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					                                                   Spring 2002

                                                   Division of

                                                  Real Estate and
                                                  Professional Licensing
                                                  x   N        E        W          S       L       E        T        T        E        Rx
                                                  Bob Taft                 Gary C. Suhadolnik                 Lynne Hengle
                                                  GOVERNOR                 DIRECTOR                           SUPERINTENDENT




x Division Notes Increased Use of Relocation Programs

Relocation Companies and Referral Fees Explained
I
    n recent months, Ohio licensees have                  in H.B. 272, which will be effective   relationship with a relocation company
    seen an increase in client use of                     April 4, 2002).                        agree to pay a referral fee to the relocation
    relocation companies or participation           It is important to note that because the     company (of a previously agreed upon
in affinity relocation programs. Conse-          relocation company must be licensed in          amount) for a covered transaction.
quently, the Division thought it useful to       Ohio or another jurisdiction in order to        However, disputes sometimes arise when
provide this breakdown of what these             pay or receive a referral fee, the prudent      the relocation company demands payment
programs are about, how license law plays        Ohio licensee should verify the licensure       of a referral fee after a relationship has
a part and how to obtain information on          status of a relocation company prior to         already been established between a client
dispute resolution.                              paying or accepting a referral fee.             and broker. This is commonly known as
  Simply put a relocation company is a              Sometimes relocation companies do not        an after-the-fact referral fee request.
company that specializes in the sale,                                                               After-the-fact referral fee requests may
purchase or lease of real estate through                                                         happen if the client does not communicate
the referral of customers to brokers and                                                         to the referred broker that the client was
vice versa. Affiliation with a relocation                                                        referred through the services of a reloca-
company can be mutually beneficial to             The prudent Ohio                               tion company. Conversely, a request can
both the broker and the customer. Brokers
are rewarded with either referral fees or
                                                  licensee should verify                         come about if the licensee is not familiar
                                                                                                 with the brokerage’s participation in
commission from a successful referral and         the licensure status                           relocation or affinity programs or fails to
customers may benefit from reduced                                                               inquire about possible client participation
commissions and managed move services.            of a relocation                                in these programs.
                                                  company prior to                                  The Division does not have jurisdiction
Payment or Receipt of Referral Fees                                                              to intervene in after-the-fact referral fee
  Although Ohio real estate license law           paying or accepting                            requests. Nevertheless, there are some
does not speak specifically to relocation
companies, there are provisions of the law
                                                  a referral fee.                                steps that the prudent licensee can take to
                                                                                                 reduce the occurrence of such requests.
that address the referral fees that often
accompany dealings with a relocation
                                                                                        x             • Include an inquiry about participa-
                                                                                                         tion in a relocation company or
company. Section 4735.20 of the Revised                                                                  affinity program as part of the initial
Code and Rule 1301:5-5-06 provide the                                                                    presentation to a prospective client.
following guidelines on paying or receiv-        accept or pay referral fees, but rather              • Look for informational tidbits that
ing referral fees:                               forward prospective clients to select                   may indicate involvement in a pro-
     • An Ohio licensee may only pay to, or      licensees that have agreed to a reduced                 gram, like a move resulting from
       receive a referral fee from, a person     commission. In this scenario, the reloca-               a corporate transfer.
       or entity licensed to practice real       tion company is not paying or receiving a            • If you receive a referral over the
       estate in Ohio or another jurisdiction.   referral fee, and therefore doesn’t need to             telephone, request written documen-
     • Out of state licensees may not            be licensed.                                            tation as to exactly who is being
       perform any licensed activities in                                                                referred and the name of the person
       Ohio (only exception is for               After the Fact Referral Fee Requests
       commercial properties, as exempted          Generally, brokers that have a business                        continued on page two
                                                                         Relocation and Referral Fees, continued from page one

       and entity that is referring the client   dispute resolution program. One such          More information on Interchange can be
       to you.                                   program, dubbed “Interchange,” has been       obtained from the Coalition website at:
     • Familiarize yourself with programs        created through the partnership of the        www.realestatecoalition.org.
       that your brokerage participates in.      Real Estate Coalition for Cooperative            The key item for licensees to keep in
     • Make a business decision on               Business Practices (Coalition) and the        mind in dealing with a relocation company
       whether the benefits of participation     Association of Real Estate License Law        is communication. Licensees should always
       in a referral or affinity program         Officials (ARELLO). The objective of the      feel free to verify the licensure status of a
       outweigh any associated problems.         Interchange is to facilitate resolution of    relocation company prior to paying or
   Should the licensee truly believe that        disputes between relocation companies         receiving a referral fee. Additionally, open
an after-the-fact referral fee request is        and brokerages. Additionally, Interchange     communication may go a long way to
inappropriate or unwarranted, the                members agree to certain “best” practices     reduce or eliminate the occurrence of after-
licensee may choose to participate in a          for participation in referral programs.       the-fact referral fee requests.




Cease and Desist                                 Two Division Offices                          Division Mail, Building
Orders Issued                                    Handle Different Tasks                        Security Tightened
Acting as a real estate agent without a          Licensees should know that the Division       Because of recent national events,
real estate license violates Section             has two offices that serve different          security measures have become more
4735.99 of the Ohio Revised Code and is          purposes, one in Columbus and one in          stringent at the Division, just as they
a first degree misdemeanor. Despite this         Cleveland.                                    have in many governmental offices.
prohibition, the Division still finds              Our Columbus office handles licenses        Division customers and visitors should be
evidence that unlicensed people and              for real estate brokers and salespeople,      aware of these measures and the slight
companies engage in activities requiring         foreign real estate brokers and sales-        delays they may cause.
a license. Most often, the Division issues       people, private investigators, and security      For instance, because U.S. Mail service
Cease and Desist Orders in these cases. If       guards. The Enforcement section for           has instituted new handling processes,
offenders continue to engage in the              these types of licenses is also located in    mail to the Division is taking longer than
unlicensed conduct, the Division may ask         the Columbus office.                          in the past. Further, once the State
the appropriate local prosecutor to                Our Cleveland office, on the other          receives mail, it is transferred from the
consider initiating criminal action.             hand, processes appraiser licenses and        State post office to the Department and
   Since the last newsletter, the following      registers cemeteries, with Enforcement        then to the Division. Please keep this
individuals/companies have been issued           for these types of licenses in the same       delay in mind when calling the Division
Cease and Desist Orders:                         office.                                       to inquire if an application, payment of
                                                   All fees, though, are processed in the      fees, or other correspondence has been
Eric Bradley                                     Columbus office. Once fees are posted         received.
dba Option Real Estate                           and accounted for, the paperwork is              Increased security in the workplace,
2945 Peekskill Dr.                               forwarded to the appropriate section and      too, means that Division visitors should
Columbus, OH                                     location, whether it is in our Columbus       expect to be greeted by not only building
                                                 or Cleveland office.                          security, but also the State Highway
Ben Spofford                                                                                   Patrol. Your belongings will be searched
dba Freedom Home & Land Contract Co.                                                           and you may be questioned about your
1521 Georgetown Rd.                                                                            business prior to further access.
Hudson, OH




         The Division of Real Estate and
        Professional Licensing Newsletter
                                                                Real Estate                                Real Estate Appraiser
             is published quarterly by                                                                       Board Members
                                                            Commission Members
       The Ohio Department of Commerce,
                                                            Owen V. Hall, President                      Robert J. Weiler, Chairman
               Division of Real Estate
                                                             Cheryl A. Churchill                          Margaret A. Hambleton
            and Professional Licensing
                                                               Dale W. Marks                                Richard H. Hoffman
           77 S. High Street, 20th Floor
                                                              George M. Sarap                                Lawrence A. Kell
           Columbus, Ohio 43215-6133
                                                               Lois L. Yeager                                 Cheryl H. Love
       (614) 466–4100; FAX: (614) 644-0584
       (216) 787–3100; FAX: (316) 787-4449


   2    ATTENTION BROKERS! Division forms are available for download at www.com.state.oh.us
The Division Goes Interactive
In early 2002 the Division began testing        tremendous value to our licensees and        more advanced renewal options. Although
the first part of the Internet interactive      the general public. Additionally, the        last year’s computer conversion was
component of the Division’s new                 Division continues to work on additions      challenging for the Division, we think
licensure software system, dubbed “Real         to the Internet Interface, such as online    you’ll agree that the technological capabili-
Pro.” The first two Internet applications       submission of continuing education,          ties now available to the Division will prove
that have been available to licensees and       course rosters, licensure applications and   the hard work was worth the effort.
consumers since March 4 are the Online
Look-up Database and the Online
Renewal.
   The Online Look-up Database allows
users access to information about every
licensee that is licensed by the Division.
Users will be able to search the database
by file number, industry and name,
industry and county or industry and zip
code. For example, a user will be able to
print a list of every real estate licensee in
the 43215 zip code or every appraiser in
Licking County. In addition to being able
to pull comprehensive lists of licensees,
the user has the ability to select a specific
licensee to obtain additional information.
The additional information available
includes the licensee’s profession
(salesperson or broker), address, em-
ployer name, examination results and
important dates such as the renewal and
continuing education deadlines.
   The Online Renewal program is
currently only available to real estate
licensees that are renewing in an active
or inactive status. This is how it works.
Sixty days prior to a licensee’s renewal        Online Look-up Database, above, and Online Renewal, Below
deadline, the Division will mail to the
licensee’s home address a notice of
renewal. This notice has both the
licensee’s file number and a six-digit
personal identification number (PIN). If
the licensee is active and renewing active
(or inactive and renewing inactive) the
licensee can renew his or her license
online. To access the online renewal, the
licensee must first enter the file number
and PIN number. Then, the licensee is
asked to update and/or verify their home
address, phone number and email
address. Finally, the licensee inputs a
Visa or MasterCard number into a secure
site to pay for the annual renewal. After
the licensee submits the payment, the
licensee is encouraged to print the
confirmation page for the licensee’s
records. This confirmation page advises
the licensee of the date and time the
Division received and approved the renewal
and includes a confirmation number.
   The Division believes that these two
online components will prove to be of

   ATTENTION BROKERS! Ohio Rules and Regulations updates are available at www.state.oh.us/ohio/ohiolaws.htm                          3
 x News from the Ohio Real Estate Appraiser Board
  Two New Appraiser Board Members Named
  Governor Bob Taft recently announced        Resources and Administrative Operations       June 30, 2003. Ms. Hambleton holds a
  two appointments to the Real Estate         for Blue Chip Broadcasting, Ltd. Ms. Love     SRA designation and is a state certified
  Appraiser Board.                            was a trustee to the State Board of           residential appraiser and is President of
    Cheryl Harden Love, from Cincinnati,      Realtors and Co-Chair of Public Relations     Hambleton, Inc., a real property
  Ohio, was appointed to the Real Estate      for the Greater Cincinnati Board of           appraisal and consulting firm. She was
  Appraiser Board as the Public Member        Realtors.                                     also an appraisal instructor for the
  for a term ending June 30, 2004. Ms.          Margaret A. Hambleton, from Colum-          Appraisal Institute and the Ohio
  Love holds a GRI and CRS designation        bus, Ohio, was appointed to the Real          Association of Realtors.
  and is Vice President of Human              Estate Appraiser Board for a term ending

  Appraiser Multiple Change Application Form
    Pursuant to Ohio Revised Code             Division website at www.com.state.oh.us.      identification card and affected certifi-
  Section 4763.05 (G), all Appraisers—        Use the form for business or residental       cate/license must be returned, along
  Licensed, Certified, or Registrants—are     address change, a name change, or to          with a photocopy of the legal document
  required to notify the Superintendent       replace a damaged or lost certificate/        verifying the name change. Payment can
  of any change in the address of their       license, or identification card. The fee is   be made by check or money order,
  principal place of business or residence    $20.00, except when used for a residental     payable to:
  within 30 days of the change date using     address change.                                 The Ohio Division of Real Estate
  the Appraiser Multiple Change Form.            The application must be typewritten or       77 S. High Street
    Appraisers can obtain the Appraiser       printed in black ink. When an individual        20th Floor
  Multiple Change Form from the               name change is needed, the appraiser            Columbus, OH 43215-6133



Appraiser Disciplinary Actions
  Harry J. Culler (RA), a state licensed      Ohio, was found to have violated the          reprimand and admonished to include in
residential appraiser from Bellevue, Ohio,    Uniform Standards of Professional             appraisal reports a determination if a
was found to have violated Ohio Revised       Appraisal Practice, Standards rule 1-1 (c)    prior transaction for the subject property
Code Section 4763.11 (G)(5) and (6) as        and Section 4763.11 (G)(5) and (6) of the     is an arms length transaction or inclusion
these sections incorporate Uniform            Ohio Revised Code. For these violations       of facts to disqualify it as a comparable.
Standards of Professional Appraisal           Gloria J. Stoker is ordered to complete       The Board further stressed the impor-
Practice, Standards Rule 1-1 (b) and 1-2      within one hundred twenty (120) days of       tance of accurately including in the
(b). For these violations Harry J. Culler     the date of the Board’s order a fifteen       appraisal report all data pertaining to
was issued a written reprimand and            (15) hour course in the Uniform Stan-         prior sales of the subject property.
admonished to utilize appropriate             dards of Professional Appraisal Practice      Additionally, the Appraiser Board ordered
methods to revise an appraisal report as      and a fifteen (15) hour course in Basic       Dennis J. Lynch to complete within one
required by Ohio appraiser laws and           Appraisal Methods and Techniques.             hundred twenty (120) days of the date of
USPAP rules. Mr. Culler prepared two          Gloria Stoker communicated an appraisal       its order a fifteen (15) hour course in the
separate and distinct appraisal reports for   report that inaccurately indicated an         Uniform Standards of Professional
the same subject property, same client        address and inaccurately indicated the        Appraisal Practice.
and borrower containing different             distance regarding the proximity of              Douglas Gerald Williams (CR), a state
information. Additionally, the Appraiser      comparable properties to the subject          certified residential real estate appraiser
Board ordered that he complete within         property.                                     from Phoenix, Arizona, was found to
one hundred twenty (120) days of the            Dennis J. Lynch (CA), a state certified     have violated Ohio Revised Code Section
date of its order a fifteen (15) hour         residential real estate appraiser from        4763.11 (G)(5) as it incorporates Uniform
course in the Uniform Standards of            Olmstead Falls, Ohio, was found to have       Standards of Professional Appraisal
Professional Appraisal Practice and thirty    violated Ohio Revised Code Section            Practice, Standards Rule 1-1 (b), (c) and
(30) hours of courses in Basic Residential    4763.11 (G)(5) as it incorporates Uniform     1-4 (b)(iii), and also 4763.11 (G)(6) of
Appraisals that includes at least nineteen    Standards of Professional Appraisal           Ohio Revised Code. For these violations
(19) hours in a course such as Applied        Practice, Standards Rule 1-5 (b) and 2-1      Mr. Williams was issued a written
Residential Property Value.                   (a), and 2-1 (b), and also 4763.11 (G)(6)
  Gloria J. Stoker (RA), a state licensed     of the Revised Code. For these violations
Residential Appraiser from Brunswick,         Dennis J. Lynch was issued a written                        continued on next page

  4    ATTENTION BROKERS! Division forms are available for download at www.com.state.oh.us
     Appraiser Disciplinary Actions,
                         continued            Customer Service Handles Incoming Calls
reprimand and required to complete            The Division receives approximately 500       person for the appropriate section. If the
within one hundred twenty (120) days of       telephone calls per day. The Customer         staff member you need to contact is not
the date of the Board’s order a thirty (30)   Service section was created to alleviate      available and you have to leave a
hour course in appraisal writing and          the burden of the numerous calls and to       message, please wait for a return call
reporting. Mr. Williams was also admon-       process our customers’ work in a more         from that person or section. You might be
ished to accurately use appraisal proce-      timely and efficient manner. The Cus-         tempted to make additional calls before
dures in developing and communicating         tomer Service section staff members will      you hear back from your contact, but
appraisal reports. The Board also ex-         assist you with general questions.            additional calls only increase the
pressed concern over the use of the              When calling the Division, we ask that     Division’s call volume, which delays our
initials “OCRA” after Mr. Williams’s name     you have your name, license (file)            customers from receiving the appropriate
as potentially misleading. Additionally,      number, and your specific question            attention.
the Board suggested the need for compe-       available so that we can help you more           Remember that many times the Division
tency in appraisal software prior to the      promptly. Depending upon the type of          can respond to questions more quickly
respondent’s use.                             license or problem that you have, it may      through electronic mail. We urge you to use
   John Durso (RA), a state licensed          be necessary to speak to staff other than     our website at www.com.state.oh.us/real.
residential real estate appraiser from        Customer Service.                             Please include specific information
Cincinnati, Ohio, was issued a written           In such cases, Customer Service will       pertaining to your question when emailing
reprimand for being found to have             then refer you to the point-of-contact        or calling us.
violated Ohio Revised Code Section
4763.11 (G)(5) as it incorporates Uniform
Standards of Professional Appraisal
Practice, Standards Rule 2-2 (c)(xi). He
                                              Name Approval Process Detailed
was also admonished to develop and            The licensing section receives many           allowed to use a name similar to an
communicate appraisal reports in a clear      inquiries about how a brokerage name is       existing brokerage.
and accurate manner using appropriate         approved and what procedure to follow.           When choosing a name, keep in mind
appraisal procedures. Mr. Durso failed to     Here are a few options in the name            that the word “Realtor” is trademarked
prominently state the reporting option        approval process:                             and it must be separated from your
utilized as is required by Uniform               First, call the Division and find out if   name by a comma or appear on a
Standards of Professional Appraisal           the name you would like to use is             separate line.
Practice, Standards Rule 2-2 (c)(xi).         already being used by another broker-            Second, if you select a name and do
   Robert Andrew Cherkes (RA), a state        age. The name you choose must be              not wish to file an application right away,
licensed residential real estate appraiser    distinguishable from the name of an           you can reserve the name by sending a
from Willoughby, Ohio, was issued a           existing partnership, association,            letter explaining that you want to reserve
written reprimand for being found to          limited liability company, limited            this specific name along with a $10.00
have violated Ohio Revised Code Section       liability partnership, or corporation         fee. The fee will hold the name for 60
4763.11 (G)(5) as it incorporates Uniform     licensed by the Division of Real Estate.      days, and at the end of this period, you
Standards of Professional Appraisal           The Superintendent has the right to           may again reserve the name for another
Practice, Standards Rule 2-2. He was also     reject your application if the name is        60 days by sending in the $10.00 fee.
admonished that he must have the              likely to mislead the public. In addition,    Names will not be held longer than 120
competency in geographic areas for            only if you have written permission           days.
appraisal assignments that fall outside his   from an authorized representative of             Once you have the name approved by the
main areas of work and that the type of       the existing entity, and the                  Real Estate Division, you can file the neces-
appraisals being written is disclosed in      Superintendent’s approval, will you be        sary paperwork with the Secretary of State.
the appraisal report. Mr. Cherkes, as the
review appraiser, failed to note the
reporting option utilized in the appraisal    RealPro Reports Can Take Time to Generate
report for the subject property and the
Appraiser Board further admonished him        RealPro, the database software custom-        paperwork, too. Yet licensees should be
to have the competency in geographic          ized for the Division, has been a boon for    aware that major reports that search
areas for appraisal work that falls outside   those seeking information related to real     thousands of records do take time to
of his main areas of appraisal work           estate licensure in Ohio. For instance, it    generate. Because they may take up to an
performed.                                    can provide valuable statistical data and     hour and a half to prepare, major RealPro
                                              demographics, such as the number of           reports are produced either before or after
                                              brokerages in a particular city or the        working hours. The Division therefore
                                              county with the highest incidence of          may not be able to process your request
                                              disciplinary actions.                         for a report right away. Please allow up to
                                                This computing powerhouse has               ten days after paying the report fee to
                                              improved efficiency and streamlined           receive a major report.

   ATTENTION BROKERS! Ohio Rules and Regulations updates are available at www.state.oh.us/ohio/ohiolaws.htm                         5
Real Estate Disciplinary Actions
SUSPENSIONS, FINES, EDUCATION                the sales course. Ms. Rivera entered into     interest bearing or escrowed in a separate
   JESSE J. RUFFIN, JR., broker, Maple       a written agency agreement that failed to     and distinct account.
Heights, Ohio, had two $500.00 fines         include the appropriate fair housing            FRANK JOSEPH RITZERT, JR., broker,
levied against his license, and he was       language and the HUD logotype. She            Canton, Ohio, was found to have violated
required to complete and to submit to the    also failed to prepare and to submit to the   Ohio Revised Code Section
Division proof of completion of the ten      parties the Ohio agency disclosure form.      4735.18(A)(6), but no penalty was
(10) hour brokerage post-licensure           Finally, she made additions and changes       imposed. Mr. Ritzert permitted the
course. He received the first $500.00 fine   to an offer to purchase, without obtaining    owners of a property to back-date the
for violating Ohio Revised Code Section      the buyer’s written acknowledgement to        Ohio agency disclosure form and the
4735.18(A)(6), as it incorporates Ohio       such changes.                                 exclusive right to sell listing agreement.
Revised Code Section 4735.71. He                FRED JACKSON, broker, Columbus,              MARY A. GROOMS, sales associate,
received the second $500.00 fine and the     Ohio, received a thirty (30) day suspen-      Cincinnati, Ohio, had a $100.00 fine
educational requirement for violating        sion and a fifteen (15) day suspension of     levied against her license for violating
Ohio Revised Code Section 4735.18(A)(6)      his license, to be served consecutively,      Ohio Revised Code Section
as it incorporates Ohio Revised Code         commencing upon reactivation of his           4735.18(A)(6). Ms. Grooms prepared an
Section 4735.18(A)(5). Mr. Ruffin failed     license. In addition, he was fined $500.00    exclusive right to sell agreement, and in
to correctly complete the disclosure of      and he was required to complete and to        connection with this agreement, she
agency form, and he failed, within a         submit proof of completion of the ten         changed various dates on the agreement
reasonable time, to deposit earnest          (10) hour brokerage post-licensure            without the consent or the approval of
money into his brokerage’s trust account.    course. He received the thirty (30) day       her client.
   EILEEN N. NOVELLO, sales associate,       suspension and the educational require-
Cleveland, Ohio, had two $300.00 fines       ment for violating Ohio Revised Code
levied against her license, and she was      Section 4735.18(A)(6). He received the
required to complete and to submit to the    fifteen (15) day suspension for a second
Division proof of completion of the ten      violation of Ohio Revised Code Section
(10) hour sales post-licensure course.       4735.18(A)(6). Lastly, he received the
She received the first $300.00 fine for      $500.00 fine for a third violation of Ohio
violating Ohio Revised Code Section          Revised Code Section 4735.18(A)(6). Mr.
4735.18(A)(6), as it incorporates Ohio       Jackson prepared the standard Ohio
Revised Code Section 4735.55. She            agency disclosure, listing, and property
received the second $300.00 fine and the     information disclosure, and then signed
educational requirement for violating        the owner’s name to the documents
Ohio Revised Code Section                    without qualifying that he had signed on
4735.18(A)(6), as it incorporates Ohio       the owner’s behalf. In addition, Mr.              Division Changes
Revised Code Sections 4735.58(B) and
(C). Ms. Novello entered into a written
                                             Jackson listed and showed the property
                                             without obtaining the owner’s signature
                                                                                                   Zip Code
agency agreement that failed to include      on the agency disclosure form. Finally,
the appropriate fair housing language and    when the listing was cancelled, he failed           Effective immediately,
the HUD logotype. She also failed to         to timely return the key, for the property,        all correspondence to be
prepare and to submit to the parties the     to the owner.                                      delivered to the Division
Ohio agency disclosure form.                    GLORIA R. HENRY, sales associate,              in Columbus must have all
   EMILY M. RIVERA, sales associate,         Dublin, Ohio, had a $100.00 fine levied            nine digits of their newly
Cleveland, Ohio, had three $300.00 fines     against her license for violating Ohio
                                                                                                    assigned zip code:
levied against her license, and she was      Revised Code Section 4735.18(A)(28).
required to complete and to submit to the    Ms. Henry listed property for sale and
Division proof of completion of the ten      subsequently, made changes to the listing
(10) hour sales post-licensure course. She   agreement, without the seller’s consent.               43215-6133
received the first $300.00 fine for             ROBERT BELLUCCI, broker, Cincinnati,
violating first Ohio Revised Code Section    Ohio, had a $200.00 fine levied against
4735.55, the second $300.00 fine for         his license for violating Ohio Revised            While mail with the old zip
violating Ohio Revised Code Section          Code Section 4735.18(A)(26). Mr.                  code will still be delivered,
4735.58(B) and (C), and the last $300.00     Belluccui collected earnest money and
                                                                                              the Division urges everyone
fine for violating Ohio Revised Code         deposited the funds into a non-interest
Section 4735.55, as they are incorporated    bearing trust account. However, he had
                                                                                                to use the new zip code
in Ohio Revised Code Section                 the bank segregate the funds in the               right away to expedite all
4735.18(A)(6). It was for the second         account to earn interest, when the funds                 transactions.
violation that she was required to take      should have been maintained as non-


  6   ATTENTION BROKERS! Division forms are available for download at www.com.state.oh.us
Advertising Updates
Advertising Rule                          Law May Include Team Advertising Language
Recently Amended                          As it now stands, Ohio real estate law has    be displayed in equal prominence
                                          no specific language governing team           with the name of the salesperson in
Effective November 16, 2001, language     advertising. Yet that may change in the       the advertisement.”
in Ohio Administrative Code 1301:5-1-     future. The Division has entered into a          Also planned is a provision for the
02 (G) (1) and (2) was revised. The       discussion with the Ohio Association of       listing of team member names. The
rule simplifies the requirements for      Realtors about adding a team advertising      rule would require that at least one
licensees wishing to incorporate          rule into law.                                licensed member’s name be listed. If
listings from other agents or broker-        Sometimes agents band together with        every team member name is listed,
ages in their own advertisements.         other agents, licensed appraisers, or other   however, the advertisement must
   Licensees still need to secure         non-licensed professionals, such as           note which members are not
written permission from the               administrative assistants and mortgage        licensed, using language such as
property’s owner or owner’s autho-        bankers specializing in real estate. As a     “not a licensed agent,” or “unli-
rized agent to include such listings in   self-promotion tool, the group advertises     censed assistant.”
their advertisements. Now, though,        itself as a real estate team.                    In terms of the team name itself,
the advertisement can supply                 The proposed rule would provide direct     it’s important that the name not
condensed information about the           guidelines for advertising by any team,       mislead the public into believing the
brokerage.                                group or association. One provision           team is a brokerage.
   Previously, the rule required that     under discussion states that the team            Further, you may not collect
the name and phone number of the          name must be displayed in equal               commissions through the team name
listing broker or brokerage, as well as   prominence with the name of the               unless the licensee meets the require-
that of the listing agent, appear in      brokerage carrying the listing, as in Ohio    ments of the new provisions of Section
the advertisement. The amendment          Revised Code 4735.16(B)(1), which             4735.20 of the Revised Code, effective
to 1301:5-1-02 (G)(1) now specifies       provides, “The name of the broker shall       April 4, 2002.
that only the name of the listing
broker or brokerage must appear.
   The older version of 1301:5-1-02
(G)(2) mandated that the
advertisment must include, in equal
prominence, the name and phone
number of the listing broker or
                                          Division Considers Advertising Definitions
brokerage and listing agent. The          The Division is in talks with the Ohio        tion directed? If it is aimed at the
current, revised language states that     Association of Realtors to propose a          general public, then it would be
only the name of the listing broker or    definition for the advertising rule to        considered advertising, because the
brokerage need appear in equal            govern real estate advertising in general.    information supplied in the communi-
prominence.                               At issue is how to determine exactly          cation has not been requested by a
                                          what activity or kind of communication        client or a prospective client.
                                          constitutes advertising. A letter, for           On the other hand, if the communi-
                                          instance, could be considered part of a       cation is directed at clients or prospec-
                                          direct marketing campaign, or it simply       tive clients who have requested the
                                          could be a response to a request for          information, it would not be consid-
                                          information.                                  ered advertising. Instead, it would be
                                            The proposed rule would examine the         regarded as a private communication
                                          communication’s audience as criteria for      and would therefore not be subject to
                                          advertising. To whom is the communica-        laws that apply to advertising.




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ATTENTION BROKERS! Ohio Rules and Regulations updates are available at www.state.oh.us/ohio/ohiolaws.htm                            7
Commission Approves Use of Distance Education
November 28, 2001, marked the beginning        to 15 hours of the required 30 hours of          shown in other states with distance educa-
of a new phase in continuing education         continuing education. Not all types of           tion, this cutting-edge technology enhances
for licensees: after 20 months of study, the   classes may be taken through distance            professionalism among licensees.
Ohio Real Estate Commission approved           education, though. The core courses (nine           Some things about continuing education
the use of distance education.                 hours of Civil Rights, Ethics, and Core          won’t change. Like traditional classes, for
  Distance education, where the student        Law) must be taken in a classroom                instance, licensees will need to submit
and the instructor are not physically in the   environment.                                     distance education credits for approval. And
same location, will be implemented when           The benefits of distance education are        of course, students will be required to
changes have been made to the Ohio             many. Distance education provides greater        demonstrate mastery of the information
Administrative Code. Depending on course       flexibility for licensees who find traditional   presented in distance education courses.
development by education providers, the        continuing education classes inconvenient to        Right now, the Division has no specific
Division hopes that distance education         attend. While traditional classes often          schedule of courses to be offered through
will be available in the second half of        depend upon the quality of the instructor for    distance education. When the appropriate
2002.                                          the success of the student, in distance          changes have been made to the Code and
  Through video conferences or the             education, the emphasis is on subject matter     courses have been approved, licensees will
Internet, licensees will be able to take up    and presentation of facts. As has been           be notified of offerings.




                             Attention Licensees and Brokers!
                  Please use the most recent versions of all forms and applications.
                       They can be downloaded from the Division Web site at
                                       www.com.state.oh.us


                          State of Ohio
                          Department of Commerce                                                           PRESORTED STANDARD
                          Division of Real Estate and Professional Licensing                                   U.S. POSTAGE
                          77 South High Street, 20th Floor                                                          PAID
                                                                                                               Columbus, OH
                          Columbus, OH 43215-6133
                                                                                                             PERMIT NO. 5455




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