§ 4735.56. Written brokerage
policy on agency to be given to prospective sellers and purchasers.
(A) Each brokerage shall develop a written brokerage policy on agency to be given to prospective sellers and purchasers in accordance with divisions (C) and (D) of this section.
(B) The brokerage policy on agency described in division (A) of this section shall include all of the following information:
(1) An explanation of the permissible agency relationships available under section 4735.53 of the Revised Code and the duties that the agent owes the agent's client;
(2) The brokerage's policy on representation of purchasers or sellers;
(3) Whether at some time during the agency relationship the brokerage and
its licensee may act as a dual agent, and the options and consequences for the
client if a dual agency situation arises including the right of the client to
terminate the agency relationship and seek representation from another
source;
(4) Whether at some time during the agency relationship, another licensee
affiliated with the same brokerage as the licensee may become the exclusive
agent for the other party in the transaction and whether each licensee will
represent only the interests of that licensee's client;
(5) The brokerage's policy on cooperation with other brokerages, including
whether the brokerage offers compensation to other brokerages or will seek
compensation from other brokerages;
(6) That a brokerage that has a purchaser as a client represents the
purchaser's interests even though the seller's agent or the seller may
compensate that purchaser's brokerage;
(7) That the signature of the purchaser or the seller indicates
acknowledgement of receipt of the brokerage policy on agency.
(C) A licensee acting as a seller's agent shall provide the seller
with the brokerage policy on agency described in this section prior to
marketing or showing the seller's real estate and shall obtain a signature from
the seller acknowledging receipt unless the seller refuses to provide a
signature. If the seller refuses to provide a signature, the licensee shall
note this on the policy.
(D) A licensee working directly with a purchaser in a real estate
transaction, whether as the purchaser's agent, the seller's agent, or the
seller's subagent, shall provide the purchaser with the brokerage policy on
agency described in this section and obtain a signature from the purchaser
acknowledging receipt of the policy unless the purchaser refuses to provide a
signature. If the purchaser refuses to provide a signature, the licensee shall
note this on the policy. Except as provided in division (E) of this section,
the licensee shall provide the brokerage policy on agency to a purchaser prior
to the earliest of the following actions of the licensee:
(1) Initiating a prequalification evaluation to determine whether the
purchaser has the financial ability to purchase or lease a particular real
estate property;
(2) Requesting specific financial information from the purchaser to
determine the purchaser's ability to purchase or finance real estate in a
particular price range;
(3) Showing the real estate to the purchaser other than at an open
house;
(4) Discussing, with the purchaser, the making of an offer to purchase or
lease real estate;
(5) Submitting an offer to purchase or lease real estate on behalf of the
purchaser.
(E) If the earliest event described in division (D) of this section is
by telephone or electronic mail, the licensee shall disclose by that same
medium the nature of the agency relationship that the licensee has with both
the seller and the purchaser. The licensee shall provide the purchaser with the
brokerage policy on agency described in this section at the first meeting with
the purchaser following this disclosure of the agency relationship.
(F) A licensee acting as a seller's agent is not required to provide a
purchaser with the brokerage policy on agency described in this section except
in the case of an event described in division (D) of this section.
(G) The requirements of this section regarding provision of a
brokerage policy on agency do not apply in any of the following
situations:
(1) The rental or leasing of residential premises as defined in section
5321.01 of the Revised Code, if the rental or lease agreement can be performed
in eighteen months or less;
(2) The referral of a prospective purchaser or seller to another
licensee;
(3) Transactions involving the sale, lease, or exchange of foreign real
estate as defined in division (E) of section 4735.01 of the Revised Code;
(4) Transactions involving the sale of a cemetery lot or a cemetery
interment right.
HISTORY: 150 v S 106, § 1, eff.