Section 4735.01(A) - Real Estate Broker Definition +7Ohio · Real Estate · English

A real estate broker includes any person, partnership, association, LLC, LLP, or corporation (foreign or domestic) who, for another and for a fee, commission, or other valuable consideration (or with the intention/expectation/promise of receiving one), performs real estate activities. The key elements are: acting FOR ANOTHER, and doing so FOR COMPENSATION.

• ✓A broker acts 'for another' whether pursuant to power of attorney or otherwise
• ✓Compensation includes a fee, commission, other valuable consideration, OR merely the intention/expectation/promise of receiving it
• ✓Entities as well as individuals can be brokers (persons, partnerships, associations, LLCs, LLPs, corporations)

The statute lists nine specific activities that constitute acting as a broker: (1) selling, exchanging, purchasing, renting, leasing or negotiating same; (2) offering/attempting/agreeing to negotiate such transactions; (3) listing or auctioning real estate; (4) dealing in options on real estate; (5) operating/managing/renting buildings to the public as tenants; (6) advertising or holding self out in the business; (7) directing/assisting in procuring prospects or negotiating transactions; (8) charging an advance fee for listing/referral services; (9) collecting rental information and charging tenants a referral fee.

• ✓Operating/managing/renting buildings to the public triggers licensure UNLESS acting only as custodian, caretaker, or janitor
• ✓Directing or assisting in procuring prospects covers all transactions EXCEPT mortgage financing
• ✓Advance-fee listing publication does NOT apply to a publisher of listings/compilations of sales by owners
• ✓Charging prospective tenants a fee for rental referral information requires a license

When an institution of higher education is approved under section 3332.05 of the Revised Code to offer ONLY certificate programs through distance education, the design and delivery method of any course it offers must be certified by an approved certifying body in order to qualify as an eligible course for real estate licensing education purposes under Chapter 4735 of the Ohio Revised Code. This ensures that distance-education courses meet recognized quality and delivery standards before they count toward licensing requirements.

• ✓Applies to institutions of higher education approved under ORC 3332.05 to offer ONLY certificate programs through distance education
• ✓The design AND delivery method of the course must be certified to be considered an eligible course under Chapter 4735
• ✓Without proper certification, the course does not qualify as an eligible course for licensing purposes

Ohio law specifies which organizations may certify the design and delivery method of distance-education real estate courses. A course may be certified by the Association of Real Estate License Law Officials (ARELLO), the International Distance Education Certification Center (IDECC), or another certifying body recognized by the Ohio Superintendent of Real Estate and Professional Licensing. Candidates should recognize these named organizations as the authorized certifiers.

• ✓The Association of Real Estate License Law Officials (ARELLO) is an approved certifying body
• ✓The International Distance Education Certification Center (IDECC) is an approved certifying body
• ✓Another certifying body may be used only if recognized by the Superintendent of Real Estate and Professional Licensing

Section 4735.011 became effective April 9, 2025, and was enacted through House Bill 238 of the 135th General Assembly. This is a relatively recent addition to Ohio's real estate education framework, reflecting the growth of distance-education certificate programs and the state's effort to ensure course quality through independent certification.

• ✓Section 4735.011 is effective April 9, 2025
• ✓It was created by House Bill 238 of the 135th General Assembly

Ohio law prohibits any person or business entity from acting as, advertising as, or assuming to act as a real estate broker or salesperson without first being licensed under Chapter 4735. This requirement applies broadly to individuals and business entities including partnerships, associations, limited liability companies, limited liability partnerships, and corporations. The only exception is provided under section 4735.022 of the Revised Code.

• ✓No person, partnership, association, LLC, LLP, or corporation may act, advertise, or assume to act as a real estate broker or salesperson without first being licensed under Chapter 4735
• ✓The only exception to this requirement is provided in section 4735.022 of the Revised Code
• ✓Merely advertising or assuming to act as a broker/salesperson without a license is prohibited

A licensee whose license is not in good standing may not provide any services that require a license under Chapter 4735. This applies whether the license is inactive, suspended, resigned, revoked, or in the case of a broker's license, on deposit. Providing licensed services in any of these statuses is a violation of the license requirement.

• ✓No entity or licensee may provide services requiring a license if the license is inactive, suspended, resigned, or on deposit (broker)
• ✓No licensed services may be provided if a license has been revoked
• ✓License must be active and in good standing to legally provide real estate services

Chapter 4735 does not authorize a real estate broker or salesperson to perform any service that constitutes the practice of law. Licensees must be careful not to cross into the unauthorized practice of law when assisting clients with transactions.

• ✓Nothing in Chapter 4735 authorizes a broker or salesperson to perform any service constituting the practice of law
• ✓Real estate licensees must avoid the unauthorized practice of law in performing their duties

A licensed business entity may not employ certain individuals in key positions if those individuals previously held a real estate license that has been placed in inactive or resigned status, is suspended, or is revoked, and who have not reactivated their license or obtained a new license. This applies to positions such as officer, director, manager, or principal employee.

• ✓A licensed partnership, association, LLC, LLP, or corporation may not employ as an officer, director, manager, or principal employee any person whose prior real estate license is inactive, resigned, suspended, or revoked
• ✓The restriction covers former real estate brokers, real estate salespersons, foreign real estate dealers, and foreign real estate salespersons
• ✓The restriction is lifted only if the person has reactivated the license or received a new license

Any licensee engaged in the business of referring prospective tenants to possible rental units or locations, and who charges those tenants a fee, must enter into a written contract with each prospective tenant. The licensee is required to provide the prospective tenant with a copy of the contract. The contract must disclose the manner in which the listings of rental units were obtained.

• ✓A written contract is mandatory when a licensee refers tenants for a fee
• ✓The licensee must give the prospective tenant a copy of the contract
• ✓The contract must disclose how the listings of units were obtained

Every referral contract must stipulate that any fee charged in excess of ten dollars shall be repaid or refunded to the prospective tenant upon demand if the tenant does not obtain a rental conforming to their specifications through the listing furnished by the licensee. The refund demand cannot be made sooner than thirty days after the contract was entered into, and cannot be made later than sixty days after the contract was entered into.

• ✓Any fee over $10 must be refunded upon demand if the tenant fails to obtain a conforming rental
• ✓Refund demand may not be made sooner than 30 days after the contract is entered into
• ✓Refund demand may not be made later than 60 days after the contract is entered into

If the information concerning rentals furnished by the licensee is not current or accurate, the full fee must be repaid or refunded to the prospective tenant upon demand. This differs from the standard refund, which only requires refunding the amount over ten dollars.

• ✓If rental information is not current or accurate, the FULL fee must be refunded upon demand
• ✓The full refund applies regardless of the 30/60 day timing rules that govern standard refunds

A licensee is prohibited from referring a prospective tenant to any property without the consent of the property owner. A licensee is also prohibited from referring a prospective tenant to any nonexistent address. These prohibitions protect both tenants and property owners from improper referral practices.

• ✓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

An out-of-state commercial broker may perform licensed acts with respect to commercial real estate in Ohio for compensation, provided the broker works in cooperation with a licensed Ohio real estate broker and satisfies all statutory conditions. This allows nonresident brokers to conduct commercial deals in Ohio without holding an Ohio license, as long as they partner with an active Ohio broker.

• ✓An out-of-state commercial broker must work in cooperation with an Ohio real estate broker holding a valid, active license
• ✓The activity is limited to commercial real estate only
• ✓Compensation may be for a fee, commission, or other valuable consideration, or the expectation/promise thereof

The out-of-state commercial broker must enter into a written agreement with the cooperating Ohio broker. This agreement governs the terms of the working relationship and binds the nonresident to Ohio law.

• ✓The written agreement must include the terms of cooperation and compensation
• ✓The agreement must include a statement that the out-of-state broker and its agents will agree to adhere to the laws of Ohio

All money received in connection with the transaction — including escrow funds, security deposits, and other money — must be deposited into trust or special accounts maintained by the Ohio broker, regardless of whether the out-of-state broker or the Ohio broker received the money.

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

The out-of-state commercial broker must furnish the cooperating Ohio broker with proof of its active licensure status in its home jurisdiction, verifying the nonresident is in good standing wherever it holds an active real estate license.

• ✓Must furnish the Ohio broker with a copy of the out-of-state broker's current certificate of good standing
• ✓The certificate must come from any jurisdiction where the out-of-state broker maintains an active real estate license

The out-of-state commercial broker must file an irrevocable written consent allowing legal actions to be brought against it in Ohio courts, ensuring accountability under Ohio's legal system for conduct arising from its Ohio transactions.

• ✓Must file an irrevocable written consent with the Ohio broker
• ✓Consent allows legal actions to be commenced in the court of proper jurisdiction of any Ohio county where the cause of action arises or where the plaintiff resides
• ✓The consent covers conduct of the out-of-state broker or its agents

All advertising by the out-of-state commercial broker must include the name of the cooperating Ohio broker, in compliance with Ohio advertising rules under Section 4735.16 of the Revised Code.

• ✓The name of the cooperating Ohio broker must appear on all advertising
• ✓Advertising must comply with section 4735.16 of the Revised Code

The out-of-state commercial broker must deposit all required documentation and transaction records with the Ohio broker, who is responsible for retaining them for a set period.

• ✓Out-of-state broker must deposit all required documentation and transaction-related records with the Ohio broker
• ✓The Ohio broker must retain the documentation and records for three years after the documentation is provided or the transaction occurred, as appropriate

An out-of-state commercial salesperson may perform acts requiring a salesperson license with respect to Ohio commercial real estate only if licensed under and directly supervised by a qualifying out-of-state commercial broker, and only if the associated broker meets all Division (A) requirements.

• ✓Salesperson must be licensed with and work under the direct supervision of the out-of-state commercial broker
• ✓The associated out-of-state commercial broker must meet all requirements of division (A)
• ✓Salesperson must provide the cooperating Ohio broker with a copy of the salesperson's current certificate of good standing from its home jurisdiction

An out-of-state commercial salesperson may only collect money in the name of and with the consent of the out-of-state broker under whom the salesperson is licensed. This mirrors the general rule that salespersons cannot collect compensation independently of their broker.

• ✓Salesperson may collect commissions, deposits, payments, rentals, or other money only in the name of the out-of-state commercial broker
• ✓Collection must be done with the consent of the out-of-state broker under whom the salesperson is licensed

By filing the consent-to-jurisdiction document, the nonresident designates the Ohio Secretary of State as agent for service of process, establishing a formal method for serving legal documents on the out-of-state party.

• ✓Filing consent-to-jurisdiction makes the secretary of state an agent for service of process, including summonses and subpoenas
• ✓Service is initiated by leaving four copies of the process, an affidavit stating the person's address, and a $5 fee with the secretary of state
• ✓The secretary of state forwards process by certified mail, return receipt requested, and service is complete upon mailing the notice and copy of process

When a nonresident is licensed in a jurisdiction that does not legally distinguish between broker and salesperson licenses, that person or entity must satisfy the full broker requirements of Division (A) before engaging in Ohio activity requiring a broker license.

• ✓Applies to persons, partnerships, associations, LLCs, LLPs, or corporations from jurisdictions with no legal distinction between broker and salesperson licenses
• ✓Such licensees must meet all division (A) requirements before engaging in activity requiring an Ohio broker license

An oil and gas land professional who is not otherwise permitted to engage in the activities described in ORC 4735.01(A) may still perform those activities, provided they satisfy all registration, fee, and disclosure requirements set out in this section. This creates a limited exception allowing unlicensed persons to conduct oil and gas land work if they comply with the statute.

• ✓An oil and gas land professional not otherwise permitted under ORC 4735.01(A) may perform those activities only if they meet all statutory conditions
• ✓Compliance requires completing registration, paying the annual fee, and making all required disclosures

The oil and gas land professional must register annually with the superintendent of real estate by a specified date on a form approved by the superintendent. The form must include the professional's name and address, as well as evidence of membership in good standing in a qualifying professional organization.

• ✓Registration must be renewed on an annual basis by the date specified by the superintendent
• ✓The registration form must include the professional's name and address
• ✓The form must include evidence of membership in good standing in a qualifying professional organization

At or prior to first contacting any landowner or other person with an interest in real estate for the purpose of engaging in land professional activities, the professional must, on a form approved by the superintendent, disclose specific information including their identity, registration status, non-licensure status, right to seek counsel, and non-representation.

• ✓Disclosures must be made at or prior to first contact with a landowner or interested person
• ✓Disclosures must be made on a form approved by the superintendent
• ✓Required disclosures include the professional's registered name and address, registration and membership status, that they are not a licensed real estate broker or salesperson, that the landowner may seek legal counsel, and that the professional is not representing the landowner

At or prior to entering into any agreements for exploring, transporting, producing, or developing oil and gas mineral interests (including oil and gas leases and pipeline easements), the professional must, on a superintendent-approved form, disclose the same set of items required at initial contact.

• ✓Disclosures apply to agreements for exploring, transporting, producing, or developing oil and gas mineral interests, including oil and gas leases and pipeline easements
• ✓Required disclosures include registered name and address, registration and membership status, non-licensure as a broker or salesperson, the right to seek legal counsel, and that the professional does not represent the landowner

The oil and gas land professional must clearly disclose that they are not a licensed real estate broker or salesperson under Chapter 4735 and that they do not represent the landowner or other interested person. The landowner must also be advised they may seek independent legal counsel for any transaction.

• ✓The professional must disclose they are not a licensed real estate broker or salesperson under Chapter 4735
• ✓The professional must disclose they are not representing the landowner or other interested person
• ✓The landowner must be told they may seek legal counsel for any transaction

The professional organization referenced for membership must be a national, state, or local organization that has been in existence for at least three years and that has, as part of its mission, developed a set of standards of performance and ethics for oil and gas land professionals.

• ✓The organization must be national, state, or local in scope
• ✓The organization must have existed for at least three years
• ✓The organization must have developed standards of performance and ethics for oil and gas land professionals as part of its mission

The oil and gas land professional must pay an annual fee established by the superintendent. This fee may not exceed one hundred dollars and must accompany the registration submission.

• ✓The annual fee is established by the superintendent but cannot exceed one hundred dollars
• ✓The fee must accompany the registration

The Ohio Real Estate Commission consists of five members appointed by the governor with advice and consent of the senate. Four members must be licensed real estate brokers who have been engaged in the real estate business in Ohio for ten years immediately preceding appointment, and one member must represent the public.

• ✓The commission has exactly five members appointed by the governor with senate consent
• ✓Four members must be licensed real estate brokers with 10 years of experience immediately preceding appointment
• ✓One member must represent the public

Terms of office are five years, commencing July 1 and ending June 30. Each member holds office from the date of appointment until the term ends. Members may not serve more than two consecutive full terms.

• ✓Terms are five years, running from July 1 to June 30
• ✓No member may hold office for more than two consecutive full terms
• ✓Members hold office from date of appointment until end of the appointed term

No more than three commission members may belong to any one political party. No member may concurrently serve on the commission and the real estate appraiser board created under section 4763.02.

• ✓No more than three members may be of any one political party
• ✓A member cannot simultaneously serve on the commission and the real estate appraiser board

Before entering upon duties, each member must subscribe to and file the constitutional oath of office with the secretary of state. Vacancies are filled in the manner prescribed for regular appointments, and a member filling a vacancy serves the remainder of the predecessor's term.

• ✓Each member must file the constitutional oath of office with the secretary of state before serving
• ✓Vacancies are filled in the same manner as regular appointments
• ✓A member appointed to fill a vacancy serves only the remainder of the predecessor's term

A member continues in office after the term expiration until a successor takes office or until 60 days have elapsed, whichever occurs first.

• ✓A member remains in office until a successor takes office or 60 days elapse, whichever is first
• ✓The maximum holdover period is 60 days

Annually, upon qualification of the member appointed that year, the commission organizes by selecting a president and vice-president from its members. A majority of members constitutes a quorum, though a lesser number may adjourn from time to time.

• ✓The commission annually selects a president and vice-president from its members
• ✓A majority of members constitutes a quorum
• ✓A lesser number than a quorum may adjourn from time to time

Each commission member receives an amount fixed pursuant to section 124.14 of the Revised Code for each day employed in official duties, plus actual and necessary expenses incurred in the discharge of those duties.

• ✓Members are compensated per day of official duty at a rate fixed under section 124.14
• ✓Members are reimbursed for actual and necessary expenses

The Ohio Real Estate Commission or the Superintendent of Real Estate has statutory authority to compel witness attendance and document production in matters within their jurisdiction that are subject to inquiry and investigation. This power supports the Commission's disciplinary and investigative functions over licensees.

• ✓The Commission or Superintendent may compel, by order or subpoena, the attendance of witnesses to testify in matters within their jurisdiction
• ✓They may require the production of any book, paper, or document pertaining to the matter under investigation
• ✓The subpoena power applies only to matters over which the Commission or Superintendent has jurisdiction and that are subject to inquiry and investigation

For investigative purposes, the Commission and Superintendent hold the same powers as judges of county courts. This grants them broad authority to administer oaths and enforce witness compliance during real estate investigations.

• ✓The Commission or Superintendent may administer oaths to witnesses
• ✓They may compel the attendance of witnesses and punish them for refusal to testify
• ✓These powers equal those of county court judges

A subpoena issued by the Commission or Superintendent may be served through several methods. The timing of when service is deemed complete is specifically defined by statute, which matters for compliance deadlines.

• ✓Service may be made by sheriffs, constables, or by certified mail with return receipt requested
• ✓The subpoena is deemed served on the date delivery is made OR the date the person refused to accept delivery

When a person fails to comply with a Commission or Superintendent requirement—such as filing statements, obeying subpoenas, giving testimony, or producing records—the Commission or Superintendent may apply to the court of common pleas of any county for enforcement.

• ✓The court of common pleas of any county may award process of subpoena or subpoena duces tecum upon application by the Commission or Superintendent
• ✓Enforcement may be sought when a person fails to file statements/reports, obey subpoenas, give testimony, answer questions, or produce books/records/papers
• ✓The court may order any person to give testimony, answer questions, and produce books, records, or papers as required

A person who fails to obey a subpoena, give testimony, answer questions, or obey a court order may face contempt proceedings. The court has power to attach and detain individuals who disobey its orders during real estate investigations.

• ✓The court, on motion supported by proof, may order an attachment for contempt against a person disobeying an order or injunction
• ✓If disobedience appears upon hearing, the court may order the offender committed and kept in close custody
• ✓Failure to obey subpoena, give testimony, answer questions, or obey a court order triggers these contempt remedies

Witnesses appearing before the Commission or Superintendent are entitled to fees and mileage compensation after their appearance, as provided under Section 119.094 of the Revised Code. Special rules apply when witnesses share transportation.

• ✓Witnesses receive fees and mileage under Section 119.094 of the Revised Code, paid after appearance
• ✓If two or more witnesses travel together in the same vehicle, mileage fee is paid to only one witness
• ✓Witnesses may agree to divide the shared mileage fee among themselves in any manner

Once an enforcement order is filed with the clerk of the court of common pleas, the clerk issues subpoena process under the court's seal. The subpoena compels appearance and may require production of documents on a continuing daily basis until examination is complete.

• ✓Upon filing the order, the clerk under the court seal issues process of subpoena for the person to appear
• ✓The subpoena requires appearance at a named time and place, and each day thereafter until examination is completed
• ✓The subpoena may direct the witness to bring books, records, or papers to the examination
• ✓The clerk may issue other orders regarding examination, appearance, and production as the court directs