent.
Paragraph 4 — Designated Agency
Designated agency means a specific licensee within the brokerage is designated exclusively to represent you, while a different licensee in the same brokerage represents the seller. This is the most common structure in a large brokerage. It is the default in the PAR BAC unless specifically checked off. If the same licensee ends up representing both you and the seller, that licensee becomes a dual agent regardless of designated agency provisions.
Paragraph 6 — Entire Contract
The written BAC is the entire agreement. Verbal promises, emails, and text messages about what your agent will do or what they will charge are not binding unless they are in the written contract. Any changes must be in writing and signed by both parties.
Paragraph 8 — Confidentiality
Your agent cannot reveal your confidential information — your budget ceiling, your motivation to buy quickly, your personal situation — to the seller or seller's agent without your permission. This protection survives the end of the contract. This is one of the most practically important protections a buyer agent provides — an unrepresented buyer or a buyer working with the listing agent has no such protection.
Paragraph 13 — Buyer Inspections
Real estate in Pennsylvania is sold in its present condition unless the Agreement of Sale says otherwise. Your agent's obligation is to disclose adverse factors reasonably apparent to a real estate professional — not to perform a technical inspection. Hiring qualified independent inspectors for structure, systems, radon, stucco, oil tanks, and other condition issues is your responsibility and strongly advised.
Paragraph 14 — Recordings on the Property
This provision was added because sellers increasingly have smart home devices, cameras, and audio recording systems in their homes during showings. Pennsylvania law makes it a felony to record someone without consent. Do not discuss your negotiation strategy, budget, or motivation while inside a property being shown — assume you may be recorded.
What Happens to Compensation Now That MLS Offers Are Prohibited
Seller compensation for buyer agents still happens in the Bucks County and Montgomery County market — it simply must be communicated and documented outside the MLS. In practice, listing agents now use the PAR Cooperating Broker Compensation Agreement (Form CBC) to document what a seller is offering. When your agent identifies a property you want to see, they should check whether the listing broker has a CBC in place and communicate that information to you so you understand the compensation picture before making an offer.
If the seller's offered compensation is less than the fee you agreed to in your BAC, you have several options. Your agent can negotiate with the listing broker using Form CBC for an increase. You can include a seller concession request in your offer that covers the difference. Or you pay the difference at settlement. None of these outcomes is automatic — they are negotiated. An agent who does not proactively discuss this with you before you write an offer is not serving you well.
How to Think About Signing a Buyers Agency Agreement
The BAC protects you more than it constrains you. Your agent owes you loyalty, confidentiality, and a fiduciary duty to act in your best interest only after the agreement is signed. Before the agreement is signed, the agent has no legal obligation to represent your interests over anyone else's — including the seller's. In a market as competitive and complex as Bucks County and Montgomery County, that protection matters on every offer you write.
The term length is negotiable. If you are not comfortable committing to six months, discuss a shorter term or a property-specific agreement for a single showing. A good agent will work with your comfort level on term length. What the agreement should not be negotiable on is the compensation disclosure — you deserve to know exactly what your agent is paid and from what source before you start looking at homes.
Working with Josh Wernick - REALTOR®
Before signing any Buyers Agency Agreement, Josh Wernick walks through every paragraph in plain language so there are no surprises at closing or anywhere in between. The compensation structure, the term, the dual agency provisions, and what happens if a seller's compensation falls short are all discussed before the first showing. If you have questions about the BAC or want to understand what you are signing before you commit, call or text 267-934-5674. No pressure. No obligation to sign anything in the first conversation.
Josh Wernick - REALTOR®
· Buyers Agent in Bucks County · Montgomery County · Main Line · Keller Williams Real Estate · No Obligation Consultation
FAQ: Buyers Agency Agreement in Pennsylvania
Do I have to sign a Buyers Agency Agreement in Pennsylvania?
Yes, if you are working with a REALTOR® who is a member of Bright MLS. As of August 17, 2024, agents operating under the NAR settlement must have a signed written Buyers Agency Agreement in place before showing you any property in person or virtually. The form used in Pennsylvania is the PAR Exclusive Buyer Agency Contract (Form BAC).
Does signing a Buyers Agency Agreement mean I have to pay my agent out of pocket?
Not necessarily. The agreement specifies the fee your agent is entitled to earn — it does not dictate the source of that payment. In many transactions, the seller offers cooperating compensation outside the MLS that covers some or all of the buyer agent fee. However, if the seller's compensation falls short of the agreed fee, you are responsible for the difference at settlement. Your agent should discuss this with you before you write any offer.
Can I negotiate the terms of the Buyers Agency Agreement?
Yes. No law sets the fee or the term length — both are negotiated between you and the broker. You can negotiate the percentage, the duration, and in some cases a property-specific or single-showing agreement for limited commitment.
What is dual agency in a Pennsylvania Buyers Agency Agreement?
Dual agency occurs when the same broker represents both you and the seller in the same transaction. In dual agency, the broker cannot fully advocate for either party. The PAR BAC discloses this possibility and requires your consent. If you want to avoid dual agency, discuss single agency or designated agency with your agent before signing.
What changed about buyer agent compensation after the NAR settlement?
Before August 2024, listing brokers published buyer agent compensation offers in the MLS. That practice is now prohibited. Sellers can still offer buyer agent compensation, but it must be communicated outside the MLS using a separate Cooperating Broker Compensation Agreement (Form CBC). Buyers must have a signed written agreement with their agent before touring any property, and all compensation must be disclosed in that agreement upfront.
How long does a Buyers Agency Agreement last in Pennsylvania?
The term is negotiated — there is no legally required minimum or maximum duration. Agreements commonly run 30 days to six months. The ending date cannot be extended without your written consent. If you are uncomfortable with a long term, ask about a shorter agreement or a property-specific agreement.