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- Ohio Division of Real Estate & Professional Licensing
- Kelly Davids, Superintendent
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- SB 106 changes are broken down into three
- major areas:
- Agency Disclosure Changes
- Enforcement Changes
- Licensing/Education Changes
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- The law sets forth a new process for
- providing prospective clients information
- regarding agency disclosure.
Licensees will
- provide this information in two formats at two
- different times. The formats are:
- Consumer Guide to Agency Relationships
- Agency Disclosure Statement
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- The Consumer Guide to Agency
- Relationships provides a consumer friendly
- method of providing clients and prospective
- clients information regarding the type of
- agency your brokerage practices.
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- The Guide will replace the brokerage’s company policy on agency
- The Guide may be in the form of a pamphlet or traditional document
- The brokerage is charged with developing the Guide based on the form of
agency that brokerage practices
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- The “guide” must:
- Explain all permissible types of agency available
- The brokerage’s policy on representing buyers, sellers, dual agency, split agency
and compensation of other brokerages
- Include the brokerage name and fair housing logo
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- The following disclosures must be included in the “guide”:
- Fair Housing
- That a brokerage that represents a buyer may be compensated by the
seller’s agent
- That Ohio law requires the guide to be presented and acknowledged by
consumer
- The brokerage policy on customers that are not represented
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- Working with the seller
- Must be provided to seller
- Must obtain seller’s signature
- Prior to:
- showing or marketing seller’s property
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- Working with purchaser
- Must be provided to purchaser
- Must obtain purchaser’s signature
- Prior to:
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- Triggering Events
- Initiating a pre-qualification evaluation
- Requesting specific financial information
- Showing real estate, other than at open house
- Discussing with purchaser the making of an offer or making an offer
- Submitting an offer on behalf of purchaser
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- Residential rental or lease agreements that can be performed in 18
months or less
- Referrals
- Foreign real estate
- Sale of cemetery lots or interment rights
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- The new form was developed by an agency disclosure taskforce, consisting
of industry representatives and Division staff. The form contains both agency and dual
agency disclosures, is two sided, with blanks on one side and is 8½” x
11”.
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- In-between the top & bottom, the new Agency
- Disclosure Statement has three sections:
- Transactions involving two agents in different brokerages
- Transactions involving two agents in the same brokerage
- Transactions involving only one real estate agent
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- Most common scenario
- Disclosure of the agent(s)/brokerage that represent the buyer
- Disclosure of the agent(s)/brokerage that represent the seller
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- Disclose brokerage, and choose one of two options:
- In-company transactions or “split” agency, whereby individual agents
each represent their clients.
The broker and managers will be dual agents
- Every agent in the brokerage represents every client, thus both agents
are dual agents
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- Disclose agent and brokerage, and choose one of two options:
- The agent is acting as a dual agent, representing both the buyer and
seller
- The agent represents either the buyer or the seller, not both. The other party is not represented.
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- The second page of the Agency Disclosure
- Statement contains dual agency disclosures
- Description of the duties of the agent(s) and brokerage in a dual agency
relationship
- Compensation
- Management Level Licensees
- Responsibilities of the parties
- Consent
- Contact information for the Division
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- How it works – start with Buyer’s Agent
- The agent completes and obtains buyer’s signature no later than the
preparation of an offer to purchase (based on the transaction, the
buyer’s agent knows whether a dual agency exists)
- The agent delivers the statement to the seller’s agent
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- How it works – Seller’s Agent
- The agent presents the agency disclosure statement to the seller and
requests that the seller sign and date the statement
- Then the agent may present the offer to the seller
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- What if the seller is not represented?
- Buyer’s agent completes and obtains the buyer’s signature
- Buyer’s agent delivers the statement to the seller and obtains the
seller’s signature
- Buyer’s agent then gives the offer to the seller
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- What if the buyer is not represented
- Seller’s agent receives an offer from an un-represented buyer
- Seller’s agent completes and obtains the buyer’s signature
- Seller’s agent delivers statement to seller and obtains the seller’s
signature
- Seller’s agent then gives the offer to the seller
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- There is no longer a separate form for disclosure of Dual Agency
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- Rental or lease agreements that can be performed in 18 months or less
- Referrals
- Foreign real estate
- Sale of cemetery lots or interment rights
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- A Management Level Licensee means a
- licensee who is employed by or affiliated with
- a real estate broker and who has supervisory
- responsibility over other licensees employed
- by or affiliated with that real estate broker.
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- A Management Level Licensee is not a dual
- agent if there is more than one Management
- Level Licensee, and either:
- The Management Level Licensee personally represents either the seller
or buyer, or
- The Management Level Licensee is the buyer or seller
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- Our office has a management level licensee and a broker who
- also has management level licensee responsibilities. If the
- management level licensee personally represents the seller on
- an in-company transaction, does she have to be a dual agent?
- No. Because the broker acts also as a management level
- licensee in this brokerage, the broker will be the dual agent
- and the management level licensee will be the seller’s agent.
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- Citations provide an expedited way to handle infractions of the license
law. They avert the investigation
and formal hearing process and allow all parties to move beyond the
misconduct.
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- Advertising
- Consumer Guide to Agency Relationships
- Agency & Dual Disclosure Statement
- Fair Housing
- Agency Agreements
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- Upon receipt of evidence of a violation of
- license law, the Superintendent has discretion
- to:
- Initiate a formal investigation, or
- Issue a citation (if a licensee is cited more than three times within
twelve consecutive months, the Superintendent must open a formal
investigation)
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- Gives notice to licensee of the alleged violation
- Fine of up to $200 per violation, deposited in the Real Estate Recovery
Fund
- Gives licensee opportunity to request a hearing, within 30 days of the
issuance of the citation
- If no hearing, the citation becomes final on the 31st day
after issuance
- Failure to pay the citation within 60 days of the date of issuance
results in an automatic suspension of the license
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- The law sets forth easier methods for the Division enforcement section
to handle license law infractions and to complete investigations.
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- May be issued to licensee or other party via certified mail
- Failure to comply with Division issued subpoena may result in formal
charges for misconduct
- Superintendent may obtain court order to enforce the subpoena
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- If the Superintendent obtains reasonable evidence that criminal conduct
has occurred, the Superintendent may request an applicant or licensee
complete a criminal records check
- The applicant or licensee must comply with the request within 15 days
- The applicant or licensee must incur the cost of the criminal records
check
- All criminal records checks must be conducted by electronic means
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- Modifies the informal meeting process into a mediation process
- Allows licensee and complainant to resolve disputes confidentially
- If a case is successfully mediated, the Superintendent closes the case
without investigation
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- The Superintendent must send all enforcement action notices to the
licensee via certified mail
- If the notice is returned unclaimed, refused or because of failure of
delivery, the Superintendent may send the notice via regular mail and
obtain a certificate of mailing
- The notice will then be considered “served” upon the licensee
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- If a check is returned to the Division for insufficient funds, the
Division will notify the applicant or licensee
- The applicant or licensee has 15 days to pay both the amount of the
unpaid check and a $100.00 fee
- Failure to pay both fees will result in the automatic suspension of the
license
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- These changes allow licensees to conduct business with the Division in a
more efficient manner, while maintaining consumer protection standards
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- Allows the Commission to approve use of Education & Research funds
for the training of Commission members and employees of the Division on
issues related to investigative techniques, real estate law, practices
and procedures
- Allows the Commission to contract with a trade organization for a
particular research or educational project
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- The Superintendent may transfer the license
- of a salesperson to a new broker, without the
- return of the salesperson’s license, provided:
- The salesperson certifies on the transfer application that they have
provided notice to their broker of the intent to transfer to a new
broker
- The notice is in writing
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- Brokers must return the license of a
- salesperson or broker within 15 calendar days
- of the receipt of a request from
the
- Superintendent
- License renewal or education suspension
- Enforcement suspension
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- Upon termination, the broker must return the salesperson’s license to
the Division
- Superintendent may request return of the terminated salesperson’s
license
- The broker’s failure to return the license within 3 business days of the
date of the Superintendent’s request may result in disciplinary action
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- Provides authority for the Superintendent to set pro-rated fees for
those licensees upgrading from a salesperson to broker license within a
3 year renewal period
- Only necessary when 3 year renewal is implemented (not yet).
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- Expands exemption for those aged 70 and
- older:
- All licensees attaining age 70 during their CE reporting cycle must
only submit proof of completion of 9 hours of continuing education
- The 9 hours must be in the core subjects: fair housing, real estate law
and Canons of Ethics.
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- Licensees may receive credit for courses not
- previously approved by the Commission, provided:
- The course is not a “core” course
- The course is only offered outside Ohio
- The course is reported within the same CE cycle during which the course
was taken
- The licensee submits a $100.00 course application fee
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- Ohio Division of Real Estate & Professional Licensing
- 77 S. High Street, 20th Floor
- Columbus, Ohio 43215
- Website: www.com.state.oh.us/real
- Email: REPLD@com.state.oh.us
- Phone: (614) 466-4100
- Enforcement & Licensing Law Effective November 3, 2004
- Enforcement & Licensing Rules Effective November 22, 2004
- Agency Law & Rules Effective January 1, 2005
- Text of SB 106: www.legislature.state.oh.us
- Text of Administrative Rules: www.registerofohio.state.oh.us
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Notes
