House Bill 466 to take effect on October 24th, 2024
Sep 26, 2024
On July 24th, Governor Mike DeWine signed House Bill 466, requiring all licensed real estate professionals involved in residential real estate transactions to enter into written agency agreements with their clients. This critical legislation, introduced in light of the National Association of REALTORS® (NAR) settlement, establishes a standard throughout the state and will ensure consistent use of these agreements.
House Bill 466 will make the following changes:
- The law will require all real estate licensees engaged in residential real estate transactions to enter into written agency agreements before engaging in specific activities on behalf of a buyer or a seller.
- For those representing sellers, the agreement must be executed before marketing or showing the seller’s residential property.
- For those representing buyers, the agreement must be executed before submitting an offer to purchase residential property on behalf of a purchaser or making an offer to lease a residential property if the lease is for 18 months or longer. (Please note, REALTORS who are subject to the terms of the NAR settlement will need to execute written agency agreements with buyers prior to “touring a property” per the requirements established in the settlement).
- Under House Bill 466, written agency agreements must contain the following:
- An expiration date;
- A statement that it is illegal to deny housing accommodations based on race, color, religion, sex, familial status, ancestry, military status, disability, or national origin;
- A statement about the illegality of “blockbusting;”
- A copy of the U.S. Department of Housing and Urban Development Equal Housing Opportunity logotype;
- A statement that the broker or salesperson is appointed as an agent of the client;
- An indication of whether the agency relationship is exclusive or nonexclusive;
- The terms by which the broker or salesperson is to be compensated;
- A conspicuous statement that broker fees and commissions are not set by law, are fully negotiable, and may be paid by any party to the transaction or a third party.
- House Bill 466 expands the triggers for providing a brokerage policy on agency to include the time when parties enter into a written agency agreement.
- This law additionally expands the triggers for the requirement for written consent and notification when a broker or salesperson wishes to change the party they are representing to include situations where the representation is established through a written agency agreement.
House Bill 466 will take effect on October 24th, 2024. Below are additional links with helpful information:
House Bill 466 - House Bill 466 - Text
House Bill 466 Analysis - House Bill 466 Analysis
Ohio Division of Real Estate - Ohio Division of Real Estate Resources
