What Changed After the NAR Settlement
As of August 2024, the National Association of Realtors settlement introduced significant changes to buyer representation practices. One major outcome: MLS rules now prohibit listing agents from offering buyer agent compensation through the MLS in many markets, and agents who show homes to buyers are required to have written buyer representation agreements in place before touring.
Ohio adopted the required written buyer agreement prior to showing rule as a result of the NAR settlement. Here's what that means for Columbus buyers.
What Is a Buyer Representation Agreement?
A buyer representation agreement is a written contract between a buyer and their agent (or brokerage) that establishes the terms of representation. It typically defines:
- The scope of the agent's services
- The duration of the representation
- The geographic area covered
- The compensation structure (how the agent is paid)
- The buyer's obligations during the agreement period
In Ohio, agents are now required to have a signed buyer agreement in place before showing a buyer a property.
What Are Your Rights as a Buyer?
You have the right to negotiate the terms of a buyer agreement before signing. Key points to discuss:
- Duration: Agreements can be for a single showing, a defined period (30–90 days), or longer. You can negotiate a shorter initial term.
- Exclusivity: Some agreements are exclusive (you work only with that agent); others are non-exclusive. Understand what you're signing.
- Compensation: The agreement should specify how the agent is compensated. In many cases, the buyer may ask the seller to pay the buyer agent compensation as part of a purchase offer — this is still permitted and common.
- Termination: Understand the conditions under which either party can end the agreement.
Is This a Problem for Buyers?
Not if you handle it thoughtfully. The key is to interview agents before committing to a longer-term agreement. A short initial consultation or limited-scope agreement for a single showing allows you to evaluate the agent's knowledge and approach before entering a broader relationship.
Reputable agents welcome questions about their agreements and explain the terms clearly. An agent who pressures you to sign without explanation or resists any discussion of terms is a red flag.
How Compensation Works Now
Buyer agent compensation is now negotiated separately — not as part of the listing in the MLS. In practice, many sellers still offer buyer agent compensation as part of negotiated terms, or buyers may ask for a seller concession to cover it as part of their offer. Your agent should explain the current norms in your specific price range and market segment.
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