Ohio House Introduces Real Estate Representation Legislation
By: Stephen Ciacchi, Ohio REALTORS Director of Political Affairs
Ohio made progress towards establishing a standard for written representation agreements in the real estate industry with the introduction of HB 466. This legislation would require a licensed real estate broker to enter into written representation agreements with their clients.
HB 466 was introduced by Reps. Jean Schmidt (R-Loveland) and Sean Brennan (D-Parma). The bill would establish a statewide standard for written representation agreements between real estate professionals and their clients. The need for this legislation stems from a settlement reached by the National Association of Realtors - Settlement. Under the terms of the settlement, Realtors participating in a Multiple Listing Service (MLS) will need to enter into representation agreements with their buyers. The terms of the settlement also prohibit offers of broker compensation on the MLS.
Because of these changes, it is imperative that Ohio establish a uniform standard throughout the state for what representation agreements must contain and when they must be entered into by a consumer and real estate broker.
These agreements will improve transparency in the homebuying process as it will ensure consumers have a clear understanding of the services being provided by the brokerage and the terms of the commission structure. It will also help brokerages and their clients avoid disputes with their clients.
HB 466 will ensure Ohio’s consumers, brokerages, and agents are aware of and agree to the terms of representation and commission structure. “This important bill will improve transparency and promote uniformity throughout the homebuying process, ultimately protecting all parties involved,” said Schmidt.
HB 466 will be assigned to a committee and we hope it will receive swift consideration by the House of Representatives.
A link to the legislation can be found here: House Bill 466 | 135th General Assembly | Ohio Legislature
