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(124th General Assembly)
(Substitute House Bill Number 272)
AN ACT
To amend sections 4735.01, 4735.02, 4735.06, 4735.07,
4735.09, 4735.10,
4735.12,
4735.13, 4735.14,
4735.141, 4735.15,
4735.18, and 4735.20 and
to
enact sections
4735.022
and 4735.052 of the Revised
Code to
allow
a real estate broker
licensed in
another
state to
transact business on
commercial
property
in Ohio in
cooperation with an
Ohio
licensed real
estate
broker, to modify conditions
under which
compensation for real estate
transactions may be
paid, to permit the Ohio Real
Estate Commission to
assess a civil penalty against
a person operating
without a license required under
the Real Estate
Broker Law, and to implement
a
three-year license
and
renewal system for real
estate salespersons and
brokers not later than
January 1, 2004.
Be it enacted by the General Assembly of the State of Ohio:
SECTION 1. That sections 4735.01, 4735.02, 4735.06, 4735.07,
4735.09, 4735.10,
4735.12,
4635,13, 4735.14, 4735.141, 4735.15,
4735.18, and 4735.20
be
amended and sections 4735.022 and 4735.052
of the
Revised Code
be enacted 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 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; (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,
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 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
engages in the sale of
manufactured homes
as
defined in division (C)(4) of section
3781.06 of the Revised
Code, or of mobile homes as defined in
division (O) of
section
4501.01 of the Revised Code, provided the
sale does not
include
the negotiation,
sale, lease, exchange, or
assignment of any
interest in real estate; (7) As a person who engages in the sale of commercial real
estate pursuant to the
requirements of section 4735.022 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 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
or rules adopted
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
or rules adopted 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.
(R) "Commercial real estate" means any parcel of
real estate
in this state other than real estate
containing one to four
residential units. "Commercial real
estate" does not include
single-family residential units such as
condominiums, townhouses,
manufactured homes, or homes in a
subdivision when sold, leased,
or otherwise conveyed on a
unit-by-unit basis, even when those
units are a part of a larger
building or parcel of real estate
containing more than four
residential units. (S) "Out-of-state commercial broker" includes any person,
partnership, association, limited liability company, limited
liability partnership, or corporation that is licensed to do
business as a real estate broker in a jurisdiction other than
Ohio. (T) "Out-of-state commercial salesperson" includes any
person affiliated with an out of state commercial broker who is
not licensed as a real estate salesperson in Ohio.
Sec. 4735.02.
No
Except as provided in section 4735.022 of
the Revised Code, 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
placed in inactive status, suspended, or
revoked and
who has not
thereafter reactivated the license or received a new
license.
Sec. 4735.022. (A) An out-of-state commercial broker, for a
fee, commission, or other valuable consideration, or in the
expectation, or upon the promise of receiving or collecting a fee,
commission, or other valuable consideration, may perform those
acts that require a license under this chapter, with respect to
commercial real estate, provided that the out-of-state commercial
broker does all of the following:
(1) Works in cooperation with an Ohio real estate broker who
holds a
valid, active license issued under this chapter;
(2) Enters into a written agreement with the Ohio broker
described in division (A)(1) of this section that includes the
terms of cooperation and
compensation and a statement that the
out-of-state commercial
broker and its agents will agree to adhere
to
the laws of Ohio;
(3) Furnishes the Ohio broker described in division (A)(1)
of this section with a copy of
the out-of-state commercial
broker's current certificate of good
standing from any
jurisdiction where the out-of-state commercial
broker maintains an
active real estate license;
(4) Files an irrevocable written consent with the Ohio
broker described in division (A)(1) of this section that legal
actions arising out of the conduct of the
out-of-state commercial
broker or its agents may be commenced
against the out-of-state
commercial broker in the court of proper
jurisdiction of any
county in Ohio where the cause of action
arises or where the
plaintiff resides;
(5) Includes the name of the Ohio broker described in
division (A)(1) of this section on all
advertising in accordance
with section 4735.16 of the Revised
Code;
(6) Deposits all escrow funds, security deposits, and other
money received by either the out-of-state commercial broker or
Ohio broker described in division (A)(1) of this section in trust
or special accounts maintained by the Ohio
broker;
(7) Deposits all documentation required by this section and
records and documents related to the transaction with the Ohio
broker described in division (A)(1) of this section. The Ohio broker described in division (A)(1) of this section
shall retain the documentation that is provided by the
out-of-state commercial broker as required under division (A)(7)
of this
section, and the records and documents related to a
transaction,
for a period of three years after the date the
documentation is
provided, or the transaction occurred, as
appropriate.
(B) An out-of-state commercial salesperson may perform
those acts that require a real estate salesperson license under
this chapter with respect to commercial real estate, provided that
the out-of-state commercial salesperson meets all of the following
requirements:
(1) Is licensed with and works under the direct supervision
of the out-of-state commercial broker;
(2) The out-of-state commercial broker with whom the
salesperson is associated meets all of the requirements of
division (A) of this section;
(3) Provides the Ohio broker who is working in cooperation
with the out-of-state broker with whom the salesperson is
associated, with a copy of the
commercial salesperson's current
certificate of good standing from
the jurisdiction where the
out-of-state commercial salesperson
maintains an active real
estate
license in connection with the out-of-state commercial
broker;
(4) Collects money, including commissions, deposits,
payments, rentals, or otherwise, only in the name of and with the
consent of the out-of-state commercial broker under whom the
out-of-state commercial salesperson is licensed.
(C) By filing a consent-to-jurisdiction document as
described under
division (A)(4) of this section, the
person giving
the consent makes and constitutes the
secretary of
state as an
agent for service of process in this
state including
service of
summonses and subpoenas. Service of process upon
any person
may
be initiated by leaving with the secretary of
state or an
assistant secretary of state four copies of the
process, an
affidavit stating the address of the
person given on the
consent-to-jurisdiction document, and a fee of
five dollars. Upon
receipt of the process, affidavit, and fee,
the secretary of state
immediately shall give notice of the process to the person,
at the
address given
in the affidavit and forward to that address
by
certified mail,
return receipt requested, a copy of the
process.
Service is
considered to be complete upon the mailing of
the
notice and copy of
process in accordance with this division.
(D) A person, partnership, association, limited liability
company, limited liability partnership, or corporation licensed in
a jurisdiction where there is no legal distinction between a real
estate broker license and a real estate salesperson license must
meet the requirements of division (A) of this section before
engaging in any activity described in this section that requires a
real estate broker
license in this state.
Sec. 4735.052. (A) Upon receipt of a written complaint or
upon the superintendent’s own motion, the superintendent may
investigate any person that has allegedly violated section 4735.02
or 4735.25 of the Revised Code, except that the superintendent
shall not initiate an investigation, pursuant to this section, of
any person who held a valid license under this chapter any time
during the twelve months preceding the date of the alleged
violation. (B) If, after investigation, the superintendent determines
there exists reasonable evidence of a violation of section 4735.02
or 4735.25 of the Revised Code, within seven business days after
that determination, the superintendent shall send the party who is
the subject of the investigation, a written notice, by regular
mail, that includes all of the following information: (1) A description of the activity in which the party
allegedly is engaging or has engaged that is a violation of
section 4735.02 or 4735.25 of the Revised Code; (2) The applicable law allegedly violated;
(3) A statement informing the party that a hearing
concerning the alleged violation will be held at the next
regularly scheduled meeting of the Ohio real estate commission,
and a statement giving the date and place of that meeting; (4) A statement informing the party that the party or the
party’s attorney may appear in person at the hearing and present
evidence and examine witnesses appearing for and against the
party, or the party may submit written testimony stating any
positions, arguments, or contentions. (C) The commission shall hear the testimony of all parties
present at the hearing and consider any written testimony
submitted pursuant to division (B)(4) of this section, and
determine if there has been a violation of section 4735.02 or
4735.25 of the Revised Code. If the commission finds that a
violation has occurred, the commission may assess a civil penalty,
in an amount it determines, not to exceed one thousand dollars per
violation. Each day a violation occurs or continues is a separate
violation. The commission shall determine the terms of payment.
The commission shall maintain a transcript of the proceedings of
the hearing and issue a written opinion to all parties, citing its
findings and grounds for any action taken. (D) Civil penalties collected under this section shall be
deposited in the real estate recovery fund, which is created in
the state treasury under section 4735.12 of the Revised Code. (E) If a party fails to pay a civil penalty assessed
pursuant to this section within the time prescribed by the
commission, the superintendent shall forward to the attorney
general the name of the party and the amount of the civil penalty,
for the purpose of collecting that civil penalty. In addition to
the civil penalty assessed pursuant to this section, the party
also shall pay any fee assessed by the attorney general for
collection of the civil penalty.
Sec. 4735.06. (A) Application for a license as a real
estate broker shall be made 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. 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
includes the fee for the initial year of the licensing
period, if a 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.
In the case of
issuance of a three-year license, upon passing the examination, or
upon waiver of the examination requirement, the applicant shall
submit an additional fee of ninety-eight dollars, which fee
includes the fee for the second and third year of the licensing
period, except that the superintendent shall prorate that
additional fee based upon the number of years remaining in a real
estate salesperson's licensing period. (C) Four dollars of each
application 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)(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 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'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 applicant was
licensed under this chapter, violated any provision of, or any
rule adopted
pursuant to, this chapter, or, if the applicant has
violated
any 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) 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
August 1, 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
divisions
(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.
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. (D) Examinations 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) of this
section and with
the other specific requirements of this section.
An applicant who
has completed the requirements of division
(B)(6) of this section
at the time of application
shall be
examined 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
requirements of this section in the case of
an application from a
nonresident real
estate broker 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)(1) No later than twelve months after the date of
issue
of a real estate broker's license to a licensee, the licensee
shall
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. That instruction shall include, but
not be limited
to, current issues in managing a real estate
company or office.
If the required proof of completion is not
submitted to the
superintendent within
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
superintendent. The broker's
license shall not 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 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 (G)(1) of this section, the license of
a
real
estate salesperson associated with that broker correspondingly
is
suspended pursuant to division
(B)(H) 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 (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. 4735.09. (A) Application for a license as a real
estate salesperson shall be made 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 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. (B) A fee of forty-nine dollars shall
accompany the
application, which fee
shall include the
includes the fee for the
initial year of the licensing period, if a 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.
In the case of issuance of a
three-year license, upon passing the examination, or upon waiver
of the examination requirement, the applicant shall submit an
additional fee of seventy-eight dollars, which fee includes the
fee for the second and third year of the licensing period. Four
dollars of each
application 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 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
requirements of this
section in the case of an applicant who is a
licensed
real estate salesperson in another state
pursuant to a
reciprocity agreement with the licensing authority of
the
state
from which the applicant holds a valid real estate salesperson's
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) 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) 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 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.
If proof of completion of the required
instruction is not
submitted within 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
superintendent. 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 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 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)
or (7) of this section. An applicant who
has
completed the
classroom instructional requirements of division
(F)(6) or (7) of
this section at the time of
application shall
be
examined no later
than
twelve months after the
applicant is notified of the
applicant's admission to
the 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 on deposit or a
salesperson's license on an inactive status for an indefinite
period. (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, and revocation of
licenses, other sanctions that may be imposed for violations of
this
chapter,
the conduct of hearings related to these actions,
and the
process of reactivating a license; (b)
By not later than January 1, 2004, a three-year license
and a three-year license renewal system; (c) 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)(d) 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)(e) 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 notice
(f) Notice of
renewal forms and filing
deadlines;
(f)(g) Special assessments under division (A) of section
4735.12 of the Revised Code.
(B) The commission 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 companies, 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
appropriate waivers pursuant
to division (E) of section 4735.07
and section 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 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. 4735.12. (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
July
of
each year.
The commission, in accordance with rules adopted under
division
(A)(2)(f)(g) of section 4735.10 of the Revised Code,
shall
impose a special
assessment not to exceed ten dollars
annually
per year for each year of a licensing period 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
per year for each year of a licensing period 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 that only a licensed real
estate
broker or licensed real
estate salesperson is authorized to
perform as specified 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, court costs
may be recovered
from the fund, and, if the superintendent authorizes
the recovery
of 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) 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's license is
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 that occur subsequent
to the time of
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. The
superintendent shall 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
the broker's or
salesperson's account. A discharge in bankruptcy does
not relieve
a person from the suspension and requirements for
reactivation
provided in this section unless the underlying judgment has been
included
in the discharge and has not been reaffirmed by the
debtor. (F) 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 salesperson shall
be
mailed to and remain in the possession of the licensed broker
with
whom the salesperson is or is to be associated until
the licensee
places the license on inactive status or
until the salesperson
leaves the
brokerage or is terminated. The broker shall
keep each
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 salesperson with the
broker, the broker shall return
the salesperson's
license to the superintendent of real estate. 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
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 notice in writing to the superintendent, whereupon
the
superintendent shall issue new licenses for the unexpired
period
without charge. If a broker changes a
business location
without
giving the required notice and without receiving new
licenses 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
with
another real estate broker in the capacity of a real estate
salesperson, the broker shall apply to
the superintendent to
deposit the broker's real estate
broker's license with the
superintendent and for the
issuance of a real estate 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 and a
fee of twenty-five dollars for the real
estate
salesperson's license. Four dollars of
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
salesperson's license to the applicant. Any license
so deposited with the superintendent
shall be subject to this
chapter. A broker who intends to deposit
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
salespersons associated with 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, the broker
shall notify
the superintendent of 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 such broker shall not have any real estate
salespersons
associated with the
broker. (G) If a real estate broker or salesperson enters the
armed
forces, the broker or salesperson may place
the broker's or
salesperson's license on deposit with the Ohio real
estate
commission. The licensee shall not be required to renew the
license
annually until the renewal
date that follows the date of
discharge from the armed forces. 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 the licensee is in the armed forces shall
satisfy the
commission that the licensee has complied with the
continuing
education requirements
within twelve months of the
licensee's discharge. The
commission shall
notify the licensee of
the licensee's obligations under
section 4735.141 of the Revised
Code at the time the licensee
applies for reactivation of the
licensee's license.
Sec. 4735.14. (A) Each license issued under this chapter,
shall be valid without further recommendation or examination
until
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)(f) of section 4735.10 of the Revised Code,
a 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
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 notice of renewal on or
before
the filing deadline of each
ensuing year shall be
suspended
automatically without the taking of any action by
the
superintendent. A suspended license
may be reactivated within
twelve months of
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
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)(f) 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 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
14, 1999, shall submit, on or
before the licensee's
birthday
occurring three years after June 30, 1999,
and
on or before the
licensee's birthday every three years thereafter,
proof
satisfactory to the superintendent of real estate
that the
licensee has satisfactorily
completed 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 twelve months from the date the
license
was
suspended, the license shall be revoked automatically without the
taking of any action by the superintendent. (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)(H) 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 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.
(A) The fees for
branch office licenses,
transfers, annual
renewals, late
filings, and foreign real estate
dealer and salesperson
licenses
reactivation or transfer of a
license shall be as follows: (A) Branch office license, eight dollars;
(B)(1) 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)(2) Reactivation or transfer of a license by a real
estate salesperson,
twenty dollars;
(D) Annual renewal.
(B) The fees for a branch office license, license renewal,
late filing, and foreign real estate dealer and salesperson
license are as follows per year for each year of a licensing
period: (1) Branch office license, eight dollars; (2) Renewal of a real
estate 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
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
salespersons associated with the
broker, an additional fee
of sixty-four dollars shall be assessed
to the
brokerage. For every additional ten real
estate
salespersons or fraction of that number, the
brokerage assessment
fee shall
be increased in
the amount of thirty-seven
dollars. (E) Annual renewal
(3) Renewal of
a real estate
salesperson's license, thirty-nine dollars;
(F) Annual renewal
(4) Renewal of a real
estate broker's or
salesperson's
license filed within twelve months after the
licensee's renewal date, an
additional late filing penalty
of
fifty per cent of the required fee;
(G)(5) Foreign real estate dealer's license and each
annual
renewal of the license, thirty dollars per salesperson
employed by
the dealer, but not less than one hundred fifty dollars;
(H)(6) Foreign real estate 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, except
that for fees that are assessed only once every three years,
twelve dollars of each triennial 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, license
transfer, or license
reactivation or shall accompany the filing
of the
annual renewal. The commission may establish by rule reasonable fees for
services not otherwise established by this chapter.
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
Except as permitted under section 4735.20 of the
Revised Code, having paid commissions or fees to, or divided
commissions or fees with, anyone not licensed as a real estate
broker or salesperson
under this chapter or anyone not operating
as an out-of-state commercial real estate broker or salesperson
under section 4735.022 of the Revised Code; (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; (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 records required pursuant to divisions
(C)(4) and (5) of section 4735.20 of the Revised Code, 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) Performing any service for another constituting the
practice of law, as determined by any court of law; (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 reactivated upon proof
to the commission of the
removal of the disability. (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
or who was not then
operating as an out-of-state commercial real estate broker or
salesperson under section 4735.022 of the Revised Code; (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. 4735.20. (A)
No
Except as provided in divisions (B),
(C), and (G) of this section, no licensed real estate broker or
licensed foreign real estate dealer shall pay a commission, fee,
or other compensation for
performing any of the acts specified in
section 4735.01 of the
Revised Code to any person who is not a
licensed real estate
broker or a licensed real estate salesperson
or to any person who is
not a licensed foreign real estate dealer
or a licensed foreign
real estate salesperson, provided that a. (B) A licensed real estate broker
or licensed foreign real
estate dealer may pay a commission to a
licensed real estate
broker or licensed foreign real estate
dealer of another state and
may receive a commission from a
licensed real estate broker or
licensed foreign real estate
dealer of another state, but only
when done in accordance with rules adopted by the Ohio real estate
commission pursuant to section 4735.10 of the Revised Code.
A
violation of this division shall be a
cause for imposing
discriplinary sanctions in accordance with the proceedings
specified in sections 4735.15 to 4735.18 of the Revised Code. (B)(C) A licensed real estate broker may pay all or part of
a fee, commission, or other compensation earned by an affiliated
licensee to a partnership, association, limited liability company,
limited liability partnership, or corporation that is not licensed
as a real estate broker on the condition that all of the following
conditions are satisfied:
(1) At least one of the partners, members, officers, or
shareholders of the unlicensed partnership, association, limited
liability company, limited liability partnership, or corporation
holds a valid and active license issued under this chapter. (2) At least one of the partners, members, officers, or
shareholders of the unlicensed partnership, association, limited
liability company, limited liability partnership, or corporation
is the affiliated licensee who earned the fee, commission, or
other compensation. (3) The unlicensed partnership, association, limited
liability company, limited liability partnership, or corporation
does not engage in any of the acts specified in division (A) of
section 4735.01 of the Revised Code. (4) The broker verifies that the affiliated licensee complies
with divisions (C)(1) and (2) of this section and keeps a record
of this verification for a period of three years after the date of
verification. (5) The broker keeps a record of all of the following
information for each transaction, for a period of three years
after the date of the transaction: (a) The name of the affiliated licensee who earned the fee,
commission, or other compensation; (b) The amount of the fee, commission, or other compensation
that was earned; (c) The name of the unlicensed partnership, association,
limited liability company, limited liability partnership, or
corporation to which the broker paid the affiliated licensee's
fee, commission, or other compensation. (D) Compliance with division (C) of this section does not
relieve a broker described in that division of any obligations to
supervise an affiliated licensee, or of any other requirements of
this chapter or rules adopted pursuant to this chapter. (E) Compliance with division (C) of this section does not
render a broker described in that division or an affiliated
licensee exempt from sections 4735.051, 4735.18, or 4735.32 of the
Revised Code, or immune from personal liability in a civil action
against the broker or affiliated licensee for a violation of this
chapter. (F) No broker shall pay a fee, commission, or other
compensation that is due to an affiliated licensee to a
third-party creditor of the affiliated licensee. (G) Any owner of any interest in foreign real estate may
refer a prospective buyer to the person who sold the owner that
foreign real estate with the expectation of receiving valuable
consideration, if all of the following conditions are satisfied: (1) The person who sold the owner that foreign real estate
is selling qualified foreign real estate pursuant to section
4735.25 of the Revised Code. (2) Any fee, commission, or other valuable consideration
promised or collected during any period consisting of twelve
consecutive months does not exceed one thousand dollars. (3) The owner does not engage in referring prospective
buyers of foreign real estate pursuant to this section in the
ordinary course of business or as a regular business practice.
(4) The owner does not show the foreign real estate, discuss
terms or conditions of purchasing the foreign real estate, or
otherwise participate in negotiations with regard to the offering
or sale of the foreign real estate. (5) If a foreign real estate transaction is consummated with
a buyer who was referred by the owner to the person who sold the
owner that foreign real estate, the occurrence of the referral
shall be disclosed by the person who sold the owner that foreign
real estate. (H) The suspension or revocation of a real estate broker's
or foreign real estate dealer's license automatically shall
suspend every real estate salesperson's or foreign real estate
salesperson's license granted to any person by virtue
of
association with the broker or dealer whose license has been
suspended or revoked, pending a change of broker or dealer and
the
issuance of a new license. Such new license shall be issued
without charges, if granted during the same year in which the
original license was granted.
(I) A violation of this section is cause for imposing
disciplinary sanctions in accordance with the proceedings
specified in sections 4735.051, 4735.18, and 4735.32 of the
Revised Code. (J) For purposes of this section, "affiliated licensee"
means a person who holds a valid and active license issued under
this chapter and who is associated with the broker that is paying
a fee, commission, or other compensation at the time that that
fee, commission, or other compensation is earned.
SECTION 2. That existing sections 4735.01, 4735.02, 4735.06,
4735.07, 4735.09,
4735.10,
4735.12, 4735.13, 4735.14, 4735.141,
4735.15,
4735.18,
and 4735.20 of the Revised Code are hereby
repealed.
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