Updates to Real Estate Agreements and Listings Go into Effect by August 17
New rules implemented nationwide as a result of a settlement involving the National Association of REALTORS
Two new rule changes surrounding real estate transactions will take effect nationwide by August 17. A lawsuit settlement agreement involving the National Association of REALTORS® (NAR) will introduce new industry requirements affecting home buyers and sellers.
The settlement contains two key changes effective no later than August 17:
A written agreement will be required between REALTORS® and their clients, outlining the terms of REALTOR® compensation. For buyers, the agreement must be signed before touring a home with their REALTOR®. This change will soon become Ohio state law with the passage of House Bill 466 which requires the use of written agency agreements between real estate professionals and their clients.
Real estate professionals will be prohibited from offering cooperative compensation on listings on Multiple Listing Service (MLS) databases. This includes all listing types - residential, commercial, rentals that appear on the MLS. Buyers and sellers can still negotiate compensation arrangements directly with real estate professionals outside of the MLS. Additionally, sellers may continue to offer buyer concessions, such as closing cost contributions on the MLS.
Ali Whitley, 2024 president of Ohio REALTORS®, emphasizes that these changes will enhance transparency, ensuring that REALTOR® compensation and services are clearer to consumers. "The purpose is to improve the home buying and selling process by making sure consumers are well-informed and empowered throughout their journey," said Whitley.
Moving forward, homebuyers should expect to have up-front conversations with their REALTOR® about the services provided and the associated cost. Agent compensation for home buyers and sellers remains fully negotiable and is not set by law.
Despite these changes, the benefits of working with a REALTOR® remain unchanged. "When you work with a REALTOR®, you will gain a trusted ally with the expertise to guide you through the complexities of buying or selling a home. REALTORS® serve as their client’s fiduciary and will be in your corner every step of the way," said Whitley.
While the changes officially go into effect on August 17, Ohio REALTORS® has encouraged its members to adopt them earlier this summer, ahead of the official implementation date.
"Buyers and sellers will still have numerous options when deciding to purchase or sell a home, and REALTORS® will always apply their expertise, care, and diligence to safeguard their clients' interests,” said Whitley.
Consumers can find additional information on what these changes mean for their homebuying and selling experiences in NAR’s buyers and sellers guides.
Ohio REALTORS, with more than 36,000 members, is the largest professional trade association in Ohio. Leading with expertise, professionalism and an entrepreneurial spirit, REALTORS in Ohio are committed to their clients and communities.
Ohio REALTORS Communications Group
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