Pennsylvania Laws and Rules Practice Test Prep and Study Guide

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What must a real estate agent have before showing a property to a potential buyer in Pennsylvania?

A verbal agreement with the seller

A written agreement with the seller

In Pennsylvania, a real estate agent must have a written agreement with the seller before showing a property to a potential buyer. This written agreement, often referred to as a listing agreement, establishes the agent's authority to represent the seller and outlines the terms and conditions under which the property can be marketed and sold. This protects the interests of both the seller and the agent, ensuring that the agent has the legal right to engage potential buyers on behalf of the seller.

Having a written agreement also provides clarity regarding the commission structure, the duration of the agreement, and other important terms, which helps avoid misunderstandings. While a verbal agreement may indicate some level of understanding, it does not provide the legal protections or enforceability that a written document does.

An exclusive listing is a specific type of written agreement, but not all listings must be exclusive; thus, while it may be beneficial, it is not a requirement in all cases. A buyer's agreement pertains to the relationship between an agent and a buyer, and is not necessary for an agent to show a property. Therefore, the necessity of a written agreement with the seller stands as the most crucial prerequisite before an agent can appropriately represent the listing and show the property.

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An exclusive listing

A buyer's agreement

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