The Home Page Network

Buying or selling a home involves more than finding the right property or the right buyer—it also means understanding the paperwork that protects everyone involved. In this edition of Penn Oak Realty’s Real Estate Minute on The Home Page Network, Dawn Avery, broker and owner of Penn Oak Realty, sat down with Misty Gardner from the Wellsboro office to discuss some of the most common forms used in real estate transactions.

The Consumer Notice: The First Step

According to Gardner, the Consumer Notice is the first form that every real estate agent in Pennsylvania must review with any potential buyer or seller. “This is a form required by the Pennsylvania Real Estate Commission,” she explained. “The law requires that agents review it with clients at the first meeting of substance.”

That means you don’t need to sign it just to ask basic questions—like the listing price or number of bedrooms—but as soon as the conversation goes beyond surface-level details, the Consumer Notice must be presented.

The two-page document explains the different types of agency relationships recognized in Pennsylvania real estate:

• Seller Agent: Represents the seller’s best interests and works in good faith to find a qualified buyer.

• Buyer Agent: Represents the buyer’s best interests, helping them locate a property that fits their needs.

“In both cases,” Gardner said, “the agent must keep the client’s information confidential and disclose any material defects that they know of.”

What Is a “Material Defect”?

A material defect refers to a significant issue that affects the property but isn’t immediately visible. Examples include boundary disputes, a malfunctioning HVAC system, or the presence of hazardous substances.

“Agents can only disclose what they know,” Gardner clarified. “Realtors® are not home inspectors, so it’s always important for clients to schedule a home inspection.”

Understanding Agency Relationships

In addition to Seller and Buyer Agents, Gardner explained a few other types of relationships that can occur in real estate:

• Dual Agent: Represents both the buyer and the seller in the same transaction. The agent must remain neutral and cannot share confidential information from either party.

• Designated Agent: Occurs when two agents from the same brokerage represent the buyer and seller separately. The broker is technically a dual agent, but each party still has their own representative.

• Transaction Licensee: This agent does not represent either side and simply assists with paperwork.

Importantly, signing the Consumer Notice does not make an agent your representative. “It’s simply proof that we went over the document together,” Gardner said. “A listing contract or buyer agency agreement is what officially establishes representation.”

The Listing Contract

For sellers, the next key document is the listing contract. This agreement outlines:

• Contact information for the office, agent, and seller

• Property details, including address and asking price

• The duration of the listing (up to one year, or 364 days)

• Commission or compensation terms

• Items conveying with the property

• Whether the listing will appear in the MLS

• Decisions about signage, lockboxes, and other marketing details

“If the property doesn’t sell within the contract period, it can be extended with new paperwork,” Gardner noted.

Buyer Agency Agreements

For buyers, agency relationships are formed through a buyer agency agreement, which can be either exclusive or non-exclusive. “One of these forms must be signed before an agent can show you a property,” Gardner said.

Due to time constraints, Avery and Gardner plan to explore the differences between these two types of buyer agency agreements in a future episode.

Learn More

To learn more about these important real estate forms or to speak directly with a Penn Oak Realty agent, you can contact Misty Gardner at the Wellsboro office located at 65 Main Street, Wellsboro, by phone at 570-724-8000 or 570-439-6444.
Visit PennOakRealty.com for more information.