Regardless if you're attending an open house or interviewing a Realtor to help you buy or sell a home, a Realtor who asks you to sign the Consumer Notice Form is doing his or her job and fulfilling the requirement of this law. If you first contact a Realtor by phone, the Realtor is required to review the oral disclosure with you at that time. The Consumer Notice outlines your options for representation in a real estate transaction. (Note: link the words oral disclosure to the page below)

The form is not a contract (as the form boldly states) and does not commit the consumer to any relationship. It simply outlines the real estate services owed to the consumer by any real estate licensee. It also differentiates the five types of relationships a real estate licensee may have with a consumer.

1) Seller Agency - is a relationship where the licensee, upon entering into a written agreement, works only for a seller/landlord.

2) Buyer Agency - is a relationship where the licensee, upon entering into a written agreement, works only for the buyer/tenant.

3) Dual Agency - is a relationship where the licensee acts as the agent for both the seller/landlord and the buyer/tenant in the same transaction with the written consent of all parties. Should dual agency occur in your transaction, you will be informed. As a result, the same level of fiduciary responsibility could not apply.

4) Designated Agency - the employing broker may, with your consent, designate one or more licensees from their company to act exclusively as the agent for the seller/landlord and one or more licensees to act exclusively as the agent for the buyer/tenant. Other licensees in the company who are not designated may represent another party and should not be provided with any confidential information.

5) Transaction Licensee - is a broker or salesperson who provide 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/landlord or the buyer/tenant. Upon entering into a written agreement or disclosure statement, the transaction licensee has the additional duty of limited confidentiality.

While this practice may seem alarming now, with time it will be seen as just one of the many forms to be completed to adhere to real estate laws in Pennsylvania. By having this Agency Law, Pennsylvania joins 47 other states in clarifying agency relationships between consumers and real estate practitioners.

CLICK HERE FOR A COPY OF THE CONSUMER NOTICE

Oral Consumer Notice

Act 47 of 2000 permits licensees to provide an oral disclosure of the Consumer Notice on the telephone provided it is followed up with a written Consumer Notice at the first meeting with the consumer. NOTE: This oral disclosure may not be used by owners/landlords, their employees, or their agents.

The language of the oral disclosure is as follows and must be read verbatim: "The Real Estate Law requires that I provide you with a written consumer notice that describes the various business relationship choices that you may have with a real estate licensee. Since we are discussing real estate without you having the benefit of the Consumer Notice, I have the duty to advise you that any information you give me at this time is not considered to be confidential, and any information you give me will not be considered confidential unless and until you and I enter into a business relationship. At our first meeting I will provide you with a written consumer notice which explains those business relationships and my corresponding duties to you."