Ohio Real Estate Broker Exam — All Questions

Ohio license law requires a brokerage to maintain:

• a.A definite place of business in Ohio where records are kept and the license is displayed✓
• b.A membership in the local board of Realtors
• c.A physical office in every county where it lists property
• d.A minimum of five affiliated salespersons

Chapter 4735 requires a broker to maintain a definite place of business and to make the brokerage and licensee records available for inspection by the Division. The broker's license and the licenses of affiliated salespersons are associated with that place of business. There is no statewide requirement to belong to a trade association or to have an office in every county.

Earnest money and other client funds received by an Ohio brokerage must be:

• a.Deposited into the broker's personal account until closing
• b.Held in cash in the office safe
• c.Deposited into and maintained in the brokerage's trust or special account, separate from the broker's own funds✓
• d.Sent immediately to the county recorder

Ohio brokers must deposit client funds such as earnest money into a trust or special (escrow) account and keep those funds separate from the broker's operating and personal money. Commingling or converting trust funds is a serious violation of Chapter 4735 and a frequent basis for discipline. The broker, not the salesperson, is responsible for the account.

Which statement about handling a disputed earnest-money deposit in Ohio is generally correct?

• a.The broker should release the funds to whichever party asks first
• b.The broker must continue to hold the disputed funds in the trust account until the parties resolve the dispute, a court orders disbursement, or another lawful basis to release the money exists✓
• c.The broker may keep the disputed funds as a commission
• d.The salesperson decides who receives the funds

When buyer and seller disagree over who is entitled to earnest money, the broker must keep 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 keeping disputed trust funds exposes the broker to discipline.