Local Agent in Charge - What does it mean? | Akron Cleveland Association of REALTORS

Over the years, a few cities throughout Ohio, including some in northeast Ohio, have passed ordinances containing “local agent in charge” components.

What is “Local agent in charge?”
At its core, when a city passes this type of regulation, it requires that the owner of a non-owner occupied property identify a local person or entity that is an additional responsible party to contact when an issue arises with said property. Often, we see this requirement when the owner is not local. Generally speaking, it is associated with rental properties but depending on the ordinance, others could be included.

Recently, this topic has received a lot of attention due to the passage of Ordinance 1039-2023, commonly referred to as Residents First, in Cleveland, Ohio.

What does this mean for my business?
It depends on the city and its ordinance language. These ordinances vary in scope.

For example, in Cleveland, a local agent in charge must be identified if the property is not owner-occupied. However, if the owner lives in Cuyahoga County or a contiguous county, the owner may be listed as the local agent in charge. If the owner does not meet that residency requirement, another human being must be identified as the local agent in charge. If a problem arises with the property, the City will attempt to contact the owner and hold them accountable. However, if that effort fails, the local agent is equally liable – criminally and civilly – for any fees, fines, etc. associated with the property.

Has ACAR advocated for its members’ protection?
Yes. We have engaged in Cleveland and other communities on this very topic over the years. Our position is that REALTORS® are trusted advisors serving as a conduit of information for their clients. They should never be liable for a property owner’s liability. In Cleveland, the City Council amended the ordinance to include language that the owner must indemnify the local agent in charge. They also have added that the local agent must sign off on agreeing to serve in said capacity. That form must be witnessed and notarized.

Any recommendations?
ACAR recommends that brokers and agents carefully review relevant laws and regulations in communities with this type of policy. You may want to consult with your legal counsel to confirm your potential liability and risk if/when a licensee agrees to serve as an out-of-town owner’s local agent in charge.

A full list of the cities with a known local agent policy is below. Descriptions to follow. Again, these vary by municipality.