How to Defend Your Professional Real Estate License in Ohio

The real estate industry is among Ohio's most important economic activities, contributing significantly to the state's growth and development. Realtors, brokers, and other real estate professionals play an indispensable role in facilitating property transactions, connecting buyers and sellers, and ensuring smooth operations within the property market. However, holding a professional real estate license in Ohio comes with extensive responsibilities and strict compliance requirements.

Allegations of misconduct or regulatory violations can jeopardize your career, reputation, and livelihood. If you find yourself facing a complaint or investigation, it is essential to act swiftly and seek legal representation to safeguard your professional future. Call the Lento Law Firm today at 888-535-3686 or fill out our online form to schedule a consultation with our team.

Understanding the Authority Over Real Estate Licensing in Ohio

In Ohio, the Ohio Division of Real Estate and Professional Licensing (ODREPL), operating under the Ohio Department of Commerce, is the regulatory body overseeing real estate professionals. This authority is tasked with issuing licenses (real estate brokers, salespersons, and companies; appraisers and appraisal management companies; foreign real estate dealers and salespersons; manufactured homes dealers, brokers, and salespersons; and home inspectors), enforcing the Ohio Revised Code (ORC), and ensuring compliance with industry standards. The ODREPL is responsible for investigating complaints, conducting hearings, and imposing disciplinary actions for violations of real estate laws and regulations.

Key cities such as Columbus, Cleveland, Cincinnati, Toledo, and Akron represent bustling hubs for real estate activity, and professionals in these areas are subject to the same strict oversight as those in smaller towns across Ohio.

The Division of Real Estate and Professional Licensing is located at 6606 Tussing RD, Reynoldsburg, Ohio.

Additionally, the Ohio Real Estate Commission (OREC) is a five-member body (appointed by the governor) that reviews hearing examiner reports, settlement agreements, and licensee appeals related to real estate license law violations. It has the authority to revoke or suspend licenses, impose fines, mandate additional continuing education, or issue public reprimands for proven violations.

The Ohio Real Estate Commission or the superintendent of real estate can investigate complaints of violations under sections 4735.02 or 4735.25 of the Revised Code and subpoena witnesses as outlined in section 4735.04. They may also seek court orders to stop violations, such as injunctions or restraining orders, against individuals or entities proven to have violated or are likely to violate these sections.

Types of Complaints and Violations That Can Trigger an Investigation

Real estate professionals can face a wide variety of allegations that may lead to an investigation or disciplinary action by the ODREPL. These allegations can arise from clients, fellow real estate professionals, or even anonymous complaints. Common issues include:

  • Fraud or Misrepresentation: Allegations of knowingly providing false information about a property or knowingly misleading clients. This includes making false promises with intent to influence, persuade, or induce.
  • Conflict of Interest: acting for more than one party in a transaction (exceptions apply as per 4735.1 of the Revised Code)
  • Failure to Disclose Material Defects: Omitting known issues about a property that could affect its value or safety.
  • Improper Handling of Funds: Mishandling escrow accounts or failing to properly account for client funds.
  • Unlicensed Activity: Assisting or conducting real estate transactions without the necessary licensure. Having falsely represented membership in any real estate professional association of which the licensee is not a member. Having authorized or permitted a person to act as an agent in the capacity of a real estate broker or a real estate salesperson who was not then licensed as a real estate broker or real estate salesperson.
  • Ethical Violations: Breaches of the National Association of Realtors' Code of Ethics or state-specific ethical requirements. This includes dishonest or illegal dealing, gross negligence, incompetency, or misconduct.
  • Advertising Violations: Misleading or unapproved marketing practices, including false advertising or non-compliant social media promotions. Having published advertising, whether printed, radio, display, or of any other nature, which was misleading or inaccurate in any material particular, or in any way having misrepresented any properties, terms, values, policies, or services of the business conducted. Having advertised or placed a sign on any property offering it for sale or for rent without the consent of the owner or the owner's authorized agent. Having offered real property for sale or for lease without the knowledge and consent of the owner or the owner's authorized agent or on any terms other than those authorized by the owner or the owner's authorized agent
  • Failure to Meet Continuing Education Requirements: Not completing mandated education to maintain licensure.

A complete list of disciplinary actions can be found in the Ohio Revised Code, Section 4735.18.

Fines and disciplinary actions for real estate agents, brokers, and other industry professionals in Ohio are not limited to violations of real estate-specific regulations. They can also result from unrelated legal issues, such as criminal convictions, including misdemeanors or felonies, that reflect poorly on the individual's trustworthiness or professional integrity. For example, convictions for fraud, theft, or improper handling of firearms can lead to penalties, mandatory education, suspension, or even revocation of a license under the Ohio Revised Code. Such actions highlight the importance of maintaining ethical and lawful behavior in all aspects of life, as these violations can jeopardize a real estate professional's ability to practice, regardless of whether the conduct directly involved their real estate activities.

It is important to take any allegation that might threaten your professional license very seriously from the beginning; this is why it is crucial to get the appropriate legal representation as soon as possible. The Lento Law Firm Professional License Defense Team can help if you're having issues with your real estate license in Ohio.

The Investigation Process in Ohio

The ODREPL investigation process follows a structured protocol to ensure due process for the accused party. Understanding this process is critical for anyone facing a complaint.

  1. Complaint Filing: Complaints can be submitted by anyone and are reviewed by the ODREPL for validity.
    • Complaints must include specific details about the alleged violation.
    • The ODREPL may initiate an investigation even without a formal complaint if they suspect wrongdoing.
  2. Notice of Investigation: If the ODREPL determines the complaint warrants an investigation, the licensee will be notified. This notification will outline the allegations and may request a written response.
  3. Evidence Collection: Investigators may request documentation, interview witnesses, and subpoena records. This phase is crucial, as the evidence gathered will form the basis of the case.
  4. Preliminary Findings: After gathering evidence, the ODREPL determines whether there is probable cause to proceed. If not, the case is dismissed. If probable cause exists, further action is taken.
  5. Hearing Process: The case may advance to an administrative hearing, where both parties present their arguments before a hearing officer or the Ohio Real Estate Commission.
    • Licensees have the right to legal representation during this hearing.
    • Evidence, witness testimony, and legal arguments are considered.
  6. Final Decision: The Ohio Real Estate Commission issues a final determination. Possible outcomes include dismissal of charges, fines, license suspension, revocation, or mandatory additional training.

Consequences of Disciplinary Action

The consequences of an ODREPL investigation can be severe, potentially ending a real estate professional's career. Some of the disciplinary actions include:

  • Fines and Penalties: Monetary penalties may be imposed for violations.
  • License Suspension: A temporary halt to practicing real estate, which can cause significant financial and reputational damage.
  • License Revocation: Permanent loss of the ability to practice real estate in Ohio.
  • Probation: Close monitoring of the professional's activities for a specified period.
  • Mandated Education: Completion of additional courses to address areas of non-compliance.

Here are some examples of disciplinary actions taken by the ODREPL:

  • In February 2023, a salesperson in Strongsville had his license suspended for 3 days, was required to pay a $500.00 fine, and was required to complete 3 hours of education in the area of core law and 3 hours of additional education in the area of ethics.
  • In February 2023, a salesperson from Columbus was fined $500.00 and required to complete 3 hours of ethics education in 2023 for a violation stemming from a conviction for Improper Handling of Firearms in a Motor Vehicle.
  • In March 2023, a broker company in Lewis Center was fined $2,500.00 for engaging in misleading advertising for advertising a brokerage office at a location not registered with the Division in violation of Ohio Revised Code Section 4735.18(A)(21) and other misconduct and violations.
  • In October 2023, an unlicensed individual in New Waterford was fined $4,400.00 for unlawfully engaging in real estate activities, including advertising, negotiating, showing a property, signing an agency disclosure, and offering real estate advice without the required license.
  • In October 2023, an unlicensed entity was fined $20,000.00 for illegally engaging in real estate activities, including contacting buyers, marketing, negotiating, and assisting with a property transaction, without the required license.
  • In March 2023, a salesperson in Bentleyville had his license revoked for submitting false, misleading, or incomplete information to the Division on a license application.
  • In March 2023, a salesperson in Cincinnati was fined $500.00 and was ordered to complete 3 hours of additional education in the area of core law in an agency-specific course, 3 hours in the area of ethics, and the 20-hour post-salesperson licensing course.

How the Lento Law Firm Can Help

Facing an investigation or disciplinary action can be a daunting experience. Our legal team can help you with your professional real estate license defense in Ohio. We understand the intricacies of ODREPL's rules and processes and are dedicated to protecting your rights and career.

  1. Comprehensive Case Evaluation: We conduct a thorough review of the allegations and evidence to identify strengths and weaknesses in the case against you. This step helps us formulate a strong defense strategy tailored to your situation.
  2. Representation During Investigations: Responding to an investigation without legal counsel can lead to unintentional mistakes or admissions that harm your case. We handle all communications with the ODREPL and ensure your responses are accurate and strategically sound.
  3. Advocacy in Hearings: If your case proceeds to a hearing, we provide robust representation to present your side of the story effectively. Our legal team has the required tools regarding administrative law and understands how to challenge evidence and cross-examine witnesses to your advantage.
  4. Mitigation of Penalties: In cases where violations are substantiated, we work to minimize the consequences by negotiating lesser penalties or alternative resolutions, such as additional training instead of suspension or revocation.
  5. Assistance with Appeals: If you face an unfavorable decision, we can guide you through the appeals process. Appeals in Ohio often involve presenting your case before the Ohio Real Estate Commission or even pursuing judicial review if necessary. Our team has experience crafting compelling appeals by identifying procedural errors, contesting evidence, and demonstrating mitigating factors to seek a more favorable outcome.
  6. Preventive Guidance: To help you avoid future issues, we offer consultations on compliance with Ohio's real estate laws and continuing education requirements. Our proactive approach helps ensure your practice remains in good standing.

Why Choose Us?

  • Deep Understanding of Ohio Laws: Our knowledge of Ohio's real estate statutes and regulations allows us to craft effective defense strategies.
  • Client-Centered Approach: We prioritize your interests and work tirelessly to protect your license and reputation.
  • Responsive Communication: We keep you informed at every stage of the process, ensuring you have the support and knowledge needed to navigate the challenges ahead.

Protect Your Real Estate Career Today

A professional real estate license is more than a credential; it's the foundation of your livelihood. Don't let allegations or misunderstandings jeopardize your hard-earned career. If you are facing an investigation or disciplinary action in Ohio, act quickly to secure skilled legal representation with the Lento Law Firm Professional License Defense Team.

Contact us today for a confidential consultation and take the first step toward protecting your professional future. With our dedicated legal team by your side, you can confidently face any challenge and safeguard your place in Ohio's thriving real estate industry. Call the Lento Law Firm today at 888-535-3686 or fill out our online form to schedule a consultation with our team.

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