Ohioans encouraged to understand real estate agency relationships on heels of changes to Ohio law
As Ohioans celebrate relationships this month, the Ohio Department of Commerce Division of Real Estate and Professional Licensing (REPL) reminds individuals to not overlook their relationship with their real estate agent.
Due to recent changes to Ohio’s real estate license law, it’s important to understand these agency relationships since they are key to building trust, making informed decisions and ensuring a successful real estate experience.
Buying or selling a home is one of the most significant financial decisions many Ohioans will make in their lifetimes, and having clarity about your relationship with your real estate agent is key. According to Ohio REALTORS, the average sales price for a home last December was $288,707.
To help consumers navigate this process as well as recent changes, the Division has released a new video resource that explains how these essential relationships work.
“We are committed to empowering consumers through education and transparency,” said Division Superintendent Daphne Hawk. “Whether you’re buying your first home or selling a long-held property, understanding agency relationships and choosing the right representation can make a significant difference. In addition, understanding how your agent will represent you is critical to ensuring your needs are met and goals are achieved during the transaction.”
Real estate professionals in Ohio can represent clients in various ways, each with distinct responsibilities and benefits. These agency relationships include the following:
• Buyer Agency – The agent works exclusively for the buyer, advocating for their best interests in negotiations, market analysis and the overall purchasing process. Ohio law requires the agent to present a buyer representation agreement before showing properties or performing services.
• Seller Agency – The agent represents the seller and focuses on marketing the property, attracting qualified buyers and securing favorable terms for the seller.
• Dual Agency – One agent works with both the buyer and seller in the same transaction. While this arrangement can simplify communication, the agent must remain neutral, serving both parties without favoring one over the other.
• Split Agency – Separate agents within the same brokerage represent the buyer and seller, ensuring both clients have exclusive and dedicated representation.
Understanding the differences between these relationships helps consumers choose the arrangement that best supports their individual goals. Some brokerages may also have policies prohibiting dual agency or may limit services to only buyer or seller representation. Your agent is required to give you their company policy on agency relationships at the outset of any services provided.
Following legislative updates last year that included the passage of House Bill 466, Ohio law now mandates a signed buyer agent agreement between the buyer and the agent before properties can be shown. This agreement can be either exclusive, which offers personalized service with a single agent, or nonexclusive, which allows buyers to work with multiple agents.
While an exclusive agreement fosters a stronger partnership, a nonexclusive agreement can provide flexibility during the early stages of the homebuying process; however, once you find an agent you feel comfortable with, it’s best to work exclusively with that agent. You can read more about how these recent changes impact you by visiting com.ohio.gov/HB466.
For more information about agency relationships, exclusive agreements and consumer resources, visit the Division’s website at com.ohio.gov/real.
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