Point-of-sale inspections are vital to Cleveland Heights

Heights Observer columnists Deborah Van Kleef and Carla Rautenberg have highlighted an emerging debate over whether Cleveland Heights should maintain its 1976 point-of-sale ordinance and its 2001 escrow amendment.

This debate was sparked by the Akron-Cleveland Association of Realtors (ACAR), which has launched a campaign resembling a political attack on the approximately 20 Northeast Ohio municipalities with point-of-sale ordinances.

Fortunately, Cleveland Heights City Council is not currently considering any revisions to the existing legislation. However, with four council seats and the mayor’s office up for election this year, and lobbying by ACAR, this issue will likely surface during the campaign season.

It is important to note that ACAR’s campaign comes in the wake of a 2024 settlement in which the National Association of Realtors (NAR) agreed to pay $418 million in damages for antitrust practices. Additionally, NAR can no longer require sellers to cover buyers' agent commissions.

What does that mean for Cleveland Heights? With sellers no longer required to pay a buyer’s agent’s commission, homebuyers may now face additional financial burdens. On top of closing costs and hundreds of dollars for a private home inspection, they may also have to pay their realtor’s commission and fund major code violations the seller has neglected to address. For buyers of modest income, these costs can be prohibitive.

Eliminating point-of-sale and escrow requirements would serve ACAR’s interests at the expense of Cleveland Heights residents. Realtors prefer fast transactions and minimal oversight, particularly for lower-priced homes, where quick sales maximize their commissions. However, the city’s inspections protect both buyers and the broader community in ways private, for-profit inspections do not.

Without mandatory corrections for major code violations, many buyers—particularly those with limited resources—will be forced to either shoulder significant repair costs or defer necessary fixes, leading to further property deterioration. As neglected repairs accumulate, neighboring homes will also suffer declining values, destabilizing entire blocks and increasing financial risks for all homeowners. Ultimately, this cycle of deferred maintenance and financial strain will continue, leaving future buyers—and the city itself—to bear the consequences.

Point-of-sale and escrow requirements are about more than just real estate transactions—they are essential to maintaining housing quality, which is the backbone of our city. Weakening or eliminating these ordinances would invite neglect, destabilize property values, and shift financial burdens onto unsuspecting buyers and the city itself.