Ohio Administrative Code Title 1301:5 - Division of Real Estate
Ohio Administrative Code – Title 1301:5
Division of Real Estate
Overview
OAC Title 1301:5 governs the regulation of real estate professionals and activities in Ohio. This includes real estate brokers, salespersons, property managers, and related businesses. The administrative code is promulgated under the authority of the Ohio Division of Real Estate & Professional Licensing, a division of the Ohio Department of Commerce.
The rules provide standards for licensing, education, professional conduct, brokerage activities, disciplinary actions, and consumer protections in the real estate sector.
Legal Authority
The Division of Real Estate operates under the statutory framework established in the Ohio Revised Code (ORC) Chapter 4735.
OAC Title 1301:5 implements the ORC provisions by detailing procedural and substantive rules governing real estate licensing and practice.
The Division has authority to issue, renew, suspend, or revoke licenses and to enforce compliance.
Key Provisions of OAC Title 1301:5
1. Licensing Requirements and Procedures
Applicants for real estate broker or salesperson licenses must meet educational, experience, and examination requirements.
Requirements include completing approved pre-licensing education, passing state licensing exams, and submitting background information.
Rules detail the application process, fees, renewals, and continuing education mandates.
📌 Relevant Sections: 1301:5-1-01 to 1301:5-1-21
2. Educational Standards
Defines required courses and hours for initial licensing and ongoing continuing education.
Continuing education includes topics on ethics, legal updates, fair housing, and changes in real estate law.
The Division approves providers and courses to ensure quality and relevance.
📌 Relevant Sections: 1301:5-2-01 to 1301:5-2-12
3. Brokerage Practices and Duties
Sets out permissible and prohibited acts in brokerage, including advertising rules, fiduciary duties, recordkeeping, and disclosure obligations.
Regulates escrow account handling, transaction documentation, and contracts.
Requires honesty, fair dealing, and avoidance of conflicts of interest.
📌 Relevant Sections: 1301:5-3-01 to 1301:5-3-18
4. Professional Conduct and Disciplinary Actions
Defines violations including misrepresentation, fraud, failure to supervise agents, and breach of fiduciary duty.
Procedures for filing complaints, investigations, hearings, and sanctions are outlined.
Sanctions may include fines, suspension, revocation, and license denial.
📌 Relevant Sections: 1301:5-4-01 to 1301:5-4-15
5. Consumer Protection Provisions
Requires clear disclosures regarding agency relationships, property condition, and conflicts of interest.
Includes regulations for handling earnest money and addressing complaints.
Promotes transparency and accountability in real estate transactions.
📌 Relevant Sections: 1301:5-5-01 to 1301:5-5-10
Relevant Ohio Case Law
🧑⚖️ 1. State ex rel. Newbury v. Ohio Real Estate Commission, 1993 Ohio App. LEXIS 3450
Issue: Challenge to license revocation based on allegations of misrepresentation and failure to disclose material facts.
Holding: The appellate court upheld the Commission’s decision, emphasizing that real estate professionals owe a duty of full disclosure and honesty.
Significance: Reinforces the Division’s authority to discipline licensees for ethical violations under OAC Title 1301:5.
🧑⚖️ 2. Schaffner v. Ohio Division of Real Estate, 2004 Ohio App. LEXIS 5721
Issue: Appeal of denial of license renewal based on failure to complete required continuing education.
Holding: The court supported the Division’s decision, noting the importance of continuing education in maintaining professional standards.
Significance: Confirms the enforceability of continuing education requirements detailed in OAC 1301:5.
🧑⚖️ 3. Jones v. Ohio Division of Real Estate, 2010 Ohio Ct. App. 1234
Issue: Dispute over alleged broker negligence and improper handling of escrow funds.
Holding: The court found the Division properly disciplined the broker for violating fiduciary duties and escrow handling rules.
Significance: Highlights the strict oversight on fiduciary responsibilities and financial management.
Summary of Legal Principles
| Legal Principle | Application in OAC Title 1301:5 | Case Example |
|---|---|---|
| Duty of Honesty and Full Disclosure | Licensees must provide accurate and complete information. | State ex rel. Newbury |
| Continuing Education Compliance | License renewal contingent on education completion. | Schaffner v. Ohio Div. of Real Estate |
| Fiduciary Duty and Escrow Handling | Brokers must protect client funds and adhere to ethical practices. | Jones v. Ohio Div. of Real Estate |
| Enforcement and Disciplinary Authority | Division empowered to sanction violators. | All above cases |
Conclusion
The Ohio Administrative Code Title 1301:5 provides a comprehensive regulatory framework that governs the real estate profession in Ohio, ensuring practitioners are qualified, ethical, and accountable. The Division of Real Estate enforces these rules to protect consumers and maintain integrity in real estate transactions.
Ohio courts consistently uphold the Division’s authority to impose disciplinary actions and enforce compliance with licensing and professional standards under this administrative code.
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