Pennsylvania guide

Buyer Agency Agreement Post-NAR Settlement: PA Requirements

Q: Can my agent just write 'whatever the seller offers' in the compensation section?

No. Under the NAR settlement practice changes, the buyer agency agreement must list a specific dollar amount, percentage, or flat fee — not a range and not a placeholder. This is a key change from how Pennsylvania agreements often worked before August 2024.

If you want to tour homes with a buyer's agent in Pennsylvania, you'll sign a written buyer agency agreement first — this has been PA law for years and is also now required by the NAR settlement for member agents.

TL;DR

If you want to tour homes with a buyer's agent in Pennsylvania, you'll sign a written buyer agency agreement first — this has been PA law for years and is also now required by the settlement for member agents. The agreement must list a specific compensation amount (a dollar figure, percentage, or flat fee), not a vague 'whatever the seller offers.' If the seller's offered compensation covers what you agreed to pay your agent, you owe nothing extra at closing; if it falls short, you cover the difference.

Before you start — 8 things to know

In Pennsylvania, you'll sign a written buyer agency agreement with your agent before touring any homes — this has been PA state law for years and is also now required by the settlement for member agents.
Your Pennsylvania buyer agency agreement must spell out a specific compensation amount — a dollar figure, a percentage of the purchase price, or a flat fee — not a range and not 'whatever the seller offers.'
Even if you're only attending open houses with your buyer's agent in Pennsylvania, you need a signed buyer agency agreement in place first.
If the seller offers enough compensation to cover what you agreed to pay your buyer's agent in your Pennsylvania buyer agency agreement, you owe nothing extra out of pocket at closing.
If the seller's offered compensation is less than the amount in your Pennsylvania buyer agency agreement, you're responsible for paying the difference to your agent at closing.
Your Pennsylvania buyer agency agreement must also define a term length, the types of property it covers, and the geographic area where it applies — not just the compensation.
Most Pennsylvania agents will hand you the PAR Buyer Agency Contract (BAC), which is the state's standard buyer agency form — read the compensation section carefully before you sign.
The specific-compensation requirement took effect on August 17, 2024, when the settlement practice changes kicked in for member agents and most participants nationwide.

The timeline — step by step

You decide you want a buyer's agent to help you shop for a home in Pennsylvania.
Before touring any property together, you and the agent sign a written Pennsylvania buyer agency agreement (often the PAR Buyer Agency Contract) that lists a specific compensation amount.
You tour homes with your buyer's agent within the property type, geographic area, and time window defined in the Pennsylvania buyer agency agreement.
When you find a home you want, you make an offer; the listing typically signals whether the seller is offering compensation toward your buyer's agent.
At closing, any seller-paid compensation is applied toward what you owe your buyer's agent under the Pennsylvania buyer agency agreement.
If the seller's offered compensation falls short of the amount in the Pennsylvania buyer agency agreement, you pay the difference to your agent at closing.

Common questions

Do I have to sign a buyer agency agreement before just looking at houses in Pennsylvania?

Yes. Pennsylvania has long required a written buyer agency agreement before an agent works with you, and the settlement (effective August 17, 2024) reinforces this for member agents. Even tagging along with your agent at open houses counts as touring, so the agreement needs to be signed first.

Does this mean I'll have to pay my buyer's agent out of pocket?

Not necessarily. If the seller offers compensation that meets the amount in your Pennsylvania buyer agency agreement, that covers it and you owe nothing extra at closing. You'd only pay out of pocket if the seller's offer is less than what you agreed to pay your agent.

Can my agent just write 'whatever the seller offers' in the compensation section?

No. Under the settlement practice changes, the buyer agency agreement must list a specific dollar amount, percentage, or flat fee — not a range and not a placeholder. This is a key change from how Pennsylvania agreements often worked before August 2024.

What does a Pennsylvania buyer agency agreement need to include besides the compensation?

It must define a term length, the property types covered, and the geographic area where the agreement applies, in addition to the agreed compensation. These requirements come from Pennsylvania's regulations on buyer agency agreements at 49 Pa. Code §35.331.

What happens if the seller isn't offering any compensation to my buyer's agent?

Then you'd be on the hook for the full amount in your Pennsylvania buyer agency agreement, unless you negotiate something else into the offer — like asking the seller to credit closing costs that you can apply toward your agent's fee. Talk through these scenarios with your agent before you start touring so there are no surprises at closing.

Is the buyer agency agreement requirement a Pennsylvania rule or a national one?

Both apply. Pennsylvania has required written buyer agency agreements for years under 49 Pa. Code §35.331. The settlement layered on the specific-compensation requirement nationwide for NAR-member agents and most participants as of August 17, 2024.

Glossary

2 terms

NAR — National Association of Realtors: The national trade group for real-estate agents. The 2024 NAR settlement is the legal deal that changed how buyer's agents get paid.
MLS — Multiple Listing Service: The shared database agents use to list and find homes for sale. Most homes you'll see online started here.

Sources

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