In Ohio the amount a broker may charge for commission is:
Question & Answer
Review the question and all answer choices
6.00%
A fixed rate of 6.00% is incorrect because no state law or regulation mandates a specific commission rate — stating a fixed percentage implies a legally required rate, which would itself be a form of price-fixing prohibited by federal antitrust law.
Up to 6%
Stating commissions are 'up to 6%' implies a legal cap of 6%, which does not exist in Ohio or any other state — there is no maximum commission rate established by Ohio law, and brokers and clients may agree to any rate they choose.
Up to 7%
Similarly, 'up to 7%' implies a legal ceiling that does not exist in Ohio real estate law — this answer is just as incorrect as 'up to 6%' because it falsely suggests a statutory maximum commission rate.
Negotiable in the listing contract
Why is this correct?
Answer D is correct because in Ohio, as in all U.S. states, real estate commission rates are not set by law, regulation, or any real estate board — they are entirely negotiable between the broker and the client and must be specified in the listing contract. The Ohio Division of Real Estate and Professional Licensing does not establish a maximum or standard commission rate, and any attempt by brokers to collectively agree on a standard rate would constitute illegal price-fixing under federal antitrust law. The listing agreement is the contractual document where the negotiated commission rate is memorialized.
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