Section 4735.65(B) Contemporaneous Offers and Disclosure +15Ohio · Real Estate · English

A licensee does not breach any duty or obligation to the purchaser by showing the same properties to other purchasers or by preparing or presenting contemporaneous offers to purchase or lease the same property. However, prior to preparing a contemporaneous offer, the licensee must disclose that fact to all affected clients and must refer to another licensee any client requesting such referral.

• ✓No breach of duty by showing same properties to other purchasers or preparing contemporaneous offers
• ✓Before preparing a contemporaneous offer, licensee must disclose that fact to all clients for whom offers are being prepared/presented
• ✓Licensee must refer to another licensee any client that requests such referral

A licensee does not breach a duty of confidentiality by disclosing the fact of contemporaneous offers. However, the licensee must maintain as confidential between the purchasers the identity of the purchasers and the terms of their respective offers.

• ✓Disclosing the fact of contemporaneous offers does not breach confidentiality
• ✓Licensee must keep confidential the identity of purchasers and the terms of the offers between purchasers

The disclosure of contemporaneous offers must be provided in writing, unless written disclosure cannot be delivered in a timely manner, in which case the licensee must provide the disclosure verbally.

• ✓Disclosure must be in writing by default
• ✓If written disclosure cannot be delivered timely, verbal disclosure is permitted

If both parties request mediation, the superintendent notifies them of the meeting date, which must occur within twenty business days. Parties may seek extensions for good cause. If an accommodation is reached, the investigator reports to the superintendent and the complaint file is closed.

• ✓The mediation meeting must be scheduled within twenty business days of the requests
• ✓Any party may request an extension of up to fifteen business days for good cause shown
• ✓If an accommodation is reached, the investigator reports to the superintendent, complainant, and licensee, and the complaint file is closed

If the applicant is a partnership, LLC, LLP, or association, the names of all members must be stated. If a corporation, the names of the president and each officer must be stated. The superintendent may reject an application if the proposed name is likely to mislead the public or is not distinguishable from an existing licensed entity, unless written consent from the existing entity is filed with the application.

• ✓Partnerships/LLCs/LLPs/associations must list all members; corporations must list president and each officer
• ✓Superintendent may reject a name that misleads the public or is not distinguishable from an existing licensed entity
• ✓A name conflict can be cured by filing written consent from the existing entity

The superintendent shall approve a brokerage trade name if it meets two criteria: (a) it is not the same as or is clearly distinguishable from a name registered by another existing brokerage (or written consent is filed), and (b) it is not misleading or likely to mislead the public. The superintendent may approve more than one trade name for a brokerage.

• ✓A trade name must be clearly distinguishable from other registered brokerage names OR have written consent filed
• ✓A trade name must not be misleading or likely to mislead the public
• ✓The superintendent may approve more than one trade name per brokerage

When a brokerage has received the superintendent's approval to conduct business under one or more trade names, those approved trade names shall be the ONLY identifying names used by the brokerage in all advertising.

• ✓Approved trade names must be the only identifying names used in all brokerage advertising
• ✓Only superintendent-approved trade names may be used to identify the brokerage

Continuing education requirements must be completed in schools, seminars, and educational institutions approved by the commission. Approval is given according to rules established under Chapter 119 of the Revised Code procedures and is not limited to institutions providing two-year or four-year degrees. Each approved school, seminar, or educational institution must be open to all licensees on an equal basis.

• ✓CE must be completed at commission-approved schools, seminars, and educational institutions
• ✓Approval is not limited to two-year or four-year degree institutions
• ✓Approved providers must be open to all licensees on an equal basis
• ✓Approval follows Chapter 119 rulemaking procedures

A licensed Ohio broker or foreign real estate dealer may pay a commission to, and receive a commission from, a licensed broker or foreign real estate dealer of another state or country, but only when done in accordance with rules adopted by the Ohio Real Estate Commission pursuant to section 4735.10.

• ✓Commission sharing with out-of-state licensed brokers is permitted
• ✓Sharing must comply with rules adopted by the Ohio Real Estate Commission under section 4735.10
• ✓Applies to brokers/dealers of another state or country

Any person (other than an excepted person under division (A)) desiring to sell, lease, or deal in foreign real estate must file an application with the superintendent of real estate in the prescribed form. The application must contain extensive detailed information about the property, ownership, encumbrances, improvements, and terms of sale.

• ✓The application must be filed with the superintendent of real estate in the form the superintendent prescribes
• ✓Excepted persons under division (A) are not required to file the application

The application must set forth an exact description of the foreign real estate; a map or plat prepared by a competent surveyor showing boundaries, dimensions, and all lots or subdivisions; the names, financial responsibility, and addresses of all owners; and for corporate/association owners, articles or certificate of incorporation plus proof of qualification to do business in Ohio if a foreign corporation.

• ✓A map or plat must be prepared by a competent surveyor showing boundaries, dimensions, and subdivisions
• ✓Owner names must include a detailed statement of financial responsibility and post office addresses
• ✓Corporate/association owners must provide incorporation documents unless already on file with the secretary of state

The application must include a list and description of all liens and encumbrances; a full description of all improvements or developments to be made, their cost, and completion security; copies of building or use restrictions; the form of contract, method, and terms of sale/lease; a schedule of all sales prices; a schedule of all commissions, allowances, or compensations; and any other information the superintendent requires.

• ✓All liens and encumbrances on the foreign real estate must be listed and described
• ✓All improvements/developments must be described with cost and completion security disclosed
• ✓Schedules of all sales prices and all commissions/allowances/compensations must be provided

Certain persons are exempt from broker/salesperson licensing even when performing broker acts: owners dealing with their own real estate or property acquired for their own investment/management; receivers, trustees in bankruptcy, guardians, executors, administrators, trustees, assignees, commissioners, court-appointed persons, bona fide public officers, and bona fide fiduciaries under trust agreements, deeds of trust, or wills.

• ✓Property owners are exempt when dealing with their OWN real estate or investment property acquired on their own account
• ✓Court-appointed fiduciaries (receivers, guardians, executors, administrators, trustees) are exempt when acting under that authority
• ✓The fiduciary instrument must be executed in good faith creating a bona fide fiduciary obligation

Additional exemptions include: public officers performing official duties; attorneys performing their legal duties; persons brokering the sale of business assets (not including real estate interests); persons selling manufactured/mobile homes (not involving real estate interests); sale of commercial real estate under section 4735.022; and oil and gas land professionals complying with section 4735.023.

• ✓Attorneys at law are exempt when performing their attorney duties
• ✓Business asset brokers are exempt only if NOT dealing in any interest in real estate
• ✓Manufactured/mobile home sellers are exempt only if the sale does not include real estate interests
• ✓Oil and gas land professionals are exempt if not buying/selling fee simple absolute interests and they comply with 4735.023(A)

An owner exempt under division (I)(1)(a) is LIMITED by the legal interest it holds in the real estate when performing any broker-type acts. The exemption only covers acts related to the extent of the owner's legal interest.

• ✓The owner exemption is limited to the legal interest actually held in the property
• ✓Exempt owners cannot act beyond their legal interest in the real estate

The commission shall adopt canons of ethics for the real estate industry, establishing ethical standards that licensees must follow.

• ✓The commission must adopt canons of ethics for the real estate industry
• ✓These canons establish binding ethical standards for licensees

Upon appeal by any affected party, or on its own motion, the commission may review any order or application determination of the superintendent and may reverse, vacate, or modify any such order.

• ✓The commission may review superintendent orders upon appeal by an affected party or on its own motion
• ✓The commission may reverse, vacate, or modify any order of the superintendent

The commission shall notify licensees of changes in state and federal civil rights laws pertaining to discrimination in the purchase or sale of real estate and relevant case law, and inform licensees that they are subject to disciplinary action if they do not comply.

• ✓The commission must notify licensees of changes in state and federal civil rights/fair housing laws
• ✓Licensees are subject to disciplinary action for failing to comply with these changes

The commission shall administer and hear appeals from orders of the superintendent regarding claims against the real estate recovery fund.

• ✓The commission administers appeals regarding claims against the real estate recovery fund
• ✓The commission hears appeals from superintendent orders on recovery fund claims

The commission shall direct the superintendent on the content, scheduling, instruction, and offerings of real estate courses for salesperson and broker educational requirements.

• ✓The commission directs the content and scheduling of salesperson and broker education courses
• ✓This authority covers instruction and offerings for educational requirements

The commission shall disseminate to licensees and the public information relative to commission activities and decisions.

• ✓The commission must share information about its activities and decisions
• ✓Both licensees and the public are entitled to this information

The commission shall publish and furnish to public libraries and brokers booklets on housing and remedies available to dissatisfied clients under Chapter 4735 and Chapter 4112 of the Revised Code.

• ✓The commission publishes booklets on housing and client remedies
• ✓These booklets are furnished to public libraries and brokers and reference Chapters 4735 and 4112

The commission shall provide training to commission members and employees of the division of real estate and professional licensing on industry issues, which may include investigative techniques, real estate law, and real estate practices and procedures.

• ✓The commission provides training to its members and division employees
• ✓Training may cover investigative techniques, real estate law, and practices and procedures

A nonrefundable fee of $135 must accompany the broker's license application. The initial licensing period commences when the license is issued and ends on the applicant's first birthday thereafter. However, if the applicant was an inactive or active salesperson immediately preceding the application, the initial period ends on the date the licensee's continuing education is due as set when the applicant was a salesperson. A $135 fee is charged for each successive application.

• ✓A nonrefundable $135 fee must accompany the broker license application
• ✓The initial licensing period ends on the applicant's first birthday after issuance
• ✓A $135 fee is charged for each successive application by an applicant
• ✓Former salespersons keep their existing CE due date as the end of the initial period

In the case of issuance of a three-year license, upon passing the examination or waiver of the examination requirement, if the superintendent determines it necessary, the applicant must submit an additional fee determined by the superintendent based on the number of years remaining in a real estate salesperson's licensing period.

• ✓A three-year license may require an additional fee upon passing or waiving the exam
• ✓The additional fee is based on the years remaining in the salesperson's licensing period

An applicant licensed as a salesperson on or after August 1, 2001 must complete: 40 hours real estate practice; 40 hours of Ohio real estate law and civil rights instruction; 20 hours real estate appraisal; 20 hours real estate finance; plus the financial management, human resource management, applied business economics, and business law hours (30 hours each) specified for earlier applicants.

• ✓Post-8/1/2001 salespersons need 40 hours real estate practice and 40 hours law/civil rights
• ✓Post-8/1/2001 applicants need only 20 hours each of real estate appraisal and finance
• ✓The same 30-hour requirements for financial management, HR management, business economics, and business law apply

An applicant licensed as a salesperson prior to August 1, 2001 must complete at an institution of higher education (classroom or distance education): 30 hours of real estate practice; 30 hours including Ohio real estate law, civil rights law, housing discrimination case law, desegregation, and eliminating effects of prior discrimination; 30 hours real estate appraisal; 30 hours real estate finance; 30 hours financial management; 30 hours human resource/personnel management; 30 hours applied business economics; and 30 hours business law.

• ✓Pre-8/1/2001 salespersons must complete 30 hours each in eight subject areas totaling 240 hours
• ✓Ohio real estate law instruction shall, if feasible, be taught by an accredited law school faculty member
• ✓Civil rights instruction shall, if feasible, be taught by a knowledgeable Ohio civil rights commission staff member
• ✓The civil rights/law course requirement does not apply to applicants admitted to practice before the supreme court

Divisions (B)(6)(a) and (b) do not apply to applicants holding a valid salesperson's license issued before January 2, 1972. The management/economics/business law courses do not apply to applicants holding a valid salesperson's license issued before January 3, 1984. Appraisal course requirements do not apply to new applicants holding a valid Ohio real estate appraiser license or certificate issued before the application date.

• ✓All education requirements are waived for salespersons licensed before January 2, 1972
• ✓The management, economics, and business law courses are waived for salespersons licensed before January 3, 1984
• ✓Real estate appraisal course is waived for applicants holding a valid Ohio appraiser license/certificate issued before application
• ✓Successful completion of instruction is determined by the law in effect on the date instruction was completed

A licensee must notify the superintendent in writing within fifteen days of certain occurrences: conviction of a felony; conviction of a crime involving moral turpitude; being found to have violated any federal, state, or municipal civil rights law pertaining to housing discrimination; engaging in a discriminatory housing practice under R.C. 4112.02(H); being subject to an order revoking or permanently surrendering a professional license from the departments of commerce, insurance, or agriculture; or being subject to an order by any government agency concerning real estate, financial matters, or fiduciary duties.

• ✓Licensee must notify superintendent in writing within 15 days of a felony conviction
• ✓Notification required within 15 days for conviction of a crime involving moral turpitude
• ✓Notification required for civil rights/housing discrimination violations and discriminatory practices under R.C. 4112.02(H)
• ✓Notification required for orders revoking a professional license from commerce, insurance, or agriculture departments
• ✓Notification required for orders by any government agency concerning real estate, financial matters, or fiduciary duties

If a licensee fails to notify the superintendent within the required time, the superintendent may immediately suspend the licensee's license. Additionally, any court convicting a licensee of violating a municipal civil rights housing discrimination law must notify the Ohio Civil Rights Commission within fifteen days of the conviction.

• ✓Superintendent may immediately suspend the license if the licensee fails to notify within the required time
• ✓A convicting court must notify the Ohio Civil Rights Commission within 15 days of a municipal civil rights housing discrimination conviction

If a broker, brokerage, or salesperson fails to file a notice of renewal on or before the filing deadline, the license is suspended automatically without any action by the superintendent. This is an automatic operation of law, not a discretionary act.

• ✓Failure to file renewal by the deadline results in automatic suspension without action by the superintendent
• ✓The suspension occurs automatically by operation of law

A suspended license may be reactivated within twelve months of the date of suspension, provided the licensee pays the renewal fee plus a penalty fee equal to fifty percent of the renewal fee to the superintendent.

• ✓A suspended license can be reactivated within twelve months of suspension
• ✓Reactivation requires payment of the renewal fee plus a 50% penalty fee
• ✓The penalty fee equals fifty percent of the renewal fee

Failure to reactivate the license within the twelve-month period results in automatic revocation of the license without any action by the superintendent.

• ✓Failure to reactivate within twelve months results in automatic revocation
• ✓Revocation occurs without any action taken by the superintendent

No person, partnership, association, corporation, LLC, or limited partnership may engage in any act for which a real estate license is required while their license is inactive, resigned, suspended, or revoked. The Commission must adopt rules under Chapter 119 to provide licensees notice of suspension or revocation.

• ✓No entity may perform acts requiring a real estate license while inactive, resigned, suspended, or revoked
• ✓The Commission must adopt rules under Chapter 119 to notify licensees of suspension or revocation

If CE requirements are not met within the specified period, the licensee's license is suspended automatically without any action by the superintendent. The superintendent notifies the licensee by regular mail to the personal residence address on file with the division. A suspended license remains suspended until reactivated by the superintendent, and cannot be reactivated until it is established that CE requirements have been met.

• ✓Failure to meet CE requirements results in automatic suspension without superintendent action
• ✓Notification is sent by regular mail to the licensee's personal residence address on file
• ✓A suspended license cannot be reactivated until CE requirements are proven satisfied

If the CE requirements are not met within twelve months from the date the license was suspended, the license is revoked automatically without any action by the superintendent.

• ✓A license is automatically revoked if CE requirements are not met within 12 months of suspension
• ✓Revocation occurs automatically without any superintendent action

Authorizing or permitting an unlicensed person to act as a real estate broker or salesperson is prohibited. Knowingly inserting materially inaccurate terms in a document, including naming false consideration, is prohibited.

• ✓Permitting an unlicensed person to act as a broker or salesperson is prohibited (A)(34)
• ✓Knowingly inserting a materially inaccurate term, including false consideration, is prohibited (A)(35)

Failing to inform a client of an offer/counteroffer or failing to present one in a timely manner is prohibited, unless the client instructs otherwise and the instruction does not conflict with state or federal law.

• ✓Licensees must inform clients of and timely present all offers and counteroffers (A)(36)
• ✓Exception applies only when the client instructs otherwise and it does not violate state/federal law

Brokers must include definite expiration dates in all written agency agreements. Having an unsatisfied final judgment or lien in a court of record arising from the licensee's conduct as broker/salesperson is grounds for discipline.

• ✓All written agency agreements must include definite expiration dates (A)(28)
• ✓An unsatisfied final judgment or lien arising from licensee conduct is a violation (A)(29)

Licensees must promptly render, upon demand, a full statement of expenditures of funds advanced by a party. Brokers must render an accounting and pay a salesperson's earned share of a commission within a reasonable time after receipt.

• ✓A full statement of expenditures of advanced funds must be rendered promptly on demand (A)(30)
• ✓Brokers must pay salespersons their earned share within a reasonable time after receiving the commission (A)(31)

Performing services constituting the practice of law (as determined by a court) is prohibited. Being adjudicated incompetent under section 5122.301 is grounds for discipline; a license suspended/revoked on this basis is reactivated upon proof of removal of the disability.

• ✓Performing services constituting the unauthorized practice of law is prohibited (A)(32)
• ✓Being adjudicated incompetent under section 5122.301 is a violation (A)(33)
• ✓A license revoked/suspended for incompetency is reactivated upon proof of removal of the disability

Failing to comply with section 4735.24, acting as a broker without authority, or impeding a principal or management-level broker's duties is prohibited. Entering into a right-to-list home sale agreement is prohibited. Failing to comply with section 5301.95 while acting as a wholesaler of residential real property is prohibited.

• ✓Acting as a broker without authority or impeding a principal broker's duties is prohibited (A)(38)
• ✓Entering into a right-to-list home sale agreement is prohibited (A)(39)
• ✓Wholesalers of residential real property must comply with section 5301.95 (A)(40)

A broker may pay all or part of a fee, commission, or other compensation earned by an affiliated licensee to an unlicensed partnership, association, LLC, LLP, or corporation only if all specified conditions are satisfied. This allows licensees to have earnings paid to their own business entity.

• ✓At least one partner/member/officer/shareholder of the unlicensed entity must hold a valid and active license under this chapter
• ✓At least one such person must be the affiliated licensee who earned the compensation
• ✓The unlicensed entity must not engage in any acts specified in division (A) of section 4735.01
• ✓ALL conditions in division (C) must be satisfied for the payment to be lawful

If the parties dispute disbursement and the purchase agreement contains the division (B) provision, the broker must return the earnest money to the purchaser no later than the first day of September following the two-year anniversary date of the deposit, unless the parties provided written instructions or notice of a court action as described in division (B).

• ✓Return is due by the first day of September following the two-year anniversary of the deposit
• ✓Return to purchaser is required unless written instructions or notice of court action was provided under division (B)

If the broker cannot locate the purchaser at the time disbursement is due, the broker must provide the notice required by division (E) of section 169.03, report the earnest money as unclaimed funds to the director of commerce under section 169.03, and remit all of the earnest money to the director.

• ✓Applies when the purchaser cannot be located at the time disbursement is due
• ✓Broker must give ORC 169.03(E) notice, report as unclaimed funds, and remit all earnest money to the director of commerce