Buyer Compensation Rules
In Cincinnati, new rules have been implemented regarding buyer compensation in real estate transactions as part of broader changes across Ohio. These changes are part of a broader effort to improve transparency in real estate transactions and ensure that all parties clearly understand the terms and responsibilities involved. Starting in August 2024, the following key points are important for both buyers and sellers to be aware of:
Buyer Representation Agreement:
Buyers are now required to have a formal agreement with their real estate agent, known as a Buyer Agency Agreement. This document outlines the terms of the relationship, including how and when the agent will be compensated, ensuring transparency and protecting both parties' interests.
MLS Changes:
All MLS services are now mandated to remove any offers of compensation (commissions) from their listings. This means that the details of how agents are compensated must be negotiated directly within the purchase agreement between the buyer and seller, rather than being pre-determined or inferred from the MLS listing.
Negotiating Compensation:
Compensation for buyer agents can now be part of the broader negotiation in the purchase agreement. This allows flexibility in determining whether the buyer or seller will cover certain costs, such as the buyer’s agent commission.
