| Section 1. That sections 4735.01, 4735.02, 4735.06, 4735.07, | 17 |
|
4735.09, 4735.10,
4735.12,
4635,13, 4735.14, 4735.141, 4735.15, | 18 |
|
4735.18, and 4735.20
be
amended and sections 4735.022 and 4735.052 | 19 |
|
of the
Revised Code
be enacted to
read as follows: | 20 |
| (A) "Real estate broker" includes any person, partnership, | 22 |
|
association, limited liability company, limited liability | 23 |
|
partnership, or corporation, foreign or domestic, who for
another, | 24 |
|
whether pursuant to a power of attorney or otherwise,
and who for | 25 |
|
a fee, commission, or other valuable consideration,
or with the | 26 |
|
intention, or in the expectation, or upon the promise
of receiving | 27 |
|
or collecting a fee, commission, or other valuable
consideration | 28 |
|
does any of the following: | 29 |
| (8) Is engaged in the business of charging an advance fee
or | 51 |
|
contracting for collection of a fee in connection with any | 52 |
|
contract whereby the broker undertakes primarily to promote
the | 53 |
|
sale,
exchange, purchase, rental, or leasing of real estate | 54 |
|
through its
listing in a publication issued primarily for such | 55 |
|
purpose, or
for referral of information concerning such real | 56 |
|
estate to
brokers, or both, except that this division does not | 57 |
|
apply to a
publisher of listings or compilations of sales of real | 58 |
|
estate by
their owners; | 59 |
| (F) "Foreign real estate dealer" includes any person, | 86 |
|
partnership, association, limited liability company, limited | 87 |
|
liability
partnership, or corporation, foreign or domestic,
who | 88 |
|
for another, whether pursuant to a power of attorney or
otherwise, | 89 |
|
and who for a fee, commission, or other valuable
consideration, or | 90 |
|
with the intention, or in the expectation, or
upon the promise of | 91 |
|
receiving or collecting a fee, commission, or
other valuable | 92 |
|
consideration, does or deals in any act or
transaction specified | 93 |
|
or comprehended in division (A) of this
section with respect to | 94 |
|
foreign real estate. | 95 |
| (H) Any person, partnership, association, limited liability | 101 |
|
company,
limited liability partnership, or corporation,
who, for | 102 |
|
another, in consideration of compensation, by fee,
commission, | 103 |
|
salary, or otherwise, or with the intention, in the
expectation, | 104 |
|
or upon the promise of receiving or collecting a
fee, does, or | 105 |
|
offers, attempts, or agrees to engage in, any
single act or | 106 |
|
transaction contained in the definition of a real
estate broker, | 107 |
|
whether an act is an
incidental part of a transaction, or the | 108 |
|
entire transaction,
shall be constituted a real estate broker or | 109 |
|
real estate
salesperson under this chapter. | 110 |
| (I) The terms "real estate broker," "real estate | 111 |
|
salesperson," "foreign real estate dealer," and
"foreign real | 112 |
|
estate salesperson" do not include a
person, partnership, | 113 |
|
association, limited liability company, limited
liability | 114 |
|
partnership, or
corporation, or the regular employees thereof, who | 115 |
|
perform any
of the acts or transactions specified or comprehended | 116 |
|
in division
(A) of this section, whether or not for, or with the | 117 |
|
intention,
in expectation, or upon the promise of receiving or | 118 |
|
collecting a
fee, commission, or other valuable consideration: | 119 |
| (1) With reference to real estate situated in this state
or | 120 |
|
any interest in it owned by such person, partnership,
association, | 121 |
|
limited liability company, limited liability
partnership, or | 122 |
|
corporation, or acquired on its own account in
the regular course | 123 |
|
of, or as an incident to the management of the
property and the | 124 |
|
investment in it; | 125 |
| (2) As receiver or trustee in bankruptcy, as guardian, | 126 |
|
executor, administrator, trustee, assignee, commissioner, or any | 127 |
|
person doing the things mentioned in this section, under
authority | 128 |
|
or appointment of, or incident to a proceeding in, any
court, or | 129 |
|
as a public officer, or as executor, trustee, or other
bona fide | 130 |
|
fiduciary under any trust agreement, deed of trust,
will, or other | 131 |
|
instrument creating a like bona fide fiduciary
obligation; | 132 |
(6) As a person who
enagesengages in the sale of | 140 |
|
manufactured homes
as
defined in division (C)(4) of section | 141 |
|
3781.06 of the Revised
Code, or of mobile homes as defined in | 142 |
|
division (O) of
section
4501.01 of the Revised Code, provided the | 143 |
|
sale does not
include
the negotiation,
sale, lease, exchange, or | 144 |
|
assignment of any
interest in real estate; | 145 |
| (L) "Superintendent"
or "superintendent of real estate" | 157 |
|
means the superintendent of
the division of real estate and | 158 |
|
professional licensing of this
state. Whenever the division or | 159 |
|
superintendent of real estate
is referred to or designated in any | 160 |
|
statute, rule, contract, or
other document, the reference or | 161 |
|
designation shall be deemed to
refer to the division or | 162 |
|
superintendent of real estate and
professional licensing, as the | 163 |
|
case may be. | 164 |
| (R) "Commercial real estate" means any parcel of
real estate | 183 |
|
in this state other than real estate
containing one to four | 184 |
|
residential units. "Commercial real
estate" does not include | 185 |
|
single-family residential units such as
condominiums, townhouses, | 186 |
|
manufactured homes, or homes in a
subdivision when sold, leased, | 187 |
|
or otherwise conveyed on a
unit-by-unit basis, even when those | 188 |
|
units are a part of a larger
building or parcel of real estate | 189 |
|
containing more than four
residential units. | 190 |
Sec. 4735.02. NoExcept as provided in section 4735.022 of | 199 |
|
the Revised Code, no person, partnership, association, limited | 200 |
|
liability
company, limited liability partnership, or
corporation | 201 |
|
shall act as a real estate broker or real estate
salesperson, or | 202 |
|
advertise or assume to act as such, without first
being licensed | 203 |
|
as provided in this chapter.
No person, partnership, association, | 204 |
|
limited liability company,
limited liability partnership, or | 205 |
|
corporation shall provide services
that require a license under | 206 |
|
this chapter if the licensee's license is
inactive, suspended, or | 207 |
|
a broker's license on deposit, or if the
license has been revoked.
| 208 |
|
Nothing contained in this chapter
shall be construed as | 209 |
|
authorizing a real estate
broker or salesperson to perform any | 210 |
|
service
constituting the practice of law. | 211 |
| No partnership, association, limited liability company, | 212 |
|
limited liability
partnership, or corporation holding a real | 213 |
|
estate license shall employ as an officer, director, manager, or | 214 |
|
principal employee any person previously holding a license as a | 215 |
|
real estate broker, real estate salesperson,
foreign real estate | 216 |
|
dealer, or foreign real estate
salesperson, whose license has been | 217 |
|
placed in inactive status, suspended, or
revoked and
who has not | 218 |
|
thereafter reactivated the license or received a new
license. | 219 |
| Sec. 4735.022. (A) An out-of-state commercial broker, for a | 220 |
|
fee, commission, or other valuable consideration, or in the | 221 |
|
expectation, or upon the promise of receiving or collecting a fee, | 222 |
|
commission, or other valuable consideration, may perform those | 223 |
|
acts that require a license under this chapter, with respect to | 224 |
|
commercial real estate, provided that the out-of-state commercial | 225 |
|
broker does all of the following: | 226 |
|
(C) By filing a consent-to-jurisdiction document as | 284 |
|
described under
division (A)(4) of this section, the
person giving | 285 |
|
the consent makes and constitutes the
secretary of
state as an | 286 |
|
agent for service of process in this
state including
service of | 287 |
|
summonses and subpoenas. Service of process upon
any person
may | 288 |
|
be initiated by leaving with the secretary of
state or an | 289 |
|
assistant secretary of state four copies of the
process, an | 290 |
|
affidavit stating the address of the
person given on the | 291 |
|
consent-to-jurisdiction document, and a fee of
five dollars. Upon | 292 |
|
receipt of the process, affidavit, and fee,
the secretary of state | 293 |
|
immediately shall give notice of the process to the person,
at the | 294 |
|
address given
in the affidavit and forward to that address
by | 295 |
|
certified mail,
return receipt requested, a copy of the
process. | 296 |
|
Service is
considered to be complete upon the mailing of
the | 297 |
|
notice and copy of
process in accordance with this division. | 298 |
|
(D) A person, partnership, association, limited liability | 299 |
|
company, limited liability partnership, or corporation licensed in | 300 |
|
a jurisdiction where there is no legal distinction between a real | 301 |
|
estate broker license and a real estate salesperson license must | 302 |
|
meet the requirements of division (A) of this section before | 303 |
|
engaging in any activity described in this section that requires a | 304 |
|
real estate broker
license in this state.
| 305 |
| Sec. 4735.052. (A) Upon receipt of a written complaint or | 306 |
|
upon the superintendent’s own motion, the superintendent may | 307 |
|
investigate any person that has allegedly violated section 4735.02 | 308 |
|
or 4735.25 of the Revised Code, except that the superintendent | 309 |
|
shall not initiate an investigation, pursuant to this section, of | 310 |
|
any person who held a valid license under this chapter any time | 311 |
|
during the twelve months preceding the date of the alleged | 312 |
|
violation. | 313 |
| (B) If, after investigation, the superintendent determines | 314 |
|
there exists reasonable evidence of a violation of section 4735.02 | 315 |
|
or 4735.25 of the Revised Code, within seven business days after | 316 |
|
that determination, the superintendent shall send the party who is | 317 |
|
the subject of the investigation, a written notice, by regular | 318 |
|
mail, that includes all of the following information: | 319 |
| (C) The commission shall hear the testimony of all parties | 333 |
|
present at the hearing and consider any written testimony | 334 |
|
submitted pursuant to division (B)(4) of this section, and | 335 |
|
determine if there has been a violation of section 4735.02 or | 336 |
|
4735.25 of the Revised Code. If the commission finds that a | 337 |
|
violation has occurred, the commission may assess a civil penalty, | 338 |
|
in an amount it determines, not to exceed one thousand dollars per | 339 |
|
violation. Each day a violation occurs or continues is a separate | 340 |
|
violation. The commission shall determine the terms of payment. | 341 |
|
The commission shall maintain a transcript of the proceedings of | 342 |
|
the hearing and issue a written opinion to all parties, citing its | 343 |
|
findings and grounds for any action taken. | 344 |
| (E) If a party fails to pay a civil penalty assessed | 348 |
|
pursuant to this section within the time prescribed by the | 349 |
|
commission, the superintendent shall forward to the attorney | 350 |
|
general the name of the party and the amount of the civil penalty, | 351 |
|
for the purpose of collecting that civil penalty. In addition to | 352 |
|
the civil penalty assessed pursuant to this section, the party | 353 |
|
also shall pay any fee assessed by the attorney general for | 354 |
|
collection of the civil penalty. | 355 |
| Sec. 4735.06. (A) Application for a license as a real | 356 |
|
estate broker shall be made to the superintendent of
real estate | 357 |
|
on forms furnished by the superintendent and
filed
with the | 358 |
|
superintendent and shall be signed by the
applicant or
its members | 359 |
|
or officers. Each application shall state the name
of the person | 360 |
|
applying and the location of the place of business
for which the | 361 |
|
license is desired, and give such other information
as the | 362 |
|
superintendent requires in the form of application
prescribed by | 363 |
|
the superintendent. | 364 |
| If the applicant is a partnership, limited liability company, | 365 |
|
limited
liability partnership, or association, the names
of all | 366 |
|
the members also shall be stated, and, if the applicant is
a | 367 |
|
corporation, the names of its president and of each of its | 368 |
|
officers also shall be stated. The superintendent has the right | 369 |
|
to reject the application of any partnership, association,
limited | 370 |
|
liability company, limited liability partnership,
or
corporation | 371 |
|
if the name proposed to be used by such partnership,
association, | 372 |
|
limited liability company, limited liability partnership,
or | 373 |
|
corporation is likely to mislead the public or if
the name is not | 374 |
|
such as to distinguish it from the name of any
existing | 375 |
|
partnership, association,
limited liability company, limited | 376 |
|
liability partnership,
or corporation licensed under
this chapter, | 377 |
|
unless there is filed with the application
the
written consent of | 378 |
|
such existing partnership, association,
limited liability company, | 379 |
|
limited liability partnership,
or
corporation, executed by a duly | 380 |
|
authorized representative of it,
permitting the use of the name of | 381 |
|
such existing partnership,
association,
limited liability company, | 382 |
|
limited liability partnership,
or corporation. | 383 |
| (B) A fee of sixty-nine dollars shall
accompany the | 384 |
application for a real estate broker's license, which fee
shall | 385 |
include theincludes the fee for the initial year of the licensing | 386 |
period, if a license
if it is issued. The application fee shall | 387 |
|
be retained by the superintendent if the applicant is admitted to | 388 |
|
the examination for the license or the examination requirement is | 389 |
|
waived, but, if an applicant is not so admitted and a waiver is | 390 |
|
not involved, one-half of the fee shall be retained by the | 391 |
|
superintendent to cover the expenses of processing the
application | 392 |
|
and the other one-half shall be returned to the
applicant. A fee | 393 |
|
of sixty-nine dollars shall
be charged by the
superintendent for | 394 |
|
each successive application made by an
applicant.
In the case of | 395 |
|
issuance of a three-year license, upon passing the examination, or | 396 |
|
upon waiver of the examination requirement, the applicant shall | 397 |
|
submit an additional fee of ninety-eight dollars, which fee | 398 |
|
includes the fee for the second and third year of the licensing | 399 |
|
period, except that the superintendent shall prorate that | 400 |
|
additional fee based upon the number of years remaining in a real | 401 |
|
estate salesperson's licensing period. | 402 |
| (C) Four dollars of each
application fee for a real estate | 403 |
|
broker's
license shall be credited to the real estate education | 404 |
|
and
research fund, which is hereby created in the state treasury.
| 405 |
|
The Ohio real estate commission may use the fund in discharging | 406 |
|
the duties prescribed in divisions (E), (F), and (G) of section | 407 |
|
4735.03 of the Revised Code and shall use it in the advancement
of | 408 |
|
education and research in real estate at any institution of
higher | 409 |
|
education in the state, or in contracting with any such | 410 |
|
institution for a particular research or educational project in | 411 |
|
the field of real estate, or in advancing loans, not exceeding | 412 |
|
eight hundred dollars, to applicants for salesperson
licenses, to | 413 |
|
defray the costs of satisfying the educational requirements of | 414 |
|
division (F) of section 4735.09 of the Revised Code. Such loans | 415 |
|
shall be made according to rules established by the commission | 416 |
|
under the procedures of Chapter 119. of the Revised Code, and
they | 417 |
|
shall be repaid to the fund within three years of the time
they | 418 |
|
are made. No more than ten thousand dollars shall be lent
from | 419 |
|
the fund in any one year. | 420 |
| The governor may appoint a representative from the
executive | 421 |
|
branch to be a member ex officio of the commission for
the purpose | 422 |
|
of advising on research requests or educational
projects. The | 423 |
|
commission shall report to the general assembly on
the third | 424 |
|
Tuesday after the third Monday in January of each year
setting | 425 |
|
forth the total amount contained in the fund and the
amount of | 426 |
|
each research grant that it has authorized and the
amount of each | 427 |
|
research grant requested. A copy of all research
reports shall be | 428 |
|
submitted to the state library of Ohio and the
library of the | 429 |
|
legislative service commission. | 430 |
| (D) If the superintendent, with the consent of the | 431 |
|
commission, enters into an agreement with a national testing | 432 |
|
service to administer the real estate broker's examination, | 433 |
|
pursuant to division (A) of section 4735.07 of the Revised Code, | 434 |
|
the superintendent may require an applicant to pay the testing | 435 |
|
service's
examination fee directly to the testing service. If the | 436 |
|
superintendent requires the payment of the examination fee | 437 |
|
directly to the testing service, each applicant shall submit to | 438 |
|
the
superintendent a processing fee in an amount determined by the | 439 |
|
Ohio
real estate commission pursuant to division (A)(2) of
section | 440 |
|
4735.10
of the Revised Code. | 441 |
| (2)(a) Has not been convicted of a felony or crime of
moral | 452 |
|
turpitude, or if the applicant has been so convicted,
the | 453 |
|
superintendent has disregarded the conviction because the | 454 |
|
applicant has proven to the superintendent, by a preponderance of | 455 |
|
the evidence, that the applicant's activities and employment | 456 |
|
record since the
conviction show that the applicant is honest, | 457 |
|
truthful, and
of good reputation, and there is no basis in fact | 458 |
|
for believing that the
applicant again will violate the laws | 459 |
|
involved; | 460 |
| (b) Has not been finally adjudged by a court to have | 461 |
|
violated any municipal, state, or federal civil rights laws | 462 |
|
relevant to the protection of purchasers or sellers of real
estate | 463 |
|
or, if the applicant has been so adjudged, at least
two years have | 464 |
|
passed since the court decision and the superintendent has | 465 |
|
disregarded the adjudication because the applicant has proven, by | 466 |
|
a preponderance of the evidence, that the applicant's
activities | 467 |
|
and employment record since the adjudication show that
the | 468 |
|
applicant is honest, truthful, and of good reputation, and there | 469 |
|
is
no basis in fact for believing that the applicant will again | 470 |
|
violate the laws involved. | 471 |
| (3) Has not, during any period in which the applicant was | 472 |
|
licensed under this chapter, violated any provision of, or any | 473 |
|
rule adopted
pursuant to, this chapter, or, if the applicant has | 474 |
|
violated
any such provision or rule, has established to the | 475 |
|
satisfaction of the
superintendent that the applicant will not | 476 |
|
again violate
such provision or rule; | 477 |
| (ii) Thirty hours of classroom instruction that includes
the | 494 |
|
subjects of Ohio real estate law, municipal, state, and
federal | 495 |
|
civil rights law, new case law on housing discrimination, | 496 |
|
desegregation issues, and methods of eliminating the effects of | 497 |
|
prior discrimination. If feasible, the classroom instruction in | 498 |
|
Ohio real estate law shall be taught by a member of the faculty
of | 499 |
|
an accredited law school. If feasible, the classroom
instruction | 500 |
|
in municipal, state, and federal civil rights law,
new case law on | 501 |
|
housing discrimination, desegregation issues, and
methods of | 502 |
|
eliminating the effects of prior discrimination shall
be taught by | 503 |
|
a staff member of the Ohio civil rights commission
who is | 504 |
|
knowledgeable with respect to those subjects. The
requirements of | 505 |
|
this division do not apply to an applicant who is
admitted to | 506 |
|
practice before the supreme court. | 507 |
| (ii) Forty hours of classroom instruction that includes the | 525 |
|
subjects of Ohio real estate law, municipal, state, and federal | 526 |
|
civil rights law, new case law on housing discrimination, | 527 |
|
desegregation
issues, and methods of
eliminating the effects of | 528 |
|
prior discrimination. If feasible, the classroom
instruction in | 529 |
|
Ohio
real estate law shall be taught by a member of the faculty of | 530 |
|
an
accredited law school. If feasible, the classroom instruction | 531 |
|
in
municipal, state, and federal civil rights law, new case law on | 532 |
|
housing discrimination, desegregation issues, and methods of | 533 |
|
eliminating the effects of prior discrimination shall be taught by | 534 |
|
a staff member of the Ohio civil rights commission who is | 535 |
|
knowledgeable with respect to those subjects. The requirements of | 536 |
|
this
division do not apply to an
applicant who is admitted to | 537 |
|
practice before the supreme court. | 538 |
| (c) Division (B)(6)(a) or (b) of this section does
not apply | 545 |
|
to
any applicant who holds a valid real estate
salesperson's | 546 |
|
license issued prior to January 2, 1972.
Divisions (B)(6)(a)(v), | 547 |
|
(vi), (vii), and (viii) or division
(B)(6)(b)(v) of this section | 548 |
|
do not
apply to any applicant who holds a valid real estate | 549 |
|
salesperson's license issued prior to January 3, 1984. | 550 |
| (7) If licensed as a real estate salesperson on or
after | 551 |
|
January 3, 1984, satisfactorily has completed a minimum of two | 552 |
|
years of post-secondary education, or its equivalent in semester | 553 |
|
or quarter hours, at an institution of higher education, and has | 554 |
|
fulfilled the requirements of division (B)(6)(a) or (b) of
this | 555 |
|
section.
The requirements of division (B)(6)(a) or (b) of this | 556 |
|
section
may be
included in the two years of post-secondary | 557 |
|
education, or its
equivalent in semester or quarter hours, that is | 558 |
|
required by this
division. | 559 |
| (C) Each applicant for a broker's license shall be
examined | 560 |
|
in the principles of real estate practice, Ohio real
estate law, | 561 |
|
and financing and appraisal, and as to the duties of
real estate | 562 |
|
brokers and real estate salespersons, the
applicant's knowledge of | 563 |
|
real estate transactions and instruments relating to
them, and the | 564 |
|
canons of business ethics pertaining to them. The
commission from | 565 |
|
time to time shall promulgate such canons and
cause them to be | 566 |
|
published in printed form. | 567 |
| (D) Examinations shall be administered with reasonable | 568 |
|
accommodations in
accordance with
the requirements of the | 569 |
|
"Americans with Disabilities
Act of 1990," 104 Stat. 327, 42 | 570 |
|
U.S.C. 12101. The contents of an examination shall be
consistent | 571 |
|
with the requirements of division (B)(6) of this
section and with | 572 |
|
the other specific requirements of this section.
An applicant who | 573 |
|
has completed the requirements of division
(B)(6) of this section | 574 |
|
at the time of application
shall be
examined no later than
twelve | 575 |
|
months after the
applicant is notified of admission to the | 576 |
|
examination. | 577 |
| (G)(1) No later than twelve months after the date of
issue | 585 |
|
of a real estate broker's license to a licensee, the licensee | 586 |
|
shall
submit proof satisfactory to the superintendent, on forms | 587 |
|
made
available by the superintendent, of the completion of ten | 588 |
|
hours of
classroom instruction in real estate brokerage
at an | 589 |
|
institution
of higher education or any other institution that is | 590 |
|
approved by
the commission. That instruction shall include, but | 591 |
|
not be limited
to, current issues in managing a real estate | 592 |
|
company or office. | 593 |
| If the required proof of completion is not
submitted to the | 594 |
|
superintendent within
twelve months of the
date a license is | 595 |
|
issued under this section, the
license of the real estate broker | 596 |
|
is suspended
automatically without the taking of any action by the | 597 |
|
superintendent. The broker's
license shall not be reactivated by | 598 |
|
the
superintendent until it is established,
to the satisfaction of | 599 |
|
the superintendent, that the requirements
of this division have | 600 |
|
been met and that the licensee is in compliance with
this chapter. | 601 |
|
A licensee's license is revoked automatically without the
taking | 602 |
|
of any action by the superintendent if the licensee fails to | 603 |
|
submit
proof of completion of the education requirements specified | 604 |
|
under division (G)(1) of this section within twelve months of the | 605 |
|
date the license is suspended. | 606 |
| (2) If the license of a real estate broker is suspended | 607 |
|
pursuant to division (G)(1) of this section, the license of
a
real | 608 |
|
estate salesperson associated with that broker correspondingly
is | 609 |
suspended pursuant to division
(B)(H) of section 4735.20 of the | 610 |
|
Revised Code. However, the suspended license of the associated | 611 |
|
real estate salesperson shall be reactivated and no fee
shall be | 612 |
|
charged or collected for that reactivation if all of the
following | 613 |
|
occur: | 614 |
| Sec. 4735.09. (A) Application for a license as a real | 624 |
|
estate salesperson shall be made to the
superintendent of real | 625 |
|
estate on forms furnished by the
superintendent and
signed
by the | 626 |
|
applicant. The application shall be in the
form prescribed by the | 627 |
|
superintendent and shall contain such
information as is required | 628 |
|
by this chapter and the rules of the
Ohio real estate commission. | 629 |
|
The application shall be
accompanied by the
recommendation of the | 630 |
|
real estate broker with whom the
applicant is associated or with | 631 |
|
whom the applicant
intends to be associated, certifying
that the | 632 |
|
applicant is honest, truthful, and of good reputation,
has not | 633 |
|
been convicted of a felony or a crime involving moral
turpitude, | 634 |
|
and has not been finally adjudged by a court to have
violated any | 635 |
|
municipal, state, or federal civil rights laws
relevant to the | 636 |
|
protection of purchasers or sellers of real
estate, which | 637 |
|
conviction or adjudication the applicant has not
disclosed to the | 638 |
|
superintendent, and recommending that the
applicant be admitted to | 639 |
|
the real estate salesperson examination. | 640 |
| (B) A fee of forty-nine dollars shall
accompany the | 641 |
application, which fee
shall include theincludes the fee for the | 642 |
initial year of the licensing period, if a license
if it is | 643 |
|
issued.
The application fee shall be retained by the | 644 |
|
superintendent if
the applicant is admitted to the examination for | 645 |
|
the license or
the examination requirement is waived, but, if an | 646 |
|
applicant is
not so admitted and a waiver is not involved, | 647 |
|
one-half of the fee
shall be retained by the superintendent to | 648 |
|
cover the expenses of
processing the application and the other | 649 |
|
one-half shall be
returned to the applicant. A fee of
forty-nine | 650 |
|
dollars shall be
charged by the superintendent for each successive | 651 |
|
application
made by the applicant.
In the case of issuance of a | 652 |
|
three-year license, upon passing the examination, or upon waiver | 653 |
|
of the examination requirement, the applicant shall submit an | 654 |
|
additional fee of seventy-eight dollars, which fee includes the | 655 |
|
fee for the second and third year of the licensing period. Four | 656 |
|
dollars of each
application fee shall
be credited
to the real | 657 |
|
estate education and research fund. | 658 |
| If the superintendent, with the consent of the commission, | 667 |
|
enters into an agreement with a national testing service to | 668 |
|
administer the real estate salesperson's examination,
the | 669 |
|
superintendent may require an applicant to pay the testing | 670 |
|
service's examination
fee directly to the testing service. If the | 671 |
|
superintendent
requires the payment of the examination fee | 672 |
|
directly to the
testing service, each applicant shall submit
to | 673 |
|
the superintendent a processing fee in an amount determined by the | 674 |
|
Ohio real estate commission pursuant to division (A)(1) of
section | 675 |
|
4735.10 of the Revised Code. | 676 |
| (E) The superintendent shall issue a real estate | 677 |
|
salesperson's license when satisfied that the
applicant has | 678 |
|
received
a passing score on
each portion of the
salesperson's | 679 |
|
examination as determined by rule by the real estate
commission, | 680 |
|
except that the superintendent may waive one or more of
the | 681 |
|
requirements of this
section in the case of an applicant who is a | 682 |
|
licensed
real estate salesperson in another state
pursuant to a | 683 |
|
reciprocity agreement with the licensing authority of
the
state | 684 |
|
from which the applicant holds a valid real estate salesperson's | 685 |
|
license. | 686 |
| (2)(a) Has not been convicted of a felony or crime of
moral | 691 |
|
turpitude or, if the applicant has been so convicted,
the | 692 |
|
superintendent has disregarded the conviction because the | 693 |
|
applicant has proven to the superintendent, by a preponderance of | 694 |
|
the evidence, that the applicant's activities and employment | 695 |
|
record since the
conviction show that the applicant is honest, | 696 |
|
truthful, and
of good
reputation, and there is no basis in fact | 697 |
|
for believing that the
applicant again will violate the laws | 698 |
|
involved; | 699 |
| (b) Has not been finally adjudged by a court to have | 700 |
|
violated any municipal, state, or federal civil rights laws | 701 |
|
relevant to the protection of purchasers or sellers of real
estate | 702 |
|
or, if the applicant has been so adjudged, at least
two years have | 703 |
|
passed since the court decision and the superintendent has | 704 |
|
disregarded the adjudication because the applicant has proven, by | 705 |
|
a preponderance of the evidence, that the applicant is
honest, | 706 |
|
truthful, and of good reputation, and there is no basis in fact | 707 |
|
for
believing
that the applicant again will violate the laws | 708 |
|
involved. | 709 |
| (3) Has not, during any period in which the applicant was | 710 |
|
licensed under this chapter, violated any provision of, or any | 711 |
|
rule
adopted pursuant to this chapter, or, if the applicant has | 712 |
|
violated such provision or rule, has established to the | 713 |
|
satisfaction of the
superintendent that the applicant will not | 714 |
|
again violate such
provision or rule; | 715 |
| (ii) Thirty hours of classroom instruction that includes
the | 725 |
|
subjects of Ohio real estate law, municipal, state, and
federal | 726 |
|
civil rights law, new case law on housing discrimination, | 727 |
|
desegregation issues, and methods of eliminating the effects of | 728 |
|
prior discrimination. If feasible, the classroom instruction in | 729 |
|
Ohio real estate law shall be taught by a member of the faculty
of | 730 |
|
an accredited law school. If feasible, the classroom
instruction | 731 |
|
in municipal, state, and federal civil rights law,
new case law on | 732 |
|
housing discrimination, desegregation issues, and
methods of | 733 |
|
eliminating the effects of prior discrimination shall
be taught by | 734 |
|
a staff member of the Ohio civil rights commission
who is | 735 |
|
knowledgeable with respect to those subjects. The
requirements of | 736 |
|
this division do not apply to an applicant who is
admitted to | 737 |
|
practice before the supreme court. | 738 |
| (b) Forty hours of classroom instruction that includes the | 756 |
|
subjects of Ohio real estate law, municipal, state, and federal | 757 |
|
civil rights law, new case law on housing discrimination, | 758 |
|
desegregation
issues, and methods of
eliminating the effects of | 759 |
|
prior discrimination. If feasible, the
classroom instruction in | 760 |
|
Ohio real estate law shall be
taught by a member of the faculty of | 761 |
|
an accredited law school. If
feasible, the classroom instruction | 762 |
|
in municipal, state, and
federal civil rights law, new case law on | 763 |
|
housing discrimination,
desegregation issues, and methods of | 764 |
|
eliminating the effects of
prior discrimination shall be taught by | 765 |
|
a staff member of the Ohio
civil rights commission who is | 766 |
|
knowledgeable with respect to those subjects.
The requirements of | 767 |
|
this division do not apply to an applicant who is admitted to | 768 |
|
practice
before the supreme court. | 769 |
| (G) No later than twelve months after the date of issue of a | 774 |
|
real estate salesperson license to a licensee, the licensee shall | 775 |
|
submit
proof satisfactory to the superintendent, on forms made | 776 |
|
available by the
superintendent, of completion, at
an
institution | 777 |
|
of higher education or any other institution approved
by the | 778 |
|
commission, of ten hours of classroom instruction in real
estate | 779 |
|
courses that cover current issues regarding consumers,
real estate | 780 |
|
practice, ethics, and real estate law. | 781 |
| If proof of completion of the required
instruction is not | 782 |
|
submitted within twelve months of the date a license is
issued | 783 |
|
under this
section, the licensee's license is suspended | 784 |
|
automatically without the
taking of any action by the | 785 |
|
superintendent. The
superintendent
immediately shall notify the | 786 |
|
broker with whom such
salesperson is associated of the suspension | 787 |
|
of the
salesperson's license. A salesperson whose license
has | 788 |
|
been suspended under this division shall have twelve
months after | 789 |
|
the date of
the suspension of the salesperson's license to submit | 790 |
|
proof of
successful completion of the
instruction required under | 791 |
|
this division. No such license shall be reactivated
by the | 792 |
|
superintendent until it is established, to the satisfaction of
the | 793 |
|
superintendent, that the requirements of this division have
been | 794 |
|
met and that the licensee is in compliance with this chapter. A | 795 |
|
licensee's license is revoked automatically without the taking of | 796 |
|
any action
by the superintendent when the licensee fails to submit | 797 |
|
the required proof of
completion of the education
requirements | 798 |
|
under division (G) of this section within twelve months
of the | 799 |
|
date the license is suspended. | 800 |
| (H) Examinations shall be administered with reasonable | 801 |
|
accommodations in
accordance with
the requirements of the | 802 |
|
"Americans with Disabilities
Act of 1990," 104 Stat. 327, 42 | 803 |
|
U.S.C. 12101. The contents of an
examination shall be
consistent | 804 |
|
with the classroom instructional requirements of
division (F)(6) | 805 |
|
or (7) of this section. An applicant who
has
completed the | 806 |
|
classroom instructional requirements of division
(F)(6) or (7) of | 807 |
|
this section at the time of
application shall
be
examined no later | 808 |
|
than
twelve months after the
applicant is notified of the | 809 |
|
applicant's admission to
the examination. | 810 |
| (c) Standards for the approval of courses of study
required | 829 |
|
for licenses, or offered in preparation for license
examinations, | 830 |
|
or required as continuing education for licenses. The rules
shall | 831 |
|
specify that no standard for the approval of
a course of study | 832 |
|
required as continuing education for licensees shall require
that | 833 |
|
licensees pass an examination as a condition for the successful | 834 |
|
completion of a continuing education requirement. A person | 835 |
|
providing a
continuing education course may administer | 836 |
|
examinations for the purpose of
evaluating the effectiveness of | 837 |
|
the course. | 838 |
| (C) The commission or superintendent may hear testimony in | 890 |
|
matters relating to the duties imposed upon them, and the | 891 |
|
president of the commission and superintendent may administer | 892 |
|
oaths. The commission or superintendent may require other proof | 893 |
|
of the honesty, truthfulness, and good reputation of any person | 894 |
|
named in an application for a real estate broker's or real
estate | 895 |
|
salesperson's license before admitting the applicant to the | 896 |
|
examination or
issuing a license. | 897 |
| The commission, in accordance with rules adopted under | 906 |
division
(A)(2)(f)(g) of section 4735.10 of the Revised Code, | 907 |
|
shall
impose a special
assessment not to exceed ten dollars | 908 |
annuallyper year for each year of a licensing period on
each | 909 |
|
licensee filing a
notice of renewal
under section
4735.14 of
the | 910 |
|
Revised Code if the amount
available in the fund is
less than
one | 911 |
|
million dollars on the first day of July preceding
that
filing.
| 912 |
|
The commission may impose a special assessment not
to
exceed five | 913 |
dollars
annuallyper year for each year of a licensing period if | 914 |
|
the amount available in the
fund
is greater than one million | 915 |
|
dollars, but less than two
million
dollars on
the first day of | 916 |
|
July preceding that filing.
The
commission shall
not impose a | 917 |
|
special assessment if the amount
available in the fund exceeds
two | 918 |
|
million dollars on the first day
of July preceding that
filing. | 919 |
| (B)(1) Any person who obtains a final judgment in any court | 920 |
|
of competent
jurisdiction against any broker or salesperson | 921 |
|
licensed under this chapter, on
the grounds of conduct that is in | 922 |
|
violation of this chapter or
the rules adopted under it, and that | 923 |
|
is associated with an act or transaction that only a licensed real | 924 |
|
estate
broker or licensed real
estate salesperson is authorized to | 925 |
|
perform as specified in division (A) or
(C)
of section 4735.01 of | 926 |
|
the Revised Code, may file a
verified application, as described in | 927 |
|
division (B)(3)
of this section, in any court
of common pleas for | 928 |
|
an order directing payment out of the real
estate recovery fund of | 929 |
|
the portion of the judgment that remains
unpaid and that | 930 |
|
represents the actual and direct loss sustained
by the applicant. | 931 |
| (2) Punitive damages, attorney's fees, and interest on a | 932 |
|
judgment
are not recoverable from the fund. In the discretion of | 933 |
|
the
superintendent of real estate, court costs
may be recovered | 934 |
|
from the fund, and, if the superintendent authorizes
the recovery | 935 |
|
of court costs, the order of
the court of common pleas then may | 936 |
|
direct their payment from the
fund. | 937 |
| (3) The application shall specify the nature of the act or | 938 |
|
transaction upon which the underlying judgment was based, the | 939 |
|
activities of the applicant in pursuit of remedies available
under | 940 |
|
law for the collection of judgments, and the actual and
direct | 941 |
|
losses, attorney's fees, and the court costs sustained
or incurred | 942 |
|
by the applicant. The applicant shall attach to the
application a | 943 |
|
copy of each pleading and order in the underlying
court action. | 944 |
| (C) A person who applies to a court of common pleas for an | 974 |
|
order directing payment out of the fund shall file notice of the | 975 |
|
application with the superintendent. The superintendent may | 976 |
|
defend any such action on behalf of the fund and shall have | 977 |
|
recourse to all appropriate means of defense and review,
including | 978 |
|
examination of witnesses, verification of actual and
direct | 979 |
|
losses, and challenges to the underlying judgment required in | 980 |
|
division (B)(4)(a) of this section to determine
whether the | 981 |
|
underlying judgment is based on activity only a licensed broker or | 982 |
|
licensed salesperson is permitted to perform. The superintendent | 983 |
|
may move
the court at any time to dismiss the application when it | 984 |
|
appears
there are no triable issues and the application is without | 985 |
|
merit.
The motion may be supported by affidavit of any person | 986 |
|
having
knowledge of the facts and may be made on the basis that | 987 |
|
the
application, including the judgment referred to in it, does | 988 |
|
not
form the basis for a meritorious recovery claim; provided, | 989 |
|
that
the superintendent shall give written notice to the applicant | 990 |
|
at
least ten days before such motion. The superintendent may, | 991 |
|
subject to court approval, compromise a claim based upon the | 992 |
|
application of an aggrieved party. The superintendent shall
not | 993 |
|
be bound by any prior compromise or stipulation of the judgment | 994 |
|
debtor. | 995 |
| (D) Notwithstanding any other provision of this section,
the | 996 |
|
liability of the fund shall not exceed forty thousand dollars
for | 997 |
|
any one licensee. If a licensee's license is
reactivated as | 998 |
|
provided in
division (E) of this section, the liability of the | 999 |
|
fund for the
licensee under this section shall again be forty | 1000 |
|
thousand dollars, but
only for transactions that occur subsequent | 1001 |
|
to the time of
reactivation. | 1002 |
| If the forty-thousand-dollar liability of the fund is | 1003 |
|
insufficient to pay in full the valid claims of all aggrieved | 1004 |
|
persons by whom claims have been filed against any one licensee, | 1005 |
|
the forty thousand dollars shall be distributed among them in
the | 1006 |
|
ratio that their respective claims bear to the aggregate of
valid | 1007 |
|
claims or in such other manner as the court finds
equitable. | 1008 |
|
Distribution of moneys shall be among the
persons entitled to | 1009 |
|
share in it, without regard to the order of
priority in which | 1010 |
|
their respective judgments may have been
obtained or their claims | 1011 |
|
have been filed. Upon petition of the
superintendent, the court | 1012 |
|
may require all claimants and
prospective claimants against one | 1013 |
|
licensee to be joined in one
action, to the end that the | 1014 |
|
respective rights of all such
claimants to the fund may be | 1015 |
|
equitably adjudicated and settled. | 1016 |
| (E) If the superintendent pays from the fund any amount in | 1017 |
|
settlement of a claim or toward satisfaction of a judgment
against | 1018 |
|
a licensed broker or salesperson, the license
of the broker or | 1019 |
|
salesperson shall be automatically suspended upon the date of | 1020 |
|
payment from the fund. The
superintendent shall not reactivate | 1021 |
|
the suspended license of that
broker or salesperson until the | 1022 |
|
broker or salesperson has repaid in full,
plus
interest per annum | 1023 |
|
at the rate specified in division (A) of section
1343.03 of the | 1024 |
|
Revised Code, the amount paid from the fund on
the broker's or | 1025 |
|
salesperson's account. A discharge in bankruptcy does
not relieve | 1026 |
|
a person from the suspension and requirements for
reactivation | 1027 |
|
provided in this section unless the underlying judgment has been | 1028 |
|
included
in the discharge and has not been reaffirmed by the | 1029 |
|
debtor. | 1030 |
| (F) If, at any time, the money deposited in the fund is | 1031 |
|
insufficient to satisfy any duly authorized claim or portion of a | 1032 |
|
claim, the superintendent shall, when sufficient money has been | 1033 |
|
deposited in the fund, satisfy such unpaid claims or portions, in | 1034 |
|
the order that such claims or portions were originally filed,
plus | 1035 |
|
accumulated interest per annum at the rate specified in
division | 1036 |
|
(A) of section 1343.03 of the Revised Code. | 1037 |
| (G) When, upon the order of the court, the superintendent | 1038 |
|
has paid from the fund any sum to the judgment creditor, the | 1039 |
|
superintendent shall be subrogated to all of the rights of the | 1040 |
|
judgment creditor to the extent of the amount so paid, and the | 1041 |
|
judgment
creditor shall assign all the judgment creditor's right, | 1042 |
|
title, and interest
in the judgment to the superintendent to the | 1043 |
|
extent of the amount
so paid. Any amount and interest so | 1044 |
|
recovered by the
superintendent on the judgment shall be deposited | 1045 |
|
in the fund. | 1046 |
| Sec. 4735.13. (A) The license of a real estate broker
shall | 1058 |
|
be prominently displayed in the office or place of business
of the | 1059 |
|
broker, and no license shall authorize the licensee to do
business | 1060 |
|
except from the location specified in it.
If the broker maintains | 1061 |
|
more than one place of business within the
state, the broker shall | 1062 |
|
apply for and procure a duplicate license for
each branch office | 1063 |
|
maintained by the broker. Each branch office shall be
in the | 1064 |
|
charge of a licensed broker or salesperson. The branch office | 1065 |
|
license shall be prominently displayed at the branch office | 1066 |
|
location. | 1067 |
| (B) The license of each real estate salesperson shall
be | 1068 |
|
mailed to and remain in the possession of the licensed broker
with | 1069 |
|
whom the salesperson is or is to be associated until
the licensee | 1070 |
|
places the license on inactive status or
until the salesperson | 1071 |
|
leaves the
brokerage or is terminated. The broker shall
keep each | 1072 |
|
salesperson's license in a way that it can, and shall
on request, | 1073 |
|
be
made immediately available for public inspection at the office | 1074 |
|
or
place of business of the broker. Except as provided in | 1075 |
|
division
(G) of this section, immediately upon the salesperson's | 1076 |
|
leaving the
association or termination of the
association of a | 1077 |
|
real estate salesperson with the
broker, the broker shall return | 1078 |
|
the salesperson's
license to the superintendent of real estate. | 1079 |
| (C) Any licensee who is convicted of a felony or a crime | 1087 |
|
involving moral turpitude or of violating any federal, state, or | 1088 |
|
municipal civil rights law pertaining to discrimination in | 1089 |
|
housing, or any court that issues a finding of an unlawful | 1090 |
|
discriminatory practice pertaining to housing accommodations | 1091 |
|
described in division (H) of section 4112.02 of the Revised Code | 1092 |
|
or that convicts a licensee of a violation of any municipal civil | 1093 |
|
rights law pertaining to housing discrimination, shall notify the | 1094 |
|
superintendent of the conviction or finding within fifteen days. | 1095 |
|
If a licensee fails to notify the superintendent within the | 1096 |
|
required time, the superintendent immediately may revoke the | 1097 |
|
license of the licensee. | 1098 |
| (D) In case of any change of business location, a broker | 1103 |
|
shall give notice in writing to the superintendent, whereupon
the | 1104 |
|
superintendent shall issue new licenses for the unexpired
period | 1105 |
|
without charge. If a broker changes a
business location
without | 1106 |
|
giving the required notice and without receiving new
licenses that | 1107 |
|
action is prima-facie evidence
of misconduct under division (A)(6) | 1108 |
|
of section
4735.18 of the Revised Code. | 1109 |
| (E) If a real estate broker desires to associate
with | 1110 |
|
another real estate broker in the capacity of a real estate | 1111 |
|
salesperson, the broker shall apply to
the superintendent to | 1112 |
|
deposit the broker's real estate
broker's license with the | 1113 |
|
superintendent and for the
issuance of a real estate salesperson's | 1114 |
|
license. The
application shall be made on a form prescribed by | 1115 |
|
the superintendent and
shall be accompanied by the recommendation | 1116 |
|
of the real estate
broker with whom the applicant intends to | 1117 |
|
become associated and a
fee of twenty-five dollars for the real | 1118 |
|
estate
salesperson's license. Four dollars of
the fee
shall be | 1119 |
|
credited to the real estate
education and research fund. If the | 1120 |
|
superintendent is satisfied
that the applicant is honest, | 1121 |
|
truthful, and of good reputation,
has not been convicted of a | 1122 |
|
felony or a crime involving moral
turpitude, and has not been | 1123 |
|
finally adjudged by a court to have
violated any municipal, state, | 1124 |
|
or federal civil rights laws
relevant to the protection of | 1125 |
|
purchasers or sellers of real
estate, and that the association of | 1126 |
|
the real estate broker and
the applicant will be in the public | 1127 |
|
interest, the superintendent
shall grant the application and issue | 1128 |
|
a real estate
salesperson's license to the applicant. Any license | 1129 |
|
so deposited with the superintendent
shall be subject to this | 1130 |
|
chapter. A broker who intends to deposit
the
broker's license | 1131 |
|
with the superintendent, as provided in this section,
shall give | 1132 |
|
written notice of this fact in a format prescribed by the | 1133 |
|
superintendent to all
salespersons associated with the broker when | 1134 |
|
applying to place the broker's license on deposit. | 1135 |
| (F) If a real estate broker desires to become a member or | 1136 |
|
officer of a partnership, association, limited liability company, | 1137 |
|
limited
liability partnership, or corporation that is or
intends | 1138 |
|
to become a licensed real estate broker, the broker
shall notify | 1139 |
|
the superintendent of the broker's intentions.
The notice of | 1140 |
|
intention shall be on a form prescribed by the superintendent
and | 1141 |
|
shall be
accompanied by a fee of twenty-five dollars. Four | 1142 |
|
dollars of the
fee shall be credited to the real estate education | 1143 |
|
and research
fund. | 1144 |
| No real estate broker who is a member or officer of a | 1145 |
|
partnership, association, limited liability company, limited | 1146 |
|
liability
partnership, or corporation that is a licensed real | 1147 |
|
estate broker shall perform any acts as a real estate broker
other | 1148 |
|
than as the agent of the partnership, association, limited | 1149 |
|
liability
company, limited liability partnership, or
corporation, | 1150 |
|
and such broker shall not have any real estate
salespersons | 1151 |
|
associated with the
broker. | 1152 |
| (G) If a real estate broker or salesperson enters the
armed | 1153 |
|
forces, the broker or salesperson may place
the broker's or | 1154 |
|
salesperson's license on deposit with the Ohio real
estate | 1155 |
|
commission. The licensee shall not be required to renew the | 1156 |
license
annually until the renewal
date that follows the date of | 1157 |
|
discharge from the armed forces. Any
license deposited with the | 1158 |
|
commission shall be
subject to this chapter. Any licensee whose | 1159 |
|
license is on
deposit under this division and who fails to meet | 1160 |
|
the continuing
education requirements of section 4735.141 of the | 1161 |
|
Revised Code
because the licensee is in the armed forces shall | 1162 |
|
satisfy the
commission that the licensee has complied with the | 1163 |
|
continuing
education requirements
within twelve months of the | 1164 |
|
licensee's discharge. The
commission shall
notify the licensee of | 1165 |
|
the licensee's obligations under
section 4735.141 of the Revised | 1166 |
|
Code at the time the licensee
applies for reactivation of the | 1167 |
|
licensee's license. | 1168 |
| (B) Each licensed broker, brokerage, or salesperson shall | 1173 |
|
file, on or
before
the date the Ohio real estate commission has | 1174 |
|
adopted by rule for that licensee
in accordance with division | 1175 |
(A)(2)(e)(f) of section 4735.10 of the Revised Code,
a notice of | 1176 |
|
renewal on a
form prescribed by the
superintendent of real estate. | 1177 |
|
The licensee shall indicate on the form
whether the licensee | 1178 |
|
wishes to maintain the licensee's license in an active or
inactive | 1179 |
|
status. The
notice of renewal shall
be mailed by the | 1180 |
|
superintendent
to the most current personal residence address of | 1181 |
|
each
broker or salesperson as filed with the superintendent by the | 1182 |
|
licensee
and the place of business address of the brokerage two | 1183 |
|
months prior to the filing deadline. | 1184 |
| (C) The license of any real estate broker,
brokerage, or | 1185 |
|
salesperson that fails
to file a notice of renewal on or
before | 1186 |
|
the filing deadline of each
ensuing year shall be
suspended | 1187 |
|
automatically without the taking of any action by
the | 1188 |
|
superintendent. A suspended license
may be reactivated within | 1189 |
|
twelve months of
the date of suspension, provided that the renewal | 1190 |
|
fee plus a penalty fee of fifty per
cent of the renewal fee is | 1191 |
|
paid to the superintendent. Failure to reactivate
the license as | 1192 |
|
provided in this division shall result in automatic
revocation of | 1193 |
|
the
license without the taking of any action by the | 1194 |
|
superintendent. No
person, partnership, association, corporation, | 1195 |
|
limited liability
company, or limited partnership shall engage in | 1196 |
|
any act or acts for which a
real estate license is required while | 1197 |
|
that entity's license is
placed in an inactive status, suspended, | 1198 |
|
or revoked. The
commission shall adopt rules in accordance with | 1199 |
|
Chapter 119. of
the Revised Code to
provide to licensees notice of | 1200 |
|
suspension or revocation or both. | 1201 |
| Sec. 4735.141. (A) Except as otherwise provided in this | 1210 |
|
division, each person licensed under section 4735.07 or 4735.09 of | 1211 |
|
the Revised
Code shall submit proof satisfactory to the | 1212 |
|
superintendent of real estate that
the licensee has satisfactorily | 1213 |
|
completed thirty hours of
continuing education, as prescribed by | 1214 |
|
the Ohio real estate commission
pursuant to section 4735.10 of the | 1215 |
|
Revised Code, on or before the licensee's
birthday occurring three | 1216 |
|
years after the licensee's date of initial licensure,
and on or | 1217 |
|
before the licensee's birthday every three years thereafter. | 1218 |
| Each licensee who is seventy years of age or older on
June | 1226 |
|
14, 1999, shall submit, on or
before the licensee's
birthday | 1227 |
|
occurring three years after June 30, 1999,
and
on or before the | 1228 |
|
licensee's birthday every three years thereafter,
proof | 1229 |
|
satisfactory to the superintendent of real estate
that the | 1230 |
|
licensee has satisfactorily
completed a total of nine
classroom | 1231 |
|
hours of continuing education, including instruction in
Ohio real | 1232 |
|
estate law; recently enacted state
and federal laws affecting the | 1233 |
|
real estate industry; municipal,
state, and
federal civil rights | 1234 |
|
law; and canons of ethics for the real estate industry as
adopted | 1235 |
|
by the commission. A licensee who is seventy years of age or | 1236 |
|
older whose license is in an inactive status is exempt from the | 1237 |
|
continuing
education requirements specified in this section. The | 1238 |
|
commission
shall adopt
reasonable rules in
accordance with Chapter | 1239 |
|
119. of the Revised Code
to carry out the purposes of this | 1240 |
|
paragraph. | 1241 |
| (B) The continuing education requirements of this section | 1247 |
|
shall be completed in schools, seminars, and educational | 1248 |
|
institutions approved by the commission. Such approval shall be | 1249 |
|
given according to rules established by the commission under the | 1250 |
|
procedures of Chapter 119. of the Revised Code, and shall not be | 1251 |
|
limited to institutions providing two-year or four-year degrees. | 1252 |
|
Each school, seminar, or educational institution approved under | 1253 |
|
this division shall be open to all licensees on an equal basis. | 1254 |
| (C) If the requirements of this section are not met by a | 1255 |
|
licensee within the period specified, the licensee's license shall | 1256 |
|
be suspended automatically without the taking of any action by the | 1257 |
|
superintendent. The superintendent shall notify the licensee of | 1258 |
|
the license suspension. Any license so suspended shall
remain | 1259 |
|
suspended until it is reactivated by the
superintendent.
No such | 1260 |
|
license shall be reactivated until it is
established, to
the | 1261 |
|
satisfaction of the superintendent, that the requirements of
this | 1262 |
|
section have been met. If the requirements of this section
are | 1263 |
|
not met within twelve months from the date the
license
was | 1264 |
|
suspended, the license shall be revoked automatically without the | 1265 |
|
taking of any action by the superintendent. | 1266 |
| (D) If the license of a real estate broker is suspended | 1267 |
|
pursuant to division (C) of this section, the license of a
real | 1268 |
|
estate salesperson associated with that broker
correspondingly is | 1269 |
suspended pursuant to division
(B)(H) of section 4735.20 of the | 1270 |
|
Revised Code. However, the suspended license of the associated | 1271 |
|
real estate salesperson shall be reactivated and no
fee
shall be | 1272 |
|
charged or collected for that reactivation if all
of
the
following | 1273 |
|
occur: | 1274 |
| (E) Any licensee who is a physically handicapped licensee
at | 1291 |
|
any time during the last three months of the third year of the | 1292 |
|
licensee's
continuing education reporting period may receive an | 1293 |
|
extension of
time to submit proof to the superintendent that the | 1294 |
|
licensee has
satisfactorily completed the required thirty hours of | 1295 |
|
continuing
education. To receive an extension of time, the | 1296 |
|
licensee shall
submit a request to the division of real estate for | 1297 |
|
the extension
and proof satisfactory to the commission that the | 1298 |
|
licensee was a physically
handicapped licensee at some time during | 1299 |
|
the last three months of
the three-year reporting period. The | 1300 |
|
proof shall include, but is
not limited to, a signed statement by | 1301 |
|
the licensee's attending
physician describing the physical | 1302 |
|
disability, certifying that the
licensee's disability is of such a | 1303 |
|
nature as to prevent the licensee from
attending any instruction | 1304 |
|
lasting at least three hours
in duration, and stating the expected | 1305 |
|
duration of the physical
disability. The licensee shall request | 1306 |
|
the extension and provide
the physician's statement to the | 1307 |
|
division no later than one month
prior to the end of the | 1308 |
|
licensee's three-year continuing
education reporting period, | 1309 |
|
unless the physical disability did
not arise until the last month | 1310 |
|
of the three-year reporting
period, in which event the licensee | 1311 |
|
shall request the extension
and provide the physician's statement | 1312 |
|
as soon as practical after
the occurrence of the physical | 1313 |
|
disability. A licensee granted an
extension pursuant to this | 1314 |
|
division who is no longer a physically
handicapped licensee and | 1315 |
|
who submits proof of completion of the
continuing education during | 1316 |
|
the extension period, shall submit,
for future continuing | 1317 |
|
education reporting periods, proof of
completion of the continuing | 1318 |
|
education requirements according to
the schedule established in | 1319 |
|
division (A) of this section. | 1320 |
(B)(1) Reactivation or transfer of a broker's license
into | 1326 |
|
or out of a
partnership, association,
limited liability company, | 1327 |
|
limited liability partnership,
or corporation or from one | 1328 |
|
partnership,
association,
limited liability company, limited | 1329 |
|
liability partnership,
or corporation to another partnership, | 1330 |
|
association,
limited liability company, limited liability | 1331 |
|
partnership,
or corporation, twenty-five dollars. An
application | 1332 |
|
for such
transfer shall be made to the superintendent of real | 1333 |
|
estate on
forms provided by the superintendent. | 1334 |
| (2) Renewal of a real
estate broker's license, forty-nine | 1343 |
|
dollars. If the
licensee is a
partnership, association,
limited | 1344 |
|
liability company, limited liability partnership,
or corporation, | 1345 |
|
the full broker's
renewal fee shall be required for each member of | 1346 |
|
such
partnership, association,
limited liability company, limited | 1347 |
|
liability partnership,
or corporation that is a real estate | 1348 |
|
broker. If the real estate
broker has not less than eleven nor | 1349 |
|
more than twenty real estate
salespersons associated with the | 1350 |
|
broker, an additional fee
of sixty-four dollars shall be assessed | 1351 |
|
to the
brokerage. For every additional ten real
estate | 1352 |
|
salespersons or fraction of that number, the
brokerage assessment | 1353 |
|
fee shall
be increased in
the amount of thirty-seven
dollars. | 1354 |
| Sec. 4735.18. (A) Subject to section 4735.32 of the
Revised | 1377 |
|
Code, the superintendent of real estate, upon the superintendent's | 1378 |
|
own
motion, may investigate the conduct of any licensee. Subject | 1379 |
|
to
section 4735.32 of the Revised Code, the Ohio real estate | 1380 |
|
commission shall,
pursuant to section 4735.051 of the Revised | 1381 |
|
Code, impose disciplinary
sanctions upon any licensee who, whether | 1382 |
|
or not acting in the licensee's
capacity as a real estate broker | 1383 |
|
or salesperson, or in handling the licensee's
own property, is | 1384 |
|
found to have been convicted of
a felony or a crime of moral | 1385 |
|
turpitude, and shall, pursuant to
section 4735.051 of the Revised | 1386 |
|
Code, impose disciplinary sanctions upon any
licensee who, in the | 1387 |
|
licensee's capacity as a real
estate broker or salesperson, or in | 1388 |
|
handling the licensee's own property, is
found guilty of: | 1389 |
| (7)(a) By final adjudication by a court, a violation of
any | 1404 |
|
municipal or federal civil rights law relevant to the
protection | 1405 |
|
of purchasers or sellers of real estate or, by final
adjudication | 1406 |
|
by a court, any unlawful discriminatory practice
pertaining to the | 1407 |
|
purchase or sale of real estate prohibited by
Chapter 4112. of the | 1408 |
|
Revised Code, provided that such violation
arose out of a | 1409 |
|
situation wherein parties were engaged in bona
fide efforts to | 1410 |
|
purchase, sell, or lease real estate, in the licensee's
practice | 1411 |
|
as a licensed real estate broker or salesperson; | 1412 |
| (b) A second or subsequent violation of any unlawful | 1413 |
|
discriminatory practice pertaining to the purchase or sale of
real | 1414 |
|
estate prohibited by Chapter 4112. of the Revised Code or
any | 1415 |
|
second or subsequent violation of municipal or federal civil | 1416 |
|
rights laws relevant to purchasing or selling real estate whether | 1417 |
|
or not there has been a final adjudication by a court, provided | 1418 |
|
that such violation arose out of a situation wherein parties were | 1419 |
|
engaged in bona fide efforts to purchase, sell, or lease real | 1420 |
|
estate. For any second offense under this division, the | 1421 |
|
commission shall suspend for a minimum of two months or revoke
the | 1422 |
|
license of the broker or salesperson. For any subsequent
offense, | 1423 |
|
the commission shall revoke the license of the broker or | 1424 |
|
salesperson. | 1425 |
| (10) As a real estate broker, having demanded, without | 1432 |
|
reasonable cause,
other
than
from a broker licensed under this | 1433 |
|
chapter, a commission to which
the licensee is not entitled, or, | 1434 |
|
as a real estate
salesperson, having demanded,
without
reasonable | 1435 |
|
cause, a commission to which the licensee is not entitled; | 1436 |
| (19) Having negotiated the sale, exchange, or lease of any | 1466 |
|
real property directly with an owner, purchaser, lessor, or tenant | 1467 |
|
knowing
that such owner, purchaser, lessor, or tenant had a | 1468 |
|
written outstanding
contract granting exclusive agency in | 1469 |
|
connection with such property to another
real estate broker; | 1470 |
| (21) Having published advertising, whether printed, radio, | 1475 |
|
display, or of any other nature, which was misleading or | 1476 |
|
inaccurate in any material particular, or in any way having | 1477 |
|
misrepresented any properties, terms, values, policies, or | 1478 |
|
services of the business conducted; | 1479 |
| (24) Having failed to keep complete and accurate records
of | 1487 |
|
all transactions for a period of three years from the date of
the | 1488 |
|
transaction, such records to include copies of listing forms, | 1489 |
|
earnest money receipts, offers to purchase and acceptances of | 1490 |
them,
and records of receipts and disbursements of all funds | 1491 |
|
received by the licensee as broker and incident to the licensee's | 1492 |
|
transactions
as
such,
and records required pursuant to divisions | 1493 |
|
(C)(4) and (5) of section 4735.20 of the Revised Code, and any | 1494 |
|
other
instruments or
papers related
to the
performance of any of | 1495 |
|
the
acts set forth in
the definition
of a
real estate broker; | 1496 |
| (26) Failure to maintain at all times a special or trust | 1501 |
|
bank account in a depository located in this state. The account | 1502 |
|
shall be noninterest-bearing, separate and distinct from any | 1503 |
|
personal or other account of the broker, and, except as
provided | 1504 |
|
in division (A)(27) of this section, shall be used for the deposit | 1505 |
|
and maintenance of all escrow funds, security deposits, and other | 1506 |
|
moneys
received by the broker in a fiduciary capacity. The name, | 1507 |
|
account number, if
any, and location of the depository wherein | 1508 |
|
such special or trust
account is maintained shall be submitted in | 1509 |
|
writing to the
superintendent. Checks drawn on such special or | 1510 |
|
trust bank accounts are
deemed to meet the conditions imposed by | 1511 |
|
section 1349.21 of the Revised Code. | 1512 |
| (27) Failure to maintain at all times a special or trust | 1513 |
|
bank account in a
depository in this state, to be used exclusively | 1514 |
|
for the deposit and
maintenance of all rents, security deposits, | 1515 |
|
escrow funds, and other moneys
received by the broker in a | 1516 |
|
fiduciary capacity in the course of managing real
property. This | 1517 |
|
account shall be separate and distinct from any other account | 1518 |
|
maintained by the broker. The name, account number, and location | 1519 |
|
of the
depository shall be submitted in writing to the | 1520 |
|
superintendent. This account
may earn interest, which shall be | 1521 |
|
paid to the property owners on a pro rata
basis. | 1522 |
| (C) The commission shall, pursuant to section 4735.051 of | 1567 |
|
the Revised Code,
impose disciplinary sanctions upon any foreign | 1568 |
|
real estate dealer or
salesperson who, in that capacity or in | 1569 |
|
handling the dealer's or salesperson's
own property, is found | 1570 |
|
guilty of any of the acts or omissions specified or
comprehended | 1571 |
|
in division (A) of this section insofar as the acts or omissions | 1572 |
|
pertain to foreign real estate. If the commission imposes such | 1573 |
|
sanctions upon
a foreign real estate salesperson for a violation | 1574 |
|
of this
section, the commission also may suspend or revoke the | 1575 |
|
license of
the foreign real estate dealer with whom the | 1576 |
|
salesperson is affiliated if the commission finds that the dealer | 1577 |
|
had
knowledge of the salesperson's actions that violated this | 1578 |
|
section. | 1579 |
Sec. 4735.20. (A)
NoExcept as provided in divisions (B), | 1587 |
|
(C), and (G) of this section, no licensed real estate broker or | 1588 |
|
licensed foreign real estate dealer shall pay a commission, fee, | 1589 |
|
or other compensation for
performing any of the acts specified in | 1590 |
|
section 4735.01 of the
Revised Code to any person who is not a | 1591 |
|
licensed real estate
broker or a licensed real estate salesperson | 1592 |
|
or to any person who is
not a licensed foreign real estate dealer | 1593 |
or a licensed foreign
real estate salesperson, provided that a. | 1594 |
| (B) A licensed real estate broker
or licensed foreign real | 1595 |
|
estate dealer may pay a commission to a
licensed real estate | 1596 |
|
broker or licensed foreign real estate
dealer of another state and | 1597 |
|
may receive a commission from a
licensed real estate broker or | 1598 |
|
licensed foreign real estate
dealer of another state, but only | 1599 |
|
when done in accordance with rules adopted by the Ohio real estate | 1600 |
commission pursuant to section 4735.10 of the Revised Code.
A | 1601 |
violation of this division shall be a
cause for imposing | 1602 |
discriplinary sanctions in accordance with the proceedings | 1603 |
specified in sections 4735.15 to 4735.18 of the Revised Code. | 1604 |
(B)(C) A licensed real estate broker may pay all or part of | 1605 |
|
a fee, commission, or other compensation earned by an affiliated | 1606 |
|
licensee to a partnership, association, limited liability company, | 1607 |
|
limited liability partnership, or corporation that is not licensed | 1608 |
|
as a real estate broker on the condition that all of the following | 1609 |
|
conditions are satisfied: | 1610 |
| (H) The suspension or revocation of a real estate broker's | 1674 |
|
or foreign real estate dealer's license automatically shall | 1675 |
|
suspend every real estate salesperson's or foreign real estate | 1676 |
|
salesperson's license granted to any person by virtue
of | 1677 |
|
association with the broker or dealer whose license has been | 1678 |
|
suspended or revoked, pending a change of broker or dealer and
the | 1679 |
|
issuance of a new license. Such new license shall be issued | 1680 |
|
without charges, if granted during the same year in which the | 1681 |
|
original license was granted. | 1682 |