OHIO LEGISLATIVE SERVICE COMMISSION
Office of Research Legislative Budget
www.lsc.ohio.gov and Drafting Office
H.B. 466 Final Analysis
135th General Assembly
Click here for LSC’s fiscal analysis of H.B. 466
Primary Sponsors: Reps. Schmidt and Brennan
Effective date: October 24, 2024
Effective date:
Austin C. Strohacker, Attorney UPDATED VERSION*
SUMMARY
▪ Requires written agency agreements for licensed brokers representing other parties in
residential real estate transactions.
DETAILED ANALYSIS
Real estate agency agreements
Former law allowed, but did not require, real estate brokers and salespersons to enter
into written agency agreements with the buyers and sellers they represent. However, if a broker
or salesperson chose to enter into such an agreement, the law imposed certain content-based
requirements. Specifically, the agreement was required to include the following:
▪ An expiration date;
▪ A statement that it is illegal to deny housing accommodations based on race, color,
religion, sex, familial status, ancestry, military status, disability, or national origin;
▪ A statement about the illegality of “blockbusting;”
▪ A copy of the U.S. Department of Housing and Urban Development Equal Housing
Opportunity logotype.
Under the act, brokers and salespersons are required to enter into written agency
agreements prior to engaging in activities on behalf of a buyer or seller in residential real estate
transactions. If the broker or salesperson is working on behalf of a seller, they must enter into
the agreement prior to marketing or showing the seller’s residential real property. If the broker
or salesperson is working on behalf of a buyer, they must enter into the agreement prior to
* This version updates the effective date.
August 20, 2024
Office of Research and Drafting LSC Legislative Budget Office
making an offer to purchase residential real property on behalf of the buyer or prior to making
an offer to lease a residential premises on behalf of the buyer for a term exceeding 18 months.
The act requires that the written agency agreement include, in addition to information
required under former law, all of the following:
▪ A statement that the broker or salesperson is appointed as an agent of the client;
▪ An indication of whether the agency relationship is exclusive or nonexclusive;
▪ The terms by which the broker or salesperson is to be compensated;
▪ A conspicuous statement that broker fees and commissions are not set by law, are fully
negotiable, and may be paid by any party to the transaction, or a third party.
The act limits the content-based requirements to residential real estate transactions. As
a result, a broker or salesperson that represents a buyer or seller in a commercial real estate
transaction, or that represents a buyer in a rental transaction for a term of 18 months or less, is
not subject to the content-based requirements added by the act or those prescribed by
continuing law.1
Brokerage policy
Continuing law requires a broker or salesperson working as part of a brokerage (i.e., a
business that is issued a broker’s license) to provide a seller with their brokerage policy on agency
prior to marketing or showing the seller’s real estate. The act specifies that, if a written agency
agreement is required, the policy must be provided at the time the parties enter into that agency
agreement.2 Under continuing law, a broker or salesperson working with a buyer must provide
the buyer with their brokerage policy prior to the occurrence of any of a list of actions. The act
adds entering into an agency agreement to the list.3
Change in representation
Continuing law requires a broker or salesperson that wishes to change the party they are
representing in a real estate transaction to do both of the following:
▪ Obtain written consent from the party they originally represented;
▪ Promptly notify all persons involved in the transaction of the original relationship.
This requirement applies after an agency disclosure statement is signed and dated by the
original party or following verbal disclosure of the agency relationship to that party. The act adds
that the requirement applies following a written agency agreement.4
1 R.C. 4735.55.
2 R.C. 4735.56(C).
3 R.C. 4735.56(D)(6).
4 R.C. 4735.59.
P a g e |2 H.B. 466
Final Analysis
Office of Research and Drafting LSC Legislative Budget Office
HISTORY
Action Date
Introduced 03-27-24
Reported, H. Civil Justice 05-01-24
Passed House (88-1) 05-08-24
Reported, S. Select Committee on Housing 06-26-24
Passed Senate (30-1) 06-26-24
House concurred in Senate amendments (92-0) 06-26-24
24-ANHB0466EN-UPDATED-135/sb
P a g e |3 H.B. 466
Final Analysis


Statutes affected:
As Introduced: 4735.55, 4735.56, 4735.59
As Reported By House Committee: 4735.55, 4735.56, 4735.59
As Passed By House: 4735.55, 4735.56, 4735.59
As Reported By Senate Committee: 4735.55, 4735.56, 4735.59
As Passed By Senate: 4735.55, 4735.56, 4735.59
As Enrolled: 4735.55, 4735.56, 4735.59