North Columbus News

On July 24, Governor Mike DeWine signed House Bill 466, which mandates that all licensed real estate professionals involved in residential real estate transactions must enter into written agency agreements with their clients. This legislation, introduced following the National Association of REALTORS® (NAR) settlement, aims to standardize practices across the state and ensure consistent use of these agreements.

House Bill 466 will bring several changes:

The law requires all real estate licensees engaged in residential real estate transactions to enter into written agency agreements before performing specific activities on behalf of a buyer or 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. REALTORS subject to the NAR settlement will need to execute written agency agreements with buyers prior to “touring a property” as per the settlement requirements.

Under House Bill 466, written agency agreements must include:

- 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.

Additionally, House Bill 466 expands when brokerage policies on agency must be provided to include when parties enter into a written agency agreement. It also broadens when written consent and notification are required if a broker or salesperson wishes to change whom they represent under a written agency agreement.

House Bill 466 will take effect on October 24th, 2024.