OHIO, USA — The Ohio Department of Commerce Division of Real Estate and Professional Licensing has launched an online resource to assist consumers in understanding how recent changes to real estate law may affect them.
The resource is in response to a legal decision that impacts the National Association of Realtors, and legislation passed in May by the Ohio General Assembly.
The division said the resource, formatted in a question-and-answer style, will help address uncertainty consumers may have if they plan to sell or purchase property in the near future.
According to the Division of Real Estate, Gov. Mike DeWine signed House Bill 466, "which aligns with the NAR settlement regarding residential real estate transactions, specifically broker commissions."
The division said the settlement's terms take effect Saturday, Aug. 17 for NAR member agents, and similar requirements from HB 466 will impact all licensed agents who engage in residential real estate transactions beginning on Oct. 24.
“The most significant change that potential buyers should understand is that, before a homebuyer’s agent can show them any property, they must first sign a buyer agency agreement,” REPL Superintendent Daphne Hawk said. “That agreement must include the amount the agent will be paid, as well as the manner in which that payment will occur, for work outlined in the agency agreement. Gone are the days that a real estate agent can show a property without having that agreement in place.”
REPL said the online resource will walk consumers through a range of scenarios, explaining how the settlement and changes in law will impact agency agreements. The division said potential homebuyers have options on how they are represented in real estate transactions, including:
- Choosing to be represented by an agent with fiduciary duties, including obedience, loyalty, disclosure, confidentiality, accounting and reasonable care
- Choosing not to be represented, allowing the seller's agent to draft offers based on the buyer's preferences, but the agent will not provide the buyer advice or guidance throughout the sale
- Consider dual agency, making it so one agent facilitates the transaction for both the buyer and seller. The division said "this entails maintaining a neutral stance between buyer and seller, prohibiting advocacy for one client over the other's interests and refraining from disclosing personal or confidential information without written consent. The agent's primary focus is facilitating the transaction smoothly."
“Real estate law can be confusing for many individuals, and it’s our goal to help consumers and our licensees understand how to navigate this process, especially given these changes. That’s what makes this new online resource so important,” Hawk said.
