Section 4735.05 Organization of Commission - Confidentiality +9Ohio · Real Estate · English

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

The superintendent must administer the chapter, issue all orders necessary to implement it, investigate complaints concerning violations or licensee conduct, establish and maintain an investigation and audit section, appoint hearing examiners for disciplinary proceedings, and administer the real estate recovery fund.

• ✓The superintendent shall administer the chapter and issue all necessary implementation orders
• ✓The superintendent shall investigate complaints concerning violations of the chapter or conduct of any licensee
• ✓The superintendent shall establish and maintain an investigation and audit section
• ✓The superintendent shall appoint a hearing examiner for proceedings involving disciplinary action under sections 3123.47, 4735.052, or 4735.18
• ✓The superintendent shall administer the real estate recovery fund

The superintendent must establish an investigation and audit section to investigate complaints and conduct inspections, audits, and other inquiries to enforce the chapter. Investigators and auditors have the right to review and audit the business records of licensees and continuing education course providers during normal business hours.

• ✓Investigators and auditors may review and audit business records of licensees and continuing education course providers
• ✓Reviews and audits must occur during normal business hours
• ✓The section conducts inspections, audits, and inquiries to enforce the chapter

All information obtained by investigators and auditors during investigations, inspections, and audits under division (B)(4)—from licensees, complainants, or other persons—plus all reports, documents, and work products arising from it, must be held in confidence. Information from informal mediation meetings under section 4735.051, including the agreement to mediate and accommodation agreement, must also be kept confidential.

• ✓Information obtained during investigations, inspections, and audits must be held in confidence by the superintendent, investigators, auditors, and department personnel
• ✓Reports, documents, and work products arising from investigation information are confidential
• ✓Information from informal mediation meetings under 4735.051, including the agreement to mediate and accommodation agreement, must be held in confidence

When the office of superintendent becomes vacant, both the Ohio Real Estate Commission and the Real Estate Appraiser Board (created under section 4763.02) must each submit a list of three qualified persons to the Director within 60 days. The Director appoints a superintendent from these lists, and the superintendent serves at the pleasure of the Director.

• ✓Both the commission and the appraiser board must each submit a list of three qualified persons within 60 days of vacancy
• ✓The Director appoints the superintendent from the submitted lists
• ✓The superintendent serves at the pleasure of the Director

The superintendent may subpoena witnesses in connection with investigations and audits, apply to court to enjoin violations, recommend appointment of ancillary trustees, request criminal records checks, and issue advisory letters in lieu of disciplinary action.

• ✓The superintendent may subpoena witnesses as provided in section 4735.04
• ✓The superintendent may apply to court to enjoin any violation of the chapter
• ✓Upon showing a violation, the court shall grant an injunction, restraining order, or other appropriate order

The superintendent may recommend appointing a qualified ancillary trustee when a licensed broker dies, has their license revoked, or becomes incapacitated/suspended/incarcerated, and there is no other licensed broker within the brokerage. The trustee concludes or continues business transactions.

• ✓Upon a broker's death with no other broker, an ancillary trustee may conclude business transactions subject to probate court approval, upon application by an interested party
• ✓Upon a broker's revocation with no other broker, a trustee may conclude business transactions
• ✓Upon incapacitation, suspension, or incarceration with no other broker, a trustee may continue transactions for a period not exceeding the incapacitation, suspension, or incarceration

When the superintendent has reasonable cause to believe an applicant or licensee committed a criminal offense, they may request the Bureau of Criminal Identification and Investigation (BCI) to conduct a criminal records check. BCI must obtain FBI information as part of the check. The superintendent may charge the applicant/licensee a fee equal to the check cost.

• ✓The superintendent must have reasonable cause to believe an applicant or licensee committed a criminal offense to request a check
• ✓BCI must obtain information from the FBI as part of the criminal records check
• ✓The superintendent may assess the applicant or licensee a fee equal to the criminal records check fee

The section does not prevent the Division of Real Estate and Professional Licensing from releasing licensee information to certain agencies for administration of relevant Revised Code chapters. Information released remains confidential.

• ✓Information may be released to the divisions of financial institutions, securities, and industrial compliance for chapters they enforce
• ✓Information may be released to the superintendent of insurance (for Chapter 3953), the attorney general, and law enforcement agencies and prosecutors
• ✓Information released by the division remains confidential

In enforcing the chapter, the superintendent may issue advisory letters instead of initiating disciplinary action under sections 4735.051 or 4735.052, or instead of issuing a citation under sections 4735.16 or 4735.181.

• ✓Advisory letters may be issued in lieu of disciplinary action under sections 4735.051 or 4735.052
• ✓Advisory letters may be issued in lieu of a citation under sections 4735.16 or 4735.181

When a person files a signed written complaint against a licensed real estate broker or salesperson with the Division of Real Estate, the superintendent must acknowledge receipt and notify the licensee of the acts complained of within a set timeframe. The acknowledgment and notice must describe the potential informal mediation process.

• ✓Complaints must be signed and in writing to trigger the process
• ✓The superintendent must acknowledge the complaint and notify the licensee within five business days of filing
• ✓The notice to the licensee must describe the acts complained of
• ✓Both parties must request informal mediation within ten business days on a form provided by the superintendent

The acknowledgment to the complainant and notice to the licensee must state that an informal mediation meeting will be held with the complainant, licensee, and an investigator from the investigation and audit section of the Division, provided both parties file a request within ten business days.

• ✓Informal mediation requires a request from BOTH the complainant and the licensee
• ✓The mediation meeting includes an investigator from the investigation and audit section
• ✓Requests must be filed within ten business days on a superintendent-provided form

The superintendent may investigate any person who allegedly violated section 4735.02, 4735.023, or 4735.25 of the Revised Code. Investigations may be initiated upon a written complaint or on the superintendent's own motion. However, there is an important limitation regarding persons holding suspended or inactive licenses.

• ✓Investigation can begin upon a written complaint OR on the superintendent's own motion
• ✓The superintendent shall NOT initiate an investigation of any person who held a suspended or inactive license on the date of the alleged violation
• ✓Investigations cover violations of sections 4735.02, 4735.023, or 4735.25 of the Revised Code

If, after investigation, the superintendent determines there is reasonable evidence of a violation, the superintendent must send written notice to the party under investigation within a specific timeframe. The notice must contain specific required information.

• ✓Notice must be sent within fourteen business days after the determination of reasonable evidence
• ✓Notice must be sent by regular mail to the party who is the subject of the investigation
• ✓Notice must include: a description of the alleged violating activity, the applicable law allegedly violated, and a statement that a hearing will be held upon the party's request
• ✓The hearing is held before a hearing examiner pursuant to Chapter 119. of the Revised Code

The commission decides whether to impose disciplinary sanctions and may assess civil penalties for violations. There are specific limits on penalty amounts and rules on how continuing violations are counted.

• ✓The commission decides whether to impose disciplinary sanctions for violations of section 4735.02 or 4735.023
• ✓Civil penalties may not exceed one thousand dollars per violation
• ✓Each day a violation occurs or continues is treated as a separate violation
• ✓The commission determines the terms of payment and must maintain a record of proceedings and issue a written opinion citing findings and grounds for action

If a hearing is requested, the hearing examiner conducts the proceeding, considers all testimony, and determines whether a violation occurred. The examiner then files a formal report and there is an objection process.

• ✓If a hearing is requested, the hearing examiner hears testimony of all parties present and considers any written testimony submitted
• ✓The hearing examiner determines if there has been a violation of section 4735.02, 4735.023, or 4735.25
• ✓After formal hearings, the hearing examiner files a report of findings of fact and conclusions of law with the superintendent, the commission, the complainant, and the parties
• ✓Within twenty days of receiving the report, parties and the division may file written objections with the commission

The commission reviews the hearing examiner's report at a scheduled meeting after receipt and considers any written objections before acting on the report. The commission may also hear testimony.

• ✓Written objections must be considered by the commission before approving, modifying, or disapproving the report
• ✓The commission reviews the report at the next regularly scheduled meeting held at least twenty business days after receipt of the hearing examiner's report
• ✓The commission shall hear testimony of the complainant or parties upon request

If a party fails to pay an assessed civil penalty on time, the superintendent must involve the attorney general for collection, and additional fees and civil action may apply.

• ✓If a party fails to pay within the prescribed time, the superintendent shall forward the party's name, identifying information, and penalty amount to the attorney general for collection
• ✓The party must also pay any collection fee assessed by the attorney general in addition to the civil penalty
• ✓The superintendent may reserve the right to bring a civil action for breach of contract in a court of competent jurisdiction against a party that fails to pay

Civil penalties collected under this section are directed to a specific state fund established by statute.

• ✓Civil penalties collected are deposited in the real estate operating fund
• ✓The real estate operating fund is created in the state treasury under section 4735.211 of the Revised Code

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

• ✓Application must be made on forms furnished by the superintendent
• ✓Application must be signed by the applicant or its members or officers
• ✓Application must state the name of the applicant and the location of the place of business

Each application must include the address of the applicant's current residence, or if the applicant is not an individual, the residence address of each member or officer. The superintendent retains these residential addresses as separate records that do NOT constitute public records under section 149.43 of the Revised Code.

• ✓Applications must include the current residential address of the applicant or each member/officer
• ✓Residential addresses are kept as separate records and are NOT public records under R.C. 149.43

Every brokerage must designate at least one affiliated broker to serve as the principal broker responsible for overseeing operations. Any affiliated broker who is not designated as principal broker is classified as an associate broker or a management level licensee for that brokerage.

• ✓Each brokerage shall designate at least one affiliated broker as principal broker
• ✓Non-designated affiliated brokers are associate brokers or management level licensees

When a brokerage changes its principal broker designation, it must notify the superintendent within a strict statutory deadline. This ensures the state has current records of who is responsible for each brokerage.

• ✓Report any change in principal broker designation to the superintendent
• ✓Report must be made no later than fifteen days after the change occurs

The principal broker must oversee and direct brokerage operations and generally oversee the licensed activity of affiliated licensees. This includes assuring licensees provide real estate services only within their area of competency or work with another affiliated licensee who possesses that competency.

• ✓Principal broker shall oversee and direct the operations of the brokerage
• ✓Must assure affiliated licensees work within their competency or with a competent affiliate

The principal broker must comply with trust or special bank account requirements in ORC 4735.18(A)(26) and (27) and 4735.24, and maintain complete and accurate trust account and transaction records as required by 4735.18(A)(24) and commission rules.

• ✓Comply with trust/special bank account requirements under 4735.18(A)(26)-(27) and 4735.24
• ✓Maintain complete and accurate trust account and transaction records

The principal broker must comply with office requirements in ORC 4735.13(A) and 4735.16(A), and display the fair housing statement in brokerage offices and on pamphlets required under 4735.16(D) and 4735.03 per commission rules.

• ✓Comply with office requirements in ORC 4735.13(A) and 4735.16(A)
• ✓Display the fair housing statement in offices and on required pamphlets

The principal broker must renew the licenses of the brokerage and any branch offices under ORC 4735.14, pay required fees under 4735.15(B)(2), maintain licenses of the brokerage and affiliated salespersons/brokers under 4735.13, and return the license of terminated licensees under 4735.13(B).

• ✓Renew brokerage and branch office licenses and pay required fees
• ✓Maintain affiliate licenses and return licenses of terminated licensees

The principal broker must develop and maintain a written company policy on agency relationships under ORC 4735.54 and develop a written brokerage policy on agency under ORC 4735.56, both as required by superintendent rules.

• ✓Develop and maintain written company policy on agency relationships (ORC 4735.54)
• ✓Develop a written brokerage policy on agency (ORC 4735.56)

The principal broker must pay affiliate licensees as required by ORC 4735.18(A)(31) and establish practices ensuring that only affiliated licensees perform and are compensated for licensed activity under 4735.18(A)(34) and 4735.20.

• ✓Pay affiliate licensees per ORC 4735.18(A)(31)
• ✓Ensure only affiliated licensees perform and are paid for licensed activity

The principal broker must establish practices and procedures to assure compliance with advertising requirements set forth in ORC 4735.16 and commission rules.

• ✓Establish procedures to ensure advertising compliance under ORC 4735.16
• ✓Follow applicable commission rules on advertising

A principal broker may assign any of the duties listed in division (C) or in commission rules to a management level licensee, allowing distribution of supervisory responsibilities within the brokerage.

• ✓Principal broker may assign division (C) duties to a management level licensee
• ✓Delegable duties include those specified in commission rules

The superintendent may permit a broker to be licensed with and act as principal broker for more than one brokerage, allowing multi-brokerage responsibility with superintendent approval.

• ✓Superintendent may permit a broker to be principal broker for more than one brokerage
• ✓This requires superintendent permission

Nothing in this section is prima facie evidence of whether an affiliated licensee is an independent contractor or an employee of the brokerage. The section does not resolve employment classification.

• ✓Section 4735.081 is not prima facie evidence of employment status
• ✓Does not determine independent contractor versus employee classification

An application for a real estate salesperson's license must be made to the superintendent of real estate on forms furnished by the superintendent and must be signed by the applicant. The application must be in the form prescribed by the superintendent and contain the information required by Chapter 4735 and the rules of the Ohio Real Estate Commission. It must include the applicant's current residence address.

• ✓Application must be made to the superintendent of real estate on prescribed forms and signed by the applicant
• ✓Application must include the applicant's current residence address
• ✓Application must contain information required by Chapter 4735 and Ohio Real Estate Commission rules

The application must be accompanied by the recommendation of the real estate broker with whom the applicant is associated or intends to be associated. The broker must certify that the applicant is honest and truthful, has not been finally adjudged by a court to have violated civil rights laws relevant to protecting purchasers/sellers of real estate (that the applicant failed to disclose), and must recommend the applicant be admitted to the salesperson examination.

• ✓Broker must certify the applicant is honest and truthful
• ✓Broker must recommend the applicant be admitted to the salesperson examination
• ✓Broker certifies the applicant has not undisclosed civil rights law adjudications relevant to real estate purchasers/sellers

The superintendent must retain the applicant's current residence address in a separate record that does NOT constitute a public record under section 149.43 of the Revised Code, protecting the applicant's privacy.

• ✓Applicant's residence address is kept in a separate record
• ✓This residence address record is NOT a public record under R.C. 149.43

The Ohio Real Estate Commission may adopt reasonable rules in accordance with Chapter 119 of the Revised Code to implement provisions of Chapter 4735. These rules are discretionary ('may adopt') and cover licensing procedures, license statuses, and clarification of licensed activities. The list is illustrative and not exhaustive ('but not limited to').

• ✓The Commission MAY adopt reasonable rules under Chapter 119 for implementing Chapter 4735
• ✓Rulemaking must comply with Chapter 119 (Administrative Procedure Act) of the Revised Code
• ✓The enumerated list of rule subjects is not exhaustive

The Commission may adopt rules governing the form and manner of filing license applications, as well as the times and form of the licensing examination. These procedural rules control how candidates apply for and take the license exam.

• ✓Commission may set the form and manner of filing applications for licensure
• ✓Commission may set the times and form of examination for license

The Commission may adopt rules allowing an existing broker's license to be placed on deposit or a salesperson's license on inactive status for an indefinite period. It may also specify the process by which a licensee may resign their license, and may define additional license statuses not otherwise defined in the chapter, establishing how licensees enter those statuses.

• ✓A broker's license may be placed on deposit; a salesperson's license may be placed on inactive status for an indefinite period
• ✓The Commission may define additional license statuses not otherwise defined in Chapter 4735
• ✓Rules may specify the process for a licensee to resign their license

The Commission may adopt rules clarifying which activities require a license under Chapter 4735, and rules permitting a broker to act as principal broker for more than one brokerage.

• ✓Commission may clarify the activities that require a real estate license
• ✓Commission may permit a broker to act as principal broker for more than one brokerage

The commission may impose a special assessment not exceeding ten dollars per year for each year of a licensing period on each licensee filing a notice of renewal, but only when the fund balance is below the threshold. This is done in accordance with rules adopted under division (A)(2)(g) of section 4735.10.

• ✓Special assessment cannot exceed ten dollars per year for each year of a licensing period
• ✓Assessment is imposed on each licensee filing a renewal notice under section 4735.14
• ✓Assessment applies only if the fund is less than $250,000 on July 1 preceding the filing
• ✓No special assessment is imposed if the fund exceeds $250,000 on July 1 preceding the filing

The real estate recovery fund is established in the state treasury and administered by the superintendent of real estate. Amounts collected under this section plus interest earned on fund assets are credited to the fund by the treasurer of state. The superintendent ascertains the amount of money in the fund as of July 1 each year.

• ✓The fund is created in the state treasury and administered by the superintendent of real estate
• ✓Amounts collected and interest earned are credited to the fund by the treasurer of state
• ✓The fund balance is ascertained as of the first day of July each year

Every real estate broker licensed under Chapter 4735 must have and maintain a definite physical place of business in Ohio. A post office box does not qualify as a definite place of business. The broker's license must be prominently displayed at the office, and no license authorizes doing business except from the location specified on it.

• ✓A broker must maintain a definite place of business in Ohio
• ✓A post office box is NOT a definite place of business
• ✓The broker's license must be prominently displayed at the office
• ✓No license authorizes doing business except from the location specified on it

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

• ✓A duplicate license is required for each branch office maintained
• ✓Each branch office must be in charge of a licensed broker or salesperson
• ✓The branch office license must be prominently displayed at the branch location

A license issued under Chapter 4735 remains valid without further recommendation or examination until it is placed in an inactive or resigned status, is revoked or suspended, or expires by operation of law. This means once granted, a license continues indefinitely unless one of these specific status changes occurs.

• ✓A license is valid without further recommendation or examination once issued
• ✓A license remains valid until placed in inactive/resigned status, revoked, suspended, or expired by operation of law