Chapter 1301:5-1 Licensing

1301:5-1-01 Prescribing the procedure of the Ohio real estate commission, department of commerce, state of Ohio, in giving public notice, as required by law, of intention to consider adopting, amending or rescinding a rule or regulation.

(A) The commission, in giving public notice as to the adoption, amendment, or rescission of any rule required to be adopted under Chapter 119. of the Revised Code, shall publish a notice, at least once, in the register of Ohio, and in such other publications as the commission may determine from time to time. The notice shall appear at least thirty days prior to the date set for the hearing of the proposed action on any such rule. The notice shall meet the requirements of division (A) of section 119.03 of Revised Code.

(B) Ohio real estate commission shall be authorized to give additional notice of such public hearing as it deems necessary; however, the giving of such additional notice shall not be mandatory and the failure to give notice by any means other than as specified above (A) shall not in any way invalidate any action which may be taken by the Ohio real estate commission.

R.C. 119.032 review dates: 06/25/2012 and 06/30/2016
Promulgated Under: 119.03
Statutory Authority: 4735.10
Rule Amplifies: 4735.10
Prior Effective Dates: 12/31/1975, 12/17/2001, 01/20/2008

1301:5-1-02 Advertising.

(A) Every real estate broker, or real estate salesperson, acting in a capacity as such, who in advertising of any nature performs or offers to perform an act contained in section 4735.01 of the Revised Code or in handling his own property, whether held by deed, option or otherwise, shall be identified in such advertisement by name .

(B) Name identification in advertising by a licensee shall consist only of the name of the person, partnership, corporation, limited liability company, limited liability partnership or association as it appears on the license issued thereto by the division of real estate, except as herein otherwise provided.

(1) An individual licensee may use the following in advertisements:

(a) A commonly accepted derivative of the licensee's first name;

(b) The licensee's first name abbreviated as an initial with the licensee's full middle name as it appears on the license;

(c) The licensee's first and middle name as it appears on the license abbreviated as an initial;

(d) A nickname in parenthesis or quotation marks with the full licensed name.

(2) Where a person, partnership, corporation, limited liability company, limited liability partnership or association which is a real estate broker has received the approval of the superintendent to conduct business under a trade name, such trade name as it appears on the license issued by the division shall be the identifying name used by such person, partnership, corporation, limited liability company, limited liability partnership or association in all advertising.

(3) Words or abbreviations appearing on a real estate broker's license to indicate the legal framework under which the licensee conducts business, such as "Inc." or "Co.", are not required to appear in the advertising of such licensee. The words "Realty" or "Real Estate," or the authorized use of trade names or insignia indicating membership in a real estate organization, although not part of the name, may be used by such brokerages in advertising.

(C) All internet advertising of real estate services as defined in section 4735.01 of the Revised Code shall disclose the name of the broker or brokerage on every viewable web page of the website, except as herein otherwise provided. For purposes of this rule, a web page is one that may or may not scroll beyond the borders of the screen.

(1) When advertising in electronic messages of limited information or characters a licensee must provide a direct link to a display that is in compliance with paragraph (C) of this rule.

(2) When advertising on an internet website not owned or controlled by the licensee or a brokerage with which the licensee is affiliated and that internet website's terms of use limit the licensee's ability to comply with paragraph (C) of this rule, the licensee must provide a direct link to a display that is in compliance with paragraph (C) of this rule on every viewable web page of the website.

(D) Information on an internet website maintained by a licensee which becomes outdated or expired, shall be updated within fourteen days of the information becoming outdated or expired. Each website maintained by a licensee shall disclose the date upon which the information contained therein was most recently updated. If a licensee's website is maintained on the licensee's behalf by a third party, the licensee shall provide to the third party, a timely written notice, by mail, fax or electronic means, of any updates to outdated or expired information, so that such updates may be accomplished in accordance with this paragraph. A licensee who provides such timely notice shall not be in violation of this paragraph, if the third party fails to effect a requested change as notified.

(E) The requirements of this rule only apply to advertising, or information on a website, that is within the licensee's ownership and/or direct control. No licensee shall be responsible for the accuracy of information taken from the licensee's website, or other advertising, and placed on a website, or in other advertising, that is outside the licensee's ownership and/or direct control.

(F) A licensee shall not advertise or alter any information regarding a listing of any property, that is not listed for sale, lease, or exchange with the licensee's broker or brokerage, unless the

(1) The licensee has first secured written permission of the owner or the owner's authorized agent and fully discloses in the advertisement the name of the listing broker or brokerage as provided in paragraph (G)(2) of this rule.

(2) Where such permission is granted, a licensee advertising property, that is not listed with the licensee's broker or brokerage, shall disclose that fact, in the same or larger size type as the type used to describe the property, and the name of the listing broker or brokerage.

(3) For purposes of this division, the term alter shall not include limiting informational parts of a listing, provided that by such limitation, the information is not inaccurate or misleading.

(G) For purposes of this rule, the term advertising or advertisement means any manner, method or activity by which a licensed real estate broker or salesperson makes known to the general public properties for sale or lease or any services for which a real estate license is required, through the use of, including but not limited to ;

(1) Newspapers,

(2) Magazines,

(3) Radio,

(4) Television,

(5) Signs,

(6) Internet websites,

(7) Unsolicited mail,

(8) Voicemail,

(9) Email,

(10) Facsimile transmissions,

(11) Social networking sites,

(12) Blogs,

(13) Business cards,

(14) Property listing data base service.

(H) The term advertising or advertisement does not include forms of private communication between a licensee and a client, customer or prospective client, including but not limited to the dissemination of information about properties available for purchase or lease, private mail, voicemail, email, password protected websites or facsimile transmissions, provided such communications are initiated at the request of a client, customer or prospective client.

(I) The name of the broker shall be displayed in equal prominence with the name of the salesperson in all advertising, including internet websites, that are within the ownership or direct control of the licensee or the brokerage with which the licensee is affiliated. A licensee shall not be considered to have violated this rule if the terms of use or the format of a website or other advertising medium not owned or controlled by the licensee does not allow the licensee to control or direct the size and prominence of the brokerage and salesperson's names.

Effective: 01/01/2013
R.C. 119.032 review dates: 06/25/2012 and 06/30/2016
Promulgated Under: 119.03
Statutory Authority: 4735.10
Rule Amplifies: 4735.10 , 4735.16
Prior Effective Dates: 12/31/1975, 12/14/1981, 1/4/1988, 4/1/2000, 11/16/2001, 6/21/2002, 07/01/2007

1301:5-1-03 Regarding licenses.

(A) In accordance with sections 4735.02 to 4735.99 of the Revised Code, there shall be one real estate broker's license issued to an individual, a corporation, a partnership, limited liability corporation, limited liability partnership or an association.

(B) If a broker member of a partnership, association, limited liability corporation, limited liability partnership or corporation, desires to affiliate with another partnership, association, limited liability corporation, limited liability partnership or corporation, or engage in business as an individual, the broker must surrender the broker's license and make application for transfer.

(C) For purposes of section 4735.06 of the Revised Code, an applicant who is a corporation or limited liability company must have at least one individual broker affiliated with the corporation or limited liability company. This individual broker must be a member or officer of the corporation or limited liability company. Said individual broker shall perform the functions of a real estate broker solely on behalf of and in the name of the corporation or limited liability company. No corporation or limited liability company shall maintain a valid real estate broker's license without at least one individual broker affiliated with said corporation or limited liability company.

(D) All members or officers of a corporation or limited liability company which is applying for a real estate broker's license who are not individually licensed as a real estate broker shall submit to the division of real estate an affidavit stating that the member or officer is not authorized to nor will act as a real estate broker for the corporation or limited liability company.

(E) For purposes of section 4735.06 of the Revised Code, an applicant who is a partnership or limited liability partnership must have at least one individual broker affiliated with the partnership or limited liability partnership. This individual broker must be a general partner of the partnership or limited liability partnership. Said individual broker shall perform the functions of a real estate broker solely on behalf of and in the name of the partnership or limited liability partnership applicant. No partnership or limited liability partnership shall maintain a valid real estate broker's license without at least one individual broker affiliated with the partnership or limited liability partnership who is a general partner.

(F) All general partners or limited partners of a partnership or limited liability partnership which is applying for a real estate broker's license who are not individually licensed as a real estate broker shall submit to the division of real estate an affidavit stating that the general partner or limited partner is not authorized to nor will act as a real estate broker for the partnership or limited liability partnership.

(G) For the purposes of section 4735.06 of the Revised Code, an applicant who is an association must have at least one individual broker affiliated with the association. This individual broker must be a member of the association. Said individual broker shall perform the functions of a real estate broker solely on behalf of and in the name of the association. No association shall maintain a valid real estate broker's license without at least one individual broker affiliated with said association.

(H) All members of an association which is applying for a real estate broker's license who are not individually licensed as a real estate broker shall submit to the division of real estate an affidavit stating that the member is not authorized nor will act as a real estate broker for the association.

Effective: 01/01/2013
R.C. 119.032 review dates: 06/25/2012 and 06/30/2016
Promulgated Under: 119.03
Statutory Authority: 4735.10
Rule Amplifies: 4735.06 , 4735.08 , 4735.10 , 4735.13
Prior Effective Dates: 12/31/1975, 8/3/1987, 9/24/2000

1301:5-1-04 Applications.

(A) The signature on any application may be written by hand or be an electronic signature, as defined by division (H) of section 1306.01 of the Revised Code.

(B) Upon notice from the division of real estate that an application for initial licensure is incomplete or incorrect as filed, the applicant shall within thirty days of the date of the last such notice submit to the division a corrected application or the additional information requested.

(C) Failure to timely submit such corrected application or additional information shall constitute just cause for the superintendent to impose a forfeiture of the application fee pursuant to section 4735.06 or 4735.09 of the Revised Code.

(D) If the application fee check or draft instrument remitted by an applicant for licensure is returned to the division unpaid for any reason, that application shall be considered incomplete and automatically be rejected or approval withdrawn, unless the applicant, within fifteen days after the mailing of a notice notifying the applicant of such insufficiency, submits the fee and a one-hundred-dollar fee to the superintendent. If the applicant does not submit both fees within that time period, or if any check or other draft instrument used to pay either of those fees is returned to the superintendent unpaid by the financial institution upon which it is drawn for any reason, the application shall be denied or approval withdrawn.

If the applicant has been issued a license before the application fee check or draft instrument is returned unpaid to the division for any reason, the licensee shall be subject to section 4735.182 of the Revised Code.

(E) Any real estate broker who terminates sponsorship of an applicant for initial licensure shall give the division and such applicant notice thereof in writing.

(1) An applicant not yet approved by the division to sit for the real estate salesperson examination shall within sixty days of the date of notice submit to the division a corrected application with the sponsorship of a new real estate broker. Failure to timely submit such corrected application shall constitute just cause for the superintendent to impose a forfeiture of the application fee pursuant to section 4735.09 of the Revised Code.

(2) An applicant approved by the division to sit for the examination shall be permitted to take the examination. The division shall only issue a new license when the applicant both passes the salesperson examination and submits to the division the sponsorship of a new real estate broker.

Effective: 01/01/2013
R.C. 119.032 review dates: 06/25/2012 and 06/30/2016
Promulgated Under: 119.03
Statutory Authority: 4735.10
Rule Amplifies: 4735.06 , 4735.09
Prior Effective Dates: 12/31/1975, 4/8/1985, 9/24/2000, 3/26/2007, 02/02/2010

1301:5-1-05 Examinations.

(A) An applicant must take the real estate examination in accordance with the instructions provided by the testing vendor. The applicant shall have twelve months from the date the division notifies the testing vendor of the applicant's testing eligibility to pass both portions of the examination.

The applicant must notify the division of any change in application status, including a change of name or address, that occurs during the twelve month eligibility period or any change that would affect the fitness of the applicant to take the examination, including but not limited to, a felony conviction, or conviction for crime involving moral turpitude.

(B) The applicant for the real estate broker license shall submit a one hundred dollar application processing fee payable to the division with each application submitted. All applicants shall submit a separate examination fee payable to the testing vendor to be seated for the real estate broker examination.

(C) The applicant for the real estate sales license shall submit a sixty dollar application processing fee payable to the division with each application submitted. All applicants shall submit a separate examination fee payable to the testing vendor to be seated for the real estate sales examination.

(D) The content of the examination will be segmented into one portion on national law comprising two-thirds of the examination, and one portion on Ohio state law, comprising the remaining one-third of the examination. The broker license applicant must achieve a scaled score of at least seventy-five per cent on each portion of the examination in order to be considered as passing both portions. The salesperson license applicant must achieve a scaled score of at least seventy per cent on each portion of the examination in order to be considered as passing both portions.

If the applicant achieves a passing scaled score on one portion of the examination, but not both, then the applicant need only retake and pass the failed portion to achieve complete passage of the examination. To retake the failed portion(s), the applicant must reapply and remit a new application processing fee payable to the division. The applicant must also remit the examination fee payable to the testing vendor upon retaking the examination.

(E) Examinations fees shall be set forth in the agreement between the superintendent and the testing vendor.

(F) An applicant for licensure will have only the twelve month eligibility period to successfully pass both portions of the examination. If the applicant passes one portion and fails the other, the portion of the examination passed shall remain valid for the duration of the eligibility period. If the applicant fails to retake and/or pass any failed portion of the examination within the eligibility period, the portion previously passed shall be considered invalid and the applicant's file shall be closed. An applicant for licensure must then submit a new application together with a new application processing fee payable to the division and a new examination fee payable to the testing vendor. The applicant must also retake both portions of the examination.

(G) Each applicant shall bring to the examination one form of government issued photo identification and any other form of identification required by the testing vendor. No applicant shall be admitted to the examination unless such identification is submitted to the examiner prior to being seated for the examination.

(H) If the division receives any form of notice from the testing vendor of applicant misconduct prior to, during or subsequent to the examination, the superintendent shall deny such applicant's application for licensure and prohibit such applicant from taking the examination for a period of twelve months from the date of misconduct.

(I) Within thirty days of the examination date, any applicant who passes the broker examination shall either activate the broker license or shall place the broker license on deposit and may secure a sales license pursuant to division (E) of section 4735.13 of the Revised Code and rule 1301-5-1-07 of the Administrative Code. If a broker applicant fails to do so, the superintendent shall automatically place such license on deposit.

Effective: 01/01/2013
R.C. 119.032 review dates: 06/25/2012 and 06/30/2016
Promulgated Under: 119.03
Statutory Authority: 4735.10
Rule Amplifies: 4735.07 , 4735.09 , 4735.10
Prior Effective Dates: 10/16/1961, 12/4/1981, 4/8/1985, 8/3/1987, 12/15/1999, 9/24/2000, 11/22/2004, 1/20/2008, 02/02/2010

1301:5-1-06 Broker return of licenses, notification of salesperson termination.

(A) Any real estate broker who terminates a salesperson associated with the broker shall give such salesperson notice thereof in writing by certified mail within three business days of returning the salesperson's license to the division.

(1) Such notice shall state that upon return of the salesperson's license to the division, such license will be automatically placed in an inactive status and that the superintendent may reactivate the license without examination pursuant to the reactivation requirements of rule 1301:5-1-19 of the Administrative Code.

(2) Failure to give such notice to the salesperson herein prescribed may be deemed to be evidence of misconduct in violation of division (A)(6) of section 4735.18 of the Revised Code.

(B) Upon receipt of a written request from the superintendent, a real estate broker shall immediately return the license of a salesperson or broker. Failure to return the license within three days of the date of the superintendent's written request may be deemed to be evidence of misconduct in violation of division (A)(6) of section 4735.18 of the Revised Code.

(C) Pursuant to division (H) of section 4735.13 of the Revised Code, prior to filing a transfer application with the division, the salesperson shall provide written notice to the broker, with which the salesperson is currently affiliated, that the salesperson intends to make application to transfer the salesperson's license to another broker. The salesperson shall certify on the salesperson's transfer application that such written notice has been provided to the broker.

(D) Pursuant to division (H) of section 4735.13 of the Revised Code, the superintendent may process a salesperson's application to transfer their license from one broker to another broker, without the return of the salesperson's license to the superintendent, if the salesperson certifies on the application for transfer that the salesperson has provided the broker from which the salesperson is transferring, written notification of intent to transfer to another broker.

Effective: 01/01/2013
R.C. 119.032 review dates: 06/25/2012 and 06/30/2016
Promulgated Under: 119.03
Statutory Authority: 4735.10
Rule Amplifies: 4735.10 , 4735.13 , 4735.18
Prior Effective Dates: 12/31/1975, 12/4/1981, 8/3/1987, 1/4/1988, 9/24/2000, 11/22/2004, 03/26/2007

1301:5-1-07 Placing a brokers license on deposit.

(A) A real estate broker may at any time make application, on a form prescribed by the superintendent, to place the broker's license on deposit with the division.

(B) The broker's license may remain on deposit with the division indefinitely, provided that:

(1) The broker complies with the post-licensure education requirements of section 4735.07 of the Revised Code, and

(2) The broker complies with the continuing education requirements of section 4735.141 of the Revised Code, and

(3) The broker renews the broker's license in accordance with the provisions of section 4735.14 of the Revised Code and rule 1301:5-1-20 of the Administrative Code.

(C) When depositing the broker's license with the division will result in the closing of the brokerage, the broker shall give written notice of this fact to all salespeople associated with said broker when applying with the division to place the broker's license on deposit.

(D) A broker may reactivate the broker's license on deposit, pursuant to the requirements of rule 1301:5-1-19 of the Administrative Code.

R.C. 119.032 review dates: 06/25/2012 and 06/30/2016
Promulgated Under: 119.03
Statutory Authority: 4735.10
Rule Amplifies: 4735.06 , 4735.10
Prior Effective Dates: 12/31/1975, 8/3/1983, 9/24/2000

1301:5-1-09 Fees by rules.

Fees other than those established by Chapter 4735. of the Revised Code shall be as follows:

(A) A twenty-five dollar fee for replacement of any license where:

(1) The original license issued by the commission has been lost or spoliated;

(2) The original license issued by the commission, in the opinion of the licensee, lacks aesthetic value due to wear and tear or obsolescence;

(3) The broker requests the addition of a business name or change in a business name.

(B) A twenty-five dollar fee for reactivation of an inactive salesperson's license or a twenty-five dollar fee for a broker's license on deposit.

(C) A twenty-five dollar fee for a name change for an individual, corporation, partnership, limited liability company, limited liability partnership or association license.

(D) A twenty-five dollar fee for licensure certification of an individual, corporation, partnership, limited liability company, limited liability partnership or association license.

(E) A ten-dollar fee to reserve a name for an individual, corporation, partnership, limited liability company, limited liability partnership or association.

(F) The aggregate fee charged for a name change for an individual, corporation, partnership, limited liability company, limited liability partnership or association license as referenced in paragraph (C) of this rule shall not exceed six thousand dollars.

(G) The Ohio real estate commission may require the use of a cashier's check, certified check or money order in connection with the payment of any monies or fees due or owed to said commission.

R.C. 119.032 review dates: 06/25/2012 and 06/30/2016
Promulgated Under: 119.03
Statutory Authority: 4735.10 , 4735.15
Rule Amplifies: 4735.06 , 4735.09 , 4735.10
Prior Effective Dates: 12/4/1981, 8/3/1987, 6/1/1989, 4/4/1992, 9/30/1995, 9/24/2000, 3/26/2007, 02/02/2010

1301:5-1-10 Regarding issuance of a bad check as evidence of misconduct. [Rescinded].

Rescinded eff 11-11-04

1301:5-1-11 Method of payment for monies or fees. [Rescinded].

Rescinded eff 3-26-07

1301:5-1-12 Open public meetings.

(A) Any person may determine the time and place of all regularly scheduled meetings and the time, place, and purpose of all special meetings by:

(1) Writing to the following address - "Ohio Real Estate Commission, Division of Real Estate and Professional Licensing, 77 South High Street, Columbus, Ohio 43215-6133."

(2) Calling the following telephone number during normal business hours - 614-466-4100, or

(3) Accessing the division of real estate and professional licensing web site.

(B) Any person may receive notice of all meetings of the Ohio real estate commission. The superintendent shall cause a list to be maintained of all persons who have requested such notification. Any person wishing to receive notification shall notify the superintendent that they wish to be included on the mailing list for such notices. Requests shall:

(1) Be given in writing to the address given in paragraph (A)(1) of this rule or by electronic mail sent to WebReal@com.state.oh.usor such other address as may from time to time be published on the division's web site.

(2) State that the requestor wishes to be notified of all public meetings of the commission or those at which specific topics stated by the requestor are to be discussed.

(3) Indicate if the requestor wishes to be notified by electronic mail, fax or printed notice.

(4) Provide the requestor's electronic mail address, mailing address or fax number.

(5) State if the requestor is a media representative who wishes to be notified of special meetings pursuant to division (F) of section 121.22 of the Revised Code. If a media representative requests notice of special meetings the media representative shall also provide no more than two telephone numbers at which they may be reached.

(C) The superintendent shall cause a notice to be distributed to all persons on the mailing list at least five calendar days before each regularly scheduled meeting of the board.

The superintendent shall make all reasonable effort to provide notice of all special meetings in compliance with division (F) of section 121.22 of the Revised Code.

(D) No fee shall be assessed to persons requesting to be notified by electronic mail.

The superintendent may from time to time assess a reasonable fee on all persons requesting printed notices or fax transmission of notices of meetings. Such fee shall not exceed the cost of producing and mailing or transmitting the notices. The superintendent may request that such fees be paid in advance.

Effective: 01/01/2013
R.C. 119.032 review dates: 06/25/2012 and 06/30/2016
Promulgated Under: 119.03
Statutory Authority: 4735.10
Rule Amplifies: 4735.10 , 4735.19
Prior Effective Dates: 4/8/1985, 6/1/1989, 9/24/2000, 6/21/2002, 03/26/2007

1301:5-1-13 Failure to comply with a subpoena as evidence of misconduct.

Evidence that a licensee has failed to obey a subpoena issued pursuant to section 4735.04 of the Revised Code pertaining to an inquiry or investigation conducted by the commission or superintendent shall constitute prima facie evidence of misconduct and shall constitute a violation of division (A)(6) of section 4735.18 of the Revised Code.

R.C. 119.032 review dates: 06/25/2012 and 06/30/2016
Promulgated Under: 119.03
Statutory Authority: 4735.10
Rule Amplifies: 4735.04 , 4735.10 , 4735.18
Prior Effective Dates: 8/3/1987, 1/4/1988

1301:5-1-14 Use of name or license for benefit of others.

(A) No arrangement, direct or indirect, shall be entered into by any licensee whereby an individual licensee lends his or her name or license for the benefit of another person, firm or corporation, or whereby the provisions of the real estate license laws or regulations are circumvented.

(B) Lending a broker's license for the benefit of another person, firm or corporation shall be construed as including any arrangement whereby a broker fails to personally oversee and direct the operations of the business of which he or she is licensed as the sole broker.

(C) Evidence that a licensee has entered into an arrangement to lend his or her name or license under the provisions of this rule shall constitute prima facie evidence of misconduct and shall constitute a violation of division (A)(6) of section 4735.18 of the Revised Code.

R.C. 119.032 review dates: 06/25/2012 and 06/30/2016
Promulgated Under: 119.03
Statutory Authority: 4735.10
Rule Amplifies: 4735.10 ; 4735.18
Prior Effective Dates: 5/1/1990

1301:5-1-15 Education requirements for brokers and salespersons.

(A) To establish an individual's satisfactory completion of the educational requirements prescribed in sections 4735.07 and 4735.09 of the Revised Code, the individual shall present to the division of real estate a properly issued certificate, transcript or similar documentation from the institution or entity at which the course of education was completed.

(B) The post-licensure ten hours of classroom instruction as prescribed in division (G)(1) of section 4735.07 of the Revised Code and division (G) of section 4735.09 of the Revised Code may be completed only after the issuance of the licensee's real estate broker's license or real estate salesperson's license.

(C) An individual who has provided classroom instruction of the pre-licensure educational requirements prescribed in sections 4735.07 and 4735.09 of the Revised Code within a ten year period immediately preceding their current application for licensure as a real estate broker or real estate salesperson shall be considered to have successfully completed the unduplicated classroom hours of each required course so instructed.

R.C. 119.032 review dates: 06/25/2012 and 06/30/2016
Promulgated Under: 119.03
Statutory Authority: 4735.10
Rule Amplifies: 4735.07 , 4735.09 , 4735.10
Prior Effective Dates: 5/1/1990, 9/24/2000

1301:5-1-16 Effective date of licensure.

(A) No person nor entity shall engage in any conduct for which a real estate license is required until an effective date of licensure has been established by the division.

(B) For initial licensure, the effective date of licensure will be the date that the license is issued, which will be reflected on the license itself.

(C) For license changes, the effective date of licensure will not be established until the division has all of the information and fees necessary to process and issue a new license.

R.C. 119.032 review dates: 06/25/2012 and 06/30/2016
Promulgated Under: 119.03
Statutory Authority: 4735.10
Rule Amplifies: 4735.02 , 4735.10
Prior Effective Dates: 8/3/1987, 5/1/1990, 9/24/2000

1301:5-1-17 Stenographic record.

For purposes of section 119.09 of the Revised Code, the record of an adjudication hearing before the Ohio division of real estate or Ohio real estate commission shall be provided by use of audio or video teleconferencing electronic recording devices. Such recording shall serve as the official record of the proceeding and may serve as the basis for a transcript for furnishing to a court upon appellate review. A stenographic service other than the division's audio or video recording devices may be requested by one of the parties to the hearing. Advance written notice shall be provided to the division by the requesting party prior to the scheduled hearing date. All scheduling with the stenographic service shall be the responsibility of the party requesting the stenographic service. The testimony at the adjudication hearing shall be transcribed at the cost of the party requesting the stenographic service. Upon request, the stenographic service may provide a transcript of the adjudication hearing and the cost of the transcript shall be the responsibility of the party requesting the transcript. The Division may use the transcript from the stenographic service as the official record of the proceeding.

Replaces: 1301:5-1-17

Effective: 01/01/2013
R.C. 119.032 review dates: 06/30/2016
Promulgated Under: 119.03
Statutory Authority: 4735.10
Rule Amplifies: 119.09
Prior Effective Dates: 4/4/1992

1301:5-1-18 Disciplinary sanctions.

(A) Pursuant to division (I) of section 4735.051 of the Revised Code, the following shall apply:

(1) The real estate commission may include, at its sole discretion, any combination of sanctions in its order;

(2) Where multiple violations of the Revised Code are found in a single case, the real estate commission's order shall specifically state the sanction(s) applicable to each violation.

(3) Any final order of the real estate commission no longer subject to appeal, may be publicly disseminated using any of the following methods:

(a) Publication in the division of real estate's newsletter;

(b) Press release(s); and,

(c) Any other method deemed appropriate by the real estate commission and/or superintendent.

(B) Pursuant to division (I)(3) of section 4735.051 of the Revised Code, when the real estate commission imposes a monetary fine as a sanction for violation of any provision of Chapter 4735. of the Revised Code, the payment of the fine by the licensee shall be subject to the following conditions:

(1) In all cases except those qualifying under paragraph (B)(2) of this rule, payment of any fine shall be received by the division of real estate within thirty days of the date of the commission's finding and order imposing the fine;

(2) The superintendent may extend the payment of any fine. The terms of the extended payment period may include a schedule for specified interim payments;

(3) Any fine or payment not received by the division as specified in the real estate commission's order or pursuant to paragraph (B)(2) of this rule shall result in the automatic suspension of the licensee's real estate license;

(4) Reactivation of a license suspended pursuant to paragraph (B)(3) of this rule must be within twelve months of the date of license suspension and shall only occur upon the following:

(a) Payment in full to the division of real estate of all fines imposed;

(b) Filing of a reactivation application; and,

(c) Payment of reactivation fee, as required by section 4735.15 of the Revised Code.

(d) If the licensee's renewal deadline passed during the period of license suspension, submission of the notice of renewal form, renewal fee plus a penalty fee of fifty per cent of the renewal fee, as required by section 4735.14 of the Revised Code.

(e) If the licensee's continuing education, pursuant to section 4735.141 of the Revised Code, and/or post-licensure education, pursuant to section 4735.07 or 4735.09 of the Revised Code, deadline passed during the period of license suspension, the licensee shall submit proof of completion of the required education.

(5) A licensee's license is revoked automatically, without the taking of any action by the superintendent, when the licensee fails to properly reactivate the license under paragraph (B)(4) of this rule within twelve months of the date of the license suspension.

(C) Pursuant to division (I)(5) of section 4735.051 of the Revised Code, when the real estate commission imposes continuing education course(s) as a sanction for a violation of any provision of Chapter 4735. of the Revised Code, the completion of the course(s) by the licensee shall be subject to the following conditions:

(1) The real estate commission's order imposing the continuing education sanction shall specify the specific course content, the number of hours to be completed, date by which the course(s) is to be completed, and the method by which satisfaction of the order is to be reported to the division of real estate;

(2) No continuing education course(s) ordered by the real estate commission as sanction for violation of any provision of section 4735.18 of the Revised Code shall be credited towards the licensee's continuing education requirements as addressed in section 4735.141 of the Revised Code;

(3) Only courses pre-approved by the division of real estate shall be accepted for purposes of fulfilling a continuing education sanction as order by the real estate commission;

(4) Any licensee ordered to complete additional continuing education as a sanction, may in advance of completing such course work, request written verification from the division of real estate that the proposed course(s) will satisfy the criteria set forth in the real estate commission's order;

(5) The superintendent of real estate shall have the discretion to extend the period of time for completion and/or modify the course(s) content parameters of the real estate commission order imposing continuing education course(s) upon good cause shown;

(6) Any continuing education course(s) not satisfactorily completed and reported to the division of real estate, as specified in the real estate commission's order, shall result in the automatic suspension of the licensee's real estate license;

(7) Reactivation of a license suspended pursuant to paragraph (C)(6) of this rule must be within twelve months of the date of license suspension and shall only occur upon the following:

(a) Satisfactory verification of the completion of the ordered continuing education course(s);

(b) Filing of a reactivation application; and,

(c) Payment of reactivation fee, as required by section 4735.15 of the Revised Code.

(d) If the licensee's renewal deadline passed during the period of license suspension, submission of the notice of renewal form, renewal fee plus a penalty fee of fifty per cent of the renewal fee, as required by section 4735.14 of the Revised Code.

(e) If the licensee's continuing education, pursuant to section 4735.141 of the Revised Code, and/or post-licensure education, pursuant to section 4735.07 or 4735.09 of the Revised Code, deadline passed during the period of license suspension, submission of proof of completion of the required education.

(8) A licensee's license is revoked automatically, without the taking of any action by the superintendent, when the licensee fails to properly reactivate the license under paragraph (B)(7) of this rule within twelve months of the date of the license suspension.

(D) Pursuant to division (I)(2) of section 4735.051 of the Revised Code, when the real estate commission imposes a license suspension as a sanction for a violation of any provision of Chapter 4735. of the Revised Code, the license will be automatically reactivated by the superintendent at the conclusion of the suspension period, unless the licensee's renewal, continuing education or post-licensure education deadline passed during the period of license suspension, in which case the license suspension is continued and the licensee is subject to the appropriate reactivation requirements of rule 1301:5-1-19 of the Administrative Code.

(E) Pursuant to division (C)(5) of section 4735.16 of the Revised Code and section 4735.181 of the Revised Code, if the superintendent imposes a license suspension for failure to remit the fine contained in a final citation, the license reactivation must be within twelve months of the date of license suspension, and shall only occur upon:

(1) Payment in full to the division of real estate all fines imposed, and

(2) Filing of a reactivation application, and

(3) Payment of the reactivation fee, as provided in section 4735.15 of the Revised Code.

(4) If the licensee's renewal, continuing education or post-licensure education deadline passed during the period of license suspension, the licensee is also subject to the appropriate reactivation requirements of rule 1301:5-1-19 of the Administrative Code.

(5) A licensee's license is revoked automatically, without the taking of any action by the superintendent, when the licensee fails to properly reactivate the license under this paragraph within twelve months of the date of the license suspension.

(F) Pursuant to section 4735.182 of the Revised Code, if a license is suspended for failure to remit payment on an unpaid check for insufficient funds or the penalty fee, the license reactivation must be within twelve months of the date of license suspension, and shall only occur upon:

(1) Payment by cashier's check, certified check or money order, all fees due and fines imposed; and

(2) Filing of reactivation application; and

(3) Payment of the reactivation fee, as provided in section 4735.15 of the Revised Code.

(4) If the licensee's renewal, continuing education or post-licensure education deadline passed during the period of license suspension, the licensee is also subject to the appropriate requirements of rule 1301:5-1-19 of the Administrative Code.

(5) A licensee's license is revoked automatically, without the taking of any action by the superintendent, when the licensee fails to properly reactivate the license under this section within twelve months of the date of the license suspension.

Effective: 01/01/2013
R.C. 119.032 review dates: 06/25/2012 and 06/30/2016
Promulgated Under: 119.03
Statutory Authority: 4735.10
Rule Amplifies: 4735.051 , 4735.141 , 4735.16 , 4735.181
Prior Effective Dates: 1/1/1997, 9/24/2000, 12/17/2001, 11/22/2004

1301:5-1-19 License reactivation and renewal.

(A) A licensee may reactivate:

(1) An inactive license or suspended license upon submission of an application prescribed by the superintendent and the reactivation fee, as required by section 4735.15 of the Revised Code, provided that:

(a) The licensee is in compliance with all continuing education requirements pursuant to section 4735.141 of the Revised Code and post licensure education requirements pursuant to sections 4735.07 and 4735.09 of the Revised Code,

(b) The license has been properly renewed as required in section 4735.14 of the Revised Code, and

(c) In the case of a disciplinary suspension, has complied with all of the conditions of the discipline as ordered by the commission.

(2) A license that was inactive due to military service upon submission of an application prescribed by the superintendent; the reactivation fee, as required by section 4735.15 of the Revised Code; and upon presentation of satisfactory evidence of honorable discharge or separation under honorable conditions therefrom within six months of such discharge or separation. The licensee will be required to timely file both a renewal and continuing education on or before the dates required by section 4735.13 of the Revised Code.

(3) A license that was suspended pursuant to division (C) of section 4735.13 of the Revised Code upon submission of an application prescribed by the superintendent; the reactivation fee, as required by section 4735.15 of the Revised Code; provided that:

(a) The licensee is in compliance with all continuing education requirements pursuant to section 4735.141 of the Revised Code and post licensure education requirements pursuant to sections 4735.07 and 4735.09 of the Revised Code,

(b) The license has been properly renewed as required in section 4735.14 of the Revised Code,

(c) In the case of a disciplinary action taken by the commission, has complied with all the conditions of the discipline as ordered by the commission, and

(d) Presents satisfactory evidence that the licensee's activities since the conviction show that the licensee is honest, truthful, and of good reputation.

(B) In any case, the superintendent may not reactivate a license if during the period of license inactivity or suspension, the superintendent determines the applicant is not of honest, truthful or good reputation, the applicant has been convicted of a felony, a crime involving moral turpitude, a violation of section 4735.18 of the Revised Code for which the licensee failed to fulfill an order of the real estate commission or of any municipal, state, or federal civil rights law, and the provisions of division (B) of section 4735.07 or division (F) of section 4735.09 of the Revised Code have not been satisfied.

(C) A license shall be revoked for the failure of a licensee to reactivate a suspended license within twelve months of the date of the suspension of the license.

(D) The superintendent shall provide a licensee suspended for failing to renew pursuant to section 4735.14 of the Revised Code notice of pending license revocation, no later than sixty days prior to revocation, and specify in such notice the date the license will be revoked, the reason for pending license revocation and the procedure by which the licensee may reactivate the license. Such notices shall be sent by regular mail to the licensee's address as provided by division (B) of section 4735.14 of the Revised Code.

(E) If a licensee has a sales and broker license, a licensee shall pay the renewal fee as set forth for the license which is active at the time the licensee renews. If the licensee's broker and sales licenses are both inactive, then the licensee shall pay the renewal fee for the broker license.

Effective: 01/01/2013
R.C. 119.032 review dates: 06/25/2012 and 06/30/2016
Promulgated Under: 119.03
Statutory Authority: 4735.10
Rule Amplifies: 4735.06 , 4735.09 , 4735.13 , 4735.14
Prior Effective Dates: 9/24/2000, 11/22/2004, 3/26/2007, 02/02/2010

1301:5-1-20 Annual brokerage assessment.

(A) Licensed corporations, partnerships, limited liability companies, limited liability partnerships, sole-proprietorships or associations shall file the annual brokerage assessment along with the requisite fee with the division on or before June thirtieth of each year.

(B) The annual brokerage assessment pursuant to section 4735.15 of the Revised Code, shall be calculated based on the number of salespeople licensed with the brokerage on April first of each year.

(C) The superintendent shall mail the annual brokerage assessment to the business address of the brokerage no later than April thirtieth of each year.

(D) Failure to file the annual brokerage assessment along with the requisite fee with the division on or before June thirtieth of each year shall result in the suspension of the license in accordance with division (C) of section 4735.14 of the Revised Code.

(E) The superintendent shall provide notice to the licensee of the suspension of the license for failure to pay the annual brokerage assessment and include in such notice an outline of the procedure for reactivating the license.

Replaces: 1301:5-1-20

R.C. 119.032 review dates: 06/25/2012 and 06/30/2016
Promulgated Under: 119.03
Statutory Authority: 4735.10
Rule Amplifies: 4735.14
Prior Effective Dates: 9/24/2000, 11/22/2004, 1/1/06, 03/26/2007

1301:5-1-21 Team advertising.

(A) For purposes of this rule:

(1) "team" includes any group of two or more associated real estate licensees affiliated with the same broker or brokerage and/or other non-licensed professionals, such as administrative assistants and other professionals specializing in real estate related fields that advertise together and that group is not licensed pursuant to Chapter 4735. of the Revised Code.

(B) Any licensee that advertises as being part of a team shall:

(1) Include in the advertisement the name of at least one of the licensees, as it appears on the license. The licensee is not required to include in the advertisement the names of every member of the team;

(2) Include in the advertisement the name of the broker or brokerage under whom the licensee is licensed and displayed in equal prominence with the team name and with the name of the salesperson in the advertisement;

(3) Identify as non-licensed any unlicensed team member whose name is included in such advertising;

(C) Provided the requirements of paragraph (A) of this rule are met, photographs of members may be included in the advertisement without disclosure of the names of all of the members in the photograph;

(D) Failure to advertise as provided herein shall be prima facie evidence of a violation of division (A)(21) of section 4735.18 of the Revised Code.

Effective: 01/01/2013
R.C. 119.032 review dates: 06/25/2012 and 06/30/2016
Promulgated Under: 119.03
Statutory Authority: 4735.10
Rule Amplifies: 4735.10 , 4735.16
Prior Effective Dates: 7/28/2002

1301:5-1-22 Three year renewal.

(A) All licenses issued shall be renewed on a three year renewal cycle in accordance with paragraph (B) of this rule.

(B) All licenses renewed on a timely basis shall be renewed for a three year period for a fee that is three times the renewal fee for one year for that license and shall be due on the licensee's birthday occurring immediately after the licensee's date of initial licensure and on the licensee's birthday every three years thereafter.

(C) For the purposes of this rule, "license" shall include real estate broker licenses issued in accordance with section 4735.06 of the Revised Code, and real estate salesperson licenses issued in accordance with section 4735.09 of the Revised Code.

Effective: 01/01/2013
R.C. 119.032 review dates: 06/25/2012 and 06/30/2016
Promulgated Under: 119.03
Statutory Authority: 4735.10
Rule Amplifies: 4735.10 , 4735.14
Prior Effective Dates: 11/13/2003, 1/1/06

1301:5-1-23 Criminal records checks.

(A) Within ten days of the date of a request from the superintendent, an applicant or licensee shall submit fingerprints to the Ohio bureau of criminal identification and investigation [BCI&I] using a method authorized by BCI&I for a criminal records check pursuant to division (C)(4) of section 4735.05 of the Revised Code and submit the results to the division of real estate and professional licensing within thirty days of the date of the request. The applicant or licensee shall pay any required fee and direct that the results to be transmitted to the division of real estate and professional licensing.

(B) Failure to timely comply with the superintendent's request may be considered prima facie evidence of a violation by a licensee of division (A)(6) of section 4735.18 of the Revised Code or, in the case of an applicant for licensure, may constitute just cause for the superintendent to close the applicant's file and impose a forfeiture of any application fee pursuant to division (B) of sections 4735.06 and 4735.09 of the Revised Code.

Replaces: 1301:5-1-23

R.C. 119.032 review dates: 06/25/2012 and 06/30/2016
Promulgated Under: 119.03
Statutory Authority: 4735.10
Rule Amplifies: 4735.05
Prior Effective Dates: 11/25/2004, 03/26/2007