Ohio Real Estate Study Guide 2026 — Free Cheat Sheet

When the superintendent determines a licensee has violated the noncompliance provisions, the superintendent has two possible courses of action. The superintendent may pursue formal disciplinary action or issue a citation with sanctions.

• ✓The superintendent may initiate disciplinary action under section 4735.051 in accordance with Chapter 119
• ✓Alternatively, the superintendent may personally or by certified mail serve a citation and impose sanctions under this section

Every citation served must notify the licensee of the alleged violations and inform them of the right to request a hearing under Chapter 119. Each citation must state a fine amount, and collected fines are directed to a specific fund. The maximum fine is up to two hundred dollars per violation.

• ✓Citation must inform licensee of the alleged violations and the opportunity to request a hearing under Chapter 119
• ✓Fine is up to two hundred dollars ($200) per violation
• ✓All fines collected are credited to the real estate recovery fund created under section 4735.12

A licensee who accumulates multiple citations within a twelve-month period faces escalated consequences. After three citations within twelve consecutive months, the superintendent is required to initiate formal disciplinary action for any subsequent violation in the same period.

• ✓If a licensee is cited three times under this section within twelve consecutive months, the superintendent shall initiate disciplinary action under 4735.051
• ✓This mandatory discipline applies to any subsequent violation occurring within the same twelve-month period

Once a citation is final, the licensee must fulfill all requirements within a set timeframe. Failure to comply triggers automatic suspension of the license by the superintendent.

• ✓Unless otherwise indicated, the licensee must meet all requirements in the final citation within thirty days after its effective date
• ✓The superintendent shall automatically suspend a licensee's license if the licensee fails to comply with the final citation requirements

A licensee or brokerage may not participate in a dual agency relationship (as described in ORC 4735.70) unless both the seller and purchaser have full knowledge of the dual representation and consent in writing on the agency disclosure statement described in ORC 4735.57. Consent must be informed—the licensee must disclose all relevant information necessary for each party to make an informed decision before obtaining consent.

• ✓Both seller and purchaser must have full knowledge of the dual representation
• ✓Consent must be in writing on the agency disclosure statement described in ORC 4735.57
• ✓Licensee must disclose all relevant information necessary for an informed decision before obtaining consent
• ✓No dual agency may occur without meeting these consent requirements

When a brokerage participates in a dual agency relationship under division (C) of ORC 4735.70 (two different licensees of the same brokerage representing different clients), the brokerage must establish a procedure under ORC 4735.54 so that licensees, including management-level licensees, representing one client cannot access or obtain confidential information about the other client. Additionally, each licensee must fulfill their duties exclusively to their own client.

• ✓Brokerage must establish an ORC 4735.54 procedure to prevent access to the other client's confidential information
• ✓The information barrier applies even to management-level licensees
• ✓Each licensee must fulfill duties exclusively to that licensee's own client

A salesperson or broker may not participate in a dual agency relationship in which the licensee is a party to the transaction—either personally or as an officer or member of a partnership, association, LLC, LLP, or corporation that has an interest in the real property, or an entity intending to purchase, lease, or exchange the property.

• ✓A licensee who is personally a party to the transaction cannot act as a dual agent
• ✓This prohibition extends to licensees acting as officers or members of entities with an interest in the property
• ✓It also applies to entities intending to purchase, lease, or exchange the subject property

Under ORC 4735.62, when representing any client in an agency or subagency relationship, the licensee is a fiduciary and must use best efforts to further the client's interest. The statute lists specific mandatory duties owed to the client. Exam candidates should recognize this establishes the core statutory fiduciary framework in Ohio agency law.

• ✓A licensee representing a client in an agency or subagency relationship is a fiduciary of the client
• ✓The licensee must use best efforts to further the interest of the client
• ✓The listed duties are not exhaustive ('including, but not limited to')

The licensee must exercise reasonable skill and care in representing the client and carrying out the responsibilities of the agency relationship, and must perform all chapter duties in a manner loyal to the client's interest. These are the classic care and loyalty components of fiduciary duty.

• ✓Must exercise reasonable skill and care in representing the client (division A)
• ✓Must perform all Chapter 4735 duties in a manner loyal to the client's interest (division D)
• ✓Must follow any lawful instructions of the client (division C)
• ✓Must perform the terms of any written agency agreement (division B)

The licensee must comply with all requirements of Chapter 4735 and other applicable statutes, rules, and regulations, including the Ohio fair housing law (division (H) of ORC 4112.02) and the federal fair housing law (42 U.S.C.A. 3601, as amended). This ties the fiduciary duty of compliance directly to fair housing obligations.

• ✓Must comply with the Ohio fair housing law under ORC 4112.02(H)
• ✓Must comply with the federal fair housing law, 42 U.S.C.A. 3601, as amended
• ✓Compliance with all Chapter 4735 requirements is a fiduciary duty (division E)

The licensee must disclose to the client any material facts of the transaction that the licensee is aware of or should be aware of in the exercise of reasonable skill and care, EXCEPT facts that are confidential information under a current or prior agency or dual agency relationship. The licensee must also advise the client to obtain expert advice on material matters when necessary or appropriate.

• ✓Must disclose material facts the licensee knows or should know through reasonable skill and care (division F)
• ✓Confidential information from a current or prior agency/dual agency relationship is excluded from this disclosure duty
• ✓Must advise the client to seek expert advice on material matters when necessary or appropriate (division G)

The licensee must keep all confidential information confidential unless permitted to disclose it under ORC 4735.74(B). This duty specifically includes NOT disclosing confidential information to any licensee who is not an agent of the client.

• ✓Must keep all confidential information confidential (division I)
• ✓Disclosure is allowed only when permitted under ORC 4735.74(B)
• ✓Confidential information may not be disclosed to any licensee who is not an agent of the client

Ohio Revised Code §4735.20(A) prohibits a licensed real estate broker or licensed foreign real estate dealer from paying a commission, fee, or other compensation for performing acts specified in §4735.01 to any person who is not a licensed real estate broker or salesperson (or licensed foreign real estate dealer/salesperson). This is the foundational rule preventing payment to unlicensed individuals. Exceptions exist only under divisions (B), (C), and (G).

• ✓A broker/foreign dealer may NOT pay commissions or compensation for real estate acts to unlicensed persons
• ✓Payment is allowed only to licensed brokers or licensed salespersons (or foreign equivalents)
• ✓Exceptions to the prohibition exist only under divisions (B), (C), and (G)

If the returned instrument was submitted by a licensee, the superintendent notifies the licensee that the license will be suspended unless, within fifteen days after the notice is mailed, the licensee submits both the original fee and an additional one-hundred-dollar fee. Failure to submit both fees in time — or a second returned instrument — results in immediate suspension without a hearing, and the licensee must cease activity.

• ✓Licensee must submit the original fee PLUS a $100 additional fee to cure
• ✓The cure period is 15 days after the mailing of the notice
• ✓Failure to cure results in immediate license suspension WITHOUT a hearing
• ✓A suspended licensee must cease all activity as a licensee under Chapter 4735
• ✓A returned instrument used to pay the cure fees also triggers immediate suspension

If the returned instrument was remitted by an applicant for licensure, the application is automatically rejected or approval withdrawn unless, within fifteen days after the notice is mailed, the applicant submits the original fee plus a one-hundred-dollar fee. Failure to submit both fees in time — or another returned instrument — results in denial or withdrawal of approval.

• ✓A licensure applicant's returned check causes automatic rejection/withdrawal of approval unless cured
• ✓Cure requires the original fee plus a $100 additional fee within 15 days of mailing
• ✓Failure to cure results in denial of the application or withdrawal of approval

The Ohio Real Estate Commission MAY adopt reasonable rules in accordance with Chapter 119 of the Revised Code (Ohio's Administrative Procedure Act) to implement provisions of the license law. This is discretionary authority covering license application forms, examination times, license status changes, and clarification of licensed activities.

• ✓The Commission MAY (discretionary) adopt reasonable rules under R.C. Chapter 119
• ✓Rules may govern the form and manner of filing license applications and the times and form of examinations
• ✓Rules may clarify which activities require a real estate license under Chapter 4735
• ✓A broker may be permitted to act as principal broker for more than one brokerage

An out-of-state commercial broker may perform acts requiring an Ohio license—for a fee, commission, or other valuable consideration—with respect to commercial real estate, but only if the broker satisfies ALL seven conditions of division (A). The threshold requirement is cooperating with a validly licensed active Ohio real estate broker and entering a written cooperation agreement. This lets nonresident brokers do commercial deals in Ohio without holding a full Ohio license, provided they partner with a resident Ohio broker.

• ✓The out-of-state commercial broker must work in cooperation with an Ohio broker who holds a valid, active license under Chapter 4735
• ✓A written agreement with the Ohio broker must state the terms of cooperation and compensation and that the out-of-state broker and its agents will adhere to Ohio law
• ✓The out-of-state broker must furnish the Ohio broker a current certificate of good standing from any jurisdiction where it maintains an active real estate license
• ✓All requirements of division (A) apply only to commercial real estate, not residential

All escrow funds, security deposits, and other money received by either the out-of-state broker or the Ohio broker must be deposited in trust or special accounts maintained by the Ohio broker. The Ohio broker—not the nonresident—controls the trust accounts, ensuring Ohio consumer-protection standards apply to client funds.

• ✓All escrow funds, security deposits, and other money must be deposited in trust or special accounts maintained by the Ohio broker
• ✓This applies to money received by either the out-of-state broker OR the Ohio broker

Under ORC 4735.74, once a licensee has performed all duties or the agency contract has terminated or expired, the licensee generally owes no further duty to the client. However, two specific duties survive the end of the relationship unless the parties agree otherwise in writing: providing an accounting of all moneys and property, and maintaining confidentiality of information received during the transaction. Exam candidates must understand that these are the ONLY continuing obligations after closing.

• ✓Unless otherwise agreed in writing, a licensee owes no further duty to a client after all duties are performed or the contract terminates or expires
• ✓Two duties survive termination: (A) accounting of all moneys and property relating to the transaction, and (B) keeping information confidential
• ✓The word 'both' means BOTH surviving duties (accounting AND confidentiality) continue, not just one

The duty to keep confidential all information received during the transaction survives closing indefinitely. However, ORC 4735.74(B) lists six exceptions where disclosure is permitted or required. Candidates should memorize these exceptions, as they are commonly tested regarding when a licensee may lawfully break confidentiality.

• ✓Confidentiality survives the closing/termination of the transaction
• ✓Exception 1: The client permits disclosure
• ✓Exception 2: Disclosure is required by law or by court order
• ✓Exception 3: The information becomes public from a source other than the licensee
• ✓Exception 4: The information is necessary to prevent a crime the client intends to commit
• ✓Exception 5: Disclosure is necessary to defend the brokerage or its licensees against an accusation of wrongful conduct, or to establish or defend a claim that a commission is owed
• ✓Exception 6: Disclosure of sales information requested by a registered/licensed/certified real estate appraiser under Chapter 4763 for performing an appraisal

Ohio Revised Code §4735.70 defines the categories of persons and entities considered dual agents in a real estate transaction. Dual agency arises when the same licensee or brokerage represents both sides of a transaction as clients, or when a management level licensee oversees an in-company transaction. Understanding these definitions is essential because dual agency triggers specific disclosure and consent obligations under Ohio license law.

• ✓A licensee who represents BOTH the purchaser and the seller as clients in the SAME real estate transaction is a dual agent (§4735.70(A))
• ✓A brokerage that represents BOTH the purchaser and the seller as clients in the same real estate transaction is a dual agent (§4735.70(B))
• ✓Dual agency applies only when both parties are 'clients' in the same transaction

A management level licensee who represents a client in an in-company transaction (where both the buyer and seller are represented by agents within the same brokerage) is generally considered a dual agent under §4735.70(C). This reflects the management licensee's supervisory position over agents on both sides of the transaction.

• ✓A management level licensee who represents a client in an in-company transaction is a dual agent (§4735.70(C))
• ✓An in-company transaction is one where the same brokerage represents both purchaser and seller

Every real estate brokerage in Ohio must develop and maintain a written company policy that identifies the types of agency relationships that its members (affiliated licensees) are permitted to establish with clients. This policy is a mandatory brokerage-level requirement, not optional.

• ✓Each brokerage SHALL develop and maintain a written company policy setting forth the types of agency relationships members may establish
• ✓The policy must comply with minimum standards established by rule by the superintendent of real estate with approval of the Ohio Real Estate Commission

The written company policy must address whether dual agency relationships under ORC 4735.70 are permitted within the brokerage. It must also establish procedures to protect confidential information and ensure that confidentiality obligations extend to all affiliated licensees of the brokerage.

• ✓The policy must state whether any dual agency relationships under section 4735.70 are permitted
• ✓The policy must set forth procedures to protect confidential information and ensure confidentiality extends to affiliated licensees of the brokerage

A broker holding exclusive authority to represent a client under a written exclusive agency agreement, exclusive right to sell agreement, or exclusive purchaser agency agreement may authorize other licensees to negotiate directly with that client. This authorization must be in writing, and the broker must comply with the requirements of ORC 4735.621. This allows cooperating licensees to interact directly with an already-represented client without breaching license law.

• ✓The exclusive broker may authorize other licensees to negotiate directly with the broker's client
• ✓The authorization to negotiate directly must be in writing
• ✓The applicable exclusive agreements are: exclusive agency, exclusive right to sell, or exclusive purchaser agency agreement
• ✓The broker must comply with the requirements of ORC 4735.621 when granting the authorization

A licensee who negotiates directly with a seller, purchaser, lessor, or tenant pursuant to a written authorization under division (A) does not violate ORC 4735.18(A)(19) (which generally prohibits negotiating with a party already exclusively represented). Importantly, negotiations conducted under this authorization do NOT create or imply an agency relationship between that licensee and the exclusive broker's client.

• ✓Negotiating pursuant to written authorization does not violate ORC 4735.18(A)(19)
• ✓Such authorized negotiations do not create or imply an agency relationship with the exclusive broker's client
• ✓The protection applies to negotiations with a seller, purchaser, lessor, or tenant

When representing a purchaser, a licensee must seek a property at a price and with purchase or lease terms acceptable to the purchaser. However, unless the client directs otherwise, the licensee is not obligated to keep seeking additional purchase or lease possibilities once the purchaser is already a party to a purchase contract, has entered a lease, or has extended a letter of intent to lease.

• ✓The buyer's agent must seek property at a price and terms acceptable to the purchaser
• ✓Once the purchaser is under contract, lease, or has extended a letter of intent, the agent is not obligated to seek additional possibilities unless the client so directs

The buyer's agent must assist the purchaser in developing, communicating, and presenting offers or counteroffers. The agent must present any offer to purchase or lease to the seller or seller's agent in a timely manner—even if the property is already subject to a contract of sale, lease, or letter of intent to lease—and must accept delivery of and present any counteroffers to the purchaser in a timely manner.

• ✓Agent must present all offers/counteroffers in a timely manner, even if the property is already under contract, lease, or letter of intent
• ✓Agent must assist the purchaser in developing, communicating, and presenting offers and counteroffers

No person may sell, lease, or otherwise deal in foreign real estate within Ohio unless the person has qualified the foreign real estate with the superintendent of real estate and meets one of the licensing conditions. This is the core rule governing the sale of out-of-state real estate in Ohio.

• ✓Foreign real estate must be qualified pursuant to ORC 4735.25 before it can be sold, leased, or dealt in within Ohio
• ✓The person must either have been licensed under section 1707.15 or 1707.16 prior to October 14, 1969, or be licensed under section 4735.27 or 4735.28
• ✓A person previously licensed as a foreign real estate dealer or salesperson under former section 1707.331 may operate only until the expiration of that license

The Ohio Real Estate Commission is part of the Department of Commerce for administrative purposes. The Director of Commerce serves ex officio as the executive officer of the commission, but the director may designate a department employee as Superintendent of Real Estate and Professional Licensing to act as executive officer.

• ✓The Ohio Real Estate Commission is part of the Department of Commerce for administrative purposes
• ✓The Director of Commerce is ex officio the executive officer of the commission
• ✓The director may designate a department employee as Superintendent of Real Estate and Professional Licensing

Under ORC 4735.53(A), a licensee in a real estate transaction may only establish four specific types of agency relationships. No other agency arrangements are permitted. Candidates must know these four defined relationships and be able to identify examples such as seller agency, buyer agency, dual agency, and subagency.

• ✓A licensee may represent the seller (seller agency).
• ✓A licensee may represent the purchaser (buyer agency).
• ✓A licensee may represent both seller and purchaser as a dual agent.
• ✓A licensee may act as a subagent to the client of another licensee.
• ✓The four listed relationships are the ONLY permitted types.

Under ORC 4735.53(B), when a licensee forms an agency relationship with a client, certain other individuals are automatically also considered agents of that client. This defines the scope of who owes duties to the client and who is imputed with the agency relationship within a brokerage.

• ✓The brokerage the licensee is affiliated with is also the client's agent, along with management-level licensees having direct supervisory duties (except as provided in ORC 4735.70(C)).
• ✓Any licensee in the brokerage who receives confidential information from the client's agent becomes an agent of the client.
• ✓Any other licensee who assisted in establishing the agency relationship is an agent of the client.
• ✓Any licensee specifically appointed with the client's consent to represent the client is an agent of that client.

Under ORC 4735.53(C), the default rule is that other licensees affiliated with the same brokerage are NOT agents of the client. This is the basis for appointed (designated) agency, allowing different agents in one brokerage to represent different parties. Only those meeting the conditions in (B)(1)–(4) are agents.

• ✓Except for those described in divisions (B)(1) to (4), another licensee affiliated with the same brokerage is NOT an agent of that client.
• ✓This provision supports appointed/designated agency within a brokerage.

Ohio Revised Code §4735.80 requires the superintendent of real estate to adopt rules requiring a licensee, prior to listing residential real estate for sale, exchange, or purchase, to provide the seller a disclosure form developed and maintained by the Division of Real Estate. The form outlines the federal and state anti-discrimination laws that apply in the home-buying process (including laws listed in divisions (C)(2) and (3) of section 4735.55) and the penalties for violating those laws. This connects licensee fair-housing duties to seller obligations.

• ✓A licensee must provide the seller a Division of Real Estate anti-discrimination disclosure form before listing residential real estate for sale, exchange, or purchase
• ✓The form must outline both the applicable federal and state anti-discrimination (fair housing) laws and the penalties for violating them
• ✓The listed laws include those referenced in divisions (C)(2) and (3) of ORC section 4735.55

Under §4735.80(B), a licensee is prohibited from marketing or showing a seller's residential real estate until two things occur: (1) the licensee provides the seller with the required anti-discrimination disclosure, and (2) the licensee receives back a copy of that disclosure signed and dated by the seller. The signed, dated copy must be retained by the licensee for a specified period.

• ✓No licensee shall market or show a seller's residential real estate before providing the required disclosure AND receiving a copy signed and dated by the seller
• ✓The licensee must retain the signed and dated disclosure copy for not less than three years following the closing date on the property

Every real estate broker licensed under Chapter 4735 must erect or maintain a sign on the business premises plainly stating that the licensee is a real estate broker. If the broker maintains one or more branch offices, a similar sign must be erected or maintained at each branch office.

• ✓Every licensed broker must display a sign on the business premises plainly identifying the licensee as a real estate broker
• ✓A separate identifying sign must be maintained at each branch office

The superintendent of the Division of Real Estate may investigate any person alleged to have violated ORC sections 4735.02 (unlicensed activity/prohibited acts), 4735.023, or 4735.25. An investigation may be triggered by a written complaint or by the superintendent's own motion. However, the superintendent may NOT initiate an investigation under this section against any person who held a suspended or inactive license under Chapter 4735 on the date of the alleged violation.

• ✓Investigations may arise from a written complaint OR the superintendent's own motion
• ✓Applies to alleged violations of ORC 4735.02, 4735.023, or 4735.25
• ✓The superintendent cannot investigate a person who held a suspended or inactive license on the date of the alleged violation

If, after investigation, the superintendent finds reasonable evidence of a violation, the superintendent must send the investigated party written notice by regular mail within fourteen business days of that determination. The notice must describe the allegedly violating activity, cite the applicable law allegedly violated, and inform the party that a hearing before a hearing examiner under Chapter 119 will be held upon the party's request.

• ✓Notice must be sent within fourteen (14) business days after the reasonable-evidence determination
• ✓Notice is sent by regular mail
• ✓Notice must include a description of the activity, the law allegedly violated, and a statement of the right to a hearing under Chapter 119

The Ohio Real Estate Commission decides whether to impose disciplinary sanctions for violations of section 4735.02 or 4735.023. If a violation is found, the commission may assess a civil penalty in an amount it determines, not to exceed one thousand dollars per violation. Each day a violation occurs or continues counts as a separate violation. The commission sets the terms of payment, maintains a record of proceedings, and issues a written opinion citing findings and grounds for its action.

• ✓Civil penalty may not exceed $1,000 per violation
• ✓Each day a violation occurs or continues is a separate violation
• ✓The commission determines the penalty amount and terms of payment
• ✓The commission must issue a written opinion with findings and grounds

The superintendent of real estate, with the approval of the Ohio real estate commission, is required to establish by rule an agency disclosure statement. This standardized form must include a place for the licensee and all parties to the transaction to sign and date it, and must contain sections disclosing or explaining specific required information about the agency relationships in the transaction.

• ✓The superintendent of real estate establishes the agency disclosure statement by rule, subject to approval by the Ohio real estate commission
• ✓The statement must contain a place for the licensee and all parties to sign and date it

The agency disclosure statement must identify the parties and property involved. It must list the names of all parties in the transaction (unless confidential), the address of the real estate being sold or leased, the name of each licensee and the brokerage with which each licensee is affiliated, and the party that each licensee represents in the transaction.

• ✓Names of all parties must be disclosed unless confidential
• ✓The statement must include the property address, each licensee's name, the affiliated brokerage, and which party each licensee represents

The statement must clarify the agency arrangement in various scenarios. If a licensee for a purchaser and a licensee for the seller are affiliated with the same brokerage, it must state whether they act as dual agents or represent their clients separately. If only one licensee is involved, it must state whether that licensee is a dual agent or represents only one party. If both purchaser and seller are represented by licensees of the same brokerage, the brokerage is a dual agent.

• ✓Two licensees in the same brokerage representing purchaser and seller must disclose whether they act as dual agents or represent parties separately
• ✓A single licensee must disclose whether he/she is a dual agent or represents only one party
• ✓When both purchaser and seller are represented by licensees affiliated with the same brokerage, the brokerage is a dual agent

When a real estate broker or salesperson provides the name of a home inspector to a purchaser or seller of real estate, they are required to provide at least three home inspector names rather than just one. This prevents the appearance of steering to a single inspector. Additionally, any home inspector named by the licensee must be licensed under Chapter 4764 of the Revised Code.

• ✓If a broker or salesperson provides the name of a home inspector, they must provide the buyer or seller with the names of at least three home inspectors
• ✓Any home inspector named must be licensed under Chapter 4764 of the Revised Code
• ✓The requirement is triggered only when the licensee chooses to provide a home inspector name

A licensee acting as a purchaser's agent or a seller's subagent working with a purchaser must present the agency disclosure statement (described in ORC 4735.57) to the purchaser and request the purchaser to sign and date it no later than the preparation of an offer to purchase or lease, or a written request for a proposal to lease. This ensures the buyer understands the agency relationship before committing to an offer.

• ✓The purchaser's agent or seller's subagent must present the agency disclosure statement to the purchaser no later than the preparation of an offer to purchase/lease or a written proposal request to lease
• ✓The purchaser must be requested to sign and date the statement
• ✓The disclosure statement referenced is the one described in ORC 4735.57

After the purchaser signs the agency disclosure statement, the licensee must deliver the signed statement to the seller's agent, or directly to the seller if the seller is not represented by an agent. Before presenting the seller with a written offer, lease, or written request for a proposal to lease, the seller's agent (or the purchaser's agent if the seller has no agent) must present the agency disclosure statement to the seller and request the seller to sign and date it.

• ✓The signed statement must be delivered to the seller's agent, or to the seller directly if unrepresented
• ✓Before presenting a written offer or lease proposal, the seller must be presented the disclosure statement and asked to sign and date it
• ✓If the seller is unrepresented, the purchaser's agent must present the statement to the seller

A licensee must indicate the accurate agency relationship on the agency disclosure statement. This ensures all parties understand who each licensee represents in the transaction.

• ✓The licensee must indicate the accurate agency relationship on the disclosure statement
• ✓Misrepresenting the agency relationship violates this requirement

The disclosure requirements of this section do not apply in four situations: (1) rental or leasing of residential premises (as defined in ORC 5321.01) if the rental/lease agreement can be performed in eighteen months or less; (2) the referral of a prospective purchaser or seller to another licensee; (3) transactions involving the sale, lease, or exchange of foreign real estate (as defined in ORC 4735.01(E)); and (4) transactions involving the sale of a cemetery lot or cemetery interment right.

• ✓No disclosure required for residential rentals/leases performable in 18 months or less
• ✓No disclosure required for referral of a prospective purchaser or seller to another licensee
• ✓No disclosure required for sale, lease, or exchange of foreign real estate
• ✓No disclosure required for sale of a cemetery lot or cemetery interment right

When representing a seller in an agency relationship, a licensee must actively seek a purchase offer at a price and with terms acceptable to the seller. However, once the property is subject to a contract of sale, lease, or letter of intent to lease, the licensee is not obligated to seek additional offers unless the seller specifically directs the licensee to do so.

• ✓A seller's agent must seek a purchase offer at a price and terms acceptable to the seller
• ✓Once a property is under contract, lease, or letter of intent, the licensee need not seek additional offers unless the seller directs otherwise

A seller's agent must accept delivery of and present any purchase offer to the seller in a timely manner. This obligation continues even if the property is already subject to a contract of sale, lease, or letter of intent to lease. The duty to present offers is mandatory regardless of the property's contract status.

• ✓All purchase offers must be accepted and presented to the seller in a timely manner
• ✓The duty to present offers applies even if the property is already under contract, lease, or letter of intent

An application for a real estate broker's license must be made to the superintendent of real estate on forms furnished by the superintendent and filed with the superintendent. The application must be signed by the applicant, or by its members or officers if the applicant is an entity. The application must state the name of the person applying and the location of the place of business for which the license is desired, plus any other information the superintendent requires.

• ✓Applications are made to the superintendent of real estate on forms furnished by the superintendent
• ✓The application must be signed by the applicant or its members or officers
• ✓The application must state the applicant's name and the location of the place of business for which the license is desired
• ✓The applicant must provide any other information the superintendent requires

Every brokerage in Ohio must develop a written brokerage policy on agency. This policy must be given to prospective sellers, tenants, and purchasers in accordance with the requirements of ORC 4735.56.

• ✓Each brokerage SHALL develop a written brokerage policy on agency
• ✓The policy must be provided to prospective sellers, tenants, and purchasers
• ✓The policy must comply with the disclosure timing and delivery rules of this section

The brokerage policy on agency must include specific mandatory disclosures explaining agency relationships, brokerage representation policy, dual agency possibilities, in-company representation of both parties, cooperation and compensation policies, and acknowledgement by signature.

• ✓Must explain permissible agency relationships under ORC 4735.53 and the duties an agent owes a client
• ✓Must state the brokerage's policy on representation of purchasers or sellers
• ✓Must disclose whether the brokerage/licensee may act as a dual agent, plus the client's options and consequences, including the right to terminate the relationship and seek other representation
• ✓Must disclose whether another licensee in the same brokerage may become the exclusive agent for the other party and whether each licensee represents only that client's interests
• ✓Must state the brokerage's policy on cooperation with other brokerages, including whether it offers or seeks compensation from other brokerages
• ✓Must state that a brokerage representing a purchaser represents the purchaser's interests even if the seller's agent or seller compensates the purchaser's brokerage
• ✓Must state that the signature of the purchaser or seller only acknowledges receipt of the policy

A licensee working directly with a seller must provide the brokerage policy on agency at the time the agency agreement is entered into (if an agreement is required under ORC 4735.55), or if no agreement is required, before advertising or showing the seller's real estate. The licensee must obtain the seller's signature acknowledging receipt.

• ✓Provide the policy at the time of entering an agency agreement if required by ORC 4735.55
• ✓If no agency agreement is required, provide the policy prior to advertising or showing the seller's real estate
• ✓Obtain the seller's signature acknowledging receipt unless the seller refuses
• ✓If the seller refuses to sign, the licensee must note this refusal on the policy

A licensee working directly with a purchaser — whether as the purchaser's agent, seller's agent, or seller's subagent — must provide the brokerage policy on agency and obtain a signature acknowledging receipt. The policy must be delivered prior to the earliest of several specified actions.

• ✓Applies to a licensee working directly with a purchaser as purchaser's agent, seller's agent, or seller's subagent
• ✓Must obtain the purchaser's signature acknowledging receipt unless the purchaser refuses; note any refusal on the policy
• ✓Must provide the policy prior to the EARLIEST of: initiating a prequalification evaluation; requesting specific financial information to determine price range ability; showing real estate other than at an open house; discussing making an offer; submitting an offer on behalf of the purchaser; or entering into an agency agreement under ORC 4735.55
• ✓Showing property at an open house does NOT trigger the delivery requirement

The Ohio Real Estate Commission or the Superintendent of Real Estate may commence an investigation into the conduct of a licensee (real estate broker, salesperson, foreign real estate dealer, or foreign real estate salesperson) or an unlicensed person/entity only within three years from the date the alleged violation occurred. This statute of limitations governs disciplinary investigations under ORC Chapter 4735 and related sections.

• ✓An investigation must be commenced within three years from the date the alleged violation occurred
• ✓Either the Ohio Real Estate Commission or the Superintendent of Real Estate may commence the investigation
• ✓Investigations may be authorized under sections 1349.11, 4735.051, 4735.052, 4735.18, or any other section of the Revised Code

If an investigation is not commenced within the three-year period, it is barred. Neither the Commission nor the Superintendent may suspend or revoke a license or take other disciplinary action against any licensee, unlicensed person, or unlicensed entity based on an alleged violation that could have been the subject of the barred investigation.

• ✓Failure to commence within three years bars the investigation entirely
• ✓No suspension, revocation, or other disciplinary action may be taken on a barred alleged violation
• ✓The bar applies to licensees, unlicensed persons, and unlicensed entities alike

The superintendent of real estate may, on the superintendent's own motion, investigate any licensee's conduct. The Ohio Real Estate Commission MUST (shall) impose disciplinary sanctions on any licensee convicted of a felony or a crime of moral turpitude — whether or not the licensee was acting in a real estate capacity or handling their own property. For the other listed prohibited acts, the Commission MAY (discretionary) impose sanctions when the licensee is acting in their capacity as broker/salesperson or handling their own property.

• ✓A felony or crime of moral turpitude conviction results in MANDATORY discipline, regardless of whether it relates to real estate practice.
• ✓Discipline for the numbered prohibited acts is DISCRETIONARY and applies to conduct in the licensee's real estate capacity or in handling their own property.
• ✓The superintendent may investigate any licensee on their own motion.

A licensee may be disciplined for knowingly making any misrepresentation, making false promises with intent to influence, persuade, or induce, or engaging in a continued course of misrepresentation or false promises through agents, salespersons, advertising, or otherwise.

• ✓Knowingly making any misrepresentation is a prohibited act (A)(1).
• ✓Making false promises with intent to influence, persuade, or induce is prohibited (A)(2).
• ✓A continued course of misrepresentation/false promises through any means is prohibited (A)(3).

Licensees may not act for more than one party in a transaction except as permitted under §4735.71 (dual agency rules). They must account for and remit within a reasonable time any money belonging to others that comes into their possession.

• ✓Acting for more than one party is prohibited unless permitted by and compliant with §4735.71 (A)(4).
• ✓Failure within a reasonable time to account for or remit money belonging to others is a violation (A)(5).
• ✓Dishonest or illegal dealing, gross negligence, incompetency, or misconduct is prohibited (A)(6).

By final court adjudication, violation of municipal or federal civil rights laws or unlawful discriminatory practices under Chapter 4112 relating to the purchase/sale of real estate is a prohibited act, provided it arose from bona fide efforts to buy, sell, or lease real estate. Second or subsequent violations do NOT require a final court adjudication to trigger discipline, and carry escalating mandatory penalties.

• ✓A first civil rights/discrimination violation requires final court adjudication and must arise from bona fide real estate efforts (A)(7)(a).
• ✓A second or subsequent violation does NOT require final court adjudication (A)(7)(b).
• ✓For a second offense, the Commission SHALL suspend the license for a minimum of two months or revoke it.
• ✓For a subsequent (third+) offense, the Commission SHALL revoke the license.

Brokers/salespersons must furnish all parties true copies of listings and agreements at the time each party signs. Brokers must maintain a noninterest-bearing special/trust bank account, separate from personal accounts, in a state-located depository for escrow funds, security deposits, and other fiduciary moneys; a separate interest-bearing trust account is required for property management funds (rents, deposits) with interest paid pro rata to owners.

• ✓Parties must be furnished true copies of listings/agreements at the time of signing (A)(25).
• ✓The general trust account must be noninterest-bearing and separate from personal accounts, in a state or federally chartered depository located in Ohio (A)(26).
• ✓A property management trust account (A)(27) may earn interest, which must be paid pro rata to property owners.
• ✓The (A)(27) property management account requirement does not apply to brokers not engaged in managing property for owners.
• ✓The name, account number, and depository location of trust accounts must be submitted in writing to the superintendent.

The Ohio Real Estate Commission is created under ORC 4735.03. It consists of five members appointed by the governor with the advice and consent of the senate. Four members must have been engaged in the real estate business as licensed real estate brokers in Ohio for the ten years immediately preceding appointment, and one member must represent the public. This composition ensures both industry expertise and public representation on the commission.

• ✓The commission consists of five members appointed by the governor with senate advice and consent
• ✓Four members must have been licensed Ohio real estate brokers for the ten years immediately preceding appointment
• ✓One member must represent the public
• ✓No more than three members may belong to any one political party
• ✓No member may concurrently serve on the commission and the real estate appraiser board (ORC 4763.02)

A licensee who is in the business of referring prospective tenants to possible rental units or locations and who charges the prospective tenant a fee must enter into a written contract with the prospective tenant and give the tenant a copy. The contract must disclose how the listings of rental units were obtained.

• ✓A licensee charging tenant referral fees must use a written contract
• ✓The licensee must give the prospective tenant a copy of the contract
• ✓The contract must disclose the manner in which the rental unit listings were obtained

Every contract must stipulate that any fee charged in excess of ten dollars will be repaid or refunded to the prospective tenant upon demand if the tenant does not obtain a rental conforming to the tenant's specifications through the listings furnished. The refund demand can be made no sooner than 30 days and no later than 60 days after the contract was entered into.

• ✓Any fee in excess of $10 must be refunded upon demand if no conforming rental is obtained
• ✓Refund demand may be made no sooner than 30 days after the contract is entered into
• ✓Refund demand must be made no later than 60 days after the contract is entered into
• ✓If the rental information furnished is not current or accurate, the FULL fee must be refunded upon demand

A licensee may not refer a prospective tenant to any property without the owner's consent, and may not refer a prospective tenant to any nonexistent address.

• ✓No licensee shall refer a prospective tenant to any property without the owner's consent
• ✓No licensee shall refer a prospective tenant to any nonexistent address

Each person licensed under section 4735.07 (salesperson) or 4735.09 (broker) must submit proof satisfactory to the superintendent of real estate that they completed 30 hours of continuing education as prescribed by the Ohio Real Estate Commission. Proof is due on or before the licensee's birthday occurring three years after initial licensure, and on or before the licensee's birthday every three years thereafter. Exceptions apply for resigned-status licensees and disabled licensees.

• ✓30 hours of CE required every three-year reporting period
• ✓Deadline is the licensee's birthday three years after initial licensure, then every third birthday thereafter
• ✓CE must be prescribed by the Ohio Real Estate Commission under section 4735.10
• ✓Resigned-status licensees (per 4735.142) and disabled licensees (division E) are excepted

If a person is licensed as a broker or broker on deposit, or acts as a management level licensee, the required continuing education must include a three-hour course on the duties of a principal broker and other issues involved in operating a real estate brokerage.

• ✓Brokers, brokers on deposit, and management-level licensees must complete a three-hour principal broker duties course
• ✓This course is part of (included within) the 30 required CE hours

When earnest money connected to a real estate purchase agreement is deposited in a broker's trust or special account, the broker must keep it in that account in accordance with the terms of the purchase agreement until a specific triggering event permits disbursement. This is a core license-law fiduciary duty regarding trust funds.

• ✓Broker must maintain earnest money in the trust/special account per the purchase agreement terms
• ✓Earnest money may only be disbursed upon occurrence of one of the events listed in division (A)

A broker may release earnest money from the trust account only when one of five statutory events occurs: (1) the transaction closes and the broker disburses to the closing/escrow agent or per the agreement; (2) both parties give separate signed written instructions specifying disbursement; (3) the broker receives a final court order specifying who gets the money; (4) a residential record owner cancels under ORC 5301.95(C)(1) and the broker pays the record owner; or (5) the money becomes unclaimed funds and is remitted to the director of commerce.

• ✓Disbursement at closing is per the escrow agent or the purchase agreement terms
• ✓Separate written instructions must be signed by BOTH parties
• ✓A final court order specifying the awardee authorizes disbursement
• ✓Unclaimed earnest money must be reported and remitted to the director of commerce under ORC 169.03

Every foreign real estate dealer's and salesman's license expires on December 31 of each year. To renew, the licensee must file an application for renewal with the superintendent of real estate and pay the fee prescribed in section 4735.15. The renewal application and fee must be filed not less than 15 nor more than 60 days before the expiration of the old license. The superintendent has discretion to accept a renewal application filed less than 15 days before the expiration of the calendar year. The superintendent must give notice, without unreasonable delay, of his action on any renewal application.

• ✓Foreign real estate dealer and salesman licenses expire December 31 of each year
• ✓Renewal application and fee must be filed not less than 15 and not more than 60 days before expiration
• ✓The superintendent may accept a renewal application filed less than 15 days before expiration
• ✓The superintendent must give notice without unreasonable delay of action on a renewal application
• ✓Renewal fee is the fee prescribed in ORC 4735.15

A person licensed as a broker (under 4735.07) or salesperson (under 4735.09) may apply to the superintendent of real estate and professional licensing to place their license in a permanently resigned status. This application must be made at any time prior to the date the licensee is required to file a notice of renewal under division (B) of section 4735.14.

• ✓Only persons licensed under 4735.07 (broker) or 4735.09 (salesperson) may apply for permanently resigned status
• ✓Application must be made before the licensee's renewal notice due date under 4735.14(B)
• ✓Application is made to the superintendent of real estate and professional licensing

A person whose license is in permanently resigned status who later wishes to obtain an active or inactive license must reapply. They must apply in accordance with the full requirements of section 4735.07 (broker) or 4735.09 (salesperson), as applicable, or the rules adopted by the commission under 4735.10(A). There is no simple reinstatement — the person effectively must qualify anew.

• ✓A resigned license cannot simply be reinstated; the person must reapply for licensure
• ✓Reapplication must meet requirements of 4735.07 or 4735.09, as applicable, or commission rules under 4735.10(A)
• ✓Applies whether the person seeks active or inactive licensure

Ohio law identifies certain core fiduciary duties owed by a licensee to a client that are mandatory and cannot be given up. The duties required of a licensee under section 4735.62 of the Revised Code may NOT be waived by a client under any circumstances. These represent the foundational agency obligations that always apply to the agency relationship.

• ✓Duties required under ORC 4735.62 may not be waived by a client
• ✓Section 4735.62 sets forth the fiduciary duties required of all licensees
• ✓No agreement or signed statement can waive 4735.62 duties

Unlike the core 4735.62 duties, the duties required under sections 4735.63 or 4735.65 CAN be waived, but only if specific requirements are met. A licensee must perform these duties unless the client both agrees to waive them AND signs a written waiver of duties statement that complies with division (C). Absent a proper signed waiver, the licensee remains obligated to perform all 4735.63/4735.65 duties.

• ✓Licensee must perform 4735.63 and 4735.65 duties unless properly waived
• ✓Waiver requires the client to agree AND sign a waiver of duties statement
• ✓The signed waiver must comply with division (C) of the section

Under ORC 4735.55(B), a licensee must enter into a written agency agreement BEFORE performing certain activities on behalf of a client involving residential real property. This ensures the agency relationship is documented before representation begins. 'Residential real property' has the meaning in ORC 5302.30, and 'residential premises' and 'tenant' have the meanings in ORC 5321.01.

• ✓A written agency agreement must be signed before advertising or showing residential real property on behalf of a seller
• ✓A written agency agreement must be signed before making an offer to purchase residential real property on behalf of a purchaser
• ✓A written agency agreement must be signed before making an offer to lease residential premises on behalf of a tenant for a term exceeding eighteen months
• ✓Leases of eighteen months or less do NOT trigger the written agency agreement requirement

Every real estate broker licensed under Chapter 4735 must have and maintain a definite place of business in Ohio. A post office box does not qualify as a definite place of business. The broker's license may only authorize business from the location specified on it.

• ✓Every licensed broker must maintain a definite place of business in Ohio
• ✓A post office box address does NOT qualify as a definite place of business
• ✓No license authorizes the licensee to do business except from the location specified in it

A broker's license must be prominently displayed in the broker's office or place of business. If a broker maintains more than one location in Ohio, the broker must apply for and procure a duplicate license for each branch office, and each branch office license must be prominently displayed at that branch location.

• ✓The broker's license must be prominently displayed in the office or place of business
• ✓A duplicate license must be obtained for each branch office maintained in Ohio
• ✓The branch office license must be prominently displayed at the branch office location

An oil and gas land professional who is not otherwise permitted to engage in the activities described in ORC 4735.01(A) (the activities that normally require a real estate license) may perform those activities without a real estate license if they satisfy the registration and disclosure requirements of §4735.023. This is an alternative registration pathway with the superintendent of real estate rather than full licensure.

• ✓An oil and gas land professional may perform activities described in ORC 4735.01(A) without a real estate license if they comply with §4735.023
• ✓This is a registration-based exemption administered by the superintendent of real estate

To qualify, the oil and gas land professional must register annually with the superintendent of real estate by the date specified and on a form approved by the superintendent. The form must include the professional's name and address, plus evidence of membership in good standing in a national, state, or local professional organization that has existed at least three years and has developed standards of performance and ethics for oil and gas land professionals as part of its mission. An annual fee, set by the superintendent, not to exceed $100, must accompany the registration.

• ✓Registration must be renewed annually with the superintendent of real estate
• ✓The registration form requires name, address, and evidence of good-standing membership in a qualifying professional organization
• ✓The qualifying organization must have existed at least three years and have developed performance/ethics standards
• ✓The annual fee cannot exceed one hundred dollars ($100)

At or prior to first contacting any landowner or other person with an interest in real estate for the purpose of engaging in oil and gas land professional activities, the professional must disclose (on a superintendent-approved form): their registered name and address; that they are registered with the superintendent and a member in good standing of a qualifying professional organization; that they are NOT a licensed real estate broker or salesperson under Chapter 4735; that the landowner may seek legal counsel for any transaction; and that the professional is NOT representing the landowner or other person.

• ✓Disclosure must be made at or prior to first contact with the landowner or interested person
• ✓Must disclose that the professional is NOT a licensed real estate broker or salesperson
• ✓Must disclose that the professional is NOT representing the landowner or other person
• ✓Must advise that the landowner may seek legal counsel in connection with any transaction
• ✓Disclosure must be made on a form approved by the superintendent

• A. The Ohio Division of Real Estate & Professional Licensing
• B. The Ohio Civil Rights Commission (OCRC) ✓ Answer
• C. The Ohio Attorney General's Consumer Protection Section
• D. The local board of REALTORS® ethics committee

• A. The broker must maintain a single pooled trust account and distribute funds to owners monthly without individual client ledgers
• B. The broker must keep separate named bank accounts for each individual property owner managed
• C. The broker must maintain a trust account with individual ledgers for each owner so that each client's funds can be identified and reconciled at any time ✓ Answer
• D. The broker may commingle security deposits and advance rents with operating funds as long as a reconciliation is done quarterly

• A. A month-to-month periodic tenant, and either party may end the tenancy by giving notice at least 30 days before the periodic rental date ✓ Answer
• B. A tenant under a new one-year lease that automatically renewed on the same terms as the expired lease
• C. A tenant at sufferance whom the landlord may remove immediately through forcible entry and detainer without any notice
• D. A tenant at will whom the landlord may terminate at any time on 3 days' notice, since no lease term is in effect

• A. An unlicensed independent contractor may show units and negotiate leases as long as the broker reviews and signs all final agreements
• B. Showing units and negotiating lease terms are licensed activities under ORC Chapter 4735; the broker may not delegate them to an unlicensed person, regardless of how the worker is classified ✓ Answer
• C. An unlicensed person may show units but may not discuss rent amounts or lease terms with prospective tenants
• D. Ohio exempts property management tasks from licensing requirements when the contractor works exclusively for one property owner

• A. Under the federal Servicemembers Civil Relief Act, the lease terminates 30 days after the next rent due date following delivery of the notice (here, April 30), and no early-termination penalty may be charged. ✓ Answer
• B. Under Ohio Revised Code Chapter 5321, the tenant may terminate immediately on delivery of the notice, but forfeits the security deposit as liquidated damages.
• C. The tenant remains liable for rent through December because Ohio's Landlord-Tenant Act contains no military exception and a fixed-term lease cannot be broken without landlord consent.
• D. The lease terminates 60 days after the notice is delivered, and the landlord may retain one month's rent as an early-termination fee under Ohio law.

• A. Yes, because the contract expressly authorized the broker to disburse in accordance with an arbitration award, which constitutes written direction from both parties. ✓ Answer
• B. No, because Ohio law prohibits arbitration clauses in residential real estate purchase contracts.
• C. No, because the broker may only disburse trust funds pursuant to a court order or mutual written consent signed contemporaneously with the disbursement request, not a pre-signed contractual authorization.
• D. Yes, but only if the arbitration was conducted by an arbitrator licensed by the Ohio Division of Real Estate and Professional Licensing.