Section 4735.141(A) - Continuing Education Requirements +8Ohio · Real Estate · English

Each person licensed under section 4735.07 or 4735.09 must submit proof satisfactory to the superintendent of real estate that they have completed thirty hours of continuing education, as prescribed by the Ohio Real Estate Commission. This proof must be submitted on or before the licensee's birthday occurring three years after the date of initial licensure, and on or before the licensee's birthday every three years thereafter. The continuing education may be completed by either classroom instruction or distance education.

• ✓Licensees must complete 30 hours of continuing education every three-year reporting period
• ✓Proof must be submitted on or before the licensee's birthday three years after initial licensure, and every three years thereafter
• ✓CE may be completed by classroom instruction OR distance education
• ✓Exceptions apply for resigned status (4735.142), disabled licensees (division E), and as provided in 4735.13

If a person is licensed as a broker or broker on deposit, or acts as a management level licensee, the 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. This is part of the standard 30-hour requirement.

• ✓Brokers, brokers on deposit, and management-level licensees must include a three-hour course on the duties of a principal broker
• ✓This principal broker course covers issues involved in operating a real estate brokerage

Each licensee who is seventy years of age or older, within a continuing education reporting period, must complete a total of nine hours of continuing education, including instruction in Ohio real estate law; recently enacted state and federal laws affecting the real estate industry; municipal, state, and federal civil rights law; and canons of ethics for the real estate industry as adopted by the commission. If licensed as a broker, broker on deposit, or management level licensee, they must also complete a three-hour course on the duties of a principal broker. The proof must be submitted on or before the licensee's birthday that falls in the third year of the reporting period. A licensee 70 or older whose license is inactive is exempt from CE requirements.

• ✓Licensees 70 or older only need 9 hours of CE (instead of 30) per reporting period
• ✓The 9 hours must include Ohio real estate law, recent laws, civil rights law, and canons of ethics
• ✓Brokers/management-level licensees 70+ must also take the 3-hour principal broker course
• ✓Licensees 70+ with an inactive license are exempt from CE requirements
• ✓Proof due on or before the birthday in the third year of the reporting period

Persons licensed as real estate salespersons who subsequently become licensed real estate brokers must continue to submit proof of continuing education in accordance with the time period established in this section. The reporting schedule does not reset when upgrading licenses.

• ✓Salespersons who become brokers continue the same CE time period/schedule
• ✓The CE reporting cycle is not restarted upon license upgrade

The requirements of this section do not apply to any disabled licensee as provided in division (E) of this section. Disabled licensees may receive extensions of time under specified conditions.

• ✓Standard CE requirements do not apply to disabled licensees as provided in division (E)
• ✓Disabled licensee exemptions are subject to the extension procedures in division (E)

Any person licensed as a real estate broker (section 4735.07) or salesperson (section 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 section 4735.07 (brokers) or 4735.09 (salespersons) may apply for permanently resigned status
• ✓Application must be submitted to the superintendent of real estate and professional licensing
• ✓The application must be made before the date the licensee is required to file a renewal notice under division (B) of section 4735.14

A licensee whose license has been suspended may apply to permanently resign the license voluntarily on a form prescribed by the superintendent. This applies to suspensions under division (G) of section 4735.07, division (J) of section 4735.09, division (E) of section 4735.12, division (C) of section 4735.14, division (C) of section 4735.141, or section 4735.182. The resignation is considered final without any action taken by the superintendent.

• ✓A suspended licensee may apply to permanently resign the license voluntarily using the superintendent's prescribed form
• ✓Resignation applies to suspensions under sections 4735.07(G), 4735.09(J), 4735.12(E), 4735.14(C), 4735.141(C), or 4735.182
• ✓The resignation is final without the superintendent taking any action

A person whose license is in a permanently resigned status who wishes to obtain an active or inactive license must reapply. They must apply in accordance with the requirements in section 4735.07 (broker) or 4735.09 (salesperson) as applicable, or under rules adopted by the commission pursuant to division (A) of section 4735.10.

• ✓A permanently resigned licensee must reapply to obtain an active or inactive license
• ✓Reapplication must follow requirements of section 4735.07 or 4735.09, whichever applies
• ✓Reapplication may also follow rules adopted by the commission under division (A) of section 4735.10

If placing a broker's license in a permanently resigned status will result in the closure of the broker's brokerage, the broker must provide written notice to each salesperson associated with that broker. This written notice stating the fact of closure must be provided within three days after applying to the superintendent to place the license in permanently resigned status.

• ✓A broker must notify affiliated salespersons in writing if resigning the license will close the brokerage
• ✓The written notice must be provided within three days after applying for permanently resigned status
• ✓The notice must state the fact that the brokerage will close

Section 4735.142 does not apply to any licensee whose license has been suspended pursuant to division (F) of section 4735.181, or whose license has been suspended due to disciplinary action ordered by the commission pursuant to section 4735.051. Such licensees cannot use this section to permanently resign.

• ✓This section does not apply to licenses suspended under division (F) of section 4735.181
• ✓This section does not apply to suspensions from disciplinary action ordered under section 4735.051
• ✓Licensees under these excluded suspensions cannot permanently resign under this section

The superintendent of real estate may investigate any licensee's conduct on the superintendent's own motion. The Ohio Real Estate Commission SHALL (mandatory) impose disciplinary sanctions on any licensee convicted of a felony or crime of moral turpitude, whether or not acting in a real estate capacity or handling their own property. For other listed violations, the Commission MAY impose sanctions when the licensee acts in a real estate capacity or handles their own property.

• ✓Conviction of a felony or crime of moral turpitude requires mandatory sanctions regardless of whether the conduct was in a real estate capacity
• ✓The superintendent may investigate any licensee on the superintendent's own motion
• ✓Investigations and sanctions are subject to section 4735.32 of the Revised Code

Licensees may face sanctions for knowingly making misrepresentations, making false promises intended to influence/persuade/induce, or engaging in a continued course of misrepresentation or false promises through agents, salespersons, advertising, or otherwise.

• ✓Knowingly making any misrepresentation is a disciplinary offense (A)(1)
• ✓Making false promises with intent to influence, persuade, or induce is prohibited (A)(2)
• ✓A continued course of misrepresentation through agents/advertising is a separate offense (A)(3)

Acting for more than one party in a transaction is prohibited except as permitted under section 4735.71 (dual agency compliance). Licensees must account for or remit money belonging to others within a reasonable time.

• ✓Acting for more than one party is prohibited unless in compliance with section 4735.71 (A)(4)
• ✓Failure within a reasonable time to account for or remit money belonging to others is an offense (A)(5)

Dishonest or illegal dealing, gross negligence, incompetency, or misconduct are grounds for discipline. These are broad catch-all standards frequently tested on exams.

• ✓Dishonest or illegal dealing is a disciplinary offense (A)(6)
• ✓Gross negligence, incompetency, or misconduct are all separate grounds for sanctions

A violation of municipal/federal civil rights laws or unlawful discriminatory practices under Chapter 4112 (by final court adjudication) relevant to buying/selling real estate is grounds for discipline when arising from bona fide real estate transactions. Second or subsequent violations do not require final court adjudication.

• ✓First violation requires final adjudication by a court (A)(7)(a)
• ✓Second or subsequent violations do not require final court adjudication (A)(7)(b)
• ✓For a second offense, the commission shall suspend for a minimum of two months or revoke the license
• ✓For any subsequent offense, the commission shall revoke the license

Procuring a license by fraud, misrepresentation, or deceit for oneself or a salesperson is grounds for discipline. Violating or failing to comply with sections 4735.51 to 4735.74, or willfully disregarding any other provisions of the chapter, is also an offense.

• ✓Procuring a license by fraud, misrepresentation, or deceit is prohibited (A)(8)
• ✓Violating sections 4735.51 to 4735.74 or willfully disregarding other chapter provisions is a violation (A)(9)

A broker or salesperson may not demand a commission without reasonable cause to which they are not entitled. Paying or dividing commissions with unlicensed persons is prohibited except as permitted under section 4735.20 (or with out-of-state commercial brokers under 4735.022).

• ✓Demanding a commission without reasonable cause to which the licensee is not entitled is prohibited (A)(10)
• ✓Dividing commissions with unlicensed persons is prohibited except as permitted under section 4735.20 (A)(11)
• ✓Commissions may be shared with out-of-state commercial brokers operating under section 4735.022

Falsely claiming membership in a real estate professional association, and accepting/giving/charging undisclosed commissions, rebates, or direct profits on expenditures made for a principal, are prohibited.

• ✓Falsely representing membership in a professional association is prohibited (A)(12)
• ✓Undisclosed commissions, rebates, or direct profits on expenditures for a principal are prohibited (A)(13)

Offering anything of value beyond the recited consideration as an inducement, or offering real estate as a lottery/scheme prize, is prohibited. Acting as both broker/salesperson and undisclosed principal in a transaction is prohibited.

• ✓Offering value beyond recited consideration as an inducement is prohibited (A)(14)
• ✓Offering real estate as a prize in a lottery or scheme of chance is prohibited
• ✓Acting in dual capacity of licensee and undisclosed principal is prohibited (A)(15)

Guaranteeing, authorizing, or permitting guarantees of future resale profits is prohibited. Advertising or placing a sign on property without the owner's or authorized agent's consent is prohibited.

• ✓Guaranteeing future profits from resale of real property is prohibited (A)(16)
• ✓Advertising or placing a sign without owner/authorized agent consent is prohibited (A)(17)

Real estate brokers and salespersons licensed under Chapter 4735 must comply with specific statutory divisions and sections, or any rules adopted under them. Failure to comply constitutes a violation subject to sanctions. The specific requirements referenced include divisions (B) and (D) of section 4735.13, division (D) of section 4735.14, and sections 4735.22, 4735.55, 4735.56, 4735.58, and 4735.80.

• ✓No broker or salesperson shall fail to comply with divisions (B) and (D) of section 4735.13, division (D) of section 4735.14, or sections 4735.22, 4735.55, 4735.56, 4735.58, and 4735.80
• ✓Compliance also extends to any rules adopted under those divisions or sections
• ✓A violation of these requirements constitutes a violation of division (A) of section 4735.181

When the superintendent determines a licensee has violated division (A), the superintendent may choose between two courses of action: initiate formal disciplinary action, or serve a citation and impose sanctions. The superintendent has discretion in selecting which approach to take.

• ✓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
• ✓The choice between these two options is discretionary ('may do either')

Every citation served under this section must notify the licensee of the alleged violations and inform them of the right to request a hearing under Chapter 119. The citation must include a statement of the fine amount, which is capped at $200 per violation. All fines collected are credited to the real estate recovery fund.

• ✓A citation shall give notice of alleged violations and inform the licensee of the opportunity to request a hearing under Chapter 119
• ✓The fine is a maximum of two hundred dollars ($200) per violation
• ✓All fines collected are credited to the real estate recovery fund created under section 4735.12

If a licensee is cited three times within twelve consecutive months, the superintendent is required to initiate formal disciplinary action for any subsequent violation within the same twelve-month period. This escalates repeat offenders from citations to formal discipline.

• ✓Three citations within twelve consecutive months triggers mandatory action
• ✓The superintendent SHALL initiate disciplinary action under section 4735.051 for any subsequent violation in the same twelve-month period
• ✓This is a mandatory (not discretionary) escalation for repeat violators

A citation becomes final if the licensee fails to request a hearing within thirty days after the date of service, or if the licensee and superintendent fail to reach an alternative agreement. Once final, the citation's requirements become enforceable.

• ✓A licensee must request a hearing within thirty (30) days after the date of service of the citation
• ✓If no hearing is requested within thirty days, the citation becomes final
• ✓If the licensee and superintendent fail to reach an alternative agreement, the citation becomes final

If a licensee fails to comply with the requirements of a final citation within the required timeframe (division E), the superintendent must automatically suspend the licensee's license. This suspension is automatic and mandatory, not discretionary.

• ✓The superintendent SHALL automatically suspend a licensee's license upon failure to comply with division (E)
• ✓The suspension is automatic and mandatory, not subject to discretion
• ✓Suspension results from failing to meet final citation requirements within thirty days

Unless otherwise indicated, a licensee named in a final citation must satisfy all requirements contained in the citation within thirty days after the citation's effective date. This gives licensees a defined window to come into compliance.

• ✓The licensee must meet all requirements in the final citation within thirty (30) days after the effective date
• ✓This deadline applies unless the citation otherwise indicates a different timeframe

When a check or other draft instrument used to pay any fee required under Chapter 4735 is returned to the superintendent unpaid by the financial institution for any reason, the superintendent must notify the entity or person that the instrument was returned for insufficient funds. This general rule applies to all categories of payers before specific sanctions are triggered.

• ✓Applies to any fee required under Chapter 4735 paid by check or draft that is returned unpaid for any reason
• ✓The superintendent must notify the entity or person that the instrument was returned for insufficient funds
• ✓A returned instrument for any reason (not just NSF) triggers the notification and sanction process

If the returned check or draft was submitted by a licensee, the superintendent must additionally notify the licensee that the license will be suspended unless the licensee resolves the payment. The licensee has fifteen days after the mailing of the notice to submit both the original fee and a $100 fee. Failure to submit both fees on time, or a subsequent returned instrument, results in immediate suspension without a hearing.

• ✓Licensee must submit the original fee plus a one-hundred-dollar ($100) fee within fifteen days after mailing of notice
• ✓Failure to submit both fees in time results in immediate license suspension without a hearing
• ✓If a check for either fee is again returned unpaid, license is suspended immediately and licensee must cease activity under this chapter

If the returned instrument was remitted by a person or entity applying to qualify foreign real estate or renew a property registration, the superintendent must notify the applicant that registration will be suspended. The applicant has fifteen days after the mailing of the notice to submit the original fee plus a $100 fee. Failure to comply, or a second returned instrument, results in immediate suspension of the property registration without a hearing.

• ✓Applies to applicants qualifying foreign real estate or renewing a property registration
• ✓Applicant must submit original fee plus one-hundred-dollar ($100) fee within fifteen days of notice mailing
• ✓Failure results in immediate suspension of property registration without a hearing and the applicant must cease activity

If the returned instrument was remitted by an applicant for licensure, the application is automatically rejected or approval withdrawn unless the applicant submits the original fee plus a $100 fee within fifteen days after the mailing of the notice. If both fees are not submitted in time, or if a check for either fee is again returned, the application is denied or approval withdrawn.

• ✓Applicant for licensure must submit original fee plus one-hundred-dollar ($100) fee within fifteen days of notice mailing
• ✓Failure to comply causes automatic rejection of the application or withdrawal of approval
• ✓A subsequent returned instrument results in denial of the application or withdrawal of approval

If the returned instrument was remitted by an education course provider or course provider applicant, the application is automatically rejected or approval withdrawn unless the applicant submits the original fee plus a $135 fee within fifteen days after the mailing of the notice. Note the higher additional fee of $135 for education course providers compared to the $100 fee for other categories.

• ✓Education course providers must submit the original fee plus a one-hundred-thirty-five-dollar ($135) fee within fifteen days
• ✓The additional fee for education course providers ($135) is higher than the $100 fee for licensees, registrations, and licensure applicants
• ✓Failure to comply or a subsequent returned instrument results in denial of the application or withdrawal of approval

A licensed real estate broker or licensed foreign real estate dealer may not pay a commission, fee, or other compensation for performing acts specified in section 4735.01 to any person who is not a licensed real estate broker or salesperson (or licensed foreign real estate dealer or salesperson). This is the general rule, subject to exceptions in divisions (B), (C), and (G).

• ✓Brokers/dealers may only pay compensation to licensed brokers or licensed salespersons for real estate acts
• ✓Exceptions exist under divisions (B), (C), and (G)
• ✓Applies to acts specified in section 4735.01 of the Revised Code

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 by law to provide the buyer or seller with the names of at least three home inspectors. This prevents the appearance of steering clients to a single preferred inspector and gives consumers choice.

• ✓If a broker or salesperson provides a home inspector's name, they must provide names of at least three home inspectors
• ✓This requirement is triggered only when the licensee chooses to provide an inspector's name

Any home inspector whose name is provided by a broker or salesperson must be licensed under Chapter 4764 of the Ohio Revised Code. Licensees must ensure that any inspectors they name to consumers hold proper Ohio home inspector licensure.

• ✓Any home inspector named by a licensee must be licensed under Chapter 4764 of the Revised Code
• ✓Only licensed home inspectors may be referred to purchasers or sellers

No cause of action shall arise against a broker or salesperson for providing or failing to provide the names of licensed home inspectors or information on home inspection services, or for failing to recommend a licensed home inspector to a purchaser or seller. This statutory immunity protects licensees from lawsuits related to inspector referrals.

• ✓No cause of action arises against a licensee for providing or failing to provide inspector names or inspection information
• ✓No cause of action arises for failing to recommend a licensed home inspector to a purchaser or seller

Providing a purchaser or seller with the names of licensed home inspectors does not constitute an endorsement or recommendation of those inspectors. Additionally, providing names does not obligate the broker or salesperson to satisfy any due diligence requirements with respect to the licensed home inspectors.

• ✓Providing inspector names does not constitute an endorsement or recommendation
• ✓Providing names does not obligate the licensee to perform due diligence on the inspectors

The statute does not require a broker or salesperson to provide purchasers or sellers of real estate with information on home inspection services or home inspectors. The duty to provide three names only arises if the licensee voluntarily provides an inspector's name in the first place.

• ✓Section 4735.22 does not require a licensee to provide information on home inspection services or inspectors
• ✓The three-name rule applies only when the licensee initiates by providing a name

When earnest money connected to a real estate purchase agreement is deposited in a broker's trust or special account, the broker must maintain that money in the account according to the terms of the purchase agreement until one of five specific triggering events occurs. This is the general default rule protecting earnest money deposits.

• ✓Broker must hold earnest money per the purchase agreement terms until a statutory triggering event occurs
• ✓Earnest money must be kept in the broker's trust or special account
• ✓The duty applies 'except as otherwise provided' in the section

One authorized way the broker may release earnest money is when the transaction closes. At closing the broker disburses the earnest money to the closing or escrow agent, or otherwise disburses the money pursuant to the terms of the purchase agreement.

• ✓Broker may disburse earnest money when the transaction closes
• ✓Disbursement goes to the closing/escrow agent or per the purchase agreement terms

A broker may disburse earnest money when the parties provide separate written instructions signed by BOTH parties specifying how the broker is to disburse the money, and the broker acts pursuant to those instructions.

• ✓Written disbursement instructions must be signed by both parties
• ✓Broker must act pursuant to the signed instructions

A broker may disburse earnest money when the broker receives a copy of a final court order specifying to whom the earnest money is to be awarded, and the broker acts pursuant to that court order.

• ✓Broker must receive a copy of a FINAL court order
• ✓The court order must specify to whom the money is awarded, and broker must follow it

A broker may disburse earnest money when the transaction is canceled by the record owner of residential property under division (C)(1) of section 5301.95 of the Revised Code, and the broker disburses the earnest money to the record owner pursuant to that division.

• ✓Applies when a residential transaction is canceled by the record owner under ORC 5301.95(C)(1)
• ✓Broker disburses earnest money to the record owner pursuant to that division

Earnest money may become unclaimed funds as defined in division (M)(2) of section 169.02 of the Revised Code. After providing the notice required by division (E) of section 169.03, the broker must report the unclaimed funds to the director of commerce under section 169.03 and remit all of the earnest money to the director.

• ✓Unclaimed funds are defined in ORC 169.02(M)(2)
• ✓Broker must give notice under ORC 169.03(E), report to the director of commerce, and remit all earnest money to the director

No person may sell, lease, or otherwise deal in foreign real estate in Ohio unless they have qualified the foreign real estate under Section 4735.25 and meet one of the licensing conditions. Foreign real estate refers to real estate located outside of Ohio. The rule protects Ohio consumers from fraud in out-of-state property transactions.

• ✓A person must qualify foreign real estate under Section 4735.25 before selling, leasing, or dealing in it in Ohio
• ✓In addition to qualifying the property, the person must satisfy one of the licensing conditions in subdivisions (a), (b), or (c)

Certain persons are exempt from the qualification requirement: an actual bona fide owner selling for their own account in a single transaction (not repeated or successive transactions), and persons excepted from obtaining a license under Section 4735.01. These exceptions ensure occasional owner-sellers are not burdened by the qualification process.

• ✓A bona fide owner selling for their own account in a single, non-repeated transaction is exempt from qualification
• ✓Persons excepted from obtaining a license under Section 4735.01 are exempt from the qualification requirement

To lawfully deal in qualified foreign real estate, a person must meet one of three licensing conditions: licensed under Section 1707.15 or 1707.16 prior to October 14, 1969; licensed as a foreign real estate dealer or salesperson under former Section 1707.331 prior to the effective date of this section (only until license expiration); or licensed under Section 4735.27 or 4735.28.

• ✓Persons licensed under Section 1707.15 or 1707.16 prior to October 14, 1969 satisfy the licensing requirement
• ✓Former Section 1707.331 licensees qualify only until their license expiration date
• ✓Persons licensed under Section 4735.27 or 4735.28 satisfy the licensing requirement

A licensed foreign real estate dealer or salesperson acting in a fiduciary capacity for a bona fide owner in the sale or lease of foreign real estate, or otherwise dealing in foreign real estate in a fiduciary capacity for its bona fide owner, in a single transaction and not by way of repeated or successive transactions for that owner, does not need to qualify the real estate under this section.

• ✓A licensed foreign real estate dealer/salesperson acting in a fiduciary capacity for a bona fide owner need not qualify the property
• ✓The fiduciary exemption applies only to a single transaction, not repeated or successive transactions for that owner