Section 4735.12(B) Eligibility for Recovery from the Fund +10Ohio · Real Estate · English

Any person who obtains a final judgment against a licensed broker or salesperson, on grounds of conduct violating this chapter or its rules and associated with an act only a licensed broker or salesperson may perform (per section 4735.01(A) or (C)), may file a verified application in the Franklin County Court of Common Pleas for payment of the unpaid portion of the judgment representing actual and direct loss.

• ✓Applicant must have obtained a final judgment in a court of competent jurisdiction
• ✓The judgment must be based on conduct violating Chapter 4735 or its rules
• ✓The conduct must relate to acts only a licensed broker/salesperson may perform
• ✓Application must be filed in the court of common pleas of Franklin County
• ✓Only the unpaid portion representing actual and direct loss is recoverable

Punitive damages, attorney's fees, and interest on a judgment cannot be recovered from the fund. Court costs may be recovered only at the discretion of the superintendent, and if authorized, the court may direct their payment from the fund.

• ✓Punitive damages, attorney's fees, and interest on a judgment are NOT recoverable
• ✓Court costs may be recovered only at the superintendent's discretion
• ✓If the superintendent authorizes court costs, the court may direct their payment

The court orders payment from the fund only when the applicant proves all of the following: obtained a qualifying judgment; exhausted all appeals and gave notice to the superintendent; is not a spouse (or personal representative of a spouse) of the judgment debtor; diligently pursued remedies against all judgment debtors and other liable persons; and applied within one year after termination of all proceedings including appeals.

• ✓All appeals from the judgment must be exhausted before payment
• ✓Notice must be given to the superintendent as required by division (C)
• ✓Applicant cannot be a spouse of the judgment debtor or that spouse's personal representative
• ✓Applicant must diligently pursue remedies against all judgment debtors and liable persons
• ✓Application must be made within one year after termination of all proceedings

The application must specify the nature of the act or transaction underlying the judgment, the applicant's activities in pursuing collection remedies, and the actual/direct losses, attorney's fees, and court costs sustained. Copies of each pleading and order in the underlying court action must be attached.

• ✓Application must specify the nature of the underlying act or transaction
• ✓Application must describe applicant's efforts to collect the judgment
• ✓Application must state actual and direct losses, attorney's fees, and court costs
• ✓Copies of every pleading and order from the underlying action must be attached

Divisions (B)(1) to (4) do not apply to: actions arising from property management accounts maintained in the property owner's name; a bonding company that is not a principal in a transaction; a person seeking a commission or fee for performing a licensed act; or losses by real estate investors where applicant and licensee are principals in the investment.

• ✓Property management account actions in the owner's name are excluded
• ✓Bonding companies not acting as principals are excluded
• ✓Claims for unpaid commissions or fees are excluded
• ✓Investor losses where applicant and licensee are co-principals are excluded

Each real estate salesperson's license is electronically mailed to and remains in the possession of the licensed broker with whom the salesperson is associated, until the licensee places the license on inactive/resigned status or leaves/is terminated from the brokerage. The broker must keep a copy of each salesperson's license available for immediate public inspection on request at the broker's place of business.

• ✓Salesperson licenses are electronically mailed to and held by the associated broker
• ✓The broker retains the license until inactive/resigned status or the salesperson leaves or is terminated
• ✓A copy of each salesperson's license must be available for immediate public inspection on request

Except as provided in divisions (G) and (H), immediately upon a salesperson leaving or being terminated, the broker must notify the superintendent of real estate by electronic mail to the division's general email address. The broker must keep a copy of the written notification for three years after it is sent.

• ✓Broker must notify the superintendent immediately by email when a salesperson leaves or is terminated
• ✓Notification goes to the division of real estate's general email address
• ✓Broker must keep a copy of the notification for three years

If a broker fails to notify the superintendent in writing via email of a salesperson or broker who leaves or is terminated within three business days of receiving a written request from the superintendent, this is prima-facie evidence of misconduct under division (A)(6) of section 4735.18 of the Revised Code.

• ✓Failure to notify within three business days of a written request is prima-facie misconduct
• ✓This misconduct falls under R.C. 4735.18(A)(6)
• ✓Notification must be via electronic mail

Every licensed broker, brokerage, or salesperson must file a notice of renewal on a form prescribed by the superintendent of real estate on or before the deadline the Ohio Real Estate Commission adopts by rule under division (A)(2)(f) of section 4735.10. Licensees in resigned status under section 4735.142 are exempt from this requirement.

• ✓Each licensed broker, brokerage, or salesperson must file a notice of renewal on or before the Commission-adopted deadline
• ✓Licensees in resigned status under section 4735.142 are exempt from filing renewal
• ✓The notice of renewal must be on a form prescribed by the superintendent of real estate

The superintendent must send the notice of renewal two months prior to the filing deadline. For individual brokers or salespersons, it goes to the electronic mail address on file. For partnerships, associations, LLCs, LLPs, or corporations, it goes to the brokerage's business electronic mail address on file with the division.

• ✓The superintendent sends the renewal notice two months prior to the filing deadline
• ✓Individual notices go to the broker/salesperson email on file; entity notices go to the brokerage business email on file
• ✓A licensee shall not renew earlier than two months prior to the filing deadline

A real estate broker's license is renewed on a three-year cycle for a set nonrefundable fee. If the licensee is a business entity, the full broker renewal fee must be paid for EACH member of that entity who is a real estate broker. Additional brokerage assessment fees apply based on the number of salespersons associated with the broker.

• ✓Renewal of a three-year broker's license is two hundred forty-three dollars
• ✓For entity licensees, the full broker renewal fee is required for each member who is a real estate broker
• ✓If a broker has 11 to 20 associated salespersons, an additional sixty-four dollar assessment applies to the brokerage
• ✓For every additional ten salespersons (or fraction thereof), the assessment increases by thirty-seven dollars

A real estate salesperson's license is renewed on a three-year cycle for a fixed nonrefundable fee, payable each licensing period.

• ✓Renewal of a three-year salesperson's license is one hundred eighty-two dollars
• ✓The renewal fee is nonrefundable and applies each licensing period

If a broker or salesperson renews a license after the renewal date but within twelve months, a late filing penalty is added to the standard renewal fee. This penalty is calculated as a percentage of the required three-year fee.

• ✓A renewal filed within twelve months after the renewal date incurs a late filing penalty
• ✓The late penalty is fifty percent of the required three-year fee
• ✓This penalty is in addition to the standard renewal fee

Each branch office operated by a brokerage requires its own license, and a nonrefundable fee applies for each licensing period. This fee is separate from broker and salesperson renewal fees.

• ✓The branch office license fee is twenty dollars
• ✓The fee applies for each licensing period
• ✓This fee is subject to exceptions under division (F) or commission rules under 4735.10(A)(2)(b)

A foreign real estate dealer's license and each renewal are priced on a per-salesperson basis, with a minimum floor fee that applies regardless of the number of salespersons employed.

• ✓The fee is thirty dollars per salesperson employed by the dealer
• ✓The fee shall not be less than two hundred three dollars minimum
• ✓This applies to both the initial license and each renewal

A foreign real estate salesperson's license and each renewal require a fixed nonrefundable fee.

• ✓The fee for a foreign real estate salesperson's license is sixty-eight dollars
• ✓The same fee applies to each renewal of the license

When a licensed broker or salesperson advertises to buy, sell, exchange, or lease real estate (or engage in any regulated act) regarding property the licensee does NOT own, the advertisement must identify the licensee by name and indicate the name of the brokerage with which the licensee is affiliated.

• ✓The licensee must be identified in the advertisement by name
• ✓The advertisement must indicate the name of the brokerage with which the licensee is affiliated

When a licensed broker or salesperson advertises to sell, exchange, or lease property that the licensee OWNS, the advertisement must identify the licensee by name and indicate that the property is agent owned. If the property is listed with a real estate brokerage, the advertisement must also indicate the name of that brokerage.

• ✓The licensee must be identified by name and the advertisement must indicate the property is agent owned
• ✓If the property is listed with a brokerage, the advertisement must also indicate the name of the brokerage with which the property is listed

The name of the brokerage must be displayed in equal prominence with the name of the salesperson in any advertisement. 'Brokerage' means the name the real estate company or sole broker is doing business as, or if no such name is used, the name of the real estate company or sole broker as licensed.

• ✓The brokerage name must be displayed in equal prominence with the salesperson's name
• ✓'Brokerage' means the DBA name of the company/sole broker, or the licensed name if no DBA is used

A broker representing a seller under an exclusive right to sell or lease listing agreement may not advertise the property to the public as 'for sale by owner' or otherwise mislead the public into believing the seller is not represented by a broker.

• ✓A broker with an exclusive right to sell or lease listing may not advertise property as 'for sale by owner'
• ✓A broker may not otherwise mislead the public to believe the seller is not represented by a real estate broker

If a broker or salesperson advertises in a manner other than as provided in this section or its rules, that advertisement is prima-facie evidence of a violation under division (A)(21) of section 4735.18 of the Revised Code.

• ✓Non-compliant advertising is prima-facie evidence of a violation under R.C. 4735.18(A)(21)
• ✓Compliance with section 4735.16 and its adopted rules is required to avoid such a presumed violation

Brokers must keep complete and accurate records of all transactions for three years from the transaction date. Records include listing forms, earnest money receipts, offers and acceptances, receipts/disbursements of all funds, and records required under section 4735.20(C)(4) and (5).

• ✓Records must be kept for three years from the date of the transaction (A)(24)
• ✓Records must include listing forms, earnest money receipts, offers, acceptances, and fund records
• ✓Must include records required under divisions (C)(4) and (5) of section 4735.20

Brokers must maintain a noninterest-bearing special/trust account at a state or federally chartered institution in Ohio, separate from personal accounts, for escrow funds, security deposits, and fiduciary moneys. The account details must be submitted in writing to the superintendent. Funds tied to purchase agreements are maintained per section 4735.24.

• ✓The general trust account must be noninterest-bearing and located in Ohio (A)(26)
• ✓The account must be separate and distinct from personal or other broker accounts
• ✓Account name, number, and location must be submitted in writing to the superintendent
• ✓Checks on trust accounts meet conditions of section 1349.21

Brokers managing property must maintain a separate special/trust account used exclusively for rents, security deposits, escrow funds, and fiduciary moneys received while managing real property. This account may earn interest, which must be paid to property owners pro rata. This requirement does not apply to brokers not engaged in property management.

• ✓A separate property management trust account is required for managing brokers (A)(27)
• ✓This account MAY earn interest, paid to property owners on a pro rata basis
• ✓Account name, number, and location must be submitted in writing to the superintendent
• ✓Division (A)(27) does not apply to brokers not engaged in property management

Inducing a party to break a sale or lease contract to substitute a new contract with another principal is prohibited. Negotiating directly with a party known to be represented by another broker under a written exclusive agreement is prohibited except as provided in section 4735.75.

• ✓Inducing breach of a contract to substitute a new contract is prohibited (A)(18)
• ✓Negotiating directly with a party under a written exclusive agreement with another broker is prohibited (A)(19)
• ✓Exception applies as provided in section 4735.75

Offering property for sale/lease without the owner's knowledge and consent, or on unauthorized terms, is prohibited. Publishing misleading or materially inaccurate advertising, or misrepresenting properties, terms, values, policies, or services, is prohibited.

• ✓Offering property without owner's knowledge/consent or on unauthorized terms is prohibited (A)(20)
• ✓Publishing misleading or materially inaccurate advertising is prohibited (A)(21)
• ✓Misrepresenting properties, terms, values, policies, or services is a violation

A broker or salesperson must furnish all parties true copies of all listings and other agreements to which they are a party at the time each party signs them.

• ✓True copies of listings and agreements must be furnished to all parties (A)(25)
• ✓Copies must be provided at the time each party signs them

Knowingly making a statement of account or invoice materially inaccurate is prohibited. Publishing unjustified threats of legal proceedings that harass competitors or intimidate customers is prohibited.

• ✓Knowingly making an account statement or invoice materially inaccurate is prohibited (A)(22)
• ✓Publishing unjustified threats of legal proceedings to harass competitors or intimidate customers is prohibited (A)(23)

A purchase agreement may include a provision that, in the event of a dispute over disbursement, the broker will return the earnest money to the purchaser without notice to the parties unless, within two years from the date the money was deposited, the broker receives certain documents.

• ✓The provision is optional and must be contained in the purchase agreement
• ✓The two-year period runs from the date the earnest money was deposited in the broker's account
• ✓Broker returns the money to the purchaser without notice unless a qualifying document is received in time

To prevent the automatic return to the purchaser under the (B) provision, the broker must receive within two years either (1) written instructions signed by both parties specifying how the money is to be disbursed, or (2) written notice that a court action to resolve the dispute has been filed.

• ✓Written instructions signed by both parties will prevent automatic return
• ✓Written notice that a court action has been filed will prevent automatic return

Every nonresident applicant must name a person within Ohio upon whom process against the applicant may be served, and must provide that person's complete residence and business address. This ensures Ohio courts can obtain jurisdiction over out-of-state dealers.

• ✓Every nonresident applicant must name an in-state person for service of process
• ✓The complete residence and business address of the designated person must be given

Every applicant must file an irrevocable written consent, executed and acknowledged by a duly authorized individual, allowing actions arising from fraud committed in connection with the sale of foreign real estate in Ohio to be commenced against the applicant. If the designated agent or resident applicant cannot be found at the given address, process may be served on the secretary of state, which is deemed as valid and binding as service on the dealer.

• ✓Applicant must file an irrevocable written consent regarding fraud-related actions
• ✓Service on the secretary of state is valid and binding when the applicant or designated person cannot be found at the given address
• ✓Fraud actions may be brought in any county where the cause of action arises or where the plaintiff resides
• ✓Corporate/unincorporated association consent must be accompanied by a certified copy of the authorizing board resolution

Every applicant must take a written examination prescribed and conducted by the superintendent. The exam covers principles of real estate practice, real estate law, financing and appraisal, real estate transactions and related instruments, canons of business ethics relating to real estate transactions, and the duties of foreign real estate salespersons.

• ✓Every applicant shall take a written examination prescribed and conducted by the superintendent
• ✓Exam covers principles of real estate practice, real estate law, financing and appraisal
• ✓Exam covers real estate transactions and instruments, canons of business ethics, and duties of foreign real estate salespersons

The examination fee, when administered by the superintendent, is sixty-eight dollars. If the applicant does not appear for the examination, the fee is forfeited and a new application and fee must be filed, unless good cause for failure to appear is shown to the superintendent.

• ✓The examination fee is sixty-eight dollars when administered by the superintendent
• ✓Failure to appear results in forfeiture of the fee and requires a new application and fee
• ✓Fee is not forfeited if good cause for the failure to appear is shown to the superintendent

Any applicant who fails the examination twice must wait six months before applying to retake the examination.

• ✓An applicant who fails the examination twice must wait six months before reapplying to retake it
• ✓The six-month waiting period applies only after two failures

A licensee working directly with a seller must provide the brokerage policy on agency at the time the licensee and seller enter into an agency agreement (if required by section 4735.55), or if no agency agreement is required, prior to advertising or showing the seller's real estate. The licensee must obtain the seller's signature acknowledging receipt unless the seller refuses, in which case the licensee must note the refusal on the policy.

• ✓Provide policy at time of entering agency agreement if required by 4735.55
• ✓If no agreement required, provide prior to advertising or showing the seller's real estate
• ✓Obtain seller signature unless the seller refuses
• ✓If seller refuses to sign, the licensee must note this on the policy

A licensee working directly with a purchaser—whether as purchaser's agent, seller's agent, or seller's subagent—must provide the brokerage policy on agency and obtain the purchaser's signature acknowledging receipt, unless the purchaser refuses (in which case the refusal must be noted on the policy). Except as provided in division (E), the policy must be provided prior to the earliest of certain triggering actions.

• ✓Applies whether licensee is the purchaser's agent, seller's agent, or seller's subagent
• ✓Obtain purchaser signature unless purchaser refuses
• ✓If purchaser refuses to sign, the licensee must note this on the policy
• ✓Provide prior to the earliest triggering action listed in division (D)

The policy must be provided to the purchaser before the earliest of these licensee actions: (1) initiating a prequalification evaluation of the purchaser's financial ability; (2) requesting specific financial information to determine ability to purchase or finance in a price range; (3) showing real estate other than at an open house; (4) discussing the making of an offer to purchase or lease; (5) submitting an offer on behalf of the purchaser; or (6) entering into an agency agreement under section 4735.55.

• ✓Delivery required before initiating prequalification evaluation
• ✓Delivery required before requesting specific financial information
• ✓Delivery required before showing real estate other than at an open house
• ✓Delivery required before discussing making an offer
• ✓Delivery required before submitting an offer or entering an agency agreement

If the earliest triggering event under division (D) occurs by telephone or electronic mail, the licensee must disclose by that same medium the nature of the agency relationship the licensee has with both the seller and the purchaser. The licensee must then provide the written brokerage policy on agency at the first meeting with the purchaser following that disclosure.

• ✓If earliest event occurs by phone or email, disclose agency relationship by that same medium
• ✓Disclose the nature of the relationship with both the seller and the purchaser
• ✓Provide the written policy at the first in-person meeting following the disclosure

A licensee acting as a seller's agent is not required to provide a purchaser with the brokerage policy on agency, except when one of the triggering events described in division (D) occurs. This limits the obligation of a seller's agent toward purchasers.

• ✓A seller's agent generally need not give the policy to a purchaser
• ✓Exception applies when a division (D) triggering event occurs

The disclosure statement must explain the nature of a dual agency relationship, including a statement that when serving as a dual agent, licensees in the brokerage represent two clients whose interests are, or at times could be, different or adverse.

• ✓The statement must explain the nature of dual agency
• ✓It must disclose that dual agents represent two clients whose interests may be different or adverse

The statement must disclose that as a result of the dual agency relationship, the dual agent may not be able to advocate on behalf of the client to the same extent the agent could have if representing only one client.

• ✓A dual agent may not fully advocate for a client as it could if representing only one client
• ✓This limitation must be disclosed in the dual agency statement

The statement must describe the duties the brokerage, its affiliated licensees, and employees owe to each client, specifically including the duty of confidentiality.

• ✓The statement must describe duties owed to each client
• ✓The duty of confidentiality must be specifically included

The statement must disclose that as a dual agent, the brokerage cannot engage in conduct contrary to the interests or instructions of one party, nor act in a biased manner on behalf of one party. The statement must also specify the source of compensation to the real estate broker.

• ✓A dual agent cannot act contrary to the interests or instructions of one party
• ✓A dual agent cannot act in a biased manner on behalf of one party
• ✓The statement must specify the source of broker compensation

The statement must disclose that the client does not have to consent to the dual agency relationship, and must explain the options available if the client does not consent, including the right to terminate the agency relationship and seek representation from another source.

• ✓The client is not required to consent to dual agency
• ✓The client may terminate the agency relationship and seek representation elsewhere if refusing consent

The statement must disclose whether the brokerage or its affiliated licensees have any material relationship with either client other than incidental to the transaction, and if so, disclose its nature. A 'material relationship' means any actually known personal, familial, or business relationship between the brokerage/licensee and a client that could impair the ability to exercise lawful and independent judgment relative to another client.

• ✓Any material relationship beyond incidental to the transaction must be disclosed
• ✓Material relationship includes personal, familial, or business relationships that could impair independent judgment
• ✓If a material relationship exists, its nature must be disclosed

The statement must disclose that consent to the dual agency relationship has been given voluntarily, that the signature indicates informed consent, and that the dual agent duties disclosed under division (B) have been read and understood by the client.

• ✓Consent to dual agency must be given voluntarily
• ✓The client's signature indicates informed consent to dual agency
• ✓The client acknowledges reading and understanding the dual agent duties