What type of agency relationship is formed with a buyer when they sign a buyer agency agreement in Pennsylvania?

When a buyer signs a buyer agency agreement in Pennsylvania, an exclusive agency relationship is formed. In this type of relationship, the buyer is represented solely by the agency they have entered into an agreement with. This means that the agency has a legal obligation to act in the buyer's best interests throughout the property buying process.

An exclusive agency arrangement provides the buyer with the assurance that their chosen agency will dedicate their efforts to finding suitable properties and negotiating favorable terms exclusively for them. This arrangement prohibits the buyer from engaging other agents for the same purpose during the term of the agreement, giving the buyer a level of commitment and loyalty from their agent that is not present in other types of agency relationships.

In contrast, other agency types like non-exclusive agency or open agency would allow the buyer the flexibility to work with multiple agents, which can lead to divided loyalties and conflicts of interest, diminishing the agent's commitment to the buyer. Additionally, a transactional agency refers to a scenario where the agent does not represent either party but instead facilitates the transaction, lacking the same level of fiduciary responsibility that comes with an exclusive agency relationship.