Ohio REALTORS President Ali Whitley Testifies on Written Agency Agreement
April 9, 2024
By Stephen Ciacchi, Ohio REALTORS Director of Political Affairs
Ali Whitley, the 2024 President of Ohio REALTORS, testified before the House Civil Justice Committee in support of House Bill 466, which aims to set a standard for written representation agreements in the real estate industry.
Ohio REALTORS has long advocated for the use of written representation agreements in real estate transactions. Due to the National Association of REALTORS' settlement regarding broker commissions, the real estate industry will be undergoing unprecedented changes. The use of standard written representation agreements throughout the state of Ohio will protect Ohioans and real estate professionals during the home buying process.
According to President Whitley, "This will improve transparency within the home buying process by informing the consumer of the services to be provided as well as the commission structure." She further stated that "it will also protect the real estate professional from disputes over services provided and terms of compensation."
While the recent settlement requires written agreements for REALTORS representing buyers, it does not apply to all licensed real estate professionals. This will result in uncertainty and confusion about whether an agreement needs to be used, when to use it, and what information should be included.
President Whitley noted in her testimony that:
"HB 466 is an effort to provide some clarity to the changing industry practices. By establishing a statewide standard for all licensed real estate professionals, we ensure everyone is operating under the same rules and guidelines. HB 466 would require written representation agreements to be entered into for all licensed real estate brokers and their clients. It also establishes what would need to be included in these agreements, specifically whether the agreement is exclusive or nonexclusive and that it contains the terms of compensation."
With the industry constantly evolving, House Bill 466 will give Ohioans and real estate professionals an additional sense of trust through increased transparency and communication.
House Bill 466 is pending in the House Civil Justice Committee. President Whitley’s testimony can be viewed through the following link around the 42 minute mark: Ohio House Civil Justice Committee | The Ohio Channel
