Section 4735.57(A) Agency Disclosure Statement - Required Contents +7Ohio · Real Estate · English

The superintendent of real estate, with approval of the Ohio real estate commission, must establish an agency disclosure statement by rule. This statement must include a place for the licensee and all parties to the transaction to sign and date it, ensuring documented acknowledgment of the agency relationship.

• ✓The superintendent of real estate establishes the agency disclosure statement by rule
• ✓The Ohio real estate commission must approve the agency disclosure statement
• ✓The statement must contain a place for the licensee and parties to sign and date it

The agency disclosure statement must contain sections identifying the parties involved. This includes (unless confidential) the names of all parties in the transaction, the address of the real estate being sold or leased, and the name of each licensee along with the brokerage each is affiliated with.

• ✓Names of all parties must be disclosed unless confidential
• ✓The address of the real estate being sold or leased must be included
• ✓The name of each licensee and their affiliated brokerage must be disclosed

The statement must disclose which party each licensee in the named brokerage represents. If a purchaser's licensee and a seller's licensee are affiliated with the same brokerage, it must state whether they are acting as dual agents or individually representing the parties separately.

• ✓The statement must disclose the party each licensee represents in the transaction
• ✓When both licensees are affiliated with the same brokerage, the statement must disclose whether they act as dual agents or represent parties separately

If only one licensee is involved, the statement must disclose whether that licensee is a dual agent or represents only one party. If both purchaser and seller are represented by licensees affiliated with the same brokerage, the statement must disclose that the brokerage is a dual agent.

• ✓If only one licensee is involved, the statement must disclose whether that licensee is a dual agent or represents one party
• ✓If both parties are represented by licensees of the same brokerage, the brokerage is a dual agent

The statement must disclose that the client's signature indicates informed consent to the agency relationship. It must also advise that if the client does not understand the agency disclosure statement, the client should consult an attorney.

• ✓The client's signature indicates informed consent to the agency relationship
• ✓Clients who do not understand the statement should consult an attorney

A licensee who is a purchaser's agent or a seller's subagent working with a purchaser must present the agency disclosure statement (per ORC 4735.57) to the purchaser and request the purchaser to sign and date it no later than the preparation of an offer to purchase or lease, or a written request for a proposal to lease.

• ✓Purchaser's agent or seller's subagent must present the agency disclosure statement to the purchaser no later than the preparation of an offer to purchase or lease
• ✓The purchaser must be requested to sign and date the statement
• ✓The agency disclosure statement is described in ORC section 4735.57

Prior to presenting the seller with a written offer to purchase or lease, or a written request for a proposal to lease, the seller's agent (or the purchaser's agent when the seller is unrepresented) must present the agency disclosure statement to the seller and request the seller to sign and date it.

• ✓The seller must receive the agency disclosure statement before being presented with a written offer or proposal to lease
• ✓The seller's agent presents it, or the purchaser's agent does so if the seller is unrepresented
• ✓The seller must be requested to sign and date the statement

A licensee must indicate the accurate agency relationship on the agency disclosure statement, ensuring all parties understand who represents whom in the transaction.

• ✓A licensee shall indicate the accurate agency relationship on the disclosure statement
• ✓Misrepresenting the agency relationship violates this requirement

The disclosure requirements of this section do not apply to: (1) rental or leasing of residential premises (as defined in ORC 5321.01) if the agreement can be performed in 18 months or less; (2) referral of a prospective purchaser or seller to another licensee; (3) transactions involving sale, lease, or exchange of foreign real estate as defined in ORC 4735.01(E); and (4) transactions involving the sale of a cemetery lot or cemetery interment right.

• ✓Residential rentals/leases performable in eighteen months or less are exempt
• ✓Referrals of a prospective purchaser or seller to another licensee are exempt
• ✓Transactions involving foreign real estate are exempt
• ✓Sale of a cemetery lot or cemetery interment right is exempt

After the purchaser signs, the licensee must deliver the signed statement to the seller's agent, or to the seller directly if the seller is not represented by an agent. This ensures the seller side is informed of the purchaser's agency relationship.

• ✓The licensee must deliver the purchaser-signed statement to the seller's agent
• ✓If the seller is not represented, the statement is delivered directly to the seller

A licensee selling property at auction must verbally disclose to the audience, prior to the auction, that the licensee represents the seller. The agency disclosure statement must then be provided to the successful bidder before the bidder signs a purchase contract.

• ✓Before the auction, the licensee must verbally disclose to the audience that the licensee represents the seller
• ✓The agency disclosure statement must be provided to the successful bidder prior to the bidder signing a purchase contract

Evidence that a licensee failed to comply with this section is prima-facie evidence of misconduct in violation of division (A)(6) of ORC 4735.18, exposing the licensee to disciplinary action.

• ✓Failure to comply is prima-facie evidence of misconduct
• ✓The violation falls under division (A)(6) of ORC section 4735.18

A licensee is obligated to perform all duties imposed on a real estate agent at common law, except to the extent those duties are inconsistent with duties prescribed in Chapter 4735 or are otherwise modified by agreement.

• ✓Licensees must perform all common law duties of a real estate agent
• ✓Common law duties yield where inconsistent with Chapter 4735 or modified by agreement

Under ORC 4735.62, when representing any client in an agency or subagency relationship, the licensee is a fiduciary of the client and must use best efforts to further the client's interest. This establishes the overarching duty framework governing agent conduct in Ohio.

• ✓A licensee representing a client in an agency or subagency relationship shall be a fiduciary of the client
• ✓The licensee must use best efforts to further the interest of the client
• ✓The listed duties are illustrative but not exhaustive ('including, but not limited to')

The licensee must exercise reasonable skill and care in representing the client and carrying out the agency relationship, and must perform all chapter duties in a manner loyal to the client's interest. These form the core competence and loyalty obligations tested on the exam.

• ✓Exercise reasonable skill and care in representing the client (division A)
• ✓Perform all duties specified in the chapter in a manner loyal to the client's interest (division D)
• ✓Follow any lawful instructions of the client (division C)

Licensees must comply with all requirements of Chapter 4735 and other applicable statutes, rules, and regulations, expressly including the Ohio fair housing law (division (H) of section 4112.02 of the Revised Code) and the federal fair housing law (42 U.S.C.A. 3601, as amended).

• ✓Must comply with the Ohio fair housing law under division (H) of section 4112.02 of the Revised Code
• ✓Must comply with the federal fair housing law, 42 U.S.C.A. 3601, as amended
• ✓Must comply with all requirements of Chapter 4735 and other applicable statutes, rules, and regulations

The licensee must disclose to the client any material facts of the transaction of which the licensee is aware or should be aware in the exercise of reasonable skill and care, except facts that are confidential information under a current or prior agency or dual agency relationship.

• ✓Disclose material facts the licensee is aware of or should be aware of through reasonable skill and care (division F)
• ✓Do NOT disclose facts that are confidential information under a current or prior agency or dual agency relationship
• ✓Advise the client to obtain expert advice on material matters when necessary or appropriate (division G)

The licensee must account in a timely manner for all moneys and property received in which the client has or may have an interest. This is a critical escrow/trust-handling obligation for licensees.

• ✓Account in a timely manner for all moneys and property received (division H)
• ✓The duty applies where the client has or may have an interest in the money or property

The licensee must keep all confidential information confidential unless permitted to disclose it under division (B) of section 4735.74 of the Revised Code. This includes not disclosing confidential information to any licensee who is not an agent of the client.

• ✓Keep all confidential information confidential (division I)
• ✓Disclosure is only permitted as allowed under division (B) of section 4735.74 of the Revised Code
• ✓Must not disclose confidential information to any licensee who is not an agent of the client

The licensee must perform the terms of any written agency agreement and follow the client's lawful instructions. This ties the fiduciary duty to the specific contractual agency arrangement.

• ✓Perform the terms of any written agency agreement (division B)
• ✓Follow any lawful instructions of the client (division C)

When necessary or appropriate, the licensee must advise the client to obtain expert advice related to material matters. This protects clients on matters beyond the licensee's expertise (e.g., legal, tax, structural issues).

• ✓Advise the client to obtain expert advice on material matters when necessary or appropriate (division G)
• ✓This duty arises specifically for material matters requiring specialized expertise

The core fiduciary duties required of a licensee under section 4735.62 of the Revised Code are mandatory and cannot be waived by a client under any circumstances. These represent the fundamental obligations a licensee owes to their client that remain in force throughout the agency relationship.

• ✓Duties required under section 4735.62 may NOT be waived by a client
• ✓Fiduciary duties under 4735.62 must be performed by all licensees regardless of client agreement

Certain duties required under sections 4735.63 or 4735.65 of the Revised Code CAN be waived, but only if the client agrees and signs a proper waiver of duties statement. Absent a signed waiver, the licensee must perform these duties in full.

• ✓A licensee shall perform duties under 4735.63 or 4735.65 unless the client waives them
• ✓Waiver is only valid if the client agrees AND signs a waiver of duties statement per division (C)

The waiver of duties statement must contain specific mandatory elements: the fiduciary duties required under 4735.62; a list of waivable duties from 4735.63 or 4735.65 formatted so parties can indicate which are being waived; a statement that no other licensee is required to perform the waived duty; a statement that the client may hire legal counsel or other professionals; and a place for the client and licensee to sign and date.

• ✓Must include fiduciary duties under 4735.62 and a list of waivable duties allowing parties to indicate which are waived
• ✓Must state no other licensee is required to perform the waived duty on behalf of the client
• ✓Must inform the client that legal counsel or other professionals may be hired
• ✓Must provide a place for both client and licensee to sign and date the statement

The superintendent of real estate, with approval of the Ohio Real Estate Commission, is responsible for establishing the official waiver of duties statement by rule. This ensures a standardized, legally compliant form is used for any waiver of duties.

• ✓The superintendent of real estate establishes the waiver of duties statement by rule
• ✓The waiver statement must have approval of the Ohio Real Estate Commission

When representing a seller in an agency relationship, a licensee must actively seek a purchase offer at a price and with terms acceptable to the seller. Once the property is under a contract of sale, lease, or letter of intent to lease, the licensee is not required to seek additional offers unless the seller specifically directs otherwise.

• ✓Licensee shall seek a purchase offer at a price and terms acceptable to the seller
• ✓Licensee is not obligated to seek additional offers if property is under contract of sale, lease, or letter of intent to lease, unless the seller so directs

A licensee representing a seller must accept delivery of and present any purchase offer to the seller in a timely manner. This duty applies even when the property is already subject to a contract of sale, lease, or letter of intent to lease.

• ✓Licensee must accept delivery of and present any purchase offer to the seller in a timely manner
• ✓This duty applies even if the property is already subject to a contract of sale, lease, or letter of intent to lease

A licensee does not breach any duty or obligation to a seller with whom the licensee has an agency relationship by showing alternative properties to a prospective purchaser or by acting as an agent or subagent for other sellers. This clarifies permissible conduct that does not violate loyalty duties.

• ✓Showing alternative properties to a prospective purchaser is not a breach of duty to the seller
• ✓Acting as an agent or subagent for other sellers is not a breach of duty

Within the scope of knowledge required for licensure, a licensee must answer the seller's questions and provide information regarding any offers or counteroffers received on the property.

• ✓Licensee must answer seller's questions and provide information regarding offers or counteroffers
• ✓This duty is limited to the scope of knowledge required for licensure

A licensee must assist the seller in developing, communicating, and presenting offers or counteroffers during the transaction to promote the seller's interests.

• ✓Licensee must assist the seller in developing offers or counteroffers
• ✓Licensee must help communicate and present offers or counteroffers

Within the scope of knowledge required for licensure, a licensee must answer the seller's questions regarding the steps the seller must take to fulfill the terms of any contract.

• ✓Licensee must answer seller's questions about steps to fulfill contract terms
• ✓This duty is limited to the scope of knowledge required for licensure

Nothing in this section permits a licensee to perform any act or service that constitutes the practice of law. Licensees must limit their activities to those within their licensure scope and refer legal matters to attorneys.

• ✓This section does not permit a licensee to perform acts constituting the practice of law
• ✓Licensee duties are confined within the scope of knowledge required for licensure

When representing a purchaser in an agency relationship, a licensee must seek a property at a price and with purchase or lease terms acceptable to the purchaser. Once the purchaser is under a contract to purchase, has entered a lease, or has extended a letter of intent to lease, the licensee is not obligated to seek additional possibilities unless the client directs otherwise.

• ✓Licensee must seek property at price and terms acceptable to the purchaser
• ✓Licensee is not obligated to seek additional possibilities once purchaser is a party to a purchase contract, lease, or letter of intent, unless the client directs otherwise

A licensee must present any offer to purchase or lease to the seller or seller's agent in a timely manner, even if the property is already subject to a contract of sale, lease, or letter of intent to lease. The licensee must also accept delivery of and present any counteroffers to the purchaser in a timely manner.

• ✓Offers must be presented to the seller/seller's agent in a timely manner even if the property is already under contract, lease, or letter of intent
• ✓Licensee must accept delivery of and present counteroffers to the purchaser in a timely manner

Within the scope of knowledge required for licensure, a licensee must answer the purchaser's questions and provide information about any offers or counteroffers. This duty is limited to the licensee's licensed scope of knowledge.

• ✓Licensee must answer purchaser's questions within the scope of knowledge required for licensure
• ✓Licensee must provide information regarding any offers or counteroffers

A licensee representing a purchaser must assist the purchaser in developing, communicating, and presenting offers or counteroffers.

• ✓Licensee must assist in developing, communicating, and presenting offers or counteroffers

Within the scope of knowledge required for licensure, a licensee must answer the purchaser's questions regarding the steps the purchaser must take to fulfill the terms of any contract.

• ✓Licensee must answer purchaser's questions about steps to fulfill contract terms
• ✓This duty is limited to the scope of knowledge required for licensure

Under Ohio Revised Code Section 4735.70, an individual licensee is considered a dual agent when that licensee represents both the purchaser and the seller as clients in the same real estate transaction. This creates a situation where one agent owes fiduciary duties to opposing parties, which is why dual agency is heavily regulated and requires disclosure and consent.

• ✓A licensee who represents both the purchaser and the seller as clients in the same real estate transaction is a dual agent
• ✓Both parties must be represented as clients (not merely customers) for dual agency to exist

A brokerage becomes a dual agent when it represents both the purchaser and the seller as clients in the same real estate transaction. Because a brokerage encompasses all affiliated licensees, when different agents within the same brokerage represent opposing parties in one transaction, the brokerage itself is treated as a dual agent under the statute.

• ✓A brokerage that represents both the purchaser and the seller as clients in the same real estate transaction is a dual agent
• ✓Dual agency at the brokerage level arises even when separate licensees within the firm represent each party

A management level licensee who represents a client in an in-company transaction is a dual agent. An in-company transaction is one where both the buyer and seller are represented by licensees affiliated with the same brokerage. Management personnel are captured under dual agency because of their oversight role over both sides of the transaction.

• ✓A management level licensee who represents a client in an in-company transaction is a dual agent
• ✓In-company transactions trigger dual agency status for management level licensees

When there is more than one management level licensee affiliated with the brokerage, a management level licensee is NOT a dual agent under two specific circumstances. First, if the management level licensee personally represents either the seller or the purchaser, that licensee represents only that client's interests. Second, if the management level licensee is personally the purchaser or seller in the transaction, they represent only their own interest. These exceptions require the presence of more than one management level licensee at the brokerage.

• ✓The exception only applies when more than one management level licensee is affiliated with the brokerage
• ✓If a management level licensee personally represents either party, they represent only that client's interests and are not a dual agent
• ✓If a management level licensee is the purchaser or seller, they represent only their own interest and are not a dual agent

A licensee or brokerage may not participate in a dual agency relationship (as described in ORC 4735.70) unless both the seller and purchaser have full knowledge of the dual representation and consent in writing on the agency disclosure statement described in ORC 4735.57. Informed consent must be based on disclosure of all relevant information.

• ✓Both seller and purchaser must have full knowledge of the dual representation
• ✓Consent to dual agency must be in writing on the agency disclosure statement under ORC 4735.57
• ✓Consent is prohibited under ORC 4735.70 unless these requirements are met

Before obtaining any party's consent to dual agency, the licensee must disclose to both the purchaser and seller all relevant information necessary to enable each party to make an informed decision about whether to consent to the dual agency relationship.

• ✓Licensee must disclose all relevant information before obtaining consent
• ✓Disclosure must be made to BOTH the purchaser and the seller
• ✓The purpose is to enable each party to make an informed decision

If, after consent to dual agency is obtained, there is a material change in the disclosed information, the licensee must disclose the change to both the purchaser and seller and give them an opportunity to revoke their consent.

• ✓A material change in disclosed information triggers a duty to re-disclose
• ✓The change must be disclosed to both purchaser and seller
• ✓Parties must be given an opportunity to revoke their consent

No brokerage may participate in a dual agency relationship described in division (C) of ORC 4735.70 unless: (1) the brokerage has established a procedure under ORC 4735.54 ensuring licensees who represent one client cannot access or obtain confidential information about the other client involved, and (2) each licensee fulfills duties exclusively to that licensee's own client.

• ✓Brokerage must establish a firewall procedure under ORC 4735.54 to protect confidential information
• ✓The procedure applies to all licensees, including management-level licensees
• ✓Each licensee must fulfill duties exclusively to the licensee's own client

No salesperson or broker may participate in a dual agency relationship in which the licensee is a party to the transaction, either personally or as an officer/member of a partnership, association, LLC, LLP, or corporation that has an interest in the subject real property, or an entity intending to purchase, lease, or exchange the property.

• ✓A licensee who is a party to the transaction cannot serve as a dual agent
• ✓This prohibition applies to personal interest and interests held through partnerships, associations, LLCs, LLPs, or corporations
• ✓It also applies to entities intending to purchase, lease, or exchange the subject property