Pennsylvania guide

MLS Compensation Rules Post-NAR Settlement in PA

After the August 2024 NAR settlement, Pennsylvania MLS systems like BRIGHT and West Penn Multi-List can no longer display offers of buyer agent compensation in any field.

Reading as buyer.

TL;DR

After the August 2024 settlement, Pennsylvania systems like BRIGHT and West Penn Multi-List can no longer display offers of buyer agent compensation in any field. As a buyer, you now sign a written buyer agency agreement with your agent before touring homes, and that agreement spells out what your agent gets paid. You can still ask the seller to cover your agent's fee, but it has to be negotiated through the purchase offer or directly between brokers — not through the MLS listing.

Before you start — 7 things to know

  • Since August 17, 2024, Pennsylvania systems cannot show any field advertising what a seller will pay a buyer's agent, so you will not see that number in BRIGHT or West Penn Multi-List listings.

  • Before a Pennsylvania agent can tour a home with you, the settlement requires you to sign a written buyer agency agreement that states exactly how your agent gets paid.

  • Sellers in Pennsylvania may still choose to pay your buyer agent's fee, but you have to ask for it inside your written purchase offer rather than rely on the listing to tell you.

  • If the seller will not cover your buyer agent's fee, you are responsible for paying it out of pocket at closing under the terms of your signed buyer agency agreement.

  • Pennsylvania BRIGHT listings may include a generic note that the seller is willing to consider buyer broker compensation, but the actual amount must come from the listing agent outside the .

  • Your buyer agent fee is negotiable in Pennsylvania, so you can shop around and compare what different agents charge before you sign the buyer agency agreement.

  • Asking the seller to pay your buyer agent through a seller concession in the purchase contract is allowed in Pennsylvania and does not violate the settlement.

The timeline — step by step

  1. Talk to a Pennsylvania buyer agent about their services and fees before you tour any properties, since the settlement requires a signed agreement before showings.

  2. Sign a written buyer agency agreement in Pennsylvania that spells out the agent's compensation, including the amount and who you expect to pay it.

  3. Have your Pennsylvania agent contact the listing agent directly to ask whether the seller is open to covering your agent's fee, since this information is no longer in the .

  4. Write your purchase offer to include a request for the seller to pay your buyer agent fee as a concession if you want the seller to cover that cost.

  5. Negotiate the buyer agent fee along with the price and other terms during the back-and-forth on your Pennsylvania purchase offer.

  6. Confirm at closing that your buyer agent's compensation is being paid as agreed in the contract, whether by the seller, by you, or split between both.

Common questions

Why can't I see the buyer agent commission in Pennsylvania MLS listings anymore?
The August 2024 settlement banned systems from displaying offers of buyer agent compensation, and Pennsylvania platforms like BRIGHT and West Penn Multi-List removed those fields to comply.
Do I have to pay my buyer's agent out of pocket in Pennsylvania?
Not always — in Pennsylvania you can ask the seller to cover your buyer agent's fee in the purchase contract, but if the seller refuses you are responsible for paying it under your signed buyer agency agreement.
When do I sign a buyer agency agreement in Pennsylvania?
Under the settlement, a Pennsylvania buyer agent must have a signed written agreement with you before showing you any home listed in the .
Can I negotiate what my buyer agent charges in Pennsylvania?
Yes — buyer agent fees in Pennsylvania are fully negotiable, so you can compare agents and discuss the rate before signing the buyer agency agreement.
How do I find out if a Pennsylvania seller will pay my buyer agent?
Your Pennsylvania buyer agent has to contact the listing agent directly to ask, because the settlement no longer allows that information to appear in the listing.

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

  1. [1]
  2. [2]

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