ORC 4735.56(G) Applicability of Requirements +23Ohio · Real Estate · English

The requirements regarding provision of a brokerage policy on agency apply only to: (1) the sale or lease of vacant land; (2) the sale of a parcel of real estate containing one to four residential units; and (3) the leasing of residential premises (as defined in section 5321.01) when the rental or lease agreement is for a term of more than eighteen months.

• ✓Applies to sale or lease of vacant land
• ✓Applies to sale of real estate with one to four residential units
• ✓Applies to leasing of residential premises only if the term exceeds eighteen months
• ✓Requirements do NOT apply to residential leases of eighteen months or less

A licensee does not breach any duty or obligation to the purchaser by acting as an agent or subagent for other purchasers, or as an agent or subagent for sellers. However, any dual agency relationship must be disclosed to a client pursuant to Ohio Revised Code section 4735.71.

• ✓No breach by acting as agent/subagent for other purchasers or for sellers
• ✓Any dual agency relationship must be disclosed under R.C. 4735.71

Nothing in section 4735.65 permits a licensee to perform any act or service that constitutes the practice of law.

• ✓Licensees may not perform acts or services constituting the practice of law
• ✓Statutory duties do not expand into unauthorized practice of law

Notwithstanding any contrary provision, the superintendent shall register a person as an oil and gas land professional in accordance with Chapter 4796 if the person is licensed or registered as such in another state, or if the person has satisfactory work experience, a government certification, or a private certification as an oil and gas land professional in a state that does not issue that license or registration.

• ✓The superintendent must register a person licensed or registered as an oil and gas land professional in another state, under Chapter 4796
• ✓The superintendent must register a person with satisfactory work experience, government certification, or private certification from a state that does not issue such a license
• ✓This provision applies notwithstanding any contrary provision in the section

If the parties fail to agree to mediation or fail to reach an accommodation, the superintendent must notify both parties and investigate the licensee's conduct within a specified timeframe.

• ✓If parties fail to agree to mediation or reach accommodation, the superintendent must act within five business days
• ✓The superintendent must notify both the complainant and licensee of the determination
• ✓The superintendent must investigate the conduct of the licensee against whom the complaint is filed

The superintendent, with the consent of the commission, may enter into an agreement with a recognized national testing service to administer the salesperson's examination under the superintendent's supervision and control, consistent with this chapter's requirements on exam contents. If such an agreement is made, the superintendent may require applicants to pay the testing service's exam fee directly to the service, in which case each applicant must also submit a processing fee determined by the commission under R.C. 4735.10(A)(1).

• ✓Superintendent needs commission consent to contract with a national testing service
• ✓The exam remains under the superintendent's supervision and control
• ✓Applicants may be required to pay the testing service's fee directly plus a commission-set processing fee under R.C. 4735.10(A)(1)

The Commission may adopt rules under Chapter 119 establishing standards and guidelines with which the Superintendent of Real Estate must comply when exercising certain enumerated powers, including appointment of ancillary trustees, name rejections, exam/licensure application acceptance, inactive status approvals, hearing examiner appointments, foreign real estate matters, and qualification of foreign real estate.

• ✓Commission may set standards guiding the Superintendent's exercise of enumerated powers
• ✓The Superintendent must comply with such adopted standards and guidelines

The Commission may set standards for the Superintendent's appointment and recommendation of ancillary trustees under section 4735.05, and for rejection of names proposed by partnerships, associations, LLCs, LLPs, and corporations under section 4735.06(B), including procedures for approving more than one trade name for a brokerage.

• ✓Superintendent appoints/recommends ancillary trustees under section 4735.05
• ✓Superintendent may reject business entity names under section 4735.06(B)
• ✓A brokerage may apply for and be approved for more than one trade name

Standards may guide the Superintendent's acceptance and rejection of applications for broker and salesperson exams and licensure, approval of broker applications to go inactive and become salespersons under section 4735.13, and appointment of hearing examiners under section 119.09.

• ✓Superintendent accepts/rejects broker and salesperson exam and licensure applications
• ✓Brokers may apply to place licenses inactive and become salespersons under section 4735.13
• ✓Hearing examiners are appointed under section 119.09

The Superintendent's powers include accepting/rejecting foreign real estate dealer and salesperson exam and licensure applications (with waiver of exam) under sections 4735.27 and 4735.28, and qualification of foreign real estate under section 4735.25.

• ✓Foreign real estate dealer/salesperson applications and exam waivers fall under sections 4735.27 and 4735.28
• ✓Qualification of foreign real estate is governed by section 4735.25

If at any time no rule is in effect establishing a guideline or standard required by division (B), the Superintendent may adopt a rule in accordance with Chapter 119 for that purpose. This is a gap-filling authority ensuring standards always exist.

• ✓If no required guideline/standard rule exists, the Superintendent may adopt one under Chapter 119
• ✓This gap-filling rulemaking applies to the powers listed in division (B)

An applicant must file notice of the application with the superintendent, who may defend the action on behalf of the fund. The superintendent has full means of defense and review, including examining witnesses, verifying losses, and challenging the underlying judgment to determine if it is based on activity only a licensed broker/salesperson may perform.

• ✓Applicant must file notice of the application with the superintendent
• ✓The superintendent may defend the action on behalf of the fund
• ✓The superintendent may examine witnesses, verify losses, and challenge the underlying judgment

The superintendent may move to dismiss the application at any time when there are no triable issues and it lacks merit, supported by affidavit, but must give the applicant at least ten days' written notice before such a motion. The superintendent may compromise a claim subject to court approval and is not bound by any prior compromise or stipulation of the judgment debtor.

• ✓Motion to dismiss requires no triable issues and lack of merit
• ✓Superintendent must give at least ten days' written notice before the motion
• ✓Compromise of a claim is subject to court approval
• ✓Superintendent is not bound by any prior compromise or stipulation of the debtor

All fees collected under Section 4735.15 must be remitted to the state treasury rather than retained locally.

• ✓All fees collected under this section shall be paid to the treasurer of state
• ✓This applies to all license, transfer, reactivation, and renewal fees

In every case, the required fee and any applicable penalty must be submitted at the same time as the application or renewal filing. Applications will not be processed without accompanying payment.

• ✓The fee and any penalty must accompany the application for license, transfer, or reactivation
• ✓For renewals, the fee and penalty must accompany the renewal filing
• ✓This requirement applies in all cases without exception

The Ohio Real Estate Commission has rulemaking authority to establish reasonable fees for services not otherwise set by statute, and it may adopt rules reducing the broker and salesperson renewal fees.

• ✓The commission may establish by rule reasonable fees for services not otherwise established by this chapter
• ✓The commission may adopt rules providing a reduction in the fees under divisions (B)(2) and (B)(3)
• ✓Reductions apply specifically to broker and salesperson three-year renewal fees

When the superintendent determines prima-facie evidence of a violation of R.C. 4735.18(A)(21) or its rules exists, the superintendent may either initiate disciplinary action under section 4735.051 in accordance with Chapter 119, OR personally (or by certified mail) serve a citation upon the licensee.

• ✓The superintendent may initiate disciplinary action under section 4735.051 in accordance with Chapter 119
• ✓Alternatively, the superintendent may serve a citation on the licensee personally or by certified mail

All statements, exhibits, and documents required by the superintendent, except properly certified public documents, must be verified by the oath of the applicant or of any person having knowledge of the facts, in the manner and form required by the superintendent. Failure to comply is sufficient grounds for the superintendent to refuse qualification.

• ✓All required documents except certified public documents must be verified by oath of the applicant or a knowledgeable person
• ✓Failure to comply with the superintendent's verification requests is sufficient reason to refuse qualification

The superintendent may investigate any applicant for a dealer's license and require any additional information considered necessary to determine qualifications. If investigation must occur outside Ohio, the superintendent may require the applicant to advance sufficient funds to pay actual investigation expenses, and must furnish the applicant an itemized statement of those expenses.

• ✓The superintendent may investigate any applicant and require additional information
• ✓For out-of-state investigations, the applicant may be required to advance funds for actual expenses
• ✓The superintendent must furnish an itemized statement of investigation expenses to the applicant

No person may take the foreign real estate salesperson's examination unless they establish to the superintendent's satisfaction that they have not been convicted of a disqualifying offense as determined in accordance with section 9.79 of the Revised Code.

• ✓Applicant must establish they have not been convicted of a disqualifying offense
• ✓Disqualifying offenses are determined in accordance with section 9.79 of the Revised Code
• ✓Eligibility must be established to the satisfaction of the superintendent

An applicant must not have been finally adjudged by a court to have violated municipal, state, or federal civil rights laws relevant to protecting purchasers or sellers of real estate. If adjudged, the superintendent may disregard the adjudication only if at least two years have passed and the applicant proves by a preponderance of the evidence that their activities and employment record show honesty and truthfulness with no basis to believe they will violate the laws again.

• ✓Applicant must not have been finally adjudged to have violated civil rights laws protecting real estate purchasers or sellers
• ✓Superintendent may disregard adjudication only if at least two years have passed since the court decision
• ✓Applicant must prove honesty and truthfulness by a preponderance of the evidence to overcome an adjudication

An applicant must not have violated any provision or rule of this chapter (or former applicable sections) during any period they were licensed as a foreign real estate dealer or salesperson. If violations occurred, the applicant must establish to the superintendent's satisfaction that they will not violate the provision or rule again.

• ✓Applicant must not have violated any provision or rule of this chapter during prior licensure
• ✓Applies to former Revised Code sections applicable to foreign real estate dealers or salespersons
• ✓If a violation occurred, applicant must satisfy the superintendent they will not violate it again

Ohio recognizes several license statuses: 'Inactive license' (salesperson's license held by the division, renewed, but not associated with a broker); 'Broker's license on deposit' (broker's license held by division and renewed); 'Suspended license' (prohibits providing licensed services for a specified time); 'Reactivate' (process to remove license from inactive/suspended/deposit status); and 'Revoked' (license is void and NOT eligible for reactivation).

• ✓An inactive salesperson license is renewed but not associated with any broker
• ✓A revoked license is void and cannot be reactivated
• ✓A suspended license prohibits providing licensed services for a specified interval
• ✓Reactivating restores an inactive, suspended, or on-deposit license to active status

A 'disabled licensee' is a person licensed under this chapter with a severe disability preventing attendance at instruction lasting at least three hours. 'Division of real estate' is interchangeable with 'division of real estate and professional licensing.' 'Superintendent' means the superintendent of that division.

• ✓A disabled licensee's disability must prevent attending instruction of at least three hours duration
• ✓References to the division or superintendent of real estate mean the division/superintendent of real estate and professional licensing

The investigator must file a written report of investigation results with the superintendent within sixty business days after receipt of the complaint, or within sixty days of an informal meeting if one is held. The superintendent then reviews the report to determine whether reasonable and substantial evidence of a violation of ORC 4735.18 exists.

• ✓The investigator must file a written report within sixty business days after receipt of the complaint (or sixty days of any informal meeting)
• ✓The superintendent must review the report within fourteen business days thereafter
• ✓The superintendent determines whether reasonable and substantial evidence of a violation of ORC 4735.18 exists

If the superintendent finds reasonable and substantial evidence of a violation, they must schedule a hearing before a hearing examiner under Chapter 119 and notify the parties. Timeframes and extension rights apply.

• ✓If evidence exists, the superintendent must notify parties of the hearing date within seven business days of the determination
• ✓The hearing is held by a hearing examiner pursuant to Chapter 119 of the Revised Code
• ✓The hearing must be held within fifteen days but not prior to seven days thereafter
• ✓Either the superintendent or licensee may request an extension of up to thirty business days for good cause shown

If the superintendent finds no reasonable and substantial evidence, they must notify the parties with the basis for the determination. The complainant may request the commissioners review the determination.

• ✓If no evidence is found, the superintendent must notify parties within five business days with the basis for the determination
• ✓The complainant may request commissioner review within fifteen business days of notification
• ✓Commissioners review at the next regularly scheduled meeting held at least fifteen business days after the request
• ✓If commissioners reverse the superintendent's determination, a hearing shall be held

The superintendent shall issue a real estate salesperson's license when satisfied that the applicant has received a passing score on each portion of the salesperson's examination, as determined by rule by the Ohio Real Estate Commission.

• ✓License is issued upon a passing score on each portion of the exam
• ✓Passing scores are determined by rule of the Ohio Real Estate Commission

Notwithstanding any other provision, the fund's liability shall not exceed forty thousand dollars for any one licensee. If a license is reactivated under division (E), the fund's liability again becomes forty thousand dollars, but only for transactions occurring after reactivation.

• ✓Fund liability cannot exceed $40,000 for any one licensee
• ✓Reactivation restores the $40,000 liability limit
• ✓The restored limit applies only to transactions after reactivation

If the $40,000 limit is insufficient to pay all valid claims against one licensee, the $40,000 is distributed among claimants in proportion to their respective claims or as the court finds equitable. Distribution is made without regard to the order in which judgments were obtained or claims filed. The court may, on the superintendent's petition, require all claimants against one licensee to be joined in one action.

• ✓Insufficient funds are distributed pro rata by claim ratio or as court finds equitable
• ✓Distribution ignores the priority order of judgments or claim filings
• ✓The court may require all claimants against one licensee to join in one action

If a real estate broker's license is suspended pursuant to division (C), the license of a real estate salesperson associated with that broker is correspondingly suspended pursuant to division (H) of section 4735.20. A sole broker must notify affiliated salespersons of the suspension in writing within three days of receiving the notice required by division (C).

• ✓Suspension of a broker's license correspondingly suspends associated salespersons' licenses
• ✓A sole broker must notify affiliated salespersons in writing within three days of receiving the suspension notice

The suspended license of an associated salesperson must be reactivated with no fee charged if the broker later submits proof of compliance and requests reactivation, and the superintendent reactivates the broker's license. Alternatively, if the salesperson applies to leave the suspended broker to associate with a different broker, the suspended salesperson license must be reactivated with no fee charged. The superintendent may process the application regardless of whether the license is returned. Any person whose license is reactivated must comply with this section and otherwise be in compliance with the chapter.

• ✓Associated salesperson's license is reactivated with no fee when the broker becomes compliant and is reactivated
• ✓A salesperson may reactivate with no fee by transferring to a different broker
• ✓The superintendent may process the transfer application even if the license is not returned
• ✓Reactivated licensees must comply with this section and the chapter

Every citation must notify the licensee of the alleged violation(s) and inform them of the opportunity to request a hearing under Chapter 119. The citation must state a fine of $200 per violation, not to exceed $2,500 per citation. All fines collected are credited to the real estate recovery fund created under section 4735.12.

• ✓Fine is $200 per violation, not to exceed $2,500 per citation
• ✓All fines collected are credited to the real estate recovery fund under section 4735.12
• ✓The citation must inform the licensee of the opportunity to request a hearing under Chapter 119

If a licensee is cited three times within twelve consecutive months, the superintendent must initiate disciplinary action under section 4735.051 for any subsequent violation occurring within the same twelve-month period.

• ✓Three citations within twelve consecutive months triggers mandatory disciplinary action
• ✓Disciplinary action applies to any subsequent violation within the same twelve-month period

A licensee has thirty days from the date of service to request a hearing. If the licensee fails to request a hearing within thirty days, or if the licensee and superintendent fail to reach an alternative agreement, the citation becomes final.

• ✓A hearing must be requested within thirty days of the date of service of the citation
• ✓The citation becomes final if no hearing is requested in time or no alternative agreement is reached

Unless otherwise indicated, a licensee named in a final citation must meet all requirements contained in it within thirty days of the citation's effective date. The superintendent must automatically suspend the license if the licensee fails to comply with this requirement.

• ✓A licensee must meet all final citation requirements within thirty days of the effective date
• ✓Failure to comply results in automatic suspension of the license by the superintendent

Upon filing, the applicant pays the superintendent a filing fee of five hundred dollars plus one dollar for each lot, unit, parcel, or interest in the offering, with the aggregate fee capped at two thousand five hundred dollars. The applicant must also deposit a sum required to defray the cost of verifying statements and determining compliance with the chapter.

• ✓The base filing fee is $500 plus $1 for each lot, unit, parcel, or interest included in the offering
• ✓The aggregate filing fee may not exceed $2,500
• ✓An additional deposit may be required to defray verification and compliance costs

Every applicant must take a written examination prescribed and conducted by the superintendent covering principles of real estate practice, real estate law, financing and appraisal, real estate transactions and instruments, canons of business ethics, and duties of foreign real estate dealers and salespersons. The examination fee, when administered by the superintendent, is one hundred one dollars.

• ✓Every applicant must take a written examination prescribed and conducted by the superintendent
• ✓The examination fee administered by the superintendent is $101
• ✓Exam covers real estate practice, law, financing, appraisal, transactions, ethics, and dealer/salesperson duties

If an applicant does not appear for the examination, the fee is forfeited and a new application and fee must be filed, unless good cause for failing to appear is shown to the superintendent. Any applicant who fails the examination twice must wait six months before applying to retake it.

• ✓Failure to appear forfeits the fee and requires a new application and fee, unless good cause is shown
• ✓An applicant who fails the examination twice must wait six months before reapplying to retake it

Every foreign real estate salesperson must be licensed by the superintendent of real estate and may be employed only by the licensed foreign real estate dealer specified on the salesperson's license.

• ✓Every salesperson of foreign real estate must be licensed by the superintendent of real estate
• ✓A salesperson may be employed only by the licensed dealer specified on the salesperson's license

If the superintendent finds the applicant appears qualified, has fully complied with the chapter, and that the dealer named in the application is a licensed foreign real estate dealer, the superintendent shall issue a license upon payment of the fees prescribed by section 4735.15. The license authorizes the applicant to act as a salesperson for the dealer named in the application.

• ✓Superintendent must find applicant qualified and in full compliance with the chapter
• ✓The named dealer must be a licensed foreign real estate dealer
• ✓License is issued upon payment of fees prescribed by section 4735.15
• ✓License authorizes the applicant to act as a salesperson only for the dealer named in the application

Each broker's license applicant must be examined in the principles of real estate practice, Ohio real estate law, financing and appraisal, the duties of brokers and salespersons, knowledge of real estate transactions and instruments, and the canons of business ethics. The commission promulgates and publishes these canons in printed form.

• ✓Exam covers principles of real estate practice, Ohio real estate law, financing, and appraisal
• ✓Exam covers duties of brokers/salespersons, transactions, instruments, and business ethics canons
• ✓The commission promulgates and publishes the canons of business ethics in printed form

Examinations must be administered with reasonable accommodations in accordance with the Americans with Disabilities Act of 1990. Exam contents must be consistent with the education requirements of division (B)(6) and other requirements. An applicant who completed the education requirements at time of application must be examined no later than twelve months after being notified of admission to the examination.

• ✓Exams must provide reasonable accommodations per the ADA of 1990
• ✓An eligible applicant must be examined within twelve months of notification of admission to the exam

The Commission or Superintendent may hear testimony in matters relating to their duties. The president of the Commission and the Superintendent may administer oaths. Additionally, they may require other proof of the honesty and truthfulness of any applicant before admitting them to the examination or issuing a license.

• ✓The Commission or Superintendent may hear testimony in matters relating to their duties
• ✓The president of the Commission and the Superintendent may administer oaths
• ✓They may require proof of an applicant's honesty and truthfulness before exam admission or license issuance

When a broker changes business location, the broker must notify the superintendent on a prescribed form within thirty days after the change. The superintendent then issues new licenses for the unexpired period without charge. Changing location without giving notice and without receiving new licenses is prima-facie evidence of misconduct under R.C. 4735.18(A)(6).

• ✓Broker must give notice of a change of business location within 30 days on a prescribed form
• ✓Superintendent issues new licenses for the unexpired period without charge
• ✓Changing location without notice and without new licenses is prima-facie misconduct under R.C. 4735.18(A)(6)