Key Takeaways
- Ohio agency law is governed by ORC 4735.53-.74, requiring written agency agreements
- Ohio recognizes client relationships (buyer or seller agency) and customer relationships
- Written agency disclosure must be provided at first meaningful contact before confidential information is shared
- The Consumer Guide to Agency Relationships must be provided to all prospective clients and customers
- Ohio allows limited dual agency with informed written consent from both parties
Ohio Agency Relationships Overview
Important: This content covers Ohio-specific agency law. You should complete the National Real Estate Exam Prep first, as agency concepts are also tested on the national portion.
Ohio has specific statutory requirements for agency relationships in real estate transactions under ORC 4735.53-.74.
Key Ohio Agency Definitions
| Term | Definition |
|---|---|
| Client | Party who has entered into a written brokerage agreement |
| Customer | Party receiving ministerial acts without representation |
| Agency | Fiduciary relationship between broker and client |
| Ministerial Acts | Routine acts without discretion or representation |
Creating Agency Relationships
In Ohio, an agency relationship is created by:
- Written brokerage agreement signed by both parties
- Agreement specifying the type of representation
- Disclosure of compensation terms
- Acknowledgment of duties owed
Exam Tip: A verbal agreement is NOT sufficient to create a client relationship in Ohio. The relationship must be in writing.
Consumer Guide to Agency Relationships
Ohio requires brokers to provide the Consumer Guide to Agency Relationships:
When to Provide
| Situation | Timing |
|---|---|
| In-person contact | At first substantive discussion |
| Open house | Before substantive discussion |
| Phone inquiry | Before sharing confidential information |
Purpose of the Consumer Guide
The Consumer Guide explains:
- Different types of agency relationships
- Duties owed to clients vs. customers
- How dual agency works
- The importance of written agreements
Types of Agency Relationships
Seller Agency
When a broker represents a seller:
| Duty | Description |
|---|---|
| Loyalty | Put seller's interests first |
| Obedience | Follow lawful instructions |
| Disclosure | Reveal all material information to seller |
| Confidentiality | Protect seller's private information |
| Accounting | Handle funds properly |
| Care | Act competently and diligently |
Buyer Agency
When a broker represents a buyer:
- Same fiduciary duties owed to buyer
- Written buyer representation agreement required
- Must disclose material facts to buyer
- Cannot disclose buyer's confidential information to seller
Customer Status
A customer receives only ministerial acts:
| Ministerial Acts | Description |
|---|---|
| Providing forms | Standard contracts and documents |
| Scheduling | Appointments and showings |
| Delivering documents | Without advice or negotiation |
| Factual information | Property details without opinion |
Agency Disclosure Requirements
First Substantive Contact
Disclosure must occur at first meaningful contact:
- Discussion of property specifics
- Financial qualification discussions
- Motivation or urgency revealed
- Before any confidential information shared
What Must Be Disclosed
| Requirement | Detail |
|---|---|
| Who broker represents | Seller, buyer, or both |
| Type of relationship | Client or customer |
| Duties owed | Fiduciary or ministerial |
| Compensation source | Who pays the broker |
Agency Confirmation
Before signing a purchase agreement, Ohio requires written confirmation of agency relationships to all parties.
What document must Ohio brokers provide to all prospective clients and customers?
In Ohio, what is required to create a client relationship?