Ohio House Passes Bill to Set Statewide Standards for Real Estate Representation Agreements

COLUMBUS—The Ohio House of Representatives yesterday passed House Bill 466, legislation to establish minimum standards for written real estate representation agreements between a real estate brokerage and its clients, announced bill sponsor, State Rep. Jean Schmidt (R-Loveland).

Under this legislation, parties will be required to enter into a written representation agreement before a seller may show a property or a buyer may make an offer to purchase a property.  

“This bill promotes transparency and protects all parties involved in the homebuying process,” said Schmidt.⿯ “I look forward to seeing this commonsense legislation continue to advance in the Ohio Senate.” 

Under House Bill 466, written representation agreements must include the following: 

• An expiration date;
• Information on fair housing and blockbusting laws; 
• Whether the relationship is exclusive or nonexclusive; and
• Terms of compensation.

"Ohio REALTORS is thrilled with the passage of House Bill 466,” said Ali Whitley, Ohio REALTORS President. “Establishing a statewide standard for the use of written agreements will improve transparency within the home buying process by informing the consumer of the services to be provided as well as the commission structure. We commend Rep. Schmidt and Rep. Brennan on their work on this important issue and look forward to continuing to make the American dream of homeownership possible for consumers in Ohio."  

House Bill 466 now heads to the Ohio Senate for consideration.