Brokerage Operations and Trust Accounts
A broker in Ohio is responsible for running a compliant brokerage, maintaining a place of business, and safeguarding client money. This chapter covers the definite-place-of-business rule and the handling of trust funds and disputed deposits.
Definite Place of Business and Records
Chapter 4735 requires a broker to maintain a definite place of business where the brokerage and licensee records are kept and available for inspection by the Division, and where the license is displayed. Affiliated salespersons' licenses are associated with that place of business. There is no requirement to belong to a trade association or to have an office in every county where the brokerage lists property.
Trust (Escrow) Accounts
Client funds such as earnest money must be deposited into and maintained in the brokerage's trust or special account, kept separate from the broker's operating and personal funds. Commingling or converting trust money is a serious license-law violation. The broker, not the salesperson, is responsible for the trust account and for accurate recordkeeping.
Disputed Earnest Money
When the buyer and seller disagree over who is entitled to earnest money, the broker must continue to hold the funds in the trust account and may not unilaterally decide the dispute. The money is released only on the parties' written agreement, a court order, or another lawful basis. Improperly releasing or retaining disputed trust funds can lead to discipline.