Most sellers of real estate choose to list their home for sale with a real estate brokerage (vs. selling FSBO). When they do so, they sign a listing agreement that authorizes the brokerage and the listing agent to represent their interests. As the seller’s agent, the brokerage and listing agent must: follow the seller’s lawful instructions, be loyal to the seller, promote the seller’s best interests, disclose material facts to the seller, maintain confidential information, act with reasonable skill and care and, account for any money they handle in the transaction. In rare circumstances, a listing broker may offer “subagency” to other brokerages which would also represent the seller’s interests and owe the seller these same duties.

When purchasing real estate, buyers usually choose to work with a real estate agent as well. Often the buyers want to be represented in the transaction. This is referred to as buyer’s agency. A brokerage and agent that agree to represent a buyer’s interest in a transaction must: follow the buyer’s lawful instructions, be loyal to the buyer, promote the buyer’s best interests, disclose material facts to the buyer, maintain confidential information and account for any money they handle in the transaction.

Occasionally the same agent and brokerage that represents the seller also represent the buyer. This is referred to as dual agency. When a brokerage and its agents become “dual agents,” they must maintain a neutral position in the transaction. They may not advocate the position of one client over the best interests of the other client or disclose any confidential information to the other party without written consent.

On occasion, the buyer and seller will each be represented by two different agents from the same brokerage. In this case, the agents may each represent the best interest of their respective clients. Or, depending on company policy, the agents may both act as dual agents and remain neutral in the transaction. When either of the above occurs, the brokerage will be considered a dual agent. As a dual agent, the brokerage and its managers will maintain a neutral position and cannot advocate for the position of one client over another. The brokerage will also protect the confidential information of both parties.

It is illegal, pursuant to the Ohio fair housing law, division (H) of section 4112.02 of the Revised Code, and the federal fair housing law, 42 U.S.C.A 3601, to refuse to sell, transfer, assign, rent, lease, sublease, or finance housing accommodations, refuse to negotiate for the sale or rental of housing accommodations, or otherwise deny or make unavailable housing accommodations because of race, color, religion, sex, familial status as defined in section 4112.01 of the Revised Code, ancestry, military status as defined in that section, disability as defined in that section, or national origin, or to so discriminate in advertising the sale or rental of housing, in the financing of housing, or in the provision of real estate brokerages services. It is also illegal, for profit, to induce or attempt to induce a person to sell or rent a dwelling by representations regarding entry into the neighborhood of a person or persons belonging to one of the protected classes.

Real estate agents typically do not receive any compensation unless they successfully complete a real estate transaction. The commission is paid after the closing of the home/property when title is transferring from the seller to the buyer. The seller pays the listing brokerage the commission for selling the home/property and may include compensation for the buyers brokerage. Sometimes the commission is equally split between the selling brokerage and buyers brokerage, while other times the listing broker takes more of the commission. Buyers will need to sign a buyers agreement with their buying agent before touring homes and may be responsible for part or all of the buyers brokers compensation. Buyers also pay an administration fee to the buyers brokerage at the time of closing. Brokerage and or Administration fees are normally $250-600.