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As Reported by House Commerce and Labor Committee
123rd General Assembly
Regular Session
1999-2000 | Sub. H. B. No. 524 |
REPRESENTATIVES CORBIN-D. MILLER-METELSKY-CATES-HARRIS
A BILL
To amend sections 4735.01, 4735.02, 4735.03, 4735.05, 4735.051,
4735.06, 4735.07, 4735.08, 4735.09, 4735.10, 4735.11,
4735.12, 4735.13, 4735.14, 4735.141, 4735.15, 4735.16, 4735.18, and 4735.25 of
the Revised Code to
include limited liability companies and limited liability
partnerships in the definition of real estate broker and to
establish changes in the real estate licensing law.
BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF OHIO:
Section 1. That sections 4735.01, 4735.02, 4735.03, 4735.05, 4735.051,
4735.06, 4735.07, 4735.08, 4735.09, 4735.10, 4735.11,
4735.12, 4735.13, 4735.14, 4735.141, 4735.15, 4735.16, 4735.18, and 4735.25 of
the Revised Code be
amended to read as follows:
Sec. 4735.01. As used in this chapter:
(A) "Real estate broker" includes any person, partnership,
association, LIMITED LIABILITY COMPANY, LIMITED LIABILITY
PARTNERSHIP, or corporation, foreign or domestic, who for
another, whether pursuant to a power of attorney or otherwise,
and who for a fee, commission, or other valuable consideration,
or with the intention, or in the expectation, or upon the promise
of receiving or collecting a fee, commission, or other valuable
consideration DOES ANY OF THE FOLLOWING:
(1) Sells, exchanges, purchases, rents, or leases, or
negotiates the sale, exchange, purchase, rental, or leasing of
any real estate;
(2) Offers, attempts, or agrees to negotiate the sale,
exchange, purchase, rental, or leasing of any real estate;
(3) Lists, or offers, attempts, or agrees to list, or
auctions, or offers, attempts, or agrees to auction, any real
estate;
(4) Buys or offers to buy, sells or offers to sell, or
otherwise deals in options on real estate;
(5) Operates, manages, or rents, or offers or attempts to
operate, manage, or rent, other than as custodian, caretaker, or
janitor, any building or portions of buildings to the public as
tenants;
(6) Advertises or holds self out as engaged in the
business of selling, exchanging, purchasing, renting, or leasing
real estate;
(7) Directs or assists in the procuring of prospects or
the negotiation of any transaction, other than mortgage
financing, which does or is calculated to result in the sale,
exchange, leasing, or renting of any real estate;
(8) Is employed by or on behalf of the owner of lots, or
other parcels of real estate, at a stated salary, or upon a
commission, or upon a salary and commission basis or otherwise,
to sell such real estate, or any parts of it, in lots or other
parcels, and who sells, exchanges, or offers, attempts, or agrees
to negotiate the sale or exchange of any such lot or parcel of
real estate;
(9) Is engaged in the business of charging an advance fee
or contracting for collection of a fee in connection with any
contract whereby the broker undertakes primarily to promote
the sale,
exchange, purchase, rental, or leasing of real estate through its
listing in a publication issued primarily for such purpose, or
for referral of information concerning such real estate to
brokers, or both, except that this division does not apply to a
publisher of listings or compilations of sales of real estate by
their owners;
(10)(9) Collects rental information for purposes of referring
prospective tenants to rental units or locations of such units
and charges the prospective tenants a fee.
(B) "Real estate" includes leaseholds as well as any and
every interest or estate in land situated in this state, whether
corporeal or incorporeal, whether freehold or nonfreehold, and
the improvements on the land, but does not include cemetery
interment rights.
(C) "Real estate salesperson" means any person associated
with a licensed real estate broker to do or to deal in any acts
or transactions set out or comprehended by the definition of a
real estate broker, for compensation or otherwise.
(D) "Institution of higher education" means either of the following:
(1) A nonprofit institution as defined in section 1713.01
of the Revised Code that actually awards, rather than intends to
award, degrees for fulfilling requirements of academic work
beyond high school;
(2) An institution operated for profit that otherwise
qualifies under the definition of an institution in section
1713.01 of the Revised Code and that actually awards, rather than
intends to award, degrees for fulfilling requirements of academic
work beyond high school.
(E) "Foreign real estate" means real estate not situated
in this state and any interest in real estate not situated in
this state.
(F) "Foreign real estate dealer" includes any person,
partnership, association, LIMITED LIABILITY COMPANY, LIMITED LIABILITY
PARTNERSHIP, or corporation, foreign or domestic,
who for another, whether pursuant to a power of attorney or
otherwise, and who for a fee, commission, or other valuable
consideration, or with the intention, or in the expectation, or
upon the promise of receiving or collecting a fee, commission, or
other valuable consideration, does or deals in any act or
transaction specified or comprehended in division (A) of this
section with respect to foreign real estate.
(G) "Foreign real estate salesperson" means any
person
associated with a licensed foreign real estate dealer to do or
deal in any act or transaction specified or comprehended in
division (A) of this section with respect to foreign real estate,
for compensation or otherwise.
(H) Any person, partnership, association, LIMITED LIABILITY COMPANY,
LIMITED LIABILITY PARTNERSHIP, or corporation,
who, for another, in consideration of compensation, by fee,
commission, salary, or otherwise, or with the intention, in the
expectation, or upon the promise of receiving or collecting a
fee, does, or offers, attempts, or agrees to engage in, any
single act or transaction contained in the definition of a real
estate broker or foreign real estate dealer, whether an act is an
incidental part of a transaction, or the entire transaction,
shall be constituted a real estate broker or real estate
salesperson or a foreign real estate dealer or foreign real estate
salesperson under this chapter.
(I) The terms "real estate broker," "real estate
salesperson," "foreign real estate dealer," and
"foreign real estate salesperson" do not include a
person, partnership, association, LIMITED LIABILITY COMPANY, LIMITED
LIABILITY PARTNERSHIP, or
corporation, or the regular employees thereof, who
perform any
of the acts or transactions specified or comprehended in division
(A) of this section, whether or not for, or with the intention,
in expectation, or upon the promise of receiving or collecting a
fee, commission, or other valuable consideration:
(1) With reference to real estate situated in this state
or any interest in it owned by such person, partnership,
association, LIMITED LIABILITY COMPANY, LIMITED LIABILITY
PARTNERSHIP, or corporation, or acquired on its own account in
the regular course of, or as an incident to the management of the
property and the investment in it;
(2) As receiver or trustee in bankruptcy, as guardian,
executor, administrator, trustee, assignee, commissioner, or any
person doing the things mentioned in this section, under
authority or appointment of, or incident to a proceeding in, any
court, or as a public officer, or as executor, trustee, or other
bona fide fiduciary under any trust agreement, deed of trust,
will, or other instrument creating a like bona fide fiduciary
obligation;
(3) As a public officer while performing the officer's
official duties;
(4) As an attorney at law in the performance of the
attorney's duties;
(5) AS A PERSON WHO ENGAGES IN THE BROKERING OF THE SALE OF
BUSINESS ASSETS, NOT INCLUDING THE NEGOTIATION OF THE SALE, LEASE,
EXCHANGE, OR ASSIGNMENT OF ANY INTEREST IN REAL ESTATE;
(6) AS A PERSON WHO ENAGES IN THE SALE OF MANUFACTURED HOMES, AS
DEFINED IN DIVISION (C)(4) OF SECTION 3781.06 OF THE REVISED
CODE.
(J) "Physically handicapped licensee" means a person
licensed pursuant to this chapter who is under a severe physical
disability which is of such a nature as to prevent the person
from being able to attend any classroom instruction lasting at
least three hours in duration.
(K) "Division of real
estate" may be used interchangeably with, and for all purposes
has the same meaning as, "division of real estate and
professional licensing."
(L) "Superintendent"
or "superintendent of real estate" means the superintendent of
the division of real estate and professional licensing of this
state. Whenever the division or superintendent of real estate
is referred to or designated in any statute, rule, contract, or
other document, the reference or designation shall be deemed to
refer to the division or superintendent of real estate and
professional licensing, as the case may be.
(M) "INACTIVE LICENSE" MEANS THE LICENSE STATUS IN WHICH A
SALESPERSON'S LICENSE IS IN THE POSSESSION OF THE DIVISION, ANNUALLY RENEWED
AS REQUIRED UNDER THIS CHAPTER, AND NOT ASSOCIATED
WITH A REAL ESTATE BROKER.
(N) "BROKER'S LICENSE ON DEPOSIT" MEANS THE LICENSE STATUS IN
WHICH A BROKER'S LICENSE IS IN THE POSSESSION OF THE DIVISION OF
REAL ESTATE AND PROFESSIONAL LICENSING AND ANNUALLY RENEWED AS
REQUIRED UNDER THIS CHAPTER.
(O) "SUSPENDED LICENSE" MEANS THE LICENSE STATUS THAT PROHIBITS A
LICENSEE FROM PROVIDING SERVICES THAT REQUIRE A LICENSE UNDER THIS
CHAPTER FOR A SPECIFIED INTERVAL OF TIME.
(P) "REACTIVATE" MEANS THE PROCESS PRESCRIBED BY THE
SUPERINTENDENT OF REAL ESTATE AND PROFESSIONAL LICENSING TO REMOVE A LICENSE
FROM AN INACTIVE, SUSPENDED, OR BROKER'S LICENSE ON
DEPOSIT STATUS TO ALLOW A LICENSEE TO PROVIDE SERVICES THAT
REQUIRE A LICENSE UNDER THIS CHAPTER.
(Q) "REVOKED" MEANS THE LICENSE STATUS IN WHICH THE LICENSE IS
VOID AND NOT ELIGIBLE FOR REACTIVATION.
Sec. 4735.02. No person, partnership, association, LIMITED LIABILITY
COMPANY, LIMITED LIABILITY PARTNERSHIP, or
corporation shall act as a real estate broker or real estate
salesperson, or advertise or assume to act as such, without first
being licensed as provided in this chapter.
NO PERSON, PARTNERSHIP, ASSOCIATION, LIMITED LIABILITY COMPANY,
LIMITED LIABILITY PARTNERSHIP, OR CORPORATION SHALL PROVIDE SERVICES
THAT REQUIRE A LICENSE UNDER THIS CHAPTER IF THE LICENSEE'S LICENSE IS
INACTIVE, SUSPENDED, OR A BROKER'S LICENSE ON DEPOSIT, OR IF THE
LICENSE HAS BEEN REVOKED.
Nothing contained in this chapter
shall be construed as authorizing a real estate
broker or salesperson to perform any service
constituting the practice of law.
No partnership, association, LIMITED LIABILITY COMPANY, LIMITED LIABILITY
PARTNERSHIP, or corporation holding a real
estate license shall employ as an officer, director, manager, or
principal employee any person previously holding a license as a
real estate broker, real estate salesperson,
foreign real estate dealer, or foreign real estate
salesperson, whose license has been terminated by
failure to file a certificate of continuation, by revocation, or by
suspension, PLACED IN INACTIVE STATUS, SUSPENDED, OR REVOKED and
who has not thereafter been
relicensed REACTIVATED THE LICENSE OR RECEIVED A NEW LICENSE.
Sec. 4735.03. There is hereby created the Ohio real estate
commission, consisting of five members who shall be appointed by
the governor, with the advice and consent of the senate. Four
members shall have been engaged in the real estate business as
licensed real estate brokers in the state for a period of ten
years immediately preceding the appointment. One member shall
represent the public. Terms of office shall be for five years,
commencing on the first day of July and ending on the thirtieth
day of June. Each member shall hold office from the date of his
appointment until the end of the term for which appointed. No
more than three members shall be members of any one political
party and no member of the commission concurrently may be a
member of the commission and the real estate appraiser board
created pursuant to section 4763.02 of the Revised Code. Each
member, before entering upon the duties of his office, shall
subscribe to and file with the secretary of state the
constitutional oath of office. All vacancies which occur shall
be filled in the manner prescribed for the regular appointments
to the commission. Any member appointed to fill a vacancy
occurring prior to the expiration of the term for which his THE
MEMBER'S predecessor was appointed shall hold office for the remainder of
such term. Any member shall continue in office subsequent to the
expiration date of his THE MEMBER'S term until his THE
MEMBER'S successor takes office, or
until a period of sixty days has elapsed, whichever occurs first. Annually,
upon the qualification of the member appointed in such
year, the commission shall organize by selecting from its members
a president AND VICE PRESIDENT, and shall do all things necessary and
proper to
carry out and enforce this chapter. A majority of the members of
the commission shall constitute a quorum, but a lesser number may
adjourn from time to time. Each member of the commission shall
receive an amount fixed pursuant to section 124.14 of the Revised
Code for each day employed in the discharge of his official
duties, and his THE MEMBER'S actual and necessary expenses
incurred in the discharge of such THOSE duties.
The commission or the superintendent of real estate may
investigate complaints concerning the violation of section
4735.02 or 4735.25 of the Revised Code and may subpoena witnesses
in connection with such investigations as provided in section
4735.04 of the Revised Code. The commission or the
superintendent may make application to the appropriate court for
an order enjoining the violation of section 4735.02 or 4735.25 of
the Revised Code, and upon a showing by the commission or the
superintendent that any person, firm, partnership, association, LIMITED
LIABILITY COMPANY, LIMITED LIABILITY PARTNERSHIP,
or corporation has violated or is about to violate section
4735.02 or 4735.25 of the Revised Code, an injunction,
restraining order, or such other order as may be appropriate
shall be granted by such court.
The commission shall:
(A) Adopt canons of ethics for the real estate industry;
(B) Upon appeal by any party affected, or may upon its own
motion, review any order OR APPLICATION DETERMINATION of the
superintendent, and may reverse,
vacate, or modify any order of the superintendent;
(C) Administer the real estate education and research fund
and hear appeals from orders of the superintendent regarding
claims against that fund or against the real estate recovery
fund;
(D) Direct the superintendent on the content, scheduling,
instruction, and offerings of real estate courses for salesman
SALESPERSON and broker educational requirements;
(E) Disseminate to licensees and the public, information
relative to commission activities and decisions;
(F) Notify licensees of changes in state and federal civil
rights laws pertaining to discrimination in the purchase or sale
of real estate and relevant case law, and inform licensees that
they are subject to disciplinary action if they do not comply
with the changes;
(G) Publish and furnish to public libraries and to brokers
booklets on housing and remedies available to dissatisfied
clients under this chapter and Chapter 4112. of the Revised Code.
Sec. 4735.05. (A) The Ohio real estate commission is a
part of the department of commerce for administrative purposes.
The director of commerce is ex officio the executive officer of
the commission, or the director may designate any employee of the
department as superintendent of real estate and professional licensing
to act as executive officer of the commission.
The commission and the real estate appraiser board created
pursuant to section 4763.02 of the Revised Code shall each submit
to the director a list of three persons whom the commission and
the board consider qualified to be superintendent within sixty
days after the office of superintendent becomes vacant. The
director shall appoint a superintendent from the lists submitted
by the commission and the board, and the superintendent shall
serve at the pleasure of the director.
(B) The superintendent, except as otherwise provided,
shall do all of the following in regard to this chapter:
(1) Administer this chapter;
(2) Issue all orders necessary to implement this chapter;
(3) Investigate complaints concerning the violation of
this chapter or the conduct of any licensee;
(4) Establish and maintain an investigation and audit
section to investigate complaints and conduct inspections,
audits, and other inquiries as in the judgment of the
superintendent are appropriate to enforce this chapter. The
investigators or auditors have the right to review and audit the
business records of licensees AND CONTINUING EDUCATION COURSE PROVIDERS
during normal business hours.
(5) Appoint a hearing examiner for any proceeding
involving license suspension or revocation DISCIPLINARY ACTION
under section 2301.373 of the
Revised Code or proceedings brought under section 4735.18 of the
Revised Code;
(6) Administer the real estate recovery fund.
(C) The superintendent may do all of the following:
(1) In connection with investigations and audits under
division (B) of this section, subpoena witnesses as provided in
section 4735.04 of the Revised Code;
(2) Apply to the appropriate court to enjoin any violation
of this chapter. Upon a showing by the superintendent that any
person has violated or is about to violate any provision of this
chapter, the court shall grant an injunction, restraining order,
or other appropriate order.
(3) Upon the death of a licensed broker or the revocation
or suspension of the broker's license, if there is no other
licensed broker within the business entity of the broker, appoint upon
application by any interested party, or, in the case of a
deceased broker, subject to the approval by the appropriate
probate court, recommend the appointment of, an ancillary trustee
who is qualified as determined by the superintendent to conclude
the business transactions of the deceased, revoked, or suspended
broker.
(D) All information that is obtained by investigators and
auditors performing investigations or conducting inspections,
audits, and other inquiries pursuant to division (B)(4) of this
section, from licensees, complainants, or other persons, and all
reports, documents, and other work products that arise from that
information and that are prepared by the investigators, auditors,
or other personnel of the department, shall be held in confidence
by the superintendent, the investigators and auditors, and other
personnel of the department.
Sec. 4735.051. (A) Within five business days after a
person files a signed written complaint against a licensed real
estate broker or licensed real estate salesperson with
the division of real estate, the superintendent of real estate
shall acknowledge receipt of the complaint and send a notice to
the licensee describing the acts complained of. The
acknowledgment to the complainant and the notice to the licensee
shall state that an informal meeting will be held with the
complainant, the licensee, and an investigator from the
investigation and audit section of the division if the
complainant and licensee both file a request for such a meeting
within ten business days thereafter on a form provided by the
superintendent.
(B) If the complainant and licensee both file with the
division requests for an informal meeting, the superintendent
shall notify the complainant and licensee of the date of the
meeting, which shall be within twenty business days thereafter,
except that any party may request an extension of up to fifteen
business days for good cause shown. If the parties COMPLAINANT AND
LICENSEE reach an
accommodation at an informal meeting, the investigator shall so
report to the superintendent and, the parties
COMPLAINANT, AND LICENSEE and the complaint
file shall be closed, unless, based upon the investigator's
report, the superintendent finds evidence that the licensee has
violated section 4735.18 of the Revised Code.
(C) If the parties COMPLAINANT AND LICENSEE fail to agree to an
informal meeting or
fail to reach an accommodation, or if the
superintendent finds evidence of a violation of section 4735.18
of the Revised Code, the superintendent shall, within five business
days of such
determination, so notify the parties COMPLAINANT AND LICENSEE
and shall investigate the
conduct of the licensee against whom the complaint is filed.
(D) Within sixty business days after receipt of the
complaint, or, if an informal meeting is held, within sixty days
of such meeting, the investigator shall file a written report of
the results of the investigator's investigation with the
superintendent. Within
ten FOURTEEN business days thereafter, the superintendent shall
review the
report and determine whether there exists reasonable and
substantial evidence of a violation of section 4735.18 of the
Revised Code by the licensee. If the superintendent finds such
evidence exists, within five SEVEN business days of the
determination,
the superintendent shall notify the parties COMPLAINANT AND
LICENSEE of the date
of a
hearing to be held by a hearing examiner pursuant to Chapter 119.
of the Revised Code within fifteen days but not prior to seven
days thereafter, except that any party EITHER THE SUPERINTENDENT OR
THE LICENSEE may request an extension
of up to thirty business days for good cause shown. If the
superintendent finds that such evidence does not exist, within
five business days thereafter, the superintendent shall so notify
the parties COMPLAINANT AND LICENSEE of the superintendent's
determination and the basis for
the determination. Within fifteen business days after the
superintendent notifies the parties COMPLAINANT AND LICENSEE
that such evidence does not
exist, the complainant may file with the division a request that
the commissioners review the determination. If the complainant
files such request, the commissioners shall review the
determination at the next regularly scheduled meeting held at
least fifteen business days after the request is filed. The
commission shall hear the testimony of either party THE COMPLAINANT
OR THE LICENSEE at such THE
meeting upon the request of the party COMPLAINANT OR LICENSEE.
If the commissioners
affirm the determination of the superintendent, the
superintendent shall so notify the complainant and the licensee
within five business days thereafter. If the commissioners
reverse the determination of the superintendent, a hearing shall
be held and the parties COMPLAINANT AND LICENSEE notified as
provided in this division.
(E) Within twenty-five business days after the conclusion
of formal hearings, the hearing examiner shall file a report of
findings of fact and conclusions of law with the superintendent,
the commission, and the parties COMPLAINANT AND LICENSEE.
(F) The commissioners shall review the hearing examiner's
report and the parties' evidence at the next regularly scheduled
commission meeting held at least fifteen business days after
receipt of the hearing examiner's report. The commission shall
hear the testimony of any party THE COMPLAINANT OR THE LICENSEE
upon request. If the complainant
is the Ohio civil rights commission, the complaint shall be
reviewed by the commissioners directly upon request.
(G) The commission shall decide whether to impose disciplinary sanctions
upon a licensee for a violation of section 4735.18 of the Revised Code. The
commission shall decide within sixty days of the
filing of the hearing examiner's report or within sixty days of
the filing of an Ohio civil rights commission complaint. The
commission shall maintain a transcript of the proceedings and
issue a written opinion to all the parties COMPLAINANT AND
LICENSEE, citing its findings
and grounds for any action taken. The commission shall notify
the complainant and any other party PERSON who may have suffered
financial loss because of the licensee's violations, that the
complainant or other party PERSON may
sue for recovery under section 4735.12 of the Revised Code.
(H) An investigation under this section is subject to
section 4735.32 of the Revised Code.
(I) The commission may impose the following sanctions upon
a licensee for a violation of section 4735.18 of the Revised
Code:
(1) Revoke a license issued under Chapter 4735. of the
Revised Code;
(2) Suspend a license for a term set by the commission;
(3) Impose a fine, not exceeding two thousand five hundred dollars per
violation;
(4) Issue a public reprimand;
(5) Require the completion of additional continuing education
course work. Any continuing education course work imposed pursuant
to this section shall not count toward the continuing education
requirements set forth in section 4735.14 of the Revised Code.
All fines imposed pursuant to division (I)(3) of this section
shall be credited to the real estate operating RECOVERY fund,
which is created in the
state treasury under section 4735.211 4735.12 of the Revised
Code.
Sec. 4735.06. (A) Application for a license as a real
estate broker shall be made in writing to the superintendent of
real estate on forms furnished by the superintendent and
filed
with the superintendent and shall be signed by the
applicant or
its members or officers. Each application shall state the name
of the person applying and the location of the place of business
for which the license is desired, and give such other information
as the superintendent requires in the form of application
prescribed by the superintendent.
The application shall be accompanied by a recent photograph
of the applicant and the names of three resident freeholders of
the county in which the applicant resides or has the
applicant's place of business. If the applicant has resided, or has
engaged in the
real estate business, for less than one year in the county from
which the application is made, the application shall be
accompanied by a recent photograph of the applicant and the names
of three resident freeholders of each of the counties where the
applicant formerly resided or engaged in the real estate business during
the period of one year prior to the filing of the application.
No one of the freeholders shall be related to the applicant, and
one of them shall be the applicant's most recent broker. If the
applicant's most recent broker is a relative of the applicant or
is not a freeholder, the name of a third freeholder shall be
furnished. The freeholders shall furnish information to the
superintendent, on forms prescribed by the superintendent,
concerning the character of the applicant. If the applicant
maintains more than one place of business within the state, the
applicant shall apply for and procure a duplicate license for each branch
office so maintained by the applicant. Each branch office
shall be in the
charge of a licensed broker or salesperson.
If the applicant is a partnership, LIMITED LIABILITY COMPANY,
LIMITED
LIABILITY PARTNERSHIP, or association, the names
of all the members also shall be stated, and, if the applicant is
a corporation, the names of its president and of each of its
officers also shall be stated. The superintendent has the right
to reject the application of any partnership, association,
LIMITED LIABILITY COMPANY, LIMITED LIABILITY PARTNERSHIP,
or
corporation if the name proposed to be used by such partnership,
association,
LIMITED LIABILITY COMPANY, LIMITED LIABILITY PARTNERSHIP,
or corporation is likely to mislead the public or if
the name is not such as to distinguish it from the name of any
existing partnership, association,
LIMITED LIABILITY COMPANY, LIMITED LIABILITY PARTNERSHIP,
or corporation licensed under
this chapter, unless there is filed with the application
the
written consent of such existing partnership, association,
LIMITED LIABILITY COMPANY, LIMITED LIABILITY PARTNERSHIP,
or
corporation, executed by a duly authorized representative of it,
permitting the use of the name of such existing partnership,
association,
LIMITED LIABILITY COMPANY, LIMITED LIABILITY PARTNERSHIP,
or corporation.
(B) A fee of sixty-nine dollars shall
accompany the
application for a real estate broker's license, which fee shall
include the license if it is issued. The application fee shall
be retained by the superintendent if the applicant is admitted to
the examination for the license or the examination requirement is
waived, but, if an applicant is not so admitted and a waiver is
not involved, one-half of the fee shall be retained by the
superintendent to cover the expenses of processing the
application and the other one-half shall be returned to the
applicant. A fee of sixty-nine dollars shall
be charged by the
superintendent for each successive application made by an
applicant.
(C) Four dollars of each fee for a real estate
broker's
license shall be credited to the real estate education and
research fund, which is hereby created in the state treasury.
The Ohio real estate commission may use the fund in discharging
the duties prescribed in divisions (E), (F), and (G) of section
4735.03 of the Revised Code and shall use it in the advancement
of education and research in real estate at any institution of
higher education in the state, or in contracting with any such
institution for a particular research or educational project in
the field of real estate, or in advancing loans, not exceeding
eight hundred dollars, to applicants for salesperson
licenses, to defray the costs of satisfying the educational requirements of
division (F) of section 4735.09 of the Revised Code. Such loans
shall be made according to rules established by the commission
under the procedures of Chapter 119. of the Revised Code, and
they shall be repaid to the fund within three years of the time
they are made. No more than ten thousand dollars shall be lent
from the fund in any one year.
The governor may appoint a representative from the
executive branch to be a member ex officio of the commission for
the purpose of advising on research requests or educational
projects. The commission shall report to the general assembly on
the third Tuesday after the third Monday in January of each year
setting forth the total amount contained in the fund and the
amount of each research grant that it has authorized and the
amount of each research grant requested. A copy of all research
reports shall be submitted to the state library of Ohio and the
library of the legislative service commission.
(D) If the superintendent, with the consent of the
commission, enters into an agreement with a national testing
service to administer the real estate broker's examination,
pursuant to division (A) of section 4735.07 of the Revised Code,
the superintendent may require an applicant to pay the testing
service's
examination fee directly to the testing service. If the
superintendent requires the payment of the examination fee
directly to the testing service, each applicant shall submit to the
superintendent a processing fee in an amount determined by the Ohio
real estate commission pursuant to division (A)(1)(2) of
section 4735.10
of the Revised Code.
Sec. 4735.07. (A) The superintendent of real estate, with
the consent of the Ohio real estate commission, may enter into
agreements with recognized national testing services to
administer the real estate broker's examination under the
superintendent's supervision and control, consistent with the requirements
of this chapter as to the contents of such examination.
(B) No applicant for a real estate broker's license
shall take the broker's examination who has
not established to the satisfaction of the superintendent that
the person the applicant:
(1) Is honest, truthful, and of good reputation;
(2)(a) Has not been convicted of a felony or crime of
moral turpitude, or if the person the applicant has been so convicted,
the superintendent has disregarded the conviction because the
applicant has proven to the superintendent, by a preponderance of
the evidence, that the applicant's activities and employment
record since the
conviction show that the applicant is honest, truthful, and
of good reputation, and there is no basis in fact for believing that the
applicant again will violate the laws involved;
(b) Has not been finally adjudged by a court to have
violated any municipal, state, or federal civil rights laws
relevant to the protection of purchasers or sellers of real
estate or, if the person the applicant has been so adjudged, at least
two years have
passed since the court decision and the superintendent has
disregarded the adjudication because the applicant has proven, by
a preponderance of the evidence, that the applicant's
activities and employment record since the adjudication show that
the applicant is honest, truthful, and of good reputation, and there is
no basis in fact for believing that the applicant will again
violate the laws involved.
(3) Has not, during any period in which the person the applicant was
licensed under this chapter, violated any provision of, or any rule adopted
pursuant to, this chapter, or, if the person the applicant has violated
any such provision or rule, has established to the satisfaction of the
superintendent that the person the applicant will not again violate
such provision or rule;
(4) Is at least eighteen years of age;
(5) Has been a licensed real estate broker or
salesperson for at least two years; during at least two of the five
years preceding the person's application, has worked as a licensed real estate
broker or salesperson for an average of at least thirty
hours per week; and has completed one of the following:
(a) At least twenty real estate transactions, in which
property was sold for another by the applicant while acting in
the capacity of a real estate broker or
salesperson;
(b) Such equivalent experience as is defined by rules
adopted by the commission.
(6)(a) If licensed as a real estate salesperson prior
to January AUGUST 1, 1990 2001,
successfully has completed at an
institution of higher
education all of the following:
(i) Thirty hours of classroom instruction in real estate
practice;
(ii) Thirty hours of classroom instruction that includes
the subjects of Ohio real estate law, municipal, state, and
federal civil rights law, new case law on housing discrimination,
desegregation issues, and methods of eliminating the effects of
prior discrimination. If feasible, the classroom instruction in
Ohio real estate law shall be taught by a member of the faculty
of an accredited law school. If feasible, the classroom
instruction in municipal, state, and federal civil rights law,
new case law on housing discrimination, desegregation issues, and
methods of eliminating the effects of prior discrimination shall
be taught by a staff member of the Ohio civil rights commission
who is knowledgeable with respect to those subjects. The
requirements of this division do not apply to an applicant who is
admitted to practice before the supreme court.
(iii) Thirty hours of classroom instruction in real estate
appraisal;
(iv) Thirty hours of classroom instruction in real estate
finance;
(v) Three quarter hours, or its equivalent in semester
hours, in financial management;
(vi) Three quarter hours, or its equivalent in semester
hours, in human resource or personnel management;
(vii) Three quarter hours, or its equivalent in semester
hours, in applied business economics;
(viii) Three quarter hours, or its equivalent in semester
hours, in business law.
(b) IF LICENSED AS A REAL ESTATE SALESPERSON ON OR AFTER AUGUST
1, 2001, SUCCESSFULLY HAS COMPLETED AT AN INSTITUTION OF HIGHER EDUCATION
ALL OF THE FOLLOWING:
(i) FORTY HOURS OF CLASSROOM INSTRUCTION IN REAL ESTATE
PRACTICE;
(ii) FORTY HOURS OF CLASSROOM INSTRUCTION THAT INCLUDES THE
SUBJECTS OF OHIO REAL ESTATE LAW, MUNICIPAL, STATE, AND FEDERAL
CIVIL RIGHTS LAW, NEW CASE LAW ON HOUSING DISCRIMINATION, DESEGREGATION
ISSUES, AND METHODS OF
ELIMINATING THE EFFECTS OF PRIOR DISCRIMINATION. IF FEASIBLE, THE CLASSROOM
INSTRUCTION IN OHIO
REAL ESTATE LAW SHALL BE TAUGHT BY A MEMBER OF THE FACULTY OF AN
ACCREDITED LAW SCHOOL. IF FEASIBLE, THE CLASSROOM INSTRUCTION IN
MUNICIPAL, STATE, AND FEDERAL CIVIL RIGHTS LAW, NEW CASE LAW ON
HOUSING DISCRIMINATION, DESEGREGATION ISSUES, AND METHODS OF
ELIMINATING THE EFFECTS OF PRIOR DISCRIMINATION SHALL BE TAUGHT BY
A STAFF MEMBER OF THE OHIO CIVIL RIGHTS COMMISSION WHO IS
KNOWLEDGEABLE WITH RESPECT TO THOSE SUBJECTS. THE REQUIREMENTS OF THIS
DIVISION DO NOT APPLY TO AN
APPLICANT WHO IS ADMITTED TO PRACTICE BEFORE THE SUPREME COURT.
(iii) TWENTY HOURS OF CLASSROOM INSTRUCTION IN REAL ESTATE
APPRAISAL;
(iv) TWENTY HOURS OF CLASSROOM INSTRUCTION IN REAL ESTATE
FINANCE;
(v) THE TRAINING IN THE AMOUNT OF HOURS SPECIFIED UNDER DIVISION
(B)(6)(a)(v), (vi),
(vii), AND (viii) OF THIS
SECTION.
(c) Division (B)(6)(a) OR (b) of this section does
not apply to
any applicant who holds a valid real estate
salesperson's license issued prior to January 2, 1972 salesperson's.
Divisions (B)(6)(a)(v), (vi), (vii), and (viii) OR DIVISION
(B)(6)(b)(v) of this section do not
apply to any applicant who holds a valid real estate
salesperson's license issued prior to January 3, 1984.
(7) If licensed as a real estate salesperson on or
after January 3, 1984, satisfactorily has completed a minimum of two
years of post-secondary education, or its equivalent in semester
or quarter hours, at an institution of higher education, and has
fulfilled the requirements of division (B)(6)(a) OR (b) of
this section.
The requirements of division (B)(6)(a) OR (b) of this section
may be
included in the two years of post-secondary education, or its
equivalent in semester or quarter hours, that is required by this
division.
(C) Each applicant for a broker's license shall be
examined in the principles of real estate practice, Ohio real
estate law, and financing and appraisal, and as to the duties of
real estate brokers and real estate salespersons, the
applicant's knowledge of real estate transactions and instruments relating to
them, and the canons of business ethics pertaining to them. The
commission from time to time shall promulgate such canons and
cause them to be published in printed form.
salesperson's
(D) Examinations shall be given entirely in writing,
except that they shall be administered with reasonable accommodations in
accordance with
the requirements of the "Americans with Disabilities
Act of 1990," 104 Stat. 327, 42
U.S.C. 12101. The contents of an examination shall be
consistent with the requirements of division (B)(6)(a) of this
section and with the other specific requirements of this section.
An applicant who has completed the requirements of division
(B)(6)(a) of this section at the time of application may
SHALL be
examined at the next regularly scheduled examination NO LATER THAN
TWELVE MONTHS after the
applicant is notified of admission to the examination.
(E) The superintendent may waive ONE OR MORE OF the requirement
REQUIREMENTS of examination THIS SECTION in the case of
an application from a nonresident real
estate broker of a state having similar requirements and under
the laws of which similar recognition is extended to licensed
real estate brokers and real estate salespersons of
this PURSUANT TO A RECIPROCITY AGREEMENT WITH THE LICENSING AUTHORITY
OF THE state FROM WHICH THE NONRESIDENT APPLICANT HOLDS A VALID REAL
ESTATE BROKER LICENSE.
(F) There shall be no limit placed on the number of times
an applicant may retake the examination.
(G) The superintendent in the superintendent's discretion
may waive the
requirement of examination if the applicant has been licensed as
a real estate broker by the superintendent or commission at some
time during the two-year period immediately preceding the date of
the current application.
(H)(1) Each NO LATER THAN TWELVE MONTHS AFTER THE DATE OF
ISSUE OF A REAL ESTATE BROKER'S LICENSE TO A licensee
successfully, THE LICENSEE shall
complete,
SUBMIT PROOF SATISFACTORY TO THE SUPERINTENDENT, ON FORMS MADE
AVAILABLE BY THE SUPERINTENDENT, OF THE COMPLETION OF TEN HOURS OF
CLASSROOM INSTRUCTION IN REAL ESTATE BROKERAGE
at an
institution
of higher education or any other institution that is approved by
the commission, ten hours of classroom instruction in real estate
brokerage. That instruction shall include, but not be limited
to, current issues in managing a real estate company or office.
Upon completion of the instruction, the licensee shall cause to
be filed with the superintendent a certificate from the
institution showing that the licensee successfully has
completed the requirements of this division in accordance with the appropriate
time period, as follows:
(a) Persons licensed on or after January 1, 1990, but before January 1,
2001,
shall submit proof of successful completion of instruction to the
superintendent within twelve months after the date of issuance of the
salesperson's license;
(b) Persons licensed on or after January 1, 2001, shall submit proof of
successful completion of instruction to the superintendent on or before the
date the licensee's first continuing education requirement, after licensure as
a salesperson, must be met under section 4735.141 of the Revised Code.
If the instruction REQUIRED PROOF OF COMPLETION is not
successfully completed SUBMITTED TO THE SUPERINTENDENT within
the time period prescribed by this division TWELVE MONTHS OF THE
DATE A LICENSE IS ISSUED UNDER THIS SECTION, the
license of the real estate broker is suspended
automatically without the taking of any action by the commission. The
broker then shall have one year after the
date of the
suspension of the broker's license to successfully complete the
instruction required under this division, and the broker's
license shall not be reinstated REACTIVATED by the
superintendent until it is established,
to the satisfaction of the superintendent, that the requirements
of this division have been met AND THAT THE LICENSEE IS IN COMPLIANCE WITH
THIS CHAPTER. A LICENSEE'S LICENSE IS REVOKED AUTOMATICALLY WITHOUT THE
TAKING OF ANY ACTION BY THE SUPERINTENDENT IF THE LICENSEE FAILS TO SUBMIT
PROOF OF COMPLETION OF THE EDUCATION REQUIREMENTS SPECIFIED
UNDER DIVISION (G)(1) OF THIS SECTION WITHIN TWELVE MONTHS OF THE
DATE THE LICENSE IS SUSPENDED.
(2) If the license of a real estate broker is suspended
pursuant to division (H)(G)(1) of this section, the license of
a
real estate salesperson associated with that broker correspondingly
is suspended pursuant to division (B) of section 4735.20 of the
Revised Code. However, the suspended license of the associated
real estate salesperson shall be reactivated and no fee
shall be charged or collected for that reactivation if all of the
following occur:
(a) That broker subsequently submits satisfactory proof to
the superintendent that the broker has complied with the
requirements of
division (H)(G)(1) of this section and requests that the
broker's license as a real estate broker be
reactivated;
(b) The superintendent then reactivates the
broker's license as a real estate broker;
(c) The associated real estate salesperson intends to
continue to be associated with that broker and otherwise is in
compliance with this chapter.
Sec. 4735.08. The superintendent of real estate shall
issue a real estate broker's license when he THE SUPERINTENDENT
is satisfied that:
(A) An applicant who is not a partnership, association, LIMITED LIABILITY
COMPANY, LIMITED LIABILITY PARTNERSHIP, or
corporation satisfies one of the following:
(1) Has received a grade of seventy-five per cent or
better PASSING SCORE on EACH PORTION OF the real estate
broker's examination administered under
the supervision of the superintendent AS DETERMINED BY RULE BY THE REAL
ESTATE COMMISSION;
(2) Is qualified to be licensed without examination as a
nonresident real estate broker, under division (E) of section
4735.07 of the Revised Code;
(3) Is qualified, as determined in the discretion of the
superintendent, to be licensed without examination as one who was
licensed as a real estate broker at some time during the two-year
period immediately preceding the date of the current application,
under division (G) of section 4735.07 of the Revised Code.
(B) All the members or officers who are authorized to
perform the functions of a real estate broker as the agents of an
applicant that is a partnership, association, LIMITED LIABILITY COMPANY,
LIMITED LIABILITY PARTNERSHIP, or corporation, are
licensed themselves as real estate brokers under this chapter.
Sec. 4735.09. (A) Application for a license as a real
estate salesperson shall be made in writing to the
superintendent of real estate on forms furnished by the
superintendent and
signed
by the applicant. The application shall be in the
form prescribed by the superintendent and shall contain such
information as is required by this chapter and the rules of the
Ohio real estate commission. The application shall be
accompanied by a recent photograph of the applicant and the
recommendation of the real estate broker with whom the
applicant is associated or with whom the applicant
intends to be associated, certifying
that the applicant is honest, truthful, and of good reputation,
has not been convicted of a felony or a crime involving moral
turpitude, and has not been finally adjudged by a court to have
violated any municipal, state, or federal civil rights laws
relevant to the protection of purchasers or sellers of real
estate, which conviction or adjudication the applicant has not
disclosed to the superintendent, and recommending that the
applicant be admitted to the REAL ESTATE SALESPERSON examination for
real estate
salesman.
(B) A fee of forty-nine dollars shall
accompany the
application, which fee shall include the license if it is issued.
The application fee shall be retained by the superintendent if
the applicant is admitted to the examination for the license or
the examination requirement is waived, but, if an applicant is
not so admitted and a waiver is not involved, one-half of the fee
shall be retained by the superintendent to cover the expenses of
processing the application and the other one-half shall be
returned to the applicant. A fee of
forty-nine dollars shall be
charged by the superintendent for each successive application
made by the applicant. Four dollars of each fee shall
be credited
to the real estate education and research fund.
(C) There shall be no limit placed on the number of times
an applicant may retake the examination.
(D) The superintendent, with the consent of the
commission, may enter into an agreement with a recognized
national testing service to administer the real estate
salesperson's examination under the superintendent's
supervision and control, consistent with
the requirements of this chapter as to the contents of the
examination.
If the superintendent, with the consent of the commission,
enters into an agreement with a national testing service to
administer the real estate salesperson's examination,
the superintendent may require an applicant to pay the testing
service's examination
fee directly to the testing service. If the superintendent
requires the payment of the examination fee directly to the
testing service, each applicant shall submit
to the superintendent a processing fee in an amount determined by the
Ohio real estate commission pursuant to division (A)(1) of
section 4735.10 of the Revised Code.
(E) The superintendent shall issue a real estate
salesperson's license when satisfied that the
applicant has received
a grade of seventy-five per cent or better PASSING SCORE on
EACH PORTION OF the
salesperson's examination AS DETERMINED BY RULE BY THE REAL ESTATE
COMMISSION, except that the superintendent may waive ONE OR MORE OF
the requirement REQUIREMENTS of examination if THIS
SECTION IN the CASE OF AN applicant WHO is a licensed
real estate salesperson in another state and that state does both
of the following:
(1) It applies licensing requirements similar to those applied in
this state as determined by the superintendent.
(2) It extends similar PURSUANT TO A reciprocity to licensed
real estate
salespersons in this AGREEMENT WITH THE LICENSING AUTHORITY OF THE
state FROM WHICH THE APPLICANT HOLDS A VALID REAL ESTATE SALESPERSON
LICENSE.
(F) No applicant for a salesperson's license shall take
the salesperson's
examination who has not established to the satisfaction of the superintendent
that the applicant:
(1) Is honest, truthful, and of good reputation;
(2)(a) Has not been convicted of a felony or crime of
moral turpitude or, if the applicant has been so convicted,
the
superintendent has disregarded the conviction because the
applicant has proven to the superintendent, by a preponderance of
the evidence, that the applicant's activities and employment
record since the
conviction show that the applicant is honest, truthful, and
of good
reputation, and there is no basis in fact for believing that the
applicant again will violate the laws involved;
(b) Has not been finally adjudged by a court to have
violated any municipal, state, or federal civil rights laws
relevant to the protection of purchasers or sellers of real
estate or, if the applicant has been so adjudged, at least
two years have
passed since the court decision and the superintendent has
disregarded the adjudication because the applicant has proven, by
a preponderance of the evidence, that the applicant is
honest, truthful, and of good reputation, and there is no basis in fact for
believing
that the applicant again will violate the laws involved.
(3) Has not, during any period in which the applicant was
licensed under this chapter, violated any provision of, or any rule
adopted pursuant to this chapter, or, if the applicant has
violated such provision or rule, has established to the satisfaction of the
superintendent that the applicant will not again violate such
provision or rule;
(4) Is at least eighteen years of age;
(5) If born after the year 1950, has a high school diploma
or its equivalent as recognized by the state department of
education;
(6)(a) Has IF BEGINNING INSTRUCTION
PRIOR TO AUGUST 1, 2001, HAS
successfully completed at an institution of
higher education all of the following:
(i) Thirty hours of classroom instruction in real estate
practice;
(ii) Thirty hours of classroom instruction that includes
the subjects of Ohio real estate law, municipal, state, and
federal civil rights law, new case law on housing discrimination,
desegregation issues, and methods of eliminating the effects of
prior discrimination. If feasible, the classroom instruction in
Ohio real estate law shall be taught by a member of the faculty
of an accredited law school. If feasible, the classroom
instruction in municipal, state, and federal civil rights law,
new case law on housing discrimination, desegregation issues, and
methods of eliminating the effects of prior discrimination shall
be taught by a staff member of the Ohio civil rights commission
who is knowledgeable with respect to those subjects. The
requirements of this division do not apply to an applicant who is
admitted to practice before the supreme court.
(iii) Thirty hours of classroom instruction in real estate
appraisal;
(iv) Thirty hours of classroom instruction in real estate
finance.
(b) Any person who has not been licensed as a real estate
salesperson or broker within a four-year period
immediately preceding the person's current application for
the salesperson's examination shall have successfully
completed the classroom instruction
required by division (F)(6)(a) of this section within a ten-year
period immediately preceding the person's current
application for the salesperson's examination.
(7) IF BEGINNING INSTRUCTION, AS DETERMINED BY THE
SUPERINTENDENT,
ON OR AFTER AUGUST 1, 2001, HAS SUCCESSFULLY
COMPLETED AT AN INSTITUTION OF HIGHER EDUCATION ALL OF THE
FOLLOWING:
(a) FORTY HOURS OF CLASSROOM INSTRUCTION IN REAL ESTATE
PRACTICE;
(b) FORTY HOURS OF CLASSROOM INSTRUCTION THAT INCLUDES THE
SUBJECTS OF OHIO REAL ESTATE LAW, MUNICIPAL, STATE, AND FEDERAL
CIVIL RIGHTS LAW, NEW CASE LAW ON HOUSING DISCRIMINATION, DESEGREGATION
ISSUES, AND METHODS OF
ELIMINATING THE EFFECTS OF PRIOR DISCRIMINATION. IF FEASIBLE, THE
CLASSROOM INSTRUCTION IN OHIO REAL ESTATE LAW SHALL BE
TAUGHT BY A MEMBER OF THE FACULTY OF AN ACCREDITED LAW SCHOOL. IF
FEASIBLE, THE CLASSROOM INSTRUCTION IN MUNICIPAL, STATE, AND
FEDERAL CIVIL RIGHTS LAW, NEW CASE LAW ON HOUSING DISCRIMINATION,
DESEGREGATION ISSUES, AND METHODS OF ELIMINATING THE EFFECTS OF
PRIOR DISCRIMINATION SHALL BE TAUGHT BY A STAFF MEMBER OF THE OHIO
CIVIL RIGHTS COMMISSION WHO IS KNOWLEDGEABLE WITH RESPECT TO THOSE SUBJECTS.
THE REQUIREMENTS OF
THIS DIVISION DO NOT APPLY TO AN APPLICANT WHO IS ADMITTED TO PRACTICE
BEFORE THE SUPREME COURT.
(c) TWENTY HOURS OF CLASSROOM INSTRUCTION IN REAL ESTATE
APPRAISAL;
(d) TWENTY HOURS OF CLASSROOM INSTRUCTION IN REAL ESTATE
FINANCE.
(G) Each NO LATER THAN TWELVE MONTHS AFTER THE DATE OF ISSUE OF A
REAL ESTATE SALESPERSON LICENSE TO A LICENSEE, THE licensee shall submit
proof SATISFACTORY TO THE SUPERINTENDENT, ON FORMS MADE AVAILABLE BY THE
SUPERINTENDENT, of successful completion, at
an
institution of higher education or any other institution approved
by the commission, of ten hours of classroom instruction in real
estate courses that cover current issues regarding consumers,
real estate practice, ethics, and real estate law. Upon
completion of the instruction, the licensee shall cause to have
filed with the superintendent a certificate from the institution
showing that the licensee successfully has completed the
requirements of
this division
in accordance with the
appropriate time period, as follows:
(1) Persons licensed on or after January 1, 1990, but before
January 1, 2001, shall submit proof of successful completion of the
instruction to the
superintendent within twelve months after the date of issuance of the real
estate broker's license;
(2) Persons licensed on or after January 1, 2001, shall submit
proof of successful completion of the instruction to the superintendent on or
before the
licensee's first continuing education requirement, after licensure
as a broker, must be met under section 4735.141 of the Revised
Code.
If proof of successful completion of the required
instruction is not submitted within the time period prescribed by
this division TWELVE MONTHS OF THE DATE A LICENSE IS ISSUED UNDER THIS
SECTION, the licensee's license is suspended
automatically without the
taking of any action by the commission. The superintendent
immediately shall notify the broker with whom such
salesperson is associated of the suspension of the
salesperson's license. A salesperson whose license
has been suspended under this division shall have one year TWELVE
MONTHS after the date of
the suspension of the salesperson's license to submit proof of
successful completion of the
instruction required under
this division. No such license shall be reactivated
by the superintendent until it is established, to the satisfaction of
the superintendent, that the requirements of this division have
been met AND THAT THE LICENSEE IS IN COMPLIANCE WITH THIS CHAPTER. A
LICENSEE'S LICENSE IS REVOKED AUTOMATICALLY WITHOUT THE TAKING OF ANY ACTION
BY THE SUPERINTENDENT WHEN THE LICENSEE FAILS TO SUBMIT THE REQUIRED PROOF OF
COMPLETION OF THE EDUCATION
REQUIREMENTS UNDER DIVISION (G) OF THIS SECTION WITHIN TWELVE MONTHS
OF THE DATE THE LICENSE IS SUSPENDED.
(H) Examinations shall be given entirely in writing,
except that they shall be administered with reasonable accommodations in
accordance with
the requirements of the "Americans with Disabilities
Act of 1990," 104 Stat. 327, 42
U.S.C. 12101. The contents of an
examination shall be
consistent with the classroom instructional requirements of
division (F)(6)(a) OR (7) of this section. All
persons whose
applications are pending shall be notified by mail at least sixty
days prior to such examination, except that an AN applicant who has
completed the classroom instructional requirements of division
(F)(6)(a) OR (7) of this section at the time of
application may SHALL
be
examined at the next regularly scheduled examination NO LATER THAN
TWELVE MONTHS after the
applicant is notified of the applicant's admission to
the examination. Nothing
in this
section shall be construed to prevent an applicant from
completing, in the discretion of the superintendent, the
classroom instructional requirements of division (F)(6)(a) of
this section concurrently with the processing of the
applicant's application for examination.
Sec. 4735.10. (A)(1) The Ohio real estate commission may
adopt reasonable rules in accordance with Chapter 119. of the Revised Code,
necessary for implementing the provisions of this chapter relating, but not
limited to, the following:
(a) The form and manner of filing applications for
license;
(b) Times and form of examination for license;
(c) Placing an existing broker's license in escrow ON DEPOSIT OR A
SALESPERSON'S LICENSE ON AN INACTIVE STATUS for an indefinite period
upon good cause shown.
(2) The commission shall adopt reasonable rules in accordance with
Chapter 119. of the Revised Code, for implementing the provisions
of this chapter relating to the following:
(a) The issuance, renewal, suspension, revocation of
licenses, other sanctions that may be imposed for violations of this
chapter,
and the conduct of hearings related to these actions, AND THE
PROCESS OF REACTIVATING A LICENSE;
(b) Standards for the approval of courses of study
required for licenses, or offered in preparation for license
examinations, or required as continuing education for licenses. The rules
shall specify that no standard for the approval of
a course of study required as continuing education for licensees shall require
that licensees pass an examination as a condition for the successful
completion of a continuing education requirement. A person providing a
continuing education course may administer examinations for the purpose of
evaluating the effectiveness of the course.
(c) Guidelines to ensure that continuing education
classes are open to all persons licensed under this
chapter. The rules shall
specify that an organization that sponsors a continuing
education class may offer its members a reasonable reduction in
the fees charged for the class.
(d) Requirements for trust accounts and property
management accounts. The rules shall specify that:
(i) Brokerages engaged in the management of
property for another may, pursuant to a written contract with
the property owner, exercise signatory authority for withdrawals
from property management accounts maintained in the name of the
property owner. The exercise of authority for withdrawals does
not constitute a violation of any provision of division
(A) of section 4735.18 of the
Revised
Code.
(ii) The interest earned on property management
trust accounts maintained in the name of the property owner or the broker
shall be payable to the property owner unless otherwise specified in a written
contract.
(e) Annual certificates of continuation in business NOTICE OF
RENEWAL FORMS and filing deadlines based on a staggered system of
renewal with deadlines
distributed throughout the year;
(f) SPECIAL ASSESSMENTS UNDER DIVISION (A) OF SECTION
4735.12 of the Revised Code.
(B) The commission shall MAY adopt rules in accordance with
Chapter 119. of the
Revised Code establishing standards and
guidelines with which the superintendent of real estate shall
comply in the exercise of the following powers:
(1) Appointment and recommendation of ancillary trustees under section
4735.05 of the Revised Code;
(2) Rejection of names proposed to be used by
partnerships, associations, LIMITED LIABILITY CORPORATIONS, LIMITED
LIABILITY PARTNERSHIPS, and corporations, under division (A)
of section 4735.06 of the Revised Code;
(3) Acceptance and rejection of applications to take the
broker and salesperson examinations and licensure, with
waiver of examination APPROPRIATE WAIVERS PURSUANT TO DIVISION
(E) OF SECTION 4735.07 AND SECTION 4735.09 of the Revised Code, under sections
4735.07 and 4735.09 of the Revised
Code;
(4) Approval of applications of brokers to place their
licenses on deposit and to become salespersons under
section 4735.13 of the Revised Code;
(5) Appointment of hearing examiners under section 119.09
of the Revised Code;
(6) Acceptance and rejection of applications to take the
foreign real estate dealer and salesperson examinations and
licensure, with waiver of examination, under sections 4735.27 and 4735.28 of
the Revised Code;
(7) Qualification of foreign real estate under section
4735.25 of the Revised Code.
If at any time there is no rule in effect establishing a
guideline or standard required by this division, the
superintendent shall MAY adopt a rule in accordance with Chapter
119. of the Revised Code for such purpose.
(C) The commission or superintendent may hear testimony in
matters relating to the duties imposed upon them, and the
president of the commission and superintendent may administer
oaths. The commission or superintendent may require other proof
of the honesty, truthfulness, and good reputation of any person
named in an application for a real estate broker's or real
estate
salesperson's license before admitting the applicant to the examination or
issuing a license.
Sec. 4735.11. The form and size of licenses issued under this chapter shall
be prescribed by the Ohio real estate commission. Each BROKER'S OR FOREIGN
REAL ESTATE DEALER'S license shall show the
name and address of the licensee, and in the case of partnership, association,
LIMITED LIABILITY COMPANY, LIMITED LIABILITY PARTNERSHIP,
and corporation licenses, the name and address of each of the members or
officers of the partnership, association, LIMITED LIABILITY COMPANY,
LIMITED LIABILITY PARTNERSHIP, or corporation. A real estate
salesman's SALESPERSON'S license or a foreign real estate
salesman's SALESPERSON'S license shall show the
name of the real estate broker or foreign real estate dealer with whom
he THE SALESPERSON is or is to be associated. Each license
shall be issued under the seal
prescribed in section 121.20 of the Revised Code and be signed by the
president of the commission and the superintendent of real estate.
Sec. 4735.12. (A) The real estate recovery fund is hereby
created in the state treasury, to be administered by the
superintendent of real estate. Amounts collected by the
superintendent as prescribed in this section and interest earned
on the assets of the fund shall be credited by the treasurer of
state to the fund. The amount of money in the fund shall be
ascertained by the superintendent as of the first day of October
JULY
of each year. If that amount is less than one million dollars,
the director of budget and management may, upon the request of
the superintendent, transfer from the real estate operating fund
to the real estate recovery fund such sum as will bring the real
estate recovery fund to that amount.
THE COMMISSION, IN ACCORDANCE WITH RULES ADOPTED UNDER DIVISION
(A)(2)(f) OF SECTION 4735.10 of the Revised Code, SHALL IMPOSE A SPECIAL
ASSESSMENT NOT TO EXCEED TEN DOLLARS ANNUALLY ON EACH LICENSEE FILING A
NOTICE OF RENEWAL
UNDER SECTION 4735.14 of the Revised Code IF THE AMOUNT AVAILABLE IN THE FUND IS LESS THAN
ONE MILLION DOLLARS ON THE FIRST DAY OF JULY PRECEDING THAT FILING.
THE COMMISSION MAY IMPOSE A SPECIAL ASSESSMENT NOT TO EXCEED FIVE DOLLARS
ANNUALLY IF THE AMOUNT AVAILABLE IN THE
FUND IS GREATER THAN ONE MILLION DOLLARS, BUT LESS THAN TWO MILLION DOLLARS ON
THE FIRST DAY OF JULY PRECEDING THAT FILING. THE COMMISSION SHALL
NOT IMPOSE A SPECIAL ASSESSMENT IF THE AMOUNT AVAILABLE IN THE FUND EXCEEDS
TWO MILLION DOLLARS ON THE FIRST DAY OF JULY PRECEDING THAT
FILING.
(B)(1) Any person who obtains a final judgment in any court of competent
jurisdiction against any broker or salesperson licensed under this chapter, on
the grounds of conduct that is in violation of this chapter or
the rules adopted under it, and that
is associated with an act or transaction of a broker or
salesperson THAT ONLY A LICENSED REAL ESTATE BROKER OR LICENSED REAL
ESTATE SALESPERSON IS AUTHORIZED TO PERFORM AS specified or
comprehended in division (A) or (C)
of section 4735.01 of the Revised Code, may file a
verified application, as described in division (B)(3)
of this section, in any court
of common pleas for an order directing payment out of the real
estate recovery fund of the portion of the judgment that remains
unpaid and that represents the actual and direct loss sustained
by the applicant.
(2) Punitive damages, ATTORNEY'S FEES, and interest on a
judgment
are not recoverable from the fund. In the discretion of the
superintendent of real estate, attorney's fees and court costs
may be recovered from the fund, and, if the superintendent authorizes
the recovery of attorney's fees or court costs, the order of
the court of common pleas then may direct their payment from the
fund.
(3) The application shall specify the nature of the act or
transaction upon which the underlying judgment was based, the
activities of the applicant in pursuit of remedies available
under law for the collection of judgments, and the actual and
direct losses, attorney's fees, and the court costs sustained
or incurred by the applicant. The applicant shall attach to the
application a copy of each pleading and order in the underlying
court action.
(4) The court shall order the superintendent to make such
payments out of the fund when the person seeking the order has
shown all of the following:
(a) The person has obtained a judgment, as provided in this division;
(b) All appeals from the judgment have been exhausted and
the person has given notice to the superintendent, as
required by division (C) of this section;
(c) The person is not a spouse of the judgment debtor, or the personal
representative of such spouse;
(d) The person has diligently pursued
the person's remedies against all the
judgment debtors and all other persons liable to the person
in the transaction for which the person seeks recovery from
the fund;
(e) The person is making the person's application not more than one year
after termination of all proceedings, including appeals, in connection with
the judgment.
(5) Divisions (B)(1) to (4) of this section do not apply to any of the
following:
(a) Actions arising from property management accounts maintained in the name
of the property owner;
(b) A bonding company when it is not a principal in a real estate
transaction;
(c) A person in an action for the payment of a
commission or fee for the performance of an act or transaction
specified or comprehended in division (A) or (C) of section 4735.01 of the
Revised Code;
(d) Acts that occurred on or before March 4, 1975 LOSSES INCURRED
BY INVESTORS IN REAL ESTATE IF THE APPLICANT AND THE LICENSEE ARE PRINCIPALS
IN THE INVESTMENT.
(C) A person who applies to a court of common pleas for an
order directing payment out of the fund shall file notice of the
application with the superintendent. The superintendent may
defend any such action on behalf of the fund and shall have
recourse to all appropriate means of defense and review,
including examination of witnesses, VERIFICATION OF ACTUAL AND
DIRECT LOSSES, AND CHALLENGES TO THE UNDERLYING JUDGMENT REQUIRED IN
DIVISION (B)(4)(a) OF THIS SECTION TO DETERMINE
WHETHER THE UNDERLYING JUDGMENT IS BASED ON ACTIVITY ONLY A LICENSED BROKER OR
LICENSED SALESPERSON IS PERMITTED TO PERFORM. The superintendent may move
the court at any time to dismiss the application when it appears
there are no triable issues and the application is without merit.
The motion may be supported by affidavit of any person having
knowledge of the facts and may be made on the basis that the
application, including the judgment referred to in it, does not
form the basis for a meritorious recovery claim; provided, that
the superintendent shall give written notice to the applicant at
least ten days before such motion. The superintendent may,
subject to court approval, compromise a claim based upon the
application of an aggrieved party. The superintendent shall
not be bound by any prior compromise or stipulation of the judgment debtor.
(D) Notwithstanding any other provision of this section,
the liability of the fund shall not exceed forty thousand dollars
for any one licensee. If a licensee LICENSEE'S LICENSE is
reinstated REACTIVATED as provided in
division (E) of this section, the liability of the fund for the
licensee under this section shall again be forty thousand dollars, but
only for transactions which THAT occur subsequent to the time of
reinstatement REACTIVATION.
If the forty-thousand-dollar liability of the fund is
insufficient to pay in full the valid claims of all aggrieved
persons by whom claims have been filed against any one licensee,
the forty thousand dollars shall be distributed among them in
the ratio that their respective claims bear to the aggregate of
valid claims or in such other manner as the court finds
equitable. Distribution of moneys shall be among the
persons entitled to share in it, without regard to the order of
priority in which their respective judgments may have been
obtained or their claims have been filed. Upon petition of the
superintendent, the court may require all claimants and
prospective claimants against one licensee to be joined in one
action, to the end that the respective rights of all such
claimants to the fund may be equitably adjudicated and settled.
(E) If the superintendent pays from the fund any amount in
settlement of a claim or toward satisfaction of a judgment
against a licensed broker or salesperson, the license
of the broker or salesperson shall be automatically suspended upon the date of
payment from the fund. No such broker or salesperson THE
SUPERINTENDENT shall be
granted reinstatement NOT REACTIVATE THE SUSPENDED LICENSE OF THAT
BROKER OR SALESPERSON until the broker or salesperson has repaid in full,
plus
interest per annum at the rate specified in division (A) of section
1343.03 of the Revised Code, the amount paid from the fund on his
THE BROKER'S OR SALESPERSON'S account. A discharge in bankruptcy does
not relieve a person from the suspension and requirements for
reinstatement REACTIVATION
provided in this section UNLESS THE UNDERLYING JUDGMENT HAS BEEN INCLUDED
IN THE DISCHARGE AND HAS NOT BEEN REAFFIRMED BY THE DEBTOR.
(F) Two dollars of each fee collected for a real estate broker's license
or a
real estate salesperson's license, or
for the renewal of such licenses, may, as determined by the
superintendent, be credited to the fund, if the fund balance does
not exceed two million dollars.
If, at any time, the money deposited in the fund is
insufficient to satisfy any duly authorized claim or portion of a
claim, the superintendent shall, when sufficient money has been
deposited in the fund, satisfy such unpaid claims or portions, in
the order that such claims or portions were originally filed,
plus accumulated interest per annum at the rate specified in
division (A) of section 1343.03 of the Revised Code.
(G) When, upon the order of the court, the superintendent
has paid from the fund any sum to the judgment creditor, the
superintendent shall be subrogated to all of the rights of the
judgment creditor to the extent of the amount so paid, and the judgment
creditor shall assign all the judgment creditor's right, title, and interest
in the judgment to the superintendent to the extent of the amount
so paid. Any amount and interest so recovered by the
superintendent on the judgment shall be deposited in the fund.
(H) Nothing contained in this section shall limit the
authority of the superintendent to take disciplinary action
against any licensee under other provisions of this chapter; nor
shall the repayment in full of all obligations to the fund by any
licensee nullify or modify the effect of any other disciplinary
proceeding brought pursuant to this chapter.
(I) The superintendent shall collect from the fund a
service fee in an amount equivalent to the interest rate
specified in division (A) of section 1343.03 of the Revised Code
multiplied by the annual interest earned on the assets of the
fund, to defray the expenses incurred in the administration of
the fund.
Sec. 4735.13. (A) The license of a real estate broker
shall be prominently displayed in the office or place of business
of the broker, and no license shall authorize the licensee to do
business except from the location specified in it.
IF THE BROKER MAINTAINS MORE THAN ONE PLACE OF BUSINESS WITHIN THE
STATE, THE BROKER SHALL APPLY FOR AND PROCURE A DUPLICATE LICENSE FOR
EACH BRANCH OFFICE MAINTAINED BY THE BROKER. EACH BRANCH OFFICE SHALL BE
IN THE CHARGE OF A LICENSED BROKER OR SALESPERSON. THE BRANCH OFFICE
LICENSE SHALL BE PROMINENTLY DISPLAYED AT THE BRANCH OFFICE
LOCATION.
(B) The license of each real estate salesman SALESPERSON shall
be mailed to and remain in the possession of the licensed broker
with whom he THE SALESPERSON is or is to be associated until
canceled THE LICENSEE PLACES THE LICENSE ON INACTIVE STATUS or
until the salesman leaves the broker SALESPERSON LEAVES THE
BROKERAGE OR IS TERMINATED. The broker shall
keep each
salesman's SALESPERSON'S license in a way that it can, and shall
on request, be
made immediately available for public inspection at the office or
place of business of the broker. Except as provided in division
(G) of this section, immediately upon the SALESPERSON'S LEAVING THE
ASSOCIATION OR termination of the
association of a real estate salesman SALESPERSON with the
broker, the broker shall return the salesman's SALESPERSON'S
license to the superintendent of real estate for cancellation.
THE FAILURE OF A BROKER TO RETURN THE LICENSE OF A REAL ESTATE SALESPERSON
WHO LEAVES OR WHO IS TERMINATED WITHIN THREE BUSINESS DAYS OF THE RECEIPT OF A
WRITTEN REQUEST FROM THE SALESPERSON FOR THE RETURN OF THE LICENSE,
WHEN A COPY OF THE REQUEST ALSO IS FORWARDED TO THE SUPERINTENDENT, IS PRIMA
FACIE EVIDENCE OF MISCONDUCT UNDER DIVISION
(A)(6) OF SECTION 4735.18 of the Revised Code.
(C) Any licensee who is convicted of a felony or a crime
involving moral turpitude or of violating any federal, state, or
municipal civil rights law pertaining to discrimination in
housing, or any court that issues a finding of an unlawful
discriminatory practice pertaining to housing accommodations
described in division (H) of section 4112.02 of the Revised Code
or that convicts a licensee of a violation of any municipal civil
rights law pertaining to housing discrimination, shall notify the
superintendent of the conviction or finding within fifteen days.
If a licensee fails to notify the superintendent within the
required time, the superintendent immediately may revoke the
license of the licensee.
Any court that convicts a licensee of a violation of any
municipal civil rights law pertaining to housing discrimination
also shall notify the Ohio civil rights commission within fifteen
days of the conviction.
(D) In case of any change of business location, a broker
shall give a notice in writing to the superintendent, whereupon
the superintendent shall issue new licenses for the unexpired
period without charge. A IF A broker who changes a
business location
without giving the REQUIRED notice and without the issuance of
the RECEIVING new
licenses is guilty of misconduct THAT ACTION IS PRIMA FACIE EVIDENCE
OF MISCONDUCT under division (A)(6) of section
4735.18 of the Revised Code.
(E) If a real estate broker desires to associate himself
with another real estate broker in the capacity of a real estate
salesman SALESPERSON, he THE BROKER shall apply to
the superintendent to deposit his THE BROKER'S real estate
broker's license with the superintendent and for the
issuance of a real estate salesman's SALESPERSON'S license. The
application shall be made on a form prescribed by the superintendent and
shall be accompanied by the recommendation of the real estate
broker with whom the applicant intends to become associated, a
fee of thirteen dollars to cover the expenses of the
superintendent
in holding the applicant's real estate broker's license, and a
fee of twenty-five dollars for the real estate
salesman's SALESPERSON'S license. Four dollars of each
THE fee
shall be credited to the real estate
education and research fund. If the superintendent is satisfied
that the applicant is honest, truthful, and of good reputation,
has not been convicted of a felony or a crime involving moral
turpitude, and has not been finally adjudged by a court to have
violated any municipal, state, or federal civil rights laws
relevant to the protection of purchasers or sellers of real
estate, and that the association of the real estate broker and
the applicant will be in the public interest, the superintendent
shall grant the application and issue a real estate salesman's
SALESPERSON'S license to him THE APPLICANT. Any license
so deposited with the superintendent
shall be subject to this chapter. On or before the first day of
November of each year, a A broker who intends to deposit his
THE
BROKER'S license with the superintendent, as provided in this section,
shall give written notice of this fact IN A FORMAT PRESCRIBED BY THE
SUPERINTENDENT to all salesmen
SALESPERSONS associated with him THE BROKER WHEN
APPLYING TO PLACE THE BROKER'S LICENSE ON DEPOSIT.
(F) If a real estate broker desires to become a member or
officer of a partnership, association, LIMITED LIABILITY COMPANY, LIMITED
LIABILITY PARTNERSHIP, or corporation that is or
intends to become a licensed real estate broker, he THE BROKER
shall notify the superintendent of his THE BROKER'S intentions.
The notice of intention shall be on a form prescribed by the superintendent
and shall be
accompanied by a fee of twenty-five dollars. Four dollars of the
fee shall be credited to the real estate education and research
fund.
No real estate broker who is a member or officer of a
partnership, association, LIMITED LIABILITY COMPANY, LIMITED LIABILITY
PARTNERSHIP, or corporation that is a licensed real
estate broker shall perform any acts as a real estate broker
other than as the agent of the partnership, association, LIMITED LIABILITY
COMPANY, LIMITED LIABILITY PARTNERSHIP, or
corporation, and he SUCH BROKER shall not have any real estate
salesmen SALESPERSONS associated with him THE
BROKER.
(G) If a real estate broker or salesman SALESPERSON enters the
armed forces, he THE BROKER OR SALESPERSON may place his
THE BROKER'S OR SALESPERSON'S license on deposit with the Ohio real
estate commission until six months after his discharge from the
armed services. The licensee shall pay a fee of seven dollars to
cover the expense of the commission in holding the existing
license NOT BE REQUIRED TO RENEW THE LICENSE ANNUALLY UNTIL THE RENEWAL
DATE THAT FOLLOWS THE DATE OF DISCHARGE FROM THE ARMED SERVICES. Any
license deposited with the commission shall be
subject to this chapter. Any licensee whose license is on
deposit under this division and who fails to meet the continuing
education requirements of section 4735.141 of the Revised Code
because he THE LICENSEE is in the armed forces shall satisfy the
commission that he THE LICENSEE has complied with the continuing
education requirements
within twelve months of his THE LICENSEE'S discharge. The
commission shall
notify the licensee of his THE LICENSEE'S obligations under
section 4735.141 of the Revised Code at the time he THE LICENSEE
applies for release REACTIVATION of his THE
LICENSEE'S license.
Sec. 4735.14. (A) Each license issued under this chapter,
shall be valid without further recommendation or examination
until canceled PLACED IN AN INACTIVE STATUS, revoked, suspended,
or such license expires by operation of law.
(B) Each licensed broker, brokerage, or salesperson shall file, on or
before
the date the Ohio real estate commission has adopted by rule for that licensee
in accordance with division (A)(2)(e) of section 4735.10 of the Revised Code,
a certificate of continuation in business NOTICE OF RENEWAL on a
form prescribed by the
superintendent of real estate. THE LICENSEE SHALL INDICATE ON THE FORM
WHETHER THE LICENSEE WISHES TO MAINTAIN THE LICENSEE'S LICENSE IN AN ACTIVE OR
INACTIVE STATUS. The
certificate of continuation in business NOTICE OF RENEWAL shall
be mailed by the superintendent
to the MOST CURRENT personal residence ADDRESS of each
broker or salesperson AS FILED WITH THE SUPERINTENDENT BY THE LICENSEE
and the place of business ADDRESS of the brokerage two
months prior to the filing deadline.
(C) The license of any real estate broker,
brokerage, or salesperson that fails
to file a certificate of continuation NOTICE OF RENEWAL on or
before the filing deadline of each
ensuing year shall be
canceled SUSPENDED AUTOMATICALLY WITHOUT THE TAKING OF ANY ACTION BY
THE SUPERINTENDENT. A canceled SUSPENDED license
may be reactivated within one year TWELVE MONTHS of
cancellation THE DATE OF SUSPENSION, provided that the renewal
fee plus a penalty fee of fifty per
cent of the renewal fee is paid to the superintendent. Failure to reactivate
the license as provided in this division shall result in AUTOMATIC
revocation of the
license WITHOUT THE TAKING OF ANY ACTION BY THE SUPERINTENDENT. No
person, partnership, association, corporation, limited liability
company, or limited partnership shall engage in any act or acts for which a
real estate license is required while that entity's license is canceled
PLACED IN AN INACTIVE STATUS, SUSPENDED, or revoked. THE
COMMISSION SHALL ADOPT RULES IN ACCORDANCE WITH CHAPTER 119. of the Revised Code TO
PROVIDE TO LICENSEES NOTICE OF SUSPENSION OR REVOCATION OR BOTH.
(D) EACH LICENSEE SHALL NOTIFY THE COMMISSION OF A CHANGE IN
PERSONAL RESIDENCE ADDRESS. A LICENSEE'S FAILURE TO NOTIFY THE COMMISSION OF
A CHANGE IN PERSONAL RESIDENCE ADDRESS DOES NOT
NEGATE THE REQUIREMENT TO FILE THE LICENSE RENEWAL BY THE REQUIRED
DEADLINE ESTABLISHED BY THE COMMISSION BY RULE UNDER DIVISION
(A)(2)(e) OF SECTION 4735.10 OF
THE REVISED CODE.
(E) THE SUPERINTENDENT SHALL NOT RENEW A LICENSE IF THE LICENSEE
IS NOT IN
COMPLIANCE WITH THIS CHAPTER.
Sec. 4735.141. (A) Except as otherwise provided in this
division, each person licensed under section 4735.07 or 4735.09 of the Revised
Code shall submit proof satisfactory to the superintendent of real estate that
the licensee has satisfactorily completed thirty classroom hours of
continuing education, as prescribed by the Ohio real estate commission
pursuant to section 4735.10 of the Revised Code, on or before the licensee's
birthday occurring three years after the licensee's date of initial licensure,
and on or before the licensee's birthday every three years thereafter.
Persons licensed
as real estate salespersons who subsequently become licensed real
estate brokers shall continue to submit proof of continuing
education in accordance with the time period established in this section.
The requirements of this section
shall not apply to
any physically handicapped licensee as provided in division (E) of this
section.
Each licensee who is seventy years of age or older on
June 13, 1996 June 13, 1996 June 14, 1999, shall submit, on or
before the licensee's
birthday occurring three years after the effective date of this
amendment SECTION, and
on or before the licensee's birthday every three years thereafter,
proof satisfactory to the superintendent of real esate ESTATE
that the
licensee has satisfactorily
completed June 13, 1996 a total of nine
classroom hours of continuing education, including instruction in
Ohio real estate law; recently enacted state
and federal laws affecting the real estate industry; municipal,
state, and
federal civil rights law; and canons of ethics for the real estate industry as
adopted by the commission. A LICENSEE WHO IS SEVENTY YEARS OF AGE OR
OLDER WHOSE LICENSE IS IN AN INACTIVE STATUS IS EXEMPT FROM THE CONTINUING
EDUCATION REQUIREMENTS SPECIFIED IN THIS SECTION. The commission
shall adopt
reasonable rules in
accordance with Chapter 119. of the Revised Code
to carry out the purposes of this paragraph.
A person providing any course of continuing education may
administer examinations to licensees for the purpose of
evaluating the effectiveness of the course, but passage of an
examination by a licensee shall not be a condition for successful
completion of the continuing education requirements of this
section.
(B) The continuing education requirements of this section
shall be completed in schools, seminars, and educational
institutions approved by the commission. Such approval shall be
given according to rules established by the commission under the
procedures of Chapter 119. of the Revised Code, and shall not be
limited to institutions providing two-year or four-year degrees.
Each school, seminar, or educational institution approved under
this division shall be open to all licensees on an equal basis.
(C) If the requirements of this section are not met by a
licensee within the period specified, the licensee's license shall
be suspended automatically without the taking of any action by the
superintendent. The superintendent shall notify the licensee of
the license suspension. Any license so suspended shall
remain suspended until it is reactivated by the
superintendent.
No such license shall be reactivated until it is
established, to
the satisfaction of the superintendent, that the requirements of
this section have been met. If the requirements of this section
are not met within one year TWELVE MONTHS from the date the
license
was
suspended, the license shall be revoked automatically without the
taking of any action by the commission. A person whose license
has been revoked and whose revoked license was issued prior to
January 1, 1980, may have the person's license
reactivated by the
superintendent at any time after it has been revoked upon
submitting proof satisfactory to the superintendent that the person has
satisfactorily completed during the period since the revocation
of the person's license thirty classroom hours of continuing
education as prescribed by the commission pursuant to section 4735.10 of the
Revised Code. Upon reactivation of the person's
license, the licensee
shall comply with the educational requirements of division (A) of
this section.
(D) If the license of a real estate broker is suspended
pursuant to division (C) of this section, the license of a
real
estate salesperson associated with that broker
correspondingly is
suspended pursuant to division (B) of section 4735.20 of the
Revised Code. However, the suspended license of the associated
real estate salesperson shall be reactivated and no
fee
shall be
charged or collected for that reactivation if all
of
the
following occur:
(1) That broker subsequently submits proof to the
superintendent that the broker has complied with the requirements of
this section and requests that the broker's license as a real estate
broker be reactivated.
(2) The superintendent then reactivates the broker's
license as a
real estate broker.
(3) The associated real estate salesperson intends to
continue to be associated with that broker, has complied with the
requirements of this section, and otherwise is in compliance with
this chapter.
Any person whose license is reactivated pursuant to this division
shall submit proof satisfactory to the superintendent that the
person has completed thirty hours of continuing education, as
prescribed by the Ohio real estate commission, on or before the
third year following the licensee's birthday occurring immediately after
reactivation.
(E) Any licensee who is a physically handicapped licensee
at any time during the last three months of the third year of the licensee's
continuing education reporting period may receive an extension of
time to submit proof to the superintendent that the licensee has
satisfactorily completed the required thirty hours of continuing
education. To receive an extension of time, the licensee shall
submit a request to the division of real estate for the extension
and proof satisfactory to the commission that the licensee was a physically
handicapped licensee at some time during the last three months of
the three-year reporting period. The proof shall include, but is
not limited to, a signed statement by the licensee's attending
physician describing the physical disability, certifying that the
licensee's disability is of such a nature as to prevent the licensee from
attending any classroom instruction lasting at least three hours
in duration, and stating the expected duration of the physical
disability. The licensee shall request the extension and provide
the physician's statement to the division no later than one month
prior to the end of the licensee's three-year continuing
education reporting period, unless the physical disability did
not arise until the last month of the three-year reporting
period, in which event the licensee shall request the extension
and provide the physician's statement as soon as practical after
the occurrence of the physical disability. A licensee granted an
extension pursuant to this division who is no longer a physically
handicapped licensee and who submits proof of completion of the
continuing education during the extension period, shall submit,
for future continuing education reporting periods, proof of
completion of the continuing education requirements according to
the schedule established in division (A) of this section.
Sec. 4735.15. The fees for branch office licenses,
transfers, certificates of continuation in business ANNUAL
RENEWALS, late
filings, and foreign real estate dealer and salesman SALESPERSON
licenses shall be as follows:
(A) Branch office license, eight dollars;
(B) Transfer REACTIVATION OR TRANSFER of a broker's license
into or out of a
partnership, association,
LIMITED LIABILITY COMPANY, LIMITED LIABILITY PARTNERSHIP,
or corporation or from one partnership,
association,
LIMITED LIABILITY COMPANY, LIMITED LIABILITY PARTNERSHIP,
or corporation to another partnership, association,
LIMITED LIABILITY COMPANY, LIMITED LIABILITY PARTNERSHIP,
or corporation, twenty-five dollars. An
application for such
transfer shall be made to the superintendent of real estate on
forms provided by the superintendent.
(C) Transfer REACTIVATION OR TRANSFER of a license by a real
estate salesman SALESPERSON,
twenty dollars;
(D) Certificate of continuation in the business ANNUAL RENEWAL
of A real
estate broker BROKER'S LICENSE, forty-nine dollars. If the
licensee is a
partnership, association,
LIMITED LIABILITY COMPANY, LIMITED LIABILITY PARTNERSHIP,
or corporation, the full broker's
continuation RENEWAL fee shall be required for each member of
such
partnership, association,
LIMITED LIABILITY COMPANY, LIMITED LIABILITY PARTNERSHIP,
or corporation that is a real estate
broker. If the real estate
broker has not less than eleven nor more than twenty real estate
salesmen SALESPERSONS associated with him THE
BROKER, an additional fee
of sixty-four dollars shall be assessed to the
brokerage. For every additional ten real
estate salesmen SALESPERSONS or fraction of that number, the
brokerage assessment fee shall
be increased in
the amount of thirty-seven
dollars.
(E) Certificate of continuation in business ANNUAL RENEWAL of
real estate
salesman SALESPERSON'S LICENSE, thirty-nine dollars;
(F) Certificate of continuation in the business ANNUAL RENEWAL
of A real
estate broker BROKER'S or salesman SALESPERSON'S
LICENSE filed within fifteen days TWELVE MONTHS after the
thirty-first day of December LICENSEE'S RENEWAL DATE, an
additional late filing penalty
of fifty per cent of the required fee.
(G) Foreign real estate dealer's license and each annual
renewal of the license, thirty dollars per salesman SALESPERSON
employed by
the dealer, but not less than one hundred fifty dollars;
(H) Foreign real estate salesman's SALESPERSON'S license and
each annual renewal of the license, fifty dollars.
All fees collected under this section shall be paid to the
treasurer of state. Four dollars of each such fee
shall be
credited to the real estate education and research fund.
In all cases, the fee and any penalty shall accompany the
application for THE license or, LICENSE
transfer, OR LICENSE REACTIVATION or shall accompany the filing
of the certificate of continuation in business ANNUAL RENEWAL.
The commission may establish by rule reasonable fees for
services not otherwise established by this chapter.
Sec. 4735.16. (A) Every real estate broker licensed under
this chapter shall have and maintain a definite place of business
in this state and shall erect or maintain a sign on the premises
plainly stating that the licensee is a real estate broker. If
the real estate broker maintains one or more branch offices, the
real estate broker shall erect or maintain a sign at each branch office
plainly stating that the licensee is a real estate broker.
(B)(1) Any licensed real estate broker or salesperson who
advertises to buy, sell, exchange, or lease real estate, OR TO ENGAGE IN
ANY ACT REGULATED BY THIS CHAPTER, including, but not limited to,
any licensed real estate broker or
salesperson who advertises to sell, exchange, or lease
real estate
that the licensee owns, shall be identified in the
advertisement by name
and by indicating that the licensee is a real estate broker
or real estate
salesperson. Except a real estate
salesperson who advertises the sale,
exchange, or lease of real estate that the salesperson owns
and that is not listed for sale, exchange, or lease with a real estate broker,
any real estate salesperson who advertises, as provided
in this
section, also shall indicate in the advertisement the name
of the
broker under whom the salesperson is licensed and the fact
that the salesperson's broker is
a real estate broker. The name of the broker shall be displayed
in equal prominence with the name of the salesperson in
the advertisement.
Any (2) IF ANY real estate broker or real estate
salesperson who
advertises in a manner other than as provided in this section is
guilty of violating OR THE RULES ADOPTED UNDER THIS SECTION, THAT
ADVERTISEMENT IS PRIMA FACIE EVIDENCE OF A VIOLATION UNDER division
(A)(21) of section 4735.18 of the
Revised Code.
WHEN THE SUPERINTENDENT DETERMINES THAT PRIMA FACIE EVIDENCE OF A VIOLATION
OF DIVISION (A)(21) OF
SECTION 4735.18 OF THE REVISED CODE OR ANY OF THE RULES
ADOPTED THEREUNDER EXISTS, THE SUPERINTENDENT MAY DO EITHER OF THE
FOLLOWING:
(a) INITIATE DISCIPLINARY ACTION UNDER SECTION 4735.051 of the Revised Code FOR
A VIOLATION OF DIVISION
(A)(21) OF SECTION 4735.18 OF THE
REVISED CODE, IN ACCORDANCE WITH CHAPTER 119. OF
THE REVISED CODE;
(b) PERSONALLY, OR BY CERTIFIED MAIL, SERVE A CITATION UPON THE
LICENSEE.
(C)(1) EVERY CITATION SERVED UNDER THIS SECTION SHALL GIVE NOTICE
TO
THE LICENSEE OF THE ALLEGED VIOLATION OR VIOLATIONS CHARGED AND INFORM
THE LICENSEE OF THE OPPORTUNITY TO REQUEST A HEARING IN ACCORDANCE WITH
CHAPTER 119. OF THE REVISED CODE. THE CITATION
ALSO SHALL
CONTAIN A STATEMENT OF A FINE OF TWO HUNDRED DOLLARS PER
VIOLATION, NOT TO EXCEED TWO THOUSAND FIVE HUNDRED DOLLARS PER
CITATION. ALL FINES COLLECTED PURSUANT TO THIS SECTION SHALL BE CREDITED TO
THE REAL ESTATE RECOVERY FUND, CREATED IN THE STATE TREASURY UNDER SECTION
4735.12 of the Revised Code.
(2) IF ANY LICENSEE IS CITED THREE TIMES WITHIN TWELVE
CONSECUTIVE MONTHS, THE SUPERINTENDENT SHALL INITIATE DISCIPLINARY
ACTION PURSUANT TO SECTION 4735.051 of the Revised Code FOR ANY SUBSEQUENT VIOLATION THAT
OCCURS WITHIN THE SAME
TWELVE-MONTH PERIOD.
(3) IF A LICENSEE FAILS TO REQUEST A HEARING WITHIN THIRTY DAYS OF
THE DATE OF SERVICE OF THE CITATION, OR THE LICENSEE AND THE
SUPERINTENDENT FAIL TO REACH AN ALTERNATIVE AGREEMENT, THE CITATION
SHALL BECOME FINAL.
(4) UNLESS OTHERWISE INDICATED, THE LICENSEE NAMED IN A FINAL
CITATION MUST MEET ALL REQUIREMENTS CONTAINED IN THE FINAL CITATION
WITHIN THIRTY DAYS OF THE EFFECTIVE DATE OF THAT CITATION.
(5) THE SUPERINTENDENT SHALL SUSPEND AUTOMATICALLY A LICENSEE'S
LICENSE IF THE LICENSEE FAILS TO COMPLY WITH DIVISION (C)(4) OF
THIS SECTION.
(D) A real estate broker or salesperson obtaining the
signature of a party to a listing or other agreement involved in
a real estate transaction shall furnish a copy of the listing or
other agreement to the party immediately after obtaining the
party's signature. Every broker's office shall prominently display in
the same immediate area as licenses are displayed a statement
that it is illegal to discriminate against any person because of
race, color, religion, sex, familial status as defined in
section 4112.01 of the Revised Code, national origin,
disability
as defined in that section, or ancestry in the sale or rental of
housing or residential lots, in advertising the sale or rental of
housing, in the financing of housing, or in the provision of real
estate brokerage services and that blockbusting also is illegal.
The statement shall bear the United States department of housing
and urban development equal housing logo, shall contain
the information that the broker and the broker's
salespersons are licensed by the division of real estate and that the
division can assist with any consumer complaints or inquiries, and shall
explain the
provisions of section 4735.12 of the Revised Code. The statement
shall provide the division's address and telephone number. The
Ohio real estate commission shall provide by rule for the wording
and size of the statement. The pamphlet required under section
4735.03 of the Revised Code shall contain the same statement that
is required on the statement displayed as provided in this
section and shall be made available by real estate brokers and
salespersons to their clients. The commission shall
provide the wording and size of the pamphlet.
Sec. 4735.18. (A) Subject to section 4735.32 of the
Revised Code, the superintendent of real estate, upon the superintendent's own
motion, may investigate the conduct of any licensee. Subject to
section 4735.32 of the Revised Code, the Ohio real estate commission shall,
pursuant to section 4735.051 of the Revised Code, impose disciplinary
sanctions upon any licensee who, whether or not acting in the licensee's
capacity as a real estate broker or salesperson, or in handling the licensee's
own property, is found to have been convicted of
a felony or a crime of moral turpitude, and shall, pursuant to
section 4735.051 of the Revised Code, impose disciplinary sanctions upon any
licensee who, in the licensee's capacity as a real
estate broker or salesperson, or in handling the licensee's own property, is
found guilty of:
(1) Knowingly making any misrepresentation;
(2) Making any false promises with intent to influence,
persuade, or induce;
(3) A continued course of misrepresentation or the making
of false promises through agents, salespersons, advertising, or otherwise;
(4) Acting for more than one party in a transaction
except as permitted by and in compliance with section 4735.71 of the
Revised Code;
(5) Failure within a reasonable time to account for or to
remit any money coming into the licensee's possession which belongs
to others;
(6) Dishonest or illegal dealing, gross negligence,
incompetency, or misconduct;
(7)(a) By final adjudication by a court, a violation of
any municipal or federal civil rights law relevant to the
protection of purchasers or sellers of real estate or, by final
adjudication by a court, any unlawful discriminatory practice
pertaining to the purchase or sale of real estate prohibited by
Chapter 4112. of the Revised Code, provided that such violation
arose out of a situation wherein parties were engaged in bona
fide efforts to purchase, sell, or lease real estate, in the licensee's
practice as a licensed real estate broker or salesperson;
(b) A second or subsequent violation of any unlawful
discriminatory practice pertaining to the purchase or sale of
real estate prohibited by Chapter 4112. of the Revised Code or
any second or subsequent violation of municipal or federal civil
rights laws relevant to purchasing or selling real estate whether
or not there has been a final adjudication by a court, provided
that such violation arose out of a situation wherein parties were
engaged in bona fide efforts to purchase, sell, or lease real
estate. For any second offense under this division, the
commission shall suspend for a minimum of two months or revoke
the license of the broker or salesperson. For any subsequent
offense, the commission shall revoke the license of the broker or
salesperson.
(8) Procuring a license under this chapter, for the licensee or any
salesperson by fraud, misrepresentation, or deceit;
(9) Having violated or failed to comply with any provision of sections
4735.51 to 4735.74 of the Revised Code or having willfully disregarded or
violated any other provisions of this chapter;
(10) As a real estate broker, having demanded, without reasonable cause,
other
than
from a broker licensed under this chapter, a commission to which
the licensee is not entitled, or, as a real estate
salesperson, having demanded,
without
reasonable cause, a commission to which the licensee is not entitled;
(11) Having paid commissions or fees to, or divided
commissions or fees with, anyone not licensed as a real estate
broker or salesperson;
(12) Having falsely represented membership in any real
estate professional association of which the licensee is not a
member;
(13) Having accepted, given, or charged any undisclosed
commission, rebate, or direct profit on expenditures made for a
principal;
(14) Having offered anything of value other than the
consideration recited in the sales contract as an inducement to a
person to enter into a contract for the purchase or sale of real
estate or having offered real estate or the improvements on real
estate as a prize in a lottery or scheme of chance;
(15) Having acted in the dual capacity of real estate
broker and undisclosed principal, or real estate
salesperson and undisclosed principal, in any transaction;
(16) Having guaranteed, authorized, or permitted any
person to guarantee future profits which may result from the
resale of real property or cemetery interment rights;
(17) Having placed a sign on any property offering it for
sale or for rent without the consent of the owner or the owner's
authorized agent;
(18) Having induced any party to a contract of sale or
lease to break such contract for the purpose of substituting in
lieu of it a new contract with another principal;
(19) Having negotiated the sale, exchange, or lease of any
real property directly with an owner, purchaser, lessor, or tenant knowing
that such owner, purchaser, lessor, or tenant had a written outstanding
contract granting exclusive agency in connection with such property to another
real estate broker;
(20) Having offered real property for sale or for lease
without the knowledge and consent of the owner or the owner's authorized
agent, or on any terms other than those authorized by the owner or the owner's
authorized agent;
(21) Having published advertising, whether printed, radio,
display, or of any other nature, which was misleading or
inaccurate in any material particular, or in any way having
misrepresented any properties, terms, values, policies, or
services of the business conducted;
(22) Having knowingly withheld from or inserted in any
statement of account or invoice any statement that made it
inaccurate in any material particular;
(23) Having published or circulated unjustified or
unwarranted threats of legal proceedings which tended to or had
the effect of harassing competitors or intimidating their
customers;
(24) Having failed to keep complete and accurate records
of all transactions for a period of three years from the date of
the transaction, such records to include copies of listing forms,
earnest money receipts, offers to purchase and acceptances of
them, and records of receipts and disbursements of all funds
received by the licensee as broker and incident to the licensee's transactions
as
such, and any other instruments or papers related to the
performance of any of the acts set forth in the definition of a
real estate broker;
(25) Failure of a real estate broker or salesperson to
furnish all parties involved in a real estate transaction true
copies of all listings and other agreements to which they are a
party, at the time each party signs them;
(26) Failure to maintain at all times a special or trust
bank account in a depository located in this state. The account
shall be noninterest-bearing, separate and distinct from any
personal or other account of the broker, and, except as
provided in division (A)(27) of this section, shall be used for the deposit
and maintenance of all escrow funds, security deposits, and other moneys
received by the broker in a fiduciary capacity. The name, account number, if
any, and location of the depository wherein such special or trust
account is maintained shall be submitted in writing to the
superintendent. Checks drawn on such special or trust bank accounts are
deemed to meet the conditions imposed by section 1349.21 of the Revised Code.
(27) Failure to maintain at all times a special or trust bank account in a
depository in this state, to be used exclusively for the deposit and
maintenance of all rents, security deposits, escrow funds, and other moneys
received by the broker in a fiduciary capacity in the course of managing real
property. This account shall be separate and distinct from any other account
maintained by the broker. The name, account number, and location of the
depository shall be submitted in writing to the superintendent. This account
may earn interest, which shall be paid to the property owners on a pro rata
basis.
Division (A)(27) of this section does not apply to brokers who are
not engaged in the management of real property on behalf of real property
owners.
(28) Having failed to put definite expiration dates in all
written agency agreements to which the broker is a party;
(29) Having an unsatisfied final judgment in any court of
record against the licensee arising out of the licensee's
conduct as a licensed broker or salesperson;
(30) Failing to render promptly upon demand a full and
complete statement of the expenditures by the broker or
salesperson of funds advanced by or on behalf of a party to a real
estate transaction to the broker or salesperson for the purpose of performing
duties as a licensee under this chapter in conjunction with the real estate
transaction;
(31) Failure within a reasonable time, after the receipt
of the commission by the broker, to render an accounting to and
pay a real estate salesperson the salesperson's earned share of it;
(32) Failure to notify the real estate salesperson that the licensee does
not intend to list such salesperson on the continuation in business
form;
(33) Performing any service for another constituting the
practice of law, as determined by any court of law;
(34)(33) Having been adjudicated incompetent for the purpose
of holding the license by a court, as provided in section
5122.301 of the Revised Code. A license revoked or suspended
under this division shall be reinstated REACTIVATED upon proof
to the commission of the removal of the disability.
(35)(34) Having authorized or permitted a person to act as an
agent in the capacity of a real estate broker, or a real estate
salesperson, who was not then licensed as a real estate
broker or real estate salesperson under this chapter;
(35) HAVING KNOWINGLY INSERTED OR PARTICIPATED IN INSERTING ANY MATERIALLY
INACCURATE TERM IN A DOCUMENT, INCLUDING NAMING A FALSE CONSIDERATION;
(36) HAVING FAILED TO INFORM THE LICENSEE'S CLIENT OF THE EXISTENCE OF AN
OFFER OR COUNTER OFFER OR HAVING FAILED TO PRESENT AN OFFER OR COUNTER OFFER
IN A TIMELY MANNER, UNLESS OTHERWISE INSTRUCTED BY THE CLIENT, PROVIDED THE
INSTRUCTION OF THE CLIENT DOES NOT CONFLICT WITH ANY STATE OR FEDERAL LAW.
(B) Whenever the commission, pursuant to section 4735.051
of the Revised Code, imposes disciplinary sanctions for any violation of this
section, the commission also may impose such sanctions upon the broker with
whom the salesperson is affiliated if the commission finds that the broker had
knowledge of the salesperson's actions that violated this section.
(C) The commission shall, pursuant to section 4735.051 of the Revised Code,
impose disciplinary sanctions upon any foreign real estate dealer or
salesperson who, in that capacity or in handling the dealer's or salesperson's
own property, is found guilty of any of the acts or omissions specified or
comprehended in division (A) of this section insofar as the acts or omissions
pertain to foreign real estate. If the commission imposes such sanctions upon
a foreign real estate salesperson for a violation of this
section, the commission also may suspend or revoke the license of
the foreign real estate dealer with whom the
salesperson is affiliated if the commission finds that the dealer had
knowledge of the salesperson's actions that violated this section.
(D) The commission may suspend, in whole or in part, the
imposition of the penalty of suspension of a license under this
section.
(E) The commission immediately shall notify the real
estate appraiser board of any disciplinary action taken under
this section against a licensee who also is a state-certified
real estate appraiser under Chapter 4763. of the Revised Code.
Sec. 4735.25. (A)(1) No person, other than an actual bona
fide owner selling for his THE OWNER'S own account in a single
transaction and not by way of repeated or successive transactions, or a
person excepted from obtaining a license under section 4735.01 of
the Revised Code, shall sell, lease, or otherwise deal in this
state in any foreign real estate unless the person has qualified
the foreign real estate pursuant to this section and unless one
of the following applies:
(a) The person was licensed under section 1707.15 or
1707.16 prior to October 14, 1969;
(b) The person was licensed as a foreign real estate
dealer or salesman SALESPERSON under former section 1707.331 of
the Revised Code prior to the effective date of this section, but only until
the expiration date of the license;
(c) The person is licensed under section 4735.27 or
4735.28 of the Revised Code.
(2) A licensed foreign real estate dealer or licensed
foreign real estate salesman SALESPERSON who is acting in a
fiduciary
capacity for a bona fide owner of foreign real estate in the sale
or lease of that real estate, or who is otherwise dealing in
foreign real estate in a fiduciary capacity for its bona fide
owner, in a single transaction and not by way of repeated or
successive transactions for that owner, need not qualify such
real estate under this section.
(B) Any person, other than one of the excepted persons
under division (A) of this section, desiring to sell, lease, or
otherwise deal in any foreign real estate shall file an
application with the superintendent of real estate in the form
the superintendent prescribes, which application shall set forth
the following:
(1) An exact description of the foreign real estate sought
to be sold, leased, or dealt in;
(2) A map or plat prepared by a competent surveyor showing
the boundaries and dimensions of the foreign real estate and all
lots or subdivisions of it;
(3) The names of the owners of the foreign real estate,
with a detailed statement showing the financial responsibility of
each owner, together with the post office address of each,
including street numbers or another pertinent description; and if
any such owner is a corporation or association, a copy of its
articles or certificate of incorporation or of the agreement by
which it was created, unless a copy is already on file in the
office of the secretary of state, together with proof that it is
qualified to do business in this state, if it is a foreign
corporation;
(4) A list and description of all liens and encumbrances
on the foreign real estate;
(5) A full description of all improvements or developments
of every nature to be made or promised to be made on the foreign
real estate, the cost of the improvements or developments, and
the security, if any, for their completion;
(6) A copy of any building restrictions or other
restrictions upon the use of the foreign real estate;
(7) A copy, description, or plan showing the form of
contract, method, and terms of sale, lease, or other dealing to
be used in connection with the foreign real estate;
(8) A list or schedule of all sales prices of the foreign
real estate;
(9) A list or schedule of all commissions, allowances, or
compensations in any form that have been arranged or agreed to be
paid to the applicant, and to any dealers or salesmen
SALESPERSONS, by the owner or by any person interested in the foreign
real estate;
(10) Other information that the superintendent requires.
(C) All the statements, exhibits, and documents required
by the superintendent under this section, except properly
certified public documents, shall be verified by the oath of the
applicant or of any person having knowledge of the facts, and in
such manner and form as required by the superintendent. Failure
to comply with the requests of the superintendent in this regard
shall be a sufficient reason for a refusal by the superintendent
to qualify the foreign real estate.
(D) Upon filing the application, the applicant shall pay
to the superintendent a filing fee of five hundred dollars plus
an additional one dollar for each lot, unit, parcel, or interest
included in the offering, with the aggregate fee not to exceed
two thousand five hundred dollars, and shall deposit with the
superintendent a sum the superintendent may require for the
purpose of defraying the cost of verifying the statements of the
applicant, or for the purpose of determining that the provisions
of this chapter have been and will be complied with and that the
foreign real estate will not be sold, leased, or dealt in within
this state on grossly unfair terms, or in a method or on terms
that might defraud or deceive purchasers in this state.
(E) The superintendent, through the division of real
estate OR THE SUPERINTENDENT'S DESIGNEE EMPLOYED BY THE DEPARTMENT OF
COMMERCE, may inspect and examine the foreign real estate or
investigate the applicant or the persons interested in, dealing
in, or selling, the foreign real estate. The actual cost of the
inspection or examination, including the proper proportion of the
salaries of employees of the division of real estate who conduct
it, shall be paid by the applicant and may be retained by the
superintendent out of any deposit. An itemized statement of such
cost shall be furnished to the applicant.
(F) In order either to prevent fraud in the sale of
foreign real estate or to provide security for the performance of
agreements to make improvements on it, the superintendent may
require all payments for the foreign real estate to be made to a
bank in this state, and to be impounded in that bank and held in
escrow upon the terms the superintendent reasonably requires.
(G) If the superintendent is of the opinion that the
proposed sale, lease, or disposal is not on grossly unfair terms,
that the provisions of this chapter have been complied with, and
that the foreign real estate will not be sold, leased, or dealt
in, in a method or on terms that might defraud or deceive persons
in this state, he THE SUPERINTENDENT shall allow the
qualification of the foreign
real estate for sale, lease, or other disposition on the terms
stated in the application or on other terms, calculated to
prevent fraud or deception, the superintendent approves.
Section 2. That existing sections 4735.01, 4735.02, 4735.03,
4735.05, 4735.051, 4735.06, 4735.07, 4735.08, 4735.09,
4735.10, 4735.11, 4735.12, 4735.13, 4735.14, 4735.141, 4735.15, 4735.16,
4735.18, and 4735.25 of the
Revised Code are hereby repealed.
Section 3. Notwithstanding section 4735.141 of the Revised Code as amended by
this act, all persons licensed under sections 4735.07 and 4735.09 of the
Revised Code before January 1, 2001, shall submit proof satisfactory to the
Superintendent of Real Estate that the licensee has satisfactorily completed
continuing education, as prescribed by the Ohio Real Estate Commission
pursuant
to section 4735.10 of the Revised Code and as to the number of hours required
under section 4735.141 of the Revised Code, as that section existed prior to
this act, in accordance with the appropriate time period, as follows:
(A) For continuing education that, under section 4735.141 of the Revised
Code,
as it existed prior to this act, would have been due in the year 2001, on or
before the licensee's birthday in the year 2002, and on or before the
licensee's birthday every three years thereafter;
(B) For continuing education that, under section 4735.141 of the Revised
Code,
as it existed prior to this act, would have been due in the year 2002, on or
before the licensee's birthday in the year 2003, and on or before the
licensee's birthday every three years thereafter;
(C) For continuing education that, under section 4735.141 of the Revised
Code,
as it existed prior to this act, would have been due in the year 2003, on or
before the licensee's birthday in the year 2004, and on or before the
licensee's birthday every three years thereafter.
Section 4. Notwithstanding section 4735.14 of the Revised Code,
for the license renewal period beginning January 1, 2001, and ending December
31, 2001, licensees shall
pay prorated license renewal fees on or before the licensee's
birthday in the year 2001. Beginning January 1, 2002, and every
year thereafter, license renewal fees shall be paid on or before
the licensee's birthday in the amount specified in section 4735.14
of the Revised Code. The prorated license renewal fee shall be
paid as follows:
| | Salesperson |
| Broker license | license renewal |
Month of birth | renewal fee | fee |
January | $49.00 | $39.00 |
February | $53.00 | $42.00 |
March | $57.00 | $45.00 |
April | $61.00 | $48.00 |
May | $65.00 | $51.00 |
June | $69.00 | $54.00 |
July | $73.00 | $57.00 |
August | $77.00 | $60.00 |
September | $81.00 | $63.00 |
October | $85.00 | $66.00 |
November | $89.00 | $69.00 |
December | $93.00 | $72.00 |
Section 5. Sections 4735.07 and 4735.141 of the Revised Code are presented in
this act
as composites of the section as amended by both
Am. Sub. H.B. 18 and Am. Sub. H.B. 283 of the 123rd General Assembly,
with the new language of neither of the acts shown in capital letters.
This is in recognition of the principle stated in division (B) of section
1.52 of the Revised Code that such amendments are to be
harmonized where not substantively irreconcilable and constitutes
a legislative finding that such is the resulting version in
effect prior to the effective date of this act.
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