Key Takeaways
- The Ohio Division of Real Estate can suspend, revoke, or refuse to renew licenses for violations
- Common violations include trust account mishandling, misrepresentation, and failure to supervise
- Licensees can be fined up to $2,500 per violation
- The Real Estate Recovery Fund protects consumers from licensee misconduct
- Licensees have the right to a hearing before disciplinary action is final
Last updated: January 2026
Ohio License Law Violations and Discipline
The Ohio Division of Real Estate has authority to discipline licensees for violations of the Real Estate License Law.
Types of Violations
Common Violations
| Category | Examples |
|---|---|
| Trust Account | Failure to deposit, commingling, conversion |
| Supervision | Inadequate oversight of salespersons |
| Disclosure | Failure to disclose material facts |
| Misrepresentation | False statements |
| Advertising | Misleading ads, failure to identify broker |
| Unlicensed Activity | Practicing without valid license |
| Incompetence | Failure to provide competent service |
Specific Prohibited Acts (ORC 4735.18)
Ohio law prohibits:
- Fraud or misrepresentation in obtaining license
- Dishonest or fraudulent dealings
- False advertising or misleading statements
- Failure to account for funds or documents
- Commingling client and personal funds
- Splitting fees with unlicensed persons
- Failure to disclose interest in property
- Violating fair housing laws
- Conviction of felony or crime of moral turpitude
- Practicing while impaired by drugs/alcohol
- Failing to provide agency disclosure
- Violating Ohio license law or rules
Disciplinary Process
Investigation
The Division investigates complaints from:
- Consumers
- Other licensees
- Routine audits
- Referrals from other agencies
Sanctions and Penalties
Types of Sanctions
| Sanction | Description |
|---|---|
| Warning | Written notice of violation |
| Fine | Up to $2,500 per violation |
| Education | Required completion of courses |
| Probation | License active with conditions |
| Suspension | Temporary loss of license |
| Revocation | Permanent loss of license |
| Denial | Refusal to issue/renew license |
Fine Amounts
| Violation | Maximum Fine |
|---|---|
| Per violation | $2,500 |
| Multiple violations | Cumulative |
Hearing Rights
Licensees facing discipline have the right to:
- Written notice of charges
- Administrative hearing
- Present evidence and witnesses
- Legal representation
- Appeal adverse decisions
Real Estate Recovery Fund
The Ohio Real Estate Recovery Fund compensates consumers harmed by licensee misconduct.
Fund Details
| Feature | Detail |
|---|---|
| Maximum per transaction | $40,000 |
| Maximum per licensee | $40,000 (total from all claims) |
| Source | Licensee fees |
| Requirement | Judgment against licensee |
| Collection | Exhausted other remedies |
Effect on License
If the Recovery Fund pays a claim:
- Licensee's license is suspended
- Must reimburse fund plus interest
- License not reinstated until repaid
Trust Account Audits
The Division may audit broker trust accounts:
| Trigger | Action |
|---|---|
| Complaint | Investigation initiated |
| Random audit | Routine oversight |
| License renewal | May trigger review |
| Deficiency found | Disciplinary process |
Audit Requirements
Brokers must maintain:
- Current bank statements
- Monthly reconciliations
- Transaction records
- Deposit/disbursement logs
- All records for 3 years
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Test Your Knowledge
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Test Your Knowledge
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