The Ohio Division of Real Estate and Professional Licensing has outlined important changes following recent legal and legislative decisions that affect the home buying and selling process. Below are key questions and answers to help you understand what’s changed and what remains the same.
What has changed in Real Estate because of the NAR settlement?
Previously, an agent could show you a property without requiring an agency agreement. Now, you must sign a buyer agency agreement before your agent can show you any property.
- The agreement must include a start and end date.
- It can be either exclusive or non-exclusive, dictating how commissions are handled.
- The agreement must state the agent’s compensation details.
When do these real estate changes go into effect?
- Realtor members: As of August 17, 2024.
- All licensed agents in Ohio: By October 22, 2024, following House Bill 466 signed by Gov. Mike DeWine.
Can I get out of a real estate agreement with a buyer agent?
This depends on the agreement. Consult the broker or legal counsel for assistance with canceling the agreement.
Do I need to sign an agreement for an open house?
No, you don’t need to sign a buyer agency agreement when attending an open house.
If I’m the buyer, do I have to pay my own real estate agent’s fees?
Possibly, but sellers may opt to cover buyer agent fees as an incentive to attract buyers.
- The MLS listing may no longer include this compensation, and it will need to be handled through agent negotiations and a written agreement.
What if the seller refuses to compensate my real estate agent?
As the buyer, you will have signed an agency agreement outlining your agent’s compensation, so the terms will already be established.
- The agent cannot receive more than what’s agreed upon, even from an additional source of compensation.
Do I have to pay a retainer fee?
Some buyer agents may charge a non-refundable retainer fee, which is applied toward the total commission at closing. Check with your agent about this before signing any agreements.
As a seller, do I have to pay the buyer agent’s fees?
Commissions are still negotiable. You may offer to cover the buyer agent’s fees to encourage offers, but this must be included in the purchase contract.
Can the listing agent show me the house instead of securing my own real estate agent?
It depends on the seller’s decision. However, the listing agent represents the seller, so it’s best to keep confidential information private to protect your negotiating position.
Can I use the seller’s real estate agent to purchase a home?
Possibly, through dual agency, where the same agent represents both buyer and seller. The agent must remain neutral and cannot disclose confidential information without written consent.
Can I write an offer without an agent?
Yes, you can write an offer independently, but you will need to decide if you want no representation, dual agency, or a buyer agent.
Can I represent myself without a real estate agent?
Yes, but it comes with risks. Without representation, the seller’s agent will draft the offer based on your instructions but will not offer advice. This approach is not recommended unless you have experience in real estate transactions.
Read more about these changes on the NAR’s website or call us today to see how we can help you get the most money for your home or get you into your dream home!
