Section 4735.27(F) - Issuance of License and Salesperson Employment +22Ohio · Real Estate · English

Except as provided in division (H), the superintendent must issue a foreign real estate dealer license if the applicant (or each named member, manager, or officer of a partnership, association, or corporate applicant) is at least eighteen years of age, has passed the required examination, and appears otherwise qualified.

• ✓Applicant (or each named member/manager/officer) must be at least eighteen years of age
• ✓Applicant must have passed the required examination and appear otherwise qualified
• ✓The superintendent shall issue the license when all requirements are met, except as provided in division (H)

Dealers licensed under this section may employ as foreign real estate salespersons only persons licensed under section 4735.28. When salespersons resign, are discharged, or new ones are added, the dealer must immediately notify the superintendent and file the names and addresses of new salespersons with the division of real estate.

• ✓Dealers may only employ salespersons licensed under section 4735.28
• ✓Dealers must promptly notify the superintendent when salespersons leave or are added
• ✓Dealers must file names and addresses of new salespersons with the division of real estate

After the conclusion of formal hearings, the hearing examiner must file a report of findings of fact and conclusions of law with the superintendent, commission, and the parties. The commissioners then review the report at their next scheduled meeting.

• ✓The hearing examiner must file the report within twenty-five business days after the conclusion of formal hearings
• ✓The report includes findings of fact and conclusions of law filed with the superintendent, commission, complainant, and licensee
• ✓Commissioners review the report at the next regularly scheduled meeting held at least fifteen business days after receipt
• ✓The commission shall hear testimony of the complainant or licensee upon request

When the complainant is the Ohio Civil Rights Commission, the complaint may be reviewed directly by the commissioners upon request, bypassing certain procedural steps.

• ✓If the complainant is the Ohio Civil Rights Commission, the complaint shall be reviewed by the commissioners directly upon request

Successful completion of required instruction under (F)(6) is determined by the law in effect on the date the instruction was completed. The ten-hour real estate appraisal requirement (F)(6)(c) does not apply to any new applicant who holds a valid Ohio real estate appraiser license or certificate issued prior to the date of application for the salesperson's license.

• ✓Course completion is judged by the law in effect when the instruction was completed
• ✓The 10-hour appraisal requirement is waived for applicants holding a valid Ohio real estate appraiser license/certificate issued before application

A broker wishing to become a member or officer of a partnership, association, limited liability company, limited liability partnership, or corporation that is or intends to become a licensed real estate broker must notify the superintendent on a prescribed form, accompanied by a fee of thirty-four dollars. A licensed broker who is a member or officer of such an entity may only act as a real estate broker for that entity.

• ✓Broker must notify the superintendent on a prescribed form with a $34 fee to become a member/officer of a licensed entity
• ✓A broker who is a member/officer of a real estate entity may act as broker only for that entity

An owner of any interest in foreign real estate may refer a prospective buyer to the person who sold them that foreign real estate and expect valuable consideration, provided all conditions are met. This is a limited exception permitting an unlicensed owner to receive a referral fee.

• ✓The seller must be selling qualified foreign real estate pursuant to section 4735.25
• ✓Total fees/consideration promised or collected in any 12 consecutive months may not exceed $1,000
• ✓The owner must not make referrals in the ordinary course of business or as a regular business practice
• ✓The owner must not show the property, discuss terms/conditions, or participate in negotiations
• ✓If the transaction is consummated, the referral must be disclosed by the person who sold the owner the foreign real estate

To prevent fraud in the sale of foreign real estate or to secure performance of agreements to make improvements, the superintendent may require all payments to be made to a bank in Ohio and impounded in escrow upon terms the superintendent reasonably requires.

• ✓The superintendent may require all payments to be made to an Ohio bank and held in escrow
• ✓The escrow requirement serves to prevent fraud or secure performance of improvement agreements

The commission decides whether to impose disciplinary sanctions on a licensee for a violation of ORC 4735.18 within sixty days of the hearing examiner's report filing. The commission must maintain a transcript and issue a written opinion citing findings and grounds.

• ✓The commission must decide within sixty days of the filing of the hearing examiner's report or an Ohio Civil Rights Commission complaint
• ✓The commission must maintain a transcript of the proceedings
• ✓The commission must issue a written opinion citing findings and grounds for any action taken
• ✓The commission must notify the complainant and any person suffering financial loss of the right to sue for recovery under ORC 4735.12

Suspension or revocation of a broker's or foreign real estate dealer's license automatically suspends every salesperson's license granted by virtue of association with that broker/dealer, pending a change of broker/dealer and issuance of a new license.

• ✓Broker/dealer license suspension or revocation automatically suspends all associated salespersons' licenses
• ✓Salesperson suspension lasts pending a change of broker/dealer and issuance of a new license
• ✓A new license shall be issued without charge if granted during the same year the original license was granted

'Seller' means a party in a real estate transaction who is the potential transferor of property, including an owner seeking to sell and a landlord seeking to rent or lease. 'Bona fide' means made in good faith or without purpose of circumventing license law. 'Resigned' means a license voluntarily and permanently surrendered to the division, not renewable/reactivable, and not associated with a broker.

• ✓'Seller' includes both an owner selling and a landlord renting or leasing
• ✓'Bona fide' means good faith without intent to circumvent license law
• ✓A resigned license is permanently surrendered and cannot be renewed or reactivated

A 'right-to-list home sale agreement' is one where a residential owner agrees to give another person exclusive rights to list the property for sale at a future date in exchange for monetary consideration (or equivalent), and that EITHER states it runs with the land / binds future owners, OR purports to be a lien, encumbrance, or other real property security interest.

• ✓Involves exclusive future listing rights in exchange for monetary consideration
• ✓Qualifies if it purports to run with the land or bind future owners
• ✓Qualifies if it purports to be a lien, encumbrance, or security interest

If the superintendent is of the opinion that the proposed sale, lease, or disposal is not on grossly unfair terms, that the chapter's provisions have been complied with, and that the property will not be dealt in on terms that might defraud or deceive persons in Ohio, the superintendent shall allow qualification on the terms in the application or on other terms the superintendent approves to prevent fraud or deception.

• ✓Qualification is allowed only if terms are not grossly unfair and chapter provisions are met
• ✓The superintendent may impose alternative terms calculated to prevent fraud or deception

If an applicant is merely renewing the previous year's license, the renewal application need only contain the information required by divisions (A)(2), (3), and (6) — i.e., business organization details, office locations, and the nature/places of business for the preceding ten years.

• ✓Renewal applications need only include information required by divisions (A)(2), (3), and (6)
• ✓Full application disclosures are not required for a straightforward yearly renewal

For noncredit course offerings only, an institution of higher education must obtain approval from the appropriate state authorizing entity before offering a real estate course designed and marketed as satisfying the (F)(6) salesperson license education requirements. The state authorizing entity may consult with the superintendent when reviewing the course for compliance.

• ✓Only noncredit offerings require prior approval from the state authorizing entity
• ✓The state authorizing entity may consult with the superintendent on course compliance

A broker or salesperson who enters the armed forces may place their license on deposit with the Ohio Real Estate Commission. The licensee need not renew until the renewal date following discharge. Deposited licenses remain subject to Chapter 4735.

• ✓A licensee entering the armed forces may deposit the license with the Ohio Real Estate Commission
• ✓License renewal is not required until the renewal date following discharge
• ✓Deposited licenses remain subject to Chapter 4735

A licensee on deposit who fails continuing education requirements under R.C. 4735.141 due to armed forces service must comply within twelve months of the first birthday after discharge, or within a period equal to the total months of active duty, whichever is greater. Proper documentation of active duty service must be submitted, and the extension cannot exceed the total months served.

• ✓CE extension is 12 months after the first birthday post-discharge or the total months of active duty, whichever is greater
• ✓The licensee must submit proper documentation of active duty service and its length
• ✓The extension cannot exceed the total number of months served on active duty

A licensee who is the spouse of an armed forces member and whose absence from Ohio resulted from the spouse's service is not required to renew until the renewal date following the spouse's discharge, and receives an equivalent continuing education extension. For reciprocity-agreement licensees, the spouse's service must have caused absence from the licensee's state of residence. 'Armed forces' includes the U.S. armed forces, reserve components, and the Ohio or any other state's national guard.

• ✓A military spouse's absence-based provisions allow deferral of renewal until the renewal date after the spouse's discharge
• ✓Military spouses get the same CE extension formula based on the spouse's active duty months
• ✓For reciprocity licensees, absence must be from the state of residence
• ✓'Armed forces' includes U.S. forces, reserve components, and national guard of any state

An 'associate broker' is an individual licensed as a broker who does NOT function as the principal broker or a management level licensee. A 'principal broker' is an individual broker who oversees and directs the operations of the brokerage. A 'brokerage' is an entity or sole proprietorship issued a broker's license, including its affiliated licensees assigned management/supervisory duties.

• ✓An associate broker holds a broker's license but does not serve as principal or management-level licensee
• ✓A principal broker oversees and directs the brokerage's operations
• ✓A brokerage includes affiliated licensees assigned supervisory management duties

A 'licensee' is any individual licensed as a real estate broker or salesperson by the Ohio Real Estate Commission. A 'management level licensee' is a licensee employed by or affiliated with a broker who has supervisory responsibility over other licensees affiliated with that broker.

• ✓A licensee is an individual licensed as either a broker or salesperson by the Ohio Real Estate Commission
• ✓A management level licensee has supervisory responsibility over other licensees

An 'eligible course' (except as in 4735.011) is a credit or noncredit course offered by an institution of higher education applicable toward a degree/certificate. 'Distance education' means required courses delivered via interactive electronic media where teacher and student are separated by distance or time. An 'oil and gas land professional' regularly prepares and negotiates agreements for exploring, transporting, producing, or developing oil and gas mineral interests, including leases and pipeline easements.

• ✓An eligible course must be offered by an institution of higher education and applicable toward a degree or certificate
• ✓Distance education uses interactive electronic media with teacher and student separated by distance or time
• ✓An oil and gas land professional regularly prepares and negotiates oil/gas agreements including leases and pipeline easements

'Institution of higher education' includes: a state institution (per 3345.011); a nonprofit institution with a certificate of authorization under Chapter 1713; a private institution exempt from regulation under Chapter 3332 (per 3333.046); and an institution registered with the state board of career colleges and schools under Chapter 3332 approved to offer degree/certificate programs under 3332.05.

• ✓Includes state institutions, authorized nonprofit institutions, and certain private/career college institutions
• ✓Career college institutions must be approved to offer degree or certificate programs under section 3332.05

For a violation of ORC 4735.18, the commission may impose a range of sanctions including revocation, suspension, fines, public reprimand, or required continuing education. Fines are credited to the real estate recovery fund.

• ✓The commission may revoke a license issued under Chapter 4735
• ✓The commission may suspend a license for a term it sets
• ✓The commission may impose a fine not exceeding two thousand five hundred dollars per violation
• ✓The commission may issue a public reprimand or require additional continuing education coursework
• ✓Required disciplinary CE does not count toward the CE requirements in ORC 4735.14
• ✓All fines are credited to the real estate recovery fund created under ORC 4735.12

Any person who has not been licensed as a real estate salesperson or broker within the four-year period immediately preceding their current application for the examination must have completed the (F)(6) prelicensure instruction within the ten-year period immediately preceding that current application.

• ✓Triggered when the applicant has not been licensed as salesperson or broker in the prior four years
• ✓Prelicensure instruction must have been completed within the preceding ten years

When a licensed salesperson applies to leave one broker to associate with a different broker, the broker possessing the license need not notify the superintendent under division (B). The superintendent may process the application regardless of whether the license is returned or division (B) notification is made.

• ✓The current broker need not give division (B) notification when a salesperson applies to transfer
• ✓The superintendent may process the transfer application whether or not the license is returned or notification given

A violation of section 4735.20 is cause for disciplinary sanctions under the proceedings in sections 4735.051, 4735.18, and 4735.32. The statute also defines 'affiliated licensee' for the purposes of this section.

• ✓Violation of this section is cause for disciplinary sanctions under sections 4735.051, 4735.18, and 4735.32
• ✓'Affiliated licensee' means a person holding a valid and active license under this chapter who is associated with the broker paying compensation at the time it is earned

The superintendent must issue a foreign real estate dealer license in accordance with Chapter 4796 of the Revised Code to an applicant who either holds a license in another state, or who has satisfactory work experience, a government certification, or a private certification as described in that chapter as a foreign real estate dealer in a state that does not issue such a license.

• ✓A license must be issued under Chapter 4796 if the applicant holds a license in another state
• ✓A license must be issued under Chapter 4796 if the applicant has satisfactory work experience or a government/private certification in a state not issuing such a license
• ✓This provision operates as an exception to the standard qualification requirements in division (F)

Between the date of issue and no later than twelve months after issue of a salesperson's license, the licensee must submit proof of completing twenty hours of instruction in commission-approved schools, seminars, and educational institutions. Instruction must include current practices in commercial real estate, property management, short sales, land contracts, contract law, federal and state programs, economic conditions, and fiduciary responsibility. It may be taken by classroom or distance education, with curriculum approved under R.C. 4735.10.

• ✓20 hours of post-licensure instruction must be completed within 12 months of license issuance
• ✓Instruction must cover topics like commercial real estate, property management, short sales, land contracts, contract law, and fiduciary responsibility
• ✓Providers and curriculum must be approved by the commission under R.C. 4735.10

If proof of the 20-hour instruction is not submitted within twelve months of license issuance, the license is suspended automatically without any action by the superintendent, and the superintendent must immediately notify the associated broker. The suspended salesperson has twelve months after the suspension to submit proof of completion; the license is not reactivated until requirements and chapter compliance are established. Failure to submit the required proof within twelve months of suspension results in automatic revocation without any action by the superintendent.

• ✓Failure to submit proof within 12 months of issuance = automatic suspension without superintendent action
• ✓Superintendent must immediately notify the associated broker of the suspension
• ✓A suspended licensee has 12 months to submit proof or the license is automatically revoked

All notices, written reports, and determinations issued under this section must be sent by certified mail with return receipt requested. If certified mail fails, alternative service by regular mail with a certificate of mailing is deemed valid service.

• ✓All notices, written reports, and determinations must be mailed via certified mail, return receipt requested
• ✓If certified mail is returned for failure of delivery, refused, or unclaimed, service is deemed effective via regular mail with a certificate of mailing
• ✓An investigation under this section is subject to ORC 4735.32

Examinations must be administered with reasonable accommodations in accordance with the Americans with Disabilities Act of 1990 (42 U.S.C. 12189). The contents of the exam must be consistent with the (F)(6) classroom instructional requirements. An applicant who has completed the (F)(6) classroom requirements at the time of application must be examined no later than twelve months after being notified of admission to the examination.

• ✓Exams must be administered with reasonable ADA accommodations per 42 U.S.C. 12189
• ✓Exam contents must be consistent with the (F)(6) instructional requirements
• ✓Qualified applicants must be examined within 12 months of notification of admission to the exam

Notwithstanding any contrary provision, the superintendent shall issue a salesperson's license under Chapter 4796 (universal license recognition) to an applicant who satisfies the requirements of section 4796.03, 4796.04, or 4796.05 (as applicable) AND passes an examination on Ohio real estate law.

• ✓Applicant must satisfy R.C. 4796.03, 4796.04, or 4796.05 as applicable
• ✓Applicant must pass an examination on Ohio real estate law
• ✓Both conditions must be met for the superintendent to issue a license under Chapter 4796