SENATORS Carey, Mumper, Stivers, Harris, Prentiss, Spada, Hottinger, Padgett, Schuler

To amend sections 4735.03, 4735.04, 4735.05,

1

4735.051, 4735.06, 4735.09, 4735.13, 4735.14,

2

4735.141, 4735.15, 4735.53, 4735.58, 4735.70,

3

4735.71, and 4735.72, to enact new sections

4

4735.56 and 4735.57 and sections 4735.181 and

5

4735.182, and to repeal sections 4735.56, 4735.57,

6

and 4735.73 of the Revised Code to modify agency

7

relationships between real estate licensees and

8

customers, including disclosures made to

9

customers, to establish a penalty for

10

noncompliance with disclosure requirements, and to

11

make other changes to the Real Estate Broker Law.

12

BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF OHIO:

Section 1. That sections 4735.03, 4735.04, 4735.05, 4735.051,	13
4735.06, 4735.09, 4735.13, 4735.14, 4735.141, 4735.15, 4735.53,	14
4735.58, 4735.70, 4735.71, and 4735.72 be amended and new sections	15
4735.56 and 4735.57 and sections 4735.181 and 4735.182 of the	16
Revised Code be enacted to read as follows:	17

Sec. 4735.03.  There is hereby created the Ohio real estate	18
commission, consisting of five members who shall be appointed by	19
the governor, with the advice and consent of the senate. Four	20
members shall have been engaged in the real estate business as	21
licensed real estate brokers in the state for a period of ten	22
years immediately preceding the appointment. One member shall	23
represent the public. Terms of office shall be for five years,	24
commencing on the first day of July and ending on the thirtieth	25
day of June. Each member shall hold office from the date of	26
appointment until the end of the term for which appointed. No more	27
than three members shall be members of any one political party and	28
no member of the commission concurrently may be a member of the	29
commission and the real estate appraiser board created pursuant to	30
section 4763.02 of the Revised Code. Each member, before entering	31
upon the duties of office, shall subscribe to and file with the	32
secretary of state the constitutional oath of office. All	33
vacancies which occur shall be filled in the manner prescribed for	34
the regular appointments to the commission. Any member appointed	35
to fill a vacancy occurring prior to the expiration of the term	36
for which the member's predecessor was appointed shall hold office	37
for the remainder of such term. Any member shall continue in	38
office subsequent to the expiration date of the member's term	39
until the member's successor takes office, or until a period of	40
sixty days has elapsed, whichever occurs first. Annually, upon the	41
qualification of the member appointed in such year, the commission	42
shall organize by selecting from its members a president and	43
vice-president, and shall do all things necessary and proper to	44
carry out and enforce this chapter. A majority of the members of	45
the commission shall constitute a quorum, but a lesser number may	46
adjourn from time to time. Each member of the commission shall	47
receive an amount fixed pursuant to section 124.14 of the Revised	48
Code for each day employed in the discharge of official duties,	49
and the member's actual and necessary expenses incurred in the	50
discharge of those duties.	51

The commission or the superintendent of real estate may	52
investigate complaints concerning the violation of section 4735.02	53
or 4735.25 of the Revised Code and may subpoena witnesses in	54
connection with such investigations as provided in section 4735.04	55
of the Revised Code. The commission or the superintendent may make	56
application to the appropriate court for an order enjoining the	57
violation of section 4735.02 or 4735.25 of the Revised Code, and	58
upon a showing by the commission or the superintendent that any	59
person, firm, partnership, association, limited liability company,	60
limited liability partnership, or corporation has violated or is	61
about to violate section 4735.02 or 4735.25 of the Revised Code,	62
an injunction, restraining order, or such other order as may be	63
appropriate shall be granted by such court.	64

The commission shall:

65

(A) Adopt canons of ethics for the real estate industry;

66

(B) Upon appeal by any party affected, or may upon its own	67
motion, review any order or application determination of the	68
superintendent, and may reverse, vacate, or modify any order of	69
the superintendent;	70

(C) Administer the real estate education and research fund	71
and hear appeals from orders of the superintendent regarding	72
claims against that fund or against the real estate recovery fund;	73

(D) Direct the superintendent on the content, scheduling,	74
instruction, and offerings of real estate courses for salesperson	75
and broker educational requirements;	76

(E) Disseminate to licensees and the public, information	77
relative to commission activities and decisions;	78

(F) Notify licensees of changes in state and federal civil	79
rights laws pertaining to discrimination in the purchase or sale	80
of real estate and relevant case law, and inform licensees that	81
they are subject to disciplinary action if they do not comply with	82
the changes;	83

(G) Publish and furnish to public libraries and to brokers	84
booklets on housing and remedies available to dissatisfied clients	85
under this chapter and Chapter 4112. of the Revised Code;	86

(H) Provide training to commission members and employees of	87
the division of real estate and professional licensing on issues	88
relative to the real estate industry, which may include but not be	89
limited to investigative techniques, real estate law, and real	90
estate practices and procedures.	91

Sec. 4735.04.  The Ohio real estate commission or the	92
superintendent of real estate may compel, by order or subpoena,	93
the attendance of witnesses to testify in relation to any matter	94
over which the commission or superintendent has jurisdiction and	95
which is the subject of inquiry and investigation by the	96
commission or superintendent, and require the production of any	97
book, paper, or document pertaining to such matter. For such	98
purpose, the commission or superintendent shall have the same	99
power as judges of county courts to administer oaths, compel the	100
attendance of witnesses, and punish them for refusal to testify.	101
Sheriffs and constables are required to serve and return such	102
process and shall receive the same fees for doing so as are	103
allowed for like servicesService of the subpoena may be made by	104
sheriffs or constables, or by certified mail, return receipt	105
requested, and the subpoena shall be deemed served on the date	106
delivery is made or the date the person refused to accept	107
delivery. Witnesses shall receive, after their appearance before	108
the commission or superintendent, the fees and mileage allowed in	109
civil actions in courts of common pleas. If two or more witnesses	110
travel together in the same vehicle, the mileage fee shall be paid	111
to only one of those witnesses, but the witnesses may agree to	112
divide the fee among themselves in any manner.	113

In addition to the powers granted to the commission and	114
superintendent under this section, in case any person fails to	115
file any statement or report, obey any subpoena, give testimony,	116
answer questions, or produce any books, records, or papers as	117
required by the commission or superintendent under this chapter,	118
the court of common pleas of any county in the state, upon	119
application made to it by the commission or superintendent setting	120
forth such failure, may make an order awarding process of subpoena	121
or subpoena duces tecum for the person to appear and testify	122
before the commission or superintendent, and may order any person	123
to give testimony and answer questions, and to produce books,	124
records, or papers, as required by the commission or	125
superintendent. Upon the filing of such order in the office of the	126
clerk of the court of common pleas, the clerk, under the seal of	127
the court, shall issue process of subpoena for the person to	128
appear before the commission or superintendent at a time and place	129
named in the subpoena, and each day thereafter until the	130
examination of such person is completed. The subpoena may contain	131
a direction that the witness bring with himthe witness to the	132
examination any books, records, or papers mentioned in the	133
subpoena. The clerk shall also issue, under the seal of the court,	134
such other orders, in reference to the examination, appearance,	135
and production of books, records, or papers, as the court directs.	136
If any person so summoned by subpoena fails to obey the subpoena,	137
to give testimony, to answer questions as required, or to obey an	138
order of the court, the court, on motion supported by proof, may	139
order an attachment for contempt to be issued against the person	140
charged with disobedience of any order or injunction issued by the	141
court under this chapter. If the person is brought before the	142
court by virtue of the attachment, and if upon a hearing the	143
disobedience appears, the court may order the offender to be	144
committed and kept in close custody.	145

Sec. 4735.05.  (A) The Ohio real estate commission is a part	146
of the department of commerce for administrative purposes. The	147
director of commerce is ex officio the executive officer of the	148
commission, or the director may designate any employee of the	149
department as superintendent of real estate and professional	150
licensing to act as executive officer of the commission.	151

The commission and the real estate appraiser board created	152
pursuant to section 4763.02 of the Revised Code shall each submit	153
to the director a list of three persons whom the commission and	154
the board consider qualified to be superintendent within sixty	155
days after the office of superintendent becomes vacant. The	156
director shall appoint a superintendent from the lists submitted	157
by the commission and the board, and the superintendent shall	158
serve at the pleasure of the director.	159

(B) The superintendent, except as otherwise provided, shall	160
do all of the following in regard to this chapter:	161

(1) Administer this chapter;

162

(2) Issue all orders necessary to implement this chapter;

163

(3) Investigate complaints concerning the violation of this	164
chapter or the conduct of any licensee;	165

(4) Establish and maintain an investigation and audit section	166
to investigate complaints and conduct inspections, audits, and	167
other inquiries as in the judgment of the superintendent are	168
appropriate to enforce this chapter. The investigators or auditors	169
have the right to review and audit the business records of	170
licensees and continuing education course providers during normal	171
business hours.	172

(5) Appoint a hearing examiner for any proceeding involving	173
disciplinary action under section 3123.47 or 4735.18 of the	174
Revised Code;	175

(6) Administer the real estate recovery fund.

176

(C) The superintendent may do all of the following:

177

(1) In connection with investigations and audits under	178
division (B) of this section, subpoena witnesses as provided in	179
section 4735.04 of the Revised Code;	180

(2) Apply to the appropriate court to enjoin any violation of	181
this chapter. Upon a showing by the superintendent that any person	182
has violated or is about to violate any provision of this chapter,	183
the court shall grant an injunction, restraining order, or other	184
appropriate order.	185

(3) Upon the death of a licensed broker or the revocation or	186
suspension of the broker's license, if there is no other licensed	187
broker within the business entity of the broker, appoint upon	188
application by any interested party, or, in the case of a deceased	189
broker, subject to the approval by the appropriate probate court,	190
recommend the appointment of, an ancillary trustee who is	191
qualified as determined by the superintendent to conclude the	192
business transactions of the deceased, revoked, or suspended	193
broker;	194

(4) In conjunction with the enforcement of this chapter, when	195
the superintendent of real estate has reasonable cause to believe	196
that an applicant or licensee has committed a criminal offense,	197
the superintendent of real estate may request the superintendent	198
of the bureau of criminal identification and investigation to	199
conduct a criminal records check of the applicant or licensee. The	200
superintendent of the bureau of criminal identification and	201
investigation shall obtain information from the federal bureau of	202
investigation as part of the criminal records check of the	203
applicant or licensee. The superintendent of real estate may	204
assess the applicant or licensee a fee equal to the fee assessed	205
for the criminal records check.	206

(D) All information that is obtained by investigators and	207
auditors performing investigations or conducting inspections,	208
audits, and other inquiries pursuant to division (B)(4) of this	209
section, from licensees, complainants, or other persons, and all	210
reports, documents, and other work products that arise from that	211
information and that are prepared by the investigators, auditors,	212
or other personnel of the department, shall be held in confidence	213
by the superintendent, the investigators and auditors, and other	214
personnel of the department. Notwithstanding division (D) of	215
section 2317.023 of the Revised Code, all information obtained by	216
investigators or auditors from an informal mediation meeting held	217
pursuant to section 4735.051 of the Revised Code, including but	218
not limited to the agreement to mediate and the accommodation	219
agreement, shall be held in confidence by the superintendent,	220
investigators, auditors, and other personnel of the department.	221

Sec. 4735.051.  (A) Within five business days after a person	222
files a signed written complaint against a licensed real estate	223
broker or licensed real estate salesperson with the division of	224
real estate, the superintendent of real estate shall acknowledge	225
receipt of the complaint and send a notice to the licensee	226
describing the acts complained of. The acknowledgment to the	227
complainant and the notice to the licensee shall state that an	228
informal mediation meeting will be held with the complainant, the	229
licensee, and an investigator from the investigation and audit	230
section of the division if the complainant and licensee both file	231
a request for such a meeting within ten business days thereafter	232
on a form provided by the superintendent.	233

(B) If the complainant and licensee both file with the	234
division requests for an informal mediation meeting, the	235
superintendent shall notify the complainant and licensee of the	236
date of the meeting, which shall be within twenty business days	237
thereafter, except that any party may request an extension of up	238
to fifteen business days for good cause shown. If the complainant	239
and licensee reach an accommodation at an informal mediation	240
meeting, the investigator shall so report to the superintendent,	241
the complainant, and licensee and the complaint file shall be	242
closed, unless, based upon the investigator's report, the	243
superintendent finds evidence that the licensee has violated	244
section 4735.18 of the Revised Code.	245

(C) If the complainant and licensee fail to agree to an	246
informal mediation meeting or fail to reach an accommodation, or	247
if the superintendent finds evidence of a violation of section	248
4735.18 of the Revised Code, the superintendent shall, within five	249
business days of such determination, so notify the complainant and	250
licensee and shall investigate the conduct of the licensee against	251
whom the complaint is filed.	252

(D) Within sixty business days after receipt of the	253
complaint, or, if an informal meeting is held, within sixty days	254
of such meeting, the investigator shall file a written report of	255
the results of the investigator's investigation with the	256
superintendent. Within fourteen business days thereafter, the	257
superintendent shall review the report and determine whether there	258
exists reasonable and substantial evidence of a violation of	259
section 4735.18 of the Revised Code by the licensee. If the	260
superintendent finds such evidence exists, within seven business	261
days of the determination, the superintendent shall notify the	262
complainant and licensee of the date of a hearing to be held by a	263
hearing examiner pursuant to Chapter 119. of the Revised Code	264
within fifteen days but not prior to seven days thereafter, except	265
that either the superintendent or the licensee may request an	266
extension of up to thirty business days for good cause shown. If	267
the superintendent finds that such evidence does not exist, within	268
five business days thereafter, the superintendent shall so notify	269
the complainant and licensee of the superintendent's determination	270
and the basis for the determination. Within fifteen business days	271
after the superintendent notifies the complainant and licensee	272
that such evidence does not exist, the complainant may file with	273
the division a request that the commissioners review the	274
determination. If the complainant files such request, the	275
commissioners shall review the determination at the next regularly	276
scheduled meeting held at least fifteen business days after the	277
request is filed. The commission shall hear the testimony of	278
either the complainant or the licensee at the meeting upon the	279
request of the complainant or licensee. If the commissioners	280
affirm the determination of the superintendent, the superintendent	281
shall so notify the complainant and the licensee within five	282
business days thereafter. If the commissioners reverse the	283
determination of the superintendent, a hearing shall be held and	284
the complainant and licensee notified as provided in this	285
division.	286

After the date of a hearing to be held by a hearing examiner	287
has been scheduled pursuant to division (D) of this section, but	288
before the issuance of the report of findings of fact and	289
conclusions of law pursuant to division (E) of this section, the	290
superintendent upon receipt of additional evidence, may withdraw	291
the notice of hearing. Withdrawal by the superintendent does not	292
constitute evidence that the original notice of hearing was not	293
substantially justified. Upon withdrawal of the notice of hearing,	294
the superintendent shall notify the complainant and licensee of	295
the superintendent's determination and basis for the	296
determination. Within fifteen business days after the	297
superintendent notifies the complainant and licensee, the	298
complainant may file with the superintendent a request that the	299
Ohio real estate commission review the determination. The	300
commission shall review the request as provided in division (D) of	301
this section.	302

(E) Within twenty-five business days after the conclusion of	303
formal hearings, the hearing examiner shall file a report of	304
findings of fact and conclusions of law with the superintendent,	305
the commission, and the complainant and licensee.	306

(F) The commissioners shall review the hearing examiner's	307
report at the next regularly scheduled commission meeting held at	308
least fifteen business days after receipt of the hearing	309
examiner's report. The commission shall hear the testimony of the	310
complainant or the licensee upon request. If the complainant is	311
the Ohio civil rights commission, the complaint shall be reviewed	312
by the commissioners directly upon request.	313

(G) The commission shall decide whether to impose	314
disciplinary sanctions upon a licensee for a violation of section	315
4735.18 of the Revised Code. The commission shall decide within	316
sixty days of the filing of the hearing examiner's report or	317
within sixty days of the filing of an Ohio civil rights commission	318
complaint. The commission shall maintain a transcript of the	319
proceedings and issue a written opinion to the complainant and	320
licensee, citing its findings and grounds for any action taken.	321
The commission shall notify the complainant and any other person	322
who may have suffered financial loss because of the licensee's	323
violations, that the complainant or other person may sue for	324
recovery under section 4735.12 of the Revised Code.	325

(H) An investigation under this section is subject to section	326
4735.32 of the Revised Code.	327

(I) The commission may impose the following sanctions upon a	328
licensee for a violation of section 4735.18 of the Revised Code:	329

(1) Revoke a license issued under Chapter 4735. of the	330
Revised Code;	331

(2) Suspend a license for a term set by the commission;

332

(3) Impose a fine, not exceeding two thousand five hundred	333
dollars per violation;	334

(4) Issue a public reprimand;

335

(5) Require the completion of additional continuing education	336
course work. Any continuing education course work imposed pursuant	337
to this section shall not count toward the continuing education	338
requirements set forth in section 4735.14 of the Revised Code.	339

All fines imposed pursuant to division (I)(3) of this section	340
shall be credited to the real estate recovery fund, which is	341
created in the state treasury under section 4735.12 of the Revised	342
Code.	343

(J) All notices, written reports, and determinations issued	344
pursuant to this section shall be mailed via certified mail,	345
return receipt requested. If the certified notice is returned	346
because of failure of delivery, or was refused or unclaimed, the	347
notice, written reports, or determinations are deemed served if	348
the superintendent sends the notice, written report, or	349
determination via regular mail and obtains a certificate of	350
mailing of the notice, written reports, or determination.	351

Sec. 4735.06.  (A) Application for a license as a real estate	352
broker shall be made to the superintendent of real estate on forms	353
furnished by the superintendent and filed with the superintendent	354
and shall be signed by the applicant or its members or officers.	355
Each application shall state the name of the person applying and	356
the location of the place of business for which the license is	357
desired, and give such other information as the superintendent	358
requires in the form of application prescribed by the	359
superintendent.	360

If the applicant is a partnership, limited liability company,	361
limited liability partnership, or association, the names of all	362
the members also shall be stated, and, if the applicant is a	363
corporation, the names of its president and of each of its	364
officers also shall be stated. The superintendent has the right to	365
reject the application of any partnership, association, limited	366
liability company, limited liability partnership, or corporation	367
if the name proposed to be used by such partnership, association,	368
limited liability company, limited liability partnership, or	369
corporation is likely to mislead the public or if the name is not	370
such as to distinguish it from the name of any existing	371
partnership, association, limited liability company, limited	372
liability partnership, or corporation licensed under this chapter,	373
unless there is filed with the application the written consent of	374
such existing partnership, association, limited liability company,	375
limited liability partnership, or corporation, executed by a duly	376
authorized representative of it, permitting the use of the name of	377
such existing partnership, association, limited liability company,	378
limited liability partnership, or corporation.	379

(B) A fee of sixty-nine dollars shall accompany the	380
application for a real estate broker's license, which fee includes	381
the fee for the initial year of the licensing period, if a license	382
is issued. The application fee shall be retained by the	383
superintendent if the applicant is admitted to the examination for	384
the license or the examination requirement is waived, but, if an	385
applicant is not so admitted and a waiver is not involved,	386
one-half of the fee shall be retained by the superintendent to	387
cover the expenses of processing the application and the other	388
one-half shall be returned to the applicant. A fee of sixty-nine	389
dollars shall be charged by the superintendent for each successive	390
application made by an applicant. In the case of issuance of a	391
three-year license, upon passing the examination, or upon waiver	392
of the examination requirement, if the superintendent determines	393
it is necessary, the applicant shall submit an additional fee of	394
ninety-eight dollars, which fee includes the fee for the second	395
and third year of the licensing period, except that the	396
superintendent shall prorate that additional feedetermined by the	397
superintendent based upon the number of years remaining in a real	398
estate salesperson's licensing period.	399

(C) Four dollars of each application fee for a real estate	400
broker's license shall be credited to the real estate education	401
and research fund, which is hereby created in the state treasury.	402
The Ohio real estate commission may use the fund in discharging	403
the duties prescribed in divisions (E), (F), and (G), and (H) of	404
section 4735.03 of the Revised Code and shall use it in the	405
advancement of education and research in real estate at any	406
institution of higher education in the state, or in contracting	407
with any such institution or a trade organization for a particular	408
research or educational project in the field of real estate, or in	409
advancing loans, not exceeding eight hundred dollars, to	410
applicants for salesperson licenses, to defray the costs of	411
satisfying the educational requirements of division (F) of section	412
4735.09 of the Revised Code. Such loans shall be made according to	413
rules established by the commission under the procedures of	414
Chapter 119. of the Revised Code, and they shall be repaid to the	415
fund within three years of the time they are made. No more than	416
ten thousand dollars shall be lent from the fund in any one year.	417

The governor may appoint a representative from the executive	418
branch to be a member ex officio of the commission for the purpose	419
of advising on research requests or educational projects. The	420
commission shall report to the general assembly on the third	421
Tuesday after the third Monday in January of each year setting	422
forth the total amount contained in the fund and the amount of	423
each research grant that it has authorized and the amount of each	424
research grant requested. A copy of all research reports shall be	425
submitted to the state library of Ohio and the library of the	426
legislative service commission.	427

(D) If the superintendent, with the consent of the	428
commission, enters into an agreement with a national testing	429
service to administer the real estate broker's examination,	430
pursuant to division (A) of section 4735.07 of the Revised Code,	431
the superintendent may require an applicant to pay the testing	432
service's examination fee directly to the testing service. If the	433
superintendent requires the payment of the examination fee	434
directly to the testing service, each applicant shall submit to	435
the superintendent a processing fee in an amount determined by the	436
Ohio real estate commission pursuant to division (A)(2) of section	437
4735.10 of the Revised Code.	438

Sec. 4735.09.  (A) Application for a license as a real estate	439
salesperson shall be made to the superintendent of real estate on	440
forms furnished by the superintendent and signed by the applicant.	441
The application shall be in the form prescribed by the	442
superintendent and shall contain such information as is required	443
by this chapter and the rules of the Ohio real estate commission.	444
The application shall be accompanied by the recommendation of the	445
real estate broker with whom the applicant is associated or with	446
whom the applicant intends to be associated, certifying that the	447
applicant is honest, truthful, and of good reputation, has not	448
been convicted of a felony or a crime involving moral turpitude,	449
and has not been finally adjudged by a court to have violated any	450
municipal, state, or federal civil rights laws relevant to the	451
protection of purchasers or sellers of real estate, which	452
conviction or adjudication the applicant has not disclosed to the	453
superintendent, and recommending that the applicant be admitted to	454
the real estate salesperson examination.	455

(B) A fee of forty-nine dollars shall accompany the	456
application, which fee includes the fee for the initial year of	457
the licensing period, if a license is issued. The application fee	458
shall be retained by the superintendent if the applicant is	459
admitted to the examination for the license or the examination	460
requirement is waived, but, if an applicant is not so admitted and	461
a waiver is not involved, one-half of the fee shall be retained by	462
the superintendent to cover the expenses of processing the	463
application and the other one-half shall be returned to the	464
applicant. A fee of forty-nine dollars shall be charged by the	465
superintendent for each successive application made by the	466
applicant. In the case of issuance of a three-year license, upon	467
passing the examination, or upon waiver of the examination	468
requirement, the applicant shall submit an additional fee of	469
seventy-eight dollars, which fee includes the fee for the second	470
and third year of the licensing period. Four dollars of each	471
application fee shall be credited to the real estate education and	472
research fund.	473

(C) There shall be no limit placed on the number of times an	474
applicant may retake the examination.	475

(D) The superintendent, with the consent of the commission,	476
may enter into an agreement with a recognized national testing	477
service to administer the real estate salesperson's examination	478
under the superintendent's supervision and control, consistent	479
with the requirements of this chapter as to the contents of the	480
examination.	481

If the superintendent, with the consent of the commission,	482
enters into an agreement with a national testing service to	483
administer the real estate salesperson's examination, the	484
superintendent may require an applicant to pay the testing	485
service's examination fee directly to the testing service. If the	486
superintendent requires the payment of the examination fee	487
directly to the testing service, each applicant shall submit to	488
the superintendent a processing fee in an amount determined by the	489
Ohio real estate commission pursuant to division (A)(1) of section	490
4735.10 of the Revised Code.	491

(E) The superintendent shall issue a real estate	492
salesperson's license when satisfied that the applicant has	493
received a passing score on each portion of the salesperson's	494
examination as determined by rule by the real estate commission,	495
except that the superintendent may waive one or more of the	496
requirements of this section in the case of an applicant who is a	497
licensed real estate salesperson in another state pursuant to a	498
reciprocity agreement with the licensing authority of the state	499
from which the applicant holds a valid real estate salesperson's	500
license.	501

(F) No applicant for a salesperson's license shall take the	502
salesperson's examination who has not established to the	503
satisfaction of the superintendent that the applicant:	504

(1) Is honest, truthful, and of good reputation;

505

(2)(a) Has not been convicted of a felony or crime of moral	506
turpitude or, if the applicant has been so convicted, the	507
superintendent has disregarded the conviction because the	508
applicant has proven to the superintendent, by a preponderance of	509
the evidence, that the applicant's activities and employment	510
record since the conviction show that the applicant is honest,	511
truthful, and of good reputation, and there is no basis in fact	512
for believing that the applicant again will violate the laws	513
involved;	514

(b) Has not been finally adjudged by a court to have violated	515
any municipal, state, or federal civil rights laws relevant to the	516
protection of purchasers or sellers of real estate or, if the	517
applicant has been so adjudged, at least two years have passed	518
since the court decision and the superintendent has disregarded	519
the adjudication because the applicant has proven, by a	520
preponderance of the evidence, that the applicant is honest,	521
truthful, and of good reputation, and there is no basis in fact	522
for believing that the applicant again will violate the laws	523
involved.	524

(3) Has not, during any period in which the applicant was	525
licensed under this chapter, violated any provision of, or any	526
rule adopted pursuant to this chapter, or, if the applicant has	527
violated such provision or rule, has established to the	528
satisfaction of the superintendent that the applicant will not	529
again violate such provision or rule;	530

(4) Is at least eighteen years of age;

531

(5) If born after the year 1950, has a high school diploma or	532
its equivalent as recognized by the state department of education;	533

(6)(a) If beginning instruction prior to August 1, 2001, has	534
successfully completed at an institution of higher education all	535
of the following:	536

(i) Thirty hours of classroom instruction in real estate	537
practice;	538

(ii) Thirty hours of classroom instruction that includes the	539
subjects of Ohio real estate law, municipal, state, and federal	540
civil rights law, new case law on housing discrimination,	541
desegregation issues, and methods of eliminating the effects of	542
prior discrimination. If feasible, the classroom instruction in	543
Ohio real estate law shall be taught by a member of the faculty of	544
an accredited law school. If feasible, the classroom instruction	545
in municipal, state, and federal civil rights law, new case law on	546
housing discrimination, desegregation issues, and methods of	547
eliminating the effects of prior discrimination shall be taught by	548
a staff member of the Ohio civil rights commission who is	549
knowledgeable with respect to those subjects. The requirements of	550
this division do not apply to an applicant who is admitted to	551
practice before the supreme court.	552

(iii) Thirty hours of classroom instruction in real estate	553
appraisal;	554

(iv) Thirty hours of classroom instruction in real estate	555
finance.	556

(b) Any person who has not been licensed as a real estate	557
salesperson or broker within a four-year period immediately	558
preceding the person's current application for the salesperson's	559
examination shall have successfully completed the classroom	560
instruction required by division (F)(6)(a) of this section within	561
a ten-year period immediately preceding the person's current	562
application for the salesperson's examination.	563

(7) If beginning instruction, as determined by the	564
superintendent, on or after August 1, 2001, has successfully	565
completed at an institution of higher education all of the	566
following:	567

(a) Forty hours of classroom instruction in real estate	568
practice;	569

(b) Forty hours of classroom instruction that includes the	570
subjects of Ohio real estate law, municipal, state, and federal	571
civil rights law, new case law on housing discrimination,	572
desegregation issues, and methods of eliminating the effects of	573
prior discrimination. If feasible, the classroom instruction in	574
Ohio real estate law shall be taught by a member of the faculty of	575
an accredited law school. If feasible, the classroom instruction	576
in municipal, state, and federal civil rights law, new case law on	577
housing discrimination, desegregation issues, and methods of	578
eliminating the effects of prior discrimination shall be taught by	579
a staff member of the Ohio civil rights commission who is	580
knowledgeable with respect to those subjects. The requirements of	581
this division do not apply to an applicant who is admitted to	582
practice before the supreme court.	583

(c) Twenty hours of classroom instruction in real estate	584
appraisal;	585

(d) Twenty hours of classroom instruction in real estate	586
finance.	587

(G) No later than twelve months after the date of issue of a	588
real estate salesperson license to a licensee, the licensee shall	589
submit proof satisfactory to the superintendent, on forms made	590
available by the superintendent, of completion, at an institution	591
of higher education or any other institution approved by the	592
commission, of ten hours of classroom instruction in real estate	593
courses that cover current issues regarding consumers, real estate	594
practice, ethics, and real estate law.	595

If proof of completion of the required instruction is not	596
submitted within twelve months of the date a license is issued	597
under this section, the licensee's license is suspended	598
automatically without the taking of any action by the	599
superintendent. The superintendent immediately shall notify the	600
broker with whom such salesperson is associated of the suspension	601
of the salesperson's license. A salesperson whose license has been	602
suspended under this division shall have twelve months after the	603
date of the suspension of the salesperson's license to submit	604
proof of successful completion of the instruction required under	605
this division. No such license shall be reactivated by the	606
superintendent until it is established, to the satisfaction of the	607
superintendent, that the requirements of this division have been	608
met and that the licensee is in compliance with this chapter. A	609
licensee's license is revoked automatically without the taking of	610
any action by the superintendent when the licensee fails to submit	611
the required proof of completion of the education requirements	612
under division (G) of this section within twelve months of the	613
date the license is suspended.	614

(H) Examinations shall be administered with reasonable	615
accommodations in accordance with the requirements of the	616
"Americans with Disabilities Act of 1990," 104 Stat. 327, 42	617
U.S.C. 12101. The contents of an examination shall be consistent	618
with the classroom instructional requirements of division (F)(6)	619
or (7) of this section. An applicant who has completed the	620
classroom instructional requirements of division (F)(6) or (7) of	621
this section at the time of application shall be examined no later	622
than twelve months after the applicant is notified of the	623
applicant's admission to the examination.	624

Sec. 4735.13.  (A) The license of a real estate broker shall	625
be prominently displayed in the office or place of business of the	626
broker, and no license shall authorize the licensee to do business	627
except from the location specified in it. If the broker maintains	628
more than one place of business within the state, the broker shall	629
apply for and procure a duplicate license for each branch office	630
maintained by the broker. Each branch office shall be in the	631
charge of a licensed broker or salesperson. The branch office	632
license shall be prominently displayed at the branch office	633
location.	634

(B) The license of each real estate salesperson shall be	635
mailed to and remain in the possession of the licensed broker with	636
whom the salesperson is or is to be associated until the licensee	637
places the license on inactive status or until the salesperson	638
leaves the brokerage or is terminated. The broker shall keep each	639
salesperson's license in a way that it can, and shall on request,	640
be made immediately available for public inspection at the office	641
or place of business of the broker. Except as provided in division	642
divisions (G) and (H) of this section, immediately upon the	643
salesperson's leaving the association or termination of the	644
association of a real estate salesperson with the broker, the	645
broker shall return the salesperson's license to the	646
superintendent of real estate.	647

The failure of a broker to return the license of a real	648
estate salesperson or broker who leaves or who is terminated, via	649
certified mail return receipt requested, within three business	650
days of the receipt of a written request from the salesperson	651
superintendent for the return of the license, when a copy of the	652
request also is forwarded to the superintendent, is prima-facie	653
evidence of misconduct under division (A)(6) of section 4735.18 of	654
the Revised Code.	655

(C) Any licensee who is convicted of a felony or a crime	656
involving moral turpitude or of violating any federal, state, or	657
municipal civil rights law pertaining to discrimination in	658
housing, or any court that issues a finding of an unlawful	659
discriminatory practice pertaining to housing accommodations	660
described in division (H) of section 4112.02 of the Revised Code	661
or that convicts a licensee of a violation of any municipal civil	662
rights law pertaining to housing discrimination, shall notify the	663
superintendent of the conviction or finding within fifteen days.	664
If a licensee fails to notify the superintendent within the	665
required time, the superintendent immediately may revoke the	666
license of the licensee.	667

Any court that convicts a licensee of a violation of any	668
municipal civil rights law pertaining to housing discrimination	669
also shall notify the Ohio civil rights commission within fifteen	670
days of the conviction.	671

(D) In case of any change of business location, a broker	672
shall give notice in writing to the superintendent, whereupon the	673
superintendent shall issue new licenses for the unexpired period	674
without charge. If a broker changes a business location without	675
giving the required notice and without receiving new licenses that	676
action is prima-facie evidence of misconduct under division (A)(6)	677
of section 4735.18 of the Revised Code.	678

(E) If a real estate broker desires to associate with another	679
real estate broker in the capacity of a real estate salesperson,	680
the broker shall apply to the superintendent to deposit the	681
broker's real estate broker's license with the superintendent and	682
for the issuance of a real estate salesperson's license. The	683
application shall be made on a form prescribed by the	684
superintendent and shall be accompanied by the recommendation of	685
the real estate broker with whom the applicant intends to become	686
associated and a fee of twenty-five dollars for the real estate	687
salesperson's license. Four dollars of the fee shall be credited	688
to the real estate education and research fund. If the	689
superintendent is satisfied that the applicant is honest,	690
truthful, and of good reputation, has not been convicted of a	691
felony or a crime involving moral turpitude, and has not been	692
finally adjudged by a court to have violated any municipal, state,	693
or federal civil rights laws relevant to the protection of	694
purchasers or sellers of real estate, and that the association of	695
the real estate broker and the applicant will be in the public	696
interest, the superintendent shall grant the application and issue	697
a real estate salesperson's license to the applicant. Any license	698
so deposited with the superintendent shall be subject to this	699
chapter. A broker who intends to deposit the broker's license with	700
the superintendent, as provided in this section, shall give	701
written notice of this fact in a format prescribed by the	702
superintendent to all salespersons associated with the broker when	703
applying to place the broker's license on deposit.	704

(F) If a real estate broker desires to become a member or	705
officer of a partnership, association, limited liability company,	706
limited liability partnership, or corporation that is or intends	707
to become a licensed real estate broker, the broker shall notify	708
the superintendent of the broker's intentions. The notice of	709
intention shall be on a form prescribed by the superintendent and	710
shall be accompanied by a fee of twenty-five dollars. Four dollars	711
of the fee shall be credited to the real estate education and	712
research fund.	713

No real estate broker who is a member or officer of a	714
partnership, association, limited liability company, limited	715
liability partnership, or corporation that is a licensed real	716
estate broker shall perform any acts as a real estate broker other	717
than as the agent of the partnership, association, limited	718
liability company, limited liability partnership, or corporation,	719
and such broker shall not have any real estate salespersons	720
associated with the broker.	721

(G) If a real estate broker or salesperson enters the armed	722
forces, the broker or salesperson may place the broker's or	723
salesperson's license on deposit with the Ohio real estate	724
commission. The licensee shall not be required to renew the	725
license until the renewal date that follows the date of discharge	726
from the armed forces. Any license deposited with the commission	727
shall be subject to this chapter. Any licensee whose license is on	728
deposit under this division and who fails to meet the continuing	729
education requirements of section 4735.141 of the Revised Code	730
because the licensee is in the armed forces shall satisfy the	731
commission that the licensee has complied with the continuing	732
education requirements within twelve months of the licensee's	733
discharge. The commission shall notify the licensee of the	734
licensee's obligations under section 4735.141 of the Revised Code	735
at the time the licensee applies for reactivation of the	736
licensee's license.	737

(H) If a licensed real estate salesperson submits an	738
application to the superintendent to leave the association of one	739
broker to associate with a different broker, the broker possessing	740
the licensee's license need not return the salesperson's license	741
to the superintendent. The superintendent may process the	742
application regardless of whether the licensee's license is	743
returned to the superintendent.	744

Sec. 4735.14.  (A) Each license issued under this chapter,	745
shall be valid without further recommendation or examination until	746
placed in an inactive status, revoked, suspended, or such license	747
expires by operation of law.	748

(B) Each licensed broker, brokerage, or salesperson shall	749
file, on or before the date the Ohio real estate commission has	750
adopted by rule for that licensee in accordance with division	751
(A)(2)(f) of section 4735.10 of the Revised Code, a notice of	752
renewal on a form prescribed by the superintendent of real estate.	753
The licensee shall indicate on the form whether the licensee	754
wishes to maintain the licensee's license in an active or inactive	755
status. The notice of renewal shall be mailed by the	756
superintendent to the most current personal residence address of	757
each broker or salesperson as filed with the superintendent by the	758
licensee and the place of business address of the brokerage two	759
months prior to the filing deadline.	760

(C) The license of any real estate broker, brokerage, or	761
salesperson that fails to file a notice of renewal on or before	762
the filing deadline of each ensuing year shall be suspended	763
automatically without the taking of any action by the	764
superintendent. A suspended license may be reactivated within	765
twelve months of the date of suspension, provided that the renewal	766
fee plus a penalty fee of fifty per cent of the renewal fee is	767
paid to the superintendent. Failure to reactivate the license as	768
provided in this division shall result in automatic revocation of	769
the license without the taking of any action by the	770
superintendent. No person, partnership, association, corporation,	771
limited liability company, or limited partnership shall engage in	772
any act or acts for which a real estate license is required while	773
that entity's license is placed in an inactive status, suspended,	774
or revoked. The commission shall adopt rules in accordance with	775
Chapter 119. of the Revised Code to provide to licensees notice of	776
suspension or revocation or both.	777

(D) Each licensee shall notify the commission of a change in	778
personal residence address. A licensee's failure to notify the	779
commission of a change in personal residence address does not	780
negate the requirement to file the license renewal by the required	781
deadline established by the commission by rule under division	782
(A)(2)(f) of section 4735.10 of the Revised Code.	783

(E) The superintendent shall not renew a license if the	784
licensee is not in compliance with this chapter.	785

Sec. 4735.141.  (A) Except as otherwise provided in this	786
division, each person licensed under section 4735.07 or 4735.09 of	787
the Revised Code shall submit proof satisfactory to the	788
superintendent of real estate that the licensee has satisfactorily	789
completed thirty hours of continuing education, as prescribed by	790
the Ohio real estate commission pursuant to section 4735.10 of the	791
Revised Code, on or before the licensee's birthday occurring three	792
years after the licensee's date of initial licensure, and on or	793
before the licensee's birthday every three years thereafter.	794

Persons licensed as real estate salespersons who subsequently	795
become licensed real estate brokers shall continue to submit proof	796
of continuing education in accordance with the time period	797
established in this section.	798

The requirements of this section shall not apply to any	799
physically handicapped licensee as provided in division (E) of	800
this section.	801

Each licensee who is seventy years of age or older on June	802
14, 1999, within a continuing education reporting period, shall	803
submit, on or before the licensee's birthday occurring three years	804
after June 30, 1999, and on or before the licensee's birthday	805
every three years thereafter, proof satisfactory to the	806
superintendent of real estate that the licensee has satisfactorily	807
completed a total of nine classroom hours of continuing education,	808
including instruction in Ohio real estate law; recently enacted	809
state and federal laws affecting the real estate industry;	810
municipal, state, and federal civil rights law; and canons of	811
ethics for the real estate industry as adopted by the commission.	812
The required proof of completion shall be submitted on or before	813
the licensee's birthday that falls in the third year of that	814
continuing education reporting period. A licensee who is seventy	815
years of age or older whose license is in an inactive status is	816
exempt from the continuing education requirements specified in	817
this section. The commission shall adopt reasonable rules in	818
accordance with Chapter 119. of the Revised Code to carry out the	819
purposes of this paragraph.	820

A person providing any course of continuing education may	821
administer examinations to licensees for the purpose of evaluating	822
the effectiveness of the course, but passage of an examination by	823
a licensee shall not be a condition for successful completion of	824
the continuing education requirements of this section.	825

(B) The continuing education requirements of this section	826
shall be completed in schools, seminars, and educational	827
institutions approved by the commission. Such approval shall be	828
given according to rules established by the commission under the	829
procedures of Chapter 119. of the Revised Code, and shall not be	830
limited to institutions providing two-year or four-year degrees.	831
Each school, seminar, or educational institution approved under	832
this division shall be open to all licensees on an equal basis.	833

(C) If the requirements of this section are not met by a	834
licensee within the period specified, the licensee's license shall	835
be suspended automatically without the taking of any action by the	836
superintendent. The superintendent shall notify the licensee of	837
the license suspension. Any license so suspended shall remain	838
suspended until it is reactivated by the superintendent. No such	839
license shall be reactivated until it is established, to the	840
satisfaction of the superintendent, that the requirements of this	841
section have been met. If the requirements of this section are not	842
met within twelve months from the date the license was suspended,	843
the license shall be revoked automatically without the taking of	844
any action by the superintendent.	845

(D) If the license of a real estate broker is suspended	846
pursuant to division (C) of this section, the license of a real	847
estate salesperson associated with that broker correspondingly is	848
suspended pursuant to division (H) of section 4735.20 of the	849
Revised Code. However, the suspended license of the associated	850
real estate salesperson shall be reactivated and no fee shall be	851
charged or collected for that reactivation if all of the following	852
occur:	853

(1) That broker subsequently submits proof to the	854
superintendent that the broker has complied with the requirements	855
of this section and requests that the broker's license as a real	856
estate broker be reactivated.	857

(2) The superintendent then reactivates the broker's license	858
as a real estate broker.	859

(3) The associated real estate salesperson intends to	860
continue to be associated with that broker, has complied with the	861
requirements of this section, and otherwise is in compliance with	862
this chapter.	863

Any person whose license is reactivated pursuant to this	864
division shall submit proof satisfactory to the superintendent	865
that the person has completed thirty hours of continuing	866
education, as prescribed by the Ohio real estate commission, on or	867
before the third year following the licensee's birthday occurring	868
immediately after reactivation.	869

(E) Any licensee who is a physically handicapped licensee at	870
any time during the last three months of the third year of the	871
licensee's continuing education reporting period may receive an	872
extension of time to submit proof to the superintendent that the	873
licensee has satisfactorily completed the required thirty hours of	874
continuing education. To receive an extension of time, the	875
licensee shall submit a request to the division of real estate for	876
the extension and proof satisfactory to the commission that the	877
licensee was a physically handicapped licensee at some time during	878
the last three months of the three-year reporting period. The	879
proof shall include, but is not limited to, a signed statement by	880
the licensee's attending physician describing the physical	881
disability, certifying that the licensee's disability is of such a	882
nature as to prevent the licensee from attending any instruction	883
lasting at least three hours in duration, and stating the expected	884
duration of the physical disability. The licensee shall request	885
the extension and provide the physician's statement to the	886
division no later than one month prior to the end of the	887
licensee's three-year continuing education reporting period,	888
unless the physical disability did not arise until the last month	889
of the three-year reporting period, in which event the licensee	890
shall request the extension and provide the physician's statement	891
as soon as practical after the occurrence of the physical	892
disability. A licensee granted an extension pursuant to this	893
division who is no longer a physically handicapped licensee and	894
who submits proof of completion of the continuing education during	895
the extension period, shall submit, for future continuing	896
education reporting periods, proof of completion of the continuing	897
education requirements according to the schedule established in	898
division (A) of this section.	899

Sec. 4735.15.  (A) The fees for reactivation or transfer of a	900
license shall be as follows:	901

(1) Reactivation or transfer of a broker's license into or	902
out of a partnership, association, limited liability company,	903
limited liability partnership, or corporation or from one	904
partnership, association, limited liability company, limited	905
liability partnership, or corporation to another partnership,	906
association, limited liability company, limited liability	907
partnership, or corporation, twenty-five dollars. An application	908
for such transfer shall be made to the superintendent of real	909
estate on forms provided by the superintendent.	910

(2) Reactivation or transfer of a license by a real estate	911
salesperson, twenty dollars.	912

(B) TheExcept as may otherwise be specified pursuant to	913
division (F) of this section, the fees for a branch office	914
license, license renewal, late filing, and foreign real estate	915
dealer and salesperson license are as follows per year for each	916
year of a licensing period:	917

(1) Branch office license, eight dollars;

918

(2) Renewal of a real estate broker's license, forty-nine	919
dollars. If the licensee is a partnership, association, limited	920
liability company, limited liability partnership, or corporation,	921
the full broker's renewal fee shall be required for each member of	922
such partnership, association, limited liability company, limited	923
liability partnership, or corporation that is a real estate	924
broker. If the real estate broker has not less than eleven nor	925
more than twenty real estate salespersons associated with the	926
broker, an additional fee of sixty-four dollars shall be assessed	927
to the brokerage. For every additional ten real estate	928
salespersons or fraction of that number, the brokerage assessment	929
fee shall be increased in the amount of thirty-seven dollars.	930

(3) Renewal of a real estate salesperson's license,	931
thirty-nine dollars;	932

(4) Renewal of a real estate broker's or salesperson's	933
license filed within twelve months after the licensee's renewal	934
date, an additional late filing penalty of fifty per cent of the	935
required fee;	936

(5) Foreign real estate dealer's license and each renewal of	937
the license, thirty dollars per salesperson employed by the	938
dealer, but not less than one hundred fifty dollars;	939

(6) Foreign real estate salesperson's license and each	940
renewal of the license, fifty dollars.	941

(C) All fees collected under this section shall be paid to	942
the treasurer of state. Four dollars of each such fee shall be	943
credited to the real estate education and research fund, except	944
that for fees that are assessed only once every three years,	945
twelve dollars of each triennial fee shall be credited to the real	946
estate education and research fund.	947

(D) In all cases, the fee and any penalty shall accompany the	948
application for the license, license transfer, or license	949
reactivation or shall accompany the filing of the renewal.	950

(E) The commission may establish by rule reasonable fees for	951
services not otherwise established by this chapter.	952

(F) The commission may adopt rules that provide for a	953
reduction in the fees established in divisions (B)(2) and (3) of	954
this section.	955

Sec. 4735.181. (A) No real estate broker or salesperson	956
licensed pursuant to this chapter shall fail to comply with	957
sections 4735.55, 4735.56, and 4735.58 of the Revised Code or any	958
rules adopted under those sections.	959

(B) When the superintendent determines that a licensee has	960
violated division (A) of this section, the superintendent may do	961
either of the following:	962

(1) Initiate disciplinary action under section 4735.051 of	963
the Revised Code, in accordance with Chapter 119. of the Revised	964
Code;	965

(2) Personally, or by certified mail, serve a citation and	966
impose sanctions in accordance with this section upon the	967
licensee.	968

(C) Every citation served under this section shall give	969
notice to the licensee of the alleged violation or violations	970
charged and inform the licensee of the opportunity to request a	971
hearing in accordance with Chapter 119. of the Revised Code. The	972
citation also shall contain a statement of a fine of up to two	973
hundred dollars per violation. All fines collected pursuant to	974
this section shall be credited to the real estate recovery fund,	975
created in the state treasury under section 4735.12 of the Revised	976
Code.	977

(D) If any licensee is cited three times under this section	978
within twelve consecutive months, the superintendent shall	979
initiate disciplinary action pursuant to section 4735.051 of the	980
Revised Code for any subsequent violation that occurs within the	981
same twelve-month period.	982

If a licensee fails to request a hearing within thirty days	983
after the date of service of the citation, or the licensee and the	984
superintendent fail to reach an alternative agreement, the	985
citation shall become final.	986

(E) Unless otherwise indicated, the licensee named in a final	987
citation under this section must meet all requirements contained	988
in the final citation within thirty days after the effective date	989
of that citation.	990

(F) The superintendent shall suspend automatically a	991
licensee's license if the licensee fails to comply with division	992
(E) of this section.	993

Sec. 4735.182. If a check or other draft instrument used to	994
pay any fee required under this chapter is returned to the	995
superintendent for insufficient funds, the superintendent shall	996
notify the licensee that the check or other draft instrument was	997
returned for insufficient funds and that the licensee's license	998
will be suspended unless the licensee, within fifteen days after	999
the mailing of the notice, submits the fee and a	1000
one-hundred-dollar fee to the superintendent. If the licensee does	1001
not submit both fees within that time period, or if any check or	1002
other draft instrument used to pay either of those fees is	1003
returned to the superintendent for insufficient funds, the license	1004
shall be suspended immediately without a hearing and the licensee	1005
shall cease activity as a licensee under this chapter.	1006

Sec. 4735.53.  (A) The types of agency relationships a	1007
licensee may establish in a real estate transaction are limited to	1008
the following:	1009

(1) An agency relationship between the licensee and the	1010
seller;	1011

(2) An agency relationship between the licensee and the	1012
purchaser;	1013

(3) A dual agency relationship between the licensee and both	1014
the seller and the purchaser;	1015

(4) A subagency relationship between the licensee and the	1016
client of another licensee.	1017

(B) When an agency relationship is formed between a licensee	1018
and a client, bothall of the following applyalso are considered	1019
the agent of that client:	1020

(1) The brokerage with whom the licensee is affiliated and,	1021
except as provided in division (C) of section 4735.70 of the	1022
Revised Code, the management level licensees in that brokerage who	1023
have direct supervisory duties over licensees are also agents of	1024
that client;	1025

(2) Any licensee employed by, or affiliated with, the	1026
brokerage who receives confidential information from the agent of	1027
the client is also an agent of that client;	1028

(3) Any other licensee in the brokerage who assisted in	1029
establishing the agency relationship;	1030

(4) Any licensee in the brokerage who specifically is	1031
appointed with the client's consent to represent that client.	1032

(C) Except as otherwise provided in divisions (B)(1) and (2)	1033
to (4) of this section, another licensee who is affiliated with	1034
the same brokerage as the licensee is not an agent of that client	1035
unless that licensee assisted in establishing the agency	1036
relationship or is specifically appointed, with the client's	1037
consent, to represent the client.	1038

(C)(D) A payment or the promise of a payment to a licensee	1039
does not determine whether an agency relationship has been created	1040
between a licensee and a client or between other licensees in the	1041
brokerage with which the licensee is affiliated and that client.	1042

Sec. 4735.56. (A) Each brokerage shall develop a written	1043
brokerage policy on agency to be given to prospective sellers and	1044
purchasers in accordance with divisions (C) and (D) of this	1045
section.	1046

(B) The brokerage policy on agency described in division (A)	1047
of this section shall include all of the following information:	1048

(1) An explanation of the permissible agency relationships	1049
available under section 4735.53 of the Revised Code and the duties	1050
that the agent owes the agent's client;	1051

(2) The brokerage's policy on representation of purchasers or	1052
sellers;	1053

(3) Whether at some time during the agency relationship the	1054
brokerage and its licensee may act as a dual agent, and the	1055
options and consequences for the client if a dual agency situation	1056
arises including the right of the client to terminate the agency	1057
relationship and seek representation from another source;	1058

(4) Whether at some time during the agency relationship,	1059
another licensee affiliated with the same brokerage as the	1060
licensee may become the exclusive agent for the other party in the	1061
transaction and whether each licensee will represent only the	1062
interests of that licensee's client;	1063

(5) The brokerage's policy on cooperation with other	1064
brokerages, including whether the brokerage offers compensation to	1065
other brokerages or will seek compensation from other brokerages;	1066

(6) That a brokerage that has a purchaser as a client	1067
represents the purchaser's interests even though the seller's	1068
agent or the seller may compensate that purchaser's brokerage;	1069

(7) That the signature of the purchaser or the seller	1070
indicates acknowledgement of receipt of the brokerage policy on	1071
agency.	1072

(C) A licensee acting as a seller's agent shall provide the	1073
seller with the brokerage policy on agency described in this	1074
section prior to marketing or showing the seller's real estate and	1075
shall obtain a signature from the seller acknowledging receipt	1076
unless the seller refuses to provide a signature. If the seller	1077
refuses to provide a signature, the licensee shall note this on	1078
the policy.	1079

(D) A licensee working directly with a purchaser in a real	1080
estate transaction, whether as the purchaser's agent, the seller's	1081
agent, or the seller's subagent, shall provide the purchaser with	1082
the brokerage policy on agency described in this section and	1083
obtain a signature from the purchaser acknowledging receipt of the	1084
policy unless the purchaser refuses to provide a signature. If the	1085
purchaser refuses to provide a signature, the licensee shall note	1086
this on the policy. Except as provided in division (E) of this	1087
section, the licensee shall provide the brokerage policy on agency	1088
to a purchaser prior to the earliest of the following actions of	1089
the licensee:	1090

(1) Initiating a prequalification evaluation to determine	1091
whether the purchaser has the financial ability to purchase or	1092
lease a particular real estate property;	1093

(2) Requesting specific financial information from the	1094
purchaser to determine the purchaser's ability to purchase or	1095
finance real estate in a particular price range;	1096

(3) Showing the real estate to the purchaser other than at an	1097
open house;	1098

(4) Discussing, with the purchaser, the making of an offer to	1099
purchase or lease real estate;	1100

(5) Submitting an offer to purchase or lease real estate on	1101
behalf of the purchaser.	1102

(E) If the earliest event described in division (D) of this	1103
section is by telephone or electronic mail, the licensee shall	1104
disclose by that same medium the nature of the agency relationship	1105
that the licensee has with both the seller and the purchaser. The	1106
licensee shall provide the purchaser with the brokerage policy on	1107
agency described in this section at the first meeting with the	1108
purchaser following this disclosure of the agency relationship.	1109

(F) A licensee acting as a seller's agent is not required to	1110
provide a purchaser with the brokerage policy on agency described	1111
in this section except in the case of an event described in	1112
division (D) of this section.	1113

(G) The requirements of this section regarding provision of a	1114
brokerage policy on agency do not apply in any of the following	1115
situations:	1116

(1) The rental or leasing of residential premises as defined	1117
in section 5321.01 of the Revised Code, if the rental or lease	1118
agreement can be performed in eighteen months or less;	1119

(2) The referral of a prospective purchaser or seller to	1120
another licensee;	1121

(3) Transactions involving the sale, lease, or exchange of	1122
foreign real estate as defined in division (E) of section 4735.01	1123
of the Revised Code;	1124

(4) Transactions involving the sale of a cemetery lot or a	1125
cemetery interment right.	1126

Sec. 4735.57.  (A) The superintendent of real estate, with	1128
the approval of the Ohio real estate commission, shall establish	1129
by rule an agency disclosure statement. The agency disclosure	1130
statement shall contain a place for the licensee and the parties	1131
to the transaction to sign and date the statement and shall	1132
contain sections for the disclosure or explanation of all of the	1133
following:	1134

(1) Unless confidential, the names of all the parties in the	1135
transaction;	1136

(2) The address of the real estate being sold or leased;

1137

(3) The name of the licensee or licensees and the brokerage	1138
with which each licensee is affiliated;	1139

(4) The party that each licensee in the named brokerage	1140
represents in the transaction;	1141

(5) If a licensee representing a purchaser of real estate and	1142
a licensee representing the seller of that real estate are	1143
affiliated with the same brokerage, whether the two licensees are	1144
acting as dual agents or are individually representing the	1145
purchaser and seller separately;	1146

(6) If only one licensee is involved in the transaction,	1147
whether that licensee is a dual agent or represents only one party	1148
to the transaction;	1149

(7) If both the purchaser and the seller are represented by	1150
licensees affiliated with the same brokerage, that the brokerage	1151
is a dual agent;	1152

(8) That the signature of the client indicates the client's	1153
informed consent to the agency relationship and that if the client	1154
does not understand the agency disclosure statement, the client	1155
should consult an attorney.	1156

(B) The agency disclosure statement shall specify the duties	1157
of a licensee acting as a dual agent and shall contain sections	1158
disclosing all of the following:	1159

(1) An explanation of the nature of a dual agency	1160
relationship, including a statement that in serving as a dual	1161
agent, licensees in the brokerage represent two clients whose	1162
interests are, or at times could be, different or adverse;	1163

(2) That as a result of the dual agency relationship, the	1164
dual agent may not be able to advocate on behalf of the client to	1165
the same extent the agent may have if the agent represented only	1166
one client;	1167

(3) A description of the duties the brokerage and its	1168
affiliated licensees and employees owe to each client, including	1169
the duty of confidentiality;	1170

(4) That neither the brokerage nor its affiliated licensees	1171
have any material relationship with either client other than	1172
incidental to the transaction, or if the brokerage or its	1173
affiliated licensees have a material relationship, a disclosure of	1174
the nature of the relationship. For purposes of this division,	1175
"material relationship" means any actually known personal,	1176
familial, or business relationship between the brokerage or an	1177
affiliated licensee and a client that could impair the ability of	1178
the brokerage or affiliated licensee to exercise lawful and	1179
independent judgment relative to another client.	1180

(5) That as a dual agent, the brokerage cannot engage in	1181
conduct that is contrary to the interests or instructions of one	1182
party or act in a biased manner on behalf of one party;	1183

(6) A section specifying the source of compensation to the	1184
real estate broker;	1185

(7) That the client does not have to consent to the dual	1186
agency relationship, and the options available to the client for	1187
representation in the transaction if the client does not consent,	1188
including the right of the client to terminate the agency	1189
relationship and seek representation from another source;	1190

(8) That the consent to the dual agency relationship by the	1191
client has been given voluntarily, that the signature indicates	1192
informed consent, and that the duties of a licensee acting as a	1193
dual agent disclosed to the client pursuant to division (B) of	1194
this section have been read and understood.	1195

Sec. 4735.58.  (A) A licensee acting as a seller's agent	1196
shall provide the seller an agency disclosure statement described	1197
in section 4735.57 of the Revised Code prior to marketing or	1198
showing the seller's property.	1199

(B)(1) A licensee working directly with a purchaser in a real	1200
estate transaction, whether as the purchaser's agent, the seller's	1201
agent, or the seller's subagent, shall provide the purchaser with	1202
an agency disclosure statement described in section 4735.57 of the	1203
Revised Code prior to the earliest of the following events:	1204

(a) Initiating a prequalification evaluation to determine	1205
whether the purchaser has the financial ability to purchase or	1206
lease the particular property;	1207

(b) Requesting specific financial information from the	1208
purchaser to determine the purchaser's ability to purchase or	1209
finance real estate in a particular price range;	1210

(c) Showing the property to the purchaser other than at an	1211
open house;	1212

(d) Discussing, with the purchaser, the making of an offer to	1213
purchase real property;	1214

(e) Submitting an offer to purchase or lease real property on	1215
behalf of the purchaser.	1216

(2) If the earliest event described in division (B)(1) of	1217
this section is by telephone, the licensee shall make a verbal	1218
disclosure of the nature of the agency relationship that the	1219
licensee has with both the seller and the purchaser. The licensee	1220
shall obtain the purchaser's signature and the date on an agency	1221
disclosure statement at the first meeting with the purchaser	1222
following verbal disclosure of the agency relationship.	1223

(3) A licensee acting as a seller's agent is not required to	1224
provide a purchaser with an agency disclosure statement except in	1225
the case of an event described in division (B)(1) of this section.	1226

(C) A licensee who is a purchaser's agent or a seller's	1227
subagent working with a purchaser shall present the agency	1228
disclosure statement described in section 4735.57 of the Revised	1229
Code to the purchaser and request the purchaser to sign and date	1230
the statement pursuant to division (B) of this sectionno later	1231
than the preparation of an offer to purchase or lease, or a	1232
written request for a proposal to lease. The licensee shall	1233
deliver the statement signed by the purchaser to the seller's	1234
agent, or to the seller if the seller is not represented by an	1235
agent, prior. Prior to presenting the seller with either a written	1236
offer to purchase or lease, or a written request for a proposal to	1237
lease, the seller's agent, or the purchaser's agent if the seller	1238
is not represented by an agent, shall present the agency	1239
disclosure statement to the seller and request the seller to sign	1240
and date the statement.	1241

(D)(B) A licensee selling property at auction shall, prior to	1242
the auction, verbally disclose to the audience that the licensee	1243
represents the seller in the real estate transaction. The licensee	1244
shall provide the agency disclosure statement described in section	1245
4735.57 of the Revised Code to the successful bidder prior to the	1246
bidder's signing a purchase contract.	1247

(E)(C) Evidence that a licensee has failed to comply with	1248
this section constitutes prima-facie evidence of misconduct in	1249
violation of division (A)(6) of section 4735.18 of the Revised	1250
Code.	1251

(D) The disclosure requirements of this section do not apply	1252
in any of the following situations:	1253

(1) The rental or leasing of residential premises as defined	1254
in section 5321.01 of the Revised Code, if the rental or lease	1255
agreement can be performed in eighteen months or less;	1256

(2) The referral of a prospective purchaser or seller to	1257
another licensee;	1258

(3) Transactions involving the sale, lease, or exchange of	1259
foreign real estate as defined in division (E) of section 4735.01	1260
of the Revised Code;	1261

(4) Transactions involving the sale of a cemetery lot or a	1262
cemetery interment right.	1263

(E) The licensee is obligated to perform all duties imposed	1264
on a real estate agent at common law except to the extent the	1265
duties are inconsistent with the duties prescribed in this chapter	1266
or are otherwise modified by agreement.	1267

Sec. 4735.70.  The following are dual agents under this	1268
chapter:	1269

(A) A licensee who represents both the purchaser and the	1270
seller as clients in the same real estate transaction;	1271

(B) A brokerage that represents both the purchaser and the	1272
seller as clients in the same real estate transaction;	1273

(C) A management level licensee who represents a client in an	1274
in-company transaction. If there is more than one management level	1275
licensee affiliated with the brokerage and either of the following	1276
applies, the management level licensee is not a dual agent:	1277

(1) The management level licensee personally represents	1278
either the seller or the purchaser in a transaction, in which case	1279
the management level licensee will represent only the interests of	1280
that licensee's client.	1281

(2) The management level licensee is the purchaser or seller	1282
in a transaction and will represent only that licensee's interest.	1283

Sec. 4735.71.  (A) Except as provided in division (C) of this	1284
section, noNo licensee or brokerage shall participate in a dual	1285
agency relationship described in section 4735.70 of the Revised	1286
Code unless both the seller and the purchaser in the transaction	1287
have full knowledge of the dual representation and consent in	1288
writing to the dual representation on the dual agency disclosure	1289
statement described in section 4735.734735.57 of the Revised	1290
Code. Before a licensee obtains the consent of any party to a dual	1291
agency relationship, the licensee shall disclose to both the	1292
purchaser and the seller all relevant information necessary to	1293
enable each party to make an informed decision as to whether to	1294
consent to the dual agency relationship. If, after consent is	1295
obtained, there is a material change in the information disclosed	1296
to the purchaser and the seller, the licensee shall disclose such	1297
the change of information to the purchaser and the seller and give	1298
them an opportunity to revoke their consent.	1299

(B) The brokerage shall make the dual agency disclosure to	1300
both the seller and purchaser as soon as practicable after it is	1301
determined that such dual agency may exist. The parties to the	1302
real estate transaction shall sign and date the dual agency	1303
disclosure statement in a timely manner after it is determined	1304
that a dual agency relationship exists. The form must be signed	1305
and dated prior to the signing of any offer to purchase or lease	1306
the real estate that is the subject of the transaction.	1307

(C) A brokerage that is a dual agent is not required to	1308
obtain the consent of the seller and the purchaser on the dual	1309
agency disclosure statement described in section 4735.73 of the	1310
Revised Code if the seller and purchaser are each represented by a	1311
different, nonmanagement level licensee who is affiliated with the	1312
same brokerage and all of the following conditions are met:	1313

(1) The licensees made disclosures as required under sections	1314
4735.56 and 4735.58 of the Revised Code;	1315

(2) The potential for the formation of the dual agency was	1316
disclosed to all parties in the agency disclosure statement	1317
pursuant to section 4735.57 of the Revised Code;	1318

(3) Each party consents by initialing, in a timely manner	1319
after it is determined that a dual agency relationship exists in	1320
the transaction, the section in the agency disclosure statement	1321
that discloses the potential for a dual agency relationship.	1322

(D) No brokerage shall participate in a dual agency	1323
relationship described in division (C) of section 4735.70 of the	1324
Revised Code, unless each of the following conditions is met:	1325

(1) The brokerage has established a procedure under section	1326
4735.54 of the Revised Code under which licensees, including	1327
management level licensees, who represent one client will not have	1328
access to and will not obtain confidential information concerning	1329
another client of the brokerage involved in the dual agency	1330
transaction.	1331

(2) TheEach licensee who is an agent for each client in the	1332
dual agency relationship fulfills the licensee's duties	1333
exclusively to thatthe licensee's client.	1334

Sec. 4735.72.  (A) The brokerage and management level	1335
licensees in a brokerage in which there is a dual agency	1336
relationship described in divisions (A) and (B) of section 4735.70	1337
of the Revised Code shall do each of the following:	1338

(1) Objectively supervise the affiliated licensees in the	1339
fulfillment of their duties and obligations to their respective	1340
clients;	1341

(2) Refrain from advocating or negotiating on behalf of	1342
either the seller or the purchaser;	1343

(3) Refrain from disclosing to any other employee of the	1344
brokerage or any party or client, any confidential information of	1345
a client of which the brokerage or management level licensee	1346
becomes aware and from utilizing or allowing to be utilized for	1347
the benefit of another client, any confidential information	1348
obtained from a client.	1349

(B) When two nonmanagement level licensees affiliated with	1350
the same brokerage represent separate clients in the same	1351
transaction, each affiliated licensee shall do both of the	1352
following:	1353

(1) Serve as the agent of only the party in the transaction	1354
the licensee agreed to represent;	1355

(2) Fulfill the duties owed to the respective client as set	1356
forth in this chapter and as agreed in the agency agreement.	1357

(C)(1) In all cases, a management level licensee shall keep	1358
information of the client or brokerage confidential.	1359

(2) Nothing in this section prohibits the brokerage or	1360
management level licensees in the brokerage from providing	1361
factual, nonconfidential information that presents or suggests	1362
objective options or solutions, or assisting the parties in an	1363
unbiased manner to negotiate or fulfill the terms of the purchase	1364
contract or lease, provided that confidential information of a	1365
client is not utilized in any manner in formulating such	1366
suggestions or providing suchthis assistance.	1367

(D) No cause of action shall arise on behalf of any person	1368
against a licensee in a dual agency relationship for making	1369
disclosures to the parties that are permitted or required by this	1370
chapter, or that have been made on the dual agency disclosure	1371
statement. Making permitted disclosures does not terminate any	1372
agency relationship between a licensee and a client.	1373

(E)(1) If a brokerage determines that confidential	1374
information of one client in a dual agency relationship has become	1375
known to any licensee employed by or affiliated with the brokerage	1376
who is representing the other client in the dual agency	1377
relationship, as a result of the failure of the brokerage, its	1378
licensees, or its employees to maintain such confidentiality, the	1379
brokerage shall do both of the following:	1380

(a) Notify both clients of suchthe fact immediately in	1381
writing;	1382

(b) Offer to resign representation of both clients.

1383

(2) If either client elects to accept suchthe resignation,	1384
the brokerage shall not be entitled to any compensation from that	1385
client. If either client does not accept suchthe resignation, the	1386
brokerage may continue to represent that client.	1387

(3) A licensee who obtains confidential information	1388
concerning another client of the brokerage in a dual agency	1389
relationship shall not, under any circumstances, disclose that	1390
information to or use that information for the benefit of the	1391
licensee's client.	1392

(F) A client of a brokerage who is involved in a dual agency	1393
relationship may bring an individual action against a brokerage	1394
and any licensee who has failed to comply with the procedure	1395
described in division (D)(1)(B)(1) of section 4735.71 of the	1396
Revised Code to recover actual damages and to rescind an agency	1397
agreement with the brokerage.	1398

Section 2. That existing sections 4735.03, 4735.04, 4735.05,	1399
4735.051, 4735.06, 4735.09, 4735.13, 4735.14, 4735.141, 4735.15,	1400
4735.53, 4735.58, 4735.70, 4735.71, and 4735.72 and sections	1401
Sec. 4735.56. ,        Sec. 4735.57. , and        Sec. 4735.73.  of the Revised Code are hereby	1402
repealed.	1403