Legislation standardizing written representation agreements passes house committee
By Anastasia Kotkovskaya Ohio REALTORS Manager, Advocacy and Research
Ohio REALTORS commends the House Civil Justice Committee for its recent passage of House Bill (HB) 466, a crucial step forward in improving transparency in the real estate industry.
HB 466 would establish standards for written agency agreements between brokerages and their clients, ensuring that both parties are informed of the services to be provided and the terms of compensation for the real estate professional. These agreements would need to be entered into before showing a property for a seller or presenting an offer for a buyer. This bill sets guardrails for the use of these agreements and secures key elements of the relationship:
- An expiration date,
- Information on fair housing and blockbusting laws,
- Whether the relationship is exclusive or nonexclusive, and
- Terms of compensation
A change resulting from the recent settlement reached by the National Association of Realtors (NAR) is that Realtors participating in MLS and assisting homebuyers will now be responsible for entering into written agency agreements with their clients. Due to the shift, codifying this practice into state law is imperative for ensuring fairness within Ohio’s real estate industry. HB 466 aims to provide clarity to these changes by establishing this practice as a statewide standard, ensuring uniformity and consistency for all real estate professionals. Entering into written agency agreements has been strongly encouraged by Ohio Realtors for some time now, as it fosters transparency and mutual understanding between the parties involved in real estate transactions.
Similar legislation has been enacted in 20 other states, including Indiana and Pennsylvania. Ohio Realtors testified in support of this measure in committee, and we are hopeful that the Ohio House of Representatives will bring this important legislation to a floor vote in the coming weeks.
Read previous post regarding this issue: Ohio REALTORS President Ali Whitley testifies on written agency agreements.
More information on this bill: HB 466 | 135th General Assembly | Ohio Legislature
