As Passed by the House 1
123rd General Assembly 4
Regular Session Am. Sub. H. B. No. 524 5
1999-2000 6
REPRESENTATIVES CORBIN-D. MILLER-METELSKY-CATES-HARRIS-AUSTRIA- 8
TIBERI-TERWILLEGER-CAREY-KILBANE-DISTEL-ALLEN-LOGAN-PATTON-EVANS- 9
GOODMAN-KRUPINSKI-VERICH-BRITTON-DAMSCHRODER-PERRY-SYKES-KREBS- 10
OLMAN-METTLER-STEVENS-SALERNO-DePIERO-BARRETT 11
_________________________________________________________________ 12
A B I L L
To amend sections 4735.01, 4735.02, 4735.03, 14
4735.05, 4735.051, 4735.06, 4735.07, 4735.08, 15
4735.09, 4735.10, 4735.11, 4735.12, 4735.13, 16
4735.14, 4735.141, 4735.15, 4735.16, 4735.18, and
4735.25 of the Revised Code to include limited 18
liability companies and limited liability
partnerships in the definition of real estate 19
broker and to establish changes in the real 20
estate licensing law.
BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF OHIO: 22
Section 1. That sections 4735.01, 4735.02, 4735.03, 24
4735.05, 4735.051, 4735.06, 4735.07, 4735.08, 4735.09, 4735.10, 25
4735.11, 4735.12, 4735.13, 4735.14, 4735.141, 4735.15, 4735.16, 26
4735.18, and 4735.25 of the Revised Code be amended to read as 28
follows:
Sec. 4735.01. As used in this chapter: 37
(A) "Real estate broker" includes any person, partnership, 39
association, LIMITED LIABILITY COMPANY, LIMITED LIABILITY 40
PARTNERSHIP, or corporation, foreign or domestic, who for 41
another, whether pursuant to a power of attorney or otherwise, 42
and who for a fee, commission, or other valuable consideration, 43
or with the intention, or in the expectation, or upon the promise 44
of receiving or collecting a fee, commission, or other valuable 45
2
consideration DOES ANY OF THE FOLLOWING: 46
(1) Sells, exchanges, purchases, rents, or leases, or 48
negotiates the sale, exchange, purchase, rental, or leasing of 49
any real estate; 50
(2) Offers, attempts, or agrees to negotiate the sale, 52
exchange, purchase, rental, or leasing of any real estate; 53
(3) Lists, or offers, attempts, or agrees to list, or 55
auctions, or offers, attempts, or agrees to auction, any real 56
estate; 57
(4) Buys or offers to buy, sells or offers to sell, or 59
otherwise deals in options on real estate; 60
(5) Operates, manages, or rents, or offers or attempts to 62
operate, manage, or rent, other than as custodian, caretaker, or 63
janitor, any building or portions of buildings to the public as 64
tenants; 65
(6) Advertises or holds self out as engaged in the 67
business of selling, exchanging, purchasing, renting, or leasing 68
real estate; 69
(7) Directs or assists in the procuring of prospects or 71
the negotiation of any transaction, other than mortgage 72
financing, which does or is calculated to result in the sale, 73
exchange, leasing, or renting of any real estate; 74
(8) Is employed by or on behalf of the owner of lots, or 76
other parcels of real estate, at a stated salary, or upon a 77
commission, or upon a salary and commission basis or otherwise, 78
to sell such real estate, or any parts of it, in lots or other 79
parcels, and who sells, exchanges, or offers, attempts, or agrees 80
to negotiate the sale or exchange of any such lot or parcel of 81
real estate; 82
(9) Is engaged in the business of charging an advance fee 84
or contracting for collection of a fee in connection with any 85
contract whereby the broker undertakes primarily to promote the 87
sale, exchange, purchase, rental, or leasing of real estate 88
through its listing in a publication issued primarily for such 89
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purpose, or for referral of information concerning such real 90
estate to brokers, or both, except that this division does not 91
apply to a publisher of listings or compilations of sales of real 92
estate by their owners; 93
(10)(9) Collects rental information for purposes of 95
referring prospective tenants to rental units or locations of 96
such units and charges the prospective tenants a fee. 97
(B) "Real estate" includes leaseholds as well as any and 99
every interest or estate in land situated in this state, whether 100
corporeal or incorporeal, whether freehold or nonfreehold, and 101
the improvements on the land, but does not include cemetery 102
interment rights. 103
(C) "Real estate salesperson" means any person associated 105
with a licensed real estate broker to do or to deal in any acts 106
or transactions set out or comprehended by the definition of a 107
real estate broker, for compensation or otherwise. 108
(D) "Institution of higher education" means either of the 110
following:
(1) A nonprofit institution as defined in section 1713.01 112
of the Revised Code that actually awards, rather than intends to 113
award, degrees for fulfilling requirements of academic work 114
beyond high school; 115
(2) An institution operated for profit that otherwise 117
qualifies under the definition of an institution in section 118
1713.01 of the Revised Code and that actually awards, rather than 119
intends to award, degrees for fulfilling requirements of academic 120
work beyond high school. 121
(E) "Foreign real estate" means real estate not situated 123
in this state and any interest in real estate not situated in 124
this state. 125
(F) "Foreign real estate dealer" includes any person, 127
partnership, association, LIMITED LIABILITY COMPANY, LIMITED 128
LIABILITY PARTNERSHIP, or corporation, foreign or domestic, who 130
for another, whether pursuant to a power of attorney or
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otherwise, and who for a fee, commission, or other valuable 131
consideration, or with the intention, or in the expectation, or 132
upon the promise of receiving or collecting a fee, commission, or 133
other valuable consideration, does or deals in any act or 134
transaction specified or comprehended in division (A) of this 135
section with respect to foreign real estate. 136
(G) "Foreign real estate salesperson" means any person 139
associated with a licensed foreign real estate dealer to do or 140
deal in any act or transaction specified or comprehended in 141
division (A) of this section with respect to foreign real estate, 142
for compensation or otherwise. 143
(H) Any person, partnership, association, LIMITED 145
LIABILITY COMPANY, LIMITED LIABILITY PARTNERSHIP, or corporation, 146
who, for another, in consideration of compensation, by fee, 147
commission, salary, or otherwise, or with the intention, in the 148
expectation, or upon the promise of receiving or collecting a 149
fee, does, or offers, attempts, or agrees to engage in, any 150
single act or transaction contained in the definition of a real 151
estate broker or foreign real estate dealer, whether an act is an 152
incidental part of a transaction, or the entire transaction, 153
shall be constituted a real estate broker or real estate 154
salesperson or a foreign real estate dealer or foreign real 155
estate salesperson under this chapter. 156
(I) The terms "real estate broker," "real estate 158
salesperson," "foreign real estate dealer," and "foreign real 160
estate salesperson" do not include a person, partnership, 161
association, LIMITED LIABILITY COMPANY, LIMITED LIABILITY 162
PARTNERSHIP, or corporation, or the regular employees thereof, 163
who perform any of the acts or transactions specified or 165
comprehended in division (A) of this section, whether or not for, 166
or with the intention, in expectation, or upon the promise of 167
receiving or collecting a fee, commission, or other valuable 168
consideration:
(1) With reference to real estate situated in this state 170
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or any interest in it owned by such person, partnership, 171
association, LIMITED LIABILITY COMPANY, LIMITED LIABILITY 172
PARTNERSHIP, or corporation, or acquired on its own account in 173
the regular course of, or as an incident to the management of the 174
property and the investment in it; 175
(2) As receiver or trustee in bankruptcy, as guardian, 177
executor, administrator, trustee, assignee, commissioner, or any 178
person doing the things mentioned in this section, under 179
authority or appointment of, or incident to a proceeding in, any 180
court, or as a public officer, or as executor, trustee, or other 181
bona fide fiduciary under any trust agreement, deed of trust, 182
will, or other instrument creating a like bona fide fiduciary 183
obligation; 184
(3) As a public officer while performing the officer's 186
official duties; 187
(4) As an attorney at law in the performance of the 189
attorney's duties; 190
(5) AS A PERSON WHO ENGAGES IN THE BROKERING OF THE SALE 192
OF BUSINESS ASSETS, NOT INCLUDING THE NEGOTIATION OF THE SALE, 193
LEASE, EXCHANGE, OR ASSIGNMENT OF ANY INTEREST IN REAL ESTATE; 194
(6) AS A PERSON WHO ENAGES IN THE SALE OF MANUFACTURED 196
HOMES, AS DEFINED IN DIVISION (C)(4) OF SECTION 3781.06 OF THE 197
REVISED CODE. 198
(J) "Physically handicapped licensee" means a person 199
licensed pursuant to this chapter who is under a severe physical 200
disability which is of such a nature as to prevent the person 201
from being able to attend any classroom instruction lasting at 202
least three hours in duration. 203
(K) "Division of real estate" may be used interchangeably 206
with, and for all purposes has the same meaning as, "division of 207
real estate and professional licensing." 208
(L) "Superintendent" or "superintendent of real estate" 211
means the superintendent of the division of real estate and 212
professional licensing of this state. Whenever the division or 213
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superintendent of real estate is referred to or designated in any 214
statute, rule, contract, or other document, the reference or 215
designation shall be deemed to refer to the division or 216
superintendent of real estate and professional licensing, as the 217
case may be.
(M) "INACTIVE LICENSE" MEANS THE LICENSE STATUS IN WHICH A 219
SALESPERSON'S LICENSE IS IN THE POSSESSION OF THE DIVISION, 220
ANNUALLY RENEWED AS REQUIRED UNDER THIS CHAPTER, AND NOT 221
ASSOCIATED WITH A REAL ESTATE BROKER. 222
(N) "BROKER'S LICENSE ON DEPOSIT" MEANS THE LICENSE STATUS 224
IN WHICH A BROKER'S LICENSE IS IN THE POSSESSION OF THE DIVISION 225
OF REAL ESTATE AND PROFESSIONAL LICENSING AND ANNUALLY RENEWED AS 226
REQUIRED UNDER THIS CHAPTER. 227
(O) "SUSPENDED LICENSE" MEANS THE LICENSE STATUS THAT 229
PROHIBITS A LICENSEE FROM PROVIDING SERVICES THAT REQUIRE A 230
LICENSE UNDER THIS CHAPTER FOR A SPECIFIED INTERVAL OF TIME. 231
(P) "REACTIVATE" MEANS THE PROCESS PRESCRIBED BY THE 233
SUPERINTENDENT OF REAL ESTATE AND PROFESSIONAL LICENSING TO 234
REMOVE A LICENSE FROM AN INACTIVE, SUSPENDED, OR BROKER'S LICENSE 235
ON DEPOSIT STATUS TO ALLOW A LICENSEE TO PROVIDE SERVICES THAT 236
REQUIRE A LICENSE UNDER THIS CHAPTER. 237
(Q) "REVOKED" MEANS THE LICENSE STATUS IN WHICH THE 239
LICENSE IS VOID AND NOT ELIGIBLE FOR REACTIVATION. 240
Sec. 4735.02. No person, partnership, association, LIMITED 249
LIABILITY COMPANY, LIMITED LIABILITY PARTNERSHIP, or corporation 251
shall act as a real estate broker or real estate salesperson, or 252
advertise or assume to act as such, without first being licensed 253
as provided in this chapter. NO PERSON, PARTNERSHIP, 254
ASSOCIATION, LIMITED LIABILITY COMPANY, LIMITED LIABILITY 255
PARTNERSHIP, OR CORPORATION SHALL PROVIDE SERVICES THAT REQUIRE A 256
LICENSE UNDER THIS CHAPTER IF THE LICENSEE'S LICENSE IS INACTIVE, 257
SUSPENDED, OR A BROKER'S LICENSE ON DEPOSIT, OR IF THE LICENSE 258
HAS BEEN REVOKED. Nothing contained in this chapter shall be 260
construed as authorizing a real estate broker or salesperson to 261
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perform any service constituting the practice of law. 262
No partnership, association, LIMITED LIABILITY COMPANY, 264
LIMITED LIABILITY PARTNERSHIP, or corporation holding a real 265
estate license shall employ as an officer, director, manager, or 266
principal employee any person previously holding a license as a 267
real estate broker, real estate salesperson, foreign real estate 269
dealer, or foreign real estate salesperson, whose license has 270
been terminated by failure to file a certificate of continuation, 271
by revocation, or by suspension, PLACED IN INACTIVE STATUS, 272
SUSPENDED, OR REVOKED and who has not thereafter been relicensed 274
REACTIVATED THE LICENSE OR RECEIVED A NEW LICENSE.
Sec. 4735.03. There is hereby created the Ohio real estate 283
commission, consisting of five members who shall be appointed by 284
the governor, with the advice and consent of the senate. Four 285
members shall have been engaged in the real estate business as 286
licensed real estate brokers in the state for a period of ten 287
years immediately preceding the appointment. One member shall 288
represent the public. Terms of office shall be for five years, 289
commencing on the first day of July and ending on the thirtieth 290
day of June. Each member shall hold office from the date of his 291
appointment until the end of the term for which appointed. No 292
more than three members shall be members of any one political 293
party and no member of the commission concurrently may be a 294
member of the commission and the real estate appraiser board 295
created pursuant to section 4763.02 of the Revised Code. Each 296
member, before entering upon the duties of his office, shall 297
subscribe to and file with the secretary of state the 298
constitutional oath of office. All vacancies which occur shall 299
be filled in the manner prescribed for the regular appointments 300
to the commission. Any member appointed to fill a vacancy 301
occurring prior to the expiration of the term for which his THE 302
MEMBER'S predecessor was appointed shall hold office for the 303
remainder of such term. Any member shall continue in office 304
subsequent to the expiration date of his THE MEMBER'S term until 305
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his THE MEMBER'S successor takes office, or until a period of 307
sixty days has elapsed, whichever occurs first. Annually, upon 308
the qualification of the member appointed in such year, the 309
commission shall organize by selecting from its members a 310
president AND VICE PRESIDENT, and shall do all things necessary
and proper to carry out and enforce this chapter. A majority of 312
the members of the commission shall constitute a quorum, but a 313
lesser number may adjourn from time to time. Each member of the 314
commission shall receive an amount fixed pursuant to section 315
124.14 of the Revised Code for each day employed in the discharge 316
of his official duties, and his THE MEMBER'S actual and necessary 317
expenses incurred in the discharge of such THOSE duties. 318
The commission or the superintendent of real estate may 320
investigate complaints concerning the violation of section 321
4735.02 or 4735.25 of the Revised Code and may subpoena witnesses 322
in connection with such investigations as provided in section 323
4735.04 of the Revised Code. The commission or the 324
superintendent may make application to the appropriate court for 325
an order enjoining the violation of section 4735.02 or 4735.25 of 326
the Revised Code, and upon a showing by the commission or the 327
superintendent that any person, firm, partnership, association, 328
LIMITED LIABILITY COMPANY, LIMITED LIABILITY PARTNERSHIP, or 330
corporation has violated or is about to violate section 4735.02 331
or 4735.25 of the Revised Code, an injunction, restraining order, 332
or such other order as may be appropriate shall be granted by 333
such court.
The commission shall: 335
(A) Adopt canons of ethics for the real estate industry; 337
(B) Upon appeal by any party affected, or may upon its own 339
motion, review any order OR APPLICATION DETERMINATION of the 340
superintendent, and may reverse, vacate, or modify any order of 342
the superintendent;
(C) Administer the real estate education and research fund 344
and hear appeals from orders of the superintendent regarding 345
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claims against that fund or against the real estate recovery 346
fund; 347
(D) Direct the superintendent on the content, scheduling, 349
instruction, and offerings of real estate courses for salesman 350
SALESPERSON and broker educational requirements; 351
(E) Disseminate to licensees and the public, information 353
relative to commission activities and decisions; 354
(F) Notify licensees of changes in state and federal civil 356
rights laws pertaining to discrimination in the purchase or sale 357
of real estate and relevant case law, and inform licensees that 358
they are subject to disciplinary action if they do not comply 359
with the changes; 360
(G) Publish and furnish to public libraries and to brokers 362
booklets on housing and remedies available to dissatisfied 363
clients under this chapter and Chapter 4112. of the Revised Code. 364
Sec. 4735.05. (A) The Ohio real estate commission is a 373
part of the department of commerce for administrative purposes. 374
The director of commerce is ex officio the executive officer of 375
the commission, or the director may designate any employee of the 376
department as superintendent of real estate and professional 377
licensing to act as executive officer of the commission. 378
The commission and the real estate appraiser board created 380
pursuant to section 4763.02 of the Revised Code shall each submit 381
to the director a list of three persons whom the commission and 382
the board consider qualified to be superintendent within sixty 383
days after the office of superintendent becomes vacant. The 384
director shall appoint a superintendent from the lists submitted 385
by the commission and the board, and the superintendent shall 386
serve at the pleasure of the director. 387
(B) The superintendent, except as otherwise provided, 389
shall do all of the following in regard to this chapter: 390
(1) Administer this chapter; 392
(2) Issue all orders necessary to implement this chapter; 394
(3) Investigate complaints concerning the violation of 396
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this chapter or the conduct of any licensee; 397
(4) Establish and maintain an investigation and audit 399
section to investigate complaints and conduct inspections, 400
audits, and other inquiries as in the judgment of the 401
superintendent are appropriate to enforce this chapter. The 402
investigators or auditors have the right to review and audit the 403
business records of licensees AND CONTINUING EDUCATION COURSE 404
PROVIDERS during normal business hours. 405
(5) Appoint a hearing examiner for any proceeding 407
involving license suspension or revocation DISCIPLINARY ACTION 408
under section 2301.373 of the Revised Code or proceedings brought 410
under section 4735.18 of the Revised Code; 411
(6) Administer the real estate recovery fund. 413
(C) The superintendent may do all of the following: 415
(1) In connection with investigations and audits under 417
division (B) of this section, subpoena witnesses as provided in 418
section 4735.04 of the Revised Code; 419
(2) Apply to the appropriate court to enjoin any violation 421
of this chapter. Upon a showing by the superintendent that any 422
person has violated or is about to violate any provision of this 423
chapter, the court shall grant an injunction, restraining order, 424
or other appropriate order. 425
(3) Upon the death of a licensed broker or the revocation 427
or suspension of the broker's license, if there is no other 428
licensed broker within the business entity of the broker, appoint 429
upon application by any interested party, or, in the case of a 430
deceased broker, subject to the approval by the appropriate 431
probate court, recommend the appointment of, an ancillary trustee 432
who is qualified as determined by the superintendent to conclude 433
the business transactions of the deceased, revoked, or suspended 434
broker. 435
(D) All information that is obtained by investigators and 437
auditors performing investigations or conducting inspections, 438
audits, and other inquiries pursuant to division (B)(4) of this 439
11
section, from licensees, complainants, or other persons, and all 440
reports, documents, and other work products that arise from that 441
information and that are prepared by the investigators, auditors, 442
or other personnel of the department, shall be held in confidence 443
by the superintendent, the investigators and auditors, and other 444
personnel of the department. 445
Sec. 4735.051. (A) Within five business days after a 454
person files a signed written complaint against a licensed real 455
estate broker or licensed real estate salesperson with the 457
division of real estate, the superintendent of real estate shall 458
acknowledge receipt of the complaint and send a notice to the 459
licensee describing the acts complained of. The acknowledgment 460
to the complainant and the notice to the licensee shall state 461
that an informal meeting will be held with the complainant, the 462
licensee, and an investigator from the investigation and audit 463
section of the division if the complainant and licensee both file 464
a request for such a meeting within ten business days thereafter 465
on a form provided by the superintendent. 466
(B) If the complainant and licensee both file with the 468
division requests for an informal meeting, the superintendent 469
shall notify the complainant and licensee of the date of the 470
meeting, which shall be within twenty business days thereafter, 471
except that any party may request an extension of up to fifteen 472
business days for good cause shown. If the parties COMPLAINANT 473
AND LICENSEE reach an accommodation at an informal meeting, the 475
investigator shall so report to the superintendent and, the 476
parties COMPLAINANT, AND LICENSEE and the complaint file shall be 478
closed, unless, based upon the investigator's report, the 479
superintendent finds evidence that the licensee has violated 480
section 4735.18 of the Revised Code.
(C) If the parties COMPLAINANT AND LICENSEE fail to agree 482
to an informal meeting or fail to reach an accommodation, or if 484
the superintendent finds evidence of a violation of section 485
4735.18 of the Revised Code, the superintendent shall, within 486
12
five business days of such determination, so notify the parties 488
COMPLAINANT AND LICENSEE and shall investigate the conduct of the 490
licensee against whom the complaint is filed.
(D) Within sixty business days after receipt of the 492
complaint, or, if an informal meeting is held, within sixty days 493
of such meeting, the investigator shall file a written report of 494
the results of the investigator's investigation with the 495
superintendent. Within ten FOURTEEN business days thereafter, 497
the superintendent shall review the report and determine whether 499
there exists reasonable and substantial evidence of a violation 500
of section 4735.18 of the Revised Code by the licensee. If the 501
superintendent finds such evidence exists, within five SEVEN 502
business days of the determination, the superintendent shall 504
notify the parties COMPLAINANT AND LICENSEE of the date of a 506
hearing to be held by a hearing examiner pursuant to Chapter 119. 507
of the Revised Code within fifteen days but not prior to seven 508
days thereafter, except that any party EITHER THE SUPERINTENDENT 509
OR THE LICENSEE may request an extension of up to thirty business 511
days for good cause shown. If the superintendent finds that such 512
evidence does not exist, within five business days thereafter, 513
the superintendent shall so notify the parties COMPLAINANT AND 514
LICENSEE of the superintendent's determination and the basis for 515
the determination. Within fifteen business days after the 516
superintendent notifies the parties COMPLAINANT AND LICENSEE that 518
such evidence does not exist, the complainant may file with the 519
division a request that the commissioners review the 520
determination. If the complainant files such request, the 521
commissioners shall review the determination at the next 522
regularly scheduled meeting held at least fifteen business days 523
after the request is filed. The commission shall hear the 524
testimony of either party THE COMPLAINANT OR THE LICENSEE at such 525
THE meeting upon the request of the party COMPLAINANT OR 526
LICENSEE. If the commissioners affirm the determination of the 528
superintendent, the superintendent shall so notify the 529
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complainant and the licensee within five business days 530
thereafter. If the commissioners reverse the determination of 531
the superintendent, a hearing shall be held and the parties 532
COMPLAINANT AND LICENSEE notified as provided in this division. 533
(E) Within twenty-five business days after the conclusion 535
of formal hearings, the hearing examiner shall file a report of 536
findings of fact and conclusions of law with the superintendent, 537
the commission, and the parties COMPLAINANT AND LICENSEE. 538
(F) The commissioners shall review the hearing examiner's 540
report and the parties' evidence at the next regularly scheduled 541
commission meeting held at least fifteen business days after 542
receipt of the hearing examiner's report. The commission shall 543
hear the testimony of any party THE COMPLAINANT OR THE LICENSEE 544
upon request. If the complainant is the Ohio civil rights 546
commission, the complaint shall be reviewed by the commissioners 547
directly upon request.
(G) The commission shall decide whether to impose 549
disciplinary sanctions upon a licensee for a violation of section 550
4735.18 of the Revised Code. The commission shall decide within 551
sixty days of the filing of the hearing examiner's report or 552
within sixty days of the filing of an Ohio civil rights 553
commission complaint. The commission shall maintain a transcript 554
of the proceedings and issue a written opinion to all the parties 555
COMPLAINANT AND LICENSEE, citing its findings and grounds for any 557
action taken. The commission shall notify the complainant and 558
any other party PERSON who may have suffered financial loss 559
because of the licensee's violations, that the complainant or 560
other party PERSON may sue for recovery under section 4735.12 of 561
the Revised Code.
(H) An investigation under this section is subject to 563
section 4735.32 of the Revised Code. 564
(I) The commission may impose the following sanctions upon 566
a licensee for a violation of section 4735.18 of the Revised 567
Code: 568
14
(1) Revoke a license issued under Chapter 4735. of the 570
Revised Code; 571
(2) Suspend a license for a term set by the commission; 573
(3) Impose a fine, not exceeding two thousand five hundred 575
dollars per violation; 576
(4) Issue a public reprimand; 578
(5) Require the completion of additional continuing 580
education course work. Any continuing education course work 581
imposed pursuant to this section shall not count toward the 582
continuing education requirements set forth in section 4735.14 of 583
the Revised Code.
All fines imposed pursuant to division (I)(3) of this 585
section shall be credited to the real estate operating RECOVERY 586
fund, which is created in the state treasury under section 588
4735.211 4735.12 of the Revised Code. 589
Sec. 4735.06. (A) Application for a license as a real 598
estate broker shall be made in writing to the superintendent of 599
real estate on forms furnished by the superintendent and filed 601
with the superintendent and shall be signed by the applicant or 603
its members or officers. Each application shall state the name 604
of the person applying and the location of the place of business 605
for which the license is desired, and give such other information 606
as the superintendent requires in the form of application 607
prescribed by the superintendent. 608
The application shall be accompanied by a recent photograph 610
of the applicant and the names of three resident freeholders of 611
the county in which the applicant resides or has the applicant's 613
place of business. If the applicant has resided, or has engaged 614
in the real estate business, for less than one year in the county 615
from which the application is made, the application shall be 616
accompanied by a recent photograph of the applicant and the names 617
of three resident freeholders of each of the counties where the 618
applicant formerly resided or engaged in the real estate business 619
during the period of one year prior to the filing of the 620
15
application. No one of the freeholders shall be related to the 621
applicant, and one of them shall be the applicant's most recent 622
broker. If the applicant's most recent broker is a relative of 623
the applicant or is not a freeholder, the name of a third 624
freeholder shall be furnished. The freeholders shall furnish 625
information to the superintendent, on forms prescribed by the 626
superintendent, concerning the character of the applicant. If 627
the applicant maintains more than one place of business within 628
the state, the applicant shall apply for and procure a duplicate 629
license for each branch office so maintained by the applicant. 630
Each branch office shall be in the charge of a licensed broker or 632
salesperson.
If the applicant is a partnership, LIMITED LIABILITY 634
COMPANY, LIMITED LIABILITY PARTNERSHIP, or association, the names 636
of all the members also shall be stated, and, if the applicant is 637
a corporation, the names of its president and of each of its 638
officers also shall be stated. The superintendent has the right 639
to reject the application of any partnership, association, 640
LIMITED LIABILITY COMPANY, LIMITED LIABILITY PARTNERSHIP, or 642
corporation if the name proposed to be used by such partnership, 643
association, LIMITED LIABILITY COMPANY, LIMITED LIABILITY 645
PARTNERSHIP, or corporation is likely to mislead the public or if 646
the name is not such as to distinguish it from the name of any 647
existing partnership, association, LIMITED LIABILITY COMPANY, 649
LIMITED LIABILITY PARTNERSHIP, or corporation licensed under this 651
chapter, unless there is filed with the application the written 653
consent of such existing partnership, association, LIMITED 654
LIABILITY COMPANY, LIMITED LIABILITY PARTNERSHIP, or corporation, 656
executed by a duly authorized representative of it, permitting 657
the use of the name of such existing partnership, association, 658
LIMITED LIABILITY COMPANY, LIMITED LIABILITY PARTNERSHIP, or 660
corporation.
(B) A fee of sixty-nine dollars shall accompany the 663
application for a real estate broker's license, which fee shall 664
16
include the license if it is issued. The application fee shall 665
be retained by the superintendent if the applicant is admitted to 666
the examination for the license or the examination requirement is 667
waived, but, if an applicant is not so admitted and a waiver is 668
not involved, one-half of the fee shall be retained by the 669
superintendent to cover the expenses of processing the 670
application and the other one-half shall be returned to the 671
applicant. A fee of sixty-nine dollars shall be charged by the 673
superintendent for each successive application made by an 674
applicant. 675
(C) Four dollars of each fee for a real estate broker's 678
license shall be credited to the real estate education and 679
research fund, which is hereby created in the state treasury. 680
The Ohio real estate commission may use the fund in discharging 681
the duties prescribed in divisions (E), (F), and (G) of section 682
4735.03 of the Revised Code and shall use it in the advancement 683
of education and research in real estate at any institution of 684
higher education in the state, or in contracting with any such 685
institution for a particular research or educational project in 686
the field of real estate, or in advancing loans, not exceeding 687
eight hundred dollars, to applicants for salesperson licenses, to 689
defray the costs of satisfying the educational requirements of
division (F) of section 4735.09 of the Revised Code. Such loans 690
shall be made according to rules established by the commission 691
under the procedures of Chapter 119. of the Revised Code, and 692
they shall be repaid to the fund within three years of the time 693
they are made. No more than ten thousand dollars shall be lent 694
from the fund in any one year. 695
The governor may appoint a representative from the 697
executive branch to be a member ex officio of the commission for 698
the purpose of advising on research requests or educational 699
projects. The commission shall report to the general assembly on 700
the third Tuesday after the third Monday in January of each year 701
setting forth the total amount contained in the fund and the 702
17
amount of each research grant that it has authorized and the 703
amount of each research grant requested. A copy of all research 704
reports shall be submitted to the state library of Ohio and the 705
library of the legislative service commission. 706
(D) If the superintendent, with the consent of the 708
commission, enters into an agreement with a national testing 709
service to administer the real estate broker's examination, 710
pursuant to division (A) of section 4735.07 of the Revised Code, 711
the superintendent may require an applicant to pay the testing 712
service's examination fee directly to the testing service. If 714
the superintendent requires the payment of the examination fee 715
directly to the testing service, each applicant shall submit to 716
the superintendent a processing fee in an amount determined by 717
the Ohio real estate commission pursuant to division (A)(1)(2) of 718
section 4735.10 of the Revised Code. 720
Sec. 4735.07. (A) The superintendent of real estate, with 729
the consent of the Ohio real estate commission, may enter into 730
agreements with recognized national testing services to 731
administer the real estate broker's examination under the 732
superintendent's supervision and control, consistent with the 733
requirements of this chapter as to the contents of such 734
examination.
(B) No applicant for a real estate broker's license shall 737
take the broker's examination who has not established to the 738
satisfaction of the superintendent that the person the applicant: 739
(1) Is honest, truthful, and of good reputation; 741
(2)(a) Has not been convicted of a felony or crime of 743
moral turpitude, or if the person the applicant has been so 744
convicted, the superintendent has disregarded the conviction 745
because the applicant has proven to the superintendent, by a 746
preponderance of the evidence, that the applicant's activities 747
and employment record since the conviction show that the 749
applicant is honest, truthful, and of good reputation, and there 750
is no basis in fact for believing that the applicant again will 751
18
violate the laws involved;
(b) Has not been finally adjudged by a court to have 753
violated any municipal, state, or federal civil rights laws 754
relevant to the protection of purchasers or sellers of real 755
estate or, if the person the applicant has been so adjudged, at 756
least two years have passed since the court decision and the 758
superintendent has disregarded the adjudication because the 759
applicant has proven, by a preponderance of the evidence, that 760
the applicant's activities and employment record since the 761
adjudication show that the applicant is honest, truthful, and of 762
good reputation, and there is no basis in fact for believing that 763
the applicant will again violate the laws involved. 764
(3) Has not, during any period in which the person the 766
applicant was licensed under this chapter, violated any provision 767
of, or any rule adopted pursuant to, this chapter, or, if the 768
person the applicant has violated any such provision or rule, has 769
established to the satisfaction of the superintendent that the 770
person the applicant will not again violate such provision or 771
rule;
(4) Is at least eighteen years of age; 773
(5) Has been a licensed real estate broker or salesperson 776
for at least two years; during at least two of the five years 777
preceding the person's application, has worked as a licensed real
estate broker or salesperson for an average of at least thirty 778
hours per week; and has completed one of the following: 779
(a) At least twenty real estate transactions, in which 781
property was sold for another by the applicant while acting in 782
the capacity of a real estate broker or salesperson; 784
(b) Such equivalent experience as is defined by rules 786
adopted by the commission. 787
(6)(a) If licensed as a real estate salesperson prior to 790
January AUGUST 1, 1990 2001, successfully has completed at an 791
institution of higher education all of the following: 793
(i) Thirty hours of classroom instruction in real estate 795
19
practice; 796
(ii) Thirty hours of classroom instruction that includes 798
the subjects of Ohio real estate law, municipal, state, and 799
federal civil rights law, new case law on housing discrimination, 800
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 810
admitted to practice before the supreme court. 811
(iii) Thirty hours of classroom instruction in real estate 813
appraisal; 814
(iv) Thirty hours of classroom instruction in real estate 816
finance; 817
(v) Three quarter hours, or its equivalent in semester 819
hours, in financial management; 820
(vi) Three quarter hours, or its equivalent in semester 822
hours, in human resource or personnel management; 823
(vii) Three quarter hours, or its equivalent in semester 825
hours, in applied business economics; 826
(viii) Three quarter hours, or its equivalent in semester 828
hours, in business law. 829
(b) IF LICENSED AS A REAL ESTATE SALESPERSON ON OR AFTER 831
AUGUST 1, 2001, SUCCESSFULLY HAS COMPLETED AT AN INSTITUTION OF 832
HIGHER EDUCATION ALL OF THE FOLLOWING: 833
(i) FORTY HOURS OF CLASSROOM INSTRUCTION IN REAL ESTATE 835
PRACTICE; 836
(ii) FORTY HOURS OF CLASSROOM INSTRUCTION THAT INCLUDES 838
THE SUBJECTS OF OHIO REAL ESTATE LAW, MUNICIPAL, STATE, AND 839
20
FEDERAL CIVIL RIGHTS LAW, NEW CASE LAW ON HOUSING DISCRIMINATION, 840
DESEGREGATION ISSUES, AND METHODS OF ELIMINATING THE EFFECTS OF 842
PRIOR DISCRIMINATION. IF FEASIBLE, THE CLASSROOM INSTRUCTION IN 843
OHIO REAL ESTATE LAW SHALL BE TAUGHT BY A MEMBER OF THE FACULTY 844
OF AN ACCREDITED LAW SCHOOL. IF FEASIBLE, THE CLASSROOM 845
INSTRUCTION IN MUNICIPAL, STATE, AND FEDERAL CIVIL RIGHTS LAW, 846
NEW CASE LAW ON HOUSING DISCRIMINATION, DESEGREGATION ISSUES, AND 847
METHODS OF ELIMINATING THE EFFECTS OF PRIOR DISCRIMINATION SHALL 848
BE TAUGHT BY A STAFF MEMBER OF THE OHIO CIVIL RIGHTS COMMISSION 849
WHO IS KNOWLEDGEABLE WITH RESPECT TO THOSE SUBJECTS. THE 850
REQUIREMENTS OF THIS DIVISION DO NOT APPLY TO AN APPLICANT WHO IS 852
ADMITTED TO PRACTICE BEFORE THE SUPREME COURT.
(iii) TWENTY HOURS OF CLASSROOM INSTRUCTION IN REAL ESTATE 854
APPRAISAL; 855
(iv) TWENTY HOURS OF CLASSROOM INSTRUCTION IN REAL ESTATE 857
FINANCE; 858
(v) THE TRAINING IN THE AMOUNT OF HOURS SPECIFIED UNDER 860
DIVISIONS (B)(6)(a)(v), (vi), (vii), AND (viii) OF THIS SECTION. 863
(c) Division (B)(6)(a) OR (b) of this section does not 866
apply to any applicant who holds a valid real estate 867
salesperson's license issued prior to January 2, 1972 868
salesperson's. Divisions (B)(6)(a)(v), (vi), (vii), and (viii) 869
OR DIVISION (B)(6)(b)(v) of this section do not apply to any 871
applicant who holds a valid real estate salesperson's license 872
issued prior to January 3, 1984.
(7) If licensed as a real estate salesperson on or after 875
January 3, 1984, satisfactorily has completed a minimum of two
years of post-secondary education, or its equivalent in semester 876
or quarter hours, at an institution of higher education, and has 877
fulfilled the requirements of division (B)(6)(a) OR (b) of this 879
section. The requirements of division (B)(6)(a) OR (b) of this 880
section may be included in the two years of post-secondary 882
education, or its equivalent in semester or quarter hours, that 883
is required by this division. 884
21
(C) Each applicant for a broker's license shall be 886
examined in the principles of real estate practice, Ohio real 887
estate law, and financing and appraisal, and as to the duties of 888
real estate brokers and real estate salespersons, the applicant's 890
knowledge of real estate transactions and instruments relating to
them, and the canons of business ethics pertaining to them. The 891
commission from time to time shall promulgate such canons and 892
cause them to be published in printed form. 893
salesperson's 895
(D) Examinations shall be given entirely in writing, 897
except that they shall be administered with reasonable 898
accommodations in accordance with the requirements of the 900
"Americans with Disabilities Act of 1990," 104 Stat. 327, 42 901
U.S.C. 12101. The contents of an examination shall be consistent 903
with the requirements of division (B)(6)(a) of this section and 904
with the other specific requirements of this section. An 905
applicant who has completed the requirements of division 906
(B)(6)(a) of this section at the time of application may SHALL be 907
examined at the next regularly scheduled examination NO LATER 908
THAN TWELVE MONTHS after the applicant is notified of admission 910
to the examination.
(E) The superintendent may waive ONE OR MORE OF the 912
requirement REQUIREMENTS of examination THIS SECTION in the case 913
of an application from a nonresident real estate broker of a 915
state having similar requirements and under the laws of which 916
similar recognition is extended to licensed real estate brokers 917
and real estate salespersons of this PURSUANT TO A RECIPROCITY 918
AGREEMENT WITH THE LICENSING AUTHORITY OF THE state FROM WHICH 919
THE NONRESIDENT APPLICANT HOLDS A VALID REAL ESTATE BROKER 920
LICENSE.
(F) There shall be no limit placed on the number of times 922
an applicant may retake the examination. 923
(G) The superintendent in the superintendent's discretion 925
may waive the requirement of examination if the applicant has 927
22
been licensed as a real estate broker by the superintendent or 928
commission at some time during the two-year period immediately 929
preceding the date of the current application. 930
(H)(1) Each NO LATER THAN TWELVE MONTHS AFTER THE DATE OF 932
ISSUE OF A REAL ESTATE BROKER'S LICENSE TO A licensee 933
successfully, THE LICENSEE shall complete, SUBMIT PROOF 936
SATISFACTORY TO THE SUPERINTENDENT, ON FORMS MADE AVAILABLE BY 937
THE SUPERINTENDENT, OF THE COMPLETION OF TEN HOURS OF CLASSROOM 938
INSTRUCTION IN REAL ESTATE BROKERAGE at an institution of higher 941
education or any other institution that is approved by the 942
commission, ten hours of classroom instruction in real estate
brokerage. That instruction shall include, but not be limited 943
to, current issues in managing a real estate company or office. 944
Upon completion of the instruction, the licensee shall cause to 945
be filed with the superintendent a certificate from the 946
institution showing that the licensee successfully has completed 948
the requirements of this division in accordance with the
appropriate time period, as follows: 949
(a) Persons licensed on or after January 1, 1990, but 951
before January 1, 2001, shall submit proof of successful 953
completion of instruction to the superintendent within twelve 954
months after the date of issuance of the salesperson's license; 955
(b) Persons licensed on or after January 1, 2001, shall 957
submit proof of successful completion of instruction to the 958
superintendent on or before the date the licensee's first 959
continuing education requirement, after licensure as a 960
salesperson, must be met under section 4735.141 of the Revised
Code.
If the instruction REQUIRED PROOF OF COMPLETION is not 962
successfully completed SUBMITTED TO THE SUPERINTENDENT within the 964
time period prescribed by this division TWELVE MONTHS OF THE DATE 965
A LICENSE IS ISSUED UNDER THIS SECTION, the license of the real 966
estate broker is suspended automatically without the taking of 967
any action by the commission. The broker then shall have one 968
23
year after the date of the suspension of the broker's license to 970
successfully complete the instruction required under this 971
division, and the broker's license shall not be reinstated 972
REACTIVATED by the superintendent until it is established, to the 974
satisfaction of the superintendent, that the requirements of this 975
division have been met AND THAT THE LICENSEE IS IN COMPLIANCE
WITH THIS CHAPTER. A LICENSEE'S LICENSE IS REVOKED AUTOMATICALLY 976
WITHOUT THE TAKING OF ANY ACTION BY THE SUPERINTENDENT IF THE 977
LICENSEE FAILS TO SUBMIT PROOF OF COMPLETION OF THE EDUCATION 978
REQUIREMENTS SPECIFIED UNDER DIVISION (G)(1) OF THIS SECTION 979
WITHIN TWELVE MONTHS OF THE DATE THE LICENSE IS SUSPENDED. 980
(2) If the license of a real estate broker is suspended 982
pursuant to division (H)(G)(1) of this section, the license of a 984
real estate salesperson associated with that broker 985
correspondingly is suspended pursuant to division (B) of section 986
4735.20 of the Revised Code. However, the suspended license of 987
the associated real estate salesperson shall be reactivated and 988
no fee shall be charged or collected for that reactivation if all 989
of the following occur: 990
(a) That broker subsequently submits satisfactory proof to 992
the superintendent that the broker has complied with the 993
requirements of division (H)(G)(1) of this section and requests 995
that the broker's license as a real estate broker be reactivated; 997
(b) The superintendent then reactivates the broker's 1,000
license as a real estate broker;
(c) The associated real estate salesperson intends to 1,002
continue to be associated with that broker and otherwise is in 1,003
compliance with this chapter. 1,004
Sec. 4735.08. The superintendent of real estate shall 1,013
issue a real estate broker's license when he THE SUPERINTENDENT 1,014
is satisfied that: 1,015
(A) An applicant who is not a partnership, association, 1,017
LIMITED LIABILITY COMPANY, LIMITED LIABILITY PARTNERSHIP, or 1,018
corporation satisfies one of the following: 1,019
24
(1) Has received a grade of seventy-five per cent or 1,021
better PASSING SCORE on EACH PORTION OF the real estate broker's 1,023
examination administered under the supervision of the 1,024
superintendent AS DETERMINED BY RULE BY THE REAL ESTATE 1,025
COMMISSION;
(2) Is qualified to be licensed without examination as a 1,027
nonresident real estate broker, under division (E) of section 1,028
4735.07 of the Revised Code; 1,029
(3) Is qualified, as determined in the discretion of the 1,031
superintendent, to be licensed without examination as one who was 1,032
licensed as a real estate broker at some time during the two-year 1,033
period immediately preceding the date of the current application, 1,034
under division (G) of section 4735.07 of the Revised Code. 1,035
(B) All the members or officers who are authorized to 1,037
perform the functions of a real estate broker as the agents of an 1,038
applicant that is a partnership, association, LIMITED LIABILITY 1,039
COMPANY, LIMITED LIABILITY PARTNERSHIP, or corporation, are 1,040
licensed themselves as real estate brokers under this chapter. 1,041
Sec. 4735.09. (A) Application for a license as a real 1,050
estate salesperson shall be made in writing to the superintendent 1,052
of real estate on forms furnished by the superintendent and 1,053
signed by the applicant. The application shall be in the form 1,056
prescribed by the superintendent and shall contain such
information as is required by this chapter and the rules of the 1,057
Ohio real estate commission. The application shall be 1,058
accompanied by a recent photograph of the applicant and the 1,059
recommendation of the real estate broker with whom the applicant 1,061
is associated or with whom the applicant intends to be 1,062
associated, certifying that the applicant is honest, truthful, 1,063
and of good reputation, has not been convicted of a felony or a 1,064
crime involving moral turpitude, and has not been finally 1,065
adjudged by a court to have violated any municipal, state, or 1,066
federal civil rights laws relevant to the protection of 1,067
purchasers or sellers of real estate, which conviction or 1,068
25
adjudication the applicant has not disclosed to the 1,069
superintendent, and recommending that the applicant be admitted 1,070
to the REAL ESTATE SALESPERSON examination for real estate 1,071
salesman. 1,072
(B) A fee of forty-nine dollars shall accompany the 1,075
application, which fee shall include the license if it is issued. 1,076
The application fee shall be retained by the superintendent if 1,077
the applicant is admitted to the examination for the license or 1,078
the examination requirement is waived, but, if an applicant is 1,079
not so admitted and a waiver is not involved, one-half of the fee 1,080
shall be retained by the superintendent to cover the expenses of 1,081
processing the application and the other one-half shall be 1,082
returned to the applicant. A fee of forty-nine dollars shall be 1,084
charged by the superintendent for each successive application 1,085
made by the applicant. Four dollars of each fee shall be 1,087
credited to the real estate education and research fund. 1,088
(C) There shall be no limit placed on the number of times 1,090
an applicant may retake the examination. 1,091
(D) The superintendent, with the consent of the 1,093
commission, may enter into an agreement with a recognized 1,094
national testing service to administer the real estate 1,095
salesperson's examination under the superintendent's supervision 1,097
and control, consistent with the requirements of this chapter as 1,098
to the contents of the examination. 1,099
If the superintendent, with the consent of the commission, 1,101
enters into an agreement with a national testing service to 1,102
administer the real estate salesperson's examination, the 1,104
superintendent may require an applicant to pay the testing
service's examination fee directly to the testing service. If 1,106
the superintendent requires the payment of the examination fee 1,107
directly to the testing service, each applicant shall submit to 1,109
the superintendent a processing fee in an amount determined by
the Ohio real estate commission pursuant to division (A)(1) of 1,110
section 4735.10 of the Revised Code. 1,111
26
(E) The superintendent shall issue a real estate 1,113
salesperson's license when satisfied that the applicant has 1,115
received a grade of seventy-five per cent or better PASSING SCORE 1,116
on EACH PORTION OF the salesperson's examination AS DETERMINED BY 1,118
RULE BY THE REAL ESTATE COMMISSION, except that the 1,119
superintendent may waive ONE OR MORE OF the requirement 1,120
REQUIREMENTS of examination if THIS SECTION IN the CASE OF AN 1,121
applicant WHO is a licensed real estate salesperson in another 1,122
state and that state does both of the following: 1,123
(1) It applies licensing requirements similar to those 1,125
applied in this state as determined by the superintendent. 1,126
(2) It extends similar PURSUANT TO A reciprocity to 1,128
licensed real estate salespersons in this AGREEMENT WITH THE 1,130
LICENSING AUTHORITY OF THE state FROM WHICH THE APPLICANT HOLDS A 1,131
VALID REAL ESTATE SALESPERSON'S LICENSE. 1,132
(F) No applicant for a salesperson's license shall take 1,134
the salesperson's examination who has not established to the 1,136
satisfaction of the superintendent that the applicant: 1,137
(1) Is honest, truthful, and of good reputation; 1,139
(2)(a) Has not been convicted of a felony or crime of 1,141
moral turpitude or, if the applicant has been so convicted, the 1,143
superintendent has disregarded the conviction because the 1,144
applicant has proven to the superintendent, by a preponderance of 1,145
the evidence, that the applicant's activities and employment 1,146
record since the conviction show that the applicant is honest, 1,148
truthful, and of good reputation, and there is no basis in fact 1,150
for believing that the applicant again will violate the laws 1,151
involved;
(b) Has not been finally adjudged by a court to have 1,153
violated any municipal, state, or federal civil rights laws 1,154
relevant to the protection of purchasers or sellers of real 1,155
estate or, if the applicant has been so adjudged, at least two 1,157
years have passed since the court decision and the superintendent 1,158
has disregarded the adjudication because the applicant has 1,159
27
proven, by a preponderance of the evidence, that the applicant is 1,160
honest, truthful, and of good reputation, and there is no basis 1,161
in fact for believing that the applicant again will violate the 1,163
laws involved.
(3) Has not, during any period in which the applicant was 1,165
licensed under this chapter, violated any provision of, or any 1,166
rule adopted pursuant to this chapter, or, if the applicant has 1,167
violated such provision or rule, has established to the 1,168
satisfaction of the superintendent that the applicant will not 1,169
again violate such provision or rule; 1,170
(4) Is at least eighteen years of age; 1,172
(5) If born after the year 1950, has a high school diploma 1,174
or its equivalent as recognized by the state department of 1,175
education; 1,176
(6)(a) Has IF BEGINNING INSTRUCTION PRIOR TO AUGUST 1, 1,179
2001, HAS successfully completed at an institution of higher 1,181
education all of the following:
(i) Thirty hours of classroom instruction in real estate 1,183
practice; 1,184
(ii) Thirty hours of classroom instruction that includes 1,186
the subjects of Ohio real estate law, municipal, state, and 1,187
federal civil rights law, new case law on housing discrimination, 1,188
desegregation issues, and methods of eliminating the effects of 1,189
prior discrimination. If feasible, the classroom instruction in 1,190
Ohio real estate law shall be taught by a member of the faculty 1,191
of an accredited law school. If feasible, the classroom 1,192
instruction in municipal, state, and federal civil rights law, 1,193
new case law on housing discrimination, desegregation issues, and 1,194
methods of eliminating the effects of prior discrimination shall 1,195
be taught by a staff member of the Ohio civil rights commission 1,196
who is knowledgeable with respect to those subjects. The 1,197
requirements of this division do not apply to an applicant who is 1,198
admitted to practice before the supreme court. 1,199
(iii) Thirty hours of classroom instruction in real estate 1,201
28
appraisal; 1,202
(iv) Thirty hours of classroom instruction in real estate 1,204
finance. 1,205
(b) Any person who has not been licensed as a real estate 1,207
salesperson or broker within a four-year period immediately 1,209
preceding the person's current application for the salesperson's 1,210
examination shall have successfully completed the classroom 1,211
instruction required by division (F)(6)(a) of this section within 1,212
a ten-year period immediately preceding the person's current 1,213
application for the salesperson's examination. 1,214
(7) IF BEGINNING INSTRUCTION, AS DETERMINED BY THE 1,216
SUPERINTENDENT, ON OR AFTER AUGUST 1, 2001, HAS SUCCESSFULLY 1,218
COMPLETED AT AN INSTITUTION OF HIGHER EDUCATION ALL OF THE 1,219
FOLLOWING: 1,220
(a) FORTY HOURS OF CLASSROOM INSTRUCTION IN REAL ESTATE 1,222
PRACTICE; 1,223
(b) FORTY HOURS OF CLASSROOM INSTRUCTION THAT INCLUDES THE 1,225
SUBJECTS OF OHIO REAL ESTATE LAW, MUNICIPAL, STATE, AND FEDERAL 1,226
CIVIL RIGHTS LAW, NEW CASE LAW ON HOUSING DISCRIMINATION, 1,227
DESEGREGATION ISSUES, AND METHODS OF ELIMINATING THE EFFECTS OF 1,229
PRIOR DISCRIMINATION. IF FEASIBLE, THE CLASSROOM INSTRUCTION IN 1,230
OHIO REAL ESTATE LAW SHALL BE TAUGHT BY A MEMBER OF THE FACULTY 1,231
OF AN ACCREDITED LAW SCHOOL. IF FEASIBLE, THE CLASSROOM 1,232
INSTRUCTION IN MUNICIPAL, STATE, AND FEDERAL CIVIL RIGHTS LAW, 1,233
NEW CASE LAW ON HOUSING DISCRIMINATION, DESEGREGATION ISSUES, AND 1,234
METHODS OF ELIMINATING THE EFFECTS OF PRIOR DISCRIMINATION SHALL 1,235
BE TAUGHT BY A STAFF MEMBER OF THE OHIO CIVIL RIGHTS COMMISSION 1,236
WHO IS KNOWLEDGEABLE WITH RESPECT TO THOSE SUBJECTS. THE 1,237
REQUIREMENTS OF THIS DIVISION DO NOT APPLY TO AN APPLICANT WHO IS 1,238
ADMITTED TO PRACTICE BEFORE THE SUPREME COURT. 1,239
(c) TWENTY HOURS OF CLASSROOM INSTRUCTION IN REAL ESTATE 1,241
APPRAISAL; 1,242
(d) TWENTY HOURS OF CLASSROOM INSTRUCTION IN REAL ESTATE 1,244
FINANCE. 1,245
29
(G) Each NO LATER THAN TWELVE MONTHS AFTER THE DATE OF 1,247
ISSUE OF A REAL ESTATE SALESPERSON LICENSE TO A LICENSEE, THE 1,248
licensee shall submit proof SATISFACTORY TO THE SUPERINTENDENT, 1,249
ON FORMS MADE AVAILABLE BY THE SUPERINTENDENT, of successful 1,250
completion, at an institution of higher education or any other 1,252
institution approved by the commission, of ten hours of classroom 1,253
instruction in real estate courses that cover current issues 1,254
regarding consumers, real estate practice, ethics, and real 1,255
estate law. Upon completion of the instruction, the licensee 1,256
shall cause to have filed with the superintendent a certificate 1,257
from the institution showing that the licensee successfully has 1,258
completed the requirements of this division in accordance with 1,261
the appropriate time period, as follows: 1,262
(1) Persons licensed on or after January 1, 1990, but 1,264
before January 1, 2001, shall submit proof of successful 1,265
completion of the instruction to the superintendent within twelve 1,267
months after the date of issuance of the real estate broker's 1,268
license;
(2) Persons licensed on or after January 1, 2001, shall 1,270
submit proof of successful completion of the instruction to the 1,271
superintendent on or before the licensee's first continuing 1,273
education requirement, after licensure as a broker, must be met 1,274
under section 4735.141 of the Revised Code. 1,275
If proof of successful completion of the required 1,277
instruction is not submitted within the time period prescribed by 1,278
this division TWELVE MONTHS OF THE DATE A LICENSE IS ISSUED UNDER 1,279
THIS SECTION, the licensee's license is suspended automatically 1,281
without the taking of any action by the commission. The 1,282
superintendent immediately shall notify the broker with whom such 1,283
salesperson is associated of the suspension of the salesperson's 1,285
license. A salesperson whose license has been suspended under 1,286
this division shall have one year TWELVE MONTHS after the date of 1,287
the suspension of the salesperson's license to submit proof of 1,288
successful completion of the instruction required under this 1,291
30
division. No such license shall be reactivated by the 1,292
superintendent until it is established, to the satisfaction of
the superintendent, that the requirements of this division have 1,293
been met AND THAT THE LICENSEE IS IN COMPLIANCE WITH THIS 1,294
CHAPTER. A LICENSEE'S LICENSE IS REVOKED AUTOMATICALLY WITHOUT 1,295
THE TAKING OF ANY ACTION BY THE SUPERINTENDENT WHEN THE LICENSEE 1,296
FAILS TO SUBMIT THE REQUIRED PROOF OF COMPLETION OF THE EDUCATION 1,297
REQUIREMENTS UNDER DIVISION (G) OF THIS SECTION WITHIN TWELVE 1,298
MONTHS OF THE DATE THE LICENSE IS SUSPENDED. 1,299
(H) Examinations shall be given entirely in writing, 1,301
except that they shall be administered with reasonable 1,302
accommodations in accordance with the requirements of the 1,304
"Americans with Disabilities Act of 1990," 104 Stat. 327, 42 1,305
U.S.C. 12101. The contents of an examination shall be consistent 1,308
with the classroom instructional requirements of division 1,309
(F)(6)(a) OR (7) of this section. All persons whose applications 1,311
are pending shall be notified by mail at least sixty days prior 1,312
to such examination, except that an AN applicant who has
completed the classroom instructional requirements of division 1,313
(F)(6)(a) OR (7) of this section at the time of application may 1,315
SHALL be examined at the next regularly scheduled examination NO 1,317
LATER THAN TWELVE MONTHS after the applicant is notified of the 1,319
applicant's admission to the examination. Nothing in this 1,321
section shall be construed to prevent an applicant from 1,322
completing, in the discretion of the superintendent, the 1,323
classroom instructional requirements of division (F)(6)(a) of 1,324
this section concurrently with the processing of the applicant's 1,326
application for examination.
Sec. 4735.10. (A)(1) The Ohio real estate commission may 1,335
adopt reasonable rules in accordance with Chapter 119. of the 1,336
Revised Code, necessary for implementing the provisions of this 1,337
chapter relating, but not limited to, the following: 1,338
(a) The form and manner of filing applications for 1,340
license; 1,341
31
(b) Times and form of examination for license; 1,343
(c) Placing an existing broker's license in escrow ON 1,345
DEPOSIT OR A SALESPERSON'S LICENSE ON AN INACTIVE STATUS for an 1,346
indefinite period upon good cause shown. 1,347
(2) The commission shall adopt reasonable rules in 1,349
accordance with Chapter 119. of the Revised Code, for 1,350
implementing the provisions of this chapter relating to the 1,351
following:
(a) The issuance, renewal, suspension, AND revocation of 1,353
licenses, other sanctions that may be imposed for violations of 1,354
this chapter, and the conduct of hearings related to these 1,356
actions, AND THE PROCESS OF REACTIVATING A LICENSE; 1,357
(b) Standards for the approval of courses of study 1,359
required for licenses, or offered in preparation for license 1,360
examinations, or required as continuing education for licenses. 1,361
The rules shall specify that no standard for the approval of a 1,363
course of study required as continuing education for licensees
shall require that licensees pass an examination as a condition 1,364
for the successful completion of a continuing education 1,365
requirement. A person providing a continuing education course 1,366
may administer examinations for the purpose of evaluating the 1,367
effectiveness of the course.
(c) Guidelines to ensure that continuing education classes 1,370
are open to all persons licensed under this chapter. The rules 1,371
shall specify that an organization that sponsors a continuing 1,372
education class may offer its members a reasonable reduction in 1,373
the fees charged for the class. 1,374
(d) Requirements for trust accounts and property 1,376
management accounts. The rules shall specify that: 1,377
(i) Brokerages engaged in the management of property for 1,380
another may, pursuant to a written contract with the property 1,381
owner, exercise signatory authority for withdrawals from property 1,382
management accounts maintained in the name of the property owner. 1,383
The exercise of authority for withdrawals does not constitute a 1,384
32
violation of any provision of division (A) of section 4735.18 of 1,385
the Revised Code. 1,387
(ii) The interest earned on property management trust 1,390
accounts maintained in the name of the property owner or the
broker shall be payable to the property owner unless otherwise 1,391
specified in a written contract. 1,392
(e) Annual certificates of continuation in business NOTICE 1,394
OF RENEWAL FORMS and filing deadlines based on a staggered system 1,395
of renewal with deadlines distributed throughout the year; 1,397
(f) SPECIAL ASSESSMENTS UNDER DIVISION (A) OF SECTION 1,399
4735.12 OF THE REVISED CODE. 1,400
(B) The commission shall MAY adopt rules in accordance 1,402
with Chapter 119. of the Revised Code establishing standards and 1,404
guidelines with which the superintendent of real estate shall 1,405
comply in the exercise of the following powers: 1,406
(1) Appointment and recommendation of ancillary trustees 1,408
under section 4735.05 of the Revised Code; 1,409
(2) Rejection of names proposed to be used by 1,411
partnerships, associations, LIMITED LIABILITY COMPANIES, LIMITED 1,412
LIABILITY PARTNERSHIPS, and corporations, under division (A) of 1,414
section 4735.06 of the Revised Code;
(3) Acceptance and rejection of applications to take the 1,416
broker and salesperson examinations and licensure, with waiver of 1,418
examination APPROPRIATE WAIVERS PURSUANT TO DIVISION (E) OF 1,419
SECTION 4735.07 AND SECTION 4735.09 OF THE REVISED CODE, under
sections 4735.07 and 4735.09 of the Revised Code; 1,421
(4) Approval of applications of brokers to place their 1,423
licenses on deposit and to become salespersons under section 1,425
4735.13 of the Revised Code;
(5) Appointment of hearing examiners under section 119.09 1,427
of the Revised Code; 1,428
(6) Acceptance and rejection of applications to take the 1,430
foreign real estate dealer and salesperson examinations and 1,431
licensure, with waiver of examination, under sections 4735.27 and 1,432
33
4735.28 of the Revised Code; 1,433
(7) Qualification of foreign real estate under section 1,435
4735.25 of the Revised Code. 1,436
If at any time there is no rule in effect establishing a 1,438
guideline or standard required by this division, the 1,439
superintendent shall MAY adopt a rule in accordance with Chapter 1,440
119. of the Revised Code for such purpose. 1,441
(C) The commission or superintendent may hear testimony in 1,443
matters relating to the duties imposed upon them, and the 1,444
president of the commission and superintendent may administer 1,445
oaths. The commission or superintendent may require other proof 1,446
of the honesty, truthfulness, and good reputation of any person 1,447
named in an application for a real estate broker's or real estate 1,449
salesperson's license before admitting the applicant to the 1,450
examination or issuing a license. 1,451
Sec. 4735.11. The form and size of licenses issued under 1,460
this chapter shall be prescribed by the Ohio real estate 1,461
commission. Each BROKER'S OR FOREIGN REAL ESTATE DEALER'S 1,462
license shall show the name and address of the licensee, and in 1,463
the case of partnership, association, LIMITED LIABILITY COMPANY, 1,464
LIMITED LIABILITY PARTNERSHIP, and corporation licenses, the name 1,465
and address of each of the members or officers of the 1,466
partnership, association, LIMITED LIABILITY COMPANY, LIMITED 1,467
LIABILITY PARTNERSHIP, or corporation. A real estate salesman's 1,468
SALESPERSON'S license or a foreign real estate salesman's 1,469
SALESPERSON'S license shall show the name of the real estate 1,470
broker or foreign real estate dealer with whom he THE SALESPERSON 1,471
is or is to be associated. Each license shall be issued under 1,472
the seal prescribed in section 121.20 of the Revised Code and be 1,473
signed by the president of the commission and the superintendent 1,474
of real estate.
Sec. 4735.12. (A) The real estate recovery fund is hereby 1,483
created in the state treasury, to be administered by the 1,484
superintendent of real estate. Amounts collected by the 1,485
34
superintendent as prescribed in this section and interest earned 1,486
on the assets of the fund shall be credited by the treasurer of 1,487
state to the fund. The amount of money in the fund shall be 1,488
ascertained by the superintendent as of the first day of October 1,489
JULY of each year. If that amount is less than one million 1,491
dollars, the director of budget and management may, upon the 1,492
request of the superintendent, transfer from the real estate 1,493
operating fund to the real estate recovery fund such sum as will 1,494
bring the real estate recovery fund to that amount. 1,495
THE COMMISSION, IN ACCORDANCE WITH RULES ADOPTED UNDER 1,497
DIVISION (A)(2)(f) OF SECTION 4735.10 OF THE REVISED CODE, SHALL 1,498
IMPOSE A SPECIAL ASSESSMENT NOT TO EXCEED TEN DOLLARS ANNUALLY ON 1,499
EACH LICENSEE FILING A NOTICE OF RENEWAL UNDER SECTION 4735.14 OF 1,501
THE REVISED CODE IF THE AMOUNT AVAILABLE IN THE FUND IS LESS THAN
ONE MILLION DOLLARS ON THE FIRST DAY OF JULY PRECEDING THAT 1,502
FILING. THE COMMISSION MAY IMPOSE A SPECIAL ASSESSMENT NOT TO 1,503
EXCEED FIVE DOLLARS ANNUALLY IF THE AMOUNT AVAILABLE IN THE FUND 1,505
IS GREATER THAN ONE MILLION DOLLARS, BUT LESS THAN TWO MILLION
DOLLARS ON THE FIRST DAY OF JULY PRECEDING THAT FILING. THE 1,506
COMMISSION SHALL NOT IMPOSE A SPECIAL ASSESSMENT IF THE AMOUNT 1,507
AVAILABLE IN THE FUND EXCEEDS TWO MILLION DOLLARS ON THE FIRST 1,508
DAY OF JULY PRECEDING THAT FILING. 1,509
(B)(1) Any person who obtains a final judgment in any 1,511
court of competent jurisdiction against any broker or salesperson 1,512
licensed under this chapter, on the grounds of conduct that is in 1,513
violation of this chapter or the rules adopted under it, and that 1,514
is associated with an act or transaction of a broker or 1,515
salesperson THAT ONLY A LICENSED REAL ESTATE BROKER OR LICENSED 1,516
REAL ESTATE SALESPERSON IS AUTHORIZED TO PERFORM AS specified or 1,517
comprehended in division (A) or (C) of section 4735.01 of the 1,519
Revised Code, may file a verified application, as described in 1,520
division (B)(3) of this section, in any court of common pleas for 1,522
an order directing payment out of the real estate recovery fund 1,523
of the portion of the judgment that remains unpaid and that 1,524
35
represents the actual and direct loss sustained by the applicant. 1,525
(2) Punitive damages, ATTORNEY'S FEES, and interest on a 1,527
judgment are not recoverable from the fund. In the discretion of 1,529
the superintendent of real estate, attorney's fees and court 1,530
costs may be recovered from the fund, and, if the superintendent 1,531
authorizes the recovery of attorney's fees or court costs, the 1,532
order of the court of common pleas then may direct their payment 1,533
from the fund. 1,534
(3) The application shall specify the nature of the act or 1,536
transaction upon which the underlying judgment was based, the 1,537
activities of the applicant in pursuit of remedies available 1,538
under law for the collection of judgments, and the actual and 1,539
direct losses, attorney's fees, and the court costs sustained or 1,541
incurred by the applicant. The applicant shall attach to the
application a copy of each pleading and order in the underlying 1,542
court action. 1,543
(4) The court shall order the superintendent to make such 1,545
payments out of the fund when the person seeking the order has 1,546
shown all of the following: 1,547
(a) The person has obtained a judgment, as provided in 1,549
this division;
(b) All appeals from the judgment have been exhausted and 1,551
the person has given notice to the superintendent, as required by 1,553
division (C) of this section;
(c) The person is not a spouse of the judgment debtor, or 1,555
the personal representative of such spouse; 1,556
(d) The person has diligently pursued the person's 1,559
remedies against all the judgment debtors and all other persons 1,560
liable to the person in the transaction for which the person 1,561
seeks recovery from the fund; 1,562
(e) The person is making the person's application not more 1,564
than one year after termination of all proceedings, including 1,565
appeals, in connection with the judgment. 1,566
(5) Divisions (B)(1) to (4) of this section do not apply 1,568
36
to any of the following: 1,569
(a) Actions arising from property management accounts 1,571
maintained in the name of the property owner; 1,572
(b) A bonding company when it is not a principal in a real 1,574
estate transaction; 1,575
(c) A person in an action for the payment of a commission 1,578
or fee for the performance of an act or transaction specified or 1,579
comprehended in division (A) or (C) of section 4735.01 of the
Revised Code; 1,580
(d) Acts that occurred on or before March 4, 1975 LOSSES 1,582
INCURRED BY INVESTORS IN REAL ESTATE IF THE APPLICANT AND THE 1,583
LICENSEE ARE PRINCIPALS IN THE INVESTMENT. 1,584
(C) A person who applies to a court of common pleas for an 1,586
order directing payment out of the fund shall file notice of the 1,587
application with the superintendent. The superintendent may 1,588
defend any such action on behalf of the fund and shall have 1,589
recourse to all appropriate means of defense and review, 1,590
including examination of witnesses, VERIFICATION OF ACTUAL AND 1,591
DIRECT LOSSES, AND CHALLENGES TO THE UNDERLYING JUDGMENT REQUIRED 1,592
IN DIVISION (B)(4)(a) OF THIS SECTION TO DETERMINE WHETHER THE 1,594
UNDERLYING JUDGMENT IS BASED ON ACTIVITY ONLY A LICENSED BROKER
OR LICENSED SALESPERSON IS PERMITTED TO PERFORM. The 1,595
superintendent may move the court at any time to dismiss the 1,596
application when it appears there are no triable issues and the 1,597
application is without merit. The motion may be supported by 1,598
affidavit of any person having knowledge of the facts and may be 1,599
made on the basis that the application, including the judgment 1,600
referred to in it, does not form the basis for a meritorious 1,601
recovery claim; provided, that the superintendent shall give 1,602
written notice to the applicant at least ten days before such 1,603
motion. The superintendent may, subject to court approval, 1,604
compromise a claim based upon the application of an aggrieved 1,605
party. The superintendent shall not be bound by any prior 1,606
compromise or stipulation of the judgment debtor.
37
(D) Notwithstanding any other provision of this section, 1,608
the liability of the fund shall not exceed forty thousand dollars 1,609
for any one licensee. If a licensee LICENSEE'S LICENSE is 1,610
reinstated REACTIVATED as provided in division (E) of this 1,612
section, the liability of the fund for the licensee under this 1,613
section shall again be forty thousand dollars, but only for 1,614
transactions which THAT occur subsequent to the time of
reinstatement REACTIVATION. 1,615
If the forty-thousand-dollar liability of the fund is 1,617
insufficient to pay in full the valid claims of all aggrieved 1,618
persons by whom claims have been filed against any one licensee, 1,619
the forty thousand dollars shall be distributed among them in the 1,621
ratio that their respective claims bear to the aggregate of valid 1,622
claims or in such other manner as the court finds equitable. 1,623
Distribution of moneys shall be among the persons entitled to 1,624
share in it, without regard to the order of priority in which 1,625
their respective judgments may have been obtained or their claims 1,626
have been filed. Upon petition of the superintendent, the court 1,627
may require all claimants and prospective claimants against one 1,628
licensee to be joined in one action, to the end that the 1,629
respective rights of all such claimants to the fund may be 1,630
equitably adjudicated and settled.
(E) If the superintendent pays from the fund any amount in 1,632
settlement of a claim or toward satisfaction of a judgment 1,633
against a licensed broker or salesperson, the license of the 1,635
broker or salesperson shall be automatically suspended upon the
date of payment from the fund. No such broker or salesperson THE 1,636
SUPERINTENDENT shall be granted reinstatement NOT REACTIVATE THE 1,638
SUSPENDED LICENSE OF THAT BROKER OR SALESPERSON until the broker 1,639
or salesperson has repaid in full, plus interest per annum at the 1,641
rate specified in division (A) of section 1343.03 of the Revised 1,642
Code, the amount paid from the fund on his THE BROKER'S OR 1,643
SALESPERSON'S account. A discharge in bankruptcy does not 1,644
relieve a person from the suspension and requirements for
38
reinstatement REACTIVATION provided in this section UNLESS THE 1,646
UNDERLYING JUDGMENT HAS BEEN INCLUDED IN THE DISCHARGE AND HAS 1,647
NOT BEEN REAFFIRMED BY THE DEBTOR.
(F) Two dollars of each fee collected for a real estate 1,649
broker's license or a real estate salesperson's license, or for 1,652
the renewal of such licenses, may, as determined by the
superintendent, be credited to the fund, if the fund balance does 1,653
not exceed two million dollars. 1,654
If, at any time, the money deposited in the fund is 1,656
insufficient to satisfy any duly authorized claim or portion of a 1,657
claim, the superintendent shall, when sufficient money has been 1,658
deposited in the fund, satisfy such unpaid claims or portions, in 1,659
the order that such claims or portions were originally filed, 1,660
plus accumulated interest per annum at the rate specified in 1,661
division (A) of section 1343.03 of the Revised Code. 1,662
(G) When, upon the order of the court, the superintendent 1,664
has paid from the fund any sum to the judgment creditor, the 1,665
superintendent shall be subrogated to all of the rights of the 1,666
judgment creditor to the extent of the amount so paid, and the 1,667
judgment creditor shall assign all the judgment creditor's right, 1,668
title, and interest in the judgment to the superintendent to the 1,669
extent of the amount so paid. Any amount and interest so 1,670
recovered by the superintendent on the judgment shall be 1,671
deposited in the fund.
(H) Nothing contained in this section shall limit the 1,673
authority of the superintendent to take disciplinary action 1,674
against any licensee under other provisions of this chapter; nor 1,675
shall the repayment in full of all obligations to the fund by any 1,676
licensee nullify or modify the effect of any other disciplinary 1,677
proceeding brought pursuant to this chapter. 1,678
(I) The superintendent shall collect from the fund a 1,680
service fee in an amount equivalent to the interest rate 1,681
specified in division (A) of section 1343.03 of the Revised Code 1,682
multiplied by the annual interest earned on the assets of the 1,683
39
fund, to defray the expenses incurred in the administration of 1,684
the fund. 1,685
Sec. 4735.13. (A) The license of a real estate broker 1,694
shall be prominently displayed in the office or place of business 1,695
of the broker, and no license shall authorize the licensee to do 1,696
business except from the location specified in it. IF THE BROKER 1,698
MAINTAINS MORE THAN ONE PLACE OF BUSINESS WITHIN THE STATE, THE 1,699
BROKER SHALL APPLY FOR AND PROCURE A DUPLICATE LICENSE FOR EACH 1,700
BRANCH OFFICE MAINTAINED BY THE BROKER. EACH BRANCH OFFICE SHALL
BE IN THE CHARGE OF A LICENSED BROKER OR SALESPERSON. THE BRANCH 1,701
OFFICE LICENSE SHALL BE PROMINENTLY DISPLAYED AT THE BRANCH 1,702
OFFICE LOCATION. 1,703
(B) The license of each real estate salesman SALESPERSON 1,705
shall be mailed to and remain in the possession of the licensed 1,706
broker with whom he THE SALESPERSON is or is to be associated 1,707
until canceled THE LICENSEE PLACES THE LICENSE ON INACTIVE STATUS 1,708
or until the salesman leaves the broker SALESPERSON LEAVES THE 1,709
BROKERAGE OR IS TERMINATED. The broker shall keep each 1,711
salesman's SALESPERSON'S license in a way that it can, and shall 1,712
on request, be made immediately available for public inspection 1,714
at the office or place of business of the broker. Except as 1,715
provided in division (G) of this section, immediately upon the 1,716
SALESPERSON'S LEAVING THE ASSOCIATION OR termination of the 1,717
association of a real estate salesman SALESPERSON with the 1,718
broker, the broker shall return the salesman's SALESPERSON'S 1,719
license to the superintendent of real estate for cancellation. 1,720
THE FAILURE OF A BROKER TO RETURN THE LICENSE OF A REAL 1,722
ESTATE SALESPERSON WHO LEAVES OR WHO IS TERMINATED WITHIN THREE 1,723
BUSINESS DAYS OF THE RECEIPT OF A WRITTEN REQUEST FROM THE 1,724
SALESPERSON FOR THE RETURN OF THE LICENSE, WHEN A COPY OF THE 1,725
REQUEST ALSO IS FORWARDED TO THE SUPERINTENDENT, IS PRIMA FACIE 1,726
EVIDENCE OF MISCONDUCT UNDER DIVISION (A)(6) OF SECTION 4735.18 1,727
OF THE REVISED CODE.
(C) Any licensee who is convicted of a felony or a crime 1,729
40
involving moral turpitude or of violating any federal, state, or 1,730
municipal civil rights law pertaining to discrimination in 1,731
housing, or any court that issues a finding of an unlawful 1,732
discriminatory practice pertaining to housing accommodations 1,733
described in division (H) of section 4112.02 of the Revised Code 1,734
or that convicts a licensee of a violation of any municipal civil 1,735
rights law pertaining to housing discrimination, shall notify the 1,736
superintendent of the conviction or finding within fifteen days. 1,737
If a licensee fails to notify the superintendent within the 1,738
required time, the superintendent immediately may revoke the 1,739
license of the licensee. 1,740
Any court that convicts a licensee of a violation of any 1,742
municipal civil rights law pertaining to housing discrimination 1,743
also shall notify the Ohio civil rights commission within fifteen 1,744
days of the conviction. 1,745
(D) In case of any change of business location, a broker 1,747
shall give a notice in writing to the superintendent, whereupon 1,748
the superintendent shall issue new licenses for the unexpired 1,749
period without charge. A IF A broker who changes a business 1,751
location without giving the REQUIRED notice and without the 1,752
issuance of the RECEIVING new licenses is guilty of misconduct 1,754
THAT ACTION IS PRIMA FACIE EVIDENCE OF MISCONDUCT under division 1,755
(A)(6) of section 4735.18 of the Revised Code. 1,756
(E) If a real estate broker desires to associate himself 1,758
with another real estate broker in the capacity of a real estate 1,759
salesman SALESPERSON, he THE BROKER shall apply to the 1,761
superintendent to deposit his THE BROKER'S real estate broker's 1,762
license with the superintendent and for the issuance of a real 1,763
estate salesman's SALESPERSON'S license. The application shall 1,764
be made on a form prescribed by the superintendent and shall be 1,765
accompanied by the recommendation of the real estate broker with 1,766
whom the applicant intends to become associated, a fee of 1,767
thirteen dollars to cover the expenses of the superintendent in 1,769
holding the applicant's real estate broker's license, and a fee 1,770
41
of twenty-five dollars for the real estate salesman's 1,771
SALESPERSON'S license. Four dollars of each THE fee shall be 1,773
credited to the real estate education and research fund. If the 1,774
superintendent is satisfied that the applicant is honest, 1,775
truthful, and of good reputation, has not been convicted of a 1,776
felony or a crime involving moral turpitude, and has not been 1,777
finally adjudged by a court to have violated any municipal, 1,778
state, or federal civil rights laws relevant to the protection of 1,779
purchasers or sellers of real estate, and that the association of 1,780
the real estate broker and the applicant will be in the public 1,781
interest, the superintendent shall grant the application and 1,782
issue a real estate salesman's SALESPERSON'S license to him THE 1,783
APPLICANT. Any license so deposited with the superintendent 1,784
shall be subject to this chapter. On or before the first day of 1,785
November of each year, a A broker who intends to deposit his THE 1,787
BROKER'S license with the superintendent, as provided in this 1,788
section, shall give written notice of this fact IN A FORMAT 1,789
PRESCRIBED BY THE SUPERINTENDENT to all salesmen SALESPERSONS 1,791
associated with him THE BROKER WHEN APPLYING TO PLACE THE 1,792
BROKER'S LICENSE ON DEPOSIT.
(F) If a real estate broker desires to become a member or 1,794
officer of a partnership, association, LIMITED LIABILITY COMPANY, 1,795
LIMITED LIABILITY PARTNERSHIP, or corporation that is or intends 1,797
to become a licensed real estate broker, he THE BROKER shall 1,798
notify the superintendent of his THE BROKER'S intentions. The 1,799
notice of intention shall be on a form prescribed by the
superintendent and shall be accompanied by a fee of twenty-five 1,801
dollars. Four dollars of the fee shall be credited to the real 1,802
estate education and research fund. 1,803
No real estate broker who is a member or officer of a 1,805
partnership, association, LIMITED LIABILITY COMPANY, LIMITED 1,806
LIABILITY PARTNERSHIP, or corporation that is a licensed real 1,807
estate broker shall perform any acts as a real estate broker 1,808
other than as the agent of the partnership, association, LIMITED 1,809
42
LIABILITY COMPANY, LIMITED LIABILITY PARTNERSHIP, or corporation, 1,811
and he SUCH BROKER shall not have any real estate salesmen 1,812
SALESPERSONS associated with him THE BROKER. 1,813
(G) If a real estate broker or salesman SALESPERSON enters 1,815
the armed forces, he THE BROKER OR SALESPERSON may place his THE 1,817
BROKER'S OR SALESPERSON'S license on deposit with the Ohio real
estate commission until six months after his discharge from the 1,818
armed services. The licensee shall pay a fee of seven dollars to 1,819
cover the expense of the commission in holding the existing 1,820
license NOT BE REQUIRED TO RENEW THE LICENSE ANNUALLY UNTIL THE 1,821
RENEWAL DATE THAT FOLLOWS THE DATE OF DISCHARGE FROM THE ARMED 1,822
SERVICES. Any license deposited with the commission shall be 1,823
subject to this chapter. Any licensee whose license is on 1,824
deposit under this division and who fails to meet the continuing 1,825
education requirements of section 4735.141 of the Revised Code 1,826
because he THE LICENSEE is in the armed forces shall satisfy the 1,827
commission that he THE LICENSEE has complied with the continuing 1,828
education requirements within twelve months of his THE LICENSEE'S 1,830
discharge. The commission shall notify the licensee of his THE 1,832
LICENSEE'S obligations under section 4735.141 of the Revised Code 1,833
at the time he THE LICENSEE applies for release REACTIVATION of 1,834
his THE LICENSEE'S license. 1,835
Sec. 4735.14. (A) Each license issued under this chapter, 1,844
shall be valid without further recommendation or examination 1,845
until canceled PLACED IN AN INACTIVE STATUS, revoked, suspended, 1,846
or such license expires by operation of law. 1,847
(B) Each licensed broker, brokerage, or salesperson shall 1,849
file, on or before the date the Ohio real estate commission has 1,851
adopted by rule for that licensee in accordance with division 1,852
(A)(2)(e) of section 4735.10 of the Revised Code, a certificate 1,853
of continuation in business NOTICE OF RENEWAL on a form 1,854
prescribed by the superintendent of real estate. THE LICENSEE 1,855
SHALL INDICATE ON THE FORM WHETHER THE LICENSEE WISHES TO 1,856
MAINTAIN THE LICENSEE'S LICENSE IN AN ACTIVE OR INACTIVE STATUS. 1,857
43
The certificate of continuation in business NOTICE OF RENEWAL 1,858
shall be mailed by the superintendent to the MOST CURRENT 1,860
personal residence ADDRESS of each broker or salesperson AS FILED 1,861
WITH THE SUPERINTENDENT BY THE LICENSEE and the place of business 1,862
ADDRESS of the brokerage two months prior to the filing deadline. 1,863
(C) The license of any real estate broker, brokerage, or 1,866
salesperson that fails to file a certificate of continuation 1,867
NOTICE OF RENEWAL on or before the filing deadline of each 1,868
ensuing year shall be canceled SUSPENDED AUTOMATICALLY WITHOUT 1,870
THE TAKING OF ANY ACTION BY THE SUPERINTENDENT. A canceled 1,871
SUSPENDED license may be reactivated within one year TWELVE 1,872
MONTHS of cancellation THE DATE OF SUSPENSION, provided that the 1,873
renewal fee plus a penalty fee of fifty per cent of the renewal 1,875
fee is paid to the superintendent. Failure to reactivate the 1,876
license as provided in this division shall result in AUTOMATIC
revocation of the license WITHOUT THE TAKING OF ANY ACTION BY THE 1,878
SUPERINTENDENT. No person, partnership, association, 1,879
corporation, limited liability company, or limited partnership 1,880
shall engage in any act or acts for which a real estate license 1,881
is required while that entity's license is canceled PLACED IN AN 1,882
INACTIVE STATUS, SUSPENDED, or revoked. THE COMMISSION SHALL 1,883
ADOPT RULES IN ACCORDANCE WITH CHAPTER 119. OF THE REVISED CODE
TO PROVIDE TO LICENSEES NOTICE OF SUSPENSION OR REVOCATION OR 1,884
BOTH.
(D) EACH LICENSEE SHALL NOTIFY THE COMMISSION OF A CHANGE 1,886
IN PERSONAL RESIDENCE ADDRESS. A LICENSEE'S FAILURE TO NOTIFY 1,887
THE COMMISSION OF A CHANGE IN PERSONAL RESIDENCE ADDRESS DOES NOT 1,888
NEGATE THE REQUIREMENT TO FILE THE LICENSE RENEWAL BY THE 1,889
REQUIRED DEADLINE ESTABLISHED BY THE COMMISSION BY RULE UNDER 1,890
DIVISION (A)(2)(e) OF SECTION 4735.10 OF THE REVISED CODE. 1,892
(E) THE SUPERINTENDENT SHALL NOT RENEW A LICENSE IF THE 1,894
LICENSEE IS NOT IN COMPLIANCE WITH THIS CHAPTER. 1,896
Sec. 4735.141. (A) Except as otherwise provided in this 1,905
division, each person licensed under section 4735.07 or 4735.09 1,906
44
of the Revised Code shall submit proof satisfactory to the 1,907
superintendent of real estate that the licensee has 1,908
satisfactorily completed thirty classroom hours of continuing 1,909
education, as prescribed by the Ohio real estate commission
pursuant to section 4735.10 of the Revised Code, on or before the 1,910
licensee's birthday occurring three years after the licensee's 1,911
date of initial licensure, and on or before the licensee's 1,912
birthday every three years thereafter.
Persons licensed as real estate salespersons who 1,915
subsequently become licensed real estate brokers shall continue 1,916
to submit proof of continuing education in accordance with the 1,917
time period established in this section.
The requirements of this section shall not apply to any 1,921
physically handicapped licensee as provided in division (E) of
this section. 1,922
Each licensee who is seventy years of age or older on June 1,925
13, 1996 June 13, 1996 June 14, 1999, shall submit, on or before 1,926
the licensee's birthday occurring three years after the effective 1,927
date of this amendment SECTION, and on or before the licensee's 1,929
birthday every three years thereafter, proof satisfactory to the 1,930
superintendent of real esate ESTATE that the licensee has 1,932
satisfactorily completed June 13, 1996 a total of nine classroom 1,934
hours of continuing education, including instruction in Ohio real 1,935
estate law; recently enacted state and federal laws affecting the 1,936
real estate industry; municipal, state, and federal civil rights 1,938
law; and canons of ethics for the real estate industry as adopted 1,939
by the commission. A LICENSEE WHO IS SEVENTY YEARS OF AGE OR
OLDER WHOSE LICENSE IS IN AN INACTIVE STATUS IS EXEMPT FROM THE 1,940
CONTINUING EDUCATION REQUIREMENTS SPECIFIED IN THIS SECTION. The 1,941
commission shall adopt reasonable rules in accordance with 1,944
Chapter 119. of the Revised Code to carry out the purposes of 1,945
this paragraph.
A person providing any course of continuing education may 1,947
administer examinations to licensees for the purpose of 1,948
45
evaluating the effectiveness of the course, but passage of an 1,949
examination by a licensee shall not be a condition for successful 1,950
completion of the continuing education requirements of this 1,951
section. 1,952
(B) The continuing education requirements of this section 1,954
shall be completed in schools, seminars, and educational 1,955
institutions approved by the commission. Such approval shall be 1,956
given according to rules established by the commission under the 1,957
procedures of Chapter 119. of the Revised Code, and shall not be 1,958
limited to institutions providing two-year or four-year degrees. 1,959
Each school, seminar, or educational institution approved under 1,960
this division shall be open to all licensees on an equal basis. 1,961
(C) If the requirements of this section are not met by a 1,963
licensee within the period specified, the licensee's license 1,964
shall be suspended automatically without the taking of any action 1,965
by the superintendent. The superintendent shall notify the 1,966
licensee of the license suspension. Any license so suspended 1,967
shall remain suspended until it is reactivated by the 1,968
superintendent. No such license shall be reactivated until it is 1,970
established, to the satisfaction of the superintendent, that the 1,972
requirements of this section have been met. If the requirements 1,973
of this section are not met within one year TWELVE MONTHS from 1,974
the date the license was suspended, the license shall be revoked 1,977
automatically without the taking of any action by the commission. 1,978
A person whose license has been revoked and whose revoked license 1,979
was issued prior to January 1, 1980, may have the person's 1,980
license reactivated by the superintendent at any time after it 1,982
has been revoked upon submitting proof satisfactory to the 1,983
superintendent that the person has satisfactorily completed 1,984
during the period since the revocation of the person's license 1,985
thirty classroom hours of continuing education as prescribed by 1,986
the commission pursuant to section 4735.10 of the Revised Code. 1,987
Upon reactivation of the person's license, the licensee shall 1,989
comply with the educational requirements of division (A) of this 1,990
46
section.
(D) If the license of a real estate broker is suspended 1,992
pursuant to division (C) of this section, the license of a real 1,994
estate salesperson associated with that broker correspondingly is 1,996
suspended pursuant to division (B) of section 4735.20 of the 1,997
Revised Code. However, the suspended license of the associated 1,998
real estate salesperson shall be reactivated and no fee shall be 2,001
charged or collected for that reactivation if all of the 2,004
following occur: 2,005
(1) That broker subsequently submits proof to the 2,007
superintendent that the broker has complied with the requirements 2,008
of this section and requests that the broker's license as a real 2,009
estate broker be reactivated. 2,010
(2) The superintendent then reactivates the broker's 2,012
license as a real estate broker. 2,014
(3) The associated real estate salesperson intends to 2,016
continue to be associated with that broker, has complied with the 2,017
requirements of this section, and otherwise is in compliance with 2,018
this chapter. 2,019
Any person whose license is reactivated pursuant to this 2,021
division shall submit proof satisfactory to the superintendent 2,022
that the person has completed thirty hours of continuing 2,023
education, as prescribed by the Ohio real estate commission, on 2,024
or before the third year following the licensee's birthday 2,025
occurring immediately after reactivation. 2,026
(E) Any licensee who is a physically handicapped licensee 2,028
at any time during the last three months of the third year of the 2,029
licensee's continuing education reporting period may receive an 2,030
extension of time to submit proof to the superintendent that the 2,031
licensee has satisfactorily completed the required thirty hours 2,032
of continuing education. To receive an extension of time, the 2,033
licensee shall submit a request to the division of real estate 2,034
for the extension and proof satisfactory to the commission that 2,035
the licensee was a physically handicapped licensee at some time 2,036
47
during the last three months of the three-year reporting period. 2,037
The proof shall include, but is not limited to, a signed 2,038
statement by the licensee's attending physician describing the 2,039
physical disability, certifying that the licensee's disability is 2,040
of such a nature as to prevent the licensee from attending any 2,041
classroom instruction lasting at least three hours in duration, 2,042
and stating the expected duration of the physical disability. 2,043
The licensee shall request the extension and provide the 2,044
physician's statement to the division no later than one month
prior to the end of the licensee's three-year continuing 2,045
education reporting period, unless the physical disability did 2,046
not arise until the last month of the three-year reporting 2,047
period, in which event the licensee shall request the extension 2,048
and provide the physician's statement as soon as practical after 2,049
the occurrence of the physical disability. A licensee granted an 2,050
extension pursuant to this division who is no longer a physically 2,051
handicapped licensee and who submits proof of completion of the 2,052
continuing education during the extension period, shall submit, 2,053
for future continuing education reporting periods, proof of 2,054
completion of the continuing education requirements according to 2,055
the schedule established in division (A) of this section. 2,056
Sec. 4735.15. The fees for branch office licenses, 2,065
transfers, certificates of continuation in business ANNUAL 2,066
RENEWALS, late filings, and foreign real estate dealer and 2,068
salesman SALESPERSON licenses shall be as follows: 2,069
(A) Branch office license, eight dollars; 2,071
(B) Transfer REACTIVATION OR TRANSFER of a broker's 2,073
license into or out of a partnership, association, LIMITED 2,076
LIABILITY COMPANY, LIMITED LIABILITY PARTNERSHIP, or corporation 2,077
or from one partnership, association, LIMITED LIABILITY COMPANY, 2,079
LIMITED LIABILITY PARTNERSHIP, or corporation to another 2,080
partnership, association, LIMITED LIABILITY COMPANY, LIMITED 2,081
LIABILITY PARTNERSHIP, or corporation, twenty-five dollars. An 2,082
application for such transfer shall be made to the superintendent 2,084
48
of real estate on forms provided by the superintendent. 2,085
(C) Transfer REACTIVATION OR TRANSFER of a license by a 2,087
real estate salesman SALESPERSON, twenty dollars; 2,089
(D) Certificate of continuation in the business ANNUAL 2,091
RENEWAL of A real estate broker BROKER'S LICENSE, forty-nine 2,093
dollars. If the licensee is a partnership, association, LIMITED 2,096
LIABILITY COMPANY, LIMITED LIABILITY PARTNERSHIP, or corporation, 2,097
the full broker's continuation RENEWAL fee shall be required for 2,098
each member of such partnership, association, LIMITED LIABILITY 2,101
COMPANY, LIMITED LIABILITY PARTNERSHIP, or corporation that is a 2,102
real estate broker. If the real estate broker has not less than 2,104
eleven nor more than twenty real estate salesmen SALESPERSONS 2,105
associated with him THE BROKER, an additional fee of sixty-four 2,107
dollars shall be assessed to the brokerage. For every additional 2,108
ten real estate salesmen SALESPERSONS or fraction of that number, 2,109
the brokerage assessment fee shall be increased in the amount of 2,112
thirty-seven dollars. 2,113
(E) Certificate of continuation in business ANNUAL RENEWAL 2,115
of real estate salesman SALESPERSON'S LICENSE, thirty-nine 2,117
dollars;
(F) Certificate of continuation in the business ANNUAL 2,119
RENEWAL of A real estate broker BROKER'S or salesman 2,121
SALESPERSON'S LICENSE filed within fifteen days TWELVE MONTHS 2,122
after the thirty-first day of December LICENSEE'S RENEWAL DATE, 2,123
an additional late filing penalty of fifty per cent of the 2,125
required fee.;
(G) Foreign real estate dealer's license and each annual 2,127
renewal of the license, thirty dollars per salesman SALESPERSON 2,128
employed by the dealer, but not less than one hundred fifty 2,130
dollars;
(H) Foreign real estate salesman's SALESPERSON'S license 2,132
and each annual renewal of the license, fifty dollars. 2,133
All fees collected under this section shall be paid to the 2,135
treasurer of state. Four dollars of each such fee shall be 2,137
49
credited to the real estate education and research fund. 2,138
In all cases, the fee and any penalty shall accompany the 2,140
application for THE license or, LICENSE transfer, OR LICENSE 2,142
REACTIVATION or shall accompany the filing of the certificate of 2,143
continuation in business ANNUAL RENEWAL.
The commission may establish by rule reasonable fees for 2,145
services not otherwise established by this chapter. 2,146
Sec. 4735.16. (A) Every real estate broker licensed under 2,155
this chapter shall have and maintain a definite place of business 2,156
in this state and shall erect or maintain a sign on the premises 2,157
plainly stating that the licensee is a real estate broker. If 2,158
the real estate broker maintains one or more branch offices, the 2,159
real estate broker shall erect or maintain a sign at each branch 2,160
office plainly stating that the licensee is a real estate broker. 2,161
(B)(1) Any licensed real estate broker or salesperson who 2,163
advertises to buy, sell, exchange, or lease real estate, OR TO 2,164
ENGAGE IN ANY ACT REGULATED BY THIS CHAPTER, including, but not 2,165
limited to, any licensed real estate broker or salesperson who 2,167
advertises to sell, exchange, or lease real estate that the 2,169
licensee owns, shall be identified in the advertisement by name 2,170
and by indicating that the licensee is a real estate broker or 2,172
real estate salesperson. Except a real estate salesperson who 2,174
advertises the sale, exchange, or lease of real estate that the 2,175
salesperson owns and that is not listed for sale, exchange, or 2,176
lease with a real estate broker, any real estate salesperson who 2,177
advertises, as provided in this section, also shall indicate in 2,179
the advertisement the name of the broker under whom the 2,181
salesperson is licensed and the fact that the salesperson's 2,182
broker is a real estate broker. The name of the broker shall be 2,183
displayed in equal prominence with the name of the salesperson in 2,184
the advertisement. 2,185
Any (2) IF ANY real estate broker or real estate 2,187
salesperson who advertises in a manner other than as provided in 2,189
this section is guilty of violating OR THE RULES ADOPTED UNDER 2,190
50
THIS SECTION, THAT ADVERTISEMENT IS PRIMA FACIE EVIDENCE OF A 2,191
VIOLATION UNDER division (A)(21) of section 4735.18 of the 2,192
Revised Code. 2,193
WHEN THE SUPERINTENDENT DETERMINES THAT PRIMA FACIE 2,195
EVIDENCE OF A VIOLATION OF DIVISION (A)(21) OF SECTION 4735.18 OF 2,197
THE REVISED CODE OR ANY OF THE RULES ADOPTED THEREUNDER EXISTS, 2,198
THE SUPERINTENDENT MAY DO EITHER OF THE FOLLOWING: 2,199
(a) INITIATE DISCIPLINARY ACTION UNDER SECTION 4735.051 OF 2,201
THE REVISED CODE FOR A VIOLATION OF DIVISION (A)(21) OF SECTION 2,203
4735.18 OF THE REVISED CODE, IN ACCORDANCE WITH CHAPTER 119. OF 2,204
THE REVISED CODE; 2,205
(b) PERSONALLY, OR BY CERTIFIED MAIL, SERVE A CITATION 2,207
UPON THE LICENSEE. 2,208
(C)(1) EVERY CITATION SERVED UNDER THIS SECTION SHALL GIVE 2,210
NOTICE TO THE LICENSEE OF THE ALLEGED VIOLATION OR VIOLATIONS 2,212
CHARGED AND INFORM THE LICENSEE OF THE OPPORTUNITY TO REQUEST A 2,213
HEARING IN ACCORDANCE WITH CHAPTER 119. OF THE REVISED CODE. THE 2,214
CITATION ALSO SHALL CONTAIN A STATEMENT OF A FINE OF TWO HUNDRED 2,216
DOLLARS PER VIOLATION, NOT TO EXCEED TWO THOUSAND FIVE HUNDRED 2,217
DOLLARS PER CITATION. ALL FINES COLLECTED PURSUANT TO THIS 2,218
SECTION SHALL BE CREDITED TO THE REAL ESTATE RECOVERY FUND, 2,219
CREATED IN THE STATE TREASURY UNDER SECTION 4735.12 OF THE 2,220
REVISED CODE.
(2) IF ANY LICENSEE IS CITED THREE TIMES WITHIN TWELVE 2,222
CONSECUTIVE MONTHS, THE SUPERINTENDENT SHALL INITIATE 2,223
DISCIPLINARY ACTION PURSUANT TO SECTION 4735.051 OF THE REVISED 2,224
CODE FOR ANY SUBSEQUENT VIOLATION THAT OCCURS WITHIN THE SAME 2,225
TWELVE-MONTH PERIOD. 2,226
(3) IF A LICENSEE FAILS TO REQUEST A HEARING WITHIN THIRTY 2,228
DAYS OF THE DATE OF SERVICE OF THE CITATION, OR THE LICENSEE AND 2,229
THE SUPERINTENDENT FAIL TO REACH AN ALTERNATIVE AGREEMENT, THE 2,230
CITATION SHALL BECOME FINAL. 2,231
(4) UNLESS OTHERWISE INDICATED, THE LICENSEE NAMED IN A 2,233
FINAL CITATION MUST MEET ALL REQUIREMENTS CONTAINED IN THE FINAL 2,234
51
CITATION WITHIN THIRTY DAYS OF THE EFFECTIVE DATE OF THAT 2,235
CITATION.
(5) THE SUPERINTENDENT SHALL SUSPEND AUTOMATICALLY A 2,237
LICENSEE'S LICENSE IF THE LICENSEE FAILS TO COMPLY WITH DIVISION 2,238
(C)(4) OF THIS SECTION. 2,239
(D) A real estate broker or salesperson obtaining the 2,241
signature of a party to a listing or other agreement involved in 2,242
a real estate transaction shall furnish a copy of the listing or 2,243
other agreement to the party immediately after obtaining the 2,244
party's signature. Every broker's office shall prominently 2,245
display in the same immediate area as licenses are displayed a 2,246
statement that it is illegal to discriminate against any person 2,247
because of race, color, religion, sex, familial status as defined 2,248
in section 4112.01 of the Revised Code, national origin, 2,249
disability as defined in that section, or ancestry in the sale or 2,251
rental of housing or residential lots, in advertising the sale or 2,252
rental of housing, in the financing of housing, or in the 2,253
provision of real estate brokerage services and that blockbusting 2,254
also is illegal. The statement shall bear the United States 2,255
department of housing and urban development equal housing logo, 2,256
shall contain the information that the broker and the broker's 2,257
salespersons are licensed by the division of real estate and that 2,258
the division can assist with any consumer complaints or 2,259
inquiries, and shall explain the provisions of section 4735.12 of 2,261
the Revised Code. The statement shall provide the division's 2,262
address and telephone number. The Ohio real estate commission 2,263
shall provide by rule for the wording and size of the statement. 2,264
The pamphlet required under section 4735.03 of the Revised Code 2,265
shall contain the same statement that is required on the 2,266
statement displayed as provided in this section and shall be made 2,267
available by real estate brokers and salespersons to their 2,268
clients. The commission shall provide the wording and size of 2,269
the pamphlet.
Sec. 4735.18. (A) Subject to section 4735.32 of the 2,279
52
Revised Code, the superintendent of real estate, upon the 2,280
superintendent's own motion, may investigate the conduct of any 2,281
licensee. Subject to section 4735.32 of the Revised Code, the 2,282
Ohio real estate commission shall, pursuant to section 4735.051 2,283
of the Revised Code, impose disciplinary sanctions upon any 2,284
licensee who, whether or not acting in the licensee's capacity as 2,285
a real estate broker or salesperson, or in handling the
licensee's own property, is found to have been convicted of a 2,287
felony or a crime of moral turpitude, and shall, pursuant to
section 4735.051 of the Revised Code, impose disciplinary 2,288
sanctions upon any licensee who, in the licensee's capacity as a 2,289
real estate broker or salesperson, or in handling the licensee's 2,290
own property, is found guilty of: 2,291
(1) Knowingly making any misrepresentation; 2,293
(2) Making any false promises with intent to influence, 2,295
persuade, or induce; 2,296
(3) A continued course of misrepresentation or the making 2,298
of false promises through agents, salespersons, advertising, or 2,299
otherwise;
(4) Acting for more than one party in a transaction except 2,302
as permitted by and in compliance with section 4735.71 of the
Revised Code; 2,303
(5) Failure within a reasonable time to account for or to 2,305
remit any money coming into the licensee's possession which 2,306
belongs to others; 2,307
(6) Dishonest or illegal dealing, gross negligence, 2,309
incompetency, or misconduct; 2,310
(7)(a) By final adjudication by a court, a violation of 2,312
any municipal or federal civil rights law relevant to the 2,313
protection of purchasers or sellers of real estate or, by final 2,314
adjudication by a court, any unlawful discriminatory practice 2,315
pertaining to the purchase or sale of real estate prohibited by 2,316
Chapter 4112. of the Revised Code, provided that such violation 2,317
arose out of a situation wherein parties were engaged in bona 2,318
53
fide efforts to purchase, sell, or lease real estate, in the 2,319
licensee's practice as a licensed real estate broker or 2,320
salesperson;
(b) A second or subsequent violation of any unlawful 2,322
discriminatory practice pertaining to the purchase or sale of 2,323
real estate prohibited by Chapter 4112. of the Revised Code or 2,324
any second or subsequent violation of municipal or federal civil 2,325
rights laws relevant to purchasing or selling real estate whether 2,326
or not there has been a final adjudication by a court, provided 2,327
that such violation arose out of a situation wherein parties were 2,328
engaged in bona fide efforts to purchase, sell, or lease real 2,329
estate. For any second offense under this division, the 2,330
commission shall suspend for a minimum of two months or revoke 2,331
the license of the broker or salesperson. For any subsequent 2,332
offense, the commission shall revoke the license of the broker or 2,333
salesperson. 2,334
(8) Procuring a license under this chapter, for the 2,336
licensee or any salesperson by fraud, misrepresentation, or 2,337
deceit;
(9) Having violated or failed to comply with any provision 2,339
of sections 4735.51 to 4735.74 of the Revised Code or having 2,340
willfully disregarded or violated any other provisions of this 2,341
chapter;
(10) As a real estate broker, having demanded, without 2,343
reasonable cause, other than from a broker licensed under this 2,346
chapter, a commission to which the licensee is not entitled, or, 2,347
as a real estate salesperson, having demanded, without reasonable 2,350
cause, a commission to which the licensee is not entitled;
(11) Having paid commissions or fees to, or divided 2,352
commissions or fees with, anyone not licensed as a real estate 2,353
broker or salesperson; 2,354
(12) Having falsely represented membership in any real 2,356
estate professional association of which the licensee is not a 2,357
member; 2,358
54
(13) Having accepted, given, or charged any undisclosed 2,360
commission, rebate, or direct profit on expenditures made for a 2,361
principal; 2,362
(14) Having offered anything of value other than the 2,364
consideration recited in the sales contract as an inducement to a 2,365
person to enter into a contract for the purchase or sale of real 2,366
estate or having offered real estate or the improvements on real 2,367
estate as a prize in a lottery or scheme of chance; 2,368
(15) Having acted in the dual capacity of real estate 2,370
broker and undisclosed principal, or real estate salesperson and 2,372
undisclosed principal, in any transaction;
(16) Having guaranteed, authorized, or permitted any 2,374
person to guarantee future profits which may result from the 2,375
resale of real property or cemetery interment rights; 2,376
(17) Having placed a sign on any property offering it for 2,378
sale or for rent without the consent of the owner or the owner's 2,379
authorized agent; 2,380
(18) Having induced any party to a contract of sale or 2,382
lease to break such contract for the purpose of substituting in 2,383
lieu of it a new contract with another principal; 2,384
(19) Having negotiated the sale, exchange, or lease of any 2,386
real property directly with an owner, purchaser, lessor, or 2,387
tenant knowing that such owner, purchaser, lessor, or tenant had 2,388
a written outstanding contract granting exclusive agency in 2,389
connection with such property to another real estate broker; 2,390
(20) Having offered real property for sale or for lease 2,392
without the knowledge and consent of the owner or the owner's 2,393
authorized agent, or on any terms other than those authorized by 2,394
the owner or the owner's authorized agent; 2,395
(21) Having published advertising, whether printed, radio, 2,397
display, or of any other nature, which was misleading or 2,398
inaccurate in any material particular, or in any way having 2,399
misrepresented any properties, terms, values, policies, or 2,400
services of the business conducted; 2,401
55
(22) Having knowingly withheld from or inserted in any 2,403
statement of account or invoice any statement that made it 2,404
inaccurate in any material particular; 2,405
(23) Having published or circulated unjustified or 2,407
unwarranted threats of legal proceedings which tended to or had 2,408
the effect of harassing competitors or intimidating their 2,409
customers; 2,410
(24) Having failed to keep complete and accurate records 2,412
of all transactions for a period of three years from the date of 2,413
the transaction, such records to include copies of listing forms, 2,414
earnest money receipts, offers to purchase and acceptances of 2,415
them, and records of receipts and disbursements of all funds 2,416
received by the licensee as broker and incident to the licensee's 2,417
transactions as such, and any other instruments or papers related 2,419
to the performance of any of the acts set forth in the definition 2,420
of a real estate broker; 2,421
(25) Failure of a real estate broker or salesperson to 2,423
furnish all parties involved in a real estate transaction true 2,424
copies of all listings and other agreements to which they are a 2,425
party, at the time each party signs them; 2,426
(26) Failure to maintain at all times a special or trust 2,428
bank account in a depository located in this state. The account 2,429
shall be noninterest-bearing, separate and distinct from any 2,430
personal or other account of the broker, and, except as provided 2,432
in division (A)(27) of this section, shall be used for the
deposit and maintenance of all escrow funds, security deposits, 2,433
and other moneys received by the broker in a fiduciary capacity. 2,434
The name, account number, if any, and location of the depository 2,435
wherein such special or trust account is maintained shall be 2,436
submitted in writing to the superintendent. Checks drawn on such 2,437
special or trust bank accounts are deemed to meet the conditions 2,438
imposed by section 1349.21 of the Revised Code.
(27) Failure to maintain at all times a special or trust 2,440
bank account in a depository in this state, to be used 2,441
56
exclusively for the deposit and maintenance of all rents, 2,442
security deposits, escrow funds, and other moneys received by the 2,443
broker in a fiduciary capacity in the course of managing real
property. This account shall be separate and distinct from any 2,444
other account maintained by the broker. The name, account 2,445
number, and location of the depository shall be submitted in 2,446
writing to the superintendent. This account may earn interest, 2,447
which shall be paid to the property owners on a pro rata basis. 2,448
Division (A)(27) of this section does not apply to brokers 2,450
who are not engaged in the management of real property on behalf 2,451
of real property owners. 2,452
(28) Having failed to put definite expiration dates in all 2,454
written agency agreements to which the broker is a party; 2,455
(29) Having an unsatisfied final judgment in any court of 2,457
record against the licensee arising out of the licensee's conduct 2,459
as a licensed broker or salesperson;
(30) Failing to render promptly upon demand a full and 2,461
complete statement of the expenditures by the broker or 2,462
salesperson of funds advanced by or on behalf of a party to a 2,463
real estate transaction to the broker or salesperson for the 2,464
purpose of performing duties as a licensee under this chapter in 2,465
conjunction with the real estate transaction; 2,466
(31) Failure within a reasonable time, after the receipt 2,468
of the commission by the broker, to render an accounting to and 2,469
pay a real estate salesperson the salesperson's earned share of 2,470
it;
(32) Failure to notify the real estate salesperson that 2,472
the licensee does not intend to list such salesperson on the 2,473
continuation in business form; 2,474
(33) Performing any service for another constituting the 2,476
practice of law, as determined by any court of law; 2,477
(34)(33) Having been adjudicated incompetent for the 2,479
purpose of holding the license by a court, as provided in section 2,480
5122.301 of the Revised Code. A license revoked or suspended 2,481
57
under this division shall be reinstated REACTIVATED upon proof to 2,483
the commission of the removal of the disability.
(35)(34) Having authorized or permitted a person to act as 2,485
an agent in the capacity of a real estate broker, or a real 2,486
estate salesperson, who was not then licensed as a real estate 2,487
broker or real estate salesperson under this chapter; 2,488
(35) HAVING KNOWINGLY INSERTED OR PARTICIPATED IN 2,490
INSERTING ANY MATERIALLY INACCURATE TERM IN A DOCUMENT, INCLUDING 2,491
NAMING A FALSE CONSIDERATION;
(36) HAVING FAILED TO INFORM THE LICENSEE'S CLIENT OF THE 2,493
EXISTENCE OF AN OFFER OR COUNTER OFFER OR HAVING FAILED TO 2,494
PRESENT AN OFFER OR COUNTER OFFER IN A TIMELY MANNER, UNLESS 2,495
OTHERWISE INSTRUCTED BY THE CLIENT, PROVIDED THE INSTRUCTION OF 2,496
THE CLIENT DOES NOT CONFLICT WITH ANY STATE OR FEDERAL LAW.
(B) Whenever the commission, pursuant to section 4735.051 2,498
of the Revised Code, imposes disciplinary sanctions for any 2,499
violation of this section, the commission also may impose such 2,500
sanctions upon the broker with whom the salesperson is affiliated 2,501
if the commission finds that the broker had knowledge of the 2,502
salesperson's actions that violated this section.
(C) The commission shall, pursuant to section 4735.051 of 2,504
the Revised Code, impose disciplinary sanctions upon any foreign 2,505
real estate dealer or salesperson who, in that capacity or in 2,506
handling the dealer's or salesperson's own property, is found 2,507
guilty of any of the acts or omissions specified or comprehended 2,508
in division (A) of this section insofar as the acts or omissions
pertain to foreign real estate. If the commission imposes such 2,509
sanctions upon a foreign real estate salesperson for a violation 2,510
of this section, the commission also may suspend or revoke the 2,511
license of the foreign real estate dealer with whom the 2,512
salesperson is affiliated if the commission finds that the dealer 2,513
had knowledge of the salesperson's actions that violated this 2,514
section.
(D) The commission may suspend, in whole or in part, the 2,516
58
imposition of the penalty of suspension of a license under this 2,517
section. 2,518
(E) The commission immediately shall notify the real 2,520
estate appraiser board of any disciplinary action taken under 2,521
this section against a licensee who also is a state-certified 2,522
real estate appraiser under Chapter 4763. of the Revised Code. 2,523
Sec. 4735.25. (A)(1) No person, other than an actual bona 2,532
fide owner selling for his THE OWNER'S own account in a single 2,533
transaction and not by way of repeated or successive 2,534
transactions, or a person excepted from obtaining a license under 2,535
section 4735.01 of the Revised Code, shall sell, lease, or 2,536
otherwise deal in this state in any foreign real estate unless 2,537
the person has qualified the foreign real estate pursuant to this 2,538
section and unless one of the following applies: 2,539
(a) The person was licensed under section 1707.15 or 2,541
1707.16 prior to October 14, 1969; 2,542
(b) The person was licensed as a foreign real estate 2,544
dealer or salesman SALESPERSON under former section 1707.331 of 2,545
the Revised Code prior to the effective date of this section, but 2,546
only until the expiration date of the license; 2,547
(c) The person is licensed under section 4735.27 or 2,549
4735.28 of the Revised Code. 2,550
(2) A licensed foreign real estate dealer or licensed 2,552
foreign real estate salesman SALESPERSON who is acting in a 2,553
fiduciary capacity for a bona fide owner of foreign real estate 2,555
in the sale or lease of that real estate, or who is otherwise 2,556
dealing in foreign real estate in a fiduciary capacity for its 2,557
bona fide owner, in a single transaction and not by way of 2,558
repeated or successive transactions for that owner, need not 2,559
qualify such real estate under this section. 2,560
(B) Any person, other than one of the excepted persons 2,562
under division (A) of this section, desiring to sell, lease, or 2,563
otherwise deal in any foreign real estate shall file an 2,564
application with the superintendent of real estate in the form 2,565
59
the superintendent prescribes, which application shall set forth 2,566
the following: 2,567
(1) An exact description of the foreign real estate sought 2,569
to be sold, leased, or dealt in; 2,570
(2) A map or plat prepared by a competent surveyor showing 2,572
the boundaries and dimensions of the foreign real estate and all 2,573
lots or subdivisions of it; 2,574
(3) The names of the owners of the foreign real estate, 2,576
with a detailed statement showing the financial responsibility of 2,577
each owner, together with the post office address of each, 2,578
including street numbers or another pertinent description; and if 2,579
any such owner is a corporation or association, a copy of its 2,580
articles or certificate of incorporation or of the agreement by 2,581
which it was created, unless a copy is already on file in the 2,582
office of the secretary of state, together with proof that it is 2,583
qualified to do business in this state, if it is a foreign 2,584
corporation; 2,585
(4) A list and description of all liens and encumbrances 2,587
on the foreign real estate; 2,588
(5) A full description of all improvements or developments 2,590
of every nature to be made or promised to be made on the foreign 2,591
real estate, the cost of the improvements or developments, and 2,592
the security, if any, for their completion; 2,593
(6) A copy of any building restrictions or other 2,595
restrictions upon the use of the foreign real estate; 2,596
(7) A copy, description, or plan showing the form of 2,598
contract, method, and terms of sale, lease, or other dealing to 2,599
be used in connection with the foreign real estate; 2,600
(8) A list or schedule of all sales prices of the foreign 2,602
real estate; 2,603
(9) A list or schedule of all commissions, allowances, or 2,605
compensations in any form that have been arranged or agreed to be 2,606
paid to the applicant, and to any dealers or salesmen 2,607
SALESPERSONS, by the owner or by any person interested in the 2,608
60
foreign real estate; 2,609
(10) Other information that the superintendent requires. 2,611
(C) All the statements, exhibits, and documents required 2,613
by the superintendent under this section, except properly 2,614
certified public documents, shall be verified by the oath of the 2,615
applicant or of any person having knowledge of the facts, and in 2,616
such manner and form as required by the superintendent. Failure 2,617
to comply with the requests of the superintendent in this regard 2,618
shall be a sufficient reason for a refusal by the superintendent 2,619
to qualify the foreign real estate. 2,620
(D) Upon filing the application, the applicant shall pay 2,622
to the superintendent a filing fee of five hundred dollars plus 2,623
an additional one dollar for each lot, unit, parcel, or interest 2,624
included in the offering, with the aggregate fee not to exceed 2,625
two thousand five hundred dollars, and shall deposit with the 2,626
superintendent a sum the superintendent may require for the 2,627
purpose of defraying the cost of verifying the statements of the 2,628
applicant, or for the purpose of determining that the provisions 2,629
of this chapter have been and will be complied with and that the 2,630
foreign real estate will not be sold, leased, or dealt in within 2,631
this state on grossly unfair terms, or in a method or on terms 2,632
that might defraud or deceive purchasers in this state. 2,633
(E) The superintendent, through the division of real 2,635
estate OR THE SUPERINTENDENT'S DESIGNEE EMPLOYED BY THE 2,636
DEPARTMENT OF COMMERCE, may inspect and examine the foreign real 2,637
estate or investigate the applicant or the persons interested in, 2,638
dealing in, or selling, the foreign real estate. The actual cost 2,639
of the inspection or examination, including the proper proportion 2,640
of the salaries of employees of the division of real estate who 2,641
conduct it, shall be paid by the applicant and may be retained by 2,642
the superintendent out of any deposit. An itemized statement of 2,643
such cost shall be furnished to the applicant. 2,644
(F) In order either to prevent fraud in the sale of 2,646
foreign real estate or to provide security for the performance of 2,647
61
agreements to make improvements on it, the superintendent may 2,648
require all payments for the foreign real estate to be made to a 2,649
bank in this state, and to be impounded in that bank and held in 2,650
escrow upon the terms the superintendent reasonably requires. 2,651
(G) If the superintendent is of the opinion that the 2,653
proposed sale, lease, or disposal is not on grossly unfair terms, 2,654
that the provisions of this chapter have been complied with, and 2,655
that the foreign real estate will not be sold, leased, or dealt 2,656
in, in a method or on terms that might defraud or deceive persons 2,657
in this state, he THE SUPERINTENDENT shall allow the 2,658
qualification of the foreign real estate for sale, lease, or 2,660
other disposition on the terms stated in the application or on 2,661
other terms, calculated to prevent fraud or deception, the 2,662
superintendent approves.
Section 2. That existing sections 4735.01, 4735.02, 2,664
4735.03, 4735.05, 4735.051, 4735.06, 4735.07, 4735.08, 4735.09, 2,665
4735.10, 4735.11, 4735.12, 4735.13, 4735.14, 4735.141, 4735.15, 2,666
4735.16, 4735.18, and 4735.25 of the Revised Code are hereby 2,668
repealed.
Section 3. Notwithstanding section 4735.141 of the Revised 2,670
Code as amended by this act, all persons licensed under sections 2,671
4735.07 and 4735.09 of the Revised Code before January 1, 2001, 2,672
shall submit proof satisfactory to the Superintendent of Real 2,673
Estate that the licensee has satisfactorily completed continuing 2,674
education, as prescribed by the Ohio Real Estate Commission
pursuant to section 4735.10 of the Revised Code and as to the 2,676
number of hours required under section 4735.141 of the Revised 2,677
Code, as that section existed prior to this act, in accordance 2,678
with the appropriate time period, as follows:
(A) For continuing education that, under section 4735.141 2,680
of the Revised Code, as it existed prior to this act, would have 2,682
been due in the year 2001, on or before the licensee's birthday 2,683
in the year 2002, and on or before the licensee's birthday every 2,684
three years thereafter;
62
(B) For continuing education that, under section 4735.141 2,686
of the Revised Code, as it existed prior to this act, would have 2,688
been due in the year 2002, on or before the licensee's birthday 2,689
in the year 2003, and on or before the licensee's birthday every 2,690
three years thereafter;
(C) For continuing education that, under section 4735.141 2,692
of the Revised Code, as it existed prior to this act, would have 2,694
been due in the year 2003, on or before the licensee's birthday 2,695
in the year 2004, and on or before the licensee's birthday every 2,696
three years thereafter.
Section 4. Notwithstanding section 4735.14 of the Revised 2,698
Code, for the license renewal period beginning January 1, 2001, 2,699
and ending December 31, 2001, licensees shall pay prorated 2,701
license renewal fees on or before the licensee's birthday in the 2,702
year 2001. Beginning January 1, 2002, and every year thereafter, 2,703
license renewal fees shall be paid on or before the licensee's 2,704
birthday in the amount specified in section 4735.14 of the 2,705
Revised Code. The prorated license renewal fee shall be paid as 2,706
follows:
Salesperson 2,709
Broker license license renewal 2,710
Month of birth renewal fee fee 2,711
January $49.00 $39.00 2,714
February $53.00 $42.00 2,715
March $57.00 $45.00 2,716
April $61.00 $48.00 2,717
May $65.00 $51.00 2,718
June $69.00 $54.00 2,719
July $73.00 $57.00 2,720
August $77.00 $60.00 2,721
September $81.00 $63.00 2,722
October $85.00 $66.00 2,723
November $89.00 $69.00 2,724
December $93.00 $72.00 2,725
63
Section 5. Sections 4735.07 and 4735.141 of the Revised 2,728
Code are presented in this act as composites of the sections as 2,730
amended by both Am. Sub. H.B. 18 and Am. Sub. H.B. 283 of the 2,731
123rd General Assembly, with the new language of neither of the 2,732
acts shown in capital letters. This is in recognition of the 2,733
principle stated in division (B) of section 1.52 of the Revised 2,734
Code that such amendments are to be harmonized where not 2,735
substantively irreconcilable and constitutes a legislative 2,736
finding that such is the resulting version in effect prior to the 2,737
effective date of this act.