Question 1
A residential tenant in Ohio files a fair housing complaint alleging the landlord discriminated on the basis of familial status. Under Ohio law, which agency has primary authority to investigate state-law fair housing complaints involving residential rentals?
- 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
Explanation: Ohio's fair housing law is codified in ORC Chapter 4112, which is administered and enforced by the Ohio Civil Rights Commission (OCRC). The OCRC investigates complaints of housing discrimination based on protected classes under state law, including familial status. The Ohio Division of Real Estate & Professional Licensing handles licensee conduct, not tenant fair housing complaints. The Attorney General and REALTOR® boards have no primary role in adjudicating individual fair housing complaints under ORC Chapter 4112.
Question 2
Under Ohio Administrative Code rules governing licensed real estate brokers, which of the following best describes the broker's obligation when a property management trust account contains both security deposits and advance rental payments belonging to multiple clients?
- 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
Explanation: Ohio Administrative Code Rule 1301:5-6-14 requires a broker to maintain a trust account for property management funds and to keep records sufficient to identify the funds belonging to each client. Individual ledgers are required so that any client's balance can be determined at any time. A single pooled account without individual records, separate accounts per owner, or commingling with operating funds all violate the broker's trust account and record-keeping obligations under Ohio Division of Real Estate rules.
Question 3
Under ORC 5321.11, when a written residential lease in Ohio is silent about what happens at the end of its fixed term and the tenant remains in possession with the landlord's consent, the tenancy converts to which type?
- A. A tenancy at sufferance, requiring immediate eviction proceedings
- B. A new fixed-term tenancy of equal duration to the original lease, automatically renewed
- C. A month-to-month tenancy on the same terms and conditions as the expired lease ✓ Answer
- D. A week-to-week tenancy, terminable by either party with seven days' notice
Explanation: The selected result is generally the Ohio residential holdover rule when a fixed-term residential tenant remains in possession with the landlord's consent and the lease is silent: the tenancy continues as a month-to-month tenancy on the same terms, rather than a tenancy at sufferance or an automatic renewal for the original fixed term. However, this is not correctly attributed to ORC 5321.11, which concerns landlord remedies for tenant noncompliance.
Question 4
An Ohio licensed broker manages a residential rental complex and wants to hire an unlicensed independent contractor to negotiate lease renewals and show vacant units to prospective tenants. Under Ohio real estate licensing law, which statement is correct?
- 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
Explanation: ORC 4735.01 defines 'real estate broker' and 'salesperson' to include persons who negotiate leases or show property for compensation. Performing these acts without a license violates ORC 4735.02. The independent-contractor label does not create a licensing exemption; the activities themselves trigger the license requirement. The single-owner exemption under ORC 4735.01(A)(6) applies only to a salaried employee of an owner, not an independent contractor, and requires the employee to perform only on-site, routine managerial tasks rather than lease negotiation.
Question 5
Under Ohio law, a residential tenant who wishes to terminate a fixed-term lease early because of qualifying military service is protected by which statute?
- A. ORC 5321.17, which permits any tenant to terminate upon 30 days' written notice regardless of lease term ✓ Answer
- B. The federal Servicemembers Civil Relief Act (SCRA) only; Ohio has no separate state-law protection
- C. ORC 5321.05, which relieves a tenant of rent obligations whenever the unit becomes uninhabitable
- D. ORC 5321.16, which requires the landlord to return the security deposit immediately upon a military termination notice
Explanation: Ohio provides a state-law military lease termination protection in ORC 5321.17(C). That provision is specific to qualifying military service and does not mean that any tenant may terminate a fixed-term lease on 30 days' notice. ORC 5321.05 concerns tenant obligations, and ORC 5321.16 concerns security deposits.
Question 6
A buyer and seller in Ohio sign a purchase contract containing a clause stating that any earnest money dispute shall be resolved by binding arbitration, and that the broker is authorized to disburse funds in accordance with any arbitration award. The buyer defaults, and an arbitrator awards the earnest money to the seller. Under Ohio law, may the broker disburse based solely on the arbitration award?
- 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.
Explanation: When both parties have pre-authorized in writing — through a binding contract clause — that the broker shall disburse earnest money in accordance with an arbitration award, that contractual provision constitutes the written direction from both parties that Ohio law requires before a broker may disburse disputed trust funds. An arbitration award pursuant to such a clause provides the broker with clear legal authority to disburse without further written consent at the time of disbursement. Ohio does not prohibit such clauses, and no Division-licensed arbitrator requirement exists.