Real Estate Agent Selling Bonuses in Ohio: What You Need to Know After the NAR Settlement
Blog, Real Estate
August 28, 2025 | Real Estate Editorial Team
The real estate landscape shifted dramatically after the NAR settlement took effect in August 2024, leaving many Ohio agents wondering how they can still earn those valuable selling bonuses. The good news? Real estate agent selling bonuses remain a powerful tool for buyer’s agents, especially in today’s competitive market. You just need to understand the new playbook to maximize your earning potential while staying compliant with both Ohio license law and NAR requirements.
Key Takeaways
- New Rules Apply: The NAR settlement changed how bonuses are communicated, but Ohio agents can still earn them by following updated documentation and communication protocols.
- Written Agreements Are Essential: Every buyer interaction requires a signed buyer-broker agreement that includes specific compensation language and bonus provisions, to be executed before any property showings.
- Communication Channels Matter: MLS fields are off-limits for bonus information, but direct broker-to-broker communication through emails, phone calls, and secure portals remains acceptable.
- Ohio Requirements Still Stand: State-specific documentation, agency disclosures, and record-keeping requirements work alongside NAR settlement rules to govern bonus transactions.
- Tax and Commission Implications: Understanding how bonuses affect your commission split and tax obligations helps you make informed decisions about pursuing bonus opportunities.
How Real Estate Agent Selling Bonuses Work Under the New Rules
The fundamentals of earning bonuses haven’t disappeared, but the process requires more strategic planning and documentation. Sellers still want to incentivize buyers’ agents to bring qualified buyers, especially for challenging properties or in competitive markets. The key difference lies in how these opportunities are communicated and documented.
Essential Documentation for Earning Bonuses
The foundation of earning bonuses under the new rules starts with proper buyer agreements. Ohio agents must use updated forms that satisfy both state requirements and NAR settlement provisions.
Your buyer agreement must include several critical elements:
- Exact compensation structure (flat fee, percentage, or combination)
- Clear language about potential seller-paid bonuses
- Maximum compensation caps that include any bonus amounts
- Statement that commissions are negotiable
- Specific language such as “Broker may accept a seller-paid bonus. Any such bonus shall be credited against the fee owed by Buyer, and total compensation will not exceed the amount stated in this agreement.”
Remember to complete Ohio’s Consumer Guide to Agency Relationships at first contact and provide the Agency Disclosure Statement when preparing offers. These state requirements remain unchanged and work in conjunction with the new NAR provisions.
Approved Communication Channels for Bonus Information
The MLS private remarks section is no longer available for bonus information, but several professional communication channels remain open for listing agents to share bonus opportunities. Understanding these channels helps you stay informed about available opportunities while maintaining compliance.
Acceptable communication methods include:
- Direct broker-to-broker emails
- Phone calls between real estate professionals
- Showing instructions attached to listings
- Secure agent portals and professional networks
- Text messages sent to office rosters
- Professional networking events and conversations
Building relationships with listing agents in your market becomes even more valuable under this system. Consider reaching out to top producers in your area to establish communication channels for bonus opportunities.
Managing Commission Split and Bonus Money
How bonuses impact your commission split depends entirely on your brokerage’s written policy. Some brokerages pass bonuses through at 100% to agents, while others apply standard commission splits or retain portions for the firm. Review your brokerage agreement carefully to understand how bonus money flows through your compensation structure.
The bonus amount gets documented on the closing statement as “Broker Bonus – Paid by Seller” and counts toward your total compensation as stated in the buyer agreement, not in addition to it. This means if your buyer agreement states 3% compensation and you receive a $2,000 bonus, the bonus reduces what the buyer owes rather than increasing your total compensation above the agreed-upon cap.
Work with your broker to understand their bonus policy and factor this into your financial planning. Some agents negotiate different split structures for bonus situations, especially if they’re consistently bringing in bonus opportunities.
Tax Implications for Agents Receiving Bonuses
From a tax perspective, bonuses are treated like any other commission income. They appear on your 1099-NEC form and are subject to self-employment tax. However, understanding the tax implications helps you make informed decisions about pursuing bonus opportunities and managing your overall tax strategy.
Key tax considerations include:
- Bonuses are reported as regular commission income
- Self-employment tax applies to bonus amounts
- Business expense deductions may offset bonus income
- Quarterly estimated tax payments may need adjustment
Consult with a tax professional about proper reporting procedures and potential strategies for managing the tax impact of bonus income.
Real-World Application in Ohio’s Market
Consider a practical example of how this works in Ohio’s current seller’s market.
A listing agent represents a seller with a property that’s been on the market for 45 days in a competitive area where most homes sell within 30 days. The seller decides to offer a $3,000 bonus to the buyer’s agent who brings an acceptable offer.
The listing agent emails other brokerages directly about the bonus opportunity. You receive this information and have a qualified buyer interested in the property. Before showing the home, you ensure your buyer has signed the updated Ohio REALTORS® Buyer Broker Compensation Agreement that includes bonus language and caps total compensation at 3%.
When your buyer submits an accepted offer, the bonus is documented on the closing statement. The $3,000 bonus counts toward your 3% compensation, reducing what the buyer owes while providing you with immediate payment at closing. Your brokerage applies its standard commission split to the bonus amount, as outlined in its written policy.
Take the Next Step with Hondros College
At Hondros College, we are here to support your success at every stage of your real estate career. Whether you’re just getting started or advancing your expertise, our comprehensive educational programs are tailored to meet your needs. Start with our pre-licensing courses, featuring a proven 92% pass rate that sets you up for success on exam day.
Already a licensed professional? Stay ahead of the competition with our flexible continuing education (CE) courses designed to keep you informed and compliant with industry standards.
Join the thousands of real estate professionals who trust Hondros College for their education. Begin today and take the first step toward achieving your career goals!
