CHAPTER 3- Keeping Your Real Estate License

Canons of Ethics (by the commission)

All Ohio licensees are bound by the canons of ethics whereas members of the NAR are bound by the canons of ethics as well as a separate code of ethics

Letter of Reprimand

For minor infractions of license law where there is a determination that the licensee had no intention of violating the law, and had no had any previous violations

Transferring of License between brokers

If a broker wants to transfer a license to another broker, he or she must deliver a written notice to his present broker of the intent to transfer and then competing a transfer application with the new broker

Issue citation up to $200 with max limit of $2500 per violation deported in the Real Estate Recovery Fund

If no hearing, citation becomes final on the 31st day after issuance and failure to pay in 60 days results in automatic suspension of license

Commingling

Illegally mixing money held in a trust account on behalf of a client with personal funds

Commission Splitting

Licensee may not pay a bonus for leads that become sales

Inducement

Offering anything of value not in the contract as an inducement- includes the prohibition against using real estate or improvements thereon as prizes in games of chance

Issue a citation

Super gives notice to licensee of the alleged violation and the opportunity to request formal hearing within 30 days

Initial a formal investigation

Super must initiate formal investigation if licensee is cited more than 3 times within a year

Ohio Revised Code 4735.18 (36 rules)

The commission shall impose discipline against the licensee if found guilty of any go the 36 activities (suspension/revocation) (REVIEW) *super may also investigate on his own initiative

Resigned

The license status in which a license has been voluntarily and permanently surrendered to, or is otherwise in the possession of , the Division of Real Estate and Professional Licensing, is not renewed, and not associated with a real estate broker

License Inactive

The license status of any salesperson who returns his license to the Division of Real Estate, or whose broker does not want to maintain sponsorship of licensee. A license may remain inactive indefinitely as long as it is timely renewed and continuing education requirements have been met.

Real Estate Recovery Fund

Used to satisfy unpaid judgements again real estate licensees for activities violating the license law that caused financial loss to the claimant

Misrepresentation

defined as passing along false information (licensee must realize it is false information at the time he or she makes the misrepresentation

Blockbusting

placing a sign on any unlisted property, designed to get the owner of the property to call, whereupon the owner is told of the entry of certain groups into the neighborhood as an inducement to sell

Payment Cieling

$40,000 for each licensee so if more than one licensee is involved the number is double, tripled, etc.

Continuing Ed Course Breakdown

-3 hours of core law -3 hours of civil right updates (fair housing) -3 hours on "Cannon of Ethics" -21 hours of approved CE electives -*no more than 8 hours per day -70 or older only need required 9 hours of classes

Continuing Education

-30 hours of continuing education requirements, ON or BEFORE their 4th birthday after the date they receive their license and then on or before every 3 years until age 70

Complaint Procedure

-A complaint can be filed with the Ohio division of real estate or board of REALTORS (if member) -A civil law suit can also be filed

Post Licensing Educational Requirements

-After a license is issued, the licensee has 12 months to complete 10 hours of post-licensing education -No more than 8 hours can be completed in one day -Provide evidence to the Division that post licensing education has been satisfied or your license will be suspended

Ethics in Real Estate

-Carry out fiduciary responsibilities -Make proper disclosures -Do not take unfair advantage of people -Be honest with everyone -Treat everyone equally -Keep good documentation

License Renewal

-Expires on first birthday after issued licensed -Expires every 3 years after that -First time license is renewed, need no proof of CE or Post-licensing ed

Real Estate Recovery Fund

-If the fund falls below $500,000, up to $10 may be assessed -If the fund is between $500,000 and $2 million, up to $5 may be assessed -If the fund is above $2 million, no amount will be assessed *due when renew license -When recovery fund is activated, license is suspended until amount is paid in full including interest

Notifications for complaints on licensees

-Notified via regular mail if complaint is files -Notified via certified mail if a formal hearing is required *Division investigates, superintendent appoints hearing examiner, and commission imposes penalties and division can issue citations up to 200 per citation if no formal investigation is necessary

Superintendent's Role of Complain

-Superintendent reviews facts and supporting documentation for jurisdiction -First step is to try and voluntarily resolve the issue through informal mediation, if parties fail to agree however, the complaint is researched by an investigator assigned to the case by the super. -Once investigation completed, case is either dismissed or put on docket for formal hearing and after hearing if licensee is found licensing laws have been violated it is handed over to the commission after the hearing to determine the course of action

Courses of Action by the commission

-Suspension or revocation -Fines up to $2500 per violation -Possible public reprimand (reported in the division newsletter) -Completion of additional CE requirements

License on Deposit

1. A special status that is available only to brokers who wish to return their broker's license to the Division of Real Estate in order to reactivate their license as a salesperson- can be on deposit indefinitely as long as it is timely renewed as well as continuing education requirements are met- no need to have a trust account when on deposit as is required of all brokers to have trust accounts with no interest 2. A special license states available to any licensee (broker or salesperson) †who enters the military or whose reserve military status is activated. The license remains inactive until the next renewal date following honorable discharge from the military

Suspension

1. The temporary withdrawal of a real estate agent's license for a certain and specified period of time. Usually reactivation is automatic the day after suspension is lifted and is often conditioned on the fulfillment of certain requirements by the person whose license has been suspended 2. The automatic event that occurs when a licensee fails to renew a license on time, or turn in proof of post, or continuing education

Revocation

1. When the Real Estate Commission permanently withdraws a real estate agent's license. 2. The automatic event that occurs when a licensee allows they license to remain in a state of suspension for more than 12 months -pre-licensing certificates are good for 10 years but application process needs to be redone but can be denied by the commission