You’ve spent a Sunday afternoon on Zillow. You’ve bookmarked three homes — one in Manheim Township, one just outside Lititz, one in Hempfield. You’re ready to see them in person. You reach out to an agent, and before they can schedule a single showing, they ask you to sign something.
That something is the Buyer Agency Contract. And if you’ve never bought a home before — or haven’t bought one since 2024 — you may have no idea what you’re looking at.
Here’s what you need to know before you sign anything.
What the Pennsylvania Buyer Agency Contract Actually Says
The Pennsylvania Association of Realtors® maintains a standard form called the Buyer Agency Contract, or PAR Form BAC. It’s been updated over the years, but it became required before any home showings following the August 2024 NAR settlement — a nationwide agreement that changed how buyer agent compensation works across the industry.
What the agreement does, at its core: it makes your agent legally your agent. That means they owe you a fiduciary duty — loyalty, confidentiality, full disclosure, and the obligation to put your interests ahead of their own. Without this agreement in place, an agent who shows you homes isn’t required to work in your best interest at all.
The BAC covers four key things:
- Who the agent represents. You, exclusively. The agent works for you — not the seller, not the brokerage’s other clients, not themselves.
- The duration of the agreement. Typically drafted for six to twelve months, though this is negotiable. You don’t have to accept the default.
- Compensation terms. The specific rate or amount your agent will receive, and how it will be determined. Pennsylvania law now requires this to be clearly stated — no open-ended terms, no “whatever the seller offers.”
- Geographic and property scope. The agreement can cover all homes in all of Lancaster County, or you can limit it to a specific area or even a single property.
For first-time buyers especially, this is one of the most important documents you’ll sign in the entire process. If you’re just getting started, it helps to read it alongside a solid overview of the full homebuying process — our First-Time Homebuyer’s Guide to Lancaster County walks through each stage from search to settlement.
How Buyer Agent Compensation Works Now
This is where most buyers’ questions — and most confusion — live.
Before August 2024, the way buyer agents got paid was largely invisible to buyers. The seller typically agreed upfront (through the MLS listing) to pay a buyer agent commission, and buyers went through the whole process without ever negotiating or even discussing it. That system is gone.
Here’s how it works now:
You and your agent agree to a specific compensation rate before anything else happens. That number must be clear, objective, and in writing. Your agent legally cannot receive more than what you’ve agreed to from any source — not from the seller, not from the listing broker, no one.
Sellers can still offer to cover your agent’s compensation. Many Lancaster County sellers do, because offering buyer agent compensation is part of their marketing strategy — it makes their home more attractive to buyers who want representation. That offer just can’t appear on the MLS anymore; it’s communicated off-MLS, typically through your agent.
If there’s a gap, it gets negotiated. If a seller offers less than your agreed rate, you have options: you can negotiate for the seller to cover the difference as part of your offer, or in some cases, you pay your agent directly at settlement. Your agent should walk you through what’s typical in the current Lancaster market before you start touring homes.
The bottom line on compensation: it’s negotiable. The law doesn’t set it. Your agent should be able to clearly explain what they charge and why — just like any professional service.
If you haven’t already gotten pre-approved, that step should happen alongside or before signing a buyer agreement. Our guide to getting pre-approved for a mortgage in Lancaster, PA covers what lenders look for and how to prepare.
What You Can Negotiate Before You Sign
A lot of buyers don’t realize the Buyer Agency Contract is negotiable. They’re handed a form, and they sign it — because that’s what you do when someone hands you a form.
Don’t do that. Read it. Ask questions. Here’s what’s actually on the table:
- Duration. Six or twelve months is common, but you can ask for a shorter term — a few weeks, or the duration of your active search. Some agents will do a Single Property Agreement, which covers only the specific home you’re interested in touring.
- Compensation rate. Negotiable. Period. If an agent won’t discuss it, that tells you something.
- Geographic scope. If you’re only looking in specific neighborhoods or municipalities, say so. You don’t have to give an agent exclusive rights to represent you across all of Lancaster County if your search is narrow.
- What’s included. Your agent should be clear about what services they’re providing: market analysis, offer drafting, negotiation, coordination through settlement. If it’s vague, ask them to be specific.
One more thing worth knowing: the standard PAR Buyer Agency Contract does not include a unilateral exit clause. That means you can’t simply decide to walk away mid-agreement. Termination requires either the agreement to expire or both parties to agree in writing. This is another reason why starting with a shorter term, or at minimum an agent you’ve done some research on, matters.
In Lancaster’s competitive market — where homes in Manheim Township and Lititz regularly receive multiple offers within days — you want an agent who knows how to build a winning strategy, not just show you listings. The extra care you put into choosing your agent at the start will show up in every offer you write. For a look at what competitive offers actually look like right now, see our post on how to make a competitive offer in Lancaster, PA.
One More Thing: Dual Agency and New Construction
Two situations where buyers get into trouble — and both come up regularly in Lancaster County.
Dual agency. If you contact a listing agent through Zillow, Realtor.com, or directly from a yard sign, you may end up with an agent who represents both you and the seller. This is called dual agency, and it’s legal in Pennsylvania — but only with written consent from both parties.
The problem is math: an agent representing both sides can’t advocate for either one. They can’t tell you what the seller might accept, advise you to offer below list price, or negotiate aggressively on your behalf. They become a neutral facilitator. For the seller, that’s fine. For you, it means you’re navigating a major financial decision without anyone in your corner.
Your best protection is simple: have your own buyer’s agent before you contact anyone about a property.
New construction. This is even more important when you’re buying new construction in Lancaster County. The sales representative you meet in a builder’s model home — whether in a new Landmark Homes development in Penn Township or a Keystone Custom Homes community off Route 30 — works for the builder. Their job is to protect the builder’s interests and close the deal on the builder’s terms.
Pennsylvania’s standard new construction agreement has historically given buyers limited protections compared to a resale transaction. You want someone with you who can review the contract, push back on unreasonable terms, and know what to watch for during the construction process. And you need to bring that agent with you before you register at the sales office — most builders won’t let you add a buyer’s agent after you’ve already signed in as an unrepresented buyer.
Frequently Asked Questions
Is it required to sign a buyer agency agreement before touring homes in Pennsylvania?
Yes. Since August 17, 2024, Pennsylvania real estate agents must have a signed Buyer Agency Contract in place before showing any home listed in the MLS. This rule is statewide and applies in Lancaster County. Without it, an agent cannot legally represent you as a buyer’s agent in any negotiation or transaction.
Can I cancel a buyer agency agreement in Pennsylvania?
The standard PAR Buyer Agency Contract doesn’t include a unilateral exit clause — you can’t simply decide to end the agreement early. Termination requires either the term to expire or both parties to agree in writing. This is why negotiating a shorter term upfront matters. If your agent has materially breached their duties to you, that’s potential grounds to terminate for cause, and you should contact the agent’s managing broker.
Who pays the buyer’s agent commission in Lancaster, PA?
Buyer agent compensation is negotiable and must be agreed to upfront in writing. Many Lancaster County sellers still offer to cover buyer agent compensation as part of their marketing strategy — though that offer now happens off-MLS rather than in the listing. If the seller’s offer is less than what you agreed to pay your agent, you can negotiate for the seller to make up the difference, or pay your agent directly at settlement.
What is dual agency, and should I avoid it?
Dual agency is when one agent — or two agents from the same brokerage — represents both the buyer and seller in the same transaction. It’s legal in Pennsylvania with written consent, but the agent must remain neutral and cannot fully advocate for either party. Many experienced agents refuse to practice dual agency for this reason. If you’re contacting listing agents directly through real estate portals, be aware you may be setting up a dual-agency situation without realizing it.
Do I need my own buyer’s agent when buying new construction in Lancaster County?
Yes — and you need to bring your agent before you register with the builder. The builder’s sales representative works for the builder, not for you. Pennsylvania’s standard new construction agreement offers buyers less protection than a typical resale contract, and once you’ve registered as unrepresented, most Lancaster County builders won’t allow you to add a buyer’s agent to the transaction later.
Signing the Buyer Agency Contract is the start of your working relationship with your agent — not a trap, and not a formality. When the agreement is right and your agent is the right fit, it’s the first step toward buying a home with someone who’s genuinely working for your outcome.
If you have questions about what to look for before signing, or you’re trying to figure out the right starting point for your Lancaster County home search, reach out. I’m happy to walk through it with you — no pressure, no obligation.
About Craig Hartranft
Craig Hartranft is a top-ranked Lancaster County REALTOR® and Founder of The Craig Hartranft Team, Berkshire Hathaway’s #1 real estate team in Lancaster County, with 460 homes sold and $195M+ in sales in 2025, plus over 1,400 five-star reviews across Google and Zillow.