Ohio Buyer-Broker Agreement Requirements

The National Association of REALTORS® settlement introduced two practice changes that apply in Ohio and every other state:

• Written agreement before touring. An MLS participant working with a buyer must have a signed written agreement before touring a home with that buyer, in person or by live virtual tour.
• No compensation offers on the MLS. Offers of buyer-broker compensation can no longer be advertised on the multiple listing service. They are negotiated off the MLS and captured in the buyer agreement and the purchase contract.

NAR’s rules require four compensation terms in every written buyer agreement:

• The amount or rate of compensation

  A specific and conspicuous disclosure of what the agent will be paid, or how that amount will be determined: a percentage, a flat fee or an hourly rate.

• An amount that is objectively ascertainable

  It must be possible to work out the amount from the agreement. Open-ended terms such as “whatever the seller offers” are not allowed.

• No more than the agreed amount

  A term that prohibits the agent from receiving more compensation, from any source, than the amount or rate in the agreement.

• A statement that fees are negotiable

  A conspicuous statement that broker fees and commissions are not set by law and are fully negotiable.

Also read before signing. These are not part of NAR’s four terms, but your form or state law may set them:

• Term and end date

  One home, one day of showings, or a longer search: NAR’s rules leave the length to you and the agent.

• Termination and protection period

  How either side can end the agreement, and whether the agent is still owed a fee for homes you saw together after it ends.

• Exclusive or not

  Whether you may work with other agents at the same time.

• Needed: before an MLS-participant agent tours a home with you, whether in person or by live virtual tour. A “home” here means a property with one to four units.
• Not needed: to talk to an agent at an open house, or to ask an agent about their services.
• Earlier is allowed: you can sign before the first tour, and some state laws require it.

Compensation is negotiated on every deal and can come from several sources, alone or combined:

• The seller, as an offer of compensation made off the MLS.
• A seller concession negotiated into the purchase contract.
• The buyer, directly, under the buyer agreement.

Sellers can still list concessions on an MLS, but those concessions cannot be conditioned on the buyer using a broker. Working the seller side? The seller net sheet and commission calculator show how compensation and concessions change the numbers.

Licensing regulator

Ohio Division of Real Estate and Professional Licensing. Licenses agents and handles complaints.

REALTOR® association

Ohio REALTORS®. Publishes standard forms many members use; your brokerage may use its own.