Ohio Real Estate License Law
Ohio real estate practice is governed by Revised Code Chapter 4735 and the rules in Ohio Administrative Code 1301:5, administered by the Division of Real Estate & Professional Licensing within the Department of Commerce. This chapter covers who regulates brokers, how a broker differs from a salesperson, and the consumer-protection tools in the law.
The Division of Real Estate and Chapter 4735
The Division of Real Estate & Professional Licensing within the Ohio Department of Commerce issues, renews, and investigates real estate licenses under Revised Code Chapter 4735. The Ohio Real Estate Commission adopts rules and decides disciplinary appeals. Anyone who, for compensation, sells, leases, or negotiates real estate for others must be licensed unless a specific exemption applies. A private trade association has no licensing power.
Broker vs. Salesperson
A salesperson must be affiliated with and supervised by a broker and cannot operate independently or hold client funds. A broker may own and operate a brokerage, employ salespersons, and maintain the trust account. Reaching the broker tier requires additional experience and education beyond the salesperson license. The broker's supervisory and fiduciary authority is the central theme of the broker exam.
Recovery Fund and Discipline
The Real Estate Recovery Fund reimburses consumers who obtain a final, uncollectible court judgment against a licensee for conduct that violates the license law; when the fund pays, the licensee's license is suspended until the fund is repaid. Common grounds for discipline under Chapter 4735 include mishandling trust money, misrepresentation, false advertising, and failing to make required agency disclosures.