According to Ohio law, ALL
Realtors must give every potential Buyer their company's
"Consumer Guide to Agency Relationships"
BEFORE
showing you any homes. You have the LEGAL
RIGHT
to know if a Realtor and their company practices Dual
Agency or Split Agency. The Consumer Guide
contains a statement that Realtors are REQUIRED
to give Buyers their Guide, and it must
also have a place for Buyers to SIGN,
indicating you received a Guide.
If
a Realtor showed you a home, and you were NOT
given a "Consumer Guide to Agency Relationships,"
you may want to contact an attorney or the
Ohio Department of Commerce, Division of Real Estate &
Professional Licensing at (614) 466-4100 or Ohio
Division of Real Estate.
Ohio
law further states that
Realtors
are required to provide Buyers with their company's "Consumer
Guide to Agency Relationships" before the
earliest of the following events:
-
Pre-qualifying
a Buyer for a loan
-
Requesting
specific financial information from a Buyer
-
Showing
property to a Buyer (Open Houses are exempted)
-
Discussing
the making of an offer with a Buyer
-
Submitting
an offer on behalf of a Buyer
In
Ohio, there are 5 recognized types of agency. The
type of agency practiced by a real estate company will determine
who the company and its Realtors will represent - or
NOT
represent - during your purchase of a home. Real
estate companies are allowed to create their own company
versions of the "Consumer Guide to Agency Relationships,"
as long as it complies with Ohio license law.
1)
Split Agency: A real estate company that lists
property as a seller's agent, but acts as a "buyer's
agent" on other companies' listings. During
in-house transactions, when there's TWO Realtors involved
with a listing, ONE works for the buyers, while ANOTHER
Realtor - from the SAME company - works for the sellers.
When there's just ONE Realtor acting as both seller's
agent AND as buyer's agent, then he/she is a Dual Agent.
Companies that practice Split Agency are supposed to protect
confidential information within their office. But how can
they guarantee it?
2)
Dual Agency: A company
that "represents" sellers and buyers, but these
Realtors are always Dual Agents
on every in-house transaction. This agency is for
companies that don't believe they can protect confidential
information between
the Realtors in their office. Although
a Dual Agent is often hired first by the sellers for selling
their home, the law requires
Dual
Agents to remain "neutral" towards Buyers - and
they cannot advocate OR negotiate OR protect the Buyer's
best interests. When
a Dual Agent/Realtor is hired first by a seller - whether
it's a relative, or a friend, or golf buddy, or just a seller
- how confidential will the Buyer's confidential information
remain?
3)
Split
Agency/No Dual:
A company that lists homes, represents buyers, practices
Split Agency, and not Dual Agency. But when the
buyer wants to purchase a home listed with his/her "buyer's
agent," the agency relationship with the Buyer is terminated,
and the Realtor will represent only the seller. How's
that grab you for loyalty to a Buyer?
4)
Exclusive Seller Agency only: A real estate brokerage
that lists property for sellers and acts as a subagent of
the seller on other broker's listings. Buyers are
treated as customers by these Realtors. Dual agency
is not practiced by this type of company.
5)
Exclusive Buyer Agency only: A
real estate company that
ONLY
REPRESENTS BUYERS.
This company does NOT take listings, does NOT practice Seller
Agency, does NOT practice Split Agency, does NOT practice
Dual Agency. Buyers are CLIENTS - not customers. The Buyer's
confidential information IS PROTECTED and remains CONFIDENTIAL.
This
company CAN GUARANTEE LOYALTY to the Buyers.
THE
BUYER’S AGENT, Buyer Broker Real Estate practices
genuine Exclusive
Buyer Agency ONLY, and is the BEST choice for all Buyers.
Unlike the traditional Realtor - who starts as your "buyer's
agent" but will CHANGE to practice either Dual Agency
and/or Split Agency - we are ALWAYS on the Buyer's side,
protecting the Buyer's best interests from start to finish!