Buyer Guide: Representation
Bill 466 Changed the Game in Ohio Real Estate
A lot was said during the summer about the National Association of REALTORS settlement and what it meant for the real estate industry. It was important, but Bill 466 changed the game legally for those buying real estate through an Ohio Realtor.
The agreement, signed into law by Governor Mike DeWine in 2024, codified the buyer side of the real estate transaction. We have for years been required to have a listing agreement to market a property for sale, now we have to have a buyer agreement to show a buyer property.
What does this mean for me?
It means that you will be required to sign a buyer’s agreement before seeing any property for sale in the state of Ohio. There is no exception in this agreement for commercial real estate in the Ohio law like there is in the NAR settlement. So every broker should be sending you a buyer representation agreement and a consumer guide while at it, but that’s another post.
What’s in the Buyer’s Agreement
To be a legal buyer’s agreement the contract is required to have a few things.
- Start Date — The date it will go into effect.
- End Date — The last day the agency is enforceable for
- Exclusive or Non-Exclusive Agreement — In an exclusive agreement you are agreeing to work only with this agent and the agent earns a commission on any property you purchase during the agency period. Non-exclusive provides you with protection without being locked into this one agent. There are pros and cons to each one.
- Compensation Amount & Manner — The amount of compensation – either as a percentage or dollar amount – and how it will be paid if you purchase property with this particular agent.
Now most agreements will include numerous other provisions to protect you and the brokerage. Toby and The Exchangors utilize the Columbus Realtors buyer’s agreement for his residential and commercial clients.
Do I have to sign it?
Essentially, yes. You are welcome to negotiate any of the terms in the agreement however if you are going to utilize a buyer agent in real estate then Ohio law will require you to sign this document.
If you have any additional questions or concerns about the buyer’s agreement or the consumer guide to agency documents reach out to Toby via email at [email protected] or by phone or text at 419-618-8629.