Previously many Buyers were not aware of how agency laws worked. They thought that the agent showing them property was their agent and they disclosed information to the agent that was not in their best interest. However that agent was working with the Buyers, not for them. Any information, which Buyers gave to the Agent, had to be given to the Sellers because the fiduciary responsibility of the Agent was to the Seller. As the public became more aware of this arrangement, complaints were made to Real Estate Commissions and lawsuits were filed.
As a result, in November of 1999 the Pennsylvania Real Estate Commission passed legislation requiring Real Estate Agents to present to Buyers/Tenants and Sellers/Landlords a Consumer Notice at their initial interview. The Commission requires the form to be signed, and kept on file for inspection by the Commission, to insure that each consumer has received the information about representation in a Real Estate Transaction before any confidential information is disclosed