State Governance of the Real Estate Profession
PSI's Ohio state outline opens with the machinery of regulation: who holds which power, when records may be audited, how a complaint travels from filing to sanction, and what the Real Estate Recovery Fund can and cannot pay for. It is four of the forty state items.
The Division, the Superintendent, and the Commission
Two bodies share the work. The superintendent of real estate, within the Division of Real Estate & Professional Licensing at the Department of Commerce, administers Chapter 4735, issues orders, investigates complaints, appoints hearing examiners, and administers the recovery fund (ORC 4735.05(B)). The Ohio Real Estate Commission is five members appointed by the governor with the senate's consent — four licensed brokers of ten years' standing and one public member, serving five-year terms, with no more than three from one political party and no more than two consecutive full terms (ORC 4735.03). The Commission adopts canons of ethics, reviews the superintendent's orders on appeal, hears appeals on recovery fund claims, and decides discipline.
Audit of Records
ORC 4735.05(B)(4) requires the superintendent to maintain an investigation and audit section and gives its investigators and auditors "the right to review and audit the business records of licensees and continuing education course providers during normal business hours." No complaint, Commission vote, or subpoena is needed first; subpoena power under ORC 4735.05(C)(1) and ORC 4735.04 is for compelling witnesses. What the auditors gather is held in confidence under ORC 4735.05(D).
Investigations, Hearings, Violations and Penalties
ORC 4735.051 sets the timetable: the superintendent acknowledges a signed written complaint within five business days, offers informal mediation if both sides request it, investigates if there is no accommodation, and reviews the investigator's report for "reasonable and substantial evidence" of a violation of ORC 4735.18. A hearing examiner then hears the matter under Chapter 119 and reports; the Commission decides. Its sanctions under ORC 4735.051(I) are revocation, suspension, a fine not exceeding $2,500 per violation, a public reprimand, and additional continuing education that does not count toward the ordinary requirement. Fines go to the recovery fund. Unlicensed activity is handled separately under ORC 4735.052, with a civil penalty capped at $1,000 per violation.
The Real Estate Recovery Fund
ORC 4735.12 lets a person holding a final, uncollectible judgment against a licensee — for conduct violating the chapter and arising from acts only a licensee may perform — apply in the Franklin County court of common pleas for payment of the actual and direct loss. Punitive damages, attorney's fees and interest are excluded; the applicant must have exhausted appeals and pursued the judgment debtors, and must apply within one year of the end of all proceedings. Liability is capped at $40,000 for any one licensee, and the licensee's license is automatically suspended on payment until the fund is repaid with interest.
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State-specific details
State exam facts
- Exam vendor
- PSI
- Prelicensing education
- 240 hours of eligible courses at an institution of higher education (40 real estate practice, 40 Ohio real estate law and civil rights, 20 appraisal, 20 finance, and 30 each in financial management, human resource management, applied business economics and business law)
- Passing score
- 75%
- Scored questions
- 115
- Time limit
- 180 minutes
Who regulates real estate brokers in Ohio?
The Ohio Division of Real Estate & Professional Licensing, within the Ohio Department of Commerce, licenses brokers and salespersons. The Division contracts with PSI to deliver the licensing examinations, and the five-member Ohio Real Estate Commission adopts the canons of ethics and decides discipline.
What experience do I need before the Ohio broker exam?
Under ORC 4735.07(B)(5) an applicant must have been "a licensed real estate broker or salesperson for at least two of the five years preceding the person's application" and have completed either at least twenty real estate transactions in which property was sold for another while acting as a broker or salesperson, or equivalent experience, which OAC 1301:5-3-04(D) leaves to Commission review. Watch how those transactions are counted: under OAC 1301:5-3-04(A) a completed sale counts as one-half transaction to the procuring agent and one-half to the listing agent, so twenty "transactions" is not twenty closings. ORC 4735.07(B)(6)(b) then requires 240 hours of eligible courses at an institution of higher education — 40 hours of real estate practice, 40 of Ohio real estate law and civil rights, 20 of appraisal, 20 of finance, and 30 each in financial management, human resource or personnel management, applied business economics and business law. No degree is required; these are course hours. (2025's HB 238 cut the appraisal and finance hours for the salesperson license only — the broker figures are still 20 and 20.)
How is the Ohio broker exam structured?
PSI delivers two portions in one session: a national portion of 75 items scored to 80 points in 120 minutes, and an Ohio state portion of 40 items worth 40 points in 60 minutes — 115 questions and 120 points over 180 minutes in total. A broker must score at least 75% on each portion, and there is no limit on retakes under ORC 4735.07(F). The state portion is weighted 4 items on state governance, 6 on licensing requirements, 16 on license law and Commission rules, and 14 on brokerage relationships (agency law).
What must a new Ohio broker do in the first year?
ORC 4735.07(G) requires a new broker to submit proof of ten hours of Commission-approved post-licensure instruction no later than twelve months after the license is issued. Missing that suspends the license automatically, and a further twelve months without proof revokes it. Thereafter the license renews on a three-year cycle on the licensee's birthday, with 30 hours of continuing education that must include a three-hour course on the duties of a principal broker (ORC 4735.141).
Sources: https://com.ohio.gov/divisions-and-programs/real-estate-and-professional-licensing/salespersons-and-brokers/guides-and-resources/salesperson-and-broker-candidate-information-bulletin, https://test-takers.psiexams.com/api/content/bulletin/1001, https://codes.ohio.gov/ohio-revised-code/section-4735.07
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