agency

Business Relationship Not Presumed (Pennsylvania)

Pennsylvania does not presume any agency when a licensee begins helping a consumer; the Consumer Notice states that a business relationship is NOT presumed. Under RELRA, a licensee may perform services before signing an agreement but cannot collect a fee unless the services and fee are spelled out in a written agreement signed by the consumer, except open listings and non-exclusive buyer or tenant agreements, which may be oral with a written memorandum. Payment of compensation alone does not create an agency relationship.

Exam tip
'No paper, no pay, and who pays doesn't decide who you represent.' A buyer's agent does not become the seller's agent because the seller pays the commission.
Example
A licensee shows a buyer six homes without a signed agreement; when the buyer purchases through someone else, she cannot collect a fee from the buyer.

Related terms & state variants

Sources

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Last verified: 2026-10-23