Section 4735.27(A) - Application Contents for Foreign Real Estate Dealer's License +8Ohio · Real Estate · English

An application to act as a foreign real estate dealer must be in writing and filed with the superintendent of real estate. It must be in the form prescribed by the superintendent and contain specific statutorily required information about the applicant.

• ✓Application must be in writing and filed with the superintendent of real estate
• ✓Application must be in the form the superintendent prescribes
• ✓Application must contain all information required under division (A)

The application must include the name and address of the applicant. For partnerships, unincorporated associations, or similar business forms, it must list names and residence/business addresses of all partners, officers, directors, trustees, or managers, plus any limitation of liability of any partner or member. Corporations must list officers and directors with addresses; foreign corporations must additionally provide a copy of their articles of incorporation.

• ✓Partnership/association applicants must disclose all partners, officers, directors, trustees, or managers with residence and business addresses
• ✓Partnership applicants must state the limitation of liability of any partner or member
• ✓Corporate applicants must list officers and directors with residence and business addresses
• ✓Foreign corporation applicants must attach a copy of their articles of incorporation

The application must include the location and addresses of the principal office and all other offices; a general description of the applicant's prior business including a list of states where the applicant is a licensed foreign real estate dealer; the names and addresses of all salespersons at the date of application; and the nature and places of business for the ten-year period preceding the application.

• ✓Must disclose location and addresses of the principal office and all other offices
• ✓Must provide a list of states in which the applicant is a licensed foreign real estate dealer
• ✓Must list names and addresses of all salespersons at the date of application
• ✓Must disclose the nature and places of business for the ten-year period preceding the application

An application to act as a foreign real estate salesperson must be in writing and filed with the superintendent of real estate. It must be in the form prescribed by the superintendent and contain specific required information about the applicant, their employing dealer, their background, and employment history.

• ✓Application must be in writing and filed with the superintendent of real estate
• ✓Application must be in the form the superintendent prescribes
• ✓Must include name and complete residence and business addresses of the applicant
• ✓Must include the name of the foreign real estate dealer employing or intending to employ the applicant

The application must disclose the applicant's age, education, and experience in the sale of foreign real estate. It must also disclose the applicant's prior licensing history, including whether ever licensed or refused a license by the superintendent, and whether ever licensed or refused a similar permit by any real estate division or superintendent anywhere.

• ✓Must disclose age, education, and experience in the sale of foreign real estate
• ✓Must disclose whether the applicant has ever been licensed by the superintendent, and if so, when
• ✓Must disclose whether the applicant has ever been refused a license by the superintendent
• ✓Must disclose whether ever licensed or refused a similar permit by any real estate division/superintendent anywhere

The application must disclose the nature of employment and the names and addresses of the applicant's employers for the ten years immediately preceding the date of the application.

• ✓Must include the nature of the employment for the applicant
• ✓Must include names and addresses of employers for the ten years immediately preceding the application date

The license of every foreign real estate dealer and salesman expires on December 31 of each year. This creates a uniform annual expiration date regardless of when the license was originally issued. Candidates should understand that 'foreign' real estate refers to real property located outside of Ohio being sold within Ohio.

• ✓Every foreign real estate dealer and salesman license expires on the thirty-first day of December of each year
• ✓Expiration is on a fixed calendar-year basis, not on an anniversary of issuance

To renew a foreign real estate dealer's or salesman's license, the applicant must file an application for renewal with the superintendent of real estate and pay the fee prescribed in section 4735.15. The application must be filed within a specified window before expiration of the old license.

• ✓Renewal requires filing an application with the superintendent of real estate
• ✓Renewal requires payment of the fee prescribed in section 4735.15 of the Revised Code
• ✓Application must be filed not less than fifteen or more than sixty days before expiration of the old license

The superintendent has discretionary authority to accept a renewal application filed less than fifteen days before the expiration of the calendar year, even though the normal window closes fifteen days before expiration. This provides limited flexibility for late applicants.

• ✓The superintendent MAY accept a renewal application less than fifteen days before the expiration of any calendar year
• ✓This acceptance is discretionary ('may'), not mandatory

The superintendent must give notice of the action taken on any renewal application for a foreign real estate dealer's or salesman's license. This notice must be given without unreasonable delay.

• ✓The superintendent shall give notice of his action on any renewal application
• ✓Notice must be given without unreasonable delay

A foreign real estate dealer's license may be issued at any time during the year for the remainder of the calendar year. However, even when issued mid-year for a partial year, the annual fee prescribed in section 4735.15 is not reduced or prorated.

• ✓A foreign real estate dealer's license may be issued at any time for the remainder of the calendar year
• ✓The annual fee prescribed in section 4735.15 shall NOT be reduced for mid-year issuance

The Ohio Real Estate Commission or the superintendent of real estate may commence an investigation of a licensee's or unlicensed person's conduct at any time within three years from the date the alleged violation occurred. If the investigation is not commenced within this three-year window, it is barred, and no disciplinary action may be taken based on the barred alleged violation. This time limit protects licensees from stale complaints and enforces prompt regulatory action.

• ✓Investigations must be commenced within three years from the date the alleged violation occurred
• ✓If not commenced within three years, the investigation is barred and no disciplinary action may be taken
• ✓Neither the Commission nor the superintendent may suspend, revoke, or take other disciplinary action based on a barred investigation

Both the Ohio Real Estate Commission and the superintendent of real estate have authority to commence investigations. Investigations may relate to the conduct of licensed real estate brokers, real estate salespersons, foreign real estate dealers, and foreign real estate salespersons. Importantly, investigations may also determine whether an unlicensed person or unlicensed entity has violated the Revised Code, not just licensees.

• ✓Investigations may be commenced by either the Ohio Real Estate Commission or the superintendent of real estate
• ✓Investigations may cover licensed brokers, salespersons, foreign real estate dealers, and foreign real estate salespersons
• ✓Unlicensed persons and unlicensed entities may also be investigated for violations

Investigations are authorized pursuant to sections 1349.11, 4735.051, 4735.052, or 4735.18, or any other section of the Revised Code. The purpose is to determine whether a violation of this or another chapter of the Revised Code has occurred and whether, as a consequence, a licensee's license should be suspended or revoked or other disciplinary action taken.

• ✓Investigation authority derives from sections 1349.11, 4735.051, 4735.052, 4735.18, or any other section of the Revised Code
• ✓The purpose is to determine whether a violation occurred and whether discipline (suspension, revocation, or other action) is warranted

For purposes of division (A)(1), when an investigation is authorized by section 4735.051 of the Revised Code, the investigation is considered commenced as of the date on which a person files the complaint with the division of real estate. This clarifies exactly when the three-year limitation clock is satisfied for consumer-filed complaints.

• ✓For section 4735.051 investigations, commencement occurs on the date the complaint is filed with the division of real estate
• ✓The filing date determines whether the three-year statute of limitations is met

Section 4735.32 does not affect any criminal or civil liability that a licensed broker, salesperson, foreign real estate dealer, foreign real estate salesperson, or any unlicensed person may have under this or another chapter of the Revised Code or under Ohio common law. The three-year investigation bar applies only to administrative disciplinary action, not to separate criminal or civil consequences.

• ✓The statute does not limit or affect criminal or civil liability under the Revised Code or common law
• ✓The three-year bar applies only to administrative disciplinary investigations, not criminal or civil actions

Under ORC 4735.51(A), 'agency' and 'agency relationship' mean a relationship in which a licensee represents another person in a real estate transaction. This is the foundational concept for all agency duties owed by Ohio real estate licensees. These definitions apply throughout sections 4735.51 to 4735.74 of the Revised Code.

• ✓'Agency' means a relationship in which a licensee represents another person in a real estate transaction
• ✓These definitions apply to all of sections 4735.51 through 4735.74 of the Revised Code

Under ORC 4735.51(B), an 'agency agreement' is a contract between a licensee and a client in which the client promises to pay the broker valuable consideration, or agrees the licensee may receive valuable consideration from another, for performing an act requiring a real estate license.

• ✓An agency agreement is a contract between a licensee and a client
• ✓The client promises to pay the broker valuable consideration OR agrees the licensee may receive it from another party
• ✓The agreement covers performing acts that require a real estate license under Chapter 4735

Under ORC 4735.51(E), a 'client' means a person who has entered into an agency relationship with a licensee. A client is distinguished from a customer, who has not entered into an agency relationship.

• ✓A client is a person who has entered into an agency relationship with a licensee
• ✓Entering into an agency relationship is what makes a person a client

Under ORC 4735.51(F), 'confidential information' means all information a client directs to be kept confidential, or that if disclosed would adversely affect the client's position in the transaction, except information the agent is required by law to disclose, plus all information required by law to be kept confidential.

• ✓Includes all information the client directs to be kept confidential
• ✓Includes information that if disclosed would adversely affect the client's position
• ✓Excludes information the agent is legally required to disclose
• ✓Includes all information required by law to be kept confidential

Under ORC 4735.51(H), a 'dual agency relationship' means any of the dual agency relationships set forth in section 4735.70 of the Revised Code. This cross-references the specific dual agency provisions.

• ✓A dual agency relationship refers to those set forth in ORC section 4735.70
• ✓The definition incorporates the dual agency relationships defined elsewhere in the statute

Under ORC 4735.51(I), an 'in-company transaction' is a real estate transaction in which the purchaser and seller are both represented by the same brokerage. This situation triggers special agency disclosure requirements.

• ✓An in-company transaction occurs when purchaser and seller are both represented by the same brokerage
• ✓This concept is central to dual agency and in-company agency disclosures

Under ORC 4735.51(C), 'agent' and 'real estate agent' mean a person licensed under Chapter 4735 to represent another in a real estate transaction. Only licensed persons may act as agents.

• ✓An agent is a person licensed under Chapter 4735
• ✓The agent represents another person in a real estate transaction

Under ORC 4735.51(D), an 'affiliated licensee' means a real estate broker or salesperson licensed under Chapter 4735 who is affiliated with a brokerage. This term distinguishes licensees working under a brokerage.

• ✓An affiliated licensee is a real estate broker or salesperson
• ✓The affiliated licensee must be affiliated with a brokerage

Under ORC 4735.51(G), 'contemporaneous offers' means offers to purchase or lease on behalf of two or more clients represented by the same licensee for the same property that the licensee knows, has known, or has reason to know will be considered by the owner during the same period of time.

• ✓Involves offers by two or more clients represented by the same licensee
• ✓Offers are for the same property
• ✓The licensee knows or has reason to know the offers will be considered during the same period of time

Under ORC 4735.51(J), a 'purchaser' means a party who is the potential transferee of property. 'Purchaser' includes both a person seeking to buy property and a person seeking to rent property as a tenant or lessee.

• ✓A purchaser is a party who is the potential transferee of property
• ✓Includes persons seeking to buy property
• ✓Includes persons seeking to rent as tenant or lessee

Under ORC 4735.51(K), a 'real estate transaction' means any act described in division (A) of section 4735.01 of the Revised Code or that is related to the execution of such an act.

• ✓A real estate transaction is any act described in ORC 4735.01(A)
• ✓Includes acts related to the execution of an act described in that section

Under ORC 4735.51(L), 'subagency' and 'subagency relationship' mean an agency relationship in which a licensee acts for another licensee in performing duties for the client of that licensee.

• ✓Subagency is an agency relationship where a licensee acts for another licensee
• ✓The subagent performs duties for the client of the other licensee

Under ORC 4735.51(M), 'timely' means as soon as possible under the particular circumstances. This standard governs when agency disclosures and other required actions must be performed.

• ✓'Timely' means as soon as possible under the particular circumstances
• ✓The standard is circumstance-dependent rather than a fixed time period

Ohio law strictly limits the types of agency relationships a licensee may form in a real estate transaction. A licensee may only establish one of four specific relationships: representing the seller, representing the purchaser, representing both parties (dual agency), or acting as a subagent for the client of another licensee. Exam candidates must know these four permitted relationships and understand that no other type is authorized.

• ✓A licensee may represent the seller as agent
• ✓A licensee may represent the purchaser as agent
• ✓A licensee may act as a dual agent representing both seller and purchaser
• ✓A licensee may establish a subagency relationship with the client of another licensee

When a licensee forms an agency relationship with a client, certain other people in the brokerage automatically become agents of that same client. This includes the brokerage itself and its supervising management-level licensees, any licensee who receives confidential information, any licensee who assisted in establishing the relationship, and any licensee specifically appointed with client consent. Candidates must recognize these four categories of individuals who are considered agents of the client by operation of law.

• ✓The affiliated brokerage and management-level licensees with direct supervisory duties are agents of the client, except as provided in R.C. 4735.70(C)
• ✓Any licensee employed by or affiliated with the brokerage who receives confidential information from the client's agent is an agent of that client
• ✓Any other licensee in the brokerage who assisted in establishing the agency relationship is an agent of the client
• ✓Any licensee appointed with the client's consent to represent that client is an agent of the client

Not every licensee in a brokerage is automatically an agent of a client. Except for the specific individuals listed in divisions (B)(1) through (4), any other licensee affiliated with the same brokerage is NOT an agent of that client. This is the foundation for Ohio's system of appointed agency and helps prevent the entire brokerage from being conflicted in dual-representation situations.

• ✓Except as provided in divisions (B)(1) to (4), a licensee affiliated with the same brokerage is NOT an agent of that client
• ✓Affiliation with the same brokerage alone does not create an agency relationship with the client

The existence or promise of compensation does not by itself create an agency relationship in Ohio. A payment or promise of payment to a licensee does not determine whether an agency relationship has been formed between the licensee and a client, or between other licensees in the affiliated brokerage and that client. Candidates should remember that source of compensation and agency representation are separate concepts.

• ✓Payment or the promise of payment does not determine whether an agency relationship was created
• ✓The source of compensation does not establish agency between other brokerage licensees and the client

Every real estate brokerage in Ohio must develop and maintain a written company policy that identifies the types of agency relationships its members (affiliated licensees) are permitted to establish with clients. This is a statutory requirement, not optional, and forms the foundation for how the brokerage handles representation.

• ✓Each brokerage SHALL develop and maintain a written company policy setting forth the types of agency relationships its members may establish
• ✓The policy must comply with minimum standards established by rule by the superintendent of real estate with approval of the Ohio Real Estate Commission

The written company policy must specifically address whether dual agency relationships (as set forth in ORC Section 4735.70) are permitted within the brokerage. This means the brokerage must make an explicit decision and document whether its licensees may represent both parties in a transaction.

• ✓The policy SHALL include provisions on whether any dual agency relationships under section 4735.70 are permitted
• ✓Dual agency permissions must be addressed explicitly in the written policy

The company policy must set forth procedures to ensure the protection of a client's confidential information. Importantly, the confidentiality provisions must extend to all affiliated licensees of the brokerage, meaning the duty to protect confidential information is brokerage-wide.

• ✓The policy SHALL set forth procedures to ensure the protection of confidential information
• ✓The confidentiality provision must extend to affiliated licensees of the brokerage

Simply having a written policy does not shield the brokerage from liability. The brokerage remains liable if it, any of its licensees, or any of its employees fails to maintain the confidentiality of a client's confidential information. The policy does not serve as a defense against confidentiality failures.

• ✓Development and maintenance of the policy does NOT relieve a brokerage from liability for confidentiality failures
• ✓Liability extends to failures by the brokerage, any licensee of the brokerage, or any employee of the brokerage

The brokerage has an obligation to make its written agency company policy available. Upon request, a copy of the policy must be provided to any client or prospective client, ensuring transparency about how the brokerage handles agency relationships and confidentiality.

• ✓The brokerage SHALL provide a copy of its policy to each client or prospective client upon request
• ✓Both clients and prospective clients are entitled to request and receive the policy

A licensee must enter into a written agency agreement BEFORE performing certain acts on behalf of a client. This includes advertising or showing residential real property for a seller, making an offer to purchase for a purchaser, or making an offer to lease residential premises for a tenant where the term exceeds eighteen months. Leases of eighteen months or shorter do not trigger the written agreement requirement.

• ✓Must have a written agency agreement before advertising or showing residential real property on behalf of a seller
• ✓Must have a written agency agreement before making an offer to purchase on behalf of a purchaser
• ✓Must have a written agency agreement before making an offer to lease on behalf of a tenant for a term exceeding eighteen months
• ✓Leases of 18 months or less do not require a written agency agreement

Every written agency agreement must contain specific mandatory elements: an expiration date; a fair housing statement citing Ohio law (division (H) of ORC 4112.02) and federal law (42 U.S.C.A. 3601); a statement defining and prohibiting blockbusting; the HUD equal housing opportunity logotype (per 24 C.F.R. 109.30); a statement appointing the licensee as agent with an indication of whether the relationship is exclusive or nonexclusive; the terms of broker compensation; and a conspicuous statement that fees and commissions are not set by law.

• ✓Agreement must include an expiration date
• ✓Agreement must contain the Ohio and federal fair housing statement
• ✓Agreement must define blockbusting and state that it is illegal
• ✓Agreement must include the HUD equal housing opportunity logotype (24 C.F.R. 109.30)
• ✓Agreement must state the licensee is appointed as agent and indicate exclusive or nonexclusive relationship
• ✓Agreement must state the terms of broker compensation

The mandatory fair housing statement in the agreement must identify that it is illegal to refuse to sell, transfer, rent, lease, sublease, or finance housing, or to otherwise deny housing accommodations, because of protected characteristics. Candidates should memorize the Ohio-specific protected classes, which include several beyond the federal list.

• ✓Protected classes include race, color, religion, sex, familial status, ancestry, military status, disability, and national origin
• ✓Discrimination is prohibited in advertising, financing, and the provision of real estate brokerage services
• ✓The statement cites Ohio law (ORC 4112.02(H)) and federal law (42 U.S.C.A. 3601)

The written agency agreement must include a conspicuous statement that broker fees and commissions are not set by law and are fully negotiable. It must also disclose that commissions may be paid by the seller, buyer, landlord, tenant, or a third party, or by sharing/splitting between brokers. This provision reflects recent commission transparency reforms.

• ✓Statement must be conspicuous
• ✓Must state that broker fees and commissions are not set by law and are fully negotiable
• ✓Must state that commissions may be paid by seller, buyer, landlord, tenant, third party, or split between brokers

Section 4735.55 borrows definitions from other parts of the Revised Code. 'Residential real property' has the same meaning as in section 5302.30, while 'residential premises' and 'tenant' have the meanings given in section 5321.01. Candidates must understand that these cross-referenced definitions govern the scope of the written agency agreement requirement.

• ✓'Residential real property' is defined by reference to ORC section 5302.30
• ✓'Residential premises' and 'tenant' are defined by reference to ORC section 5321.01

Each written agency agreement must contain a place for both the licensee and the client to sign and date it. After both parties sign and date the agreement, the licensee must furnish a copy to the client in a timely manner.

• ✓Agreement must contain a place for the licensee and client to sign and date
• ✓Licensee must furnish a copy to the client in a timely manner after signing and dating

Every real estate brokerage in Ohio must develop a written brokerage policy on agency. This policy must be given to prospective sellers, tenants, and purchasers in accordance with Section 4735.56. It serves to inform clients about agency relationships before they commit to a transaction.

• ✓Each brokerage SHALL develop a written brokerage policy on agency
• ✓The policy must be provided to prospective sellers, tenants, and purchasers
• ✓The policy must comply with the specific content and timing requirements of Section 4735.56

The brokerage policy must explain the permissible agency relationships available under Section 4735.53 of the Revised Code, and must describe the fiduciary duties that the agent owes to the agent's client. This ensures clients understand their representation options.

• ✓Policy must explain permissible agency relationships under section 4735.53
• ✓Policy must state the duties the agent owes to the agent's client

The policy must disclose whether the brokerage and its licensee may act as a dual agent during the agency relationship. It must explain the options and consequences for the client if a dual agency situation arises, including the client's right to terminate the agency relationship and seek representation from another source.

• ✓Policy must disclose whether the brokerage/licensee may act as a dual agent
• ✓Policy must explain options and consequences of dual agency
• ✓Client has the right to terminate the agency relationship and seek representation elsewhere

The policy must state that a brokerage representing a purchaser as a client represents the purchaser's interests even though the seller's agent or the seller may compensate that purchaser's brokerage. Source of compensation does not determine agency representation.

• ✓A brokerage with a purchaser client represents the purchaser's interests
• ✓Purchaser representation continues even if the seller or seller's agent compensates the purchaser's brokerage

The policy must state the brokerage's policy on representation of purchasers or sellers. This informs clients whether the brokerage represents buyers, sellers, or both.

• ✓Policy must disclose the brokerage's policy on representation of purchasers or sellers
• ✓Disclosure allows clients to understand who the brokerage typically represents

The policy must disclose whether another licensee affiliated with the same brokerage may become the exclusive agent for the other party in the transaction, and whether each licensee will represent only the interests of that licensee's client (split agency arrangement).

• ✓Policy must disclose whether another affiliated licensee may exclusively represent the other party
• ✓Policy must state whether each licensee represents only their own client's interests

The policy must state the brokerage's policy on cooperation with other brokerages, including whether the brokerage offers compensation to other brokerages or will seek compensation from other brokerages.

• ✓Policy must state the brokerage's cooperation policy with other brokerages
• ✓Policy must state whether the brokerage offers or seeks compensation from other brokerages

The policy must state that the signature of the purchaser or seller indicates acknowledgement of receipt of the brokerage policy on agency. The signature is not consent to any agency relationship, only proof the policy was received.

• ✓Signature indicates acknowledgement of RECEIPT of the policy
• ✓Signature does not itself create or consent to an agency relationship