As Introduced 1
123rd General Assembly 4
Regular Session H. B. No. 524 5
1999-2000 6
REPRESENTATIVE CORBIN 8
_________________________________________________________________ 9
A B I L L
To amend sections 4735.01, 4735.02, 4735.03, 11
4735.05, 4735.051, 4735.06, 4735.07, 4735.08, 12
4735.09, 4735.10, 4735.11, 4735.12, 4735.13, 13
4735.14, 4735.141, 4735.15, 4735.16, 4735.18, and
4735.25 of the Revised Code to include limited 15
liability companies and limited liability
partnerships in the definition of real estate 16
broker and to establish changes in the real 17
estate licensing law.
BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF OHIO: 19
Section 1. That sections 4735.01, 4735.02, 4735.03, 21
4735.05, 4735.051, 4735.06, 4735.07, 4735.08, 4735.09, 4735.10, 22
4735.11, 4735.12, 4735.13, 4735.14, 4735.141, 4735.15, 4735.16, 23
4735.18, and 4735.25 of the Revised Code be amended to read as 25
follows:
Sec. 4735.01. As used in this chapter: 34
(A) "Real estate broker" includes any person, partnership, 36
association, LIMITED LIABILITY COMPANY, LIMITED LIABILITY 37
PARTNERSHIP, or corporation, foreign or domestic, who for 38
another, whether pursuant to a power of attorney or otherwise, 39
and who for a fee, commission, or other valuable consideration, 40
or with the intention, or in the expectation, or upon the promise 41
of receiving or collecting a fee, commission, or other valuable 42
consideration DOES ANY OF THE FOLLOWING: 43
(1) Sells, exchanges, purchases, rents, or leases, or 45
negotiates the sale, exchange, purchase, rental, or leasing of 46
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any real estate; 47
(2) Offers, attempts, or agrees to negotiate the sale, 49
exchange, purchase, rental, or leasing of any real estate; 50
(3) Lists, or offers, attempts, or agrees to list, or 52
auctions, or offers, attempts, or agrees to auction, any real 53
estate; 54
(4) Buys or offers to buy, sells or offers to sell, or 56
otherwise deals in options on real estate; 57
(5) Operates, manages, or rents, or offers or attempts to 59
operate, manage, or rent, other than as custodian, caretaker, or 60
janitor, any building or portions of buildings to the public as 61
tenants; 62
(6) Advertises or holds self out as engaged in the 64
business of selling, exchanging, purchasing, renting, or leasing 65
real estate; 66
(7) Directs or assists in the procuring of prospects or 68
the negotiation of any transaction, other than mortgage 69
financing, which does or is calculated to result in the sale, 70
exchange, leasing, or renting of any real estate; 71
(8) Is employed by or on behalf of the owner of lots, or 73
other parcels of real estate, at a stated salary, or upon a 74
commission, or upon a salary and commission basis or otherwise, 75
to sell such real estate, or any parts of it, in lots or other 76
parcels, and who sells, exchanges, or offers, attempts, or agrees 77
to negotiate the sale or exchange of any such lot or parcel of 78
real estate; 79
(9) Is engaged in the business of charging an advance fee 81
or contracting for collection of a fee in connection with any 82
contract whereby the broker undertakes primarily to promote the 84
sale, exchange, purchase, rental, or leasing of real estate 85
through its listing in a publication issued primarily for such 86
purpose, or for referral of information concerning such real 87
estate to brokers, or both, except that this division does not 88
apply to a publisher of listings or compilations of sales of real 89
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estate by their owners; 90
(10)(9) Collects rental information for purposes of 92
referring prospective tenants to rental units or locations of 93
such units and charges the prospective tenants a fee. 94
(B) "Real estate" includes leaseholds as well as any and 96
every interest or estate in land situated in this state, whether 97
corporeal or incorporeal, whether freehold or nonfreehold, and 98
the improvements on the land, but does not include cemetery 99
interment rights. 100
(C) "Real estate salesperson" means any person associated 102
with a licensed real estate broker to do or to deal in any acts 103
or transactions set out or comprehended by the definition of a 104
real estate broker, for compensation or otherwise. 105
(D) "Institution of higher education" means either of the 107
following:
(1) A nonprofit institution as defined in section 1713.01 109
of the Revised Code that actually awards, rather than intends to 110
award, degrees for fulfilling requirements of academic work 111
beyond high school; 112
(2) An institution operated for profit that otherwise 114
qualifies under the definition of an institution in section 115
1713.01 of the Revised Code and that actually awards, rather than 116
intends to award, degrees for fulfilling requirements of academic 117
work beyond high school. 118
(E) "Foreign real estate" means real estate not situated 120
in this state and any interest in real estate not situated in 121
this state. 122
(F) "Foreign real estate dealer" includes any person, 124
partnership, association, LIMITED LIABILITY COMPANY, LIMITED 125
LIABILITY PARTNERSHIP, or corporation, foreign or domestic, who 127
for another, whether pursuant to a power of attorney or
otherwise, and who for a fee, commission, or other valuable 128
consideration, or with the intention, or in the expectation, or 129
upon the promise of receiving or collecting a fee, commission, or 130
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other valuable consideration, does or deals in any act or 131
transaction specified or comprehended in division (A) of this 132
section with respect to foreign real estate. 133
(G) "Foreign real estate salesperson" means any person 136
associated with a licensed foreign real estate dealer to do or 137
deal in any act or transaction specified or comprehended in 138
division (A) of this section with respect to foreign real estate, 139
for compensation or otherwise. 140
(H) Any person, partnership, association, LIMITED 142
LIABILITY COMPANY, LIMITED LIABILITY PARTNERSHIP, or corporation, 143
who, for another, in consideration of compensation, by fee, 144
commission, salary, or otherwise, or with the intention, in the 145
expectation, or upon the promise of receiving or collecting a 146
fee, does, or offers, attempts, or agrees to engage in, any 147
single act or transaction contained in the definition of a real 148
estate broker or foreign real estate dealer, whether an act is an 149
incidental part of a transaction, or the entire transaction, 150
shall be constituted a real estate broker or real estate 151
salesperson or a foreign real estate dealer or foreign real 152
estate salesperson under this chapter. 153
(I) The terms "real estate broker," "real estate 155
salesperson," "foreign real estate dealer," and "foreign real 157
estate salesperson" do not include a person, partnership, 158
association, LIMITED LIABILITY COMPANY, LIMITED LIABILITY 159
PARTNERSHIP, or corporation, or the regular employees thereof, 160
who perform any of the acts or transactions specified or 162
comprehended in division (A) of this section, whether or not for, 163
or with the intention, in expectation, or upon the promise of 164
receiving or collecting a fee, commission, or other valuable 165
consideration:
(1) With reference to real estate situated in this state 167
or any interest in it owned by such person, partnership, 168
association, or corporation, or acquired on its own account in 169
the regular course of, or as an incident to the management of the 170
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property and the investment in it; 171
(2) As receiver or trustee in bankruptcy, as guardian, 173
executor, administrator, trustee, assignee, commissioner, or any 174
person doing the things mentioned in this section, under 175
authority or appointment of, or incident to a proceeding in, any 176
court, or as a public officer, or as executor, trustee, or other 177
bona fide fiduciary under any trust agreement, deed of trust, 178
will, or other instrument creating a like bona fide fiduciary 179
obligation; 180
(3) As a public officer while performing the officer's 182
official duties; 183
(4) As an attorney at law in the performance of the 185
attorney's duties. 186
(J) "Physically handicapped licensee" means a person 188
licensed pursuant to this chapter who is under a severe physical 189
disability which is of such a nature as to prevent the person 190
from being able to attend any classroom instruction lasting at 191
least three hours in duration. 192
(K) "Division of real estate" may be used interchangeably 195
with, and for all purposes has the same meaning as, "division of 196
real estate and professional licensing." 197
(L) "Superintendent" or "superintendent of real estate" 200
means the superintendent of the division of real estate and 201
professional licensing of this state. Whenever the division or 202
superintendent of real estate is referred to or designated in any 203
statute, rule, contract, or other document, the reference or 204
designation shall be deemed to refer to the division or 205
superintendent of real estate and professional licensing, as the 206
case may be.
Sec. 4735.02. No person, partnership, association, LIMITED 215
LIABILITY COMPANY, LIMITED LIABILITY PARTNERSHIP, or corporation 217
shall act as a real estate broker or real estate salesperson, or 218
advertise or assume to act as such, without first being licensed 219
as provided in this chapter. Nothing contained in this chapter
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shall be construed as authorizing a real estate broker or 221
salesperson to perform any service constituting the practice of 222
law.
No partnership, association, LIMITED LIABILITY COMPANY, 224
LIMITED LIABILITY PARTNERSHIP, or corporation holding a real 225
estate license shall employ as an officer, director, manager, or 226
principal employee any person previously holding a license as a 227
real estate broker, real estate salesperson, foreign real estate 229
dealer, or foreign real estate salesperson, whose license has 230
been terminated by failure to file a certificate of continuation, 231
by revocation, or by suspension, SUSPENDED OR REVOKED and who has 232
not thereafter been relicensed REACTIVATED THE LICENSE OR 233
RECEIVED A NEW LICENSE.
Sec. 4735.03. There is hereby created the Ohio real estate 242
commission, consisting of five members who shall be appointed by 243
the governor, with the advice and consent of the senate. Four 244
members shall have been engaged in the real estate business as 245
licensed real estate brokers in the state for a period of ten 246
years immediately preceding the appointment. One member shall 247
represent the public. Terms of office shall be for five years, 248
commencing on the first day of July and ending on the thirtieth 249
day of June. Each member shall hold office from the date of his 250
appointment until the end of the term for which appointed. No 251
more than three members shall be members of any one political 252
party and no member of the commission concurrently may be a 253
member of the commission and the real estate appraiser board 254
created pursuant to section 4763.02 of the Revised Code. Each 255
member, before entering upon the duties of his office, shall 256
subscribe to and file with the secretary of state the 257
constitutional oath of office. All vacancies which occur shall 258
be filled in the manner prescribed for the regular appointments 259
to the commission. Any member appointed to fill a vacancy 260
occurring prior to the expiration of the term for which his THE 261
MEMBER'S predecessor was appointed shall hold office for the 262
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remainder of such term. Any member shall continue in office 263
subsequent to the expiration date of his THE MEMBER'S term until 264
his THE MEMBER'S successor takes office, or until a period of 266
sixty days has elapsed, whichever occurs first. Annually, upon 267
the qualification of the member appointed in such year, the 268
commission shall organize by selecting from its members a 269
president AND VICE PRESIDENT, and shall do all things necessary
and proper to carry out and enforce this chapter. A majority of 271
the members of the commission shall constitute a quorum, but a 272
lesser number may adjourn from time to time. Each member of the 273
commission shall receive an amount fixed pursuant to section 274
124.14 of the Revised Code for each day employed in the discharge 275
of his official duties, and his THE MEMBER'S actual and necessary 276
expenses incurred in the discharge of such THOSE duties. 277
The commission or the superintendent of real estate may 279
investigate complaints concerning the violation of section 280
4735.02 or 4735.25 of the Revised Code and may subpoena witnesses 281
in connection with such investigations as provided in section 282
4735.04 of the Revised Code. The commission or the 283
superintendent may make application to the appropriate court for 284
an order enjoining the violation of section 4735.02 or 4735.25 of 285
the Revised Code, and upon a showing by the commission or the 286
superintendent that any person, firm, partnership, association, 287
LIMITED LIABILITY COMPANY, LIMITED LIABILITY PARTNERSHIP, or 289
corporation has violated or is about to violate section 4735.02 290
or 4735.25 of the Revised Code, an injunction, restraining order, 291
or such other order as may be appropriate shall be granted by 292
such court.
The commission shall: 294
(A) Adopt canons of ethics for the real estate industry; 296
(B) Upon appeal by any party affected, or may upon its own 298
motion, review any order OR APPLICATION DETERMINATION of the 299
superintendent, and may reverse, vacate, or modify any order of 301
the superintendent;
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(C) Administer the real estate education and research fund 303
and hear appeals from orders of the superintendent regarding 304
claims against that fund or against the real estate recovery 305
fund; 306
(D) Direct the superintendent on the content, scheduling, 308
instruction, and offerings of real estate courses for salesman 309
SALESPERSON and broker educational requirements; 310
(E) Disseminate to licensees and the public, information 312
relative to commission activities and decisions; 313
(F) Notify licensees of changes in state and federal civil 315
rights laws pertaining to discrimination in the purchase or sale 316
of real estate and relevant case law, and inform licensees that 317
they are subject to disciplinary action if they do not comply 318
with the changes; 319
(G) Publish and furnish to public libraries and to brokers 321
booklets on housing and remedies available to dissatisfied 322
clients under this chapter and Chapter 4112. of the Revised Code. 323
Sec. 4735.05. (A) The Ohio real estate commission is a 332
part of the department of commerce for administrative purposes. 333
The director of commerce is ex officio the executive officer of 334
the commission, or the director may designate any employee of the 335
department as superintendent of real estate and professional 336
licensing to act as executive officer of the commission. 337
The commission and the real estate appraiser board created 339
pursuant to section 4763.02 of the Revised Code shall each submit 340
to the director a list of three persons whom the commission and 341
the board consider qualified to be superintendent within sixty 342
days after the office of superintendent becomes vacant. The 343
director shall appoint a superintendent from the lists submitted 344
by the commission and the board, and the superintendent shall 345
serve at the pleasure of the director. 346
(B) The superintendent, except as otherwise provided, 348
shall do all of the following in regard to this chapter: 349
(1) Administer this chapter; 351
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(2) Issue all orders necessary to implement this chapter; 353
(3) Investigate complaints concerning the violation of 355
this chapter or the conduct of any licensee; 356
(4) Establish and maintain an investigation and audit 358
section to investigate complaints and conduct inspections, 359
audits, and other inquiries as in the judgment of the 360
superintendent are appropriate to enforce this chapter. The 361
investigators or auditors have the right to review and audit the 362
business records of licensees AND CONTINUING EDUCATION COURSE 363
PROVIDERS during normal business hours. 364
(5) Appoint a hearing examiner for any proceeding 366
involving license suspension or revocation DISCIPLINARY ACTION 367
under section 2301.373 of the Revised Code or proceedings brought 369
under section 4735.18 of the Revised Code; 370
(6) Administer the real estate recovery fund. 372
(C) The superintendent may do all of the following: 374
(1) In connection with investigations and audits under 376
division (B) of this section, subpoena witnesses as provided in 377
section 4735.04 of the Revised Code; 378
(2) Apply to the appropriate court to enjoin any violation 380
of this chapter. Upon a showing by the superintendent that any 381
person has violated or is about to violate any provision of this 382
chapter, the court shall grant an injunction, restraining order, 383
or other appropriate order. 384
(3) Upon the death of a licensed broker or the revocation 386
or suspension of the broker's license, if there is no other 387
licensed broker within the business entity of the broker, appoint 388
upon application by any interested party, or, in the case of a 389
deceased broker, subject to the approval by the appropriate 390
probate court, recommend the appointment of, an ancillary trustee 391
who is qualified as determined by the superintendent to conclude 392
the business transactions of the deceased, revoked, or suspended 393
broker. 394
(D) All information that is obtained by investigators and 396
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auditors performing investigations or conducting inspections, 397
audits, and other inquiries pursuant to division (B)(4) of this 398
section, from licensees, complainants, or other persons, and all 399
reports, documents, and other work products that arise from that 400
information and that are prepared by the investigators, auditors, 401
or other personnel of the department, shall be held in confidence 402
by the superintendent, the investigators and auditors, and other 403
personnel of the department. 404
Sec. 4735.051. (A) Within five business days after a 413
person files a signed written complaint against a licensed real 414
estate broker or licensed real estate salesperson with the 416
division of real estate, the superintendent of real estate shall 417
acknowledge receipt of the complaint and send a notice to the 418
licensee describing the acts complained of. The acknowledgment 419
to the complainant and the notice to the licensee shall state 420
that an informal meeting will be held with the complainant, the 421
licensee, and an investigator from the investigation and audit 422
section of the division if the complainant and licensee both file 423
a request for such a meeting within ten business days thereafter 424
on a form provided by the superintendent. 425
(B) If the complainant and licensee both file with the 427
division requests for an informal meeting, the superintendent 428
shall notify the complainant and licensee of the date of the 429
meeting, which shall be within twenty business days thereafter, 430
except that any party may request an extension of up to fifteen 431
business days for good cause shown. If the parties COMPLAINANT 432
AND LICENSEE reach an accommodation at an informal meeting, the 434
investigator shall so report to the superintendent and, the 435
parties COMPLAINANT, AND LICENSEE and the complaint file shall be 437
closed, unless, based upon the investigator's report, the 438
superintendent finds evidence that the licensee has violated 439
section 4735.18 of the Revised Code.
(C) If the parties COMPLAINANT AND LICENSEE fail to agree 441
to an informal meeting or fail to reach an accommodation, or if 443
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the superintendent finds evidence of a violation of section 444
4735.18 of the Revised Code, the superintendent shall, within 445
five business days of such determination, so notify the parties 447
COMPLAINANT AND LICENSEE and shall investigate the conduct of the 449
licensee against whom the complaint is filed.
(D) Within sixty business days after receipt of the 451
complaint, or, if an informal meeting is held, within sixty days 452
of such meeting, the investigator shall file a written report of 453
the results of the investigator's investigation with the 454
superintendent. Within ten FOURTEEN business days thereafter, 456
the superintendent shall review the report and determine whether 458
there exists reasonable and substantial evidence of a violation 459
of section 4735.18 of the Revised Code by the licensee. If the 460
superintendent finds such evidence exists, within five SEVEN 461
business days of the determination, the superintendent shall 463
notify the parties COMPLAINANT AND LICENSEE of the date of a 465
hearing to be held by a hearing examiner pursuant to Chapter 119. 466
of the Revised Code within fifteen days but not prior to seven 467
days thereafter, except that any party EITHER THE SUPERINTENDENT 468
OR THE LICENSEE may request an extension of up to thirty business 470
days for good cause shown. If the superintendent finds that such 471
evidence does not exist, within five business days thereafter, 472
the superintendent shall so notify the parties COMPLAINANT AND 473
LICENSEE of the superintendent's determination and the basis for 474
the determination. Within fifteen business days after the 475
superintendent notifies the parties COMPLAINANT AND LICENSEE that 477
such evidence does not exist, the complainant may file with the 478
division a request that the commissioners review the 479
determination. If the complainant files such request, the 480
commissioners shall review the determination at the next 481
regularly scheduled meeting held at least fifteen business days 482
after the request is filed. The commission shall hear the 483
testimony of either party THE COMPLAINANT OR THE LICENSEE at such 484
THE meeting upon the request of the party COMPLAINANT OR 485
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LICENSEE. If the commissioners affirm the determination of the 487
superintendent, the superintendent shall so notify the 488
complainant and the licensee within five business days 489
thereafter. If the commissioners reverse the determination of 490
the superintendent, a hearing shall be held and the parties 491
COMPLAINANT AND LICENSEE notified as provided in this division. 492
(E) Within twenty-five business days after the conclusion 494
of formal hearings, the hearing examiner shall file a report of 495
findings of fact and conclusions of law with the superintendent, 496
the commission, and the parties COMPLAINANT AND LICENSEE. 497
(F) The commissioners shall review the hearing examiner's 499
report and the parties' evidence at the next regularly scheduled 500
commission meeting held at least fifteen business days after 501
receipt of the hearing examiner's report. The commission shall 502
hear the testimony of any party THE COMPLAINANT OR THE LICENSEE 503
upon request. If the complainant is the Ohio civil rights 505
commission, the complaint shall be reviewed by the commissioners 506
directly upon request.
(G) The commission shall decide whether to impose 508
disciplinary sanctions upon a licensee for a violation of section 509
4735.18 of the Revised Code. The commission shall decide within 510
sixty days of the filing of the hearing examiner's report or 511
within sixty days of the filing of an Ohio civil rights 512
commission complaint. The commission shall maintain a transcript 513
of the proceedings and issue a written opinion to all the parties 514
COMPLAINANT AND LICENSEE, citing its findings and grounds for any 516
action taken. The commission shall notify the complainant and 517
any other party PERSON who may have suffered financial loss 518
because of the licensee's violations, that the complainant or 519
other party PERSON may sue for recovery under section 4735.12 of 520
the Revised Code.
(H) An investigation under this section is subject to 522
section 4735.32 of the Revised Code. 523
(I) The commission may impose the following sanctions upon 525
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a licensee for a violation of section 4735.18 of the Revised 526
Code: 527
(1) Revoke a license issued under Chapter 4735. of the 529
Revised Code; 530
(2) Suspend a license for a term set by the commission; 532
(3) Impose a fine, not exceeding two thousand five hundred 534
dollars per violation; 535
(4) Issue a public reprimand; 537
(5) Require the completion of additional continuing 539
education course work. Any continuing education course work 540
imposed pursuant to this section shall not count toward the 541
continuing education requirements set forth in section 4735.14 of 542
the Revised Code.
All fines imposed pursuant to division (I)(3) of this 544
section shall be credited to the real estate operating RECOVERY 545
fund, which is created in the state treasury under section 547
4735.211 4735.12 of the Revised Code. 548
Sec. 4735.06. (A) Application for a license as a real 557
estate broker shall be made in writing to the superintendent of 558
real estate on forms furnished by the superintendent and filed 560
with the superintendent and shall be signed by the applicant or 562
its members or officers. Each application shall state the name 563
of the person applying and the location of the place of business 564
for which the license is desired, and give such other information 565
as the superintendent requires in the form of application 566
prescribed by the superintendent. 567
The application shall be accompanied by a recent photograph 569
of the applicant and the names of three resident freeholders of 570
the county in which the applicant resides or has the applicant's 572
place of business. If the applicant has resided, or has engaged 573
in the real estate business, for less than one year in the county 574
from which the application is made, the application shall be 575
accompanied by a recent photograph of the applicant and the names 576
of three resident freeholders of each of the counties where the 577
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applicant formerly resided or engaged in the real estate business 578
during the period of one year prior to the filing of the 579
application. No one of the freeholders shall be related to the 580
applicant, and one of them shall be the applicant's most recent 581
broker. If the applicant's most recent broker is a relative of 582
the applicant or is not a freeholder, the name of a third 583
freeholder shall be furnished. The freeholders shall furnish 584
information to the superintendent, on forms prescribed by the 585
superintendent, concerning the character of the applicant. If 586
the applicant maintains more than one place of business within 587
the state, the applicant shall apply for and procure a duplicate 588
license for each branch office so maintained by the applicant. 589
Each branch office shall be in the charge of a licensed broker or 591
salesperson.
If the applicant is a partnership, LIMITED LIABILITY 593
COMPANY, LIMITED LIABILITY PARTNERSHIP, or association, the names 595
of all the members also shall be stated, and, if the applicant is 596
a corporation, the names of its president and of each of its 597
officers also shall be stated. The superintendent has the right 598
to reject the application of any partnership, association, 599
LIMITED LIABILITY COMPANY, LIMITED LIABILITY PARTNERSHIP, or 601
corporation if the name proposed to be used by such partnership, 602
association, LIMITED LIABILITY COMPANY, LIMITED LIABILITY 604
PARTNERSHIP, or corporation is likely to mislead the public or if 605
the name is not such as to distinguish it from the name of any 606
existing partnership, association, LIMITED LIABILITY COMPANY, 608
LIMITED LIABILITY PARTNERSHIP, or corporation licensed under this 610
chapter, unless there is filed with the application the written 612
consent of such existing partnership, association, LIMITED 613
LIABILITY COMPANY, LIMITED LIABILITY PARTNERSHIP, or corporation, 615
executed by a duly authorized representative of it, permitting 616
the use of the name of such existing partnership, association, 617
LIMITED LIABILITY COMPANY, LIMITED LIABILITY PARTNERSHIP, or 619
corporation.
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(B) A fee of sixty-nine dollars shall accompany the 622
application for a real estate broker's license, which fee shall 623
include the license if it is issued. The application fee shall 624
be retained by the superintendent if the applicant is admitted to 625
the examination for the license or the examination requirement is 626
waived, but, if an applicant is not so admitted and a waiver is 627
not involved, one-half of the fee shall be retained by the 628
superintendent to cover the expenses of processing the 629
application and the other one-half shall be returned to the 630
applicant. A fee of sixty-nine dollars shall be charged by the 632
superintendent for each successive application made by an 633
applicant. 634
(C) Four dollars of each fee for a real estate broker's 637
license shall be credited to the real estate education and 638
research fund, which is hereby created in the state treasury. 639
The Ohio real estate commission may use the fund in discharging 640
the duties prescribed in divisions (E), (F), and (G) of section 641
4735.03 of the Revised Code and shall use it in the advancement 642
of education and research in real estate at any institution of 643
higher education in the state, or in contracting with any such 644
institution for a particular research or educational project in 645
the field of real estate, or in advancing loans, not exceeding 646
eight hundred dollars, to applicants for salesperson licenses, to 648
defray the costs of satisfying the educational requirements of
division (F) of section 4735.09 of the Revised Code. Such loans 649
shall be made according to rules established by the commission 650
under the procedures of Chapter 119. of the Revised Code, and 651
they shall be repaid to the fund within three years of the time 652
they are made. No more than ten thousand dollars shall be lent 653
from the fund in any one year. 654
The governor may appoint a representative from the 656
executive branch to be a member ex officio of the commission for 657
the purpose of advising on research requests or educational 658
projects. The commission shall report to the general assembly on 659
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the third Tuesday after the third Monday in January of each year 660
setting forth the total amount contained in the fund and the 661
amount of each research grant that it has authorized and the 662
amount of each research grant requested. A copy of all research 663
reports shall be submitted to the state library of Ohio and the 664
library of the legislative service commission. 665
(D) If the superintendent, with the consent of the 667
commission, enters into an agreement with a national testing 668
service to administer the real estate broker's examination, 669
pursuant to division (A) of section 4735.07 of the Revised Code, 670
the superintendent may require an applicant to pay the testing 671
service's examination fee directly to the testing service. If 673
the superintendent requires the payment of the examination fee 674
directly to the testing service, each applicant shall submit to 675
the superintendent a processing fee in an amount determined by 676
the Ohio real estate commission pursuant to division (A)(1)(2) of 677
section 4735.10 of the Revised Code. 679
Sec. 4735.07. (A) The superintendent of real estate, with 688
the consent of the Ohio real estate commission, may enter into 689
agreements with recognized national testing services to 690
administer the real estate broker's examination under the 691
superintendent's supervision and control, consistent with the 692
requirements of this chapter as to the contents of such 693
examination.
(B) No applicant for a real estate broker's license shall 696
take the broker's examination who has not established to the 697
satisfaction of the superintendent that the person the applicant: 698
(1) Is honest, truthful, and of good reputation; 700
(2)(a) Has not been convicted of a felony or crime of 702
moral turpitude, or if the person the applicant has been so 703
convicted, the superintendent has disregarded the conviction 704
because the applicant has proven to the superintendent, by a 705
preponderance of the evidence, that the applicant's activities 706
and employment record since the conviction show that the 708
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applicant is honest, truthful, and of good reputation, and there 709
is no basis in fact for believing that the applicant again will 710
violate the laws involved;
(b) Has not been finally adjudged by a court to have 712
violated any municipal, state, or federal civil rights laws 713
relevant to the protection of purchasers or sellers of real 714
estate or, if the person the applicant has been so adjudged, at 715
least two years have passed since the court decision and the 717
superintendent has disregarded the adjudication because the 718
applicant has proven, by a preponderance of the evidence, that 719
the applicant's activities and employment record since the 720
adjudication show that the applicant is honest, truthful, and of 721
good reputation, and there is no basis in fact for believing that 722
the applicant will again violate the laws involved. 723
(3) Has not, during any period in which the person the 725
applicant was licensed under this chapter, violated any provision 726
of, or any rule adopted pursuant to, this chapter, or, if the 727
person the applicant has violated any such provision or rule, has 728
established to the satisfaction of the superintendent that the 729
person the applicant will not again violate such provision or 730
rule;
(4) Is at least eighteen years of age; 732
(5) Has been a licensed real estate broker or salesperson 735
for at least two years; during at least two of the five years 736
preceding the person's application, has worked as a licensed real
estate broker or salesperson for an average of at least thirty 737
hours per week; and has completed one of the following: 738
(a) At least twenty real estate transactions, in which 740
property was sold for another by the applicant while acting in 741
the capacity of a real estate broker or salesperson; 743
(b) Such equivalent experience as is defined by rules 745
adopted by the commission. 746
(6)(a) If licensed as a real estate salesperson prior to 749
January 1, 1990 2001, successfully has completed at an
18
institution of higher education all of the following: 751
(i) Thirty hours of classroom instruction in real estate 753
practice; 754
(ii) Thirty hours of classroom instruction that includes 756
the subjects of Ohio real estate law, municipal, state, and 757
federal civil rights law, new case law on housing discrimination, 758
desegregation issues, and methods of eliminating the effects of 759
prior discrimination. If feasible, the classroom instruction in 760
Ohio real estate law shall be taught by a member of the faculty 761
of an accredited law school. If feasible, the classroom 762
instruction in municipal, state, and federal civil rights law, 763
new case law on housing discrimination, desegregation issues, and 764
methods of eliminating the effects of prior discrimination shall 765
be taught by a staff member of the Ohio civil rights commission 766
who is knowledgeable with respect to those subjects. The 767
requirements of this division do not apply to an applicant who is 768
admitted to practice before the supreme court. 769
(iii) Thirty hours of classroom instruction in real estate 771
appraisal; 772
(iv) Thirty hours of classroom instruction in real estate 774
finance; 775
(v) Three quarter hours, or its equivalent in semester 777
hours, in financial management; 778
(vi) Three quarter hours, or its equivalent in semester 780
hours, in human resource or personnel management; 781
(vii) Three quarter hours, or its equivalent in semester 783
hours, in applied business economics; 784
(viii) Three quarter hours, or its equivalent in semester 786
hours, in business law. 787
(b) IF LICENSED AS A REAL ESTATE SALESPERSON ON OR AFTER 789
JANUARY 1, 2001, SUCCESSFULLY HAS COMPLETED AT AN INSTITUTION OF 791
HIGHER EDUCATION ALL OF THE FOLLOWING: 792
(i) FORTY HOURS OF CLASSROOM INSTRUCTION IN REAL ESTATE 794
PRACTICE; 795
19
(ii) FORTY HOURS OF CLASSROOM INSTRUCTION THAT INCLUDES 797
THE SUBJECTS OF OHIO REAL ESTATE LAW, MUNICIPAL, STATE, AND 798
FEDERAL CIVIL RIGHTS LAW, NEW CASE LAW ON HOUSING DISCRIMINATION, 799
DESEGREGATION ISSUES, AND METHODS OF ELIMINATING THE EFFECTS OF 801
PRIOR DISCRIMINATION. IF FEASIBLE, THE CLASSROOM INSTRUCTION IN 802
OHIO REAL ESTATE LAW SHALL BE TAUGHT BY A MEMBER OF THE FACULTY 803
OF AN ACCREDITED LAW SCHOOL. IF FEASIBLE, THE CLASSROOM 804
INSTRUCTION IN MUNICIPAL, STATE, AND FEDERAL CIVIL RIGHTS LAW, 805
NEW CASE LAW ON HOUSING DISCRIMINATION, DESEGREGATION ISSUES, AND 806
METHODS OF ELIMINATING THE EFFECTS OF PRIOR DISCRIMINATION SHALL 807
BE TAUGHT BY A STAFF MEMBER OF THE OHIO CIVIL RIGHTS COMMISSION 808
WHO IS KNOWLEDGEABLE WITH RESPECT TO THOSE SUBJECTS. THE 809
REQUIREMENTS OF THIS DIVISION DO NOT APPLY TO AN APPLICANT WHO IS 811
ADMITTED TO PRACTICE BEFORE THE SUPREME COURT.
(iii) TWENTY HOURS OF CLASSROOM INSTRUCTION IN REAL ESTATE 813
APPRAISAL; 814
(iv) TWENTY HOURS OF CLASSROOM INSTRUCTION IN REAL ESTATE 816
FINANCE; 817
(v) THE TRAINING IN THE AMOUNT OF HOURS SPECIFIED UNDER 819
DIVISION (B)(6)(a)(v), (vi), (vii), AND (viii) OF THIS SECTION. 822
(c) Division (B)(6)(a) OR (b) of this section does not 825
apply to any applicant who holds a valid real estate 826
salesperson's license issued prior to January 2, 1972 827
salesperson's. Divisions (B)(6)(a)(v), (vi), (vii), and (viii) 828
OR DIVISION (B)(6)(b)(v) of this section do not apply to any 830
applicant who holds a valid real estate salesperson's license 831
issued prior to January 3, 1984.
(7) If licensed as a real estate salesperson on or after 834
January 3, 1984, satisfactorily has completed a minimum of two
years of post-secondary education, or its equivalent in semester 835
or quarter hours, at an institution of higher education, and has 836
fulfilled the requirements of division (B)(6)(a) OR (b) of this 838
section. The requirements of division (B)(6)(a) OR (b) of this 839
section may be included in the two years of post-secondary 841
20
education, or its equivalent in semester or quarter hours, that 842
is required by this division. 843
(C) Each applicant for a broker's license shall be 845
examined in the principles of real estate practice, Ohio real 846
estate law, and financing and appraisal, and as to the duties of 847
real estate brokers and real estate salespersons, the applicant's 849
knowledge of real estate transactions and instruments relating to
them, and the canons of business ethics pertaining to them. The 850
commission from time to time shall promulgate such canons and 851
cause them to be published in printed form. 852
salesperson's 854
(D) Examinations shall be given entirely in writing, 856
except that they shall be administered with reasonable 857
accommodations in accordance with the requirements of the 859
"Americans with Disabilities Act of 1990," 104 Stat. 327, 42 860
U.S.C. 12101. The contents of an examination shall be consistent 862
with the requirements of division (B)(6)(a) of this section and 863
with the other specific requirements of this section. An 864
applicant who has completed the requirements of division 865
(B)(6)(a) of this section at the time of application may SHALL be 866
examined at the next regularly scheduled examination NO LATER 867
THAN TWELVE MONTHS after the applicant is notified of admission 869
to the examination.
(E) The superintendent may waive the requirement of 871
examination in the case of an application from a nonresident real 872
estate broker of a state having similar requirements and under 873
the laws of which similar recognition is extended to licensed 874
real estate brokers and real estate salespersons of this state. 876
(F) There shall be no limit placed on the number of times 878
an applicant may retake the examination. 879
(G) The superintendent in the superintendent's discretion 881
may waive the requirement of examination if the applicant has 883
been licensed as a real estate broker by the superintendent or 884
commission at some time during the two-year period immediately 885
21
preceding the date of the current application. 886
(H)(1) Each NO LATER THAN TWELVE MONTHS AFTER THE DATE OF 888
ISSUE OF A REAL ESTATE BROKER'S LICENSE TO A licensee 889
successfully, THE LICENSEE shall complete, SUBMIT PROOF 892
SATISFACTORY TO THE SUPERINTENDENT, ON FORMS MADE AVAILABLE BY 893
THE SUPERINTENDENT, OF THE COMPLETION OF TEN HOURS OF CLASSROOM 894
INSTRUCTION IN REAL ESTATE BROKERAGE at an institution of higher 897
education or any other institution that is approved by the 898
commission, ten hours of classroom instruction in real estate
brokerage. That instruction shall include, but not be limited 899
to, current issues in managing a real estate company or office. 900
Upon completion of the instruction, the licensee shall cause to 901
be filed with the superintendent a certificate from the 902
institution showing that the licensee successfully has completed 904
the requirements of this division in accordance with the
appropriate time period, as follows: 905
(a) Persons licensed on or after January 1, 1990, but 907
before January 1, 2001, shall submit proof of successful 909
completion of instruction to the superintendent within twelve 910
months after the date of issuance of the salesperson's license; 911
(b) Persons licensed on or after January 1, 2001, shall 913
submit proof of successful completion of instruction to the 914
superintendent on or before the date the licensee's first 915
continuing education requirement, after licensure as a 916
salesperson, must be met under section 4735.141 of the Revised
Code.
If the instruction REQUIRED PROOF OF COMPLETION is not 918
successfully completed SUBMITTED TO THE SUPERINTENDENT within the 920
time period prescribed by this division TWELVE MONTHS OF THE DATE 921
A LICENSE IS ISSUED UNDER THIS SECTION, the license of the real 922
estate broker is suspended automatically without the taking of 923
any action by the commission. The broker then shall have one 924
year TWELVE MONTHS after the date of the suspension of the 926
broker's license to successfully complete the instruction 927
22
required under this division, and the broker's license shall not 928
be reinstated REACTIVATED by the superintendent until it is 929
established, to the satisfaction of the superintendent, that the 930
requirements of this division have been met. A LICENSEE'S 931
LICENSE IS AUTOMATICALLY REVOKED IF THE LICENSEE FAILS TO 932
COMPLETE THE EDUCATION REQUIREMENTS SPECIFIED UNDER DIVISION 933
(G)(1) OF THIS SECTION WITHIN TWELVE MONTHS OF THE DATE THE 934
LICENSE IS SUSPENDED.
(2) If the license of a real estate broker is suspended 936
pursuant to division (H)(G)(1) of this section, the license of a 938
real estate salesperson associated with that broker 939
correspondingly is suspended pursuant to division (B) of section 940
4735.20 of the Revised Code. However, the suspended license of 941
the associated real estate salesperson shall be reactivated and 942
no fee shall be charged or collected for that reactivation if all 943
of the following occur: 944
(a) That broker subsequently submits satisfactory proof to 946
the superintendent that the broker has complied with the 947
requirements of division (H)(G)(1) of this section and requests 949
that the broker's license as a real estate broker be reactivated; 951
(b) The superintendent then reactivates the broker's 954
license as a real estate broker;
(c) The associated real estate salesperson intends to 956
continue to be associated with that broker and otherwise is in 957
compliance with this chapter. 958
Sec. 4735.08. The superintendent of real estate shall 967
issue a real estate broker's license when he THE SUPERINTENDENT 968
is satisfied that: 969
(A) An applicant who is not a partnership, association, 971
LIMITED LIABILITY COMPANY, LIMITED LIABILITY PARTNERSHIP, or 972
corporation satisfies one of the following: 973
(1) Has received a grade of seventy-five per cent or 975
better PASSING SCORE on EACH PORTION OF the real estate broker's 977
examination administered under the supervision of the 978
23
superintendent AS DETERMINED BY RULE BY THE REAL ESTATE 979
COMMISSION;
(2) Is qualified to be licensed without examination as a 981
nonresident real estate broker, under division (E) of section 982
4735.07 of the Revised Code; 983
(3) Is qualified, as determined in the discretion of the 985
superintendent, to be licensed without examination as one who was 986
licensed as a real estate broker at some time during the two-year 987
period immediately preceding the date of the current application, 988
under division (G) of section 4735.07 of the Revised Code. 989
(B) All the members or officers who are authorized to 991
perform the functions of a real estate broker as the agents of an 992
applicant that is a partnership, association, LIMITED LIABILITY 993
COMPANY, LIMITED LIABILITY PARTNERSHIP, or corporation, are 994
licensed themselves as real estate brokers under this chapter. 995
Sec. 4735.09. (A) Application for a license as a real 1,004
estate salesperson shall be made in writing to the superintendent 1,006
of real estate on forms furnished by the superintendent and 1,007
signed by the applicant. The application shall be in the form 1,010
prescribed by the superintendent and shall contain such
information as is required by this chapter and the rules of the 1,011
Ohio real estate commission. The application shall be 1,012
accompanied by a recent photograph of the applicant and the 1,013
recommendation of the real estate broker with whom the applicant 1,015
is associated or with whom the applicant intends to be 1,016
associated, certifying that the applicant is honest, truthful, 1,017
and of good reputation, has not been convicted of a felony or a 1,018
crime involving moral turpitude, and has not been finally 1,019
adjudged by a court to have violated any municipal, state, or 1,020
federal civil rights laws relevant to the protection of 1,021
purchasers or sellers of real estate, which conviction or 1,022
adjudication the applicant has not disclosed to the 1,023
superintendent, and recommending that the applicant be admitted 1,024
to the REAL ESTATE SALESPERSON examination for real estate 1,025
24
salesman. 1,026
(B) A fee of forty-nine dollars shall accompany the 1,029
application, which fee shall include the license if it is issued. 1,030
The application fee shall be retained by the superintendent if 1,031
the applicant is admitted to the examination for the license or 1,032
the examination requirement is waived, but, if an applicant is 1,033
not so admitted and a waiver is not involved, one-half of the fee 1,034
shall be retained by the superintendent to cover the expenses of 1,035
processing the application and the other one-half shall be 1,036
returned to the applicant. A fee of forty-nine dollars shall be 1,038
charged by the superintendent for each successive application 1,039
made by the applicant. Four dollars of each fee shall be 1,041
credited to the real estate education and research fund. 1,042
(C) There shall be no limit placed on the number of times 1,044
an applicant may retake the examination. 1,045
(D) The superintendent, with the consent of the 1,047
commission, may enter into an agreement with a recognized 1,048
national testing service to administer the real estate 1,049
salesperson's examination under the superintendent's supervision 1,051
and control, consistent with the requirements of this chapter as 1,052
to the contents of the examination. 1,053
If the superintendent, with the consent of the commission, 1,055
enters into an agreement with a national testing service to 1,056
administer the real estate salesperson's examination, the 1,058
superintendent may require an applicant to pay the testing
service's examination fee directly to the testing service. If 1,060
the superintendent requires the payment of the examination fee 1,061
directly to the testing service, each applicant shall submit to 1,063
the superintendent a processing fee in an amount determined by
the Ohio real estate commission pursuant to division (A)(1) of 1,064
section 4735.10 of the Revised Code. 1,065
(E) The superintendent shall issue a real estate 1,067
salesperson's license when satisfied that the applicant has 1,069
received a grade of seventy-five per cent or better PASSING SCORE 1,070
25
on EACH PORTION OF the salesperson's examination AS DETERMINED BY 1,072
RULE BY THE REAL ESTATE COMMISSION, except that the 1,073
superintendent may waive the requirement of examination if the 1,074
applicant is a licensed real estate salesperson in another state 1,076
and that state does both of the following: 1,077
(1) It applies licensing requirements similar to those 1,079
applied in this state as determined by the superintendent. 1,080
(2) It extends similar reciprocity to licensed real estate 1,082
salespersons in this state. 1,083
(F) No applicant for a salesperson's license shall take 1,085
the salesperson's examination who has not established to the 1,087
satisfaction of the superintendent that the applicant: 1,088
(1) Is honest, truthful, and of good reputation; 1,090
(2)(a) Has not been convicted of a felony or crime of 1,092
moral turpitude or, if the applicant has been so convicted, the 1,094
superintendent has disregarded the conviction because the 1,095
applicant has proven to the superintendent, by a preponderance of 1,096
the evidence, that the applicant's activities and employment 1,097
record since the conviction show that the applicant is honest, 1,099
truthful, and of good reputation, and there is no basis in fact 1,101
for believing that the applicant again will violate the laws 1,102
involved;
(b) Has not been finally adjudged by a court to have 1,104
violated any municipal, state, or federal civil rights laws 1,105
relevant to the protection of purchasers or sellers of real 1,106
estate or, if the applicant has been so adjudged, at least two 1,108
years have passed since the court decision and the superintendent 1,109
has disregarded the adjudication because the applicant has 1,110
proven, by a preponderance of the evidence, that the applicant is 1,111
honest, truthful, and of good reputation, and there is no basis 1,112
in fact for believing that the applicant again will violate the 1,114
laws involved.
(3) Has not, during any period in which the applicant was 1,116
licensed under this chapter, violated any provision of, or any 1,117
26
rule adopted pursuant to this chapter, or, if the applicant has 1,118
violated such provision or rule, has established to the 1,119
satisfaction of the superintendent that the applicant will not 1,120
again violate such provision or rule; 1,121
(4) Is at least eighteen years of age; 1,123
(5) If born after the year 1950, has a high school diploma 1,125
or its equivalent as recognized by the state department of 1,126
education; 1,127
(6)(a) Has IF BEGINNING INSTRUCTION, AS DETERMINED BY THE 1,129
SUPERINTENDENT, PRIOR TO THE EFFECTIVE DATE OF THIS AMENDMENT, 1,130
HAS successfully completed at an institution of higher education 1,132
all of the following:
(i) Thirty hours of classroom instruction in real estate 1,134
practice; 1,135
(ii) Thirty hours of classroom instruction that includes 1,137
the subjects of Ohio real estate law, municipal, state, and 1,138
federal civil rights law, new case law on housing discrimination, 1,139
desegregation issues, and methods of eliminating the effects of 1,140
prior discrimination. If feasible, the classroom instruction in 1,141
Ohio real estate law shall be taught by a member of the faculty 1,142
of an accredited law school. If feasible, the classroom 1,143
instruction in municipal, state, and federal civil rights law, 1,144
new case law on housing discrimination, desegregation issues, and 1,145
methods of eliminating the effects of prior discrimination shall 1,146
be taught by a staff member of the Ohio civil rights commission 1,147
who is knowledgeable with respect to those subjects. The 1,148
requirements of this division do not apply to an applicant who is 1,149
admitted to practice before the supreme court. 1,150
(iii) Thirty hours of classroom instruction in real estate 1,152
appraisal; 1,153
(iv) Thirty hours of classroom instruction in real estate 1,155
finance. 1,156
(b) Any person who has not been licensed as a real estate 1,158
salesperson or broker within a four-year period immediately 1,160
27
preceding the person's current application for the salesperson's 1,161
examination shall have successfully completed the classroom 1,162
instruction required by division (F)(6)(a) of this section within 1,163
a ten-year period immediately preceding the person's current 1,164
application for the salesperson's examination. 1,165
(7) IF BEGINNING INSTRUCTION, AS DEFINED BY THE 1,167
SUPERINTENDENT, SUBSEQUENT TO THE EFFECTIVE DATE OF THIS 1,168
AMENDMENT, HAS SUCCESSFULLY COMPLETED AT AN INSTITUTION OF HIGHER 1,169
EDUCATION ALL OF THE FOLLOWING: 1,170
(i) FORTY HOURS OF CLASSROOM INSTRUCTION IN REAL ESTATE 1,172
PRACTICE; 1,173
(ii) FORTY HOURS OF CLASSROOM INSTRUCTION THAT INCLUDES 1,175
THE SUBJECTS OF OHIO REAL ESTATE LAW, MUNICIPAL, STATE, AND 1,176
FEDERAL CIVIL RIGHTS LAW, NEW CASE LAW ON HOUSING DISCRIMINATION, 1,177
DESEGREGATION ISSUES, AND METHODS OF ELIMINATING THE EFFECTS OF 1,179
PRIOR DISCRIMINATION. IF FEASIBLE, THE CLASSROOM INSTRUCTION IN 1,180
OHIO REAL ESTATE LAW SHALL BE TAUGHT BY A MEMBER OF THE FACULTY 1,181
OF AN ACCREDITED LAW SCHOOL. IF FEASIBLE, THE CLASSROOM 1,182
INSTRUCTION IN MUNICIPAL, STATE, AND FEDERAL CIVIL RIGHTS LAW, 1,183
NEW CASE LAW ON HOUSING DISCRIMINATION, DESEGREGATION ISSUES, AND 1,184
METHODS OF ELIMINATING THE EFFECTS OF PRIOR DISCRIMINATION SHALL 1,185
BE TAUGHT BY A STAFF MEMBER OF THE OHIO CIVIL RIGHTS COMMISSION 1,186
WHO IS KNOWLEDGEABLE WITH RESPECT TO THOSE SUBJECTS. THE 1,187
REQUIREMENTS OF THIS DIVISION DO NOT APPLY TO AN APPLICANT WHO IS 1,188
ADMITTED TO PRACTICE BEFORE THE SUPREME COURT. 1,189
(iii) TWENTY HOURS OF CLASSROOM INSTRUCTION IN REAL ESTATE 1,191
APPRAISAL; 1,192
(iv) TWENTY HOURS OF CLASSROOM INSTRUCTION IN REAL ESTATE 1,194
FINANCE. 1,195
(G) Each NO LATER THAN TWELVE MONTHS AFTER THE DATE OF 1,197
ISSUE OF A REAL ESTATE SALESPERSON LICENSE TO A LICENSEE, THE 1,198
licensee shall submit proof SATISFACTORY TO THE SUPERINTENDENT, 1,199
ON FORMS MADE AVAILABLE BY THE SUPERINTENDENT, of successful 1,200
completion, at an institution of higher education or any other 1,202
28
institution approved by the commission, of ten hours of classroom 1,203
instruction in real estate courses that cover current issues 1,204
regarding consumers, real estate practice, ethics, and real 1,205
estate law. Upon completion of the instruction, the licensee 1,206
shall cause to have filed with the superintendent a certificate 1,207
from the institution showing that the licensee successfully has 1,208
completed the requirements of this division in accordance with 1,211
the appropriate time period, as follows: 1,212
(1) Persons licensed on or after January 1, 1990, but 1,214
before January 1, 2001, shall submit proof of successful 1,215
completion of the instruction to the superintendent within twelve 1,217
months after the date of issuance of the real estate broker's 1,218
license;
(2) Persons licensed on or after January 1, 2001, shall 1,220
submit proof of successful completion of the instruction to the 1,221
superintendent on or before the licensee's first continuing 1,223
education requirement, after licensure as a broker, must be met 1,224
under section 4735.141 of the Revised Code. 1,225
If proof of successful completion of the required 1,227
instruction is not submitted within the time period prescribed by 1,228
this division TWELVE MONTHS OF THE DATE A LICENSE IS ISSUED UNDER 1,229
THIS SECTION, the licensee's license is suspended automatically 1,231
without the taking of any action by the commission. The 1,232
superintendent immediately shall notify the broker with whom such 1,233
salesperson is associated of the suspension of the salesperson's 1,235
license. A salesperson whose license has been suspended under 1,236
this division shall have one year TWELVE MONTHS after the date of 1,237
the suspension of the salesperson's license to submit proof of 1,238
successful completion of the instruction required under this 1,241
division. No such license shall be reactivated by the 1,243
superintendent until it is established, to the satisfaction of 1,244
the superintendent, that the requirements of this division have 1,245
been met A LICENSEE'S LICENSE IS REVOKED AUTOMATICALLY WHEN THE 1,246
LICENSEE FAILS TO SUBMIT THE REQUIRED PROOF OF COMPLETION OF THE 1,247
29
EDUCATION REQUIREMENTS UNDER DIVISION (G) OF THIS SECTION WITHIN 1,248
TWELVE MONTHS OF THE DATE THE LICENSE IS SUSPENDED. 1,249
(H) Examinations shall be given entirely in writing, 1,251
except that they shall be administered with reasonable 1,252
accommodations in accordance with the requirements of the 1,254
"Americans with Disabilities Act of 1990," 104 Stat. 327, 42 1,255
U.S.C. 12101. The contents of an examination shall be consistent 1,258
with the classroom instructional requirements of division 1,259
(F)(6)(a) of this section. All persons whose applications are 1,260
pending shall be notified by mail at least sixty days prior to 1,261
such examination, except that an AN applicant who has completed 1,262
the classroom instructional requirements of division (F)(6)(a) of 1,263
this section at the time of application may SHALL be examined at 1,265
the next regularly scheduled examination NO LATER THAN TWELVE 1,266
MONTHS after the applicant is notified of the applicant's 1,267
admission to the examination. Nothing in this section shall be 1,270
construed to prevent an applicant from completing, in the 1,271
discretion of the superintendent, the classroom instructional 1,272
requirements of division (F)(6)(a) of this section concurrently 1,273
with the processing of the applicant's application for 1,274
examination.
Sec. 4735.10. (A)(1) The Ohio real estate commission may 1,283
adopt reasonable rules in accordance with Chapter 119. of the 1,284
Revised Code, necessary for implementing the provisions of this 1,285
chapter relating, but not limited to, the following: 1,286
(a) The form and manner of filing applications for 1,288
license; 1,289
(b) Times and form of examination for license; 1,291
(c) Placing an existing broker's license in escrow ON 1,293
DEPOSIT for an indefinite period upon good cause shown. 1,295
(2) The commission shall adopt reasonable rules in 1,297
accordance with Chapter 119. of the Revised Code, for 1,298
implementing the provisions of this chapter relating to the 1,299
following:
30
(a) The issuance, renewal, suspension, revocation of 1,301
licenses, other sanctions that may be imposed for violations of 1,302
this chapter, and the conduct of hearings related to these 1,304
actions, AND THE PROCESS OF REACTIVATING A LICENSE; 1,305
(b) Standards for the approval of courses of study 1,307
required for licenses, or offered in preparation for license 1,308
examinations, or required as continuing education for licenses. 1,309
The rules shall specify that no standard for the approval of a 1,311
course of study required as continuing education for licensees
shall require that licensees pass an examination as a condition 1,312
for the successful completion of a continuing education 1,313
requirement. A person providing a continuing education course 1,314
may administer examinations for the purpose of evaluating the 1,315
effectiveness of the course.
(c) Guidelines to ensure that continuing education classes 1,318
are open to all persons licensed under this chapter. The rules 1,319
shall specify that an organization that sponsors a continuing 1,320
education class may offer its members a reasonable reduction in 1,321
the fees charged for the class. 1,322
(d) Requirements for trust accounts and property 1,324
management accounts. The rules shall specify that: 1,325
(i) Brokerages engaged in the management of property for 1,328
another may, pursuant to a written contract with the property 1,329
owner, exercise signatory authority for withdrawals from property 1,330
management accounts maintained in the name of the property owner. 1,331
The exercise of authority for withdrawals does not constitute a 1,332
violation of any provision of division (A) of section 4735.18 of 1,333
the Revised Code. 1,335
(ii) The interest earned on property management trust 1,338
accounts maintained in the name of the property owner or the
broker shall be payable to the property owner unless otherwise 1,339
specified in a written contract. 1,340
(e) Annual certificates of continuation in business and 1,342
filing deadlines based on a staggered system of renewal with 1,343
31
deadlines distributed throughout the year. 1,344
(B) The commission shall adopt rules in accordance with 1,346
Chapter 119. of the Revised Code establishing standards and 1,347
guidelines with which the superintendent of real estate shall 1,348
comply in the exercise of the following powers: 1,349
(1) Appointment and recommendation of ancillary trustees 1,351
under section 4735.05 of the Revised Code; 1,352
(2) Rejection of names proposed to be used by 1,354
partnerships, associations, and corporations, under division (A) 1,355
of section 4735.06 of the Revised Code; 1,356
(3) Acceptance and rejection of applications to take the 1,358
broker and salesperson examinations and licensure, with waiver of 1,360
examination, under sections 4735.07 and 4735.09 of the Revised
Code; 1,361
(4) Approval of applications of brokers to place their 1,363
licenses on deposit and to become salespersons under section 1,365
4735.13 of the Revised Code;
(5) Appointment of hearing examiners under section 119.09 1,367
of the Revised Code; 1,368
(6) Acceptance and rejection of applications to take the 1,370
foreign real estate dealer and salesperson examinations and 1,371
licensure, with waiver of examination, under sections 4735.27 and 1,372
4735.28 of the Revised Code; 1,373
(7) Qualification of foreign real estate under section 1,375
4735.25 of the Revised Code. 1,376
If at any time there is no rule in effect establishing a 1,378
guideline or standard required by this division, the 1,379
superintendent shall adopt a rule in accordance with Chapter 119. 1,380
of the Revised Code for such purpose. 1,381
(C) The commission or superintendent may hear testimony in 1,383
matters relating to the duties imposed upon them, and the 1,384
president of the commission and superintendent may administer 1,385
oaths. The commission or superintendent may require other proof 1,386
of the honesty, truthfulness, and good reputation of any person 1,387
32
named in an application for a real estate broker's or real estate 1,389
salesperson's license before admitting the applicant to the 1,390
examination or issuing a license. 1,391
Sec. 4735.11. The form and size of licenses issued under 1,400
this chapter shall be prescribed by the Ohio real estate 1,401
commission. Each BROKER'S license shall show the name and 1,403
address of the licensee, and in the case of partnership,
association, LIMITED LIABILITY COMPANY, LIMITED LIABILITY 1,404
PARTNERSHIP, and corporation licenses, the name and address of 1,405
each of the members or officers of the partnership, association, 1,406
LIMITED LIABILITY COMPANY, LIMITED LIABILITY PARTNERSHIP, or 1,407
corporation. A real estate salesman's SALESPERSON'S license or a 1,408
foreign real estate salesman's SALESPERSON'S license shall show 1,409
the name of the real estate broker or foreign real estate dealer 1,410
with whom he THE SALESPERSON is or is to be associated. Each 1,411
license shall be issued under the seal prescribed in section 1,413
121.20 of the Revised Code and be signed by the president of the 1,414
commission and the superintendent of real estate.
Sec. 4735.12. (A) The real estate recovery fund is hereby 1,423
created in the state treasury, to be administered by the 1,424
superintendent of real estate. Amounts collected by the 1,425
superintendent as prescribed in this section and interest earned 1,426
on the assets of the fund shall be credited by the treasurer of 1,427
state to the fund. The amount of money in the fund shall be 1,428
ascertained by the superintendent as of the first day of October 1,429
JULY of each year. If that amount is less than one million 1,431
dollars, the director of budget and management may, upon the 1,432
request of the superintendent, transfer from the real estate 1,433
operating fund to the real estate recovery fund such sum as will 1,434
bring the real estate recovery fund to that amount. 1,435
THE COMMISSION, IN ACCORDANCE WITH RULES ADOPTED UNDER 1,437
DIVISION (A)(2)(f) OF SECTION 4735.10 OF THE REVISED CODE, SHALL 1,438
IMPOSE A SPECIAL ASSESSMENT NOT TO EXCEED TEN DOLLARS ANNUALLY ON 1,439
EACH LICENSEE FILING A CONTINUATION OF BUSINESS CERTIFICATE UNDER 1,441
33
SECTION 4735.14 OF THE REVISED CODE IF THE AMOUNT AVAILABLE IN
THE FUND IS LESS THAN ONE MILLION DOLLARS ON THE FIRST DAY OF 1,442
JULY PRECEDING THAT FILING. THE COMMISSION MAY IMPOSE A SPECIAL 1,443
ASSESSMENT NOT TO EXCEED TEN DOLLARS ANNUALLY IF THE AMOUNT 1,444
AVAILABLE IN THE FUND IS GREATER THAN ONE MILLION DOLLARS, BUT 1,445
LESS THAN TWO MILLION DOLLARS ON THE FIRST DAY OF JULY PRECEDING 1,446
THAT FILING. THE COMMISSION SHALL NOT IMPOSE A SPECIAL 1,447
ASSESSMENT IF THE AMOUNT AVAILABLE IN THE FUND EXCEEDS TWO 1,448
MILLION DOLLARS ON THE FIRST DAY OF JULY PRECEDING THAT FILING. 1,449
(B)(1) Any person who obtains a final judgment in any 1,451
court of competent jurisdiction against any broker or salesperson 1,452
licensed under this chapter, on the grounds of conduct that is in 1,453
violation of this chapter or the rules adopted under it, and that 1,454
is associated with an act or transaction of a broker or 1,455
salesperson THAT ONLY A LICENSED REAL ESTATE BROKER OR LICENSED 1,456
REAL ESTATE SALESPERSON IS AUTHORIZED TO PERFORM AS specified or 1,457
comprehended in division (A) or (C) of section 4735.01 of the 1,459
Revised Code, may file a verified application, as described in 1,460
division (B)(3) of this section, in any court of common pleas for 1,462
an order directing payment out of the real estate recovery fund 1,463
of the portion of the judgment that remains unpaid and that 1,464
represents the actual and direct loss sustained by the applicant. 1,465
(2) Punitive damages, ATTORNEY'S FEES, and interest on a 1,467
judgment are not recoverable from the fund. In the discretion of 1,469
the superintendent of real estate, attorney's fees and court 1,470
costs may be recovered from the fund, and, if the superintendent 1,471
authorizes the recovery of attorney's fees or court costs, the 1,472
order of the court of common pleas then may direct their payment 1,473
from the fund. 1,474
(3) The application shall specify the nature of the act or 1,476
transaction upon which the underlying judgment was based, the 1,477
activities of the applicant in pursuit of remedies available 1,478
under law for the collection of judgments, and the actual and 1,479
direct losses, attorney's fees, and the court costs sustained or 1,481
34
incurred by the applicant. The applicant shall attach to the
application a copy of each pleading and order in the underlying 1,482
court action. 1,483
(4) The court shall order the superintendent to make such 1,485
payments out of the fund when the person seeking the order has 1,486
shown all of the following: 1,487
(a) The person has obtained a judgment, as provided in 1,489
this division;
(b) All appeals from the judgment have been exhausted and 1,491
the person has given notice to the superintendent, as required by 1,493
division (C) of this section;
(c) The person is not a spouse of the judgment debtor, or 1,495
the personal representative of such spouse; 1,496
(d) The person has diligently pursued the person's 1,499
remedies against all the judgment debtors and all other persons 1,500
liable to the person in the transaction for which the person 1,501
seeks recovery from the fund; 1,502
(e) The person is making the person's application not more 1,504
than one year after termination of all proceedings, including 1,505
appeals, in connection with the judgment. 1,506
(5) Divisions (B)(1) to (4) of this section do not apply 1,508
to any of the following: 1,509
(a) Actions arising from property management accounts 1,511
maintained in the name of the property owner; 1,512
(b) A bonding company when it is not a principal in a real 1,514
estate transaction; 1,515
(c) A person in an action for the payment of a commission 1,518
or fee for the performance of an act or transaction specified or 1,519
comprehended in division (A) or (C) of section 4735.01 of the
Revised Code; 1,520
(d) Acts that occurred on or before March 4, 1975 LOSSES 1,522
INCURRED BY INVESTORS IN REAL ESTATE IF THE APPLICANT AND THE 1,523
LICENSEE ARE PRINCIPALS IN THE INVESTMENT. 1,524
(C) A person who applies to a court of common pleas for an 1,526
35
order directing payment out of the fund shall file notice of the 1,527
application with the superintendent. The superintendent may 1,528
defend any such action on behalf of the fund and shall have 1,529
recourse to all appropriate means of defense and review, 1,530
including examination of witnesses, VERIFICATION OF ACTUAL AND 1,531
DIRECT LOSSES, AND CHALLENGES TO THE UNDERLYING JUDGMENT REQUIRED 1,532
IN DIVISION (B)(4)(a) OF THIS SECTION TO DETERMINE WHETHER THE 1,534
UNDERLYING JUDGMENT IS BASED ON ACTIVITY ONLY A LICENSED BROKER
OR LICENSED SALESPERSON IS PERMITTED TO PERFORM. The 1,535
superintendent may move the court at any time to dismiss the 1,536
application when it appears there are no triable issues and the 1,537
application is without merit. The motion may be supported by 1,538
affidavit of any person having knowledge of the facts and may be 1,539
made on the basis that the application, including the judgment 1,540
referred to in it, does not form the basis for a meritorious 1,541
recovery claim; provided, that the superintendent shall give 1,542
written notice to the applicant at least ten days before such 1,543
motion. The superintendent may, subject to court approval, 1,544
compromise a claim based upon the application of an aggrieved 1,545
party. The superintendent shall not be bound by any prior 1,546
compromise or stipulation of the judgment debtor.
(D) Notwithstanding any other provision of this section, 1,548
the liability of the fund shall not exceed forty thousand dollars 1,549
for any one licensee. If a licensee LICENSEE'S LICENSE is 1,550
reinstated REACTIVATED as provided in division (E) of this 1,552
section, the liability of the fund for the licensee under this 1,553
section shall again be forty thousand dollars, but only for 1,554
transactions which THAT occur subsequent to the time of
reinstatement REACTIVATION. 1,555
If the forty-thousand-dollar liability of the fund is 1,557
insufficient to pay in full the valid claims of all aggrieved 1,558
persons by whom claims have been filed against any one licensee, 1,559
the forty thousand dollars shall be distributed among them in the 1,561
ratio that their respective claims bear to the aggregate of valid 1,562
36
claims or in such other manner as the court finds equitable. 1,563
Distribution of moneys shall be among the persons entitled to 1,564
share in it, without regard to the order of priority in which 1,565
their respective judgments may have been obtained or their claims 1,566
have been filed. Upon petition of the superintendent, the court 1,567
may require all claimants and prospective claimants against one 1,568
licensee to be joined in one action, to the end that the 1,569
respective rights of all such claimants to the fund may be 1,570
equitably adjudicated and settled.
(E) If the superintendent pays from the fund any amount in 1,572
settlement of a claim or toward satisfaction of a judgment 1,573
against a licensed broker or salesperson, the license of the 1,575
broker or salesperson shall be automatically suspended upon the
date of payment from the fund. No such broker or salesperson THE 1,576
SUPERINTENDENT shall be granted reinstatement NOT REACTIVATE THE 1,578
SUSPENDED LICENSE OF THAT BROKER OR SALESPERSON until the broker 1,579
or salesperson has repaid in full, plus interest per annum at the 1,581
rate specified in division (A) of section 1343.03 of the Revised 1,582
Code, the amount paid from the fund on his THE BROKER'S OR 1,583
SALESPERSON'S account. A discharge in bankruptcy does not 1,584
relieve a person from the suspension and requirements for
reinstatement REACTIVATION provided in this section UNLESS THE 1,586
UNDERLYING JUDGMENT HAS BEEN INCLUDED IN THE DISCHARGE AND HAS 1,587
NOT BEEN REAFFIRMED BY THE DEBTOR.
(F) Two dollars of each fee collected for a real estate 1,589
broker's license or a real estate salesperson's license, or for 1,592
the renewal of such licenses, may, as determined by the
superintendent, be credited to the fund, if the fund balance does 1,593
not exceed two million dollars. 1,594
If, at any time, the money deposited in the fund is 1,596
insufficient to satisfy any duly authorized claim or portion of a 1,597
claim, the superintendent shall, when sufficient money has been 1,598
deposited in the fund, satisfy such unpaid claims or portions, in 1,599
the order that such claims or portions were originally filed, 1,600
37
plus accumulated interest per annum at the rate specified in 1,601
division (A) of section 1343.03 of the Revised Code. 1,602
(G) When, upon the order of the court, the superintendent 1,604
has paid from the fund any sum to the judgment creditor, the 1,605
superintendent shall be subrogated to all of the rights of the 1,606
judgment creditor to the extent of the amount so paid, and the 1,607
judgment creditor shall assign all the judgment creditor's right, 1,608
title, and interest in the judgment to the superintendent to the 1,609
extent of the amount so paid. Any amount and interest so 1,610
recovered by the superintendent on the judgment shall be 1,611
deposited in the fund.
(H) Nothing contained in this section shall limit the 1,613
authority of the superintendent to take disciplinary action 1,614
against any licensee under other provisions of this chapter; nor 1,615
shall the repayment in full of all obligations to the fund by any 1,616
licensee nullify or modify the effect of any other disciplinary 1,617
proceeding brought pursuant to this chapter. 1,618
(I) The superintendent shall collect from the fund a 1,620
service fee in an amount equivalent to the interest rate 1,621
specified in division (A) of section 1343.03 of the Revised Code 1,622
multiplied by the annual interest earned on the assets of the 1,623
fund, to defray the expenses incurred in the administration of 1,624
the fund. 1,625
Sec. 4735.13. (A) The license of a real estate broker 1,634
shall be prominently displayed in the office or place of business 1,635
of the broker, and no license shall authorize the licensee to do 1,636
business except from the location specified in it. 1,637
(B) The license of each real estate salesman SALESPERSON 1,639
shall be mailed to and remain in the possession of the licensed 1,640
broker with whom he THE SALESPERSON is or is to be associated 1,641
until canceled or until the salesman leaves the broker 1,643
SALESPERSON LEAVES THE BROKERAGE OR IS TERMINATED. The broker 1,644
shall keep each salesman's SALESPERSON'S license in a way that it 1,646
can, and shall on request, be made immediately available for 1,648
38
public inspection at the office or place of business of the 1,649
broker. Except as provided in division (G) of this section, 1,650
immediately upon the SALESPERSON'S LEAVING THE ASSOCIATION OR 1,651
termination of the association of a real estate salesman 1,652
SALESPERSON with the broker, the broker shall return the 1,653
salesman's SALESPERSON'S license to the superintendent of real 1,654
estate for cancellation.
THE FAILURE OF A BROKER TO RETURN THE LICENSE OF A REAL 1,656
ESTATE SALESPERSON WHO LEAVES OR WHO IS TERMINATED WITHIN THREE 1,657
BUSINESS DAYS OF THE RECEIPT OF A WRITTEN REQUEST FROM THE 1,658
SUPERINTENDENT FOR THE RETURN OF THE LICENSE, IS PRIMA FACIE 1,659
EVIDENCE OF MISCONDUCT UNDER DIVISION (A)(6) OF SECTION 4735.18 1,660
OF THE REVISED CODE.
(C) Any licensee who is convicted of a felony or a crime 1,662
involving moral turpitude or of violating any federal, state, or 1,663
municipal civil rights law pertaining to discrimination in 1,664
housing, or any court that issues a finding of an unlawful 1,665
discriminatory practice pertaining to housing accommodations 1,666
described in division (H) of section 4112.02 of the Revised Code 1,667
or that convicts a licensee of a violation of any municipal civil 1,668
rights law pertaining to housing discrimination, shall notify the 1,669
superintendent of the conviction or finding within fifteen days. 1,670
If a licensee fails to notify the superintendent within the 1,671
required time, the superintendent immediately may revoke the 1,672
license of the licensee. 1,673
Any court that convicts a licensee of a violation of any 1,675
municipal civil rights law pertaining to housing discrimination 1,676
also shall notify the Ohio civil rights commission within fifteen 1,677
days of the conviction. 1,678
(D) In case of any change of business location, a broker 1,680
shall give a notice in writing to the superintendent, whereupon 1,681
the superintendent shall issue new licenses for the unexpired 1,682
period without charge. A IF A broker who changes a business 1,684
location without giving the REQUIRED notice and without the 1,685
39
issuance of the RECEIVING new licenses is guilty of misconduct 1,687
THAT ACTION IS PRIMA FACIE EVIDENCE OF MISCONDUCT under division 1,688
(A)(6) of section 4735.18 of the Revised Code. 1,689
(E) If a real estate broker desires to associate himself 1,691
with another real estate broker in the capacity of a real estate 1,692
salesman SALESPERSON, he THE BROKER shall apply to the 1,694
superintendent to deposit his THE BROKER'S real estate broker's 1,695
license with the superintendent and for the issuance of a real 1,696
estate salesman's SALESPERSON'S license. The application shall 1,697
be made on a form prescribed by the superintendent and shall be 1,698
accompanied by the recommendation of the real estate broker with 1,699
whom the applicant intends to become associated, a fee of 1,700
thirteen dollars to cover the expenses of the superintendent in 1,702
holding the applicant's real estate broker's license, and a fee 1,703
of twenty-five dollars for the real estate salesman's 1,704
SALESPERSON'S license. Four dollars of each THE fee shall be 1,706
credited to the real estate education and research fund. If the 1,707
superintendent is satisfied that the applicant is honest, 1,708
truthful, and of good reputation, has not been convicted of a 1,709
felony or a crime involving moral turpitude, and has not been 1,710
finally adjudged by a court to have violated any municipal, 1,711
state, or federal civil rights laws relevant to the protection of 1,712
purchasers or sellers of real estate, and that the association of 1,713
the real estate broker and the applicant will be in the public 1,714
interest, the superintendent shall grant the application and 1,715
issue a real estate salesman's SALESPERSON'S license to him THE 1,716
APPLICANT. Any license so deposited with the superintendent 1,717
shall be subject to this chapter. On or before the first day of 1,718
November of each year, a A broker who intends to deposit his THE 1,720
BROKER'S license with the superintendent, as provided in this 1,721
section, shall give written notice of this fact IN A FORMAT 1,722
PRESCRIBED BY THE SUPERINTENDENT to all salesmen SALESPERSONS 1,724
associated with him THE BROKER NOT LESS THAN SIXTY DAYS PRIOR TO 1,725
APPLYING TO PLACE THE BROKER'S LICENSE ON DEPOSIT.
40
(F) If a real estate broker desires to become a member or 1,727
officer of a partnership, association, LIMITED LIABILITY COMPANY, 1,728
LIMITED LIABILITY PARTNERSHIP, or corporation that is or intends 1,730
to become a licensed real estate broker, he THE BROKER shall 1,731
notify the superintendent of his THE BROKER'S intentions. The 1,732
notice of intention shall be on a form prescribed by the
superintendent and shall be accompanied by a fee of twenty-five 1,734
dollars. Four dollars of the fee shall be credited to the real 1,735
estate education and research fund. 1,736
No real estate broker who is a member or officer of a 1,738
partnership, association, LIMITED LIABILITY COMPANY, LIMITED 1,739
LIABILITY PARTNERSHIP, or corporation that is a licensed real 1,740
estate broker shall perform any acts as a real estate broker 1,741
other than as the agent of the partnership, association, LIMITED 1,742
LIABILITY COMPANY, LIMITED LIABILITY PARTNERSHIP, or corporation, 1,744
and he SUCH BROKER shall not have any real estate salesmen 1,745
SALESPERSONS associated with him THE BROKER. 1,746
(G) If a real estate broker or salesman SALESPERSON enters 1,748
the armed forces, he THE BROKER OR SALESPERSON may place his THE 1,750
BROKER'S OR SALESPERSON'S license on deposit with the Ohio real
estate commission until six months after his discharge from the 1,751
armed services. The licensee shall pay a fee of seven dollars to 1,752
cover the expense of the commission in holding the existing 1,753
license NOT BE REQUIRED TO RENEW THE LICENSE ANNUALLY UNTIL THE 1,754
RENEWAL DATE THAT FOLLOWS THE DATE OF DISCHARGE FROM THE ARMED 1,755
SERVICES. Any license deposited with the commission shall be 1,756
subject to this chapter. Any licensee whose license is on 1,757
deposit under this division and who fails to meet the continuing 1,758
education requirements of section 4735.141 of the Revised Code 1,759
because he THE LICENSEE is in the armed forces shall satisfy the 1,760
commission that he THE LICENSEE has complied with the continuing 1,761
education requirements within twelve months of his THE LICENSEE'S 1,763
discharge. The commission shall notify the licensee of his THE 1,765
LICENSEE'S obligations under section 4735.141 of the Revised Code 1,766
41
at the time he THE LICENSEE applies for release REACTIVATION of 1,767
his THE LICENSEE'S license. 1,768
Sec. 4735.14. (A) Each license issued under this chapter, 1,777
shall be valid without further recommendation or examination 1,778
until canceled, revoked, suspended, or such license expires by 1,780
operation of law.
(B) Each licensed broker, brokerage, or salesperson shall 1,782
file, on or before the date the Ohio real estate commission has 1,784
adopted by rule for that licensee in accordance with division 1,785
(A)(2)(e) of section 4735.10 of the Revised Code, a certificate 1,786
of continuation in business NOTICE OF RENEWAL on a form 1,787
prescribed by the superintendent of real estate. THE LICENSEE 1,788
SHALL INDICATE ON THE FORM WHETHER THE LICENSEE WISHES TO 1,789
MAINTAIN THE LICENSEE'S LICENSE IN AN ACTIVE OR INACTIVE STATUS. 1,790
The certificate of continuation in business NOTICE OF RENEWAL 1,791
shall be mailed by the superintendent to the MOST CURRENT 1,793
personal residence ADDRESS of each broker or salesperson AS FILED 1,794
WITH THE SUPERINTENDENT BY THE LICENSEE and the place of business 1,795
ADDRESS of the brokerage two months prior to the filing deadline. 1,796
(C) The license of any real estate broker, brokerage, or 1,799
salesperson that fails to file a certificate of continuation 1,800
NOTICE OF RENEWAL on or before the filing deadline of each 1,802
ensuing year shall be canceled SUSPENDED. A canceled SUSPENDED 1,804
license may be reactivated within one year TWELVE MONTHS of 1,805
cancellation THE DATE OF SUSPENSION, provided that the renewal 1,806
fee plus a penalty fee of fifty per cent of the renewal fee is 1,808
paid to the superintendent. Failure to reactivate the license as 1,809
provided in this division shall result in revocation of the
license. No person, partnership, association, corporation, 1,810
limited liability company, or limited partnership shall engage in 1,811
any act or acts for which a real estate license is required while 1,812
that entity's license is canceled SUSPENDED or revoked. 1,814
(D) EACH LICENSEE SHALL NOTIFY THE COMMISSION OF A CHANGE 1,816
IN PERSONAL RESIDENCE ADDRESS. A LICENSEE'S FAILURE TO NOTIFY 1,817
42
THE COMMISSION OF A CHANGE IN PERSONAL RESIDENCE ADDRESS DOES NOT 1,818
NEGATE THE REQUIREMENT TO FILE THE LICENSE RENEWAL BY THE 1,819
REQUIRED DEADLINE ESTABLISHED BY THE COMMISSION BY RULE UNDER 1,820
DIVISION (A)(2)(e) OF SECTION 4735.10 OF THE REVISED CODE. 1,822
(E) THE SUPERINTENDENT SHALL NOT RENEW A LICENSE IF THE 1,824
LICENSEE IS NOT IN COMPLIANCE WITH THIS CHAPTER. 1,826
Sec. 4735.141. (A) Except as otherwise provided in this 1,835
division, each person licensed under section 4735.07 or 4735.09 1,836
of the Revised Code shall submit proof satisfactory to the 1,837
superintendent of real estate that the licensee has 1,838
satisfactorily completed thirty classroom hours of continuing
education, as prescribed by the Ohio real estate commission 1,839
pursuant to section 4735.10 of the Revised Code, on or before the 1,840
licensee's birthday occurring three years after the licensee's 1,841
date of initial licensure, and on or before the licensee's 1,842
birthday every three years thereafter.
Persons licensed as real estate salespersons who 1,845
subsequently become licensed real estate brokers shall continue 1,846
to submit proof of continuing education in accordance with the 1,847
time period established in this section.
The requirements of this section shall not apply to any 1,851
physically handicapped licensee as provided in division (E) of
this section. 1,852
Each licensee who is seventy years of age or older on June 1,855
13, 1996 June 13, 1996 June 14, 1999, shall submit, on or before 1,856
the licensee's birthday occurring three years after the effective 1,857
date of this amendment SECTION, and on or before the licensee's 1,859
birthday every three years thereafter, proof satisfactory to the 1,860
superintendent of real esate ESTATE that the licensee has 1,862
satisfactorily completed June 13, 1996 a total of nine classroom 1,864
hours of continuing education, including instruction in Ohio real 1,865
estate law; recently enacted state and federal laws affecting the 1,866
real estate industry; municipal, state, and federal civil rights 1,868
law; and canons of ethics for the real estate industry as adopted 1,869
43
by the commission. A LICENSEE WHO IS SEVENTY YEARS OF AGE OR
OLDER ON OR AFTER THE DATE ESTABLISHED IN THIS SECTION, WHOSE 1,870
LICENSE IS PROPERLY PLACED ON DEPOSIT WITH THE SUPERINTENDENT IS 1,871
EXEMPT FROM THE CONTINUING EDUCATION REQUIREMENTS SPECIFIED IN 1,872
THIS SECTION. The commission shall adopt reasonable rules in 1,874
accordance with Chapter 119. of the Revised Code to carry out the 1,876
purposes of this paragraph.
A person providing any course of continuing education may 1,878
administer examinations to licensees for the purpose of 1,879
evaluating the effectiveness of the course, but passage of an 1,880
examination by a licensee shall not be a condition for successful 1,881
completion of the continuing education requirements of this 1,882
section. 1,883
(B) The continuing education requirements of this section 1,885
shall be completed in schools, seminars, and educational 1,886
institutions approved by the commission. Such approval shall be 1,887
given according to rules established by the commission under the 1,888
procedures of Chapter 119. of the Revised Code, and shall not be 1,889
limited to institutions providing two-year or four-year degrees. 1,890
Each school, seminar, or educational institution approved under 1,891
this division shall be open to all licensees on an equal basis. 1,892
(C) If the requirements of this section are not met by a 1,894
licensee within the period specified, the licensee's license 1,895
shall be suspended automatically without the taking of any action 1,896
by the superintendent. The superintendent shall notify the 1,897
licensee of the license suspension. Any license so suspended 1,898
shall remain suspended until it is reactivated by the 1,899
superintendent. No such license shall be reactivated until it is 1,901
established, to the satisfaction of the superintendent, that the 1,903
requirements of this section have been met. If the requirements 1,904
of this section are not met within one year TWELVE MONTHS from 1,905
the date the license was suspended, the license shall be revoked 1,908
automatically without the taking of any action by the commission. 1,909
A person whose license has been revoked and whose revoked license 1,910
44
was issued prior to January 1, 1980, may have the person's 1,911
license reactivated by the superintendent at any time after it 1,913
has been revoked upon submitting proof satisfactory to the 1,914
superintendent that the person has satisfactorily completed 1,915
during the period since the revocation of the person's license 1,916
thirty classroom hours of continuing education as prescribed by 1,917
the commission pursuant to section 4735.10 of the Revised Code. 1,918
Upon reactivation of the person's license, the licensee shall 1,920
comply with the educational requirements of division (A) of this 1,921
section.
(D) If the license of a real estate broker is suspended 1,923
pursuant to division (C) of this section, the license of a real 1,925
estate salesperson associated with that broker correspondingly is 1,927
suspended pursuant to division (B) of section 4735.20 of the 1,928
Revised Code. However, the suspended license of the associated 1,929
real estate salesperson shall be reactivated and no fee shall be 1,932
charged or collected for that reactivation if all of the 1,935
following occur: 1,936
(1) That broker subsequently submits proof to the 1,938
superintendent that the broker has complied with the requirements 1,939
of this section and requests that the broker's license as a real 1,940
estate broker be reactivated. 1,941
(2) The superintendent then reactivates the broker's 1,943
license as a real estate broker. 1,945
(3) The associated real estate salesperson intends to 1,947
continue to be associated with that broker, has complied with the 1,948
requirements of this section, and otherwise is in compliance with 1,949
this chapter. 1,950
Any person whose license is reactivated pursuant to this 1,952
division shall submit proof satisfactory to the superintendent 1,953
that the person has completed thirty hours of continuing 1,954
education, as prescribed by the Ohio real estate commission, on 1,955
or before the third year following the licensee's birthday 1,956
occurring immediately after reactivation. 1,957
45
(E) Any licensee who is a physically handicapped licensee 1,959
at any time during the last three months of the third year of the 1,960
licensee's continuing education reporting period may receive an 1,961
extension of time to submit proof to the superintendent that the 1,962
licensee has satisfactorily completed the required thirty hours 1,963
of continuing education. To receive an extension of time, the 1,964
licensee shall submit a request to the division of real estate 1,965
for the extension and proof satisfactory to the commission that 1,966
the licensee was a physically handicapped licensee at some time 1,967
during the last three months of the three-year reporting period. 1,968
The proof shall include, but is not limited to, a signed 1,969
statement by the licensee's attending physician describing the 1,970
physical disability, certifying that the licensee's disability is 1,971
of such a nature as to prevent the licensee from attending any 1,972
classroom instruction lasting at least three hours in duration, 1,973
and stating the expected duration of the physical disability. 1,974
The licensee shall request the extension and provide the 1,975
physician's statement to the division no later than one month
prior to the end of the licensee's three-year continuing 1,976
education reporting period, unless the physical disability did 1,977
not arise until the last month of the three-year reporting 1,978
period, in which event the licensee shall request the extension 1,979
and provide the physician's statement as soon as practical after 1,980
the occurrence of the physical disability. A licensee granted an 1,981
extension pursuant to this division who is no longer a physically 1,982
handicapped licensee and who submits proof of completion of the 1,983
continuing education during the extension period, shall submit, 1,984
for future continuing education reporting periods, proof of 1,985
completion of the continuing education requirements according to 1,986
the schedule established in division (A) of this section. 1,987
Sec. 4735.15. The fees for branch office licenses, 1,996
transfers, certificates of continuation in business ANNUAL 1,997
RENEWALS, late filings, and foreign real estate dealer and 1,999
salesman SALESPERSON licenses shall be as follows: 2,000
46
(A) Branch office license, eight dollars; 2,002
(B) Transfer of a broker's license into or out of a 2,004
partnership, association, LIMITED LIABILITY COMPANY, LIMITED 2,006
LIABILITY PARTNERSHIP, or corporation or from one partnership, 2,007
association, LIMITED LIABILITY COMPANY, LIMITED LIABILITY 2,009
PARTNERSHIP, or corporation to another partnership, association, 2,010
LIMITED LIABILITY COMPANY, LIMITED LIABILITY PARTNERSHIP, or 2,012
corporation, twenty-five dollars. An application for such 2,013
transfer shall be made to the superintendent of real estate on 2,014
forms provided by the superintendent. 2,015
(C) Transfer of a license by a real estate salesman 2,017
SALESPERSON, twenty dollars; 2,019
(D) Certificate of continuation in the business ANNUAL 2,021
RENEWAL of A real estate broker BROKER'S LICENSE, forty-nine 2,023
dollars. If the licensee is a partnership, association, LIMITED 2,026
LIABILITY COMPANY, LIMITED LIABILITY PARTNERSHIP, or corporation, 2,027
the full broker's continuation RENEWAL fee shall be required for 2,028
each member of such partnership, association, LIMITED LIABILITY 2,031
COMPANY, LIMITED LIABILITY PARTNERSHIP, or corporation that is a 2,032
real estate broker. If the real estate broker has not less than 2,034
eleven nor more than twenty real estate salesmen SALESPERSONS 2,035
associated with him THE BROKER, an additional fee of sixty-four 2,037
dollars shall be assessed to the brokerage. For every additional 2,038
ten real estate salesmen SALESPERSONS or fraction of that number, 2,039
the brokerage assessment fee shall be increased in the amount of 2,042
thirty-seven dollars. 2,043
(E) Certificate of continuation in business ANNUAL RENEWAL 2,045
of real estate salesman SALESPERSON'S LICENSE, thirty-nine 2,047
dollars;
(F) Certificate of continuation in the business ANNUAL 2,049
RENEWAL of A real estate broker BROKER'S or salesman 2,051
SALESPERSON'S LICENSE filed within fifteen days after the 2,052
thirty-first day of December LICENSEE'S RENEWAL DATE, an 2,053
additional late filing penalty of fifty per cent of the required 2,055
47
fee.
(G) Foreign real estate dealer's license and each annual 2,057
renewal of the license, thirty dollars per salesman SALESPERSON 2,058
employed by the dealer, but not less than one hundred fifty 2,060
dollars;
(H) Foreign real estate salesman's SALESPERSON'S license 2,062
and each annual renewal of the license, fifty dollars. 2,063
All fees collected under this section shall be paid to the 2,065
treasurer of state. Four dollars of each such fee shall be 2,067
credited to the real estate education and research fund. 2,068
In all cases, the fee and any penalty shall accompany the 2,070
application for THE license or LICENSE transfer or shall 2,071
accompany the filing of the certificate of continuation in 2,073
business ANNUAL RENEWAL.
The commission may establish by rule reasonable fees for 2,075
services not otherwise established by this chapter. 2,076
Sec. 4735.16. (A) Every real estate broker licensed under 2,085
this chapter shall have and maintain a definite place of business 2,086
in this state and shall erect or maintain a sign on the premises 2,087
plainly stating that the licensee is a real estate broker. If 2,088
the real estate broker maintains one or more branch offices, he 2,089
THE REAL ESTATE BROKER shall erect or maintain a sign at each 2,090
branch office plainly stating that the licensee is a real estate 2,091
broker.
(B)(1) Any licensed real estate broker or salesman 2,093
SALESPERSON who advertises to buy, sell, exchange, or lease real 2,095
estate, OR TO ENGAGE IN ANY ACT REGULATED BY THIS CHAPTER, 2,096
including, but not limited to, any licensed real estate broker or 2,097
salesman SALESPERSON who advertises to sell, exchange, or lease 2,098
real estate that he THE LICENSEE owns, shall be identified in the 2,100
advertisement by name and by indicating that he THE LICENSEE is a 2,102
real estate broker or real estate salesman SALESPERSON. Except a 2,104
real estate salesman SALESPERSON who advertises the sale, 2,105
exchange, or lease of real estate that he THE SALESPERSON owns 2,106
48
and that is not listed for sale, exchange, or lease with a real 2,107
estate broker, any real estate salesman SALESPERSON who 2,108
advertises, as provided in this section, also shall indicate in 2,110
his THE advertisement the name of the broker under whom he THE 2,112
SALESPERSON is licensed and the fact that his THE SALESPERSON'S 2,113
broker is a real estate broker. The name of the broker shall be 2,114
displayed in equal prominence with the name of the salesman 2,115
SALESPERSON in the advertisement. 2,116
Any (2) IF ANY real estate broker or real estate salesman 2,119
who SALESPERSON advertises in a manner other than as provided in 2,120
this section is guilty of violating OR THE RULES ADOPTED UNDER 2,121
THIS SECTION, THAT ADVERTISEMENT SHALL BE PRIMA FACIE EVIDENCE OF 2,122
MISCONDUCT UNDER division (A)(21) of section 4735.18 of the 2,123
Revised Code. 2,124
IF THE SUPERINTENDENT DETERMINES THAT A REAL ESTATE BROKER 2,126
OR REAL ESTATE SALESPERSON IS GUILTY OF VIOLATING DIVISION 2,127
(A)(21) OF SECTION 4735.18 OF THE REVISED CODE OR ANY OF THE 2,128
RULES ADOPTED THEREUNDER, THE SUPERINTENDENT MAY DO EITHER OF THE 2,130
FOLLOWING:
(a) INITIATE DISCIPLINARY SANCTIONS FOR A VIOLATION OF 2,132
DIVISION (A)(21) OF SECTION 4735.18 OF THE REVISED CODE, IN 2,134
ACCORDANCE WITH CHAPTER 119. OF THE REVISED CODE; 2,136
(b) PERSONALLY, OR BY CERTIFIED MAIL, SERVE A CITATION 2,138
UPON THE LICENSEE. 2,139
(C)(1) EVERY CITATION SERVED UNDER THIS SECTION SHALL GIVE 2,141
NOTICE TO THE LICENSEE OF THE ALLEGED VIOLATION OR VIOLATIONS 2,143
CHARGED AND INFORM THE LICENSEE OF THE OPPORTUNITY TO REQUEST A 2,144
HEARING IN ACCORDANCE WITH CHAPTER 119. OF THE REVISED CODE. THE 2,145
CITATION ALSO SHALL CONTAIN A STATEMENT OF A FINE OF TWO HUNDRED 2,147
DOLLARS PER VIOLATION, NOT TO EXCEED TWO THOUSAND FIVE HUNDRED 2,148
DOLLARS PER CITATION. UNLESS OTHERWISE INDICATED, IF THE 2,149
LICENSEE FAILS TO COMPLY WITH ANY OF THE TERMS OF THE CITATION 2,150
WITHIN THIRTY DAYS OF THE DATE OF SERVICE THE SUPERINTENDENT 2,151
SHALL AUTOMATICALLY SUSPEND THE LICENSEE'S LICENSE. 2,152
49
(2) IF ANY LICENSEE IS CITED MORE THAN THREE TIMES WITHIN 2,154
TWELVE CONSECUTIVE MONTHS, THE SUPERINTENDENT SHALL INITIATE 2,155
DISCIPLINARY SANCTIONS FOR ANY SUBSEQUENT VIOLATION THAT OCCURS 2,156
WITHIN THE SAME TWELVE-MONTH PERIOD. 2,157
(3) IF A LICENSEE FAILS TO REQUEST A HEARING WITHIN THIRTY 2,159
DAYS OF THE DATE OF SERVICE OF THE CITATION, OR THE LICENSEE AND 2,160
THE SUPERINTENDENT FAIL TO REACH AN ALTERNATIVE AGREEMENT, THE 2,161
CITATION SHALL BECOME FINAL. 2,162
(D) A real estate broker or salesman SALESPERSON obtaining 2,165
the signature of a party to a listing or other agreement involved 2,166
in a real estate transaction shall furnish a copy of the listing 2,167
or other agreement to the party immediately after obtaining his 2,168
THE PARTY'S signature. Every broker's office shall prominently 2,169
display in the same immediate area as licenses are displayed a 2,170
statement that it is illegal to discriminate against any person 2,171
because of race, color, religion, sex, familial status, as 2,172
defined in section 4112.01 of the Revised Code, national origin, 2,173
handicap, as defined in that section, or ancestry in the sale or 2,174
rental of housing or residential lots, in advertising the sale or 2,175
rental of housing, in the financing of housing, or in the 2,176
provision of real estate brokerage services, and that 2,177
blockbusting also is illegal. The statement shall bear the United 2,178
States department of housing and urban development equal housing 2,179
logo and also shall contain the information that the broker and 2,180
his salesmen THE BROKER'S SALESPERSONS are licensed by the 2,181
division of real estate and that the division can assist with any 2,182
consumer complaints or inquiries, and shall explain the 2,183
provisions of section 4735.12 of the Revised Code. The statement 2,184
shall provide the division's address and telephone number. The 2,185
Ohio real estate commission shall provide by rule for the wording 2,186
and size of the statement. The pamphlet required under section 2,187
4735.03 of the Revised Code shall contain the same statement that 2,188
is required on the statement displayed as provided in this 2,189
section and shall be made available by real estate brokers and 2,190
50
salesmen SALESPERSONS to their clients. The commission shall 2,191
provide the wording and size of the pamphlet. 2,192
Sec. 4735.18. (A) Subject to section 4735.32 of the 2,201
Revised Code, the superintendent of real estate, upon the 2,202
superintendent's own motion, may investigate the conduct of any 2,203
licensee. Subject to section 4735.32 of the Revised Code, the 2,204
Ohio real estate commission shall, pursuant to section 4735.051 2,205
of the Revised Code, impose disciplinary sanctions upon any 2,206
licensee who, whether or not acting in the licensee's capacity as 2,207
a real estate broker or salesperson, or in handling the
licensee's own property, is found to have been convicted of a 2,209
felony or a crime of moral turpitude, and shall, pursuant to
section 4735.051 of the Revised Code, impose disciplinary 2,210
sanctions upon any licensee who, in the licensee's capacity as a 2,211
real estate broker or salesperson, or in handling the licensee's 2,212
own property, is found guilty of: 2,213
(1) Knowingly making any misrepresentation; 2,215
(2) Making any false promises with intent to influence, 2,217
persuade, or induce; 2,218
(3) A continued course of misrepresentation or the making 2,220
of false promises through agents, salespersons, advertising, or 2,221
otherwise;
(4) Acting for more than one party in a transaction except 2,224
as permitted by and in compliance with section 4735.71 of the
Revised Code; 2,225
(5) Failure within a reasonable time to account for or to 2,227
remit any money coming into the licensee's possession which 2,228
belongs to others; 2,229
(6) Dishonest or illegal dealing, gross negligence, 2,231
incompetency, or misconduct; 2,232
(7)(a) By final adjudication by a court, a violation of 2,234
any municipal or federal civil rights law relevant to the 2,235
protection of purchasers or sellers of real estate or, by final 2,236
adjudication by a court, any unlawful discriminatory practice 2,237
51
pertaining to the purchase or sale of real estate prohibited by 2,238
Chapter 4112. of the Revised Code, provided that such violation 2,239
arose out of a situation wherein parties were engaged in bona 2,240
fide efforts to purchase, sell, or lease real estate, in the 2,241
licensee's practice as a licensed real estate broker or 2,242
salesperson;
(b) A second or subsequent violation of any unlawful 2,244
discriminatory practice pertaining to the purchase or sale of 2,245
real estate prohibited by Chapter 4112. of the Revised Code or 2,246
any second or subsequent violation of municipal or federal civil 2,247
rights laws relevant to purchasing or selling real estate whether 2,248
or not there has been a final adjudication by a court, provided 2,249
that such violation arose out of a situation wherein parties were 2,250
engaged in bona fide efforts to purchase, sell, or lease real 2,251
estate. For any second offense under this division, the 2,252
commission shall suspend for a minimum of two months or revoke 2,253
the license of the broker or salesperson. For any subsequent 2,254
offense, the commission shall revoke the license of the broker or 2,255
salesperson. 2,256
(8) Procuring a license under this chapter, for the 2,258
licensee or any salesperson by fraud, misrepresentation, or 2,259
deceit;
(9) Having violated or failed to comply with any provision 2,261
of sections 4735.51 to 4735.74 of the Revised Code or having 2,262
willfully disregarded or violated any other provisions of this 2,263
chapter;
(10) As a real estate broker, having demanded, without 2,265
reasonable cause, other than from a broker licensed under this 2,268
chapter, a commission to which the licensee is not entitled, or, 2,269
as a real estate salesperson, having demanded, without reasonable 2,272
cause, a commission to which the licensee is not entitled;
(11) Having paid commissions or fees to, or divided 2,274
commissions or fees with, anyone not licensed as a real estate 2,275
broker or salesperson; 2,276
52
(12) Having falsely represented membership in any real 2,278
estate professional association of which the licensee is not a 2,279
member; 2,280
(13) Having accepted, given, or charged any undisclosed 2,282
commission, rebate, or direct profit on expenditures made for a 2,283
principal; 2,284
(14) Having offered anything of value other than the 2,286
consideration recited in the sales contract as an inducement to a 2,287
person to enter into a contract for the purchase or sale of real 2,288
estate or having offered real estate or the improvements on real 2,289
estate as a prize in a lottery or scheme of chance; 2,290
(15) Having acted in the dual capacity of real estate 2,292
broker and undisclosed principal, or real estate salesperson and 2,294
undisclosed principal, in any transaction;
(16) Having guaranteed, authorized, or permitted any 2,296
person to guarantee future profits which may result from the 2,297
resale of real property or cemetery interment rights; 2,298
(17) Having placed a sign on any property offering it for 2,300
sale or for rent without the consent of the owner or the owner's 2,301
authorized agent; 2,302
(18) Having induced any party to a contract of sale or 2,304
lease to break such contract for the purpose of substituting in 2,305
lieu of it a new contract with another principal; 2,306
(19) Having negotiated the sale, exchange, or lease of any 2,308
real property directly with an owner, purchaser, lessor, or 2,309
tenant knowing that such owner, purchaser, lessor, or tenant had 2,310
a written outstanding contract granting exclusive agency in 2,311
connection with such property to another real estate broker; 2,312
(20) Having offered real property for sale or for lease 2,314
without the knowledge and consent of the owner or the owner's 2,315
authorized agent, or on any terms other than those authorized by 2,316
the owner or the owner's authorized agent; 2,317
(21) Having published advertising, whether printed, radio, 2,319
display, or of any other nature, which was misleading or 2,320
53
inaccurate in any material particular, or in any way having 2,321
misrepresented any properties, terms, values, policies, or 2,322
services of the business conducted; 2,323
(22) Having knowingly withheld from or inserted in any 2,325
statement of account or invoice any statement that made it 2,326
inaccurate in any material particular; 2,327
(23) Having published or circulated unjustified or 2,329
unwarranted threats of legal proceedings which tended to or had 2,330
the effect of harassing competitors or intimidating their 2,331
customers; 2,332
(24) Having failed to keep complete and accurate records 2,334
of all transactions for a period of three years from the date of 2,335
the transaction, such records to include copies of listing forms, 2,336
earnest money receipts, offers to purchase and acceptances of 2,337
them, and records of receipts and disbursements of all funds 2,338
received by the licensee as broker and incident to the licensee's 2,339
transactions as such, and any other instruments or papers related 2,341
to the performance of any of the acts set forth in the definition 2,342
of a real estate broker; 2,343
(25) Failure of a real estate broker or salesperson to 2,345
furnish all parties involved in a real estate transaction true 2,346
copies of all listings and other agreements to which they are a 2,347
party, at the time each party signs them; 2,348
(26) Failure to maintain at all times a special or trust 2,350
bank account in a depository located in this state. The account 2,351
shall be noninterest-bearing, separate and distinct from any 2,352
personal or other account of the broker, and, except as provided 2,354
in division (A)(27) of this section, shall be used for the
deposit and maintenance of all escrow funds, security deposits, 2,355
and other moneys received by the broker in a fiduciary capacity. 2,356
The name, account number, if any, and location of the depository 2,357
wherein such special or trust account is maintained shall be 2,358
submitted in writing to the superintendent. Checks drawn on such 2,359
special or trust bank accounts are deemed to meet the conditions 2,360
54
imposed by section 1349.21 of the Revised Code.
(27) Failure to maintain at all times a special or trust 2,362
bank account in a depository in this state, to be used 2,363
exclusively for the deposit and maintenance of all rents, 2,364
security deposits, escrow funds, and other moneys received by the 2,365
broker in a fiduciary capacity in the course of managing real
property. This account shall be separate and distinct from any 2,366
other account maintained by the broker. The name, account 2,367
number, and location of the depository shall be submitted in 2,368
writing to the superintendent. This account may earn interest, 2,369
which shall be paid to the property owners on a pro rata basis. 2,370
Division (A)(27) of this section does not apply to brokers 2,372
who are not engaged in the management of real property on behalf 2,373
of real property owners. 2,374
(28) Having failed to put definite expiration dates in all 2,376
written agency agreements to which the broker is a party; 2,377
(29) Having an unsatisfied final judgment in any court of 2,379
record against the licensee arising out of the licensee's conduct 2,381
as a licensed broker or salesperson;
(30) Failing to render promptly upon demand a full and 2,383
complete statement of the expenditures by the broker or 2,384
salesperson of funds advanced by or on behalf of a party to a 2,385
real estate transaction to the broker or salesperson for the 2,386
purpose of performing duties as a licensee under this chapter in 2,387
conjunction with the real estate transaction; 2,388
(31) Failure within a reasonable time, after the receipt 2,390
of the commission by the broker, to render an accounting to and 2,391
pay a real estate salesperson the salesperson's earned share of 2,392
it;
(32) Failure to notify the real estate salesperson that 2,394
the licensee does not intend to list such salesperson on the 2,395
continuation in business ANNUAL NOTICE OF RENEWAL form; 2,396
(33) Performing any service for another constituting the 2,398
practice of law, as determined by any court of law; 2,399
55
(34) Having been adjudicated incompetent for the purpose 2,401
of holding the license by a court, as provided in section 2,402
5122.301 of the Revised Code. A license revoked or suspended 2,403
under this division shall be reinstated upon proof to the 2,404
commission of the removal of the disability. 2,405
(35) Having authorized or permitted a person to act as an 2,407
agent in the capacity of a real estate broker, or a real estate 2,408
salesperson, who was not then licensed as a real estate broker or 2,410
real estate salesperson under this chapter.
(B) Whenever the commission, pursuant to section 4735.051 2,412
of the Revised Code, imposes disciplinary sanctions for any 2,413
violation of this section, the commission also may impose such 2,414
sanctions upon the broker with whom the salesperson is affiliated 2,415
if the commission finds that the broker had knowledge of the 2,416
salesperson's actions that violated this section.
(C) The commission shall, pursuant to section 4735.051 of 2,418
the Revised Code, impose disciplinary sanctions upon any foreign 2,419
real estate dealer or salesperson who, in that capacity or in 2,420
handling the dealer's or salesperson's own property, is found 2,421
guilty of any of the acts or omissions specified or comprehended 2,422
in division (A) of this section insofar as the acts or omissions
pertain to foreign real estate. If the commission imposes such 2,423
sanctions upon a foreign real estate salesperson for a violation 2,424
of this section, the commission also may suspend or revoke the 2,425
license of the foreign real estate dealer with whom the 2,426
salesperson is affiliated if the commission finds that the dealer 2,427
had knowledge of the salesperson's actions that violated this 2,428
section.
(D) The commission may suspend, in whole or in part, the 2,430
imposition of the penalty of suspension of a license under this 2,431
section. 2,432
(E) The commission immediately shall notify the real 2,434
estate appraiser board of any disciplinary action taken under 2,435
this section against a licensee who also is a state-certified 2,436
56
real estate appraiser under Chapter 4763. of the Revised Code. 2,437
Sec. 4735.25. (A)(1) No person, other than an actual bona 2,446
fide owner selling for his THE OWNER'S own account in a single 2,447
transaction and not by way of repeated or successive 2,448
transactions, or a person excepted from obtaining a license under 2,449
section 4735.01 of the Revised Code, shall sell, lease, or 2,450
otherwise deal in this state in any foreign real estate unless 2,451
the person has qualified the foreign real estate pursuant to this 2,452
section and unless one of the following applies: 2,453
(a) The person was licensed under section 1707.15 or 2,455
1707.16 prior to October 14, 1969; 2,456
(b) The person was licensed as a foreign real estate 2,458
dealer or salesman SALESPERSON under former section 1707.331 of 2,459
the Revised Code prior to the effective date of this section, but 2,460
only until the expiration date of the license; 2,461
(c) The person is licensed under section 4735.27 or 2,463
4735.28 of the Revised Code. 2,464
(2) A licensed foreign real estate dealer or licensed 2,466
foreign real estate salesman SALESPERSON who is acting in a 2,467
fiduciary capacity for a bona fide owner of foreign real estate 2,469
in the sale or lease of that real estate, or who is otherwise 2,470
dealing in foreign real estate in a fiduciary capacity for its 2,471
bona fide owner, in a single transaction and not by way of 2,472
repeated or successive transactions for that owner, need not 2,473
qualify such real estate under this section. 2,474
(B) Any person, other than one of the excepted persons 2,476
under division (A) of this section, desiring to sell, lease, or 2,477
otherwise deal in any foreign real estate shall file an 2,478
application with the superintendent of real estate in the form 2,479
the superintendent prescribes, which application shall set forth 2,480
the following: 2,481
(1) An exact description of the foreign real estate sought 2,483
to be sold, leased, or dealt in; 2,484
(2) A map or plat prepared by a competent surveyor showing 2,486
57
the boundaries and dimensions of the foreign real estate and all 2,487
lots or subdivisions of it; 2,488
(3) The names of the owners of the foreign real estate, 2,490
with a detailed statement showing the financial responsibility of 2,491
each owner, together with the post office address of each, 2,492
including street numbers or another pertinent description; and if 2,493
any such owner is a corporation or association, a copy of its 2,494
articles or certificate of incorporation or of the agreement by 2,495
which it was created, unless a copy is already on file in the 2,496
office of the secretary of state, together with proof that it is 2,497
qualified to do business in this state, if it is a foreign 2,498
corporation; 2,499
(4) A list and description of all liens and encumbrances 2,501
on the foreign real estate; 2,502
(5) A full description of all improvements or developments 2,504
of every nature to be made or promised to be made on the foreign 2,505
real estate, the cost of the improvements or developments, and 2,506
the security, if any, for their completion; 2,507
(6) A copy of any building restrictions or other 2,509
restrictions upon the use of the foreign real estate; 2,510
(7) A copy, description, or plan showing the form of 2,512
contract, method, and terms of sale, lease, or other dealing to 2,513
be used in connection with the foreign real estate; 2,514
(8) A list or schedule of all sales prices of the foreign 2,516
real estate; 2,517
(9) A list or schedule of all commissions, allowances, or 2,519
compensations in any form that have been arranged or agreed to be 2,520
paid to the applicant, and to any dealers or salesmen 2,521
SALESPERSONS, by the owner or by any person interested in the 2,522
foreign real estate; 2,523
(10) Other information that the superintendent requires. 2,525
(C) All the statements, exhibits, and documents required 2,527
by the superintendent under this section, except properly 2,528
certified public documents, shall be verified by the oath of the 2,529
58
applicant or of any person having knowledge of the facts, and in 2,530
such manner and form as required by the superintendent. Failure 2,531
to comply with the requests of the superintendent in this regard 2,532
shall be a sufficient reason for a refusal by the superintendent 2,533
to qualify the foreign real estate. 2,534
(D) Upon filing the application, the applicant shall pay 2,536
to the superintendent a filing fee of five hundred dollars plus 2,537
an additional one dollar for each lot, unit, parcel, or interest 2,538
included in the offering, with the aggregate fee not to exceed 2,539
two thousand five hundred dollars, and shall deposit with the 2,540
superintendent a sum the superintendent may require for the 2,541
purpose of defraying the cost of verifying the statements of the 2,542
applicant, or for the purpose of determining that the provisions 2,543
of this chapter have been and will be complied with and that the 2,544
foreign real estate will not be sold, leased, or dealt in within 2,545
this state on grossly unfair terms, or in a method or on terms 2,546
that might defraud or deceive purchasers in this state. 2,547
(E) The superintendent, through the division of real 2,549
estate OR THE SUPERINTENDENT'S DESIGNEE EMPLOYED BY THE 2,550
DEPARTMENT OF COMMERCE, may inspect and examine the foreign real 2,551
estate or investigate the applicant or the persons interested in, 2,552
dealing in, or selling, the foreign real estate. The actual cost 2,553
of the inspection or examination, including the proper proportion 2,554
of the salaries of employees of the division of real estate who 2,555
conduct it, shall be paid by the applicant and may be retained by 2,556
the superintendent out of any deposit. An itemized statement of 2,557
such cost shall be furnished to the applicant. 2,558
(F) In order either to prevent fraud in the sale of 2,560
foreign real estate or to provide security for the performance of 2,561
agreements to make improvements on it, the superintendent may 2,562
require all payments for the foreign real estate to be made to a 2,563
bank in this state, and to be impounded in that bank and held in 2,564
escrow upon the terms the superintendent reasonably requires. 2,565
(G) If the superintendent is of the opinion that the 2,567
59
proposed sale, lease, or disposal is not on grossly unfair terms, 2,568
that the provisions of this chapter have been complied with, and 2,569
that the foreign real estate will not be sold, leased, or dealt 2,570
in, in a method or on terms that might defraud or deceive persons 2,571
in this state, he THE SUPERINTENDENT shall allow the 2,572
qualification of the foreign real estate for sale, lease, or 2,574
other disposition on the terms stated in the application or on 2,575
other terms, calculated to prevent fraud or deception, the 2,576
superintendent approves.
Section 2. That existing sections 4735.01, 4735.02, 2,578
4735.03, 4735.05, 4735.051, 4735.06, 4735.07, 4735.08, 4735.09, 2,579
4735.10, 4735.11, 4735.12, 4735.13, 4735.14, 4735.141, 4735.15, 2,580
4735.16, 4735.18, and 4735.25 of the Revised Code are hereby 2,582
repealed.
Section 3. Notwithstanding section 4735.141 of the Revised 2,584
Code as amended by this act, all persons licensed under sections 2,585
4735.07 and 4735.09 of the Revised Code before January 1, 2001, 2,586
shall submit proof satisfactory to the Superintendent of Real 2,587
Estate that the licensee has satisfactorily completed continuing 2,588
education, as prescribed by the Ohio Real Estate Commission
pursuant to section 4735.10 of the Revised Code and as to the 2,590
number of hours required under section 4735.141 of the Revised 2,591
Code, as that section existed prior to this act, in accordance 2,592
with the appropriate time period, as follows:
(A) For continuing education that, under section 4735.141 2,594
of the Revised Code, as it existed prior to this act, would have 2,596
been due in the year 2001, on or before the licensee's birthday 2,597
in the year 2002, and on or before the licensee's birthday every 2,598
three years thereafter;
(B) For continuing education that, under section 4735.141 2,600
of the Revised Code, as it existed prior to this act, would have 2,602
been due in the year 2002, on or before the licensee's birthday 2,603
in the year 2003, and on or before the licensee's birthday every 2,604
three years thereafter;
60
(C) For continuing education that, under section 4735.141 2,606
of the Revised Code, as it existed prior to this act, would have 2,608
been due in the year 2003, on or before the licensee's birthday 2,609
in the year 2004, and on or before the licensee's birthday every 2,610
three years thereafter.
Section 4. Notwithstanding section 4735.15 of the Revised 2,612
Code, for the license renewal period beginning January 1, 2001, 2,613
and ending December 31, 2001, licensees shall pay prorated 2,615
license renewal fees on or before the licensee's birthday in the 2,616
year 2001. Beginning January 1, 2002, and every year thereafter, 2,617
license renewal fees shall be paid on or before the licensee's 2,618
birthday in the amount specified in section 4735.15 of the 2,619
Revised Code. The prorated license renewal fee shall be paid as 2,620
follows:
Month of birth Broker license Salesperson 2,625
renewal fee license renewal
fee
January $49.00 $39.00 2,628
February $53.00 $42.00 2,629
March $57.00 $45.00 2,630
April $61.00 $48.00 2,631
May $65.00 $51.00 2,632
June $69.00 $54.00 2,633
July $73.00 $57.00 2,634
August $77.00 $60.00 2,635
September $81.00 $63.00 2,636
October $85.00 $66.00 2,637
November $89.00 $69.00 2,638
December $93.00 $72.00 2,639
Section 5. Sections 4735.07 and 4735.141 of the Revised 2,642
Code are presented in this act as composites of the section as 2,644
amended by both Am. Sub. H.B. 18 and Am. Sub. H.B. 283 of the 2,645
123rd General Assembly, with the new language of neither of the 2,646
acts shown in capital letters. This is in recognition of the 2,647
61
principle stated in division (B) of section 1.52 of the Revised 2,648
Code that such amendments are to be harmonized where not 2,649
substantively irreconcilable and constitutes a legislative 2,650
finding that such is the resulting version in effect prior to the 2,651
effective date of this act.