Ohio Homebuyers, Take Note: Real Estate Division Reminds Ohioans About Recent Legal Changes that Impact the Homebuying Process

COLUMBUS, Ohio — Last spring and summer, more than 83,000 homes were sold across the state of Ohio, representing 63% of all 2024 sales. As the weather and the homebuying season heat up yet again, the Ohio Department of Commerce Division of Real Estate and Professional Licensing reminds aspiring homebuyers to be aware of how recent changes to Ohio law impact their relationship with their real estate agent.

Last August, House Bill 466 went into effect, marking a significant step forward in Ohio’s real estate market and consumer protections. House Bill 466 updated real estate license laws to align with a settlement agreement with the National Association of Realtors. Under the new law, buyer agents are required to have a written agency agreement in place, including details about compensation, before they can conduct most real estate activities and transactions on behalf of their clients.

“Since this law took effect, we’ve received various questions from consumers and licensees alike hoping to gain a better understanding of how these recent changes impact them,” Superintendent Daphne Hawk said. “Understanding the changes brought about by House Bill 466 is essential — whether you’re hoping to buy a home in the near future or you’re a real estate professional. Simply put, the law ensures all parties in a transaction have a clear understanding regarding representation and compensation.”

Purchasing a home is one of the largest investments individuals will ever make. To help Ohioans better understand how these changes and impact them, the Division is highlighting some of the most common questions it has received to date — and sharing answers to those questions.

• If you want to buy a home and hire an agent, do you need to sign a buyer’s agent agreement?
  While Ohio law technically allows a buyer agent to show properties without a written agreement, most agents are members of the National Association of Realtors and must comply with the settlement agreement requiring a signed buyer agency agreement before showing homes. Consumers have the option of signing an exclusive or nonexclusive buyer agency agreement or work directly with a seller’s agent with the seller’s approval.
• What is the difference between exclusive and nonexclusive agreements?
  An exclusive agreement guarantees the agent earns their commission no matter who sells the property. In other words, the buyer agrees not to work with another agent while the agreement is in effect. A nonexclusive agreement provides the agent with a commission only if you purchase a property they introduced you to. As a result of HB 466, all agreements must include the amount and terms of the agent’s compensation.
• Can you view a home without a buyer’s agent?
  Yes, you can view a property by coordinating the visit with the seller’s agent. Keep in mind, if you decide to make an offer, you will need to choose whether to proceed unrepresented or to utilize dual agency, if the brokerage allows it. Dual agency means the agent acts as a neutral facilitator for both the buyer and seller, ensuring fairness while not advocating for either party. If this option is chosen, both buyer and seller must authorize a dual agency agreement in order to proceed.
• Do you need to sign an agreement to attend an open house?
  No, you are not required to sign an agreement with a buyer agent or listing agent to attend an open house. If you are already working with a buyer agent, it’s best to discuss open houses with them in advance. Remember, the listing agent represents the seller, so be cautious about disclosing personal or financial details.

The Division remains dedicated to supporting consumers and industry professionals as they adapt to the changes brought by House Bill 466. It will continue to monitor the law’s impact, collaborating with stakeholders and ensuring the public stays well-informed.

“Having the right information empowers Ohioans to make smart decisions when navigating the real estate process,” Hawk said. “We are committed to providing the resources and guidance needed for buyers, sellers and agents to thrive under these updated laws.”

For more details about House Bill 466 and to view additional resources, visit com.ohio.gov/HB466.

About the Division of Real Estate and Professional Licensing
The Division of Real Estate & Professional Licensing is part of the Ohio Department of Commerce. The department is Ohio’s chief regulatory agency, focused on promoting prosperity and protecting what matters most to Ohioans. We ensure businesses follow the laws that help them create jobs and keep Ohioans safe. To learn more about what we do, visit our website at www.com.ohio.gov

 

Source: https://com.ohio.gov/about-us/media-center/news/ohio-homebuyers-take-note-real-estate-division-reminds-ohioans-about-recent-legal-changes-that-impact-the-homebuying-process