Section 4735.74 Duties following closing of transaction +14Ohio · Real Estate · English

Under ORC 4735.74, once a licensee has performed all duties or a contract has terminated or expired, the licensee generally owes no further duty to the client. However, two duties survive the end of the relationship: providing an accounting of all moneys and property, and keeping client information confidential. These surviving duties apply unless the parties agree otherwise in writing.

• ✓Unless otherwise agreed in writing, a licensee owes no further duty to a client after all duties are performed or the contract terminates or expires
• ✓Two duties survive termination: (A) providing an accounting of all moneys and property, and (B) maintaining confidentiality
• ✓Parties may modify these post-closing obligations through a written agreement

The licensee must keep confidential all information received during the course of the transaction, even after the relationship ends. This confidentiality obligation is a lasting fiduciary-type duty subject to several specific statutory exceptions.

• ✓Licensee must keep confidential all information received during the course of the transaction
• ✓Confidentiality continues after the transaction closes or the contract ends
• ✓Six enumerated exceptions permit or require disclosure despite the confidentiality duty

ORC 4735.74(B) lists six situations where the confidentiality duty does not apply: (1) the client permits disclosure; (2) disclosure is required by law or court order; (3) the information becomes public from a source other than the licensee; (4) disclosure is necessary to prevent a crime the client intends to commit; (5) disclosure is necessary to defend the brokerage or its licensees against an accusation of wrongful conduct or to establish or defend a commission claim; and (6) disclosure of sales information requested by a registered real estate appraiser assistant or licensed/certified appraiser under Chapter 4763 for performing an appraisal.

• ✓Confidentiality does not apply if the client permits disclosure
• ✓Disclosure is permitted when required by law or court order
• ✓Disclosure is permitted when information becomes public from a source other than the licensee
• ✓Disclosure is permitted to prevent a crime the client intends to commit
• ✓Disclosure is permitted to defend the brokerage/licensees against wrongful conduct accusations or to establish/defend a commission claim
• ✓Disclosure of sales information is permitted when requested by an appraiser or appraiser assistant under Chapter 4763 for performing an appraisal

After a transaction closes or the agency relationship ends, the licensee must still provide the client with a complete accounting of all moneys and property relating to the transaction. This is one of the two ongoing obligations that cannot simply disappear when the contract ends.

• ✓Licensee must provide the client an accounting of all moneys and property relating to the transaction
• ✓This accounting duty continues even after the contract has terminated or expired

When a licensee releases sales information to a real estate appraiser assistant registered under Chapter 4763 or a real estate appraiser licensed or certified under Chapter 4763 for the purpose of performing an appraisal, no cause of action arises against the licensee for releasing that information. This provides legal immunity for such permitted disclosures.

• ✓No cause of action arises on behalf of any person against a licensee for releasing information to a qualified appraiser or appraiser assistant under this division
• ✓The appraiser or appraiser assistant must be registered, licensed, or certified under Chapter 4763 of the Revised Code
• ✓The disclosure must be for the purpose of performing an appraisal

A broker who holds exclusive authority to represent a client under a written agreement may authorize other licensees to negotiate directly with that client. This applies to exclusive agency agreements, exclusive right to sell agreements, and exclusive purchaser agency agreements. Any such authorization must be given in writing, and the broker must comply with the disclosure requirements of ORC section 4735.621.

• ✓The broker must have exclusive authority under a written exclusive agency, exclusive right to sell, or exclusive purchaser agency agreement
• ✓The authorization to other licensees must be in writing
• ✓The broker must comply with the requirements of ORC section 4735.621

A licensee who negotiates directly with a seller, purchaser, lessor, or tenant pursuant to a written authorization under division (A) does not violate ORC section 4735.18(A)(19). Importantly, negotiations conducted under such authorization do NOT create or imply an agency relationship between the negotiating licensee and the exclusive broker's client.

• ✓Negotiating under proper written authorization does not violate ORC 4735.18(A)(19)
• ✓Such negotiations do not create or imply an agency relationship between the licensee and the client of the exclusive broker
• ✓The authorization protects licensees dealing directly with an already-represented seller, purchaser, lessor, or tenant

For purposes of this section and ORC 4735.18(A)(19), 'negotiate' is defined to include three specific activities. Exam candidates should be able to identify all three components of the definition, which govern permitted direct negotiation activities.

• ✓Negotiate includes delivering or communicating an offer, counteroffer, or proposal
• ✓Negotiate includes discussing or reviewing the terms of any offer, counteroffer, or proposal
• ✓Negotiate includes facilitating communication regarding an offer, counteroffer, or proposal and preparing any response as directed

Section 4735.80 requires the superintendent of real estate to adopt administrative rules under Chapter 119 of the Revised Code that mandate licensees provide sellers a specific anti-discrimination disclosure form before listing residential real estate. The form is developed and maintained by the Division of Real Estate. This must be accomplished within one year after April 3, 2025.

• ✓The superintendent of real estate must adopt rules within one year after April 3, 2025, in accordance with Chapter 119 of the Revised Code
• ✓The disclosure form is developed and maintained by the Division of Real Estate
• ✓The disclosure must be provided prior to listing residential real estate for sale, exchange, or purchase

The anti-discrimination disclosure form must outline two categories of information for the seller: (1) the federal and state anti-discrimination laws governing the home-buying process, including laws listed in divisions (C)(2) and (3) of section 4735.55, and (2) the penalties associated with violating any of those laws. This ensures sellers understand their legal obligations regarding non-discrimination.

• ✓The form must outline federal and state anti-discrimination laws applicable to the home-buying process
• ✓The form must reference laws listed in divisions (C)(2) and (3) of section 4735.55 of the Revised Code
• ✓The form must disclose the penalties associated with violating the specified anti-discrimination laws

A licensee is prohibited from marketing or showing a seller's residential real estate until the licensee both provides the seller the required disclosure and receives a copy signed and dated by the seller. This is a strict prerequisite that must be satisfied before any marketing or showing activity begins.

• ✓No licensee shall market or show a seller's residential real estate before providing the required disclosure
• ✓The licensee must receive a copy of the disclosure signed and dated by the seller before marketing or showing
• ✓Both providing the disclosure and receiving the signed/dated copy are required conditions

The licensee must retain the signed and dated copy of the anti-discrimination disclosure for at least three years following the closing date on the seller's residential real estate. This record-keeping obligation is important for compliance verification.

• ✓The licensee must retain the signed and dated disclosure copy for not less than three years
• ✓The three-year retention period runs from the closing date on the seller's residential real estate

Notwithstanding any contrary provision of section 121.95 of the Revised Code, a regulatory restriction contained in a rule adopted under section 4735.80 is not subject to sections 121.95 to 121.953 of the Revised Code. This exempts these particular rules from the standard regulatory restriction reduction requirements.

• ✓Regulatory restrictions in rules adopted under this section are exempt from sections 121.95 to 121.953
• ✓This exemption applies notwithstanding any contrary provision of section 121.95

The superintendent of real estate, with the consent of the Ohio real estate commission, may enter into agreements with recognized national testing services to administer the real estate broker's examination. The examination remains under the superintendent's supervision and control, and its contents must be consistent with the requirements of Chapter 4735.

• ✓The superintendent must obtain consent of the Ohio real estate commission to contract with national testing services
• ✓The examination stays under the superintendent's supervision and control despite being administered by an outside testing service
• ✓Exam contents must comply with the requirements of Chapter 4735

When a broker's license is reactivated or transferred into or out of a partnership, association, limited liability company, limited liability partnership, or corporation, or moved from one such entity to another, a nonrefundable fee applies. The application for such transfer must be submitted to the superintendent of real estate on the forms the superintendent provides.

• ✓The nonrefundable fee for reactivation or transfer of a broker's license is thirty-four dollars
• ✓Transfer applications must be made to the superintendent of real estate on superintendent-provided forms
• ✓The fee applies to transfers into, out of, or between partnerships, associations, LLCs, LLPs, or corporations

A real estate salesperson who reactivates or transfers a license must pay a nonrefundable fee equal to that of a broker's transfer. This fee is required each time the license is reactivated or transferred.

• ✓The nonrefundable fee for reactivation or transfer of a salesperson's license is thirty-four dollars
• ✓The fee is nonrefundable regardless of outcome

Every real estate broker licensed under Chapter 4735 must erect or maintain a sign on the business premises that plainly states the licensee is a real estate broker. This requirement extends to every branch office maintained by the broker, each of which must display a sign identifying the licensee as a real estate broker.

• ✓Every licensed broker must erect or maintain a sign on the business premises plainly stating the licensee is a real estate broker
• ✓A sign must be erected or maintained at each branch office if the broker maintains one or more branch offices

Ohio Revised Code Section 4735.211 establishes the Division of Real Estate Operating Fund within the state treasury. This fund is financed by fines, fees, and charges collected under specific sections of the real estate licensing law. All fines imposed under section 4735.051, and all fees and charges collected under sections 4735.06, 4735.09, 4735.13, 4735.15, 4735.25, 4735.27, 4735.28, and 4735.29 are deposited into this fund, except fees paid to the real estate recovery fund. The operating expenses of the Division of Real Estate are paid from this fund.

• ✓The Division of Real Estate Operating Fund is created in the state treasury under ORC 4735.211
• ✓Fines under section 4735.051 and fees/charges collected under sections 4735.06, 4735.09, 4735.13, 4735.15, 4735.25, 4735.27, 4735.28, and 4735.29 are paid into the fund
• ✓Fees paid to the real estate recovery fund are excluded from deposit into the operating fund
• ✓Operating expenses of the Division of Real Estate are paid from the operating fund

The Division of Real Estate Operating Fund must pay its proportionate share of the administrative costs of the Ohio Department of Commerce. The director of commerce prescribes the procedures for determining these assessments. The assessed amounts are transferred from the Division of Real Estate Operating Fund to the Division of Administration Fund.

• ✓The operating fund is assessed a proportionate share of the Department of Commerce's administrative costs
• ✓Assessment procedures are prescribed by the director of commerce
• ✓Assessments are paid from the Division of Real Estate Operating Fund to the Division of Administration Fund

This version of Section 4735.211 became effective October 3, 2023, enacted through House Bill 33. Candidates should recognize that the Division of Real Estate operates under the oversight of the Ohio Department of Commerce, which is the parent agency governing real estate licensing administration and funding in Ohio.

• ✓The current version of ORC 4735.211 is effective October 3, 2023
• ✓The provision was enacted through House Bill 33
• ✓The Division of Real Estate operates under the Ohio Department of Commerce

Ohio Revised Code Section 4735.23 authorizes review of educational programs offered by institutions of higher education and career colleges that provide real estate certificate programs. The superintendent of real estate may request that the department of higher education or the state board of career colleges and schools perform a review of these programs. Reviews are conducted in consultation with the Division of Real Estate to ensure program compliance with statutory requirements.

• ✓Program reviews are initiated at the request of the superintendent of real estate
• ✓Reviews may be performed by the department of higher education or the state board of career colleges and schools
• ✓Reviews are conducted in consultation with the Division of Real Estate
• ✓Reviews apply to institutions offering real estate certificate programs

The review of real estate education programs is grounded in specific cross-referenced statutory provisions. Reviews are conducted pursuant to division (B)(6)(a) or (b) of section 4735.07 and division (F)(6) of section 4735.09 of the Revised Code. These sections establish educational requirements tied to salesperson and broker licensing, ensuring that approved programs meet the standards necessary for candidates to qualify for licensure.

• ✓Reviews are performed pursuant to ORC 4735.07(B)(6)(a) and (b)
• ✓Reviews are also authorized under ORC 4735.09(F)(6)
• ✓These provisions relate to real estate education requirements for licensure
• ✓The statute became effective April 9, 2025 under House Bill 238 of the 135th General Assembly

To carry out a program review, the superintendent, the chancellor of higher education, or the state board of career colleges and schools may request from the institution any information they consider necessary. This gives regulators broad discretion to obtain documentation, records, and other materials needed to evaluate whether an institution's real estate education program complies with the requirements of the Revised Code.

• ✓The superintendent, chancellor, or board may request any information deemed necessary for the review
• ✓The institution being reviewed must be one that offers a certificate program
• ✓The information requested is at the discretion of the reviewing authority

Ohio Revised Code Section 4735.30 prohibits any person from knowingly making or causing to be made any false representation concerning a material and relevant fact for the purpose of securing the qualification of foreign real estate under Section 4735.25. This applies to statements made in any format, whether oral, or written in a description, application, or written statement. The 'knowingly' standard means the person must be aware that the representation is false — accidental or unintentional misstatements may not fall under this prohibition.

• ✓No person shall knowingly make or cause to be made any false representation concerning a material and relevant fact
• ✓The prohibition applies to oral statements, descriptions, applications, or written statements
• ✓The false representation must relate to securing qualification of foreign real estate under ORC Section 4735.25
• ✓The representation must concern a 'material and relevant fact' to trigger the prohibition
• ✓The violation requires a 'knowing' mental state (scienter)

This statute operates in connection with ORC Section 4735.25, which governs the qualification of foreign real estate (real estate located outside of Ohio) offered for sale in Ohio. Section 4735.30 protects the integrity of the qualification process by making it unlawful to submit false material information in the qualification application or related statements. Exam candidates should understand that foreign real estate must be properly qualified before being offered in Ohio, and that fraudulent misrepresentation in that process is prohibited.

• ✓Foreign real estate qualification is governed by ORC Section 4735.25
• ✓Section 4735.30 supports the integrity of the foreign real estate qualification process
• ✓Both the maker of a false representation and one who causes it to be made are covered
• ✓Effective date of this section is September 11, 1985, enacted via House Bill 82 of the 116th General Assembly

A 'real estate salesperson' is any person associated with a licensed real estate broker to do or deal in acts or transactions within the definition of a real estate broker, for compensation or otherwise. The salesperson must be affiliated with a licensed broker.

• ✓A salesperson must be associated with a LICENSED real estate broker
• ✓A salesperson performs broker-type acts 'for compensation or otherwise'

Any person or entity who, for another and for compensation (or expectation of it), performs even a SINGLE act or transaction from the broker definition — whether incidental or the entire transaction — is deemed a real estate broker or salesperson under the chapter.

• ✓A single act or transaction is enough to require licensure
• ✓It does not matter whether the act is incidental or the whole transaction
• ✓Compensation by fee, commission, salary, or otherwise triggers the requirement

'Real estate' includes leaseholds and every interest or estate in land situated in Ohio, whether corporeal or incorporeal, freehold or nonfreehold, and the improvements on the land. It expressly EXCLUDES cemetery interment rights.

• ✓Real estate includes both freehold and nonfreehold (leasehold) interests
• ✓Real estate must be situated in this state (Ohio)
• ✓Cemetery interment rights are NOT considered real estate

'Foreign real estate' means real estate NOT situated in Ohio and any interest in it. A 'foreign real estate dealer' does broker-type acts with respect to foreign real estate. A 'foreign real estate salesperson' is associated with a licensed foreign real estate dealer to deal in foreign real estate for compensation or otherwise.

• ✓Foreign real estate is property located outside Ohio
• ✓A foreign real estate salesperson must be associated with a licensed foreign real estate dealer
• ✓Foreign dealers/salespersons perform the same acts described in division (A) but concerning out-of-state property

An oil and gas land professional required to register who ceases to be a member in good standing of a qualifying organization must report the change in membership status to the superintendent within thirty days. Failure to report results in automatic suspension of registration and exposure to unlicensed activity penalties.

• ✓A change in membership status must be reported to the superintendent within thirty days of the change
• ✓Failure to report causes automatic suspension of registration status
• ✓Failure to report subjects the registrant to penalties for unlicensed activity under ORC 4735.052

Any oil and gas land professional who fails to register with the superintendent as required is subject to the penalties for unlicensed activity found in ORC 4735.052.

• ✓Failure to register triggers penalties under ORC 4735.052
• ✓Unlicensed activity penalties apply to non-compliant oil and gas land professionals

The commission or the superintendent of real estate may investigate complaints concerning violations of section 4735.02 or 4735.25 of the Revised Code and may subpoena witnesses in connection with such investigations as provided in section 4735.04.

• ✓The commission or superintendent may investigate complaints about violations of sections 4735.02 or 4735.25
• ✓Witnesses may be subpoenaed during investigations as provided in section 4735.04

The commission or superintendent may apply to the appropriate court for an order enjoining violations of section 4735.02 or 4735.25. Upon a showing that any person, firm, partnership, association, LLC, LLP, or corporation has violated or is about to violate these sections, the court shall grant an injunction, restraining order, or other appropriate order.

• ✓The commission or superintendent may seek court injunctions against violators of sections 4735.02 or 4735.25
• ✓The court shall grant relief upon showing a violation has occurred or is about to occur
• ✓Relief applies to individuals and business entities including firms, partnerships, LLCs, LLPs, and corporations

No applicant may take the broker's examination unless they establish to the superintendent's satisfaction that they are honest and truthful. This is a fundamental character requirement for admission to the exam.

• ✓Applicant must be honest and truthful
• ✓Character determination is made to the satisfaction of the superintendent

An applicant must not have been convicted of a disqualifying offense as determined under section 9.79 of the Revised Code. Also, the applicant must not have been finally adjudged by a court to have violated civil rights laws relevant to protecting purchasers or sellers of real estate. If so adjudged, at least two years must have passed and the superintendent may disregard the adjudication if the applicant proves by a preponderance of the evidence rehabilitation and no basis for believing they will violate the laws again.

• ✓No conviction of a disqualifying offense as determined under ORC section 9.79
• ✓No final court adjudication of violating municipal, state, or federal civil rights laws protecting buyers/sellers
• ✓If adjudged of a civil rights violation, at least two years must pass before the superintendent may disregard it
• ✓Applicant bears the burden of proving rehabilitation by a preponderance of the evidence

An applicant for a real estate broker's license must be at least eighteen years of age to take the broker's examination.

• ✓Applicant must be at least eighteen years of age

An applicant must have been a licensed real estate broker or salesperson for at least two of the five years preceding application. They must also have completed at least twenty real estate transactions in which property was sold for another while acting as a real estate broker or salesperson, OR such equivalent experience as defined by commission rules.

• ✓Must have been a licensed broker or salesperson for at least two of the five years preceding application
• ✓Must have completed at least twenty real estate transactions selling property for another, or equivalent experience defined by commission rules

During any period the applicant was licensed under Chapter 4735, they must not have violated any provision or rule adopted under the chapter. If they did violate, they must establish to the superintendent's satisfaction that they will not violate the provision or rule again.

• ✓No violations of Chapter 4735 provisions or rules during prior licensure
• ✓If a violation occurred, applicant must prove they will not repeat the violation

A nonrefundable fee of eighty-one dollars must accompany the application. This fee includes the fee for the initial year of the licensing period if a license is issued. The initial licensing year begins when the license is issued and ends on the applicant's first birthday thereafter. Each successive application by the applicant also requires an eighty-one dollar fee.

• ✓Application fee is eighty-one dollars and is nonrefundable
• ✓Fee includes the initial year of the licensing period if a license is issued
• ✓The initial licensing year ends on the applicant's first birthday after issuance
• ✓Each successive application requires an additional eighty-one dollar fee

There is no limit placed on the number of times an applicant may retake the salesperson's examination.

• ✓An applicant may retake the examination an unlimited number of times
• ✓No cap exists on examination attempts

The Commission SHALL (mandatory) adopt reasonable rules under Chapter 119 governing the issuance, renewal, suspension, and revocation of licenses, other sanctions for violations of the chapter, the conduct of hearings related to these actions, and the process of reactivating a license.

• ✓Commission MUST adopt rules on issuance, renewal, suspension, and revocation of licenses
• ✓Rules must cover other sanctions for chapter violations and the conduct of related hearings
• ✓Rules must address the process of reactivating a license

The Commission is required to adopt rules establishing a three-year license and a three-year license renewal system. Ohio real estate licenses operate on a three-year cycle.

• ✓Ohio uses a three-year license term
• ✓Ohio uses a three-year license renewal system

The Commission must adopt rules on requirements for trust accounts and property management accounts. Brokerages managing property for others may, under a written contract with the owner, exercise signatory authority for withdrawals from property management accounts held in the owner's name without violating section 4735.18(A). Interest earned on property management trust accounts held in the name of the owner or broker is payable to the property owner unless a written contract states otherwise.

• ✓Brokerages may exercise signatory withdrawal authority on owner-name property management accounts pursuant to a written contract with the owner
• ✓Such withdrawal authority does not violate division (A) of section 4735.18
• ✓Interest on property management trust accounts is payable to the property owner unless otherwise specified in a written contract

The Commission must adopt rules setting standards for approval of postlicensure courses required under sections 4735.07(G) and 4735.09(J), courses of study required for licenses, exam preparation courses, and continuing education courses.

• ✓Rules must set standards for approving postlicensure courses required by 4735.07(G) and 4735.09(J)
• ✓Rules must cover prelicense courses, exam prep courses, and continuing education courses

The Commission must adopt guidelines ensuring continuing education classes are open to all persons licensed under Chapter 4735. The rules must specify that an organization sponsoring a CE class may offer its members a reasonable reduction in class fees.

• ✓Continuing education classes must be open to all licensees under Chapter 4735
• ✓A sponsoring organization may offer its members a reasonable reduction in CE class fees

The Commission must adopt rules governing notice of renewal forms and filing deadlines, and rules concerning special assessments under division (A) of section 4735.12 of the Revised Code.

• ✓Rules must govern notice of renewal forms and filing deadlines
• ✓Rules must address special assessments under section 4735.12(A)