As Passed by the Senate 1
123rd General Assembly 4
Regular Session 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-SENATORS NEIN- 11
WATTS-SPADA-HERINGTON-MUMPER 12
_________________________________________________________________ 14
A B I L L
To amend sections 4735.01, 4735.02, 4735.03, 16
4735.05, 4735.051, 4735.06, 4735.07, 4735.08, 17
4735.09, 4735.10, 4735.11, 4735.12, 4735.13, 18
4735.14, 4735.141, 4735.15, 4735.16, 4735.18, and
4735.25 of the Revised Code to include limited 20
liability companies and limited liability
partnerships in the definition of real estate 21
broker and to establish changes in the real 22
estate licensing law.
BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF OHIO: 24
Section 1. That sections 4735.01, 4735.02, 4735.03, 26
4735.05, 4735.051, 4735.06, 4735.07, 4735.08, 4735.09, 4735.10, 27
4735.11, 4735.12, 4735.13, 4735.14, 4735.141, 4735.15, 4735.16, 28
4735.18, and 4735.25 of the Revised Code be amended to read as 30
follows:
Sec. 4735.01. As used in this chapter: 39
(A) "Real estate broker" includes any person, partnership, 41
association, LIMITED LIABILITY COMPANY, LIMITED LIABILITY 42
PARTNERSHIP, or corporation, foreign or domestic, who for 43
another, whether pursuant to a power of attorney or otherwise, 44
and who for a fee, commission, or other valuable consideration, 45
or with the intention, or in the expectation, or upon the promise 46
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of receiving or collecting a fee, commission, or other valuable 47
consideration DOES ANY OF THE FOLLOWING: 48
(1) Sells, exchanges, purchases, rents, or leases, or 50
negotiates the sale, exchange, purchase, rental, or leasing of 51
any real estate; 52
(2) Offers, attempts, or agrees to negotiate the sale, 54
exchange, purchase, rental, or leasing of any real estate; 55
(3) Lists, or offers, attempts, or agrees to list, or 57
auctions, or offers, attempts, or agrees to auction, any real 58
estate; 59
(4) Buys or offers to buy, sells or offers to sell, or 61
otherwise deals in options on real estate; 62
(5) Operates, manages, or rents, or offers or attempts to 64
operate, manage, or rent, other than as custodian, caretaker, or 65
janitor, any building or portions of buildings to the public as 66
tenants; 67
(6) Advertises or holds self out as engaged in the 69
business of selling, exchanging, purchasing, renting, or leasing 70
real estate; 71
(7) Directs or assists in the procuring of prospects or 73
the negotiation of any transaction, other than mortgage 74
financing, which does or is calculated to result in the sale, 75
exchange, leasing, or renting of any real estate; 76
(8) Is employed by or on behalf of the owner of lots, or 78
other parcels of real estate, at a stated salary, or upon a 79
commission, or upon a salary and commission basis or otherwise, 80
to sell such real estate, or any parts of it, in lots or other 81
parcels, and who sells, exchanges, or offers, attempts, or agrees 82
to negotiate the sale or exchange of any such lot or parcel of 83
real estate; 84
(9) Is engaged in the business of charging an advance fee 86
or contracting for collection of a fee in connection with any 87
contract whereby the broker undertakes primarily to promote the 89
sale, exchange, purchase, rental, or leasing of real estate 90
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through its listing in a publication issued primarily for such 91
purpose, or for referral of information concerning such real 92
estate to brokers, or both, except that this division does not 93
apply to a publisher of listings or compilations of sales of real 94
estate by their owners; 95
(10)(9) Collects rental information for purposes of 97
referring prospective tenants to rental units or locations of 98
such units and charges the prospective tenants a fee. 99
(B) "Real estate" includes leaseholds as well as any and 101
every interest or estate in land situated in this state, whether 102
corporeal or incorporeal, whether freehold or nonfreehold, and 103
the improvements on the land, but does not include cemetery 104
interment rights. 105
(C) "Real estate salesperson" means any person associated 107
with a licensed real estate broker to do or to deal in any acts 108
or transactions set out or comprehended by the definition of a 109
real estate broker, for compensation or otherwise. 110
(D) "Institution of higher education" means either of the 112
following:
(1) A nonprofit institution as defined in section 1713.01 114
of the Revised Code that actually awards, rather than intends to 115
award, degrees for fulfilling requirements of academic work 116
beyond high school; 117
(2) An institution operated for profit that otherwise 119
qualifies under the definition of an institution in section 120
1713.01 of the Revised Code and that actually awards, rather than 121
intends to award, degrees for fulfilling requirements of academic 122
work beyond high school. 123
(E) "Foreign real estate" means real estate not situated 125
in this state and any interest in real estate not situated in 126
this state. 127
(F) "Foreign real estate dealer" includes any person, 129
partnership, association, LIMITED LIABILITY COMPANY, LIMITED 130
LIABILITY PARTNERSHIP, or corporation, foreign or domestic, who 132
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for another, whether pursuant to a power of attorney or
otherwise, and who for a fee, commission, or other valuable 133
consideration, or with the intention, or in the expectation, or 134
upon the promise of receiving or collecting a fee, commission, or 135
other valuable consideration, does or deals in any act or 136
transaction specified or comprehended in division (A) of this 137
section with respect to foreign real estate. 138
(G) "Foreign real estate salesperson" means any person 141
associated with a licensed foreign real estate dealer to do or 142
deal in any act or transaction specified or comprehended in 143
division (A) of this section with respect to foreign real estate, 144
for compensation or otherwise. 145
(H) Any person, partnership, association, LIMITED 147
LIABILITY COMPANY, LIMITED LIABILITY PARTNERSHIP, or corporation, 148
who, for another, in consideration of compensation, by fee, 149
commission, salary, or otherwise, or with the intention, in the 150
expectation, or upon the promise of receiving or collecting a 151
fee, does, or offers, attempts, or agrees to engage in, any 152
single act or transaction contained in the definition of a real 153
estate broker or foreign real estate dealer, whether an act is an 154
incidental part of a transaction, or the entire transaction, 155
shall be constituted a real estate broker or real estate 156
salesperson or a foreign real estate dealer or foreign real 157
estate salesperson under this chapter. 158
(I) The terms "real estate broker," "real estate 160
salesperson," "foreign real estate dealer," and "foreign real 162
estate salesperson" do not include a person, partnership, 163
association, LIMITED LIABILITY COMPANY, LIMITED LIABILITY 164
PARTNERSHIP, or corporation, or the regular employees thereof, 165
who perform any of the acts or transactions specified or 167
comprehended in division (A) of this section, whether or not for, 168
or with the intention, in expectation, or upon the promise of 169
receiving or collecting a fee, commission, or other valuable 170
consideration:
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(1) With reference to real estate situated in this state 172
or any interest in it owned by such person, partnership, 173
association, LIMITED LIABILITY COMPANY, LIMITED LIABILITY 174
PARTNERSHIP, or corporation, or acquired on its own account in 175
the regular course of, or as an incident to the management of the 176
property and the investment in it; 177
(2) As receiver or trustee in bankruptcy, as guardian, 179
executor, administrator, trustee, assignee, commissioner, or any 180
person doing the things mentioned in this section, under 181
authority or appointment of, or incident to a proceeding in, any 182
court, or as a public officer, or as executor, trustee, or other 183
bona fide fiduciary under any trust agreement, deed of trust, 184
will, or other instrument creating a like bona fide fiduciary 185
obligation; 186
(3) As a public officer while performing the officer's 188
official duties; 189
(4) As an attorney at law in the performance of the 191
attorney's duties; 192
(5) AS A PERSON WHO ENGAGES IN THE BROKERING OF THE SALE 194
OF BUSINESS ASSETS, NOT INCLUDING THE NEGOTIATION OF THE SALE, 195
LEASE, EXCHANGE, OR ASSIGNMENT OF ANY INTEREST IN REAL ESTATE; 196
(6) AS A PERSON WHO ENAGES IN THE SALE OF MANUFACTURED 198
HOMES AS DEFINED IN DIVISION (C)(4) OF SECTION 3781.06 OF THE 199
REVISED CODE, OR OF MOBILE HOMES AS DEFINED IN DIVISION (O) OF 200
SECTION 4501.01 OF THE REVISED CODE, PROVIDED THE SALE DOES NOT 201
INCLUDE THE NEGOTIATION, SALE, LEASE, EXCHANGE, OR ASSIGNMENT OF 202
ANY INTEREST IN REAL ESTATE.
(J) "Physically handicapped licensee" means a person 204
licensed pursuant to this chapter who is under a severe physical 205
disability which is of such a nature as to prevent the person 206
from being able to attend any classroom instruction lasting at 207
least three hours in duration. 208
(K) "Division of real estate" may be used interchangeably 211
with, and for all purposes has the same meaning as, "division of 212
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real estate and professional licensing." 213
(L) "Superintendent" or "superintendent of real estate" 216
means the superintendent of the division of real estate and 217
professional licensing of this state. Whenever the division or 218
superintendent of real estate is referred to or designated in any 219
statute, rule, contract, or other document, the reference or 220
designation shall be deemed to refer to the division or 221
superintendent of real estate and professional licensing, as the 222
case may be.
(M) "INACTIVE LICENSE" MEANS THE LICENSE STATUS IN WHICH A 224
SALESPERSON'S LICENSE IS IN THE POSSESSION OF THE DIVISION, 225
ANNUALLY RENEWED AS REQUIRED UNDER THIS CHAPTER, AND NOT 226
ASSOCIATED WITH A REAL ESTATE BROKER. 227
(N) "BROKER'S LICENSE ON DEPOSIT" MEANS THE LICENSE STATUS 229
IN WHICH A BROKER'S LICENSE IS IN THE POSSESSION OF THE DIVISION 230
OF REAL ESTATE AND PROFESSIONAL LICENSING AND ANNUALLY RENEWED AS 231
REQUIRED UNDER THIS CHAPTER. 232
(O) "SUSPENDED LICENSE" MEANS THE LICENSE STATUS THAT 234
PROHIBITS A LICENSEE FROM PROVIDING SERVICES THAT REQUIRE A 235
LICENSE UNDER THIS CHAPTER FOR A SPECIFIED INTERVAL OF TIME. 236
(P) "REACTIVATE" MEANS THE PROCESS PRESCRIBED BY THE 238
SUPERINTENDENT OF REAL ESTATE AND PROFESSIONAL LICENSING TO 239
REMOVE A LICENSE FROM AN INACTIVE, SUSPENDED, OR BROKER'S LICENSE 240
ON DEPOSIT STATUS TO ALLOW A LICENSEE TO PROVIDE SERVICES THAT 241
REQUIRE A LICENSE UNDER THIS CHAPTER. 242
(Q) "REVOKED" MEANS THE LICENSE STATUS IN WHICH THE 244
LICENSE IS VOID AND NOT ELIGIBLE FOR REACTIVATION. 245
Sec. 4735.02. No person, partnership, association, LIMITED 254
LIABILITY COMPANY, LIMITED LIABILITY PARTNERSHIP, or corporation 256
shall act as a real estate broker or real estate salesperson, or 257
advertise or assume to act as such, without first being licensed 258
as provided in this chapter. NO PERSON, PARTNERSHIP, 259
ASSOCIATION, LIMITED LIABILITY COMPANY, LIMITED LIABILITY 260
PARTNERSHIP, OR CORPORATION SHALL PROVIDE SERVICES THAT REQUIRE A 261
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LICENSE UNDER THIS CHAPTER IF THE LICENSEE'S LICENSE IS INACTIVE, 262
SUSPENDED, OR A BROKER'S LICENSE ON DEPOSIT, OR IF THE LICENSE 263
HAS BEEN REVOKED. Nothing contained in this chapter shall be 265
construed as authorizing a real estate broker or salesperson to 266
perform any service constituting the practice of law. 267
No partnership, association, LIMITED LIABILITY COMPANY, 269
LIMITED LIABILITY PARTNERSHIP, or corporation holding a real 270
estate license shall employ as an officer, director, manager, or 271
principal employee any person previously holding a license as a 272
real estate broker, real estate salesperson, foreign real estate 274
dealer, or foreign real estate salesperson, whose license has 275
been terminated by failure to file a certificate of continuation, 276
by revocation, or by suspension, PLACED IN INACTIVE STATUS, 277
SUSPENDED, OR REVOKED and who has not thereafter been relicensed 279
REACTIVATED THE LICENSE OR RECEIVED A NEW LICENSE.
Sec. 4735.03. There is hereby created the Ohio real estate 288
commission, consisting of five members who shall be appointed by 289
the governor, with the advice and consent of the senate. Four 290
members shall have been engaged in the real estate business as 291
licensed real estate brokers in the state for a period of ten 292
years immediately preceding the appointment. One member shall 293
represent the public. Terms of office shall be for five years, 294
commencing on the first day of July and ending on the thirtieth 295
day of June. Each member shall hold office from the date of his 296
appointment until the end of the term for which appointed. No 297
more than three members shall be members of any one political 298
party and no member of the commission concurrently may be a 299
member of the commission and the real estate appraiser board 300
created pursuant to section 4763.02 of the Revised Code. Each 301
member, before entering upon the duties of his office, shall 302
subscribe to and file with the secretary of state the 303
constitutional oath of office. All vacancies which occur shall 304
be filled in the manner prescribed for the regular appointments 305
to the commission. Any member appointed to fill a vacancy 306
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occurring prior to the expiration of the term for which his THE 307
MEMBER'S predecessor was appointed shall hold office for the 308
remainder of such term. Any member shall continue in office 309
subsequent to the expiration date of his THE MEMBER'S term until 310
his THE MEMBER'S successor takes office, or until a period of 312
sixty days has elapsed, whichever occurs first. Annually, upon 313
the qualification of the member appointed in such year, the 314
commission shall organize by selecting from its members a 315
president AND VICE-PRESIDENT, and shall do all things necessary
and proper to carry out and enforce this chapter. A majority of 317
the members of the commission shall constitute a quorum, but a 318
lesser number may adjourn from time to time. Each member of the 319
commission shall receive an amount fixed pursuant to section 320
124.14 of the Revised Code for each day employed in the discharge 321
of his official duties, and his THE MEMBER'S actual and necessary 322
expenses incurred in the discharge of such THOSE duties. 323
The commission or the superintendent of real estate may 325
investigate complaints concerning the violation of section 326
4735.02 or 4735.25 of the Revised Code and may subpoena witnesses 327
in connection with such investigations as provided in section 328
4735.04 of the Revised Code. The commission or the 329
superintendent may make application to the appropriate court for 330
an order enjoining the violation of section 4735.02 or 4735.25 of 331
the Revised Code, and upon a showing by the commission or the 332
superintendent that any person, firm, partnership, association, 333
LIMITED LIABILITY COMPANY, LIMITED LIABILITY PARTNERSHIP, or 335
corporation has violated or is about to violate section 4735.02 336
or 4735.25 of the Revised Code, an injunction, restraining order, 337
or such other order as may be appropriate shall be granted by 338
such court.
The commission shall: 340
(A) Adopt canons of ethics for the real estate industry; 342
(B) Upon appeal by any party affected, or may upon its own 344
motion, review any order OR APPLICATION DETERMINATION of the 345
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superintendent, and may reverse, vacate, or modify any order of 347
the superintendent;
(C) Administer the real estate education and research fund 349
and hear appeals from orders of the superintendent regarding 350
claims against that fund or against the real estate recovery 351
fund; 352
(D) Direct the superintendent on the content, scheduling, 354
instruction, and offerings of real estate courses for salesman 355
SALESPERSON and broker educational requirements; 356
(E) Disseminate to licensees and the public, information 358
relative to commission activities and decisions; 359
(F) Notify licensees of changes in state and federal civil 361
rights laws pertaining to discrimination in the purchase or sale 362
of real estate and relevant case law, and inform licensees that 363
they are subject to disciplinary action if they do not comply 364
with the changes; 365
(G) Publish and furnish to public libraries and to brokers 367
booklets on housing and remedies available to dissatisfied 368
clients under this chapter and Chapter 4112. of the Revised Code. 369
Sec. 4735.05. (A) The Ohio real estate commission is a 378
part of the department of commerce for administrative purposes. 379
The director of commerce is ex officio the executive officer of 380
the commission, or the director may designate any employee of the 381
department as superintendent of real estate and professional 382
licensing to act as executive officer of the commission. 383
The commission and the real estate appraiser board created 385
pursuant to section 4763.02 of the Revised Code shall each submit 386
to the director a list of three persons whom the commission and 387
the board consider qualified to be superintendent within sixty 388
days after the office of superintendent becomes vacant. The 389
director shall appoint a superintendent from the lists submitted 390
by the commission and the board, and the superintendent shall 391
serve at the pleasure of the director. 392
(B) The superintendent, except as otherwise provided, 394
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shall do all of the following in regard to this chapter: 395
(1) Administer this chapter; 397
(2) Issue all orders necessary to implement this chapter; 399
(3) Investigate complaints concerning the violation of 401
this chapter or the conduct of any licensee; 402
(4) Establish and maintain an investigation and audit 404
section to investigate complaints and conduct inspections, 405
audits, and other inquiries as in the judgment of the 406
superintendent are appropriate to enforce this chapter. The 407
investigators or auditors have the right to review and audit the 408
business records of licensees AND CONTINUING EDUCATION COURSE 409
PROVIDERS during normal business hours. 410
(5) Appoint a hearing examiner for any proceeding 412
involving license suspension or revocation DISCIPLINARY ACTION 413
under section 2301.373 of the Revised Code or proceedings brought 415
under section 4735.18 of the Revised Code; 416
(6) Administer the real estate recovery fund. 418
(C) The superintendent may do all of the following: 420
(1) In connection with investigations and audits under 422
division (B) of this section, subpoena witnesses as provided in 423
section 4735.04 of the Revised Code; 424
(2) Apply to the appropriate court to enjoin any violation 426
of this chapter. Upon a showing by the superintendent that any 427
person has violated or is about to violate any provision of this 428
chapter, the court shall grant an injunction, restraining order, 429
or other appropriate order. 430
(3) Upon the death of a licensed broker or the revocation 432
or suspension of the broker's license, if there is no other 433
licensed broker within the business entity of the broker, appoint 434
upon application by any interested party, or, in the case of a 435
deceased broker, subject to the approval by the appropriate 436
probate court, recommend the appointment of, an ancillary trustee 437
who is qualified as determined by the superintendent to conclude 438
the business transactions of the deceased, revoked, or suspended 439
11
broker. 440
(D) All information that is obtained by investigators and 442
auditors performing investigations or conducting inspections, 443
audits, and other inquiries pursuant to division (B)(4) of this 444
section, from licensees, complainants, or other persons, and all 445
reports, documents, and other work products that arise from that 446
information and that are prepared by the investigators, auditors, 447
or other personnel of the department, shall be held in confidence 448
by the superintendent, the investigators and auditors, and other 449
personnel of the department. 450
Sec. 4735.051. (A) Within five business days after a 459
person files a signed written complaint against a licensed real 460
estate broker or licensed real estate salesperson with the 462
division of real estate, the superintendent of real estate shall 463
acknowledge receipt of the complaint and send a notice to the 464
licensee describing the acts complained of. The acknowledgment 465
to the complainant and the notice to the licensee shall state 466
that an informal meeting will be held with the complainant, the 467
licensee, and an investigator from the investigation and audit 468
section of the division if the complainant and licensee both file 469
a request for such a meeting within ten business days thereafter 470
on a form provided by the superintendent. 471
(B) If the complainant and licensee both file with the 473
division requests for an informal meeting, the superintendent 474
shall notify the complainant and licensee of the date of the 475
meeting, which shall be within twenty business days thereafter, 476
except that any party may request an extension of up to fifteen 477
business days for good cause shown. If the parties COMPLAINANT 478
AND LICENSEE reach an accommodation at an informal meeting, the 480
investigator shall so report to the superintendent and, the 481
parties COMPLAINANT, AND LICENSEE and the complaint file shall be 483
closed, unless, based upon the investigator's report, the 484
superintendent finds evidence that the licensee has violated 485
section 4735.18 of the Revised Code.
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(C) If the parties COMPLAINANT AND LICENSEE fail to agree 487
to an informal meeting or fail to reach an accommodation, or if 489
the superintendent finds evidence of a violation of section 490
4735.18 of the Revised Code, the superintendent shall, within 491
five business days of such determination, so notify the parties 493
COMPLAINANT AND LICENSEE and shall investigate the conduct of the 495
licensee against whom the complaint is filed.
(D) Within sixty business days after receipt of the 497
complaint, or, if an informal meeting is held, within sixty days 498
of such meeting, the investigator shall file a written report of 499
the results of the investigator's investigation with the 500
superintendent. Within ten FOURTEEN business days thereafter, 502
the superintendent shall review the report and determine whether 504
there exists reasonable and substantial evidence of a violation 505
of section 4735.18 of the Revised Code by the licensee. If the 506
superintendent finds such evidence exists, within five SEVEN 507
business days of the determination, the superintendent shall 509
notify the parties COMPLAINANT AND LICENSEE of the date of a 511
hearing to be held by a hearing examiner pursuant to Chapter 119. 512
of the Revised Code within fifteen days but not prior to seven 513
days thereafter, except that any party EITHER THE SUPERINTENDENT 514
OR THE LICENSEE may request an extension of up to thirty business 516
days for good cause shown. If the superintendent finds that such 517
evidence does not exist, within five business days thereafter, 518
the superintendent shall so notify the parties COMPLAINANT AND 519
LICENSEE of the superintendent's determination and the basis for 520
the determination. Within fifteen business days after the 521
superintendent notifies the parties COMPLAINANT AND LICENSEE that 523
such evidence does not exist, the complainant may file with the 524
division a request that the commissioners review the 525
determination. If the complainant files such request, the 526
commissioners shall review the determination at the next 527
regularly scheduled meeting held at least fifteen business days 528
after the request is filed. The commission shall hear the 529
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testimony of either party THE COMPLAINANT OR THE LICENSEE at such 530
THE meeting upon the request of the party COMPLAINANT OR 531
LICENSEE. If the commissioners affirm the determination of the 533
superintendent, the superintendent shall so notify the 534
complainant and the licensee within five business days 535
thereafter. If the commissioners reverse the determination of 536
the superintendent, a hearing shall be held and the parties 537
COMPLAINANT AND LICENSEE notified as provided in this division. 538
(E) Within twenty-five business days after the conclusion 540
of formal hearings, the hearing examiner shall file a report of 541
findings of fact and conclusions of law with the superintendent, 542
the commission, and the parties COMPLAINANT AND LICENSEE. 543
(F) The commissioners shall review the hearing examiner's 545
report and the parties' evidence at the next regularly scheduled 546
commission meeting held at least fifteen business days after 547
receipt of the hearing examiner's report. The commission shall 548
hear the testimony of any party THE COMPLAINANT OR THE LICENSEE 549
upon request. If the complainant is the Ohio civil rights 551
commission, the complaint shall be reviewed by the commissioners 552
directly upon request.
(G) The commission shall decide whether to impose 554
disciplinary sanctions upon a licensee for a violation of section 555
4735.18 of the Revised Code. The commission shall decide within 556
sixty days of the filing of the hearing examiner's report or 557
within sixty days of the filing of an Ohio civil rights 558
commission complaint. The commission shall maintain a transcript 559
of the proceedings and issue a written opinion to all the parties 560
COMPLAINANT AND LICENSEE, citing its findings and grounds for any 562
action taken. The commission shall notify the complainant and 563
any other party PERSON who may have suffered financial loss 564
because of the licensee's violations, that the complainant or 565
other party PERSON may sue for recovery under section 4735.12 of 566
the Revised Code.
(H) An investigation under this section is subject to 568
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section 4735.32 of the Revised Code. 569
(I) The commission may impose the following sanctions upon 571
a licensee for a violation of section 4735.18 of the Revised 572
Code: 573
(1) Revoke a license issued under Chapter 4735. of the 575
Revised Code; 576
(2) Suspend a license for a term set by the commission; 578
(3) Impose a fine, not exceeding two thousand five hundred 580
dollars per violation; 581
(4) Issue a public reprimand; 583
(5) Require the completion of additional continuing 585
education course work. Any continuing education course work 586
imposed pursuant to this section shall not count toward the 587
continuing education requirements set forth in section 4735.14 of 588
the Revised Code.
All fines imposed pursuant to division (I)(3) of this 590
section shall be credited to the real estate operating RECOVERY 591
fund, which is created in the state treasury under section 593
4735.211 4735.12 of the Revised Code. 594
Sec. 4735.06. (A) Application for a license as a real 603
estate broker shall be made in writing to the superintendent of 604
real estate on forms furnished by the superintendent and filed 606
with the superintendent and shall be signed by the applicant or 608
its members or officers. Each application shall state the name 609
of the person applying and the location of the place of business 610
for which the license is desired, and give such other information 611
as the superintendent requires in the form of application 612
prescribed by the superintendent. 613
The application shall be accompanied by a recent photograph 615
of the applicant and the names of three resident freeholders of 616
the county in which the applicant resides or has the applicant's 618
place of business. If the applicant has resided, or has engaged 619
in the real estate business, for less than one year in the county 620
from which the application is made, the application shall be 621
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accompanied by a recent photograph of the applicant and the names 622
of three resident freeholders of each of the counties where the 623
applicant formerly resided or engaged in the real estate business 624
during the period of one year prior to the filing of the 625
application. No one of the freeholders shall be related to the 626
applicant, and one of them shall be the applicant's most recent 627
broker. If the applicant's most recent broker is a relative of 628
the applicant or is not a freeholder, the name of a third 629
freeholder shall be furnished. The freeholders shall furnish 630
information to the superintendent, on forms prescribed by the 631
superintendent, concerning the character of the applicant. If 632
the applicant maintains more than one place of business within 633
the state, the applicant shall apply for and procure a duplicate 634
license for each branch office so maintained by the applicant. 635
Each branch office shall be in the charge of a licensed broker or 637
salesperson.
If the applicant is a partnership, LIMITED LIABILITY 639
COMPANY, LIMITED LIABILITY PARTNERSHIP, or association, the names 641
of all the members also shall be stated, and, if the applicant is 642
a corporation, the names of its president and of each of its 643
officers also shall be stated. The superintendent has the right 644
to reject the application of any partnership, association, 645
LIMITED LIABILITY COMPANY, LIMITED LIABILITY PARTNERSHIP, or 647
corporation if the name proposed to be used by such partnership, 648
association, LIMITED LIABILITY COMPANY, LIMITED LIABILITY 650
PARTNERSHIP, or corporation is likely to mislead the public or if 651
the name is not such as to distinguish it from the name of any 652
existing partnership, association, LIMITED LIABILITY COMPANY, 654
LIMITED LIABILITY PARTNERSHIP, or corporation licensed under this 656
chapter, unless there is filed with the application the written 658
consent of such existing partnership, association, LIMITED 659
LIABILITY COMPANY, LIMITED LIABILITY PARTNERSHIP, or corporation, 661
executed by a duly authorized representative of it, permitting 662
the use of the name of such existing partnership, association, 663
16
LIMITED LIABILITY COMPANY, LIMITED LIABILITY PARTNERSHIP, or 665
corporation.
(B) A fee of sixty-nine dollars shall accompany the 668
application for a real estate broker's license, which fee shall 669
include the license if it is issued. The application fee shall 670
be retained by the superintendent if the applicant is admitted to 671
the examination for the license or the examination requirement is 672
waived, but, if an applicant is not so admitted and a waiver is 673
not involved, one-half of the fee shall be retained by the 674
superintendent to cover the expenses of processing the 675
application and the other one-half shall be returned to the 676
applicant. A fee of sixty-nine dollars shall be charged by the 678
superintendent for each successive application made by an 679
applicant. 680
(C) Four dollars of each fee for a real estate broker's 683
license shall be credited to the real estate education and 684
research fund, which is hereby created in the state treasury. 685
The Ohio real estate commission may use the fund in discharging 686
the duties prescribed in divisions (E), (F), and (G) of section 687
4735.03 of the Revised Code and shall use it in the advancement 688
of education and research in real estate at any institution of 689
higher education in the state, or in contracting with any such 690
institution for a particular research or educational project in 691
the field of real estate, or in advancing loans, not exceeding 692
eight hundred dollars, to applicants for salesperson licenses, to 694
defray the costs of satisfying the educational requirements of
division (F) of section 4735.09 of the Revised Code. Such loans 695
shall be made according to rules established by the commission 696
under the procedures of Chapter 119. of the Revised Code, and 697
they shall be repaid to the fund within three years of the time 698
they are made. No more than ten thousand dollars shall be lent 699
from the fund in any one year. 700
The governor may appoint a representative from the 702
executive branch to be a member ex officio of the commission for 703
17
the purpose of advising on research requests or educational 704
projects. The commission shall report to the general assembly on 705
the third Tuesday after the third Monday in January of each year 706
setting forth the total amount contained in the fund and the 707
amount of each research grant that it has authorized and the 708
amount of each research grant requested. A copy of all research 709
reports shall be submitted to the state library of Ohio and the 710
library of the legislative service commission. 711
(D) If the superintendent, with the consent of the 713
commission, enters into an agreement with a national testing 714
service to administer the real estate broker's examination, 715
pursuant to division (A) of section 4735.07 of the Revised Code, 716
the superintendent may require an applicant to pay the testing 717
service's examination fee directly to the testing service. If 719
the superintendent requires the payment of the examination fee 720
directly to the testing service, each applicant shall submit to 721
the superintendent a processing fee in an amount determined by 722
the Ohio real estate commission pursuant to division (A)(1)(2) of 723
section 4735.10 of the Revised Code. 725
Sec. 4735.07. (A) The superintendent of real estate, with 734
the consent of the Ohio real estate commission, may enter into 735
agreements with recognized national testing services to 736
administer the real estate broker's examination under the 737
superintendent's supervision and control, consistent with the 738
requirements of this chapter as to the contents of such 739
examination.
(B) No applicant for a real estate broker's license shall 742
take the broker's examination who has not established to the 743
satisfaction of the superintendent that the person the applicant: 744
(1) Is honest, truthful, and of good reputation; 746
(2)(a) Has not been convicted of a felony or crime of 748
moral turpitude, or if the person the applicant has been so 749
convicted, the superintendent has disregarded the conviction 750
because the applicant has proven to the superintendent, by a 751
18
preponderance of the evidence, that the applicant's activities 752
and employment record since the conviction show that the 754
applicant is honest, truthful, and of good reputation, and there 755
is no basis in fact for believing that the applicant again will 756
violate the laws involved;
(b) Has not been finally adjudged by a court to have 758
violated any municipal, state, or federal civil rights laws 759
relevant to the protection of purchasers or sellers of real 760
estate or, if the person the applicant has been so adjudged, at 761
least two years have passed since the court decision and the 763
superintendent has disregarded the adjudication because the 764
applicant has proven, by a preponderance of the evidence, that 765
the applicant's activities and employment record since the 766
adjudication show that the applicant is honest, truthful, and of 767
good reputation, and there is no basis in fact for believing that 768
the applicant will again violate the laws involved. 769
(3) Has not, during any period in which the person the 771
applicant was licensed under this chapter, violated any provision 772
of, or any rule adopted pursuant to, this chapter, or, if the 773
person the applicant has violated any such provision or rule, has 774
established to the satisfaction of the superintendent that the 775
person the applicant will not again violate such provision or 776
rule;
(4) Is at least eighteen years of age; 778
(5) Has been a licensed real estate broker or salesperson 781
for at least two years; during at least two of the five years 782
preceding the person's application, has worked as a licensed real
estate broker or salesperson for an average of at least thirty 783
hours per week; and has completed one of the following: 784
(a) At least twenty real estate transactions, in which 786
property was sold for another by the applicant while acting in 787
the capacity of a real estate broker or salesperson; 789
(b) Such equivalent experience as is defined by rules 791
adopted by the commission. 792
19
(6)(a) If licensed as a real estate salesperson prior to 795
January AUGUST 1, 1990 2001, successfully has completed at an 796
institution of higher education all of the following: 798
(i) Thirty hours of classroom instruction in real estate 800
practice; 801
(ii) Thirty hours of classroom instruction that includes 803
the subjects of Ohio real estate law, municipal, state, and 804
federal civil rights law, new case law on housing discrimination, 805
desegregation issues, and methods of eliminating the effects of 806
prior discrimination. If feasible, the classroom instruction in 807
Ohio real estate law shall be taught by a member of the faculty 808
of an accredited law school. If feasible, the classroom 809
instruction in municipal, state, and federal civil rights law, 810
new case law on housing discrimination, desegregation issues, and 811
methods of eliminating the effects of prior discrimination shall 812
be taught by a staff member of the Ohio civil rights commission 813
who is knowledgeable with respect to those subjects. The 814
requirements of this division do not apply to an applicant who is 815
admitted to practice before the supreme court. 816
(iii) Thirty hours of classroom instruction in real estate 818
appraisal; 819
(iv) Thirty hours of classroom instruction in real estate 821
finance; 822
(v) Three quarter hours, or its equivalent in semester 824
hours, in financial management; 825
(vi) Three quarter hours, or its equivalent in semester 827
hours, in human resource or personnel management; 828
(vii) Three quarter hours, or its equivalent in semester 830
hours, in applied business economics; 831
(viii) Three quarter hours, or its equivalent in semester 833
hours, in business law. 834
(b) IF LICENSED AS A REAL ESTATE SALESPERSON ON OR AFTER 836
AUGUST 1, 2001, SUCCESSFULLY HAS COMPLETED AT AN INSTITUTION OF 837
HIGHER EDUCATION ALL OF THE FOLLOWING: 838
20
(i) FORTY HOURS OF CLASSROOM INSTRUCTION IN REAL ESTATE 840
PRACTICE; 841
(ii) FORTY HOURS OF CLASSROOM INSTRUCTION THAT INCLUDES 843
THE SUBJECTS OF OHIO REAL ESTATE LAW, MUNICIPAL, STATE, AND 844
FEDERAL CIVIL RIGHTS LAW, NEW CASE LAW ON HOUSING DISCRIMINATION, 845
DESEGREGATION ISSUES, AND METHODS OF ELIMINATING THE EFFECTS OF 847
PRIOR DISCRIMINATION. IF FEASIBLE, THE CLASSROOM INSTRUCTION IN 848
OHIO REAL ESTATE LAW SHALL BE TAUGHT BY A MEMBER OF THE FACULTY 849
OF AN ACCREDITED LAW SCHOOL. IF FEASIBLE, THE CLASSROOM 850
INSTRUCTION IN MUNICIPAL, STATE, AND FEDERAL CIVIL RIGHTS LAW, 851
NEW CASE LAW ON HOUSING DISCRIMINATION, DESEGREGATION ISSUES, AND 852
METHODS OF ELIMINATING THE EFFECTS OF PRIOR DISCRIMINATION SHALL 853
BE TAUGHT BY A STAFF MEMBER OF THE OHIO CIVIL RIGHTS COMMISSION 854
WHO IS KNOWLEDGEABLE WITH RESPECT TO THOSE SUBJECTS. THE 855
REQUIREMENTS OF THIS DIVISION DO NOT APPLY TO AN APPLICANT WHO IS 857
ADMITTED TO PRACTICE BEFORE THE SUPREME COURT.
(iii) TWENTY HOURS OF CLASSROOM INSTRUCTION IN REAL ESTATE 859
APPRAISAL; 860
(iv) TWENTY HOURS OF CLASSROOM INSTRUCTION IN REAL ESTATE 862
FINANCE; 863
(v) THE TRAINING IN THE AMOUNT OF HOURS SPECIFIED UNDER 865
DIVISIONS (B)(6)(a)(v), (vi), (vii), AND (viii) OF THIS SECTION. 868
(c) Division (B)(6)(a) OR (b) of this section does not 871
apply to any applicant who holds a valid real estate 872
salesperson's license issued prior to January 2, 1972 873
salesperson's. Divisions (B)(6)(a)(v), (vi), (vii), and (viii) 874
OR DIVISION (B)(6)(b)(v) of this section do not apply to any 876
applicant who holds a valid real estate salesperson's license 877
issued prior to January 3, 1984.
(7) If licensed as a real estate salesperson on or after 880
January 3, 1984, satisfactorily has completed a minimum of two
years of post-secondary education, or its equivalent in semester 881
or quarter hours, at an institution of higher education, and has 882
fulfilled the requirements of division (B)(6)(a) OR (b) of this 884
21
section. The requirements of division (B)(6)(a) OR (b) of this 885
section may be included in the two years of post-secondary 887
education, or its equivalent in semester or quarter hours, that 888
is required by this division. 889
(C) Each applicant for a broker's license shall be 891
examined in the principles of real estate practice, Ohio real 892
estate law, and financing and appraisal, and as to the duties of 893
real estate brokers and real estate salespersons, the applicant's 895
knowledge of real estate transactions and instruments relating to
them, and the canons of business ethics pertaining to them. The 896
commission from time to time shall promulgate such canons and 897
cause them to be published in printed form. 898
salesperson's 900
(D) Examinations shall be given entirely in writing, 902
except that they shall be administered with reasonable 903
accommodations in accordance with the requirements of the 905
"Americans with Disabilities Act of 1990," 104 Stat. 327, 42 906
U.S.C. 12101. The contents of an examination shall be consistent 908
with the requirements of division (B)(6)(a) of this section and 909
with the other specific requirements of this section. An 910
applicant who has completed the requirements of division 911
(B)(6)(a) of this section at the time of application may SHALL be 912
examined at the next regularly scheduled examination NO LATER 913
THAN TWELVE MONTHS after the applicant is notified of admission 915
to the examination.
(E) The superintendent may waive ONE OR MORE OF the 917
requirement REQUIREMENTS of examination THIS SECTION in the case 918
of an application from a nonresident real estate broker of a 920
state having similar requirements and under the laws of which 921
similar recognition is extended to licensed real estate brokers 922
and real estate salespersons of this PURSUANT TO A RECIPROCITY 923
AGREEMENT WITH THE LICENSING AUTHORITY OF THE state FROM WHICH 924
THE NONRESIDENT APPLICANT HOLDS A VALID REAL ESTATE BROKER 925
LICENSE.
22
(F) There shall be no limit placed on the number of times 927
an applicant may retake the examination. 928
(G) The superintendent in the superintendent's discretion 930
may waive the requirement of examination if the applicant has 932
been licensed as a real estate broker by the superintendent or 933
commission at some time during the two-year period immediately 934
preceding the date of the current application. 935
(H)(1) Each NO LATER THAN TWELVE MONTHS AFTER THE DATE OF 937
ISSUE OF A REAL ESTATE BROKER'S LICENSE TO A licensee 938
successfully, THE LICENSEE shall complete, SUBMIT PROOF 941
SATISFACTORY TO THE SUPERINTENDENT, ON FORMS MADE AVAILABLE BY 942
THE SUPERINTENDENT, OF THE COMPLETION OF TEN HOURS OF CLASSROOM 943
INSTRUCTION IN REAL ESTATE BROKERAGE at an institution of higher 946
education or any other institution that is approved by the 947
commission, ten hours of classroom instruction in real estate
brokerage. That instruction shall include, but not be limited 948
to, current issues in managing a real estate company or office. 949
Upon completion of the instruction, the licensee shall cause to 950
be filed with the superintendent a certificate from the 951
institution showing that the licensee successfully has completed 953
the requirements of this division in accordance with the
appropriate time period, as follows: 954
(a) Persons licensed on or after January 1, 1990, but 956
before January 1, 2001, shall submit proof of successful 958
completion of instruction to the superintendent within twelve 959
months after the date of issuance of the salesperson's license; 960
(b) Persons licensed on or after January 1, 2001, shall 962
submit proof of successful completion of instruction to the 963
superintendent on or before the date the licensee's first 964
continuing education requirement, after licensure as a 965
salesperson, must be met under section 4735.141 of the Revised
Code.
If the instruction REQUIRED PROOF OF COMPLETION is not 967
successfully completed SUBMITTED TO THE SUPERINTENDENT within the 969
23
time period prescribed by this division TWELVE MONTHS OF THE DATE 970
A LICENSE IS ISSUED UNDER THIS SECTION, the license of the real 971
estate broker is suspended automatically without the taking of 972
any action by the commission SUPERINTENDENT. The broker then 973
shall have one year after the date of the suspension of the 975
broker's license to successfully complete the instruction 976
required under this division, and the broker's license shall not 977
be reinstated REACTIVATED by the superintendent until it is 978
established, to the satisfaction of the superintendent, that the 979
requirements of this division have been met AND THAT THE LICENSEE 980
IS IN COMPLIANCE WITH THIS CHAPTER. A LICENSEE'S LICENSE IS 981
REVOKED AUTOMATICALLY WITHOUT THE TAKING OF ANY ACTION BY THE 982
SUPERINTENDENT IF THE LICENSEE FAILS TO SUBMIT PROOF OF 983
COMPLETION OF THE EDUCATION REQUIREMENTS SPECIFIED UNDER DIVISION 984
(G)(1) OF THIS SECTION WITHIN TWELVE MONTHS OF THE DATE THE 985
LICENSE IS SUSPENDED.
(2) If the license of a real estate broker is suspended 987
pursuant to division (H)(G)(1) of this section, the license of a 989
real estate salesperson associated with that broker 990
correspondingly is suspended pursuant to division (B) of section 991
4735.20 of the Revised Code. However, the suspended license of 992
the associated real estate salesperson shall be reactivated and 993
no fee shall be charged or collected for that reactivation if all 994
of the following occur: 995
(a) That broker subsequently submits satisfactory proof to 997
the superintendent that the broker has complied with the 998
requirements of division (H)(G)(1) of this section and requests 1,000
that the broker's license as a real estate broker be reactivated; 1,002
(b) The superintendent then reactivates the broker's 1,005
license as a real estate broker;
(c) The associated real estate salesperson intends to 1,007
continue to be associated with that broker and otherwise is in 1,008
compliance with this chapter. 1,009
Sec. 4735.08. The superintendent of real estate shall 1,018
24
issue a real estate broker's license when he THE SUPERINTENDENT 1,019
is satisfied that: 1,020
(A) An applicant who is not a partnership, association, 1,022
LIMITED LIABILITY COMPANY, LIMITED LIABILITY PARTNERSHIP, or 1,023
corporation satisfies one of the following: 1,024
(1) Has received a grade of seventy-five per cent or 1,026
better PASSING SCORE on EACH PORTION OF the real estate broker's 1,028
examination administered under the supervision of the 1,029
superintendent AS DETERMINED BY RULE BY THE REAL ESTATE 1,030
COMMISSION;
(2) Is qualified to be licensed without examination as a 1,032
nonresident real estate broker, under division (E) of section 1,033
4735.07 of the Revised Code; 1,034
(3) Is qualified, as determined in the discretion of the 1,036
superintendent, to be licensed without examination as one who was 1,037
licensed as a real estate broker at some time during the two-year 1,038
period immediately preceding the date of the current application, 1,039
under division (G) of section 4735.07 of the Revised Code. 1,040
(B) All the members or officers who are authorized to 1,042
perform the functions of a real estate broker as the agents of an 1,043
applicant that is a partnership, association, LIMITED LIABILITY 1,044
COMPANY, LIMITED LIABILITY PARTNERSHIP, or corporation, are 1,045
licensed themselves as real estate brokers under this chapter. 1,046
Sec. 4735.09. (A) Application for a license as a real 1,055
estate salesperson shall be made in writing to the superintendent 1,057
of real estate on forms furnished by the superintendent and 1,058
signed by the applicant. The application shall be in the form 1,061
prescribed by the superintendent and shall contain such
information as is required by this chapter and the rules of the 1,062
Ohio real estate commission. The application shall be 1,063
accompanied by a recent photograph of the applicant and the 1,064
recommendation of the real estate broker with whom the applicant 1,066
is associated or with whom the applicant intends to be 1,067
associated, certifying that the applicant is honest, truthful, 1,068
25
and of good reputation, has not been convicted of a felony or a 1,069
crime involving moral turpitude, and has not been finally 1,070
adjudged by a court to have violated any municipal, state, or 1,071
federal civil rights laws relevant to the protection of 1,072
purchasers or sellers of real estate, which conviction or 1,073
adjudication the applicant has not disclosed to the 1,074
superintendent, and recommending that the applicant be admitted 1,075
to the REAL ESTATE SALESPERSON examination for real estate 1,076
salesman. 1,077
(B) A fee of forty-nine dollars shall accompany the 1,080
application, which fee shall include the license if it is issued. 1,081
The application fee shall be retained by the superintendent if 1,082
the applicant is admitted to the examination for the license or 1,083
the examination requirement is waived, but, if an applicant is 1,084
not so admitted and a waiver is not involved, one-half of the fee 1,085
shall be retained by the superintendent to cover the expenses of 1,086
processing the application and the other one-half shall be 1,087
returned to the applicant. A fee of forty-nine dollars shall be 1,089
charged by the superintendent for each successive application 1,090
made by the applicant. Four dollars of each fee shall be 1,092
credited to the real estate education and research fund. 1,093
(C) There shall be no limit placed on the number of times 1,095
an applicant may retake the examination. 1,096
(D) The superintendent, with the consent of the 1,098
commission, may enter into an agreement with a recognized 1,099
national testing service to administer the real estate 1,100
salesperson's examination under the superintendent's supervision 1,102
and control, consistent with the requirements of this chapter as 1,103
to the contents of the examination. 1,104
If the superintendent, with the consent of the commission, 1,106
enters into an agreement with a national testing service to 1,107
administer the real estate salesperson's examination, the 1,109
superintendent may require an applicant to pay the testing
service's examination fee directly to the testing service. If 1,111
26
the superintendent requires the payment of the examination fee 1,112
directly to the testing service, each applicant shall submit to 1,114
the superintendent a processing fee in an amount determined by
the Ohio real estate commission pursuant to division (A)(1) of 1,115
section 4735.10 of the Revised Code. 1,116
(E) The superintendent shall issue a real estate 1,118
salesperson's license when satisfied that the applicant has 1,120
received a grade of seventy-five per cent or better PASSING SCORE 1,121
on EACH PORTION OF the salesperson's examination AS DETERMINED BY 1,123
RULE BY THE REAL ESTATE COMMISSION, except that the 1,124
superintendent may waive ONE OR MORE OF the requirement 1,125
REQUIREMENTS of examination if THIS SECTION IN the CASE OF AN 1,126
applicant WHO is a licensed real estate salesperson in another 1,127
state and that state does both of the following: 1,128
(1) It applies licensing requirements similar to those 1,130
applied in this state as determined by the superintendent. 1,131
(2) It extends similar PURSUANT TO A reciprocity to 1,133
licensed real estate salespersons in this AGREEMENT WITH THE 1,135
LICENSING AUTHORITY OF THE state FROM WHICH THE APPLICANT HOLDS A 1,136
VALID REAL ESTATE SALESPERSON'S LICENSE. 1,137
(F) No applicant for a salesperson's license shall take 1,139
the salesperson's examination who has not established to the 1,141
satisfaction of the superintendent that the applicant: 1,142
(1) Is honest, truthful, and of good reputation; 1,144
(2)(a) Has not been convicted of a felony or crime of 1,146
moral turpitude or, if the applicant has been so convicted, the 1,148
superintendent has disregarded the conviction because the 1,149
applicant has proven to the superintendent, by a preponderance of 1,150
the evidence, that the applicant's activities and employment 1,151
record since the conviction show that the applicant is honest, 1,153
truthful, and of good reputation, and there is no basis in fact 1,155
for believing that the applicant again will violate the laws 1,156
involved;
(b) Has not been finally adjudged by a court to have 1,158
27
violated any municipal, state, or federal civil rights laws 1,159
relevant to the protection of purchasers or sellers of real 1,160
estate or, if the applicant has been so adjudged, at least two 1,162
years have passed since the court decision and the superintendent 1,163
has disregarded the adjudication because the applicant has 1,164
proven, by a preponderance of the evidence, that the applicant is 1,165
honest, truthful, and of good reputation, and there is no basis 1,166
in fact for believing that the applicant again will violate the 1,168
laws involved.
(3) Has not, during any period in which the applicant was 1,170
licensed under this chapter, violated any provision of, or any 1,171
rule adopted pursuant to this chapter, or, if the applicant has 1,172
violated such provision or rule, has established to the 1,173
satisfaction of the superintendent that the applicant will not 1,174
again violate such provision or rule; 1,175
(4) Is at least eighteen years of age; 1,177
(5) If born after the year 1950, has a high school diploma 1,179
or its equivalent as recognized by the state department of 1,180
education; 1,181
(6)(a) Has IF BEGINNING INSTRUCTION PRIOR TO AUGUST 1, 1,184
2001, HAS successfully completed at an institution of higher 1,186
education all of the following:
(i) Thirty hours of classroom instruction in real estate 1,188
practice; 1,189
(ii) Thirty hours of classroom instruction that includes 1,191
the subjects of Ohio real estate law, municipal, state, and 1,192
federal civil rights law, new case law on housing discrimination, 1,193
desegregation issues, and methods of eliminating the effects of 1,194
prior discrimination. If feasible, the classroom instruction in 1,195
Ohio real estate law shall be taught by a member of the faculty 1,196
of an accredited law school. If feasible, the classroom 1,197
instruction in municipal, state, and federal civil rights law, 1,198
new case law on housing discrimination, desegregation issues, and 1,199
methods of eliminating the effects of prior discrimination shall 1,200
28
be taught by a staff member of the Ohio civil rights commission 1,201
who is knowledgeable with respect to those subjects. The 1,202
requirements of this division do not apply to an applicant who is 1,203
admitted to practice before the supreme court. 1,204
(iii) Thirty hours of classroom instruction in real estate 1,206
appraisal; 1,207
(iv) Thirty hours of classroom instruction in real estate 1,209
finance. 1,210
(b) Any person who has not been licensed as a real estate 1,212
salesperson or broker within a four-year period immediately 1,214
preceding the person's current application for the salesperson's 1,215
examination shall have successfully completed the classroom 1,216
instruction required by division (F)(6)(a) of this section within 1,217
a ten-year period immediately preceding the person's current 1,218
application for the salesperson's examination. 1,219
(7) IF BEGINNING INSTRUCTION, AS DETERMINED BY THE 1,221
SUPERINTENDENT, ON OR AFTER AUGUST 1, 2001, HAS SUCCESSFULLY 1,223
COMPLETED AT AN INSTITUTION OF HIGHER EDUCATION ALL OF THE 1,224
FOLLOWING: 1,225
(a) FORTY HOURS OF CLASSROOM INSTRUCTION IN REAL ESTATE 1,227
PRACTICE; 1,228
(b) FORTY HOURS OF CLASSROOM INSTRUCTION THAT INCLUDES THE 1,230
SUBJECTS OF OHIO REAL ESTATE LAW, MUNICIPAL, STATE, AND FEDERAL 1,231
CIVIL RIGHTS LAW, NEW CASE LAW ON HOUSING DISCRIMINATION, 1,232
DESEGREGATION ISSUES, AND METHODS OF ELIMINATING THE EFFECTS OF 1,234
PRIOR DISCRIMINATION. IF FEASIBLE, THE CLASSROOM INSTRUCTION IN 1,235
OHIO REAL ESTATE LAW SHALL BE TAUGHT BY A MEMBER OF THE FACULTY 1,236
OF AN ACCREDITED LAW SCHOOL. IF FEASIBLE, THE CLASSROOM 1,237
INSTRUCTION IN MUNICIPAL, STATE, AND FEDERAL CIVIL RIGHTS LAW, 1,238
NEW CASE LAW ON HOUSING DISCRIMINATION, DESEGREGATION ISSUES, AND 1,239
METHODS OF ELIMINATING THE EFFECTS OF PRIOR DISCRIMINATION SHALL 1,240
BE TAUGHT BY A STAFF MEMBER OF THE OHIO CIVIL RIGHTS COMMISSION 1,241
WHO IS KNOWLEDGEABLE WITH RESPECT TO THOSE SUBJECTS. THE 1,242
REQUIREMENTS OF THIS DIVISION DO NOT APPLY TO AN APPLICANT WHO IS 1,243
29
ADMITTED TO PRACTICE BEFORE THE SUPREME COURT. 1,244
(c) TWENTY HOURS OF CLASSROOM INSTRUCTION IN REAL ESTATE 1,246
APPRAISAL; 1,247
(d) TWENTY HOURS OF CLASSROOM INSTRUCTION IN REAL ESTATE 1,249
FINANCE. 1,250
(G) Each NO LATER THAN TWELVE MONTHS AFTER THE DATE OF 1,252
ISSUE OF A REAL ESTATE SALESPERSON LICENSE TO A LICENSEE, THE 1,253
licensee shall submit proof SATISFACTORY TO THE SUPERINTENDENT, 1,254
ON FORMS MADE AVAILABLE BY THE SUPERINTENDENT, of successful 1,255
completion, at an institution of higher education or any other 1,257
institution approved by the commission, of ten hours of classroom 1,258
instruction in real estate courses that cover current issues 1,259
regarding consumers, real estate practice, ethics, and real 1,260
estate law. Upon completion of the instruction, the licensee 1,261
shall cause to have filed with the superintendent a certificate 1,262
from the institution showing that the licensee successfully has 1,263
completed the requirements of this division in accordance with 1,266
the appropriate time period, as follows: 1,267
(1) Persons licensed on or after January 1, 1990, but 1,269
before January 1, 2001, shall submit proof of successful 1,270
completion of the instruction to the superintendent within twelve 1,272
months after the date of issuance of the real estate broker's 1,273
license;
(2) Persons licensed on or after January 1, 2001, shall 1,275
submit proof of successful completion of the instruction to the 1,276
superintendent on or before the licensee's first continuing 1,278
education requirement, after licensure as a broker, must be met 1,279
under section 4735.141 of the Revised Code. 1,280
If proof of successful completion of the required 1,282
instruction is not submitted within the time period prescribed by 1,283
this division TWELVE MONTHS OF THE DATE A LICENSE IS ISSUED UNDER 1,284
THIS SECTION, the licensee's license is suspended automatically 1,286
without the taking of any action by the commission 1,287
SUPERINTENDENT. The superintendent immediately shall notify the 1,289
30
broker with whom such salesperson is associated of the suspension 1,290
of the salesperson's license. A salesperson whose license has 1,292
been suspended under this division shall have one year TWELVE
MONTHS after the date of the suspension of the salesperson's 1,294
license to submit proof of successful completion of the 1,295
instruction required under this division. No such license shall 1,297
be reactivated by the superintendent until it is established, to 1,298
the satisfaction of the superintendent, that the requirements of 1,299
this division have been met AND THAT THE LICENSEE IS IN 1,300
COMPLIANCE WITH THIS CHAPTER. A LICENSEE'S LICENSE IS REVOKED 1,301
AUTOMATICALLY WITHOUT THE TAKING OF ANY ACTION BY THE 1,302
SUPERINTENDENT WHEN THE LICENSEE FAILS TO SUBMIT THE REQUIRED
PROOF OF COMPLETION OF THE EDUCATION REQUIREMENTS UNDER DIVISION 1,304
(G) OF THIS SECTION WITHIN TWELVE MONTHS OF THE DATE THE LICENSE 1,305
IS SUSPENDED.
(H) Examinations shall be given entirely in writing, 1,307
except that they shall be administered with reasonable 1,308
accommodations in accordance with the requirements of the 1,310
"Americans with Disabilities Act of 1990," 104 Stat. 327, 42 1,311
U.S.C. 12101. The contents of an examination shall be consistent 1,314
with the classroom instructional requirements of division 1,315
(F)(6)(a) OR (7) of this section. All persons whose applications 1,317
are pending shall be notified by mail at least sixty days prior 1,318
to such examination, except that an AN applicant who has
completed the classroom instructional requirements of division 1,319
(F)(6)(a) OR (7) of this section at the time of application may 1,321
SHALL be examined at the next regularly scheduled examination NO 1,323
LATER THAN TWELVE MONTHS after the applicant is notified of the 1,325
applicant's admission to the examination. Nothing in this 1,327
section shall be construed to prevent an applicant from 1,328
completing, in the discretion of the superintendent, the 1,329
classroom instructional requirements of division (F)(6)(a) of 1,330
this section concurrently with the processing of the applicant's 1,332
application for examination.
31
Sec. 4735.10. (A)(1) The Ohio real estate commission may 1,341
adopt reasonable rules in accordance with Chapter 119. of the 1,342
Revised Code, necessary for implementing the provisions of this 1,343
chapter relating, but not limited to, the following: 1,344
(a) The form and manner of filing applications for 1,346
license; 1,347
(b) Times and form of examination for license; 1,349
(c) Placing an existing broker's license in escrow ON 1,351
DEPOSIT OR A SALESPERSON'S LICENSE ON AN INACTIVE STATUS for an 1,352
indefinite period upon good cause shown. 1,353
(2) The commission shall adopt reasonable rules in 1,355
accordance with Chapter 119. of the Revised Code, for 1,356
implementing the provisions of this chapter relating to the 1,357
following:
(a) The issuance, renewal, suspension, AND revocation of 1,359
licenses, other sanctions that may be imposed for violations of 1,360
this chapter, and the conduct of hearings related to these 1,362
actions, AND THE PROCESS OF REACTIVATING A LICENSE; 1,363
(b) Standards for the approval of courses of study 1,365
required for licenses, or offered in preparation for license 1,366
examinations, or required as continuing education for licenses. 1,367
The rules shall specify that no standard for the approval of a 1,369
course of study required as continuing education for licensees
shall require that licensees pass an examination as a condition 1,370
for the successful completion of a continuing education 1,371
requirement. A person providing a continuing education course 1,372
may administer examinations for the purpose of evaluating the 1,373
effectiveness of the course.
(c) Guidelines to ensure that continuing education classes 1,376
are open to all persons licensed under this chapter. The rules 1,377
shall specify that an organization that sponsors a continuing 1,378
education class may offer its members a reasonable reduction in 1,379
the fees charged for the class. 1,380
(d) Requirements for trust accounts and property 1,382
32
management accounts. The rules shall specify that: 1,383
(i) Brokerages engaged in the management of property for 1,386
another may, pursuant to a written contract with the property 1,387
owner, exercise signatory authority for withdrawals from property 1,388
management accounts maintained in the name of the property owner. 1,389
The exercise of authority for withdrawals does not constitute a 1,390
violation of any provision of division (A) of section 4735.18 of 1,391
the Revised Code. 1,393
(ii) The interest earned on property management trust 1,396
accounts maintained in the name of the property owner or the
broker shall be payable to the property owner unless otherwise 1,397
specified in a written contract. 1,398
(e) Annual certificates of continuation in business NOTICE 1,400
OF RENEWAL FORMS and filing deadlines based on a staggered system 1,401
of renewal with deadlines distributed throughout the year; 1,403
(f) SPECIAL ASSESSMENTS UNDER DIVISION (A) OF SECTION 1,405
4735.12 OF THE REVISED CODE. 1,406
(B) The commission shall MAY adopt rules in accordance 1,408
with Chapter 119. of the Revised Code establishing standards and 1,410
guidelines with which the superintendent of real estate shall 1,411
comply in the exercise of the following powers: 1,412
(1) Appointment and recommendation of ancillary trustees 1,414
under section 4735.05 of the Revised Code; 1,415
(2) Rejection of names proposed to be used by 1,417
partnerships, associations, LIMITED LIABILITY COMPANIES, LIMITED 1,418
LIABILITY PARTNERSHIPS, and corporations, under division (A) of 1,420
section 4735.06 of the Revised Code;
(3) Acceptance and rejection of applications to take the 1,422
broker and salesperson examinations and licensure, with waiver of 1,424
examination, under sections APPROPRIATE WAIVERS PURSUANT TO 1,425
DIVISION (E) OF SECTION 4735.07 and SECTION 4735.09 of the 1,426
Revised Code;
(4) Approval of applications of brokers to place their 1,428
licenses on deposit and to become salespersons under section 1,430
33
4735.13 of the Revised Code;
(5) Appointment of hearing examiners under section 119.09 1,432
of the Revised Code; 1,433
(6) Acceptance and rejection of applications to take the 1,435
foreign real estate dealer and salesperson examinations and 1,436
licensure, with waiver of examination, under sections 4735.27 and 1,437
4735.28 of the Revised Code; 1,438
(7) Qualification of foreign real estate under section 1,440
4735.25 of the Revised Code. 1,441
If at any time there is no rule in effect establishing a 1,443
guideline or standard required by this division, the 1,444
superintendent shall MAY adopt a rule in accordance with Chapter 1,445
119. of the Revised Code for such purpose. 1,446
(C) The commission or superintendent may hear testimony in 1,448
matters relating to the duties imposed upon them, and the 1,449
president of the commission and superintendent may administer 1,450
oaths. The commission or superintendent may require other proof 1,451
of the honesty, truthfulness, and good reputation of any person 1,452
named in an application for a real estate broker's or real estate 1,454
salesperson's license before admitting the applicant to the 1,455
examination or issuing a license. 1,456
Sec. 4735.11. The form and size of licenses issued under 1,465
this chapter shall be prescribed by the Ohio real estate 1,466
commission. Each BROKER'S OR FOREIGN REAL ESTATE DEALER'S 1,467
license shall show the name and address of the licensee, and in 1,468
the case of partnership, association, LIMITED LIABILITY COMPANY, 1,469
LIMITED LIABILITY PARTNERSHIP, and corporation licenses, the name 1,470
and address of each of the members or officers of the 1,471
partnership, association, LIMITED LIABILITY COMPANY, LIMITED 1,472
LIABILITY PARTNERSHIP, or corporation. A real estate salesman's 1,473
SALESPERSON'S license or a foreign real estate salesman's 1,474
SALESPERSON'S license shall show the name of the real estate 1,475
broker or foreign real estate dealer with whom he THE SALESPERSON 1,476
is or is to be associated. Each license shall be issued under 1,477
34
the seal prescribed in section 121.20 of the Revised Code and be 1,478
signed by the president of the commission and the superintendent 1,479
of real estate.
Sec. 4735.12. (A) The real estate recovery fund is hereby 1,488
created in the state treasury, to be administered by the 1,489
superintendent of real estate. Amounts collected by the 1,490
superintendent as prescribed in this section and interest earned 1,491
on the assets of the fund shall be credited by the treasurer of 1,492
state to the fund. The amount of money in the fund shall be 1,493
ascertained by the superintendent as of the first day of October 1,494
JULY of each year. If that amount is less than one million 1,496
dollars, the director of budget and management may, upon the 1,497
request of the superintendent, transfer from the real estate 1,498
operating fund to the real estate recovery fund such sum as will 1,499
bring the real estate recovery fund to that amount. 1,500
THE COMMISSION, IN ACCORDANCE WITH RULES ADOPTED UNDER 1,502
DIVISION (A)(2)(f) OF SECTION 4735.10 OF THE REVISED CODE, SHALL 1,503
IMPOSE A SPECIAL ASSESSMENT NOT TO EXCEED TEN DOLLARS ANNUALLY ON 1,504
EACH LICENSEE FILING A NOTICE OF RENEWAL UNDER SECTION 4735.14 OF 1,506
THE REVISED CODE IF THE AMOUNT AVAILABLE IN THE FUND IS LESS THAN
ONE MILLION DOLLARS ON THE FIRST DAY OF JULY PRECEDING THAT 1,507
FILING. THE COMMISSION MAY IMPOSE A SPECIAL ASSESSMENT NOT TO 1,508
EXCEED FIVE DOLLARS ANNUALLY IF THE AMOUNT AVAILABLE IN THE FUND 1,510
IS GREATER THAN ONE MILLION DOLLARS, BUT LESS THAN TWO MILLION
DOLLARS ON THE FIRST DAY OF JULY PRECEDING THAT FILING. THE 1,511
COMMISSION SHALL NOT IMPOSE A SPECIAL ASSESSMENT IF THE AMOUNT 1,512
AVAILABLE IN THE FUND EXCEEDS TWO MILLION DOLLARS ON THE FIRST 1,513
DAY OF JULY PRECEDING THAT FILING. 1,514
(B)(1) Any person who obtains a final judgment in any 1,516
court of competent jurisdiction against any broker or salesperson 1,517
licensed under this chapter, on the grounds of conduct that is in 1,518
violation of this chapter or the rules adopted under it, and that 1,519
is associated with an act or transaction of a broker or 1,520
salesperson THAT ONLY A LICENSED REAL ESTATE BROKER OR LICENSED 1,521
35
REAL ESTATE SALESPERSON IS AUTHORIZED TO PERFORM AS specified or 1,522
comprehended in division (A) or (C) of section 4735.01 of the 1,524
Revised Code, may file a verified application, as described in 1,525
division (B)(3) of this section, in any court of common pleas for 1,527
an order directing payment out of the real estate recovery fund 1,528
of the portion of the judgment that remains unpaid and that 1,529
represents the actual and direct loss sustained by the applicant. 1,530
(2) Punitive damages, ATTORNEY'S FEES, and interest on a 1,532
judgment are not recoverable from the fund. In the discretion of 1,534
the superintendent of real estate, attorney's fees and court 1,535
costs may be recovered from the fund, and, if the superintendent 1,536
authorizes the recovery of attorney's fees or court costs, the 1,537
order of the court of common pleas then may direct their payment 1,538
from the fund. 1,539
(3) The application shall specify the nature of the act or 1,541
transaction upon which the underlying judgment was based, the 1,542
activities of the applicant in pursuit of remedies available 1,543
under law for the collection of judgments, and the actual and 1,544
direct losses, attorney's fees, and the court costs sustained or 1,546
incurred by the applicant. The applicant shall attach to the
application a copy of each pleading and order in the underlying 1,547
court action. 1,548
(4) The court shall order the superintendent to make such 1,550
payments out of the fund when the person seeking the order has 1,551
shown all of the following: 1,552
(a) The person has obtained a judgment, as provided in 1,554
this division;
(b) All appeals from the judgment have been exhausted and 1,556
the person has given notice to the superintendent, as required by 1,558
division (C) of this section;
(c) The person is not a spouse of the judgment debtor, or 1,560
the personal representative of such spouse; 1,561
(d) The person has diligently pursued the person's 1,564
remedies against all the judgment debtors and all other persons 1,565
36
liable to the person in the transaction for which the person 1,566
seeks recovery from the fund; 1,567
(e) The person is making the person's application not more 1,569
than one year after termination of all proceedings, including 1,570
appeals, in connection with the judgment. 1,571
(5) Divisions (B)(1) to (4) of this section do not apply 1,573
to any of the following: 1,574
(a) Actions arising from property management accounts 1,576
maintained in the name of the property owner; 1,577
(b) A bonding company when it is not a principal in a real 1,579
estate transaction; 1,580
(c) A person in an action for the payment of a commission 1,583
or fee for the performance of an act or transaction specified or 1,584
comprehended in division (A) or (C) of section 4735.01 of the
Revised Code; 1,585
(d) Acts that occurred on or before March 4, 1975 LOSSES 1,587
INCURRED BY INVESTORS IN REAL ESTATE IF THE APPLICANT AND THE 1,588
LICENSEE ARE PRINCIPALS IN THE INVESTMENT. 1,589
(C) A person who applies to a court of common pleas for an 1,591
order directing payment out of the fund shall file notice of the 1,592
application with the superintendent. The superintendent may 1,593
defend any such action on behalf of the fund and shall have 1,594
recourse to all appropriate means of defense and review, 1,595
including examination of witnesses, VERIFICATION OF ACTUAL AND 1,596
DIRECT LOSSES, AND CHALLENGES TO THE UNDERLYING JUDGMENT REQUIRED 1,597
IN DIVISION (B)(4)(a) OF THIS SECTION TO DETERMINE WHETHER THE 1,599
UNDERLYING JUDGMENT IS BASED ON ACTIVITY ONLY A LICENSED BROKER
OR LICENSED SALESPERSON IS PERMITTED TO PERFORM. The 1,600
superintendent may move the court at any time to dismiss the 1,601
application when it appears there are no triable issues and the 1,602
application is without merit. The motion may be supported by 1,603
affidavit of any person having knowledge of the facts and may be 1,604
made on the basis that the application, including the judgment 1,605
referred to in it, does not form the basis for a meritorious 1,606
37
recovery claim; provided, that the superintendent shall give 1,607
written notice to the applicant at least ten days before such 1,608
motion. The superintendent may, subject to court approval, 1,609
compromise a claim based upon the application of an aggrieved 1,610
party. The superintendent shall not be bound by any prior 1,611
compromise or stipulation of the judgment debtor.
(D) Notwithstanding any other provision of this section, 1,613
the liability of the fund shall not exceed forty thousand dollars 1,614
for any one licensee. If a licensee LICENSEE'S LICENSE is 1,615
reinstated REACTIVATED as provided in division (E) of this 1,617
section, the liability of the fund for the licensee under this 1,618
section shall again be forty thousand dollars, but only for 1,619
transactions which THAT occur subsequent to the time of
reinstatement REACTIVATION. 1,620
If the forty-thousand-dollar liability of the fund is 1,622
insufficient to pay in full the valid claims of all aggrieved 1,623
persons by whom claims have been filed against any one licensee, 1,624
the forty thousand dollars shall be distributed among them in the 1,626
ratio that their respective claims bear to the aggregate of valid 1,627
claims or in such other manner as the court finds equitable. 1,628
Distribution of moneys shall be among the persons entitled to 1,629
share in it, without regard to the order of priority in which 1,630
their respective judgments may have been obtained or their claims 1,631
have been filed. Upon petition of the superintendent, the court 1,632
may require all claimants and prospective claimants against one 1,633
licensee to be joined in one action, to the end that the 1,634
respective rights of all such claimants to the fund may be 1,635
equitably adjudicated and settled.
(E) If the superintendent pays from the fund any amount in 1,637
settlement of a claim or toward satisfaction of a judgment 1,638
against a licensed broker or salesperson, the license of the 1,640
broker or salesperson shall be automatically suspended upon the
date of payment from the fund. No such broker or salesperson THE 1,641
SUPERINTENDENT shall be granted reinstatement NOT REACTIVATE THE 1,643
38
SUSPENDED LICENSE OF THAT BROKER OR SALESPERSON until the broker 1,644
or salesperson has repaid in full, plus interest per annum at the 1,646
rate specified in division (A) of section 1343.03 of the Revised 1,647
Code, the amount paid from the fund on his THE BROKER'S OR 1,648
SALESPERSON'S account. A discharge in bankruptcy does not 1,649
relieve a person from the suspension and requirements for
reinstatement REACTIVATION provided in this section UNLESS THE 1,651
UNDERLYING JUDGMENT HAS BEEN INCLUDED IN THE DISCHARGE AND HAS 1,652
NOT BEEN REAFFIRMED BY THE DEBTOR.
(F) Two dollars of each fee collected for a real estate 1,654
broker's license or a real estate salesperson's license, or for 1,657
the renewal of such licenses, may, as determined by the
superintendent, be credited to the fund, if the fund balance does 1,658
not exceed two million dollars. 1,659
If, at any time, the money deposited in the fund is 1,661
insufficient to satisfy any duly authorized claim or portion of a 1,662
claim, the superintendent shall, when sufficient money has been 1,663
deposited in the fund, satisfy such unpaid claims or portions, in 1,664
the order that such claims or portions were originally filed, 1,665
plus accumulated interest per annum at the rate specified in 1,666
division (A) of section 1343.03 of the Revised Code. 1,667
(G) When, upon the order of the court, the superintendent 1,669
has paid from the fund any sum to the judgment creditor, the 1,670
superintendent shall be subrogated to all of the rights of the 1,671
judgment creditor to the extent of the amount so paid, and the 1,672
judgment creditor shall assign all the judgment creditor's right, 1,673
title, and interest in the judgment to the superintendent to the 1,674
extent of the amount so paid. Any amount and interest so 1,675
recovered by the superintendent on the judgment shall be 1,676
deposited in the fund.
(H) Nothing contained in this section shall limit the 1,678
authority of the superintendent to take disciplinary action 1,679
against any licensee under other provisions of this chapter; nor 1,680
shall the repayment in full of all obligations to the fund by any 1,681
39
licensee nullify or modify the effect of any other disciplinary 1,682
proceeding brought pursuant to this chapter. 1,683
(I) The superintendent shall collect from the fund a 1,685
service fee in an amount equivalent to the interest rate 1,686
specified in division (A) of section 1343.03 of the Revised Code 1,687
multiplied by the annual interest earned on the assets of the 1,688
fund, to defray the expenses incurred in the administration of 1,689
the fund. 1,690
Sec. 4735.13. (A) The license of a real estate broker 1,699
shall be prominently displayed in the office or place of business 1,700
of the broker, and no license shall authorize the licensee to do 1,701
business except from the location specified in it. IF THE BROKER 1,703
MAINTAINS MORE THAN ONE PLACE OF BUSINESS WITHIN THE STATE, THE 1,704
BROKER SHALL APPLY FOR AND PROCURE A DUPLICATE LICENSE FOR EACH 1,705
BRANCH OFFICE MAINTAINED BY THE BROKER. EACH BRANCH OFFICE SHALL
BE IN THE CHARGE OF A LICENSED BROKER OR SALESPERSON. THE BRANCH 1,706
OFFICE LICENSE SHALL BE PROMINENTLY DISPLAYED AT THE BRANCH 1,707
OFFICE LOCATION. 1,708
(B) The license of each real estate salesman SALESPERSON 1,710
shall be mailed to and remain in the possession of the licensed 1,711
broker with whom he THE SALESPERSON is or is to be associated 1,712
until canceled THE LICENSEE PLACES THE LICENSE ON INACTIVE STATUS 1,713
or until the salesman leaves the broker SALESPERSON LEAVES THE 1,714
BROKERAGE OR IS TERMINATED. The broker shall keep each 1,716
salesman's SALESPERSON'S license in a way that it can, and shall 1,717
on request, be made immediately available for public inspection 1,719
at the office or place of business of the broker. Except as 1,720
provided in division (G) of this section, immediately upon the 1,721
SALESPERSON'S LEAVING THE ASSOCIATION OR termination of the 1,722
association of a real estate salesman SALESPERSON with the 1,723
broker, the broker shall return the salesman's SALESPERSON'S 1,724
license to the superintendent of real estate for cancellation. 1,725
THE FAILURE OF A BROKER TO RETURN THE LICENSE OF A REAL 1,727
ESTATE SALESPERSON WHO LEAVES OR WHO IS TERMINATED WITHIN THREE 1,728
40
BUSINESS DAYS OF THE RECEIPT OF A WRITTEN REQUEST FROM THE 1,729
SALESPERSON FOR THE RETURN OF THE LICENSE, WHEN A COPY OF THE 1,730
REQUEST ALSO IS FORWARDED TO THE SUPERINTENDENT, IS PRIMA FACIE 1,731
EVIDENCE OF MISCONDUCT UNDER DIVISION (A)(6) OF SECTION 4735.18 1,732
OF THE REVISED CODE.
(C) Any licensee who is convicted of a felony or a crime 1,734
involving moral turpitude or of violating any federal, state, or 1,735
municipal civil rights law pertaining to discrimination in 1,736
housing, or any court that issues a finding of an unlawful 1,737
discriminatory practice pertaining to housing accommodations 1,738
described in division (H) of section 4112.02 of the Revised Code 1,739
or that convicts a licensee of a violation of any municipal civil 1,740
rights law pertaining to housing discrimination, shall notify the 1,741
superintendent of the conviction or finding within fifteen days. 1,742
If a licensee fails to notify the superintendent within the 1,743
required time, the superintendent immediately may revoke the 1,744
license of the licensee. 1,745
Any court that convicts a licensee of a violation of any 1,747
municipal civil rights law pertaining to housing discrimination 1,748
also shall notify the Ohio civil rights commission within fifteen 1,749
days of the conviction. 1,750
(D) In case of any change of business location, a broker 1,752
shall give a notice in writing to the superintendent, whereupon 1,753
the superintendent shall issue new licenses for the unexpired 1,754
period without charge. A IF A broker who changes a business 1,756
location without giving the REQUIRED notice and without the 1,757
issuance of the RECEIVING new licenses is guilty of misconduct 1,759
THAT ACTION IS PRIMA-FACIE EVIDENCE OF MISCONDUCT under division 1,760
(A)(6) of section 4735.18 of the Revised Code. 1,761
(E) If a real estate broker desires to associate himself 1,763
with another real estate broker in the capacity of a real estate 1,764
salesman SALESPERSON, he THE BROKER shall apply to the 1,766
superintendent to deposit his THE BROKER'S real estate broker's 1,767
license with the superintendent and for the issuance of a real 1,768
41
estate salesman's SALESPERSON'S license. The application shall 1,769
be made on a form prescribed by the superintendent and shall be 1,770
accompanied by the recommendation of the real estate broker with 1,771
whom the applicant intends to become associated, a fee of 1,772
thirteen dollars to cover the expenses of the superintendent in 1,774
holding the applicant's real estate broker's license, and a fee 1,775
of twenty-five dollars for the real estate salesman's 1,776
SALESPERSON'S license. Four dollars of each THE fee shall be 1,778
credited to the real estate education and research fund. If the 1,779
superintendent is satisfied that the applicant is honest, 1,780
truthful, and of good reputation, has not been convicted of a 1,781
felony or a crime involving moral turpitude, and has not been 1,782
finally adjudged by a court to have violated any municipal, 1,783
state, or federal civil rights laws relevant to the protection of 1,784
purchasers or sellers of real estate, and that the association of 1,785
the real estate broker and the applicant will be in the public 1,786
interest, the superintendent shall grant the application and 1,787
issue a real estate salesman's SALESPERSON'S license to him THE 1,788
APPLICANT. Any license so deposited with the superintendent 1,789
shall be subject to this chapter. On or before the first day of 1,790
November of each year, a A broker who intends to deposit his THE 1,792
BROKER'S license with the superintendent, as provided in this 1,793
section, shall give written notice of this fact IN A FORMAT 1,794
PRESCRIBED BY THE SUPERINTENDENT to all salesmen SALESPERSONS 1,796
associated with him THE BROKER WHEN APPLYING TO PLACE THE 1,797
BROKER'S LICENSE ON DEPOSIT.
(F) If a real estate broker desires to become a member or 1,799
officer of a partnership, association, LIMITED LIABILITY COMPANY, 1,800
LIMITED LIABILITY PARTNERSHIP, or corporation that is or intends 1,802
to become a licensed real estate broker, he THE BROKER shall 1,803
notify the superintendent of his THE BROKER'S intentions. The 1,804
notice of intention shall be on a form prescribed by the
superintendent and shall be accompanied by a fee of twenty-five 1,806
dollars. Four dollars of the fee shall be credited to the real 1,807
42
estate education and research fund. 1,808
No real estate broker who is a member or officer of a 1,810
partnership, association, LIMITED LIABILITY COMPANY, LIMITED 1,811
LIABILITY PARTNERSHIP, or corporation that is a licensed real 1,812
estate broker shall perform any acts as a real estate broker 1,813
other than as the agent of the partnership, association, LIMITED 1,814
LIABILITY COMPANY, LIMITED LIABILITY PARTNERSHIP, or corporation, 1,816
and he SUCH BROKER shall not have any real estate salesmen 1,817
SALESPERSONS associated with him THE BROKER. 1,818
(G) If a real estate broker or salesman SALESPERSON enters 1,820
the armed forces, he THE BROKER OR SALESPERSON may place his THE 1,822
BROKER'S OR SALESPERSON'S license on deposit with the Ohio real
estate commission until six months after his discharge from the 1,823
armed services. The licensee shall pay a fee of seven dollars to 1,824
cover the expense of the commission in holding the existing 1,825
license NOT BE REQUIRED TO RENEW THE LICENSE ANNUALLY UNTIL THE 1,826
RENEWAL DATE THAT FOLLOWS THE DATE OF DISCHARGE FROM THE ARMED 1,827
FORCES. Any license deposited with the commission shall be 1,828
subject to this chapter. Any licensee whose license is on 1,829
deposit under this division and who fails to meet the continuing 1,830
education requirements of section 4735.141 of the Revised Code 1,831
because he THE LICENSEE is in the armed forces shall satisfy the 1,832
commission that he THE LICENSEE has complied with the continuing 1,833
education requirements within twelve months of his THE LICENSEE'S 1,835
discharge. The commission shall notify the licensee of his THE 1,837
LICENSEE'S obligations under section 4735.141 of the Revised Code 1,838
at the time he THE LICENSEE applies for release REACTIVATION of 1,839
his THE LICENSEE'S license. 1,840
Sec. 4735.14. (A) Each license issued under this chapter, 1,849
shall be valid without further recommendation or examination 1,850
until canceled PLACED IN AN INACTIVE STATUS, revoked, suspended, 1,851
or such license expires by operation of law. 1,852
(B) Each licensed broker, brokerage, or salesperson shall 1,854
file, on or before the date the Ohio real estate commission has 1,856
43
adopted by rule for that licensee in accordance with division 1,857
(A)(2)(e) of section 4735.10 of the Revised Code, a certificate 1,858
of continuation in business NOTICE OF RENEWAL on a form 1,859
prescribed by the superintendent of real estate. THE LICENSEE 1,860
SHALL INDICATE ON THE FORM WHETHER THE LICENSEE WISHES TO 1,861
MAINTAIN THE LICENSEE'S LICENSE IN AN ACTIVE OR INACTIVE STATUS. 1,862
The certificate of continuation in business NOTICE OF RENEWAL 1,863
shall be mailed by the superintendent to the MOST CURRENT 1,865
personal residence ADDRESS of each broker or salesperson AS FILED 1,866
WITH THE SUPERINTENDENT BY THE LICENSEE and the place of business 1,867
ADDRESS of the brokerage two months prior to the filing deadline. 1,868
(C) The license of any real estate broker, brokerage, or 1,871
salesperson that fails to file a certificate of continuation 1,872
NOTICE OF RENEWAL on or before the filing deadline of each 1,873
ensuing year shall be canceled SUSPENDED AUTOMATICALLY WITHOUT 1,875
THE TAKING OF ANY ACTION BY THE SUPERINTENDENT. A canceled 1,876
SUSPENDED license may be reactivated within one year TWELVE 1,877
MONTHS of cancellation THE DATE OF SUSPENSION, provided that the 1,878
renewal fee plus a penalty fee of fifty per cent of the renewal 1,880
fee is paid to the superintendent. Failure to reactivate the 1,881
license as provided in this division shall result in AUTOMATIC
revocation of the license WITHOUT THE TAKING OF ANY ACTION BY THE 1,883
SUPERINTENDENT. No person, partnership, association, 1,884
corporation, limited liability company, or limited partnership 1,885
shall engage in any act or acts for which a real estate license 1,886
is required while that entity's license is canceled PLACED IN AN 1,887
INACTIVE STATUS, SUSPENDED, or revoked. THE COMMISSION SHALL 1,888
ADOPT RULES IN ACCORDANCE WITH CHAPTER 119. OF THE REVISED CODE
TO PROVIDE TO LICENSEES NOTICE OF SUSPENSION OR REVOCATION OR 1,889
BOTH.
(D) EACH LICENSEE SHALL NOTIFY THE COMMISSION OF A CHANGE 1,891
IN PERSONAL RESIDENCE ADDRESS. A LICENSEE'S FAILURE TO NOTIFY 1,892
THE COMMISSION OF A CHANGE IN PERSONAL RESIDENCE ADDRESS DOES NOT 1,893
NEGATE THE REQUIREMENT TO FILE THE LICENSE RENEWAL BY THE 1,894
44
REQUIRED DEADLINE ESTABLISHED BY THE COMMISSION BY RULE UNDER 1,895
DIVISION (A)(2)(e) OF SECTION 4735.10 OF THE REVISED CODE. 1,897
(E) THE SUPERINTENDENT SHALL NOT RENEW A LICENSE IF THE 1,899
LICENSEE IS NOT IN COMPLIANCE WITH THIS CHAPTER. 1,901
Sec. 4735.141. (A) Except as otherwise provided in this 1,910
division, each person licensed under section 4735.07 or 4735.09 1,911
of the Revised Code shall submit proof satisfactory to the 1,912
superintendent of real estate that the licensee has 1,913
satisfactorily completed thirty classroom hours of continuing 1,914
education, as prescribed by the Ohio real estate commission
pursuant to section 4735.10 of the Revised Code, on or before the 1,915
licensee's birthday occurring three years after the licensee's 1,916
date of initial licensure, and on or before the licensee's 1,917
birthday every three years thereafter.
Persons licensed as real estate salespersons who 1,920
subsequently become licensed real estate brokers shall continue 1,921
to submit proof of continuing education in accordance with the 1,922
time period established in this section.
The requirements of this section shall not apply to any 1,926
physically handicapped licensee as provided in division (E) of
this section. 1,927
Each licensee who is seventy years of age or older on June 1,930
13, 1996 June 13, 1996 June 14, 1999, shall submit, on or before 1,931
the licensee's birthday occurring three years after the effective 1,932
date of this amendment JUNE 30, 1999, and on or before the 1,934
licensee's birthday every three years thereafter, proof 1,935
satisfactory to the superintendent of real esate ESTATE that the 1,936
licensee has satisfactorily completed June 13, 1996 a total of 1,938
nine classroom hours of continuing education, including 1,939
instruction in Ohio real estate law; recently enacted state and 1,941
federal laws affecting the real estate industry; municipal,
state, and federal civil rights law; and canons of ethics for the 1,943
real estate industry as adopted by the commission. A LICENSEE 1,944
WHO IS SEVENTY YEARS OF AGE OR OLDER WHOSE LICENSE IS IN AN 1,945
45
INACTIVE STATUS IS EXEMPT FROM THE CONTINUING EDUCATION 1,946
REQUIREMENTS SPECIFIED IN THIS SECTION. The commission shall 1,947
adopt reasonable rules in accordance with Chapter 119. of the 1,949
Revised Code to carry out the purposes of this paragraph. 1,950
A person providing any course of continuing education may 1,952
administer examinations to licensees for the purpose of 1,953
evaluating the effectiveness of the course, but passage of an 1,954
examination by a licensee shall not be a condition for successful 1,955
completion of the continuing education requirements of this 1,956
section. 1,957
(B) The continuing education requirements of this section 1,959
shall be completed in schools, seminars, and educational 1,960
institutions approved by the commission. Such approval shall be 1,961
given according to rules established by the commission under the 1,962
procedures of Chapter 119. of the Revised Code, and shall not be 1,963
limited to institutions providing two-year or four-year degrees. 1,964
Each school, seminar, or educational institution approved under 1,965
this division shall be open to all licensees on an equal basis. 1,966
(C) If the requirements of this section are not met by a 1,968
licensee within the period specified, the licensee's license 1,969
shall be suspended automatically without the taking of any action 1,970
by the superintendent. The superintendent shall notify the 1,971
licensee of the license suspension. Any license so suspended 1,972
shall remain suspended until it is reactivated by the 1,973
superintendent. No such license shall be reactivated until it is 1,975
established, to the satisfaction of the superintendent, that the 1,977
requirements of this section have been met. If the requirements 1,978
of this section are not met within one year TWELVE MONTHS from 1,979
the date the license was suspended, the license shall be revoked 1,982
automatically without the taking of any action by the commission. 1,983
A person whose license has been revoked and whose revoked license 1,984
was issued prior to January 1, 1980, may have the person's 1,985
license reactivated by the superintendent at any time after it 1,987
has been revoked upon submitting proof satisfactory to the 1,988
46
superintendent that the person has satisfactorily completed 1,989
during the period since the revocation of the person's license 1,990
thirty classroom hours of continuing education as prescribed by 1,991
the commission pursuant to section 4735.10 of the Revised Code. 1,992
Upon reactivation of the person's license, the licensee shall 1,994
comply with the educational requirements of division (A) of this 1,995
section SUPERINTENDENT.
(D) If the license of a real estate broker is suspended 1,997
pursuant to division (C) of this section, the license of a real 1,999
estate salesperson associated with that broker correspondingly is 2,001
suspended pursuant to division (B) of section 4735.20 of the 2,002
Revised Code. However, the suspended license of the associated 2,003
real estate salesperson shall be reactivated and no fee shall be 2,006
charged or collected for that reactivation if all of the 2,009
following occur: 2,010
(1) That broker subsequently submits proof to the 2,012
superintendent that the broker has complied with the requirements 2,013
of this section and requests that the broker's license as a real 2,014
estate broker be reactivated. 2,015
(2) The superintendent then reactivates the broker's 2,017
license as a real estate broker. 2,019
(3) The associated real estate salesperson intends to 2,021
continue to be associated with that broker, has complied with the 2,022
requirements of this section, and otherwise is in compliance with 2,023
this chapter. 2,024
Any person whose license is reactivated pursuant to this 2,026
division shall submit proof satisfactory to the superintendent 2,027
that the person has completed thirty hours of continuing 2,028
education, as prescribed by the Ohio real estate commission, on 2,029
or before the third year following the licensee's birthday 2,030
occurring immediately after reactivation. 2,031
(E) Any licensee who is a physically handicapped licensee 2,033
at any time during the last three months of the third year of the 2,034
licensee's continuing education reporting period may receive an 2,035
47
extension of time to submit proof to the superintendent that the 2,036
licensee has satisfactorily completed the required thirty hours 2,037
of continuing education. To receive an extension of time, the 2,038
licensee shall submit a request to the division of real estate 2,039
for the extension and proof satisfactory to the commission that 2,040
the licensee was a physically handicapped licensee at some time 2,041
during the last three months of the three-year reporting period. 2,042
The proof shall include, but is not limited to, a signed 2,043
statement by the licensee's attending physician describing the 2,044
physical disability, certifying that the licensee's disability is 2,045
of such a nature as to prevent the licensee from attending any 2,046
classroom instruction lasting at least three hours in duration, 2,047
and stating the expected duration of the physical disability. 2,048
The licensee shall request the extension and provide the 2,049
physician's statement to the division no later than one month
prior to the end of the licensee's three-year continuing 2,050
education reporting period, unless the physical disability did 2,051
not arise until the last month of the three-year reporting 2,052
period, in which event the licensee shall request the extension 2,053
and provide the physician's statement as soon as practical after 2,054
the occurrence of the physical disability. A licensee granted an 2,055
extension pursuant to this division who is no longer a physically 2,056
handicapped licensee and who submits proof of completion of the 2,057
continuing education during the extension period, shall submit, 2,058
for future continuing education reporting periods, proof of 2,059
completion of the continuing education requirements according to 2,060
the schedule established in division (A) of this section. 2,061
Sec. 4735.15. The fees for branch office licenses, 2,070
transfers, certificates of continuation in business ANNUAL 2,071
RENEWALS, late filings, and foreign real estate dealer and 2,073
salesman SALESPERSON licenses shall be as follows: 2,074
(A) Branch office license, eight dollars; 2,076
(B) Transfer REACTIVATION OR TRANSFER of a broker's 2,078
license into or out of a partnership, association, LIMITED 2,081
48
LIABILITY COMPANY, LIMITED LIABILITY PARTNERSHIP, or corporation 2,082
or from one partnership, association, LIMITED LIABILITY COMPANY, 2,084
LIMITED LIABILITY PARTNERSHIP, or corporation to another 2,085
partnership, association, LIMITED LIABILITY COMPANY, LIMITED 2,086
LIABILITY PARTNERSHIP, or corporation, twenty-five dollars. An 2,087
application for such transfer shall be made to the superintendent 2,089
of real estate on forms provided by the superintendent. 2,090
(C) Transfer REACTIVATION OR TRANSFER of a license by a 2,092
real estate salesman SALESPERSON, twenty dollars; 2,094
(D) Certificate of continuation in the business ANNUAL 2,096
RENEWAL of A real estate broker BROKER'S LICENSE, forty-nine 2,098
dollars. If the licensee is a partnership, association, LIMITED 2,101
LIABILITY COMPANY, LIMITED LIABILITY PARTNERSHIP, or corporation, 2,102
the full broker's continuation RENEWAL fee shall be required for 2,103
each member of such partnership, association, LIMITED LIABILITY 2,106
COMPANY, LIMITED LIABILITY PARTNERSHIP, or corporation that is a 2,107
real estate broker. If the real estate broker has not less than 2,109
eleven nor more than twenty real estate salesmen SALESPERSONS 2,110
associated with him THE BROKER, an additional fee of sixty-four 2,112
dollars shall be assessed to the brokerage. For every additional 2,113
ten real estate salesmen SALESPERSONS or fraction of that number, 2,114
the brokerage assessment fee shall be increased in the amount of 2,117
thirty-seven dollars. 2,118
(E) Certificate of continuation in business ANNUAL RENEWAL 2,120
of real estate salesman SALESPERSON'S LICENSE, thirty-nine 2,122
dollars;
(F) Certificate of continuation in the business ANNUAL 2,124
RENEWAL of A real estate broker BROKER'S or salesman 2,126
SALESPERSON'S LICENSE filed within fifteen days TWELVE MONTHS 2,127
after the thirty-first day of December LICENSEE'S RENEWAL DATE, 2,128
an additional late filing penalty of fifty per cent of the 2,130
required fee.;
(G) Foreign real estate dealer's license and each annual 2,132
renewal of the license, thirty dollars per salesman SALESPERSON 2,133
49
employed by the dealer, but not less than one hundred fifty 2,135
dollars;
(H) Foreign real estate salesman's SALESPERSON'S license 2,137
and each annual renewal of the license, fifty dollars. 2,138
All fees collected under this section shall be paid to the 2,140
treasurer of state. Four dollars of each such fee shall be 2,142
credited to the real estate education and research fund. 2,143
In all cases, the fee and any penalty shall accompany the 2,145
application for THE license or, LICENSE transfer, OR LICENSE 2,147
REACTIVATION or shall accompany the filing of the certificate of 2,148
continuation in business ANNUAL RENEWAL.
The commission may establish by rule reasonable fees for 2,150
services not otherwise established by this chapter. 2,151
Sec. 4735.16. (A) Every real estate broker licensed under 2,160
this chapter shall have and maintain a definite place of business 2,161
in this state and shall erect or maintain a sign on the premises 2,162
plainly stating that the licensee is a real estate broker. If 2,163
the real estate broker maintains one or more branch offices, the 2,164
real estate broker shall erect or maintain a sign at each branch 2,165
office plainly stating that the licensee is a real estate broker. 2,166
(B)(1) Any licensed real estate broker or salesperson who 2,168
advertises to buy, sell, exchange, or lease real estate, OR TO 2,169
ENGAGE IN ANY ACT REGULATED BY THIS CHAPTER, including, but not 2,170
limited to, any licensed real estate broker or salesperson who 2,172
advertises to sell, exchange, or lease real estate that the 2,174
licensee owns, shall be identified in the advertisement by name 2,175
and by indicating that the licensee is a real estate broker or 2,177
real estate salesperson. Except a real estate salesperson who 2,179
advertises the sale, exchange, or lease of real estate that the 2,180
salesperson owns and that is not listed for sale, exchange, or 2,181
lease with a real estate broker, any real estate salesperson who 2,182
advertises, as provided in this section, also shall indicate in 2,184
the advertisement the name of the broker under whom the 2,186
salesperson is licensed and the fact that the salesperson's 2,187
50
broker is a real estate broker. The name of the broker shall be 2,188
displayed in equal prominence with the name of the salesperson in 2,189
the advertisement. 2,190
Any (2) IF ANY real estate broker or real estate 2,192
salesperson who advertises in a manner other than as provided in 2,194
this section is guilty of violating OR THE RULES ADOPTED UNDER 2,195
THIS SECTION, THAT ADVERTISEMENT IS PRIMA FACIE EVIDENCE OF A 2,196
VIOLATION UNDER division (A)(21) of section 4735.18 of the 2,197
Revised Code. 2,198
WHEN THE SUPERINTENDENT DETERMINES THAT PRIMA FACIE 2,200
EVIDENCE OF A VIOLATION OF DIVISION (A)(21) OF SECTION 4735.18 OF 2,202
THE REVISED CODE OR ANY OF THE RULES ADOPTED THEREUNDER EXISTS, 2,203
THE SUPERINTENDENT MAY DO EITHER OF THE FOLLOWING: 2,204
(a) INITIATE DISCIPLINARY ACTION UNDER SECTION 4735.051 OF 2,206
THE REVISED CODE FOR A VIOLATION OF DIVISION (A)(21) OF SECTION 2,208
4735.18 OF THE REVISED CODE, IN ACCORDANCE WITH CHAPTER 119. OF 2,209
THE REVISED CODE; 2,210
(b) PERSONALLY, OR BY CERTIFIED MAIL, SERVE A CITATION 2,212
UPON THE LICENSEE. 2,213
(C)(1) EVERY CITATION SERVED UNDER THIS SECTION SHALL GIVE 2,215
NOTICE TO THE LICENSEE OF THE ALLEGED VIOLATION OR VIOLATIONS 2,217
CHARGED AND INFORM THE LICENSEE OF THE OPPORTUNITY TO REQUEST A 2,218
HEARING IN ACCORDANCE WITH CHAPTER 119. OF THE REVISED CODE. THE 2,219
CITATION ALSO SHALL CONTAIN A STATEMENT OF A FINE OF TWO HUNDRED 2,221
DOLLARS PER VIOLATION, NOT TO EXCEED TWO THOUSAND FIVE HUNDRED 2,222
DOLLARS PER CITATION. ALL FINES COLLECTED PURSUANT TO THIS 2,223
SECTION SHALL BE CREDITED TO THE REAL ESTATE RECOVERY FUND, 2,224
CREATED IN THE STATE TREASURY UNDER SECTION 4735.12 OF THE 2,225
REVISED CODE.
(2) IF ANY LICENSEE IS CITED THREE TIMES WITHIN TWELVE 2,227
CONSECUTIVE MONTHS, THE SUPERINTENDENT SHALL INITIATE 2,228
DISCIPLINARY ACTION PURSUANT TO SECTION 4735.051 OF THE REVISED 2,229
CODE FOR ANY SUBSEQUENT VIOLATION THAT OCCURS WITHIN THE SAME 2,230
TWELVE-MONTH PERIOD. 2,231
51
(3) IF A LICENSEE FAILS TO REQUEST A HEARING WITHIN THIRTY 2,233
DAYS OF THE DATE OF SERVICE OF THE CITATION, OR THE LICENSEE AND 2,234
THE SUPERINTENDENT FAIL TO REACH AN ALTERNATIVE AGREEMENT, THE 2,235
CITATION SHALL BECOME FINAL. 2,236
(4) UNLESS OTHERWISE INDICATED, THE LICENSEE NAMED IN A 2,238
FINAL CITATION MUST MEET ALL REQUIREMENTS CONTAINED IN THE FINAL 2,239
CITATION WITHIN THIRTY DAYS OF THE EFFECTIVE DATE OF THAT 2,240
CITATION.
(5) THE SUPERINTENDENT SHALL SUSPEND AUTOMATICALLY A 2,242
LICENSEE'S LICENSE IF THE LICENSEE FAILS TO COMPLY WITH DIVISION 2,243
(C)(4) OF THIS SECTION. 2,244
(D) A real estate broker or salesperson obtaining the 2,246
signature of a party to a listing or other agreement involved in 2,247
a real estate transaction shall furnish a copy of the listing or 2,248
other agreement to the party immediately after obtaining the 2,249
party's signature. Every broker's office shall prominently 2,250
display in the same immediate area as licenses are displayed a 2,251
statement that it is illegal to discriminate against any person 2,252
because of race, color, religion, sex, familial status as defined 2,253
in section 4112.01 of the Revised Code, national origin, 2,254
disability as defined in that section, or ancestry in the sale or 2,256
rental of housing or residential lots, in advertising the sale or 2,257
rental of housing, in the financing of housing, or in the 2,258
provision of real estate brokerage services and that blockbusting 2,259
also is illegal. The statement shall bear the United States 2,260
department of housing and urban development equal housing logo, 2,261
shall contain the information that the broker and the broker's 2,262
salespersons are licensed by the division of real estate and that 2,263
the division can assist with any consumer complaints or 2,264
inquiries, and shall explain the provisions of section 4735.12 of 2,266
the Revised Code. The statement shall provide the division's 2,267
address and telephone number. The Ohio real estate commission 2,268
shall provide by rule for the wording and size of the statement. 2,269
The pamphlet required under section 4735.03 of the Revised Code 2,270
52
shall contain the same statement that is required on the 2,271
statement displayed as provided in this section and shall be made 2,272
available by real estate brokers and salespersons to their 2,273
clients. The commission shall provide the wording and size of 2,274
the pamphlet.
Sec. 4735.18. (A) Subject to section 4735.32 of the 2,284
Revised Code, the superintendent of real estate, upon the 2,285
superintendent's own motion, may investigate the conduct of any 2,286
licensee. Subject to section 4735.32 of the Revised Code, the 2,287
Ohio real estate commission shall, pursuant to section 4735.051 2,288
of the Revised Code, impose disciplinary sanctions upon any 2,289
licensee who, whether or not acting in the licensee's capacity as 2,290
a real estate broker or salesperson, or in handling the
licensee's own property, is found to have been convicted of a 2,292
felony or a crime of moral turpitude, and shall, pursuant to
section 4735.051 of the Revised Code, impose disciplinary 2,293
sanctions upon any licensee who, in the licensee's capacity as a 2,294
real estate broker or salesperson, or in handling the licensee's 2,295
own property, is found guilty of: 2,296
(1) Knowingly making any misrepresentation; 2,298
(2) Making any false promises with intent to influence, 2,300
persuade, or induce; 2,301
(3) A continued course of misrepresentation or the making 2,303
of false promises through agents, salespersons, advertising, or 2,304
otherwise;
(4) Acting for more than one party in a transaction except 2,307
as permitted by and in compliance with section 4735.71 of the
Revised Code; 2,308
(5) Failure within a reasonable time to account for or to 2,310
remit any money coming into the licensee's possession which 2,311
belongs to others; 2,312
(6) Dishonest or illegal dealing, gross negligence, 2,314
incompetency, or misconduct; 2,315
(7)(a) By final adjudication by a court, a violation of 2,317
53
any municipal or federal civil rights law relevant to the 2,318
protection of purchasers or sellers of real estate or, by final 2,319
adjudication by a court, any unlawful discriminatory practice 2,320
pertaining to the purchase or sale of real estate prohibited by 2,321
Chapter 4112. of the Revised Code, provided that such violation 2,322
arose out of a situation wherein parties were engaged in bona 2,323
fide efforts to purchase, sell, or lease real estate, in the 2,324
licensee's practice as a licensed real estate broker or 2,325
salesperson;
(b) A second or subsequent violation of any unlawful 2,327
discriminatory practice pertaining to the purchase or sale of 2,328
real estate prohibited by Chapter 4112. of the Revised Code or 2,329
any second or subsequent violation of municipal or federal civil 2,330
rights laws relevant to purchasing or selling real estate whether 2,331
or not there has been a final adjudication by a court, provided 2,332
that such violation arose out of a situation wherein parties were 2,333
engaged in bona fide efforts to purchase, sell, or lease real 2,334
estate. For any second offense under this division, the 2,335
commission shall suspend for a minimum of two months or revoke 2,336
the license of the broker or salesperson. For any subsequent 2,337
offense, the commission shall revoke the license of the broker or 2,338
salesperson. 2,339
(8) Procuring a license under this chapter, for the 2,341
licensee or any salesperson by fraud, misrepresentation, or 2,342
deceit;
(9) Having violated or failed to comply with any provision 2,344
of sections 4735.51 to 4735.74 of the Revised Code or having 2,345
willfully disregarded or violated any other provisions of this 2,346
chapter;
(10) As a real estate broker, having demanded, without 2,348
reasonable cause, other than from a broker licensed under this 2,351
chapter, a commission to which the licensee is not entitled, or, 2,352
as a real estate salesperson, having demanded, without reasonable 2,355
cause, a commission to which the licensee is not entitled;
54
(11) Having paid commissions or fees to, or divided 2,357
commissions or fees with, anyone not licensed as a real estate 2,358
broker or salesperson; 2,359
(12) Having falsely represented membership in any real 2,361
estate professional association of which the licensee is not a 2,362
member; 2,363
(13) Having accepted, given, or charged any undisclosed 2,365
commission, rebate, or direct profit on expenditures made for a 2,366
principal; 2,367
(14) Having offered anything of value other than the 2,369
consideration recited in the sales contract as an inducement to a 2,370
person to enter into a contract for the purchase or sale of real 2,371
estate or having offered real estate or the improvements on real 2,372
estate as a prize in a lottery or scheme of chance; 2,373
(15) Having acted in the dual capacity of real estate 2,375
broker and undisclosed principal, or real estate salesperson and 2,377
undisclosed principal, in any transaction;
(16) Having guaranteed, authorized, or permitted any 2,379
person to guarantee future profits which may result from the 2,380
resale of real property or cemetery interment rights; 2,381
(17) Having placed a sign on any property offering it for 2,383
sale or for rent without the consent of the owner or the owner's 2,384
authorized agent; 2,385
(18) Having induced any party to a contract of sale or 2,387
lease to break such contract for the purpose of substituting in 2,388
lieu of it a new contract with another principal; 2,389
(19) Having negotiated the sale, exchange, or lease of any 2,391
real property directly with an owner, purchaser, lessor, or 2,392
tenant knowing that such owner, purchaser, lessor, or tenant had 2,393
a written outstanding contract granting exclusive agency in 2,394
connection with such property to another real estate broker; 2,395
(20) Having offered real property for sale or for lease 2,397
without the knowledge and consent of the owner or the owner's 2,398
authorized agent, or on any terms other than those authorized by 2,399
55
the owner or the owner's authorized agent; 2,400
(21) Having published advertising, whether printed, radio, 2,402
display, or of any other nature, which was misleading or 2,403
inaccurate in any material particular, or in any way having 2,404
misrepresented any properties, terms, values, policies, or 2,405
services of the business conducted; 2,406
(22) Having knowingly withheld from or inserted in any 2,408
statement of account or invoice any statement that made it 2,409
inaccurate in any material particular; 2,410
(23) Having published or circulated unjustified or 2,412
unwarranted threats of legal proceedings which tended to or had 2,413
the effect of harassing competitors or intimidating their 2,414
customers; 2,415
(24) Having failed to keep complete and accurate records 2,417
of all transactions for a period of three years from the date of 2,418
the transaction, such records to include copies of listing forms, 2,419
earnest money receipts, offers to purchase and acceptances of 2,420
them, and records of receipts and disbursements of all funds 2,421
received by the licensee as broker and incident to the licensee's 2,422
transactions as such, and any other instruments or papers related 2,424
to the performance of any of the acts set forth in the definition 2,425
of a real estate broker; 2,426
(25) Failure of a real estate broker or salesperson to 2,428
furnish all parties involved in a real estate transaction true 2,429
copies of all listings and other agreements to which they are a 2,430
party, at the time each party signs them; 2,431
(26) Failure to maintain at all times a special or trust 2,433
bank account in a depository located in this state. The account 2,434
shall be noninterest-bearing, separate and distinct from any 2,435
personal or other account of the broker, and, except as provided 2,437
in division (A)(27) of this section, shall be used for the
deposit and maintenance of all escrow funds, security deposits, 2,438
and other moneys received by the broker in a fiduciary capacity. 2,439
The name, account number, if any, and location of the depository 2,440
56
wherein such special or trust account is maintained shall be 2,441
submitted in writing to the superintendent. Checks drawn on such 2,442
special or trust bank accounts are deemed to meet the conditions 2,443
imposed by section 1349.21 of the Revised Code.
(27) Failure to maintain at all times a special or trust 2,445
bank account in a depository in this state, to be used 2,446
exclusively for the deposit and maintenance of all rents, 2,447
security deposits, escrow funds, and other moneys received by the 2,448
broker in a fiduciary capacity in the course of managing real
property. This account shall be separate and distinct from any 2,449
other account maintained by the broker. The name, account 2,450
number, and location of the depository shall be submitted in 2,451
writing to the superintendent. This account may earn interest, 2,452
which shall be paid to the property owners on a pro rata basis. 2,453
Division (A)(27) of this section does not apply to brokers 2,455
who are not engaged in the management of real property on behalf 2,456
of real property owners. 2,457
(28) Having failed to put definite expiration dates in all 2,459
written agency agreements to which the broker is a party; 2,460
(29) Having an unsatisfied final judgment in any court of 2,462
record against the licensee arising out of the licensee's conduct 2,464
as a licensed broker or salesperson;
(30) Failing to render promptly upon demand a full and 2,466
complete statement of the expenditures by the broker or 2,467
salesperson of funds advanced by or on behalf of a party to a 2,468
real estate transaction to the broker or salesperson for the 2,469
purpose of performing duties as a licensee under this chapter in 2,470
conjunction with the real estate transaction; 2,471
(31) Failure within a reasonable time, after the receipt 2,473
of the commission by the broker, to render an accounting to and 2,474
pay a real estate salesperson the salesperson's earned share of 2,475
it;
(32) Failure to notify the real estate salesperson that 2,477
the licensee does not intend to list such salesperson on the 2,478
57
continuation in business form; 2,479
(33) Performing any service for another constituting the 2,481
practice of law, as determined by any court of law; 2,482
(34)(33) Having been adjudicated incompetent for the 2,484
purpose of holding the license by a court, as provided in section 2,485
5122.301 of the Revised Code. A license revoked or suspended 2,486
under this division shall be reinstated REACTIVATED upon proof to 2,488
the commission of the removal of the disability.
(35)(34) Having authorized or permitted a person to act as 2,490
an agent in the capacity of a real estate broker, or a real 2,491
estate salesperson, who was not then licensed as a real estate 2,492
broker or real estate salesperson under this chapter; 2,493
(35) HAVING KNOWINGLY INSERTED OR PARTICIPATED IN 2,495
INSERTING ANY MATERIALLY INACCURATE TERM IN A DOCUMENT, INCLUDING 2,496
NAMING A FALSE CONSIDERATION;
(36) HAVING FAILED TO INFORM THE LICENSEE'S CLIENT OF THE 2,498
EXISTENCE OF AN OFFER OR COUNTER OFFER OR HAVING FAILED TO 2,499
PRESENT AN OFFER OR COUNTER OFFER IN A TIMELY MANNER, UNLESS 2,500
OTHERWISE INSTRUCTED BY THE CLIENT, PROVIDED THE INSTRUCTION OF 2,501
THE CLIENT DOES NOT CONFLICT WITH ANY STATE OR FEDERAL LAW.
(B) Whenever the commission, pursuant to section 4735.051 2,503
of the Revised Code, imposes disciplinary sanctions for any 2,504
violation of this section, the commission also may impose such 2,505
sanctions upon the broker with whom the salesperson is affiliated 2,506
if the commission finds that the broker had knowledge of the 2,507
salesperson's actions that violated this section.
(C) The commission shall, pursuant to section 4735.051 of 2,509
the Revised Code, impose disciplinary sanctions upon any foreign 2,510
real estate dealer or salesperson who, in that capacity or in 2,511
handling the dealer's or salesperson's own property, is found 2,512
guilty of any of the acts or omissions specified or comprehended 2,513
in division (A) of this section insofar as the acts or omissions
pertain to foreign real estate. If the commission imposes such 2,514
sanctions upon a foreign real estate salesperson for a violation 2,515
58
of this section, the commission also may suspend or revoke the 2,516
license of the foreign real estate dealer with whom the 2,517
salesperson is affiliated if the commission finds that the dealer 2,518
had knowledge of the salesperson's actions that violated this 2,519
section.
(D) The commission may suspend, in whole or in part, the 2,521
imposition of the penalty of suspension of a license under this 2,522
section. 2,523
(E) The commission immediately shall notify the real 2,525
estate appraiser board of any disciplinary action taken under 2,526
this section against a licensee who also is a state-certified 2,527
real estate appraiser under Chapter 4763. of the Revised Code. 2,528
Sec. 4735.25. (A)(1) No person, other than an actual bona 2,537
fide owner selling for his THE OWNER'S own account in a single 2,538
transaction and not by way of repeated or successive 2,539
transactions, or a person excepted from obtaining a license under 2,540
section 4735.01 of the Revised Code, shall sell, lease, or 2,541
otherwise deal in this state in any foreign real estate unless 2,542
the person has qualified the foreign real estate pursuant to this 2,543
section and unless one of the following applies: 2,544
(a) The person was licensed under section 1707.15 or 2,546
1707.16 prior to October 14, 1969; 2,547
(b) The person was licensed as a foreign real estate 2,549
dealer or salesman SALESPERSON under former section 1707.331 of 2,550
the Revised Code prior to the effective date of this section, but 2,551
only until the expiration date of the license; 2,552
(c) The person is licensed under section 4735.27 or 2,554
4735.28 of the Revised Code. 2,555
(2) A licensed foreign real estate dealer or licensed 2,557
foreign real estate salesman SALESPERSON who is acting in a 2,558
fiduciary capacity for a bona fide owner of foreign real estate 2,560
in the sale or lease of that real estate, or who is otherwise 2,561
dealing in foreign real estate in a fiduciary capacity for its 2,562
bona fide owner, in a single transaction and not by way of 2,563
59
repeated or successive transactions for that owner, need not 2,564
qualify such real estate under this section. 2,565
(B) Any person, other than one of the excepted persons 2,567
under division (A) of this section, desiring to sell, lease, or 2,568
otherwise deal in any foreign real estate shall file an 2,569
application with the superintendent of real estate in the form 2,570
the superintendent prescribes, which application shall set forth 2,571
the following: 2,572
(1) An exact description of the foreign real estate sought 2,574
to be sold, leased, or dealt in; 2,575
(2) A map or plat prepared by a competent surveyor showing 2,577
the boundaries and dimensions of the foreign real estate and all 2,578
lots or subdivisions of it; 2,579
(3) The names of the owners of the foreign real estate, 2,581
with a detailed statement showing the financial responsibility of 2,582
each owner, together with the post office address of each, 2,583
including street numbers or another pertinent description; and if 2,584
any such owner is a corporation or association, a copy of its 2,585
articles or certificate of incorporation or of the agreement by 2,586
which it was created, unless a copy is already on file in the 2,587
office of the secretary of state, together with proof that it is 2,588
qualified to do business in this state, if it is a foreign 2,589
corporation; 2,590
(4) A list and description of all liens and encumbrances 2,592
on the foreign real estate; 2,593
(5) A full description of all improvements or developments 2,595
of every nature to be made or promised to be made on the foreign 2,596
real estate, the cost of the improvements or developments, and 2,597
the security, if any, for their completion; 2,598
(6) A copy of any building restrictions or other 2,600
restrictions upon the use of the foreign real estate; 2,601
(7) A copy, description, or plan showing the form of 2,603
contract, method, and terms of sale, lease, or other dealing to 2,604
be used in connection with the foreign real estate; 2,605
60
(8) A list or schedule of all sales prices of the foreign 2,607
real estate; 2,608
(9) A list or schedule of all commissions, allowances, or 2,610
compensations in any form that have been arranged or agreed to be 2,611
paid to the applicant, and to any dealers or salesmen 2,612
SALESPERSONS, by the owner or by any person interested in the 2,613
foreign real estate; 2,614
(10) Other information that the superintendent requires. 2,616
(C) All the statements, exhibits, and documents required 2,618
by the superintendent under this section, except properly 2,619
certified public documents, shall be verified by the oath of the 2,620
applicant or of any person having knowledge of the facts, and in 2,621
such manner and form as required by the superintendent. Failure 2,622
to comply with the requests of the superintendent in this regard 2,623
shall be a sufficient reason for a refusal by the superintendent 2,624
to qualify the foreign real estate. 2,625
(D) Upon filing the application, the applicant shall pay 2,627
to the superintendent a filing fee of five hundred dollars plus 2,628
an additional one dollar for each lot, unit, parcel, or interest 2,629
included in the offering, with the aggregate fee not to exceed 2,630
two thousand five hundred dollars, and shall deposit with the 2,631
superintendent a sum the superintendent may require for the 2,632
purpose of defraying the cost of verifying the statements of the 2,633
applicant, or for the purpose of determining that the provisions 2,634
of this chapter have been and will be complied with and that the 2,635
foreign real estate will not be sold, leased, or dealt in within 2,636
this state on grossly unfair terms, or in a method or on terms 2,637
that might defraud or deceive purchasers in this state. 2,638
(E) The superintendent, through the division of real 2,640
estate OR THE SUPERINTENDENT'S DESIGNEE EMPLOYED BY THE 2,641
DEPARTMENT OF COMMERCE, may inspect and examine the foreign real 2,642
estate or investigate the applicant or the persons interested in, 2,643
dealing in, or selling, the foreign real estate. The actual cost 2,644
of the inspection or examination, including the proper proportion 2,645
61
of the salaries of employees of the division of real estate who 2,646
conduct it, shall be paid by the applicant and may be retained by 2,647
the superintendent out of any deposit. An itemized statement of 2,648
such cost shall be furnished to the applicant. 2,649
(F) In order either to prevent fraud in the sale of 2,651
foreign real estate or to provide security for the performance of 2,652
agreements to make improvements on it, the superintendent may 2,653
require all payments for the foreign real estate to be made to a 2,654
bank in this state, and to be impounded in that bank and held in 2,655
escrow upon the terms the superintendent reasonably requires. 2,656
(G) If the superintendent is of the opinion that the 2,658
proposed sale, lease, or disposal is not on grossly unfair terms, 2,659
that the provisions of this chapter have been complied with, and 2,660
that the foreign real estate will not be sold, leased, or dealt 2,661
in, in a method or on terms that might defraud or deceive persons 2,662
in this state, he THE SUPERINTENDENT shall allow the 2,663
qualification of the foreign real estate for sale, lease, or 2,665
other disposition on the terms stated in the application or on 2,666
other terms, calculated to prevent fraud or deception, the 2,667
superintendent approves.
Section 2. That existing sections 4735.01, 4735.02, 2,669
4735.03, 4735.05, 4735.051, 4735.06, 4735.07, 4735.08, 4735.09, 2,670
4735.10, 4735.11, 4735.12, 4735.13, 4735.14, 4735.141, 4735.15, 2,671
4735.16, 4735.18, and 4735.25 of the Revised Code are hereby 2,673
repealed.
Section 3. Notwithstanding section 4735.141 of the Revised 2,675
Code as amended by this act, all persons licensed under sections 2,676
4735.07 and 4735.09 of the Revised Code before January 1, 2001, 2,677
shall submit proof satisfactory to the Superintendent of Real 2,678
Estate that the licensee has satisfactorily completed continuing 2,679
education, as prescribed by the Ohio Real Estate Commission
pursuant to section 4735.10 of the Revised Code and as to the 2,681
number of hours required under section 4735.141 of the Revised 2,682
Code, as that section existed prior to this act, in accordance 2,683
62
with the appropriate time period, as follows:
(A) For continuing education that, under section 4735.141 2,685
of the Revised Code, as it existed prior to this act, would have 2,687
been due in the year 2001, on or before the licensee's birthday 2,688
in the year 2002, and on or before the licensee's birthday every 2,689
three years thereafter;
(B) For continuing education that, under section 4735.141 2,691
of the Revised Code, as it existed prior to this act, would have 2,693
been due in the year 2002, on or before the licensee's birthday 2,694
in the year 2003, and on or before the licensee's birthday every 2,695
three years thereafter;
(C) For continuing education that, under section 4735.141 2,697
of the Revised Code, as it existed prior to this act, would have 2,699
been due in the year 2003, on or before the licensee's birthday 2,700
in the year 2004, and on or before the licensee's birthday every 2,701
three years thereafter.
Section 4. Notwithstanding section 4735.14 of the Revised 2,703
Code, for the license renewal period beginning January 1, 2001, 2,704
and ending December 31, 2001, licensees shall pay prorated 2,706
license renewal fees on or before the licensee's birthday in the 2,707
year 2001. Beginning January 1, 2002, and every year thereafter, 2,708
license renewal fees shall be paid on or before the licensee's 2,709
birthday in the amount specified in section 4735.14 of the 2,710
Revised Code. The prorated license renewal fee shall be paid as 2,711
follows:
Salesperson 2,714
Broker license license renewal 2,715
Month of birth renewal fee fee 2,716
January $49.00 $39.00 2,719
February $53.00 $42.00 2,720
March $57.00 $45.00 2,721
April $61.00 $48.00 2,722
May $65.00 $51.00 2,723
June $69.00 $54.00 2,724
63
July $73.00 $57.00 2,725
August $77.00 $60.00 2,726
September $81.00 $63.00 2,727
October $85.00 $66.00 2,728
November $89.00 $69.00 2,729
December $93.00 $72.00 2,730
Section 5. Sections 4735.07 and 4735.141 of the Revised 2,733
Code are presented in this act as composites of the sections as 2,735
amended by both Am. Sub. H.B. 18 and Am. Sub. H.B. 283 of the 2,736
123rd General Assembly, with the new language of neither of the 2,737
acts shown in capital letters. This is in recognition of the 2,738
principle stated in division (B) of section 1.52 of the Revised 2,739
Code that such amendments are to be harmonized where not 2,740
substantively irreconcilable and constitutes a legislative 2,741
finding that such is the resulting version in effect prior to the 2,742
effective date of this act.