We study a two-dimensional ferromagnetic Ising model in which spins are updated using modified versions of the Metropolis and Glauber algorithms. These update rules do not obey the detailed balance condition. The steady-state behavior of the model is studied using molecular field theory and Monte Carlo simulations. This model is found to exhibit a nonequilibrium phase transition from a paramagnetic″ state with zero magnetization to a ferromagnetic″ state with nonzero magnetization as the variable that plays the role of temperature in the spin updates is decreased. From detailed Monte Carlo simulations using the modified Metropolis algorithm, we demonstrate explicitly the nonequilibrium nature of the transition and show that it cannot be described as an equilibrium transition with an effective temperature different from the temperature used in the spin updates. The critical exponents that characterize the singular behavior near this continuous phase transition are calculated from finite size scaling of specific heat, magnetization, susceptibility, and correlation length. We find that the values of these exponents are the same (within error bars) as those of the equilibrium Ising model in two dimensions.