What you're signing when you sign an exclusive buyer agency agreement
Before I can show anyone a house now, I have to ask them to sign something first. That's the rule in Ohio. And I understand why it makes people uneasy, because how do you know if you want to work with someone before they’ve even shown you a house yet?
Most of what you'll find online about this is written by people who want you to sign without asking questions, or by people who want you to think every agent asking is running a scam. Neither one helps you. So here's the version I give clients at the kitchen table, including the parts that are fair to push back on.
Why you're being asked to sign before you see a house
Ohio now requires a written buyer representation agreement before an agent shows you a property.
The short version is that the industry spent decades in a situation where buyers didn't know who their agent worked for or how that agent got paid. The written agreement was supposed to fix that by putting it in writing up front. Whether it fixed it depends a lot on whether the person handing you the form explains it or just points at the signature line.
What the agreement actually does
It does three things. It names me as your representative, it defines what I owe you, and it says how I get paid.
The part people focus on is exclusivity, and that's fair, because exclusive means that during the term, I'm your agent for the properties and area covered. If you buy inside that scope with someone else, the agreement still governs what happens with compensation.
The part people skip is the duties section, and that's the part that protects you. Those duties are the reason the document exists. They're also the thing you lose when you wander into a listing agent's open house on a Sunday and start telling them your real budget.
Four things to read before you sign
How long a buyers agreement lasts:
Every agreement has a term. Longer isn't automatically worse and shorter isn't automatically safer, but you should know the number before you sign it rather than after.
If you're new to Central Ohio and not sure yet whether we're a fit, a shorter initial term is a completely reasonable thing to ask for. I've never been offended by that request. Someone who's offended by that request is a red flag.
How wide does a buyers agreement goes:
Scope covers geography and property type. An agreement that covers all of Central Ohio behaves differently from one that covers a specific set of suburbs, and one that includes investment property behaves differently from one limited to a primary residence.
How to get out of a buyers agreement:
There's a termination provision that covers things like cancellation terms, notice requirements, and any protection or holdover period in the Ohio form used by the brokerage. Read it.
Buyers agreements can end early if both parties agree.
I tell people the same thing every time. If this isn't working, I would rather know in week three than have you feel stuck for six months. Any agent who is holding a client hostage with a buyers agreement is a red flag.
How a buyers agents get paid:
This is the section that generates the most anxiety and the most confusion. The agreement states the compensation, where it's expected to come from, and what happens if the seller's side offers less than that amount.
Ask the direct question. What do I owe you, in what situation, and what happens if the listing side pays less than this number. You should know that before signing.
Common questions
-
In Ohio, a written agreement is required before an agent shows you a property. The requirement is that it exists in writing, and the specific terms inside it are a separate matter from whether one is required at all.
-
Exclusive means one agent represents you for the scope and term described. Non-exclusive allows you to work with more than one.
-
Through the termination provision in the document. Before you go looking for the exit language, tell the agent what isn't working.
Give them a chance to correct the issue — or straight up ask them if they will let you out of the contract.
-
If you trust the person and you understand the four items above, yes.
If you don't trust the person, the agreement isn't the problem.
Before you sign anything
The document matters less than the person handing it to you, and I would still read the document. Ask what the term is, what the scope covers, how you get out, and what you owe in each scenario. Any agent worth hiring will answer all four without getting defensive, and the ones who get defensive have just saved you a lot of time.
If you're starting a search in Central Ohio and you want someone to walk you through the form line by line before you commit to anything, let's talk strategy.
The Mancini Group
mandy@themancinigroupsells.com
614-796-5077
